Project budgets and actuals are disconnected
Planned resource, item and expense values are difficult to compare with posted activity and financial results.
PROJECT MANAGEMENT
Project Management in Business Central
Connect project planning, resources, time, purchasing, material usage, invoicing, WIP and profitability in one Business Central project-accounting process.
PROCESS & FIT
Connect Project Delivery to Project Accounting
Business Central Projects brings project structure, resource planning, time, supplies, usage, billing and WIP into the same ERP as finance. The design should start with how projects are budgeted, staffed, costed, billed and recognized financially.
- Project tasks & planning lines
- Resources, time & project supplies
- Billing, WIP & profitability
Common Project Delivery and Accounting Challenges
Project teams often manage delivery in one place and accounting in another. Business Central can reduce the gap between planning, time, purchasing, invoicing and financial control.
Time capture is inconsistent
Resource time is recorded late, outside the ERP or without a clear approval and posting process.
Project purchases are hard to trace
External services, items and expenses are not consistently connected to the project and task that consumed them.
Billing schedules live in spreadsheets
Billable work and invoice timing depend on manual trackers rather than project planning and usage data.
WIP is difficult to reconcile
Finance spends time rebuilding project progress and recognition calculations at period end.
Resource costs and prices are unclear
Internal cost, billing rate and capacity assumptions are not managed consistently across projects.
Project profitability arrives too late
Managers cannot easily see cost, revenue, billable value and margin while the project is still active.
Project and finance teams use different data
Delivery, invoicing and accounting reports require repeated reconciliation before they can be trusted.
Structure Projects, Tasks, Budgets and Commercial Planning
Set up the project structure and planning model first so resources, material, billing and accounting can follow the same project and task hierarchy.
Project Cards
Maintain the customer, responsible person, posting setup, billing details, dates, dimensions and other project controls in one project record.
Project Tasks
Break the project into tasks so planning, usage, billing and WIP can be controlled at the level that matches how work is delivered.
Project Planning Lines
Plan resources, items and G/L account activity using budget, billable or combined budget-and-billable planning lines.
Project Budgets
Build planned quantity, cost, price and billable value across project tasks and compare the plan with actual project activity.
Project Posting Groups
Connect project usage, WIP, cost and sales posting to the general ledger through a controlled posting-group design.
Dimensions
Use dimensions to analyze projects by department, business unit, customer segment, region or other management-reporting structure.
Locations
Associate projects with locations where project materials, inventory handling or site-specific supply processes are required.
Customer & Billing Setup
Define the customer and billing approach for the project, including task-level customer scenarios where the commercial model requires them.
Plan and Capture the People Effort Behind Project Delivery
Connect resource master data, capacity, cost, price and time capture so project labor is visible in both operational and financial reporting.
Resources
Represent employees, consultants, equipment or other capacity that is planned and consumed on projects.
Resource Groups
Group similar resources for planning, pricing, availability and reporting where individual-level setup is not required.
Resource Costs
Maintain internal resource cost so posted time and usage contribute to meaningful project cost and margin analysis.
Resource Prices
Set selling prices for project resources and support differentiated project billing rates where the commercial model requires them.
Resource Capacity
Maintain available capacity by period so planners can compare demand against the time resources can realistically provide.
Work Types
Differentiate types of work and related pricing or cost treatment for resource activity when the project requires it.
Time Sheets
Capture time against projects and tasks so labor usage can flow into project accounting and billing processes.
Time Review & Approval
Design a controlled submission, review, approval and posting process that matches how resource time should be governed.
Connect Project Consumption and External Cost to the Project
Record the resources, materials, expenses and vendor services used to deliver work so cost and usage remain traceable to the relevant project task.
Project Journals
Post resource, item and G/L account usage directly to projects and tasks through project journals.
Resource Usage
Record actual resource consumption so time and cost are reflected in project ledger activity and profitability.
Item Usage
Consume inventory items on projects and connect material usage to project cost and inventory accounting.
G/L Project Costs
Record project-related expenses or charges through G/L account usage when the cost does not belong to a resource or inventory item.
Project Purchase Orders
Purchase items or services for a project and task so external cost is linked to the project rather than treated as an unrelated payable.
Project Purchase Invoices
Post vendor invoices for project supplies and services while retaining the connection to project accounting.
External Resources
Use purchasing for subcontractors or external specialists when project work is delivered by a vendor rather than an internal resource.
Warehouse & Tracking Integration
Use project material handling with picks, reservations, item tracking or related inventory processes where the warehouse setup requires it.
Turn Planned and Delivered Work into Controlled Billing
Use project prices and billable planning lines to create a repeatable connection between work delivered, commercial terms and customer invoicing.
Resource Pricing
Set project selling prices for resources or resource groups and align billing rates with the commercial model.
Item & G/L Pricing
Define prices for project materials and G/L based charges where they form part of billable project activity.
Billable Planning Lines
Identify the quantities and values intended for customer billing separately from internal budget and usage planning.
Scheduled / Progress Billing
Create project invoices during the project from billable planning lines rather than waiting until every project activity is complete.
Completion Billing
Invoice remaining billable project activity at completion when the commercial model is based on final delivery.
Partial Invoicing
Invoice eligible project quantities in stages while leaving the remaining plan available for later billing.
Multiple Customer Billing
Support task-level sell-to or bill-to customer scenarios where different parts of a project must be billed to different parties.
Project Sales Invoices
Generate sales invoices from project billing data so project revenue remains connected to the originating project and task.
Connect Project Progress to Period-End Finance
Use project WIP and ledger data to support period-end recognition, financial reporting and ongoing review of project performance.
Project WIP Setup
Select and configure the WIP approach that matches the organization’s accounting policy and project commercial model.
Cost Value
Use a cost-based WIP method where the financial treatment is driven by project cost and invoicing progress.
Sales Value
Use a sales-value WIP method where recognition is based on project sales values and progress.
Cost of Sales
Use cost-of-sales based WIP where project recognition rules require the corresponding treatment of cost and sales.
Percentage of Completion
Recognize project progress using a percentage-of-completion approach when it matches the organization’s accounting policy.
Completed Contract
Use completed-contract treatment where cost and sales recognition is deferred until the project reaches the required completion point.
Calculate & Post WIP
Calculate project WIP and post the resulting entries to the general ledger as part of the period-end process.
Project Ledger Entries
Review posted project cost, price, usage and sales activity through project ledger entries and related financial transactions.
Review Budget, Usage, Billing and Profitability with Connected Data
Project planning and posted activity can support operational review, financial analysis and additional reporting through Excel, Analysis Mode and Power BI.
Budget vs Actual
Compare planned quantity, cost and price with posted project activity to identify overruns and delivery variance.
Cost & Revenue
Review project cost, invoiced value and recognized project activity using the underlying project and finance transactions.
Billable vs Invoiced
Understand what has been planned as billable, what has already been invoiced and what remains to be billed.
Resource Usage
Analyze resource consumption and project time to understand where capacity and effort are being spent.
Project Profitability
Bring cost, billing and project ledger activity together to review project margin and performance.
Excel & Analysis Mode
Use Business Central lists, analysis features and Excel for ad hoc review of project data where appropriate.
Power BI
Extend project analysis with Power BI when broader KPI, trend or management reporting is required.
Dimensions & Finance Reporting
Use shared dimensions and general-ledger integration to analyze project performance alongside the rest of the business.
Business Central Projects for Project Accounting and Delivery Control
Business Central is well suited to project accounting, resources, time, project supplies, cost, billing, WIP and profitability. Advanced portfolio management, sophisticated resource optimization, detailed project scheduling, complex PSA automation or specialist revenue-management processes may require complementary Microsoft or third-party solutions.
What Better Project Control Can Look Like
The value comes from connecting project delivery and finance so managers can act on project performance before issues become period-end surprises.
One Project Structure
Use a consistent project and task model for planning, usage, billing and financial review.
Better Time Visibility
Bring resource time into project cost and billing instead of relying on disconnected trackers.
Connected Project Costs
Link resources, items, purchases and expenses to the project that consumed them.
Controlled Billing
Use billable planning and posted project data to support repeatable customer invoicing.
Cleaner WIP
Use configured project WIP methods and posting rules instead of rebuilding recognition calculations manually.
Earlier Profitability Insight
Review budget, cost, billable value and invoicing while the project is active.
Shared Project & Finance Data
Reduce reconciliation by keeping project accounting and financial posting within the same ERP environment.
Scalable Reporting
Extend operational project reporting with dimensions, Excel, Analysis Mode and Power BI where needed.
Project Capability Assessment
Where Business Central Projects Can Fit Well
Project/task structure • Planning lines • Resources & capacity • Time sheets • Items & purchases • Project billing • WIP • Project accounting • Budget vs actual • Profitability • Dimensions • Power BI.
Project Requirements to Review
Advanced portfolio management • sophisticated resource optimization • detailed project scheduling • specialist PSA workflows • complex contract/revenue management • CRM-led project delivery • external project portals or collaboration requirements.
Why Leaforge for Business Central Projects
Leaforge helps align project setup with the way your teams plan work, capture time and cost, bill customers, recognize WIP and review profitability.
Frequently Asked Questions
Here are common questions about Business Central project management. The best design depends on your project model, billing rules, accounting policy, users and integration requirements.
Can Business Central manage project tasks and planning lines?
Yes. Projects can be structured with tasks and project planning lines for resources, items and G/L accounts. Planning lines can support budget, billable, or combined budget-and-billable planning depending on how the project is managed.
Can Business Central manage project budgets and actuals?
Yes. Planned project values can be compared with posted resource, item, purchase and G/L usage so project managers and finance teams can review budget, actual cost, billable value and project progress.
Can Business Central use time sheets for projects?
Yes. Resources can record project time through time sheets, and organizations can design submission, approval and posting processes around their resource and project-accounting requirements.
Can resource costs, prices and capacity be managed?
Yes. Resources and resource groups can be set up with costs, prices and capacity so planning lines and project usage reflect the commercial and operational model used by the business.
Can project purchases and external resources be tracked?
Yes. Items, services and external resources can be purchased for projects and connected to project accounting so relevant costs and usage are visible against the project and task.
Can warehouse handling be used for project materials?
Yes, where the project and location setup supports it. Project material handling can work with inventory picks, warehouse picks, reservations, item tracking and related supply processes when required.
Can projects be invoiced in stages?
Yes. Project invoicing can be generated from billable planning lines and can support invoicing during the project or when work is completed, depending on the agreed billing structure.
Can one project bill multiple customers?
Business Central can support customer billing at project-task level in supported scenarios, allowing different sell-to or bill-to customers to be associated with project tasks when the commercial model requires it.
How does project WIP work in Business Central?
Business Central provides project WIP calculation and posting methods for period-end recognition of project cost and sales. The selected WIP method and posting setup should match the organization’s accounting policy and project commercial model.
Can project profitability be reviewed?
Yes. Project planning, usage, invoicing, ledger entries and WIP provide the basis for reviewing project cost, revenue, billable value, budget-versus-actual performance and margin.
Can Power BI be used for project reporting?
Yes. Business Central project and finance data can be analyzed with Power BI, subject to the reporting model, permissions and licensing selected for the solution.
Is Business Central a full PSA or portfolio-management platform?
Business Central is strong for project accounting, resources, time, cost, billing and WIP. Advanced portfolio management, sophisticated resource optimization, detailed scheduling or specialist PSA processes may require complementary Microsoft or third-party solutions.
What project data should be prepared for implementation?
Typical preparation includes customers, projects, tasks, planning lines, resources, resource groups, costs and prices, work types, dimensions, locations, open project activity, billing rules and the finance data required for go-live.
Build a More Controlled Business Central Project Process
Tell us how projects are planned, resourced, costed, purchased, billed and recognized. We can help assess standard Business Central Projects fit and any PSA, reporting or integration requirements.