Explore Finance capabilities and features

Microsoft Dynamics 365 Finance can cater to the multi-company, multi-currency business of an organization and monitor the performance of a company on a real-time basis. Dynamics 365 Finance is capable of forecasting future results and making data-driven decisions to boost the growth of the organization, regardless of its size and the industry in which it operates. The following illustration and topics highlight some of the capabilities of Dynamics 365 Finance.

General ledger

The general ledger module is used to define and manage a legal entity’s financial records. The general ledger is a register of debit and credit entries. These entries are classified using the accounts that are listed in a chart of accounts.

Accounts receivables

Accounts receivable is used to track customer invoices and incoming payments. You can create customer invoices that are based on sales orders or packing slips. You can create free text invoices if the invoices are not related to sales orders. You can also receive payments by using several payment types, which include bills of exchange, cash, checks, credit cards, and electronic payments.

Accounts payables

You can manually enter vendor invoices or import them electronically through integration services. After invoices are entered or received, they can be reviewed and approved by using an invoice approval journal. The system can enable the use of invoice matching, vendor invoice policies, and workflows to automate the review process so that invoices that meet certain criteria are automatically approved and the remaining invoices are flagged for review.

Budgeting

This module provides an overview of the budgeting functionality components, budgeting tools, and reporting capabilities. The budget module in Dynamics 365 is divided into three primary sections: budget planning, budget entry, and budget control. Budget planning is the process that ensures the organization policies, procedures, and requirements are met while implementing the budget. Budget entry, the following step, helps register the budget line items in Dynamics 365 Finance and maps the line items with general ledger accounts. Budget control is the optional step that validates the financial transactions in Dynamics 365 Finance based on the registered budget lines.

Cash and bank management

Cash and bank management is used to maintain the legal entity’s bank accounts and the financial instruments that are associated with those bank accounts. These instruments include deposit slips, checks, bills of exchange, and promissory notes. You can also reconcile bank statements and print bank data on standard reports.

Cost accounting

This module manages the processes used in cost accounting, such as allocation base, cost accounting ledger, cost entry, cost classification, and cost behavior.

Fixed assets

This module provides access to resources that use fixed assets for Dynamics 365 Finance. Fixed assets are items of value which are owned by an individual or organization. The items include buildings, vehicles, land, and equipment.

Expense management

Expense management can create an integrated workflow to store payment method information, import credit card transactions, and track the money that employees spend. You can also define expense policies and automate the reimbursement of travel expenses.

Regulatory features

Finance and operations apps include functionality for different countries/regions. This functionality is enabled based on the primary address of the active legal entity. Regulatory updates are features that are implemented to support new or changed country-specific or region-specific legislation. This topic helps to get country/region specific update. It also submits and reviews regulatory alerts. You can check Regulatory updates link for the latest regulatory update plans.

Asset leasing

Dynamics 365 Finance provides an advanced capability for managing, tracking, and automating financial transactions for leased assets. This module can capture and process the lease details and generate journal entries throughout the lifecycle of the lease, from initial recognition, to monthly journal entries, to impairment and termination of the lease.