When you enable the Enable investment project for Project Operations integrated with ERP setting, you activate this feature.
Project Classification: The project manager uses this classification to mark a project as an investment project. Use this classification for internal projects. Don't link investment projects to customer-facing contracts.
Transaction Estimates: The project manager adds estimates and budgets for each transaction type. This feature supports better planning and cost tracking.
Contract Restrictions: The system blocks investment projects from project contracts. This restriction keeps investment projects for internal use only.
Financial Treatment:
The system records all costs as work in progress (WIP).
When you complete the project, the system lets you choose between two options. You can eliminate the project to generate a fixed asset. Or, you can transfer WIP costs to another ledger account. The choice depends on your organization's accounting strategy.
Business Value:
The Investment project feature in Dynamics 365 Project Operations, integrated with ERP, enables organizations to manage internal capital initiatives such as infrastructure development, research and development, and asset creation. It enhances financial governance, streamlines asset capitalization, and aligns project execution with strategic goals.
Organizations can capitalize long-term project costs to support compliance with accounting standards and improve financial reporting accuracy. The feature tracks all costs for items, time, and expenses as work in progress (WIP), so you have complete visibility and control.
When you complete the project, the system automates the conversion of WIP costs into fixed assets. This automation eliminates manual reconciliation and ensures accurate asset registration.
Enabled for:
Enabled by admins/makers/marketers for end users
More info: https://learn.microsoft.com/en-us/dynamics365/project-operations/project-accounting/project-operations-investment-project
GA date: September CY2026
Preview date: February CY2026