Episode 6 How to setup fixed price project in Dynamics 365 Finance and Operations.

1. Project Setup

Project Type: Ensure the project is correctly defined as "Fixed Price."
Contract Line: Create a contract line with the fixed price agreed upon with the customer.
Milestones (Optional): If applicable, create milestones within the contract line to trigger revenue recognition at specific project stages.  
Revenue Recognition: Configure the project group with the appropriate revenue recognition method (e.g., percentage of completion, completed contract).  
2. Project Execution

Track Progress:
Time Entries: Record time spent by resources on the project.  
Expense Entries: Record project-related expenses.
Material Entries: Record the consumption of materials.
Run Estimates: Periodically run estimates to calculate the revenue that can be recognized based on project progress.
3. Invoice Generation

On-Account Invoicing (Milestones):
If milestones are defined, mark them as "Ready to Invoice" when they are achieved.
The system will generate on-account invoices based on the milestone amounts.
Percentage of Completion Invoicing:
Run estimates to determine the revenue recognized to date.  
Generate invoices based on the recognized revenue.
Completed Contract Invoicing:
Generate a single invoice upon project completion for the full contract price.
4. Invoice Process

Create Invoice Proposals: The system will generate invoice proposals based on the recognized revenue and invoicing method.
Review and Adjust: Review the invoice proposals for accuracy and make any necessary adjustments.
Post Invoices: Post the invoices to create customer invoices.
5. Considerations

Invoicing Frequency: Determine the frequency of invoicing (e.g., monthly, upon milestone completion).  
Payment Terms: Define payment terms (e.g., net 30 days) on the customer invoice.
Invoice Schedules: Configure invoice schedules to automate the invoicing process.
Key Points:

Accurate Revenue Recognition: Ensure that revenue is recognized correctly based on the project's progress and the chosen method.
Milestone-Based Invoicing: If using milestones, accurately track their completion to trigger timely invoicing.
Regular Reviews: Regularly review project progress, estimates, and invoices to ensure accuracy and identify any potential issues.  
Note:

This is a general overview. Specific steps and configurations may vary depending on your D365FO version and organizational requirements.
Refer to the official D365FO documentation for detailed instructions and best practices.
By following these steps and carefully configuring your project settings, you can effectively set up and generate project invoices for your fixed-price projects in D365FO, ensuring accurate billing and efficient cash flow management.