web
You’re offline. This is a read only version of the page.
close
Skip to main content

Announcements

No record found.

News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Reduce Project Contrac...
Finance | Project Operations, Human Resources, ...
Suggested Answer

Reduce Project Contract value in the Billing rules

(3) ShareShare
ReportReport
Posted on by DC Dynamics 365 198
We have a contract associated to the Project and with changes in terms there is drop in the work to be done and so is the contract value. 
However, we aren't able to adjust (reduce) the contract value, cannot create a negative billing rule to adjust. 
If it is adding more to the contract value it is easily done by adding another line but vice versa is not allowed. How could we achieve this without creating additional Projects/sub projects. 
 
Categories:
Dynamics 365 Finance
Dynamics 365 Project Operations
I have the same question (0)
  • Suggested answer
    Holly Huffman Profile Picture
    Holly Huffman 6,554 Super User 2026 Season 1 on at
    Good morning, afternoon, or evening :) depending on your location!
     
    Reducing the Project Contract Value in Billing Rules without creating additional projects or sub-projects can be tricky, as Dynamics 365 does not allow negative billing rules.
     
    Workarounds to Adjust Contract Value
    1. Modify Existing Billing Rules
      • Instead of creating a negative billing rule, adjust the unit sales price or quantity in the existing billing rule to reflect the reduced contract value.
      • Navigate to Project Management and Accounting > Project Contracts > Billing Rules and update the relevant fields.
    2. Use Funding Limits
      • If the project contract involves multiple funding sources, set up funding limits to ensure that the total billed amount does not exceed the revised contract value.
    3. Adjust Invoice Amounts Manually
      • If the system does not allow direct contract value reduction, manually adjust the invoice amounts before sending them to the customer.
    4. Create a Credit Memo or Adjustment Entry
      • If reducing the contract value directly is not possible, issue a credit memo or an adjustment entry to offset the excess amount.
    5. Use Progress-Based Billing
      • If the contract is structured around milestones or progress-based billing, adjust the percentage completion to reflect the reduced scope.
    Next Steps
    • Try modifying the unit sales price or quantity in the billing rules first.
    • If that doesn’t work, consider using funding limits or credit memos.
    • If needed, consult Microsoft documentation on Project Contracts for additional guidance.
     
    Hope this helps!

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Introducing the 2026 Season 1 community Super Users

Congratulations to our 2026 Super Stars!

Meet the Microsoft Dynamics 365 Contact Center Champions

We are thrilled to have these Champions in our Community!

Congratulations to the April Top 10 Community Leaders

These are the community rock stars!

Leaderboard > Finance | Project Operations, Human Resources, AX, GP, SL

#1
Giorgio Bonacorsi Profile Picture

Giorgio Bonacorsi 621

#2
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 575 Super User 2026 Season 1

#3
CP04-islander Profile Picture

CP04-islander 430

Last 30 days Overall leaderboard

Featured topics

End-of-life Announcement for Microsoft Dynamics GP
License usage reporting (in-app and PPAC) with Entra dynamic groups

Product updates

Dynamics 365 release plans