Agent Model Accounting in D365 FO Project module

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Posted on by Poonam Verma

Does Dynamics 365 Finance and Operations support the agent model for project accounting? In this model, the business acts as an intermediary—facilitating transactions between vendor and customer without recognizing revenue or cost.

For example, when a vendor invoice is posted for a project, the system should debit a WIP clearing account and credit Accounts Payable (AP). When the related customer invoice is posted, it should debit Accounts Receivable (AR) and credit the same WIP clearing account. This ensures that transactions flow through the project module without impacting revenue or cost accounts—supporting the agent model using only balance sheet postings. No revenue or expense should hit the P&L. Does D365 has configuration on the project module to achieve this model.

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Dynamics 365 Finance

Dynamics 365 Project Operations

Microsoft Dynamics AX

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Adis 6,064 Super User 2025 Season 2 on at

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Hi,

There is a WIP setup for projects. We are using it for not yet invoiced revenues. You can define on which accounts chargeable hours, expense, fees, items should be posted. When the invoice is created, the same transactions are reversed, or posted in the opposite direction. There is a setup which accounts you want to post these not yet invoiced transactions, thats up to you if you want to post on the balance accounts or P&L.

Not sure if that answeres part of your question?

Kind regards, Adis

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