Microsoft Dynamics 365 Project Operations

Modules & Capabilities Overview • June 2026

End-to-end project lifecycle management — from opportunity and contract through planning, execution, and closure — with Copilot-assisted guidance.

CapabilityWhat It Does
Project Contracts & Quotes Define project contracts, billing methods (fixed-price, T&M, milestone), and contractual terms linked directly to project execution
Work Breakdown Structure Build hierarchical task structures with duration, dependencies, and resource assignments — integrated with Microsoft Project for the web
Project Tracking & Status Monitor progress against plan with earned value metrics, cost-to-complete estimates, and AI-generated project health summaries
Change Order Management Manage scope changes with formal change order workflows that update contracts, budgets, and schedules simultaneously
Risk & Issue Management Identify, log, and track project risks and issues with impact scoring, mitigation plans, and escalation workflows

Match the right people to the right projects — with skills-based staffing, utilization tracking, and proactive capacity planning.

CapabilityWhat It Does
Skills-Based Staffing Search and book resources by skill, role, location, and availability to ensure the right people are assigned to every project
Resource Scheduling Visualize resource bookings across all projects with a schedule board showing utilization, conflicts, and open capacity
Utilization & Capacity Track billable vs. non-billable utilization for every resource with targets, actuals, and trend analytics for staffing decisions
Generic Resource Planning Plan projects using generic resource roles before named resources are confirmed, enabling early-stage staffing estimation
Subcontractor Management Create and manage subcontract agreements, link subcontractors to project tasks, and track their time and expenses against budgets

Streamlined capture of billable hours and project expenses — on any device — with configurable approvals and policy enforcement.

CapabilityWhat It Does
Time Entry & Approval Enter time weekly or daily against project tasks with Copilot-assisted suggestions based on calendar and recent work patterns
Expense Reports Submit and approve expense reports with receipt capture, category policies, per diem rates, and credit card reconciliation
Mobile Time & Expense Log time and expenses from any mobile device with offline support, camera-based receipt scanning, and GPS mileage tracking
Approval Workflows Configure multi-level approval workflows for time and expenses with automated routing, delegation, and exception handling
Policy Enforcement Define and enforce expense policies with spend limits, per diem rates, and project-specific rules applied automatically at submission

Accurate project billing and compliant revenue recognition — from milestone invoicing through IFRS 15 / ASC 606 compliance.

CapabilityWhat It Does
Project Invoicing Generate project invoices automatically based on milestones, time & material actuals, or retainer schedules with customer review workflows
Revenue Recognition Recognize revenue over time using percentage-of-completion, milestone, or completed-contract methods in compliance with IFRS 15/ASC 606
Work in Progress (WIP) Track unbilled revenue, deferred cost, and WIP balances with automated accounting entries that reconcile to the general ledger
Intercompany Billing Bill and recognize revenue across legal entities for complex, multi-entity project delivery structures
Cost Management & Budgets Track actual costs against approved budgets with variance analysis, ETC, EAC, and cost-at-completion forecasting

AI embedded throughout the project lifecycle — from Copilot-powered planning to predictive risk alerts and intelligent resource recommendations.

CapabilityWhat It Does
Copilot in Project Operations AI assistant for generating project plans, summarizing status, drafting status reports, and answering questions about project data
AI Project Summaries Generate executive-ready project status summaries combining schedule, cost, and risk data with AI-written narrative analysis
Intelligent Resource Matching AI recommends the best-fit resources based on skills, availability, past project performance, and learning from historical assignments
Predictive Cost & Risk Machine learning models flag at-risk projects, predict cost overruns, and recommend corrective actions before issues escalate
Time Entry Copilot Copilot suggests time entries based on calendar meetings, emails, and recent tasks — reducing administrative burden for consultants

Real-time project portfolio visibility — from individual project health through practice-level profitability and resource utilization trends.

CapabilityWhat It Does
Project Analytics Dashboards Pre-built dashboards showing project health, earned value, cost-to-complete, and schedule performance across the portfolio
Resource Utilization Reports Analyze billable utilization, bench time, and capacity gaps by resource, role, and practice with trend and forecast views
Financial Performance Track project margin, revenue, invoiced-to-date, and remaining budget with drill-through from summary to transaction level
Power BI Integration Connect Project Operations data to Power BI for custom dashboards, cross-project analysis, and executive portfolio reporting
Practice & Portfolio Analytics Roll up project KPIs across practices, geographies, and client segments for strategic portfolio management and investment decisions

Product Roadmap

2026 Release Wave 1 (Apr – Sep 2026) — Source: Microsoft Learn Release Plans

FeatureCategoryGA Date
Record task progress from the tasks grid in Project OperationsProject PlanningReleased May 22, 2026
Implement access restrictions in Project for the web iFrameProject PlanningReleased Jun 2026
Use stocked products in resource-based deploymentsProcurementReleased Jun 5, 2026
Resolve invoice proposal blocked in workflowBillingJun 2026
Add support for Currency on custom columnsPlatformJun 2026
Add support for Lookups on custom columnsPlatformJun 2026
Add support to import tasks from other projectsProject PlanningJul 2026
Track real project progress from field executionProject PlanningJul 2026
Create work orders from project tasksProject PlanningJul 2026
View current and upcoming staffing for team members using timeline viewResourcesOct 2026
Initiate time entry creation from projects and tasks view for team membersTime & ExpenseOct 2026
View Outlook meetings within Time Entry CalendarTime & ExpenseOct 2026
Enable Change Order ManagementProject PlanningSep 2026
Enable Project Revenue recognition using cost estimate instead of EACBillingSep 2026
Enable subcontractor vendor invoice matching to actualsResourcesSep 2026
Support subscription billing in professional service firmsBillingSep 2026
Analyze project plans with multiple what-if scenariosProject PlanningMar 2027
Enable multiple baselines for a projectProject PlanningMar 2027
Improve contract management usabilityBillingPreview only
Try new usability improvements in Project Quote experienceProject PlanningPreview only
Support multiple project budget drafts with what-if analysisFinancialsPreview only
Manage exchange rate variances in cash advance transactionsTime & ExpensePreview only

Prior Releases

Source: Dynamics 365 Release Plans — Microsoft Learn

2025 Release Wave 2 (Oct 2025 – Mar 2026)
FeatureCategoryGA Date
Match credit card transactions and itemize expenses automaticallyCopilot & AIPreview only
Use general journals against projects for resource nonstocked scenariosFinancialsDec 26, 2025
Enable set-based performance improvements for project adjustmentsPlatformMar 13, 2026
Enable on-account transactions with project category supportBillingDec 26, 2025
Enable the modern Invoice enhancements - phase 2BillingMar 30, 2026
Experience phase 2 enhancements for Expense mobile appMobileDec 9, 2025
Experience phase 3 enhancements for Expense mobile appMobileMar 31, 2026
Experience phase 4 enhancements for Expense mobile appMobileMar 31, 2026
Add new scenarios for moving to the modern architecturePlatformMar 13, 2026
Refund unused retainersBillingMar 30, 2026
View approvals of different types more clearly by using the enhanced UITime & ExpenseMar 31, 2026
Use the simplified Approvals pageTime & ExpenseMar 31, 2026
Enable manual customer due dates for project invoicesBillingMar 13, 2026
Corrections for intercompany project transactionsFinancialsMar 13, 2026
Enable expense delegates to create cash advance requestsTime & ExpenseMar 13, 2026
Split credit card transactions in Expense ManagementTime & ExpenseDec 26, 2025
Enable the beginning balances featureFinancialsNov 6, 2025
Use the modern architecture for existing legal entitiesPlatformOct 3, 2025
Enable selective import from staging for project invoicesBillingMar 13, 2026
Enable outline level to the tasks in resource assignment viewResourcesMar 31, 2026
2025 Release Wave 1 (Apr 2025 – Sep 2025)
2024 Release Wave 2 (Oct 2024 – Mar 2025)
2024 Release Wave 1 (Apr 2024 – Sep 2024)