What’s new and of note in the latest Microsoft Dynamics 365 Finance release
Most every new release of Microsoft Dynamics 365 Finance has a depth and breadth of features, fixes, and facets that, for most users, are simply too much to absorb in one sitting. So don’t! Sit back, relax, and let the engineers and solutions experts at ArganoArbela do the digging.
Here are the top 10 picks from the 2021 release (through November) in Finance Insights, Core Financials, and Globalization we’re most excited about, and why.
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- Customer payment predictions: Optimize collections processes by knowing when all of a customer's outstanding invoices are likely to be paid, as well as predicting when specific invoices are likely to be paid. A business can be proactive instead of reactive regarding collections and get a head start on the collection process when needed.
- External data for cash flow forecasting: Improve forecast accuracy by tapping into larger data sets. Customers often have external billing systems. This feature provides the ability to import data not in Microsoft Dynamics for improved Cash Flow predictions, increased accuracy and improved management of cash.
- Forecast bank balance: Improve management of cash “on-hand” and optimize business opportunities tied to cash flow by accurately projecting cash flow over a given period of time, and improving decision-making around liquidity. The cash flow forecasting capability can help companies monitor and manage their cash balances effectively and help managers make decisions that optimize opportunities in the context of their current cash position.
- Treasurer workspace: Similar to forecast bank balance, this feature adds a new workspace with all necessary elements for completing the analysis and activities treasurers require to successfully manage their organization's cash. All data relating to cash can be found in one workspace within Microsoft Dynamics 365; payment predictions on open customer and vendor orders and invoices are included. Increase oversight of cash flow for a company’s treasurer and improve forecasting and reporting.
This release in core finance is focused on incorporating capabilities into the cash flow forecast and continuous enhancements across all financial areas.
- Adjustment wizard for asset leases: Streamline the adjustment process for parent leases and prevent errors and easily make changes to existing asset leases. Accurately track asset leases if they change due to lease terms being modified, the lease is extended, or other circumstances change. This tool makes it easy to make these adjustments.
During the adjustment process, the lease is remeasured to reflect a change in the present value of the future minimum lease payments (PVFMLP). If the PVFMLP increases, the journal entry is created that will be a debit to the right of use asset account and a credit to the lease liability account for the difference between the new PVFMLP and the previous PVFMLP. If the PVFMLP decreases, the journal entry will be a debit to the lease liability account and a credit to the ROU asset account for the difference.
Workflow is supported during the adjustment process and asset lease versions are maintained so a user can see the revision history.
- Create collections activities based on payment predictions: Save time by setting up a consistent strategy for your collection process. Users now have an automated tool to reduce the amount of time spent researching customer invoices and determining collection activities to help your business get paid faster. Leveraging the customer payment predictions, the system can create collection activities automatically. In addition, by leveraging the collections process automation, emails can be sent to customers based on a schedule or other variable (e.g., send an email if the payment predictor is above a certain %).
This release focused on delivering localization for Egypt, general availability of the Electronic Invoicing Add-on, public preview of tax service, and several other highly requested features.
- Tax – using packing slip date as tax calculation date: Many countries or regions have frequent tax rate changes, and the tax rate in the system should correctly reflect changes. This release provides faster, more accurate tax rates across multiple countries and regions by focusing on packing slip dates (actual ship dates) as the deciding metric, tax rate changes are both timelier and more accurate.
- Electronic Invoicing (general availability): There's electronic invoicing requirement in a lot of countries, and without implementing electronic invoicing, companies risk compliance issues, unnecessary costs, and lagging behind competitors. Remove the paper invoicing processes on a global scale to help speed payments and improve data accuracy with this release. Electronic invoicing is growing in importance, and the world is shifting to paperless document processing. This feature covers new EU requirements for electronic invoicing.
- Invoicing – improved Natura codes handling in Fattura PA electronic invoice: This release is specific to the Italian invoice processing and extends the possibility to setup Natura codes (relevant to tax exemption) in Microsoft Dynamics. Covers a gap in standard functionality and reduces possibility for error in sensitive tax materials.
- French, German, Austrian, Belgian, Danish, Dutch, Estonian, Finnish, Norwegian and Spanish: Customers with offices in one of these regions no longer need to solve localization issues “outside” Microsoft Dynamics. Now you can enable global scenarios where you need to create electronic invoices in different country-specific formats within one legal entity. This speeds-up processing, and adheres to new EU requirements
To view a complete list of Microsoft Dynamics 365 Finance 2021 release wave 1 and 2 updates, download the factsheet.
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