Summary
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.
Microsoft 365 Message Center ID: MC1453382
Last Modified: August 12, 2026
Published: 8/12/2026
Severity: Normal
Category: Stay Informed
Tags: New feature
Status: Launched
Products & Platforms: Dynamics 365 Apps
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.