In any organization, maintaining accurate inventory records is critical—not only for operational efficiency but also for financial accuracy, reporting, and compliance. In Dynamics 365 Finance and Operations (D365 F&O), inventory is tracked from two perspectives: Physical inventory and financial inventory. While these two should ideally be aligned at all times, mismatches are common in practice. Whether caused by pending invoices, misconfigured settings, or improper transaction handling, discrepancies between physical and financial inventory can create confusion, misstatements in financials, and operational bottlenecks. This blog explains why these mismatches occur, how to detect and resolve them, and what best practices you can adopt to ensure alignment between physical and financial inventory in Dynamics 365 F&O. Before diving straight into the blog let us first understand what these Inventory mean so it becomes essential to understand the distinction between the two inventory layers in D365 FNO: A mismatch occurs when the physical quantity and the financial value or quantity of an item do not align, leading to inconsistencies between what’s physically available and what’s financially accounted for. Reasons for Mismatch How to Detect the Mismatch The below points can be considered to identify mismatches between physical and financial inventory in D365 FNO: Tips to resolve the mismatch Let’s take an example to get the better understanding: Suppose a business receives 100 units of an item on a purchase order. The receipt is physically posted, making the stock available in inventory. However, if the invoice is not posted, no financial value is recorded. This results in a positive physical quantity but zero financial value. Once the invoice is posted and inventory is closed or recalculated, the financial value is updated, resolving the mismatch. Best Practices to Prevent Inventory Mismatches To conclude, Inventory mismatches between physical and financial layers in D365 F&O are more than just system issues—they are business-critical challenges. These discrepancies can distort financial reporting, mislead operational planning, and expose the organization to audit risks. The good news is that they are entirely preventable. By understanding the causes, implementing regular checks, and following best practices such as prompt financial posting and scheduled inventory closes, you can maintain accurate, reliable inventory data. Achieving alignment between your physical and financial inventory ensures operational clarity and financial integrity—foundations that are essential for confident decision-making and long-term success. Hope this helps. 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.

If you’re just starting with Dynamics 365 Finance and Operations (Dynamics 365 Finance & Operations) and confused about what Legal Entities, Companies, and Organizational Hierarchies mean, you’re not alone! Let’s break it down in simple terms. What is a Legal Entity? In Dynamics 365, a Legal Entity is an organization that can: Think of a Legal Entity as a registered company or business under the law. Microsoft Docs Reference: Legal entities overview What is a Company in Dynamics 365 Finance & Operations? Each Legal Entity is also referred to as a Company in the system. In the interface, you switch between Companies (Legal Entities) using a 4-character company ID (like USMF or INMF). Tip: Even if you manage multiple companies (e.g., one in India, one in the US), D365 can consolidate and report across them — provided they are set up as separate legal entities. What are Organizational Hierarchies? This is where the real power lies! Organizational Hierarchies define how different parts of your business interact and report to one another. You can set up hierarchies for: Example: A retail chain may have a parent legal entity, and underneath, different divisions like wholesale, online store, and physical stores — all structured in a hierarchy. Microsoft Docs Reference: Organizational hierarchies Real-World Example Let’s say you’re working for a construction company that operates in three countries: You’d set up each country as a Legal Entity (Company). Now, you want: Organizational Hierarchies let you define that.  What Can Be Shared Across Legal Entities? Microsoft allows some data to be shared across companies:  Data sharing and integration To conclude, if you’re evaluating Dynamics 365 Finance and Operations and wondering how to structure your organization within the system, we’d love to help you design it the right way. Whether you’re a startup expanding internationally or an enterprise optimizing operations, your legal entity and organizational structure are the foundation of your Dynamics365 system. Let’s build that foundation together. You can reach out to us at transform@cloudfonts.com.

In today’s fast-paced business environment, staying on top of critical tasks and approvals is vital for maintaining efficiency and ensuring seamless operations. Microsoft Dynamics 365 Finance and Operations (D365 FO) provides a powerful feature—workflow email alerts—to help organizations streamline their processes by automatically notifying the right individuals when certain tasks are completed or conditions are met. In this blog, we will guide you through the step-by-step process of setting up workflow email alerts in D365 FO. Why Workflow Email Alerts Are Important Workflow email alerts are a critical tool for keeping business processes on track. They ensure that: With proper configuration, workflow email alerts can help minimize bottlenecks, enhance communication, and improve overall productivity. Step-by-Step Guide to Setting Up Workflow Email Alerts Step 1: Configure Email Parameters Before you begin, verify that your email parameters are set up correctly to enable email communication: 3. Send a test email to ensure the configuration is working. Step 2: Assign Email Addresses to Users Each user who will receive workflow email alerts needs to have a registered email address in the system: Step 3: Create an Email Template An email template defines the content and layout of the workflow alert emails: Step 4: Assign the Template to the Workflow To send email alerts for specific workflows: Step 5: Configure the Batch Job for Email Notifications To ensure workflow email alerts are sent automatically: Step 6: Monitor Email Sending Status To check the status of email notifications: By following these steps, you can set up workflow email alerts in D365 FO and enhance your organization’s workflow management. With properly configured email alerts, your team will be notified promptly of critical tasks and approvals, ensuring smooth and efficient operations. Take the time to configure these alerts today and experience the benefits of improved communication and productivity in your organization. Thank you for reading! If you have any questions or need further assistance, feel free to reach out in the comments. 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.

Data accuracy and completeness are essential for maintaining robust internal controls in any organization. Microsoft Dynamics 365 Finance and Operations (D365FO) offers various ways to customize forms to meet specific business requirements. One common scenario is when a customer requires certain fields to be mandatory for data entry, even though they aren’t mandatory by default. Fortunately, D365FO allows you to achieve this without any coding. In this blog, we will guide you through the steps to make a field mandatory using the personalization feature. Why Make Fields Mandatory? Ensuring certain fields are mandatory improves data accuracy, reduces errors, and enforces internal controls. For instance, a mandatory Tax Exempt Number field ensures compliance and proper documentation for tax-exempt customers. Step-by-Step Guide to Make a Field Mandatory Step 1: Navigate to the Form and Identify the Field In this example, we’ll make the Tax Exempt Number field mandatory on the Customer form: Step 2: Personalize the Field Step 3: Test the Field Making fields mandatory in D365FO is a simple process that doesn’t require any coding expertise. By using the personalization feature, you can enforce stricter data accuracy and completeness controls to meet customer or business requirements. This quick and easy method ensures that critical information is always captured, improving overall operational efficiency and compliance. Have Questions?If you found this guide helpful or need assistance with further customization in D365FO, feel free to leave a comment or reach out. Thank you 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.

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

Managing item purchase prices effectively is crucial for accurate cost control in Microsoft Dynamics 365 Finance & Operations (D365FO). One of the key features that impacts how item prices update is the Latest Purchase Price Parameter. When enabled, this parameter ensures that an item’s price is updated based on the most recent purchase cost recorded in a Purchase Order (PO). This means that every time a new PO is created, the item’s purchase price can change depending on the most recent cost price recorded in the system. In this blog, we will explore:The impact of enabling the Latest Purchase Price parameter.Step-by-step instructions to activate this parameter.How to track price changes using Last Price History. Impact of Enabling the Latest Purchase Price Parameter Key Effects of Enabling This Parameter:The purchase price of an item in the Item Master updates automatically based on the latest purchase price in a PO.This applies to both fixed and variable pricing models.If multiple POs are created for the same item at different prices, the purchase price will fluctuate accordingly.The updated purchase price will also reflect in the Manage Cost > Item Price section. Example Scenario: Steps to Enable the Latest Purchase Price Parameter in Released Products Step 1: Navigate to Released Products Step 2: Select the Product Step 3: Enable the Latest Purchase Price Parameter Step 4: Set Initial Price in Product Master Step 5: Create a Purchase Order (PO) Step 6: Update the Purchase Price Step 7: Confirm the Purchase Order Step 8: Post the Product Receipt (GRN) Step 9: Invoice the Purchase Order Outcome:Once invoicing is complete, navigate to the Product Master and open the product. If the Latest Purchase Price parameter is enabled, you will see that the purchase price has been updated from 50 USD to 100 USD, reflecting the latest purchase cost. Additionally, under Manage Cost > Item Price, the updated purchase price of 100 USD will be visible. How to Enable Last Price History in Dynamics 365 To track purchase price fluctuations over time, you need to enable the Last Price History feature. Steps to Enable Last Price History: Outcome:Once enabled, you can view historical purchase price changes in the Item Price section, helping businesses analyze pricing trends and make informed purchasing decisions. To conclude, enabling the Latest Purchase Price Parameter in D365FO ensures that item prices remain current based on the most recent purchase cost. This feature is beneficial for businesses managing fluctuating costs and needing accurate pricing in their procurement process. Additionally, by enabling Last Price History, organizations can track price variations over time, ensuring better cost analysis and decision-making. By following the steps outlined in this blog, you can optimize your item pricing strategy and enhance financial accuracy in Dynamics 365 Finance & Operations. 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. Need further assistance? Feel free to leave a comment or reach out for expert guidance on pricing configurations in D365FO! Thank you for reading!

Dynamics 365 Finance and Operations (D365 F&O) allows customization through extensions, enabling developers to add new fields to existing tables and forms without modifying the original Microsoft code. This approach ensures upgrade safety and maintainability. In this blog, we’ll cover: Step 1: Creating a Table Extension A table extension lets you add custom fields to an existing table (e.g., CustTable for customers). 1. Create a Table Extension In Visual Studio, right-click your project → Add → New Item. Select Dynamics 365 Items → Data Model → Table Extension. Name it (e.g., MyCustTableExtension). 2. Define the New Fields After choosing the appropriate data type and entering the required information, you can proceed to create the field. 3. Synchronize the Database After adding fields: Right-click the project → Build. Right-click the project → Dynamics 365 → Synchronize Database. Step 2: Extending a Page to Display the New Fields Now, let’s add these fields to the Customer Details page (CustTable form). 1. Create a Page Extension Right-click your project → Add → New Item. Select Application Explorer → User Interface → Forms  → Create Extension. Name it (e.g., MyCustTablePageExtension). 2. Add Fields to the Page You can drag and place where you want. 3. Build and Test Build the project (F6). Run the CustTable form (Ctrl+F5). Open a customer record → Your new fields should appear under “General Tab”. Best Practices for Extensions To conclude, with table and form extensions, you can safely customize D365 F&O without altering base Microsoft code. This ensures smoother upgrades and better maintainability. Try it out and enhance your F&O implementation today! 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.

Working with Lifecycle Services (LCS) may feel a bit outdated as we prepare for its eventual phase-out, but the reality is that many businesses still rely on it daily. Recently, I encountered an issue while deploying to a new environment after a long break; it kept failing without a clear cause. After investigating, I discovered the SSL certificate was the culprit, which I’d run into before (I’ve shared that experience in a previous post). Naturally, I tried rotating the secrets from LCS, but it failed repeatedly without any error message or explanation. I was ready to raise a ticket with Microsoft when Copilot stepped in with a suggestion that helped me quickly resolve the problem. Here’s what happened and how you can fix it if you face the same issue. What to do: Go into your development VM and search for certificates. You’ll see there’s a certificate with the same name as your VM and if you observe the “Expiration Date” it is past your current date. This is the reason the certificate rotation is failing. Microsoft offers a simple script that can be used to generate another certificate to replace this. Go to “Shared Asset Library” in LCS. Scroll down to “Renew WinRM Certificate” and download it. Move the downloaded zip into your Development VM and extract it. Right click on “RenewWinRMCertificate” file and click on “Edit” to edit it in Windows ISE. Once this is completed, go back to the Certificates and refresh the page. You’ll see there’s another entry with the VM name and a different expiration date. At this point, you can delete the old certificate. After this, go to LCS and restart your development environment. That’s it! Now you can try to rotate your certificate from LCS. And now I can finally get back to my development work! LCS might be on its way out, but for now, it’s still a big part of many businesses’ workflows.Running into deployment failures because of an expired SSL certificate was a frustrating experience, but fixing it turned out to be pretty straightforward.After checking the certificates, running Microsoft’s “Renew WinRM Certificate” script, and restarting the environment, I was able to rotate the secrets without a hitch.  If you ever find yourself in the same boat, start by checking your certificates, it’s a quick step that can save you a lot of stress! If you need further assistance or have specific questions about your ERP setup, feel free to reach out for personalized guidance. 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.

Setting up a legal entity in Dynamics 365 Finance and Operations (D365 F&O) is a crucial step for organizations managing multiple business units, subsidiaries, or operations across different regions. A legal entity represents an organization that has a registered business name, legal obligations, and transactions within the system. This guide provides a step-by-step process to create a legal entity in D365 F&O, ensuring that your business is structured properly for financial reporting, transactions, and compliance. Steps to Create a Legal Entity 3. In the Navigation Pane, go to Modules > Organization administration > Organizations > Legal entities. 4. Click New to create a new legal entity. 5. Enter Basic Legal Entity Information 6. General Fast-tab 7.  Configure Address and Contact Details Under the Contact Information tab, click Add and enter: 9. In the Statutory Reporting section, enter the legal entity’s registration numbers required for compliance. 10. In the Registration Numbers section, fill in any necessary legal details based on the country’s requirements. 11. In the Bank Account Information section, add bank accounts and routing numbers. It’s best to manage these in the Cash and Bank Management module. 12. In the Foreign Trade and Logistics section, enter the shipping details for the company. 13. In the Number Sequences section, 14. In the Dashboard Image section, you can upload or change the company’s logo or dashboard image. 15. In the Tax Registration section, enter tax registration numbers required for reporting. 16. In the Tax 1099 section, enter 1099 details (only needed for US-based companies). 17. Finally, click Save to apply the changes. To conclude, creating a legal entity in Dynamics 365 Finance and Operations is a foundational step for ensuring seamless business operations, compliance, and financial tracking. By following these structured steps, businesses can effectively manage multiple legal entities within the system. If you’re new to D365 F&O or need to discuss business needs, you can reach out to us at transform@cloudfonts.com.