Financial Management in Business Central

You can manage all common finance processes and information such as posting financial transactions, preparing financial statements, managing bank accounts, inventory costs, manufacturing costs, and fixed assets in Business Central.

Chart of Accounts

When you create a new company, you must first set up a chart of accounts and configure the posting processes. The chart of accounts in Business Central looks something like this:

Use these accounts to post transactions to the general ledger. You can setup balance sheet accounts and income statement accounts. Besides the basic setup, you can also set up advanced features related to GST.

Once G/L accounts are created, you can then use them in sales and purchase documents and in general journals to post transactions to the general ledger.

Dimensions

In Microsoft Dynamics 365 Business Central, you can make use of dimensions for advanced transaction analyses.

You can set up dimensions and then assign multiple dimension values to each dimension. Once dimensions are set up, you can assign default dimensions to customers, items, vendors, G/L accounts, jobs, resources and many more.

Examples: Before posting sales, you can assign a customer group dimension to a sales document. Or you can assign a department when posting expenses so that you can analyse and compare your expenses by department.

Processing Payments

From the payment registration page, you can process customer payments with only a few clicks and mark invoices as paid to automatically reconcile accounts.

To pay your vendors, you can use the payment journal, including advanced features such as vendor priorities and paying invoices on their due dates. To do so, you can run the suggest vendor payments batch, modify the payment journal lines if necessary, and then process the payments electronically or by check.

With the payment reconciliation journal, you process and reconcile bank statement transactions in one go. Use the import function to import bank statement files and let the system apply transactions automatically using advanced application rules.

Cash Flow Forecast

To get a better grip on their cash position, companies want to know how their cash flow will evolve in time. The cash flow forecast function uses a whole range of sources to calculate the future cash flow to receivables, payables, purchase orders and sales orders.

You can use manual revenues and expenses to analyse the impact of a future loan or an unforeseen future cost. By including Cortana Intelligence, machine learning is used to calculate the cash flow forecast based on historical income and disbursements.

Budgets

You can work with budgets for general ledger accounts, costs, sales and purchases.

Deferrals

You can set up deferral templates that automate the process of deferring revenues and expenses over a predefined schedule.

Fixed Assets

You can keep track of fixed assets and related transactions, such as acquisitions, depreciations, write-downs, appreciations, and disposals.

Audit Trails

Microsoft Dynamics 365 Business Central automatically assigns audit trails and posting descriptions to every transaction. In addition, you can define reason codes to create complementary audit trails.

Bank Account Management

You can create, operate, and manage multiple bank accounts to cater to your diverse business needs and across different currencies.

Reconcile your bank statement data automatically to open bank account ledger entries and keep track of all your bank statements.

Currencies

You can Manage multiple currencies throughout the system, including payables and receivables, general ledger reports, resource and inventory items, and bank accounts.

Apply Date Filter on Chart of Accounts

 

  1. Open Chart of Accounts (Departments/Financial Management/General Ledger/Chart of Accounts)
  2. Drill down on the Chart of Accounts and select Limit totals to show the filters.
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  3. Under Limit total to, specify Where <Date Filter> is <Filter Value>
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  4. Amounts will be updated according to the filter applied.

You can also use Add Filter option to provide more filter combinations