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Fixed project entries -D365

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Posted on by sand143

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Hello experts,

Let's assume,
XYZ recognized revenue on the 30th of June and send a proforma invoice to the customer for milestone billing. After 2 months customer approved the proforma invoice and XYZ generate an invoice proposal for milestone 30th June. So please suggest how can we achieve below accounting entries for a fixed project?

Clearing Account ( AR) DB

Deffred revenue (liability) CR

After genrate the praposal for milestone

Clear account (AR) CR

Account recivable DB

Deffred revenue (liability) DB

Actual revenue CR

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Ludwig Reinhard Microsoft Employee on at

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Hi sand143,

It sounds interesting that the customer needs 2 months to approve the invoice.

Isn't that something that should be negotiated beforehand?

Why is your first posting only using Balance Sheet accounts?

DR Clearing

CR Referred Revenue

I would expect that the revenue is already created at that time.

Can you elaborate?

Best regards,

Ludwig

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AlinaC on at

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Hi sand143,

Please let us know if you still need help on this community thread.

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