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

Exploring consolidation and its approaches


Consolidation and elimination are two different processes but they are connected. Consolidation is gathering transactions from several company accounts into a single entity to print consolidated financial reports. Elimination is excluding inter-company transactions between subsidiaries and it is performed prior to the consolidation process; the elimination process could be executed separately or within the consolidation process.

Microsoft Dynamics 365 for Finance and Operations has four consolidation approaches; the company's CFO and controller should decide which approach will be followed and of course this will be driven by business needs.

The following diagram illustrates the different consolidation approaches in Microsoft Dynamics 365 for Finance and Operations:

As shown in the preceding diagram, the consolidation approaches are: 

  • Online consolidation: It represents the process of consolidation that will be executed within Microsoft Dynamics 365...