Billing Rule – Progress billing project management Microsoft Dynamics AX 2012

Hello Folks, let’s see one more billing rule - Progress billing in project management AX 2012
and Dynamics 365 for finance and operations (Same steps apply to D365)

Progress billing rule can be used when project billing needs to be done based on the work completed.  

Different billing rules mentioned my in previous post.

Let’s take an example:  there is deal with the customer for the Modular Kitchen with 1,50,000 Rs. For construction company. There is mutual agreement that company will bill based on work completed as required.

• Design
• Execution
• Install

Steps to follow:

I hope you know the below steps:

• Create project contract
• Create time and material project

So, let jump to main part of the progress billing rule

• Create project budget

For progress billing it is required to define the budget for the project so let’s define the budget for

• Hours: cost hours to be consumed to design, execute and install modular kitchen

For this check:  

• Project management parameter > cost control. Tick on use budget control
• Forecast models must be created: Remaining forecast and Original Forecast

Go to > All Projects > Plan tab > Project Budget

Create budget shown in below:

Budget approval is mandatory and for approval workflow has to be configured. To configure workflow go through Project budget approval workflow ax 2012

• Create Progress billing rule on project contract

1. Go to Project contracts and select the contract we created earlier.
2. Billing rule fast tab and click new. Now create as below
1. Line type = Progress
2. Project = ANP-00007 (Your project)
3. Category = Fee
4. Contract value = 150000

5. On selected projects click on chargeable categories and select as below:

• Hours transactions

Now create hours’ transaction for the project. Create hours’ journal for 32 hours of design category and post. Be sure to check cost and sales price

• Create invoice proposal

Go to Project > Manage tab > invoice proposal

It will show 22429.91 as invoice amount.

Let’s calculate this now:

I have setup cost amount per hours as 500. So 32 * 500 = 16000, so 14.9532 % of work has been completed as per budgeted cost.

14.9532 % of contract value is 33429.91.

Important:

Do not forget to define fee journal. Also setup default fee journal on project management parameter on journal tab

Cheers !!! comment if you like this post.