Project invoicing - How to process three stage invoices?

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Posted on by Amitsb1980

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Hi All,

I am wondering how to process following scenario in D365 F&O Project module?

Budgeted contract value of the project is £10000 and I would like to be able to generate invoice proposals via the billing rule once following milestones have been hit.

Milestone 1 - With Order (Advance) Payment - 30% of the contract value

Milestone 2 - Prior to Dispatch Payment - 60% of the contract value

Milestone 3 - 30 days net after dispatch of the item requirement on the project. - Remaining 10% of the contract value.

I tried the milestone type billing rule, however I have to manually calculate the values instead of system calculating % of the contract value.

Is it possible to do this in both T&M and Fixed Price project?

Thanks,

Amit

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André Arnaud de Cal... 301,075 Super User 2025 Season 2 on at

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Hi Amit,

Out of the box, managing invoices based on milestones is for this scenario cumbersome. The values have to be calculated in most cases manually. In the past, we had customized the process of creating billing rules or on-account transactions to get more automation.

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Amitsb1980 251 on at

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Hi Andre, Thanks. I thought it to be the case.

I have raised an idea with MS to see if the milestone billing rule can have functionality to calculate % of the contract value. It has this functionality for fee type billing rule but not extended elsewhere.

experience.dynamics.com/.../

I would appreciate your vote for it.

Thanks,

Amit

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Junaid Idrees on at

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Hi Amit Bhawalkar,

Unfortunately we cannot create billing rules with Milestone %, you have to calculate the sales price manually and specify for respective Milestone and system will calculate total contract value automatically.

I voted :)

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Ludwig Reinhard Microsoft Employee on at

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Hi Amit,

What about progress based billing rules?

Can they fit your scenario?

docs.microsoft.com/.../create-a-project-contract-to-invoice-for-progress-billings

Best regards,

Ludwig

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Amitsb1980 251 on at

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Hi Ludwig,

Thanks, I will explore the progress based billing rule further.

As we are an engineering company, typically we will not invoice the customer for by time (hrs) but mainly by material (finished manufactured product). I could potentially set-up project categories such as Design, Dispatch etc. and set-up billing rule to look at these categories and calculate % of the total contract price as the invoice.

I will try this out on my environment and report back.

Regards,

Amit

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Amitsb1980 251 on at

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Hi Ludwig,

Tried using the progress billing option. Unfortunately, it still doesn't give me the option to provide Fee %. It seems, I will still have to manually calculate values and add them to the contract value field which really doesn't help my case.

I really think, Microsoft needs to bring in this simple functionality to make the billing rule more intuitive. Below is the link to the idea post, I had created. It would be great to have your vote.

experience.dynamics.com/.../

Thanks,

Amit

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Amitsb1980 251 on at

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Having played around, I managed to find following workaround which doesn't involve billing rule.

1. Create or import revenue budget.

2. Create customer advance as % of revenue budget. Here, I create my stage 1 invoice proposal by specifying 30% of the contract value.

3. Post this to create on-account transaction on the project.

4. Create another customer advance request as % of the revenue of the budget nearer to the completion of the project to create the 60% prior to dispatch payment.

5. Post this to create 2nd on-account transaction.

6. Once a delivery note for the item requirement on this project is posted, one can create a stage 3 invoice which will be for the total contract value, however the invoice will show the two on-account deductions, making it only 10% of the contract value payable.

I still think, having the ability to use milestone billing rule to create these invoice automatically is the best way forward. Only if MS can allow % to be specified on the billing rule.

Hope this helps someone in similar shoes.

Thanks,

Amit

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