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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Project Invoicing: Inv...
Finance | Project Operations, Human Resources, ...
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Project Invoicing: Invoice daily rates instead of hours on T&M Projects

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Posted on by Adis 2,429
Dear community,
 
When working with projects, ie. service branches, hours, fees and expenses are invoiced to the customer. The hours that can be invoices are based on the posted chargeable (billable) hours for a given projects. However, in the consulting business it is usual to invoice NOT in hours but in daily rates. Meaning, on the invoice the customer should see how many days where invoiced and not hours as days are being purchased from the customer, not hours.
 
So the question is how to invoice in daily rates instead of hours, when using the project management module? We are using D365 Finance & Operations.
 
Here are some thoughts and issues:
-There is no unit conversion between hours and days - this would be a very simple solution in my opinion. Like 8hours = 1 day. When 4h are posted, 0.5 days are being invoiced. The sales price can be defined in days.
 
Posting hours as non-chargeable (billable) and invoicing fees through fee journal.
There are few drawbacks to consider:
-When creating fee journals, additional research is necessary in order to receive the information. F.e. Which resources worked how many hours in order to convert it in days. Usually when posting the hours the decision is made if the hours billable or not.  
-In the fee journal, it is only possible to post a sales amount. There is no possibility to put in an amount. Therefore, on the invoice you would see only an amount of 1 with the sales price, which could be 1 day, 4 days, 5 days and so on, but it is not possible to display the daily rate. In the case of hours, the invoice shows amount of hours, hourly rate and the amount of all hours per resource.
 
Does anyone has further ideas how to solve this case either in Standard or by customization?
 
Thanks all of you for your input! 
  • Verified answer
    Adis Profile Picture
    Adis 2,429 on at
    Project Invoicing: Invoice daily rates instead of hours on T&M Projects
    Solution
     
    The registered time will be in hours as per standard. We decided to change the layout of the invoice, in such a way to divide the hours with 8, therefore, the amount will be shown in days and not in hours. The sales price will be put in per hours as per standard, but the sales price on the invoice will be multiplied by 8, therefore, the daily rate will be displayed for the customer.
     
     
  • Adis Profile Picture
    Adis 2,429 on at
    Project Invoicing: Invoice daily rates instead of hours on T&M Projects
    If you are interested, I ve submitted a Application idea - if it gets enough votes, who knows...
     
    The suggestioned solution is to extend the fee journal with quantity as it would serve other business scenarios as well in my opinion.
     
     
    Kind regards, Adis
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 291,711 Super User 2024 Season 2 on at
    Project Invoicing: Invoice daily rates instead of hours on T&M Projects
    Hi Adis,
     
    Your understanding is correct. There is no full automation to translate hours to days. Indeed, the process is like manual fees. You can consider a customization or have a look at the resource/non-stocked version.
  • Suggested answer
    saurabh bharti Profile Picture
    saurabh bharti 15,029 Super User 2024 Season 2 on at
    Project Invoicing: Invoice daily rates instead of hours on T&M Projects
    Hi,
     
    If you are not going to use timesheet to bill customer based on submitted timsheet rather you will bill based on number of days every month then you might want to consider subscription billing module with project module where you define billing line with recurrunce monthly or other frequency 
     
    and also you can define unit of mesuarement as Days against the resource service line item
     
    Here is one blog might help you 
     
     
  • Adis Profile Picture
    Adis 2,429 on at
    Project Invoicing: Invoice daily rates instead of hours on T&M Projects
    Andre Arnaud de Calavon, I checked your idea about the billing rules, however, I am afraid the outcome is the same as creating a fee journal manually, but correct me if I am wrong.
     
    As far as I understood Units delivered is a way to track what was decided with the customer and what needs to be invoiced. It can be milestones, units to be delivered etc.
     
     
    However, in the end this is how you get it on invoice proposal. I updated the units delivered, 2 (days) with 2.500€ for each day.
    On the proposal I get 1 quantity, not 2
    I have no chance to assign a resource, ie. to distinguesh which fee is related to which resource
    Its no much of a difference compared to creating a fee journal manually. The billing rules help you to check what was agreed on with the customer and what was invoiced, needs to be invoiced...
     
     
    Kind regards, Adis
  • Adis Profile Picture
    Adis 2,429 on at
    Project Invoicing: Invoice daily rates instead of hours on T&M Projects
    Thanks for your responses.
     
    We are using D365 Finance & Operations.
     
    I ll check out the Unit of Delivery on the Billing rules - Thanks Andre!
     
    We do register and post hours. As we need to invoice daily rates, we cant use the Timesheet and put in days instead of hours. It becomes especially complicated when you have Intercompany hours posted on the project...
     
    I ll keep you updated how we ll proceed.
     
    Kind regards, Adis
  • 02Sunwin Profile Picture
    02Sunwin on at
    Project Invoicing: Invoice daily rates instead of hours on T&M Projects
    very good
  • Suggested answer
    ZvikaR Profile Picture
    ZvikaR 89 on at
    Project Invoicing: Invoice daily rates instead of hours on T&M Projects
    If you are billing the customer in days, are you sure you want to record the actual hours worked on the project?
    How would that work? if someone worked 9 hours, you are still going to bill the customer for 1 day?
     
    If BOTH your costing and BILLING could be recorded by days, than you can simply use the "HOUR" field on the hour journal as if it said "DAY".
     
     
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 291,711 Super User 2024 Season 2 on at
    Project Invoicing: Invoice daily rates instead of hours on T&M Projects
    Hi Adis,
     
    Which exact Dynamics 365 application are you using for your project operations? Is it the module within Dynamics 365 F&O or the resource/non-stocked version? The latter mentioned has options for setting up daily rates. You can consider using the resource/non-stocked version.
      
    In Dynamics 365 F&O, there are some advanced billing rule options. You can specify billing rules on the Project contract with the type Unit of delivery. 

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