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 the business costing model


The highest significant cost of organizations is encountered in the inventory costing. In this sense, one of the main objectives of ERP implementation is to manage, reduce, and control inventory costing. The inventory significantly affects the company's bottom line, and profitability as well. The companies that carry inventory as a raw material for production bear the cost of inventory, which in turn affects the cost of production, in addition to the goods in the process and the cost of goods sold (COGS), accordingly. The companies that carry inventory as stock for sales bear the inventory cost, which in turn affects the cost of goods sold.

The main driver of inventory cost is the purchase cost from the vendor, in addition to all the costs that are paid until the goods are received into the company's warehouse, such as freight, customs duties, and loading. All these are known as miscellaneous charges, which is a function name in Microsoft Dynamics...