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Applies to: Project Operations integrated with ERP deployments.
Beginning balances, also called opening balances, are transactions incurred outside Dynamics 365 Project Operations before you set up the project in the system. These balances typically arise in scenarios such as:
- Migrating from a legacy ERP system.
- Previously maintaining financial records by using other tools or manual processes.
Move opening balances for projects, customers, and related financial data into Project Operations to maintain continuity and accurate reporting. This process sets initial values for costs, revenue, work in progress (WIP), and billing.
Use this article to manage and import project opening balances in Project Operations. The feature integrates with Microsoft Dynamics 365 Finance.
Prerequisites
Feature
Turn on the Enable beginning balances in Project Operations Integrated with ERP feature in Dynamics 365 Finance.
Minimum version required
Use Dynamics 365 Finance version 10.0.46 or later for Project Operations integrated deployments.
Import beginning balances
Enter beginning balances for in-progress projects when you implement Project Operations. In the integrated Project Operations scenario, the system generates beginning balance amounts from actuals as of a specified date. This date is the cut-off date and assumes the General ledger is updated. This setup ensures the fixed price revenue recognition process calculates correctly. After you integrate and post the balances, run the revenue recognition process for the beginning balances.
Project management and accounting parameters
To create beginning balances as of a specified date, follow these steps.
- Go to Project management and accounting > Setup > Project management and accounting parameters.
- On the General tab, select Create beginning balances.
- In As of date, enter the cut-off date.
- Select the beginning balance journal name.
Note
The Cut-off date field becomes non-editable after the first transaction is posted using the Beginning Balance journal.
Import beginning balances
When you import Actuals into Finance from Project operations on or before the As of date, the system creates Beginning Balance journal lines instead of Project Operations integration journal lines.
Beginning balance journals don't generate general ledger accounting entries; they only update the project subledger.
To generate the beginning balances in Dynamics 365 Finance, follow these steps.
- Go to Project management and accounting > Periodic > Project operations integration > Import beginning balances.
- Select Ok to generate the beginning balance journal.
Note
Transactions generated in Project Operations actuals after the cut-off date import through the Import from staging process and are processed by the Project Operations integration journal.
Beginning balance journal
After you run the Import beginning balances process, the system creates a Beginning balance journal and its lines. The journal includes all Project Operations actual transactions dated on or before the cut-off date to establish the opening balances.
To view and post the beginning balance journal, follow these steps.
- Go to Project management and accounting > Journals > Beginning balance.
- Select Lines.
- Select Post to post the beginning balance journal.
The system generates the project subledger immediately after you post the project balance journal.
| Contract line type | Transaction type | Cost status | Accrued revenue | Transaction status |
|---|---|---|---|---|
| Time & Material | Project cost | Profit & loss | Not applicable | Posted |
| Time & Material | Unbilled sales | Not applicable | Default from Project cost and revenue profile rule | Posted |
| Time & Material | Billed sales | Not applicable | Profit and loss | Fully invoiced |
| Fixed price | Project cost | Default from Project cost and revenue profile rule | Not applicable | Posted |
| None (No contract line) | Project cost | Profit and loss | Not applicable | Posted |
Note
Use Project Operations journals to upload beginning balances. After confirmation, the actuals generate beginning balance journals in Dynamics 365 Finance.
Posting the beginning balance journal doesn't generate financial transactions; it only generates the project subledger.
Billed Milestones and retainers aren't supported yet with this feature. To migrate billed milestones, learn more in Migrate fully invoiced billing milestones at cutover.