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Calculate revenue recognition for stand-alone selling price contract lines

Important

Some of the functionality described in this release plan has not been released. Delivery timelines may change and projected functionality may not be released (see Microsoft policy). Learn more: What's new and planned

Enabled for Public preview General availability
Users by admins, makers, or analysts Sep 2025 Mar 2026

Business value

This feature helps organizations set the contract line value on the project contract lines. The system calculates revenue recognition based on the contract line value amount.

Feature details

In revenue recognition, use fixed price billing arrangements with billing milestones to set the contract value. Customers need to calculate the contract value separately from the billing milestones when extra effort or resources are required to complete a fixed price project or when a contract line is discounted.

Use the contract value to calculate revenue recognition. Use billing milestones to invoice the customer. When you separate these values, you can recognize revenue based on the effort or stand-alone selling price. This approach aligns better with ASC 606 and IFRS 15 requirements.

Geographic areas

Visit the Explore Feature Geography report for Microsoft Azure areas where this feature is planned or available.

Language availability

Visit the Explore Feature Language report for information on this feature's availability.

Additional resources

Enable revenue recognition based on contract standalone selling price (docs)