In today’s fast-moving world, keeping track of inventory is incredibly important for businesses of all types and sizes. Proper inventory tracking ensures that businesses can maintain product quality, comply with industry regulations, and deliver better customer experiences. Dynamics 365 Finance & Operations (D365F&O) offers powerful tools to simplify this process, including the use of batch and serial numbers. These features allow businesses to track and manage products accurately, from the time they are manufactured or received to when they reach the customer. Let’s take a closer look at what batch and serial numbers are, how they work in D365F&O, and why they are essential for efficient inventory management. What Are Batch and Serial Numbers? Batch Numbers: Batch numbers are unique identifiers used to group items that were manufactured or received under similar conditions, such as during the same production run or shipment. These numbers make it easier to track and manage items collectively. Batch numbers are particularly useful for businesses that deal with perishable goods or need to maintain strict quality control. For example: Serial Numbers: Serial numbers are unique codes assigned to individual items, allowing each product to be tracked separately. Unlike batch numbers, which apply to groups of items, serial numbers provide item-level traceability. This is especially important for businesses dealing with high-value or complex products. For example: How to Configure Batch and Serial Numbers in D365F&O D365F&O makes it simple to set up and manage batch and serial numbers, ensuring smooth inventory operations. Here’s how you can configure these features step by step: 1. Set Up Tracking Dimensions: 2.Assign Tracking Dimensions to Items: 3.Enable Automatic Numbering: 4.Test and Train: Why Are Batch and Serial Numbers Important? Batch and serial numbers play a crucial role in modern inventory management, offering a range of benefits that streamline operations and reduce risks. Some key advantages include: To conclude, this blog is Part 1 of our detailed guide on batch and serial numbers in D365F&O. We’ve explored what batch and serial numbers are, why they’re important, and how to set them up in the system. By implementing these features, businesses can improve traceability, enhance inventory accuracy, and ensure compliance with industry regulations. In the next part, we’ll take a practical look at how to use batch and serial numbers in day-to-day operations. This will include real-world examples, step-by-step processes, and screenshots to help you better understand how these features can streamline your inventory management. Stay tuned for more insights and practical tips to make the most of D365F&O’s powerful inventory tracking capabilities! That’s it for this blog. Hope this helps!! 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.

Managing inventory is an important part of any business, and keeping track of stock levels is key to smooth operations. Negative inventory happens when your system shows that you have less than zero items in stock. This can cause problems like delays, mistakes in finances, and unhappy customers. Luckily, Dynamics 365 Finance & Operations (D365F&O) has tools to help you avoid negative inventory. In this blog, we’ll share simple tips and tricks to keep your inventory accurate. What is Negative Inventory? Negative inventory means your system says you have less stock than zero. For example, if you sell or use more items than you have in storage, the system might show a negative number. This can happen because: Negative inventory can cause confusion, financial mistakes, and problems in planning and ordering stock. How to Avoid Negative Inventory in D365F&O Here are some easy steps to prevent negative inventory in D365F&O: 1. Set Up Item Model Groups Item model groups control how inventory is managed. Setting them up properly helps avoid negative inventory. 2. Use Inventory Reservations Inventory reservations make sure stock is set aside for specific orders, so you don’t overcommit. 3. Track Inventory Dimensions Inventory dimensions, like site, warehouse, batch, and serial number, help you track stock accurately. Make sure these are used correctly for each product. 4. Do Regular Cycle Counts Cycle counts help you check if the stock in your system matches what you actually have. Fixing any mistakes quickly avoids negative inventory. 5. Post Transactions in Order Posting transactions in the wrong order can cause temporary negative inventory. For example, issuing stock before recording receipts. 6. Check Inventory Transactions Often Review inventory transactions to catch and fix issues early. 7. Train Your Team Training your team is key to preventing mistakes that lead to negative inventory. Benefits of Avoiding Negative Inventory Preventing negative inventory can make a big difference for your business: Avoiding negative inventory in D365F&O is about using the right settings and following good processes. By setting up item model groups, using reservations, doing regular cycle counts, and keeping an eye on transactions, you can prevent negative inventory and keep your stock levels accurate. These steps will improve your operations, make customers happy, and help your business run smoothly. Start using these tips today to get the most out of Dynamics 365 Finance & Operations for inventory management! So, that its for this blog. Thanks for reading!! 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.

Timely vendor invoice processing and vendor payments means good supplier relationships and operational efficiency. Manual processing of vendor invoice and payments involve risks of amount error, duplicate payment. Challenges:   Solution : This will allow automation for invoice processing and no scope for manual intervention for payment processing and record reconciliation. Conclusion: Apt vendor invoice management is essential in building and sustaining a company’s operational capabilities and financial balance. This translates into streamlining payment operations, avoiding expensive delays, and strengthening supplier relationships. With the rise of automation and digital solutions, managing procurement and payments has become more efficient and error-free. 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 order to operate and prosper Companies need to complete several compliances. Legal compliances are crucial as non-compliance attracts financial penalties, interest charges, and additional tax assessments. For businesses, tax compliance is crucial for maintaining a good reputation and building trust with customers, suppliers, and investors Critical Issue:   Manual data upload in GST portal for GST return filing. Generating E-Invoices and E-Way bill manually. Challenges:  Risk of errors in manual processing. Delays in data synchronization impacting compliance. Solution : Finance clear tax integration for D365 helps to manage e-way bill, e-invoicing through integration with GSP portal for GST. It automates the following : •Generate e-invoice, e-way bill. •Fetch IRN Number, QR Code & E-way bill number. •Cancel e-invoice, e-way bill. Conclusion: Ensuring tax compliance involves understanding your tax obligations, keeping accurate records, and staying informed about changes in tax laws. In addition, by enabling automation in compliances, Companies can achieve and maintain data accuracy, scalability, and enhanced reporting and real time updates. 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 & Operations (D365F&O), the concepts of physical and financial posting are at the core of inventory and transaction management. Understanding how these two processes work and their impact on inventory valuation and ledger updates is crucial for maintaining accurate financial records and operational efficiency. The Physical and Financial posting Checkboxes are in the Item Model Group. The pathway for which is: Inventory Management>Set Up> Inventory> Item Model Group. So, what is Physical Posting? Physical Posting refers to recording the movement or status change of Inventory Items without affecting the Financial Ledger. If this option is cleared, packing slips, product receipts, and production orders that are reported as finished are not posted in the ledger, regardless of the settings in the parameter setup pages. These transactions track physical inventory levels and ensure operational accuracy. Examples of physical postings include: Physical postings are essential for operational teams to track stock levels and manage logistics effectively. However, they do not impact the financial statements until a corresponding financial posting occurs. What is Financial Posting? Financial Posting occurs when a Transaction affects the company’s General Ledger, impacting financial accounts such as Cost of Goods Sold (COGS) and Accounts Payable/Receivable. If this option is cleared, the way accounting entries are handled changes significantly to simplify the process. When a purchase order is invoice-updated, the value of the items is posted only to the item consumption account and not to the inventory receipt account. Similarly, when a sales order is invoice-updated, no entries are made in either the item consumption account or the issue account. This option is especially helpful for service items, where posting item consumption during sales order invoicing isn’t necessary. By clearing this option, the journal lines for these items do not generate any ledger postings, keeping your financial records clean and focused without unnecessary complexities. Examples of financial postings include: Financial postings ensure that all inventory transactions are accurately reflected in financial records, enabling proper accounting and compliance with regulatory standards. Key Differences Between Physical and Financial Posting Aspect Physical Posting Financial Posting Impact Tracks inventory movement/status. Updates financial accounts. Ledger Update No impact on the general ledger. Impacts general ledger accounts. Use Case Operational purposes (e.g., stock tracking). Financial reporting and accounting. Examples Product receipts, stock transfers. Invoices, COGS postings, sales revenue. Configuring Posting in D365F&O D365F&O allows businesses to control how physical and financial postings are handled using parameters and setups. Here’s how you can configure them: To encapsulate, Physical and financial postings in D365F&O are fundamental to achieving a seamless connection between operational processes and financial reporting. They ensure that inventory movements are accurately tracked and that financial records reflect real-time business activities. By configuring these setups correctly, organizations can enhance their decision-making capabilities, reduce errors, and maintain compliance with accounting standards. Moreover, understanding the nuances of these postings allows businesses to streamline operations. For example, leveraging features like item model groups or automated posting parameters ensures that teams can focus on strategic growth rather than manual corrections. This integration of operational and financial data also supports better collaboration between departments, paving the way for improved efficiency and transparency. Ultimately, D365F&O empowers businesses to not only track their inventory effectively but also align their financial records with operational realities, creating a robust framework for sustainable growth and success. That’s it for this blog. 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.

Are you struggling with deploying extensions from the sandbox to production in Dynamics 365 Finance and Operations? I’m going to show you how to do it step by step for a smooth and error-free transition! In this guide, we will walk through the process of moving an extension from a sandbox environment to production in Dynamics 365 Finance and Operations (F&O). This process involves exporting the extension from the sandbox, importing it into production, and ensuring that it functions as expected in the live environment. 3. Mark as Release and Sign Off: Once the extension is confirmed to be deployed, click on “Mark as Release” and ensure that you sign off on the extension. Signing off is crucial, as failure to do so will prevent the extension from appearing in the production environment. 4. Navigate to LCS and Open the Production Environment: Go to Lifecycle Services (LCS) and access the production environment. 5. Update Environment: Click on the “Maintain” and “Update Environment” option and select the sandbox environment. Wait for a few seconds to allow the system to load all the signed-off extensions that have been deployed in the sandbox. 6. Select the Latest Extension: Your extension will appear at the top of the list as the most recent signed-off version. Click on it and schedule the deployment for the desired time to update the production environment with the extension. Validate the Deployment – After deployment, test the Production environment to ensure the new logic works as expected. – Run key processes to validate the customizations and confirm no errors. Resolve Issues if Necessary – If there are any deployment errors or issues, review the error logs and fix them before re-deploying. Following the outlined process ensures that your extension is successfully migrated from sandbox to production, minimizing deployment errors and maintaining the integrity of your customizations in Dynamics 365 Finance and Operations. By adhering to these steps, you can confidently deploy your extensions to the production environment with minimal disruptions, ensuring a smooth transition and operational efficiency. Conclusion Successfully migrating an extension from the sandbox to production in Dynamics 365 Finance and Operations is a critical step in ensuring your customizations are properly implemented in the live environment. By following the steps outlined above, you can seamlessly transition your extension while maintaining control over the deployment process.If you’re facing challenges deploying an extension in the sandbox, check out our previous blog for a step-by-step guide. Here’s the link: Step-by-Step Guide: Deploying a Package from the Asset Library to UAT – CloudFronts Happy deploying!

  Have you ever encountered the error:“The underlying connection was closed: Could not establish trust relationship for the SSL/TLS secure channel”while deploying from Visual Studio to Finance and Operations. This error is often linked to an expired or invalid SSL certificate in your environment.  This also shows up as an expired SSL Certificate warning when you open your Finance and Operations environment from the browser. Certificates are critical for securing communication channels, and an expired certificate can disrupt services and integrations.In this blog, we’ll explore the cause of the error and provide steps to resolve it. References Eugene Dmytriienko – Onpremise Certificate Rotation Said Nikjou – Rotate Secrets via LCS MS Docs – Certificate Rotation Configuration In a new cloud hosted environment, the SSL Certificate stays valid for one year by default.Post that, it expires at which point it is essential to renew the SSL Certificate. For Cloud Hosted environments, it is really simple to do via the LCS. Go to LCS and open the environment which has the expired SSL. Click on Maintain and then “Rotate Secrets” In the pop-up menu, select the change type as “Rotate SSL Certificates” After that the environment will go into servicing and the status will reflect “Rotating Secrets” This entire process should take less than 15 minutes. The documentation suggests secrets rotation should show up in the enviroment history however in my attempt it didn’t so I’m not sure if that’s reliable or not or whether that is only for Tier 2 and above environments though that doesn’t make much sense. Anyways, once this is done we can see that the SSL error has been resolved. Conclusion SSL certificates are the backbone of secure communication in Dynamics 365 Finance and Operations environments.An expired certificate can disrupt critical functionalities, but with proper certificate management, such issues can be avoided.Regularly monitor your SSL certificate validity to ensure uninterrupted operations. 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

In manufacturing industry, there are scenarios where there is need to change some bill of materials items due to various reasons. i.e. due to lack of availability of original material, or there may be increase in price of original material. & once production order is scheduled then it is not possible to change raw materials. As a result, Microsoft has added a new feature that allows users to switch out BOM items for other items on planned or estimated production orders. This feature is useful for production manager to keep production running as well as to business personnel to keep business running in absence of or lack of required material, provided that alternate material is available. Prerequisites for altering BOM items on production orders: – system must meet the following requirements: Also note that, one can change BOM items only for production orders that have a status of Estimated or Scheduled. 1.Now, will consider finish good L0001 for this example. Finish good number L0001, as per original BOM has raw materials M0001, M0002, M0003, M0004, M0005, M0006 & P0002. 2.Create production order for item L0001. 3.Change status to Estimate. 4.Now check estimation from Manage cost -> View calculation details -> original raw materials are considered for production order. 5.Now to change BOM item go to Production order -> Change BOM item 6.Now select raw material which needs to be replaced “From item” & “To item”.  & “To item quantity” specify required quantity of new item. Or if “To item quantity” indicates how much of the new item is needed. 7.In Production order lines Tab, select required production order / Orders in which needs to replace BOM item. Click Ok. 8.Now if we check estimation from Manage cost -> View calculation details -> New raw material is considered for production order. M0007 is considered for production order instead of M0006. & consumption is same as original material as “To quantity” was kept as 0. Conclusion – By activating “Change BOM item” feature on system version 10.0.38 or later, can change BOM item on Estimated or scheduled production orders. 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

Are you looking for a cost-effective way to set up a development and testing environment for Dynamics 365 for Finance and Operations (D365FO)? If Azure expenses are a concern, deploying a local Virtual Hard Drive (VHD) is a practical alternative. This step-by-step guide will walk you through the process to get started. Why This is ImportantA local VHD setup provides a robust environment for developers to test and build without incurring cloud costs. With sufficient technical planning, you can have a fully functional Dynamics 365 instance running locally. Step 1: Download the VHD Step 2: Set Up the Virtualization Environment Step 3: Configure the Virtual Machine Step 4: Finalize Setup Step 5: Launch D365FO Environment Tips for Maintenance By following these steps, you can set up a robust development environment for D365FO without relying on Azure. 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