MB-230 Microsoft Dynamics 365 – Microsoft Dynamics 365 For Financials Module Overview

1. Dynamics 365 For Financials Important Terminologies

Alright, so welcome to this new module. This is all about Max Dynamics systrite for financials. And in this video you will learn about the important terminologies of dynamic 65 for financials. Now, if you are aware of Dynamics NAV, then it is very easy for you because these are the same functionalities that you have in Dynamics 365 for financials. So let me just take you through the application terminologies. So the first is chart of accounts. Chart of Accounts allow you to define journal ledger accounts where the financial transactions and journal entries are posted. It’s a heart of every business that if you don’t have a chart of accounts, you cannot post any financial transactions, you cannot do any sales invoices, you cannot do any purchase invoices, you cannot do any inventory cost transfers, you cannot do any journals if you don’t have chart of accounts.

So Chart of accounts is mandatory for every business. So it allows you to define the accounts where you can post financial transactions. So there are two types of accounts available, whether it can be balance sheet or income statement and it is also categorized as assets, liabilities, equity, income, cogs, cost of goods sold and expenses, right? And you can choose either one of the option when you create a GL account or chart of account. So it can be the heading or total or begin total or end total or posting. So you can just post the transactions where the account type is posting and heading total, begin total and total is just for the grouping of the chart of accounts so that you can see that what is the complete asset looks like. So you can have the asset as the beginning total and total as the end total. And between that you can have all the posting accounts.

So you can have your cash accounts, bank accounts, fixes accounts and once you have some financial transactions in those accounts which are of posting type, you will see the total in the end total. So you will see the entire sum of all the assets in the and total. So this is used when you want to do the totaling and you want to see the entire picture, right? So this is what the chart of account says and it’s mandatory for every company. The next is General Journal. So general journal allow posting journal ledger accounts and other accounts like bank, customer, vendor fixes it or inter company. So you can post direct journal entries. So you can choose what is your debit account, what is your credit account, and you can choose the amount that you want to post, right? So you can make payments to the vendor. It means you will select account type as vendor. You will select the vendor you want to make payment and then you will select the balance account type where you will select either you want to pay it by bank or you want to pay it by cash.

And then you enter the amount and you can post it. So system will make sure that the transactions are posted in the journal ledger. Similarly, you can do the transaction between two GL accounts or Customer GL account and different options. So you can post direct journal entries through Journal journal and before you post you need to make sure that the balance should be zero. It means the debit should match the credit, right? If there is any balance, system will not allow you to post the transaction and it also allows you to preview the transaction before posting so you can see what will be the impact of the transaction after you post it. So it gives you the complete clarity of once you post a transaction, how the bookseller will look like, and once you have posted the transactions using general journal, you can see those entries under Journal Ledger Entries, right?

So journal journal allows you to post journal ledger transactions. Let’s move the next one. The next one is customers. So customers are organizations or individuals who purchase your product or services. It means you sell your product or services to these people and these are called your customers. So in CRM these are called accounts or contacts. So in Dynamics 305 for Financials or any, it is called customers. So you can choose Customer template. You can define customer templates where you can choose all the posting groups, all the basic requirements that you don’t have to re enter again and again. You can create a template and once you create a customer, you can choose a template and default fields will automatically fill and it includes complete setup including the financial setup. Also the taxes can be configured and customer balances can be seen from the screen. So there you can see the complete customer details. I’m going to show you that in the real live example the next is vendors. So vendors are organizations or individuals who sell you their product and services. It means you buy from them their product and services, right?

So vendor templates can be created similar to customer. It includes a complete setup including financials taxes also can be configured there and you can see the vendor balance, that how much you owe to the vendor and how much you need to pay to the vendor, right? So this is what the vendor is. The next is items. So items are products or services that are purchased from vendors and sold to customers. So there are two types of items. When you create an item, it asks you to select whether it’s an inventory or a service. So inventory is something which you want to maintain in your warehouses and if you have other things other than inventory, that is called service. Then you define the posting groups that allow you to post transactions to chart of accounts with the combination and also it shows the real time inventory that you have in your warehouses. So you can see that item A is available in warehouse 100 quantities, in warehouse 200 quantities.

So you can see the warehouse wise real time inventory. And also inventory adjustment is possible in case if you want to add or remove the inventory from the warehouse, you can do that using the inventory adjustment. So these are the items that can be products or services that are purchased from the vendor and sold to the customer. The next one is bank account. So, bank Account contains your company’s bank account details that you can use to make payment or receive payments from your customers and vendors. So you can create multiple bank accounts. So as a company, if you have multiple bank accounts, then you can create those bank accounts. In Dynamics 65 for Financials, it allows online bank account linking.

So when your bank is offering any online services, then you can integrate that with your bank account in Dynamics 65 for Financials, right? So it is available in certain countries, not in all the countries. So in the bank account you can keep the check sequences and when you print the check and give it to the vendor for payment, it automatically increases the check number and use it for the next one. And also you can use it for bank reconciliation. Now, bank reconciliation is something where you match the bank statement entries that you receive from the bank with your transactions in Dynamics 365 of Financials and that is called bank reconciliation. It’s like matching the entries. So you can do bank reconsideration. When you receive the bank statement from the bank, the physical statement or the soft copy, you match those entries in dynamic Csvo Financials and post the bank reconciliation.

So these are basic terminologies you should be aware of before you can start learning about Dynamics cyber for Financials. So that’s it for this video. In the next video I’ll show you the process flows that are used in Dynamic 65 for Financials.

2. Dynamics 365 For Financials Process Flows

All right, so welcome to this training video. In this video, you will learn about the process flows in Dynamics 65 for Financials. So in the previous video, you learned about the basic terminologies. Now those terminologies will help you understand what is there in Dynamic 65. So when you see the screens, you will know that, okay, what exactly this screen does. So it’s very important for you to understand the terminologies and then understand the business process flows. So let me show you the different process flows. The first is the sales process flow. So it starts with a sales quotation. And it’s a very simple process where the customer or prospect requests information from you that I’m interested in your product or services. Can you give me the quotation, how much it will cost, what are the payment terms and everything. And once you send them the quotation, and if they are okay with the quotation, they give you the purchase order, which becomes your sales order.

So you can convert a sales quotation to sales order within Dynamics Five for Financials. It means you don’t have to manually enter the sales order. And after that, you deliver the product or services and send the invoice. So first you need to ship the product or services. And this is called shipping sales shipment. And then you raise the invoice for billing the customer.

So once you send invoice to the customer, customer makes payment against that invoice, and that payment you receive in your accounts, right? So you can receive it in your cash or you can receive it in your bank accounts in case if the customer is not happy with the product, they may send your product back saying that it’s not as expected. They may give you the credit note. So there you need to create a sales credit memo in Dynamics 312 for financials and post it. And once the credit memo is created and posted, it means the inventory is reversed as well as the financial is reversed what you have sold them. And then you need to refund the payment to the customer that they have paid earlier. Now, these are optional things. The ones you see in red are optional, but these are the scenarios that may happen, right? So it starts the sales code, then it converted to order. Then the products are shipped and the invoice is sent. Once the invoice is sent, customer makes the payment and there the process finishes. In case if customer has any problems, they give you the credit node.

Then you create sales credit memo in Dynamic 65 for Financials and post that credit memo and refund the payment, right? So this is the sales process flow in Dynamics 65. Let’s look at the purchase process flow in Dynamics 365. So the process starts with purchase invoice. So there is no quotation, no order. It starts directly with the purchase invoice. It means the invoice that vendor has sent for the payment so you create that invoice In Dynamics C Drive for Financials and you pay the supplier, right? It’s a very simple process. You pay the supplier. Now in case if there’s any issue that you think that product or services that you have received is not correct, you can return that product and services to the vendor. So you create a purchase credit memo.

Then you post the credit memo. You send the credit memo to the vendor and they give you the payment back or they give you the money which you have paid them earlier. So this is a standard process of purchase. In dynamics of financial starts with invoice. Once you post the invoice, you pay to the vendor in case if you are not satisfied with the services or product, you create a purchase credit memo and then you receive the payment against that credit memo. So that’s it for this video. In the next video I’m going to show you the actual application and how the processes are performed.

3. Dynamics 365 For Financials Application Navigation

Alright, so welcome to this training video. In the previous videos you learned about the important terminologies of Dynamic 65 for financials. And in the last video you learned about the process flows that are available in Dynamics 65. So in this video, I’m going to show you the application, how it looks like and what are the processes available. So let me take you through the application. So here we are in Dynamics 65 for financials. So when you log in, you see this message, it says is want to try with your own company data for free, 30 day trial. So in case, if you want, you can just start a 30 day trial and you can start entering your data in Dynamic 65 for financials for free for next 30 days. So you can see that application is working as per your expectations or not, right? So I’m just going to close this message. So this is a dashboard and it is called Role Center.

So we have business manager, role center. So every user will have their own role centers. And based on that, they can see the information. So you can see all the activities. Here you can see purchase, you can set up the queues if you want, you can see the information about sales purchase payments and you can start this process or any product videos. So here it is. You can see the activities, you can see the ongoing sales. The sales quotations are two. When you click on this, system is going to open these two quotations so that you can see what exactly the quotations that are pending, right? You can just close it. Similarly, the orders are four, invoices are seven. And this is the sales has been done till this month. So you can see that everything you can see on the dashboard, in case if you want to start creating new things. Sales quotation here, sales order here, sales invoice, purchase invoice. And in case if you want to see the product videos, you can see and get started here.

Here you can see the report. So you have these dashboards available, you can see the business intelligence, you can change the duration. So you want to see by week. Then System is automatically going to change this. If you want to say by quarter, then you will see those information and you can see next chart, previous chart, all the charts that are available, right? So let me just go to the next chart. So here you can see that total receivables, payables, liquid funds and cash flow. So all the charts you can see, and if you want to see the details, you can click on those and System will pull that information on the screen. All right? And there you can see the trial balance. If you want to change it, you can change the period. So there you can see the accounts. Accounts are nothing but the chart of accounts GL account. So whatever the GL account that you want to track on daily basis that you can capture here and you can see their information. So if you want to see the details, you can just click on pay cash number and it will show you that jail account. So when it shows the GL account it shows you the balance as well. So you can click on this balance and it will show you the complete ledger entry.

So all the transactions that has happened to make up that amount. So that is possible, you can just close it and close this screen. So this is how the dashboard works. So you can have different PowerPoint dashboard also. So this is the dashboard. On the left hand side you have menu, so this is called ribbon. Here you can create your sales quotation, sales order, sales invoice, you can create a purchase invoice, you can create a customer and vendor. So everything you can create automatically in the new tab and you can also process payments. So you can reconcile your imported payments, you can import the bank transactions or you can register the customer payments. So if you want to make payment to the customer, you can capture it here you can see the financial transactions like balance sheet, income statements, cash flow statements, retained earnings or any sales taxes. So this is all about the ribbon. In the left hand side you can see the navigation pane and when you scroll down you will see home finance, sales, purchasing and setup extensions. So when you go to financials or finance you will see the Journal journal. So Journal journal is used for journal entries, then you have chart of accounts.

So Chart of accounts is nothing but the heart of the business where all the financial transactions are stored. So you can see the assets, so you can see this is begin total and it ends here. So it says and total and all the transactions happen that happens on the posting and you can see the total balance and net change for the particular period and whatever is the sum of the assets will be shown here in the last. So you can see that how much asset is there for the company for the particular period. Similarly you can see the liabilities, you can see all the earnings, costs and expenses, everything you can see in the chart of accounts in the same screen, right? So you can create a new chart of account, you can edit a new chart of account and you can do all those stuff.

Then you have account schedules if you want to see the reports like cash flow, balance sheet or say income statement, then you can see here you can define the Glaccount categories in this screen. So here you can define the GL account categories. If you want to categorize the GL accounts, if you want to do cash receipt journal, it means you want to receive payments from your customers. Then you can get that using cash receipt journal. It may take some time to open, let’s wait for a few seconds so it says it’s working on it. So here you can use the cash recipes, similarly payment journals you can use to make payment to the vendors. Then you have bank accounts. So all the banks that you have in your company, you can define it here and it gives you complete information. You can do payment reconciliations and bank account statements you can see here.

So it’s all about finance. The next is sales. So sales I explained it’s a simple process which starts with sales quotation, order invoice and then the payment. So here you can see all your customers, so you can see different views of the customer with their image and everything. And you can see the list, the customers along with their balance due, okay, then you can create your sales quotations here, you can create sales orders here, sales invoices here if customer returns back the material or product or services, then you can create sales Craig memo and you can see the posted sales invoice. The sales invoice which you have posted will be seen here and the credit memos will be seen here, right, so this is all about sales. The next is purchasing similar to the sales here. Also you can see the vendors that you deal with, you can see the list of the vendors and what is the balance due.

Also you can see that you have purchased invoices, you can create invoice and post the invoice. The posted invoices you can see here and the credit memos in case if you are returning something to the vendor, then you can create the credit memos and posted credit memos can be seen in this place and finally you have set up an extension. So before you start using the application, first you need to make sure that you set up the company. So you have to set up your company, migrate business data, set up sales tax, cash flow. So these are the templates available for assisted setup in case if you want to do manual setup, you can go each one in detail. So you have general, you have account Identifiers, company details, countries, number series, reason, code, source code, zip codes for finances, you can define all the accounting periods, business posting groups, tax posting, group posting setups. Similarly for sales, you can do sales and symbol setup.

Purchase, you can do purchase and payable setup, inventory, you can do inventory setup and similarly for service and other areas and then you have service connections and in case if you want to extend the functionalities of Dynamics 65 for financials, you can integrate that. So you can integrate with PayPal, you can integrate with GP, data migration in case if you’re migrating from GP, max Dynamics, GP and QuickBooks data migration, sales inventory forecast. So all those things can be done in here, so this is what is all about. Dynamics three five for financials. So this is the overview that you have seen. And in case if you have any questions, let me know and I’ll be happy to help you. So that’s it for this video. And I will see you in the next video tutorial.

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