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 the inventory costing background


For highlighting the inventory costing model in Microsoft Dynamics 365 for Finance and Operations in order to understand the inventory valuation methods, there are three main concepts—physical and financial update, inventory recalculation and closing, and marking.

Physical and financial updates

The physical and financial update considers real-life business scenarios where there is a difference between the reception costs and invoices. It works in uncertain business environments.

Physical update

The physical update represents the inventory transaction, whether it is a product receipt for a purchase order or a packing slip for a sales order. The reception price inherits from the item purchase price in the purchase order, and identifies the item cost price in the warehouse. The cost of goods sold is retrieved from the inventory cost price and the physical issuance that occurred from the sales order. The following diagram shows the physical and financial...