Dynamics 365 Business Central
Category
Dec 3, 2024
Published date
Text
Article Type
AI Summary
- The article discusses conflicting advice from different Business Central consultants on how to set up inventory accounting in Microsoft Dynamics 365 Business Central.
- The author recommends specific setups for Inventory and Interim Inventory accounts as well as Purchases and Direct Cost Applied accounts based on consultations with Microsoft MVPs specializing in Business Central.
- Interim Inventory is only applicable with Expected Cost turned on in Inventory Setup, resulting in specific accounting entries for sales orders, purchase orders, and manufacturing orders.
- The author recommends setting Inventory and Interim Inventory accounts as separate accounts for easier inventory reconciliation, despite some implementations using the same accounts.
- Purchase orders received use the Inventory Interim account as the debit and Invt. Accrual Acc. (interim) as the credit, with entries reversed upon invoice.
- The author advises comparing the Purchases Account to the Direct Cost Applied Account each month and recommends separate accounts for easier research.
- The article highlights the historical processes in NAV and BC versions regarding purchase invoice transactions and how Automatic Cost Posting affects them.
- With 29 years of experience in NAV and BC, the author is confident that following their recommendations will help organizations balance inventory to the general ledger.
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