Views:

Applies to Product – Dynamics 365 Project Operations


What’s happening?
The customer reported an inability to carry out a prepayment on an on-account project transaction and was unable to make deductions from the created invoice.


Reason:
The underlying cause identified was an error stating "no account number exists for account type invoiced revenue-on-account for project," indicating that the system does not consider the categorization of the ledger posting setup.


Resolution:
To mitigate this, the following steps were taken:
- The customer advance functionality uses on-account transactions. Check that there is an account for Invoice revenue on-account posting going to Project management and accounting> Setup> Posting> Ledger posting setup> Revenue accounts tab and then select Invoiced revenue - on-account option in Ledger account types field.
- Review steps followed to post the customer advance and select deduction in the project invoice proposal:
1. Defining and requesting a customer advance: In Dynamics 365 Finance, go to Project management and accounting > Projects > All projects and select a project. On Manage tab into Bill group, click on Customer advance option and then Request a customer advance. Introduce the following information:

  • Invoice date when the customer advance invoice will be posted.
  • Description for customer advance.
  • Advance amount that will be included in the on account invoice.
Click OK button to create a new invoice proposal.
2. Post the invoice for the customer advance requisition. For that, click Post button for Invoice proposal created from customer advance. The customer advance transaction is displayed in the Invoice Proposal Transactions window as an on-account transaction.
3. Once transactions are posted in the project, follow these steps to post project invoice with corresponding deduction from customer advance:
1. Navigate to Project management and accounting> Project> All projects to select the project for which the customer advance is requested. On the action pane, on the Manage tab, in the New group, click the Invoice proposal option.
2. In the Create Invoice proposal page, on the Advance and deduction tab, you will find the customer advance transaction is displayed as negative value indicating that this is applied as a deduction to the invoice amount.
3. Click OK button to create the project invoice proposal.
4. Review information, approve if needed and post the project invoice with advance deduction transaction.
- Check that an on-account transaction type Deduction is created since Project list page> Manage tab> On-account transactions option. Mark Show deductions check box to see deduction transaction and ensure that there is one with the same amount but in negative, and invoice status Chargeable.


For additional information on prepayments, refer to the documentation provided in the case. On-account invoicing