On account project statement is a list of un-invoiced transactions posted on a project.
In both, Microsoft Dynamics AX 2012 and Dynamics 365, On account invoicing is only available for external project types. The functionality is used when a project invoice is generated for either a milestone completed (in both, Time and material and Fixed-price projects) or when a billing is not related to specific costs (Time and material project).
One of the Generally Accepted Accounting Principles (US GAAP) is recognizing revenue based on the percentage complete.
For example, the total cost of a Fixed-price project is $100K with the billing based on percentage complete as 30/30/30/10% where the last 10% is paid at completion. Then 4 invoices will be entered as On-account transactions on the project with the corresponding amount and different dates.
Dates might be entered as forecast dates or later, at the time of milestone, or left blank.
Time and material projects
When dealing with Time and material (T&M) projects, the customer may elect to set up a billing schedule for the duration of the project.
The final invoice will include the on-account payments, offsets to those payments, and actual transactions on the project.
On-account invoice schedule
To review all on-account invoices for a project, go to Project management and accounting > Inquiries and reports > On account reports > On-account invoice schedule. The report is new for Dynamics 365. It can be run for all projects or for a type of project (e.g. Time and material):
Projects can be included in the selection criteria of the report:
- Click the Filter sign:
- Enter any selection criteria, e.g. project ID
- Click OK
- The schedule is displayed:
Hour, fee, expense, and item transactions posted to the project and not invoiced yet, are displayed on the Posted project transactions inquiry (Project management and accounting > Transactions or from Project management and accounting > Projects > All projects form > Related information section):
After an invoice proposal is generated and posted for the first 2 lines, the Invoice status are changed on the lines:
Have any other Dynamics AX or Dynamics 365 inquiries? Contact us today at (937) 312-1547 or email us at email@example.com