1. To-Increase Dynamics 365 for Finance & Operations
  2. Advanced project management
  3. Setting up and maintaining Advanced project management

Set up progress billing

You can use progress billing as an alternative way to invoice a project. In progress billing, you invoice the amount of work completed so far.

Before you can use progress billing, you must set the progress billing parameters on the Advanced project management parameters.

In progress billing, you can apply retentions. You can set up and use retentions that are based on:

  • Percentage of work completed
  • Invoiced amounts schedule


Project manager Project manager Start Start Set progress billing parameters Set progress billing parameters If you use progress billing, set the progress billing parameters on the Advanced project management parameters. Procedure 1. Go to Project management and accounting > Setup > Advanced project management > Advanced project management parameters. 2. Click the Progress billing tab. 3. In the Format field, define the sequence number suffix format for progress bills. 4. Select Yes in the Use progress billing field. 5. Select Yes in the Update internal progress from the progress bill field. 6. In the Default Journal name ID project field, define the default journal name used for project progress bills. 7. In the default journal name ID for subcontract field, define the default journal name to be used for subcontract progress bills. 8. In the Line property field, select a default value. 9. In the Revenue category field, enter or select a value. 10. In the Show number of decimals field, enter a number. Set up customer retention terms Set up customer retention terms If you use retention terms that are based on the percentage of work complete, set up the customer retention terms. For more information, refer to Set up customer payment retention terms. Set up progress amount retention terms Set up progress amount retention terms If you use retention terms that are based on an invoiced amounts schedule, set up the progress amount retention terms.ExampleRetention schedule:Retention calculation: Procedure 1. Click Project management and accounting -> Setup -> Retention -> Progress amount retention terms. 2. Click New and enter a description. 3. On the Schedule pane, click Add line and fill in the fields. Note: You only can fill in the Amount to and the Percent to retain. The Amount from is automatically determined based on the highest entered To amount. Link retention terms to project contract Link retention terms to project contract When you create a project contract, you can set up the customer payment retention terms. Both the percentage-of-work-completed retention terms and the progress-amount retention terms are shown if you click the drop-down in the Customer payment retention terms field on the Project contract form. For more information, refer to Add customer retention terms to a project contract. End End Do you use retentions? Do you use retentions? What type of retention  terms do you use? What type of retention  terms do you use? Percentage of  work complete Invoiced amounts  schedule

Activities

Name Responsible Description

Set progress billing parameters

Project manager

If you use progress billing, set the progress billing parameters on the Advanced project management parameters.

Set up customer retention terms

Project manager

If you use retention terms that are based on the percentage of work complete, set up the customer retention terms.

For more information, refer to Set up customer payment retention terms.

Set up progress amount retention terms

Project manager

If you use retention terms that are based on an invoiced amounts schedule, set up the progress amount retention terms.

Example

Retention schedule:

RetentionSchedule.png

Retention calculation:

RetentionCalculation.png

Link retention terms to project contract

Project manager

When you create a project contract, you can set up the customer payment retention terms. Both the percentage-of-work-completed retention terms and the progress-amount retention terms are shown if you click the drop-down in the Customer payment retention terms field on the Project contract form.

For more information, refer to Add customer retention terms to a project contract.

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