Budget Control in D365 Finance allows organizations to enforce spending discipline by validating transactions against defined budgets. Here are the steps to set it up. 1. Navigate to Setup Go to: Budgeting > Setup > Budget control configuration. 2. General Settings 3. Define Dimensions Select the financial dimensions to apply budget control against, such as: If Department + Cost Center are selected, every transaction is validated against that combined budget. 4. Approval Rules Determine the actions when a budget is exceeded: 5. Documents & Journals Specify which transactions should be included in budget checks, such as: It is best practice to include unposted documents (e.g., open POs) to ensure commitments are accurately reflected. 6. Activate Once the configuration is complete, activate Budget Control. From this point, all relevant transactions will be validated against the assigned budgets. Example To conclude, budget Control in Dynamics 365 Finance is straightforward to configure but highly effective in preventing overspending. With the right setup, organizations can gain real-time visibility and strengthen financial governance. For Finance consultants, system admins requiring guidance with setup or optimization, CloudFronts can help you design the right Budget Control configuration for your business. Get in touch with CloudFronts Technologies at transform@cloudfronts.com for assistance.

Global equipment lessors often manage thousands of active contracts across multiple regions. Add in layered financing structures—equity, debt, and third-party investors—and the complexity grows rapidly. Manual processes in this environment create risks in billing accuracy, funding visibility, and profitability tracking. Choosing Microsoft Dynamics 365 Finance & Operations (F&O) by integrating Project Management, Subscription Billing, Dynamics 365 Sales Pro/CRM, Logic Apps, and Power BI, the platform automates the entire lease lifecycle while ensuring transparency and control. Lease Lifecycle Automation Subscription Billing Module: Lessors can: This automation ensures every lease follows consistent accounting treatment and reduces manual workload for finance teams. Multi-Layer Financing Most lessors fund contracts through multiple sources. Dynamics 365 F&O allows you to: This provides clarity not just for finance teams, but also for investors seeking insight into their returns. Business Impact To conclude, by automating lease setup and financing structures, lessors gain: If you are a Lessor and wish to digitize lease lifecycle management and layered financing, adopt the strategy explained above to scale systematically, reduce risks, and provide stakeholders with the visibility they expect. Let’s build the strategy together. You can reach out to us at transform@cloudfonts.com.

This blog outlines the steps required to ensure audit compliance within Microsoft Dynamics 365 Finance and Operations using workflow configurations, database logging, and segregation of duties rules. The goal is to provide a comprehensive record of transaction approvals and status changes. 1. Configure workflow approvalsLocation: Organization Administration > Workflow > Workflow EditorDescription: This section displays the workflow design screen, highlighting steps like review and approve, including role assignments and conditions. 2. Enable database logs for workflow tracking Location: System Administration > Links > Database > Database Log Setup Description: Enables database logging for critical tables and fields related to workflow status changes. 3. View and export workflow History Location: System Administration > Inquiries > Workflow History and Tracking Description: Displays workflow instances, status changes, timestamps, and provides export capabilities. 4. Segregation of Duties Compliance Location: System Administration > Security > Segregation of Duties Rules Description: Shows configured rules and potential role conflicts for review and action. To conclude, integrating workflows in D365 is not just about meeting audit requirements—it also drives operational efficiency, improves data governance, and strengthens organizational integrity. By embedding compliance into daily business processes, companies can proactively manage risk and build a strong foundation for sustainable growth. 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.

Accurate inventory valuation is crucial for ensuring the financial integrity of any business using Microsoft Dynamics 365 Finance & Operations (D365 F&O). Companies with substantial inventory transactions must follow a structured approach to avoid discrepancies and ensure that profit and loss calculations are correctly reported. This Standard Operating Procedure (SOP) outlines the necessary steps to efficiently close inventory transactions, reconcile accounts, and maintain a reliable financial record. In Dynamics 365 Finance & Operations, companies having substantial inventory transactions should follow a certain set of rules so that the inventory valuation runs correctly and the Profit and loss for the company is worked out correctly. All the “Sales Orders” Having under this status shows Inventory Reserved this should be Un-reserved Before Closing All the “Transfer Orders” under this status should be should be Un-reserved Before Closing All the “journals” Under This Status Must Be Settled or Reversed. All the sales orders under this status show sales orders that are not invoiced but for whose GRN/ Delivery Has been Made these must be Invoiced. All the “Transfer Orders” under this status should be should be Un-reserved Before Closing All the “journals” Under This Status Must Be Settled or Reversed. 2. Post/delete unposted inventory journals 3. Close if there’s any registered/Picked journals  2. Closing the Inventory : during off working hours – this is a mandatory condition. To conclude, following a structured month-end close process ensures accurate financial reporting, prevents transaction mismatches, and keeps inventory valuation aligned with company objectives. By maintaining disciplined inventory management and performing routine cleanups, organizations can significantly enhance operational efficiency and ensure compliance with financial regulations. This SOP provides a clear roadmap for month-end inventory reconciliation, ensuring a smooth and error-free closing. 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

Companies need to control access of different modules for security and operational reasons. In this blog, we will see how we can do it in D365 F&O. For any business securing financial data is paramount. Microsoft Dynamics 365 Finance and Operations (D365 F&O) provides organizations with a functionalities to manage and analyze financial operations, including accounting, procurement, and supply chain management. It is crucial to ensure that access to this data is carefully controlled. In this blog, we’ll explore General Ledger User Access Control in D365 F&O. This feature is to ensure correct level of access to financial data, preventing unauthorized actions and reducing the risk of fraud or errors. By the end of this post, you’ll have a clearer understanding of how to efficiently manage user roles, permissions, and access levels in the General Ledger module, helping to maintain both security and compliance in your financial operations. Please follow the below steps: =>Security diagnostics. Below screen will appear Option 2 This functionality helps in access control and security configuration and audit procedures.As D365 F&O continues to evolve, organizations should regularly review and update user permissions, leveraging available tools like security diagnostics, audit logs, and workflow approvals to maintain a secure and compliant financial environment. 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.

Certain Companies are required to follow reducing balance method of depreciation. The reducing balance depreciation method applies a fixed percentage rate of depreciation to the asset’s net book value (the asset’s value after previous depreciation) each accounting period. This results in higher depreciation expenses during the earlier years of the asset’s useful life and gradually lower charges in later years. Within D365 F&O, this method is easy to configure through the fixed assets module, enabling organizations to automate depreciation schedules, comply with accounting standards, and maintain accurate financial records. Setting up the Reducing Balance method involves defining depreciation profiles, setting appropriate percentage rates, and aligning the method with an organization’s accounting policies. This approach supports better financial management by providing a realistic representation of asset values, aiding in decision-making processes related to asset replacement, disposal, and reporting. In D365F&O, for reducing balance method, below steps needs to be followed: 2. Select depreciation year – Calendar or fiscal. 3.Assign depreciation method to specific asset and run depreciation proposal. To conclude, this depreciation method matches higher early asset usage with higher early expenses and for fast-obsoleting assets. Industries applicable – Technology, Automotive, Retail, Aviation.The reducing balance depreciation method in D365 F&O offers a practical and flexible approach for organizations to manage asset depreciation more accurately. By applying a consistent percentage rate to the declining book value of an asset, this method aligns well with assets that lose their value more rapidly in the earlier years of use. Microsoft Dynamics 365 Finance and Operations simplifies the implementation of this method through its comprehensive fixed assets module, allowing businesses to automate calculations, ensure compliance with accounting standards, and produce reliable financial reports. 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.

Indian Companies are required to maintain fixed asset records as per Companies Act and Income Tax Act, governed by Companies Act, 2013, and the Income Tax Act, 1961, respectively. While the Companies Act focuses on providing a true and fair view of an organization’s financial position for stakeholders, the Income Tax Act is concerned with determining taxable income and ensuring fair tax collection. This blog will explore the methodologies, and practical considerations for managing fixed asset depreciation under the Companies Act and the Income Tax Act, helping organizations to be compliant. This is possible by following the below steps: This functionality helps companies to maintain proper records, traceability and retrieval of records for compliance. Organizations must carefully maintain separate records and calculations to meet the distinct requirements of both laws. Aligning accounting practices with these regulatory frameworks not only helps in minimizing compliance risks but also optimizes financial planning and tax efficiency. Regular reviews and updates in line with legislative changes are critical to sustaining accurate asset management and reporting. 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.

In Dynamics 365 Finance and Operations (D365 F&O), managing the lifecycle of purchase orders (POs) is important for maintaining accurate procurement, inventory, and financial records. Over time, companies may accumulate old or obsolete purchase orders that are no longer valid — whether due to supplier changes, business needs evolving, or operational delays. Cancelling these POs helps keep the system clean, improves reporting accuracy, and prevents unnecessary financial commitments. Purchase orders can have the following status & stages: Stage Status Confirmed Invoiced Rejected Received Draft Open order Approved Cancelled In review   Finalized   From Finance & Accounts point of view, Open PO means commitments to order and contingent financial liabilities. Rationale behind cancelling of old Pos: Cancelling old or unordered POs ensures that your records are up to date and reflective of actual business needs, which is important for financial planning, reporting, and auditing. Companies can streamline their procurement processes by maintaining only those Purchase Orders which are active and required as per current business needs. This was an issue faced by one of our Client in Oil and Gas industries which was resolved by using the below method. Stage Status Finalized Invoiced   Received Closing of Purchase orders: Purchase Orders can be closed only if all the items contained in the Purchase order are invoiced and the delivery is completed. Cancelling of Purchase orders: Purchase orders having In principle, in the above cases, PO is no longer required, and requirements are not fulfilled though the particular PO. Hence, it is justified to cancel the PO and not close it. Stage Status Confirmed Open order Rejected   Draft   Approved   In review   Click on Cancel quantity. In case of approved & draft purchase orders. Deactivate the workflow and continue the same process. We can delete the purchase orders which are in draft, however, then it would not be traceable in the system and the number sequences would be disrupted. By following the above process, Companies can maintain only active Purchase Orders, thereby, showing the actual committed value of an organization. Effectively cancelling old purchase orders in D365 F&O is crucial for maintaining clean procurement records, improving reporting accuracy, and ensuring better control over open financial commitments. By following systematic cancellation processes and adhering to best practices, organizations can avoid confusion, prevent overstatement of liabilities, and streamline operational workflows. Regularly reviewing and closing obsolete purchase orders not only enhances system performance but also supports better decision-making for purchasing, budgeting, and inventory management. A disciplined approach to managing old POs ultimately leads to greater efficiency, improved compliance, and stronger financial governance within D365 F&O. 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.

Financial records of a Company should show its true and fair value of its assets and liabilities. In circumstances, for value of assets to be shown correctly, they have to be depreciated as per their use. For examples, car (kms run), production machine (number of hours run). In this case, straight line or reducing balance method of depreciation is not appropriate. How to set up Consumption Depreciation in D365F&O: 2. Set up consumption units under Fixed Assets=>Setup=>Consumption depreciation=> Consumption units. 3. Set up the consumption factor, either percent or units. 4. Define the depreciation method to the specific asset. 5. Run depreciation proposal by selecting consumption depreciation proposal. This depreciation method is applicable to Manufacturing, Transportation & Logistics, Mining & Oil and Gas, Utilities & Energy, Agriculture, Printing and Publishing. This depreciation method is useful for performance-based maintenance and replacement planning. 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.

Inventory valuation is important for any manufacturing and trading business. The stakeholders would be Cost Accountants, CFOs and investors. Further, Inventory cost is the major budget element. Recently, we had a client raise the issue of cost price of inventory items not getting correctly calculated because of the following factors: Steps to be followed: 2. Go to Adjustment=>Fixed Price 3. It will show inventory transactions as per the selection criteria, with their quantity and cost price. 4. Click on Fixed Price and put the approved cost price per unit for the item variant.Click on the post button. 5. There will be a posting entry in Closing & Adjustment tab. 6. Run recalculation for the item as on the cost price date. 7. Review the Inventory Aging report or Inventory transaction report. The updated price must be reflected. 8. Recalculation can be run together after updating individual item’s cost price. 9. This must be done prior to the running inventory month close.   Conclusion : This process should be an integral part of inventory valuation. Correct inventory valuation would ensure correct cost of goods sold (COGS), gross profit (GP) and cost value of asset in Balance Sheet. 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.