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Microsoft Dynamics 365 Enterprise Edition - Financial Management
Microsoft Dynamics 365 Enterprise Edition - Financial Management

Microsoft Dynamics 365 Enterprise Edition - Financial Management: Maximize your business productivity through modern financial management in Dynamics 365 , Third Edition

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Microsoft Dynamics 365 Enterprise Edition - Financial Management

Understanding the General Ledger

The chart of accounts (COA) is the backbone of Enterprise Resource Planning (ERP). It is a part of the financial module, which is the foundational module of ERP. It is a list of categorized ledger accounts (known as main accounts in Microsoft Dynamics 365 for Finance and Operations) that is used by an organization to record all financial transactions, and it depends on the nature of the organization's business. The COA of manufacturing companies differs from trading companies, service companies, and so on. This chapter covers the following topics:

  • Understanding the COA
  • Classifying main accounts
  • Controlling main accounts
  • Understanding shared financial data
  • Understanding financial management in action
  • Opening balance
  • Performing daily transactions
  • Closing procedure

Understanding the COA

The classified skeleton of a main account is the responsibility of the controller from the customer side and the application consultant from the partner side, who bridges the application capabilities to the customers' requirements. This activity is designed in the analysis and design phases and deployed in the deployment phase.

Main accounts are at the core of financial reporting and include the trial balance, balance sheet, income statement, working capital, and cash flow. The starting point in building COAs is identifying the financial reporting requirements to ensure that all classification levels and categories are captured in Microsoft Dynamics 365 for Finance and Operations. The quality of reports build on the details that are captured during data entry and will be reflected in the quality of reporting.

...

Controlling the general ledger

In the following section, we will discuss the major control point of the general ledger module. Focusing on two perspectives, the first is controlling the main accounts, and the second is general ledger parameters. These controls gives the controller the ability to have an oversight of the execution of daily transactions.  

Controlling the main accounts

As seen in the following figure, Microsoft Dynamics 365 for Finance and Operations offers three main groups of controls over the main accounts. The first is specific to debit and credit controls, the second to account administration, and the third to posting validation:

...

Understanding shared financial data

Since the previous version of Microsoft Dynamics 365 for Finance and Operations, Microsoft has introduced a new concept called shared financial data, which reduces the effort and time of deployment in a multiple-company environment and operational maintenance. A group of companies can share the same chart of accounts, currencies, and dimensions—this decreases the operation time. For example, a new main account will be available to all companies. The following figure explains the concept of shared financial data in detail:

 

The financial data that will be shared between the companies is as follows:

  • Chart of accounts (COA): This contains the main account, the COA could be one shared COA between all legal entities, or a COA for one legal entity or group of legal entities. This is all dependent on customer requirements, and the...

Understanding financial management in action

Here, we will look at the process of financial management through the opening balance and various daily transactions.

Opening balance

When a company migrates to Microsoft Dynamics 365 for Finance and Operations from a legacy ERP solution, one of the important data migration tasks is the creation of opening balances in the new system. This process is moving the financial balance to Dynamics 365 for Finance and Operations, which represents the base of organization financial reporting, so that the opening balance must be executed properly to ensure it is audit-compliant and matches customer reporting requirements.

The opening balance building blocks consist of four main blocks, which...

Summary

In this chapter, we discussed the practices in the financial implementations of Microsoft Dynamics 365 for Finance and Operations. We focused on the general ledger, covering the types of main accounts, classifications, and control points. We also explained shared financial data. We also learned about opening balance best practices, daily transactions, global general ledger, Microsoft Excel integration. We then moved to the financial period close functionality and the monthly closing procedure.

In the next chapter, we will cover financial dimensions and practice practical reporting in Microsoft Dynamics 365 for Finance and Operations.

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Key benefits

  • Make real-time data-driven decisions for your enterprise with Microsoft Dynamics 365 Enterprise edition
  • Configure and set up the Microsoft Dynamics 365 financial module via highly useful tips and tricks
  • Administer customer relations and plan enterprise resources with this systematic guide

Description

Microsoft Dynamics 365 for finance and operations is a rapidly growing application and is widely used in enterprise organizations. Because of its ability to maximize business productivity, it is a fast-growing business application package in the ERP market. We will start by looking into ERP concepts, implementation needs, and interface design, giving you basic knowledge of financial management aspects and explaining key concepts along the way. To begin with, you'll be taken through the general ledger and financial dimension functions. You'll later learn about the sales tax mechanism and multi-currency in Microsoft Dynamics 365. We tackle each topic with focused examples and explanations on topics such as payable/receivable accounts, forecasting, cash and bank management, budgeting planning/control, and fixed assets. Finally, we walk you through intercompany, consolidation, costing basics, and financial reporting. By the end of this book, your finance team will have a much richer understanding of Microsoft Dynamics 365 for finance and operations and its powerful capabilities.

Who is this book for?

This book is for application consultants, solution architects, controllers, CFOs, pre-sales and other professionals who are involved in a Microsoft Dynamics 365 for finance and operation implementation. Basic knowledge of financial terms, concepts, and terminologies is required.

What you will learn

  • Examine the business logic behind the financial functionalities of Microsoft Dynamics 365 FFO
  • Set up and configure the core modules of financial management
  • Grasp the key control points of financial management
  • Explore intercompany and consolidation in Microsoft Dynamics 365 FFO
  • Understand multi-currency sales, tax mechanisms, and budgeting capabilities in Microsoft Dynamics 365 FFO
  • Get to grips with month/year-end period close functionality
  • Understand the account payable and receivable module
  • Use Microsoft Dynamics 365 to create financial reports
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Publication date, Length, Edition, Language, ISBN-13
Publication date : Mar 22, 2018
Length: 562 pages
Edition : 3rd
Language : English
ISBN-13 : 9781788839297
Vendor :
Microsoft

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Product Details

Publication date : Mar 22, 2018
Length: 562 pages
Edition : 3rd
Language : English
ISBN-13 : 9781788839297
Vendor :
Microsoft

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Microsoft Dynamics 365 Enterprise Edition - Financial Management
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Table of Contents

17 Chapters
Getting Started with Microsoft Dynamics 365 for Finance and Operations Chevron down icon Chevron up icon
Understanding the General Ledger Chevron down icon Chevron up icon
Exploring Financial Dimensions Chevron down icon Chevron up icon
Understanding Sales Tax Chevron down icon Chevron up icon
Working with Currencies Chevron down icon Chevron up icon
Understanding Accounts Payable Basics and Controls Chevron down icon Chevron up icon
Exploring Accounts Payable Transactions Chevron down icon Chevron up icon
Understanding Accounts Receivable Chevron down icon Chevron up icon
Understanding Cash and Bank Management Chevron down icon Chevron up icon
Functioning of Cash Flow Management Chevron down icon Chevron up icon
Exploring Budgeting Chevron down icon Chevron up icon
Working with Intercompany Accounting Chevron down icon Chevron up icon
Working with Consolidation and Elimination Chevron down icon Chevron up icon
Working with Cost Management Chevron down icon Chevron up icon
Exploring Fixed Assets Chevron down icon Chevron up icon
Exploring Financial Reporting and Analysis Chevron down icon Chevron up icon
Other Books You May Enjoy Chevron down icon Chevron up icon

Customer reviews

Rating distribution
Full star icon Full star icon Full star icon Empty star icon Empty star icon 3
(2 Ratings)
5 star 0%
4 star 0%
3 star 100%
2 star 0%
1 star 0%
Amazon Customer Aug 04, 2022
Full star icon Full star icon Full star icon Empty star icon Empty star icon 3
This is almost an intro to Accounting book. It does describe how to set up 365, but based on how often the program is updated and how customizable it is to your business, it's not really helpful. I needed a how-to for the system we have in place at a new job. Does not fit that role.
Amazon Verified review Amazon
Hercules Alexandridis Dec 21, 2019
Full star icon Full star icon Full star icon Empty star icon Empty star icon 3
Très bien structuré. Côté finance et pas operations. Il explique bien les différentes fonctionnalités du MS dynamics 365 nouvelle version. Par contre, la qualité des images est pauvre. Il faut bien prendre çà en compte parce que l'impression ecran des fois n'est pas visible. En plus il n'y a pas de couleur.
Amazon Verified review Amazon
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