Hope Everyone is doing great. Please stay safe & healthy. Follow government’s guidelines to recover from this “COVID-19” situation.
Let’s utilize this time at home by learning something new in Microsoft Dynamics 365 Finance and Supply chain.
This week I am back with most important feature of D365 which can solve years long problem of most of the organizations. Most of the consultants will relate to this, whenever we start any customer engagement, customer’s most difficult problem is “They are not able to close their Finance period on time” which delays in P&L submission, Audit etc… Right????
If we think about actual root cause of this problem, Problems are:
- Organizations never gave importance to define the proper process for period closing
- No defined role and responsibilities to individuals
- No definite timelines and tracking of the same
- Communication gap among departments
Many more problems depend on the organization to organization. But, no now no need to worry all this can be solved by implementing “Microsoft Dynamics 365 Finance and Supply chain Financial period close feature”
So, lets start with this. D365 finance period close configuration has following structure:
Lets’ start with the configuration from bottom to top:
Step-1: Define Task Areas, Task area can be anything in general term if we say it can be modules. In my case I have considered two modules GL and Inventory.
General Ledger > Period Close > Financial Period Close configuration > Task Area > Click New and define
Step-2: Closing Roles, closing roles define the type of responsibility which can be assigned to each defined area.
General Ledger > Period Close > Financial Period Close configuration > Closing Role > Click New and define
Step-3: Resource, here we need to define who will do what? Define employee mapping with task area, legal entities and also define the view for the resource
General Ledger > Period Close > Financial Period Close configuration > Resource > Click New and define
Step-4: Calendar, this defines the target time for closing the period, let’s say we want to close the month by next month 5th, so accordingly we can define the calendar and also the working days
General Ledger > Period Close > Financial Period Close configuration > Calendar > Click New and define
Step-5: Template: This most critical part of the complete configuration. Here we need to define the tasks for each Tas area which we have defined. Tasks are nothing but the activities which have to be performed for closing the period e.g. Subledger Reconciliation, Tax reporting, Inventory closing, Currency revolution, Depreciation run etc….
General Ledger > Period Close > Financial Period Close configuration > Template > Click New and define
This also allow us to define the navigation for that activity, so that employee can easily perform the activity.
General Ledger > Period Close > Financial Period Close configuration > Template > Select Task > Select Task Link
Step-6: Define Dependency, there can be scenario where we want to set dependency of one task on another e.g. AP can not be closed without running Vendor foreign currency revaluation. This can be defined by following:
General Ledger > Period Close > Financial Period Close configuration > Template > Select Task > Click on set dependency
Now we are ready with are tasks or list of activities for the financial period close.
Step-7: Closing Schedule
This allows us to map everything together Task area, Calendar, Template, Resources and Closing roles
General Ledger > Period Close > Financial Period Close configuration > Closing Schedule > New
Now we are done with the configuration, all the resources can see all assigned activities with timelines to their “Financial Period Close “workspace.
We can have different view of the tasks here by area, by status etc…this will help the financial controller to keep the eye to complete the period close on time.
That’s all about this blog. This feature can really make the change in your implementation. So, try to explore this and implement.
Thank you for your time!!!
I will be back next week with new blog.
Please share your feedback and also let me know if you want to pick any specific area.
Stay Safe and Healthy !!!