Enable progress billing resource and nonstocked scenarios

Enabled for	Public preview	General availability
Users by admins, makers, or analysts	-	Mar 14, 2025

Business value

Progress billing gives organizations more flexibility and accuracy in their invoicing process for fixed-price contracts. When you create invoices based on the percentage of work completed, your business can:

• Improve cash flow and enable incremental invoicing that matches project progress. You get steady revenue streams without waiting for full milestone completion.
• Enhance client relationships and offer transparency to customers by tying invoices directly to measurable progress. This approach fosters trust and satisfaction.
• Increase financial accuracy and reduce discrepancies and disputes by aligning billing with actual work completed. Both parties get clear documentation.
• 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 enables you to create and manage billing rules for fixed-price contract lines. With progress billing, you generate project invoices based on the percentage of work completed. This method provides more flexibility than milestone-based invoicing.

The key features are:

• Fixed-price contract lines.
• Invoicing based on the percentage of work completed, not just milestone completion.
• Tracking and updating progress percentages for milestones.
• Invoice creation that aligns with the progress you achieve.

To turn on this feature, go to the Feature Management workspace in Dynamics 365 Finance and activate the Enable Progress Billing on Project Operations for Resource-Based/Non-Stocked Scenarios feature.

Additional resources

Create a progress billing invoice schedule for a contract line (docs)