Dynamics 365 Finance features

Dynamics 365 Finance is Microsoft’s new cloud Enterprise Resource Planning (ERP) application for finance leaders in medium to large organisations. Dynamics 365 Finance was previously known as Dynamics AX and Dynamics 365 for Finance and Operations.

Dynamics 365 Finance is packed with new finance-focused features and uses AI to give predictive insights that help to drive strategic financial decisions. The new financial management capabilities help finance leaders to monitor performance in real-time, predict future outcomes and make data-driven decisions to drive business growth, all of which help organisations become more efficient.  So, what are the new financial management features that empower finance leaders to maximise financial visibility and in turn, profitability? The below table highlights some of the new financial management features that help finance leaders to make smarter decisions and transform business processes.

Dynamics 365 Finance capabilities

Accounts receivable
Create customer invoices based on sales orders or packing slips. Receive payments using several different payment types.
Cash and bank management
The cash and bank management capability maintains bank accounts and the financial instruments that are associated with those bank accounts.
Expense management
Use expense management to create an integrated workflow where you can store payment method information, import credit card transactions, and track the money that employees spend when they incur expenses.
Financial reporting
Create, maintain, deploy and view financial statements. Move beyond traditional reporting constraints and efficiently design various types of reports.
Accounts payable
Automatically process invoices to enter manually or receive them electronically through a data entity. Review and approve invoices. Invoice matching, vendor invoice policies, and workflow capabilities to automate the review process.
The consolidations module includes options for consolidating multiple legal entities during the consolidation process, and for importing or exporting a company’s balance. You can also set up eliminations and post elimination journals.
Fixed assets
Set up and enter acquisition information for fixed assets, then manage them by depreciating them and setting a capitalisation threshold to determine depreciation.
General ledger and financial reporting
Define and manage the 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
Project management and accounting
The project management and accounting functionality can be used in multiple industries to provide a service, produce a product, or achieve a result.
Cost management
Cost management lets you work with the valuation and accounting of raw materials, semi-finished goods, finished goods, and work-in-progress assets. For example, you can define which inventory valuation methods, that you want to apply to products in the item model group in Inventory accounting.
Long-term planning and annual budget planning are supported through the budget plan document. Budget plan documents are tightly integrated with Microsoft Excel.
General ledger
Allocate, or distribute, monetary amounts to one or more accounts or account and dimension combinations based on allocation rules.

To help finance leaders further, Dynamics 365 Finance offers standard integration features with other parts of the Dynamics 365 family, such as Dynamics 365 Supply Chain Management, Retail and Talent, providing a full end-to-end business solution for all commercial needs.

For more information on Dynamics 365 Finance read our guide, which includes all the new finance focussed features to improve financial visibility and profitability.