Business Central Insights

  Incorrect Cost Increases in FIFO Costing Method in Business Central When using the FIFO (First In, First Out) costing method in Business Central, understanding how costs increase for inventory items is crucial for accurate financial management. A common issue arises when there’s a mismatch between units of measure (UOM) or incorrect quantity entries. Tracing Cost Increases If you suspect an issue with a cost increase, you need to trace the transaction where the cost is being calculated. A useful tool for this is the Value Entries on the item card in Business Central. Here, you can review every transaction affecting the value of the item and check if the UOM, quantity, and costing amounts were correctly filled in. Example Scenario: UOM Mismatch Imagine the base UOM for an item is square feet, but there is an alternative UOM (e.g., box), where one box equals 1000 square feet. If a user creates a purchase order for $1000, but accidentally enters the wrong UOM (e.g., square feet in...

  Why Manual Reservation is Not Needed for Drop Shipment Sales Orders in Business Central In Microsoft Dynamics 365 Business Central, managing inventory effectively is crucial for smooth operations, especially when dealing with different types of sales orders. One specific scenario where inventory management behaves differently is with drop shipments . Unlike regular sales orders, drop shipment orders do not require manual reservation of inventory. This blog explains why manual reservation is not needed for drop shipment sales orders in Business Central. What is a Drop Shipment? A drop shipment is a fulfillment method where the goods ordered by a customer are shipped directly from the supplier to the customer, bypassing the selling company’s inventory. In Business Central, this process automates the flow of orders from sales to purchasing, streamlining the supply chain. Why is Manual Reservation Not Needed in Drop Shipments? For regular sales orders, manual reservation is often us...

  Why Business Central Doesn't Ask for Item Tracking Information During Reclassification When reclassifying items in Microsoft Dynamics 365 Business Central, users may find that the system does not prompt for lot tracking or serial number information, even when the item is set up with item tracking. Reason : in the item tracking code card, the flag  "Warehouse Tracking" , needs to be set to "Yes". This setting is crucial because it controls whether the system requires serial number information when posting internal movements, including reclassification entries. To ensure that Business Central requests item tracking information during reclassification, the " Warehouse Tracking" flag needs to be activated. By enabling this setting, you align the system's behavior with your tracking requirements, maintaining accurate inventory control and traceability.

  Why the Planning Worksheet in Business Central Doesn't Consider Existing Inventory In Microsoft Dynamics 365 Business Central, the planning worksheet is a powerful tool used for planning and replenishing inventory. However, sometimes users encounter a situation where the planning engine does not consider the existing inventory levels when generating suggestions. This can lead to confusion, as the system might suggest unnecessary purchases or production orders. The primary reason for this behavior often lies in specific settings on the item card. Key Reason: The "Include Inventory" Setting One of the critical settings that control whether the planning engine considers current inventory levels is the “Include Inventory” toggle on the item card. This setting determines if the existing inventory should be included when calculating replenishment needs. What is the "Include Inventory" Setting? Include Inventory: This setting is found under the Lot-for-Lot Paramete...

A Team Member license in Microsoft Dynamics 365 Business Central has limited functionality compared to a Full User license. Team Members are typically designed for light usage and certain tasks such as viewing data, running reports, and approving workflows, but their ability to create and modify records is restricted. Key Capabilities of a Team Member License: Read Access : Team Members can read data across most Business Central modules, including finance, sales, purchasing, and inventory. Update Existing Entries : Team Members can modify existing records for very limited fields, such as updating basic information (e.g., changing the due date or the description on a purchase or sales order). Approval Actions : They can approve or reject documents in workflows (such as purchase or sales orders). Run Reports : They can view and run reports and analytics. Create Limited Entries : Team Members can create and edit "timesheets" and "expense reporting" entries, as well a...

Approval Due Dates in Microsoft Dynamics 365 Business Central In Microsoft Dynamics 365 Business Central (BC), managing approval workflows effectively is crucial for ensuring smooth operations. One feature within these workflows is the Approval Due Date , which sets a specific timeline for approval actions. Here's a brief guide on how the approval due date works and how to configure it. Where is the Approval Due Date Set? The approval due date is typically set within the Workflow Responses section in Business Central. When setting up or modifying a workflow, you will find the option to add a Due Date Formula . This field allows you to define when an approval should be completed, using a specific formula (e.g., "1W" for one week). How Does the Approval Due Date Work? Once the due date is configured, Business Central tracks the timeframe within which the approval must be completed. If the approval isn't actioned within the defined period, the entry is marked as overdue...

  Understanding Why Business Central Schedules Production Orders into Previous Years Introduction: When working with production orders in Microsoft Dynamics 365 Business Central, you may sometimes notice that the system schedules a production order to start in a previous year. This behavior can be confusing, but it often results from specific settings related to capacity and scheduling parameters. This blog will help you understand why this happens and what you can do to prevent it. Why Does Business Central Schedule a Production Order into Previous Years? The scheduling of a production order into a past year typically occurs when there is a mismatch between the work center’s capacity setup and the parameters of the production order itself. Let's explore the two primary factors that contribute to this issue: 1. Ensure the Capacity of Each Work Center is Correctly Set Up To ensure accurate scheduling, the capacity settings for each work center in Business Central must be properly co...

  How to Resolve Budget Phasing Issues in Microsoft Dynamics 365 Business Central Issue: Recently, while working with budget in Business Central, an user encounters the following error when attempting to amend budget phasing: “You cannot change the amount on this G/L budget entry because one or more related analysis view budget entries exist. You must make the change on the related entry in the G/L Budget window.” This error appears whether you're importing the budget or manually adjusting the phasing lines. Solution: The error indicates that there are existing analysis view budget entries linked to the G/L budget entry you're attempting to modify. These linked entries must first be addressed in the G/L Budget window before you can make any changes. Here’s how to resolve the issue step-by-step: Step 1: Identify the Analysis View with the Budget Navigate to the "Analysis Views" page : Find the Analysis View with Budget Enabled : Identify the analysis view(s) where th...

  How to Return Items Consumed in a Production Order Back to Inventory in Business Central Managing inventory efficiently is crucial in any manufacturing environment, especially when items are mistakenly consumed or need to be returned to inventory. In Microsoft Dynamics 365 Business Central, you have options to handle such situations effectively. This blog will explore two approaches to return items that have been posted as consumed in a production order back into inventory. Scenario 1: The Production Order is Not Marked as Finished If the item has been posted as consumed, but the production order has not been marked as finished, you can easily reverse the consumption. This is often the case when an error in consumption posting is discovered before the production process is completed. By posting negative consumption, the system adjusts the inventory levels, correcting the mistake while keeping all associated costs and quantities accurate in the production order. Scenario 2: The Pr...

  "Capable to Promise" (CTP) and "Available to Promise" (ATP) in Business Central To maintain customer satisfaction, it's crucial for companies to provide accurate order delivery dates. Microsoft Dynamics 365 Business Central offers two powerful tools to achieve this: Available to Promise (ATP) and Capable to Promise (CTP) . These concepts help businesses manage inventory effectively and provide realistic delivery commitments. What is "Available to Promise" (ATP)? Available to Promise (ATP) calculates the earliest possible delivery date based on the current inventory levels and planned receipts. It considers unreserved stock, planned production, purchases, transfers, and sales returns to determine the quantity available to fulfill new customer orders. Calculation Process : ATP checks the available inventory and open purchase orders, then subtracts the quantities already committed to existing customer orders. The resulting figure shows what is availab...

Why a Request for Document Approval Gets Auto-Released in Business Central In Microsoft Dynamics 365 Business Central, the approval workflow is a crucial feature that allows businesses to manage and control document approvals, such as purchase orders, sales orders, and invoices. However, there are times when a request for approval might get auto-released unexpectedly, bypassing the intended approval process. In this blog, we'll explore some common reasons why a document approval request might be auto-released in Business Central and how to troubleshoot these scenarios. Possible Reasons for Auto-Released Approval Requests The Requester is the Approver The Amount Doesn't Trigger the Workflow The Workflow is Not Set Up Properly Let's dive deeper into each of these potential causes: 1. The Requester is the Approver One of the most common reasons why a document gets auto-released is that the person who submits the request for approval is also the designated approver. In Business...

  Package Tracking Feature in Microsoft Dynamics 365 Business Central Efficient delivery management is essential for maintaining customer satisfaction and operational efficiency. Microsoft Dynamics 365 Business Central provides a valuable feature for managing deliveries — Package Tracking . This feature allows businesses to keep track of shipments, provide real-time updates to customers, and ensure that deliveries are managed accurately and efficiently. In this blog, we'll explore how the Package Tracking feature in Business Central works, how it can be used effectively, and the benefits it offers for your organization. What is the Package Tracking Feature in Business Central? The Package Tracking feature in Business Central allows you to record and monitor package tracking information for shipments directly within the system. By adding tracking numbers to posted sales shipments, businesses can easily keep track of packages in transit, update customers on delivery status, and han...

  Delivery Date Calculation for Sales in Microsoft Dynamics 365 Business Central Efficient delivery management is crucial in any sales process to ensure customer satisfaction and maintain a reliable supply chain. Microsoft Dynamics 365 Business Central provides robust tools to calculate delivery dates for sales orders, helping businesses plan and manage their deliveries effectively. This blog will explore how Business Central calculates delivery dates, both when a customer has requested a specific delivery date and when no specific delivery date is provided. Calculating a Requested Delivery Date When a customer specifies a requested delivery date on a sales order line, Business Central uses this date as the starting point for further calculations. The system will determine the exact dates for shipment and handling to meet the requested delivery date. The calculation process is as follows: Requested Delivery Date - The date on which the customer wants to receive the goods. Shipping...

  Understanding the "Return Original Quantity" Option in Business Central In Microsoft Dynamics 365 Business Central, the "Return Original Quantity" option is available on the Posted Purchase Document Lines or Posted Sales Document Lines page. This setting can sometimes be confusing for users who are trying to reverse or return quantities associated with posted transactions. In this blog, we will explore what the "Return Original Quantity" option does, its purpose, and when you might use it. What is the "Return Original Quantity" Option? The "Return Original Quantity" option is a checkbox that appears when you're viewing posted purchase or sales documents, such as invoices or receipts. This option allows users to specify whether they want to return the entire original quantity from the selected document lines. How Does the "Return Original Quantity" Option Work? Original Quantity Reference : When you enable the "R...

  Why No GL Entries Are Created When Posting Sales Order in Business Central In Microsoft Dynamics 365 Business Central, users often notice that when they post a sales shipment , no General Ledger (GL) entries are created. However, when they post a sales invoice , GL entries are generated. This difference is normal behavior and is based on how Business Central handles inventory and revenue recognition. Key Differences Between Posting a Shipment and an Invoice: Posting a Shipment: No GL Entries Created When you post a sales shipment , you are recording the physical movement of goods from your inventory to the customer. This process updates the Item Ledger to show that items have been removed from inventory, but it does not create any GL entries . The reason is that a shipment alone does not affect your financial accounts (such as sales revenue or cost of goods sold) because it is only concerned with the physical transfer of goods. Posting an Invoice: GL Entries Created When you pos...