Get started with Global Inventory Accounting Add-In in Dynamics 365 for Supply Chain Management

Posted on: March 30, 2022 | By: Guy Logan | Microsoft Dynamics AX/365, Microsoft Dynamics Manufacturing

Many companies choose to expand internationally because it gives them access to a larger market and typically improves financial results as companies then have access to new talent pools and lower manufacturing costs. As more and more companies go global, these international organizations are under increasing pressure from authorities to comply with local and global accounting standards. The Global Inventory Accounting Add-in for Microsoft Dynamics 365 Supply Chain Management allows companies to use multiple costing ledgers to do inventory accounting. Therefore, those organizations can comply with multiple accounting standards and internal management accounting at the same time.

This blog will outline what global inventory accounting is and how you can set up and integrate the Microsoft Dynamics 365 Global Accounting Add-in that will improve the efficiency of complying with multiple accounting standards and internal management accounting at the same time.

 What is Global Inventory Accounting?

Global Inventory Accounting allows organizations to account inventory in multiple representations by applying the appropriate valuation method (standard cost, average, or specific identification) and the selected accounting currency per instance. Global Inventory Accounting enables organizations to report inventory statements and subledger accounting values (also known as the inventory balance and the cost of goods sold) in what is often referred to as dual valuation and/or dual currency.

Inventory accounting is done in individual ledgers. Several Global Inventory Accounting ledgers can be created for each legal entity in an organization, as required. Therefore, multiple inventory representations can be obtained. All documents that are posted in a legal entity (such as purchase orders, sales orders, and transfer orders) will be accounted in all the costing ledgers that are associated with that legal entity.

A Global Inventory Accounting ledger is defined by a combination of the following elements:

  • Calendar
  • Currency
  • Exchange rate table
  • Convention

Install the add-in

Follow these steps to install the add-in so that you can use Global Inventory Accounting.

  1. Sign up for the Global Inventory Accounting public preview.
  2. Sign into Lifecycle Services (LCS).
  3. Go to Preview feature management.
  4. Select the plus sign (+).
  5. In the Code field, enter your add-in beta key for Global Inventory Accounting. (You should have received your beta key by email when you signed up.)
  6. Select Unblock.
  7. Open the LCS environment where you want to add the service.
  8. Go to Full details.
  9. Go to Power Platform Integration and select Setup.
  10. In the Power platform environment setup dialog box, select the checkbox, and then select Setup. Typically, setup takes between 60 and 90 minutes.
  11. After setup of the Microsoft Power Platform environment is completed, on the Environment add-ins FastTab, select Install a new add-in.
  12. Select Global inventory accounting.
  13. Follow the installation guide and agree to the terms and conditions.
  14. Select Install.
  15. On the Environment add-ins FastTab, you should see that Global Inventory Accounting is being installed. After a few minutes, the status should change from Installing to Installed. (You might have to refresh the page to see this change.) At that point, Global Inventory Accounting is ready to use.

Set up the integration

Follow these steps to set up the integration between Global Inventory Accounting and Supply Chain Management.

  1. Sign in to Supply Chain Management.
  2. Go to System administration > Feature Management.
  3. Select Check for updates.
  4. On the All tab, search for the feature that is named (Preview) Global inventory accounting.
  5. Select Enable now.
  6. Go to Global inventory accounting > Setup > Global inventory accounting parameters > Integrations parameters.
  7. In the Data service endpoint and Global inventory accounting endpoint fields, enter the URLs from the email that the Global Inventory Accounting team sent when you signed up for the preview.

Global Inventory Accounting is now ready for your company to use.

Next Steps

If you are interested in learning more about the Global Inventory Accounting Add-in in Microsoft Dynamics 365 for Finance, contact us here to find out how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8817.