Move to the modern architecture

As of version 10.0.43, if you use the Project management and accounting (PMA) module to manage your projects, you can use the modern architecture of Microsoft Dynamics 365 Project Operations to take advantage of the new functionality and modern technology stack.

Many customers who previously used the project capabilities of the Project management and accounting module in the finance and operations architecture couldn't turn on the capabilities of the modern architecture of Project Operations in the same legal entity. This option is now available.

In the 10.0.43 release, the Use the modern architecture for existing legal entities with project data feature lets you complete all existing transactions and close existing projects in the Project management and accounting module. Functionality is further enhanced in the 10.0.45 release where existing projects can be completed, and new projects are created in Dataverse. Newer releases have a subset of transactions and processes available to allow users to continue to create and post transactions, perform invoicing, and perform revenue recognition against existing projects until they're completed and closed. You can create new projects, project-based quotes, and contracts by using richer, modern experiences that bring together the project management capabilities of Dataverse and finance and operations apps into one orchestrated, seamless experience. Data from Dataverse is automatically integrated into the same legal entity in finance and operations apps. Likewise, data from finance and operations apps is automatically integrated into Dataverse.

By adopting the modern architecture, you can take advantage of the following features without losing the benefit of the rich project accounting and invoicing capabilities of finance and operations apps:

• Project contract structure
• Sales process
• Project planning functionality that uses Microsoft Project for the web
• Resource management that uses Unified resource management
• Transaction models
• Subcontracting
• Proforma invoice processes

Enable the modern architecture of Project Operations (10.0.45 and later)

This section contains a summary of functionality available. These changes are all additive in support of adding new scenarios and functionality for PMA projects in the context of an integrated legal entity. No changes are made if the legal entity isn't opted in as an integrated company. If you don't see a document or a process available in this list, then it isn't available in the user interface and isn't enabled. Any documents or processes not available should be in a state where they're complete and assumed to be unavailable before enabling the feature in production.

Detailed changes by area:

At a minimum, you must follow these steps to enable the modern architecture in a legal entity that has project data. This example follows the USSI demo data company.

1. Enable the Use the modern architecture for existing legal entities with project data feature to remove the restriction that blocks this change in the deployment type.
2. Complete all project transactions that aren't on the list of supported transactions above. Examples of unsupported transactions include time sheets, subscription billing, and more.
3. Complete all processes that aren't in the list of processes above. Examples of unsupported processes may include post costs, accrue revenue, adjustments, and more.
4. Close any projects that are completed.
5. On the Global project management and accounting parameters page, select the legal entity to opt in.
6. Complete the required setup in both systems. An example of steps required for demo data company USSI are included below.

Example configuration steps of enabling USSI demo data company for the modern architecture

Learn more about setup and configuration in Project Operations Integrated with ERP deployment overview. For the finance and operations architecture, several areas of new setup are required. For example, you must create project categories, configure parameters, and create project cost and revenue profiles.

1. In Data management, navigate to Dual write and select Environment details. In the Legal entities tab, add a record for USSI if it isn't already present.
2. You might be prompted to run initial sync, or you can manually run the appropriate maps to ensure that new data is created as required to sync master data from either system.
3. In Dataverse, navigate to Settings and Transaction Categories. Create a new category named Services. After saving in Dataverse, you should see a category with the name Services and a category ID starting with TCN-.
4. In the finance and operations architecture, verify the category exists in Transaction categories and take note of the shared category ID, which should look like TCN-0000001000-R8D2H-1.
5. Navigate to Project Categories and create a new record for each of the above TCN-* categories for our financial postings.
6. Open Project management and accounting parameters. On the last tab for Project Operations on Dynamics 365 Customer Engagement,** ensure that the billing type defaults are mapped to determine chargeable vs nonchargeable transactions.
7. For project category defaults, use the Services category created earlier for all four transaction types.
8. Specify an account for the expense reports and procurement integration accounts.
9. In Dataverse, set up any users as bookable resources with the appropriate legal entity (USSI) and operating unit (Contoso Robotics US).

After these steps are complete, you're able to create a new project contract in USD or GBP and a USD currency-based project for Dataverse-based time and expenses and finance and operations apps expense reports.

Enable the modern architecture of Project Operations (10.0.43)

At a minimum, you must follow these steps to enable the modern architecture in a legal entity that has project data.

1. Turn on the Use the modern architecture for existing legal entities with project data feature to remove the restriction that blocks this change in the deployment type.

2. Complete all project transactions, and ensure that the following conditions are met:

   • There are no pending project transactions.
   • All invoices are completed.
   • Revenue recognition and eliminations are completed.
   • No open documents remain against a project.

3. Move all projects to a closed status.

4. On the Global project management and accounting parameters page, select the legal entity to opt in to.

   Important

   Ensure that all project transactions are completed before you complete this step, because projects can't be reopened after you opt in to the legal entity.

5. Enable the legal entity for dual-write. Then run the appropriate maps in the initial synchronization, or ensure that new data is created as required to sync master data from either system.

6. Complete the required setup in both systems. Learn more about setup and configuration in Project Operations Integrated with ERP deployment overview. For the finance and operations architecture, several areas of new setup are required. For example, you must create project categories, configure parameters, and create project cost and revenue profiles.