By Joel Pierre, Dynamics 365 Consultant
In my past life, I worked at a logistics company that used QuickBooks Online. Half of my day was spent consolidating net statements for our business partners by collecting payables and receivables across customers and vendors, and in multiple currencies! If I rushed to do everything I needed to do, I found that I still might have missed a debit memo from the global account for Customer A when consolidating Company A (USD) Customer/Vendor with Company A (CAD) Customer/Vendor. Very frustrating!
In the logistics industry, it is common that a company who you do business with might be both a customer and a vendor. With invoices and credits flying around, keeping track of who owes what and when can be extremely complicated in a standard AR and AP ledger.
With the original release of Microsoft Dynamics 365 Business Central, two of my headaches were already alleviated! A cloud platform and superior multi-currency support to set up rate tables directly from the bank of your choice. Within QuickBooks Online (QBO), foreign currency transactions do exist, but like most QBO features it is one size fits all. Aggregated from sources unknown, QBO inputs an exchange rate that at times disagreed with every source that I would cross reference it with. That, coupled with multiple currencies not being able to live within the same entity, proved quite problematic. So long as your bank of choice publishes their rates online, Business Central can use those rates for your exchange gain and loss.
But it seems Microsoft has answered yet another one of my prayers with the most recent release plan for Dynamics 365 Business Central 2022 Wave 1: the ability to manage customers/vendors on their terms. In logistics it is common for small amounts to go in both directions between partners. Keeping track of these exchanges is vital to having a good working relationship with those overseas partners. With this new netting feature, payment journals can be created with data from both your customer relation and your vendor, ensuring an accurate payment across relationships (hooray!).
Another excellent use for this new feature would be when sending and receiving payments through an intermediary. For example, in the advertising industry, it is very common for payments to go through an agency to be delivered to their destination. While that is great for small vendors to receive their revenue as a customer of an agency, there are often funds going back and forth between AR/AP ledgers to the same company. Setting up the agency as a contact and managing your split concerns across ledgers is a feature most ERPs in the market do not have.
This will help firms stop doing these transactions manually and reduce the number of manual errors and time it takes to build these reports. This just adds to the many ways Business Central is already helping smaller firms automate processes.
Microsoft Dynamics 365 Business Central releases two updates every year so that as an end-user you don’t have to wait too long for the latest product releases, and that your organization doesn’t have to stop for days as you migrate to a new version. Stay tuned as we keep you updated on our other new feature releases. If you can’t wait, you can visit the Microsoft Dynamics 365 release notes for the upcoming 2022 wave 1 features.
Joel is one of our senior implementation consultants at Bam Boom Cloud based in Ontario, Canada. His background as a controller in the logistics industry helps bring real life practical experience to solving your business problems.