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Microsoft Dynamics 365 Business Central - Finance and Accounting

Introduction to Microsoft Business Central - Finance and Accounting

  • We share the basic concepts of Microsoft Dynamics 365 Business Central, how to personalise the user interface and how to navigate. We also cover typical user tasks in common application areas, such as Finance in this review and in later updates, Inventory, Purchases, and Sales.
  • Module Overview

The typical features of a Cloud End-to-End Business Solution system are:

  • Common database
  • Supporting multiple business domains
  • Integrated functionalities
  • Modular functionalities
  • Real time availability of data
  • Job roles and authorisation
  • In the cloud!

All these distinctive Cloud End-to-End Business Solution features are within Microsoft Dynamics 365 Business Central. Microsoft Dynamics 365 Business Central empowers you to connect your financials, sales, projects, service and operations. You can manage your financials, automate and secure your supply chain, sell smarter and improve customer service and project performance and optimise your operations.

Microsoft Dynamics 365 Business Central fuels a company's growth by offering full suite of application functionality in the cloud that can easy be extended by using apps from AppSource.

In Microsoft Dynamics 365 Business Central, you only need to enter the customer data once to make it available in all the different application areas or departments. A salesperson can use customer data on sales documents while the bookkeeper uses the same data when processing a customer payment. In the warehouse the same customer data is used by a warehouse worker, for example, in a sales shipment.

With Microsoft Dynamics 365 Business Central your business data is instantly available at any place on any device once entered in the system. Microsoft Dynamics 365 Business Central includes advanced security systems and settings necessary to protect the mass of information from unauthorised access. Dynamics 365 Business Central brings the full power of end-to-end business solutions to the cloud and integrates with other Microsoft cloud services including Office 365.

Microsoft Dynamics 365 Business Central Licensing

Essential and Premium

Microsoft Dynamics 365 Business Central is available at two price points: Essentials and Premium.

Essential Licensing

Essential licensing covers business areas that most businesses require running their business. It includes the following modules:

  • Financial Management
  • Customer Relational Management
  • Supply Chain Management
  • Human Resources
  • Project Management
  • Other functionality such as: 
    • Multiple languages
    • Reason codes
    • Extended text
    • Outlook integration

Premium Licensing

Premium licensing adds Service order management and Manufacturing, bringing the full breadth of a business solution to the cloud.

Office 365 Integration to Microsoft Dynamics 365 Business Central

Office 365 and Business Central — are at the core of Microsoft’s digital transformation strategy. With this integration, Microsoft has addressed three of the above objectives. They’ve optimised operations, empowered employees with better productivity and insight, and engaged customers faster and more accurately. This integration is truly a game changer.

Microsoft Dynamics 365 Business Central provides three clients - the Web, Tablet and Phone client. 

Microsoft Dynamics 365 Business Central Web Client

Users can access Microsoft Dynamics 365 Business Central through a modern user experience, optimised for insights and productivity.

Business Central Supply Chain Management 2

With a familiar Microsoft Office 365 user interface, personalised feeds, and smart notifications, the web client enables users to work smarter and more productive. The Microsoft Dynamics 365 Business Central web client is role based and includes all functionality a user need. It does not require any installation. Users can access Microsoft Dynamics 365 Business Central through the web client with common browsers like Microsoft Edge.

Microsoft Dynamics 365 Business Central Tablet and Phone Client

The Microsoft Dynamics 365 Business Central modern user experience, also empowers users on the go, with a tablet and phone client. They allow users to access their business data, insights and functionalities from a tablet or a phone in a convenient and efficient way. The Microsoft Dynamics 365 Business Central Tablet and Phone Client experience comes with apps available for Windows, Android, and Apple devices.

Microsft Dynamics Business Central Tablet Client 2

Microsft Dynamics Business Central Phone Client 2

Microsoft Dynamics 365 Business Central Financial Management

Microsoft Dynamics 365 Business Central Finance enables you to manage all common finance processes and information such as posting financial transactions, preparing financial statements, managing bank accounts, inventory costs, manufacturing costs, and fixed assets.

01-Finance Home

Microsoft Dynamics 365 Business Central Chart of Accounts

When you create a new company, you must first set up a chart of accounts and configure the posting processes.

Microsoft Dynamics 365 Business Central Chart of Accounts

The chart of accounts is a list of all the accounts you can use to post transactions to the general ledger. It contains balance sheet accounts and income statement accounts. Besides the basic setup, you can also set up advanced features related to VAT or tax processing. Once G/L accounts are created, you can then use them in sales and purchase documents, in general journals to post transactions to the general ledger. You can set up and use dimensions to add text to entries for reporting purposes.

Microsoft Dynamics 365 Business Central Dimensions

In Microsoft Dynamics 365 Business Central, you can make use of dimensions for advanced transaction analyses.

Microsoft Dynamics 365 Business Central Dimensions

You can set up dimensions and then assign multiple dimension values to each dimension. Once dimensions are set up, you can assign default dimensions to customers, items, vendors, G/L accounts, jobs, resources and many more.

Examples: Before posting sales, you can assign a customer group dimension to a sales document. Or you can assign a department when posting expenses so that you can analyze and compare your expenses by department.

Microsoft Dynamics 365 Business Central Payment Processing

Microsoft Dynamics 365 Business Central makes processing payments easy. From the payment registration page, you can process customer payments with only a few clicks and mark invoices as paid to automatically reconcile accounts.

Microsoft Dynamics 365 Business Central Payment Processing

To pay your suppliers, you can use the payment journal, including advanced features such as vendor priorities and paying invoices on their due dates. To do so, you can run the suggest vendor payments batch, modify the payment journal lines if necessary, and then process the payments electronically or by check.

With the payment reconciliation journal, you process and reconcile bank statement transactions in one go. Use the import function to import bank statement files and let the system apply transactions automatically using advanced application rules.

Microsoft Dynamics 365 Business Central Cash Flow Forecasting

To get a better grip on their cash position, companies want to know how their cash flow will evolve in time. The cash flow forecast function uses a whole range of sources to calculate the future cash flow to receivables, payables, purchase orders and sales orders.

Microsoft Dynamics 365 Business Central Cash Flow

You can use manual revenues and expenses to analyse the impact of a future loan or an unforeseen future cost. By including Cortana Intelligence, machine learning is used to calculate the cash flow forecast based on historical income and disbursements.

Microsoft Dynamics 365 Business Central Budgeting

You can work with budgets for general ledger accounts, costs, sales and purchases.

Microsoft Dynamics 365 Business Central Budgets

Microsoft Dynamics 365 Business Central Deferrals

You can set up deferral templates that automate the process of deferring revenues and expenses over a predefined schedule.

Microsoft Dynamics 365 Business Central Deferrals

Microsoft Dynamics 365 Business Central Fixed Assets

You can keep track of fixed assets and related transactions, such as acquisitions, depreciation's, write-downs, appreciations, and disposals.

Microsoft Dynamics 365 Business Central Fixed Assets

Microsoft Dynamics 365 Business Central Audit Trails

Microsoft Dynamics 365 Business Central automatically assigns audit trails and posting descriptions to every transaction. In addition, users can define reason codes to create complementary audit trails.

Microsoft Dynamics 365 Business Central Bank Account Management

Create, operate, and manage multiple bank accounts to cater to your diverse business needs and across different currencies.

Microsoft Dynamics 365 Business Central Bank Account Management

Microsoft Dynamics 365 Business Central Bank Reconciliation

Reconcile your bank statement data automatically to open bank account ledger entries and keep track of all your bank statements.

Microsoft Dynamics 365 Business Central Currency Management

Manage multiple currencies throughout the system, including payable's and receivables, general ledger reports, resource and inventory items, and bank accounts.

Microsoft Dynamics 365 Business Central Currencies

Microsoft Dynamics 365 Business Central Conclusion

Thank you for reviewing this article on Microsoft Business Central with a focus on Microsoft Business Central Finance this blog will be updated to reflect further information links as we explore more modules and capability for Microsoft Dynamics 365 Business Central namely:

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