Changes to project billing logic
Microsoft has announced an update to Dynamics 365 Project Operations regarding how transactions are selected for invoices. Under the current system, project invoices typically include transactions based on the specific date the invoice is created. This can create administrative challenges for companies that wish to prepare their billing in advance, as transactions occurring between the preparation date and the end of the month may be excluded.
The role of the Accounting Date
With this update, users will be able to use an 'Accounting Date' as the cutoff for an invoice rather than the creation date. If the Accounting Date is set to a day later than the invoice date, the system will include all eligible transactions up to that point.
This means that if a billing administrator prepares an invoice on the 25th of the month but sets the Accounting Date to the 30th, any transactions recorded in those final five days will be captured. This is intended to reduce the need for manual adjustments or supplementary invoices at the start of a new period.
Financial reporting and timelines
Beyond the contents of the invoice, the Accounting Date will also dictate the specific accounting period in which the billed transactions are recorded in the general ledger. This helps align the revenue recognition with the intended billing cycle, which is useful for businesses that need to meet strict month-end closing deadlines.
Microsoft currently expects to release a preview of this feature in October 2026, with general availability scheduled for March 2027. These dates are subject to change, and we do not yet know if there will be any additional licensing requirements to access this specific functionality. Businesses using Dynamics 365 Project Operations do not need to take action at this time but should note the upcoming change for their long-term financial planning.