MB-300 Microsoft Dynamics 365 Topic: Finance core concepts in D365 F&O
December 19, 2022

4. General ledger integration with other modules

Hello, and welcome to this session. The general ledger module interacts with other modules in Dynamics 365 Finance and Operation Finance. Just to refer to some of them, we can say Accounts Payable, Procurement, and Sourcing. All purchase order invoices and payment transactions are recorded in the general ledger. The accounts payable clerk matches the purchase order with a recorded invoice to determine if the vendor invoice is qualified to be paid and, upon the due date, generates payments, which through the general ledger will impact cash and bank management.

The next two modules are Accounts Receivable and Sales and Marketing. All sales orders, invoices, and receipts for payment transactions are recorded in the general ledger. The following module is inventory management, which is linked to the general ledger via item groups. We can also talk about cash and bank management, where all incoming and outgoing funds are recorded in the general ledger and each bank has its own account in the chart of accounts. Therefore, this module simplifies your ability to reconcile bank statements with financial management, transactions, and periodic processing. Another module is production control. The general ledger integrates this module for posting production and estimating and actual costs during the reclosing and back flowing processes.

 The next module is budgeting. A budget plan can be generated from general ledger data, project automation, and accounting via cost and revenue accounts. Fixed Assets It is integrated with GL through acquisition or depreciation transactions. So don’t worry about it if there are certain terms that you do not know about them.It’s very important to be familiar with all these concepts because usually there are questions about this topic in MB 300 under the exam, and we will cover them later on, whether in the next session or in my next course that is upcoming.

5. Chart of accounts and main accounts

Hello, and welcome to this session. So now let’s take a look at the general ledger module and the typical processes or tasks that can be done within general ledger. The first basic configuration that we usually do within general ledger is define our chart of accounts, right? So if you see this, you are able to go to the account section. I just showed you, for example, the master accounts that already exist within the system. These are the entire accounts that the system has defined. As you might know, a main account is used to record financial transactions, balances, or totals that pertain to assets, liabilities, revenues, expenses, and owner equity. Okay? And if I click on each individual, I will see the relevant information for each one. There are several setup options or fields available for each particular account. And, as you can see, there are numerous configurations available. For example, you can define your main account, the account type (what type of account you can have), or the account category. And also, you can define what the nature of this account is—whether it’s a debit or a credit. This configuration will be used when you are creating, for example, a journal entry.

This account system employs validation rules to ensure that you enter the correct amount in the correct field. If your account’s nature is debit, you should provide the debit amount, whereas if it’s credit, you should provide the credit amount. You can also define within which legal entities an account can be used. Also, you can provide information for posting validation, and as you see here, there is a section where you can define some configuration for financial reporting for this particular account. You can also define the advanced rules within the system by saying that, for example, from this account to that account, what are the available financial dimensions that always have to be provided once a transaction or a journal entry is being created? These are being set up in the structure. If I go to, for example, general ledger in the structure, you can define your advanced role structures. Here is another concept of a chart of accounts. So what is the chart of accounts? A chart of accounts is like an index of all the financial accounts in the general ledger of a company. So if you see here, I have a few charts of accounts defined in the system.

If I click on “standard,” I will see the associated mini accounts for this particular chart of accounts. If I click on Chinese, for example, this has its own main accounts, and as you see, the names are in Chinese for Saudi Arabia. Similarly, it has its own main accounts. So, what is the significance of the chart of accounts in the FNO? Let’s go under the general ledger again. I’ll go ahead and create the ledger by clicking on it. Each individual company has one ledger set up. So within each ledger, we should always set up which chart of accounts we are using for this particular company. And as you see here, I have a chart of accounts that is called “shared.” If I click on that one, I’ll see the associated main accounts. All right, so we saw the link between the legal entities’ chart of accounts and the main accounts.

6. Financial dimensions

Hello, and welcome to this session. There are several other setups that you can do within your general ledger. So another basic setup that we usually do within the environment when we are starting to implement an ERP is defining our financial dimensions within an organization. So, if I click on the financial dimension in this legal entity, this is the list of available financial dimensions, and I can easily create a new pair. My requirement was simply to select one of them, for example, to show you. If I click on the cost center, that is a good example. If we look at the values that are assigned to the cost centre, these are the dimension values that exist in the system. So once you are creating your main account as we saw together, you can define, for example, advanced rules saying that, “Hey, if this particular main account has been selected, I would like to know what is the cost centre that is assigned to that particular account as well.” So the combination of the main accounts and financial dimensions usually allows you to overview your financial transactions from different angles.

7. Currency set up

Hello, and welcome to this session. Another configuration that can be set up within the general ledger module is currency setup. You can define different currencies within the environment. There are a lot of fields and settings that you can set for your currency in the system. And not only that, but you can also define your currency exchange rates within the system. You can define your ledger currency and also have different reporting currencies in the system. You can define them yourself in the system. Or you can import the exchange rate from exchange rate providers such as the Central Bank of Europe or the Central Bank of the Russian Federation.

8. Fiscal Calendar Setup

Hello, and welcome to this session. In this session, we’re going to discuss the calendars and how to create a new fiscal calendar. within the fano product. You can create calendars within the general ledger module. If you go to the calendars area, as you see here, you can have, for example, a fiscal calendar within the system, and the tool allows you to define as many calendars as you would like to have within the system, which can be used for any type of typical process within the system. For example, in this particular environment, we have several calendars defined in the system. As you see, for example, we have the Chinese fiscal calendar or even the Indian fiscal calendar. I will take the regular one, which is called fiscal in the system, and you see that it has several years associated with it, and each individual fiscal year has a start date and an end date. These can vary based on your own needs and the definition of the fiscal year within your organization.

 So it’s not always mandatory to start it on January 1. It depends. Some companies started on November 1; some companies started on April 1. It’s up to your organization’s needs. So once you’ve created a fiscal year within the calendar, you can always create a new year. If you would like, you can click on this one, and the system will calculate the last end date and start the new year the day after the last year’s end date. And also, it suggests to you what fiscal year name you would like to give the new year. For this one, it detects that the last one was 2021. So the next one will be 2022. Now, if I click on the Create button here, the system will create the new fiscal year as well as copy the existing periods that existed in the previous year.

And it’s going to create for me the same configuration. Now let’s run a scenario together. Imagine we are the accounting manager of a company, and we would like to define a new calendar in the system. This organisation that we are working for usually has four quarters, which means that we should create a new calendar with a fiscal year that includes four quarters. Let’s see how we can do it. We’re going to go to the fiscal calendars. We’re going to go to the new calendar. I’m going to call this calendar a demo. I call it a demo calendar. And the first day of the year is January 1, and the last day of the year is December 1, and the fiscal year is 2020. Now, we should do a small calculation here, right? We say that we’re going to have four quarters in here, which means that each quarter will have three months, right?

So this is the length of each period. So it’s going to be three months per period, right? Now I click on Create, as you see, and the system has created a calendar called Demo, which has just one fiscal year for now. This fiscal year includes four operating periods, as you see here. So I have period 1, which is divided into quarters one through four. And each one includes three months. So the first operating period starts from January 1 until March 31, and the next period, two, starts from April 1 until June 31, right? And the list goes on. Every fiscal year will undoubtedly have an opening period, which is period zero in any case, and the type is opening. And the start date is the start date of the fiscal year. The start and end dates in this scenario are January 1, 2020. In addition to having the last period as a closing, which is also the start date, The end date is exactly the end of the fiscal year. And we’ll be at the end of December in our scenario. 

9. General Journal Overview

Hello, and welcome to this session. One of the most common sections used within the general ledger is journal entries. You can access your general journals here, set them up, and create new journal entries as needed. And then, in here, there are certain steps that you have to follow. I’m just demonstrating it to you. If I click on the lines in here based on the accounts that I’ve defined in the system, I’m able to choose any account type. For example, if I choose ledger as an account and if I put, for example, any existing account in here, let’s just choose this one. You see that the business unit and department are being populated in here, saying, “Hey, once you’ve chosen this particular account, please provide the business unit, financial dimension, and department as well.” And here I will pick an example home and department, let’s say sales and marketing.

Right now my account configuration is done; now I have to provide my debit or credit amount. I just put, for example, $1,000 as a debit, and then here I can provide my offset account. Let’s say I would choose another ledger account; let’s say I would choose my safe drop. And as you see, the first financial dimensions are being populated here as well. So these are based on the rules that have been defined within the system, and once you have completed your line, there are other set-ups that you can make on that particular line. If you go to general, let’s say there are other things you can provide, whether it’s just a sales tax group or you want to change the currency and legal entities offset company for invoices, for example, you have other configurations such as a posting profile for the invoice section. If you have an invoice number, enter it here.

What are the terms of payment, such as cash cards, cash on delivery, or others that are being defined within the system? You can also set up your payments, what the methods of payments are, the payment fee, fixed assets, and if you want to have a remittance. You can provide all those configurations in these tabs. For now, let’s just focus on the first section, which is the basic set up.When we do, for example, when we are creating a journal voucher line, these are the minimum details that we should provide to create a journal voucher and post that journal. So there are a lot of available actions on the action panel that you can run on your journal vouchers, such as once you’re happy with your line, you can post it, or before even posting it, there is a validation or simulation of the posting available for you. It validates whether all the rules are being followed or not, and it tells you for now.

Let’s just take a look at how it gives us the alert or the warning if there is anything. For now, as you see, it says that the operation has been completed and the journal is okay. So apparently we followed all the rules in here, and now we are ready to post our journal voucher. So now what I’m going to do is post this voucher to see how the action is being done. So I’ll click on “post” and voila. So, as you see, my journal is being posted. So this is the number of my general journal, which is this one. I’ll go back to my general journal. First of all, if I refresh my page, this line should disappear from the one that has not been posted one.If I want to find out if it’s posted or not, I have to click on “posted.” If I go to the bottom of my list, I’m able to find the journal that I just posted, and the modified by is being updated because the list always shows you who has done the modification.

10. Recap of General Ledger Tasks and Processes

Hello, and welcome to this session. So within this session, let’s recap all of the typical processes that can be performed within the general ledger module. As we see, you can prepare preclosing reports within the general ledger and create electronic documents. You can also process closing transactions, allocate transactions, maintain ledger accounts, close books, close periods, convert accounting currency, allocate cost and income, consolidate transactions, and forecast cash flow and requirements. All right, so this is a recap of all the tasks that can be performed within the general ledger module. I included them because there would almost certainly be a question about these tasks. Even though Microsoft is not expecting you to know all the details of each process, at the very least, at a higher level, you should know what you can generally do with it.

11. Accounts Payable Overview

Hello, and welcome to this session. If we look into Accounts Payable module, there are several tasks that can be performed within this module. For example, we can manage our vendor accounts through the Accounts Payable module, and we are also able to manage our purchase orders. You’re also able to manage our invoices, and at the end, we are able to manage vendor payments within the Accounts Payable module. Now let’s look into more details for each area. For example, within vendor management, you can create or modify vendors or vendor groups in the system. Within purchase order management, you can create purchase orders; for example, within vendor management, you can create or modify your vendors or even vendor groups. Within purchase order management, you can create purchase orders or purchase order agreements.

You can also prepare prepayment invoices and a prepayment overview. In invoice management, you can enter vendor invoices manually or receive them electronically through a data entity. After the invoices are entered or received, you can review and approve the invoices by using an approval journal or the vendor invoice page. You can use invoice matching vendor invoice policies and workflow to automate the review process so that invoices that meet certain criteria are automatically approved and the remaining invoices are flagged for review by an authorised user. You can also resolve discrepancies during invoice total matching. You are also able to set up default offset accounts for vendor invoice journals and an invoice approval journal. Within vendor payments, you can define vendor payment terms and fees. You’re also able to create vendor payments by using a payment proposal. You can also set up and generate positive pay files. Another task that you can perform in this area is creating vendor payments. You can reverse a vendor payment and settle a partial vendor payment for a partial amount. 

12. Create a new Purchase Order

Hello, and welcome to this session. In this session, we’ll take a look at how to create a purchase order within the system. So I joined the USMF. Legal entity. I start with the Accounts Payable modules. Click on the Accounts Payable module. As you see here, similar to the rest of the modules that we’ve viewed so far, the same concept exists here.

We have workspaces; we have several sections. This is the vendor management that we talked about with all of the vendors. You can always access your existing vendors in the system. You can create a new one, you can edit the existing one, and there are several other actions that you can do within this view of the accounts. For example, I’m able to create a purchase order for this individual vendor account by going to Procurement and clicking on the purchase order. So let’s do it together. A new purchase order has been created for me. If I open the Purchase Order Header tab, you will be able to see the header information that has been set up in here for me. The vendor account has been selected as the one that we’ve selected from the list. You can easily insert your purchase order lines here. For example, I will just choose one of the items that exist in the system. I’ll choose the Surface Pro. So my item has been added to the line, and as you see, the site is a mandatory field and I have to provide for each side.

I’m creating this purchase order, and for now I’m going to go ahead and choose the distribution, and if there is any warehouse associated with that side, I would select that warehouse as well. For now, I just chose 21, and then you can identify your quantity. I’m ordering ten Surface surface pro.One system allows you to define multiple units of measure. For now, I just leave it as each EA, and you see that I have it set up in the system so that I can choose, for example, a dozen pieces or a pair based on the item that I’m selecting. I just leave it as each unit price is populated based on the trade agreement that has been configured in the system, or sometimes even on the individual product item.

 If you go, you can have a default price anyways, and the system will calculate and populate the price based on the setup that you’ve done in the system. So once I’ve added this line to the purchase order, I click on “Save,” and my purchase order gets created. So now, if I close this and return to my account, I can come back here and again. I can click on the same account, on the same vendor account, and I would like to see what purchase orders have been created for this particular vendor account. I can go to the related information, PurchaseOrder, and click on all purchase orders. So, as you see, there are several purchase orders for this individual account. And if you’ve noticed, the first one is the one that we just created together. And several pieces of information have been highlighted in this list for us. If you click on the Purchase Order link, you will be redirected to the Purchase Order that we just created together.

13. Generate Purchase order invoice

Hello, and welcome to this session. Before starting to generate an invoice within the system, let’s become familiar with the typical process for generating an invoice.

Okay, so after the purchase order was created, it should be approved and confirmed by the authorised people that are defined in the system. Then, after you’ve received your products, you should create a product receipt for your purchase order. At this moment, you are ready to generate an invoice against your product receipt. And at the end of the whole process, you can post it. Okay, so now let’s do it in the system. Let’s go back to the purchase order that we just created together. I’m going to go to Accounts Payable and go to Purchase Orders, all Purchase Orders. And there it is. You see the last one, the number 39 purchase order, is the one that we just created together, and the status is approved. It means that it’s already approved and ready to be processed. So what I’m going to do is click on the purchase order, and based on the process that we just reviewed together, we said that the first step is that the purchase order has to be confirmed by the authorised person.

So let’s say that I am the person who is authorized to confirm it. I’ll go to the Purchase tab and then to the Actions section, where I’ll click on “Confirm Operation Completed.” And as you see, the status has changed to confirm. Right now, we are ready to receive our products. Imagine that the dates have passed and I’ve received my product. I’m going to add an Account Payable to the Receivable. And this is where I should create my product receipt. So I’m going to go ahead and click on “Product Receipt.” Here I have to give the product receipt a number.

So I’ll give PR one to three, and then click on the lines that I want to appear on my receipt. And if you have any other details, you can provide them here. I don’t have anything. I just wanted to show you, for example, the Deliver remainder or any other different statuses because you can receive, for example, instead of the 100 quantity that I initially had for my item number, let’s say, 90, right? So you can say you delivered the remainder; for example, ten in the case where I received 90 out of 100. So I click on “Okay,” and for now, I’m not going to change anything.

I just clicked okay, so my product receipt has been generated, and the product receipt generator has been turned off. Now, if I want to see the product receipt that I just generated, I can click on go to the journal under the receipt, go to the journals, and select Product Receipt, and I’m able to see the product receipt that I just created it.

And this is the number that I have. If I want to see the lines, I go here, and I see the standard cabinets. Right, I’m going to close this out. So now that we have confirmed we have created our product receipt, we are ready to create our invoice. I’m going to go to the Invoice tab and click on Generate Invoice. My invoice page is ready now, and I can provide my invoice number. I say PIV for purchase order and one, two, three. As an invoice number, I see my items being added to my lines as well. So I clicked on “Save.” You’ll notice that my invoice has been generated with the PIV 1-3 invoice number that I just assigned to it. So based on the policies that you’ve set up in the system, you might be asked to match the product receipt. So at this moment, I’m going to click on the “Match Product” receipt, and I would say that the product that I received matches the product receipt that I had. It was initially 100, and I’m still receiving 100 of the items. So that totally matches. I say okay. So I’ve done the Match product receipt, and I will update the Match status. At this moment, I’m ready to post my invoice. As you can see, the vendor invoice posting process is now complete.

14. Accounts Receivable Overview

Hello, and welcome to this session. Let’s learn a little bit about the Accounts Receivable module. If we look at the Accounts Receivable module, there are several tasks that can be performed within this module. You can manage customer accounts in the system; you can manage sales orders and orders in the system; you can also manage customer invoices and payments in the system. Now let’s look in more detail at each area. In terms of customer management, you are able to create or modify customers in the system. You can also set up and maintain customer posting profiles in Sales Order Management, and you are able to create sales orders or sales order agreements based on your needs in your organization. You can create a picking list or packing slip for a sales order once you are shipping the goods to your customer. In invoice management, you can create customer invoices that are based on sales orders or packing slips.

You can also create free-text invoices that are not related to sales orders. You are able to correct a free text invoice if there is any adjustment needed. You are also able to set up and process recurring invoices. In terms of payment management, you are able to receive payments by using several different payment types, including bills of exchange, cash checks, credit cards, or electronic payments. You can configure credit cards for authorization and capture payments, or you can set up a single Euro payments area for a direct debit mandate. The single euro payments area, or Sepal, is set up by the European Commission and dictates that all electronic payments are considered domestic, regardless of the country or region where the individual business organisation and the bank are located. There is no difference between national and cross-border payments.

Bespeak includes the 28 European Union member states as well as Iceland and some other countries that they have already listed. Over here, the customer signs a mandate that authorizes the creditor to collect a payment and instructs the customer’s bank to pay the collection. The customer can issue the mandate in paper form or electronically by default. The mandate expires 36 months after the last direct debit is initiated. You can use centralized payments to record payments on behalf of other legal entities in a single legal entity. If your organisation includes multiple legal entities, that’s okay. You are also able to distribute transaction amounts and use sub-ledger journal entries for free tax invoices. You can handle customer payments for a partial amount. Also, you are able to priorities payments that are received from a customer and settle them according to configured rules. So those are the tasks that can be completed in the Accounts Receivable Module. You.

15. Create a new Sales Order

Hello, and welcome to this session. Now let’s explore the Accounts Receivable module within the system. I am a member of the US MF legal entity. I’m going to go to the Accounts Receivable module. As you see, similar to the rest of the modules, these are the sections that we are able to see in the workspace. Don’t forget about these workspaces. They’re extremely useful, and it provides you with a desktop where you can find everything you need for that specific module. But now, just for practise purposes, I’m going to just go ahead and show you different sections.

So within the customer section, that’s where you can define and create your customers within the system. I’ll click on it so that you can see the list of customers, and that’s how you can see if there are any customers that are on hold. For example, if they have bad credit and you put them on hold for that reason or for any other reason, you can put them on hold. You can see the list of those within this area, and this shows you the list of the customers that are on hold or even if they are past-due or unmerged customers. Then, under the orders section, you are able to see all the sales orders that are within the system and any other respective information for the orders. I now just click on the sales orders here to show you the existing sales orders that are within the system. Okay, for practise, let’s just go and create a sales order together.

 I’m going to do it in the same way that there are several landing pages where you can go to create your sales order, whether you go into the old sales order and click on the new button here, or you can go directly to your customer and create a sales order from there. That would be a little bit easier because once the sales order gets initiated, the customer information will be populated on the page. I’m going to show you what I mean by that. Let’s go and pick one of the existing customers. For example. For the time being, I’ll go with the Contoso retail store in San Diego. I’ll click on the US one, and as you see here, the customer information gets loaded for me with all the things that I’ve already done within the system. From here, as you see in the action pane, I have several tabs available for me.

For now, I’m just going to go ahead and click on the Sale tab and click on the sales order because we would like to create a sales order directly. So I’m going to click on the sales order. So, as you see here, my sales order header has been created with the information that was populated based on my account. For example, the customer account gets populated in here, I see the name in here, and the sales order number has been created because we have a sequence number set up for the sales orders in the system. Now I’m going to go ahead and create my lines as well. For now, I’m going to pick one of the item numbers that exist in the system. I’m going to choose 1000 Surface Pro, and the quantity initially is one; I can change it to any quantity that I would like. From which side am I going to deliver this? So I’d say I’ll take the production of home speakers and choose a warehouse from which to do so. I used suborn, and the unit price hasn’t yet populated because it does not have any initial pricing.

 I would just give a price that I know is, for example, $1,000. And if I want to give any percentage discount, I can do it here. But there are several other ways to manage discounts more centrally for different customer groups and different item groups, and several ways exist for that. For now, I’m just going to give a manual discount here. For instance, 20% off So System does a little math to calculate the net amount, which is the original amount minus the discount amount. The original amount was the quantity multiplied by the unit price, which is 15. Multiplying by a thousand yields the original amount of 15,000, from which 20%, or 3000, should be deducted. And ultimately, the net amount is being calculated as 12,000 net amount. Now, I’m going to go ahead and click on the save button to save the sales order I generated. You.

16. Generate Sales Order Invoice

Hello, and welcome to this session. So now we want to practice how to generate an invoice. Okay, this time I’m going to look into accounts receivable. Instead of going to the customer, I’m going to go to all sales orders under the orders section, and I wanted you to get the family year for this type of sales order creation as well. I’m going to click on the new button here, and it’s going to ask me to provide some information, such as a customer account. I’ll set up a customer account for the forest whole sales, and you can provide any other information you want. For me, I just leave it as is and click on “Okay.” At this moment, what I’m going to do is create my item number.

But don’t forget that you can provide any extra information that you might have at the time of order creation, such as a customer reference, a customer request, even a confirmed ship date, or any other type of information. You can always provide that information at this level. So I’m going to go ahead and add my lines in here. I’m going to choose my speakers and order, say, sales, or I’ll create two quantities, and depending on which side I go with site home speaker production, I’ll leave the warehouse with a finished goods unit price of $500. I’ll give a little bit of a discount to this customer—let’s say 10%—and the net amount gets calculated. I’m going to click on “Save.” So now I’m able to go and generate my invoice. I’m going to go ahead and generate my invoice. As you see the parameters here, as a default, it always gets popped up by peaked as a default value for quantity, which is why I do it that way.

I wanted to show you that you wouldn’t be able to see the lines of the sales order that you are trying to create an invoice against, and for that reason we should just change the quantity to all so that we are able to see all the lines that are within the sales order. I’m going to click on the lines that I would like to create an invoice for and click on OK. It says that you’re about to post the document without printing it. Select. OK. To continue, I would say yes. So, as you noticed, the operation is complete and my invoice gets generated. Now, if I go to the invoice and click on it, you’ll notice that the generate invoice button is disabled. Now, because there is already an invoice for this particular order, if I click on the invoice, it will take me to the invoice. So this is the invoice that was generated. If I click on it, I’m able to see the event lines that are associated with that invoice. And this is the voucher number that has been generated for this particular invoice.

17. Cash and back management Overview

Hello, and welcome to this session. So let’s see: what are the tasks that can be performed within the cash and bank management module? You can manage letters of credit and import collections for the purchase and sale of goods across international borders. You can manage letters of guarantee to manage agreements by bank, who is the guarantor, to pay a set amount of money to someone who is the beneficiary, and you can perform bank reconciliation by importing bank statements and using matching rule criteria to automatically select transactions for reconciliation, saving accountants a significant amount of time.

You can also deposit and transfer bank funds, cancel wrong deposits, update and maintain bank balances, define check formats, and, at the end, use the cash flow forecasting tools to analyse upcoming cash flow and currency requirements so that you can estimate the company’s future need for cash. If you take a look within the system in the Cash and Bank Management area, you will see that in this area we have a lot of sections available. You can define and set up your bank accounts within the system, similar to what we have here. If I click on any of the bank accounts listed here, I see that you’re able to provide whatever information there is regarding your specific bank account. You can enter them here, and they will be used by the application. So there are several things you can do with your bank accounts here, right?

First of all, you can access any related information within the system for each particular bank account. Deposit slips, customer payments, and checks are all available. For example, if I click on this one, you’ll see the checks that are in the system for this particular bank account and their status. All are paid into the system. And also, there are several setups that you can do here. For instance, you can set up prenotes or you can set up checks. You can even define your layout. You can configure them and even define the signature and other check-related information. The next functionality that is available within the system is bank statement reconciliation. This is where you receive your bank statement and want to reconcile it with the transactions that you already have.

 It is here. So you can import your bank statement into this area; you’re doing so now. Once you’ve done it, you will have your bank transactions available in here, and you can then reconcile them within the area that Dynamics 365 Finance has provided to you. There are other available features within the cash and bank management modules, such as letters of guarantee and letters of credit. So what are letters of credit? Letters of credit are bank documents that are commonly used for the purchase and sale of goods across international borders, and they are used for international transactions to ensure that payments will be made. A letter of credit is an agreement that is issued by a bank in which the bank agrees to ensure payment on behalf of the buyer if the terms of the agreement between the buyer and seller are met. Actually, a letter of credit is also referred to as a documentary credit. Okay, so you have two types of letters of credit. We have both imports and exports. For an import letter of credit, the organisation is the buyer or the applicant.

Whereas for an export letter of credit, the organisation is the seller or beneficiary of the letter of credit. So usually we have some parties that are involved with a letter of credit, such as the applicant who intends to pay for goods, the beneficiary, who is the seller who will receive the payment, the issuing bank that issues the letter of credit, and the advising bank that carries out the transaction on behalf of the applicant. Now, what is a letter of guarantee? A letter of guarantee is an agreement by a bank—the guarantor—to pay a set amount of money to some person who is the beneficiary if a bank customer who is the principal defaults on a payment or an obligation to the beneficiary. Okay, letters of guarantee are not transferable. They apply only to the beneficiary, who is named in the agreement. The principal can require or request an increase or decrease in the value of a letter of guarantee, subject to the terms of the agreement. So, as we saw, we have a place where we can define and set up our letter of credit and letter of guarantee within the cash and bank management module.

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