Header details for project-based contracts

Applies To: Project Operations Integrated with ERP

This article provides information about fields that apply to the entire project contract including settings that impact all contract lines. Information about the contract that is summarized across all the line items to drive KPIs of the project contract is also included.

The following table lists the fields on a project contract that are unique to Dynamics 365 Project Operations or have some important changes in behavior from sales orders in Dynamics 365 Sales.

Field	Location	Description	Downstream impact
Type	Summary tab (hidden)	This is an option set field with the following options: - Work-based (Available only when Project Operations is installed) - Item-based (Available only when Project Operations and Sales are installed) - Service Maintenance-based (Available when Dynamics 365 Field Service is installed)	In Project Operations, the value of this field defaults toWork-based and classifies the contract as a project-based contract. A contract should be project-based to enable all project-specific extensions and functionality.
Owning Company	Summary tab	The legal entity that accounts for the costs and revenue that accrues from the projects associated with this project contract. When a contract is created from a quote, this field is copied from the corresponding field on the quote record.	The owning company equates the concept of legal entity in the Project management and accounting module of Project Operations. All costs and revenue accrued from this project are accounted for in the General Ledger of the owning company.
Customer	Summary tab	A reference to the customer's company or account record. When a contract is created from a quote, this field is copied from the corresponding field on the quote record.	The currency on the project contract defaults based on the currency of the customer. The currency can be changed before the contract is saved.
Account Manager	Summary tab	The name of the Account Manager for this deal. When a contract is created from a quote, this field is copied from the corresponding field on the quote record.	The Account Manager is responsible for managing the relationship with the customer through the completion of the project. Based on the bookable resource record tied to the Account Manager, the contracting unit defaults on the project contract.
Contracting Unit	Summary tab	The organization unit responsible for the delivery of the projects associated with this contract. When a contract is created from a quote, this field is copied from the corresponding field on the quote record.	The contracting unit is the division of the company that executes the projects. Every contracting unit has a currency, and this currency is used to report estimated and actual costs incurred during the project.
Product Price List	Summary tab	This price list is used to default prices on product-based contract lines. The list of drop-down options for this field shows a list of price lists where the price list currency matches the currency on the contract. When a contract is created from a quote, this field is copied from the corresponding field on the quote record. On the project contract, this field is defaulted from the account record but can be changed.	There is no downstream relevance for this field.
Currency	Summary tab	The currency used to report the value of this deal and the currency in which the customer will be invoiced. When a contract is created from a quote, this field is copied from the corresponding field on the quote record. On the project contract, this field defaults from the account record but can be changed.	After a contract is saved, this field is no longer editable. This field is used to default the product and project price lists on the contract. The currency on the contract is used to match the currency on the price list.
Not-to-Exceed Limit	Summary tab	This field indicates the negotiated cap on the final value that the customer has agreed to for this deal.	The cap is evaluated during execution and is applicable across all line items and projects associated with this deal.
Requested Delivery Date	Summary tab	When a contract is created from a project quote, this field is copied from the corresponding field on the project quote.	This date is used as the end date to generate invoice schedules.

The following KPIs are available on the Contract Performance tab of a project contract.

Field	Location	Description
Contract Value	Overall contract	The total value of the Project contract.
Billed Amount	Overall contract	The sum of the amounts on all invoices against this contract.
Cost Incurred	Overall contract	The sum of all cost actuals logged on all projects that are mapped to the contract.
Gross Margin	Overall contract	Billed amount - Cost incurred till date / Billed amount
Expected Margin	Overall contract	(Contract value - Estimated costs) / Contract valueEstimated costs = The sum of all estimated costs on all projects mapped to the contract.
Contract Value	Project-based lines	The value of the contract line.
Billed amount	Project-based lines	For fixed price contract line: The sum of the amounts on all billed sales milestone actuals against this contract line on various invoices created for this contract. For time and material contract line: The sum of the amounts on all chargeable billed sales actuals against this contract line on various invoices created for this contract.
Cost Incurred	Project-based lines	The sum of all cost actuals logged on all projects mapped to the contract line.
Gross Margin	Project-based lines	(Billed amount - Cost incurred till date) / Billed amount
Expected Margin	Project-based lines	(Contract line amount in base currency - Estimated costs for the contract line in base currency) / Contract line amount in base currency
Cost Incurred	Detail of a project-based line	Time: The sum of the amount on time cost actuals logged for this role on the project mapped to the contract line. Expenses: The sum of the amount on all expense cost actuals logged for this category on the project mapped to the contract line.
Logged Quantity	Detail of a project-based line	Time: All of the time quantity on the time cost actuals for a role on the project that is mapped to this contract line. Expenses: All quantities for this expense category on the expense cost actuals on the project are mapped to this contract line.
Billed Amount	Detail of a project-based line	For a fixed price contract line, this field is left blank on the detail level and is only shown at the contract line level. For a time and material contract line, calculations are completed at the details level. The details show the sum of the amount on all the billed revenue lines against this contract line that are chargeable.
Billed Quantity	Detail of a project-based line	For a fixed price contract line, this field is left blank on the detail level and is only shown at the contract line level. For a time and material contract line, calculations are completed at the details level for time and expenses. Time: The sum of the hours on all the billed revenue lines for this role against this contract line that are chargeable. Expenses: All quantities for this expense category on the expense cost actuals on the project are mapped to this contract line.
Contract Value	Product-based lines	The contract line value of this product-based contract line.
Billed Amount	Product-based lines	The sum of the amounts on all invoice lines against this product-based contract line on various invoices that are created for this contract.
Cost Incurred	Product-based lines	The sum of all cost actuals logged for the product-based contract line.
Gross Margin	Project-based lines	Billed amount - Cost incurred till date / Billed amount
Expected Margin	Product-based lines	(Contract line value - Estimated costs for the contract line) / Contract line value