Book Image

Microsoft Dynamics 365 Enterprise Edition - Financial Management - Third Edition

By : Mohamed Aamer Ala El Din
Book Image

Microsoft Dynamics 365 Enterprise Edition - Financial Management - Third Edition

By: Mohamed Aamer Ala El Din

Overview of this book

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.
Table of Contents (24 chapters)
Title Page
Copyright and Credits
Dedication
Packt Upsell
Contributors
Preface
Index

Understanding inventory recalculation and closing


The inventory recalculation is a normal procedure in the Microsoft Dynamics 365 for Finance and Operations environment that calculates the inventory cost in the warehouse and adjusts the inventory issuances, according to the inventory value model (the valuation method).

The inventory cost in Microsoft Dynamics 365 for Finance and Operations is a running average cost. To apply the valuation method, the recalculation process should be run. The normal mechanism of the inventory cost calculation applies the inventory valuation method that is attached to the product master by running the recalculation function. The recalculation function mainly affects two areas: the item cost in the warehouse and the inventory adjustment entries for product issuances from the inventory that generates the inventory financial transaction entries.

Note

The inventory adjustment entries are generated when the issuance cost of the item is different than the current cost...