Inventory is the core of many businesses. Whether you’re selling products, making goods, or managing a supply chain, keeping the right stock at the right time is key. Microsoft Dynamics 365 Business Central helps businesses handle inventory with ease and clarity. 1. Central Item List Item lists are the backbone of inventory management. Business Central lets you create a structured list of all your products—whether you buy them, sell them, or just store them. This organized list becomes the single source of truth across all departments. 2. Real-Time Inventory Levels Business Central keeps track of: This helps businesses plan better and fulfill orders faster without confusion. 3. Multi-Location Tracking If you manage inventory in multiple places (like stores, warehouses, or branches), Business Central supports that too. You can: 4. Reorder and Stock Planning With built-in reorder logic, Business Central tells you when to buy and how much to buy. It considers: This reduces guesswork and supports a smooth procurement process. 5. Purchase and Sales Integration When a purchase order is received or a sales order is shipped, inventory updates automatically. This minimizes the need for manual updates and keeps everyone on the same page. 6. Lot and Serial Number Tracking Business Central supports lot numbers and serial numbers. This helps with: 7. Inventory Valuation Methods You can choose how to value your inventory: This supports accurate financial reporting and cost control. 8. Inventory Transfers Do you need to move items from one location to another? Use transfer orders. You can record: 9. Inventory Adjustments Sometimes physical counts don’t match system data. Business Central allows easy stock corrections for: 10. Reports and Insights With built-in reports and dashboards, you can track: These insights will assist you in making well-informed decisions and planning ahead. Why It Matters Good inventory management helps you: Business Central gives you the tools to manage stock simply and efficiently. If you’re using spreadsheets or disconnected tools to manage inventory, now is a good time to explore Business Central. It gives you more control, better insights, and smoother operations—all in one place. We hope you found this blog useful. If you would like to discuss anything, you can reach out to us at transform@cloudfronts.com.

A well-structured Chart of Accounts (COA) is essential for achieving accuracy and efficiency in financial management. In Microsoft Dynamics 365 Business Central, the COA plays a key role in organizing financial data, supporting compliance, and enabling insightful reporting. By implementing effective strategies and tips, businesses can create a reliable and scalable financial environment. Below, we explore practical steps for setting up a successful environment with the Chart of Accounts in Business Central. Understand the Basics of the Chart of Accounts The Chart of Accounts in Business Central provides a framework for categorizing financial transactions. Key components include: Organize accounts into primary groups such as Assets, Liabilities, Equity, Income, and Expenses. Define Clear Financial Goals Establishing clear financial goals helps align the COA structure with business objectives: Streamline Account Structures To maintain efficiency, simplify the Chart of Accounts structure: Develop a Logical Numbering System A structured numbering system improves navigation and consistency: Configure Posting Groups Posting groups automate how transactions are allocated to accounts: Perform Testing and Validation Ensure the setup supports business requirements by testing thoroughly: Plan for Future Needs Business needs evolve over time, requiring flexibility in financial systems: To encapsulate, creating a successful financial environment with Microsoft Dynamics 365 Business Central’s Chart of Accounts involves careful planning, structured setup, and ongoing maintenance. By simplifying account structures, leveraging dimensions, and ensuring scalability, businesses can build a COA that supports both current operations and future growth. These strategies and tips will help your organization manage finances more effectively and ensure your systems are aligned with broader business goals. If you’d like guidance on setting up dimensions, configuring posting groups, or optimizing reporting, feel free to ask! We hope you found this blog useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfonts.com.

Introduction In Microsoft Business Central, businesses that work with different currencies must manage foreign currency gains and losses. Changes in exchange rates between when a transaction happens and when it is settled or reported cause these gains or losses.In this blog, I will show you how to create a sales invoice and payment receipt using foreign currency. This will explain how Microsoft Dynamics 365 Business Central converts foreign currency to local currency and tracks realized or unrealized gains and losses. I will also show how to run the Adjust Exchange Rate batch job in Microsoft Dynamics 365 Business Central. Understanding Foreign Currency and Setup Foreign currency transactions involve buying, selling, or holding assets and liabilities in currencies other than the company’s main currency. When these transactions are settled or revalued at the end of a period, changes in exchange rates can lead to a gain or loss. This difference must be correctly shown in the financial statements for accurate reporting and compliance. Business Central calculates foreign currency gains and losses based on changes in the exchange rate between the posting date of a sales or purchase invoice and the date of a payment or related entry. Setting up Foreign Currency with Realized and Unrealized Gains and Losses Account If you do any of the following, you need to set up a code for each currency you use: – Buy or sell in currencies other than your local currency (LCY) – Record general ledger transactions in both LCY and an additional reporting currency (if require). You can also search for ‘Currencies’ in the search toolbar. You can set the corresponding posting G/L Account No. for Realized and Unrealized Gains and Losses entries by editing the Currency Card. Define Exchange Rate Exchange rates are used to calculate the local currency value (LCY) of each currency transaction. In this example, I will use USD as the foreign currency (FCY) with the sample setup shown in the Currency Exchange Rates table. On the first line of the above table, it indicates that on or after 01.06.2024, USD amount transactions will be converted to LCY using the relationship of 1 USD = 80 INR. This is effective until there is another entry with the latest starting date (i.e., 15.06.2024 where 1 USD = 81 INR and so on). Transactions Creation of Sales Invoice using USD Currency Amount: USD $5,000 Posting Date: 01.06.2024 Exchange Rate: 1 USD = 80 INR The invoice below does not include GST or discounts to make it easier to review. I have also checked that the correct currency code is selected in the Invoice Details section of the sales invoice. By clicking the assist button next to the currency code, you can see the exchange rate used to convert the transaction to local currency (LCY). Note: If the Fix Exchange Rate Amount field in the Currency Exchange Rates Table is set to “Currency” or “Relational Currency,” you can change the Exchange Rate or the Relational Exchange Rate Amount on this page. If you don’t want these to be changed during a transaction, set the value to “Both.” On the Sales Invoice Statistics, you will see that this has already converted to the Local Currency correctly using the exchange rate defined on the setup. Reviewing General Ledger Entries of Posted Sales Invoice Also take note of the FCY and LCY amounts posted in Amount and Amount (LCY) fields of Customer Ledger Entry. Creation of Bank Receipt Entry using USD Currency Amount: USD $5,000 Posting Date: 15.06.2024 Exchange Rate: 1 USD = 81 INR Reviewing General Ledger Entries of Posted Bank Receipt Apply Posted Bank Receipt Entry against Posted Sales Invoice Rever below mentioned screenshot of Customer Leder Entries which was of before applying posted bank receipt payment entry, in both the lines amount LCY is different because of the difference of exchange rate. Now, we will apply Payment entry to Posted Sales Invoice, which was posted on 01.06.2024. Once applied the Amount (LCY) is updated accordingly and balance amount is transferred to realized gain / loss account. Reviewing General Ledger Entries of Posted Bank Receipt – After Application In the above-mentioned screenshot, system has posted Realized Gain Account Entry of the difference amount and adjusted the same in Detailed Customer Ledger Entries to show the exact amount in Amount (LCY). Conclusion Managing foreign currency transactions in Microsoft Dynamics 365 Business Central is essential for businesses dealing with multiple currencies. By setting up the correct exchange rates and tracking realized and unrealized gains or losses, companies can ensure accurate financial reporting. I will be demonstrating how to execute Adjust Exchange Rates Batch Job in Part 2. We hope you found this article useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfronts.com