Microsoft Dynamics 365 for Finance & Operations Enterprise Edition – On Account Project Statements

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.

Fixed-price projects

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.

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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.

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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):

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Projects can be included in the selection criteria of the report:

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  • Click the Filter sign:

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  • Enter any selection criteria, e.g. project ID
  • Click OK
  • The schedule is displayed:

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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):

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After an invoice proposal is generated and posted for the first 2 lines, the Invoice status are changed on the lines:

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