The year-end close process is a cumbersome, multi-step task that ensures an organization can provide accurate annual reports and financial statements for its stakeholders. It’s critical to get it right, but the process can be intimidating and overwhelming. Trying to balance the workload among overstressed accounting staff can result in errors, multiple manual adjustments, and pressure on the finance department. The new Optimize year-end close feature in Microsoft Dynamics 365 Finance can help.

Year-end close moves to a dedicated service with more visibility

With the new optimization, the heavy processing moves to a dedicated service, reducing resource consumption on SQL and batch servers and allowing the process to run more efficiently. The time saved enables your finance team to react quickly to make necessary adjustments.

What’s more, users can view the status of the process for each legal entity in real time from its own page rather than having to go to the batch job history. The added visibility gives the accounting manager confidence that each step is progressing. And when the year-end process is complete, they’ll have insight into how long each step took.

 We’ve also added some balance sheet financial dimensions in detail to the Year-end close template page, giving organizations more control. This also reduces the need to create many financial dimension balances, all of which require time and processing.

How to get started

Excited to try this new functionality? There are just two steps that you need to follow.

First, install the Optimize year-end close service add-in from your project in Microsoft Dynamics Lifecycle Service.

Then, enable Optimize year-end close in Feature management.

The new functionality is available immediately in versions 10.0.29 and later of Dynamics 365 Finance.

You can go back to the current functionality by disabling the optimization in Feature management.

Next steps

Read the documentation for a more detailed look at the feature: Optimize year-end close – Finance | Dynamics 365 | Microsoft Learn.

Learn more about what else is new in Dynamics 365 Finance.

Not yet a Dynamics 365 Finance customer? Take a guided tour and start a free trial.

The post Accelerate your year-end close process appeared first on Microsoft Dynamics 365 Blog.

Change is constant. Today most organizations are experiencing challenges and making plans that they did not anticipate. In times like these, organizations do not have time to worry about reacting to changes in accounting regulations, yet they cannot risk leaving them unaddressed.

A core tenant of Dynamics 365 Finance is to enable you to reduce risk, and to automate and modernize your global financial operations. To help you achieve this, we are introducing asset leasing in November 2020. Asset leasing helps you adapt and be compliant to the FASB and IFRS 16 accounting regulations related to lease management and its financial impact. Asset leasing will reduce manual errors and save your users time through automatic lease status updates, right of use assets, wholistic monitoring and analytics, and calculations of net present value, lease interest, and future cash payments.

Asset leasing features

Asset leasing can help you with the following:  

• Automates the complex lease calculation of present value and its subsequent processes such as future lease payment, lease liability amortization, right-of-use asset depreciation, and expense schedules.
• Automatically classifies the lease as either operating or finance, or as a short-term lease or low-value lease. The lease classification tests include transfer of ownership, purchase option, lease term, present value, and unique asset.
• Centralizes the management of lease information, such as important dates, including the commencement and expiration dates, as well as the lease’s transaction currency, payment amounts, and payment frequency.
• Helps to generate accounting entries for the initial recognition, and subsequent measurement of the lease liability and right-of-use asset.
• Reduces time for complex calculation of lease modification and automatic adjustment transactions.
• Provides posting to different layers to accommodate different reporting purposes, such as tax reports that are available in Dynamics 365 Finance.
• Complies with the accounting standards to represent leases on a balance sheet using the Balance sheet impact calculator.
• Provides audit controls over the integrity of the lease data to ensure that the posted transactions match the calculated amounts of the present value, future payments, and liability amortization.
• Provides tools to import from or export to Excel for all lease data using data management.
• Includes features that help in preparing asset leasing reports, particularly the preparation of disclosures and notes.
• Integrates with company chart of accounts, currencies, fixed assets, vendors, journals, data management, and number sequences.

Learn more

To learn more about Asset leasing , see the release plans.

The post Simplify and automate compliance with asset leasing in Dynamics 365 Finance appeared first on Microsoft Dynamics 365 Blog.

Fixed asset has two types of disposal transaction disposal sale, or disposal scrap. In this post I will focus on the disposal sale, this is accounting treatment in case of the company decided to sell a building, which is a fixed asset. The asset disposal sale transaction is executed from a customer free text invoice. In some scenarios the accountant may want to reverse the posted disposal sale transaction.

The following diagram illustrate a logical overview of the business process of fixed asset disposal sale to a customer. The cycle starts by acquiring a fixed asset in the fixed assets sub module, and this will result in the fixed asset status as open asset. Then move to accounts receivable sub module to execute the disposal sale transaction, this transaction is executed by the free text invoice. After posting the free text invoice the system generates two actions: –

• The first in AR submodule by posting a customer invoice.
• The second in fixed assets submodule by post disposal sale transaction and set status of fixed asset as sold.

The reversal of disposal sale is done from the accounts receivable submodule by using the reverse transaction functionality in the customer transactions form. This transaction has two effects, the first is to reverse the customer invoice, and the second to reverse the asset disposal entry in the fixed assets submodule. The asset status set to open as well.

Here I will show you how to execute this process in Microsoft Dynamics AX 2012.

1. Go to fixed asset| Common| Fixed assets| All fixed assets.
2. Create a new asset record.
3. Select asset group.
4. Enter asset name.

Acquire the newly created fixed asset by following the below steps.

1. Go to Fixed assets| Journals| Fixed assets.
2. Create a new journal.
3. Enter the asset in the journal line.
4. Post the acquisition entry.

In order to check the status of the fixed asset,

1. Go to Fixed assets| Common| Fixed asset| All fixed assets.
2. Filter on the asset number.
3. Go to Value model in the ribbon. As shown in the below screen shot the asset status is Open.

Select the transactions to show the posted asset transaction.

Create a Free text invoice to create a disposal sale of the asset. This is done by adding the Asset ID to the invoice line.

1. Go to Accounts receivable| Common| Free text invoice| All free text invoice.
2. Select customer ID.
3. Move to invoice lines pane and select Main account.
4. Enter unit price.
5. Select Fixed asset ID.

Check the customer transaction by following the below steps

1. Go to Accounts receivable| Common| Customers| All customers.
2. Filter to the customer which added to the free text invoice.
3. Select transactions.

1. Go to Fixed assets| Common| Fixed assets.
2. Select fixed asset number.
3. Select value mode. Here the status is changed to Sold.

Select Transactions in order to show the posted disposal sale transaction.

To reverse the asset disposal transaction,

1. Go to Accounts receivable| Common| Customers| All customers.
2. Filter to the customer which added to the free text invoice.
3. Select transactions.
4. Click Reverse transaction.

The transaction reversal dialogue box will pop up, enter a reversal date, reason code, and reason comment.

An Infolog will pop up which indicates the customer transaction has been reversed.

Check the posted reversal entry.

1. Go to Accounts receivable| Common| Customers| All customers.
2. Filter to the customer which added to the free text invoice.
3. Select transactions.

1. Go to Fixed assets| Common| Fixed assets.
2. Select fixed asset number.
3. Select value mode. Here the status is changed back to Open.

Select Transactions in order to show the posted disposal sale reversal transaction.

The post How to reverse a Fixed Asset disposal sale transaction appeared first on Microsoft Dynamics 365 Blog.

Enterprises may have subsidiaries in multi countries, in that scenario you can utilize the multi-language capabilities in Microsoft Dynamics AX. This enables translation of the client interface, including menus and data translation.

In this blog post I will focus on translation of the shared chart of account functionality, this enables translation of the client interface, including menus and data translation.

In my example a company has two subsidiaries, in one AX instance. The first legal entity is in the USA and the second in Italy.
The chart of accounts is identical across legal entities, and each legal entity is required to have the chart of account in their own language.

In a real life scenario, you must also consider specific regulations from each country that relate to a chart of accounts.

The following example will demonstrate how to use the multi-language functionality in Dynamics AX to fulfill the scenario presented above

In order to fulfill the above requirements and demonstrate it in a proper way;

• Firstly, use the shared chart of accounts across legal entities (USD and Italy)
  The shared chart of account language is English.
• Secondly, use the translation functionality in the chart of accounts.
  You can find more information at the following TechNet article: TechNet Text translation (form) [AX 2012]

• I’ve added another user to set the language interface

  The below diagram illustrate the basic concept of the shared chart of accounts, the use of translation functionality, and user language.

  

I would consider numbering the steps going forward so they are easier to follow.

1. Go to General ledger| Setup| Chart of Accounts| Chart of accounts
2. Select the shared chart of accounts
3. Select your main account (110110 is used in this example)
4. Select the Translations button (You have this listed as Transactions)

5. In the Text translation form, select the language and add the translation text.

6. Set Language in user options, go to Select File| Tool| Options. Then under General tab change language to IT (Italian)

7. Changing the user options will result in menus being translated to Italian. To see this change, go to General Ledger| Journals| General journal. Create and post a general journal entry from the Italian interface. Note the account name shows in Italian.

8. The posted transaction details are shown in Italian as demonstrated below.

9. The below example demonstrates how the translation looks on a Ledger Transaction report (General ledger| Reports| Transactions| Ledger transaction)

10. The below example demonstrates the multi-language functionality with the Trial Balance list page.
(General ledger| Common| Trial balance)

The account list page shows the account name in English. As mentioned in TechNet Text translation (form) [AX 2012]

You also can use this form to create translated text for a main account name and a custom financial dimension value. The translations that you create are displayed everywhere that a main account name or custom financial dimension value is displayed, except on the main account list and list pages.

The post How to deploy a translated chart of accounts in a multiple country project appeared first on Microsoft Dynamics 365 Blog.

There are general ledger transactions posted in correspondence to inventory financial transactions, these transactions may relate to the financial updates of purchase orders and/or sales orders. Inventory transactions posted to general ledger are configured by inventory model groups. In this post I will focus particularly on the post financial inventory option in relation with purchase orders.

For Purchase order invoice update: If this checkbox is checked, the amount of the item is posted to the inventory receipt account, and the posted net amount to purchase expenditure for the product is zero.

A Purchase order is created and invoiced. The generated invoice entry for inventory transaction will be posted to purchase, inventory receipt. In the other hand the net posted transaction to purchase expenditure for product is zero, in order to illustrate the transaction details, go to the subledger journal.

The following screen shots illustrate the configuration of the inventory model group (Inventory management| Setup| Inventory| Inventory model group) and the voucher transactions of purchase order invoice (Accounts payable| Common| Purchase orders| All purchase order – select invoiced purchase order, go to the invoice ribbon, select invoice and then voucher)

(Click on the image to enlarge)

In the previous section I covered the inventory transactions of the purchase order invoice where the post financial inventory check box was marked in the item model group. In this section I will focus on the same configuration but with the post financial inventory check box un-marked.

For Purchase order invoice update: If this checkbox is unmarked the amount of the item transaction is posted to the purchase expenditure for product account.

A Purchase order is created and invoiced. The generated invoice entry for inventory transaction will be posted to purchase expenditure for product. In the other hand there are no transactions posted to purchase, inventory receipt. In order to illustrate the transaction details, go to the subledger journal.

The following screen shots illustrate the configuration of the inventory model group (Inventory management| Setup| Inventory| Inventory model group) and the voucher transactions of purchase order invoice (Accounts payable| Common| Purchase orders| All purchase order – select invoiced purchase order, go to the invoice ribbon, select invoice and then voucher)

 (Click on the image to enlarge)

The post What does the Post financial inventory option in an Item model group do in relation with Purchase orders appeared first on Microsoft Dynamics 365 Blog.

There are general ledger transactions posted in correspondence to inventory financial transactions, these transactions may relate to the financial updates of purchase orders and/or sales orders. Inventory transactions posted to general ledger are configured by inventory model groups. In this post I will focus particularly on the post financial inventory option in relation with sales orders.

For Sales order invoice update: If this checkbox is checked, the amount of the item is posted to the inventory issue and the consumption accounts.

A Sales order is created and invoiced. The generated invoice entry for inventory transaction will be posted to the consumption account (Cost of Goods Sold (COGS) account), and inventory account as well.

The following screen shots illustrate the configuration of the inventory model group (Inventory management| Setup| Inventory| Inventory model group) and the voucher transactions of sales order invoice (Accounts receivable| Common| Sales orders| All sales order – select invoiced sales order, go to the invoice ribbon, select invoice and then voucher)

(Click on the image to enlarge)

In the previous section I covered the inventory transactions of a sales order invoice where the post financial inventory check box was marked in the item model group. In this section I will focus on the same configuration but with the post financial inventory check box un-marked.

For Sales order invoice update: If this checkbox is un-checked, no posting occurs in the item consumption account or the issue account.

A Sales order is created and invoiced. As shown in the below screen shot there are no inventory transactions posted to the COSG account or the inventory issuance.

The following screen shots illustrate the configuration of the inventory model group (Inventory management| Setup| Inventory| Inventory model group) and the voucher transactions of sales order invoice (Accounts receivable| Common| Sales orders| All sales order – select invoiced sales order, go to the invoice ribbon, select invoice and then voucher)

(Click on the image to enlarge)

The post What does the Post financial inventory option in an Item model group do in relation with Sales orders appeared first on Microsoft Dynamics 365 Blog.

Recently I shared a post explaining how to consolidate intercompany vendor invoices. In this post I will cover how to consolidate intercompany customer invoice.

In order to achieve the consolidation of intercompany customer invoices the default summary update for the customer should be activated for intercompany customer account, otherwise the arrange function will not be activated, in other words when press Arrange button will not take the expected effect.

Go to customer account then go to Setup group and select Summary update, in default values for summary update mark invoice check box.

I already created two intercompany sales orders, and hereunder the invoice consolidation process.
Go to Periodic| sales update| Invoice. Then retrieve customer sales orders, the system will retrieve the two sales orders in the lines. The summary update must be Automatic summary option.

Press Arrange button, then the system consolidated the two invoices in one line.

The post How to consolidate intercompany customer invoices appeared first on Microsoft Dynamics 365 Blog.

The intercompany transactions are frequently used between sister companies; at the end of the trading cycle the invoicing should take place.

Let us assume that there is trading relation between two sister companies, in daily business practice company A sells goods to its sister company B. The invoices relation could be one invoice for one intercompany sales order/purchase order or one invoice could consolidate several sales orders/purchase orders. In this post I will talk about how to consolidate intercompany vendor invoice.

In order to achieve the consolidation of intercompany vendor invoices the default summary update for the vendor should be activated for intercompany vendor account.

Go to vendor account then go to Setup group and select Summary update, in default values for summary update mark invoice check box.

I already created two intercompany purchase orders, and hereunder the invoice consolidation process.
Go to Periodic| Maintain vendor invoice. Then retrieve from purchase orders, the system will retrieve the two purchase orders in the lines.

Enter same invoice number, and then go to consolidate invoices.

The system consolidated the two invoices in one line.

The post How to consolidate intercompany vendor invoices appeared first on Microsoft Dynamics 365 Blog.

I had published a blog post earlier this month which covered the process of how to produce an item at time of sales order. In this post I will cover another scenario where there is residual stock of bagged item in the warehouse, and there is a requirement to produce the difference from a production order. This could be handled by Net requirement functionality from the sales order line, which will fire a planned production order by the difference. After firming the planned production order the system will create a production order to produce the quantity.

The on-hand shows that the bagged item has physical inventory = 10 and the on order = 100 that is entered in a sales order line.

Ensure that there is a coverage group on the item setup, with planned order type Production.

Sales order with 100 ton.

Then go to Product and Supply, and select Net requirement.

Net requirement form

In the lower pane select Update| Master scheduling

Press OK

A planned production order will be created, and you can see the line on the net requirement

In order to Firm the planned production order, go to Production control| Common| Planned production order Ensure you filter on the same plan “DynPlan in my example”

After Firming the planned production order, it will create a production order to be ended to produce the required quantity = 90. And you can see the reference to the sales order and planned order as well.

The post How to produce an item at time of sales order if there is residual balance of the finished goods appeared first on Microsoft Dynamics 365 Blog.

This content covers a business scenario of producing a sellable item at the time of sales order creation. This is a common practice in some companies where they sell a finished product, but do not keep any stock of it in the warehouse. In other words the finished product will be produced on demand.

The business scenario this is as follows:

1. A customer requests an item
2. The sales order created for the finished “sellable” product
3. Generate a production order linked to sales order to consume the raw material and produce the finished product.

In order to execute this process, create a sales order for finished goods “Bagged”, then go to Product and supply button and select Production order.

Create production order form will popup, press OK to create the production order.

In the production order go to Order details, and select BOM.

In the BOM form, enter the quantities which will be consumed from the Bulk item

Then press, Estimate, and End the production order.

Infolog indicates the consumption of bulk item, and produce the bagged item.

The on hand quantity of the bagged item are stocked in the warehouse and could be released from the sales order.

In the next blog post will cover the same business scenario with automation in production order creation.

The post How to manually produce an item at the time of a sales order appeared first on Microsoft Dynamics 365 Blog.