Proforma invoicing

  • 10 minutes

In Project Operations, proforma invoices are built as an extension to the invoices in Dynamics 365 Sales. However, many differences occur in the invoicing process between Sales and Project Operations.

For example, it is not possible to create a new invoice from the Invoices list page in Project Operations, but it is possible to do so in Sales. These differences and extensions are in place to support invoicing processes for projects that are different from a typical invoice for a sales order.

Configure automatic invoice creation

You can configure automatic invoice creation in Project Operations. The system creates a draft proforma invoice based on the invoice schedule for each project contract and contract line. Invoice schedules are configured at the contract line level. Each line on a contract can have a distinct invoice schedule, or the same invoice schedule can be included on every line of the contract.

When you create an invoice, the system always creates at least one invoice for each project contract. In some cases, multiple invoices might be created.

For example, if the contract has multiple customers, the same number of invoices will be created as the number of customers that have billable transactions to invoice on that project contract.

Complete the following steps to configure an automated invoice run.

  1. In Project Operations, go to Settings > Recurring Invoice Setup.
  2. Create a batch job and name it Project Operations Create Invoices. The name of the batch job must include the words "create invoices."
  3. In the Job Type field, select None. By default, the Frequency Daily and Is Active fields are set to Yes.
  4. Select Run Workflow. In the Look Up Record dialog box, you will see three workflows:
    • ProcessRunCaller
    • ProcessRunner
    • UpdateRoleUtilization
  5. Select ProcessRunCaller and then select Add.
  6. In the next dialog box, select OK. A Sleep workflow is followed by a Process workflow.

Create a manual proforma invoice

In Project Operations, proforma invoices can be created manually, as needed. You can manually create a proforma invoice from the Project Contracts list page or from the Project Contract details page.

Project Contracts list page

From the Project Contracts list page, select one or more project contract and then create invoices for all selected records.

The system checks to see which of the selected project contracts has a Ready to Invoice status backlog that is dated before today's date. From those contracts, the system creates draft proforma invoices. If a project contract has multiple customers, one invoice might be created for each customer and multiple invoices for each project contract.

All created project invoices are available on the Invoice page in the Billing section of the Sales area.

Project Contract details page

A proforma invoice can also be created from the Project Contract details page, which creates the invoice for that specific project contract. The system verifies that the project contract has a Ready to Invoice backlog that is dated before today's date. From these contracts, the system creates draft proforma invoices based on the number of customers on each contract line.

When a single proforma invoice has been created, the Invoice page opens. If multiple invoices have been created for that project contract, then the Invoices list page opens to show all created invoices.

Manage the billing backlog

Project Operations has views to help manage the billing backlog. To manage the billing backlog, select the links in the Sales area under Billing.

The following views are available within the Lite deployment – deal to proforma invoicing scenario:

  • Retainers and Advances - Lists all retainers and advances across all project contracts in the system. After a retainer or advance is invoiced, the amount of the advance becomes available for use.

  • Available Retainers and Advances - Lists all available retainers and advances across all project contracts in the system. After a retainer or advance is invoiced, the amount of the advance becomes available for use and is added to the list. After the amount of the retainer or advance is used completely, it is removed from the list.

  • Fixed Price Milestones - Lists all fixed price milestones across all project contract lines in the system. Single or multiple milestones can be marked as Ready to invoice or Not ready to invoice from this view. Marking a milestone as Ready to invoice makes it available to be put on a draft invoice.

  • Product Billing Backlog - Lists all product-based contract lines across all project contracts in the system. Single or multiple product-based contract lines can be marked as Ready to Invoice or Not Ready to Invoice from this view. Marking a product-based contract line as Ready to Invoice makes it available to be put on a draft invoice.

    A product-based contract line that is on a draft invoice is shown in this view with a billing status of Customer Invoice Created. When the draft invoice is confirmed, the billing status on this record is updated to Customer Invoice Posted.

  • Time and Material Billing Backlog - Lists all unbilled sales actuals across all project contracts in the system that have not been invoiced. Single or multiple unbilled sales actuals can be marked as Ready to Invoice or Not Ready to Invoice from this view. Marking an unbilled sales actual as Ready to Invoice makes it available to be put on a draft invoice.

Learn more about invoicing in the Get started with invoicing in Dynamics 365 Project Operations module.