Confirm project vendor invoices
When you enable the Manual confirmation by PM is required parameter, vendor invoices that you create in Microsoft Dataverse have the Draft status. When you disable the Manual confirmation by PM is required parameter, it automatically confirms vendor invoices created in Dataverse.
After you've verified all lines on a vendor invoice, select Confirm to confirm the vendor invoice.
When you select Confirm on a vendor invoice, the following behavior occurs: The status of the vendor invoice updates to Confirmed, and then the confirmed vendor invoice becomes read-only and you can't edit or delete it. If cost actuals reference the vendor invoice line as part of the matching process, it reverses all cost actuals that are associated with the referenced vendor invoice line.
You can create new cost actuals by using the information on the vendor invoice line. You can no longer create correction journals, process recalls of time entries, or cancel the approval of original time, expense, or material actuals that you reversed. In Dynamics 365 Finance, the Project cost value updates using the Project integration journal, and the Procurement integration account reverses after the Project integration journal posts.
You can also use Project proforma invoice processing to conveniently choose multiple Project invoices that have undergone review. You can also confirm the invoices all at once to generate billed sales actuals. This will significantly simplify the confirmation process and enhance efficiency in managing invoices.
Block vendor payments for vendor invoices until PM approval
Your organization can withhold vendor payments for vendor invoices until they receive approval from the project manager in Dataverse. This feature ensures that the project manager performs three-way matching in Dataverse, the subcontractors invoice is approved, and the invoice is reconciled with the services that were delivered. Once the project manager has given their approval, the accounts payable team can create subcontractor payments leveraging the payment proposal process or payment journals.
To enable this feature, go to the Feature management workspace in Dynamics 365 Finance and select Enable Hold Vendor Payment for vendor invoices till PM confirms the invoice for resource based/non-stocked scenarios. Once you have enabled the feature, you must ensure that the mapping for Project Operations integration project vendor invoice export entity V2 and msdyn_projectvendorinvoices uses version 1.0.0.0 or later.
After you have successfully enabled the feature and confirmed the mapping has been updated, you must set up parameters for subcontract vendor invoice verification and vendor payment blocking. To do this, go to Project management and accounting > Setup > Project management and accounting parameters. Select the Financial tab. Select the toggle to Yes for Manual verification by PM is required if you would like the project manager to verify the invoice in Dataverse. Once the manual verification by PM is required field is enabled to Yes, the Block vendor payments till PM confirmation field becomes available. If you would like the vendor payment to be blocked until the program manager approves the vendor invoice in Dataverse, set the option to Yes.