Microsoft Dynamics 365 Business Central – Inventory Valuation

Course Language

English

Course Objective and Content

The Inventory Valuation course in Dynamics 365 Business Central provides you with detailed knowledge about the valuation of items and all related postings in financial accounting.

Different item valuation methods are explained, such as valuation based on the FIFO, Average, or Standard costing methods. The option to set up items without inventory valuation or to account for overhead costs is also discussed.

Subsequent changes to item values through item surcharges or revaluations are covered, as well as their impact on the items’ contribution margins. The item ledger entries and value entries are examined in detail.

You will learn how to correct incorrectly linked item transactions using the reconciliation journal.

Practical examples include setting up items, configuring inventory, setting up inventory posting, and the posting matrix.

The discussed business processes include, for example, receipts, shipments, purchases, sales, and transfer orders.

In particular, the use of the batch jobs "Adjust Item Costs" (to determine correct values) and "Post Inventory Cost to G/L" (to post values to financial accounting) will be explained. This will also cover standard costs and inventory posting periods.

This training also covers items that are created in the Assembly or Manufacturing modules: You will set up assembly items with their assembly BOMs (which can include components and resources) and work through questions about valuation and postings related to assembly orders.

For production items, production BOMs and routings, as well as work centers or machine centers, will be explained. The impact of subcontracting on valuation and postings is also discussed. Using practical examples of production orders, value entries and general ledger entries resulting from consumption postings, production feedback, subcontracting postings, and production order completions will be analyzed.

After this course, you will be able to perform the following tasks:

• Set up item cards with regard to valuation and posting
• Set up assembly items (with assembly BOMs)
• Set up manufacturing items (with production BOMs, routings, work centers, or machine centers)
• Define important parameters in inventory setup
• Set up the accounts relevant for item postings in inventory posting setup and the posting setup
• Post various item movements (receipts, shipments, purchases, sales, transfers)
• Create and post assembly orders with component and resource consumption
• Create and post production orders, considering consumption, production output, and subcontracting postings
• Use the batch jobs "Adjust Item Costs" and "Post Inventory Cost to G/L," as well as the "Cost Adjustment" tool   
• Use the revaluation journal and the reconciliation suggestion (to correct item ledger entries)

The topics are discussed exclusively from a user’s perspective, with programming questions touched on only briefly.

The course combines short theoretical sections in the form of PowerPoint presentations with detailed live demonstrations of application scenarios in the system. You will also have ample opportunity to work through your own scenarios during the training. There will be enough time for questions and discussions as well.

Course Participants

The course is aimed at users, consultants, support staff, and developers of Dynamics 365 Business Central.

Prerequisites

The prerequisites for this course are basic knowledge in the areas of financial management, purchasing, sales, and inventory in Dynamics 365 Business Central. Knowledge of manufacturing and assembly is desirable but not required.

Duration

3 Days

Dates and Times

You can find the course dates to the right of this training description or under "Training Dates."

The training begins at 9:30 AM and is expected to end at 5:00 PM.