These days, organisations have supply chains in all corners of the world with international suppliers, long lead times, over-the-top inbound transportation costs, and expensive tariffs. In this environment, doing business in a cost effective and predictable way requires software designed to support users and their objectives. Landed costs can add 20-40% or more to the base cost of goods, and long lead times can add stress to the supply chain planning process. The complicated nature of global supply chains necessitates the use of software to control logistics and finances during the importing process.
The Landed Cost module in Dynamics 365 helps businesses by completing the following tasks to balance out their supply chain management:
- During the voyage creation, process businesses estimate landed costs.
- Share out the landed costs to various items and purchase orders/transfer orders in a single voyage.
- By recognising the landed costs during the transportation from a physical location.
- Recognise the number of accruals for goods in transit.
The landed cost module in Dynamics 365 provides users the ability to define journey templates and use them for voyages. They can track shipping containers based on estimated lead times that are automatically updated whenever an actual date is captured. The Journey Template and Auto Cost features in the Landed Cost module allow values to be defined upfront, and then simply invoke them to quickly create accurate voyages. As actual landed costs are collected from supplier invoices, and service supplier contracts are updated. These estimates can be refined over time.
How can Dynamics 365 Landed Cost Module help businesses manage their supply chain?
Gives you more accurate information
There are the direct costs associated with shipments including the cost of the transit goods, storage charges, and shipment fees. However, there are many other expected charges also that are less obvious such as insurance, duties, quality control costs, etc. The Landed Cost Module D365 gives you an accurate calculation and helps you avoid unexpected expenses.
Goods tracking Information
When the goods are moving from the outbound location to the final destination warehouse, the user gets a complete update on each step of transit. The lead time and the shipment status are identified on each leg. The user-friendly interface helps users to keep an eye to confirm delivery dates to changes in the estimated delivery date of the goods. Users are allowed to change these delivery dates according to their convenience.
Helps to reduce expenses
In the case of international shipping, the lowest-priced items are not always the best deal due to the many factors involved in the shipping process. Calculating landed costs needs businesses to look at all their expenses related to the shipping items. This helps to reduce unnecessary costs and make current costs worthwhile by increasing your profit margin.
For more information on the Landed Cost Module in Dynamics 365, please visit: Microsoft’s Landed Cost Module page or talk to one of our friendly Dynamics 365 Finance & Operations consultants.
As from Dynamics 365 Finance version 10.0.19, priority-based throttling is enabled by default.
Priority-based throttling introduces service protection settings that prevent the over-utilisation of resources to preserve the system's responsiveness and ensure consistent availability and performance for environments running Finance and Operations apps.
Priority-based throttling affects all OData and custom service requests, and new error messages/notifications/alerts?? will be sent when system health and performance are affected. When a request is throttled and a 429 error occurs, the response header will include a Retry-After interval, which can be used to retry the request after a specific number of seconds.
System administrators can setup throttling priority mapping for Azure AD applications and individual user IDs that are using OData (for example Excel add-in). However, a high priority setting will not prevent a request from being throttled if system performance is affected.
This change heavily affects all integration scenarios and 3rd party applications should be ready to receive and handle the new 429 error.
To prepare for upcoming change LCS monitoring can be used. There are two new queries available (All throttling events, Requests throttled) that show if there are any requests that would be throttled once environment is updated to 10.0.19.
Click here for more information.
The implementation of the accounting standards FASB ASC 842 and IFRS 16 created the need for additional functionality in ERP systems. To address this, Microsoft has developed a new module in Dynamics 365 Finance dedicated to the management of the leased asset.
The new features will reduce manual errors because all calculations will be performed automatically in Dynamics 365 Finance - eliminating the spreadsheets currently used. With the new release, this process is more streamlined with lease status updated automatically, right-of-use assets journals, calculations of net present value, lease interest, and future cash payments. There is also the potential to import through data entities the lease contracts making the data entry process quicker.
Asset leasing will reduce manual errors and save your users time through automatic lease status updates, right-of-use assets, holistic monitoring and analytics, and calculations of net present value, lease interest, and future cash payments.
Asset leasing features:
- Automates the complex lease calculation of present value and its subsequent processes such as future lease payment, lease liability amortisation, right-of-use asset depreciation, and expense schedules.
- Automatically classifies the lease as either operating or finance, or as a short-term lease or low-value lease. The lease classification tests include transfer of ownership, purchase option, lease term, present value, and unique asset.
- Centralises the management of lease information, such as important dates, including the commencement and expiration dates, as well as the lease’s transaction currency, payment amounts, and payment frequency.
- Helps to generate accounting entries for the initial recognition, and subsequent measurement of the lease liability and right-of-use asset.
- Reduces time for complex calculation of lease modification and automatic adjustment transactions.
- Provides posting to different layers to accommodate different reporting purposes, such as tax reports that are available in Dynamics 365 Finance.
- Complies with the accounting standards to represent leases on a balance sheet using the Balance sheet impact calculator.
- Provides audit controls over the integrity of the lease data to ensure that the posted transactions match the calculated amounts of the present value, future payments, and liability amortisation.
- Provides tools to import from or export to Excel for all lease data using data management.
- Includes features that help in preparing asset leasing reports, particularly the preparation of disclosures and notes.
- Integrates with company chart of accounts, currencies, fixed assets, vendors, journals, data management, and number sequences.
For more information, please check out Asset leasing home page - Finance | Dynamics 365 or talk to one of our friendly Dynamics 365 Finance consultants.