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 multi-currency in Microsoft Dynamics 365 for Finance and Operations


Currency is any kind of money that circulates in an economy. Organizations must have one accounting currency, also known as the company currency or home currency. The accounting currency is identified based on how the company wants to represent its financial reports. On the other hand, companies report their transactions in a specific currency, known as reporting currency. It is normal to post transactions in a different currency, and this amount of money is translated to the home currency, using the current exchange rate. This is a business need in enterprises that operate in a multinational environment.

Each subsidiary has its local reporting currency and at the same time, there should be a specific secondary reporting currency. All the transactions are translated into the reporting currency, using the exchange rate.  

Currency elements are defined in the General ledger module. It is important to gather the...