Calculate revenue recognition based on contract line value
Important
Some of the functionality described in this release plan has not been released. Delivery timelines may change and projected functionality may not be released (see Microsoft policy). Learn more: What's new and planned
Enabled for | Public preview | General availability |
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Users by admins, makers, or analysts | - | Sep 2025 |
Business value
This feature helps organizations define the contract line value on the project contract lines. Revenue recognition is calculated based upon contract line value amount.
Feature details
In Revenue recognition, Fixed price billing arrangements are used along with billing milestones to set the contract value. Customers have a need for a separate calculation for the contract value from the billing milestones when additional effort or resources may be required to complete a fixed price project or when a contract line is discounted.
The contract value is used for calculating revenue recognition while billing milestones are used to invoice the customer. Separating these values allows users to recognize revenue based on the effort or stand-alone selling price aligning better with ASC 606 and IFRS 15 requirements.