Understanding Microsoft Dynamics 365 Finance Budget Funds Available for Medical Device Manufacturing
In the intricate, cost-intensive world of medical device manufacturing, rigorous financial control is essential. Medical device manufacturing projects often involve a matrix of costs—R&D, material procurement, quality assurance, regulatory compliance, and more.
Microsoft Dynamics 365 Finance’s advanced Budget Funds Available feature can be a powerful tool to configure budget control to optimize financial resources.
Benefits of the Budget Funds Available Feature:
The Budget Funds Available feature offers the ability to set budget thresholds and receive alerts when budget limits are close. You can proactively define the formula that is used to calculate available budget funds.
- Smarter Procurement
- In the manufacturing process, procurement can be a significant cost. Before committing to a purchase order, you can check the available budget, preventing overruns and enabling more efficient supply chain management.
- Regulatory Compliance and Audits
- Compliance with stringent regulations is paramount in the medical device industry. With budget funds available, you can maintain complete traceability of your financial transactions.
- Medical device manufacturing involves cross-departmental collaboration from design and engineering to quality control and logistics. The Budget Funds Available feature integrates seamlessly with other functions of Dynamics 365, facilitating cross-functional collaboration.
The Mechanics of Enhanced Calculation Feature
The “Only track amounts in the budget funds available calculation” feature empowers organizations by allowing them to track budget control tables for specific document types and states through the “Define budget control parameters” page.
Now, to get the feature working correctly, specific budget control configuration options must be set in particular ways. These options are either selected or cleared in the “Budget funds available” tab of the same parameters page.
Here are the essential configurations for this feature to function optimally:
- If “Budget reservations for pre-encumbrances” is selected, you must also select “Budget reservations for encumbrances” and “Actual expenditures.”
- If “Budget reservations for encumbrances” is chosen, you must also select “Actual expenditures.”
- If “Budget reservations for encumbrances with Purchase Requisition type documents” is selected, you must also choose “Budget reservations for pre-encumbrances.”
These features only affect new documents. The amounts for existing documents continue to be tracked and shown in the budget control statistics inquiry until you change a setting in the budget funds available and activate the new budget control configuration.
If you are interested in learning more about maximizing the use of Microsoft Dynamics 365 for Finance and reinventing the way you manage your finances in the manufacturing industry, contact us here to find out how we can help you grow your business. You can also email us at email@example.com or call (312) 345-8817.
2020 Nucleus Research Report on ERP Technology