MC1453424 – M365 Change Digest

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Project Revenue recognition in Dynamics 365 Project Operations can now use cost estimates instead of EAC, providing steadier revenue, improved compliance, and easier audits. GA on Sept 11, 2026.

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We are announcing the ability to enable Project Revenue recognition using cost estimates instead of EAC in Dynamics 365 Project Operations. This feature will reach general availability on September 11, 2026.

How does this affect me?
This feature enables users to project forecast or budget to calculate percentage of completion instead of the current estimate at completion (EAC), giving steadier revenue, clearer insights, and easier audits.

Once enabled, this feature's capabilities include:

Using the original project estimate for PoC calculations: Delivers stable, predictable revenue without EAC-driven fluctuations.
Anchoring revenue recognition to a fixed baseline: Improves transparency and boosts confidence in reported project financials.
Reducing reliance on changing forecasts: Minimizes rework and exceptions during month-end close.
Providing clear traceability from estimate to recognition: Strengthens audit readiness and compliance.
Aligning revenue with initial project expectations: Enhances visibility into true project performance and profitability.
Creating smoother revenue trends across reporting periods: Enables better executive decision-making and financial planning.
Standardizing how teams evaluate project progress: Supports consistent financial processes across the organization.

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

For more information regarding this feature, please visit Enable Project Revenue recognition using cost estimate instead of EAC.

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