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Important
This content is archived and is not being updated. For the latest documentation, go to Dynamics 365 Project Operations. For the latest release plans, go to Dynamics 365, Power Platform, and Cloud for Industry release plans.
| Enabled for | Public preview | General availability |
|---|---|---|
| Users by admins, makers, or analysts | - | 
Mar 14, 2025 |
Business value
Progress billing provides organizations with enhanced flexibility and accuracy in their invoicing process for fixed-price contracts. By generating invoices based on the percentage of work completed, businesses can:
- Improve cash flow and enable incremental invoicing aligned with project progress, ensuring steady revenue streams without waiting for full milestone completion.
- Enhance client relationships and offer transparency to customers by tying invoices directly to measurable progress, fostering trust and satisfaction.
- Increase financial accuracy and reduce discrepancies and disputes by aligning billing with actual work completed, providing clear documentation for both parties.
- Streamline project management and simplify tracking and management of project finances by integrating billing with real-time progress updates.
- Support scalable operations, adapt to complex project timelines, and improve operational efficiency by aligning invoicing with project workflows.
Feature details
Progress billing allows users to create and manage billing rules for fixed-price contract lines. With progress billing, project invoices are generated based on the percentage of work completed, providing flexibility beyond milestone-based invoicing.
Below are the key features:
- Designed for fixed-price contract lines.
- Enables invoicing based on the percentage of work completed, not just milestone completion.
- Allows users to track and update progress percentages for milestones.
- Facilitates invoice creation aligned with the progress achieved.
To enable this feature, navigate to the Feature Management workspace in Dynamics 365 Finance and activate the feature "Enable Progress Billing on Project Operations for Resource-Based/Non-Stocked Scenarios."
Additional resources
Create a progress billing invoice schedule for a contract line (docs)