Using Microsoft Dynamics 365 for Finance and Operations: Learn and understand the Dynamics 365 Supply Chain Management and Finance apps

503 Pages·2023·27.132 MB·English

by  Andreas Luszczak

Andreas Luszczak
Using Microsoft Dynamics 365
for Finance and Operations
Learn and understand the Dynamics 365
Supply Chain Management and Finance
apps
2nd Edition
Using Microsoft Dynamics 365 for Finance and
Operations
Andreas Luszczak
Using Microsoft Dynamics 365
for Finance and Operations
Learn and understand the Dynamics 365
Supply Chain Management and Finance
apps
2nd edition
Andreas Luszczak
Wien, Austria
ISBN 978-3-658-40452-9 ISBN 978-3-658-40453-6 (eBook)
https://doi.org/10.1007/978-3-658-40453-6
© Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2019 , 2023
T his work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the
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Preface
Reading this Book
The primary purpose of this book is to provide you with a good knowledge of the
concept and functionality of Microsoft Dynamics 365 for Finance and Operations.
As a result, you should be able you to execute business processes in the application
on your own. It is primarily designed for users, students, and consultants who are
interested in learning how to use the application.
Going beyond the operations on the user interface, you learn how the different
parts of the application work together. For this reason, also system administrators,
developers, IT executives, or consultants who do not know all the details of the
application take advantage of getting to know the end-to-end concept.
The best way to learn an application is to use it. For that reason, this book includes
exercises that build up on each other in a comprehensive case study. If you need
support with the exercises, download the illustrated sample solutions.
Microsoft Dynamics 365 for Finance and Operations is a very comprehensive
business solution, which makes it impossible to explain all parts of the application
in a single book. In order to provide a profound understanding of the core
application, this book addresses the essential functionality in the supply chain
management (including trade and logistics, and production control) and the
finance management. It covers the application but does not cover tasks in system
administration and development.
Microsoft Dynamics 365 Product Version
This book is based on the product version 10.0.29 of Microsoft Dynamics 365 for
Finance and Operations (released in October 2022) with all features enabled. It is
an update of the initial book edition on Dynamics 365 for Finance and Operations.
In order to avoid repeating the long name, the short name “Dynamics 365” is used
in most parts of this book.
New in This Edition
Apart from updates in all chapters of the book, major additional topics in this
edition include the Saved views feature and other changes of the user interface, the
Credit management module, the Engineering change management module, the
Planning optimization, the Rebate management module, new features like the
advanced notes, and new options in the Warehouse management.
VI Preface
Applicable Settings
In Dynamics 365, you can individually select the language of your user interface.
Descriptions and illustrations in this book refer to the language “EN-US” (United
States English). Whereas it is obvious that the Dynamics 365 client shows different
labels when you select languages like Spanish or Arabic, there are also differences
when you select British English. For example, the label for the field “Sales tax” is
“VAT” in British English. Other differences between your application and the
descriptions in the book are possibly caused by permission settings, by local
features, by settings in the feature management and in the license configuration, by
later updates, or by modifications and add-ons in your application.
In order to benefit from the explanations, it is recommended to practice with
Dynamics 365. A separate test application, which you can use to do the exercises, is
required to avoid an impact on actual company data.
The illustrations and the exercises in this book refer to the Microsoft standard
demo environment with the company “Contoso Entertainment System USA”
(“USMF”). For the screenshots, the color theme “High contrast” and a small
element size has been selected in the visual preferences of the user options. In
order to grant a flexible choice of your training environment, the tasks in the
exercises are specified in a way that you can use any Dynamics 365 test
environment of your choice.
Available Support
You can download the exercise guide for the exercises in this book and other
applicable resources from the online service of the publisher, or from my website:
http://D365book.addyn.com
If you have comments or questions regarding the book or the exercises, please
contact me via this website or e-mail to [e-mail].
Acknowledgments
Many people have been involved in finalizing this book, directly and indirectly,
from the first to the current edition. Thank you to all of them. In particular, I would
like to mention Matthias Gimbel (STZ IT Business Consulting), Ingo Maresch
(Cegeka), and Finn Nielsen-Friis (AXcademy).
Thank you also to the editor, Petra Steinmüller, and to my family – Sonja, Felix,
and Caroline.

Andreas Luszczak
Table of Contents

1 What is Microsoft Dynamics 365? ........................................................................ 1

1.1 Dynamics 365, Dynamics AX and Axapta ................................................. 1

1.2 Dynamics 365 for Finance and Operations at a Glance ............................. 2

1.2.1 Functional Capabilities ..................................................................... 2

1.2.2 Implementation ................................................................................. 3

1.2.3 Data Structure ................................................................................... 4

1.2.4 Voucher Principle ............................................................................. 4

2 Getting Started: Navigation and General Options .............................................. 5

2.1 User Interface and Common Tasks ............................................................ 5

2.1.1 Login and Authentication ................................................................ 5

2.1.2 Navigation ......................................................................................... 6

2.1.3 Elements of the User Interface ......................................................... 9

2.1.4 Working with Records.................................................................... 17

2.1.5 Filtering and Sorting ....................................................................... 23

2.1.6 Help System .................................................................................... 28

2.1.7 Case Study Exercises ...................................................................... 29

2.2 Printing and Reporting ............................................................................. 30

2.2.1 Printing Documents ........................................................................ 31

2.2.2 Microsoft Office Integration ........................................................... 34

2.2.3 Case Study Exercise ........................................................................ 36

2.3 Advanced Options..................................................................................... 36

2.3.1 User Options ................................................................................... 36

2.3.2 Personalization and Saved Views .................................................. 38

2.3.3 Record Information and Templates ............................................... 42

2.3.4 Case Study Exercises ...................................................................... 45

2.4 Global Address Book................................................................................. 45

2.4.1 Parties and Addresses .................................................................... 45

2.4.2 Address Books ................................................................................ 47

2.4.3 Case Study Exercise ........................................................................ 48

3 Purchase Management ........................................................................................ 49

3.1 Business Processes in Purchasing ............................................................. 49

3.1.1 Basic Approach ............................................................................... 49
VIII Table of Contents

3.1.2 At a Glance: Purchase Order Processing ....................................... 52

3.2 Vendor Management ................................................................................. 54

3.2.1 Vendor Records............................................................................... 54

3.2.2 Payment Terms and Cash Discounts ............................................. 60

3.2.3 Ledger Integration .......................................................................... 63

3.2.4 Case Study Exercises ...................................................................... 64

3.3 Product Management in Purchasing ........................................................ 65

3.3.1 Product Categories and Procurement Categories ......................... 65

3.3.2 Basic Product Data .......................................................................... 67

3.3.3 Purchase Price Setup ...................................................................... 72

3.3.4 Case Study Exercises ...................................................................... 73

3.4 Purchase Order Management ................................................................... 74

3.4.1 Basics of Purchase Order Processing ............................................. 74

3.4.2 Purchase Order Registration .......................................................... 76

3.4.3 Change Management and Purchase Order Approval .................. 84

3.4.4 Canceling and Deleting Purchase Orders ..................................... 85

3.4.5 Purchase Inquiries and Order Confirmations ............................... 86

3.4.6 Case Study Exercises ...................................................................... 90

3.5 Item Receipt ............................................................................................... 91

3.5.1 Basics of Item Receipts.................................................................... 91

3.5.2 Receipts Lists ................................................................................... 92

3.5.3 Inventory Registration .................................................................... 92

3.5.4 Product Receipts ............................................................................. 95

3.5.5 Partial Delivery, Underdelivery, and Overdelivery ..................... 97

3.5.6 Order Status and Inquiries ........................................................... 100

3.5.7 Case Study Exercises .................................................................... 103

3.6 Vendor Invoice......................................................................................... 103

3.6.1 Processing Vendor Invoices ......................................................... 104

3.6.2 Order Status and Inquiries ........................................................... 109

3.6.3 Case Study Exercises .................................................................... 111

3.7 Vendor Credit Note and Item Return .................................................... 112

3.7.1 Crediting and Returning .............................................................. 112

3.7.2 Credit Notes without Item Return ............................................... 114

3.7.3 Case Study Exercise ...................................................................... 115

3.8 Purchase Agreement, Requisition, and Quotation Request .................. 115

3.8.1 Purchase Agreements ................................................................... 116

3.8.2 Purchase Requisitions ................................................................... 118

3.8.3 Requests for Quotation ................................................................. 120

3.8.4 Case Study Exercise ...................................................................... 122
Table of Contents IX

4 Sales and Distribution ....................................................................................... 123

4.1 Business Processes in Sales and Distribution ........................................ 123

4.1.1 Basic Approach ............................................................................. 123

4.1.2 At a Glance: Sales Order Processing ............................................ 126

4.2 Customer Management ........................................................................... 128

4.2.1 Core Data in the Customer Records ............................................ 128

4.2.2 Case Study Exercise ...................................................................... 133

4.3 Product Management in Sales ................................................................ 133

4.3.1 Product Data and Sales Categories .............................................. 133

4.3.2 Sales Price and Discount Setup .................................................... 135

4.3.3 Case Study Exercises .................................................................... 142

4.4 Sales Order Management ........................................................................ 143

4.4.1 Basics of Sales Order Processing .................................................. 143

4.4.2 Sales Quotations............................................................................ 144

4.4.3 Sales Order Registration ............................................................... 146

4.4.4 Order Prices and Discounts ......................................................... 153

4.4.5 Surcharge Management................................................................ 155

4.4.6 Sales Order Confirmations ........................................................... 157

4.4.7 Case Study Exercises .................................................................... 158

4.5 Order Picking and Shipment .................................................................. 158

4.5.1 Basics of Picking and Shipping .................................................... 158

4.5.2 Pick Form and Picking Lists ......................................................... 160

4.5.3 Picking Workbench....................................................................... 163

4.5.4 Packing Slips ................................................................................. 165

4.5.5 Case Study Exercises .................................................................... 167

4.6 Sales Invoice ............................................................................................. 168

4.6.1 Sales Order Invoices ..................................................................... 168

4.6.2 Collective Invoices ........................................................................ 170

4.6.3 Free Text Invoices ......................................................................... 172

4.6.4 Case Study Exercises .................................................................... 173

4.7 Sales Credit Note and Item Return......................................................... 174

4.7.1 Return Order Management .......................................................... 175

4.7.2 Simple Credit Notes...................................................................... 177

4.7.3 Case Study Exercise ...................................................................... 178

4.8 Direct Delivery......................................................................................... 179

4.8.1 Processing Direct Deliveries......................................................... 179

4.8.2 Case Study Exercise ...................................................................... 181

4.9 Rebate Management and Trade Allowances ......................................... 182
X Table of Contents

4.9.1 Trade Allowances ......................................................................... 182

4.9.2 Broker Contracts ........................................................................... 188

4.9.3 Royalty Agreements ..................................................................... 189

4.9.4 Vendor Rebates ............................................................................. 189

4.9.5 Rebate Management Deals ........................................................... 190

5 Production Control ............................................................................................ 193

5.1 Business Processes in Manufacturing .................................................... 193

5.1.1 Basic Approach ............................................................................. 193

5.1.2 At a Glance: Production Order Processing ................................. 196

5.2 Product Management and Bill of Materials ........................................... 198

5.2.1 Product Data in Manufacturing ................................................... 198

5.2.2 Bills of Materials (BOM) ............................................................... 200

5.2.3 Case Study Exercises .................................................................... 207

5.3 Resource and Route Management .......................................................... 208

5.3.1 Working Time Calendars and Templates.................................... 208

5.3.2 Resource Groups and Resource Management ............................ 209

5.3.3 Routes and Operations ................................................................. 215

5.3.4 Case Study Exercises .................................................................... 223

5.4 Production Order Management.............................................................. 225

5.4.1 Basics of Production Order Processing........................................ 225

5.4.2 Production Order Registration..................................................... 226

5.4.3 Processing Production Orders ..................................................... 229

5.4.4 Case Study Exercises .................................................................... 235

5.5 Consumption of Material and Resource Capacity................................. 236

5.5.1 Journal Setup and Ledger Integration ......................................... 236

5.5.2 Picking Lists .................................................................................. 237

5.5.3 Resource Usage ............................................................................. 239

5.5.4 Case Study Exercises .................................................................... 240

5.6 Reporting as Finished and Ending Production ..................................... 240

5.6.1 Reporting as Finished ................................................................... 241

5.6.2 Ending and Costing ...................................................................... 243

5.6.3 Case Study Exercise ...................................................................... 245

5.7 Subcontracting ......................................................................................... 245

5.7.1 External Resources ........................................................................ 245

5.7.2 Purchased Services ....................................................................... 246

5.7.3 Case Study Exercise ...................................................................... 249

5.8 Formula and Batch Production Order .................................................... 250

5.8.1 Formula Management .................................................................. 250