We are announcing the ability to enable Project Revenue recognition using the percentage of completion based on the cost estimate instead of the changing estimate at completion (EAC) in Dynamics 365 Project Operations. This feature reached public preview on May 11, 2026.
How does this affect me?
Turning on the Enable Project Revenue recognition using the cost estimate instead of the EAC setting bases percentage of completion (PoC) on the cost estimate rather than the changing estimate at completion (EAC).
- Uses the original project estimate for PoC calculations to deliver stable, predictable revenue without EAC-driven fluctuations.
- Anchors revenue recognition to a fixed baseline to improve transparency and boosts confidence in reported project financials.
- Reduces reliance on changing forecasts to minimize rework and exceptions during month-end close.
- Provides clear traceability from estimate to recognition to strengthen audit readiness and compliance.
- Aligns revenue with initial project expectations to enhance visibility into true project performance and profitability.
- Creates smoother revenue trends across reporting periods to enable better executive decision-making and financial planning.
- Standardizes how teams evaluate project progress to support consistent financial processes across the organization.
This message is for awareness, and no action is required.
For more information, please reference this article: Set up cost estimates.
Source: Microsoft
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