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.

Introduction Gate Entry Inward is a process used to Monitor and Record the arrival of the goods within in the Organization. You can use the gate entry function to register the movement of goods both entering and leaving the organization. This gate entry can be linked to various order types such as purchase orders, sales orders, transfer orders, or return orders.   Before getting into the process there are a few setups that we must do, in that the first set-up is to create a New Gate Inward Number Sequence for the Site which you are going to create the Entry for.  Create a New Gate Inward Number Sequence Go to Inventory Management> Set Up>Inventory breakdown>Sites.  On the Sites page scroll down to Number Sequence, under that, you can see the Gate Entry for both Inward and Outward entries. Here I will create the Number sequence only for Inward Entry.   For that, in the Gate Inward option, Right Click on the dropdown arrow and then click on View Details.  On the Number Sequence page click NEW.  Create the New number sequence and add it to the Gate Inward.  Creating Inventory Gates The Inventory Gates are created to define whether it is an Entry gate or an Exit gate on a particular Site. Likewise, many gates can be created for a Site and can be defined as Entry gate or Exit gate. The Pathway to create Inventory Gates is as follows:  Go to Inventory Management>Set up>Inventory Breakdown>Inventory Site Gate.  Click NEW on the Inventory Site Gate page. Enter the In or Out type under the Gate Type option which represents the Entry and Exit gate. Then enter the site and then enter the Gate number of that Site and finally add a description if there is any.   Creating the Gate Entry Record The next step is to create the Gate Entry Record. The pathway for that is:  Go to Inventory Management>Periodic Tasks>Gate Management>All Inward Gate Entries.  Step 1: Click New Inward Gate Entry.  Step 2: Under the Inward gate Entry Header FastTab enter the Factory Gate and Warehouse.   Step 3: Select the Reference Document Type and based on that select the Reference Party. In this scenario I have selected the Reference Document type as Purchase Order and in the Reference Party field I have selected a particular vendor.  Note: The Reference Party field is not applicable when the Reference Document Type field is selected as Others.     Step 4: Enter the Transport Information which includes Vehicle Number, Transporter name, Driver Name and Driver’s phone number.  Step 5: Enter the Challan number and Date.  Step 6: After entering all the details, on the Top of the screen we can see Copy tab in that click on From Purchase Order lines which will show all the Purchase Order lines related to that Vendor. Step 7: Select the Lines and then click on OK. As we click on Ok the Purchase Order line will automatically get populated under the Inward gate entry lines FastTab.  Step 8: Click on Confirm Vehicle Entry under the Process Tab from the top of the screen. After confirming the Entry status changes from Open to Vehicle Entered.  Step 9: In the Lines details Tab under measurement enter the Measurement Details provided by the manufacturer. (This step can be skipped if the Reference Document type is Others or the Skip Measurement parameter is enabled). After entering the measurement details click on Confirm Measurement from the top of the screen.  Step 10: Then enter the Tare Check details. For that scroll down to Lines Details tab in that select Tare Check and then enter the Weight and Unit of the Product and then click on Confirm Tare Check from the top of the screen.  Step 11: Click on Confirm Vehicle Exit and notice how the Status changes to Vehicle Exit.  Step 12: Go to that particular Purchase Order and click on Product Receipt.  Then scroll down to line details and under the Gate Entry line select the Inward Gate Entry and then click on OK.  Then if you Scroll further down and go to details and under that click on Gate Entry Details you can see all the fields from the Internal Gate Entry have been populated on the Product Receipt.  Then click on OK to post the Product Receipt.  Thank You!!!   That is it for this blog, hope this helps you. 

Introduction In any business organization, financial dimensions play a crucial role in identifying the posting routine of payments, sales, purchases, and other transactions in the ledger account.  Microsoft Dynamics 365 Finance and Operations (D365 F&O) provides the functionality of financial dimensions to help users identify the posting routine with details of the transaction.  However, in the retail industry, financial dimensions need to be configured differently as compared to other industries.  In this blog, we will discuss the importance of financial dimensions in the retail industry and the steps to configure financial dimensions for retail stores and payment methods. Importance of Financial Dimensions in the Retail Industry In the retail industry, financial dimensions are used to categorize transactions such as sales, refunds, discounts, and payment methods.  These financial dimensions help the finance department to analyze the financial data and create reports to monitor the financial health of the retail store.  For example, a retail store can create financial dimensions for different payment methods like credit card, cash, and check.  This will help them to identify which payment method is used the most and which payment method is generating more revenue for the store. Another use of financial dimensions in the retail industry is to track sales by product category.  A retail store can create financial dimensions for product categories like electronics, clothing, and accessories.  This will help them to analyze which product category is selling the most and which product category needs more attention from the store. Steps to Configure Financial Dimensions for Retail Stores and Payment Methods Payment Methods To configure financial dimensions for payment methods in retail stores, follow the below steps: Step 1: Go to Retail and Commerce > Channels > Stores. Step 2: Click on the Action tab and select Set Up > Payment Methods. Step 3: Select the desired payment method, and in the details tab, you can find financial dimensions. Step 4: Map the financial dimensions to the payment method and save the changes. Stores To configure financial dimensions for retail stores, follow the below steps: Step 1: Go to Retail and Commerce > Channels > Stores > All stores.Step 2: Select the desired store that you want to set the default dimensions on the bottom as shown in the image. Step 3: Enabling this will overwrite the financial dimensions that were enabled on payment methods as this will be set as default dimensions for all types of transactions. Conclusion In conclusion, financial dimensions play a crucial role in the retail industry, and configuring them properly is essential for the finance department to analyze financial data accurately.  Microsoft Dynamics 365 for Finance and Operations provides the functionality of financial dimensions for retail stores and payment methods, and configuring them is a straightforward process. By following the above steps, a retail store can easily configure financial dimensions for their stores and payment methods and analyze their financial data accurately.

Introduction Any product that is manufactured has a Manufacturing date as one of the important aspects, as based on manufacturing date many other parameters are defined. i.e. Warranty date, Expiry date, etc. In our day-to-day life, there are many items for which expiry date is very important. i.e. dairy products, packed food items, medicines, etc. While for other items expiry date is not important but warranty date is important. i.e. Electronic items, any other products having warranty, etc. Hence, manufacturing date plays an important role for both consumer as well as manufacturer. Problem Statement In scenario where batch no. need to create in advance before actual receipt. & while creating batch no., Manufacturing date (25 May) is assigned but once saved it can’t be changed from same screen. Solution Steps It can be changed from registration screen. To do that need to do below 1 step setup. 1. Setup -> Released item -> Manage inventory (Tab) -> Batch number group -> Remove (To avoid automatic batch creation) Setup -> Released item -> Item model group -> Edit -> Inventory policies (Tab) -> Purchase registration -> Tick mark -> Save 2. Create PO -> Add line 3. Select line -> Update line -> Registration 4. Add registration line 5. Batch number -> Select above created batch number -> Confirm registration 6. New form of Vendor batch details will open – Batch details (Tab) -> Vendor batch date -> Can select Today’s or past date (Selected 28 May) -> Use as manufacturing date -> Tick mark (Then manufacturing date will be overwritten) -> Save. 7. Now all dates will change accordingly. We can go in respective batch & check, new manufacturing date (28 May) is reflecting. And we can receive the material as per updated manufacturing date.

In any organization with business spanning across multiple countries, multi-currency transactions play a vital role in day-to-day business. Any accounting software should be able to facilitate currency conversions not only at the time of booking the transaction but also calculating the forex gain/loss incurred during the end of any period or after settlements are made against open transactions. Dynamics 365 Finance & Operations offers an effectively simple functionality to facilitate such important transactions. Called as Foreign Currency Revaluation, it provides the following features: 1. Calculate the unrealized foreign currency gain/loss against all open transactions for any vendor/customer. 2. Account the unrealized gain/loss into the respective GL accounts. 3. Knocking off the unrealized gain/loss accounts by transferring the balance to the realized gain/loss accounts at the time of settlements. This functionality is beneficial to any accounting manager who wishes to know any gain/loss that might incur before making actual payments and make important business decisions accordingly. Dynamics 365 Finance not only has a very short and simple setup to set up Foreign Currency Revaluations, but also a very easy way to run the process. Setup Starting with the setup, the below settings need to be configured first: 1. Setup currency exchange rates Path: General Ledger -> Currencies -> Currency Exchange Rates As per the above screenshot, the user can have multiple currency conversion rates setup for any date range. 2. Configure main accounts for Unrealized Gain/Loss and Realized Gain/Loss As per different business requirements, the foreign exchange gain/losses can be accounted in a single GL account or multiple GL accounts. Based on that, the necessary accounts should be configured. They can come under Expenses or Revenue. 3. Link the main accounts to the Ledger For the system to account the gain/loss amount into the respective GL accounts, it is necessary to link them in the Ledger first. Path: General Ledger -> Ledger Setup -> Ledger 4. Enable multi-currency option in bank master Path – Cash & Bank management -> Bank account -> Enable the option “Allow transactions in additional currencies” This will enable the bank settlements to be done in any currency. 5. Lastly, Foreign Currency revaluation exists for each module (AP, AR, GL) and it is accessed directly without any setup. The setup is complete with the above steps. Now comes the process flow. As an example, the transactions will be run for the months of June and July where each month has a currency rate of 1 USD = 70 INR and 1 USD = 75 INR respectively. Based on these currency rates, the system will calculate a profit for customer payments and a loss for vendor payments respectively. Let’s start with the profit scenario first 1. Create a back dated FTI journal in the month of June. Select the amount as 1000 dollars. The accounting impact for the journal in USD and INR will be as below: FTI (USD) Dr Cr Customer 1000   Revenue   1000 FTI (INR) Dr Cr Customer 70,000   Revenue   70,000 2. Navigate to Accounts receivable -> Periodic Tasks -> Foreign Currency Revaluation Click on Foreign Currency Revaluation at the top. Clicking that will open the parameters window. Here, user can run the FCR for a specific vendor/customer. The considered date and Date of rate should be selected as the date when the new currency rate will take effect. In this case, it will be 1st of July, where the currency rate will become 1 USD = 75 INR. Click on OK. Once it is run, it will create an entry in the same screen as shown below: By default, the latest entries are at the bottom. Select the entry and click on voucher to see the effect. The voucher effect is as shown below: As per the above accounting impact, the system calculated that from 1st July, there will be a net gain for any customer payments against invoices made in June. Hence, the system will select the Unrealized Gain account and post the currency difference amount in it as an income. The customer’s outstanding balance also increases by the same amount. The simplified accounting effect is as below: FCR (INR) Dr Cr Unrealized Gain   5000 Customer 5000   Now if a payment is created in the month of July against the invoice booked in June, the system will post the payment journal as per the current exchange rate (i.e., 75 INR) and transfer the Unrealized amount to the Realized amount. This effect is as shown below: The simplified impact is as shown below: Payment (INR) Dr Cr Customer   75000 Bank 75000   Final Voucher Dr Cr Unrealized Gain 5000   Realized Gain   5000 The customer account is settled and a revenue of the currency difference amount is recorded as a Realized Gain. The brief summary of these transactions can be found in the Customer transactions (Customer Master  -> Customer -> Select Transactions from the top panel) The above was an example where there is a net gain from customer payment. Exactly equivalent accounting impacts will take place for other scenarios like vendor gain, vendor loss and customer loss as well. The below table shows the exactly the type of impact incurred for vendor/customer transactions for increasing or decreasing currency rate: Vendor Customer If Currency –> Increases If Currency –> Increases Then Vendor Account –> Increases (Cr) Then Customer Account –> Increases (Dr) Net result –> Loss (Dr) Net Result –> Gain (Cr) If Currency –> Decreases If Currency –> Decreases Then Vendor Account –> Decreases (Dr) Then Customer Account –> Decreases (Cr) Net result –> Gain (Cr) Net Result –> Loss (Dr) Now, what if the user makes the payment without running FCR? In that case, the system will directly impact the Realized Gain/Loss account for the currency variation amount against the vendor/customer. No Unrealized GL will be accounted. In conclusion, the process of running FCR is useful to determine the best time span for making payments in order to benefit from currency exchange rates.

Introduction In multi entity environment having separate legal entities for head quarter & regional entities, having separate sets of employees for each legal entity. & only head quarter employees taking decisions for which & how much inventory to be maintained at regional level & same employee having purchasing authority for all regional entities. In this case to keep track, post & report of what & how much purchase made for respective regional entity, need to create Purchase requisition for respective buying legal entity. i.e. USMF is headquarter entity & PM is regional entity. Problem Statement While creating Purchase requisition from headquarter employee’s login, it is created with buying legal entity as headquarter entity. i.e. Julia is employee of Headquarter USMF entity who will be going to issue Purchase requisition for regional entity PM. When Julia login in PM entity & create Purchase requisition then entity will automatically change to USMF. Solution Steps Follow below steps, in order to create Purchase requisition with buying legal entity as respective regional entity & to maintain all details on respective entity. 1. Select employee of headquarter which is going to issue Purchase requisition. i.e. select Julia in USMF entity – Go to Human resource -> Workers -> Employees -> 2. Select required employee. i.e. Julia – 3. Go to Work History 4. Click on Add employment to add respective entity to history. i.e. Add PM entity in Julia’s history 5. Add details of Legal entity i.e. Entity PM, Employment start date & click on Create employment. 6. History is added of PM entity Create Purchase Requisition Go to Procurement & sourcing -> Purchase requisitions -> All purchase requisitions & create new Purchase requisition from PM entity then Purchase requisition will be created for PM entity & window will not switch back to USMF. Now all Items added in this Purchase requisition will be ordered & maintained for PM entity.

In this blog, we are going to address the issue that can be seen in the recent update in Microsoft Dynamics 365 Finance & Supply Chain Management. To solve this issue please follow below steps. Currently If we see before the setup there is no tax information showing in Stock Transfer Transaction. Only the Administrator can see this Tax information. To overcome this issue, in Dynamics 365 F&SCM new update we have to enable “Private” field in the warehouse address tab. For this, Go to Inventory Management Setup->Inventory Breakdown->Warehouses. Go to Address. Click on Advanced. Right click In Address section and Click Add field. Add a field as “Private”. Once it is on the address section just disable the private field. By this every user will be able to see the Tax information on the Stock Transfer. After this, the user will be able to see the Tax Information on the Stock Transfer. That’s it for this blog. Thank you!!!

In this blog, I am going to showcase how to initialize a Retail commerce scale unit. If you’re using a Tier-2 sandbox or production environment that has application version 8.1.2.x or later, you must initialize a Commerce Scale Unit (cloud) before you can use retail channel functionality either for point of sale (POS) operations or for e-Commerce operations that use Retail Server in the cloud. Initialization will deploy a Commerce Scale Unit (cloud). Prerequisites Deploy a Tier-2 sandbox or production environment that has application version 8.1.2.x or later. Initialize Commerce Scale Unit as part of a new environment deployment Make sure the headquarters environment is available and not in Maintenance mode. In LCS, on the environment details page, Click on Manage. 2. Click on initialize 3. Select the your region And initialize Ok 4. Inside HQ, go to channel Database new channel DB created. Add channels inside that Channel DB. 5. Go to channel, click on channel profile and select that new channel DB. Run 9999 jobs from the channel Database. I hope this helps!

Many retailers, especially high-end specialty retailers, want their sales associates to form long-term relationships with their key customers. The associates are expected to know about these customers’ likes and dislikes, purchase history, product preferences, and important dates, such as anniversaries and birthdays. Associates need a place where they can capture this information and easily find it when it’s required. If this information is available in a ‘single view, the associates can easily target customers who meet specific criteria. For example, they can find all customers who prefer to shop for handbags, or customers who have an important event approaching, such as a birthday or anniversary. Or if a customer had bought a gift for her husband then the cashier/associate can ask the customer if her husband liked the gift. In a nutshell, this will allow the stores to create a relationship with customers on a personal level. This is bound to make customers happy as they will begin to think that they matter and they are being looked after. Such practice will directly impact the sales Here is how you can set up Clienteling in d365 Commerce.  In the Feature management turn on the clienteling functionality in your environment Turn on the Clienteling feature by selecting Enable now. On the Commerce Parameters page, on the Number sequence tab, select the Client book identifier row. Then, in the Number sequence code field, select a number sequence. The system will use this number sequence to assign an ID to client books. Create a new attribute group that contains the attributes that you want to capture for customers who are managed in client books. Define the required attributes as Can be refined. Sales associates can then use these attributes to filter their client book. On the Commerce parameters page, on the Clienteling tab, in the Client book attribute group field, select the attribute group that you just created. To capture activities that occur at the POS, define the activity types on the Activity types page (Retail and Commerce > Customers > Activity types). Add two buttons to the appropriate POS screen layout, so that sales associates can view their own client book and the store client book. (Store client books include clients from all client books of all associates who share an address book with the store.) The corresponding operations are named View customers in client book and View customers from store client books, respectively. Three additional operations that are related to client books are available. These operations determine which associates can add, remove, and reassign customers from the client book. They are named Add customer to client book, Remove customers from client book, and Reassign customers to a client book, respectively. Run the following distribution schedule jobs: 999. After you’ve completed this procedure, sales associates can open the customer details page at the POS, and add customers to their client book, view and capture activities and notes for customers, and target customers by using customer and client book attributes to filter the client book. Cashier can search for a customer and he would be able to see and add notes of customer account which will allow the store person to offer a more personalized experience to the customer Hope this helps!