Create a project contract to invoice for milestones
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
Use these procedures to create a project and project contract to invoice the customer when a project milestone is reached. The milestones are defined when the contract is negotiated.
Example
Your organization offers to conduct market research on a consumer product that a customer plans to sell. The customer agrees to use your services for a period of three months, starting in March. Your organization bills the customer at the end of each milestone. The project has three milestones:
Milestone 1: Collect consumer data. The scheduled completion date is March 31.
Milestone 2: Analyze consumer data. The scheduled completion date is April 30.
Milestone 3: Present a product viability proposal. The scheduled completion date is May 31.
Use these procedures to set up a contract, an associated project, and the billing rules to use to invoice the customer at the end of each milestone.
After you have created the contract and the project, you can set up the details of the project. For example, you can define the activities of the project and assign workers to the project.
As a prerequisite to performing these procedures, a system administrator must set up the number sequence that you use when you create a billing rule.
Create a contract for milestones
Use the following procedure to create a contract to invoice a customer upon completion of milestones.
Click Project management and accounting > Common > Projects > Project contracts. Open a project on the list page.
In the Project contracts form, on the Action Pane, on the Project contract tab, click Project contract.
In the New project contract form, enter the project contract number, the contract name, the funding type, the funding source, and the currency to use for customer invoices created for the project contract, and then click OK. This information is copied to the header of the Project contracts form.
In the Project contracts form, complete the rest of the necessary information for the contract. To change default values in the form, on the Action Pane, on the Project contract tab, click Edit.
Create the associated project for milestones
Use the following procedure to create a project and any subprojects associated with a contract for milestones.
In the Project contracts form, on the Action Pane, on the Project contract tab, in the New group, click Project.
In the New project form, enter a project type of Time and material.
Select a project group.
Enter additional project information, such as the following:
Project ID
Project name
Project group
Project contract ID – This associates a project contract with the project.
Note
The Project contract ID field is automatically filled with the number of the project contract from the Project contracts form. You can change the project contract to a different contract number.
Customer
Enter any additional required information, and then click OK to create the project.
After you have created the project, set the project stage to In process.
Create the milestones for the project
After you have created the projects, use the following procedure to add the milestones for the project.
Click Project management and accounting > Common > Projects > All projects. Select the Time and material project that you just created.
Depending on your version of Microsoft Dynamics AX, do one of the following:
In Microsoft Dynamics AX 2012 R2, in the Projects form, on the Action Pane, on the Manage tab, in the Bill group, click Invoice proposals.
In the Invoice proposals details form, select the invoice proposal, and then, on the Action Pane, click Post.
Otherwise, in the Projects form, on the Action Pane, on the Manage tab, in the Bill group, click New on-account.
In the Prepayment journal voucher form, create an on-account transaction for each milestone. The transaction includes the amount to invoice the customer for each milestone.
Create billing rules for the milestone contract
After you have created the contract and the associated project, use this procedure to create the billing rules for the contract.
Click Project management and accounting > Common > Projects > Project contracts. Select a project.
In the Project contracts form, on the Action Pane, on the Project contract tab, click Project contract.
In the Project contracts form, on the Project contract tab, in the Set up group, click Billing rule.
In the Billing rules form, click New.
Select a line type of Milestone.
On the Details FastTab, move milestone transactions from the Available items section to the Selected items section.
You can enter a percentage to calculate the amount that the customer withholds from payments on an invoice. On the Payment retention terms FastTab, select the funding source, and then, in Retention percentage field, enter the retention percentage.