MC1453382 – M365 Change Digest

One-line summary

Dynamics 365 Project Operations will allow revenue recognition to be managed separately from billing milestones for fixed-price contract lines starting September 11, 2026.

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We are announcing the ability to set a dedicated contract line value and calculate revenue recognition separately from billing milestones for fixed-price project contract lines in Dynamics 365 Project Operations. This feature will reach general availability on September 11, 2026.

How does this affect me?
With this feature, organizations can now manage contract values independently of billing milestones when calculating revenue recognition for fixed-price project contracts. The system calculates revenue recognition based on the contract line value amount.

Separate revenue recognition from invoicing: Define a contract line value independently of billing milestones. Use the contract line value to calculate revenue recognition while continuing to use billing milestones for customer invoicing.
More accurate financial representation: Calculate revenue recognition based on stand-alone selling price or project effort, including scenarios where additional effort is required to complete a project or when contract lines include discounts.
Support for accounting requirements: Align revenue recognition practices more closely with ASC 606 and IFRS 15 compliance.

What action do I need to take?
This message is for awareness, and no action is required.

If you would like more information about this feature, please visit Calculate revenue recognition for stand-alone selling price contract lines.

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