HECO-Pacific Manufacturing has partnered with CloudFronts to implement Dynamics 365 Business Central. With this collaboration, HECO-Pacific Manufacturing continues its goal to use innovative technology to improve productivity and streamline business procedures.  HECO Pacific has been in business since 1961 providing all types of material handling equipment. They have built some of the most complicated cranes in the industry for some of the toughest customers. This experience has also allowed them to provide a wide range of standard cranes for light duty applications. Learn more about them at http://www.hecopacific.com/  HECO Pacific is looking to migrate from QuickBooks to Dynamics 365 Business Central to improve existing processes and bring efficiency to the organization. Some of the key objectives of this project are to automate reconciliation, manage the entire life cycle of the procure to pay and order to cash cycles in the platform, improve reporting for actions (like PO with due dates), approval processes and finally leverage this new platform for further automation in the future like time entry using project line barcoding.  On this occasion, Jimil Bhatt, Dynamics 365 ERP Team Lead at CloudFronts, said, “We are excited to partner with HECO-Pacific Manufacturing on their journey towards digital transformation. Dynamics 365 Business Central is an ideal solution for Heco Pacific, and we look forward to ensuring they achieve their goals efficiently.”  About CloudFronts   CloudFronts is a Dynamics 365 focused Microsoft Solutions Partner helping Teams & Organizations worldwide solve their Complex Business Challenges with Microsoft Cloud. Our head office and robust delivery centre are based out of Mumbai, India, along with branch offices in Singapore & the U.S.  Since its inception in 2012, CloudFronts has successfully served over 500+ small and medium-sized clients all over the world, such as North America, Europe, Australia, MENA, Maldives & India, with diverse experiences in sectors ranging from Professional Services, Financial Services, Manufacturing, Retail, Logistics/SCM, and Non-profits.   Please feel free to connect with us at transform@cloudfronts.com 

US-based leading global provider of technical talent solutions organization has partnered up with CloudFronts to conduct the Business Requirement Study (BRS) D365 Finance & Operations solution with the goal of improving financial operations for a European-based solution provider company.  The company is focused on providing solutions that deliver services in three key areas: sourcing, skilling, and scaling tech talent; investing in places for people to live, work, unwind and thrive, and supporting people through access to finance. Learn more   The client has already implemented D365 Finance & SCM for a few legal entities and plans to do so for the rest of the other group companies. CloudFronts will focus on conducting a Business Requirement Study for them to document the current process and customisation and to provide recommendations for improvements, concerns, and deviations from best practices.  On this occasion, Eusebius Rodrigues, Dynamics 365 Project Manager at CloudFronts, said, “We are excited about the opportunities this partnership presents. The deployment of BRS D365 Finance & Operations is a step towards streamlining financial procedures, and it also guarantees an edge over their competitors.”    About CloudFronts   CloudFronts is a Dynamics 365 focused Microsoft Solutions Partner helping Teams & Organizations worldwide solve their Complex Business Challenges with Microsoft Cloud. Our head office and robust delivery centre are based out of Mumbai, India, along with branch offices in Singapore & the U.S.  Since its inception in 2012, CloudFronts has successfully served over 500+ small and medium-sized clients all over the world, such as North America, Europe, Australia, MENA, Maldives & India, with diverse experiences in sectors ranging from Professional Services, Financial Services, Manufacturing, Retail, Logistics/SCM, and Non-profits.   Please feel free to connect with us at transform@cloudfronts.com  

In every organization, all kinds of expenses and revenues are tracked under dimensions like cost centers, departments, employees, etc. It is often a business requirement to split expenses or incomes in fixed proportions between two or more dimensions for accurate reporting.  On the other hand, it may be required to assign a dimension only on one GL account, restricting it from others. D365 Finance offers a smooth, flexible and a very easy process to fulfill both kinds of requirements to achieve accurate reporting of the organization’s P&L from a dimension standpoint. The blog assumes the reader is already aware about setting up financial dimensions and using them for regular transactions so the point of focus will be on the advanced features only. The procedures for both requirements are as follows: – Let’s assume that an organization tracks all kinds of office expenses in two dimensions – department and cost center. The organization wants to split the cost in a 70:30 proportion between both. In order to do that, we will use Ledger Allocation Journals. Path – General Ledger -> Allocations -> Ledger Allocation Rules The source defines the main account that will be used to split the amount. The Destination defines the dimensions and the proportion in which the amount will be split between them. In the General tab, we define the validity date for which the rule will be active. The allocation method defines the various methods in which the GL amount can be distributed. Most often, the splitting is in fixed percentages. Turn the Active checkbox to activate the rule. In the source, define the main account. In Destination, define the percentages of distribution. From the above image, we are using a 70:30 distribution ratio between Cost Center and Department.  Here, we have defined a default dimension so that the system will know how to distribute the amount between the cost center and the department only. It will ignore any other dimension. If the default field is left blank, then the user will have to manually select the dimensions at the time of the transaction. In the first distribution, a fixed percentage of 30% is applied to the Cost Center. Create a new distribution again and allocate the remaining 70% to a department dimension. In this example, we are using only 2 dimensions, but the user may define as many distributions between multiple dimensions as required as long as the percentages add up to 100%. Save the rule and close it. Now, create any regular transaction with the GL account, like a general journal. Select the dimensions for the cost center and the department as shown above and post the document. Once posted, go to General ledger -> Ledger Allocations -> Process Allocation Request. Select the allocation rule. In the field Proposal Options, there are two options: – The first option will directly post the entry and allocate it to the dimensions. The second option will keep the entry unposted so that the user may verify the dimensions or make changes to them manually if required. It is always preferable to select the second option. Upon clicking Okay, the system will create an allocation journal as shown below: – Upon clicking open the allocation journal, the accounting impact is shown as below: – The accounting impact can be summarized below as follows: – GL Account/Dimension Description Dr Cr 5103-007 Office Expense – Cost Center 700   5103-257 Office Expense – Department 300   5103 Office Expenses   1000 From the above ledger impact, the GL balance stays the same, but the amount gets distributed between the 2 dimensions in the exact proportion. II. Using advanced rules to assign an additional dimension to a particular GL account only. To understand this requirement, let’s take the example of an organization that has a mandatory Department dimension assigned on all expense accounts. But there may be an exceptional case where one expense GL account requires one more dimension apart from Department.   In this case, if we add a dimension in the account structure, then that dimension will be needlessly assigned to all GL accounts. We must ensure that it should be applicable to the one account only. For this, we use the concept of Advanced Rules. With the help of Advanced Rules, we can configure the Account Structures to accommodate any additional dimension for one particular GL account only. The steps to configure it are as follows: – Go to: General ledger -> Chart of Accounts -> Structures -> Advanced Rule Structures The screen displays all the Advanced Rule Structures present. Create a new one. Select the dimension that is required. In this example, we have selected the dimension of ‘Worker’ and kept it as mandatory. Activate the Advanced Rule Structure and close it. Open Account Structures. From the above image, all the GL accounts here will have a mandatory Department dimension. But let’s assume that one GL account – 4101 will require the dimension for Worker along with Department. For that, open Advanced Rules on top. Create a new rule. Select the Main Account where you want to apply the dimension as shown above. Then in the below section, add the Advanced Rule Structure that was created earlier. The rule works like this: – If Main Account = 4101, then apply Advanced Rule Structure where dimension = Employee. Therefore, in any transaction with the account 4101, it will assign the Worker dimension on it. Let’s take an example where a GL account other than 4101 is used here. In this transaction, for the account 4102, the system is prompting us to select the Department dimension only, as required. Now let’s select the account 4101. As observed from the above image, the system is now prompting us to select the Worker dimension also. Thus, this ensures that only some GL accounts may be configured to enter an additional dimension. We can also configure the rules such that there are combinations of Main Accounts and Dimensions to add any additional dimension. … Continue reading Distributing GL amounts between financial dimensions and using advanced rules to link a dimension to only one particular account →

While electronic methods of payment are becoming increasingly popular everywhere for quick payments, check payments are still popular across the world, especially post dated checks, which can be cashed out only after a specified date, giving them an edge over electronic payment methods. D365 Finance has a very simple process to create post dated checks and account their entries.  Since post dated checks are cleared after a certain date, known as the maturity date, the amount is not directly accounted in the bank account, but to a bridging account instead. A bridging account serves as a ‘bridge’, for the transaction amount between the bank account and the vendor/customer account till the maturity date of the PDC. When a payment entry with a PDC is made, the system will store the amount temporarily in the bridging account till the maturity date. On the maturity date, the system will transfer the amount from the bridging account in the bank account. The accounting process of the PDC is summarized below: – For Vendor:- PDC (Before Maturity) Dr Cr Vendor XX   Bridging Account   XX PDC (After maturity) Dr Cr Bridging Account XX   Bank   XX For Customer: PDC (Before Maturity) Dr Cr Customer   XX Bridging Account XX   PDC (After maturity) Dr Cr Bridging Account   XX Bank XX   The steps to set up and use PDC are as follows: – 7. Select the Account type as Bank. 8. Enable the parameters for Bridging posting and Post Dated check clearing posting. 9. The bridge account gets selected automatically by default based on the one defined in the Cash & Bank management parameters defined earlier. 10. Do the exactly same setup in AR module -> Methods of payment as well. This concludes the setup part. Now we can proceed with the transactions. Process: – Go to Postdated Checks tab and enter the maturity date for the PDC. Until the maturity date is reached, we cannot settle the PDC. So either we can wait till that date or for the sake of testing purposes, we can set the system clock to a future date. This concludes the configuration and process for PDC in D365 Finance.

Personalization stands as a robust feature within Microsoft Dynamics 365 Finance and Operations, significantly enhancing consultants’ and users’ experiences while interacting with the platform. Among these personalization options, the workspace stands out as a feature I routinely recommend to end-users. Its advantages span from streamlining daily business activities, time-saving capabilities, and improved visibility into work items that require attention, to the crucial benefit of reducing clicks and navigation across multiple screens. In this blog, I aim to demonstrate the process of creating a new workspace and sharing it with the necessary users. Creating a Workspace To initiate the personalization of your Dynamics 365 experience, follow these steps to craft a new workspace tailored to your specific requirements: Right-click on the right side blank screen and select “Personalize TitlepageContainer.” Your newly created workspace will now appear on the dashboard. After completing the initial steps, it’s time to fine-tune the configuration to suit your operational needs: Navigate to the required form or list page that you wish to include in the workspace. Select the presentation type: Tile, List, or Link. Additionally, you can create a saved view on the required form by applying filters and then add that saved view to the workspace. For instance, from the “All Sales Order” page, applying a filter for invoiced orders and saving that view to be added to the workspace. For this blog’s demonstration, I’ll illustrate adding the “Sales Order Invoice” to the new workspace. Navigate to the “Open Invoice” page. Click on the “Options” tab within the action tab. Select “Add to Workspace.” Choose the workspace created in the first part of the blog. This showcases the output when you click on the Custom workspace in Dashboard Configure Workspace Post workspace creation and configuration, the subsequent crucial step is sharing it with the relevant user groups: Identify User Groups: Determine the teams or individuals who would benefit from accessing this customized workspace. In conclusion, creating and sharing personalized workspaces in Microsoft Dynamics 365 Finance and Operations empowers users with tailored interfaces, offering enhanced efficiency, streamlined workflows, and a more intuitive user experience. I hope these steps will guide you in optimizing your Dynamics 365 experience, boosting productivity, and attaining better outcomes for your business operations.

In any ERP, any accounting user might want to set up periodic journals on a monthly/quarterly/year basis for recording the costs of any services, like AMC charges, rents, subscription fees, etc. It can get tedious to manually create such entries every single time indefinitely. This can lead to errors and unnecessary time consumption if the entries are very long and made to multiple business partners. Dynamic 365 Finance offers an easy way out through the use of periodic journals. Periodic journals help the user create entries periodically in the system. With periodic journals, users can: The process of configuring and using periodic entries is very simple. Setup 1. First, configure a journal name with the Journal type as ‘Periodic’ as shown below: 2. Then go to General Journal -> Journal Entries -> Periodic Journals Here, we define the template for the periodic journal entry to be created in future. Create a new entry. 3. Select the date on which you want the periodic journal entry to be created. 4. Select the GL accounts and their amounts. You can create a single line journal entry with an offset account or you can create a multi-line entry with as many GL accounts as required. 5. Select the Unit. Unit stands for the period of the journal entry – days, months or years. 6. Enter the number of units. This is the frequency of recurrence of the journal entry. For e.g., if you select Unit as months and enter the number of units as 3, then the periodic journal entry will be set to repeat every 3 months from the beginning date. Working 1. Open a General Journal entry. 2. Create a new entry. 3. On the top, click on Period Journal. 4. There are 2 options – Retrieve Journal and Save Journal. Retrieve journal is used for retrieving a periodic journal that we have just setup. Save journal is used if you want to save any existing journal entry as a template for a future periodic journal entry. 5. We use Retrieve Journal to retrieve the template we have created above. 6. In the ‘To Date’, enter the date of recurrence, i.e., the date for which the entry repeats for the period. In the Periodic Journal number, select the Periodic Journal which was created earlier. In the last field, there are 2 options – Copy or Move. Copy will fetch the periodic journal data into the journal entry and update it for use in the next period. Move will also fetch the journal data but will block the periodic journal from being used in future. Use the move option if you know that the periodic journal is not going to be used anymore. 7. The system will load the data as shown below:- 8. As you may notice, the date field is as per the date selected in the Retrieve Periodic Journal, while all the other details like the GL account and amounts are fetched exactly as per the template. 9. Once you post this journal entry, the journal date in the periodic journal template will be updated to the next period, in this case, to 1st of December. 10. In order to check if the date has been updated or not, simply go to the Periodic Journal once more and check the date. As you may have noticed, the date got updated to the next period of recurrence. So when you retrieve this journal for the next time, it will fetch the journal based on this date. This can go on as many times until you select the option to Move instead of Copy. After that, the periodic journal will stop updating and won’t be able to be used again. Through this process, the user can fetch the journal entries periodically instead of creating them manually every time. While the fetching of the data is automatic, the user will have to make sure to run the periodic journals as per their dates. There is an option to automatically generate the entries in the system through Power Automate but that is a separate Add-on to be setup and configured. The standard process is just as good enough to reduce the hassle for making entries manually every period.

Introduction In any accounting software, it is always important to keep track of all real-time bank transactions and record them in the ERP. Since bank transactions are booked manually in the ERP, it is necessary to ensure that the bank statements and ERP records are matched on any given date. This is where bank reconciliation comes into play. Bank Reconciliation Bank reconciliation is an activity done by any finance user for the purpose of reconciling book transactions w.r.t bank statements and ensuring that both are as closely matched as possible. D365 Finance offers two ways of performing bank reconciliations. One is by entering the bank statement amount manually and reconciling the ERP statements for each record against the amount. The other is by importing the bank statement into the system and letting the system match the records of the statement against the ERP based on a certain criteria. The blog is made with the assumption that the reader is already aware of the manual bank reconciliation process in D365 Finance. The second method is undoubtedly easier, flexible, and time-saving for any user. While there are several widely used bank statement format types which can be processed in D365 Finance like MT490, CAMT.054, BAI2 and others, this blog post will be focused on the MT490 format only. Moreover, D365 Finance also enables the user to reconcile not only payments/receipts, but also transactions from the bank’s side, like bank charges, interest fees or reversals and post those entries into the ledger automatically. There is also a flexibility to create a set of rules that can allow for minor amount/date variations of the system w.r.t the bank statement. Steps to perform the bank reconciliation in an automated manner Setup We have to enable the system to accept bank statements in MT940 statement first. In order to do that, navigate to, Organization Administration > Workspaces > Electronic Reporting Click on Repositories. Select Global and click Open on top. Filter the Configuration name by searching for ‘MT940’. The above list of formats will be displayed. Select them all and click on Import. The system will import the bank formats in D365 Finance. Next, we have to map the format in a setup. Go to Cash & Bank Management > Advanced Bank Reconciliation Setup > Bank Statement Format Create a new record and specify the Statement Code, Name and map the Import format which was imported in the previous step. Now this is done, the only part left is to configure the Bank master to enable advanced bank reconciliations for any transactions. Open the Bank Account Master. Turn on ‘Advanced Bank Reconciliation’ and select MT940 in the field Statement format. Once this is done, we are ready to use Advanced Bank Reconciliation. Working To start with advanced reconciliation, we will take a scenario of a bank where the following transactions have occurred: The above 3 transactions are created in the system and will be reconciled with the use of a bank statement. The bank statement will be a notepad file that will be imported in the system. While the bank statement is always provided by the bank, it is important to know the bank statement format so we can setup and test any scenario with dummy records. The above screenshot specifies the structure in which the bank statement is accepted by the system. We will be using this format to import bank records and reconcile them with the system records. From the above image, 3 types of bank transactions have been made in the system with the respective amounts and dates. Now the bank statement file for the above transactions is as follows: As you may observe, all three transactions are recorded one below the other, and the opening and closing figures are manually entered here. In real-time scenarios, this is provided by the bank and the user does not open or make any changes to the file. In order to import the file, go to Bank Account > Bank Statements > Import Statement In the parameters, select the bank account, browse the text file from your PC and click on upload, then click on OK. The bank statement is imported with the above transactions. Select the transactions and click on Validate on top. Now we proceed with the reconciliation. Go back and click on Bank Reconciliation in the Bank Account screen. Create a new reconciliation. Then click on Worksheet at the top. The reconciliation screen is opened. Here, the user is presented with the option to manually match any record to reconcile or let the system match the records based on a certain matching rule. While any variation of rules can be defined, the most commonly used rules are: Based on the above, we will define a matching rule based on date and amount difference and re-import the statement. To define a matching rule, navigate to Cash & Bank Management > Advanced Bank Reconciliation Setup > Reconciliation Matching Rules Based on the above image, the criteria for the match amount and match date is defined where a variation of 2 INR and 3 days will be allowed in reconciliation. Once it is saved, click on Activate. Next, navigate to Cash & Bank Management > Advanced Bank Reconciliation Setup > Reconciliation Matching Rule Sets Create a new rule set and link the matching rule that was created earlier. As you may observe, we can link multiple rules here. This is useful when it is necessary to reconcile statements with a variety of rules instead of a single rule. Next, go to Bank Account > Scroll down to Reconcilation section and link the matching rule set in the Default Matching Rule Set Now we are ready to run the reconciliation once more with some variations of amounts and days in the bank statement. Import the statement once more and validate it. The bank statement is imported as follows: Now create a reconciliation worksheet. On the top, select the option ‘Run Matching Rules’. Once the matching rules … Continue reading Advanced & Auto Bank Reconciliation in Dynamics 365 Finance →

Introduction In my previous blog, I explained the required Quality Management setups. In this blog, I will execute the Quality Management process with two scenarios; in the first scenario the Products passes all the Quality Control process, and in the second scenario will be where the Products fail a Quality Control Process. To address the Second scenario, two products will be selected, specifically Brake Pads from two distinct manufacturers. All the setups that I showed in my previous blog will remain the same. To execute the second scenario, I will take two products from two different manufacturers. And an additional Item Sampling has been created for the second product. Execution: (Scenario 1) As all the necessary setups are completed let’s test this by creating a Purchase Order for quantity 10. As per the Quality Association setup the Quality Order has been created after product receipt generation. So now until the Product passes the Quality Test, the Purchase order cannot be Invoiced since the Event Block is set to Invoice. Here the Quality Order is generated for 5 qty since the Item Sampling is 50% so the entire 5 qty needs to pass the Quality Test as the acceptable level is 100. Select the Test and then click on Results to fill in the Test Results for the Product: Brake Pads. In the Results Page, in the Results Quantity enter the Quantity which passed the quality test. Then select the Outcome and you can see a right tick in the Test Result column which means that the product has passed that particular Quality Test. Repeat this process for all the Tests. The Next step is to validate the Quality Order. For that click on Validate from the top of the screen. Here I have disabled the Quarantine upon Validation failure because my product has passed all the Quality Tests so there is no need to enable that parameter unless it fails the Quality Tests. Now since my Product has passed the quality order, I will now be able to generate the Purchase Order Invoice.   Notice how the Quality Order status changes from “Open Quality Order” to “Closed Quality Order”. Scenario 2 As I explained at the beginning of my blog, in this scenario, I will take two products from two different manufacturers (P-000017 and P-000018) and one of them fails the Quality Tests. The products that failed to pass the Quality Order will be transferred to the Quarantine Warehouse for further processing. The Quality Association has been set up for both the Products. For Product P-000017 the Item Sampling is set to 50% and the AQL is set to 100 and for Product P-000018 the Item Sampling is set to 100% with Full Blocking Parameter enabled. Quality Order Processing As per the Tests defined for both Items, the product P-000017 has failed the test as the acceptable quantity defined is 100 for all the tests. And for the other Product that is P-000018 has passed all the Quality Order tests. Refer below screenshot to view the failed Tests of product P-000017. In the above screenshot, you can see that only 1 quantity of product P-000017 has passed the test and the other 2 quantity has failed to pass that particular quality test which ultimately leads to Quality Order failure. Same is the case with the other two tests as well, which clearly state that Product P-000017 has failed the Quality Order process. Now you can see that Product P-000017 has failed the Quality Order process so it is necessary to move this stock to a different location where it will be further inspected. This process of segregating stock is referred to as Quarantine. Quarantine Management Quarantine management in Dynamics 365 Finance and Operations refers to the process of isolating and controlling items that are suspected of having quality issues or non-conformities. The quarantine management system helps track and manage these items, allowing for proper inspection, testing, and disposition decisions. It ensures that only items meeting quality standards are released for further use or shipment, while those in quarantine undergo necessary actions, such as testing, repair, or disposal, to address any identified issues. A new separate Warehouse should be created in the system to transfer the products that fail the Quality Order process. This warehouse is called a Quarantine Warehouse. Attach this warehouse with a warehouse that you are going to use for transactions under the Quarantine Warehouse drop-down option. Quarantine Process As the Product P-000017 has failed the test it needs to be transferred to the Quarantine Warehouse. To do that click on Validate from the top of the screen and then enable the Quarantine upon Validation Failure parameter and then click on OK. In the below screenshot, you can see that as I clicked on OK, the System automatically generated a Quarantine Order. Now if you go to that released product and click on Transactions under the Manage Inventory Fast Tab you can see that the Product P-000017 has been deducted from W1 and has been received in the Quarantine Warehouse. Depending on the product type and inspection results, an item can be repaired to make it acceptable or returned to the vendor if it is deemed unfit for use. If there is an agreement with the vendor, and permission is granted, the item can be directly scrapped from the quarantine warehouse using the Scrap functionality. If the items are to be returned back to the Vendor in such a case the inventory must be first returned to the default warehouse. A specific location can be defined in the Default Warehouse for this purpose. In this scenario, I am assuming that the product was repaired and deemed fit for use after Quarantine Inspection. Now in order to receive this inventory in the Main Warehouse(W1) we need to use the Item Arrival Journal. 1. The first step is to open that Quarantine Order. 2. Click on Report as Finished from the top of the screen. 3. Click on End from … Continue reading Quality Management Process in Dynamics 365 Supply Chain Management – Part 2 →

Introduction Hello Everyone! In this blog, I will explain the Quality Management Process in Dynamics 365 Supply Chain Management and cover all the necessary setups required for Quality Management. Imagine a supply chain where every component, every process, and every product meets or exceeds customer expectations. Where defects and delays are minimized, and customer satisfaction soars. This is the power of quality management in Dynamics 365 Finance and Operations. For this blog, I have taken the example of an Automobile company that purchases the Product Brake Pads from the Vendor. When car brake pads are received in a warehouse against a purchase order, they undergo specific quality checks, similar to other products. Setup required for Quality Management Process in Dynamics 365 SCM The first step is to enable the Quality Management parameter. The pathway for that is: Inventory Management>Set Up>Inventory and Warehouse Management Parameters. Step 1: Creation of Test Instruments: Depending on the Product Type we must create different Test Instruments to conduct quality tests on the Product. So here I need to create these instruments for my Product Brake Pads. To create Test Instruments, Go to Inventory Management>Set Up>Quality Control>Test Instruments. Now click on New from the top of the screen then enter the Name, Description, and Unit of the Instrument. Here I have created three different Test Instruments for the product Brake Pads. The Precision here is linked to the Unit which can be edited in the unit setup. Step 2: Creation of Tests: Now, the next step is to create the Tests in the system which I will use to check the Quality of the product Brake Pads. So as per my requirement Brake pads will be Tested for the following tests. Note: There are two types of tests: To create Tests in the system, go to Inventory Management>Set up>Quality Control>Tests. To create a Test click NEW from the top of the screen. Then enter the name and description of the Test. Then select the Type and Test Instrument. Follow these steps to create all the required Tests in the system. Step 3: Creation of Test Variables: The Test Variables page allows you to configure, modify, and observe the potential results for a test variable linked to a qualitative test. When selecting an outcome as a test result, you assign a Pass or Fail status to each outcome to indicate whether the test has been passed or failed. It is always better to define a minimum of two outcomes that is one with a Pass status and one with a Fail status for each variable. There are no restrictions on the maximum number of variables or outcomes that can be specified. Moreover, multiple tests can utilize the same test variables to record results. To create Test Variables, go to Inventory Management>Set Up >Quality Control>Test Variables. Step 1: Click on NEW from the Action Pane at the top of the screen, then enter the name and description of the Variable. To make it easy to understand here the Variables are created similar to the Test name. Step 2: The next step is to enter the Outcomes. For that select the Variable and then click on Outcomes from the Action Pane which is at the Top of the screen. Step 3: In the Test Variable Outcomes page click on NEW from the top of the screen. Then enter the Name and Description of the Outcome. When the outcome is selected as a test result, choose either Pass or Fail to indicate whether the test has been passed or failed. Repeat Steps 1, 2, and 3 to create multiple Test Variables and their Outcomes. Item Sampling According to the Business Requirement you must specify the sample size for testing which can be indicated as a percentage or a fixed quantity. In this scenario, the entire quantity received in the stock from the Purchase Order will be selected for testing. So in this case I will establish item sampling for the entire quantity, representing 100% of the items. Full Blocking Parameter under Item Sampling The Full Blocking parameter is enabled on the basis of business requirements. For example, if I create the item sampling as 10% and if I receive 100 qty so among them only 10% qty will be taken for testing. In such a case if I enable the full blocking parameter, even though I will be testing only 10% of 100 qty the system will automatically block the rest of the 90% of the quantity as this option is enabled. But if this parameter is disabled then only 10% of the qty will be blocked for quality inspection and the rest of the 90% qty can be used for consumption. Per Updated Quantity Parameter under Item Sampling Enabling this feature ensures that a Quality order will be generated specifically for the quantity received in a Purchase Order, whether it is a complete or partial quantity. For example, Item sampling is set to 100%, If the Purchase Order quantity is 100 and the Per Updated Quantity parameter is enabled and if I received a partial quantity that is 50, in such a case the Quality Order will be generated for 50 quantity and not for 100 quantity as the Per Updated Quantity parameter is enabled. But if this parameter is disabled and if I receive a partial quantity of 50 the Quality Order will be generated for the entire 100 quantity. Now to Create Item sampling the pathway is Inventory Management>Set up>Quality Control>Item sampling. In the Item Sampling page click NEW from the Top of the screen. Then enter the name and description of the sampling that you want to create. In the above screenshot, you can see that I have created an Item sampling of 100%. Under the name and description field, you can see the Sampling Quantity field in which I have selected the Quantity Specification as Percent. You can either select Percent or Fixed Quantity depending on the business requirement. Here I have defined the value … Continue reading Quality Management Process in Dynamics 365 Supply Chain Management (SCM) – Part 1 →

Introduction When creating a trade agreement in Dynamics 365 for Finance and Operations (D365 F&O), you may come across the “Find Next” option. This article will explain what the Find Next flag does and how it impacts the system when calculating discounts. The “Find Next” Option in Dynamics 365 F&O The Find Next option in D365FO accumulates trade agreement lines if there are multiple eligible lines. When this feature is turned on, the system will implement all discounts, without considering the current trade agreement journal lines’ status. If the Find Next feature is not available, the system will look for the trade agreement journal line with the highest level of detail. To better understand the Find Next option, let’s consider an example: Step 1: Create a trade agreement for a discount. Step 2: Add three lines to the trade agreement: Line 1: Add item “A” with a basic discount of 5%.Line 2: Include a product in the inventory that offers a quantity-based discount of 10% for orders ranging from 10 to 101 items.Line 3: Include a product in the inventory that offers a quantity-based discount of 20% for orders ranging from 101 to 501 items. Step 3: Disable the Find Next toggle. Step 4: Create a new purchase order and add an item. A basic discount of 5% will be applied to this item. Step 5: Change the item quantity to 11 to apply the next line discount in the trade agreement. The Find Next flag being disabled means that the discount percentage will remain unchanged. When the Find Next parameter is turned off, the system will only look for the first best-fit price, which in this case is 5%. Step 6: Enable the Find Next flag.Step 7: Once more, access the purchase order, delete the current item, and then include it once more. Step 8: Enter the quantity of the product as 12. Now, the discount of the item will change from 5% to 15% because it falls under the range discount of 1-100 for 10%, and for all categories, there is a 5% discount, which adds up to a total of 15%. Conclusion In summary, the Find Next option in a trade agreement cumulates all eligible trade agreement lines to apply all discounts.  It is crucial to understand this option to set up trade agreements correctly and avoid confusion in discount calculations.