Billing Rule – Milestone Billing Project Management Dynamics AX

Hello Folks,

As mentioned in my previous post, here I am writing “Billing rule – Milestone” in project management dynamics AX. In this post, we will see how to setup milestone billing rule and invoice to customer when milestone achieved in Microsoft dynamics AX 2012 and Dynamics 365 for finance and operations (Same steps apply to D365)

Let us take same example mentioned in previous post.

Software deal: XW is the customer, has software development deal for 1, 00,000 with below payment milestone;

Milestone	Date	Description	Invoice Amount
1	1-Jan-18	Project start (FRD) 20%	20,000
2	1-Feb-18	Design and Analysis 30%	30,000
3	1-Mar-18	Development 30%	30,000
4	1-Apr-18	GO Live 20%	20,000

• Create Customer XW software development
• Create new project contract. Name it XW software deal
• Create new project type of fixed price. Name it XW software

Now, go to project. Select XW software development project. Click on project contract.

It will show below screen. Now click on Add button under billing rule tab.

• Select Milstone in line type and enter description.
• Create milestones mentioned above by clicking on new button as below.

Until here, we have created Customer, Project, Project contract, and Milestones. Now we go further and check out on-account transactions created. Further, update milestone as completed and invoice to customer.

• Check on-account transactions created

Go to, All Project > Select project > manage tab > Bill group. Click on On-account transactions. This will show milestone created under the project contract.

• Update milestone as completed

Now, as per the deal on project start the first invoice raised to customer. For this go to project contract and billing rule tab.

• Select the rule.
• Go to, Maintain tab, under process group click on manage contract status
• Click on “Update milestone status” button on top
• Now, tick on Mark as complete on first milestone for date 01-01-18 – project start and close

• Generate invoice

Now, as the milestone has achieved it’s time to raise invoice to customer for the amount. For this, go to project and manage tab, click on invoice proposal

As per above screen select the line and click on OK, then verify the invoice and post.

Now, for the other milestone created follow the same steps to invoice as achieved.

That’s it for milestone billing rule. It’s as simple.