Time & Expense Management in Dynamics 365 Project Operations
In a project-driven organization, time and expense tracking is not just about administrative accuracy—it’s essential for billing, cost control, compliance, and project profitability. Dynamics 365 Project Operations (D365 PO) offers a seamless and integrated module to manage employee time entries, expense submissions, and approval workflows with real-time visibility into project performance.
This article explains the complete lifecycle of time and expense management in D365 PO, from entry to approval, validation, and integration with billing and costing.
1. Time Tracking in D365 PO
D365 PO allows team members to enter time against project tasks directly.
Time Entry Workflow:
- Navigate to Time Entry Workspace or use Mobile App / Teams Integration.
- Select:
- Project Name
- Task or WBS line
- Date and duration (hours/day)
- Optional: Comments or internal notes
- Submit the timesheet for approval.
Time can be entered daily or weekly, based on organizational preference.
Integration with Project Plan:
- Time entries are linked to WBS tasks, enabling accurate effort tracking.
- Task completion and cost forecasts adjust based on logged hours.
Time Entry Validation:
- Rules can be enforced like:
- Minimum/maximum hours
- Project-specific time limits
- Week lock for late submissions
2. Approval Process
Time entries follow a configurable approval workflow:
| Approver | Typical Role |
| Project Manager | Reviews accuracy and relevance of effort |
| Resource Manager | Optional; verifies allocation validity |
| Finance Team | Optional; validates for billing cycle |
Approval settings can be defined per project, customer, or legal entity.
Approved entries become part of:
- Project Actuals (for cost/sales tracking)
- Invoice proposals (for Time & Material billing)
- Utilization Reports (for performance tracking)
3. Expense Management
D365 PO supports tracking billable and non-billable expenses incurred during project delivery.
Expense Entry Steps:
- Navigate to Expense Entry Workspace.
- Create a new Expense Report.
- Add:
- Expense Category (e.g., Travel, Meals)
- Amount
- Currency
- Project & Task Reference
- Attachments (e.g., receipts)
- Submit for approval.
Expense Policies:
Administrators can define Expense Policies to control spending:
| Policy Area | Examples |
| Limits | Max per diem, lodging cap, airfare budget |
| Category Rules | Travel allowed only if project is > X days |
| Receipt Requirements | Mandatory for amounts above X |
| Currency Controls | Only specified currencies allowed |
Violations can trigger warnings, hard stops, or workflow escalations.
Integration & Automation
Post Approval:
- Entries flow into Project Actuals and Expense Journals
- Automatically integrated with D365 Finance for:
- Vendor payments (if reimbursement required)
- General ledger postings
- Tax calculation
Time/Expense on the Go:
- Mobile App or Microsoft Teams-based time and expense entry is supported for field teams.
- Automatic reminders can be configured for pending submissions.
Reporting & Compliance
- Timesheet Compliance Reports
- Billable vs Non-billable Analysis
- Cost to Client vs Cost to Company
- Project Overrun Risk Alerts
Auditors and finance teams can rely on historical logs, comments, and attachments for audit trails and regulatory compliance.
To conclude, Effective Time and Expense Management in Dynamics 365 Project Operations enables accurate billing, real-time cost tracking, and employee accountability. With intuitive entry interfaces, approval workflows, and policy enforcement, D365 PO ensures both operational efficiency and financial compliance.
We hope you found this blog useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfonts.com
