Numerous businesses opt for international expansion to tap into larger markets and boost their financial performance by accessing new talent pools and reducing manufacturing costs. However, as more companies go global, authorities are exerting pressure on these international organizations to comply with local and global accounting standards.
To address this challenge, the Global Inventory Accounting Add-in for Microsoft Dynamics 365 Supply Chain Management comes to the rescue. It empowers businesses to seamlessly manage inventory accounting using multiple costing ledgers. As a result, these organizations can comply with multiple accounting standards while also catering to internal management accounting requirements.
Features
Organizations, especially those operating internationally, often prefer using standard cost for inventory accounting in their management accounting setup. However, local governments, tax authorities, and the International Financial Reporting Standards Foundation (IFRS) often require average or specific identification methods and may also require inventory to be accounted for in both local currency and functional currency.
A comprehensive solution is needed to address these requirements, which includes the capability to perform inventory accounting in multiple costing ledgers, each of which can be configured with unique accounting policies. With this new functionality, customers have the flexibility to define as many costing ledgers as necessary, and can perform inventory accounting in dual currencies and dual valuations, ensuring compliance and adaptability to various accounting standards.
Global Inventory Accounting allows for multiple inventory accountings in the Global Inventory Accounting ledgers that have been configured. Each Global Inventory Accounting ledger is defined by a combination of these four elements – Calendar, Currency, Exchange rate table, Convention and must be associated with a specific convention.
A convention is a collection of these accounting policies – Cost object, Input measurement basis, Cost flow assumption, and Cost element.
How to get started with Microsoft Dynamics 365 Global Inventory Accounting Add-in?
Global Inventory Accounting is an add-in. So, to make its features available, you can install it from LCS or Microsoft Dynamics Lifecycle Services and examine it in a test set before turning it on for production settings. Here are the steps to follow to install the add-in:
1. Register (create an account) for the Global Inventory Accounting public preview.
2. Sign in to Lifecycle Services (LCS) and go to Preview feature management.
3. Select the plus sign (+). Enter your add-in beta key for Global Inventory Accounting in the Code field. Once the user has signed up, they would receive a beta key by an email.
4. Select Unblock.
5. Open the LCS environment and go to Full details.
6. Under Power Platform Integration, select Setup.
7. Select the checkbox in the Power platform environment setup dialog box and click on Setup. The setup process usually takes between 60 and 90 minutes.
8. After the Setup of the Microsoft Power Platform environment is complete, select Install a new add-in on the Environment add-ins FastTab.
9. Select Global inventory accounting.
10. Follow all the installation guides shown and agree to the terms and conditions.
11. Select Install.
12. On the Environment add-in FastTab, you will notice the installation of Global Inventory Accounting. After a while, the status will transition from “Installing” to “Installed.” To observe this change, simply refresh the page. Once the installation is complete, you can commence utilizing Global Inventory Accounting.
It’s important to note that currently, Global Inventory Accounting currently only supports some of the built-in features of Supply Chain Management. Therefore, it becomes essential to evaluate if the available set of features are able to satiate your requirements.
Licensing
Global Inventory Accounting is included in the standard features of inventory accounting that are available for Supply Chain Management. This implies that purchase of an additional license to use Global Inventory Accounting in not required.
Next Steps
To learn more about the Global Inventory Accounting Add-in in Microsoft Dynamics 365, feel free to reach out to our experts on sales@dynatechconsultancy.com who can help you grow your business!
