MB-330 MICROSOFT DYNAMICS 365 FOR FINANCE & OPERATIONS, SUPPLY CHAIN MANAGEMENT STUDY by Dynamics Companions

CERTIFICATION EXAM STUDY GUIDE EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT This study guide contains all the exam prep content, including walkthroughs, practice exercises and sample questions following core courses that are recommended for the MB-320 certification.

M U R R AY F I F E

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT MURRAY FIFE

DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Preface What You Need for this Guide All the examples shown in this blueprint were done with the Microsoft Dynamics 365 Finance & Operations virtual machine image that was downloaded from the Lifecycle Services site. If you don't have your own installation of Microsoft Dynamics 365 Finance & Operations, you can also use the images found on the Microsoft Learning Download Center or deployed through Lifecycle Services. The following list of software from the virtual image was leveraged within this guide: Microsoft Dynamics 365 for Finance & Operations Even though all the preceding software was used during the development and testing of the recipes in this book, they may also work on earlier versions of the software with minor tweaks and adjustments and should also work on later versions without any changes.

Errata Although we have taken every care to ensure the accuracy of our content, mistakes do happen. If you find a mistake in one of our books—maybe a mistake in the text or the code—we would be grateful if you would report this to us. By doing so, you can save other readers from frustration and help us improve subsequent versions of this book. If you find any errata, please report them by emailing editor@dynamicscompanions.com.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Table of Contents Preface ...................................................................................................................................................................................................... 1 Table of Contents ................................................................................................................................................................................. 3 Exam MB-330: Microsoft Dynamics 365 for Finance and Operations, Supply Chain Management ................ 11 Course MB-330T01-A: Configure and use supply chain management in Dynamics 365 for Finance and Operations ...................................................................................................................................................................................... 15 Module 1: Supply Management ............................................................................................................................................. 16 Module 2: Use Inventory Journals ......................................................................................................................................... 17 Configure and work with inventory management in Dynamics 365 for Finance and Operations ............... 18 Introduction ............................................................................................................................................................................... 18 Outbound operations ............................................................................................................................................................ 24 Configure inventory dimensions ....................................................................................................................................... 29 Configure storage dimensions ........................................................................................................................................... 29 Configure tracking dimensions.......................................................................................................................................... 32 Configure serial and batch numbers ............................................................................................................................... 36 Allocate batch and serial numbers ................................................................................................................................... 40 Configure sites.......................................................................................................................................................................... 41 Configure warehouses........................................................................................................................................................... 43 Set up default order settings .............................................................................................................................................. 48 Work with journals .................................................................................................................................................................. 52 Work with reason codes ....................................................................................................................................................... 53 Work with consignment inventory ................................................................................................................................... 55 Configure item groups and item model groups ......................................................................................................... 57 Configure inventory policies ............................................................................................................................................... 64 Inventory closing and adjustment .................................................................................................................................... 67 Exercise - Create a new warehouse layout .................................................................................................................... 71 Exercise - Create a costing version, item model group and tracking number group .................................. 72 Exercise - Use a movement journal .................................................................................................................................. 74 Exercise - Use an inventory adjustment journal .......................................................................................................... 75 Exercise - Use a transfer journal ........................................................................................................................................ 76 Exercise - Use a counting journal ..................................................................................................................................... 77

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Check your knowledge.......................................................................................................................................................... 78 Summary ..................................................................................................................................................................................... 79 Module 3: Use Inventory Reports .......................................................................................................................................... 81 Use inventory reports in Dynamics 365 for Finance and Operations ...................................................................... 82 Physical inventory by inventory dimension report .................................................................................................... 88 Inventory value reports ......................................................................................................................................................... 91 Inventory on-hand mobile workspace ............................................................................................................................ 93 Exercise - Use the ABC classification report ................................................................................................................. 94 Exercise - Use the Physical inventory by inventory dimension report ............................................................... 95 Check your knowledge.......................................................................................................................................................... 96 Module 4: Create Products and Product Masters ........................................................................................................... 98 Create products and product masters in Dynamics 365 for Finance and Operations ...................................... 99 The concept of a product................................................................................................................................................... 100 Create products in Finance and Operations ............................................................................................................... 102 Default order settings .......................................................................................................................................................... 109 Defining products as not stocked................................................................................................................................... 113 Create product masters with variants ........................................................................................................................... 114 Create and configure category hierarchies and attributes ................................................................................... 122 Configure item pricing ........................................................................................................................................................ 124 Exercise - Create a product ............................................................................................................................................... 129 Exercise - Create product masters .................................................................................................................................. 130 Check your knowledge........................................................................................................................................................ 132 Summary ................................................................................................................................................................................... 133 Module 5: Create Bill of Materials ....................................................................................................................................... 134 Create bill of materials in Dynamics 365 for Finance and Operations .................................................................. 135 Introduction ............................................................................................................................................................................. 135 BOM and formula versions ................................................................................................................................................ 135 BOM line types ....................................................................................................................................................................... 138 Create a bill of materials and BOM version by using the BOM designer ....................................................... 142 Exercise - Create a BOM in the BOM Designer ......................................................................................................... 147 Check your knowledge........................................................................................................................................................ 148 Summary ................................................................................................................................................................................... 149 Module 6: Configure and Perform the Procure-to-Purchase Process ................................................................... 150 www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Configure and perform the procure-to-purchase process in Dynamics 365 for Finance and Operations ........................................................................................................................................................................................................... 151 Introduction ............................................................................................................................................................................. 151 Overview of the procure-to-purchase process.......................................................................................................... 152 Procurement scenario.......................................................................................................................................................... 156 Vendor categories and catalogs...................................................................................................................................... 159 Evaluate a vendor and put a vendor on hold ............................................................................................................ 166 Create a purchase requisition........................................................................................................................................... 172 Create and process a request for quotation (RFQ) .................................................................................................. 178 Use purchasing policies ...................................................................................................................................................... 181 Exercise - Create and process a purchase requisition ............................................................................................ 184 Exercise - Create and process a request for quotation (RFQ) ............................................................................. 185 Exercise - Create purchase policies ................................................................................................................................ 187 Check your knowledge........................................................................................................................................................ 188 Summary ................................................................................................................................................................................... 189 Module 7: Configure Vendor Collaborations .................................................................................................................. 190 Configure and manage vendor collaboration in Dynamics 365 for Finance and Operations ..................... 191 Introduction ............................................................................................................................................................................. 191 Purchase order statuses with vendor collaboration ................................................................................................ 192 Configure vendor collaboration ...................................................................................................................................... 193 Set up vendor collaboration security roles ................................................................................................................. 195 Use the Vendor collaboration invoicing workspace ................................................................................................ 196 Define the information that is shown to vendors when they respond to purchase orders .................... 198 Work with purchase orders when vendor collaboration is used ........................................................................ 199 Purchase order statuses and versions ........................................................................................................................... 202 Sharing information about consignment inventory ................................................................................................ 203 Work with request for quotes (RFQs) ............................................................................................................................ 204 Working with purchase orders in the Purchase order confirmation workspace .......................................... 206 Accessing vendor master data in the Vendor information workspace ............................................................ 208 Exercise - Set up an external role for a vendor ......................................................................................................... 208 Check your knowledge........................................................................................................................................................ 210 Summary ................................................................................................................................................................................... 210 Module 8: Configure and perform the Purchase-to-Pay Process ........................................................................... 212

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

[Missing] ......................................................................................................................................................................................... 213 Module 9: Configure and Use Agreements ..................................................................................................................... 214 Configure and use agreements in Dynamics 365 for Finance and Operations ................................................. 215 Introduction ............................................................................................................................................................................. 215 Work with trade agreements ............................................................................................................................................ 216 Create sales agreements .................................................................................................................................................... 222 Create purchase agreements ............................................................................................................................................ 227 Configure trade allowance management .................................................................................................................... 230 Configure brokerage contract management ............................................................................................................. 235 Configure royalty contract management .................................................................................................................... 238 Configure vendor rebates .................................................................................................................................................. 241 Exercise - Create a purchase agreement ..................................................................................................................... 245 Exercise - Generate and process customer rebates................................................................................................. 246 Exercise - Create trade agreements ............................................................................................................................... 250 Check your knowledge........................................................................................................................................................ 252 Summary ................................................................................................................................................................................... 253 Module 10: Configure and Use the Order-to-Cash Process ..................................................................................... 254 Configure and manage the order to cash process in Dynamics 365 for Finance and Operations ............ 255 Order to cash process ......................................................................................................................................................... 255 Create and confirm sales quotations............................................................................................................................. 257 Sales order entry scenarios ............................................................................................................................................... 265 Sales order picking processes .......................................................................................................................................... 272 Configure order promising ................................................................................................................................................ 278 Configure order hold codes .............................................................................................................................................. 284 Process customer returns ................................................................................................................................................... 286 Configure and use commissions ..................................................................................................................................... 295 Configure customer and item search ............................................................................................................................ 298 Exercise - Create a sales order ......................................................................................................................................... 302 Exercise - Configure and use commissions................................................................................................................. 304 Check your knowledge........................................................................................................................................................ 305 Summary ................................................................................................................................................................................... 306 Course MB-330T02-A: Use quality management, Intercompany trading and master planning in Dynamics 365 for Finance and Operations ...................................................................................................................... 309

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Module 1: Configure and Use Quality Control and Management Processes..................................................... 310 Configure and work with quality control in Dynamics 365 for Finance and Operations............................... 311 Introduction ............................................................................................................................................................................. 311 Configure quality management....................................................................................................................................... 312 Perform quality control and management processes ............................................................................................ 322 Apply inventory blocking ................................................................................................................................................... 325 Perform quarantine management .................................................................................................................................. 327 Exercise - Create and process a quality order ........................................................................................................... 331 Exercise - Create and process a nonconformance order....................................................................................... 335 Check your knowledge........................................................................................................................................................ 338 Summary ................................................................................................................................................................................... 338 Module 2: Configure and Use Intercompany Trade Relations ................................................................................. 340 Configure and use intercompany trade in Dynamics 365 for Finance and Operations ................................. 341 Introduction to configure and use intercompany trade ........................................................................................ 341 Understand Intercompany trading ................................................................................................................................. 342 Set up intercompany trade ................................................................................................................................................ 345 Process intercompany chain orders ............................................................................................................................... 355 Set up Intercompany agreements and direct deliveries ........................................................................................ 363 Exercise - Configure intercompany relations ............................................................................................................. 366 Exercise - Process a purchase order-initiated intercompany chain .................................................................. 371 Exercise - Process a sales order-initiated intercompany chain ........................................................................... 374 Exercise - Process returns in intercompany ................................................................................................................ 381 Exercise - Process an intercompany direct delivery ................................................................................................ 383 Check your knowledge........................................................................................................................................................ 384 Summary ................................................................................................................................................................................... 385 Module 3: Configure and Use Master Planning ............................................................................................................. 387 Configure and use master planning in Dynamics 365 for Finance and Operations ........................................ 388 Introduction to master planning ..................................................................................................................................... 388 Master planning considerations and setup ................................................................................................................ 394 Master planning parameters page ................................................................................................................................. 401 Create a master plan ............................................................................................................................................................ 405 Demand forecasting ............................................................................................................................................................. 411 Coverage settings ................................................................................................................................................................. 415 www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Action messages .................................................................................................................................................................... 418 Configure intercompany planning ................................................................................................................................. 419 Run plans and firm planned orders ............................................................................................................................... 423 Exercise - Firm a planned order ....................................................................................................................................... 427 Exercise - Change a planned order type ...................................................................................................................... 428 Exercise - Create and run an intercompany master plan ...................................................................................... 429 Check your knowledge........................................................................................................................................................ 430 Summary ................................................................................................................................................................................... 431 Course MB-330T03-A: Configure and use warehouse, and transportation management in Dynamics 365 for Finance and Operations .................................................................................................................................................... 433 Module 1: Configure Warehouse Management ............................................................................................................ 434 Configure warehouse management in Dynamics 365 for Finance and Operations ........................................ 435 Introduction ............................................................................................................................................................................. 435 Roles in warehouse management .................................................................................................................................. 437 Set up warehouse management ..................................................................................................................................... 438 Configure the warehouse layout ..................................................................................................................................... 442 Warehouse processes .......................................................................................................................................................... 449 Reservation hierarchies ....................................................................................................................................................... 454 Exercise - Configure warehouse management .......................................................................................................... 456 Exercise - Configure reservation hierarchies .............................................................................................................. 462 Exercise - Configure disposition codes and location directives ......................................................................... 463 Check your knowledge........................................................................................................................................................ 465 Summary ................................................................................................................................................................................... 466 Module 2: Configure Mobile Devices for Warehouse Management ..................................................................... 467 Module 3: Use Warehouse Management ......................................................................................................................... 468 Work with warehouse management in Dynamics 365 for Finance and Operations ....................................... 469 Configure mobile device .................................................................................................................................................... 469 Configure work type menu items ................................................................................................................................... 478 Inbound operations .............................................................................................................................................................. 491 Cycle counting ........................................................................................................................................................................ 496 Transfers orders and replenishment .............................................................................................................................. 501 Outbound operations .......................................................................................................................................................... 505 Cluster Picking ........................................................................................................................................................................ 512

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Exercise - Configure mobile devices .............................................................................................................................. 516 Exercise - Perform inbound operations........................................................................................................................ 521 Exercise - Perform outbound operations .................................................................................................................... 522 Exercise - Perform cluster picking .................................................................................................................................. 524 Exercise - Perform packing and containerization ..................................................................................................... 525 Exercise - Perform cycle counting .................................................................................................................................. 529 Exercise - Perform transfers and replenishment ....................................................................................................... 535 Exercise - Configure wave processing .......................................................................................................................... 542 Check your knowledge........................................................................................................................................................ 544 Summary ................................................................................................................................................................................... 546 Module 4: Configure Transportation Management ..................................................................................................... 548 Configure and work with transportation management in Dynamics 365 for Finance and Operations ... 549 Introduction ............................................................................................................................................................................. 549 Planning transportation management.......................................................................................................................... 553 Configure transportation management ....................................................................................................................... 556 Routing and transportation flows ................................................................................................................................... 569 Load building strategy ........................................................................................................................................................ 573 Transportation management engines........................................................................................................................... 574 Bill of lading ............................................................................................................................................................................. 577 Plan freight transportation routes with multiple stops .......................................................................................... 578 Reconcile freight in transportation management .................................................................................................... 581 Exercise - Set up a shipping carrier and carrier service.......................................................................................... 583 Exercise - Configure a rate master ................................................................................................................................. 584 Exercise - Create a route plan and route guide ........................................................................................................ 585 Exercise - Process an inbound shipment ..................................................................................................................... 588 Exercise - Process an outbound shipment .................................................................................................................. 592 Exercise - Set up automatic freight reconciliation ................................................................................................... 595 Exercise - Work with appointment scheduling.......................................................................................................... 597 Check your knowledge........................................................................................................................................................ 599 Summary ................................................................................................................................................................................... 599 Index ..................................................................................................................................................................................................... 601

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Exam MB-330: Microsoft Dynamics 365 for Finance and Operations, Supply Chain Management Link: https://www.microsoft.com/en-us/learning/exam-MB-330.aspx This exam measures your ability to accomplish the following technical tasks: implement product information management; implement inventory management; implement and manage supply chain processes; and implement warehouse management and transportation management and perform business processes.

Skills measured Implement Product information management (25-30%) Create and manage products •

create a product and product variants

•

create Bill of materials (BOMs)

•

identify the purpose and capabilities of the Product Configuration models

•

create and configure category hierarchies

•

create product attributes

Configure products for Supply Chain management •

create and manage inventory dimensions

•

create Item groups and Item model groups

•

create and print product labels

•

create and assign bar codes

•

configure Item coverage

•

configure product compliance processes

Manage inventory pricing and costing •

configure inventory costing

•

configure costing versions www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

•

configure and manage commodity pricing

•

create purchase, sales, and trade agreements

•

create smart rounding rules

Implement Inventory management (20-25%) Configure inventory management •

identify the purpose of inventory forecasting

•

set up inventory and warehouse parameters

•

configure and perform Quality control and Quality management processes

•

configure inventory valuation reports

•

configure ABC classification

•

configure inventory closing components

•

implement inventory breakdowns

Manage and process inventory activities •

create and process inventory and warehouse journals

•

create and process transfer orders

•

create and process chain orders

•

manage direct delivery orders

•

process quarantine orders

•

process quality orders

•

perform inventory closing and adjustments

•

apply inventory blocking

Implement and manage Supply Chain processes (25-30%) Implement Procurement and sourcing •

create and manage purchase requisitions, requests for quotes (RFQs), and purchase orders (POs)

•

create and manage catalogs

•

configure purchase order change management

•

configure and apply Vendor rebates

•

implement and manage consignment inventory www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

•

configure and test Vendor collaboration portal

•

manage over and under deliveries and delivery schedules

Implement common Sales and marketing features •

configure quotations, sales orders, and return orders

•

configure sales groups and commissions

•

configure and manage up-sell, cross-sell, discounts, and price groups

•

configure customer and prospect searches

•

implement and manage leads and prospects

•

configure inter-company Trade relations

Implement advanced sales and marketing features •

configure brokers and royalties

•

configure trade allowances and customer rebates

•

implement and process foreign trade

•

configure and process Vendor 1099

Implement Warehouse management and Transportation management and perform business processes (25-30%) Configure Warehouse management •

implement components for warehouse management

•

implement directives

•

implement inventory statuses

•

implement waves

•

implement loads

•

implement shipments

•

implement works

•

implement mobile devices

Perform warehouse management processes •

identify inventory movement processes

•

perform cycle counting www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

•

use mobile devices for inbound and outbound processes

•

implement containerization and packaging

•

process inbound orders

•

process outbound orders

•

perform cluster picking

•

process shipments

•

identify and apply the replenishment process

Implement transportation management and perform business processes •

configure container management

•

configure and manage transportation management

•

perform planning and executing of loads and shipments

•

configure and generate freight bills and invoices

•

identify and configure route and rate engines

•

configure and use dock appointment scheduling

•

perform transportation processes by using the load planning workbench

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Course MB-330T01-A: Configure and use supply chain management in Dynamics 365 for Finance and Operations Link: https://www.microsoft.com/en-us/learning/course.aspx?cid=MB-330T01 Organizations use Dynamics 365 for Finance and Operations to automate and streamline your supply chain, by modernizing business logistics, delivering timely customer response, getting ahead with predictive insights, streamlining procurement, and unifying processes from sales to fulfillment. This course discusses how to configure and use supply chain management in Dynamics 365 for Finance and Operations.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Module 1: Supply Management To configure the inventory, you should first understand daily operations of the inventory. In this lesson we first discuss inbound and outbound inventory operations. This module explains how to configure Inventory components for supply chain management processes in Finance and Operations. Lessons •

Introduction

•

Configure serial and batch numbers

•

Configure inventory breakdown

•

Configure inventory and warehouse journals

•

Configure inventory dimensions

•

Inventory closing and adjustment

•

Practice Labs

•

Module summary

In this module you learned how to: •

Perform inbound and outbound inventory operations

•

Configure Inventory parameters

•

Configure Tracking number groups

•

Configure inventory breakdown

•

Configure inventory and warehouse Journals

•

Configure Units

•

Configure Inventory dimensions

•

Configure inventory costing

•

Setup Distribution

•

Understand inventory closing and adjustments

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Module 2: Use Inventory Journals This topic explains how to use Inventory journals in Finance and Operations. Lessons •

Introduction

•

Use inventory journals

•

Practice labs

•

Module summary

In this module you learned to: •

Use movement journals

•

Use inventory adjustment journals

•

Use transfer journals

•

Use counting and tag counting journals

•

Use item arrival journals

•

Use consignment journals

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Configure and work with inventory management in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/ To perform the process of ordering, storing and using a company's inventory of raw materials, components and finished products, you must configure inventory management functionality in Dynamics 365 for Finance and Operations. The inventory journals in Finance and Operations are used to post physical inventory transactions of various types, such as the posting of issues and receipts, inventory movements, the creation of bills of material (BOMs), and the reconciliation of physical inventory In this module, you will learn how to: •

Understand inbound and outbound inventory operations

•

Configure inventory parameters

•

Configure tracking number groups

•

Configure inventory breakdown

•

Configure inventory and warehouse journals

•

Configure inventory dimensions

•

Configure inventory costing

•

Understand inventory closing and adjustments

•

Use movement journals

•

Use inventory adjustment journals

•

Use transfer journals

•

Use counting and tag counting journals

•

Use item arrival journals

Introduction Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/1-configure-inventory-management-introduction To configure the inventory, you should first understand daily operations of the inventory. In this module we first discuss inbound and outbound inventory operations.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Then you will learn how to configure inventory components for supply chain management processes in Finance and Operations and use the inventory journals. In this module you will learn how to: •

Understand inbound and outbound inventory operations

•

Configure inventory parameters

•

Configure tracking number groups

•

Configure inventory breakdown

•

Configure inventory and warehouse journals

•

Configure inventory dimensions

•

Configure inventory costing

•

Understand inventory closing and adjustments

•

Use movement journals

•

Use inventory adjustment journals

•

Use transfer journals

•

Use counting and tag counting journals

•

Use item arrival journals

Inbound operations Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/2-inbound-operations

Consider this scenario in the inbound process.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Sammy, a receiving clerk, wants to know what is expected to be received on the current day. On the Arrival overview page, Sammy can get an overview of the current tasks, and a rough estimate of quantities, volume, weight, different order types, and so on. Later, a delivery arrives at one of the inbound docks, and Sammy receives a list of the delivery. On the Arrival overview page, Sammy can perform the following tasks: •

Identify the matching receipt order and register the receipt as In progress. The lines that are required for a registration are automatically generated, and the receipt can be monitored, even though the transactions haven't yet been posted as Registered.

•

Access the appropriate arrival journal reference (that is, the Item arrival journal or the Production input journal) and identify journals that are ready for a product receipt update.

Arrival overview page The Arrival overview page provides an overview of items that are expected to arrive and the date when they are expected to arrive. As part of the arrival process, multiple sets of personal settings can be used. To open the Arrival overview page, click Inventory management > Inbound orders > Arrival overview. You can view a list of orders that are expected to be received. The overview is divided into a header and lines.

The header information is grouped by the order type, expected receipt date, and delivery destination. When a header line is selected for arrival, all the detail lines that are related to the receipt reference are selected for arrival in the line details part of the page. When all related journal lines have been posted, this information isn't shown. Users can define their personal settings on the Arrival overview profiles page.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

In our example, Sammy wants to set up a new computer at a location that will be used to receive finished goods that come from production at Site 1. On the Arrival overview profiles page, Sammy creates a new setup that is named Site 1 production and specifies the following settings. 1.

On the Arrival options FastTab, in the Range field group, enter information about a day interval and the warehouses to include in the overview.

On the Arrival options FastTab, in the Journal field group, enter a receiving warehouse, a location, and a journal name (item arrival/production input).

On the Arrival query details FastTab, in the Site field group, in the Restrict to site field, enter a site to limit the view in the overview area.

On the Arrival query details FastTab, in the Transaction types shown field group, set the Production orders option to Yes.

On the Arrival query details FastTab, in the Miscellaneous group, set the Update on startup option to Yes if the view should be automatically updated at startup.

Set the Update on range change option to Yes if the view should be automatically updated when range values are changed.

For this example, the Arrival overview profile name field on the Arrival options FastTab of the Arrival overview page is set to Site 1 production. To automatically create arrival journals from the Arrival overview page, you must define appropriate information in the Journal field group on the Arrival options FastTab. •

You must specify a journal name to create a journal.

•

If you specify values in the Warehouse and Location fields, those values are applied on the journal lines. If you don't specify values, the system uses the values from the dimension that is specified on the inventory transactions.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Items that are received from one expected receipt order On the Receipts FastTab, Sammy selects a line and then clicks Start arrival. All related lines that are in the specified range and that have a quantity to register are automatically selected. An item arrival journal is generated that has a match between the expected receipt order and the journal. The quantity is automatically initialized on all lines that are created.

Items that are received from more than one expected receipt order On the Receipts FastTab, Sammy selects multiple lines and then clicks Start arrival. An item arrival journal is generated that has a match between all the expected receipt orders and the journal. All lines are created on one item arrival journal header, and the quantity is automatically initialized.

Receive items from one or more expected receipt orders To get an overview of expected receipts in a date interval, Sammy enters the following information in the fields on the Arrival options FastTab on the Arrival overview page and then clicks Update to update the view: •

Arrival overview profile name: Inquiry

•

Show lines: All

•

Days back: (Blank)

•

Days forward: 0

•

Warehouses: 11, 13

Sammy can view the following information: •

An overview of the registration tasks that are due for all the order lines that an item arrival journal has been created for but hasn't yet been posted. To view this information, Sammy can select In progress in the Show lines field.

•

Detailed line information for more than one order. Sammy can select multiple header lines in the overview and then click Show all selected to view all the corresponding line detail information for all selected orders.

•

Information about a specific purchase order. To show only information that is related to a specific reference number in the overview, Sammy can enter an account number in the Account number field and an order number in the Reference numbers field.

•

All related receipt orders for the system date and an infinite number of days back from it, and receipts to warehouses 11 and 13, regardless of status.

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Update journals To register one or more order lines that are due to be processed, Sammy can select the lines in the overview grid or in the line grid, and then click Journals > Show arrivals from receipts. The item arrival headers that match the lines are shown. To update the purchase order product receipt for the registered items, Sammy can access the item arrival journal headers that are ready for update. To access these item arrival journal headers, he clicks Journals > Product receipt ready journals. All the header lines that are ready for product receipt update in the specified warehouse range are shown. (The header lines that are shown aren't related to the day interval).

Start an arrival registration By selecting multiple lines on the Arrival overview page, Sammy can start an arrival of more than one receipt reference. When he selects a line from the receipts overview, the corresponding line details are selected. If a quantity for registration exists, the Start arrival button is available. Sammy can use two methods to start the arrival registration: •

To filter the page so that it shows only records that meet specific criteria, in the Vendor reference field, scan a reference number from a vendor, such as the bar code for a delivery note.

•

In the overview part or the details part of the Arrival overview page, manually select or cancel the selection of records for arrival registration. Then, when Sammy clicks Start arrival, the selected records are automatically created in an item arrival journal. The records include line information, and all unique field information is assigned.

Update arrival information and process a product receipt When all goods have been registered, the warehouse manager or purchasing manager can update the received items with a product receipt to add the physical cost. To update arrival information and post a product receipt, follow these steps. 1.

Click Inventory management > Inbound orders > Arrival overview.

On the Arrival overview page, click Journals > Product receipt ready journals to show a list of the journals that are ready for product receipt update.

Select the journals that must be updated, and then click Functions > Product receipt.

On the Posting page, enter the product receipt number, if it isn't already available on the journal, and then click OK to process the product receipt.

The Arrival overview page can help the warehouse manager and warehouse workers achieve an overview of expected work that must be done as part of an inbound process. The page can also be used to start the item arrival process, to help guarantee that items are tracked at the first entry into the warehouse.

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Outbound operations Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/3-0-outbound-operations Output orders are used to link sales order lines and transfer order lines with the outbound picking processes that use picking lists. When picking lists are generated from either sales orders or transfer orders, output orders and shipments are automatically created. A picking list has a one-to-one relationship with a shipment. The transfer order shipment or the sales order packing slip can be processed from the shipment. This figure shows an overview of the process for outbound orders.

You can set up outbound rules to define how Finance and Operations should handle the outbound process. You can use these rules to control the shipment process. You can use the rules to control which stage in the process a shipment can be sent during. The following settings define how the outbound processes are handled.

Picking route status for sales and transfer orders Go to Account receivable > Setup > Account receivable parameters, and then, on the Updates tab, select a value in the Picking route status field. If the Picking route status field is set to Completed, the picking process occurs automatically as part of the process of generating picking lists. If the field is set to Activated, the picking list lines must be manually updated.

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The same setup applies to transfer orders. Go to Inventory management > Setup > Inventory and warehouse management parameters, and then, on the Transport tab, select a value in the Picking route status field.

End output inventory order Go to Inventory management > Setup > Inventory and warehouse management parameters, and then, on the General tab, set the End output inventory order option.

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When the warehouse worker reduces the picking list quantities, then the corresponding inventory order quantities will be removed from the shipment.

When the picking list is updated at a point in time, the remaining quantities get reported back to the order if the End output inventory order option is set to Yes.

If the End output inventory order option is set to No, the remaining quantities are kept as an open output order quantity and must be added to a new picking list as part of the Open output orders functionality.

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Reduce quantity The third parameter that you can use as part of the process of generating picking lists is the Reduce quantity parameter. The setting of this parameter works together with the Reservation setting that triggers a reservation process as part of the release to the warehouse.

Example of an outbound process for a sales order For this example, there is a sales order for two items. During picking list generation, you select the Reduce quantity parameter. Therefore, you release and create picking lines only for available on-hand inventory. The picking must be reported via a registration process for picking lists (Picking route status = Activated).

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The inventory that hasn't already been reserved is reserved during picking list generation. The unavailable inventory can be either removed from the sales order or released to the warehouse for outbound processing later, when inventory is available for picking. As soon as all the picking lines have been picked on the Picking list registration page, the associated shipment is completed. The process for sales order packing slips can then be initialized based on the picked inventory.

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Configure inventory dimensions Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/3-1-configure-inventory-dimensions It is important to consider how you want your inventory to function prior to setting up the inventory dimensions and dimensions. The type and number of inventory dimensions created must be a realistic reflection of how you categorize, or treat, each of the inventory items in your company. Inventory dimensions are divided into the following categories: •

Product dimensions - Help define the physical characteristics of inventory items. The available product dimensions in Finance and Operations are: Configuration, Size, Style and Color.

•

Storage dimensions - Control how items are stored and taken from inventory. By using storage inventory dimensions, you can manage inventory on a detailed level.

•

Tracking dimensions - Serial and batch numbers provide companies with the ability to trace their products through Finance and Operations, which is essential for quality assurance purposes and when you deal with warranties for a product.

Configure storage dimensions Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/3-2-configure-storage-dimensions Storage inventory dimensions represent the different ways in which items are stored in, and retrieved from inventory. This allows for inventory to be managed at a detailed level. The type of details that you apply to the creation of storage dimensions depends on your company’s needs and expectations. Consider the relevance of each dimension, especially when items have special handling needs. The storage dimensions available in Finance and Operations are: •

Site

•

Warehouse

•

Location

•

Inventory status

•

License plate

A storage dimension group must be assigned to a released product. Storage dimension groups are used to determine how inventory will be stored in your warehouse. Finance and Operations includes some inventory dimensions and options to consider when creating your dimension groups.

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Some examples might include the following requirements: •

Dairy foods must be kept cool.

•

Pharmaceutical goods must be easily identifiable.

•

Ice cream must to be kept frozen.

Scenario A bicycle company has several facilities that store and manufacture bicycle parts. At each facility, 10-speed sprockets are stored in one bin, and 12-speed sprockets are stored in another bin. However, because bicycle frames sizes are easily determined, they are not separated in the warehouse. Adult and children's frames are stored in the same racks. The company wants to ensure that an accurate count of inventory is kept for all parts.

Mandatory Select the Mandatory slider in the Storage dimension groups page is to make the dimension mandatory. A mandatory dimension appears on all journals and transactions, and you must specify a dimension value when you create an entry. The following rules apply: •

Product dimensions are always mandatory.

•

When the multisite functionality is active, the site storage dimension is mandatory.

•

It is optional whether the warehouse storage dimension is mandatory.

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

You cannot specify the remaining inventory dimensions as mandatory.

Primary stocking To set up inventory dimensions as primary stocking, in the Storage dimension groups page, select the Primary stocking slider. (If you want it to be secondary stocking, do not move the slider.) A primary stocking dimension will appear automatically on the On-hand and Reservation pages. This affects how ordered items are re-reserved upon physical item receipts. The following rules apply: •

The dimension must be specified when you are physically updating item receipts or issues.

•

When automatic reservation is active, items are reserved according to the selected dimension, providing that the dimension is also specified for the actual item transaction. This means that if the warehouse is specified on a sales order line, and primary stocking is specified, automatic reservation only reserves items at this warehouse.

•

Ordered reservations are not re-reserved upon physical receipt. If a sales order line is reserved at warehouse A and location 1, and warehouse is set to primary stocking, and location is set to secondary stocking, the sales order line does not automatically re-reserve if the warehouse is changed when the receipt is physically updated. If the location changes to 2, the order line automatically re-reserves for location 2.

Blank receipt allowed and Blank issue allowed Select the Blank receipt allowed or Blank issue allowed check boxes in the Storage dimension groups page to apply the following results: •

Blank receipt allowed - If you do not select the dimension as primary stocking, selecting this check box leaves out the specification of the dimension when physical receipts are updated. This functionality is useful, for example, when you are not specifying the serial/lot number upon input but doing so for picking and output.

•

Blank issue allowed - If the dimension is not marked as a product dimension, or as primary stocking, selecting this field leaves out the specification of the dimension when you are updating physical issues.

Physical inventory Select the Physical inventory check box to specify that the dimension is input to the on-hand inventory when Finance and Operations checks whether the item is available in inventory.

Financial inventory Select the Financial inventory check box to indicate that this dimension is part of the financial inventory.

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The parameter is of significance if you are not operating with financially negative inventory with the financial update of item issues, for example, invoice-updating in the Accounts receivable module. The system checks the financial on-hand inventory upon item issues according to the same logic described in the topic concerning Physical inventory. The Financial inventory parameter also determines how item consumption is calculated upon invoice updating, inventory closing, and cost accounting of the cost value.

Coverage plan by dimension Select the Coverage plan by dimension check box in the Storage dimension groups page to complete the coverage plan for the item individually, instead of as a group.

For purchase price When you select the For purchase price check box in the Storage dimension groups page, the search for purchase prices is based on the following rules: •

Search price for each item, product dimensions, and storage dimensions

•

Search price for each item and product dimensions (storage dimensions are blank)

•

Search price for each item (both product dimensions and storage dimensions are blank)

For sales prices When you select the For sales prices check box in the Storage dimension groups page, the search for sales prices is based on the following rules: •

Search price for each item, product dimensions, and storage dimensions

•

Search price for each item and product dimensions (storage dimensions are blank)

•

Search price for each item (both product dimensions and storage dimensions are blank)

Configure tracking dimensions Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/3-3-configure-tracking-dimensions Serial and batch numbers provide companies with the ability to trace their products through Finance and Operations. The numbers are used for the following purposes: •

Tracing

•

Quality assurance

•

Warranties

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Traceability is useful for quality assurance purposes and when you deal with warranties for a product. The tracing functionality is especially important for items representing a certain risk, such as medicine or chemicals, where defects in production can lead to the item recall. It is equally important for guaranteed items to be able to trace back to the date that the product was manufactured or sold. Serial and batch numbers allow for this kind of functionality. You can assign serial numbers, batch numbers, or both to an inventory item. Serial numbers are assigned to individual items, where batch numbers are assigned to a set of items. You can use tracking dimensions to identify and determine how items should be tracked. By using tracking dimensions, you will be able to manage the inventory on a detailed level. A tracking dimension is a required field on every product that you set up in your system. As the name implies, it is used if you need to track an item throughout its life. For example, you may assign batch numbers if there is a need to track an item back to the manufacturing of that item. Batch numbers apply to a group of items, while a serial number applies to a single item. You can also specify if the batch or serial number is a required field when you process various transactions in the system. In some cases, you may create a tracking dimension if your product requires both a serial number and batch number. You can also have products that have neither dimension assigned to the product.

Tracking dimensions are necessary when you need to act based on a recall scenario. For example, if a company has purchased some products, the vendor may have issued a recall due to some issues with the products. Upon registration of products prior to placing them in a proper location of a warehouse, you can find the products, pick them and send them back via a vendor return orders. If a company accepts consignment items from vendors, which means the products belongs to vendor unless the company changes the ownership of the product you can enable the Owner dimension and

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uses the Change ownership inventory journal. After the ownership changes then it becomes the company’s liability to process the vendor invoice and provide payment. Lot ID is the term that refers to a transaction, and not an item dimension such as serial and batch numbers. A Lot ID is assigned automatically to each sales or purchase line when you create it. The number is taken from the number sequence associated with the number sequence reference Lot No. in the inventory parameters. You cannot make transactions without a Lot ID being assigned, unlike using batch numbers, which you can either select to use or not. Serial and batch numbers are inventory tracking dimensions and can be allocated to products only when the products tracking dimension group allows for it. If you select the Serial number control parameter in the Tracking dimensions group page, Finance and Operations will only allow for inventory movements with a quantity of one. To use this functionality select the Serial number control slider for the relevant inventory dimension groups. When you are physically receiving or updating items that arrived in the warehouse, the physical on-hand quantity plus the arrival quantity cannot exceed one. Physical inventory is automatically selected to handle the control correctly, and usually the Physical negative inventory field in the Inventory model groups page is clear. Therefore, the functionality is unchanged. The tracking inventory dimensions that are used to track items on the warehouse and outside are: •

Batch number

•

Serial number

•

Owner

Trace inventory dimensions function The trace inventory dimensions function not only traces serial and batch numbers, but also provides details of all other dimension values that are associated with the item. If the parameters for tracing are specified in the Trace inventory dimensions page, you can change the Item number, Record ID, Lot ID, and Dimension number fields by clicking the Select button.

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When the Trace inventory dimensions report is run, the result displays in a tree graphic. The Format field shows the format for the transactions.

You can use the Item tracing page to find details such as transactions, associated quality orders, production orders, batch numbers and more.

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Configure serial and batch numbers Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/4-configure-serial-batch-numbers Batch numbers are assigned to groups of physical items and serial numbers are assigned to individual physical items. These numbers are then specified on the inventory transaction to identify the product that is being received or delivered. Batch and serial numbers can be used individually or together.

Scenario Batch and serials numbers are typically used when you handle food and other types of products that are consumed by humans such as pharmaceuticals. They can also be used frequently in the handling of hazardous or sensitive materials such as chemicals or items that must be refrigerated. Assume that you have a large tank that is used to produce dairy products. The tank is cleaned and emptied before each production order is started. You have produced 10,000 gallons of ice cream and then packaged the ice cream into one-gallon containers. You can use the batch number to identify the batch or tank of ice cream that is produced and use a serial number to uniquely identify each one-gallon container that is produced. By doing this, you can trace the

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exact container and the tank of ice cream that is produced even if the individual containers are spilt up around the warehouse or shipped to different customers.

Serial numbers Serial numbers can be manually or automatically assigned to products on receipt. Use manual allocation of serial and batch numbers if you want to trace the items back to the vendor. For example, when you receive chemical or medical items, make sure that you continue to use the serial and batch numbers that are provided by your vendor so that you can fully trace and recall defected items throughout the supply chain. Manual allocation of serial numbers requires you to set up the Inventory dimension group and a serial number for the specific item in the Serial number page. You can also set up serial numbers in advance. Open the Serial numbers page from Inventory management > Inquiries and reports > Tracking dimensions > Serial numbers.

Assign serial numbers You can manually assign a serial number to a product when you perform the following tasks: •

Working on a product directly on a sales or purchase order line

•

Registering the products at the time of item arrival

You can type any number directly on the line in the Serial number field. However, to have better control of the serial numbers that are used for each item, create the serial numbers for a product number in the Serial numbers page. If serial numbers are assigned manually to item transactions, and the Tracking dimension group of the item has Serial number control selected, any manually assigned serial number will be added to the Serial numbers page.

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The serial number that is specified in the Serial number field on the purchase order line is assigned to all products on the line. If Serial number control is selected for the Tracking dimension group, serial numbers must be unique for each item, and you cannot assign a serial number to the order line if the quantity is greater than one. When you enter the serial number, use the pound (#') sign to indicate how many digits you want to appear in the serial number. The minimum amount of pound signs in a serial number is as many as the number of digits in the item quantity. The Create serial numbers button always creates unique serial numbers. If you want to have the same serial numbers assigned to a quantity other than one, type serial numbers manually in the Transactions/Register now pane and use split functionality; or use a number group to auto-create serial numbers with a fixed quantity other than one unit. If serial numbers are assigned automatically, then the serial numbers that are entered on purchase or production order lines will not be added to the Serial numbers page.

Batch numbers A batch number must be created before it can be assigned to a product. Unlike serial number assignment, a batch number cannot be entered directly in the Batch number field on the order line. It must be created in the Batch number page and then selected from the line in either the sales or purchase order. To create or see batch numbers go to Inventory management > Inquiries and reports > Tracking dimensions > Batches to create tracking numbers for batch numbers which will be assigned to a product.

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Tracking number groups If you wish to use automatic allocation of serial or batch numbers go to Inventory management > Setup > Dimensions > Tracking number groups to create tracking numbers for serial and batch numbers which will be assigned to a product. To automatically allocate serial or batch numbers, you must create a number group and assign it to the item. Serial and batch numbers can be assigned to several products, sequentially from the same number group.

In the General field group, specify when and how the automatic number must be assigned by considering the following fields: •

Manual - Select to assign manual serial and batch numbers to the products that are associated to this number group.

•

Only for inventory transactions - Select to assign the generated numbers to the transaction instead of, for example, the purchase order line. The serial and batch numbers are generated and assigned when a purchase order is created. The numbers cannot be viewed from the purchase order line. However, one transaction is listed in the Transactions page, with one serial or batch number.

•

On physical update - Select to assign the generated number when a product transaction is made. This means that the serial and batch numbers are not generated until a packing slip and a picking list registration is posted. The serial numbers cannot be viewed on the purchase order line. However, one transaction is listed in the Transactions page with one serial number.

•

Per qty. - Specify the quantity of products to be assigned to the generated number. To assign unique serial numbers and batch numbers, type "1" in the Per qty. field. The Only for inventory transactions slider must be selected for this field to be active.

For example, If the Only for inventory transactions slider is selected, 25 is specified in the Per qty. field and a purchase order is made for 60 products, then three batch or serial numbers are generated when the purchase order is created. 25 products are assigned the first batch or serial numbers, another 25 products are assigned the second batch or serial number, and 10 products are assigned the third serial number.

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Notice that if the Serial number control slider is selected in the Serial numbers FastTab for a product, an error will appear if you try to post the packing slip with a product if, for example, 2 is specified in the Per Qty. field for the Serial number group. If you do not select any of these fields, one batch or serial number is assigned to the purchase order line when a new order is created and saved. Consider the following fields for automatic activations: •

Order activation - Select to enable automatic number allocation in the Accounts receivable and Sales and marketing modules. This also generates new numbers when products are returned by credit notes.

•

Purchase activation - Select to enable automatic number allocation in the Accounts payable and Procurement and sourcing modules

•

Inventory activation - Select to enable automatic number allocation in the Inventory and warehouse management module. For example, you discover five products in your warehouse that are not in the inventory. To add the products to the inventory, make a Profit/Loss journal for the five products. When the Profit/Loss journal is posted, the products are allocated serial numbers according to the settings of the tracking number group.

•

Production activation - Select to enable automatic number assignment in the Production control module.

•

Kanban activation - Select to enable automatic number assignment in Lean manufacturing.

The normal setup is to have all fields except Order activation selected, because you do not want to enable the change of serial numbers when a return action is performed. Serial and batch numbers can be updated if it is necessary. When you enter an inventory dimension on a receipt transaction, you can change the value by using a Transfer journal. A change of inventory dimensions causes a movement of on hand inventory from one dimension to another.

Allocate batch and serial numbers Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/5-allocate-batch-serial-numbers Serial and batch numbers are inventory dimensions. Therefore, assign them only to items which have tracking dimension groups where these dimensions are active. You can assign serial or batch numbers manually, or automatically, depending on whether the item has a serial number that can be scanned into Finance and Operations, or whether the serial number should be assigned based on a serial number group.

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Scenario A company manufactures bicycles by welding aluminum tubes into bicycle frames. They receive aluminum tubes from a supplier who casts the tubes in batches. Each delivery of tubes to the bicycle manufacturer is marked with the supplier’s batch number. The bicycle manufacturer creates a bicycle frame and wants to track each frame as it moves through the manufacturing and assembly process. To track the parts, the company does the following: 5.

Creates a number group for aluminum batches that allows for manual allocation of a number.

Manually enters supplier batch numbers in inventory transactions for aluminum tubes.

Creates a number group for bicycle frames that disallows manual allocation.

Enables Finance and Operations to automatically assign a serial number for each bicycle frame inventory transaction.

Configure sites Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/6-configure-sites Inventory management is the administration and management of product flow and inventory in a company’s warehouses and storage facilities. In this unit you will learn about the set up and use of sites. Sites are an inventory storage dimension and can be linked to the financial dimensions framework for general ledger integration. At least one site must be created for each legal entity in Finance and Operations, and all transactions must refer to a site. A single site cannot be shared by multiple legal entities. A company can establish logistic operations at multiple sites for many reasons. Although sites are the only required setup, we recommend that you set up the other inventory dimensions based on business requirements. Each physical inventory dimension setup provides another level of detail for storing and issuing inventory in your system. This helps provide better detailed reporting and on-hand quantities that are more specific to the physical location of the items. These might include setting up distribution centers that serve different geographic markets or setting up production facilities at a location because of reduced overhead costs, closeness to raw materials, or convenient transportation. For example, you can configure multiple sites to reflect your unique business model and support operations and process flows. Some examples of business environments where you could set up multiple sites include the following: •

A single production site that uses a single warehouse

•

A single production site that uses multiple warehouses

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Multiple production sites that use a shared distribution center www.dynamicscompanions.com Dynamics Companions

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Multiple local production sites that use a shared production site

To create a new site, go to Inventory management > Setup > Inventory breakdown > Sites

When you have created a site, you can only delete it if: •

The site is not referenced from warehouses, production resources, or other master data.

•

There is no open on-hand inventory that is associated with the site.

If either of these conditions are not true, Finance and Operations displays an error message, and you cannot delete the site.

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Configure warehouses Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/7-configure-warehouses Inventory management is the administration and management of product flow and inventory in a companyâ&#x20AC;&#x2122;s warehouses and storage facilities. In this unit you will learn about the set up and use of warehouses. A warehouse is a place that can store items. All items accounted for by the system must be placed in a warehouse. Because many parameters and policies are set up for each warehouse, you can control and differentiate the warehouse operations by defining several warehouses. Warehouses are usually a geographic location, or they serve a certain function, such as a spare parts warehouse, or finished goods warehouse. When you have several warehouses, the total on-hand inventory can be split up. All item transactions can be attached to a warehouse, that then follows the transactions throughout the system. When indicating a warehouse for a transaction, you specify the site where you can place or pick an item geographically. This means that you use separate warehouses for distinct geographic locations. In some cases, you can have virtual warehouses. This means that the warehouse might not be a separate physical building, but might be a logical separation or part of a building. This strategy can be used to meet complex business requirements. To create a new warehouse, go to Inventory management > Setup > Inventory breakdown > Warehouses

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A warehouse should not be used as a financial inventory dimension. Instead you should create separate sites.

Warehouse types When you create a warehouse, specify a warehouse type. The types as follows: •

Default - A main warehouse.

•

Quarantine - Attach warehouses of the Quarantine type to regular warehouses of the Default type. When you purchase items that are quarantine-controlled to a warehouse, they are automatically put in the warehouse of the Quarantine type that is attached to the receiving warehouse. When you end the quarantine, the items are then transferred to the specified receipt warehouse.

•

Transit - Use for transfer orders and the delivery date control function. Transit warehouses are the system-technical intermediary warehouses between the From and To warehouses, or warehouse and delivery location with the delivery date control functionality.

A warehouse could be organized into locations to keep stocked items in their proper locations. Usually in a simple warehouse, a warehouse location has a format of aisle-rack-shelf-bin. This figure illustrates a sample of a grocery store warehouse layout:

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You can specify transport times for the selected warehouse by clicking the Transport button. Transport times are used in the delivery date calculation when you use the delivery date control with transfer orders. If you do not specify a warehouse on the product, you can specify the warehouse from which the products are to be sold or purchased on the sales and purchase order header and on the individual lines. The warehouse that is specified in the header applies to all lines, unless otherwise individually specified, either on the product or manually on an order line.

Inventory aisles A warehouse is divided into inventory aisles. Inventory aisles are used to group locations. An aisle has an aisle ID and an aisle number, which can be the same. The aisle ID, typically the first part of the location name, is an alphanumeric identifier for an aisle. The letters help identify a warehouse or area within the warehouse. The aisle number is a strictly numeric identification of the aisle in the warehouse. The aisle number is used by the system when generating sorting codes. You can assign unique IDs to the inventory aisle by using the Warehouse and Aisle fields. By default, inventory aisles are sorted in ascending order. By selecting the Descending field, you can reverse the picking route for the relevant aisle. This changes the order from the highest value to the lowest value.

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Location The term location refers to the place that items are stored and drawn from. Location is the most specific indication of where the items are stored in the warehouse. For each location, the place where the item is inserted can also be specified. By default, they are the same. Items are usually inserted and drawn from the same side of a location, but not always. For example, items that are stored in live storage racks are inserted from one aisle and drawn from another. The main input is given by a location name, which is usually determined by its coordinates: warehouse, aisle, rack, shelf, and bin. This name or ID can be entered manually or generated from the location coordinates—for example, 01-02-03-4 for aisle 1, rack 2, shelf 3, bin 4 in the Inventory locations page. A location has the following characteristics: •

Size (height, width, depth, and thereby volume)

•

Warehouse, aisle, rack, shelf, and bin position

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Location type (bulk location, picking location, inbound dock, outbound dock, production input location, inspection location, or kanban supermarket)

•

Check text can be used in online systems to verify that the operator has selected the correct location for a specific item. This check text can be created manually or by default.

Usage of location is optional. If locations are used, items will be stored at locations, and the system can determine pick routes, counting operations, and so on based on locations. Items are usually inserted and drawn from the same side of a location, but not always. For example, items that are stored in a special type of rack are also known as a “flow rack”. This is where the items are inserted from one aisle and drawn from another. Together with the warehouse, these four coordinates identify exactly where an item should be or is in the warehouse: Warehouse - Aisle - Rack - Shelf - Bin The following are examples of location types: •

Bulk location - The area in the warehouse where received items are stored until the warehouse worker transports the items to the picking locations. Bulks locations are used to replenish picking locations as their stock is reduced and they are also used for picking.

•

Picking location - Where items are stored until they are picked for shipment. They are kept here to ensure easy access for picking. The picking location is used for picking small quantities of an item. An item can only have one picking location in each warehouse.

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Inbound dock - Location in the warehouse where items are received and possibly checked (this is the default if it is not specified elsewhere).

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Outbound dock - Location in the warehouse where shipment occurs (this is the default if it is not specified elsewhere).

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Production input location - Location where the finished items from the shop floor arrive.

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•

Inspection location - Location where the inspections occur.

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Kanban supermarket - Location where the inventory is controlled and processed for work-inprogress (WIP) products in a Lean manufacturing environment.

Location placement You can categorize location placement in two ways: •

Input areas - Locations in the warehouse designated for item placement in the warehouse upon receipt. Items are grouped based on similar characteristics or the order in which they are placed in their locations. You can specify the input area for a location on the General tab of the Inventory locations page. For example, items requiring cold storage would be in one input area, whereas items that can be stored in the general warehouse storage area would be in another.

•

Picking areas - Assigned throughout a warehouse to group items that should be picked at one time or by the same person. You can specify the picking area for a location on the General tab of the Inventory locations form. For example, items that require a forklift for picking and transport would be in one picking area, whereas items that a warehouse worker can pick individually from a floor level with a hand truck would be in another.

Warehouse Items After the warehouse is set up with aisles, locations and store zones, you can assign products to the warehouse. Each product can have multiple warehouse items defined. By default, the system creates a blank warehouse item when the product is saved. The product dimensions on this blank warehouse item cannot be modified. However, other settings can be updated.

For each warehouse item that you create, you can also select different options for the following.

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•

Counting group - Determines the frequency of cycle counting.

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Default receipt location - Defines the location that is used by default when the item is received.

•

Default issue location - Defines the location that is used by default when the item is delivered.

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Picking location - Defines the default location that the item is picked from.

The Default receipt location, Default issue location, and Picking locations fields are available only when the storage dimension group assigned to the item has the Location dimension activated. These fields are also not available for the default blank warehouse item that is created by the system.

Set up bar codes Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-in-dynamics365-finance-ops/8-set-up-bar-codes Bar codes can be used for many reasons such as identifying items, or locations. You can set up bar codes on your products in Organization administration > Setup > Bar codes.

Bar codes can then be printed on various documents or used for scanning products. Before you can set up the specific bar codes for a product, you must use the Bar code setup page to define the formats for a specific bar code.

Set up default order settings Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/9-set-up-default-order-settings You can use order settings to set up defaults to use for sales, purchases, and inventory transactions. The settings are used by master planning to generate sales orders, purchase orders, and inventory orders. The settings are also used when you manually create an order. The main settings involve the following areas: •

Defining a warehouse to use for each module when orders are created

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The Standard order quantity is used for retrieving the arrival handling time in the Arrival overview page.

Inventory journals Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/10-inventory-journals The inventory journals in Finance and Operations are used to post physical inventory transactions of various types, such as the posting of issues and receipts, inventory movements, the creation of bills of materials (BOMs), and the reconciliation of physical inventory. All these inventory journals are used in a similar way, but they are divided into different types. The following types of inventory journals are available: •

Movement

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Inventory adjustment

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Transfer

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BOM

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Item arrival

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Production input

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Tag counting

Movement When you use an inventory movement journal, you can add cost to an item when you add inventory, but you must manually allocate the additional cost to a general ledger account by specifying a general ledger offset account when you create the journal. This inventory journal type is useful if you want to overwrite the default posting accounts.

Inventory adjustment When you use an inventory adjustment journal, you can add cost to an item when you add inventory. The additional cost is automatically posted to a specific general ledger account, based on the setup of the item group posting profile. Use this inventory journal type to update gains and losses to inventory quantities when the item should keep its default general ledger offset account. When you post an inventory adjustment journal, an inventory receipt or issue is posted, the inventory values are changed, and ledger transactions are created.

Transfer You can use transfer journals to transfer items between stocking locations, batches, or product variants with and without cost/financial implications. That depends on the specific transfer journal line and general setup. For example, you can transfer items from one warehouse to another warehouse within the same company. When you use a transfer journal, you must specify both the "from" and "to" inventory dimensions for example, for Site and Warehouse. The on-hand inventory for the defined inventory dimensions is changed accordingly. Inventory transfers reflect the immediate movement of material. In-transit inventory isn't tracked. If in-transit inventory must be tracked, you should use a transfer order instead. When you post a transfer journal, two inventory transactions are created for each journal line: •

An inventory issue at the "from" location.

•

An inventory receipt at the "to" location.

BOM When you report a BOM as finished, you can create a BOM journal. By using a BOM journal, you can post the BOM directly. This posting generates an inventory receipt of the product, together with an associated BOM and an inventory issue of the products that are included in the BOM. This inventory journal type is useful in simple or high-volume production scenarios where routes aren't required.

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Item arrival You can use the item arrival journal to register the receipt of items (for example, from purchase orders). An item arrival journal can be created as part of arrival management from the Arrival overview page, or you can manually create a journal entry from the Item arrival page. If you enable the item arrival journal name to check for picking locations, Finance and Operations looks for a location for received items and, if there is room, generates location destinations for the incoming items.

Production input Production input journals work like the item arrival journals but are used for production orders.

Counting Counting journals let you correct the current on-hand inventory that is registered for items or groups of items, and then post the actual physical count, so that you can make the adjustments that are required to reconcile the differences. You can associate counting policies with counting groups to help group items that have various characteristics, so that those items can be included in a counting journal. For example, you can set up counting groups to count items that have a specific frequency, or to count items when stock falls to predefined level. By creating lines on the Tag counting page, you place a tag number on each inventory item, such as a number from 1 to 500. During the count, you enter the item number and the quantity on a corresponding tag. This tag can then be used as the basis for input in the tag counting journal. After you post the tag counting journal, a new counting journal is created on the Counting page. The new journal is based on the tag counting journal lines that you created. To tag-count items by a specific inventory dimension, select the dimension on the Display dimension page that is displayed when you create the tag counting journal. For example, to count items in a specific warehouse, select the Warehouse check box. If the Lock items during count slider on the Inventory and warehouse management parameters page is selected, items can't be physically updated during counting. However, items in tag counting journals aren't locked during counting. Inventory transactions aren't created until the tag counting lines are posted and transferred to a counting journal. If tags are entered randomly, and you want to identify missing tags, click the Tag column header to sort the lines by tag

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Tag counting Inventory tag counting is mostly used in a retail company. Tag counting journals are used to assign a numbered tag to a count lot. The tag should contain a tag number, item number, and item quantity. To ensure that a tag is used only one time, and that all tags are used, every item number should have a unique set of tags that has its own number sequence. Three status values can be set for each tag: •

Used – The item number is counted for this tag.

•

Voided – The item number is voided for this tag.

•

Missing – The item number is missing for this tag.

When you post a tag counting journal, a new counting journal is created, based on the tag counting journal lines.

Work with journals Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/11-work-with-journals A journal can be accessed by only one user at a time. If several users must access journals at the same time to create journal lines, those users must select journals that aren't currently being used, to prevent information from being overwritten. In situations where multiple departments use the same journal type, it's helpful to create multiple journal names (for example, one per department). It can also be helpful to divide journals so that each posting routine is entered in its own unique inventory journal. For posting routines that are associated with inventory transactions, create one journal for periodic inventory adjustments and another for inventory counting.

Posting journal lines You can post the journal lines that you create at any time until you've locked an item from additional transactions. The data that you enter in a journal remains in that journal, even if you close the journal without posting the lines. Not all inventory journals are OData-enabled, therefore you cannot use the Excel data connector to get data published, updated, and imported back to Finance and Operations. Another difference between the journal data entities is the ability to use composite entities that include both the header and line data. You can use the composite entities for the following journals: •

Inventory adjustment journal

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Inventory movement journal

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•

When a journal header number is not specified, but a number sequence is specified for the journal type, the import job will automatically create journal headers per 1000 lines. For example, importing 2020 lines will result in the following three journal headers: o o o

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Header 1: will contain 1000 lines Header 2: will contain 1000 lines Header 3: will contain 20 lines

It is assumed that unique line information exists per inventory dimension, which can be a product, storage, and tracking dimension. Therefore, it’s not possible to import journal lines where only the date field differs on the lines within the same import project.

Work with reason codes Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/12-work-with-reason-codes Reason codes let you analyze the results of a counting process and any discrepancies that occur during that process. You can specify the reason for doing the count, such as a broken pallet or a stock adjustment that is based on inventory samples. Before you set up the system, we recommend that you define a strategy for working with reason codes. For example, try to answer the following questions: •

Should reason codes be mandatory on warehouses?

•

Should reason codes be mandatory or optional on some items?

•

How many reason codes do you require?

•

How should users of barcode scanners use reason codes? Should the reason codes be preselected, mandatory, or not editable?

•

Do warehouse workers require different reason code behavior on mobile scanners? If the answer is yes, you can create more menu items and assign them to different people.

You can create multiple reason code policies, and each reason code policy can have two counting reason code policies. The counting reason code policies can be used at the warehouse level or the item level. To set up reason code policies follow this procedure: 1.

Go to Inventory management > Setup > Inventory > Counting reason code policies, and create a new reason code policy.

In the Counting reason code type field, select either Mandatory or Optional to specify whether selection of a reason code should be an optional or mandatory action in one of the following counting journals: o o

Cycle Count (mobile device) Spot Count (mobile device)

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o o o o

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Threshold Count (mobile device) Adjustment In (mobile device) Adjustment Out (mobile device) Counting Journal (rich client)

You can also set up reason codes for individual warehouses and for products. The reason code setup for products can disregard the setup for warehouses.

Mandatory reason codes If the Mandatory parameter is set in the configuration of reason codes for warehouses or items, the counting journal can't be completed and closed until a reason code is provided. To set up reason codes for warehouses, follow this procedure: 1.

Go to Inventory Management > Setup > Inventory breakdown > Warehouses.

On the Warehouse tab, in the Counting reason code policy field, select one of the following options: o

Blank – The parameter that is set up for the item is used to determine whether counting journals are mandatory for the product.

Mandatory – A reason code is always required on counting journals for the warehouse.

Optional – A reason code isn't required on counting journals for the warehouse.

To set up reason codes for products, follow this procedure: 1.

Go to Product information management > Products > Released products.

On the Product tab, select Counting reason code policy, and then select one of the following options: o

Blank – The parameter that is set up for the warehouse is used to determine whether counting journals are mandatory for the product.

Mandatory – A reason code is always required on counting journals for the product. This setting overrides any reason code setting at the warehouse level.

Optional – A reason code isn't required on counting journals for the product. This setting overrides any reason code setting at the warehouse level.

Use reason codes in counting journals In a counting journal, you can add reason codes for counts of the following types: •

Cycle count

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Spot count

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Threshold count

•

Adjustment in

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Adjustment out

Reason codes are added to the journal lines in counting journals of the Counting journal type. 1.

Go to Inventory management > Journal entries > Item counting > Counting.

In the line details of the counting journal, in the Counting reason code field, select an option.

To view the counting history as it's recorded by reason codes go to Inventory management > Inquiries and reports > Counting history, and then, in the Counting reason code field, view the counting history that has been recorded through a reason code.

Use a reason code for a quantity adjustment To add a reason code for a quantity adjustment, follow this procedure: 1.

On the On-hand inventory page, select Adjust quantity. You can open the On-hand inventory page in several ways. For example, select Inventory management > Inquiries and reports > On-hand inventory.

Select Adjust quantity, and then, in the Counting reason code field, select a reason code.

Work with consignment inventory Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/13-work-with-consignment-inventory Consignment inventory is inventory that’s owned by a vendor and stored at your site. When you’re ready to consume or use the inventory, you take over the ownership of the inventory. In this unit you will learn how to physically receive vendor-owned inventory on-hand without creating general ledger transactions, how to start a production process where the vendor-owned inventory can be physically reserved. and how to change the ownership of the raw material to be able to process the consumption as part of the production order processing. There’s also some information about how vendors can monitor consumption of their inventory using the vendor collaboration interface.

Consignment replenishment orders A consignment replenishment order is a document that is used to request and keep track of inventory quantities of products that a vendor intends to deliver within a certain date interval by creating ordered inventory transactions. Typically, this will be based on the forecast and actual demand of the specific products. The inventory that’s going to be received against the consignment replenishment order remains in the ownership of the vendor. Only the possession of the products related to the physical receipt update is recorded and therefore no general ledger transaction updates occur.

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The Owner dimension is used to separate information about which inventory is owned by the vendor and which is owned by the receiving legal entity. Consignment replenishment order lines have an Open order status if the full quantity of the lines has not been received or cancelled. When the full quantity has been received or canceled, the status is changed to Completed. The physical on-hand inventory that’s related to a consignment replenishment order can be recorded using a registration process as well as a product receipt update process. Registration can be done as part of the item arrival process or by manually updating the order lines. When the product receipt update process is used, a record is made in the Product receipt journal, which can be used to acknowledge the receipt of goods to the vendors.

Inventory ownership change journal The process of changing the owner of the inventory from the vendor to the receiving legal entity is done using an Inventory ownership change journal. No expected inventory transactions are created for the journal. The only inventory transactions created are those that relate to a posted journal. When the journal is posted: •

The vendor-owned inventory is issued using an Ownership change reference with a Sold status.

•

On-hand inventory is received by the legal entity that’s consuming it using a product receipt updated inventory transaction on the purchase order. This sets the status of the order to Received. Purchase orders used for consignment have the Origin field set to Consignment.

•

It’s not possible to update the quantity on consignment purchase order lines after the order has been created.

Vendor collaboration in consignment processes If your vendors are using the vendor collaboration interface of Finance and Operations, they can use this to monitor the consumption of inventory at your site. The vendor collaboration interface has three pages related to the inbound consignment process: •

Purchase orders consuming consignment inventory - Shows detailed purchase order information related to the ownership change from the consignment process.

•

Products received from consignment inventory - Shows information about the items and quantities that have product receipts updated during the ownership change process.

•

On-hand consignment inventory - Shows information about the consignment items that they are expected to deliver, and the items that are already physically available at the customer site.

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Tracking dimension group Items that are going to be used in consignment processes must be associated with a Tracking dimension group where the Owner dimension is set to Active. The Owner dimension always has the Physical inventory and Financial inventory options selected. The Coverage plan by dimension is never selected.

Configure item groups and item model groups Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/14-configure-item-groups-model-groups

Item groups In every Finance and Operations legal entity, you must set up at least one item group, because it is a prerequisite that will be used in inventory processing. Item groups serve three main purposes: •

Defining sets of ledger accounts for accounting entries, of a collection of products that are classified in the item group.

•

Using item groups to report detailed financial information and queries.

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Creating other reports that are related to products.

To create an item group, go to Inventory management > Setup > Inventory > Item groups. Specify which accounts from the chart of accounts to use for the various account types in each area.

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The Sales order FastTab shows the main accounts that are configured for the item group, in addition to the accounting that is related to sales order document in the revenue cycle. For products that are configured as stocked products, an inventory transaction is recorded with the sales order line for the ordered quantity. For example, when a stocked product is delivered for a sales order, accounting entries are generated in the Order, packing slip main account (issue) and Sales, packing-slip offset main account (consumption) fields, if the Post physical inventory check box in Item model groups page, and the Post packing slip in ledger option in the Accounts receivable parameters are selected. The Purchase order FastTab shows the main accounts that are configured for the item group, in addition to the accounting that is related to a purchase order document in the procurement cycle. For a product that is configured as a stocked product, inventory transactions are generated with the purchase order line, for the ordered quantity. The Inventory FastTab shows the accounts that are used for inventory-related posting for the item group.

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For example, the system uses Inventory, fixed receipt price profit and Inventory, fixed receipt price loss account types to post gain or loss for variance to the Fixed receipt price of products that are configured with a Fixed receipt price inventory model in the inventory model group. It also uses Receipt and Issue to post receipts and issues inventory movements for stocked product. The Production FastTab shows the accounts that are used for manufacturing-related posting for the item group. The Setup FastTab lets you set up default forecast and tax groups. The Forecast groups contain the Default item allocation key. Select the user defined allocation key to serve as the proposed standard key when you create forecasts for the item group. Item allocation keys are created in the Item allocation keys setup of the Master planning module.

The Purchase tax and Sales tax groups contain the Item sales tax group field. This is where you specify a default item sales tax group for items in the selected item groups.

Item model groups Item model groups contain settings that determine how items are controlled and handled upon item receipts and issues. These settings also determine how item consumption is calculated. This feature facilitates maintenance because many items are frequently controlled with the same setup. You can attach several products to an item model group. Instead of providing detailed information for each item, one item model group collects all the information. This links it to the products in question, and

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helps make updating easier, because you can typically manage several items according to the same setup that only has to be updated in one place. Therefore, you create item model groups only as needed. Item groups are used to manage inventory by dividing inventory items into groups based on item characteristics. You can select main account numbers for the automatic ledger transactions generated for item group receipt and issue transactions in inventory. You can also set up demand and supply forecasts for item groups. Item model groups are an important part of configuring product for stock, inventory management and accounting. Item model groups contain settings that determine how items are controlled and handled upon item receipt and issue. To create an item model group, go to Inventory management > Setup > Inventory > Item model groups

Item model groups determine the following stock and inventory policies: •

Whether the product is stocked or not stocked.

•

The cost flow assumption and cost measurement method for valuing inventory of stocked products.

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If physical and financial negative inventory is permitted.

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If inventory transactions should be posted to the general ledger.

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The workflow that is used when you send or receive items.

•

The reservation rules.

An item model group setup is important when you determine how the item will integrate with other areas of Finance and Operations. Not all fields are covered in this module because they apply to other areas of the system that will be covered in other modules.

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Costing method & Cost recognition The Costing method & cost recognition field group determines whether products are tracked in stock. It contains the Stocked product parameter. If the Stocked product check box is cleared no inventorytransactions are maintained for the product. Therefore, the product cannot be used for production or inventory-related features. This includes inventory journals that rely on inventory transactions. The not stocked product can be used on sales and purchase orders.

Select the Stocked product check box to indicate that the product should be handled in inventory. Products that are handled in inventory generate inventory transactions. These products can be included in cost calculations. On-hand quantities can also be maintained for these products. Stocked products include items and services. A service cannot be added to stock. However, the system requires that proforma stock transactions be generated for services that contribute to the inventory value of tangible goods. For example, proforma stock transactions must be generated if a service is used to subcontract production steps. The following are transactions that are only used for stocked products: •

Production orders

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Transfer orders

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Inventory journals

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Quarantine orders

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Quality orders

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Inventory blocking

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Inventory forecasting

If an item model group is set up for a not stocked product, many of the parameters are irrelevant.

Ledger integration The Ledger integration field group determines whether inventory transactions are to be posted to the general ledger, physically or financially, and when they must be posted. The fields in this group are as follows: •

Post physical inventory

•

Post financial inventory

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Post to deferred revenue account on sales delivery

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Accrue liability on product receipt

Post physical inventory The following list explains the effect of the Post physical inventory parameter when it is selected or cleared: •

If this field is selected, physical movement of stocked products are posted in the ledger if: o

On sales delivery, when Post packing slip in ledger parameter is selected in the Accounts receivable parameters page.

On product receipt, when Post product receipt in ledger parameter is selected in the Accounts payable parameters page.

On production report as finished, when Post report as finished in ledger is selected in Production control parameters page.

•

If you select the Post physical inventory parameter, packing lists from purchases or sales are posted at cost in the ledger. This means that the value of physically received, delivered, or floating items is not only reflected in the inventory, but also in the ledger. When the same purchase or sales invoice is updated, the transactions are reversed from the packing slip update.

•

If you clear the Post physical inventory parameter, Physical movement of stocked products are not posted in the ledger, regardless of whether the Post packing slip in ledger, Post product receipt in ledger, and Post report as finished in ledger setup options are selected in the accounts receivable, accounts payable, and production control parameters.

Post financial inventory The following list explains the effect of the Post financial inventory parameter when it is selected or cleared: •

•

If this field is selected, the updated financial value of items is posted in the ledger when: o

A purchase order is invoice-updated. The product expenditure is posted to the inventory receipt account.

A sales order is invoice-updated. The cost of the product is posted to the inventory issue and consumption accounts.

If you clear this parameter, Purchases are posted to the item Purchase expenditure for the expense account when the purchase is matched to a vendor invoice.

The inventory value that is posted can then be reconciled with the related status accounts in general ledger. If this option is cleared, when a purchase order is invoice-updated, the value of the items is posted to the item consumption account, but not to the inventory receipt account. When a sales order is invoiceupdated, no posting occurs in the item consumption account or the issue account. Clear this option for

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service items if the item consumption should not be posted when sales orders are invoiced. When this option is cleared, the journal lines for the items do not generate ledger postings.

Post to deferred revenue account on sales delivery Select the Post to deferred revenue account on sales delivery parameter to post the expected revenue on sales delivery. This is typically used when a company recognizes revenue at the time of shipment instead of the time of billing the customer. When the order is invoiced, the accounting entries for deferred revenue are relieved. Select this option to accrue the estimated revenue for the delivered quantity of packing slip updates. The accrued revenue that is accounted on the sales delivery is offset when the customer is invoiced for the delivery.

Accrue liability on product receipt Select the Accrue liability on product receipt parameter to post the expected expenditure and liability for purchase for packing slip updates to the general ledger. When the product receipt is matched to vendor invoice, the accounting entries for accrued liability are relieved.

Include physical value Select the Include physical value option to indicate that transactions that are physically updated should be included in the calculation of the average cost. At inventory close, this parameter may be used, depending on the method that is used for inventory valuation. The following inventory valuation methods use this parameter during inventory close •

FIFO

•

LIFO

•

LIFO date

The following inventory valuation methods do not use this parameter during inventory close: •

Weighted avg.

•

Weighted avg. date

Fixed receipt price Select the Fixed receipt price option to adjust issues and receipts to a fixed receipt price. The fixed receipt price is a principle for inventory valuation that sets the price of receipts to the active planned cost or basic cost of a product. The fixed receipt price is defined in the Price field on the Manage costs tab in the Released product details page. When this option is selected, receipts and issues are posted as follows: www.dynamicscompanions.com Dynamics Companions

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•

For purchase receipts, posting occurs at the actual cost

•

For purchase invoices, the price difference between the actual cost and the fixed receipt price is posted to the general ledger as a variance

•

The amount is posted to the loss or profit account for the fixed receipt price.

•

Inventory is updated based on the fixed receipt price

•

For sales order packing slips and sales invoices, posting occurs at the estimated cost.

When you run an inventory close or a recalculation, if the Fixed receipt price option is selected, the value of issue transactions is adjusted according to the price that is specified in the Price field. If the Fixed receipt price option is cleared, the value of issue transactions is not adjusted according to this price. If the fixed receipt price is changed, and you want all new issue transactions to use the new cost, follow these steps: 1.

Run an inventory close.

Adjust the balance for the on-hand inventory, so that the balance matches the new cost.

Activate a new planned cost.

Inventory model Select the inventory model that is used to close and perform adjustments in the Closing and adjustment page.

Configure inventory policies Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/16-configure-inventory-policies The Negative inventory field group determines whether physical or financial negative inventory will be permitted. It contains the following two parameters: •

Physical negative inventory - Select this check box to enable the system to issue an item from inventory even though stock levels are insufficient. This parameter is sensitive for inventory value calculation. The decision whether to select or clear this parameter must be taken with the utmost care to prevent incorrect use of the functionality. Example: There is usually a time lag between arrival of items in the warehouse and when the purchasing department updates the received item's product receipts. When you visit the warehouse, you notice that the items have arrived for your purchase order, even though it is not a part of your warehouse in the system. If the item's item model group has Physical negative inventory selected, you can deliver the item even though it has not yet been registered as being physically present in the inventory.

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Financial negative inventory - When this check box is cleared, you are prohibited from issuing quantities from stock, although physically available, if there are insufficient quantities that are financially updated on-hand inventory for the item. When this field is selected, negative financial inventory is enabled, and the user can issue quantities from stock and inventory without knowing the real cost price. The invoice of these items might be posted after the items are sold and then an inventory closing must adjust the cost to actual cost. If the check box is selected and you are using an actual costing approach, you should also enter a cost on the item, to temporarily value the issue, until adjustment to actual cost can be made. Enter the cost price in the Cost price field on the Manage cost FastTab in the Released products form.

Quarantine management Select the Quarantine management check box to indicate that products linked to this group are under quarantine management rules and requirements. This option is used for items that are set aside and awaiting approval for reception into the physical inventory and distribution. If the check box is clear, items will not be under quarantine management unless a quarantine order is created manually. When the item is physically updated, a quarantine order is generated with the status of Started.

Physical update field group Fields in the Physical update field group determine the workflow that is used when you send or receive items and you use them to set rules around how an order is handled for receiving and shipping the Physical update field group contains the following parameters: •

Registration requirements - By selecting this check box, the user must register the receipt before inventory is updated through the product receipt on a purchase order. Register a product to record the item's physical presence at the company. These products are a part of the physical warehouse on-hand. However, the cost will not be updated until they are physically updated with a product receipt update. Generally, this option is used with the Warehouse management functionality. o

•

Example: Select the Registration requirements parameter to monitor the vendor performance or the reception of goods into the company. In this case, you must monitor the goods when they arrive at the company.

Receiving requirements – When this check box is selected, item receipts must be physically updated before they can be financially updated. A product receipt must be entered and posted before the corresponding vendor invoice can be posted. If there is a difference between the received quantity on the product receipt and the invoiced quantity on the invoice, an icon is shown in the Product receipt quantity match field in the Vendor invoice page.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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•

Picking requirements - When you select this check box, item issues must have the status of Picked before inventory is physically updated. Select the Picking requirements parameter with the warehouse management functionality when you use location management on the item and when shipments are collected by using picking routes.

•

Deduction requirements - When you select this check box, item deductions must be physically updated before they can be financially updated for both inbound and outbound. o

Inbound - A product receipt must be entered and posted before the corresponding vendor invoice can be posted. If there is a difference between the deducted quantity on the product receipt and the negative invoiced quantity on the invoice, an icon is shown in the Product receipt quantity match field in the Vendor invoice page.

Outbound - A packing slip must be entered and posted before the corresponding customer invoice can be posted. If there is a difference between the deducted quantity on the packing slip and the negative invoiced quantity on the invoice, an icon is shown in the Product receipt quantity match field in the Customer invoice page.

Reservation field group The Reservation field group contains the following parameters: •

FIFO date-controlled - If you select the FIFO date-controlled option, the inventory reservation is controlled by a sorting date according to the FIFO principle. Batches are reserved based on the earliest date of receipt of items, according to the principle of first in, first out (FIFO).

•

Backward from ship date - This option becomes available if you have selected the FIFO datecontrolled option. If you select Backward from ship date, the inventory is reserved backward from the desired ship date according to the principle of last in, first out (LIFO). If no receipts are available before the ship date, a FIFO reservation is used.

•

Item sales reservation - Determines whether item reservation is manual or automatic. If a reservation is automatic, inventory is reserved when order lines are created. It’s possible to make reservations at the item number level for BOMs (Automatic option), or for the individual elements of a BOM (Explosion option). The default value for Item sales reservation may be inherited from Accounts receivable parameters. On that page, the value is set in the Reservation field in the Sales default values section on the General tab.

•

Same batch selection - Same batch selection lets you reserve inventory for a sales order line against a single batch of inventory. If you want to use this option, you must also set the Consolidate requirement option to Yes. There are additional settings that are required for the tracking dimension group and storage dimension group

•

Consolidate requirement - This option is like the Same batch selection option, and it consolidates inventory that’s reserved for sales order lines into a single requirement.

•

FEFO date-controlled: "first-expired-first-out" This option allows you to reserve batches that are close to their expiration date or best before date. You also need to set the Pick criteria field to select either Expiration date or Best before date.

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Pick criteria: Select the option that determines the date for master planning calculations and reservation logic. This date is an internal setting that decides whether an inventory batch can be used.

When you select these parameters for the item model group, you determine how Finance and Operations makes reservations of the type Automatic, where no on-hand inventory or receipts with the Received or Invoiced status exists for the item. However, there are receipts with the Ordered status for the item. Additionally, for these parameters to come into effect, the Reserve ordered items check box must be selected in Inventory and warehouse management > Setup > Parameters > General tab.

Inventory model The inventory model determines both the cost measurement method (standard costing or actual costing) and the cost flow assumption under actual costing for valuing inventory. When using actual costing, the inventory closing function will adjust estimated cost according to the rules of the selected inventory model. The choices are as follows: •

FIFO

•

LIFO

•

LIFO date

•

Weighted avg.

•

Weighted avg. date

•

Standard cost

•

Moving average

Inventory closing and adjustment Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/17-inventory-closing-adjustment As part of the process to settle issue transactions with receipt transactions, you can also select to have the general ledger updated to reflect the adjustments that have been made. The inventory close process settles issue transactions to receipt transactions, based on the inventory valuation method that is selected in the item’s item model group. As part of the settlement process, you can specify that the general ledger should be updated, so that it reflects the adjustments that have been made. However, until inventory close or recalculation has been run, issue transactions are posted at the calculated running average cost price. After inventory close, you can no longer post in periods that are before the inventory closing date that you set, unless you reverse a completed inventory close process. For example, if inventory close is run for the period that ends on January 31, you can't post transactions that have a date that is earlier than January 31. www.dynamicscompanions.com Dynamics Companions

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Items in inventory are assigned to one of two inventory types: item or service. Inventory close performs the same functions for both types. However, for service items, inventory close still settles issues to receipts. How often the inventory close process is run varies by company. However, transaction volume should help determine how often you decide to run inventory close. In general, most companies run inventory close as part of their month-end close and reconciliation procedures. Go to Inventory management > Periodic tasks > Closing and adjustment to perform inventory close process.

Inventory recalculation and the general ledger If adjustments to inventory and the general ledger are required during a month or other inventory period, you can run inventory recalculation instead of inventory close. Inventory recalculation makes adjustments but doesn't make settlements to inventory transactions. During inventory recalculation, on-hand inventory is adjusted, inventory transactions are adjusted, and inventory recalculations and inventory closes are run. These tasks affect any ledger account that is linked to the original inventory transaction. For example, when you create a purchase order from a sales order, the general ledger accounts that are used for the original sales order are updated. Even if the ledger accounts for the item group that is assigned to the item were changed after the sales order was posted, and an inventory recalculation created an adjustment amount, the adjustment amount is posted to the original ledger accounts. The adjusted amount isnâ&#x20AC;&#x2122;t posted to the new ledger accounts that are assigned to the item. After the update is completed, you can review the ledger voucher that is posted by following these steps: 1.

On the Closing and adjustment page, on the Overview tab, select the update to review.

Click Details, and then select Voucher.

Effects of the inventory close process on the general ledger Several of the tasks that you can perform on the Closing and adjustment page cause an update to general ledger.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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For example, the general ledger is updated when you make inventory on-hand adjustments, make inventory transaction adjustments, run inventory recalculation, and run inventory close. The ledger accounts that are updated because of these tasks are linked to the original inventory transaction. For example, if a sales order is settled to a purchase order, the general ledger accounts that were used for the original sales order are adjusted. This behavior occurs even if the ledger accounts for the item group that is assigned to the item have changed since the sales order was posted. After inventory close creates a settlement amount, the settlement amount is still posted to the original ledger accounts, not to the new ledger accounts that are assigned to the item. The general ledger might also be updated if you reverse an inventory close. Consider the following about inventory close: •

Inventory close isn't required if you use the Standard cost valuation method.

•

Before you run the closing procedure, you can view a list of items that can't be settled during the update.

•

We recommend that you run inventory close during off-peak hours, to distribute computing resources more evenly.

The inventory close log After the inventory close process has been completed, a message in the message center might inform you that a unit cost price might be incorrect because a transaction could not be fully settled. Before this message is shown, the system reports the item number and the affected transaction. The message informs you that the cost amount that is used for this transaction wasn't updated because of the inventory close. This message appears when a transaction of the issue type can't be settled. During the inventory close process, the system checks each financial dimension to see whether there are more issues than receipts up to the specified closing date. This type of imbalance can occur when an inventory transaction from a purchase order isn't fully posted financially, either because the vendor invoice hasn't been received, or because bill of materials (BOM) components that are included in a production on a higher level aren't financially posted. (The sub-production isn't cost-calculated.) In this case, the subsequent close won't adjust all issues to the correct cost price, because not enough receipt information is available. For each run of the closing procedure, the system indicates whether a log that contains the warnings is stored and can be viewed. If you receive many warnings in the message, we recommend that you perform the following actions: •

Update receipts financially.

•

Advance the closing date.

•

Reevaluate the business procedures.

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In some circumstances, you might not be able to do anything about the warnings. For example, if marking is used, and the marked purchase order has a financial date that is after the closing date, the closing date can't be changed.

Reversing a completed inventory close Occasionally, you might have to reverse a completed inventory close to return settlements to the state that they had before adjustments were made. When you reverse a completed inventory close, inventory is reopened to enable posting in the period that the inventory close covers. Related changes might also be made in the general ledger. After you've finished making adjustments, you can run inventory close again for the period that you're working with. Only the last inventory period that was closed can be reopened. To reverse an earlier inventory close, you must reverse each subsequent inventory close one at a time, starting with the most recent close.

Adjust on-hand inventory cost values You can use the Adjustment of on-hand inventory page to adjust the cost value of on-hand inventory quantities after an inventory close process is run. Example: You have the following transactions in February: •

February 1: An inventory financial receipt for a quantity of 2 at a cost of USD 10.00

•

February 5: An inventory financial receipt for a quantity of 1 at a cost of USD 13.00

•

February 19: An inventory financial issue for a quantity of 1 at a running average cost of USD 11.00

This item was set up with the first in, first out (FIFO) inventory model, and inventory close was performed as of February 28. The financial issue transaction of USD 11.00 will be settled against the financial receipt that is dated February 1, and an adjustment of USD 1.00 will be made. The following inventory receipts will then contain open inventory quantities: •

February 1: A quantity of 1 at a cost of USD 10.00

•

February 5: A quantity of 1 at a cost of USD 13.00

To set the cost of these two items to USD 15.00, use the on-hand adjustment option to adjust the open on-hand quantities as of the last inventory close period. Note: The posting date of the on-hand adjustment transaction will be the date of the last inventory close. This date can't be modified. To open the Adjustment of on-hand inventory page, on the Closing and adjustment page, select the record of a completed inventory close process, and then click Adjustment > On-hand.

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Exercise - Create a new warehouse layout Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/18-exercise-create-new-warehouse-layout You need to create a warehouse in company USMF. This warehouse has the following format for its location Aisle-Rack-Shelf which will be represented with numerical values such as 001-01-01. The default location is 450 X 250 X 200 as width, depth and height. You do not wish to create outbound docks or bulk locations.

Before you begin To get the most benefit from this and other exercises in this module, we recommend that you have the standard sample data available in Finance and Operations that is installed by using Lifecycle Services (LCS).

Set the default location capacity 1.

Open company USMF.

Go to Inventory management > Setup > Inventory and warehouse management parameters.

Click the Locations tab.

In the Standard width field, enter ‘450’.

In the Standard depth field, enter ‘250’.

In the Standard height field, enter ‘200’.

Click Save.

Close the page.

Define the location name format 1.

Go to Inventory management > Setup > Inventory breakdown > Warehouses.

Click New.

In the Warehouse field, type ‘17’.

In the Name field, type ‘Raw materials’.

In the Site field, click the drop-down button to open the lookup.

In the list, find and select site 1.

Expand the Location names section. The options in this section define the default format for location names. In our example, we'll include the aisle number, rack number and shelf number.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

Set the Include aisle option to Yes.

Set the Include rack option to Yes.

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

10. In the Format field, for the rack, type ‘-##’ 11. Set the Include shelf option to Yes. 12. In the Format field, for the shelf, type ‘-##’ 13. Click Save

Define warehouse locations 1.

On the Action Pane, click Warehouse.

Click Location wizard.

Click Next.

Clear the Outbound docks option

Clear the Bulk locations option

Click Next until the Finish button appears.

Click Finish.

Close all pages.

Exercise - Create a costing version, item model group and tracking number group Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/19-0-exercise-create-costing-version-item-model-tracking-group As a warehouse employee at company USMF, you need to create a standard cost version to record products that use the item model group with inventory model of Standard. You also need to group items based on the FIFO inventory model. Therefore, you need to create an item model group, a cost version and tracking number group to allocate batch and serial numbers.

Create a costing version 1.

Go to Cost management > Predetermined cost policies setup > Costing versions.

Click New.

In the Costing type field, select Standard cost.

In the Version field, type 'SeahorseST'.

In the Name field, type 'Seahorse Standard Costing '.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

In the Block activation field, select No.

Click Save.

Close the page.

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Create an item model group 1.

Go to Inventory management > Setup > Inventory > Item model groups.

Click New.

In the Item model group field, type 'STDN'.

In the Name field, type 'Standard Cost'.

In the Inventory model field, enter Standard cost.

Expand the Inventory policies section.

In the Approved vendor check method field, enter No check.

Click Save

Click New.

10. In the Item model group field, type 'FIFO'. 11. In the Name field, type 'FIFO'. 12. Close the page.

Create a tracking number group 1.

Go to Inventory management > Setup > Dimensions > Tracking number groups.

Click New.

In the Number group field, type 'ASer'.

In the Name field, type 'Auto-Serial'.

Select No in the Date field.

Select No in the Lot ID field.

Select Yes in the Number sequence No. field.

In the Number sequence code field, select any number sequence.

Select Yes in the Only for inventory transactions field.

10. Select Yes in the On physical update field. 11. Click New. 12. In the Number group field, type 'USer'. 13. In the Name field, type 'Unique-Serial'. 14. Select No in the Date field. 15. Select No in the Lot ID field.

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16. Select Yes in the Number sequence No. field. 17. In the Number sequence code field, select any number sequence. 18. Select Yes in the Only for inventory transactions field. 19. Select Yes in the On physical update field. 20. Set Per qty. to '1'. 21. Click New. 22. In the Number group field, type 'Batch'. 23. In the Name field, type 'Auto Batch'. 24. Select No in the Date field. 25. Select No in the Lot ID field. 26. Select Yes in the Number sequence No. field. 27. In the Number sequence code field, select any number sequence. 28. Select Yes in the Only for inventory transactions field. 29. Select No in the On physical update field. 30. Close the page.

Exercise - Use a movement journal Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/19-1-exercise-use-movement-journals In USMF, you need to update the on-hand inventory manually using an Inventory movement journal. 1.

Go to Inventory management > Journal entries > Items > Movement.

Click New.

In the Name field, click the drop-down button to open the lookup.

Select Imov. It’s a good practice to use different journal name templates for the different business purposes.

In the Offset account field, specify the value '140200'. This is the offset account that will be the default account on the journal lines. It’s possible to override the default to assign different offset accounts per line.

Click OK.

Click New.

In the Item number field, click the drop-down button to open the lookup.

Select item A0001.

10. Click the Inventory dimensions tab. 11. In the Site field, click the drop-down button to open the lookup. www.dynamicscompanions.com Dynamics Companions

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12. Select site 1. 13. In the Warehouse field, click the drop-down button to open the lookup. 14. Select warehouse 13. 15. In the Location field, click the drop-down button to open the lookup. 16. Select location 13. 17. In the Quantity field, enter a number. 18. Click Save. 19. Click Post. 20. Check or clear the Transfer all posting errors to a new journal check box. If you enable this option, any lines that fail to post will be copied to a new journal. You can use the information in the log to correct the issues and then re-post the lines. 21. Click OK. 22. Close all pages.

Exercise - Use an inventory adjustment journal Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-in-dynamics365-finance-ops/19-2-exercise-use-inventory-adjustment-journal As a warehouse manager in the company USMF, you need to adjust stock levels of products in the warehouse. 1.

Go to Inventory management > Journal entries > Items > Inventory adjustment.

Click New.

In the Name field, click the drop-down button to open the lookup.

In the list, click on the inventory adjustment journal name you want to use. Some other fields will be populated based on the setup of the inventory adjustment journal name you select.

Click OK.

Click New.

In the Item number field, select D0001.

In the Site field, click the drop-down button to open the lookup.

In the list, select site 1.

10. In the Warehouse field, click the drop-down button to open the lookup. 11. In the list, select Warehouse 13. If you have selected an item with Location as a mandatory dimension, you would have to specify the location here. 12. In the Quantity field, enter a number. The Cost price field specifies the cost per unit for inventory receipts. If the cost is not specified for the item number or if you wanted to change it manually, you would do this here. www.dynamicscompanions.com Dynamics Companions

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13. Click Validate. 14. Click OK. 15. Click Post. When you post this kind of journal, an inventory receipt or issue is posted, the inventory level and value are changed, and ledger transactions are generated. 16. Click OK. 17. Close all pages.

Exercise - Use a transfer journal Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-in-dynamics365-finance-ops/19-3-exercise-use-transfer-journal As a warehouse employee in the company USMF, you need to perform the process of creating and posting an inventory transfer journal in to register movement of an item from one location in a warehouse to another. In this example weâ&#x20AC;&#x2122;ll transfer an item within the same warehouse, from a license plate-controlled location to a location that is not license plate controlled. 1.

Go to Inventory management > Journal entries > Items>Transfer.

Click New.

In the Name field, enter or select ITrf.

Click OK.

Click New.

In the Item number field, enter or select A0001.

In the From site field, enter or select 2.

In the To site field, enter or select 2.

In the From warehouse field, enter or select 24.

10. In the To warehouse field, enter or select 24. 11. In the From location field, enter or select FL-001. 12. In the To location field, enter or select BULK-001. 13. In the Quantity field, enter a number. 14. Click the Inventory dimensions tab. 15. In the License plate field, enter or select 24 16. Click Save. 17. Click Post. 18. Click OK. 19. Click Inventory. www.dynamicscompanions.com Dynamics Companions

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20. Click Transactions. 21. Close all pages.

Exercise - Use a counting journal Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-in-dynamics365-finance-ops/19-4-exercise-use-counting-journal As a warehouse worker in the company USMF, you need to perform the process of creating and posting an inventory counting journal to count a specific item at a location in the warehouse. 1.

Go to Inventory management > Journal entries > Item counting > Counting.

Click New.

In the Name field, click the drop-down button to open the lookup.

In the list, click on the Inventory counting journal icon. Some other fields will be populated based on the setup of the inventory counting journal name that you select.

In the Worker field, click the drop-down button to open the lookup.

In the list, select the worker you want to use.

Click Select.

Click OK.

Click New.

10. In the Item number field, click the drop-down button to open the lookup. 11. In the list, find and select A0001. 12. In the Site field, click the drop-down button to open the lookup. 13. In the list, find and select site 2. 14. In the Warehouse field, click the drop-down button to open the lookup. 15. In the list, find and select warehouse 24. 16. In the Location field, click the drop-down button to open the lookup. 17. In the list, find and select location BULK-001. 18. In the Counted field, enter a number. 19. If you enter a counted number that’s different to the number shown in the On-hand field, the Quantity field is updated to show the discrepancy. 20. Click Save. 21. Click Post. When you post an inventory counting journal, if the counted amount differs from amount that’s reported in the On-hand field an inventory receipt or issue is posted, the inventory level and value are changed, and ledger transactions are generated. 22. Click OK.

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23. Close all pages.

Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/20-configure-inventory-management-quiz

Configure and work with inventory management in Dynamics 365 for Finance and Operations knowledge check 1.

Which one of the following options in tracking number groups can assign a generated number for a batch or serial to a purchase order line? a.

Manual

b. Only for inventory transactions c.

On physical update

d. Per Qty 2.

Which one of the following options should you select to only generate serial and/or batch numbers when a packing slip and a picking list registration is posted? a.

Manual

b. Only for inventory transactions c.

On physical update

d. Per Qty 3.

Which one of the following location types are used to replenish a picking location? a.

Bulk location

b. Picking location c.

Inbound dock

d. Production input location 4.

Which one of the following location types are used for storing finished items? a.

Bulk location

b. Picking location c.

Inbound dock

d. Production input location

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Which one of the following inventory journals can be used when you want to overwrite the default posting accounts.? a.

Counting

b. Transfer c.

Adjustment

d. Movement 6.

A shipment of shirts, containing 40 yellow, 50 red, 95 white and 120 black, has arrived in your warehouse. You have accidentally increased the quantity of 50 shirts with the color yellow. Which journal should you use to correct this mistake? a.

Counting

b. Transfer c.

Adjustment

d. Movement

Summary Link: https://docs.microsoft.com/en-us/learn/modules/configure-inventory-management-indynamics-365-finance-ops/21-configure-inventory-management-summary In this module you learned that serial and batch numbers provide companies with the ability to trace their products through Finance and Operations. You can assign serial numbers, and batch numbers, or both to an inventory item. Serial numbers are assigned to individual products, and batch numbers are assigned to a set of products. You also learned how to set up Inventory management product elements in the Inventory and warehouse management module in Finance and Operations and use the inventory journals. This module covered the following topics: •

Set up item groups and examining the posting types.

•

Set up item model groups and inventory dimension groups and reviewing how they affect the way item transactions are handled.

•

Set up site and warehouse for inventory control.

•

Control of receipt and issue of items.

•

Configure inventory parameters

•

Configure tracking number groups

•

Configure inventory breakdown

•

Configure and use inventory and warehouse journals

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•

Configure inventory dimensions

•

Configure inventory costing

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Module 3: Use Inventory Reports This topic explains how to use Inventory reports for supply chain management processes in Finance and Operations. Lessons •

Introduction

•

Understand ABC classification

•

Use other inventory inquiries and reports

•

Practice Labs

•

Module summary

In this module you learned to: •

Understand ABC Classification

•

Use Inventory inquires and reports

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Use inventory reports in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/use-inventory-reports-in-dynamics-365-financeops/ One of the factors for a successful business is having the visibility to see how much inventory exists at any given time. Inventory reports in Dynamics 365 for Finance and Operations will show how much inventory you have in variety of different ways, and how to be more effective in your inventory investments. In this module, you will learn how to: •

Understand ABC classification

•

Use the Physical inventory by inventory dimension report

•

Use the Inventory value reports

•

Use the Inventory on-hand mobile workspace

Introduction Link: https://docs.microsoft.com/en-us/learn/modules/use-inventory-reports-in-dynamics-365finance-ops/1-use-inventory-reports-introduction This module explains how to use inventory reports for supply chain management processes in Dynamics 365 for Finance and Operations. In this module you will learn how to: •

Understand ABC classification

•

Use the Physical inventory by inventory dimension report

•

Use the Inventory value reports

•

Use the Inventory on-hand mobile workspace

ABC inventory classification Link: https://docs.microsoft.com/en-us/learn/modules/use-inventory-reports-in-dynamics-365finance-ops/2-abc-inventory-classification Use ABC inventory classification and the forecasting, to evaluate the profitability and importance of each item. Use this information when you set up the inventory, coverage code, coverage period, and whether to use a minimum and/or a maximum on-hand inventory when scheduling.

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ABC analysis is the method of classifying items based on their relative importance. Item classification can, for example, be based on monetary value, availability of resources and carrying cost. Most companies carry lots of items in stock. To have better control, at a reasonable cost, it helps to classify the items according to their importance. The ABC inventory classification system determines the importance of items and includes different levels of control, based on the relative importance of the items. The ABC principle is based on the observation that a few items frequently dominate the results achieved in any situation. One recommended method is using the Pareto's Law Principles. When this principle is applied to inventory, it is usually found that the relationship between the percentage of items and the percentage of annual revenue follows a pattern in which: •

A - About 20 percent of the items and about 80 percent of the revenue.

•

B - About 30 percent of the items and about 15 percent of the revenue.

•

C - About 50 percent of the items and about 5 percent of the revenue.

ABC items By using the ABC approach, there are two general rules to follow: •

Have many low-value items on stock.

•

Concentrate your efforts on reducing the inventory of high value items.

A Items - Are important and deserve the tightest control and the most frequent review. A items take on a high priority level of control. The tight control on these items includes a focus on keeping accurate records, regular and frequent review by management, frequent review of demand forecasts, and close follow-up and expediting to reduce lead time. B Items - Take on a medium priority level of control. These items have typical control with good records, regular attention, and typical processing. C Items - Carrying additional stock of C items adds little to the total value of the inventory. C items take the lowest priority level of control. These items use the simplest possible controls. Make sure that there are many of these on hand and keep simple or no records. Order large quantities of C items and carry safety stock.

Manual set up of ABC classifications The ability to manually set up ABC classifications helps with new inventory items or with a new company where there is little sales or purchase history on which to base the classifications. In this situation, the classifications must be based on professional judgment, instead of statistical data.

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The manual setup of the ABC classification is set up for each item. Do this in the Released products page in Product information management > Products > Released products, on the Engineer FastTab under the ABC classification field group.

ABC models There are four ABC codes to set, depending on which classification model is used in the company. They are defined as follows: •

Value - Specify the item's ABC code for inventory value. Inventory value refers to the worth of the items in inventory. For example, if A is specified in this field, the selected item is categorized as an A item.

•

Margin - Specify the item's ABC code for marginal income. For example, if A is specified in this field, the selected item is categorized as an A item.

•

Revenue - Specify the ABC code for sales. For example, if A is specified in this field, the selected item is categorized as an A item

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Carrying cost - Specify the item's ABC code for attachment to inventory. Inventory attachment refers to how long an item remains in inventory. For example, if A is specified in this field, the item selected is categorized as an A item that makes up 20 percent of the total inventory and is in inventory for two weeks. That means that A items are an expense in inventory for two weeks.

Each of these fields can take one of the four values: None, A, B, or C. Note that the percentages and times mentioned in the four ABC codes are only examples.

Automatic set up of ABC classification When you run an automatic set up of ABC classification, all item numbers are categorized according to the selected ABC classification and are based on the ABC model. This ABC classification batch job causes the automatic setup of ABC classifications and is frequently used in organizations that have large inventories. For that kind of organization, it is not always practical to manually assign the classifications. Go to Inventory management > Periodic tasks > ABC classification to open the dialog box for selection of a criteria.

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Specify the parameters described in the following list in the Parameters field group, and then click OK. •

From and To date - The data interval for the transactions that must be affected by the automatic ABC classification.

•

Internal interest in % - The internal interest in percentage.

•

A: Highest - The percentages for value A.

•

B: Middle - The percentages for value B.

•

C: Lowest - The percentages for value C.

•

ABC Model: o

Revenue - Item numbers are categorized according to the sales for all item issues within the specified date interval. The calculation is made based on the inventory transactions.

Margin - Item numbers are categorized according to the margin for all item issues in the specified date interval. The calculation is made based on the inventory transactions.

Value - Item numbers are categorized according to the current inventory value, calculated based on the inventory levels.

Carrying cost - Item numbers are categorized according to a calculated inventory carrying cost. That cost is calculated based on the specified interest and the inventory transactions.

The A, B, and C percentages combined must total 100. When the classification job is run, the results are inserted in the Released products table for every item according to the ABC models specified in the ABC model field.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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You cannot run an ABC classification job and print the result at the same time. To print an ABC classification job, the same parameters must be specified again in the ABC categorized items according to the specified criteria.

Physical inventory by inventory dimension report Link: https://docs.microsoft.com/en-us/learn/modules/use-inventory-reports-in-dynamics-365finance-ops/3-physical-inventory-by-inventory-dimensions-report The Physical inventory by inventory dimension report displays the inventory quantity for each inventory dimension for the date that you select in the As on field. This report also gives you the option to filter by inventory dimension. You can select the dimensions that you want to view when you run the report by selecting the check boxes in the View group for the following dimensions: •

Configuration

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•

Size

•

Color

•

Style

•

Site

•

Warehouse

•

Location

•

Inventory owner

•

Serial number

•

Batch number

•

License plate

•

Inventory status

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Some of the parameters are listed below: •

As on - The date that the values of the report is based on

•

Item group - Select the level where the dimension is considered in the layout.

• •

No: Excluded; View: Displayed; Total: Displayed and Sub-total.

Item number - Select the level where the dimension is considered in the layout. Unit of aging period - Indicate if the aging period should be viewed per days, per dates, or per date interval.

Inventory value reports Link: https://docs.microsoft.com/en-us/learn/modules/use-inventory-reports-in-dynamics-365finance-ops/4-inventory-value-report You can use this report to do reconciliation between general ledger and inventory. Go to Cost management > Inventory accounting policies setup > Inventory value reports to configure the inventory value reports.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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You can default the configuration for a date interval, specify a range based on posting date or transaction time and display the results based on a financial dimension set for more details. In the Columns FastTab you can specify more criteria to format the column of the report to include information such as inventory dimensions, and types of ledger accounts. In the Rows FastTab you can select to include labor, materials, indirect, and direct outsourcing costs. Optionally you could include the beginning balance.

After you create and configure the inventory value report, go to Inventory management > inquiries and reports > inventory value reports > inventory values and select an ID, optionally set the date interval and then click OK. Note that if the To date is not an inventory closing date and an estimated cost exists for the items, your result may not be as accurate.

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Inventory on-hand mobile workspace Link: https://docs.microsoft.com/en-us/learn/modules/use-inventory-reports-in-dynamics-365finance-ops/5-inventory-on-hand-mobile-workspace Typically, companies have multiple shipments and multiple receipts of inventory every day. These movements constantly change the on-hand inventory status. The Inventory on-hand mobile workspace lets you see the cross-company on-hand inventory status, so that you can gain the latest insights into inventory data on the mobile device of your choice. Regardless of whether you work in the warehouse, purchasing, sales, manufacturing, or management, or have other roles, you can access on-hand inventory data anytime and anywhere. The mobile workspace provides an instant view of the on-hand inventory status across facilities, current material reservations, and unreserved on-hand inventory. You can also enter item numbers to query onhand inventory and do a filtered search for on-hand products or variants. You can search by product number or product name. For that product, you can view the following information:

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•

On-hand inventory per site

•

On-hand inventory per warehouse

•

On-hand inventory per location

•

On-hand inventory per batch (for batch-controlled products)

•

On-hand inventory per inventory status

Product on-hand inventory is shown in the following ways: •

By physical inventory (This view represents the total amount.)

•

By physical reserved (This view represents the reserved amount.)

•

By available physical (This view represents available amount that has no reservations.)

For more information about how to configure a mobile app refer to Design and build mobile apps for Dynamics 365 for Finance and Operations .

Exercise - Use the ABC classification report Link: https://docs.microsoft.com/en-us/learn/modules/use-inventory-reports-in-dynamics-365finance-ops/6-exercise-use-abc-classification-report You are asked by your manager at the company USMF to do some test ABC classification scenarios on inventory for Jan 2016. You are asked to run two ABC classification reports that will show different scenarios, with these details: •

Revenue classifications, with 80 percent (A), 15 percent (B), and 5 percent (C)

•

Value classifications, with 20 percent (A), 60 percent (B), and 20 percent (C)

To run the ABC classification report that uses Revenue classifications; 80 percent (A), 15 percent (B), and 5 percent (C), follow these steps: 1.

Go to Inventory management > Inquiries and reports > Inventory value reports > ABC classification.

In the From date field, type "01/01/16".

In the To date field, type "01/31/16".

In the A: Highest field, type "80".

In the B: Middle field, type "15".

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In the C: Lowest field, type "5".

In the ABC Models field, click the arrow, and then select Revenue.

Click OK. The ABC classification report prints to the screen.

Close the report.

To run the ABC classification report that uses Value classifications; 20 percent (A), 60 percent (B), and 20 percent (C), follow these steps: 1.

Go to Inventory management > Inquiries and reports > Inventory value reports > ABC classification.

In the From date field, type "01/01/16".

In the To date field, type "01/31/16".

In the A: Highest field, type "20".

In the B: Middle field, type "60".

In the C: Lowest field, type "20".

In the ABC Models field, click the arrow, and then select Value.

Click OK.

The ABC classification report prints to the screen.

10. Close the report.

Exercise - Use the Physical inventory by inventory dimension report Link: https://docs.microsoft.com/en-us/learn/modules/use-inventory-reports-in-dynamics-365finance-ops/7-exercise-use-inventory-dimensions-report 1.

Go to Inventory management > Inquiries and reports > Physical inventory reports > Physical inventory by inventory dimension.

In the As on field, enter today's date

Select Yes in the Configuration field.

Select Yes in the Site field.

Select Yes in the Warehouse field.

Select Yes in the Location field.

Select Yes in the Serial number field.

Select Yes in the Batch number field.

Click OK.

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10. Your report should look like this image.

11. Close the page.

Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/use-inventory-reports-in-dynamics-365finance-ops/8-use-inventory-reports-quiz

Use inventory reports in Dynamics 365 for Finance and Operations knowledge check 1.

You need to run an ABC report. Which letter represent items that make up 20 percent of the total inventory and approximately 80 percent of the company's total revenue? a.

b. A c. 2.

Selecting a date in which field in the Inventory dimension report displays the inventory quantity for inventory dimensions for that date? a.

Effective date

b. Date of c.

Check when

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d. As on

Summary Link: https://docs.microsoft.com/en-us/learn/modules/use-inventory-reports-in-dynamics-365finance-ops/9-use-inventory-reports-summary In this module you learned that you can use the ABC Classification reports to classify your inventory items, to evaluate the profitability and importance of each item. Use this information to set up the inventory, coverage code, coverage period, minimum and/or a maximum on-hand inventory when performing master planning. You also learned about the Physical inventory by inventory dimension report, and Inventory value reports, as well as the Inventory on-hand mobile workspace.

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Module 4: Create Products and Product Masters Product information management in Dynamics 365 for Finance and Operations is for the creation and maintenance of an Enterprise Products Repository. It supports larger organizations in a centralized, structured approach in creating and maintaining core master data such as product definitions. Smaller organizations that require a more decentralized approach can, with some restrictions, create and maintain their respective products while their products are automatically added to the shared products repository. This topic explains how to configure products for supply chain management processes in Finance and Operations. Lessons •

Introduction

•

Create products

•

Create product masters with variants

•

Create and configure attributes and category hierarchies

•

Configure item pricing

•

Practice Labs

•

Module summary

In this module you learned how to: •

Create products as type item and service

•

Configure default order settings

•

Create Product masters with predefined variants

•

Create and configure category hierarchies

•

Create product attributes

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Create products and product masters in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/create-products-product-masters-in-dynamics365-finance-ops/ Product information is the backbone of supply chain and retail applications across all industries. In the various modules of a business solution, product-specific information and configuration are required to manage the business processes that are related to specific products, product families, or product categories. In this module, you will learn how to: •

Create products as type item and service

•

Configure default order settings

•

Create product masters with predefined variants

•

Create and configure category hierarchies

•

Create product attributes

Introduction Link: https://docs.microsoft.com/en-us/learn/modules/create-products-product-masters-indynamics-365-finance-ops/1-create-products-product-masters-introduction Product information management in Dynamics 365 for Finance and Operations is the module where you create and maintain an Enterprise products repository. It supports larger organizations in a centralized, structured approach to create and maintain master data such as product definitions. Smaller organizations that require a more decentralized approach can, with some restrictions, create and maintain their respective products while their products are automatically added to the shared products repository. This module explains how to configure products for supply chain management processes in Finance and Operations. In this module you will learn how to: •

Create products as type item and service

•

Configure default order settings

•

Create product masters with predefined variants

•

Create and configure category hierarchies

•

Create product attributes

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The concept of a product Link: https://docs.microsoft.com/en-us/learn/modules/create-products-product-masters-indynamics-365-finance-ops/2-the-concept-of-a-product A product in Finance and Operations consists of a core product definition. This is defined independent of the organization where it is used. When the product is authorized for use in a legal entity, the additional organizationally dependent details, such as costing, coverage plans, taxation information, and preferred vendors for supplying the product and much more, are set up in the respective legal entities. Product definitions are created independently of a legal entity. Therefore, core values such as product number, type, and name are shared. Some core values can be overridden by a legal entity, such as the search name, whereas other values are kept as key definition attributes and therefore cannot be changed other than on the actual product definition. The authorization process is supported by a release function. This enables users to select products that include variations and make them available in one or more legal entities. From a decentralized process, products can be created and maintained directly from the Released products list page in the Product information management module, given that the user has the security role to follow these steps. These duties are included in the Product designer and Product design manager roles. Upon product creation in a legal entity, a core product definition is automatically created in the shared products repository. You can choose among three configuration technologies: •

Predefined variants - Are defined by predefined product dimensions. The variant definition includes the definition of a valid combination of dimensions, such as Color, Style, and Size. Each combination produces a distinct product variant.

•

Dimension-based configuration - Is typically used in manufacturing scenarios and lets you use the Configuration dimension in the definition of the bill of materials (BOMs). After a configuration is selected, the system uses the subset of BOM lines that are valid for that configuration for planning and production. This concept is also known as global BOM, because one shared BOM is used for all configurations of a product.

•

Constraint-based configuration - Uses a product configuration model to describe all possible attributes and components that are required to describe all possible variants of a product in a single model. The constraints of combinations of attributes can be described through regular expressions or table-based constraints. Configuration models and configurators become more important in product information management and are used across all industries.

When you plan the implementation of Finance and Operations, it's important that you select the correct configuration technology for a business process. A product can't be converted from one model to another after implementation. There are two types of products:

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•

Item - These are products that are purchased and that can be used for consumption, distribution, resell, and included in the production of manufactured (BOM) items.

•

Service - These are products that are used, for example, to quantify hourly services.

There are two sub types of products: •

Product - A product is a uniquely identifiable product. It serves as a core product that does not vary and therefore no product dimensions can be associated with the definition.

•

Product master - A product master holds the definition and rules that specify how distinct products are described and behave in business processes. Based on these definitions, distinct products can be generated. These distinct products are known as product variants. In Finance and Operations, a product master is associated with a product dimension group and a configuration technology to specify the business rules. The product dimensions (Color, Size, Style, and Configuration) are a specific set of attributes that can be used throughout Finance and Operations to define and track specific behaviors of the related products. These dimensions also help users search for and identify the products. Product masters serve as templates or models for variants. The variants of a product master can be either predefined or created in sales scenarios by using a product configurator. A product master is associated with one or more product dimensions.

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Product variants A product variant is based on the choice of the configuration technology, the variant can be either predefined by using the product dimensions of its master or configured by using a product configuration tool.

Create products in Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/create-products-product-masters-indynamics-365-finance-ops/3-create-products Creating a new product involves the following process: 1.

Create and define the product.

Release the product to legal entities.

Define legal entity specific data.

When you create a new product definition, the type and sub-type are the key attributes to enter. Go to Product information management > Products > Released products to create released products. The product type classifies whether a product is tangible (item) or intangible (service), whereas the subtype is a sub-classification of the product.

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Product translation The Text translation page lets you to have product translations. You can enter descriptions and product names for multiple languages. However, the product name and description are optional; only the product number is required. To open the Text Translation page, click the Translations button in the Action Pane of all product pages and list pages.

The product translations are mainly used for output on external documents, whereas the data values will always be shown in the system language, for example, when you open and view the product related list pages and pages. On external documents, the product name will be displayed according to the company language or the preferred language by the customer or vendor.

Authorizing product setup in a legal entity Before a product master can be used on a transaction, such as a sales order or purchase order, the product master and one or more of its variants must be released to each legal entity, that is, if the configuration technology is set to be predefined variants. When you are releasing products, many combinations of products, product masters, product variants, can be released to one of more legal entity: •

Single product or multiple products

•

Single product variant or multiple product variants

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Single legal entity or multiple legal entities

The release product process lets users in an organization push product definition to various legal entities. By releasing a product or a product master, you associate it with a legal entity and authorize the product definition for use in the legal entity.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Go to Product information management > Products > All products and product masters, select one or more products you want to authorize for one or more legal entities to be able to use the product in processes such as inventory, purchase, sale and production, by selecting the Release products button.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Scenario In USMF a new product is being introduced. Emil, the Product designer, has completed the setup for the new product and released it to the production legal entity USMF so production can start. After talking with Kevin, the Sales manager, they agree to release the new products into the sales legal entities US and USRT but no other countries/regions for now. Emil wants to make sure that each product variant is available in the two legal entities that they agreed upon. From the Release products page, you can view all open product release sessions, view the error if Show Infolog upon failure field is set to Yes, change the session, and initiate the release. A session is deleted if there are no more existing errors.

Finalizing released products After a product is released to a legal entity, it's definition must be completed before the product can be on a transaction, such as a sales order or purchase order. The product definition must be completed in each legal entity where it was released. You can click on the Validate button on the Product Action Pane to verify if the product is finalized. The following fields are necessary to make a product finalized. They can be entered manually or by using a template: •

Item model group

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Item group

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Storage dimension group (only if it is not specified on the product definition)

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Tracking dimension group (only if it is not specified on the product definition)

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Sales, Purchase, Inventory, BOM units

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Reservation hierarchy (if warehouse management processes are used)

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Unit sequence group ID (if warehouse management processes are used)

The following tabs are available in the Product details page: •

General - Enter or view additional information about the selected product.

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Purchase - Enter or view information on default purchase orders, purchase order pricing, and discounts

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Promote - This section is used for Retail functionality; it can prevent a product to be added to a coupon.

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Deliver - You can enable parameters such as Direct delivery and applying boxing logic to the product.

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Sell - Enter or view information on default sales orders, sales order pricing, and discounts

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Foreign trade - Enter or view information on foreign trade. This includes Intrastat and product origin. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Manage inventory - Enter or view information on product measurements, physical dimensions, handling, and packaging.

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Engineer - Enter or view information on bill of materials, production and product builder.

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Plan - Enter or view information on the plan coverage group.

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Manage projects - Enter or view information on the project category

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Manage cost - Enter or view information on the costing of the product such as cost price and cost group.

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Financial dimensions - The default financial dimensions for the main account. When you select a financial dimension value, the Dimension is used field group displays where the dimension is used in account structures and advanced rule structures.

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Warehouse - in this tab you can set up parameters if the product will be stored in a warehouse managed location, which means the warehouse is managed by the Warehouse management module.

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Retail - You can enable and assign values for this product is used in the Retail module

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Transportation - You can choose to enable to use transportation management process for the product.

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Product variants- It is only applicable for product masters, you can specify default product dimensions value such as size, color, style and configuration.

Scenario Emil, the Product designer, must finalize the setup for the new widgets that he released in company USMF. He wants to make sure that the widgets have all the mandatory setup for the product to be used in a transaction. When he is finished with the setup, Emil clicks Validate on the Released products page to ensure that mandatory fields are populated. The system will check for the attributes and produce an error if no value exists. However, the system will not block the product to be used. It is merely a check of the setup.

Product templates Most companies require the additional setup of a product before the product definition can be completed. If there are many similarities between the setups of multiple products, we recommend that you use a template.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Product templates are used to copy information from a released product to other selected released products. Product templates help streamline the process for setting up legal entity specific data for products when there are many values that are the same from one product to another. There are two types of templates that can be created: personal template and shared template. A personal template is available only by the user who created the template, whereas a shared template can be accessed by any user in the system.

Default order settings Link: https://docs.microsoft.com/en-us/learn/modules/create-products-product-masters-indynamics-365-finance-ops/4-default-order-settings Finance and Operations uses default order settings when master planning generates production orders, purchase orders, and transfer orders. The main settings involve defining the following: •

A warehouse to use for each business processes within an area when orders are created

•

The settings that modify order quantities for each module when orders are created

You can define settings that differ from the default order settings for a product on a different site and change the ranking for default values. The higher the rank, the more important the rule is, meaning that it will have a higher priority and be used before the rules with lower ranks. The general default order settings have rank zero, which can't be modified. There can only be one rule with rank zero. Rules can have the same rank, provided that the dimensions they apply to differ. This is useful for modelling site specific order settings. When a new default order settings rule is created, the values for order values, stop flag, etc. are inherited from the rule with rank zero, but can be overridden.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

The Purchase unit, Inventory unit, and Sales unit fields can be different units of measures for purchase, inventory (inventory journals and production), and sales. Products can, for example, be purchased in tons, produced in pounds, and sold in pieces. In the Purchase site, Inventory site, and Sales site fields, you can enter the default site for orders that are created for the product. If you select the Mandatory site check box, users cannot change the site that is defaulted onto the orders.

Default order settings page In the Default order settings page of each product under either the Manage Inventory or Plan Action Pane you can determine the default order to either Purchase, Production (for discrete or process manufacturing) or Kanban (lean manufacturing). In this page, on the Purchase order fast tab you can set the following fields â&#x20AC;˘

Multiple - Enter the default quantity to use for requirement calculations. This is the default quantity in which the item is produced. You can change the default quantity. You can set the default quantity per site.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

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Min. order quantity - Enter the minimum allowed number of receipts or issues for the item. This value is used in purchase lines, sales lines, production orders, inventory journals, and item coverage. You can set the default quantity per site.

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Max. order quantity - Enter the maximum allowed number of receipts or issues for the item. This is the largest quantity that will be accepted in purchase orders, inventory journals, and productions. You can set the default quantity per site.

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Standard order quantity - Enter a default quantity to use when you create a purchase line, inventory line, or sales line. You can set the default quantity per site.

The system provides a warning during purchase order entry when you enter a quantity that does not meet these criteria. With a reordering policy of period or requirement, master planning suggest planned orders that account for order quantity modifiers. Some situations require a fixed order quantity, perhaps reflecting considerations about batch tracking, transportation, production, or some other factor. Using the same values for maximum and multiple means that master planning can generate multiple planned orders for the fixed quantity. The standard order quantity for a product (expressed in the item's default purchasing unit of measure) will act as the default when you manually create a purchase order.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Master planning will suggest a quantity for a planned production order or planned transfer order. This is subject to the minimum, maximum, and multiple order quantity modifiers on the Inventory tab. These quantities reflect the product's inventory unit of measure. The system also provides a warning during manual creation of a production order or transfer order when you enter a quantity that does not meet these criteria. With a reordering policy of period or requirement, planning calculations will suggest planned orders that account for these order quantity modifiers. The standard order quantity for a product, expressed in the product's inventory unit of measure, will act as the default when you manually create a production order or transfer order. It serves an additional purpose in calculating the cost of a manufactured product, because fixed costs will be amortized based on the standard order quantity of the product. The product's standard sales order quantity and the default sales unit of measure act as default values when you enter a sales order line item. The system provides a warning if the entered quantity does not comply with the product's order quantity modifiers of minimum, maximum, and multiple. Other fields on the Default order settings page are as follows: •

The Purchase lead time, Inventory lead time, and Sales lead time fields - Show the standard delivery-, lead-, or acquisition times for products.

•

Working Days - Select this check box if the lead time must be specified in open days. Open days exclude, for example, weekends, company shutdowns, public holidays, and other non-open days. Open days are defined in calendars that are attached to the company, warehouses, work centers, and so on.

•

Stopped - Select this check box if you want to prevent the product from being used. For example, if you have enabled the Stopped check box for a product, it is blocked for purchase and if you add this product in a purchase line, a warning appears. When the product is blocked, inventory transactions that are related to the purchase order line cannot be modified. For example, when you post a packing slip or an invoice. You can, at the same time, block a purchased product and sell it. In this case, the Stopped field is selected in Purchase. However, it is blank in Inventory and Sales.

An item number can be blocked for sale, for example, if the following occurs: •

The product is still under development or manufacture, and you do not want the product to be sold or reserved.

•

You have received many defective products. The defects must be corrected before the product can be sold. Therefore, you can block the product in the meantime.

You cannot block a series or a lot of the product. If parts of the product are to be blocked, you can block them by moving inventory or by blocking the product's full stock for that period. Note that blocked for inventory applies to both inventory and production.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Unit of measure In Finance and Operations, a product cannot be sold or purchased unless a unit of measure is associated with it. You must specify all units that a company uses in the Units page. In the Released products page, you can specify units of measure for purchase orders, inventory, and sales orders. For example, a product might be purchased in pounds, stocked in liters, and sold in pints. You can specify the conversion with a specific product if it is necessary. This means that the unit conversion is only valid for the selected product. Product specificity is important because, for example, a pack of one type of product might contain five pieces whereas a pack of another type of product might contain ten pieces. Therefore, the unit Pack can be used for different quantities of pieces, dependent on the product.

Defining products as not stocked Link: https://docs.microsoft.com/en-us/learn/modules/create-products-product-masters-indynamics-365-finance-ops/5-defining-products-as-not-stocked In Finance and Operations, products can be defined as stocked or not stocked. If a product is stocked, it is carried in physical inventory and on-hand is maintained for it. If a product is not stocked, no inventory related functions are supported, such as transfer journals, counting, and it will not track on-hand inventory.

Not stocked products are defined in the Item model group page. If the Stocked product check box is cleared, the products that are associated with this item model group will be not stocked. A not stocked product is a product of the item or service type that cannot be tracked in inventory but can still be handled through the receiving and shipping process. Also, note that master planning will not include not-stocked products.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Scenario The company USMF sells consulting services to help install a home theater system. Consulting is set up as a service product and is not stocked in the warehouse. This enables USMF to sell consulting hours without having to track inventory.

Create product masters with variants Link: https://docs.microsoft.com/en-us/learn/modules/create-products-product-masters-indynamics-365-finance-ops/6-create-product-masters-with-variants Differing from product attributes, product dimensions let you track their values in all major processes, such as for cost-, inventory-, and analysis purposes. Whereas product attributes can be associated with products and product masters, product dimensions can only be used together with product masters (except for masters that are configured by using the option constraint-based configuration). This is because they make up the uniqueness of a product master's variations. You can determine which product dimensions are mandatory for a given product master by selecting the appropriate product dimension group when you create the product master. Go to Product information management > Setup > Dimension and variant groups > Product dimension groups page to create product dimension groups.

Because the product dimensions provide the uniqueness of a variation, the following rules apply: www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

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The dimension must be specified when product transactions are created, for example when a purchase or sales order line is created.

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The specified dimension applies only to the product transaction. You can neither fully nor partly change the dimension value for the related inventory transactions upon physical issue or receipt.

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Products are always reserved for each dimension. You cannot reserve products for dimension values other than those specified on the action product transaction.

Modeling configurable products Product setup lets you model configurable products. When you work with product masters, it is important to define how variations of a master are created. Frequently, many mandatory attributes must be specified to create a new variation. How such a variant is modeled is controlled by the configuration technology that is set up on its product master: •

Predefined variant - This type enables the product to be modeled based on the product dimensions, color, configuration, and size. This is the only option that can be set up directly with product variants. Any combination of the product dimensions is allowed.

•

Dimension-based configuration - A configuration technology that is used to create product variants by selecting values for product dimensions. Any combination of the product dimensions is permitted.

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Constraint-based configuration - This type enables products to be used in the Product configurator. To select this type, the product dimension group must have configuration enabled, and no other product dimensions can be enabled.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Defining product master and predefined product variants When you use the Predefined variant configuration technology, the variant uniqueness is based on the combinations of one or more applied product dimensions. For example, company USMF has different colors of televisions. Each color is a product variant that contains the details about that product. The product master contains default values for all models of the television. In USMF, you can create a Released product as either product or product master and set up pre-define variants. The dimension group that you attach to the product master determines which product dimensions are mandatory when you define its product variant(s). When you select a product dimension group and create the first product variant or assigned dimension values, it cannot be changed.

Scenario Kevin, the Sales manager at USMF, evaluated the latest sales forecast numbers for the new 60-inch LCD television and received various feedback. Kevin concluded that the LCD televisions should be available in multiple colors. Together with Emil, the Product designer, and Tony, the Production manager, they agree that the new colors will be black and silver. They also agree that the cost for the black and silver televisions will be the same. Emil wants to make sure that color is a mandatory product characteristic when the sales representative sells the product. Additionally, the color offering must be restricted to the agreed-upon list.

Product master and dimension-based configured product Variants As with the Predefined variants configuration technology, the Dimension-based configuration option requires you to use one or more product dimensions. The advantage of the Dimension configuration is

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

that you can create configuration rules and maintain configurations of bill of materials to make it easier for sales people to configure the BOM product in the sales order.

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Dimension-based product configuration Dimension-based product configuration represents a simple solution for creating many product variants from a single product master and its bill of materials. Dimension-based product configuration is based on the following key concepts: •

Product masters

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Configuration product dimension

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Configuration groups

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Bill of materials (BOM)

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Configuration route

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Configuration rules

Product masters A product master is the starting point for any product configuration process. For the dimension-based product configuration, you need a product master with this configuration technology and a product dimension group that includes the configuration product dimension.

Configuration product dimension The configuration product dimension is used to identify the product variants for a product master with the dimension-based configuration technology. The configuration dimension value is entered by the user and should help to identify the individual product variants.

Configuration groups Configuration groups are defined in a central repository and can be used for all dimension-based product configuration models. Configuration groups are associated to the individual BOM lines and hold together a group of lines that are mutually exclusive. This means that only one line in a group can be selected for a single product variant.

Bill of materials (BOM) The BOM represent the building blocks for a dimension-based product configuration. It must include all the different products that can be used in any product variant. Each line in the BOM can reference a configuration group. If a line doesn't reference a configuration group, it will be included in all product variants.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Configuration route The configuration route determines the sequence of the configuration groups, as they will be displayed to the user during the product configuration process.

Configuration rules The configuration rules represent a mechanism for ensuring that a product included in one configuration group in a BOM enforces either an inclusion or an exclusion of a product in a different configuration group in the same BOM. For Dimension-based configured products, the selection and creation of the variant of a product master, is determined by the choice that the sales order taker records based on the defined configuration rule.

Scenario The company USMF has many home theater systems that are produced in the same manner. These systems offer various features that are interchangeable, for example, different color and size DVD players and subwoofer models. When the order processors use dimension configurations, they only have to set up one product for the DVD player, and they can still provide the available combinations of DVD players and subwoofers that the customers want.

Product configuration As many products have become commodities (like cars, televisions, household appliance, and more), a need to differentiate them has arisen. The immediate response of manufacturers to this challenge has been to create variants of each product, so that customers have more alternatives. This strategy has led to increased forecast challenges, and to an increase in inventory cost and unsold products that become obsolete. By adopting a configure-to-order philosophy, manufacturers can meet customer demand for unique products while reducing or eliminating obsolete inventory items. When a manufacture-to-stock philosophy is shifted to a configure-to-order philosophy, one immediate challenge that arises is that the need for short lead times must be balanced against low inventory levels. The key to success is to carefully analyze the product portfolio, and to look for patterns in both product features and processes. The goal is to identify generic components that can be manufactured by the same equipment and used in all variants. The Product configuration feature set in Finance and Operations includes a user interface that provides a visual overview of the product configuration model structure, and a declarative constraint syntax that doesn't have to be compiled. Therefore, companies that want to support a configuration practice can get started more easily. As the following units explain, a product designer no longer requires the support of a developer to build a product configuration model, test it, and release it to the sales organization. inclusion or an exclusion of a product in a different configuration group in the same BOM.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

For Dimension-based configured products, the selection and creation of the variant of a product master, is determined by the choice that the sales order taker records based on the defined configuration rule.

Scenario The company USMF builds customized home theater systems. These home theater systems allow for many configurations, such as color of system, size of television, type of sound system, and number of speakers. Emil, the Product designer, is setting up the home theater system in Finance and Operations. He will have several different configurations based on the room size and wants to reuse the configuration setup from one room size to the next. Because of the number of options for building the home theater system and the reusability of components, domains, and table constraints, Emil must create a configuration model by using the Product information management > Products > Product configuration models page.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

By using the product configurator, you can create and maintain configuration models.

Create and configure category hierarchies and attributes Link: https://docs.microsoft.com/en-us/learn/modules/create-products-product-masters-indynamics-365-finance-ops/7-create-configure-category-hierarchies-attributes Category hierarchies are used for many reasons such as classifying products, vendors, customers, transactions for reporting and analysis purposes, supplementary hierarchies and more. Each category hierarchy consists of a structure of subcategories. An organization can create more than one category hierarchy. For example, your organization might create one category hierarchy for classifying purchased products and another hierarchy for classifying vendors. The number of category hierarchies used by your organization, and the structure and number of codes for each category hierarchy depend on the following: •

Processes of the organization

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The products and services purchased or sold

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The industry standards that apply

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The reporting requirements for the organization

Go to Product information management > Setup > Categories and attributes > Category hierarchies page to create and maintain category hierarchies.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Categories can be attached to a product from the Product categories button on all the Products list pages. Product categories can be assigned to products that are used for building procurement catalogs and other hierarchy types as well. This step is required before a product can be added to a procurement catalog.

Define product attributes Product attributes identify the details that you want to maintain for your products such as brands, manufacturer, model, and so on, and provide additional details that your organization might want to record for a particular product or category. You can associate product attributes along with a product through the category to which the product belongs. For example, when you add a category and its associated products to your procurement catalog, the attributes assigned to the procurement category are imported into the catalog and can be displayed on the procurement site. Go to Product information management > Setup > Categories and attributes > Attribute types page to create and maintain attribute types.

When you define product attributes, you must first define the attribute type and then assign the attribute type to the attribute. The attribute type identifies the type of data that can be entered for a specific attribute and a list or range of valid values that can be used for the attribute. The attribute is the value that is displayed with the product to provide the requester additional details about the product.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Go to Product information management > Setup > Categories and attributes > Attributes page to create and maintain attributes.

Depending on the attribute type that you select, the Default value field might be displayed as a check box, a drop-down field, or it might have additional required data such as a unit of measure or currency. After you create attribute types and product attributes, you must assign the product attributes to categories. Next you must assign the category to the product, and then you can define values for the product attributes.

Configure item pricing Link: https://docs.microsoft.com/en-us/learn/modules/create-products-product-masters-indynamics-365-finance-ops/8-configure-item-pricing You can set up a product's price by using costing versions or by manually specifying base prices on the Purchase, Sell, and Manage cost tabs of the Released products page. This unit explains how to configure item pricing in Finance and Operations.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Product's purchase price A product's purchase price can be predefined several different ways. The basic approaches include a standard purchase price that can be manually specified or automatically updated, based on invoices. Additional approaches to a product's purchase price will be covered in the context of purchasing, such as the use of purchase price trade agreements and purchase agreements. As the simplest approach, a product's standard purchase price can be defined in terms of its default purchase unit of measure. It represents a company-wide purchase price that acts as the default on a purchase line when other sources of pricing information do not exist. This standard purchase price can be manually specified or automatically updated by the last purchase invoice.

Product's sales price A product's sales price can be predefined in several different ways. The basic approaches include a standard sales price that can be manually specified or automatically calculated. Additional approaches to a product's sales price will be covered in the context of sales order, such as the use of sales price trade agreements and sales agreements. As the simplest approach, a product's standard sales price can be defined in terms of its default sales unit of measure. It represents a company-wide sales price that acts as the default on a sales line when other sources of pricing information do not exist. This standard sales price can be manually specified or calculated, and the calculations differ for a purchased product versus a manufactured product. With a purchased product, the product's standard purchase price and a specified markup percentage (or contribution ratio) can be used to calculate its standard sales price. This is continuously recalculated based on changes to the product's standard purchase price as the result of the last vendor invoice. With a manufactured product, the standard sales price can be updated by activating a product's sales price record, where the sales price is calculated based on a cost-plus-markup approach for its purchased components, routing operations, and overhead formulas.

Costing versions If you are not using the manual specification of base prices, you can set up costing versions. This lets you create distinct user-defined environments for maintaining and calculating products' planned costs. The Costing version setup page is found in Cost management > Predetermined cost policies setup > Costing versions.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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You can enter and maintain planned products' costs, cost categories' rate, indirect costs' rate, and ratio in the Costing versions page. The BOM calculation that is implemented on the costing version calculates and appends the manufactured product planned costs to it. This also applies to purchased products if the purchase overhead is set up to be calculated in the costing sheet. The costs that are created that have a status of Pending can be activated, discreetly or in bulk, to become effective and be applied to inventory cost and production costing. Attributes on costing versions enable constraints of content and cost calculations in that version. Products' costs in a costing version can be analyzed and maintained individually or for each costing version. Active cost history is kept with full details. Costing versions are available on all types of costing methods. However, when standard cost is enabled, there are principles in the Costing version setup page that are restricted and cannot be changed.

Scenario Vince, the Operating manager wants to build up next year's standard costs. Vince creates a new dedicated costing version for the standard costs. Various contributors populate the costing version with next year's purchased purchase costs, cost category rate, and indirect cost ratios. A BOM calculation, implemented on the costing version, calculates and inserts the standard costs for a manufactured product in the version. The calculation is based on the costing version cost set. Vince reviews the content of the costing version, correcting as necessary and locking the costing version when he is satisfied with its content. At the beginning of the next year, Vince mass-activates the costing version's costs. This makes them effective and applied for inventory valuation and production costing in the next year.

Costing version types The three costing version types are as follows: •

Planned cost - Use this costing version for products that use a cost flow assumption under actual cost (FIFO, Weighted average, or LIFO).

•

Standard cost - Use this costing version for those products that use the standard cost costing method and all other products that roll up directly to a standard cost based BOM.

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Conversion - Use this costing version when you convert a product from a nonstandard cost costing method to the standard cost costing method.

You can select the Planned cost and Standard cost costing version types in the Costing versions page. Also, you can create the Conversion costing version in the Standard cost conversion page.

Costing version types - BOM calculation A costing version can also contain data about product sales prices or purchase prices for BOM calculation purposes only. A BOM calculation can calculate a sales price for manufactured products and can also generate an associated sales price record within the Costing version. A BOM calculation with planned costs can be based on product purchase price records within the Costing version, instead of product cost records. The product purchase price records must be manually entered.

Item price page The Item price page located in Product information management > Released products > Manage Cost > Item price is used to view cost history and maintain product cost records for a single product. You

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would typically use the Item price page to create cost prices for a new product and use the Costing versions page to create cost prices for existing products. Data maintenance includes entering pending costs for a purchased product, calculating pending costs for a manufactured product, and activating pending cost records. Activating a pending cost record will change its status from Pending to Active and will change its effective date to the activation date. The Item price page displays pending and active cost records on different tabs. Different cost records for a product could reflect a different costing version, site, effective date, or status. The Item price page can also be used to view and maintain information about product sales price records and product purchase price records in a costing version. Generate a product's sales price record by using the BOM calculation page to calculate a product's sales price. The following fields are in the Pending prices tab of the Item price page: •

Price type - Shows whether the information applies to a product cost record, a product sales price record, or a product purchase price record.

•

Version - Costing version for the record.

•

Name - Name of the costing version for the record.

•

Site - Shows the applicable site for the record. Product cost records must be maintained by site.

•

Price - Enter the pending cost, display the calculated pending cost for a manufactured product, or display the active cost for a cost record.

•

Price unit - Shows the quantity that is related to the product cost record. A product's cost is typically expressed for a quantity of 1. However, it might be expressed for every 100 or 1000 to handle decimal precision issues

•

Price charges - Enter pending costs for charges for a purchased product, calculate the charges for a manufactured product (based on the amortization of constant costs), or display the charges for an active cost record.

•

Price quantity - Shows the quantity that is related to the product's miscellaneous charges. The miscellaneous charges will be amortized over the specified quantity.

•

Incl. in unit price - Shows if miscellaneous charges will be included in the product's unit cost. Miscellaneous charges must be included when the costing version reflects a standard cost type.

•

Unit - Displays the unit of measure for the cost record. A product cost record must be expressed in the product's inventory unit of measure.

•

From date - Shows the intended effective date for a pending cost record. The date might be defaulted from the costing version.

•

Blocked - A system-assigned flag that indicates that an active cost record cannot be maintained, or that the blocking flag for the costing version has blocked changes to pending cost records.

•

Calculated - A system-assigned flag that indicates that the cost record contains a calculated cost for a manufactured product.

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Log - A system-assigned flag that indicates that an Infolog exists for the cost record. You can view this by clicking the Log button. The Infolog contains warnings that are generated by the BOM calculation for the cost record.

Activate pending prices To activate a pending price for a product, click Activate. The Active prices tab has an additional field Activation date, which shows when the price was activated. To activate pending prices for many products, use the Costing versions page. If you select the Fixed receipt price field on the Setup tab in the Item model groups form, product receipts are always made at the price that is specified in the Price field under the Base cost price heading and item issues are made at the current inventory value. Fixed receipt price cannot be selected when you use the Standard cost costing method. The price for a specific product is based on the number of units that are specified in the Price unit field. If the value is 1 or blank, the cost applies for one unit of the item. However, if you specify a value more than one or zero, then the price applies for this multiple quantity of the product.

Scenario You buy a box of 50 products where the Price unit is 50. The cost applies for 50 units of the product. When you enter purchase order lines, sales order lines, or inventory journal lines, the unit price is automatically converted for the quantity given on the line.

Exercise - Create a product Link: https://docs.microsoft.com/en-us/learn/modules/create-products-product-masters-indynamics-365-finance-ops/9-exercise-create-released-product In company USMF, you need to create a new item for a new configuration of cabinet to be purchased from vendors.

Go to Product information management > Products > Released products.

Click New.

In the Product type field, select Item.

In the Product subtype field, select Product.

In the Product number field, type 'GTL007'.

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In the Product name field, type 'Cabinet 2'.

In the Item model group field, select FIFO (First In-First Out).

In the Item group field, select TV&Video.

In the Storage dimension group field, select SiteWH.

10. In the Tracking dimension group field, select None. 11. In the Inventory unit field, select ea (Each). 12. In the Purchase unit field, select ea (Each). 13. In the Sales unit field, select ea (Each). 14. In the BOM unit field, select ea (Each). 15. In the Sales Taxation, Item sales tax group field, select ALL (All sales tax codes). 16. In the Purchase Taxation, Item sales tax group field, select ALL (All sales tax codes). 17. Click OK. 18. Click Validate to ensure the product is completely finalized. This button is located on the Product Action Pane. 19. Close all pages.

Exercise - Create product masters Link: https://docs.microsoft.com/en-us/learn/modules/create-products-product-masters-indynamics-365-finance-ops/10-exercise-create-product-masters In USMF, you need to create a new item (V neck T-shirt) to buy. This item will be available in sizes; Small, Medium and Large and in colors; Black and Red. 1.

Go to Product information management > Products > Released products.

Click New.

In the Product type field, select Item.

In the Product subtype field, select Product master.

In the Product number field, type 'GTLS001'.

In the Product name field, type 'V Neck T-Shirt'.

In the Search name field, type 'VneckTShirt'.

In the Retail category field, select Apparel and Footwear.

In the Product dimension group field, select ColorSize.

10. In the Configuration technology field, select Predefined variant. 11. In the Item model group field, select FIFO (First In-First Out). 12. In the Item group field, select Audio. 13. In the Storage dimension group field, select SiteWH. www.dynamicscompanions.com Dynamics Companions

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14. In the Tracking dimension group field, select None. 15. In the Inventory unit field, select ea (Each). 16. In the Purchase unit field, select ea (Each). 17. In the Sales unit field, select ea (Each). 18. In the BOM unit field, select ea (Each). 19. In the Sales taxation, Item sales tax group field, select ALL (All sales tax codes). 20. In the Purchase taxation, Item sales tax group field, select ALL (All sales tax codes). 21. Click OK. 22. Close all pages. 23. Go to Product information management > Products > Released products. 24. Using quick filter search by item number GTLS001. 25. Click item GTLS001 to open the product master record. 26. Click the Product dimensions button from Product Action Pane. 27. Select the Sizes tab. 28. Click New in the Define sizes for a product master section. 29. In the Size field, enter Small. 30. In the Name field, enter Small. 31. In the Description field, enter Small Size. 32. Click New. 33. In the Size field, enter Medium. 34. In the Name field, enter Medium. 35. In the Description field, enter Medium Size. 36. Click New. 37. In the Size field, enter Large. 38. In the Name field, enter Large. 39. In the Description field, enter Large Size. 40. Select the Colors tab. 41. Click New in the Define colors for a product master section. 42. In the Color field, enter Black. 43. In the Name field, enter Black. 44. In the Description field, enter Black color. 45. Click New. 46. In the Color field, enter Red. 47. In the Name field, enter Red.

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48. In the Description field, enter Red color. 49. Click Save. 50. Close the page. 51. Click Released Product variants button from Product Action Pane. 52. Click Variant suggestions from Product Variant Action Pane. 53. Click Select all. 54. Click Create. 55. Close all pages.

Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/create-products-product-masters-indynamics-365-finance-ops/11-create-products-product-masters-quiz

Create products and product masters in Dynamics 365 for Finance and Operations knowledge check 1.

Which one of the following product subtypes should you select if you want to create a product which serves as a uniquely identifiable and core product? a.

Product

b. Product master c.

Product variant

d. Item 2.

Which one of the following product types should you select if you want to create a product to quantify hourly work? a.

Service

b. Product master c.

Product variant

d. Item 3.

Which one of the following parameters represents a typical order quantity of an item when it is ordered in a purchase order? a.

Min. order quantity

b. Standard order quantity c.

Multiple

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d. Max. order quantity

Summary Link: https://docs.microsoft.com/en-us/learn/modules/create-products-product-masters-indynamics-365-finance-ops/12-create-products-product-masters-summary The product structure in Finance and Operations supports the option of a more centralized master data control process and the possibility to have a holistic overview of all products in an enterprise. Additionally, it clearly structures the data with the product definitions and its characteristics. In this module you learned how to: •

Create products at the enterprise level

•

Configure and use products, product masters, and product variants

•

Release products to a legal entity

•

Finalize products at a legal entity

•

Create not stocked products

•

Create a unit of measure for products

•

Set up default order and site settings

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Module 5: Create Bill of Materials A bill of materials is a comprehensive list of all the components, parts, raw materials, assemblies and their quantities that are required to make a finished product. This module explains how create bill of materials and BOM versions by using BOM designer in Finance and Operations. Lessons •

Introduction

•

Use BOM designer

•

Practice lab

•

Module summary

In this module you learned how to: •

Create Bill of materials and BOM versions by using BOM designer

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Create bill of materials in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/create-bill-of-materials-in-dynamics-365finance-ops/ A bill of materials (BOM) defines the components that are required to produce a product. The components can be raw materials, semi-finished products, or ingredients. In some cases, services can be referenced in a BOM. However, BOMs typically describe the material resources that are required. When it's combined with a route or production flow that describes the operations and resources that are required to build a product, the BOM forms the foundation for calculating the estimated cost of the product. In this module, you will learn: â&#x20AC;˘

How to create bill of materials and BOM versions by using the BOM designer in Finance and Operations.

Introduction Link: https://docs.microsoft.com/en-us/learn/modules/create-bill-of-materials-in-dynamics-365finance-ops/1-create-bill-of-materials-introduction A bill of materials (BOM) defines the components that are required to produce a product. The components can be raw materials, semi-finished products, or ingredients. In some cases, services can be referenced in a BOM. However, BOMs typically describe the material resources that are required. When it's combined with a route or production flow that describes the operations and resources that are required to build a product, the BOM forms the foundation for calculating the estimated cost of the product. This module explains how to create bill of materials and BOM versions by using the BOM designer in Dynamics 365 for Finance and Operations.

BOM and formula versions Link: https://docs.microsoft.com/en-us/learn/modules/create-bill-of-materials-in-dynamics-365finance-ops/2-bom-formula-versions To relate a specific BOM or formula to a product variant that can be produced, you must create a BOM version or formula version. The validity of BOM versions and formula versions can be constrained by period, quantity, site, specific product dimensions, and other criteria. Formula versions have additional

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important attributes, such as yield, co-product and by-product definitions, and the cost distribution instructions for the formula.

Approval of BOM and formula versions Before a BOM version can be used in the planning or manufacturing process, it must be approved. When a BOM version is approved, the related BOM can also be approved, depending on the user's selection and authentication rights. Note that a BOM version can be approved only if the related BOM itself is approved.

Activation of the default BOM or formula version To set a specific BOM or formula as the default BOM version or formula version that will be used by master planning or used to create of production orders, you must activate the version. When a version is activated, the uniqueness of the version for the given constraints (for example, period, site, or quantity) is verified. You receive an error message if the version that you're trying to activate conflicts with a version that is already active. You must then either inactivate the conflicting version or modify the version constraints (usually the period) to prevent an ambiguous activation.

Product change with case management The product change case for approval and activation of new or changed BOMs and BOM versions provides an easy way to see an overview of the BOM version constraints. You can also approve and activate all BOMs and formulas that are related to a specific change for one activation date.

Alternative BOM versions Sometimes, the active BOM version or formula version should not be used in forecasts, sales, or a parent product. In this case, you can select a specific approved BOM as part of the requirement (forecast line,

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sales line, or BOM line) if an approved BOM version or formula version exists for the alternative BOM or formula. When planned orders, production orders, or kanbans are created, the planner or shop floor supervisor can use any approved BOM version that is valid on the requested planned production date to plan for or produce a specific product. The BOM version that is used doesn't have to be activated as the default BOM version.

BOM version control enables ongoing changes to be made to the item and different configurations to be employed depending on the manufacturing circumstance. Version control also supports phasing out of old components so that new components can be produced or bought. Version control methods allow you to start and stop the production of selected BOM versions. All BOM versions have an expiration date. However, this date can be prevented if you approve and activate the new version. The system then immediately starts to plan and buy based on the information in the new active BOM version. For example, a company, decides to start production of their best seller, a subwoofer model, at their second operational site. Therefore, a new BOM version of this subwoofer model, identical to the main version but for a different site, is created, approved, and activated. Besides making a version active or inactive, Finance and Operations offers several other ways to control which BOM version is used in production. These methods include the following: •

Date and quantity

•

Site control

Legal entities can create multiple BOM versions (identical in quantity and dates), that are produced at different sites. When this is the case, you can create a BOM version in the BOM line page and specify the site for which the BOM version is valid in the Site field. (If site is not specified, the BOM version is valid for all sites.)

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Version control based on site allows you to control which BOM versions are ready for production depending on the site on where they are produced. Legal entities can assign a BOM to multiple products or versions, depending on where it originates and if the product must go through different manufacturing processes. For example, the product may be processed by different resources or have different routes. It is common industry practice for legal entities to use the same ID to create a product at different sites, by using different routes. To support this situation, you can define a general BOM version that does not specify a specific site or warehouse.

Copy BOM versions When the BOMs are similar in Finance and Operations, the copying functionality can simplify the creation of new versions. You can copy existing BOMs in the Copy BOM/route page. After you copy the BOM items, you can change or delete the BOM lines that do not correspond to the new version, and then insert new lines. If the existing BOM contains configurations, the system also copies the configurations, together with their rules and routes to the new BOM.

Change BOM versions You can make changes to BOM versions if the components change, or if the vendor that is associated with the BOM version changes. BOM versions might also be changed because the original item is out-of-stock or has to be upgraded. The following steps summarize how to make changes to a BOM version: 1.

Create a BOM and a BOM version.

Approve the new version.

Specify the dates/site for when and where this version is active and activate the version.

Copy the BOM from an existing version.

Make any changes to the required item or items in the new version.

BOM line types Link: https://docs.microsoft.com/en-us/learn/modules/create-bill-of-materials-in-dynamics-365finance-ops/3-bom-line-types There are various BOM line types in Finance and Operations: â&#x20AC;˘

Item - Select the Item line type for materials or services that are directly consumed, and that don't require further explosion or pegged supply.

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•

Pegged supply - Select the Pegged supply line type when you want to create a sub production, a BOM line event kanban, or a direct purchase order for any product variant that the BOM line references. The sub production, event kanban, or purchase order is created when you estimate the production order. The required item quantities are automatically reserved for the consuming production order.

•

Phantom - Select the Phantom line type when you want to explode any lower-level BOM items that are contained on the BOM line. In Master scheduling, in planned cost calculation, or on estimation of a production order that uses BOM lines of the Phantom type, the parent BOM line that refers to a product variant that has a phantom BOM is replaced by the component items that are listed as BOM lines in that BOM, as determined by the applicable active BOM version of that product variant. If the product variant has an applicable active route, the operations of that route are merged into the parent route. Note that phantoms are typically used to simplify the engineering process. Extensive use of phantom BOMs in many levels influences performance, especially in highly repetitive manufacturing scenarios. To improve performance, you should avoid deep hierarchies of phantoms. Instead, use pre-exploded production BOMs and routes.

•

Vendor - Select the Vendor line type if the production process uses a subcontractor, and you want a sub production or purchase order to be created automatically for the subcontractor.

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BOM levels Link: https://docs.microsoft.com/en-us/learn/modules/create-bill-of-materials-in-dynamics-365finance-ops/4-bom-levels A single-level BOM consists of the immediately subordinate components that are necessary to build the product. It does not contain the "components of the components". When a BOM contains another BOM as its component it is known as a multilevel BOM, where the sub BOM is referred to as level one and its components as level two. BOMs can consist of as many levels as necessary, depending on the type of product being produced.

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Example of a multilevel BOM Adult bicycles consist of two wheels, a seat, handlebars, and a frame. All these components are reflected in the bicycle BOM. However, the frame also consists of several discrete items (three or four tubes welded together). Therefore, the frame has a BOM of its own. The frame's BOM is known as a sub-BOM, that is, a bill of material within the bill of material for the end-product, the bicycle. Assume that a BOM is created to assemble bicycles. The following items are set up as the product type. The products types are used in the BOM and do not require assembly. •

Wheels

•

Seat

•

Handlebars

The bicycle frame is assembled in production. This part of the process is set up as a sub-BOM that includes the following items: www.dynamicscompanions.com Dynamics Companions

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•

Tubes

•

Welding wire

•

Brackets or brace

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Complex BOM items frequently have several sub-BOMs. The number of levels, or sub-BOMs, a BOM has depends on how the item is managed. Generally, an item needs its own level in the BOM if, at a stage, the item must be: •

Tracked

•

Stored

•

Sold

The more levels a BOM has, the better the control and the more accurate the estimated costing and forecasting can be.

Create a bill of materials and BOM version by using the BOM designer Link: https://docs.microsoft.com/en-us/learn/modules/create-bill-of-materials-in-dynamics-365finance-ops/5-create-bom-bom-designer When you open the BOM designer page from the Released products page, it displays the hierarchy of bills of materials (BOMs) that are active and approved for the selected item, the default order site of the item, and the actual date. The BOM designer has two sections: •

The Tree view of the BOM structure.

•

The Details section, which shows details of the selected data. When you select a node in the tree view, the FastTabs in the details section are updated based on that node: o

BOM line details - Shows the details of the BOM line that is selected in the tree view.

Item data - Shows the details of the main item or the item that is used in the selected node. You can click Edit released product to maintain the selected item.

BOM - Shows the header of the BOM that is related to the selected node.

o o

Route - Shows the header of the route that is related to the selected node. Route operations - Shows a preview of the operations for the route. When a BOM line that is assigned to a specific operation is selected, the operation is marked as Component needed at operations.

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Use the BOM designer to perform the following actions: •

Create new BOM versions or edit the existing ones.

•

Edit and delete BOM lines.

•

Check BOMs for errors, for example, BOM circularity.

•

Check which BOM versions (if there are any) are attached to the selected BOM.

•

Check at which sites the BOM versions are assigned.

•

Print BOM and BOM lines for the selected BOM.

•

Verify the site to which the BOM line belongs.

•

Adding and editing BOMs and BOM lines.

Use the BOM lines or BOM functions to modify the BOM lines or BOM. When you select a node in the tree, the type of the node determines that functions that are available. Here is a list of the nodes, its description and its conditions. •

BOM lines > Edit - Opens a dialog box where you can edit the BOM line attributes. This function is available when a BOM lines node is selected.

•

BOM lines > Delete - Deletes a BOM line from the selected BOM. This function is available when a BOM lines node is selected, and the BOM isn't locked for editing.

•

BOM lines > Add before line - Opens a dialog box where you can select a product variant to include before the selected BOM line. This function is available when a BOM lines node is selected.

•

BOM lines > Add to component BOM - Opens a dialog box where you can select a product variant to include at the end of the selected BOM. This function is available when the node that is selected has a selected BOM. If this function isn't available, a BOM version might be missing for the selected item variant. In this case, you can click BOM > Create version to create the missing version for the selected node.

•

BOM lines > Add after line - Opens a dialog box where you can select a product variant to include after the selected BOM line. This function is available when a BOM lines node is selected. www.dynamicscompanions.com Dynamics Companions

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•

BOM > Create version - Creates a new BOM version or BOM for the product variant of the selected node. This function is available when the BOM lines node that is selected is linked to an item that has a production type of BOM or Formula.

•

BOM > Calculation - Opens a dialog box where you can run the cost or sales price calculation for the selected product variant.This function is available when the node that is selected is related to a BOM version.

•

BOM > Check - Validates and checks the selected BOM. This function is available when the node that is selected is related to a BOM version.

This is an overview of the process to create a BOM: 1.

Create all products included in all BOM versions that include the BOM itself.

Create a BOM.

Create BOM version(s) then approve and activate it. This is performed either before or after the component products are added.

Add products to specify which items to include in the BOM.

If it is necessary, create configurations and associated rules for the BOM.

Create site specific BOM/routes to allow for the automatic selection of the correct BOM and route version, as well as the item dimensions, when working with multiple sites.

Create a simple BOM without a version You can create and modify as many simple BOMs as you want to, without having to worry about attaching any items to them. Go to Product information management > Bill of materials and formulas > Bill of materials.

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You can use the BOM designer page to design and work with tree structures for bills of materials (BOMs). You can click Setup to select different configurations and specify what information appears on the lines of the tree. Click Filter to change the initial selection in the view. By setting the display principle to Selected/Active or Selected, you can select individual BOM or route versions to use in the view. You can select nonapproved and non-active BOM versions to show or maintain in the BOM designer. Note: If you open the BOM designer from the Bill of materials list page, it doesn't display route information. The selection of a BOM or route version is a property of the BOM and route version and applies to all instances of the BOM designer.

Selecting a BOM and route The filter that is applied for the BOM and route is displayed in the header of the BOM designer. You can change the filter by using the Filter dialog box. The following list describes the fields in the Filter dialog box: •

Product dimensions - If the selected finished product is a product master, you can define the active product dimensions for the main selection. Note: If you open the BOM designer for a product that isn't a product master, no product dimensions can be selected in the Filter dialog box.

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•

Site - Change the site that the BOM tree is displayed for. The default site is the default inventory site of the finished item.

•

Display principle - Select the version display principle that applies to the current BOM structure and the current route: o

When the principle is set to Active or Selected/Active, the valid BOM or route version for this date is found.

When the principle is set to Selected/Active or Selected, you can select a BOM version or route version by clicking BOM > BOM versions or Route> Route versions.

•

Version date - Enter the version date for the BOM and route. The version identifies which BOM version is used on a specific date, as determined by the version dates in the BOM version setup.

•

From quantity - Filter the versions by selecting a specific from quantity. If you set a value, different BOM and route versions might be selected.

•

Show valid only - When you select the check box, the tree structure shows only BOM lines that have valid dates. Right-click or double-click a BOM line to open the Edit BOM line page, where you can see the validity dates for that BOM line.

When you use the BOM designer to review or edit BOMs that consist of one or more levels of phantoms, the route that is associated with the top item typically spans the complete BOM hierarchy. To simplify the overview, you can lock the top-level route in the display by clicking View > Lock route. To unlock the route, click View > Unlock route. If the Resource consumption check box is not selected and the Warehouse field is blank, the picking warehouse is taken from the item master data.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Exercise - Create a BOM in the BOM Designer Link: https://docs.microsoft.com/en-us/learn/modules/create-bill-of-materials-in-dynamics-365finance-ops/6-exercise-create-bom-bom-designer As a new assistant to the product designer at the company USMF, you have received a new specification for the enclosure side. An item is not set up for this specification. Therefore, you need to create a simple BOM with component lines.

Before you begin To get the most benefit from this exercise, we recommend that you have the standard sample data available in Finance and Operations that is installed by using Lifecycle Services (LCS). Create a BOM named "High Quality Speaker" and assign it to the Audio item group at site 1. Use the BOM designer to add the following items and quantities from the list and approve the BOM by using employee 000020, Julia Funderburk. Add items to Site 1 and the following quantity: •

1 qty of M0008 / High End Cabinet / Black

•

2 qty of M0002 / Mid-Range Speaker Unit

•

1 qty of M0009 / Protective Corners

Perform the following steps: 1.

In company USMF, go to Product information management > Bills of materials and formulas > Bill of materials.

Click New.

In the Name field, type 'High Quality Speaker'.

In the Site field, select 1.

In the Item group field, enter or select Audio.

Click Designer.

Click BOM lines.

Click Add to component BOM.

In the list, find and select M0008 / High End Cabinet / Black

10. Click OK. 11. Click BOM lines. 12. Click Add after line. 13. In the list, find and select M0009 / Protective Corners 14. Click OK. 15. Click BOM lines. 16. Click Add before line.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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17. In the list, find and select M0002 / Mid-Range Speaker Unit 18. Click OK. 19. Close the page. 20. Refresh the page. 21. In the list, find and select the row for M0002 / Mid-Range Speaker Unit 22. Set Quantity to '2.0000'. 23. Click Approval. 24. Select 000020, Julia Funderburk 25. Click OK. 26. Close all pages.

Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/create-bill-of-materials-in-dynamics-365finance-ops/7-create-bill-of-materials-quiz

Create bill of materials in Dynamics 365 for Finance and Operations knowledge check 1.

You need to only account for the components of the specific item in a BOM and not track the production order. Which BOM line type should you use? a.

Item

b. Pegged supply c.

Phantom

d. Vendor 2.

You need to use a BOM line that is not fixed by a warehouse and that you request when the item is needed according to the method of production. Which BOM line type should you use? a.

Item

b. Pegged supply c.

Phantom

d. Vendor

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Summary Link: https://docs.microsoft.com/en-us/learn/modules/create-bill-of-materials-in-dynamics-365finance-ops/8-create-bill-of-materials-summary A bill of materials is a list of parts, items, assemblies and other materials that are required to create a product. Often it may include instructions required to gather and use the required materials for supply chain processes. This module provided an overview of the role of the bill of materials (BOM) as one of production's main building blocks. Since BOMs are used in production to specify ingredients or subordinate components that are physically required to make each assembled part number or item in production, they are important to the functioning of the production life cycle and processes. You also learned how to create a bill of materials by using the BOM designer in Finance and Operations.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Module 6: Configure and Perform the Procure-to-Purchase Process This topic explains how to configure and perform the procure-to-purchase process in Finance and Operations. Lessons •

Introduction

•

Procurement and sourcing business scenario

•

Create purchase requisition workflow

•

Create purchase requisitions

•

Create request for quotation

•

Use procurement policies

•

Practice Labs

•

Module summary

In this module you learned how to: •

Apply the procurement and sourcing processes in a business scenario

•

Use procurement policies

•

Create and maintain vendors

•

Create purchase requisitions

•

Create request for quotes

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Configure and perform the procure-topurchase process in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/ Procure-to-purchase is the first step of the Procure to pay process. Procure-to-purchase involves the procurement agent finding a vendor, and requesting a material or service to be purchased. In this module, you will learn how to: •

Apply the procurement and sourcing processes in a business scenario

•

Use purchasing policies

•

Create and maintain vendors

•

Create and process purchase requisitions

•

Create and process a request for quotation

Introduction Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/1-configure-procure-to-purchase-intro In the Procurement and sourcing module in Dynamics 365 for Finance and Operations, you create purchasing policies to control the purchasing process. You identify suppliers, onboard suppliers as new vendors, maintain vendor information, create agreements with your vendors, order items and services, maintain purchase orders, and confirm receipt of products. After vendor transactions are processed through Accounts payable, you can also analyze spending and vendor performance. Now, let's discuss each step of procurement and sourcing processes that apply to the procure-topurchase process in more details. The organization of the processes in the following scenarios are based on common practices across industries, and you should consider the processes in some businesses may be slightly different.

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Overview of the procure-to-purchase process Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/2-overview-procure-to-purchase-process The procurement cycle begins with products and vendors that you purchase those products from. You can use the Product information management module to define and create products and product variants. When products have been defined and created, you can authorize the products for use by releasing the products to individual legal entities. The need for products or services may arise from requisitions, for example, when an employee requires a product. Product catalogs can be set up to guide the selection of available products to select from, or requests can be made for products that are not yet made available in a catalog, allowing the purchasing department to consider how the product can be supplied. Spending limits can be used to constrain requisition spending, and the purchasing workflow adds the option of requiring approval before ordering happen. It's also possible to specify budget fund allocation, if required. The procurement department identifies suppliers for required products and services, and this can involve a request for quotation being sent out to multiple potential suppliers. It's possible to share the specifications of the product that's being requested, and potential vendors can view these to see if they can deliver a product that conforms with them. Vendors return their bids which are then reviewed by the procurement department before they select the supplier that they want to procure from. Purchase orders include an option to send out a purchase inquiry to the vendor as an alternative to a more comprehensive request for quotation process. The purchase inquiry can be used to help establish terms like prices, discounts, and delivery date for the order. If vendors are set up to use Vendor collaboration, purchase inquiry functionality is disabled. Instead the order is shared on the Vendor collaboration interface, and when a purchase order is sent the vendor can directly confirm the order.

Create and manage catalogs Purchasing professionals can create and maintain catalogs of the items and services that can be purchased for internal use in an organization. After you create products, you can create procurement catalogs to group the products that internal users can buy. After catalogs are set up, company employees can create purchase requisitions to order from them. The catalogs can be used to enforce purchasing policies, so that employees can order only the items and services that are allowed for their buying legal entity. To set up a catalog and make it available to employees, you must: •

Configure your procurement category hierarchy before you create the catalog.

•

Determine which products you want your employees to be able to order - You can show or hide specific products in a catalog node, or you can show or hide all the products in a node.

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Determine how many procurement catalogs you require - Access to a procurement catalog is determined by the catalog policy rule that you configure for the legal entity and operating unit that an employee is assigned to. o

Employees can order a product only if it's in the active procurement catalog for your organization, and if it's in an enabled node and not hidden.

The product must also be in a category that an employee has access to according to the category access policy rule.

If no catalog policy rule is defined, the category access rule alone determines the products that an employee can order on the requisition.

•

Determine how you want users to navigate through the vendor catalog by using the procurement policies.

•

Select the products users can view and order.

•

Add access to vendor websites, if users are permitted to order directly from a vendor, such as to order office supplies - This requires Procurement and sourcing > Catalogs > External catalogs to be configured. This is also named PunchOut eProcurement.

•

Activate the catalog so that users can view the catalog.

•

Update the catalog with product or catalog changes.

Create and send a request for quotation (RFQ) You can send a RFQs to vendors to request information about prices and delivery times for products. Organizations issue an RFQ when they want to buy items or services, and they want to receive competitive offers from several vendors. In an RFQ, you ask vendors to provide the prices and delivery times for the quantities of products that you specify. You can also ask vendors to specify if there are any incidental charges, such as shipping costs. You might ask if the vendor offers discounts for large orders or early payment of the vendor invoice. The RFQ process covers: •

Creating and sending an RFQ to one or more vendors.

•

Receiving and registering RFQ replies.

•

Transferring accepted RFQ replies to a purchase order, purchase agreement or purchase requisitions depending on the type of RFQ.

•

The reply from a vendor can be transferred to a trade agreement journal.

Setting up a catalog After the prerequisites have been met, you can set up catalogs. You can create either one catalog that your whole organization uses or multiple catalogs that the various divisions in your organization use. If you create one catalog for the whole organization, access to the catalog is controlled by your purchasing policy rules.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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The catalog defines which products are available when purchase requisitions are created, but you can use category access policies rules to apply additional restrictions. Because the nodes in a catalog are procurement categories, they can be suppressed by a category access policy rule. In this case, the products in that category are not available for employees to use on requisitions. You define category access policy rules on the Purchasing policies page. When a purchasing agent creates a catalog, he or she must define whether the catalog is updated manually or automatically and must specify the catalog owner. Updates are published either automatically or manually, depending on the option that you select for the catalog in the Default update type field on the Catalogs page. The following default update types are available for catalogs: •

Dynamic - The catalog is automatically updated whenever it's changed.

•

Static - The catalogs must be manually updated.

Because the products are inherited from the procurement categories, they all appear in the appropriate catalog nodes. Purchasing agent can control whether all products in a node are hidden or shown when the catalog is used in a purchase requisition. Purchasing agent can also control whether individual products in a node are hidden or shown. Before a catalog is available for employees to use in a requisition, you must define a catalog policy rule for the catalog, set the catalog's status to Active, and publish the catalog. Purchasing agent can inactivate catalogs that no longer should be available to end users.

Working with purchase requisitions Depending on the setup of your organization, you can create purchase requisitions for products that your organization uses. In the purchasing policies you define the default behavior of the purchase requisition and decide if the user can select what type of purchase requisition they can create. The replenishment requisition can only have lines with items because it is preparing lines for the master planning to pick up as a Demand for specific site or warehouse. The master planning generates then planned purchase or transfer orders depending on the item coverage policies. Therefore, when the replenishment requisition is approved, items are ready to be picked up by the master planning. In the contrary a purchase requisition for consumption is used for generating purchase orders directly. If your organization requires indirect products (products that are not required by master planning), you can submit purchase requisitions for those products. A purchase requisition is an internal document that authorizes the Purchasing department to buy items or services. The Purchasing department can use purchase requisitions to generate the actual purchase orders for the items. Purchase requisitions are internal documents, whereas purchase orders are the equivalent of external documents that the Purchasing Department submits to vendors.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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You can use a purchase requisition to submit a request for items or services that you require to perform your job function. By using purchase requisitions, you can: •

Order items and services from a hosted procurement catalog or from a vendor catalog that is hosted on an approved vendor's website.

•

Submit a requisition for a non-catalog item if this action is supported by your purchasing policies.

•

Create a requisition on behalf of someone else if you have been granted the proper permissions for your user role.

Purchase requisitions require that you define a purchase requisition workflow. This workflow controls the approval process of the purchase requisition from when it is submitted to Workflow until it is approved, after which purchase orders are created and submitted to vendors.

Requisitions that have a purpose of consumption A requisition that has a purpose of consumption represents demand for items or services that will be used internally by your organization. The demand that is created by this kind of requisition is always fulfilled by a purchase order. If Finance and Operations is set up to automatically generate purchase orders, purchase orders are created after the purchase requisition is approved.

Requisitions that have a purpose of replenishment A requisition that has a purpose of replenishment represents demand to replenish inventory. For example, you create a requisition to replenish items so that they can be sold at a specific retail location at a specific time. The demand that is created by this kind of requisition can be fulfilled by a purchase order, transfer order, production order, or kanban. When the requisition purpose is replenishment, demand is expressed as a quantity instead of a monetary amount. Therefore, encumbrance accounting, budgetary control, business rules for fixed asset determination (BRAD), project accounting, and any related rules don't apply. Only products that are stocked and released to the specified legal entity can fulfil replenishment requisition demand. To define the products that are available when the requisition purpose is replenishment, use the Replenishment category access policy rule page. To use purchase requisitions that have a purpose of replenishment, you must set up master scheduling to include requisition demand. The fulfilment method for the demand that is created by this kind of requisition is then determined automatically, based on the supply policies that have been set up for the items in your organization and planned by using master scheduling.

Create and manage purchase orders A purchase order is a document that is generated by a buyer that authorizes the purchase of products. When the document is accepted by the vendor (or seller or products), it becomes a contract binding on both parties.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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A purchase order defines the descriptions, quantities, prices, discounts, payment terms, date of performance or shipment, other associated terms and conditions, and identifies a specific seller. Many different roles and users can use purchase orders to update and keep track of the status of the orders. For example, the purchasing agent uses purchase orders to create a list of products that are to be purchased from a specific vendor. Information such as price, delivery information, and items are recorded into the purchase order. Additionally, the purchasing agent will generate a purchase order confirmation document that is the external document sent to the vendor to notify them of the purchase.

Working with purchase agreements A purchase agreement is a contract that commits an organization to buy a product in a certain quantity or amount over a period in exchange for special prices and discounts. The prices and discounts of the purchase agreement overrule any prices and discounts stated in any trade agreements that exist. A purchase agreement has a validity period that is defined by the person who creates it. The delivery date of a purchase should be within the validity period. Additionally, a purchase agreement is on hold by default. You can order from a purchase agreement only when it is set to Effective. Purchase agreements are an optional feature that can be added into the procurement process. Purchase agreements can set default prices, discounts and be linked to a purchase requisition. You can also create a purchase agreement from a reply of requests for quotes. When a purchase agreement is linked to a document, the link will be copied to other transactions and documents that are created from the document. For example, if an agreement is linked to a purchase requisition, when the purchase requisition is approved and the purchase order is created, the purchase order will automatically have a link to the purchase agreement.

Procurement scenario Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/3-procurement-scenario It is valuable to see the overall processes of procurement to tell the story for our scenario:

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There are four basic steps that are reviewed in this scenario based on the image above: 1.

Create and process a purchase requisition.

Create and process a request for quotation.

Create and process a purchase order.

Receive and invoice products from a purchase order.

Create and process a purchase requisition The company USMF is growing quickly and needs to purchase some new servers for the Information Technology (IT) department. Tim, the IT Manager, has been searching for a new server and now needs to request to purchase it. Tim can find several servers that are close to the requirements but not all the requirements. So, he decides to create a purchase requisition for the new server for a new product that is not currently in the catalog. Tim enters the details and specifications about the server. He also has a web site with the exact product that he wants, so he enters the URL into the purchase requisition. He also adds some additional accessories for the server to the requisition lines. Next, Tim suggests an existing preferred vendor, Alpine Electronics, for the purchase. However, Alpine Electronics has a history of not meeting delivery date requirements. So, he also suggests a new vendor, Trey Electronics, on the purchase requisition, and then submits the purchase requisition for approval.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Create and process a request for quotation When Alicia receives the new notification about the purchase requisition, she reviews all the information on the purchase requisition and decides to create a request for quote. This will allow the preferred vendor and the new vendor to bid on the new server. Alpine Electronics is set up to use the Vendor collaboration portal and the sales manager receives a notification that they have a new request for quotation to reply to. So, the sales manager at Alpine Electronics logs on to the Vendor collaboration portal and fills out the pricing and delivery dates for the new server and accessories. When the sales manager has finished, he or she submits the information. Meanwhile, Trey Electronics receives a fax from Alicia regarding the request for quote since they have not been set up to use the Vendor collaboration. The sales manager at Trey Electronics fills out the necessary information and faxes a copy back to Alicia. When Alicia receives the fax from Trey Electronics, she must enter the details manually into the request for quote reply. When she has finished entering the details of Trey Electronics' reply, she compares the reply from Trey Electronics to the reply from Alpine Electronics. After review, Alicia decides to confirm the bid from Trey Electronics.

Create and process a purchase order When Alicia creates an RFQ from a purchase requisition the reply goes back to the requisition. The requisition is then approved, and the purchase order can be created. Then the accepted reply goes back to the requisition, so she then opens the purchase order, reviews the information and then sends the order. Note: The purchase order created from purchase requisitions or request for quotation does not go into DRAFT. The company USMF requires all indirect procurement purchases to be routed to the Accounting department so the financial dimensions can be validated and distributed. Additionally, the Budget manager must complete a budget check and approve all IT purchases. April, the Accounts payable coordinator, receives a notification to review the purchase order that Alicia submitted. So, April reviews the purchase orders and assigns the appropriate financial dimensions to the order lines and distributes the amounts evenly over all the corporate departments. When April receives the notification of reviewing an order that is In Review, the notification is typically a task, and a work item is assigned to April. When she has finished, she completes the review of the order and Alex, the Budget manager, receives a notification to approve the purchase order. Alex opens the purchase order and performs a budget check. Since the budget check passed, he approves the purchase orders and the system notifies Alicia that the purchase order is approved. So, Alicia confirms the purchase order and sends a copy of the confirmation to Trey Electronics.

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Receive and invoice products from a purchase order Trey Electronics receives the notification and sometime later delivers the products. The server is delivered to the warehouse because it is too large to be received in Tim's office. The server accessories are delivered directly to Tim's office. When the server arrives at the warehouse, Sammy, in Shipping and Receiving, processes the product receipt for the server and moves the server to a special area of the warehouse that is used for front office purchases. Meanwhile, Tim receives the server accessories in his office. Then Sammy posts the product receipt of the accessories and brings the server to Tim's office which is the address on the purchase order. Sometime later, Annie, the Bookkeeper, receives and processes the invoice for the purchase order. Later that week, April, the Accounts payable coordinator, creates a payment proposal and a check is printed for Trey Electronics. Note: In this module we do not provide complete insight of the process of receiving and invoicing. We only discuss the overall processes of procure-to-purchase. For more information please refer to Configure and work with inventory management in Dynamics 365 for Finance and Operations and Perform Accounts payable daily procedures in Dynamics 365 for Finance and Operations.

Vendor categories and catalogs Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/4-vendor-categories-catalogs

Procurement categories You can assign vendors to procurement categories and other categories. You can also use the procurement categories to control which products can be purchase from specific vendors. You can classify a vendor as approved or preferred for a category and this can be used in the procurement policies to control if the vendor can be selected on the purchase requisition line for supplying within a category

Catalogs Procurement catalogs are used to group the products for internal users to define whether they can buy from a specific procurement category. You can hide or show categories of products and individual products in a category. When you are deciding how a catalog should be structured, you should consider which products users can view and order.

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Some benefits of using catalogs for indirect procurement are: •

Employees can quickly and easily find the products they need.

•

Procurement professionals can enforce purchasing policies and make sure that employees are purchasing only allowed products.

•

You can add products to your catalog by importing product data directly from your vendors or you can manually add products to your procurement catalog.

External vendor catalogs In addition to procurement catalogs, Finance and Operations also provides support for external vendor catalogs and imported vendor catalogs. If you rely on your vendors to host a procurement catalog, you can configure Finance and Operations to access a vendor's external catalog website by using the External catalog feature. To use this feature, you will need to receive the remote access settings from your vendor and then set up the required configurations in Finance and Operations by using the message format for an External catalog form. With external catalogs you can do the following. •

Test the catalog settings to verify that they are working properly.

•

Activate or deactivate the catalog so that your users can access the catalog.

Links to the external shopping site must be associated with the vendor for which the external catalog is configured, and your procurement categories.

Set up an external catalog for PunchOut eProcurement By using the external catalog, you can ensure that the product and price information that you subsequently process in Finance and Operations is accurate and up to date. The requisition can then be approved and converted to a purchase order and an order can be placed at the vendor. When the external catalog is set up and an employee is preparing a requisition, there will be an option to redirect to an external site, the external catalog, and return the shopping basket that was created at the external site. This communication is based on the cXML protocol and it must be set up between the systems of the buying and the selling organizations. To set up the communication, your vendor has to provide information for you to use in the configuration of the external catalog such as Identity, domain of the buyers company, "DUNS" and "DUNS number", credentials, and the URL to reach the vendors catalog.

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Setting up an external catalog The external catalog should enable an employee who enters a purchase requisition to be redirected to an external site to select products. The products that the employee selects from the external catalog are returned to Finance and Operations with up-to-date price information and from here, they can be added to the purchase requisition. The intention is not to enable employees to place an order on the external site. When setting up the external catalog, you need to make sure that the purpose of the site that can be accessed by the external catalog is to collect quote information and not to place a real order. To set up an external vendor catalog, complete the following tasks: •

Set up a procurement category hierarchy - For more information, see Set up policies for procurement category hierarchies .

•

Register the vendor in Finance and Operations - Before you can set up configurations to access an external vendor's catalog, you must set up the vendor and the vendor contact in Finance and Operations. The external catalog's vendor must also be added to the selected procurement category. For more information about registering vendors in Microsoft Dynamics 365, see Manage vendor collaboration users . For information about how to assign vendors to a procurement category, see Approve vendors for specific procurement categories .

•

Make sure that the units of measure and the currency that the vendor uses are set up - For information about how to create a unit of measure, see Manage unit of measure .

•

Configure the external vendor catalog by using the requirements for your vendor's external catalog site - For more details about this task, see Configure the external vendor catalog .

•

Test the vendor's external catalog configurations to verify that the settings are valid and that you can access the vendor's external catalog - Use the Validate settings action to validate the request setup message that you've defined. This message should cause the vendors external catalog site to be opened in a browser window. During validation, you can't order items and services from the vendor. To order items and services, you must access the vendor's catalog from a purchase requisition.

•

Activate the external catalog by using the Activate catalog button on the External catalogs page - The external catalog must be activated before employees can use it. You can inactivate the external catalog at any time.

Configure the external vendor catalog To configure the external vendor catalog you must: •

Enter a name and description for the vendor's external catalog - The name that you enter will appear on the cart that represents the external catalog that is shown to employees who creates a requisition. Employees can click on the cart to open the catalog on the vendor's external catalog site.

•

Add an image by using the External catalog image action - The image will appear on the cart that represents the external catalog that is shown to employees who create a requisition. Note

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that the image's width and height must be equal. Otherwise the image won't be displayed correctly. •

Select whether the vendor's external catalog website should appear in the same browser window as the one where the employee has created the requisition, or if it should open in a new window.

•

Select the vendor for the catalog - In the Legal entities list, there is a row for each legal entity where the vendor is set up. To allow users to request products directly from the vendor's catalog in some legal entities but not others, you can use the Prevent access or Allow access button for each legal entity where you want the catalog to be or not to be available.

•

In the Default expiration (Days) field, enter the number of days that a quotation received from the external catalog is valid and can be used to purchase from the external vendor When a quotation is created and retrieved from the vendor's external catalog site, the quotation is valid as of the current system date and remains valid for the number of days that you enter in this field.

•

Click the Add button to start mapping the procurement categories to the external catalog Then, in the Category name list, select a category. The list of categories is a superset of procurement categories that the vendor has been mapped to in all the legal entities that are set up for the vendor.

Note: Procurement policies are used to allow or restrict access to categories for the buying legal entity or receiving operating unit. Punchout to an external catalog requires that access be allowed to at least one of the procurement categories that is mapped to the catalog. •

Set up the cXML setup request message that will be sent to the vendor - The automatically generated message format is the minimal template that is required to start a session. Fill in values for the tags.

At any time, you can reload the system-generated message template by clicking Restore message format. Note that if you restore the message format, the current message will be replaced by the automatically generated message format, which has empty tags.

cXML setup message Below you can find a description of the tags that are included in the template: Field

Description

< Header >< From >< Credential domain=”” >

The domain of the buyer’s company.

< Header >< From >< Credential>< Identity >< /Identity >

The identity of the buyer’s company.

< Header >< To >< Credential domain=”” >

The domain of the vendor’s company.

< Header >< To >< Credential>< Identity >< /Identity>

The identity of the vendor’s company.

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Field

Description

< Header >< Sender >< Credential domain=”” >

The domain of the buyer’s company.

< Header >< Sender >< Credential >< Identity >< /Identity>

The identity of the buyer’s company.

< Header >< Sender >< Credential >< SharedSecret >< /SharedSecret >

The shared secret for the buyer’s company.

< Request deploymentMode=”” >

The test or production deployment.

< Request >< PunchOutSetupRequest >< SupplierSetup >< URL The URL of the vendor’s punchout >< /URL> endpoint.

Extrinsic elements An extrinsic element is additional information, such as a username that is based on a user that punches out. The extrinsic element is set when the punchout occurs and it can be sent in the request setup message. Your vendor could have a requirement for receiving an extrinsic element in the setup request. In that case, you should add the extrinsic element to the list of extrinsic elements in the Message format section of the External catalog page. Specify a name for the extrinsic element that the vendor can recognize and map it to a value. The options for values are: •

Username

•

User email

•

Random value.

For more information about the cXML protocol, see: cxml.org

Post back message The post back message is the message that is received from the vendor when the user checks out from the external site and returns to Finance and Operations. Post back messages can't be configured. The messages are based on the cXML protocol definition. Here is the information that can be part of the post back message that is received on a requisition line: Message received from vendor

Copied to requisition line in Finance and Operations

< ItemIn quantity=”” >

Quantity

< ItemIn>< ItemID >< SupplierPartID >< /SupplierPartID >

External item ID

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Message received from vendor

Copied to requisition line in Finance and Operations

< ItemDetail>< UnitPrice >< Money currency=”” >

Currency

< ItemDetail >< UnitPrice >< Money >< /Money >

Unit price

< ItemDetail >< Description ShortName=”” >

Product name

< ItemDetail >< Description >< /Description >

Included in item description; Product name if ShortName is not specified.

< ItemDetail >< UnitOfMeasure >< /UnitOfMeasure >

Unit

< ItemDetail >< Classification >< /Classification >

Included in item description

< ItemDetail >< Classification domain=”” >

Included in item description

Delete an external catalog Delete an external catalog with the Delete action on the page. If a product from the external vendor catalog has been requested, the external vendor catalog cannot be deleted. Instead, the status of the external vendor catalog is set to inactive. If you want to remove access to the external vendor's catalog site, but not delete it, change the external catalog status to Inactive.

Imported vendor catalogs You can use imported vendor catalogs to maintain product information that you receive from a vendor. This can help reduce the amount of data entry and maintenance that is required from your purchasing professionals. Imported vendor catalogs are useful when you purchase many products from a single vendor, or for products that change frequently, or if new products are introduced frequently. In addition to the time saved for data entry, imported vendor catalogs are useful if customer wants to maintain the inventory of the products. For example, Contoso is in the business of selling widgets that are produced in a factory. These widgets require various nuts, bolts, and washers for them to be assembled. Contoso purchases most of the nuts, bolts, and washers from Fabrikam. Fabrikam offers thousands of different size and types of nuts, bolts, and washers. Emil, the Product designer, is responsible for maintaining the product information and bill of materials (BOMs) in Finance and Operations. www.dynamicscompanions.com Dynamics Companions

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Instead of typing the information about the thousands of nuts, bolts, and washers into the system manually, Emil works with Fabrikam to create a template file that he can import into the system that contains all the required information about the nuts, bolts, and washers that Fabrikam offers. Then, Emil can use the imported product information to quickly find and build the BOMs for the widgets that are being produced. Note: When the vendor catalog is imported you must release the product to the legal entity and configure mandatory product information before you can use the product

Catalog process overview The process for creating a new procurement catalog includes multiple steps, and not all the steps are performed by the purchasing professional. The primary steps for creating a catalog include, first defining the product categories that you want to use in your catalog, and then associating products to those categories. Category management is a concept in which the range of products sold by an organization is split-up into discrete groups of similar or related products; these groups are known as product categories (examples of grocery categories might include: meat, vegetables, washing detergent, toothpastes).

Category hierarchies Category hierarchies are used to classify products and can be used for reporting and analysis. Each category hierarchy consists of a structure of categories. An organization can create more than one category hierarchy. For example, your organization might create one category hierarchy for classifying purchased products, and another hierarchy for selling products. The number of category hierarchies used by your organization, and the structure and categories within each category hierarchy depends on the procurement process of the organization; the products that are purchased or sold; the industry standards that apply; or the reporting requirements for the organization. After you create a category hierarchy, you can assign a type to the category hierarchy that determines how the hierarchy will be used. For example, your organization wants to set up a category hierarchy to classify products. You create a category hierarchy, and then assign the type Procurement category hierarchy to it. After you assign products to each of the categories, you can analyze the spending, costs and other statistics for each of the categories.

Category hierarchy types Go to Product information management > Setup > Categories and attributes > Category hierarchies, to create and maintain category hierarchies.

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This hierarchy is used for organizing products for purchasing activities. Only one active procurement category hierarchy can be defined for an organization.

Category policy rules There are two types of category policy rules that can be defined to control how categories function in the system: category access policy rules, and category policy rules. A category access policy rule is a type of rule that you can define which categories are available in each legal entity or operating unit. A category policy can be assigned for a procurement category. For example, a company can allow to use only approved vendors for the category or enforce matching policy rules that should be applied, and whether employees should respond to questionnaires and more. The purpose of the catalog policy rule is to define which procurement catalog is to be used within an organization. The procurement catalog defines the structure and available products in the ADD ITEMS page that can be opened from a requisition line section.

Evaluate a vendor and put a vendor on hold Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/5-evaluate-vendor-put-on-hold You could be asked to evaluate a vendor when you purchase items from them. You can use the Vendor evaluation criterion page to create a group for similar or related vendor rating criteria. To create a new Vendor evaluation criterion group, follow these steps: 1.

Open Procurement and sourcing > Setup > Vendors > Vendor evaluation criterion groups.

Click New to create a new record.

Enter a unique ID in the Name field.

Enter a brief description in the Description field.

Click Close when you are finished.

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To create a new Vendor evaluation criterion, follow these steps: 1.

Open Procurement and sourcing > Setup > Vendors > Vendor evaluation criteria.

Click New to create a new record.

Enter a unique ID in the Name field.

Enter a brief description in the Description field.

Select a group in the Vendor evaluation criterion group field.

Click Close when you are finished.

To define Vendor evaluation criterion groups for a procurement category, follow these steps: 1.

Open Procurement and sourcing > Procurement categories.

Select the node that you want in the procurement category hierarchy on the left, to add vendor evaluation criterion groups to, and then click the Vendor evaluation criterion groups tab.

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Click Add.

In the Add vendor evaluation criterion groups page, select the check box next to each vendor evaluation criterion group that you want in the left grid. All vendor evaluation criteria will be selected by default in the right grid. You can optionally select or de-select criteria from either grid.

Use the Select button to move the selected criteria groups or criteria to the lower grid.

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When you are finished selecting products, click OK.

Optionally, select the Inherit vendor evaluation criterion groups from parent category check box. When this option is selected the inherited groups will display in the grid.

After vendor evaluation criterion groups are assigned to a procurement category, you can begin to evaluate the vendors assigned to the selected procurement category. To evaluate a vendor, follow these steps: 1.

Open Procurement and sourcing > Procurement categories.

Select the node that you want in the procurement category hierarchy on the left to add product attributes to, and then click the Vendors tab.

Select the vendor that you want and then click Evaluation.

In the Rating on vendor evaluation criteria section, select a Rating option for the vendors performance in the selected area.

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Close the page when you are finished.

As the Rating field is updated for each Vendor evaluation criteria, the Average rating field will be updated automatically. Use the Buying legal entity, Vendor account, and Category fields on the top portion of the form to filter and update the evaluation information for additional vendors or categories. Performance and review of purchasing is supported through procurement and account payable reports, which include spend analysis and vendor performance analysis.

Put a vendor on hold Multiple tasks are associated with vendors. These vendor tasks are used in daily transactions and periodic time intervals. They are also used to control and verify workflow.

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The hold status for a vendor determines the types of transactions with the vendor that are permitted by your organization. For example, a vendor hold might prohibit employees from creating a purchase order for a vendor. To place a vendor on hold in the rich client, follow these steps. 1.

Go to Procurement and sourcing > Vendors > All vendors.

Select a vendor account.

On the Action Pane, click On hold.

In the form that is displayed, select an option in the Vendor hold field: o

No: Indicates that the vendor is not on hold and transactions can be completed for the vendor.

Invoice: Indicates that new vendor invoices cannot be processed for the selected vendor.

o o

All: Indicates that no new transactions can be processed for the selected vendor. Payment: Indicates that new payment journals cannot be processed for the selected vendor.

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Requisition: Indicates the new purchase requisitions cannot be processed for the selected vendor.

Never: Indicates that the selected vendor is never on hold.

In the Vendor hold release date field, enter the date when the payment hold should end, and payments should again be made to the vendor. If you do not enter a date, the hold lasts indefinitely.

Optionally enable the Apply holds in all legal entities to apply the hold to the vendor in all legal entities.

Click OK.

Create a purchase requisition Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/6-create-purchase-requisition If your organization requires indirect items (items that are not required by master planning), you can submit purchase requisitions for those items. You can also use purchase requisitions for direct materials. Purchase requisitions are internal documents, whereas purchase orders are the equivalent of external documents that the Purchasing department submits to vendors. You can select items from procurement catalogs that contain only items that are relevant for purchase requisitions. www.dynamicscompanions.com Dynamics Companions

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Consider the following scenario: Brook is a Human resources (HR) assistant, and sometimes needs to buy office supplies for her department. Since she is a non-purchasing agent, and does not have the authority to access the Purchase orders page, she can use the Purchase requisition page to make purchase requisitions and through that receive permission to buy the items that she needs. The purchase requisition process can vary from business to business and typically involves three main roles: •

Requester - The requester is the user who requested and who will receive the item on the purchase requisition line, even if that user does not actually create the purchase requisition. Several different requesters can be on the same purchase requisition. The requester's settings (such as employment, department and cost center) are used for the purchase requisition line, and in the workflow process the requester's information (such as spending limits and reporting relationships) can be used to route the purchase requisition line through the review process. Note: Rules and policies are determined by the legal entity or organization that the requester is employed within

•

Preparer - The preparer is the user who creates and submits the purchase requisition. Depending on how the system is set up, users can create purchase requisitions on behalf of other users. In that situation, the requester is not the same user who creates and submits the purchase requisition. The preparer is the on-point person for the requisition. For example, if a purchase requisition gets rejected in workflow, it will be sent back to the preparer; or if it needs to be recalled, the preparer can perform that action, but not the requester.

•

Approver - The approver is the user who must approve the purchase requisition. In some cases, there could be more than one approver for a single line or a different approver for each line on a purchase requisition. Additionally, there could also be a Reviewer that has a task in the workflow

Purchase requisition statuses Depending on the progress of a purchase requisition it can have different statuses. The purchase requisition status is displayed on the purchase requisition header in the Purchase requisitions page and in the various purchase requisition list pages. Purchase requisitions can have the following statuses: •

Draft - The purchase requisition and purchase requisition line have been created, but they haven't been submitted for review. Purchase requisitions and purchase requisition lines that have a status of Draft can be modified. A purchase requisition or purchase requisition line also has a status of Draft if it has been recalled but hasn't been resubmitted for review. You can submit or recall a purchase requisition at the document level. However, you can't submit or recall a single purchase requisition line.

•

In review - The purchase requisition lines have been submitted for review. When the workflow process is completed for a purchase requisition line, the status of that line remains In review until all remaining purchase requisition lines have been reviewed. www.dynamicscompanions.com Dynamics Companions

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•

Rejected - The purchase requisition and all purchase requisition lines have been rejected. Purchase requisitions and purchase requisition lines that have been rejected can be resubmitted.

•

Approved - A purchase requisition reaches the status of Approved, when the final step in the workflow is successfully completed. When the purchase requisition is approved the purchase order can be created from purchase requisition lines.

•

Cancelled - The purchase requisition and all purchase requisition lines have been canceled. Note: If you no longer require an item that is on a purchase requisition line, you must cancel the purchase requisition line if it has already been approved. Only purchase requisition lines that have been approved can be canceled. If any purchase requisition lines are in review, the purchase requisition will have a status of In review. In this case, you can recall the purchase requisition and delete the appropriate purchase requisition line.

•

Closed - When the purchase order is created the purchase requisition is Closed.

Purchase requisition list pages In Finance and Operations, the purchasing tasks are performed in the Procurement and sourcing module. There are several list pages available that are used to view and manage purchase requisitions. Some users have the security privilege to access all purchase requisitions while other users can only view some purchase requisitions. By default, the Purchasing agent and Purchasing manager roles allow the user to view all purchase requisitions. Most users by default only have access to the purchase requisitions that either they created, those that are created for them, or those that are assigned to them for review. Managers also have access to the purchase requisitions of users who report to them. The following list describes the purchase requisition list pages that are available in Finance and Operations: •

Procurement and sourcing > Purchase requisitions > All purchase requisitions - Use this list page to view all purchase requisitions. You can add a request for quote, view the summary total amount for all lines on a selected purchase requisition, compare versions of the purchase requisition as it is processed, and view and manage budget data for the purchase requisition.

•

Procurement and sourcing > Purchase requisitions > Purchase requisitions prepared by me - This list page is similar to the All purchase requisitions list page except it filters the view to only display purchase requisitions that are created by the current user. This also includes purchase requisitions that are created for another user on behalf of someone else. This is the main list page that is used by employees who create purchase requisitions for themselves and other employees.

•

Procurement and sourcing > Purchase requisitions > Purchase requisitions require my action > Purchase requisitions assigned to me - This list page is an extension of the All purchase requisitions list page which filters the view to only display purchase requisitions that are assigned to the current user.

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•

Procurement and sourcing > Purchase requisitions > Purchase requisitions require my action > Purchase requisitions assigned to my queues - This list page is an extension of the All purchase requisitions list page that filters the view to only display purchase requisitions that are assigned to any queues that the current user is assigned to.

•

Procurement and sourcing > Purchase requisitions > Purchase requisitions require my action > Purchase requisitions not recorded - The list page shows purchase requisitions with errors and warnings such as for pre-encumbrance or budget processing.

•

Procurement and sourcing > Purchase requisitions > Purchase requisitions review > Purchase requisitions requested for me - This list page is an extension of the All purchase requisitions list page which filters the view to only display purchase requisitions that contain items requested for the current user. This includes purchase requisitions that are created for the current user by someone else.

•

Procurement and sourcing > Purchase requisitions > Purchase requisitions review > Purchase requisitions for my direct reports - This list page is an extension of the All purchase requisitions list page that filters the view to only display purchase requisitions that contain items requested for users who directly report to the user who is currently logged on.

•

Procurement and sourcing > Purchase requisitions > Purchase requisitions review > Purchase requisitions for all my reports - This list page is an extension of the All purchase requisitions list page that filters the view to only display purchase requisitions that contain items requested for users who report to the user who is currently logged on either directly or indirectly.

•

Procurement and sourcing > Purchase requisitions > Approved purchase requisition processing > Release approved Purchase requisitions - This list page is used by the Purchasing agent to perform Demand consolidation, if appropriate, and to create purchase orders for approved purchase requisition lines.

Purchase requisition page You can use the Purchase requisitions page to create or modify a purchase requisition, and then submit the purchase requisition for review. You can create purchase requisitions for multiple users, in multiple legal entities, or organizations. You can also copy an existing purchase requisition and purchase requisition lines to create a new purchase requisition. You can approve, reject, or complete purchase requisitions that are assigned to you. You can also create a request for quotation directly from a purchase requisition if you have the necessary permissions. Note You can complete the purchase requisition if there is a review task in the purchase requisition workflow. Also when you have an approval task you can approve, reject, delegate or request change. You can also enter purchase requisitions on behalf of another user if you have permissions to request products for another worker.

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Go to Procurement and sourcing > Purchase requisitions > All purchase requisitions to create a purchase requisition. When adding a new line in the Purchase requisition page, you can select an item or category, or use the Add products button to add items from the category list. Instead of adding a line or category you can select items from external catalog which allows you to go to the vendor's website and choose your items and at the checkout, you return back to Purchase requisition page. This is called Vendor PunchOut or eProcurement. By using purchase requisitions, you can: •

Request items and services from a procurement catalog. You can also request items and services that are not listed in a catalog if this action is supported by your purchasing policies.

•

Request items or services on behalf of someone else, or in a legal entity or operating unit other than the one in which you hold a primary position.

•

Suggest a vendor from whom to order an item or service.

•

Distribute an amount on a purchase requisition line to multiple financial accounts and dimensions.

•

Perform budget checking on the purchase requisition if your organization uses budget checking.

•

Submit the purchase requisition for review and approval.

Request changes to a purchase requisition When a purchase requisition is assigned to and reviewed by you, you could need to request changes from the preparer of the purchase requisition before you approve it. For example, the business justification could require more detail for you to approve the purchase requisition, or the requested delivery date is too early and will cause a budget overrun in the current month. You can also use the Request change action to send the purchase requisition to someone other than the preparer, when you must obtain input from someone that is not configured as a reviewer or approver on the workflow. For example, you do not want the user to change something, but you just need the user to type in a comment. When you use the Request change option the workflow will resume where it left off. In contrast when you reject a purchase requisition it will go through the entire workflow again. So, you should not request changes that invalidate the approvals already provided by prior approvers; in that case a reject action is the better option.

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Convert purchase requisitions to purchase orders Purchasing policies can be defined to create rules that determine whether a purchase order is created automatically from a purchase requisition when it is completed. The settings for the purchase order and demand consolidation rule control how the purchase orders are generated when the purchase requisition is approved. By default, all purchase orders must be created manually from the Release approved purchase requisitions list page unless a policy rule is defined that outlines different actions. When a purchase requisition reaches the status Approved, you can create the purchase order(s) automatically with or without using a batch job or manually.

Demand consolidation You can use requisition consolidation to reduce procurement costs and leverage your negotiating power with your vendors. By grouping demand for goods and services, you can achieve better pricing, lower shipping and handling costs, and reduce overhead costs. When purchase requisitions are approved, they are evaluated against purchasing rules that you define and are either automatically processed into purchase orders, or they are held for manual processing. Of the purchase requisitions that are held for manual processing, select purchase requisitions could be eligible for requisition consolidation. To consolidate purchase requisition lines, following these steps: 1.

Evaluate the purchase requisition lines and group them into consolidation opportunities.

Update purchase requisition line items with changes to the vendor, price, requested date, or quote data.

Create purchase orders for the consolidated requisition line items.

Requisition consolidation overview Purchase requisition lines are eligible for the consolidation opportunity only if the purchase requisition is approved, and it meets the purchase order creation and demand consolidation rule criteria for manual processing and demand consolidation. A consolidation opportunity is a set of purchase requisition lines that are grouped together so that the purchasing professional can negotiate the best deal with vendors. Approved purchase requisitions that do not meet the criteria for demand consolidation are either automatically or manually processed into purchase orders, based on the rule settings. When you want to consolidate purchase requisition lines, you need to create a consolidation opportunity and add lines from the list of Release approved purchase requisitions. You can modify the requisition lines if necessary, for instance, you can change the vendor or delivery dates for line items

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After you add the requisition lines to the consolidation opportunity and make any changes that are needed, you can create a purchase order for the consolidated purchase requisition lines. Purchase requisition lines that are not eligible for demand consolidation or that are not selected for a consolidation opportunity must still be processed manually to create a purchase order. To consolidate approved purchase requisition line items, follow these steps: 1.

Review approved requisition line items that are eligible for consolidation.

Select the line items that you want to add to a consolidation opportunity.

Create a new consolidation opportunity or add requisition line items to an existing requisition consolidation opportunity.

Apply any changes that you want to make to your requisition line items and remove requisition line items that you no longer want to include in the consolidation opportunity.

Create purchase orders for consolidated requisition lines or for a selected requisition consolidation opportunity.

Set up business justification codes If you have the correct permissions, you can define business justification reason codes to classify and track certain types of purchases. For example, you can create codes to signify that a purchase is made for a new hire, a scheduled replacement, equipment failure, a marketing event, or other defined reason. Because business justification codes appear on purchase requisitions, the reason for a purchase is immediately visible to anyone reviewing a purchase requisition. Go to Procurement and sourcing > Setup > Policies > Business justifications to create justifications.

Create and process a request for quotation (RFQ) Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/7-create-process-rfq

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The Request for Quotation (RFQ) process invites suppliers to bid on specific products and/ or services. The RFQ is a document that is issued when an organization wants to purchase products, and it chooses to invite companies so they can submit competitive bids. This unit explains how to create request for quotations in Finance and Operations. You issue an RFQ when you want to buy an item that can be supplied by more than one vendor. You create the request for quotation, select the vendors that you want to reply to the request for quotation, and send the request for quotation to the vendors. The request for quotation states the required response time (expiry date). The RFQ process includes: •

Creating and sending a request for a quotation to one or more vendors

•

Receiving and registering request for quotation replies

•

Transferring the accepted request for quotation replies to a purchase order.

You can manually start the RFQ process in the Request for quotation page from a list page or details page, or automatically from a planned purchase order or a purchase requisition. For example, Alicia, the Purchasing agent performs the following tasks: 1.

Creates the RFQ case for an item and send to the vendor(s).

A procure agent enters the vendor reply information for the RFQ. As an alternative if the vendor is configured to use the vendor collaboration, the vendor can reply to the request for quotation from the vendor collaboration portal.

Keeps the original RFQ information

Adds the new received vendor RFQ information.

Performs a comparison of the best total price received from the vendor RFQs

Selects the vendor RFQ with the best total price

Selects and enters a reason code to reject the other vendor RFQs.

Set up RFQs Before you can create requests for quotations, you must set up RFQ information in your system. There are four basic steps for setting up RFQs: •

Define request for quotation parameters

•

Set up default request for quotation reply fields

•

Set up update parameters for quotation lines

•

Define request for quotation number sequences

Define RFQ parameters To set up request for quotation parameters, follow these steps:

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Open Procurement and sourcing > Setup > Procurement and sourcing parameters.

Click the Request for quotation FastTab.

Select the Purchase type. The purchase type selected will be the default value for new requests for quotations. The value can be overridden on each request for quotation. The choices are either Purchase order or Purchase agreement. Purchase requisition cannot be selected manually.

Enter the default days to be added to the system date expiration in the Days offset field.

Optionally enable the Working days option to only use working days from the company calendar when calculating the expiration date instead of all calendar days.

Select a default value to be applied to requests for quotations in the Mode of delivery, Delivery terms, and Terms of payment fields.

Select a trade agreement journal to apply by default for requests for quotations in the Default trade agreement journal field.

You can lock RFQ's when they are sent. This enforces an amendment process where you can change the RFQ case and then must send it by finalizing the amendment process via a wizard. If a purchaser should enter a bid for the vendor, the purchaser should be able to edit the vendors bid.

You can select an email template for the mail with the amended RFQ that goes out to the vendor contact - the email template can handle %xxx% tags where text provided in the wizard can replace the tags

Define update RFQ lines parameters Specify whether you want to update RFQ lines and RFQ reply lines automatically when you modify the RFQ header and the RFQ reply header. For each field, select one of the following options. •

Never - The lines are not updated when the request for quotation header is updated.

•

Always - The lines are updated automatically when the request for quotation header is updated.

•

Prompt - When the prompt appears, you can decide whether to update the lines.

The Sales tax group field applies only to RFQ replies.

Issue an RFQ You can create requests for quotations manually, or you can issue requests for quotations from planned purchase orders and from purchase requisitions. You can create RFQ s for the purchase types Purchase order and Purchase agreements. If the RFQ is created from a purchase requisition, the type Purchase requisition is automatically assigned to the request for quotation. For RFQs with the type of Purchase order, inventory transactions that have the receipt status Quotation receipt, are created when the request for quotation lines are created. For RFQs of the type Purchase agreement there are no inventory transactions.

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Go to Procurement and sourcing > Requests for quotations > All requests for quotations page which contains the following sections: •

Filter options for the Buyer group and Vendor account in addition to the standard list page filters.

•

A grid with each RFQ case.

•

Vendors FactBox which displays each vendor associated with the selected RFQ case.

RFQ statuses The Lowest status and Highest status columns display the status of the order line with the lowest status and the order line with the highest status. The statuses listed in the hierarchy are as follows: •

Created

•

Sent

•

Received

•

Accepted

•

Canceled

•

Rejected

The column RFQ vendor displays the status of the vendors selected for the RFQ case header. The statuses are the following: •

None - No vendors are selected for the RFQ case.

•

Single - A single vendor is selected for the RFQ case.

•

Multiple - Two or more vendors are selected for the RFQ case.

The reply status visible on the RFQ reply page in Finance and Operations are: •

Not started

•

Vendor updates

•

Purchaser updates

•

Submitted by Vendor

•

Submitted by purchaser

Note: The vendor's reply can only be entered into a dedicated page that is accessed either from the Vendor collaboration interface or the Request for quotation page via the Edit reply action.

Use purchasing policies Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/8-use-purchasing-policies

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A purchasing policy is a collection of purchasing policy rules that control the requisition process. Purchasing policies help procurement administrators implement their procurement strategy by creating a policy structure that aligns with the organization's strategic purchasing needs.

Purchasing policy rules and signing limits Policy rules apply to organizations. Application logic retrieves the purchasing policy rules applicable to the purchase requisition based on the buying legal entity and the receiving operating unit stated on the purchase requisition line. The Buying legal entity is a mandatory field on the purchase requisition line; the receiving operating unit is optional. The application defaults the buying legal entity from the requester's employment. It is mandatory that a worker is employed to request products (and the receiving operating unit from the requester's position) it is optional whether the worker is assigned a position. The preparer of the purchase requisition can change those values, provided the requester has permission to request in different organizations. The buying legal entity is the first organization that is passed into the policy rule lookup; if the system does not find a policy rule based on the buying legal entity, it will try to retrieve a policy rule that applies to the receiving operating unit. If this also does not yield a policy rule, then no purchasing policy rule applies. The creation of purchasing policies is controlled through the Enable procurement process duty parameter, which out-of-the-box is assigned to the Purchasing manager role. Based on the business requirements of the company, the purchasing manager defines any number of purchasing policies. A policy only governs the organizations to which it applies. The real application behavior configuration is achieved by implementing policy rules within a policy and setting the parameters you want. Purchasing policies are optional. All procurement functionality will work without a single purchasing policy being defined. In the absence of specific purchasing policies, the application will assume default behavior. The reason for this is to help avoid making the Finance and Operations implementation more complex by requiring policies be set up at the beginning. Instead, the system lets you start up and run with default behavior until you are ready to configure the specific policies that govern the purchasing process. The following list describes the default behavior for each of the purchasing policy rules is if no rule applies. For example, either no rule of this type is implemented, or no policy applies to the organization for which the request is made. â&#x20AC;˘

Catalog policy rule - The purpose of this rule is to set the procurement catalog to be used within an organization. The procurement catalog defines the presentation layer on the procurement site and the products available for purchase requests.

â&#x20AC;˘

Category access policy rule - The purpose of this rule is to restrict employees' access to certain procurement categories within an organization.

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•

Category policy rule - The purpose of this rule is to differentiate application behavior for specific procurement categories.

•

Purchase requisition control rule - The purpose of this rule is to configure basic purchase requisition behavior.

•

Purchase requisition request for quotation (RFQ) rule - The purpose of this rule is to configure when requests for quotations are required. Specific thresholds can be set for each procurement category. If a request for quotation is required, the purchase requisition line will be flagged accordingly so that the appropriate action can be taken during the review process.

•

Purchase order creation and demand consolidation rule - The purpose of this rule is to configure the application behavior when processing approved purchase requisition lines into purchase orders. This includes error handling (for example, when prices have increased or vendors are blocked), automatic versus manual purchase order creation, and demand consolidation.

Policies There are many different types of policies, such as, purchasing, expense, invoice, audit, and signing limit. Policies help to define rules to manage the business and they also help to enforce compliance with defined organizational rules for purchasing, expense and other business activities. Policies are enforced at the time of the transaction. Two primary elements comprise a policy; organizations and rules.

Policy organizations You can use policies to define rules that apply to all or part of your organization. The organizations a policy applies to are selected nodes from an organization hierarchy. The Companies hierarchy is automatically created. You can create other hierarchies by using the Organization hierarchy purposes page. The purpose of the organization hierarchy must match the policy type. You can use the organization hierarchies for the type Procurement internal control for Purchasing policies and use the Signing limit policies for the organizational hierarchy's type Signature authority internal control.

Policy types Finance and Operations provides appropriate policy rule types for each policy type out of the box. Each policy rule is used to control different types of documents or transactions. Developers can create additional policy rule types if required.

Limits You can create signing limits to enforce spending and approval limits that are set up for your organization.

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For example, you create a signing limit policy with two default signing limit rules. For employees with a compensation grade of 22, 23, and 24, you set the spending limit at 500 USD. However, for employees at level 25 and above, you set the spending limit at 5,000 USD. These spending limits limit spending as appropriate for employees based on their compensation level and the company they belong to. The Signing limit policy page is used to define the default signing limit rules for a selected organization node, such as a company. You can create default signing limit policies for each job or compensation grade in the organization node, depending on the signing limit basis that you have defined in the Signing limit parameters page.

Exercise - Create and process a purchase requisition Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/9-exercise-create-process-purchase-requisition Create a purchase requisition for 5 pieces of 24-inch HDMI cables using the procurement category of Computers. Ensure that your user is associated with a worker. The company that the worker is employed in determines the buying legal entity and hence the policy applied.

Create a purchase requisition 1.

In USMF, go to Procurement and sourcing, then to Purchase requisitions, and then to All purchase requisitions.

Click New.

In the Name field enter New HDMI Cables.

Click OK.

In the Reason field select General (General supplies).

In the Details field enter New, longer HDMI cables.

Add an item to the purchase requisition. 1.

Click Add products in the Purchase requisition lines FastTab.

Select the Computers procurement category (a subcategory of Office Machines).

Click Add unlisted product to lines.

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In the Product name field enter 24in HDMI Cable.

In the Unit field enter ea.

Click OK.

Change to the Line details tab.

In the Product name field enter 24-inch HDMI cable.

In the Quantity field enter 5.

10. In the Unit price field enter 41.49. 11. In the Vendor account field select 1001 (Acme Office Supplies). 12. Click OK. 13. Click Save.

Submit a purchase requisition for approval 1.

Go to Procurement and sourcing, then to Purchase requisitions, and then to All purchase requisitions.

Open the draft purchase requisition created in the previous steps.

Click Workflow at the top, and then click Submit.

In the Comment field enter Request for longer HDMI cables.

Click Submit.

Approve the purchase requisition 1.

Click Workflow at the top, and then click Approve.

In the Comment field enter Approved.

Click Approve.

Exercise - Create and process a request for quotation (RFQ) Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/10-exercise-create-process-rfq Send out a request for quotation to additional suppliers US-111 (Contoso Office Supply) and US-103 (Rain Projectors) for 500 of A0001 (HDMI 6' Cables), then reply and accept an RFQ.

Create a request for quotation 1.

Go to Procurement and sourcing, then to Requests for quotations, and then to All requests for quotations.

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Click New.

In the Purchase type field select Purchase order.

In the Document title field enter HDMI Cables.

In the Site field select 1 (Home speakers production).

In the Warehouse field select 13 (Site 1 - Finished Goods).

Click OK.

Add a line to the request for quotation 1.

If necessary, click Add line to add a line to the list.

In the Line type field select Item.

In the Item number field select A0001 (HDMI 6' Cables).

In the Quantity field enter 500.

Click Save.

Send the request for quotation to the vendors 1.

Click Options at the top, click Change view, and then select Header view.

Open the Vendor FastTab.

If necessary, click Add to add a line to the list.

In the Vendor account field select US-111 (Contoso office supply).

Click Add.

In the Vendor account field select US-103 (Rain Projectors).

Click Save.

Click Quotation at the top, and then select Send under the Process section.

Click OK.

Reply to an RFQ 1.

Go to the Procurement and sourcing > Requests for quotations > All requests for quotations.

Open the requests for quotations created in the previous steps.

Click Options at the top, click Change view, and then select Header view.

From Header view go to the list of vendors.

Select the vendor for whom you want to enter a response on the RFQ.

Click Manage replies

On the Action Pane, click Reply

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Select the reply you want to edit

Click either Edit RFQ or Edit RFQ reply.

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

10. Click the Request for quotation number for US-111 (Contoso office supply). 11. In the Quantity field enter 500. 12. In the Unit field enter ea. 13. In the Unit price field enter 10.00. 14. Click Save. 15. Close the Request for Quotation Reply form. 16. Click the Request for quotation number for US-103 (Rain Projectors). 17. In the Quantity field enter 500. 18. In the Unit field enter ea. 19. In the Unit price field enter 8.00. 20. Click Save. 21. Close the Request for Quotation Reply form.

Accept a vendor's reply 1.

Click the Request for quotation number for US-103 (Rain Projectors).

Click Reply at the top, and then select Accept under the Process section.

Click OK.

Exercise - Create purchase policies Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/11-exercise-create-purchase-policies

Create a purchase requisition permission policy 1.

Go to Procurement and sourcing > Setup > Policies > Purchase requisition permissions.

Select Mike Danseglio in the list of workers.

Change to the Requester FastTab.

Click Add.

In the Name field select Susan Burk.

Click Save.

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Create a purchasing policy 1.

Go to the Procurement and sourcing > Setup > Policies > Purchasing policies.

Click New, then Policy.

In the Name field enter Office Supplies.

In the Description field enter Office supplies policies.

In the Policy rule type field select Category access policy rule.

Click Create policy rule in the Policy rules section.

Select Office and Desk Accessories in the Available Categories list.

Click the right-arrow button.

Click OK.

10. Click Save.

Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/12-configure-procure-to-purchase-quiz

Configure and perform the procure-to-purchase process in Dynamics 365 for Finance and Operations knowledge check 1.

Which one of the following On hold options Indicates that no new transactions can be processed for the selected vendor? a.

All

b. Invoice c.

Payment

d. Requisition 2.

Which one of the following roles can prepare the purchase requisition? a.

Requester

b. Purchasing agent c.

The requester's manager

d. Department manager 3.

All the following can be the status of a purchase requisition except which one? a.

Confirmed

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b. In Review c.

Approved

d. Cancelled

Summary Link: https://docs.microsoft.com/en-us/learn/modules/configure-perform-procure-to-purchase-indynamics-365-finance-ops/13-configure-procure-to-purchase-summary In this module you learned about the procure-to-purchase process and how to set it up and perform it in Finance and Operations. You can use categories with category hierarchies to classify products, vendors, customers, or transactions for reporting and analysis. The structure and number of categories that you define depends on the business goals of the organization. You can use the vendor catalog feature to import products based on information provided by your vendor that will be maintained in the product master. The external catalog feature can be used so that your employees can purchase products that are not maintained in your product master. Both types of catalogs are useful for indirect procurement. You can use purchasing and signing limit policies to implement and enforce various rules in your business processes. Policies can be set up for all companies or organizations, or any combination of companies, departments, and cost centers. A purchase requisition is an internal document that authorizes the Purchasing department to purchase items and is used to generate the actual purchase orders for the items. With a purchase requisition, you can select items from procurement catalogs containing only those items relevant to the purchase requisitions, including the request of both catalog and non-catalog items. The Request for quotation (RFQ) feature in Finance and Operations supports the end-to-end scenario of inviting one or more vendors to supply bids on specific products and /or services, and to select which vendor to ultimately create a purchase order or purchase agreement for as a result of the RFQ process.

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Module 7: Configure Vendor Collaborations This topic explains how configure vendor collaborations in Finance and Operations. Lessons •

Introduction

•

Configure vendor collaborators

•

Use vendor collaboration

•

Practice labs

•

Module summary

In this module you learned to: •

Configure the Vendor Collaborations

•

Work with vendor collaboration workspace

•

Use vendor collaboration as part of procure-to-pay process

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Configure and manage vendor collaboration in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/ Speed, accuracy and a digital solution when communicating with vendors is an essential need for a successful business. Dynamics 365 for Finance and Operations offers seamless collaborations with vendors via the Vendor collaboration portal. In this module, you will learn how to: •

Configure vendor collaborations

•

Work with the Vendor collaboration workspace

•

Use vendor collaboration as part of a procure-to-pay process

Introduction Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/1-configure-manage-vendor-collab-intro The Vendor collaboration module in Dynamics 365 for Finance and Operations is targeted at vendors who don't have electronic data interchange, or EDI, integration with Finance and Operations. In this module you will learn how to: •

Configure vendor collaborations

•

Work with Vendor collaboration workspace

•

Use vendor collaboration as part of a procure-to-pay process

Vendor collaboration lets vendors work with purchase orders, invoices, place bids on request for quotations and consignment inventory information. The vendor collaboration interface exposes a limited set of information about purchase orders, invoices, and consignment stock to external vendor users. The following processes are supported by the Vendor collaboration module in Finance and Operations: •

Create new vendor collaboration contacts

•

Provision new vendor collaboration users

•

Provide collaboration between purchasing agents and external vendors

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•

Monitor consignment inventory

•

Work with purchase orders

•

Update vendors on purchase orders

•

View and submit vendor invoices.

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

The process flow for vendor collaboration is simple. First, you send a purchase order to a vendor. The vendor then responds to the purchase order by accepting or rejecting. If the purchase order is accepted, you can then change a purchase order and send the vendor a new version, cancel a purchase order, or add attachments to it.

Purchase order statuses with vendor collaboration Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/2-purchase-order-statuses There are four statuses of a purchase order that are typically used in vendor collaboration. •

Approved - When you're working with a vendor, a status of Approved typically means that the purchase order has been created and that you're ready to send it to the vendor for confirmation and acceptance.

•

In external review - When you're working with a vendor, the status will change to In external review when you send the purchase order to the vendor. It will also stay in that status after the vendor accepts the purchase order if the system is not set up to automatically accept or if automatic acceptance is blocked for some reason. The purchase order status will also remain as In external review if the vendor rejects the order or accepts the order with changes.

•

Confirmed - When you're working with a vendor, the purchase order status is set as Confirmed if the vendor accepts the order and the system is set up for automatic confirmation.

•

Canceled - Another status of the purchase order is Canceled. When you're working with a vendor, the purchase order status is set as Canceled after you cancel a purchase order and the vendor confirms the cancellation.

If change management is enabled for purchase orders, the purchase order goes through an approval workflow to reach the Approved status, after which the standard statuses apply. The change management process isn't visible to the vendor. There are two statuses that are relevant here: •

Draft - When you're working with a vendor, the purchase order status is set to Draft in a few situations. It will be set to Draft when the initial purchase order is created. It will be changed to Draft if you make changes to the purchase order that are requested by the vendor.

•

In review - The purchase order status is set to In review during the approval process after the Draft status. A purchase order must have the status Approved to be sent to a vendor.

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Configure vendor collaboration Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/3-configure-vendor-collaboration The vendor collaboration interface exposes a limited set of information about purchase orders, invoices, and consignment stock to external vendor users. From this interface, a vendor can also reply to requests for quotation (RFQs), and view and edit basic company information.

Vendor responses There are four types of responses that vendors can provide when you send a purchase order for confirmation.

Let's understand these types of responses. •

Vendor accepts the order and their profile is configured to automatically confirm purchase orders when they accept - The status of the order is updated to Confirmed. If something prevents the order from being updated, the vendor response is still recorded as Accepted, but the status of the purchase order remains as In external review.

•

Vendor accepts the order, and their profile is not configured to automatically confirm purchase orders when they accept - The vendor response is recorded as Accepted, but the status of the purchase order remains as In external review.

•

Vendor rejects the order - The vendor response is recorded as Rejected, and the status of the purchase order remains as In external review. The rejection is received together with the vendor's note.

•

Vendor accepts the order with changes - Changes are suggested at the line level. It's possible to accept or reject individual lines. Other possible changes include changing dates or quantities,

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splitting lines for different delivery dates or quantities, or substituting an item. Price information and charges cannot be changed by the vendor. Suggestions for changes to these can be made using notes. The vendor response is recorded as Accepted with changes and the status of the purchase order remains as In external review. You can use the Purchase order preparation workspace to monitor which purchase orders the vendor has responded to. The Purchase order preparation workspace contains two lists that contain purchase orders with the status of In external review. In external review requires action and in external review awaiting vendor response. When the vendor responds to a purchase order, they are shown a screen that gives them the opportunity to provide notes about their response. In addition to the Notes field, there is also the option to provide them with information messages that are specific to their response types. The information messages are free text entries that are based around the three types of responses: accept, accept with changes, and reject. You can set up specific text for each type of response as well for specific languages. Common types of information to include would be terms and conditions, instructions to the vendor, disclaimers and contact information and URLs. For example, if you have vendors who need information in French or Spanish, you can add versions of the text to cover that need. The language that is listed on the vendor's page will determine the language option that appears in their purchase order response forms.

Vendor setup options Before you create a user account for someone who will use vendor collaboration, you must set up the vendor to allow them to use vendor collaboration on the vendor's profile page. You can access that by opening Accounts payable > Vendors > All vendors, and then selecting the vendor from the list. You can set the Collaboration activation field to Active on the General FastTab. There are two options that you can select. •

Active (PO is auto-confirmed) - Which means that purchase orders are automatically confirmed when the vendor accepts them without changes.

•

Active (PO is not auto-confirmed) - Which means that the purchase orders need to be manually confirmed by your organization after the vendor has accepted them.

Also, on the Vendor page, if you want to share price information with the vendor, such as unit price, discounts, and charges via the vendor collaboration interface, you can set the Purchase order prices/Amount option to Yes in the Purchase order defaults FastTab. When a vendor is enabled for vendor collaboration, you can add users and authorize them for vendor collaboration access. Learn about that in the next unit.

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Set up vendor collaboration security roles Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/4-setup-vendor-collaboration-security-roles A procurement professional or a vendor that has enough permissions can request that a contact person be provisioned as a user by enabling the Provision vendor user option on the contact person record. During the provisioning process, user permissions are selected for the new external user, and the new vendor user request is submitted. It's important that you set up the user permissions that are available for selection in the vendor user request correctly. Otherwise, vendors might be granted access to information that they should not have access to in Finance and Operations. To set up the security roles that are available for selection when a new user request is used for a contact person select System administration > Security > External roles, and then select New, and select a security role and the Vendor party role. You might want to add the Vendor admin (external) and Vendor (external) roles that are provided in Finance and Operations. Or, you can use security roles that your company has created. Note: You should consider that there is an Extensible Data Security (XDS) policy implemented which ensures that a user can only see the documents related to their vendor account. If someone creates new roles then this XDS policy for this new role does not exist and it has to be added by code by a developer. Also, if someone adds additional privileges and permissions to a role, for example "view products", then there are no automatic restrictions in vendors seeing only their products. You need to discuss and plan the creation of the security role properly and we recommend using existing out-of-the-box security roles at all time and create new security roles only if absolutely necessary. You should make the Vendor admin (external) role available only if vendors should be able to create new contacts, submit vendor collaboration user requests for new users and changes to user information, and handle those requests via a workflow. If you plan to manually set up vendor contacts and users, you can make just the Vendor (external) role available. This role will then be the only role that can be requested through a vendor user request. Note The SystemUser role is automatically granted when you manually create a new user account in Finance and Operations. Therefore, you must remove that role and assign the SystemExternalUser role. If new user accounts are created via the workflow that is initiated by a vendor user request to provision a new user, one or more of the roles that you've set up for vendor collaboration and the SystemExternalUser role will be assigned.

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Vendor admin (external) security role The Vendor admin (external) role can be used for external vendors that maintain vendor contact information and make requests to provision new vendor collaboration users. External users who have this security role can perform the following tasks: •

View and modify contact person information, such as the person's title, email address, and telephone number.

•

Add a new or existing contact person to the vendor accounts that they are a contact for.

•

Delete any contact person that they have created.

•

Activate or inactivate the association between a contact person and a vendor account. After the association between a contact person and a vendor account is inactivated, the contact person can't be referred to on new purchase orders or other documents.

•

Deny or allow a contact person's access to documents on the vendor collaboration interface that are specific to the vendor account. After the association between a contact person and a vendor account is inactivated, access to documents that are specific to the vendor account is always denied.

•

Request a new user account for a contact person by using the Provision user action.

•

Request that a contact person's user account be inactivated.

•

Request that a contact person's user account be modified to add or remove security roles.

•

View RFQs.

Vendor (external) security role The Vendor (external) role can be used for external vendors that will work with purchase orders. External users who have this security role can perform the following tasks: •

Respond to and view information about purchase orders.

•

Maintain vendor collaboration invoices.

•

View consignment inventory.

•

View and respond to RFQs.

•

View vendor information.

Use the Vendor collaboration invoicing workspace Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/5-use-vendor-collaboration-invoicing-workspace The Vendor collaboration invoicing workspace can be used to view vendor invoice information and to submit invoices to Finance and Operations using workflow capabilities.

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The Summary tiles give an overview of the invoices for the selected vendor. You can view invoices by their state. •

Draft invoices - Have not been submitted to workflow.

•

Submitted, not approved invoices - Are those invoices that the vendor has submitted, but they have not been posted in Finance and Operations.

•

Approved, not paid invoices - Are those that have been posted in Finance and Operations, but they have not yet been fully paid.

•

Paid invoices - Are those that have been fully paid in Finance and Operations.

Clicking on a tile will open a filtered view of the Invoice list page.

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In the Tabular lists section, the status of the invoicing is broken down in similar ways as the summary tiles: Draft and Submitted, not approved lists. While in the Draft state, an invoice can be submitted to workflow or deleted. The last tabular list is an option to find invoices. You can filter as you search, to allow for faster searches.

Vendor collaboration invoices list page You can view all posted and unposted vendor invoices on the Vendor collaboration invoices list page. You can use this list page to view the payment status of the invoices. The payment statuses include Unposted, Unpaid, Partially paid, and Fully paid. You can create a new vendor invoice by selecting the New action on the Vendor collaboration invoicing workspace. The purchase order number and invoice number must be provided by the vendor. By default, all the lines from the vendor's purchase order will appear on the new invoice. The quantity and cost information can be edited prior to submitting the vendor invoice to workflow. You can attach files, notes, images, and links (URLs) to an invoice before submitting it.

Define the information that is shown to vendors when they respond to purchase orders Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/6-define-info-shown-to-vendors-respond-po When vendors respond to a purchase order that you send to them, they see one of three message boxes, where they must confirm that they want to accept the purchase order, reject it, or accept it with changes. Because the information that must be shown to the vendor at that point might be specific to your business, you can specify the text that appears in each confirmation message. For example, the text can inform the vendor about the next steps in the process, or about terms and conditions. To define the text that's shown in the purchase order response, follow these steps 1.

On the Procurement and sourcing > Setup > Vendor collaboration > Information for vendors responding to POs page, select the response type, and then select Edit.

In the Information message box, enter the information that should be shown to vendors in the message box.

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If you must add messages in more than one language, create separate messages, and specify the appropriate language code for each. The message that is shown to each vendor will be in the language that the vendor uses.

Work with purchase orders when vendor collaboration is used Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/7-work-purchase-orders-vendor-collaboration In this unit you will learn how to work with purchase orders when vendor collaboration is used, including: •

Send a purchase order to a vendor

•

Confirm and accept a purchase order by a vendor

•

Change a purchase order

•

Cancel a purchase order

•

Add attachments to a purchase order

•

Update a purchase order when a vendor suggests changes.

Send a purchase order to a vendor Purchase orders are prepared in Finance and Operations. When a purchase order has a status of Approved, you send it to the vendor by selecting Send for confirmation on the Purchase order page. The purchase order status is then changed to In External Review. After the purchase order has been sent, the vendor can see it on the Purchase orders for review page in the vendor collaboration interface. The vendor can then accept the purchase order, reject it, or suggest changes to it. The vendor can also add comments to communicate information such as changes to the purchase order. If you want to draw the vendor's attention to a new purchase order, you can also use the print management system to send the purchase order by email.

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Confirm and accept a purchase order by a vendor After a vendor accepts a purchase order, the purchase order can be automatically confirmed, or it might have to be manually confirmed. The behaviour depends on whether the Collaboration activation field is set to Active (PO is auto-confirmed) or In-Active (PO is not auto-confirmed) for the vendor. See the Configure vendor collaboration unit earlier in this module for an overview of the responses that the vendor can give. You can use the Purchase order preparation workspace to monitor which purchase orders the vendor has responded to. This workspace contains two lists that contain purchase orders that have a status of In external review: •

In external review requires action

•

In external review awaiting vendor response

Change a purchase order To change a purchase order that a vendor has already responded to, you must send the vendor a new version of the purchase order. The new purchase order will have a version suffix to indicate that it's a modified version of a purchase order that was previously sent. The Purchase order vendor confirmation history page lets you and your vendors track the history of each order. The previously confirmed version of a purchase order remains in the list of confirmed purchase orders until the new purchase order has been confirmed.

Cancel a purchase order When you cancel a purchase order, the status is changed to Approved. You must send the purchase order back to the vendor, so that the vendor can confirm or reject the cancellation. After the cancellation is confirmed, the purchase order appears in the vendor's list of confirmed purchase orders as Cancelled.

Add attachments to a purchase order You can add attachments such as files, images, and notes to the purchase order by using the document management system. Attachments of the External type will be visible to the vendor when you send the purchase order.

Update a purchase order when a vendor suggests changes If a vendor has responded to a purchase order and suggested changes, the next step is to process the response.

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In the Purchase order preparation workspace, in the In external review requires action list, you can identify purchase orders that a vendor has accepted with changes or rejected or accepted where no autoconfirm is configured. From this list, you can also go to the vendor's response. On a response, a vendor can change the following information on the header: •

Vendor document reference

•

Mode of delivery

•

Delivery terms

•

Confirmed delivery date

The vendor can also add a note or attachment. On the purchase order lines, the vendor can change the quantity and the delivery dates, add notes and attachments, reject a line, substitute a line with another product that is entered as text, and split a line into multiple deliveries. The status of a purchase order line varies, depending on the changes that the vendor has suggested: •

Accepted with changes

•

Rejected

•

Substituted - In this case, an extra line is added that has a status of Substitute.

•

Confirmed

•

Split into schedule - In this case, extra lines are added that have a status of Schedule lines.

If a line has no changes, the line status is Accepted. On the response, the line statuses indicate the types of changes that the vendor made. Also, all fields that were changed appear in bold to help you identify the changes. You can update a purchase order by selecting Process PO update on the response or on one line at a time. An Is PO update processed? field on the header and the lines indicates whether the system has processed the header or lines to update the purchase order with changes that originate from the response. You can run the Process PO update action only one time per header or line. www.dynamicscompanions.com Dynamics Companions

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Not all suggested changes can be updated on a purchase order. Only updates on the header, and updates of dates and quantities on lines, can be automatically updated on the purchase order. For other changes, you must manually update the purchase order. In this case, the value of the Is PO update processed? field is Manual update. For example, if a vendor suggests that a line be split into a schedule, this change must be made manually. Every line that has a status of Accepted will have a confirmed delivery date. When you run the Process PO update action, this date is updated on the purchase order. Notes and attachments aren't automatically transferred to the current purchase order. Additionally, trade agreements aren't reassessed on the purchase order lines when you update the current purchase order via the Process PO update action.

Purchase order statuses and versions Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/8-purchase-order-statuses-versions This unit describes the various statuses that a purchase order can have up to the time when it's confirmed. It also describes when new versions of a purchase order are made available to the vendor. The behavior varies, depending on whether you use change management for purchase orders.

Versions and statuses if you don't use change management This list shows an example of the changes in status and version that a purchase order might go through. •

The initial version of the purchase order is created in Finance and Operations - The status is Approved.

•

The purchase order is sent to the vendor - A version is registered in the vendor collaboration interface, and the status is changed to In External Review.

•

The vendor sends an Accepted with changes response - The status is still In External review.

•

You make some changes that the vendor requested - The state is changed to Approved.

•

You send the new version of the purchase order to the vendor - A new version is registered in the vendor collaboration interface, and the status is changed to In External Review.

•

The vendor accepts the new version of the purchase order - The status is still In External Review, unless the vendor account is configured to automatically set purchase orders to Confirmed status when the vendor accepts them.

Vendors don't have to confirm a purchase order by using the vendor collaboration interface. They can also send an email or communicate their acceptance of a purchase order via other channels. You can then manually confirm the order in Finance and Operations. In this case, you receive a warning that states that the order is being confirmed even though there is no response from the vendor. The purchase order then appears in the confirmation history as an Open www.dynamicscompanions.com Dynamics Companions

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confirmed order that doesn't have any responses. At this point, the vendor no longer has the option to confirm or reject the purchase order. The version of the purchase order that is available to other processes in Finance and Operations is always the latest version, even if that version hasn't yet been registered in the vendor collaboration interface.

Versions and statuses if you use change management If change management is enabled for purchase orders, they go through an approval workflow to reach the Approved status. This process isn't visible to the vendor. This list shows an example of the changes in status and version that a purchase order might go through when change management is turned on. A version is registered when the purchase order is approved, not when the purchase order is sent to the vendor or confirmed. •

The initial version of the purchase order is created in Finance and Operations - The status is Draft.

•

The purchase order is submitted to the approval process. (The approval process is an internal process that the vendor isn't involved in.) - The status is changed from Draft to In Review to Approval if the PO isn't rejected during the approval process. The approved purchase order is registered as a version.

•

The purchase order is sent to the vendor - The version is registered in the vendor collaboration interface, and the status is changed to In External Review.

•

You make some changes that the vendor requested, either manually or by using the Process PO update action on the response to update the purchase order - The status is changed back to Draft.

•

The purchase order is submitted to the approval process again - The status is changed from Draft to In Review to Approval if the purchase order isn't rejected during the approval process. Alternatively, the system can be configured so that specific field changes don't require re-approval. In this case, the status is first changed to Draft and is then automatically updated to Approved. The approved purchase order is registered as a new version.

•

You send the new version of the purchase order to the vendor - The new version is registered in the vendor collaboration interface, and the status is changed to In External Review.

Sharing information about consignment inventory Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/9-sharing-information-consignment-inventory If you're using consignment inventory, vendors can use the vendor collaboration interface to view information on the following pages:

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•

Purchase orders consuming consignment inventory - Purchase orders for consignment inventory are generated when the ownership of the inventory is changed from the vendor to your company. A product receipt is posted at the same time. These consignment purchase orders are shown only on the Purchase orders consuming consignment inventory page. They aren't included on the All confirmed purchase orders page in the Vendor collaboration module.

•

Products received from consignment inventory - This page lists all the transactions where the ownership of products has been transferred from the vendor to your company. Vendors can use this information to invoice the customer.

•

On-hand consignment inventory - This page shows the vendor-owned on-hand consignment inventory that has been received at your warehouse.

Work with request for quotes (RFQs) Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/10-work-with-rfqs This unit describes the interactions between customers and vendors during the RFQ process and how information is communicated to the vendors. •

Alternates - On the header of an RFQ case, you can specify that alternates are allowed for noncatalog item lines. When alternates are enabled, vendors can add an alternate line for each requested line.

•

Attachments - Attachments can be added at both the header level and the line level of an RFQ case. Attachments can be classified as either internal or external. Internal attachments can be viewed only on the customer side, whereas vendors can view external attachments after they are sent.

•

Vendors can also add attachments on their bid reply. These attachments can be viewed on the customer side after a vendor submits the bid reply. Attachments that vendors add are always classified as external. To access an attachment that a vendor has submitted together with a bid, select Bid attachments or Bid line attachments.

To open attachments that were sent together with the RFQ case, use the document handling paper clip symbol on the reply.

Amendments - When an amendment is finalized, the existing bid replies are removed so that they can be replaced by updated values. Information such as the line price and quantity from previous bid replies can be viewed via the journals on the RFQ case. o

•

To enforce amendment processing, on the Procurement and sourcing parameters page, on the Request for quotations FastTab, set the Lock RFQs when they are sent option to Yes. (This option is set and required for Public sector.)

Returns - If a vendor has submitted a bid, but more or modified information is required for the RFQ case, the customer can return the bid to the vendor. likewise, vendors can recall their bid to

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modify and resubmit. The data from the bid that was previously submitted is retained, and the vendor can make the requested modifications without having to restart the bid process.

Working with RFQs in the Vendor bidding workspace The Vendor bidding workspace lets you view the RFQs that your company has been invited to respond to. You can also respond to the RFQs. The workspace also shows all the RFQs that you've lost or won. Additionally, if the system is configured for the Public sector, the workspace shows the RFQs that are publicly available.

Viewing RFQs Open the Vendor bidding workspace to access the following information: •

New bid invitations - To see the RFQs that your company has been invited to respond to. From here, you can view an RFQ and start the bidding process. You can also see amended RFQs that a new bid must be submitted for.

•

Returned bids - To see the RFQs that the customer has returned to you so that you can provide more information or update the bid.

•

Bids in progress - To see the RFQs that you or a contact person who represents your company has been working on but hasn't yet submitted.

•

Awarded bids - To see when the customer has awarded at least one line-item in your bid.

•

Lost bids - To see bids where all lines have been rejected.

•

Request for quotations link- To see a list of all the vendor's RFQ invitations and any bids that have been submitted. The Request for quotations page lists all the RFQs that a vendor has been involved in. You can search by status.

•

Declined bids link - To see a list of all the RFQs where a vendor's contact person has declined to bid.

Working with RFQs that are publicly available People who work in the Public sector can see open and expired RFQs that have been made available to the public. •

Select the Open published requests for quotations link to see a list of open RFQs that are available to the public. An open RFQ is an RFQ that hasn't yet expired. You can find the expiration date and time on the header of the RFQ. If you've been invited to bid, you can find the same RFQ on the New bid invitations page. Sometimes, you might want to bid on an open RFQ, but you haven't been invited to bid. In this case, you might be able to invite yourself, provided that the customer has enabled self-invitation for the RFQ case.

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Select the Closed published requests for quotations link to see a list of closed RFQs that are available to the public. A closed RFQ is an RFQ that has expired. You can find the expiration date and time on the header of the RFQ. A closed RFQ shows all vendor bids down to the line level. As bids are awarded or rejected, this information is reflected in the closed RFQ. Any attachments that are included in the bid are also available.

Bidding •

Click Bid to start to bid on an RFQ. When the editing is enabled for bid fields on the headers and lines of an RFQ, you can enter your bid directly in the line grid. You must also consider any additional bid information that should be added in the line details. When you start to work on a bid, it appears in the Bids in progress section. At any time before the expiration date, you can save a bid. You can then return later to finish and submit the bid. After you submit a bid, you can recall and update it up until the expiration date.

•

Select Reset from RFQ to reset the data that you entered for a bid and revert to the original RFQ. You can reset the header or the line.

•

Select Add alternate or Remove alternate in the line grid to work with alternates. Some RFQs allow for alternate bids. You can specify alternate bids only for lines of the Category type, because specific items can't be added as alternates.

•

Select RFQ attachment or RFQ lines attachment to open any attachment that the customer has added to an RFQ. Select Bid attachments or Bid line attachments to upload attachments together with the bid. There might be questionnaires that you must answer before you're allowed to submit a bid.

•

Select Decline if you don't want to bid. After you select Decline, you can't recall the action and enter a bid.

If an RFQ is amended, you must enter a new bid. You can find information about the amendment on the Amendments tab of the RFQ page. Amended RFQs appear on the New bid invitations page.

Working with purchase orders in the Purchase order confirmation workspace Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/11-work-with-po-in-po-confirmation-workspace The Purchase order confirmation workspace lets you respond to the purchase orders that have been sent to you for review. It also lets you view information about purchase orders that are awaiting action from the customer, and purchase orders that have been confirmed but are still open.

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There are three lists in the Purchase order confirmation workspace: •

Purchase orders for review - This list shows purchase orders that have been sent to you and are awaiting a response from you. After you respond, the PO disappears from the list. If the customer sends you a new version of the purchase order before you've responded to the previous version, only the latest version is shown.

•

Awaiting customer action - This list shows all the purchase orders that you've responded to but that the customer hasn't yet confirmed. If you accept a purchase order, you can monitor it in this list until the status is changed to Confirmed. If you reject a purchase order or accept it with changes, you can monitor it here until the customer sends a new version.

•

Open confirmed purchase orders - This list shows all the purchase orders for your account that have a status of Confirmed. When products or services are fully received against the purchase order, the purchase order disappears from the list.

You can use the following pages to work with purchase orders: •

Purchase orders for review - This page contains the same information as the Purchase orders for review list in the workspace. See the description earlier in this topic.

•

Purchase order vendor confirmation history - This page contains all POs and all versions of POs that have been sent to the vendor. It also contains all the responses that have been returned from the vendor.

•

Open confirmed purchase orders This page contains the same information as the Open confirmed purchase order list in the workspace. See the description earlier in this topic.

•

All confirmed purchase orders - This page contains all the POs that have been confirmed. The POs on this page include POs where products or services have been received. You can use this list to monitor POs that you can send invoices for.

Responding to purchase orders The purchase orders that the customer sends you to review appear in the Purchase order confirmation workspace and on the Purchase orders for review page. After you open a purchase order, you can accept it, reject it, or accept it with changes. There might be attachments on the purchase order header or on individual lines. Additionally, you can attach information to your response on the PO header or individual lines. For example, you might suggest a substitute item for one of the lines. You can preview and print the purchase order as a PDF file by using the Preview/Print option. You can also use the Display dimensions action to hide or show the following dimension columns: Site, Warehouse, Color, Size, Style, and Configuration. If you use the Accept with changes option, you can accept or reject individual lines. You can also make the following changes to lines: •

Change dates or quantities - To update the confirmed delivery date on all lines, use the Update delivery date option on the PO header. www.dynamicscompanions.com Dynamics Companions

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•

Split lines for different delivery dates or quantities.

•

Substitute an item - In the Line details section, enter an item description and the item number in the External field.

You can't change pricing information or charges, but you can use notes to make suggestions for these changes. If the customer sends you a new version of a purchase order, it will have a version suffix to indicate that it's a modified version of a purchase order that was previously sent. The Purchase order vendor confirmation history page lets you track the history of each order.

Accessing vendor master data in the Vendor information workspace Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/12-access-vendor-master-data-in-vendor-info-workspace As a vendor, you can access part of the information that the customer maintains in the vendor master record. Therefore, you can keep the information up to date. To update the information, you must have a vendor admin (external) role. The accessible information is the vendor name, addresses, contact information, contact persons and their contact information, identification numbers, tax registration numbers, procurement categories that the vendor is approved to sell to the customer in, and information about certifications.

Exercise - Set up an external role for a vendor Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/13-exercise-set-up-external-role-for-vendor In this exercise you will set up an external role for a vendor, for vendor collaboration.

In company USMF, go to System administration > Security > External roles

Verify that Vendor (external) and Vendor admin (external) roles are listed.

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Go to Procurement and sourcing > Vendors > All vendors

Click the vendor 1001 to open the Details page.

In the Collaboration activation field, select active (PO is not auto-confirmed)

Select Add contacts from the Action Pane

In the first name field type 'your name'

Click Save.

Click Provision vendor user

10. Set up the email alias such as 'someone@microsoft.com'. 11. Type 'Demo vendor collaboration' in the Business justification field 12. Select the Vendor collaboration access allowed check box. 13. Select the Assign check box 14. Click Submit

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Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/14-configure-manage-vendor-collab-quiz

Configure and manage vendor collaboration in Dynamics 365 for Finance and Operations knowledge check 1.

When you send a purchase order to a vendor without change management, what status is typically applied to the purchase order? a.

Approved

b. In external review c.

Confirmed

d. Canceled 2.

Immediately after a purchase order is cancelled, what status is the purchase order set to? a.

Approved

b. Canceled c. 3.

Confirmed

Which workspace lets you view lists of purchase orders in the various states that they have progressed to and provides a summary of the actions that must be taken? a.

Purchase order preparation

b. Vendor collaboration invoicing

Summary Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-vendor-collaborationin-dynamics-365-finance-ops/15-configure-manage-vendor-collab-summary Your vendors can use the Vendor collaboration portal to interact with you and be more self-sufficient. You can also interact with your vendors by sending them notifications and gathering information from them to get their responses quickly and easily. When selected vendors of your choice use the Vendor collaboration portal, they can do the following. •

Maintain profile information

•

Add contacts

•

Request users

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•

Create category requests

•

View and bid on RFQs

•

Create vendor invoices

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Module 8: Configure and perform the Purchase-to-Pay Process The Purchase Orders module reviews the process that is required to create and manage purchase orders in Dynamics 365 for Finance and Operations. A company uses purchase orders to record information about the goods and services they are purchasing from various vendors. Lessons •

Introduction

•

Create purchase orders

•

Use purchase order change management

•

Use item orders and arrival

•

Manage over and under delivery and charges

•

Create vendor returns

•

Practice labs

•

Module summary

In this module you learned to: •

Understand overview of the purchase-to-pay scenario

•

Use purchase order change management

•

Create a Purchase order

•

Use Item arrivals and Arrival overview

•

Generate and Post the Invoice

•

Create the Invoice Journal

•

Generate and post the vendor payments

•

Create vendor returns

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[Missing]

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Module 9: Configure and Use Agreements This topic explains how to configure and use agreement in Finance and Operations. Lessons •

Introduction

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Maintain trade agreements

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Create sales agreements

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Create purchase agreements

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Configure trade allowance

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Configure brokerage

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Configure royalties

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Configure rebates

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Practice Labs

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Module summary

In this module you learned how to: •

Maintain trade agreements

•

Configure smart rounding

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Create Sales agreements

•

Use procurement policies

•

Create Purchase agreements

•

Configure Trade allowance

•

Configure Brokerage

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Configure Royalties

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Configure Rebates

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Configure and use agreements in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics365-finance-ops/ Companies negotiate and agree on certain terms to be able to fix the price of items. These agreements help businesses to make accurate estimations of cost of goods purchased and set a base for sales prices. By purchasing or selling goods, companies may be entitled to receive rebates, or gain royalty rewards which can be converted to a credit note. In this module, you will learn how to: •

Maintain trade agreements

•

Configure smart rounding

•

Create sales agreements

•

Use procurement policies

•

Create purchase agreements

•

Configure trade allowance

•

Configure brokerage

•

Configure royalties

•

Configure rebates

Introduction Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics365-finance-ops/1-configure-use-agreements-introduction Companies negotiate and agree on certain terms to be able to fix the price of goods. These agreements help businesses to make accurate estimations of cost of goods purchased and set a base for sales prices. By purchasing or selling goods, companies may be entitled to receive rebates, or gain royalty rewards which can be converted to a credit note. This module provides information about how to configure and use agreements in Dynamics 365 for Finance and Operations. In this module you will learn how to: •

Maintain trade agreements

•

Configure smart rounding www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

•

Create sales agreements

•

Use procurement policies

•

Create purchase agreements

•

Configure trade allowance

•

Configure brokerage

•

Configure royalties

•

Configure rebates

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Work with trade agreements Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics365-finance-ops/2-work-with-trade-agreements Trade agreements are fixed price or discount agreements that are set up for one or more customers or vendors for the sale or purchase of single or multiple products. Trade agreements can apply to the following: •

A specific customer, a vendor or a product.

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Groups of customers, vendors or items.

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All customers, all vendors or all items.

Sometimes with certain business activities, complimentary or supplementary items are required when a product is ordered. In Finance and Operations, these are known as supplementary sales.

Activate trade agreements To use trade agreements on purchase orders, sales orders, sales quotations and purchase requisitions, you must activate the combinations of price agreements. Finance and Operations contains control structures to activate these pricing and discount structures. You can activate trade agreements so that each organization can activate relevant structures and deactivate structures not relevant to the company's business processes. This feature provides more control for sales and purchase order processing. To access the Activate price/discount page: •

For sales orders, open Sales and marketing > Setup >Prices and discounts > Activate price/discount.

•

For purchase orders, open Procurement and sourcing > Setup > Prices and discounts > Activate price/discount.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

When you open the Activate price/discount page from the Sales and marketing module each tab displays check boxes for the possible combinations of Customer, Customer group, or All customers and Items, Item discount groups, or All items. You can select these check boxes for access to the various combinations of trade agreements. However, not all combinations are available for selection. •

Price can only be activated for specific items.

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Line discounts can be activated for items, item line discount groups, or all items

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Multiline discounts can be activated for item multiline discount groups or all items

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Total discounts can only be activated for all items.

Set up trade agreements The trade agreements are created in the Price/discount agreement journal page. You can open this page by using one of the following locations: •

The Price/discount groups are created from the Sales and marketing, Procurement and sourcing and the Inventory and warehouse management modules.

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Directly from the Action Pane in the Customer, Vendor or Released products page.

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The Price/discount agreement journals page.

Price and discount information, availability and it's effect are as follows: •

•

Customer discount group o

In the Customers page on the Sales order details FastTab in the Discount field group. The customer is included in the Price/discount group selected.

On the sales order header view on the Price and discount FastTab in the Discount or Charges field group. The sales order is included in the Price/discount group selected.

Vendor discount group o

In the Vendors page on the Purchase order defaults FastTab in the fields available in the Discount field group. The vendor is included in the Price/discount group selected.

On the purchase order header view on the Price and discount FastTab in the Discount or Charges field group. The purchase order highlighted is included in the Price/discount group selected.

Item discount group - In the Released products page on the Purchase and sales FastTabs in the Line discount and Multiline discount fields in the Discount field group. The item highlighted is included in the Price/discount groups selected.

Trade agreement journals You can use trade agreement journals to create and maintain trade agreements.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

You can create new agreements manually or by copying and modifying existing agreements. This is helpful if a new company is starting without any agreements specified. You can enter all agreements from the Trade agreement journal. You can use existing agreements to retrieve or modify a change that occurs. For example, in price or delivery days. Also, you can copy, change prices, and keep existing agreements to use as historical information so there is a record of the transactions with prior prices. You can create trade agreements and modify them in a journal to post and update at a future time, for example, if the journals must be approved before they are posted.

Price There are two types of trade agreements relating to price. They are used for special pricing on sales and purchase orders transactions. •

Sales price agreements - Used for certain items, customers, groups of customers or all customers.

•

Purchase price agreements - Used for certain items, vendors, groups of vendors or all vendors.

When you set up a trade agreement relating to price, you specify specific prices that apply to purchases of specific amounts of the item(s) in, for example, defined time periods. Trade agreement relating to prices are also used to specify individual item delivery times for each customer. For example, if multiple customers are allowed the same pricing, the Price/discounts group supports entering one instance of their agreed prices under a specific group. Then you attach this group to each customer or customer group to allow for automatic pricing across the group for every order to each of those customers.

Line discounts Line discount agreements are a discount percentage or a discount amount that can be applied if the quantity on the sales or purchase order line meets the minimum quantity and maximum quantity required by the agreement.

The following scenario explains how the percentages are calculated on a sales order: The item LCD Television HD Black 42 inches, costs 2000.00 USD. The minimum quantity for a line discount is 10, the Discount is set at 2.00 USD, Percent 1 is set to 10 percent and Percent 2 is set to 2 percent. If a customer orders 10 pieces, the cost for each item is 2000.00 USD minus 2.00 USD which equals 1998.00 USD for each item. This gives a line total of 19,980.00 USD. Now the discount percentages 1 and 2 are applied to the line amount. First, the system subtracts 10 percent (Discount percentage 1) from 19,980.00 USD which equals 17,982.00 USD. Then the system

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

subtracts 2 percent (Discount percentage 2) from 17,982.00 USD which equals the final cost of 17,622.36 USD for 10 pieces of "LCD Television HD Black 42 inches". When you create a sales order for 10 pieces of the LCD Television HD Black 42 inches, for customer 2001, Waterfall Hotel. The discount is calculated to 11.80 percent and is transferred to the order line in the Disc. pct. field. The fixed discount amount is transferred to the Discount field of the sales order line. The same information can be viewed from the Price/discount tab of the sales order line.

Multiline discounts The multiline discount can be applied when one or more sales order lines that are added together meet the discount requirement. The items must be in the same multiline discount group. This kind of discount is used when, for example, a company wants to give a discount if a customer orders over 10 items in the item discount group.

Total discounts Total discounts are applied on the total value of the sales or purchase order. This kind of discount is used when, for example, a company wants to give a discount when a single sales order includes a minimum of 3000.00 USD worth of items. Total discounts are only applied to items that have the Total discounts check box selected on the Released product page, in the Purchase or Sell FastTabs.

Generic currency Generic currency allows for trade agreements to be set up for one currency. However, it can be used for all currencies. The default generic currency is defined in Sales and marketing > Setup > Account receivable parameters > Prices. The parameters in this page also allow for you to select the exchange rate type which will be used with generic currency and whether to apply smart rounding after currency conversion has occurred. If the generic currency is selected on a sales price trade agreement, then the price specified by the trade agreement will be in a generic currency. This trade agreement is valid for all currencies where the price and price charges can be translated into any currency defined by using exchange rates. Generic currency can be used for the following trade agreements: •

Sales price

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Sales line discount

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Sales multiline discount

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Sales total discount

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Smart rounding The smart rounding concept that supports psychological pricing, can also be thought of as a "price ending" based on the marketing theory that prices have a psychological effect on people. It relates to prices expressed as odd prices presented as a little less than a round number, such as using 19.99 USD instead of 20.00 USD. The smart rounding rules are static and rarely change. They are also currency dependent. This means that one currency can follow one set of rules and another currency can follow another set of rules. You can apply smart rounding after a bulk adjustment of trade agreements, or automatically apply it after a unit price is calculated, based on a generic currency and an exchange rate.

Scenario The Marketing department has decided on smart rounding rules that they hope will make the market readier to buy their products. For example, all products for USD end with 99 cents and all products for Pound Sterling (GBP) end with 95 pence. Benjamin, the Marketing manager, wants to set up the smart rounding rules and he wants to group these so that he can apply one set of rules to each currency that is used for sales order and sales quotations.

Trade agreement parameters Trade agreement parameters describe the trade agreement discount options that can be selected in the Accounts receivable and Procurement and sourcing parameters. The parameters pages are located in: •

Accounts receivable > Setup > Accounts receivable parameters on the Prices tab.

•

Procurement and sourcing > Setup > Procurement and sourcing parameters on the Prices tab.

Discount fields The Discount field determine how discounts are handled for lines of a specific sales or purchase order, when both Line and Multiline discount agreements apply to the sales order line. This is the only parameter setting that directly applies to customer and vendor trade agreements. Consider the following options when setting up the discount fields: •

Line - Only a line discount is applied to the line.

•

Multiline - Only a multiline discount is applied to the line.

•

MAX (Line, Multiline) - The system considers both the calculated line discount and the multiline discount and applies only the better of the discounts.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

•

MIN (Line, Multiline) - The system considers both the calculated line discount and the multiline discount and applies only the lesser of the discounts.

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Line + Multiline - The discount applied to the order line is the sum of both the line discount and multiline discount. The two discounts are added and then the discount is calculated

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Line * Multiline - The discount applied to the order line is the value of the Line discount added to the value of the Multiline discount that is calculated based on the price minus the Line discount. Notice the multiline discount is calculated after the line discount is deducted from the list price.

Example Item "LCD Television HD Black 42 inches" has a list price of 2000 USD. For all customers there is a Line discount available of 1 percent and a Multiline discount of 2 percent. •

Line - (2000.00 * 1%) = 20.00 USD discount allocated.

•

Multiline - (2000.00 * 2%) = 40.00 USD discount allocated.

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MAX (Line, Multiline) - (2000.00 * 1%) = 20.00 USD and (2000.00 * 2%) = 40.00 USD Take the larger of the two so that, 40.00 USD is the discount allocated.

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MIN (Line, Multiline) - (2000.00 * 1%) = 20.00 USD and (2000.00 * 2%) = 40.00 USD Take the smaller of the two so that, 20.00 USD is the discount allocated.

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Line + Multiline - ((1% + 2%) * 2000.00) = (3% * 2000.00) = 60.00 USD discount allocated

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Line * Multiline - ((2000.00 * 1%) + ((2000.00-(2000.00 * 1%)) * 2%)) = (20.00 + 39.6) = 59.6 USD discount allocated.

Supplementary items When a product is ordered, complimentary or supplementary items are frequently required. In Finance and Operations, these are known as supplementary sales. For example, If the customer orders a home theater system, a supplementary and possibly a required item would be a DVD player. Similarly, additional sales can be made if the sales representative receives a list of item numbers to be suggested for purchase together with a product that the customer orders.

Supplementary item groups Supplementary item groups are used so that companies can take advantage of selling opportunities. For example, a supplementary item for a home theatre system is a DVD player. When an order processor at the Contoso company enters an order for item 1201 (Home Theater System 2.1 Channel Model 01), the supplementary item 1701 (Standard DVD Player - Black) is suggested.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Supplementary customer groups Supplementary customer groups are used so that companies can set up supplementary items for customer groups, based on the buying history of those customer groups. For example, the Contoso company's sales manager has noticed that customers in the Customer group 20 (Major customer) who purchase item 1000 (LCD Television HD Black 42 inches) consistently purchase item 1209 (Home Theater System 5.1 Channel Model 04) too. By using supplementary customer groups, order processors can immediately suggest the home theater to customers in the major group.

Supplementary sales items Supplementary sales items are set up in the Inventory and warehouse management module and the Sales and marketing module. Supplementary purchase items are set up in the Inventory and warehouse management module and the Procurement and sourcing module: •

Supplementary items associated with individual items and are set up from the Released products page on the Sell and Purchase FastTabs of the Action Pane. Click the Supplementary sales item or Supplementary purchase item on the Related information group. This type has a one-toone relationship between the item ordered and a supplementary item offering.

•

Supplementary item groups, supplementary vendor groups and supplementary customer groups are set up in Inventory management > Setup > Supplementary items.

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Supplementary item groups and supplementary vendor groups can also be set up from Procurement and sourcing > Setup > Supplementary items.

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Supplementary item groups and supplementary customer groups can also be set up from Sales and marketing > Setup > Items > Supplementary item - item groups and Sales and marketing > Setup > Items > Supplementary item - customer groups.

Note: You can set up base prices for the sale, and purchase for a product. These prices will automatically populate the Unit price when used in either sales or purchase order lines. If the trade agreement journal is posted that includes the products which have these base prices, the trade agreement will be used instead of the base price. If you change price and discount conditions, prices and discounts could get recalculated and overwritten. You could also trigger a dialog. The dialog helps you decide whether to keep the current price or discount if the price or discount is inherited from an external source. Add the types of external sources that should trigger this dialog.

Create sales agreements Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics365-finance-ops/3-create-sales-agreements

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

A sales agreement is a contract that commits the customer to buy products in a specific quantity or for a specific amount over time, in exchange for special prices, special discounts, and other special terms, such as payment and delivery terms. The prices and discounts of the sales agreement override the prices and discounts that are stated in any trade agreements that exist. The validity period of a sales agreement is defined by the Effective date and Expiration date fields on the agreement. A customer's sales order qualifies for the agreement terms if the requested ship date of the order is within the validity period. All sales order lines that are linked to a sales agreement contribute to fulfilment of that sales agreement. You can create a sales order directly from a sales agreement by using the Release order action. Or, you can select an effective sales agreement when you're taking orders (see the "Applying sales agreements in the ordering process" section of this unit).

Agreement classifications Agreement classifications are a required field on the purchase and sales agreement, and help group agreements into various types. These types can be used for reporting and analysis. However, there is no difference in the functionality of the types.

Commitment types Each line in a sales agreement expresses a commitment to sell something. In general, there are two categories of commitment: •

Value commitment - The customer agrees to buy products for a specific amount.

•

Quantity commitment - The customer agrees to buy a specific quantity of products.

In addition, a contract can commit the customer to buy a specific product or products in a product category. By combining these two factors (value versus quantity, and specific products versus product categories), we get four types of commitment: •

Product quantity commitment - The customer agrees to buy a specific quantity of products. Lines that use this commitment type are defined by an item number, and by the quantity and unit that were agreed on. The Amount field isn't available.

•

Product value commitment - The customer agrees to buy specific products for a specific amount. Lines that use this commitment type are defined by an item number and the amount that was agreed on. The Quantity and Unit fields aren't available.

•

Product category value commitment - The customer agrees to buy products from a specific sales category for a specific amount. Lines that use this commitment type are defined by a sales category in the hierarchy of sales categories and an amount. The Quantity and Unit fields aren't available.

•

Value commitment - The customer agrees to buy any product or products in any procurement category for a specific amount. The Quantity and Unit fields aren't available.

Lines in the same sales agreement can have different types of commitments. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Pricing terms for sales agreements Pricing terms can vary, depending on the type of commitment. On a sales order that is linked to a sales agreement, the pricing terms from that sales agreement override any other pricing terms that apply based on trade agreements. The following table describes the price-related fields that are affected by each commitment type. "Yes" indicates that the field can be updated on an order line.

Commitment type Product quantity commitment

Unit price

Price unit

Discount percent

Cash discount amount

Yes

Product value commitment

Yes

Product category value commitment

Yes

Value commitment

Yes

Policies for sales agreements The following policies affect the way that the link between a sales agreement commitment and the corresponding sales order lines works: •

Max is enforced - The total quantity or amount for all order lines can't exceed the quantity or amount that is specified on the related commitment.

•

Price and discount is fixed - The price on an order line and the price on the related commitment can't differ. If the price is changed on the order line, the link to the commitment is broken. If the link is broken, the order line doesn't contribute to fulfillment of the commitment.

•

Minimum release amount and Maximum release amount - If an amount is specified, a message is displayed if you make any change to an order line that causes the order line to differ from the related commitment.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Fulfillment calculations for sales agreements The Fulfilment tab on the Line details FastTab on the Sales agreements page shows fulfilment quantities and amounts. In the Fulfilment area, you can view the total quantities and amounts for all order lines that are linked to the specified sales agreement. You can also view the remaining amount or quantity that is required to fulfill the commitment. In the Agreement area, you can view the quantities and amounts from the specified sales agreement. These quantities and amounts are the total quantities and amounts that were committed.

Confirmations and version history for sales agreements When you confirm a sales agreement, the current version of the sales agreement is stored in a history table. If you change the sales agreement, you can confirm it again to store another version of the sales agreement in the history. If you don't confirm a sales agreement, you can still use it to create sales orders. However, history information for the sales agreement isn't stored. You can preview or print all revisions of the confirmations. You can then share the revisions with your customer to obtain approval.

Applying sales agreements during the ordering process If you don't release sales orders directly for a sales agreement, you can still link a sales agreement to an order during the order entry process. When you're creating a new sales order and select a sales agreement, the terms of that agreement, such as the payment terms, delivery terms, and delivery address, are applied to the order header, and the link between the agreement and the order is created. Then, on the order lines, when you can select products and categories that are specified in the sales agreement, the prices and discounts are copied from that agreement. The same sales order can include both lines that aren't related to a sales agreement and lines that have a commitment for a sales agreement.

Modifying sales orders that are linked to sales agreements If you've created (released) a sales order against a sales agreement, some fields on that sales order lines can be modified only if you remove the link to the associated sales agreement lines. Some of these fields are the following: â&#x20AC;˘

Requested ship date - If you change the requested ship date to a date that is earlier than the Effective date value on the sales agreement line, you must remove the link to the sales www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

agreement line before you can save the changed ship date. If you change the requested ship date to a date that is later than the Expiration date value on the sales agreement line, you must remove the link to the sales agreement line before you can save the changed ship date. •

CurrencyDiscount, percentDiscountUnit, pricePrice, unitNet amount - If you change the value in any of these fields, and if the Price and discount is fixed check box is selected on an associated sales agreement line, a message box prompts you to save the change. Click Yes to remove the link to the sales agreement line and recalculate the price. Click No to remove the link to the sales agreement line without recalculating the price.

•

Net amount - If you specify an amount that exceeds the amount that is specified on a sales agreement line where the Max is enforced check box is selected, a message box prompts you to save the changed amount. Click Yes to remove the link to the sales agreement line and recalculate the price. Click No to remove the link to the sales agreement line without recalculating the price.

•

Quantity - If you specify a quantity that exceeds the quantity that is specified on a sales agreement line where the Max is enforced check box is selected, a message box prompts you to save the changed quantity. Click Yes to remove the link to the sales agreement line and recalculate the price. Click No to remove the link to the sales agreement line without recalculating the price

Returning an item that was ordered from a sales agreement When a customer returns a product that was ordered from a sales agreement, Finance and Operations can find and automatically update the related sales agreement commitment to reflect the change in quantity or amount. By creating a return order that is based on the original sales order that is linked to a sales agreement, you establish a relation between the sales agreement commitment, the sales order line, and the return order invoice. If you don't want to deduct the returned item quantity from the sales agreement commitment, you can use the Remove link option on the Return order page to remove the link between the return order and the sales agreement commitment. If you must re-establish the link later, click Create link. A return order can be linked to only one sales agreement. If a customer returns multiple products that were ordered from multiple sales agreements, you must create a new return order for each product and create a link to the corresponding sales agreement.

Automatic search for sales agreements In some situations where sales orders are created indirectly, such as when you create a credit note or intercompany sales orders, you can control whether Finance and Operations automatically searches for applicable sales agreements.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Financial dimensions on sales agreements You can copy financial dimensions to either document headers or individual lines of a sales agreement. You can change the dimensions on an agreement header or agreement line at any time. In this case, the dimensions are automatically copied to the release header or release line of release orders.

Create purchase agreements Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics365-finance-ops/4-create-purchase-agreements A purchase agreement is a contract that commits an organization to buy a specified quantity or amount by using multiple purchase orders over time. In exchange for this commitment, the buyer receives special prices and discounts. Purchase agreements can apply to a specific quantity of a product, a specific currency amount of a product, or a specific currency amount of the products in a procurement category. The prices and discounts of the purchase agreement override the prices and discounts that are specified in any trade agreements that exist. On the Purchase agreements page, you can create, apply, and follow up on purchase agreements that exist between your organization and your vendors. For example, after you create a purchase agreement, you can order directly from it. Each purchase agreement has a validity period that is defined by the person who creates the purchase agreement. The delivery date of a purchase must be within the effective dates of this validity period. After you create a purchase agreement, you must activate it before it becomes effective. To activate a purchase agreement, set the Mark agreement as effective option to Yes.

Commitment types Each line in a purchase agreement is a commitment to buy something. You can use lines from multiple purchase orders (POs) to fulfill the commitment. There are four types of commitments: •

Product quantity commitment - You purchase a specific quantity of a product.

•

Product value commitment - You purchase a specific currency amount of a product.

•

Product category value commitment - You purchase a specific currency amount in a procurement category. The amount can be for a catalog item or a non-catalog item.

•

Value commitment - You purchase a specific currency amount of any product or products in any procurement category.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Pricing terms for purchase agreements Pricing terms can vary, depending on the type of commitment. The pricing terms from purchase agreements override any other pricing terms that are set up for trade agreements. The following table describes the price-related fields that are affected by each commitment type. Fields that contain Yes can be updated on an order line.

Commitment type Product quantity commitment

Unit price

Price unit

Discount percent

Cash discount amount

Yes

Product value commitment

Yes

Product category value commitment

Yes

Value commitment

Yes

Policies for purchase agreements The following policies affect the way that the link between a purchase agreement commitment and the corresponding purchase order lines works: •

Max is enforced - The total quantity or amount for all order lines can't exceed the quantity or amount that is specified on the related commitment.

•

Price and discount is fixed - The price on an order line and the price on the related commitment must be the same. If the price is changed on the order line, the link to the commitment is broken. If the link is broken, the order line doesn't contribute to the fulfillment of the commitment.

•

Minimum release amount and Maximum release amount - If an amount is specified, you receive a message if you make any change to an order line that causes the order line to differ from the related commitment.

Fulfillment calculations for purchase agreements Fulfilment quantities and amounts are shown on the Fulfilment tab on the Line details FastTab of the Purchase agreements page. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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The Fulfilment area shows the remaining amount or quantity that is required to fulfil the commitment. The Agreement area shows the total quantity or the total amount that the sales agreement line is valid for. You can access the purchase order lines and the invoice lines that contribute to the fulfilment calculation by selecting the Related information action on the lines or on the header of a purchase agreement.

Confirmations and version history for purchase agreements When you confirm a purchase agreement, the current version of the purchase agreement is stored in a history table. If you change the purchase agreement, you can confirm it again to store another version of the purchase agreement in the history. If you don't confirm a purchase agreement, you can still use it to create purchase orders. However, the history information for the purchase agreement isn't stored. You can preview or print all versions of the agreement. You can then share the revisions with your vendor to obtain approval.

Applying purchase agreements in the ordering process When you create a purchase order, you can apply a purchase agreement to it. Information from the terms for the agreement, such as the payment terms, delivery terms, and delivery address, is then copied to the header of the purchase order. If the purchase order contains one or more lines for products or categories that are covered by the agreement, the prices and discounts from the purchase agreement are used for those lines. The amount or quantity on the order line contributes to the fulfilment of the commitment in the purchase agreement. The same purchase order can include both lines that aren't related to a purchase agreement and lines that have a commitment for a purchase agreement. You can select a purchase agreement only when you're creating a purchase order. You can't select a purchase agreement after the purchase order has been created. In some situations where purchase orders are created indirectly, you can control whether Finance and Operations automatically searches for applicable purchase agreements. For example, you might do this when you're automatically firming planned purchase orders or creating purchase orders that are based on sales orders.

Purchase agreements and intercompany trade Intercompany trading can be created between vendor accounts and customer accounts that are in different legal entities. When a sales order or purchase order is created for one of the parties, an intercompany order chain is created. In the order chain, the sales order and purchase order are created in the appropriate legal entities. You can create a purchase agreement or sales agreement for one of the intercompany trading parties. You can then generate the corresponding sales agreement or purchase agreement for the other intercompany trading party in the other legal entity.

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If you create an intercompany purchase order that uses the intercompany purchase agreement in one legal entity, the corresponding intercompany sales order uses the corresponding intercompany sales agreement in the other legal entity. The fulfilment of the sales agreement commitments and the fulfilment of the purchase agreements are synchronized, just as the intercompany sales order and the intercompany purchase order are synchronized.

Financial dimensions on purchase agreements You can copy financial dimensions to document headers or to individual lines of a purchase agreement. If you change the dimensions in the agreement header or on the agreement line, the change doesn't affect any released orders, but it will be reflected on any new orders.

Configure trade allowance management Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics365-finance-ops/5-configure-trade-allowance-management Trade allowance management helps companies manage sales promotion programs that offer retail "payfor-performance" monetary rewards to customers that achieve volume and behavioral goals. The feature's capabilities are designed for companies that focus on comprehensive promote-to-profit processes, from promotion fund budgeting and allocation, to allowance contract setup, to claims creation and processing, to payment processing, to promotion effectiveness analysis. This unit provides a broad overview of the Trade allowance management feature and will familiarize you with the typical set of tasks that are involved in managing a sales promotion program. Here is an overview of what the trade allowance management feature lets you do: •

Allocate discretionary funds to selected accounts, and set up trade allowance agreements for promotions, based on bill-backs and one-off lump sum payments (for an agreed service)

•

Run a negotiated promotion contract through ongoing sales and generate bill-back claims.

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Calculate, approve, and process the generated claims, and pass them on to accounts receivable as deductions for payment settlement.

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Reconcile the customer's short-pay with the deduction that is due.

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Track the use of the promotional fund, and evaluate the program profitability and effectiveness.

Promotional fund and trade allowance agreement A trade allowance agreement is an incentive program where pay-for-performance monetary rewards are offered to customers that achieve specific volume targets and/or behavioural goals. Promotional funds are budgeted expenditures. In that way, the promotional campaigns can be captured. Funds that are allocated to trade allowance agreements are recorded on the Funds page. To open the Funds page, select Sales and marketing > Trade allowances > Funds > Funds. www.dynamicscompanions.com Dynamics Companions

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On the Funds page, you can view the details of promotional funds. The General FastTab shows the period that the fund is valid for and its budgeted amount. For the fund to be allocated to the promotion agreement, the Status field must have a value of Approved. The Customers FastTab shows the customer hierarchy. To select the customers that the fund targets, drag them so that they are under Fund customers. This FastTab also shows how the total amount of the fund is distributed. The Items FastTab shows the items that are included in the promotion. After the fund definition is in place, the next step in promotion planning is to register promotion contracts (which are known as trade allowance agreements), allocate funds, and define performance goals for each merchandizing event. Trade allowance agreements are recorded on the Trade allowance agreements page. To open the Trade allowance agreements page, select Sales and marketing > Trade allowances > Trade allowance agreements. Select Header to switch to the Header view. On the General FastTab, the Order to and Order from fields define the period when the agreement is valid. An approval status of Internal approved for the agreement indicates that the agreement isn't yet valid and can't be applied during sales order processing. The Analysis section of the General FastTab contains important fields that define the quantities and costs that are used for promotion evaluation: •

Base units - Specifies the quantity of products that must be sold to the selected customers before the promotion is applied.

•

Calculated ship quantity - Is calculated based on the Lift percent value, which is a planned target increase for this promotion.

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Trade allowance cost - Is calculated based on the quantities of the various events in the trade allowance agreement.

On the Customers FastTab, in the list on the left, you can select and view customer groups, which are set up as predefined hierarchies. You can then select the whole hierarchy or specific accounts as targets for the allowance agreement. On the Items FastTab, as on the Items FastTab of the Funds page, products are added to the agreement to associate its sales with the allowance that was agreed on. On the Funds FastTab, you can view the promotion funds that are associated with this contract. You can also view the contract's event cost allocation. An event cost allocation of 100 percent means that this promotion will be financed exclusively from one fund. Alternatively, a promotion agreement can draw on several funds, and can use equal or differential percentage allocation. Next, select Lines to switch to the Lines view. The Merchandizing events tab shows the types of events covered by an agreement. There are three types: bill back, lump sum and off-invoice.

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When you select the merchandizing event and then select the Amounts tab, the details for the event are found. In the Trade allowance lines section, you specify the quantity or amount ranges that the customer must achieve for definitions to obtain the rewards. In the case of a merchandizing event of the Bill back type, the upper section the Amounts tab defines the rules that the bill back will be applied, generated, and paid under. For example, the rules may specify the following conditions for the bill back claim: •

It's based on the creation date of the sales order (the Calculation date type value is Created).

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It's calculated based on the sales order line's amount before discounts, not the net amount, which includes discounts (the Taken from value is Gross).

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It's based on the volume of the sold products, not the amount (the Rebate line break type value is Quantity).

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It's calculated per period of a month (the Cumulate sales by value is Month).

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It's settled as a deduction, not by using A/P (the Payment type value is Customer deductions).

In the case of a merchandizing event of the Lump sum type, the Amounts tab shows the quantity that will be paid to the customer in the form of a deduction when the customer achieves specific performance. An approval status of Open indicates that the lump sum hasn't yet been paid. To apply the agreement to sales orders that meet the agreement's conditions, the agreement's status must be Confirmed.

Perform sales under the planned merchandising event and generate billback claims When you create a sales order that has lines that fulfill the requirements of the agreement, you can view the related information on the Sales order page by selecting Sales order line > View > Price details. On the Price details page, on the Rebates FastTab, the sales clerk can see a bill back from the valid trade allowance agreement (the rebate program ID is shown) and the total amount that is applied to the line. This amount is also shown in the Rebate amount field in the Margin estimation section of the Price details page. When the sales invoice is posted, a corresponding bill-back claim is generated for each invoice line. To see the Price details page, on the Accounts receivable parameters page, on the Prices tab, select the Enable price details check box.

Process claims and pass them as deductions to accounts receivable The next steps in the process for handling bill-backs are to review, calculate, and approve claims, and then convert them into deductions.

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The Bill back workbench is where the promotion agreement owner periodically reviews and processes the claims that are generated. It's also where the Accounts receivable administrator converts the approved claims into deductions or regular payments, depending on the payment method for the claim. On the Bill back workbench page, you can review the claim lines. If the claims are in To be recalculated status, they must be recalculated for any cumulative effect.

Recalculate claims To recalculate the claims, on the Action Pane, select Cumulate. Then, in the Cumulate rebates dialog box, select the customer. As a result of the recalculation, the program generates new claims for the amounts to adjust the original claims to the qualifying amount per unit. One adjustment claim is generated for each unique combination of a customer, an item, a currency, a unit of measure, inventory dimensions, financial dimensions, and a sales tax group. These adjustment claims have the same reference to the sales order and invoice number as the claims that are being adjusted (that is, the claims that were originally created from the sales document). Unlike the original claim, the adjustment claim doesn't have values in the fields that describe the original sales order line's amounts and quantity. After the recalculation is completed, the status of the claims is changed to Calculated. To approve the claims, on the Action Pane, select Approve.

Process claims and pass them to accounts receivable The claims are now ready for accounts receivable processing. To process them, on the Action Pane, select Process. Upon processing the claims, the status has changed to Mark and indicates that a journal posting (the journal that is posted is the Rebate accrual journal, as specified in the accounts receivable parameters) has caused the following events to occur: •

The claims have been transferred to the temporary customer balance as deductions.

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The rebate accrual account has been credited to represent the future liability for the customer.

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The rebate expense account has been debited to recognize the cost that was incurred in connection with the sales.

To complete the process, the Accounts receivable clerk must now handle the accrual deductions by transferring them to the customers balance as a credit note (liability). To start the task, on the Action Pane of the Customer page, select Collect > Settle transactions. Then, on the Settle transactions page, select Functions > Bill back program. This rebate page shows all the bill-back claims that were previously processed. If you want to create a credit note, select the Mark check box for all lines, and then select Functions > Create credit note.

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Upon credit note creation, a journal is posted. The journal that is posted is the Accounts receivable consumption journal, as specified in the accounts receivable parameters. As a result, the real liability (credit) amount has been moved to the customer balance. Financially, this situation implies that the following events have occurred: •

The customer's receivable account has been credited.

•

The rebate accrual account has been debited.

To approve a merchandising event of the Lump sum type, select the event on the Trade allowance agreements page, and then, on the Amount tab, select Approve.

Settle the deduction that is due and the customer short-pay by using the Deduction workbench Often, in anticipation of bill-backs, customers choose to short-pay selected invoices. To prevent payment reconciliation issues in the future, the Accounts receivable clerk registers those short-pays as deductions when he or she records the actual customer payments. Then, on the Deduction workbench, those customer deductions can easily be settled against the claim amounts that are due from the company. To register a customer's short-pay in the Payment journal, select Accounts receivable > Payments > Payment journal, and create a new payment journal. Then, on the Action Pane, select Deductions. On the Deduction page, you can create and track the amount that was shortpaid. The collection manager is now responsible for settling the open credit note transaction and the short-pay transaction against each other in the Deduction workbench. To manage deductions, select Sales and marketing > Trade allowances > Deductions > Deduction workbench. The upper section of the page contains lines that represent the short-pays from the customer. The lower section of the page contains the customers open credit transactions. To settle the deduction against the open transaction, mark the deduction line, and then, on the Open transactions tab, mark the line. On the Action Pane, click Maintain > Match. The status of the originating claims is now set to Completed.

Analyze the effectiveness of the promotion and fund consumption To get an overview of the program's key statistics and fund use, you can use several reports and analytical views that are available in Trade allowance management. On the Trade allowance activity page, the Overview tab shows the main details of the trade allowance agreement. The other tabs show more specific details about the associated documents, payments, and other events that are related to the program. The Summary tab shows the total quantity of products that have been sold under the promotion, the sales amount that has been invoiced, and the bill-backs and lump sums that have been paid.

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The Bill back credits tab contains the details of individual bill-backs that have been credited to the customer. To get a more analytical overview of the various performance measures for the promotion, you can use the Analysis view. To go to the Analysis view, click Sales and marketing > Trade allowances > Trade allowance agreements. On the Action Pane, click Analysis. To get a more analytical overview of the various performance measures for the promotion, you can use the Analysis view. To go to the Analysis view, click Sales and marketing > Trade allowances > Trade allowance agreements. On the Action Pane, click Analysis.

Configure brokerage contract management Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics365-finance-ops/6-configure-brokerage-contract-management Broker contract management helps companies better manage their brokerage agreements by automating tasks that are involved in administering, tracking, and paying the fees that are due to brokers. This unit provides a broad overview of the typical process for handling broker fees: •

Registering details of the negotiated broker contract.

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Running the negotiated contracts through ongoing sales and generating broker claims.

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Approving the generated claims, so that they can be passed on to accounts payable for payment.

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Handling situations for partial claim approval and differential accounting.

Broker contract A broker contract is a record of an agreement with a broker. It specifies the negotiated terms and conditions under which the brokerage company qualifies for a monetary reward in return for achieving preset sales targets. Broker contracts are registered on the Broker contracts page. To open the Broker contracts page, select Accounts payable > Broker and royalties > Broker contracts. The contract includes a negotiated condition about who will incur in the broker fee (the customer that buys the product or the selling company). This condition is set up on the associated Charges codes page. The Contract details section shows the conditions and the item that qualifies for brokerage. The monetary reward that the broker will receive for achieving the sales objective is shown under Break. The setup of the Broker Fees charge indicates that the customer won't incur the fee for the broker services. Instead, the selling company will incur the broker fee as a sales expense. If a contract stipulates that the customer will incur the fee for the broker services, the associated charge must be set up so that the Type field in the Debit section is set to Customer/Vendor. In this case, the

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company first receives the fee payment from the customer and then pays its liability to the broker. If it is the selling company that will incur the broker fee as a sales expense, then the associated charge must be set up so that the Type field both in the Debit and Credit sections is set to Ledger account. The debit account receives the intermediary expenses on the income statement, and the credit account is an interim liability account that hosts the charge (fee) amount from the time when the charge is posted to the time when the broker claim is approved and moved to the real payable as a result of invoice posting. The Contract details section of the broker contract shows the conditions and the item that qualifies for brokerage. The monetary reward that the broker will receive for achieving the sales objective is shown under Break. The contract Status must be Approved to be applied to sales orders that meet its conditions.

Sell products that qualify for a broker commission and generate a claim When you create a sales order that has lines that fulfil the requirements of the broker contract, you can view the related information on the Sales order page by selecting Sales order line > View > Broker commissions. Because broker fee accruals are handled as a charge, you can also access the broker commission by opening the Standard charges page from the sales order. Select the order line, and then select Sales order line > Financials > Manage charges. When you post the invoice for the sales order, in addition to the regular sales invoice transactions, the following postings occur: •

The broker claim is generated for the invoice line.

•

The accrued charge that represents the broker fee is posted to the interim liability and expense accounts, as appropriate.

The accrued broker fee posting can be viewed on the voucher transactions associated with the sales invoice journal.

Review and process claims After claims are either fully or partially approved, the vendor invoice is created and posted, if posting is supported by the accounts payable policy. In this way, the vendor credit is passed to the regular payable processing. You can view all the claims on the Broker claims page. For each fee, the Qualified field specifies the amount of the fee that, after it's approved, will be paid to vendor of brokerage services. To approve a claim, in the Mark column, select the check box for the line. Then, on the Action Pane, select Approve. As a result of the approval, the following events will occur:

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•

An Expense journal posting has reversed the previous interim amount on both the accrual liability account and the accrual expense account.

•

A broker claim (vendor) invoice for the approved broker fee amount has been created. A broker claim invoice can be posted either automatically as part of the claim approval process or manually. The Manual posting field on the Broker and royalty tab of the Accounts payable parameters page specifies the policy that controls the posting behaviour.

•

As a result of posting the broker claim invoice, the expense account has been debited, and the vendor payable account has been credited. The Expense account number is specified for the procurement category when purchase expenditure for expense posting is set up for purchase orders. The procurement category itself is defined on the Broker and royalty tab of the Accounts payable parameters page.

On the Broker claims page, you can review the postings and documents associated with the claim, a vendor invoice number that was created for the broker. If the vendor invoice was posted (automatically or manually), on the Invoices tab, the Date and Amount in transaction currency fields contain the appropriate values. If the invoice is still pending, those fields are blank. If the Approved field for the claim line contains the same amount as the Qualified field, whereas the Difference field contains 0, it means that the claim has no unsettled issues and can now be closed.

Partially process claims If a customer returns some units of a sales order, the broker might no longer qualify for the fee that is related to the returned quantity. In this case, the second claim for the partial amount must be approved. Select Accounts payable > Broker and royalties > Broker claims and select the claim. In the Approving field, enter the total quantity minus the returned units. Then, on the Action Pane, select Approve. If there is a difference between the value in the Approved field and the value in the Qualified field, it is recorded in the Difference field. These values indicate that the claim is still outstanding, and that the difference must be handled before the claim can be considered closed. The difference must be handled selecting the unsettled claim line, and then, on the Action Pane, clicking Close. The system identifies that the claim still has an outstanding number of units and prompts the user to enter the reason code that explains the difference. After closing the claim, the following events occur: •

An expense journal posting has reversed the previous interim amount on the accrual expense account.

•

The same posting reversed the previous interim amount on the accrual liability account.

The line under the Differentials tab specifies the broker fee amount that was disapproved for pay-out.

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In the scenario where your company, not the customer, pays the broker fee, profit or loss that is associated with the overpayment or underpayment of a fee doesn't have to be accounted for the income statement. In this case, no differential journal will be associated with the differential line. If you were handling differences in a fee scenario where the customer pays the broker fee, you would notice that the system posts a differential journal at claim closing. This journal debits/credits the broker fee write-off account and credits/debits the interim liability account. Note: The write-off expense account number is specified in the Main account field for a specific reason code on the Differential reasons page.

Configure royalty contract management Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics365-finance-ops/7-configure-royalty-contract-management Royalty contract management is intended for companies that exercise the right to use a third party's assets and/or intellectual property. It helps companies better manage their royalty agreements by automating tasks that are involved in administering, tracking, and making royalty payments. This unit provides an overview of the typical process for handling royalty fees: •

•

Run negotiated contracts through ongoing sales and generate royalty claims.

•

Approve and process the generated claims, so that they can be passed on to Accounts payable for payment.

The person in charge of royalty contracts has the following responsibilities: •

Negotiating contracts with the licensor.

•

Recording royalty agreement terms and fee rates in the system.

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Managing staff that processes royalty claims and makes fee payments.

People in these roles are looking for ways to achieve these goals: •

Flexibly accommodate different definitions of royalty contracts and their conditions.

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Reduce the administrative burden and errors that are associated with tracking and processing royalty claims.

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Improve cash flow forecasts by accruing for future payables and avoiding interest on delayed payments.

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Royalty contracts A royalty contract is a record of an agreement with an asset or intellectual property owner. It specifies the negotiated terms and conditions under which the licensor qualifies for a monetary reward when the licensee uses its property to obtain revenue. Royalty contracts are registered on the Royalty agreements page. To open the Royalty agreeements page, select Accounts payable > Broker and royalties > Royalty agreements. The Selection tab in the lower part of the page shows the products that qualify for a royalty fee. On the General tab in the upper part of the page, several fields provide more details about the agreement's conditions as they were negotiated with the licensor: •

Cumulate sales by - Specifies the period that a royalty amount will be calculated for, based on cumulative sales. For example, the period might be a month. Alternatively, to calculate the royalty amount every time that a sales order line is invoiced, select Invoice.

•

Approval required - Option is set to Yes, a royalty program owner must approve the claims before a royalty can be turned into an invoice that is payable to the licensor.

•

Accrual account and Expense account fields - Must specify account numbers that will receive accrued amounts during the intermediate stage between approval and processing.

You set up royalty rates on the Royalty amounts tab in the lower part of the page. To set up the rates as tiers, add a line for each tier, and set the From value and To value fields. Important: To make an agreement valid, you must select Validation on the Action Pane. The Validated option on the General tab in the upper part of the page will then be set to Yes.

Sell products that qualify for a royalty fee and generate a claim When a sales processor creates a sales order for a product that the company has a royalty contract for, and if the order line's details qualify for the royalty, the program identifies the future royalty fee. To see whether a sales order line qualifies for a royalty fee, select Sales order line > View > Price details. On the Price details page, select the Royalty FastTab.

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The Royalty FastTab shows the royalty fee from the valid contract code that is applied to a line. Additionally, the Royalty amount field under Margin estimation on the Detail FastTab specifies the royalty fee per product unit. Note: To access the Price details page, on the Accounts receivable parameters page, on the Prices tab, on the Price details FastTab, set the Enable price details option to Yes. The royalty claim is created when the sales order is invoiced.

Process claims and pass them as payable to accounts payable Royalty claims that are generated represent future payments to the licensor. The contract owner cumulates the claims for the relevant period and then creates an interim liability for the licensor by approving those claims. The royalty agreement owner is responsible for periodically reviewing and, as required by the company's policy, approving the claims that are generated. After the claims are approved, the Accounts payable administrator passes them as purchase invoices to the regular payable processing. To view all the claims, select Accounts payable > Broker and royalties > Royalty claims.

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On the Royalty claims page, the Starting royalty amount field specifies the fee amount that, after it's approved and processed, will be paid to the vendor as a royalty. The fields in the Sales section of the page specify the details about the originating sales invoice, such as the invoice number, invoice line net amount, and quantity. Note that when a claim is generated on a time basis, its status is set to To be calculated. This status is used because the royalty is granted on that time basis. The claim won't be included, together with other claims, in the cumulative calculation until the end of the period. If there are multiple sales orders for the same vendor, the claims must be recalculated so that any cumulative effect is considered. On the Action Pane, select Cumulate. When the Cumulate action is run, an accrual journal for the claim amounts is posted. To view the details of the posting, find the claim in the list of royalty claims, and then, on the Action Pane, select Royalty transactions to see and access the accrual journal. The posted voucher specifies that the royalty accrual account is credited for the expected royalty fee, and that the interim accrued royalty expense account is debited for the expected expense. To move the claims to the regular accounts payable process, the Accounts payable clerk must complete the royalty claim. On the Royalty claims page, on the Action Pane, select Process. The following events occur, and the claim's status is changed to Completed: •

A Royalty accrual journal posting reverses the previous interim amounts on the accrual payable and expense amounts.

•

A vendor invoice for the royalty amount is created and posted.

•

As a result, the vendor's payable account is credited, and the royalty fees account is debited.

The account number for royalty fees is specified for the procurement category that is used on the purchase invoice line for the royalty. That procurement category, in turn, is set on the Broker and royalty tab of the Accounts payable parameters page. To see the vendor invoice number, open the Royalty transactions page from the royalty claim.

Configure vendor rebates Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics-365finance-ops/8-configure-vendor-rebates Vendor rebates help companies better manage their supplier rebate programs by automating tasks that are required to administer, track, and claim rebates that are earned. A vendor rebate agreement is a record of a contract with a vendor that specifies the negotiated terms and conditions under which the company qualifies for a monetary reward in return for achieving preset purchase targets. Vendor rebate agreements are recorded on the Rebate agreements page.

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To open the Vendor rebate agreements page, select Procurement and sourcing > Vendor rebates > Rebate agreements. The agreement's header specifies the general conditions that qualify a company for rebates. In effect, the header information specifies that a vendor grants a rebate when a specific product is bought in a specific quantity. On the header, you also specify the unit of measure rebate option and the calculation date type. On the General tab, in the Unit of measure rebate option field, you can define whether a unit of measure should be a condition for the purchase order line to qualify for a rebate claim. •

Convert - A purchase order line qualifies for a vendor rebate per the rebate agreement. You will receive a rebate regardless of the unit of measure that is applied on the line.

•

Exact match - To qualify for a rebate, a purchase line must have the same unit of measure that is specified on the agreement.

On the General tab, in the Calculation date type field, select the date that is used to determine whether the purchase occurs in the validity period of the rebate agreement. •

Created - Use the creation date of the purchase order.

•

Requested delivery - Use the requested delivery date.

On the agreement lines, you can specify the vendor rebate agreement in more detail. In the Cumulate purchase by field, you can set the calculation of the rebate claim. The amount can be set to depend on a period (of week, month, year, lifetime or a customized period). The Invoice value indicates that a rebate claim will be determined every time that a purchase order line is invoiced. In the Taken from field, you can specify the basis for the rebate calculation. •

Gross - The rebate is calculated based on the gross price of the item.

•

Net - The rebate is calculated based on the net price of the item (that is, the price after other discounts have been applied).

The Rebate program accrual account and Rebate program expense account fields specify account numbers that will receive accrued rebate amounts during the intermediate stage between approval and processing. When the Approval required option is set to Yes, the rebate claim must be approved before it can be accrued or paid out. The Rebate line break type field specifies the basis for the rebates. •

Quantity - The rebates are volume-based.

•

Amount - The rebates are amount-based.

On the Lines FastTab, you can see how different quantity tiers can be set up to grant different rebates. For example, in the previous illustration, the From value and To value fields indicate that a product quantity between 10 and 19 units will qualify for a rebate of USD 15 per unit.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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The From value is inclusive, whereas the To value is exclusive. For example, the Rebate line break type field is set to Quantity, and you enter 1 in the From value field and 3 in the To value field. In this case, the rebate amount applies when you purchase one or two items, but not when you purchase three items. In the Workflow approval status field, the Approved value indicates that the agreement can be applied to purchase orders that meet the agreement's conditions.

Identify orders that qualify for rebates, and generate rebate claims When purchase orders are placed with a vendor that the company has a rebate agreement with, Finance and Operations identifies any future vendor credit payments. If the purchase orders qualify for a rebate, a rebate claim is generated for every order line as soon as a purchase invoice has been posted. This process is automatic. Later, you can review the expected rebates and see the impact of those rebates on the product's cost and profit margin. View details of rebates that are applied to a purchase order line per the vendor rebate agreement 1.

On the Purchase order page, select an order line, and then select Purchase order line > View > Price details.

On the Price details page, select the Rebates FastTab.

The rebate information is also shown in the Vendor rebate field in the Margin estimation section of the Price details page. On the Procurement and sourcing parameters page, on the Prices tab, verify that the Enable price details option is set to Yes. If the option is set to No, you won't be able to view the rebates.

Review and approve claims Rebate claims that are generated represent the future payments that can be expected from the vendor. Before a credit note is issued to the vendor, the agreement owner typically wants to review the claims and approve them. However, note that the status of a claim determines whether the claim is ready to go through the approval process.

The status of claims and the effect on the approval process When a claim is generated, its status is set to To be calculated if the rebate is granted on a cumulative basis or Calculated if the rebate is granted per invoice. If the status of a claim is To be calculated, the claim must go through a calculation process that is handled by the Cumulate function. Only claims that have a status of Calculated can be included in the approval process. If the Approval required option on a vendor rebate agreement is set to No, any claims that are generated will have a status of Approved. The approval is mandatory for claims that are granted on a cumulative basis.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Approve claims, and view postings and invoice details When claims have been approved, they can be processed by accounts payable. A credit memo (vendor invoice) for the rebate claim amount is automatically generated. The credit can then be added to the vendor balance, and the Accounts payable clerk can include it in the regular settlement process. 1.

Select Procurement and sourcing > Vendor Rebates > Rebate claims to open a rebate claim.

Close the rebate claim.

Mark the claim, and then, on the Action Pane, select Approve.

On the request page, in the Vendor field, select the vendor that you're authorized to receive a rebate from, and then select OK.

A Rebate accrual journal is posted for the claim amount. This posting, debits the Accrued vendor rebates receivable account for the expected vendor credit and credits the interim Accrued vendor rebates received account for the expected gain. 1.

In the Rebate list, select the line, and then, on the Action Pane, select Rebate transactions to see and go to the journal batch number for this rebate accrual posting.

To move the claims to the regular accounts payable process, the Accounts payable clerk must now complete the rebate claim handling by running the Process function.

On the Action Pane, select Process, and then select Filter. In the Criteria field for the Vendor account field, select the vendor to process rebate claims for, select other relevant filters, and then select OK.

The message bars and the fact that the status is changed to Completed indicate that the following events have occurred: •

A Rebate accrual journal posting has reversed the previous interim amounts on the accrual receivable and expense accounts.

•

A vendor invoice (credit note) for the rebate amount has been created.

•

The setting of the Manual invoice posting option on the Rebate program tab of the Procurement and sourcing parameters page determines whether a vendor invoice is posted manually or automatically as part of claim processing.

•

When the vendor invoice is posted, either automatically or manually, the vendor's Payable account has been debited, and the Discounts and Allowances received account has been credited.

•

The Discounts and allowances received account number is specified for the procurement category that is used on the purchase invoice line for the rebate. The procurement category, in turn, is set on the Rebate program tab of the Procurement and sourcing parameters page.

In the Rebate list, select the line, and then, on the Action Pane, select Rebate transactions to see and go to the journal batch number for this rebate accrual posting and also the vendor invoice number.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Select the line for the vendor invoice transaction, and then, on the Action Pane, select Vendor invoice. If the vendor invoice has been posted, you will see the Invoice journal. Otherwise, you will see the vendor invoice as a pending vendor invoice that requires manual posting.

The invoice line specifies the details of the vendor invoice for the Commissions and rebates procurement category.

On the All vendors page, select the vendor that you receive a rebate from, and then, on the Action Pane, select Transactions. Find the line for the invoice. The rebate amount has now been added to the vendor balance.

Exercise - Create a purchase agreement Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics365-finance-ops/9-exercise-create-purchase-agreement You have agreed upon a price for 100 of item number D0002 at a price of 145.50 USD with vendor Fabrikam Supplier. Now you need to set up the purchase agreement.

Go to the Procurement and sourcing > Purchase agreements > Purchase agreements.

Click New.

In the Vendor account field select US-104 (Fabrikam Supplier).

In the Purchase agreement classification field select General purchases.

Open the General FastTab.

In the Document title enter 'General purchase'.

In the Default commitment field select Product quantity commitment.

Click OK. Add an item to the purchase agreement.

Click Add line in the Purchase agreement lines FastTab to create a line.

10. In the Item number field select D0002 (Cabinet). 11. In the Site field select 1 (Home speakers production). 12. In the Warehouse field select 13 (Finished Goods). 13. In the Quantity field enter '100'. 14. In the Unit price field enter '145.50'. 15. In the Expiration date field select the end of the next month.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

16. Click Save. Confirm the purchase agreement. 17. Click Purchase Agreement at the top, and then select Confirmation under the Generate section. 18. Select Yes in the Print report field. 19. Click OK. 20. Close all pages.

Exercise - Generate and process customer rebates Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics365-finance-ops/10-exercise-generate-process-customer-rebates 1.

In company USMF go to the Accounts receivable parameters page, and expand the Prices tab and then the Price details tab, and check that the Enable price details option is set to Yes.

Go to the Sales and marketing > Customer rebates > Rebate agreements page and select the Customer rebate agreement: USMF-000001.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

If the Workflow approval status field is not set to Approved, you need to click Validation on the Action pane to approve it.

Review a customer rebate agreement •

The agreement is for an individual customer, in this example customer US-009.

•

Rebates are given to the customer when they purchase a specific product. In this case, the product has item number T0020.

•

The customer's sales performance, against which the rebate amounts are estimated, is to be accumulated on a weekly basis.

•

The setting for Price taken from is Gross, which means that line's sales amount on which basis the claim is estimated is not reduced by the line discount.

•

The Rebate line break type field shows the method for calculating rebates. In this case, the sales target against which the rebates are to be estimated is set to Quantity.

•

The agreement's lines specify the rebate amount type, the actual rebate value, and the thresholds. In this example, the customer will qualify for a rebate of 20 USD per unit sold, if their weekly purchases of the product fall within 1 to 50 units; and a rebate of 40 USD per unit sold, if they purchase above 50 units.

Generate rebate claims 4.

Go to Sales and marketing > Sales orders > All sales orders.

Click New.

In the Customer account field, enter or select US-009.

Click OK.

In the Item number field, enter or select T0020.

Set Quantity to '40'.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

10. Click Sales order line. 11. Click Price details. 12. Expand the Rebates section. The Rebates tab lists all the rebate agreements that are applicable to the current order line and shows the estimated rebate amount. Note that the displayed amounts are only indications of what future rebate claims may be. The actual rebate amounts may be different depending on: the total sales volume achieved by the customer under a periodic rebate agreement; whether the customer had returned all or partial quantities; and whether the applicable sales order was invoiced.

13. Close the page. 14. Click Save. 15. On the Action Pane, click Invoice. 16. Click Invoice. 17. Expand the Parameters section. 18. In the Quantity field, select 'All'. 19. Click OK. 20. Click OK. 21. Close all pages

Process rebate claims The Rebates page acts as a workbench in which you can review, approve, and process rebate claims. You'll now process the claims that were created because of invoicing a sales order for customer US-009, who is the subject of the rebate agreement USMF-000001.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

The line represents a rebate claim for 800 USD, which is based on the sales of 40 units of product T0020, calculated at 20 USD per unit. This matches the conditions of the first quantity break in the rebate agreement. The claim is in the To be calculated state. This means that they are associated with an agreement that tracks the customer's sales performance on periodic basis and that they must be re-calculated to account for the total sales volume within the respective period. 1.

Go to Sales and marketing > Customer rebates > Rebates.

Click Cumulate.

In the Customer account field, enter or select US-009.

In the Process date field, select today's date.

Click OK.

Click Approve.

Click Process.

In the Customer field, enter or select US-009.

Click OK.

A message shows that the rebate was processed successfully, and the status of the claims has been changed to Mark. As a result of a Rebate accrual journal being posted: •

The claims have now been transferred to the temporary customer balance as deductions.

•

The Rebate accrual account has been credited to represent the future liability towards the customer.

•

The Rebate expense account has been debited, in recognition of the cost incurred in connection with the sales.

Process rebates for payment The Rebates page lists the rebate claims that you have processed in the customer rebate workbench and that are in status Mark. When you create a credit note, a message appears to inform you that a journal has been posted. 1.

Go to Accounts receivables > Customers > All customers.

In the list, find and select US-009.

On the Action Pane, click Collect.

Click Settle transactions.

Click Functions.

Click Rebate program.

Click Edit. Set checkmarks in the Mark field for the claims that you want to include into credit note.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

Click Functions.

Click Create credit note.

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

10. Close the page. 11. Click Cancel. This refreshes the page so that you can see the updates. 12. On the Action Pane, click Collect. 13. Click Settle transactions. Note that a transaction for negative amount, representing the total rebate amount, without invoice reference has been added to the customer balance. 14. Click Cancel. 15. Close all pages.

Exercise - Create trade agreements Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics365-finance-ops/11-exercise-create-trade-agreements

Create a customer trade agreement Create a trade agreement named 'Sales price adjustment'. 1.

Go to Sales and marketing > Prices and discounts > Trade agreement journals.

Click New.

In the Name field enter 'Sales price adjustment'.

Click the Lines button to open the journal.

In the Relation field select Price (sales).

In the Account code field select Group.

In the Account selection field select Retail accounts.

In the Item code select Table.

In the Item Relation field select A0001, HDMI 6' Cables.

10. In the From field enter '1'. 11. In the Amount in currency field enter '20.00'. 12. Change to the Details tab. 13. In the From date field select February 15, 2017. 14. In the Lead time field enter '2'. 15. Select Validate > Validate all lines. 16. After successful validation, post the journal 17. Close all pages

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Create a vendor trade agreement 1.

Go to Procurement and sourcing > Prices and discounts >Trade agreement journals.

Click New.

In the Name field select Sales price adjustment.

Click the Lines button to open the journal.

In the Relation field select Price (purch.).

In the Account code field select Group.

In the Account selection field select High volume vendors.

In the Item code field select Table.

In the Item relation field select A0001, HDMI 6' Cables.

10. In the Site field select 1. 11. In the Warehouse field enter 13. 12. In the From field enter '1'. 13. In the Amount in currency field enter '8.26'. 14. Change to the Details tab. 15. In the From date field select 'February 15, 2017'. 16. Select Validate > Validate all lines. 17. After successful validation, post the journal 18. Close all pages

Set up supplementary items Many organizations have supplementary items that are included (either at a cost or for free) when certain items are sold. Example: A computer comes with a cable, included free of charge. 1.

Go to Production information management > Products > Released products.

Select item 1000 (Surface Pro 128 GB).

Change to the Sell tab.

Select Supplementary sales items.

Click New.

In the Account code field select All.

In the Supplementary item field select A0001 (HDMI 6' cables)

Click Save.

Close the page.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics365-finance-ops/12-configure-use-agreements-quiz

Configure and manage agreements in Dynamics 365 for Finance and Operations knowledge check 1.

Which of the following is NOT a purchase agreement commitment type? a.

Product value

b. Product cost c.

Product category value

d. Product quantity 2.

In which of the following commitment type is the Amount field is not available? a.

Product value commitment

b. Product quantity commitment c.

Value commitment

d. Product category value commitment 3.

In which of the following discount method does Finance and Operations consider both calculated line discount and the multiline discount and applies only the better of the discounts? a.

MIN (Line, Multiline)

b. MAX (Line, Multiline) c.

Line*Multiline

d. Line+Multiline 4.

In which of the following discount methods does Finance and Operations consider both calculated line discount and the multiline discount and applies only the lesser of the discounts? a.

MIN (Line, Multiline)

b. MAX (Line, Multiline) c.

Line*Multiline

d. Line+Multiline

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Summary Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-agreements-in-dynamics365-finance-ops/13-configure-use-agreements-summary In this module you learned how to: •

Maintain trade agreements

•

Configure smart rounding

•

Create sales agreements

•

Use procurement policies

•

Create purchase agreements

•

Configure trade allowance.

•

Configure brokerage

•

Configure royalties

•

Configure rebates

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Module 10: Configure and Use the Orderto-Cash Process This topic explains how to configure and use the order-to-cash process in Finance and Operations. Lessons •

Introduction

•

Understand the order-to-cash scenario

•

Configure and use commissions

•

Configure customer and item search

•

Create and confirm sales quotations and orders

•

Configure order promising

•

Configure order hold codes

•

Print and post picking lists

•

Process customer returns

•

Practice Lab

•

Module Summary

In this module you learned how to: •

Perform the order-to-cash process

•

Configure and use commissions

•

Configure customer and item search

•

Create and confirm Sales quotations

•

Create and confirm Sales orders

•

Print and post picking lists

•

Generate and Post the Invoice

•

Configure order hold codes

•

Process Customer returns

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Configure and manage the order to cash process in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/ The order to cash process manages the life cycle of the sales process which consists of sub processes of receiving and processing customer sales. The invoicing and accounts receivable functions in the process determine the company's cash inflows. In this module you will learn how to: •

Perform the order-to-cash process

•

Configure and use commissions

•

Configure customer and item search

•

Create and confirm sales quotations

•

Create and confirm sales orders

•

Print and post picking lists

•

Generate and post a sales order invoice

•

Configure order hold codes

•

Process customer returns

Order to cash process Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/1-orderto-cash-process The order to cash process manages the life cycle of the sales process which consists of sub processes of receiving and processing customer sales.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

In the order to cash process, an organization receives orders via various methods, such as a website, email, electronic data interchange (EDI), telephone and more. Then the orders are fulfilled through the logistics, the items may be reserved prior to being picked, packed after being picked, shipped to the customers. Some organizations may require contractual sales agreements to ensure commitments are being fulfilled prior to accepting and processing sales orders. For more information about agreements refer to Configure and use agreements in Dynamics 365 for Finance and Operations . The Accounts receivable department will typically invoice the order and send it to the customer. After the invoice is sent, the Accounts receivable and collection departments are responsible for ensuring that the funds are received from the customers and are settled against their corresponding invoices. For more information about accounts receivable and collections refer to the following modules: •

Perform accounts receivable daily procedures in Dynamics 365 for Finance and Operations

•

Configure credit and collections in Dynamics 365 for Finance and Operations

Another process in an order to cash scenario is order fulfillment. This process ensures that the company has the products and services that can be shipped to the customer.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

In a large organization, a planner runs master planning to create planned purchase, transfer or production orders to fulfill the demands from the customers. When the products are available, the sub process of distribution starts. This process is responsible for shipping and logistics to ensure the products are picked, properly packed, and promptly shipped to the customers. There could be other sub processes involved in an order to cash scenario; such as checking the credit limit of a customer prior to processing the order. In case of any issues, a sales agent can place the order on hold for a specific reason such as credit limit, collections related issues and more. The following list of tasks shows the typical order to cash activities: •

Sales quotations (optional)

•

Sales orders

•

Logistics and shipping

•

Sales order invoice

•

Collection

•

Receive funds

In this module we focus on the following tasks: •

Sales order entry

•

Manage order holds

•

Manage commissions for sales representatives

•

Initiate picking process

•

Verify the shipment has been completed

•

Generate invoices

•

Reverse flow process o o o

Manage customer returns Issue credit notes Refund customer

Create and confirm sales quotations Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/2-createconfirm-sales-quotations Issuing a quotation resembles the process for issuing a sales order. Most functionality found in the Sales order page is also available in the Sales quotation page. Quotations accepted by customers are converted to sales orders. Quotations created for a prospect can only be confirmed when you convert the prospect to a customer.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

You can use sales quotations to: •

Issue sales quotations to customers or prospects.

•

Update sales quotations.

•

Convert sales quotations to sales orders.

•

Create sales quotation templates.

•

Mass create, update, and delete sales quotations.

•

Copy sales quotations.

•

Apply trade agreements, supplementary items, and charges to sales quotations.

•

Use enhanced delivery date features.

•

View the Bill of Material (BOM) for sales quotation line items and make updates to the BOM.

•

Include sales quotation items in master scheduling.

Go to Sales and marketing > Setup > Quotations to configure the following: •

Types - Indicate the kind of sale the quotation is. They can be used for statistics for sales management because they help track and analyze the sales quotations. Examples can include Campaign, New sale, and One time.

•

Template groups - Create groups for quotation templates. For example, a company can have a holiday sale. As part of the sale, there can be three templates with different product offerings. Use template groups to group all three templates as part of the holiday sale.

•

Document titles - Create-commonly used or generic titles for quotation documents. For example, a specific title used for all Autumn offers. These titles are printed on quotation documents.

•

Document introductions - Create and store common salutations and introductions to quotation documents. These introductions are printed on quotation documents.

•

Document conclusions - Create and maintain standard concluding sentences or paragraphs for quotation documents. These conclusions are printed on quotation documents.

Default values You can set up quotation default values in the Sales quotations FastTab on the General tab of the Accounts receivable parameters page in the Accounts receivable module.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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You can set up the default values in the following fields: •

Days campaign expires - Enter the number of days for the quotation expiration date. When you create a quotation, the expiration date of the quotation is automatically calculated as today's date plus the number of days specified in this field.

•

Days before follow-up - Enter the number of days for the quotation follow-up date. When you create a quotation, the follow-up date of the associated activity is automatically calculated as today's date plus the number of days specified in this field.

•

Quotation type customer - This field refers to the Type setup table explained earlier. The type of quotation can default when a sales quotation is created.

Working with quotations You create sales quotations upon customer requests and in mass by using quotation templates. You can change quotations and reprint them. You can also follow up on the status of your sales quotations; those that are canceled, lost and won. To create a sales quotation from the Sales and marketing module, go to Sales and marketing > Sales quotations > All quotations. You can select a sales category in the sales line without selecting an item, if the product on the sales quotation does not have an item number.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Updating sales quotations Each sales quotation has a quotation status as follows: •

Created - When the sales quotation is generated, the status is set to Created.

•

Sent - The quotation is sent. On the Sales quotation page, from the Quotation tab in the Action Pane, click Send quotation in the Generate group. This opens the Send quotation page, where you can send a printed quotation.

•

Confirmed - The quotation is confirmed and converted to a sales order. The confirmation date is inserted into the quotation and the quotation is closed for editing. From the Follow up tab in the Action Pane, click Confirm. This opens the Confirm quotation page.

•

Lost - The quotation is lost, and your company did not win the quote. From the Follow up tab in the Action Pane, click Lost in the Status group. This opens the Lose quotation page, and you are then prompted to enter the reason the sales quotation is lost. This updates the status to Lost and the quotation is closed for editing.

•

Canceled - The quotation is canceled because the customer no longer needs the goods requested. From the Follow up tab in the Action Pane, click Cancel. This opens the Cancel quotation page, and when it is complete updates the status to canceled and is closed for editing.

Before you convert a quotation to a sales order for a prospect, you can manually convert the prospect to a customer by using the Convert to customer in the Modify group on the Follow up tab.

Confirm a sales quotation When the sales quotation is confirmed, the system performs the following tasks: •

Creates a sales order.

•

Copies all values from the sales quotation to the sales order.

•

Creates a quotation confirmation journal record that can be accessed by following the path Sales and marketing > Sales quotations > Quotation update > Sales quotation confirmations.

•

Inserts the confirmation date into the sales quotation as the current system date.

•

Sets the quotation status to Confirmed.

•

Closes the sales quotation for editing.

Sales quotation template currency If the quotation template is in a different currency than the customer account, the currency of the customer account is always used. However, to keep the currency from the template, change the currency on the newly created sales quotation. Follow the prompts for how to update currency, exactly as in sales orders.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Periodic updates Many sales quotations can be updated at the same time. The options for mass update are found in the Sales and marketing > Sales quotations > Quotation update menu. The options for mass updates include the following: •

Cancel quotation - All sales quotations can be canceled at the same time.

•

Lose quotation - All sales quotations can be lost at the same time.

•

Mass create quotation - All sales quotations can be created at the same time.

•

Confirm quotation - All sales quotations can be confirmed at the same time.

•

Send quotation - All sales quotations can be printed at the same time.

Printing sales quotations If sales quotation information changes, it can be reprinted by clicking Send quotation in the Generate group on the Quote tab in the Action Pane. This not only activates the quotation to be reprinted but creates a new quotation journal record.

Scenario A customer requests a quote for five LCD Television HD Black 42 inches. The salesperson creates the sales quotation, prints it, and mails it to the customer. The printing of the sales quotation creates a quotation journal record with a Quotation journal ID of QA-100001-1. After they receive the quotation, the customer contacts the salesperson and changes the quantity of battery packs from five to ten. The salesperson updates the sales quotation and generates the quotation. This not only prints the sales quotation; it creates another contractual offer and is recorded as a new sales quotation journal. The printing of this sales quotation creates another quotation journal record. However, this one has a Quotation journal ID of QA-100001-2. Only the most recent quotation is used when confirming to a sales order.

Copy from all You can use the Copy from all feature to save time and prevent sales quotation information from being entered from scratch, and to copy the whole quotation or specific pieces of different quotations. The Copy from all feature copies the same information as in sales orders. However, the information is only from other sales quotations. You can access the From all button in the Copy group on the Action Pane from the Sales quotation page. The Copy from all page displays a list of sales quotations. You can select the sales quotation or the sales quotation line items to copy. If you click Select all on the quotation line all the sales quotation lines

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

underneath are copied to the new sales quotation. If you do not want to select the quotation lines, manually select the Mark check box on the appropriate quotation line(s). Quotation lines can be copied from one or more sales quotations.

Trade agreements and supplementary items You can use trade agreements to set up discounts and prices for sales orders and sales quotations. Trade agreement options include the following: •

Sales price - The customer receives special pricing for certain items.

•

Line discount - The customer receives a discount if the quantity on a sales quotation line meets the minimum quantity required by the agreement.

•

Multiline discount - This discount works the same as the Line discount with one difference: the customer receives a discount if the quantity on all the applicable lines in a sales quotation meets the minimum quantity required by the agreement.

•

Total discount - The customer receives a discount on the whole quotation. You can access the trade agreement functionality from the General tab in the Action Pane, by clicking the Trade agreement button in the Customer group.

Another option that you can access from the General tab is the Supplementary sales items that are set up for items in relation to the customer on the sales quotation. This option can also be found from the sales quotation line by clicking Sales quotation line > Supplementary items. This functionality works the same as it does for sales orders. For more information about agreements refer to Configure and use agreements in Dynamics 365 for Finance and Operations

Charges You can use charges to add costs to a quotation or to specific items of a quotation. Charges could be used for freight or services. To add charges to the whole sales quotation on the Sales quotation page, in the Quotation tab on the Action Pane, click Maintain charges in the Charges group. To add charges to a quotation line item, select the Maintain charges option from the Sales quotation line menu in the Lines section of the Sales quotation page. This functionality works the same as it does for sales orders. Charges are copied when the quotation is confirmed to the sales order.

Working with BOMs In the Sales quotation page, in the lines area, click Update line, select Based on BOM or formula in the Calculate group. You can use this option to view the BOM for sales quotation line items, to update the sales price and to show the effect of quantity changes on costs. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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You can use the BOM calculation option to: •

Select the options for configurable BOM items and recalculate the sales price for the item.

•

Recalculate costs if raw material costs increase but are not updated in the system.

•

Show the effect of quantity changes on the cost.

•

Have the salesperson change the quantity, view the cost difference, and margin difference based on manufacturing requirements.

With this information, the salesperson can decide to offer the customer a better price on the larger quantity. This functionality works the same as it does for sales orders.

Multiple ship to addresses The delivery address for a sales quotation and its line items defaults from the customer's address. However, you can set the delivery address for the whole quotation to one of the customer's alternative addresses or have the delivery address be designated by the quotation line item. By doing this, different items from the quotation can be shipped to different customer addresses.

Price simulation Open Sales and marketing > Sales quotations > All quotations. Select a sales quotation from the list page and click the Quotation number link go to the Details page and then click Price simulation on the Quotation tab in the Action Pane. Use the Run price simulation page to create a price simulation for a selected quotation header or a single quotation line, by modifying the discount percentage, margin or contribution ratio.

After the simulation is run, you can compare the current quotation totals to the simulated totals. In the Run price simulation page, you can experiment with adjusting the expected revenue or profitability of your quotation based on the desired unit price, discount amount, discount percentage, total amount, margin, or contribution ratio.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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When you are satisfied with the target figures, you apply the suggestion to the quotation line, and its price-related fields will be updated accordingly. You can create as many price simulations as you wish. When you click New, the price conditions from the current quotation line are copied to the page. You can then modify values in any of the price-related fields to the target ones. A change in one of the fields will trigger recalculation in all the other fields. For the system to calculate the sales margin and contribution ratio, the product's unit cost must be known. Use the Simulated prices tab for a detailed view of the original prices, proposed changes and their effect on the quotation totals.

As a rule, when a simulation that sets a new amount is applied to the quotation line, the system recalculates and enters a new value in the Unit price field. If the simulation is based on a new margin or a new contribution ratio, only the Net amount field is updated, and the Unit price is blank. In both cases, any discounts that were on the quotation line before simulation will be deleted.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Sales order entry scenarios Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/3-salesorder-entry-scenarios In this unit you will see two scenarios of creating sales order, a simple one and one with variances. Notice that the scenarios use the demo data company USMF for Finance and Operations.

Scenario - Sales order entry to cash process - simple In this scenario, Susan, the Order processor in company USMF, plays the role of multiple persons in this end-to-end demonstration. The company that Susan works in sells standard products, typically either manufactured or procured to stock. This helps ensure a short delivery lead time. In some cases, the company procures to order. In this scenario, the customer (a wholesaler) orders replenishment of threeline items, projector and LCD TVs. Susan follows these steps: 1.

Go to Sales and marketing > Customers > All customers.

Select customer US-013.

On the Sell tab, click Sales order.

The customer US-013 requests all order lines be shipped as early as possible and complete; no partials. 4.

In the Sales order details page, expand Line details, and then click the Delivery tab.

Notice that requested ship data and receipt dates default to today. This is defaulted from the order header. Because we do not currently have a shipping location defined, the requested ship and requested receipt date at customer location are the same (so no transport time in this scenario). 5.

In the Item number field, enter T0002.

In the Quantity field, enter '10'.

Observe the Requested receipt date on the line. This has been projected 5 days from the requested ship date. Let's investigate: 7.

Click the Simulate delivery date icon.

In the Delivery date simulation, observe the Transport lead time (5 days).

Observe that we can ship the goods today, and the customer will receive the line item 5 days from today.

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13. In the Quantity field, enter '8'. 14. In Line details, click the Product tab. 15. In the Color field, enter Silver. 16. Click Add. 17. In the Item number field, enter T0005. 18. In the Quantity field, enter '10'. 19. In Line details, in the Color field, enter White. You now have three order lines for the customer. 20. Close the page. You may receive a warning that the customer credit limit has been exceeded. This is because our Accounts receivable clerks have had an off-site meeting and have not registered the payments just received from the customer. This is only a warning, so it is okay to proceed. Before proceeding with the order, quickly investigate the actual physical stock availability for the threeline items. 21. Since US-013 is a high priority customer, there is a request to make a reservation against inventory to ensure that no subsequent orders reserve the required on-hand for this high priority customer order. 22. Go to Sales and marketing > Sales order > All sales orders. 23. On the list page, find the sales order you just created. This is most likely at the bottom of the grid. 24. Open the sales order in Edit mode. 25. For line item T0002, open Line details, and then click the Setup tab. 26. Set the Reservation field to Automatic This creates a reservation in inventory for this sales order line demand. 27. In the grid, select line item T0004. 28. Set the Reservation field to Automatic. 29. In the grid, select line item T0005. 30. Set the Reservation field to Automatic. Now all line items have been reserved. 31. On the Sales order header, click the Manage tab. 32. In the Customer group, click Prices. 33. Close the "customer credit limit is exceeded" warning if it appears. The Current prices and discounts page shows how prices and discounts are calculated for the specific customer in question. 34. In the Overview tab, select item number T0002. 35. Enter a Quantity of '10'. 36. Click the Details tab. 37. Observe how prices and discounts are retrieved from trade agreements.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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38. Observe that no discounts have been defined and there are no price breaks. A general price for all customers has been defined, implying a standard list price of USD 3,750 for all customers quantity independent. 39. Click the Overview tab, enter a quantity of 15, and then tabulate. 40. Observe, as expected, that no better price or additional discount is granted for a higher quantity ordered. 41. On the Sales order header, click the Sell tab. 42. In the Tax group, click Sales tax. 43. Observe the sales tax calculated. The sales tax calculated is for sales tax code for the customer receipt location, which in our case is New York State, where the sales tax code is 4%. 44. Close the Sales tax page. 45. On the Sales order header ribbon, click the Sales order tab. 46. In the View group, click Totals. 47. Observe the total computation of all sales taxes pertaining to this sales order. Also notice the customer credit line of USD 500,000, currently exceeded by USD 272,106.40, which is the reason for the credit limit exceeded warning that you may have received. Notice the Invoice amount field has the sales order total to be invoiced to customer. After creating a sales order confirmation for the customer, the objective is to ensure that all lines items align with the line item with the ship date farthest in the future. This to ensure complete shipment, no partials. Output is that all lines will get the same confirmed ship and confirmed receipt date, and the sales order header will get the confirmed ship and receipt date auto updated. 48. On the Sales order header, click the Sell tab. 49. In the Calculate group, click Confirmed delivery date. Confirmed ship and receipt dates set on all order lines, and on the sales order header. 50. On the Sales order header ribbon, in the Generate group, click Sales order confirmation. 51. In the Sales order confirmation, set the Print confirmation check box to True, and then click OK to generate print-to-screen. 52. Close the report. You may get a warning if the credit limit is exceeded. 53. On the Sales order Action pane, click the Pick and Pack tab. 54. In the Generate group, click Picking List. 55. In the Picking list page, click OK. Do not print. The picking list has now been issued and picking can commence. Picking can be started from multiple areas in Finance and operations. We have done it in the simplest way, direct from the Sales order page. An alternative and more specialized way to release lines for picking is to use Release sales order picking, allowing a centralized and consolidated view on sales order line demands awaiting to be released to pick. Yet another approach would to release in a batch, depending on specific query criteria. 56. On the Sales order header ribbon, click the Pick and Pack tab.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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57. In the Generate group, click Picking List Registration. 58. Click Updates, and then click Update All. 59. Click Close. 60. On the Sales order header, click the Pick and Pack tab. 61. In the Generate group, click Packing Slip. 62. In the Packing slip page, set the Print packing slip check box to True. 63. Click OK to generate print-to-screen. A packing slip has now been generated and goods have been shipped. 64. On the Sales order header, click the Invoice tab. 65. In the Generate group, click Invoice. 66. In the Invoice page, set the Print invoice check box to True. 67. Click OK to generate print-to-screen. Make a note of the customer invoice number. You will need this for later! Create a new payment journal. There are more ways to receive a customer payment and settle the payment against one or more customer debits. The chosen method is fast and performs the payment registration and settlement in the same task. However, if business requirements dictate, a customer payment can first be received and then later settled against one or more customer debits. 68. Go to Accounts receivable > Journals > Payments >Payment Journal. 69. Click New. 70. In the Name field, enter CustPay. 71. Click Enter customer payments. 72. Enter an appropriate payment reference of your choice. 73. Select customer US-013. 74. Ensure that the amount of payment is equal to the amount debited the customer for the previous invoice. 75. In the Select to Pay grid, mark the invoice previously created. 76. In the Amount field, enter the amount equal to Remaining amount. 77. Check that there is no remaining amount for settlement resulting from the payment. 78. Click Save in Journal. 79. Click Close. You have now recorded the customer payment received and settled it against the customer invoice. However, it has not be posted yet in the ledger. 80. Select the journal just created. 81. Click Post, and then click the option Post. 82. If the Infolog appears, click to close it. 83. In the page, click Close.

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Scenario - Sales order entry to cash process -- simple, with variation In this scenario, the customer (a wholesaler) orders replenishment of two-line items. However, stock is insufficient on one of the line items, and Susan must trigger supply for this specific demand. This scenario can be considered a deviation of the previous scenario and is slightly 1.

Go to Sales and marketing > Customers > All customers.

On the list page, select customer US-027.

On the Sell tab, click Sales order.

In the Sales order details page, expand Line details.

Click the Delivery tab.

more complex.

The Requested ship date and receipt dates default to today. This is defaulted from the order header. Because we do not currently have a shipping location defined, the Requested ship date and Requested receipt date at customer location are the same; so no transport time. The customer wants 10 projector televisions, 8 sound receivers, 10 cables that measure 10 meters each, and 4 cables that measure 2 meters each. 6.

In the Item number field, enter T0002.

In the Quantity field, enter '10'.

Observe the requested receipt date online. This has been projected 1 day from the requested ship date. Let's investigate 8.

Click the Simulate delivery date.

In the Delivery date simulation, observe the transport lead time (1 days); observe that we can ship the goods today, and the customer will receive the line item 1 day from today.

10. Click Cancel to exit the page. We will not confirm dates on a per-line basis; instead, we will confirm dates across all lines later so that we ensure ship date alignment for complete delivery. 11. In the sales order lines, click Add line. 12. In the Item number field, enter T0001. 13. In the Quantity field, enter '8'. 14. In Line details, expand the Product tab. 15. In the Size field, enter '10'. 16. In the lines grid, press CTRL. 17. In the Item number field, enter T0003. 18. In the Quantity field, enter '16'

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Depending on your data, when you entered the T0003 line item, you may have noticed that the Requested ship date set by the Available to Promise (ATP) calculation was slightly into the future. This is because you may already have too much time-phased demand for your projected and time-phased supply shorter-term supply. 19. In the Sales order page, positioned on line item T0003, click the Simulate delivery date icon. According to our available to promise calculation, we have a lead time before we can ship equaling 32 days. Let's investigate. 20. Close the message, click Cancel to close the simulation page. 21. Still positioned on line item T0003, on the ribbon, click Product and supply, and then click ATP information. 22. Go to the ATP quantity section (the table section). 23. Scroll to the first line that does not have an exclamation mark. This is the point in time where you, based on current expected receipts, issues, and projected on hand, can promise a shipment of quantity 16. 24. Click Close. 25. Go back to Sales and marketing > Sales Orders > All sales orders. Notice that the purchase order created may have a delivery date within the otherwise normal purchase lead-time for this item. In that case, an Infolog will display. According to ATP, you already have enough inflow planned on purchase orders to be delivered. Otherwise, the ship date on the sales order line would equal today's date plus replenishment lead time, and you would not have a purchase order created within normal purchase lead time. Therefore, in principle, there is no need for a new purchase order creating additional inflow. However, for our demonstration, we will insist on creating additional inflow directly off the sales order line demand. 26. Go to the purchase order just created, When in the Purchase order details page, confirm the purchase order. 27. On the Action Pane, click the Receive tab. 28. In the Generate group, click Product receipt. 29. In the Product receipt page, enter any packing slip number (the vendor's packing slip number). 30. Click OK. You have now received the goods into your warehouse. The objective is to ensure that all lines items align with the line item with the ship date farthest in the future. This helps ensure complete shipment, no partials. Output is that all lines will get the same confirmed ship and confirmed receipt date, and the sales order header will get the confirmed ship and receipt date auto updated. 31. On the Sales order header, click the Sell tab. 32. In the Calculate group, click Confirmed delivery date.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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33. On the Sales order header, in the Generate group, click Sales order confirmation. 34. In the Sales order confirmation, set the Print confirmation check box to True, and then click OK to generate print-to-screen. 35. Close the report. 36. On Sales order header, click the Pick and Pack tab. 37. In the Generate group, click Picking List. 38. In the Picking List page, click OK. 39. On the Sales order header, click the Pick and Pack tab. 40. In the Generate group, click Picking List Registration. 41. Click Updates, and then click Update All. 42. Click Close. 43. On the Sales order Action Pane, click the Pick and Pack tab. 44. In the Generate group, click the Packing Slip action. 45. In the Packing slip page, set the Print packing slip check box to True, and then click OK to generate print-to-screen. 46. On the Sales order header ribbon, click the Invoice tab. In the Generate group, click Invoice. 47. In the Sales order invoice page, set the Print invoice check box to True, and then click OK to generate print to screen. 48. Close the report. 49. Make a note of the Customer invoice number. You will need this for later! 50. Go to Accounts receivables > Journals > Payments >Payment Journal. 51. Click New. 52. In the Name field, enter CustPay. 53. Positioned on the new journal, click Enter Customer Payments. 54. Select customer US-027. Make sure that the amount of payment is equal to the amount debited the customer for the previous invoice. 55. In the Select to Pay grid, mark the invoice previously created. 56. In the Amount field, enter the amount equal to Remaining Amount. 57. Check that there is no remaining amount for settlement resulting from the payment. 58. Click Save in Journal. 59. Click Close. 60. Select the journal just created and click Post, and then click the option Post. 61. If the Infolog appears, close it. 62. In the page, click Close.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Sales order picking processes Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/4-salesorder-picking-processes Note that the picking processes covered in this module are based on the simplest version of the warehouse handling process. Settings that affect how you perform the pick process include the following: •

Dimension groups - Set up product, storage, and tracking dimensions requirements for picking.

•

Item model group - Control the registration requirements.

•

Accounts receivable setup parameters - Set up transactions for automatic picking.

You can set up and maintain the settings for the Item model group by using the fields in the Physical update field group to determine the workflow used when you send or receive items. With these fields, you can set rules on how an order is handled for receiving and shipping.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Although, the settings of these fields are typically done by other departments manager to set inventory policies, it is beneficial for sales department to understand the effect of these settings. When shipping an item, you can use the following parameters in the Item model group page: •

Picking requirements - This parameter determines whether the item's inventory records must have the status Picked before a packing slip can be physically updated or before an inventory journal can be posted. When this is selected, the picking list registration must be manually posted.

•

Deduction requirements - This parameter determines that you must physically update item deductions before they can be financially updated.

You can pick items with specific dimension values even though the Picking requirements check box is cleared.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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In the Accounts receivable parameters, you can set up transactions for automatic picking at the release to picking point in time. The Accounts receivable parameters page is located at Accounts receivable > Setup.

In the Updates tab you will find the following fields: •

Use default language - Use the default language code from your own company information when you print the picking list. If this check box is not selected, the language on the picking list is the customer's language. However, if there is no translation of the customer's language, the company default language is used.

•

Automatic reduction, picking list - Select this option to reduce the quantity on the picking list to match the quantity available, if the full quantity is not available-in stock. In this manner, a picking list is not made for items that are not in stock. Notice, that for this to work, you must generate the picking list from the order header by clicking the Posting button, and not directly from the line. Also notice that if the Complete check box on the Sales order line in the Lines Details fast tab on the General tab is selected, an error will appear and then you will be required to complete the full order and not only a part of it.

•

Picking route status - Select Completed in the Picking route status field to have the system automatically set the inventory transactions to Picked when you update the picking list. You can select Completed, for example, when the items sold are always in stock and therefore a response to the picking process is not needed. Select Activated if you want to update the picking list manually.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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If both Picking requirements is selected in the item model group and Picking route status is set to Completed in the Accounts receivable parameters, the Accounts receivable parameters overrules the settings in the Item model group. This means that the picking list registration is performed automatically. The following lists different ways that you can set up a picking process: •

Automatic - Use when a response to the picking list is not necessary, for example, when the items sold are always in stock, or when users do not have to specify different dimension values, than what is on the sales order line or what is reserved.

•

Manual : o

One step process - Use this process if you want to enter the dimensions and register the pick from the sales order line.

Two step process - Use when you want to assign a picking task and then perform a physical pick.

Release sales order picking The Release sales order picking functionality helps warehouse employees gain an overview of the sales orders that are to be released for picking, based on actual availability of items and considering customer service priority. By using this feature for the picking process, you are ensured that only picking lists for items in stock are created. There are two pages: Release sales order picking for sales orders and Release transfer order picking for transfer orders. You can use Customer classification groups to flag customers according to service priority. If back orders exist for sales order lines, one of the criteria that you can use to determine which sales orders must have quantity available allocated to them is the customer classification group that you attach to the customer for the line.

Example: Kevin, the Sales manager, must be able to determine which customers' back orders must be on-hand in inventory to allocate them first. To create a priority ranking, the Warehouse manager attaches a customer www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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classification group to the customers. The Warehouse manager creates premium and standard classifications, 1 and 2 respectively, that are then attached to customers. Later, the Warehouse manager must allocate available inventory to two sales order lines with the same inventory dimensions specified for them on the same shipping date. One sales order line is for a customer whose classification group is 1, and one line is for a customer whose classification group is 2. Because classification 1 customers take priority, all the quantity that is available is allocated to the classification 1 customer's line. When you have attached the customer classification group to the customer, you can view it on any sales order line that appears in the Release sales order picking page. As part of the order to cash process, a salesperson typically generates and prints the picking list for the order to initiate the outbound process performed by Warehouse workers. To print the picking list, on the sales order select PICK AND PACK in the Action Pane and click the Picking list button.

The Posting picking list dialog box consists of the following important parameters: â&#x20AC;˘

Quantity - Select the quantities on which to base the posting of the document. The options that are available in the field vary, depending on the type of document that you are posting, such as a packing slip or an invoice: o

Deliver now - Select all quantities that are entered in the Deliver now field, Use this option to confirm or deliver a partial order.

Picked - Select all quantities that have been picked.

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All - Select all quantities on the sales order that have not yet been updated by the current document type.

Packing slip - Select all quantities that have been updated by a packing slip.

Picked quantity and not stocked products - Select all quantities that have been picked and all product quantities that are not stocked.

•

Posting - Select this option to post the sales order. Clear this option to print a pro forma sales order. If you made an agreement for a payment schedule, the payment schedule is not shown on the pro forma sales order. Payment schedules are shown only on actual sales orders.

•

Late selection - Select this option to apply the selected query later. This option is used for batch jobs. The query is run when the batch job is run.

•

Reduce quantity - Select this option to automatically reduce the delivered quantity when the document is posted, so that the delivered quantity equals the available inventory.

•

Print - Select when to print documents. The Print field is available only if you select the Print invoice, Print confirmation, Print picking list, or Print packing slip option. The following options are available: o

•

After - Print documents after all the invoices have been updated.

None - There is no requirement for the credit limit check.

Check credit limit - Select the information that will be analyzed when a credit limit check is performed. The following options are available: o

•

Current - Print documents after each invoice has been updated.

Balance - The credit limit is checked against the customer balance.

Balance + packing slip or product receipt - The credit limit is checked against the customer balance and deliveries.

Balance+All - The credit limit is checked against the customer balance, deliveries, and open orders.

Summary update for - Select how multiple sales orders will be summarized. The following options are available: o

None - Do not summarize sales orders; for example, a separate invoice is created for each sales order.

Invoice account - Summarize all selected orders based on the criteria that are set up in the Summary update parameters page.

Order - Summarize a selected range of orders into one order that you specify; the criteria are set up in the Summary update parameters page. If you select this option, you must select a value in the Sales order field.

Automatic summary - Summarize all selected orders based on the criteria that are set up in the Summary update parameters page, but only if summary updating has been specified in the Summary update page. If summary updating has not been specified, the order is posted separately.

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Packing slip - Summarize a selected range of orders into one invoice for each packing slip. This option is available only if Packing slip is selected in the Quantity field.

When you click OK the picking list will be printed if you set the Print picking list field value to Yes.

For more information on picking and warehouse management you can refer to the following modules: •

Configure warehouse management in Dynamics 365 for Finance and Operations

•

Configure and work with inventory management in Dynamics 365 for Finance and Operations

•

Use inventory reports in Dynamics 365 for Finance and Operations

•

Configure and work with transportation management in Dynamics 365 for Finance and Operations

Configure order promising Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/5configure-order-promising Order promising helps you reliably promise delivery dates to your customers and gives you flexibility so that you can meet those dates.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Order promising calculates the earliest ship and receipt dates and is based on the delivery date control method and transport days. Based on the delivery date control type on the sales order line, Finance and Operations calculates the earliest delivery date and populates the Requested ship date (the earliest date the company is able to dispatch the product's full line quantity from the warehouse that is specified on the line ) and the Requested receipt date ( the earliest date the product's full line quantity can be expected to be dropped off at the customer's address). The five delivery date control types are shown in this image.

None The following image below shows the impact of order promising if the delivery date control is set to None: Order promising assumes that stock is always available and order shipment can be promised on the day the order is taken.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Sales lead time The following image below shows the impact of order promising if the delivery date control is set to Sales lead time -- Sales lead time is the time between creation of the sales order and shipment of the items. The delivery date calculation is based on a default number of days, and does not consider stock availability, known demand, or planned supply. You can define the lead time for a site. If no site-specific lead time is defined, the default setting for the item is used. Order promising assumes that stock is available beyond the lead time and order shipment can be promised regardless of the actual availability.

ATP (available-to-promise) ATP is the quantity of an item that is available and can be promised to a customer on a specific date. The ATP calculation includes uncommitted inventory, lead times, planned receipts, and issues. ATP has the following features: •

Delivery promises are based on real time data.

•

Eliminates or reduces reservations as it takes into account already entered (promised and unfulfilled) sales orders.

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Can be fine-tuned with margin time.

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Considers business's working calendars as well as carrier's and customer's calendars.

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Requires high delivery performance from suppliers.

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Does not require a planning run -- uses already existing supply.

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Good fit for distribution industry and make-to-stock manufacturers.

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Supports intercompany trade.

This image shows the calculation of ATP -- It checks uncommitted stock, supply and committed demand.

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ATP + issue margin The shipping date is equal to the ATP date plus the issue margin for the item. The issue margin is the time that is required to prepare the items for shipment. This image shows the calculation of ATP + issue margin. It checks uncommitted stock, supply, committed demand, and a fixed margin in days.

CTP (capable-to-promise) Order promising is based on a dynamic plan (sales order line explosion) checking availability and lead time components in the BOM and process time in the routes of the finished product.

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Delivery alternatives Sales order takers can use the Delivery alternatives page to discover alternative order fulfillment options. The Delivery alternatives page layout gives an overview of all alternative options. It also lets order takers look beyond the current company for fulfillment opportunities. They can view both intercompany opportunities and opportunities from external vendors. By sorting the options by delivery date, sales order takers can view an intelligent list of delivery alternatives. In addition, parameters help them better manage the suggested deliveries. Because transport time can affect delivery dates, sales order takers can explore the various transportation choices that carriers offer. Consider the following for delivery alternatives •

Program-calculated recommendations for the earliest delivery date based on: o o o o

Availability across sites Availability for variants Partial quantity Alternative transportation options

•

Sourcing from external vendor or via intercompany, cross-docking or as direct delivery

•

Insights into existing demand and supply to potentially reallocate and expedite

•

Support for all delivery date control methods

Delivery control defaults In the Accounts receivable parameters page you can set up defaults for delivery control:

You can also set up the order promising of a product. Go to Product information management > Products > Released products page.

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ATP time fence Calculate ATP by using this period (in days) if you selected the ATP calculation method in the Delivery date control field.

ATP backward demand time fence Enter the number of days backward from today that past due demand (that is, inventory issues) will be considered when calculating the earliest available delivery dates for inventory. For example, if you enter 0, no past due demand will be considered. If you enter 1, yesterday's demand will be considered.

ATP backward supply time fence Enter the number of days backward from today that past due supply (that is, inventory receipts) will be considered when calculating the earliest available delivery dates for inventory. For example, if you enter 0, no past due supply will be considered. If you enter 1, yesterday's supply will be considered.

ATP delayed demand offset time The number of days into the future from today when past due demand on inventory issues will be considered as having its delivery date. For example, if you enter 0, items with a past due delivery date will be considered as delivered today. If you enter 1, items with a past due delivery date will be considered as delivered tomorrow.

ATP delayed supply offset time The number of days into the future from today when items on past due inventory receipts will be considered as received. For example, if you enter 0, the item will be considered as received today. If you enter 1, the item will be considered as received tomorrow.

ATP incl. planned orders Include planned orders in ATP calculations if you selected the ATP calculation method in the Delivery date control field.

ATP calculations The ATP quantity is calculated by using the "cumulative ATP with look-ahead" method. The main advantage of this ATP calculation method is that it can handle cases where the sum of issues among receipts is more than the latest receipt (for example, when a quantity from an earlier receipt must be used to meet a requirement).

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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The "cumulative ATP with look-ahead" calculation method includes all issues until the cumulative quantity to receive exceeds the cumulative quantity to issue. Therefore, this ATP calculation method evaluates whether some of the quantity from an earlier period can be used in a later period. The ATP quantity is the uncommitted inventory balance in the first period. Typically, it's calculated for each period in which a receipt is scheduled. The program calculates the ATP period in days and calculates the current date as the first date for the ATP quantity. In the first period, ATP includes on-hand inventory minus customer orders that are due and overdue. ATP is calculated by using the following formula: ATP = ATP for the previous period + Receipts for the current period -- Issues for the current period -- Net issue quantity for each future period until the period when the sum of receipts for all future periods, up to and including the future period, exceeds the sum of issues up to and including the future period. When there are no more issues or receipts to consider, the ATP quantity for the following dates is the same as the latest calculated ATP quantity. If not all the dimensions that are used for an item are given when the ATP check is completed, they can still be specified on the issue and receipts. In this case, in the ATP calculation, the receipts and issues must be aggregated to the existing dimensions to reduce the number of receipt and issue lines that are used in the ATP calculation. The ATP quantity that is shown is always greater than or equal to 0 (zero). If the calculation returns a negative ATP quantity (for example, if the quantity that was previously promised exceeds the available quantity), the program automatically sets the quantity to 0. The ATP backward demand time fence field controls how far back in time to look for delayed demand orders or inventory issues. The ATP backward supply time fence field controls how far back in time to look for delayed supply orders or inventory receipts. For example, if orders that are delayed by only seven days should be considered in the ATP calculation, both fields should be set to 7. The ATP delayed demand offset time and ATP delayed supply offset time fields control when the delayed demand or supply will be considered in the ATP calculation. For example, if the delayed supply and demand should be considered in the ATP calculation the day after tomorrow, both fields should be set to 2. A value of 2 means that the quantity of an item on a delayed purchase order that should be considered in the ATP calculation will be shown as available two days after the current date.

Configure order hold codes Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/6configure-order-hold-codes During order entry, but before order submission and confirmation, salespersons might want to manually put an order on hold to prevent it from being released to the warehouse for further processing. For

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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example, the customer who is placing the order might not be ready to commit to it, or critical data that is required to process the order might be missing. While the order on hold, it cannot be processed by the warehouse for shipping. By placing a quotation or sales order on hold, you can stop an order, return, order line, or return line. Order holds can be applied manually, or automatically based on a set of criteria you define, like customer credit check. You can define as many different holds as you need to manage your business. These holds can be applicable at specific steps in your order's life cycle or applied to a customer or item no matter where the orders currently are in the order cycle, with two exceptions. You cannot apply a hold if your order has been pick released. This procedure shows how to place customer sales orders on hold, how to work with order hold checkouts, and how to remove order holds. You can run this procedure in demo data company USMF in Finance and Operations or on your own data.

Set up order holds 1.

Go to Sales and marketing > Setup > Sales orders > Order hold codes.

Click New.

In the Hold code field, type 'Call back'.

In the Description field, type 'Order held waiting for customer callback'.

Optionally, select the Remove reservations check box to remove any physical reservations from the order when this hold code is added.

Click Save.

Place an order on hold 1.

Go to Sales and marketing > Sales orders > All sales orders.

Click New.

In the Customer account field, enter or select US-013.

Click OK.

In the Item number field, enter or select D0001.

In the Quantity field, enter 1.

On the Action Pane, click Sales order.

Click Order holds.

Click New.

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12. Close the page. 13. Go to Sales and marketing > Sales orders > All sales orders. 14. In the list, view the orders that are currently on hold have the "Do not process" and "Hold" fields marked. 15. In the list, select the sales order you created in steps 1 to 6.

Manage order holds 1.

On the Action Pane, click Hold checkout.

Click Check out. The Checkout to field now shows your user ID.

Click Clear checkout.

On the Action Pane, click Clear hold.

When you are ready to remove the hold and allow the order to proceed to the next fulfilment step, you must clear the hold. If the order requires no changes, you can run the Clear holds action. However, you can use the Clear and modify action if, when clearing a hold, the order must be updated. The Clear and submit action is only applicable when you use Call center functionality. The hold has now been cleared from the order and removed from the list of Active holds. To see all the holds or their subset according to a specific status, change the value in the Show field.

Process customer returns Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/7process-customer-returns Customers can return items to a company for various reasons, such as an item is defective, or an item does not fulfill the customer's expectations. The return process starts with a request from a customer to return an item and progresses to creating a return order in Finance and Operations. There are two types of return order process: •

Physical return - The return order authorizes the physical return of products.

•

Credit only - The return order authorizes a customer credit but doesn't require that the customer physically return the products.

Physical return order process This is a list of tasks that are involved in the physical return order process:

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•

Create a return order - Formally document the authorization for the customer to return any defective or unwanted products. The return order doesn't require that the company accept the returned products or provide a credit for the customer. If the return is accepted, you can authorize a replacement item to be sent before the defective item has been returned.

•

Items arrive at warehouse for inspection - Complete an initial inspection and validation against the return order document. The return order also supports quarantine of the returned items for additional inspection and quality control.

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Determine disposition - Finalize the inspection process and decide what should be done with the returned products. As part of this step, decide whether you will credit the customer, reject the product return, or accept the product return, scrap the product, and then send a replacement product to the customer.

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Generate a packing slip - Generate a packing slip and commit the disposition decision that you made in step 3. Finalize the logistics processes.

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Generate an invoice - Close the return order.

Credit only process This is a list of tasks that are involved in the credit only return order process: •

Create a return order - Formally document the authorization for the customer to receive a credit without returning the defective or unwanted products. The Credit only disposition code authorizes the decision to credit the customer without physical return.

•

Generate an invoice - Generate the credit note, and then close the return order.

Return material authorization (RMA) Return Material Authorization (RMA) processing builds on sales order functionality. An RMA is registered as a return order, which is created as a sales order, and may have another sales order associated with it, called a replacement order. Both sales orders link to the originating RMA number. •

Return order - To register an RMA, you create a return order, which is a sales order that has the assigned type, Returned order. Any changes that you make to the RMA information is automatically updated in the sales order. Until the return order has the status Open, it will not appear in the list of sales orders. You use RMA to handle the arrival and receipt of the returned items, as well as to authorize a credit only disposition action (see section Disposition codes and disposition actions). All other follow-up processes must be handled in the sales order.

•

Replacement order - When a replacement order must be shipped to the customer, the RMA can include a second associated sales order. You can manually create the replacement order for the RMA to support immediate shipment. Alternatively, the replacement order can be created automatically after the arrival, inspection, and receipt are completed for the RMA line item that has a disposition code that indicates replacement. The replacement order has the same functionality that is associated with a sales order. For example, you can use it to configure a custom product as the replacement item, create a production order to repair a returned item, www.dynamicscompanions.com Dynamics Companions

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create a direct delivery purchase order to send the replacement from a vendor, or support other purposes.

Create a return order header The return order process starts when a customer contacts your organization to return a defective or unwanted product and/or it is to be credited. After your organization accepts the return, the return is documented by a return order. This return order becomes the focal point of the internal processing of the returned product. When you create a return order, the information in the following table must be included. Field

Description

Comments

Customer account

A reference to the Customers table

You must provide an existing customer account.

Delivery address

By default, the organization’s address is used. If a specific The address that warehouse is selected on the header, the delivery address is the item is returned changed to the delivery address of the warehouse. You can to change this address on the Return order details page.

The site or warehouse that Site/warehouse receives the returned product

The delivery address for the return order is determined based on the delivery address of the site or warehouse.

The ID that is assigned to the return order

The RMA number is used as an alternate key throughout the return order process. The RMA number that is assigned is based on the RMA number sequence that is set up on the Accounts receivable parameters page.

Deadline

The last date that an item can be returned

The default value is calculated as the current date plus the period of validity. For example, if a return is valid for only 90 days from date when the return order is created, and the return order was created on May 1, the value in the field is 30-July. The period of validity is set on the Accounts receivable parameters page.

Return reason code

The customer’s reason for returning the product

The reason code is selected in the list of user-defined reason codes. You can update this field at any time.

RMA number

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Create return order lines After you complete the return order header, you can create return lines by using one of the following methods: •

Manually enter the item details, quantity, and other information for every return line.

•

Create a return line by using the Find sales order function. We recommend that you use this function when you create a return order. The Find sales order function establishes a reference from the return line to the invoiced sales order line, and retrieves line details such as item number, quantity, price, discount, and cost values from the sales line. The reference helps guarantee that, when the product is returned to the company, it's valued at the same unit cost that it was sold at. The reference also validates that return orders aren't created for a quantity that exceeds the quantity that was sold on the invoice.

Charges Fees and charges can be added to the return order through one or more of the following methods: •

You can manually add charges to the return order header, the return order line, or both.

•

Charges can be automatically added to the return order header as a function of the return reason code.

•

Charges can be automatically added to the return order line, based on the disposition code of the line.

Charges are automatically added after a return reason code or disposition code is assigned to the line. If the reason code is changed later, the existing charge entry won't be removed, but a new charge entry might be added, based on the new reason code. When you add charges to return order lines, charges that are calculated as a percentage of the line or order value become negative when the line or line order is negative, unless the percentage is also a negative number. A charge that has a negative value represents a credit to the customer.

Return reason codes By applying reason codes to returns, you can help make return patterns easier to analyze. Reason codes provide information about why a customer wants to return items. Some organizations have many reason codes. These organization might group the reason codes into reason code groups to gain a better overview and for accumulated reporting.

Disposition codes and disposition actions An important step in the return order process is the assignment of a disposition code to the return order line as part of arrival registration. The disposition code determines the following information:

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•

The financial implications - Should the customer be credited for the returned items, and should any charges be added to the return order line?

•

The disposition of the returned item - Should the item can be added back to inventory, should it be scrapped, or should it be returned to the customer?

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The logistics of the returned item - Should a replacement item be issued to the customer?

In addition to determining how the returned goods are disposed of, disposition codes can cause charges to be applied to the return line. They can also be used to group returns for statistical analysis. Disposition codes are defined as part of the setup of return orders. Each disposition code must reference one of the available disposition actions. This list shows the financial and logistic implications of each disposition action: •

Credit only - The customer is credited the sales price minus any fees or charges. Loss from scrapping the item is posted to the ledger. The item should not be returned. This disposition action is used for the following cases: o o o

There is enough trust among the parties. The cost of returning the defective item is prohibitive. The items can't be allowed back into inventory. Because of other conditions, a physical return isn't required.

•

Credit - The customer is credited the sales price minus any fees or charges. The inventory value is increased by the cost of the returned item. The item is returned and is added back into inventory.

•

Replace and credit - The customer is credited the sales price minus any fees or charges. Inventory value is increased by the cost of the returned item. A separate sales order for a replacement is created and is handled separately. The item is returned and is added back into inventory.

•

Replace and scrap - Customer is credited the sales price, minus any fees or charges. Loss from scrapping the item is posted to the ledger. A separate sales order for a replacement is created and is handled separately. The item is returned and scrapped.

•

Return to customer - No financial implications, except any fees or charges. The item is returned but is sent back to the customer after inspection. This disposition action might be used if the item has been deliberately damaged, or if the warranty has been voided.

•

Scrap - The customer is credited the sales price minus any fees or charges. Loss from scrapping the item is posted to the ledger. The item is returned or scrapped.

Arrival at the warehouse for inspection Before you can physically receive returned items into inventory by posting a packing slip, the items must go through arrival registration and an optional inspection. The sections that follow describe each step. The process has several other variations that are not covered in this unit. Here are some of these variations:

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•

Don't use the Arrival overview list to create an Arrival journal. Instead, manually create the Arrival journal. Return orders will have Sales order as the reference.

•

If you're using Warehouse management, generate pallet transports. The return line will have a status of Arrived during pallet transport.

•

During the arrival process, returns are integrated with the general process for warehouse arrivals. The arrival process also supports the creation of quarantine orders for returned items that must undergo a separate inspection.

Identify products in the Arrival overview list The Arrival overview page lists all the planned incoming arrivals. Arrivals from return orders must be processed separately from other types of arrival transactions. After you've identified an incoming package on the Arrival overview page (for example, by using the accompanying RMA document), on the Action Pane, click Start arrival to create and initialize an Arrival journal that matches the arrival.

Edit the Arrival journal By setting the Quarantine management option to Yes, you can create a quarantine order for the return line. If a line has been sent to quarantine for inspection, you can't specify a disposition code. If you set the Quarantine management option to Yes in the item's inventory model group, the Quarantine management option on the Journal lines page will be marked for the Arrival journal line and can't be changed. If the line is sent to quarantine, you must specify the appropriate quarantine warehouse. If the arrival line isn't sent for inspection, the warehouse arrival clerk must specify the disposition code directly on the Arrival journal line and then post the Arrival journal. If the same disposition code should not be assigned to the whole quantity of the return line, or if the full quantity of the line hasn't been received, you must split the line. When you split an Arrival journal line, you also split the return line (SalesLine) and create a new lot ID. You can split the line by reducing the quantity of the Arrival journal line. When the journal is posted, a new return line is created that has a status of Expected for the remaining quantity. You can also split the line by clicking Functions > Split.

Process the quarantine order If the returned products are sent for inspection at the quarantine warehouse, any additional processing is completed in a quarantine order. One quarantine order is created for each arrival line that is sent to quarantine. The disposition code indicates the result of the inspection process.

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You can split a quarantine order, just as you can split the Arrival journal. If you split the quarantine order, you cause a corresponding split of the return line. After the disposition code is entered, complete the quarantine order by using either the End function or the Report as finished function. If you select Report as finished, a new arrival is created in the designated warehouse. You can then process this arrival by using the Arrival overview page. If the arrival originates from a quarantine order, you can't change the disposition code that is assigned during inspection. If you complete the quarantine order by using the End function, the lot is automatically registered. Sometimes, an item might be sent back from quarantine to the Shipping and receiving department. For example, the quarantine inspector might not know where to store the item in inventory. In this case, the corresponding packing slip must be updated to correctly register and act on the disposition code that is specified because of the quarantine. Acknowledgment of receipt can be sent to the customer when the return line is registered. The Return acknowledgment report resembles the return order document. The Return acknowledgment report isn't journalized or otherwise registered in the system, and it isn't a required step in the return order process.

Replace a product There are two methods for managing product replacement: •

Up-front replacement - Replace a product before the returned product is received from the customer.

•

Replacement by disposition code - Automatically create a new replacement order line.

Up-front replacement In up-front replacement, the replacement item can be delivered to the customer before the item is returned. This method is useful if, for example, the item is a machine part that can't be removed unless a spare part is available to take its place, or if you just want your customer to have the replacement product as soon as possible. The up-front replacement order is an independent sales order. The header information is initialized from the customer, and the line information is initialized from the return order. You can edit, process, and delete the replacement order independently of the return order. When you delete a replacement order, you receive a message that the order was created as a replacement order. The return order includes a reference to the replacement order. If an up-front replacement order is created for a return order before the defective item is returned, you can't select disposition codes for replacement after the defective item has been returned.

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Replacement by disposition code The replacement item will be delivered by using an independent sales order, the replacement sales order. This sales order is created when the packing slip for the return order is generated. The order header uses information from the customer that is referenced on the return order header. The line information is collected from the information that is entered on the Replacement item page. The Replacement item page must be filled in for lines that have disposition actions that start with the word "replace." However, neither the quantity nor the identity of the replacement item is validated or limited. This behavior allows for cases where the customer wants the same item but in a different configuration or size, and cases where the customers wants a completely different item. By default, an identical item is entered on the Replacement item page. However, you can select a different item, provided that the function has been set up. You can edit and delete the replacement sales order after it's created.

Generate a packing slip Before returned items can be received into inventory, you must update the packing slip for the order that the items belong to. Just as the invoice update process is the update of the financial transaction, the packing slip update process is the physical update of the inventory record. In other words, this process commits the changes to inventory. In the case of returns, the steps that are assigned to the disposition action are implemented during the packing slip update. When you generate the packing slip, the following events occur: •

In the warehouse, the standard process is used to perform a physical receipt. Ledger postings are generated if the inventory model group (Post physical inventory) and the Accounts receivable parameters (Post packing slip in ledger) are set appropriately.

•

Items that have been marked with a disposition action that contains the word "scrap" are scrapped, and the inventory loss is posted to the ledger.

•

Items that have been marked with the Return to customer disposition action are received and delivered to the customer. These items have no net effect on inventory.

•

A replacement sales order is created. This sales order is based on information on the Replacement item page.

You can generate the packing slip only for lines that have a return status of Registered, and only for the full quantity on the return line. If several lines on the return order have the Registered status, you can generate the packing slip for a subset of the lines by deleting the other lines from the Post packing slip page. Partial returns are defined in terms of return order lines, not in terms of return order shipments. Therefore, if you receive the full quantity that is indicated on one return order line, but you receive nothing from the other lines on the return order, the delivery isn't a partial delivery.

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However, if a return order line requires that 10 units of an item be returned, but you receive only four units, the delivery is a partial delivery. If not all the expected return items have arrived, you can set the shipment aside and wait for the rest of the returned quantity to arrive. Alternatively, you can register and post the partial quantity. As part of the process for posting packing slips, you can associate the packing slip reference number from the customer's shipping documents with the order lines. This association is optional and is for reference only. It doesn't create any transactional updates. In general, you can skip the packing slip process and go directly to invoicing. In this case, the steps that you would have performed during packing slip generation are completed during invoicing.

Generate an invoice Although the Return order page contains the information and actions that are required in order to handle the special logistical aspects of the return order, you must use the Sales order page to complete the invoicing process. Your organization can then invoice return orders and sales orders at the same time, and the same person can complete the invoicing process, as required. To view the return order from the Sales order page, click the link for the sales order number to open the associated sales order. You can also find the return order on the All Sales orders page. Return orders are sales orders that have an order type of Returned order.

Credit correction As part of the invoicing process, verify that any miscellaneous charges are correct. To cause the ledger postings to become corrections (Storno), consider using the Credit correction option on the Other tab of the Posting invoice page when you post the invoice/credit note.

Post to the ledger The ledger postings that are generated when the return order is invoiced are influenced by a few important settings and parameters: •

Return cost price - For inventory models other than Standard cost, the Return cost price parameter determines the cost of the item when it's accepted back into inventory or scrapped. To calculate a correct valuation of inventory, it's important that you set the Return cost price parameter correctly. If you use the Find sales order function to create a return order line that has a reference to a customer invoice, the Return cost price value is equal to the cost price of the item that is sold. Otherwise, the cost price value comes from the item setup or can be entered manually.

•

Credit correction/Storno - The Credit correction parameter on the Posting invoice page determines whether postings should be recorded as positive (DR/CR) entries or as correcting, negative entries.

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Configure and use commissions Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/8configure-use-commissions This unit introduces the steps to set up sales commissions for a sales team that is based on a percentage of revenue or contribution margin. It also describes how to inquire on the calculated commissions from posted sales transactions and item returns. Finance and Operations calculates sales commissions at the sales line level when a sales order is invoiced. When the sales order is being invoiced, Finance and Operations searches for the related sales representative, item, and customer combination set up in the Commission calculation page. You can use the Sales and marketing > Commissions > Commission calculation page to set up relationships between the combinations of items, customers, and sales representatives to define the commission rate an employee is paid from a sale, and for groups of sales representatives, items and customers. The following lists the parameters in Commission calculation page: •

Customer code - Select whether the commission agreement applies to one customer, a customer commission group, or all customers.

•

Customer relation - Select the customer account or customer group, depending on the selection in the Customer code field. If you selected Table, select a customer account. If you selected Group, select a customer group. If you selected All, you do not have to select a customer relation.

•

Sales rep. code - Select whether the commission agreement applies to a commission sales group or all sales representatives.

•

Sales rep. relation - Select the sales representative group, if you selected Group in the Sales rep. code field.

•

Discount - Specify whether the calculation of the commission for the individual invoice line will be based on the gross line amount (Before line discount) or on the net line amount (After line discount). If you select After total discount, any end discount is deducted from the total commission that is calculated after the line discount. The commission on sales that include line discounts requires that the line discount is not posted independently in the Ledger page.

•

Basic - Specify whether the revenue or margin should page the basis for the calculation of the commission.

•

Commission percentage - Specify the percentage base with which to calculate the amount of the commission. Together with the calculation method in the Discount, the percentage basis entered here calculates the size of the commission.

•

From - Enter the starting date of the current commission agreement. Together with the ending date in the To field, this date range is the period of validity of the commission agreement. If these fields are blank, the agreement is valid for an unlimited period.

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•

To - Enter the ending date for the current commission agreement. Together with the starting date in the From field, this date range is the period of validity of the commission agreement. If these fields are blank, the agreement is valid for an unlimited period. Note If you created a commission line for a sales representative, specify a date only in the To field if you know that the rate is not valid after a fixed date.

•

Find next - Select this option to look up more commission rates for the current invoice line. When you calculate commission, agreements are searched for in the following order: At a specific level, such as item, customer, or sales representative at group level, such as a commission item group at a general level, such as all items.

You can set up commission sales group codes in the Sales and marketing > Commissions > Sales groups page and then later assigned them to a sales representative by selecting the GENERAL action pane and clicking on the Sales rep. button.

You can also set up commission item group codes and commission customer group codes in the Sales and marketing > Commissions > item groups and Sales and marketing > Commissions > Customer groups for commission pages and then later assigned them to Items and Customers. When these groups are set up, they can be used as a selection in the Commission calculation page when a commission structure is defined. You can use the Sales and marketing > Commissions > Commission posting page to specify the main account to use when a sales order invoice is generated with a commission transaction.

Scenario for customer group for commission: At Contoso, all customers in the retail market are in one customer group for commission. The sales manager set this up based on the theory that the same type of sales technique and effort would be used for all retail customers. Therefore, they should be compensated by using the same commission structure.

Scenario for both item groups and customer groups for commission: At Contoso, Kevin, the Sales manager wants to encourage sales to a set of customers in a new market. Therefore, to include these customers in a commission calculation with an increased commission rate a customer group is created for all who belong to this market sector. The same scenario applies to customer item groups if encouraging the sale of a group of items.

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Scenario for item group for commission: At Contoso, all receivers are in one item group for commission. Kevin, the Sales manager, used the same reasoning for setting up these groups as he did with customer groups for commission, similar items require similar sales technique and effort, and should be compensated similarly.

Scenario for sales groups for commission: At Contoso, sales representatives frequently work in teams. For example, three sales representatives are assigned to a specific geographical area, and each sales representative can interact with a customer several times before a sale succeeds. Instead of trying to divide each commission according to the circumstances of that sale, the sales manager splits the commission among the team. You can allocate percentages of both less than 100 percent and more than 100 percent. If the amount is more than 100 percent, a warning appears. Finance and Operations correctly calculates the amount if this warning is ignored, and an overallocation is required.

View commission transactions You can only view commission transactions that are financially updated which means the status of sales order is Invoiced. To see the commission transaction on a sales order invoice, select INVOICE int the action pane and under the Journals field group click the Invoice button to open the invoice journal page. Then click Commission transactions button.

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If a customer decides to return an item for credit, the sales transactions created from the sales order are credited. If commission transactions are set up to be created for the sales order, these are also credited when the return order is invoice updated.

Configure customer and item search Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/9configure-customer-item-search Search on keyword is applicable for the three entities - Customer, Product and Prospect. Search on predefined fields is only available for Customer and Prospect (when creating new documents). This also means the Product search is always based on keyword. Search on keyword requires building up an index table, as done through the Search criteria page. When searching on keyword: •

The Full match search uses the SQL CONTAINS method and is highly performant but is limited to whole token/phrases.

•

The Partial match search uses the SQL LIKE method and does not offer optimal performance on large volume data.

When searching on predefined fields, both Full and Partial searches use SQL LIKE and is highly performant.

Search for products and product variants during order entry You can use the Item number field on a sales order line as a search field to search for products and product variants when you manually create a sales order line or a purchase order line. You can enter any part of a product name, number, or dimension and get a lookup that displays all the items that match the search word. This lets you quickly find product variants when you only have the configuration string or one of the product dimensions available.

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Sometimes, having too much of something is not the best situation to be in, and this is especially true if you sell a number of products that are similar, and you are trying to remember item numbers or product search names in order to find the right product to put on a sales order. When you search for products or product variants, it is important to understand how the search feature finds the products that match the text that you enter. You configure the search parameters based on search type of full or partial match when searching for items, customers. The key search rules in delivering search results are: •

Search results will return any matching record, disregarding the field that the search text is entered in.

•

The search text needs to be present in the matching record in its full length.

•

A match will occur even if the search text is found in the middle of a text string in the matching record. It does not have to appear in the beginning of a text string.

•

The search text is treated as a single text string even if it contains white space.

Configure the product search - step 1 Include all the relevant product and product variant identifiers and dimensions in the search criteria. Examples of product and product variant identifiers and dimensions that you can search by are Product name, Item number, Display product number, Configuration, Color, Size, Style, Search name, etc. Go to Sales and marketing > Setup > Search > Search criteria page. The Search criteria page allows you to define criteria for customer, prospect, and product search. Make sure you filter the page by using product search criteria. You can do this by switching to Product in the page's menu.

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To add the display product number to the search criteria, click New in the page's menu. This will add a new record in the Search criteria grid. Open the Field name column lookup and choose DisplayProductNumber. To add the product's configuration to the search criteria, create a new record in the Search criteria grid and choose configId in the Field name column. In the same manner, create a record with Field name, InventColorId for the color dimension, InventSizeId for the size dimension, and InventStyleId for the style dimension.

Configure the product search - step 2 Populate the database table that is used for product search. In the Search criteria page, click the Update search data button.

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In the Update search data dialog box, make sure that Source is set to Product, and then click OK. The system will aggregate in one table all the selected search criteria specified in step 1. If you have a lot of products and product variants, this operation can be quite lengthy, and you may receive a warning. We recommend that you schedule the search table population on the batch server at a time when the server is not too busy. Until the table is populated, product search will not provide the correct results. If you do not get any search results, make sure that this table is populated. The table only must be populated when the search criteria is modified. Newly released products and variants are automatically added to the table. Deleted products and variants are automatically removed from the table.

Configure the product search - step 3 Enable the lookup for product search on sales and purchase order lines. You can enable this functionality by going to Sales and marketing > Setup > Search > Search parameters and setting Enable lookup for search to Yes on the General tab.

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For sales order line entry, the default behavior is to open the Product search page when you start typing in the Item number field, and then press the Tab key.

The Product search page changes the context during order line creation and may be considered unnecessarily intrusive. If you prefer to get the search results in a lookup and not lose context during order line entry, you can use the search lookup instead. If you search for a product or product variant, but you don't select anything in the lookup and press the Tab key, the Product search page will display.

Exercise - Create a sales order Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/10exercise-create-sales-order This exercise shows you how to create a sales order.

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Enter sales order header details 1.

In company USMF, go to Sales and marketing > Sales orders > All sales orders.

Click New.

In the Customer account field, click the drop-down button to open the lookup.

In the list, find and select the customer US-004.

Click OK.

Click Sales order line.

Click Dimensions.

For this example, select the Color, Site and Warehouse dimensions. The dimensions you select here will appear in the sales order grid. If you want your selections to persist, set the Save setup option to Yes.

Click OK.

10. In the Item number field, click the drop-down button to open the lookup. 11. For this example, select item number T0004. 12. In the Color field, click the drop-down button to open the lookup. 13. In the list, find and select Black 14. In the Quantity field, enter 1.

Review the order totals 1.

On the Action Pane, click Sales order.

Click Totals.

The Totals page displays details about the entire order. This includes the subtotal amount, which is a sum of all line net amounts adjusted for eventual line discounts, the total invoice amount, which is a subtotal amount adjusted for eventual order-level discount, charges, and sales tax, the customer credit limit situation, and more. The invoice amount is the amount that will appear on the customer's invoice document. 3.

Click OK.

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Exercise - Configure and use commissions Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/11exercise-configure-use-commissions In company USMF you need to extend the commission calculation rule which was expired on 12/31/2017. You need to have all the necessary commission calculation setup to ensure the commission for customer US-013 for all items are being calculated. Take note of the customer and item numbers that you have chosen for the commission process and use them when asked to create a sales order in this exercise. 1.

Go to Sales and marketing > Commissions > Commission calculation.

Click Edit.

In the To field select 12/31/2020.

Click Save.

Close the page.

Go to Sales and marketing > Sales orders > All sales orders.

Click New.

In the Customer account field, click the drop-down button to open the lookup.

In the list, find and select US-013.

10. Click OK. 11. On the Action Pane, click Options. 12. Click Change view. 13. Click Header view. 14. Expand the Setup section. The value in the Sales group field represents a group with one or more sales representatives assigned to it. The people in the group are the ones who will receive commissions when the order is invoiced, as per predefined rates and distribution. The value is copied from the Customer card, but you can change it if you wish. The Sales group is also copied to the sales order line. You can change it so that it can differ from the one in the header and/or between lines. The value in the Commission group field represents a group that you have created for one or more customers with the purpose of tracking commissions. The value is copied from the Customer card, but you can change it if you wish. 15. On the Action Pane, click Options. 16. Click Change view. 17. Click Line view. 18. In the Item number field, click the drop-down button to open the lookup.

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19. In the list, select D0001. 20. In the Quantity field, enter 2. 21. Take note of the line's Net amount. It represents the sales revenue, which in this example is the basis for commission calculation. 22. Click Save. 23. On the Action Pane, click Invoice. 24. Under Generate field group, click Invoice. 25. Expand the Parameters section. 26. In the Quantity field, select 'All'. 27. Select Yes in the Posting field. 28. Click OK. 29. Click OK. Allow the processing to complete and don't close the page.

Review the registered sales commissions 1.

On the Action Pane, click Invoice.

Under Journals field group, click Invoice.

On the Action Pane, click Invoice.

Click Commission transactions.

The Overview tab displays lines representing the commission amounts payable to sales representatives who are associated with the invoiced sales order.

Close the page.

Click Voucher. You can review the voucher transactions for the commission amounts that have been posted to the predefined commission expense and commission payable accounts.

Close all pages.

Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/12knowledge-check

Configure and manage the order to cash process in Dynamics 365 for Finance and Operations knowledge check 1.

Which one of the following options for Check credit limit field checks the customer's credit limit against the customer balance and deliveries? a.

Balance + packing slip or product receipt

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b. Balance c. 2.

Balance+All

Which one of the following options for Check credit limit field checks the customer's credit limit against the customer balance and deliveries, and open orders? a.

Balance + packing slip or product receipt

b. Balance c. 3.

Balance+All

Which one of the following status indicates that the quotation is converted to a sales order? a.

Created

b. Confirmed c. 4.

Sent

Which one of the following options calculates the delivery date based on a default number of days? a.

ATP (available-to-promise)

b. Sales lead time c. 5.

ATP + Issue margin

Which one of the following options calculates the shipping date to be equal to the ATP date plus additional time that is required to prepare the items for shipment? a.

ATP (available-to-promise)

b. Sales lead time c.

ATP + Issue margin

Summary Link: https://docs.microsoft.com/en-us/learn/modules/configure-manage-order-to-cash/13configure-order-to-cash-summary In this module you learned about the order-to-cash process and how to: •

Perform the order-to-cash process

•

Configure and use commissions

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Configure customer and item search

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Create and confirm sales quotations

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•

Print and post picking lists

•

Generate and post an Invoice

•

Configure order hold codes

•

Process customer returns

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Course MB-330T02-A: Use quality management, Intercompany trading and master planning in Dynamics 365 for Finance and Operations Link: https://www.microsoft.com/en-us/learning/course.aspx?cid=MB-330T02 Organizations use Dynamics 365 for Finance and Operations to automate and streamline your supply chain, by modernizing business logistics, delivering timely customer response, getting ahead with predictive insights, streamlining procurement, and unifying processes from sales to fulfillment. This course discusses how to use quality management, intercompany trading and master planning in Dynamics 365 for Finance and Operations.

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Module 1: Configure and Use Quality Control and Management Processes In this module, we describe how to configure and use quality control in Finance and Operations, how you can use quality control functionality, how to define and maintain nonconformances, and how to handle corrections. But let’s first get familiar with the quality management overall processes. Lessons •

Introduction

•

Perform quality control and management processes

•

Apply inventory blocking

•

Perform quarantine management

•

Practice labs

•

Module summary

In this module you learned to: •

Perform Quality Control and Quality Management Processes

•

Apply inventory blocking

•

Perform quarantine management

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Configure and work with quality control in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-quality-control-in-dynamics365-finance-ops/ One of the important factors which impacts a company’s reputation in today’s market is the quality of their goods and services. By having a standard procedure for checking the quality of the products when they arrive from vendors, move through supply chain and on their way to customers, companies can reduce the number of returns and maintain their reputation in the market. In this module, you will learn how to: •

Configure quality management

•

Perform quality control processes

•

Apply inventory blocking

•

Perform quarantine management

Introduction Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-quality-control-indynamics-365-finance-ops/1-configure-work-with-quality-control-intro One of the important factors which impacts a company's reputation in today's market is the quality of their goods and services. By having a standard procedure for checking the quality of the products when they arrive from vendors, move through supply chain and on their way to customers, companies can reduce the number of returns and maintain their reputation in the market. In this module you will learn how to: •

Configure quality management

•

Perform quality control processes

•

Apply inventory blocking

•

Perform quarantine management

Quality management processes Quality assurance in Dynamics 365 for Finance and Operations involves product testing and the management of nonconforming material.

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Quality management can help you manage turnaround times when you're dealing with nonconforming products, regardless of point of origin of those products. You can link diagnostic results to correction tasks. The system can schedule tasks to correct problems and therefore help prevent recurrences of those problems in the future. Quality management also lets you track issues (including internal problems) by problem type, and lets you identify solutions as either short-term or long-term. Statistics about key performance indicators (KPIs) provide insight into nonconformance problems that have previously occurred and the solutions that were applied to correct them. You can use historical data to help review the effectiveness of quality measures that have previously been taken and to determine appropriate measures in the future.

Controlling the quality management process Here are some of the ways that you can control the quality management process: •

Create quality orders that are based on trigger points such as “at product receipt” for inbound operations or “at product pick-up” for outbound operations.

•

Document test results and determine whether the results meet the established test criteria and acceptable quality levels.

•

Use document management for detailed product specifications and user-specific notes as part of reporting during the inspection process.

•

Maintain nonconforming products and correlating these products with additional nonconformance information to track down the original cause of a problem.

•

Document the cost of managing a nonconformance. This cost can include the items (such as spare parts), miscellaneous charges, and the timesheet hours that are required to correct the nonconformance.

•

Schedule error correction processes by using correction handling that is linked to quality orders.

Configure quality management Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-quality-control-indynamics-365-finance-ops/3-configure-quality-management The quality control component of Finance and Operations provides access to the parameters required to set up and manage quality testing requirements for a company. Quality orders define a set of one or more tests to perform on an item and are a fundamental component to quality management in Finance and Operations. The quality order defines the quality specifications, an Acceptable Quality Level (AQL), the applicable test instrument, the documents that describe the test, and several other factors for each test.

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However, before you create quality orders, several optional and required setup components must be configured. To perform initial setup for quality management, there are two parameters you should set: •

Use Quality Management - Enables quality management functionality and must be selected before any quality management features are available. Keep in mind that this option is legal entity specific and is not shared across the organization with other legal entities.

•

Hourly Rate - Optional field is used to calculate an employee's time spent on activities related to quality work. This value will not automatically will be used because often it will be overridden by a trade agreement or price list from the Project and accounting management module.

These two parameters are found in the Inventory management > Setup > Inventory and warehouse management parameters and Quality Management tab.

Test instrument Test instruments are used to determine what equipment is needed to perform the test. A test instrument assigns a unit of measure that reflects the associated measurement and its decimal precision. This is also an optional setup, found in the Inventory management > Setup > Quality control > Test instruments.

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Test A test is quantitative (with specifications and test results expressed as values for a specified unit of measure) or qualitative (with specifications and test results expressed as user-defined outcomes that reflect pass or fail). Tests are added, changed, or deleted in a quality order. For the set of tests, the quality order defines the overall AQL, the sampling plan and associated test quantity, the need for destructive tests, and the sequence of tests. After reporting the test results for each test in a quality order, you start a validation process to assign a pass or fail status (based on meeting the overall AQL). Finally, you close the quality order. As part of the test creation process, you define the allowed business processes during and after quality order validation. For example, you can block the invoice update of a purchase order that has related inventory in the inspection process. Optionally, a nonconformance is created when a quality order identifies defective material. The nonconformance provides the basis for additional investigation following scheduling of correction tasks, in addition to recording of the correction actions. Go to Inventory management > Setup > Quality control > Tests to create and maintain tests.

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Item sampling Item sampling is the quantity of sample items checked during a test. The quantity specified is either a fixed amount or a percentage. Item samplings are used with test groups and quality associations. For example, let's say you are testing a quantity of sampled items. A company's guidelines requires a random check of at least 50 pieces in every shipment received from a new vendor during the first 90 days of the relationship. To accommodate this requirement, you would set up item sampling with the fixed quantity value of 50. Go to Inventory management > Setup > Quality control > Item sampling to define fixed quantity or percentage for items to be reserved for quality order tests.

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Test groups The Test groups page is where you set up, edit, and view test groups and the individual tests assigned to it. The test group on the quality order determines the assigned tests. When administered, these tests determine whether an item passes or fails the quality control. Go to Inventory management > Setup > Quality control > Test groups to create test groups.

Quality associations Quality orders are automatically generated, based on rules defined in the Quality associations page. This includes generating a quality order for purchase orders, quarantine orders, sales orders, and production orders. The Inventory management > Setup > Quality control > Quality associations page is used to create quality associations to automatically generate and track quality orders.

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Before you set up quality associations, consider creating item quality groups and linking multiple items to them. This lets us logically group similar items for the purpose of testing. Quality associations are used to define: •

The transaction event.

•

The set of tests that must be performed on the items.

•

The acceptable quality level (AQL).

•

The sampling plan for a quality order that is generated by the system.

A quality association must be defined for each variation in a business process that requires the automatic generation of a quality order. A quality order can be generated by the system in the business processes for purchase orders, quarantine orders, sales orders, and production orders. The Quality associations page supports the multisite feature. If a site is specified, the trigger for the automatic quality order creation is limited to that site only. The business process that uses a quality association can be related to various source documents, such as purchase orders, sales orders, or production orders. For example, you can set up a quality association that generates a quality order when a purchase order packing slip is updated. Depending on the setup of the execution plan, the triggering process itself can be blocked while there is an open quality order, or the next processes, such as purchase order invoicing, can be blocked. While there are open quality orders, inventory quantities are automatically blocked from being issued. Depending on the Full blocking setting on the Item samplings page, the quantity is either the quantity on the quality order or the quantity on the source document line. For a given business process, the quality association record identifies the event and the conditions that a quality order is generated for. The conditions can be specific to either a site or a legal entity. A quality order that involves destructive tests can be generated only when on-hand inventory exists for the event.

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Create a quality order manually The Inventory management > Periodic tasks > Quality management > Quality orders page is used to manually create a quality order for the inventory of a specified item and test quantity. It also performs the tests within the specified test group.

The Quality orders page is also used to manually create a quality order for an order such as a purchase order, production order, or physical on-hand inventory. The test quantity and test group are also included. A quality order must be manually generated for an item's inventory quantity. The quality association record provides a default value for the AQL. Scenario: James, a warehouse worker in Seahorse Retailers, unloaded boxes from the vendor's truck in the inbound warehouse and noticed that one of the boxes appeared to be damaged. The company policy dictates that suspected damaged items must be tested for quality. Therefore, James manually creates a quality order to have the products in the box inspected.

Nonconformances A nonconformance describes products and items that don't comply with predefined performance or quality standards. In other words, it describes an item that has a quality problem. A nonconformance also applies to customer service or internal problems, such as customer complaints or production issues. The problem source is called a Non conformance type. You assign a Non conformance type, its detailed source information, and the associated problem type when it's created. Nonconformances are associated with a Problem type. Problem types are defined on the Inventory management > Setup > Quality management > Problem types page, where you specify which problem types can be associated with each Non conformance type.

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Click on the Non conformance types button to associate a Non conformance type for quality assurance.

You can define a classification of problem types to analyze nonconforming material easier. The nonconformance process lets you create a nonconformance order that describes a quantity of nonconforming material, the problem source, the problem type, and explanatory notes. For example, the problem types for nonconformances of the Service request type might reflect a classification of customer complaints, whereas the problem types for nonconformances of the Internal type might represent a classification of defect codes. The following list describes the Nonconformance types and the information that must be recorded for each type: â&#x20AC;˘

Customer - The customer account number, the sales order number, or a lot number of a sales order transaction. For example, the nonconformance might be related to a specific sales order shipment or to customer feedback about product quality.

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•

Service request - The customer account number, the sales order number, or a lot number of a sales order transaction. For example, the nonconformance might be related to a specific sales order shipment or to a customer's complaint about item quality.

•

Vendor - The vendor account number, the purchase order number, or a lot number of a purchase order transaction. For example, the nonconformance might be related to a purchase order receipt or to a vendor's concern about a part that it supplies.

•

Production - The production order number or a lot number of a production order transaction. For example, the nonconformance might be related to a specific batch that was produced.

•

Internal - The quality order number or a lot number of a quality order transaction. For example, the nonconformance might be related to the tests that are performed as part of a quality order or to an employee's concern about product quality.

•

Co-product production - A co-product production order nonconformance that is related to batch production orders.

When you create a nonconformance, you select the Nonconformance type and the Problem type. The initial approval status is New, which represents a request for action.

The next step is to change the approval status to Approved or Refused, to indicate that you will or won't act on the nonconformance. You can also close a nonconformance to indicate that you're finished with it, or you can reopen a nonconformance to indicate that additional consideration is required. You can also print a nonconformance tag and a nonconformance report to guide the disposition of nonconforming material. The nonconformance tag displays similar information, and also includes the quarantine zone and type (such as Restricted usage or Unusable) that you assigned to the nonconformance to help guide disposition of the defective material. For example, the tag and report might indicate a condition of Unusable or Restricted usage as a value for the Quarantine type field.

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You can then use the Report setup page to define whether comments for this document type should be printed on the nonconformance report and nonconformance tag.

You can define more than one record to print different document types on a report, or to print internal and external notes. You might find it helpful to use the Document type page to define a unique document type for nonconformances and a unique document type for corrections. You can enter comments for a nonconformance by attaching a document.

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For example, you want to enter notes about a nonconformance by using the unique document type for nonconformances. In this case, identify the unique document type in the report options The conformance report and nonconformance tag can help with material disposition. You can selectively generate reports and tags, based on selection criteria that are associated with a nonconformance. These criteria include the nonconformance number, item, customer, vendor, and status. The nonconformance report displays the nonconformance number, item, and problem type. Depending on your report setup policy, the report might also display related notes about the nonconformance.

Perform quality control and management processes Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-quality-control-indynamics-365-finance-ops/4-perform-quality-contro-management-processes •

Product testing is typically referred to as quality control and uses quality orders. By using the quality control functionality, you can perform the following tasks:

•

Define the tests that must be performed for material. These tests include the quality specifications, the applicable test instrument, documents that describe the test, a sampling plan, and the acceptable quality levels (AQL).

•

Create a quality order that identifies the tests that must be performed for a specific order, such as a purchase or production order, or for a specific inventory quantity. You can create a quality order manually or generate a quality order automatically, based on quality guidelines.

•

Define the quality guidelines that are related to purchase, quarantine, production, or sales orders in each business process, so that a quality order can be automatically generated that identifies the testing requirements for incoming or outgoing material.

•

Record the test results in a quality order, validate the test results against the AQL, and print a certificate of analysis that displays the test results.

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Create and process a nonconformance order When components have been set up for nonconformances, nonconformance orders can be created and processed. A nonconformance is initially created with an approval status of New, which indicates that it represents a request for action. You can approve or refuse a nonconformance which changes the approval status to Approved or Refused to indicate that you will or will not take action on the nonconformance. You can also close a nonconformance (as indicated by a separate checkbox) to indicate that you are finished with it or reopen a nonconformance to indicate that additional consideration is required. You can define one or more related operations for an approved nonconformance. A related operation describes the work that should be performed and contains a list of the quality operations that you've defined and descriptive text about the reason for the work. After you define an operation, you can define the miscellaneous charges, items, and timesheet labour hours that are required to perform the work. The calculated costs are shown for the related operation, and the total calculated costs are shown for the nonconformance. The calculated costs and the underlying details (about items, labour hours, and miscellaneous charges) represent reference information, and they are used only in the quality management function. You can create a quality order from a nonconformance by first performing an inquiry for quality orders and then creating the new quality order. For example, a quality order might identify the need to test (or retest) the defective material. The newly created quality order displays the link to the originating nonconformance. You can link one nonconformance to another and create a new nonconformance from an existing one. For example, the link can reflect the interconnection between quality problems.

Correction handling To perform correction, the status of nonconformance must be first set to Approved for the Approval field. The Corrections page lets you create a list of nonconformances that must be corrected. Each correction item is associated with the diagnostic type that caused the problem to be discovered.

The Corrections page also contains information about who must perform a corrective action, and when. You can describe the details of the problem and the corrective action that is required by attaching a www.dynamicscompanions.com Dynamics Companions

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document to the correction. After the nonconformance has been addressed or corrected, you "close" the correction item by selecting the Completed option. You can also indicate that the solution was a shortterm solution. It's a good idea to define a unique document type for corrections by using the Document type page. You can then use the Report setup page to define whether comments for this document type are printed on the correction report. A printed correction report displays information about the nonconformance and the related nonconformance notes. The report also includes correction information, such as the diagnostic type, and the related correction notes.

Manage quality reports There are some reports available to support the quality management functionality in Finance and Operations. In this unit, we focus on the Non conformance, Non conformance tag, and the Corrections reports. •

The Non conformance report displays identification information such as the non conformance number, item, and problem type. The report displays the related notes based on report setup policies. Reports are selectively generated based on selection criteria, such as the non conformance number, item, customer, vendor, or status associated with the nonconformance.

•

The Non conformance tag displays identification information, such as the non conformance number and item. The tag displays the related notes based on the report setup policies. The tag also displays the quarantine zone and type (such as restricted uses, or usage versus unusable) that is assigned to the nonconformance to guide the disposition of the defective material.

•

The Corrections report displays identification information about the nonconformance and the related nonconformance notes. This is in addition to the correction information, such as the diagnostic and related correction notes. The report displays the related correction notes based on the report setup policies.

Certificate of analysis A Certificate of analysis shows that materials or products are tested and found to comply with predefined specifications or standards. The Inventory management > Inquiries and reports > Quality management > Certificate of Analysis page is used to manually prepare a Certificate of analysis for a quality order.

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Apply inventory blocking Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-quality-control-indynamics-365-finance-ops/5-apply-inventory-blocking You can use inventory blocking to prevent items from being processed or consumed. You can block inventory items in the following ways: •

Manually

•

By creating a quality order

•

By using a process that generates a quality order

•

By using the Inventory blocking parameter

Blocking items manually You can block a quantity of an item by creating a transaction on the Inventory blocking page. Only items that are available as on-hand inventory can be blocked manually. For manually blocked quantities, you must decide whether planning activities include expected receipts as an expected on-hand quantity. Expected receipts are blocked items that you expect to be available as onhand inventory after inspection is completed. You can maintain the expected date.

By default, the Expected receipts option is selected for items that are blocked through a quality order. You can cancel a manual block on a quantity by deleting the transaction on the Inventory management > Periodic tasks > Inventory blocking page.

Blocking items by creating a quality order You can specify items that must be inspected by creating a quality order on the Quality orders page. When you create a quality order, the quantity that you specify for an item is blocked. The sampling plan

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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that is associated with a quality order controls only the quantity of items that must be inspected, not the quantity that is blocked. The quantity that is entered on the quality order is the quantity that is blocked, regardless of the quantity that the sampling plan specifies should be sent for inspection.

Blocking items by using a process that generates a quality order If a quality process specifies that an item must be inspected, a quantity of the item is blocked automatically. Therefore, when a quality order is generated automatically, the item sampling plan that is associated with the quality order controls the both quantity of items that is blocked and the quantity that must be inspected.

If the Full blocking option on the Item sampling page is selected, the full quantity of, for example, a purchase order line is blocked during inspection, regardless of the item sampling quantity.

Example A quality association specifies that a quality order must be generated when a purchase order packing slip is posted. The item sampling setup of the quality order specifies that 10 percent of the quantity on the purchase order line must be inspected. Because the Full blocking option is selected in the item sampling setup, the full quantity of the purchase order line must be blocked during inspection, regardless of the quantity that is sent for inspection. When the packing slip is posted, A quality order is generated. Ten percent of the purchase order quantity for the item is sent to inspection. The full quantity of the purchase order line is blocked.

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Blocking items by using the Inventory blocking parameter You can specify which inventory statuses are blocking statuses by using the Inventory blocking parameter on the Warehouse management > Setup > Inventory > Inventory statuses page.

You can't use inventory statuses as blocking statuses for production orders, sales orders, transfer orders, outbound transactions, or project integrations. For outbound work, use items that have an Available inventory status. As an example, If items have a status of Blocking, and master planning is run on those items, the items are considered missing, and inventory is automatically replenished.

Perform quarantine management Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-quality-control-indynamics-365-finance-ops/6-perform-quarantine-management Quarantine orders can be used to block inventory. For example, you might want to quarantine items for quality control reasons. Inventory that has been quarantined is transferred to a quarantine warehouse. Please note that If you're using a warehouse that is managed by using the Warehouse management module, quarantine order processing is used only for return sales orders.

Quarantine on-hand inventory items When you quarantine items, you can either create the quarantine orders manually or set up the system to create the quarantine orders automatically during inbound processing. To create quarantine orders automatically, select the Quarantine management option on the Inventory policies tab on the Item model groups page.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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You must also specify a default quarantine warehouse in the Quarantine warehouse field for the receiving warehouses.

When the physically on-hand inventory is recorded in a purchase order or production order, quarantined items are automatically moved to a quarantine warehouse in Finance and Operations. This movement occurs because the status of the quarantine order is changed to Started. When you create quarantine orders manually, the item doesn't have to be set up for quarantine management in the associated item model group. For this process, you must specify the on-hand inventory that should be quarantined and the quarantine warehouse that should be used. You can use the quarantine order statuses to help plan the process. www.dynamicscompanions.com Dynamics Companions

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Quarantine order statuses Quarantine orders can have the following statuses: •

Created

•

Started

•

Reported as finished

•

Ended

Created When a quarantine order has been created manually, but the item isn't yet in the quarantine warehouse, the quarantine order has a status of Created.

Two inventory transactions are generated. One transaction is an issue transaction that can have a status of On order, Reserved physical, or Picked. The other transaction is a receipt transaction that can have a status of Ordered or Registered at the quarantine warehouse. You can reserve, pick, and register updates to the inventory by using the usual processes.

Started When a quarantine order has a status of Started, the inventory is transferred from the regular warehouse to the quarantine warehouse, and two inventory transactions are generated.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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One inventory transaction has a status of Deducted, and the other inventory transaction has a status of Received. At the same time, two inventory transactions are created to handle the return transfer. These transactions aren't dated. One inventory transaction has a status of Reserved physical, and the other inventory transaction has a status of Ordered.

Reported as finished By clicking Report as finished, you can report a started quarantine order as finished. The item is released from quarantine but isn't yet moved back to the regular warehouse.

The movement back to the regular warehouse can be processed via an Item arrival journal that can be initialized during the Report as finished process.

Ended When a quarantine order is ended, the item is moved from the quarantine warehouse back to the regular warehouse.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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The status of the item transaction is set to Sold at the quarantine warehouse and Purchased at the regular warehouse.

Quarantine order scrap As part of the quarantine order process, you can scrap inventory. When you process scrap, the status of the inventory will be set to Sold by an issue transaction from the quarantine warehouse.

Exercise - Create and process a quality order Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-quality-control-indynamics-365-finance-ops/7-exercise-create-process-quality-order As a quality manager in company USMF, you want to enable a quality management process where incoming inventory must be inspected immediately at the time of picking for all television (TV) products. You need to start the process of creation of a quality group, to define the items that are going to be sampled, and a test group to group the tests that are to be performed on items in the quality group.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Enable quality management 1.

Go to Inventory management > Setup > Inventory and warehouse management parameters.

Click the Quality management tab.

Set the Use quality management option to Yes.

Click Report setup. In USMF, the report setup for quality management is already defined. If this is not done, you add new lines here for the different report types and select the type of document to be used for each report.

Close all pages.

Create a test 1.

Go to Inventory management > Setup > Quality control > Tests.

Click New.

In the Test field, type eBookTest.

In the Description field, type Test eBook.

In the Type field, select 'Option'. to assign the test results based on pre-defined values.

Click Save.

Close all pages.

Create test variables to define the way test results are recorded 1.

Go to Inventory management > Setup > Quality control > Test > variables.

Click New.

In the Variable field, type 'Power'.

In the Description field, type 'Power up'.

Click Save.

Click Outcomes.

Click New.

In the Outcome field, type 'ON'.

In the Description field, type 'Device starts normally'.

10. In the Outcome status field, select 'Pass'. 11. Click Save. 12. Click New. 13. In the Outcome field, type 'OFF'. 14. In the Description field, type 'Device does not power up'.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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15. In the Outcome status field, select 'Fail'. 16. Click Save. 17. Close all pages.

Set up item sampling 1.

Go to Inventory management > Setup > Quality control > Item sampling.

Click New.

In the Item sampling field, type '1'.

In the Description field, type 'one sample'.

In the Quantity specification field select Fixed quantity.

In the Value field, enter 1. This value relates to the Quantity specification that's selected in the adjacent field.

Expand or collapse the Process section.

Select or clear the Full blocking option. If you select this option, the whole lot or order line quantity is blocked if a test is failed. If you don't select it, only the items in the quality order are blocked.

Click Save.

10. Close all pages.

Create a quality and item group 1.

Go to Inventory management > Setup > Quality control > Quality groups.

Click New.

In the Quality group field, type 'eBookQG'. Use a descriptive name to help you identify which kind of items the group will contain (your sampling criteria).

In the Description field, type 'Quality group for TVs'.

Click Save.

Click Add items.

Select the Item number row. In this example the filtering will be run based on the item number.

In the Criteria field, type 'T' to filter on the item numbers that start with T.

Click OK.

10. Close all pages.

Create a test group 1.

Go to Inventory management > Setup > Quality control > Test groups.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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In the Test group field, type 'eBookTG'.

Give the Test group a name that will help you remember what kind of tests are being run, and which quality group it should be associated with.

In the Description field, type 'Test group for TVs'.

In the Item sampling field, select 1.

Under the Overview tab, click Add.

In the Sequence number field, enter 1.

In the Test field, select eBookTest.

10. Click the Test tab. 11. In the Variable field, select Power. 12. In the Default outcome field, click the drop-down button to open the lookup. 13. Select ON. 14. Click Save. 15. Close all pages.

Define when quality orders will be created 1.

Go to Inventory management > Setup > Quality control > Quality associations.

Click New.

In the Reference type field, select 'Sales'.

In the Item code field, select 'Group'.

In the Item field, enter or select eBookQG

Expand the Process section.

In the Event type field, select 'Picking process is scheduled'.

Expand the Quality order process section.

In the Event blocking field, enter or select Picking process

10. Expand the Specifications section. 11. In the Test group field, enter or select eBookTG 12. Click Save. 13. Close all pages.

Process quality orders 1.

Go to Sales and marketing > Sales orders > All sales orders.

Click New.

In the Customer account field, select US-013.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Click OK.

In the Item number field, enter or select T0002

On the Action Pane, click Pick and pack.

Click Quality orders. Note that currently there is no quality order.

Close the page.

Click Generate picking list.

10. Click OK. 11. Click OK. 12. Read the error message generated preventing you of continuing the process of picking and packing because you have now a quality order. 13. Click Quality orders. Note the quality order automatically is generated. 14. Review the tests 15. Click Results. 16. Set Result quantity to '1'. 17. Set Test result to 'ON'. 18. Click Validate. 19. Click OK. 20. Close the Quality order page 21. Click Generate picking list. 22. Click OK. 23. Click OK. 24. Note that there no error since you have passed the quality order test. 25. Click Picking list registration. 26. Click Updates. 27. Click Update all. 28. Close the form. 29. Click Post packing slip. 30. Click OK. 31. Click OK. 32. Close all pages.

Exercise - Create and process a nonconformance order Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-quality-control-indynamics-365-finance-ops/8-exercise-create-process-nonconformance-order www.dynamicscompanions.com Dynamics Companions

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Due to recent issues with customers returning faulty computers, you want to set up some processes to deal with faulty items in the system. 1.

Open Inventory management > Setup > Quality management > Problem types.

Click New.

Enter Temperature in both Problem type and Description fields.

Click Save.

Add Diagnostic types.

Open Inventory management > Setup > Quality management > Diagnostic types.

Click New.

Enter Machine temperature in both Diagnostic and Description fields.

Click Save.

10. Open Inventory management > Setup > Quality management > Operations. 11. Click New. 12. Enter Adjustment temp in both Operation and Description fields. 13. Select Purchase order in the type field. 14. Click Save. 15. Open Inventory management > Setup > Quality management > Quality charges. 16. Click New. 17. Enter Repair in both Problem type and Description fields. 18. Click Save. 19. Add Quarantine zone. 20. Open Inventory management > Setup > Quality management > Quarantine zones. 21. Click New. 22. Enter Repair in both Quarantine zone and Description fields. 23. Click Save. You have discovered a faulty computer in the inventory, and you'll need to raise a nonconformance order to get it fixed. The item you found will need to be to be taken out of stock and repaired. A machine has caused this fault and will need to be adjusted to prevent more items to be faulty. 1.

Open Inventory management > Periodic tasks > Quality management > Non Conformances.

Click New.

Select Internal in Non conformance type field.

Enter 1000 in the Item number field.

Enter Enclosure in the Problem type field.

Enter 5.00 in the Defective quantity field.

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Enter 13 in the Warehouse field.

Click OK.

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

10. Click Functions and select Approve non conformance. 11. Click OK. 12. Click the Related operations button. 13. Click New. 14. Select Enclosure in the Operation field. 15. Enter Damaged in the Reason field. 16. Click the Items button. 17. Click New. 18. Select A0001 as the item number. 19. Enter 1.00 in the Quantity field. 20. Click Save and close form. 21. Click Quality Charges button. 22. Click New. 23. Select Rework in the Charges code field. 24. Enter Rework in the Description field. 25. Enter 100.00 in the Charges value field. 26. Click Save and exit form. 27. Click Timesheet button. 28. Click New. 29. Enter 5.0 in the Operation hours field. 30. Click Save and exit form. 31. Close the Related operations form. 32. Click the Corrections button. 33. Click New. 34. Select Machine adjustments in the Diagnostic field. 35. Select 000002 (Charlie Carsson) in the Worker field. 36. Select High in the Correction priority field. 37. Click the Save button. 38. Click the Mark Complete button. 39. Click OK and close the form. 40. Click the Functions button and select Close non conformance. 41. Click Yes.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-quality-control-indynamics-365-finance-ops/9-configure-work-with-quality-control-quiz

Configure and work with quality control in Dynamics 365 for Finance and Operations knowledge check 1.

Which of the following non conformances types, should you select for an issue related to a specific sales order shipment or to a customer's complaint about item quality? a.

Internal

b. Service request c.

Vendor

d. Production e. 2.

Co-product production

Which one of the following non conformances types, should you select for an issue related to a specific batch that was produced? a.

Internal

b. Service request c.

Vendor

d. Production e.

Co-product production

Summary Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-quality-control-indynamics-365-finance-ops/10-configure-work-with-quality-control-summary In this module you learned how to: •

Configure quality management in Finance and Operations

•

Perform quality control and quality management processes

•

Apply inventory blocking

•

Perform quarantine management

You also learned that tests are either quantitative or qualitative, and that item sampling can be based on fixed quantities or a percentage.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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You can create automatic quality orders by using the quality associations which identifies the event and the conditions where a quality order is generated. Problem types can be associated with each nonconformance type and items can be set up to automatically create a quarantine order or users can generate a quarantine order manually.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Module 2: Configure and Use Intercompany Trade Relations The Intercompany functionality in Dynamics 365 for Finance and Operations provides a mechanism for the consolidation of static and dynamic data from multiple companies as separate legal entities in a single database. Intercompany Trade enables globally dispersed manufacturing sites, distribution centers, and sales subsidiaries to act as one unified organization. This topic explains how to configure and use the intercompany trade relations and process intercompany orders in Finance and Operations. Lessons •

Introduction

•

Understand intercompany trading

•

Setup intercompany trade relations

•

Process intercompany chain orders

•

Setup intercompany agreements and direct deliveries

•

Practice labs

•

Module summary

In this module you learned how to: •

Configure products for Intercompany trade relations

•

Configure intercompany trade relationships

•

Configure intercompany agreements

•

Process Intercompany orders

•

Process Intercompany direct deliveries

•

Process Intercompany charges

•

Understand Intercompany Return Order Chain

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Configure and use intercompany trade in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-intercompany-trade/ Large organizations often buy and sell among their subsidiaries. Dynamics 365 for Finance and Operations facilitates the inter-company trade so that legal entities of an organization can trade goods while all the documents automatically will be generated for the participating legal entities which saves the organization time and money. In this module you will learn how to: •

Configure products for intercompany trade relations

•

Configure intercompany trade relationships

•

Configure intercompany agreements

•

Process intercompany orders

•

Process intercompany direct deliveries

•

Process intercompany charges

•

Understand intercompany return order chain

Introduction to configure and use intercompany trade Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-intercompany-trade/1introduction-to-configure-use-intercompany-trade A level of business integration is necessary to provide a basis for planning and running daily processes. Therefore, process integration is built upon data integration and represents internal and company business processes. With process integration, a business process can start multiple business processes in another company. In intercompany trade, process integration is based on rules for starting a process in other companies. Additionally, business data is available in all companies together with the business process. As with any supply chain stream, intercompany functionality supports "upstream" and "downstream" processes. Because the concept of upstream and downstream is used in relation to Intercompany process flow, it is imperative that you learn these terms. Consider the following definitions: •

Upstream - Used as a relative reference within a firm or supply chain to indicate moving in the direction of the raw material supplier.

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Downstream - Used as a relative reference within a firm or supply chain to indicate moving in the direction of the end customer.

Understand Intercompany trading Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-intercompany-trade/2understand-intercompany-trading When you create an intercompany order chain, Finance and Operations traces all related purchase orders and intercompany sales orders. This is helpful if you want to view the status of the corresponding sales or purchase order, for example, if it has already been picked, delivered, or received.

Consider the following terms: •

Purchase order initiated intercompany chain (two-legged)- An Intercompany chain in which the initiating order is a purchase order.

•

Sales order initiated intercompany chain (two-legged) - An Intercompany chain in which the initiating order is a sales order.

•

Sales Order Initiated Intercompany chain Intercompany with an external customer facing sales order - Also called the "Original sales order" (three-legged).

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When an intercompany sales order is created, Finance and Operations automatically creates a corresponding purchase order in the appropriate legal entity. Similarly, creating an intercompany purchase order triggers the automatic creation of a corresponding intercompany sales order.

In the example above, DEMF acts is the selling company. They need to buy goods to fulfil their customers' demand. USMF is the company that DEMF purchase those goods from. This is modelled in the intercompany relationship as USMF selling to DEMF, and DEMF buying from USMF. In the intercompany relationship in Finance and Operations USMF is the selling company. When DEMF creates a purchase order and the vendor is USMF, a purchase order-initiated intercompany sales order is created automatically in USFM. When USMF creates a sales order and the customer is DEMF, a sales order-initiated Intercompany purchase order is created automatically in USMF. DEMF creates purchase order because they have a demand for their customers. Therefore, DEMF is the actual selling company who sells to external customers. However, DEMF needs to procure the goods to sell and deliver externally from USMF. Therefore, DEMF is a selling company for their external customers. Via Intercompany DEMF will procure from USMF, such that USMF in this relationship will be selling to DEMF. In business relations such as intercompany trade, the trading partners must find a common base for their company data. The two legal entities in the Intercompany relationship must set up a common language to communicate with each other and to ensure data is shared consistently between the legal entities.

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To do this, intercompany value mapping parameters must be set up. Intercompany value mapping allows different legal entities to logically share master data to support Intercompany processes. The value mapping is required for data that is not shared. Products are shared; therefore value mapping is not required. However other information such as Modes of delivery are not shared, hence value mapping is required. After value mapping has been set up for the data that is not then it can be synchronized between legal entities. Managing shared data is integral in the processes that involves Intercompany transactions. This shared data is synchronized between Intercompany sales orders and Intercompany purchase orders. In an intercompany chain, certain information must be transferred, for example, the customer information or prices and discounts. You can also determine whether the customer, vendor, or both in the intercompany chain can update prices and discounts.

Intercompany goods in transit Products that have been dispatched from a legal entity's shipping location but have not yet arrived at the delivery location can be traced through intercompany reporting. Intercompany reports are based on the following assumptions: •

Goods in transit are owned by the buying company

•

Only packing slips on the shipping side can issue to in transit

•

Order lines that are return transactions are excluded (This means that sales order lines and purchase order lines with negative quantities do not account as in transit)

•

Only product receipts can deduct in transit

The Inventory management > Inquiries and reports > Inventory value reports> Intercompany goods in transit totals report displays a period beginning balance, period ending balance, and net change within period. The balances and net change will be grouped by vendor, which allows users to manually enter general ledger data entry directly from the report totals. The report also displays inventory value, liability and variance to standard cost. The Inventory management > Inquiries and reports > Inventory value reports > Intercompany goods in transit transactions report display all shipments and receipts from in transit in a given period. It shows calculated inventory value, liability and variance to standard cost. You can reconcile each report total.

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Intercompany billing and payments After intercompany orders are processed, you can use intercompany accounting for subsidiaries or branch offices. With intercompany accounting, you can make a single entry that posts to multiple companies. Finance and Operations provides features to help you set up intercompany financial accounts that may be used with intercompany orders. Intercompany accounting provides ledger transactions for companies that transact with one another. This includes the appropriate due to and due from transactions. For more information regarding intercompany accounting please refer to Intercompany accounting in Dynamics 365 for Finance and Operations .

Set up intercompany trade Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-intercompany-trade/3-setup-intercompany-trade-relations

Action policies Action policies are internal business controls that are created to enforce business rules that are outlined for your business. Before you can create intercompany purchasing policies, you must set up the intercompany purchasing policy parameters. Each policy type has its own policy parameters.

Activate trading relationships To set up purchase order action policies, set up intercompany trading relationships for the vendor in Procurement and sourcing > Vendors > All vendors > General > Intercompany. You can also set up the intercompany sales policy relationship from the customer. Open Sales and marketing > Customers > All customers, click the General tab and then click Intercompany in the Action Pane. You do not have to go through both sides (vendor and customer) to set up the relationship. You can perform the complete configuration from one side and you will be able to access it from the vendor and customer in each company. In the Sales relation section, of the Trading relationship page select the Customer company field and select the company that you want to use for Intercompany transactions in the My account field. Enable the Active option to activate the relationship between the two companies. When you activate the relationship, the complete trading relation (both directions) is activated. This activates the relationship in the designated Customer company. Purchase order policies, purchase value mapping and purchase agreement policies will apply to the vendor; Sales order policies, sales value mapping and sales agreement policies will apply to the customer.

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You can deactivate the relationship by setting the Active field to No. This saves the configuration. If you prefer to delete the relationship completely, setting all parameters to blank, you must click the Remove relationship button.

Set up purchase action policies You can define the purchase order action policies that control the interaction (business rules) between business entities. The parameters in Setup purchase action policies are separated into three categories. The categories are listed below: •

Process parameters - Determine how to update packing slips and invoices. Determine how the document printings are performed for the Original sales order and Intercompany purchase order.

•

Purchase order price parameters - Determine the ability to edit prices and discounts.

•

Synchronization parameters - Determine which data is synchronized.

The Customer information parameter in the Header group for the intercompany purchase order and intercompany sales order controls the customer information synchronization. When the Customer information option is enabled, the header information is synchronized from the intercompany purchase order to the intercompany sales order and vice versa.

Set up sales action policies The sales order policy parameters fall into the following categories: •

Process parameters- Intercompany sales order creation and picking list initiation

•

Price and discount control parameters - Control of pricing between the Intercompany sales order and Intercompany purchase order

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Intercompany sales order invoice posting - Sales order posting and the price used for posting

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Payment journal - Payment journal settings

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Synchronization - Control of data synchronization between the Intercompany sales order and Intercompany purchase order

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If you activate Unit price equal to cost price, you will not be able to use intercompany agreements. Defining the Intercompany sales order numbering parameter works together with the sales order parameter set up in Accounts receivable.

The following list shows the options that are available for the **Intercompany sales order numbering **parameter: •

Number sequence code - The Sales order number is created according to a number sequence. The sequence is set up in Accounts receivable > Setup > Accounts receivable parameters > Number sequences FastTab > Sales order.

•

Original number - If present, the number from the original sales order is used. Otherwise, the number sequence that is defined for the sales order is used.

•

Company + Original number - The company ID and the original sales order are used. Otherwise, the number sequence is used.

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When Number sequence is selected in the Sales order numbering field, this number sequence can be used instead of the standard sales order number sequence that is set up in the Accounts receivable parameters form. If the field is empty, the standard sales order number sequence is used. The Customer information parameter in the field group Header for the intercompany purchase order and intercompany sales order is used to control the customer information synchronization through the Intercompany chain.

Process intercompany charge allocations As with prices and discounts, miscellaneous charges are synchronized between the intercompany sales order and intercompany purchase order depends on whether the customer/vendor is debited/credited respectively.

Scenario: The intercompany vendor adds a handling fee, as a miscellaneous charge to the intercompany sales order. This miscellaneous charge is automatically synchronized to the intercompany purchase order. When you use direct deliveries, you can select an allocation method to apply to the Intercompany purchase order.

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To use the Charges option, follow these steps: 1.

Open Sales and marketing > Customers > All customers and > select a customer.

Click General and then Intercompany on the Action Pane.

Click Purchase order policies.

Select from the following Charges allocation options: •

Net amount - Charges are allocated according to each line amount relative to the total net amount for the purchase order or invoice.

•

Quantity - Charges are allocated according to the number of units for each line relative to the total number of units for the purchase order or invoice.

•

Per line .- Charges are allocated equally, according to the total number of lines.

Gross weight

Volume

Whole amount

Determine whether the charges apply to all items or stocked items by selecting the Stocked lines only parameter.

Charges: Cost price In some intercompany relationships, the intercompany vendor is advised to sell the items to the intercompany customer at a price that is equal to the cost price instead of applying trade agreements or standard purchase prices.

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Scenario: The intercompany vendor sells the items to the distribution company by using the cost price as a unit price. Instead of a margin, the vendor adds a miscellaneous charge as a percent of the unit price on the Original sales order.

Example: The unit price on the original sales order in DEMF is $300.00 U.S. Dollars (USD). The cost price for the item in USMF is $125.00 USD. Therefore, the sales price on the intercompany sales order is set equal to the cost $125.00. This sales price is synchronized as the purchase price to the intercompany purchase order in DEMF . If a miscellaneous charge on the sales order line of the intercompany sales order is set to Intercompany percent in the Category field, and the Charge value of 10 is set up, 10 percent of the unit price of the original sales order is added. In this example, this is 10 percent of $300.00 or $30.00.

Procedure - Setting unit price equal to cost price To use the Cost price equal to unit price functionality, follow these steps: 1.

Open Sales and marketing > Customers > All customers and select an intercompany customer.

Click General and then Intercompany on the Action Pane.

Click Sales order policies.

Select the Unit price equal to cost price parameter to use the cost price instead of trade agreements or the defined sales price on the item.

If the Unit price equal to cost price parameter is selected, you can select the Initiate original customer invoice posting parameter. This means that if the posting of the invoice on the intercompany sales order is stopped because of an error, the invoice on the original sales order is posted anyway.

Procedure - Adding an intercompany charge If the unit price on the purchase order is used as equal to the cost price, the vendor does not receive any profit margin. To compensate for the loss of profit margin, the vendor can add a charge. The special charge category called Intercompany percent can be set up on the lines of the original sales order. The value entered here is the percentage of the unit price on the original sales order. To add an intercompany charge, follow these steps: 1.

Open Sales and marketing > Sales orders > All sales > orders.

Select a sales order that is used in an intercompany chain.

Click Sell and then Charges on the Action Pane.

Enter a Charges code and then select Intercompany percent in the Category field. www.dynamicscompanions.com Dynamics Companions

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Enter a number to base the Intercompany percent in the Value field.

Close the page.

Sales and purchase agreements A sales agreement is a contract that commits the customer to buying a product in a certain quantity or amount over time in exchange for special prices and discount. The prices and discounts of the sales agreement overrule any prices and discounts that are stated in any trade agreements that might exist. In the Sales agreements page, you can create, apply, and follow up on sales agreements that exist between your organization and its customer. For example, after you create a sales agreement, you can order directly from it. A sales agreement is valid for a period that is defined by the person who created the sales agreement. The Requested ship date of a sale that is specified in the Sales order page should be within the validity period. By default, a sales agreement is on hold. You can order from a sales agreement only when it is set to Effective. For more information about agreements please refer to Configure and use agreements in Dynamics 365 for Finance and Operations . Intercompany has specific parameters for sales and purchase order agreements.

Set up purchase agreement action policies On the Purchase agreements policies tab in the Intercompany page, you can set up an action policy that controls whether the buying part in an intercompany trading relationship can modify certain terms in a purchase agreement. For example, price, discounts and validity period.

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Set up sales agreement action policies On the Sales agreements policies tab in the Intercompany page, you can set up an action policy that controls whether the selling part in an intercompany trading relationship can modify certain terms in a sales agreement. For example, price, discounts, and validity period.

Value mapping In business relations such as intercompany trade, the trading partners must find a common base for their company data. The two companies in the intercompany scenario, with their vendor or customer relationship, can communicate with one another because they have the same value mapping parameters. Value mapping is necessary to define a common understanding in the company's languages between two or more trading partners. In some cases, you might use the code from company A or always use the code from company B. When you cannot use the code from one of the companies in an intercompany chain, you can define an external code to be used. This requires the following steps:

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Define the external code.

Select the external code in the value mapping.

For example, a potential problem might be the handling of different delivery methods or delivery codes: •

Company A may have a Delivery code that uses a code "D" for a German courier.

•

Company B is handling the Delivery code for the same German courier with "DE."

Therefore, one global mapping value must be defined for the trade between these two companies, to function correctly.

External codes The External codes page can be accessed from many pages. The fields differ depending how the page is opened.

For example, if you open this page from the Procurement and sourcing > Setup > Distribution > Modes of delivery page, you can define external codes for the company's own mode of delivery.

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If you open the page from the Customers page, you can define external codes for the company's customer account numbers.

Set up purchase and sales value mapping The options available for values of fields in both Set up purchase value mapping and Set up sales value mapping pages are: •

Not specified - Specify code

Note that all value mappings for intercompany must be different from "Not specified". With the "Not specified" selection, the data synchronization between transactions will fail. best practice is never to have any "Not specified" for an active relationship. •

Our - Customer/vendor number of the company account that you are in is used

•

External code - The value mapping external code

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The following list provides the sections in the Set up purchase and sales value mapping pages: •

Other base data - Use these settings to determine the Mode of delivery code, Delivery terms codes, and Charges codes. This external code type defines how delivery and charge codes are described in the document and whether they are synchronized.

•

Intercompany - Select the external code type for converting Return reason and Disposition codes. This external code type defines how intercompany return reason and disposition codes are described in the document and whether they are synchronized.

•

Agreements - Select the external code type for converting intercompany classification. This external code type defines how intercompany classifications are described in the document and whether they are synchronized.

Process intercompany chain orders Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-intercompany-trade/4process-intercompany-chain-orders

Purchase order initiated intercompany chain orders In a purchase order initiated intercompany chain there are two orders: •

A purchase order in the sales company.

•

A sales order in the vendor company.

When you refer to a sales order or purchase order in the related company, use the prefix "intercompany". When you refer to a sales order or purchase order in the company that you are currently in, no prefix is used.

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The basic process in the intercompany chain is the purchase order driven intercompany chain. In this process, the purchase order in company DEMF creates an intercompany sales order in company USMF and then creates a basic internal intercompany order chain. Before an intercompany purchase order is approved or confirmed, you can view how much of the product is available in other companies. Use the Intercompany on-hand page to identify and quantify the inventory on-hand for the intercompany purchase order. After the purchase order is created, the intercompany sales order is automatically created in the vendor company if the intercompany trading relationship is active.

To view the original purchase order, click the Manage tab, and then click Intercompany sales order on the Action Pane. To view all purchase orders associated with this sales order click the General tab, and then click Related orders on the Action Pane. This can also be done from the Purchase order page. Confirming the sales order is optional, and has no implication on the intercompany order chain.

Generate packing slips and product receipts When the item in the intercompany order chain is ready to ship to the customer, you will post a packing slip. When you have posted the packing slip, the system recognizes that the sales order demand is satisfied and reduces the physical on hand inventory. The next step is to generate a product receipt to verify the confirmation that an intercompany item is received in the purchasing company. After you post the invoice in the sales company, open the purchasing company and post the product receipt to complete the receiving. If the quantities on the product receipt update equal the ordered quantities, the value in the purchase order Status field changes to Received. The Packing slip ID that is added to the product receipt comes from the sales packing slip. You can also generate the product receipt by navigating from the purchase order to the sales order packing slip and creating the product receipt directly from the sales order packing slip.

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Scenario: A retail outlet company has purchased items from their production company. The production company has shipped the goods to the retail company and posts the packing slip. When the retail company receives the shipment, they post a product receipt for the items received.

Generate invoices After the item is shipped and received, post the invoice to complete the intercompany process. The Invoice ID, added to vendor invoice, comes from the sales packing slip. You can also generate the vendor invoice by navigating from the purchase order to the sales order invoice and creating the vendor invoice directly from the sales order. The totals on the vendor invoice is compared to the totals on the referenced customer invoice. If the totals do not match, then you cannot post the vendor invoice.

Sales order initiated Intercompany chain orders In addition to the ability to create an intercompany chain between intercompany purchase orders and intercompany sales orders, you can also start an intercompany chain from the original sales order that you create for an external customer. The main advantage of this process is a complete intercompany chain with all sales orders and purchase orders that are linked to one another. This can be used, for example, if there is a sales company that has insufficient on-hand inventory to satisfy the demand of a specific sales order. An intercompany chain is a supply chain that spans between legal entities. This means that based on an original sales order from an external customer, an intercompany purchase order is created that triggers the creation of an intercompany sales order at the vendor company such as the production plant.

Scenario: Southridge Video DE-016, has ordered items from DEMF. Unfortunately, there is no on-hand inventory available. Therefore, these items must be ordered from USMF. An original sales order for an external customer is created. The sales representative creates a purchase order directly from the Sales order page. Because an intercompany vendor is set up as a standard vendor for the ordered item, an intercompany sales order is created in the USMF company account.

Process the intercompany purchase order In this process, the sales order in company USMF creates an intercompany purchase order in company DEMF and then creates a basic internal intercompany order chain.

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Intercompany reservations When you create an intercompany purchase order line directly from an original sales order line, the two lines are marked against one another. This marking controls the reservation, cost, and intercompany chain. You can view the marking on the sales order line by clicking Inventory > Marking. Occasionally, you might want to only delete the purchase order and the intercompany sales order, but not the original sales order. This might happen if the customer still wants the items and you discovered that there is only enough on hand inventory to fulfill the requirement. In that situation you no longer need to purchase the items.

Scenario: A customer calls and orders three pieces of item 1100. There is no available inventory in the company to fulfill the order. You would create an intercompany order with a non-direct delivery sales order so the products pass through our warehouse. A purchase order and an intercompany sales order would be created by using the vendor company. But after you create the intercompany order you find a pallet of item 1100 in the warehouse. These are returned items from an incorrect order. Now you must stop the intercompany order. In this scenario you would remove the link between the original sales order line and then pick and pack the shipment for the original sales order line. To remove the marking, click Inventory > Remove link on the original sales order line. If you remove the marking, you remove the intercompany order chain, and you cannot restore the chain. NOTE: Manual marking is not allowed on intercompany transactions and is therefore disabled.

Serial and batch numbered items Companies that use serial numbers or batch numbers to trace their items must also keep track of the serial numbers and batch numbers of picked items. The intercompany functionality automates the push/pull of serial numbers and batch numbers from one company to another. When you register the batch numbers and serial numbers for the items on an intercompany sales order, you can set up the program to push these numbers automatically to the intercompany purchase order and Original sales order. You set up the relevant parameters on the Intercompany page for the sales order: â&#x20AC;˘

If you select the Batch number field on the Sales order policies page, the batch number is synchronized to the inventory transactions on the intercompany purchase order lines when you post the packing slip of the Intercompany sales order.

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If you select the Serial number field, the serial numbers are synchronized to the inventory transactions on the intercompany purchase order lines when you post the packing slip of the Intercompany sales order.

Similarly, you can pull batch and serial numbers from the intercompany purchase order. When you register the batch numbers and serial numbers for the items on an intercompany purchase order, you can set up the program to pull these numbers automatically from the intercompany sales order. If you work with direct delivery, the packing slip is always generated automatically on the intercompany purchase order and the original sales order when you generate the packing slip on the intercompany sales order. If you have specified in the parameters that batch number, serial number, and company information must be synchronized when you post the journal, these values are automatically updated on the intercompany purchase order. If you select not to have these values synchronized, you must synchronize them manually. No packing slip is printed when you use the Intercompany packing slip journal to update the intercompany purchase order. The order status of the purchase order is changed to Received. Use the Synchronize batch/serial numbers function if the Batch number and Serial number parameters in the Synchronization field group of the action policies are cleared.

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Intercompany purchase orders cannot be invoice updated until at least one piece of the intercompany sales order is updated. The intercompany purchase order takes its invoice reference number from the intercompany sales order. Although, you can post product receipt in the selling company before the packing slip in the buying company is posted, we recommend that you do the product receipt only after sales packing slips have been created.

Auto-create intercompany orders There are several methods to create an intercompany sales order. To create intercompany orders automatically, select the Autocreate Intercompany orders parameter on the Intercompany settings FastTab of a sales order header. The two preconditions that are needed for intercompany orders to be created automatically are: •

The item must have a vendor associated with it - The vendor is set up on the Purchase FastTab in the Released products details form. This vendor is then selected automatically in the created purchase order.

•

The primary vendor for the item must be set up for intercompany trade.

When you select the Autocreate intercompany orders parameter on a customer, it will transfer the parameter setting to any sales order that was created for this customer. In this manner, intercompany order chains are automatically created for the specified customer every time that you create a sales order for an item that is set up for Intercompany trade.

Intercompany chain with automatic picking list creation You can set up Finance and Operations to automatically generate picking lists at the intercompany vendor when you create a new original sales order that starts an intercompany order chain.

Flow of intercompany information After you create an intercompany chain, Finance and Operations lets you trace all the related purchase orders and intercompany sales orders. This is useful if you want to see the status of the corresponding sales or purchase order, for example, if it has already been picked or delivered/received. There are two methods to view the related orders:

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•

On the sales order, click the Manage tab and select either Purchase order or intercompany sales order.

•

View related orders to the intercompany purchase order and the intercompany sales order on the original sales order by clicking the General tab and then clicking Related orders.

Intercompany return order chain Scenario: DEMF, the buying company returns the items to USMF, the sales company's warehouse. At the USMF warehouse, the Warehouse worker who is managing returns makes the decision for additional processing with the returned items. This might be that the returned items are scrapped, repaired, replaced, stored in the warehouse, or perhaps returned to the production company which is an external vendor for USMF. To perform an intercompany return, in the selling company USMF, the Sales clerk opens Sales and marketing > Sales returns > All return orders and creates a return order based on the original intercompany order. A purchase order of the type Returned order is created automatically in DEMF. When you handle a return order, you can specify a return reason code to identify why the product is being returned. You must also specify a disposition code and a disposition action to determine what should be done with the returned product itself. A disposition code can be applied when you create the return order, register item arrival or packing-slip update an item arrival, and end a quarantine order. You can define any disposition codes that you need in order to support the business processes.

Direct delivery return orders When an external customer returns items directly to the production plant instead of sending the items to the sales company, it is called a direct return order. In Finance and Operations, the synchronization and update between the orders in the intercompany chain is performed automatically and can be controlled from a single location. For example, if you update the packing slip of the intercompany sales order, all the other packing slip updates in the intercompany chain are performed automatically. When you create return order lines, use the Find sales order function to refund the customer the exact amount that they have paid for the items. You can also use the correct return cost price. If you enter the line manually instead of using the Find sales order function, you risk that prices and discounts might differ from what was originally charged to the customer.

Disposition codes To support intercompany returns, Finance and Operations enables you to map disposition codes to the corresponding internal disposition codes. When an intercompany chain is set up, the disposition codes in

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the two companies that are mapped to one another must refer to the same disposition action. If they differ, the synchronization process will be unsuccessful.

Direct delivery and disposition codes The following general rules apply to original return orders in scenarios that involve intercompany direct deliveries: •

If the underlying disposition action on the original sales order line is Credit and Scrap, Credit, or Return to customer, the Credit disposition action is applied. However, the Return to Customer action code sets the net amount to 0 (zero) on the existing line and on the newly synchronized line from the intercompany sales order. In addition, scrap lines are never synchronized. When a line is added to an intercompany sales order, it is never synchronized for a sales order that has a positive quantity and a disposition action of scrap (for example, Credit and scrap or Replace and scrap).

•

A scrap line is a temporary, hidden return order line that is created in response to a return order line that receives a disposition action implying scrap. The scrap line will be created with the same quantity as the return order line, but with a positive sign. The two lines will be reserved against one another, which prevents the returned items from being reserved for or consumed by other orders. The scrap line will be removed again when the return order is completely processed (invoiced).

•

An underlying disposition action of Credit and replace or Scrap and replace is not overruled. It is treated as a disposition action of Credit and replace or Scrap and replace. This rule applies even if no scrap line is created in the selling company and no replacement order is created in the production company (the company that received the returned item). A replacement order is created in the selling company only when a packing slip update is performed.

Synchronizing disposition codes In a return order initiated direct delivery chain, all disposition actions are supported on the intercompany return order line. However, if a product is being returned to the customer, you should confirm that the delivery address in the return order matches the customer delivery address that is specified in the original order. When a disposition code is assigned to the intercompany return order line during item arrival or inspection, the disposition code will be synchronized from the intercompany sales order line to the original return order line. Disposition codes do not exist for purchase orders. Therefore, synchronization of disposition codes from the intercompany sales order to the original return order must be performed from sales order to sales order.

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Replacing returned items If a returned item is being replaced, and a replacement order has already been created, a disposition code cannot be selected, and no additional replacement order is created in the selling company. You can select if the RMA numbers will be synchronized automatically between the intercompany sales orders and intercompany purchase orders.

Replacement orders If your customer returns an item that is defective or incorrect, you can create a replacement order to use to send the new items to the customer. Typically, replacement orders are created after a product is returned and inspected. However, when an item must be replaced before it is returned, or when the original item will not be returned, you can create an up-front replacement order immediately after you create a return order. An up-front replacement order can only be created for return orders with the Created status. You can use a replacement order to support immediate shipment of a replacement item to a customer. However, the replacement order has the same functionality associated with a sales order, and can be used in the intercompany chain.

Set up Intercompany agreements and direct deliveries Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-intercompany-trade/5-setup-intercompany-agreements-direct-deliveries

Intercompany agreements A sales agreement is a contract that commits the customer to buying a product in a certain quantity or amount over time in exchange for special prices and discounts. The prices and discounts of the sales agreement overrule any prices and discounts that are stated in any trade agreements that might exist. Purchase agreements are frequently used when you buy large quantities from a vendor, and when you have obtained special discounts. A purchase agreement can have several commitments in the agreement contract. Each commitment is represented by a line in the Purchase agreements page. When you assign a commitment type to a commitment, you define how purchase agreements are completed. Sales or purchase agreements can be created for an intercompany trading relationship for the order chain of sales and purchase orders. The selling entity will document the agreement event by using an intercompany sales agreement and the buying entity will document the agreement event as a purchase agreement.

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Intercompany sales agreements In the Sales agreements page, you can create, apply, and follow up on sales agreements that exist between your organization and its customer. For example, after you create a sales agreement, you can order directly from it. A sales agreement is valid for a period that is defined by the person who created the sales agreement. A sales agreement that was created for an intercompany trading relationship must have the Requested receipt date specified in the Sales order page fall within the validity period. On the corresponding intercompany purchase agreement, the Delivery date must fall within the validity period. By default, a sales agreement is on hold. You can order from a sales agreement only when it is set to Effective.

Direct deliveries Direct deliveries enable users to create a purchase order directly from a sales order. The order is then shipped directly to the customer from the vendor, without the selling company handling the physical goods. In intercompany, the direct delivery occurs between the company that supplies the item and the company to whom the items are shipped. Intercompany direct delivery extends the regular functionality of direct delivery by controlling the logistical process from the delivering company, that is, the company from which you purchase the items. The following are some features for intercompany direct delivery: •

Delivery address is synchronized to the purchase order and the intercompany sales order. If, at a later stage, you want to update the address, you can only do this on the Original sales order, not on the purchase order or on the Intercompany sales order.

•

Over delivery and under delivery percentages are synchronized from the original sales order to the purchase order and intercompany sales order. The over and under delivery percentage can only be updated on the Original sales order.

•

You cannot set a confirmed receipt or ship date on the original sales order, because only the intercompany vendor can specify the confirmed receipt or ship date. When the company has specified the confirmed ship or receipt date, they are also updated in the Original sales order and Intercompany purchase order.

An intercompany direct delivery order is automatically created if the Direct delivery parameter is selected on the sales order. The default status of this parameter derives from the selection status of the Direct delivery parameter on the customer that is specified for the sales order. To simplify the processing of direct deliveries, you can automate the posting and printing of the packing slip and invoice in the intercompany purchase order or the intercompany sales order, or both.

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Direct delivery parameters The direct deliveries parameters are: •

Print packing slip automatically - Select this parameter to automatically print the packing slip on the original sales order when the packing slip on the intercompany sales order is posted.

•

Post invoice automatically - Select this parameter to post the invoice automatically for the original sales order when you invoice post the intercompany sales order.

•

Print invoice automatically - Select this parameter to print the invoice automatically for the original sales order when the invoice on the intercompany sales order is posted.

Consider the following scenarios:

Scenario 1: The delivering company USMF wants to pack the packing slip from the original sales order in company DEMF with items. This packing slip contains all the information (for example: original sales order related order) that the end customer needs when receiving the items. For this scenario you should select Print packing slip automatically.

Scenario 2: The sales company wants to invoice the order to the external customer immediately after the manufacturing company has posted the invoice. For this scenario you should select Post invoice automatically.

Scenario 3: The sales company wants to invoice the order to the external customer immediately after the manufacturing company has posted the invoice. If you want to send the invoice to the external customer, it must be printed. www.dynamicscompanions.com Dynamics Companions

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For this scenario you should select Print invoice automatically. The following list explains the Intercompany purchase order (direct delivery) field group: •

Print product receipt automatically - Select this parameter to print the product receipt automatically for the intercompany purchase order when the packing slip on the intercompany sales order is posted.

•

Post invoice automatically - Select this parameter to post the invoice automatically for the intercompany purchase order when the invoice on the intercompany sales order is posted.

•

Print invoice automatically - Select this parameter to print the invoice automatically for the intercompany purchase order when the invoice on the intercompany sales order is posted.

Exercise - Configure intercompany relations Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-intercompany-trade/6exercise-configure-intercompany-relations

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Before you begin: To get the most benefit from this and other exercises in this module, we recommend that you have the standard sample data available in Finance and Operations that is installed by using Lifecycle Services (LCS).

Set up action policies You work for the company USMF, and now USRT needs the ability to buy products through an intercompany relationship from USMF. To facilitate this buy/sell relationship, you must create an intercompany trading relationship between customer US-002 in USMF and vendor 9009 in USRT. This intercompany trading relationship will include action policies. Use the following information to set up the appropriate action policies:

Purchase order policies: •

Original sales order (direct delivery) o

•

Post invoice automatically

Print invoice automatically

Allow price edit

Intercompany purchase order prices o

Allow discount edit

Sync customer information on the header

Intercompany purchase order intercompany sales order

Sales order policies: •

Intercompany sales order creation o o

•

Use Company + original number for the sales order numbering. Allow summary update of documents for original customer.

Print picking list automatically.

Use the CustPay payment journal

Payment o

Post journal automatically

Price and discount search

Intercompany sales order prices o

Allow price edit

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Allow discount edit

Sync customer information on the header

Intercompany sales order intercompany purchase order

Create a trading relationship with USMF vendor 9009. NOTE: if using demo data there is already an intercompany trade relation between USMF and DEMF. 1.

In company USRT, go to Accounts payable module or the Procurement and sourcing module.

Then, go to Vendors, and then to All vendors.

Click NEW to create a new vendor.

In Vendor account field, under IDENTIFICATION, enter 9009.

In Name field, under IDENTIFICATION, select Contoso Entertainment System USA and click Select button.

In Group field, in IDENTIFICATION section, select Vendor group 90, Intercompany vendors.

On the General tab of the Action Pane, in the SET UP section, click Intercompany.

Select Trading relationship tab.

Under ACTIVATION, select Yes.

10. Under PURCHASE RELATION section, My Company field will auto-populate with USRT. The Vendor account field will auto-populate with 9009. 11. In SALES RELATION section, Customer company field, select USMF. In My account field, select US-002.

Configure the purchase order action policies. 1.

Select Purchase order policies in the left navigation area.

Select the Post invoice automatically checkbox in the ORIGINAL SALES ORDER (DIRECT DELIVERY) section.

Select the Print invoice automatically checkbox in the ORIGINAL SALES ORDER (DIRECT DELIVERY) section.

Select the Allow price edit checkbox in the INTERCOMPANY PURCHASE ORDER PRICES section.

Select the Allow discount edit checkbox in the INTERCOMPANY PURCHASE ORDER PRICES section.

Select the Customer information on the header checkbox in the ORIGINAL SALES ORDER <-> INTERCOMPANY PURCHASE ORDER section.

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Configure the sales order action policies. 1.

Select Sales order policies in the left navigation area.

Select Company + original number in the Sales order numbering drop-down list in the INTERCOMPANY SALES ORDER CREATION section.

Select the Allow summary update of documents for original customer checkbox in the INTERCOMPANY SALES ORDER CREATION section.

Select the Print picking list automatically checkbox in the INTERCOMPANY SALES ORDER CREATION section.

Select CustPay in the Payment journal drop-down list in the PAYMENT section.

Select the Post journal automatically checkbox in the PAYMENT section.

Select the Price and discount search checkbox in the INTERCOMPANY SALES ORDER PRICES section.

Select the Allow price edit checkbox in the INTERCOMPANY SALES ORDER PRICES section.

Select the Allow discount edit checkbox in the INTERCOMPANY SALES ORDER PRICES section.

10. Select the Customer information on the header checkbox in the INTERCOMPANY SALES ORDER -> INTERCOMPANY PURCHASE ORDER section. 11. Click Save button at top of screen.

Manage order agreement action policies To facilitate this buy/sell relationship, we have created an intercompany trading relationship between customer US-002 in USMF and vendor 9009 in USRT. This intercompany trading relationship will include purchase and sales agreement policies.

Allow all options for the purchase and sales agreement policies. 1.

Open the Intercompany page for vendor Contoso Entertainment Europe.

In USMF, go to either the Accounts receivable module or the Sales and marketing module.

Then, go to Customers, and then to All customers.

Click Account US-002.

On the GENERAL tab of the Action Pane, in the SET UP section, click Intercompany.

Configure the purchase agreement policies. 1.

Select Purchase agreement policies in the left navigation area.

Select the Allow setting on hold/effective checkbox in the INTERCOMPANY PURCHASE AGREEMENT section.

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Select the Allow edit of validity period checkbox in the INTERCOMPANY PURCHASE AGREEMENT section.

Select the Allow price edit checkbox in the INTERCOMPANY PURCHASE AGREEMENT PRICES section.

Select the Allow discount edit checkbox in the INTERCOMPANY PURCHASE AGREEMENT PRICES section.

Configure the sales agreement policies. 1.

Select Sales agreement policies in the left navigation area.

Select the Allow setting on hold/effective checkbox in the INTERCOMPANY SALES AGREEMENT section.

Select the Allow edit of validity period checkbox in the INTERCOMPANY SALES AGREEMENT section.

Select the Allow price edit checkbox in the INTERCOMPANY SALES AGREEMENT PRICES section.

Select the Allow discount edit checkbox in the INTERCOMPANY SALES AGREEMENT PRICES section.

Click Save.

Configure value mapping Now you must define the value mapping for this relationship. Configure the purchase and sales value mapping for the intercompany trading relationship between USRT and USMF, vendor 9009.

Create an external code. 1.

In USRT, go to Procurement and sourcing > Setup > Distribution > Modes of delivery Modes of delivery.

Click External codes at top of form.

Click NEW to create a new External code.

Enter USMF01 for Code, 'Contoso Entertainment System,' for External code definition, check Standard code checkbox, and enter 'USMF' for Description.

Under VALUE section enter USMF1 in Value field.

In USRT, open the Intercompany page for vendor Contoso Entertainment System USA. 1.

Go to either the Accounts payable module or the Procurement and sourcing module.

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Select Contoso Entertainment System USA (vendor 9009).

On the General tab of the Action Pane, in the Set Up section, click Intercompany.

Configure the Purchase value mapping.

Select Purchase value mapping in the left navigation area.

Select External code in the drop-down list for MODE OF DELIVERY CODE.

Select USMF01 in the adjacent drop-down list.

Select Our in the drop-down lists for: •

Delivery terms codes

•

Charges code

•

Return reason code

•

Disposition code

•

Classification

Configure the Sales value mapping 1.

Select Sales value mapping in the left navigation area.

Select External code in the drop-down list for MODE OF DELIVERY CODE.

Select USMF01 in the adjacent drop-down list.

Select Our in the drop-down lists for: •

Delivery terms codes

•

Charges code

•

Return reason code

•

Disposition code

•

Classification

Save the Intercompany trading agreement.

Click Save.

Exercise - Process a purchase order-initiated intercompany chain Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-intercompany-trade/7exercise-process-purchase-order-initiated-intercompany-chain

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Create a purchase order-initiated intercompany chain (two-legged chain) You are the purchasing assistant in USRT, and you must purchase 10 units of the new item D0001 from the production plant USMF. You start the intercompany chain with a purchase order for a quantity of 10 units of D0001 from USMF. In this exercise, you will perform updates in both USRT and the vendor company USMF until the intercompany purchase order is invoice-updated.

Create the intercompany purchase order in USRT. 1.

Start in USRT and go to Accounts Payable > Purchase orders > All purchase orders. You can also access the All purchase orders page by navigating to Procurement and sourcing > Purchase orders > All purchase orders.

Click NEW in the All purchase orders page to create a new purchase order.

In the Create purchase order page, select Vendor account 9009. In the General tab, in Storage Dimensions, verify Site = '1' and Warehouse = '11.' Under INTERCOMPANY, verify Intercompany is set to 'Yes.'

Click OK .

In Purchase order lines, add item number D0001.

Verify the following: Site 1, Warehouse 11. In Quantity field enter '10.' Unit price should default to 240.08.

Click Save.

Click PURCHASE on the Action Pane and, under ACTIONS, click Confirm, to confirm the purchase order.

Close the purchase order.

Verify the intercompany sales order in USMF. 1.

In USMF, go to Sales and marketing > Sales orders > Intercompany orders.

Verify that the new intercompany sales order was created. The prefix of sales order number is usrt.

Double-click the intercompany sales order.

Verify the site and warehouse that you are trading from.

Generate picking lists, packing slips and product receipts You are the purchasing assistant in USRT, and you purchased 10 units of the new item D0001 from the production plant (USMF).

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You have started the intercompany chain with a purchase order for a quantity of 10 units of D0001 from USMF.

Generate the packing slip and product receipt associated with this purchase order. 1.

In USMF, go to Sales and marketing > Sales orders > Intercompany orders.

Select the intercompany sales order to generate the packing slip.

In the PICK AND PACK tab of the Action Pane, under the GENERATE group, click Generate picking list.

In the Posting picking list page, under PARAMETER, verify All is selected in the Quantity field.

Click OK.

Click OK when prompted to post the document without printing it.

On the Sales order page, in the PICK AND PACK tab of the Action Pane, under the GENERATE group, click Post packing slip.

In the Packing slip posting page under PARAMETER, verify Picked is selected in the Quantity field.

Click OK.

10. Click OK if prompted to post the document without printing it. 11. In the INTERCOMPANY ORDERS page, verify sales order status is updated to Delivered.

Generate a product receipt 1.

In USRT go to Procurement and sourcing > Purchase orders > All purchase orders:

Select the intercompany purchase order to generate the product receipt.

In the RECEIVE tab of the Action Pane, under the GENERATE group, click Product receipt.

In the Posting product receipt page, under PARAMETERS, verify Ordered quantity is selected in the Quantity field.

Click OK, at bottom of page.

In the Purchase order page, verify purchase order status is updated to Received.

Generate invoices Now you need to generate the sales order invoice in USMF and then post the purchase order invoice in USRT, associated with this intercompany sales order.

Generate the sales order invoice in USMF. 1.

Go to Sales and marketing > Sales orders > Intercompany orders

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Select the intercompany sales order to generate the invoice.

In the INTERCOMPANY ORDERS form, click the INVOICE tab. Under the GENERATE group, click Invoice.

In the Posting invoice page, under PARAMETER, verify Packing slip is selected in the Quantity field.

Verify the information in the Lines FastTab, and then click the OK button.

Click OK when prompted to post document without printing it.

In the INTERCOMPANY ORDERS form, verify sales order status has been updated to Invoiced.

Post the purchase order invoice in USRT. 1.

Navigate to Procurement and sourcing > Purchase orders > All purchase orders.

Select the intercompany purchase order to generate the invoice.

In the INVOICE tab of the Action Pane, under the GENERATE group, click Invoice.

In the VENDOR INVOICE page Lines section, under INVOICE DATES, enter an invoice date in the Invoice date field.

From the Action Pane, click the Match product receipts button to match the product receipts to the invoice.

In the Match product receipts to invoice page, click the OK button at the bottom of the screen.

To finish, click Post on the Action Pane, and the invoice posts.

In the ALL PURCHASE ORDERS page, verify purchase order status is updated to Invoiced.

Exercise - Process a sales order-initiated intercompany chain Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-intercompany-trade/8exercise-process-sales-order-initiated-intercompany-chain

Create a sales order-initiated intercompany chain (Three-legged chain) Contoso Retail Miami 3005 has ordered items from USRT. Unfortunately, there is no on-hand inventory available. Therefore, these items must be ordered from USMF. An original sales order for Northwind Traders customer is created. The sales representative creates a purchase order directly from the Sales order page. Because an intercompany vendor 9009 (which is linked to the USMF company through the intercompany setup), is set up as a standard vendor for the ordered item, an intercompany sales order is created in USMF company account for customer 3005 (which is the customer in the USMF company that is linked to the USRT company through the intercompany setup).

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Create a sales order-initiated intercompany chain. 1.

Start in USRT and go to Modules > Sales and marketing > Common > Sales orders > All sales orders.

Click NEW on the Action Pane to create a new sales order.

Select Customer account 3005 Contoso Retail Miami in the Create sales order form.

Click OK in the Create sales order page.

In Sales order lines, select the item to be sold, item D0001, in the Item number drop-down.

Type the value "4" in the Quantity field.

Site 1 and Warehouse 11 should default.

Unit price of 329.00 should default. Click Save.

Select the SALES ORDER tab.

10. Click Purchase order, in the NEW group of the Action Pane. 11. Select the Include check box in the line with the item. 12. Verify that vendor 9009 is selected in the Vendor account field. 13. Click OK. 'Automatic purchase creation' message should appear. 14. Message indicating that the intercompany sales order was created should appear. 15. Message indicating that the purchase order was created should appear. 16. Close all pages.

Process the intercompany sales order This intercompany sales order must now be processed. As part of the sales order processing, update the ordered quantity to 4.00.

Process the intercompany sales order for customer US-002 in USMF. 1.

Go to Sales and marketing > Sales orders > Intercompany orders.

Select the intercompany order (e.g., usrt000183) to packing slip update.

Click the PICK AND PACK tab in the Sales order page.

Under the GENERATE group, click Post packing slip.

Under the PARAMETER group, verify Packing slip is selected in the Quantity field.

Quantity of 4.00 should default in Lines section Update field.

Click OK.

Click OK when prompted to post the document without printing it.

Verify that the sales order status has been updated to Delivered.

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Process the original sales order for customer Northwind Traders in USRT. 1.

Go to Sales and marketing > Sales orders > All sales orders.

Select the sales order for customer Northwind Traders (e.g., 000183).

In the Action Pane, click PICK AND PACK. Under GENERATE, click Post packing slip.

In the Packing slip posting page PARAMETER group, verify Packing slip is selected in the Quantity field.

In the Packing slip posting page, verify the quantity of 4.00 defaults in the Lines section Update field.

Click OK.

Click OK when prompted to post the document without printing it.

Verify that the sales order status is updated to Delivered.

Manually create an intercompany chain (Two-legged chain) USRT's customer, Football Stadium (1002), calls and orders two units of item number D0001. Because USRT has no on-hand inventory available for this item, you must create an intercompany purchase order from the intercompany vendor 9009 USMF.

Create the intercompany purchase order in USRT. 1.

Go to Accounts Payable > Purchase orders > All purchase orders.

Click NEW in the All purchase orders page to create a new purchase order.

In the Create purchase order page, select Vendor account 9009. In the General tab Storage Dimensions, verify Site = '1' and Warehouse = '11.' Under INTERCOMPANY, verify Intercompany is set to Yes.

Click OK.

In Purchase order lines, add item number D0001.

Verify the following: Site 1, Warehouse 11. In the Quantity field, enter '10.'.

Click Save.

Click PURCHASE on the Action Pane and, under ACTIONS, click Confirm to confirm the purchase order.

Close the purchase order.

10. In USMF, go to Sales and marketing > Sales orders > Intercompany orders. 11. Verify that the new intercompany sales order was created.

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Update the intercompany sales order packing slip in USMF. 1.

Start in USMF and go to Modules > Sales and marketing > Sales orders > Open orders > Intercompany orders.

Select the intercompany sales order to generate the packing slip.

In the PICK AND PACK tab of the Action Pane, under the GENERATE group, click Generate picking list.

In the Posting picking list page, under PARAMETER, verify All is selected in the Quantity field.

Click OK.

Click OK when prompted to post the document without printing it.

On the Sales order page, in the PICK AND PACK tab of the Action Pane, under the GENERATE group, click Post packing slip.

In the Packing slip posting page, under PARAMETER, verify Picked is selected in the Quantity field.

Click OK.

10. Click OK, if prompted to post the document without printing it. 11. In the INTERCOMPANY ORDERS page, verify sales order status is updated to Delivered.

Update the purchase order packing slip in USRT. 1.

Start in USRT and go to Modules > Procurement and sourcing > Purchase orders > All purchase orders:

Select the intercompany purchase order to generate the product receipt.

In the RECEIVE tab of the Action Pane, under the GENERATE group, click Product receipt.

In the Posting product receipt page, under PARAMETERS, verify Ordered quantity is selected in the Quantity field.

Click the OK button at bottom of page.

In the Purchase order page, verify purchase order status is updated to Received.

Update the intercompany sales order invoice in USMF. 1.

Start in USMF, and go to Modules > Sales and marketing > Sales orders > Open orders > Intercompany orders.

Select the intercompany sales order to generate the invoice.

In the INTERCOMPANY ORDERS page, click the INVOICE tab. Under the GENERATE group, click Invoice.

In the Posting invoice page, under PARAMETER, verify Packing slip is selected in the Quantity field.

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Verify the information in the Lines FastTab (i.e., Site = 1, Warehouse = 13, Update = 10),adn then click OK.

Click OK when prompted to post the document without printing it.

In the INTERCOMPANY ORDERS page, verify sales order status has been updated to Invoiced.

Update the purchase order invoice in USRT. 1.

Go to Procurement and sourcing > Purchase orders > All purchase orders.

Select the intercompany Purchase order to generate the invoice.

In the INVOICE tab of the Action Pane, under the GENERATE group, click Invoice.

In the VENDOR INVOICE page Lines section, under INVOICE DATES, enter an invoice date in the Invoice date field.

From the Action Pane, click the Match product receipts button to match the product receipts to the invoice.

In the Match product receipts to invoice page, click the OK button at the bottom of the screen.

To finish, click Post on the Action Pane, and the invoice posts.

In the ALL PURCHASE ORDERS page, verify purchase order status is updated to Invoiced.

Auto-create a direct delivery intercompany order chain (Three-legged chain) Football Stadium 1002 is the only customer who orders the item number D0001 (MidRangeSpeaker). You have no on-hand inventory available, and must purchase this item from your intercompany vendor 9009.

Set up the customer for the automatic creation of intercompany orders. 1.

Start in USRT, and go to Modules > Sales and marketing > Customers > All customers, and select Account 1002 Football Stadium.

In the Miscellaneous details FastTab, under the AUTOMATIC NOTIFICATION AND CANCELLATION PROCESSING group, verify Yes is selected for Create Intercompany orders and Yes is selected for Direct delivery.

Set up a primary vendor for item D0001. 1.

Go to Product information management > Customers > All customers, and select Account 1002 Football Stadium.

In the RELEASED PRODUCT DETAILS page, click the Edit button, and go to the Purchase FastTab.

Under the ADMINISTRATION group, in the Vendor field, select 9009.

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Click Save.

Automatically create the intercompany chain. 1.

In USRT go to Sales and marketing > Sales orders > All sales orders.

Click NEW on the Action Pane to create a new sales order.

Select Customer account 1002 Football Stadium, in the Create sales order page.

Click OK in the Create sales order page.

In Sales order lines, select the item to be sold, item D0001, in the Item number drop-down.

Type the value "4" in the Quantity field.

Site 1 and Warehouse 11 should default.

Unit price field value should default.

Click Save.

10. Select the SELL tab. 11. Under GENERATE, click Confirm sales order. Click OK, in the Confirm sales order form. Click OK when prompted to post without printing. 12. Notification in MESSAGES displays, stating "Intercompany sales order usrtXXX has been created." 13. Notification in MESSAGES displays, stating "Purchase order 0000XX has been created." 14. In USRT, go to Accounts payable > Purchase orders > All purchase orders. Verify a new purchase order for vendor 9009 has been created for 4.00 pieces of item D0001. 15. In USMF, go to Sales and Marketing > Sales orders > All sales orders >Intercompany orders. 16. Verify that the new intercompany order has been created for customer US-002 for 4.00 pieces of item D0001.

Set up an intercompany chain with automatic picking list creation The sales company USMF and the production company USRT are working closely together. After you create a new intercompany chain, the picking procedure in USMF must be started without any manual interaction. Therefore, the picking list must be generated and printed automatically.

Create an intercompany chain with automatic picking and printing of picking list 1.

In USMF, go to Sales and Marketing > Customers > All customers.

Select the Customer account, USRT US-002.

Click Edit.

In the ALL CUSTOMERS page GENERAL tab, under the SET UP group, click Intercompany on the Action Pane.

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Click Sales order policies.

Select the Print picking list automatically parameter and click Save.

In USMF, go to Accounts receivable > Setup > Accounts receivable parameters.

Click General.

In Sales default values, select Automatic in the Reservation field.

10. In the Accounts receivable parameters page, click Updates. In the Picking list FastTab, select Completed for the Picking route status.

Create a sales order line item. 1.

In USMF, go to Sales and Marketing > Sales Orders >All sales orders.

Click New to create a new sales order.

In the Create sales order page, select Customer account US-002.

In the General FastTab, verify Yes is selected, under the INTERCOMPANY group.

In the Sales order lines on the SALES ORDER page, select D0001 in the Item number field. Quantity should default to 1.00.

Click Header.

In the Intercompany settings FastTab, select Yes for Autocreate Intercompany orders and Yes for Direct delivery.

On the SELL tab, under the GENERATE group, click Confirm sales order. Click OK in the Confirm sales order page, and then click OK when prompted, to post without printing.

On the PICK AND PACK tab, under the GENERATE group, select Generate picking list.

10. Click OK in the Posting picking list page. 11. A notification appears stating that an Intercompany purchase order has been created in USRT.

Work with the Intercompany on-hand page Football Stadium (1002) is the only customer who orders the item number D0001 (MidRangeSpeaker). USRT needs to know the amount of their own on-hand inventory, as well as the on-hand inventory with their intercompany vendor Contoso Entertainment Systems USA (9009).

View the company's on-hand inventory in the intercompany chain, for all item and inventory dimensions 1.

Go to Inventory management > Inquiries and reports > On-hand list.

Filter by item number D0001 and click Apply.

Click the Intercompany on-hand button.

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Physical inventory, Physical reserved, Available physical, Total available, etc., is displayed for USRT and USMF.

Configure intercompany information flow A representative from Football Stadium 1002 has called and inquired about the status of the order, so you must view the status of the corresponding sales or purchase order, to determine whether it has already been picked or delivered or received

View related orders. 1.

In USRT, go to Sales and marketing > Sales orders > All sales orders.

Open the desired sales order

Select the MANAGE tab.

Under the INTERCOMPANY TRACKING group, select either Intercompany sales order or Purchase order.

Exercise - Process returns in intercompany Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-intercompany-trade/9exercise-process-returns-intercompany Perform a return order where items are returned from the DEMF the sales company to the production plant USMF. DEMF has received one piece of item number D0001 from USMF. Upon item receipt, they recognize that the item is broken during transportation. Therefore, you must return the item to USMF. 1.

Open company USMF.

Open the Return orders page from Sales and marketing > Sales returns > All return orders.

From the Action Pane, click Return order, which is located in the New group.

On the Create return order page, select the Customer account DE-001.

Expand the General FastTab.

Note the system generated RMA number located in the RMA number field.

Click OK to create the return order.

Notice that an Intercompany purchase order is automatically created.

Click Find sales order in the Return group in the Action Pane to open the Find sales order form.

10. Select the sales order that has already been delivered D0001 product in the top pane grid. 11. Select the Mark check box for D0001 and change qty to 2. 12. Click OK.

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13. Select 21 for Return reason code field. 14. Expand Line details fast tab. 15. Select 21 for Disposition code field. 16. Click Save. 17. Click Return order action pane in the Send group click Return order to print the return order. The system displays the Send return order page. 18. Click OK. The system displays the return order. Note the RMA number. At the top left right above the customer account. 19. Close the Send return order report. 20. In the Return Order page, click General in the Action Pane Intercompany purchase order. (DEMF has the PO). 21. Click Purchase in the Action Pane, and then click Confirm. 22. Click Receive in the Action Pane and then click Product receipt. Enter a Product receipt number as GTL039 and then click OK. 23. Close all pages.

To receive the items in USMF 1.

In USMF, open Inventory management > Inbound orders > Arrival overview.

Select the Arrival overview profile "Return order" at the top of the form to display expected arrivals from return orders.

Click Update.

Select the receipt with the attached RMA number in the Select for arrival field and then click Start arrival.

To open the arrival journal, highlight the message in the Infolog and then click Journals > Show arrival from receipt. The Arrival journal page opens.

Click the Header.

Click Edit.

Select 11 Credit for the Deposition code field.

Click Lines.

10. Expand Lines details FastTab. 11. Select 11 Credit for the Deposition code. 12. Repeat for the remaining lines in the order if applicable. 13. Click Post. 14. Click OK. If the Setup parameters are set up to post invoices automatically, no manual posting is needed.

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Exercise - Process an intercompany direct delivery Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-intercompany-trade/10exercise-process-intercompany-direct-delivery In DEMF, Southridge Video DE-016 orders two pieces of item number D0001. Assume that you have no on-hand inventory available. Therefore, you must create an intercompany chain. To keep manual interaction to a minimum, this chain must be created automatically. The delivery date is soon. Therefore, you ask the vendor, USMF to ship the items directly to the customer Southridge Video. 1.

In DEMF, open Procurement and sourcing > Vendors > All Vendors.

Select Vendor account US-001 and then click Edit.

Click the General tab and then click Intercompany.

Click Purchase order policies.

In the Original sales order (direct delivery) field group perform the following setup:

Clear the Print packing slip automatically parameter.

Select the Post invoice automatically parameter.

Clear the Print invoice automatically parameter.

In the Intercompany purchase order (direct delivery) field group perform the following setup:

10. Clear the Print packing slip automatically parameter. 11. Select the Post invoice automatically parameter. 12. Clear the Print invoice automatically parameter. 13. Click Save. 14. Click Yes. 15. Close the page.

Set parameters on customer and create the intercompany chain. 1.

In DEMF, open Sales and marketing > Customers > All Customers.

Select **Customer account **DE-016 and then click Edit.

Expand the Miscellaneous details FastTab and select the Create intercompany orders and the Direct delivery parameters.

Click the Sell tab on the Action Pane and then click Sales Order.

In the lower part of the Sales order page, create a new sales order line for Item number D0001 and a Quantity of two.

Click Sales order on the Action Pane and select Direct delivery.

Note USMF, the vendor US-001 is automatically selected.

Select the Include check box.

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Click OK.

10. You may receive a credit limit warning, ignore it. 11. Expand the information bar and click message details. 12. Confirm that an intercompany sales order has been created. 13. Also confirm that a purchase order has been created. 14. Click another sales order header and notice that a purchase order and an intercompany sales order direct delivery are created automatically. Update the intercompany sales order packing slip 1.

Open the original sales order that was previously created, click the Manage tab, and then click Intercompany sales order.

Click Pick and Pack on the Action Pane and then click Post packing slip.

Select All in the Quantity field and then click OK.

Click OK.

Expand the Line details on the Action Pane.

Verify the address for Southridge Video the original customer in DEMF.

Note the intercompany sales order status is set to Delivered.

Close the intercompany sales order.

You are now back in original sales order, note the status of the order.

10. Refresh the original sales order page. 11. Note the status of the order, is Delivered. 12. In Manage on the Action Pane click Purchase order 13. Note the status of the order is Received 14. Expand the Line details in the Action Pane. 15. Verify the address for Southridge Video the original customer in DEMF.

Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-intercompany-trade/11knowledge-check

Configure and use intercompany trade in Dynamics 365 for Finance and Operations knowledge check 1.

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Sales order

b. Intercompany sales order c. 2.

Sales agreement

What commitment type can be used on an intercompany purchase or sales agreement? a.

Product quantity commitment

b. Product value commitment c.

Category value commitment

d. Value commitment 3.

Where in the system can you enable the Auto-create intercompany orders and Direct delivery parameters? a.

On the sales order header

b. In the Value mapping policies. c. 4.

In the Sales order action policies.

Which one of the following options prints the invoice automatically for the intercompany purchase order in a direct delivery scenario, when the invoice on the intercompany sales order is posted? a.

Print packing slip automatically

b. Post invoice automatically c.

Print invoice automatically

Summary Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-intercompany-trade/12summary In this module you learned that in intercompany trade, and process integration is based on rules for starting a process in another legal entity. Additionally, business data is available in all legal entities together with the business process. After you create an intercompany order chain, Finance and Operations traces all related purchase orders and intercompany sales orders. Setting up action policies and constraints helps companies define the connection between legal entities. Value mapping is important for intercompany communication because it must be defined how matching between values in two companies can be performed.

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Additionally, this module examined the information flow within intercompany chains and how the original sales order, intercompany purchase order, and intercompany sales order are linked to each other. Intercompany agreements described the concept of sales and purchase agreements and how they can be used in intercompany trade relationships. You learned how to create intercompany sales agreements and automatically create intercompany purchase agreements based on the original intercompany sales agreement. Direct deliveries speed up the shipment process within the intercompany chain because the items are sent directly to the customer. With the return order functionality, the intercompany process can be handled in the reverse direction. Additionally, return reasons and disposition codes can be used in the same manner as the standard return process.

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Module 3: Configure and Use Master Planning This topic explains how to configure and use the master planning in Finance and Operations. Lessons •

Introduction

•

Master planning considerations and setup

•

Create master plans

•

Learn about demand and supply forecasts

•

Configure item coverage

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Brief introduction to intercompany planning

•

Run plans and firm planned orders

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Practice labs

•

Module summary

In this module you learned how to: •

Define master planning Policies

•

Learn about Demand and Supply Forecasts

•

Configure calculated delays

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Configure Item coverage

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Understand brief introduction to intercompany master planning

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Run plans and firm planned orders

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Configure and use master planning in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/ Businesses in any market such as retail, manufacturing, distribution, services, and public sector organizations, need functionality to help them plan for demand and supply of products and services during the course of short- or long-term operations. Get to know the Master planning feature of Dynamics 365 for Finance and Operations to streamline planning based on pre-determine factors to efficiently plan what is needed to be purchased, transferred, or manufactured. In this module, you will learn how to: •

Set up and configure master planning

•

Set up demand and supply forecasts

•

Configure calculated delays

•

Configure intercompany master planning

•

Run plans and firm planned orders

Introduction to master planning Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/01-master-planning-intro Master planning allows companies to determine and balance the future need for raw materials and capacity to meet company goals. Master planning assesses the following information: •

What is required to complete production(s)?

•

What is currently available?

•

What is needed (such as what must be manufactured, purchased, transferred, or set aside as safety stock)?

Master planning uses information from many different areas of the system to determine how much of each item you must purchase and by what date you must purchase the inventory (based on lead times in Dynamics 365 for Finance and Operations) in order to fulfill the item requirements on time. By using master planning you can: •

Demand from existing sales orders - Sales orders are one of the primary sources of information for deriving purchasing requirements. Depending on your type of business, this may drive direct

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purchases for distributed goods or direct purchases for raw materials required to assemble or produce another item. •

Demand from existing sales quotations - You can optionally select to include sales quotation information in the estimates that are formed for the planned purchase orders in the master planning output. This can be especially useful in make-to-order scenarios or scenarios where products have a longer lead time.

•

Estimates in the forecast - You can use demand or supply forecasts in Dynamics 365 for Finance and Operations to estimate how much of a product you will require during a specific time period. Master planning can then use this information to derive planned purchases for direct distribution or production scenarios.

•

Demand for upcoming production - When you use Master planning to plan your production, the bill of materials (BOM) defines the products that are required to make a finished product. These requirements can derive demand for you to purchase additional raw materials to fulfill the production requirements.

•

Demand to meet safety stock levels - You can optionally configure safety stock for key items in your warehouse to ensure that you always have a certain amount on hand. When your inventory levels fall or are expected to fall below the safety stock level you have defined, Master planning will generate purchases for these items to bring the on-hand level in your warehouse back up.

•

Demand to meet minimum stock levels - You can optionally define minimum and maximum levels for items in your warehouses, which will drive the requirements to keep a certain amount of an item in your warehouse.

Master planning calculates requirements and results in the generation of planned orders. The three main master planning processes are: •

Master plan: -The Master plan calculates net requirements. It is based on actual current orders and enables companies to control inventory replenishment on a short-term, day-to-day basis. Another term to describe it is the "Net requirements plan."

•

Forecast plan -The Forecast plan calculates gross requirements. It is based on future projections (or forecasts) and enables companies to conduct long-term master planning of materials and capacity.

•

Intercompany master planning -The Intercompany master planning calculates net requirements across legal entities. It connects demand and supply between companies not only for short-term, firm demand and supply but also for long-term, planned (that is not yet firmed) demand and supply.

Companies can change the output of the plan. They can run regenerative or net change or both. Regenerative plans update all requirements, whereas, net change plans only update the plan on items with new requirements that have come in since the last master planning run. The main purpose of running master planning is to calculate how the company can best meet the requirement of having the correct material, at the correct time, by using the correct resources, in the correct place. You do this by exploding the demand and calculating the net requirements of products and resources. To do this master planning collects all relevant information based on a master plan's

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parameters settings collected from other modules in Finance and Operations such as inventory transactions from sales order, purchase order and whether or not to include sales quotation probability and many more

Static plans and dynamic plans You can also run static or dynamic plans or both. The static plan is fixed and does not change until regenerated, whereas, the dynamic plan is regularly updated. These plans can be run in various combinations to best suit the company's business needs. •

Static plan - The master planning calculation uses the current data to generate a net requirements plan. This is the plan where planned orders are normally approved and firmed to generate supply orders. This plan remains unchanged until the next time that you run master planning.

•

Dynamic plan - This plan starts with the same net requirements plan that was generated by master planning. However, you can update the dynamic plan every time that the transactional data changes. This could be when you create a new sales order, for example. This enables you to monitor the changing order network and item availability without disturbing the static plan that others are using for their work processes.

A company may choose to work with just a dynamic plan or it may use both static and dynamic plans. In addition, you can configure any master plan to reflect a strategy or address an issue.

Example: •

For short term planning perhaps, daily, weekly or even monthly consider using dynamic plan to stay up-to-date with changes in a day to day operations such as mix/max requirements to ensure the safety stock journals created will cover the requirements for available items at hands. .

•

For long term plans usually yearly, you need to set longer safety margins to protect against unforeseen circumstances such as dealing with vendors who perhaps do not deliver the goods as promised.

Based on parameters that you set, Master planning checks on-hand inventory and factors in all sales orders (including sales quotations, if they are included in the Master plans setup), inventory transactions, and purchase orders. This also includes previously planned production orders. Then it creates a new planned orders if regeneration is selected when running a plan. It can also update the existing plan, with Actions and Calculated delays. You can also set up the starting dynamic plan so that it is updated with the new requirements plan every time that you run master planning. You can specify these settings on the Master planning parameters page.

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Maintain planned orders You can manage planned orders from the Master planning workspace, the Planned order list, or the Planned production orders, Planned purchase orders, and Planned transfer lists. You can use the Status field to help track your progress. The following values are used: •

When master planning generates planned orders, the planned orders have a status of Unprocessed.

•

If you decide not to firm a planned order, you can give it a status of Completed.

•

When you decide to firm a planned order, you can give it a status of Approved. This status indicates that you approve firming of the planned order, but it isn't firmed yet.

NOTE: An approved planned order is transferred, in its current state, to the next master planning calculation. You can firm planned orders by clicking Firm. You can firm the following planned orders: •

The planned order that is selected.

•

Multiple planned orders.

•

Planned orders that are generated by an explosion from the Explosion page. Click Planned orders, select the planned order, and then click Firm.

When a planned order is firmed, orders are created based on the reference type of each order such as Purchase, Production, Kanban, and Transfer.

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Forecast planning To plan, companies must have a good estimate of future demands. In most companies, this estimation or projection is performed by a forecasting technique. Forecasting in Finance and Operations provides a starting point for assessing upcoming product demands (gross requirements) and helps companies to take steps that meet realistic demands over time. Forecast plans also help determine demands for materials and resource capacity that will affect the financial future of the company. The forecast provides an estimate of the prospective sales of finished goods and trade goods.

Intercompany master planning The intercompany master planning process in Finance and Operations is streamlined by using relationships between companies and their respective master plans. Planners can account between both supply and demand resources that are supplied across multiple companies. Some important features in intercompany master planning for Finance and Operations include the following: •

Ability to explode product requirements throughout a set of companies in a series of master planning runs.

•

Flexibility to create connected demand and supply between companies not only for the firm (committed) demand in the short-term, but also for planned long-term demand and supply

•

Ability to create purchase and sales orders based on cross-company demand.

•

Ability for intercompany planning groups to participate in master plan integration. This lets intercompany master planning for some, but not all, companies in an instance.

•

Ability to view a comprehensive supply schedule page for increased visibility in the supply chain.

Regenerative master planning Master planning on a regenerative basis considers all the parameters for the whole model every time that it is run. Master planning on a net change basis considers only one-line item, a section, or a product line that has changed since the last run. When a regenerative master planning is run, it updates the plan and considers or reconsiders each dependency between resources. This includes the bills of materials (BOMs) and the items on all levels. These calculations can take some time. Therefore, regenerative master planning is frequently run in nightly batch jobs. In the following figure, you see the Master planning page. Notice that it has a Run in the background FastTab for setting up a scheduled batch.

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Net change master planning Net change master planning helps obtain a picture of the effect of current changes in specific areas such as quantity, warehouse, or delivery dates. Because only immediate changes are considered, this takes less time to process than running a regenerative plan. For example, if a company runs a net requirement master planning update for a sales order line for a specific item, the dates on the sales order line will be updated, but not all the dependencies will be considered. Net requirements planning is run by using the Net Requirements page and clicking the Update menu. NOTE: Net change can also be triggered for a master planning run of dynamic plan. Open Sales and marketing > Sales orders > All sales orders. Select a sales order. On the Area Pane, under the Maintain group, click Edit. Under Sales order lines FastTab, Product and Supply > Requirements > Net requirements When you have selected Update from the action for the Net requirements page, you can update a master plan for just the changes to a single sales order confirmation. Similarly, you can update purchase order lines and production orders from this page

Master planning considerations and setup Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/02-master-planning-setup This unit provides an overview of the main considerations, prerequisites, and setups necessary for using the Master planning module in Finance and Operations. It also contains a summary of the ways in which master planning results are handled. The following figure provides an overview of the interaction of information that affects master planning in Finance and Operations, and a brief list of the resulting output.

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Use of forecast planning One of the first considerations a company should take is to assess whether forecast planning must be used, because the forecast planning is generally run before you run master planning. As an alternative a master plan can include a forecast plan. To do this, the company must consider the extent to which it can to forecast future orders. If they can be forecasted with relative accuracy, the Forecast planning process can make sure that all items are purchased and produced when it is necessary, and that there is enough capacity available at the appropriate time to meet the delivery dates. The ability to accurately forecast material and capacity needs can also help in the negotiations of pricing and terms (trade agreements) with vendors.

One or two-master plan strategy Companies can set up master planning to operate with either a one or two-master plan strategy. The twomaster plan strategy uses two independent plans the static master plan and the dynamic master plan. Whether a company operates with one or two master plan strategies depends on how it deals with order simulations in relation to its daily operations. With the ability to run fast dynamic plans they can quickly respond to market conditions.

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Item coverage settings Another thing to consider for the setup of master planning is how the business handles the level of inventory it maintains. How the inventory is handled influences choices about coverage planning parameters for the master planning process. Companies can consider inventory levels of each item individually when they set up master planning, based on item characteristics that are important to their business. For example, you can manage inventory by stocking certain items or change the default order to production, transfer or Kanban orders. Master planning uses item coverage settings to calculate item requirements.

Coverage group You can create a coverage group that contains settings for all products that are linked to the coverage group. Click Master planning > Setup > Coverage > Coverage groups to create a coverage group. You can link a coverage group to a product. If the link is specific to a site, warehouse, or product dimension, use the Coverage group field on the Item coverage page. If the link is generic, regardless of the product dimensions, use the Coverage group on the Plan FastTab on the Product details page. If you do not link a coverage group to a product, master planning uses the General coverage group that is specified on the Master planning parameters page as the default.

Specify coverage settings for a product You can create coverage settings for a specific product. Click Product information management > Products > Released products. Select the product, on the Action Pane, on the Plan tab, in the Coverage group, click Item coverage to open the Item coverage page.

If the product is already linked to a coverage group, you can override the coverage group settings by using the Override coverage group settings field. The coverage settings on the Item coverage page take precedence over the settings on the Coverage group page.

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•

You can specify coverage settings for a product by using a wizard. The wizard is a step-by-step guide to help you set up the primary item coverage parameters. On the Item coverage page, click Wizard to open the Item coverage wizard.

•

You can specify coverage settings for a dimension group. Click Product information management > Common > Released products. On the Released product details page, on the General tab, in the Administration group, click the Storage dimension group link. On the Storage dimension group page, select the Coverage plan by dimension field to create the coverage settings for a dimension in the storage dimension group. All product dimensions, such as configuration, color, size, style, must have the Coverage plan by dimension field selected.

Minimum keys You can use minimum keys to handle seasonal fluctuations in demand. For example, if you want to set up a minimum key that accounts for increased seasonal demand during the spring and summer months, go to Master planning > Setup > Coverage > Minimum/maximum keys and follow these steps. 1.

Create 12 lines and assign a number from 1 to 12 to the lines in the Change field.

In the Unit field, select Months.

In the Factor field, enter the values that are described in the following table.

Line

Enter this value

Result

1-3 1

Minimum inventory is based on the setting for January to March on the Item coverage page.

4-5 2

Minimum inventory is multiplied by a factor of 2 for April to May.

6-8 2.5

Minimum inventory is multiplied by a factor of 2.5 for June to August.

912

Minimum inventory reverts to the setting for September to December on the Item coverage page.

Min/Max coverage code If the coverage code is Min/Max, you can also specify the Maximum inventory quantity that you want to maintain for the item. The value is also expressed in inventory units. If the projected available inventory falls below the minimum quantity, master planning generates a planned order to fulfil all open requirements and brings the available inventory up to the specified maximum quantity. Just like you set up Minimum, you must define all other planned coverage dimensions before you can define the Maximum field.

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For example, the minimum quantity is 10, and the maximum quantity is 15. Current on-hand inventory is 4. This gives a minimum quantity requirement of 6. However, because the maximum quantity is 15, master planning generates a planned order for 11 items. For items that follow seasonal demands, you may need to maintain different maximum levels. To do that, you need to define Maximum keys by going to Master planning > Setup > Coverage >Minimum/maximum keys. Fill in the Maximum key field on the Item coverage page. You can view the information about the safety stock levels, defined via minimum keys on the Min/Max tab, on the Item coverage page. You need to make sure that, for a certain period, the minimum and the maximum values are kept in sync.

Safety stock fulfillment for items Safety stock indicates an additional quantity of an item held in the inventory to reduce the risk that the item will be out of stock. Safety stock is used as a buffer stock in case sales orders come in and the supplier is unable to deliver the additional items to meet the customer's requested ship date. When safety stock is used to fulfill a sales order, the safety stock will be reduced. You can use Master planning to automatically bring the inventory back to the safety level. Safety stock is set up as part of item coverage on the Item coverage page under Released products > Plan > Coverage. In the Minimum field, enter the safety stock level that you want to maintain for the item. The value is expressed in inventory units. If you leave the field blank, the default value is zero. This field is available when you select Period, Requirement, or Min/Max in the Coverage code list. The safety stock level limit applies to the available inventory, which means that reservations and markings may trigger safety stock replenishment before the physical quantity goes below the specified minimum level. NOTE: You must define all other planned coverage dimensions before you can define the Minimum field. This prevents an invalid record from being used during master planning. This situation can occur if, for example, a dimension group is extended with an additional planned coverage dimension for which the minimum and maximum inventory quantities are not yet defined.

Fulfil minimum The Fulfil minimum parameter allows you to select the date or the period during which the inventory level must meet the quantity that you specified in the Minimum field. This field is available when you select Period, Requirement, or Min/Max in the Coverage code list. If minimum keys are used, select the Minimum periods check box to fulfill the minimum inventory level for all the periods that are set up in the minimum key. If you clear the check box, the minimum inventory is fulfilled for the current period only. The Fulfil minimum parameter can have the following values: â&#x20AC;˘

Today's date - The specified minimum quantity is met on the date when master planning is run. The system tries to fulfill the safety stock limit as soon as possible, even though it can be www.dynamicscompanions.com Dynamics Companions

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unrealistic due to the lead time. When the Requirement coverage code is used, multiple planned orders are created. It is always a good idea to use either Period or Min/Max coverage for items and materials in frequent demand, to bundle the replenishment. •

Today's date + procurement time: The specified minimum quantity is met on the date when master planning is run, plus the purchase or production lead time. This time includes any safety margins.

If the item carries a trade agreement, and the Find trade agreements check box is selected on the Master planning parameters page, the delivery lead time from the trade agreement is not considered. Lead times are taken from the item's coverage settings or from the item. This fulfillment mode will create plans with less delays and fewer planned orders regardless of the coverage group set up on the item. •

First issue - The specified minimum quantity is met on the date when the available inventory goes below the minimum level, as shown in the following illustration. Even if the available inventory is below the minimum level on the date when master planning is run, First issue will not attempt to cover it until the next requirement comes in.

•

Coverage time fence - The specified minimum quantity is met during the period that is specified in the Coverage time fence field. This option is useful when master planning does not allow available inventory to be used for real orders, such as sales or transfers, in the attempt to maintain the safety level.

Plan safety stock replenishment for First Expired, First Out (FEFO) items At any point in time, the inventory receipt with the latest expiry date will be used for safety stock to allow real demand, such as sale lines or BOM lines, to be fulfilled in the FEFO (First Expired, First Out) order.

Scenario: When planning is run, it will cover the first sales order from the existing on-hand inventory and an additional purchase order, for the remaining quantity. A planned order is created to make sure that the available inventory is brought back to the safety limit. When the second sales order is planned, the previously created planned order that covers the safety stock is used to cover this quantity. Hence, the safety stock is constantly rolling. Finally, another planned order is created to cover the safety stock. All the batches are expire accordingly, and planned orders are created to refill the safety stock after it has expired.

How master planning handles the safety stock constraint Safety stock is tracked in the system as a requirement type, just like sales lines or BOM requirements. You can see the safety stock requirement line on the Net requirements page if you remove the default filter on the Requirement type column. Fulfilling the safety stock requirement transaction is deprioritized if the system determines that this causes delays in the fulfilment of real demand, such as sales lines, BOM lines, transfer requirements, or demand www.dynamicscompanions.com Dynamics Companions

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forecast lines. Otherwise, making sure that the available inventory is above the safety stock quantity has the same priority as any other demand types. This ensures no delays for real transactions and helps to prevent over-replenishment and early-replenishment of safety stock. During the coverage phase of master planning, safety stock replenishment is no longer deprioritized. Onhand inventory can be used before any other demand types. During the delay calculation, new logic will be added to go over the delayed sales lines, BOM line requirements, and all the other demand types, to determine whether they could be delivered on time, provided that the safety stock is used. If the system identifies that it can minimize delays by using safety stock, then the sales lines or BOM lines will replace their initial coverage with the safety stock, and the system will trigger the replenishment for the safety stock instead. If the plan or the item is not set up for delayed calculation, then the safety stock constraint will have the same priority as any other demand types. This means there is a reserve of on-hand and other available inventory before other demand types.

Safety stock journal lines Safety stock journal lines can be created for the items that must be checked. After that, proposals for inventory levels can be calculated in the Item coverage journal page. Minimum inventory journal lines can also be created or updated in the Item coverage journal lines page.

Delays A delayed date is a realistic due date that a transaction receives if the earliest fulfillment date that master planning calculates is later than the requested date. Master planning can calculate the earliest fulfillment date for a transaction, based on lead times, material availability, capacity availability, and various planning parameters. If master planning calculates an order date that precedes the current date, the order can't be fulfilled on time. Therefore, the order is delayed. In this case, master planning forward-plans the order from the current date and includes lead times. These lead times start with any lower-level component items. The order then receives a delayed date. A delayed date is a realistic due date, based on the current data. Master planning also calculates the number of delay days.

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In some situations, you might choose not to calculate delays, such as when users know that they can expedite lead times by selecting alternative modes of delivery. You can configure how delays are calculated for a coverage group. You can then attach the coverage group to an item later. On the Master planning parameters page, you can set the start time for the calculation of delays. If an order is fulfilled after this time, a delay of one day is added to the delay date of the order.

Use tracing for explosion By enabling tracing, you can view information about the factors that contributed to the outcome of the explosion of an order. The following examples show how you can use the tracing information: •

View relations between the actions on planned orders to optimize the supply chain and inventory reservations.

•

View relations to orders that are already approved. You can focus on automatically firming derived requirements and then prioritize orders more accurately.

•

Simulate planning results to determine whether the planning parameters are optimal.

•

Identify how information such as production dates, quantities, and priorities for an order were determined.

You can view details about futures and actions for a selected order. On the Explosion page, tracing information is available on the Explanation tab in the upper pane. Tracing occurs when you explode an order. To start tracing for the order, click Update, and then select the Enable trace check box. You can use the Find text field to search the log for specific information. Search results are highlighted in the tree.

Master planning parameters page Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/03-master-planning-parameters The Master planning parameters page is used to specify general information such as default plans and settings that concern the planning process, such as the master and forecast plans, coverage, safety margins, and the following: •

Settings that relate to planned orders

•

Standard update settings about firming

•

Number sequences for master planning

The General tab in the Master planning parameters page is used to specify general information about the planning process. It includes fields in the Plans field group that relate to the following types of master plans:

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Disable all planning processes - Master planning takes a snapshot of the item's net requirements before planning. The last step in the planning process is to take into consideration any changes that may have occurred in the net requirements since the snapshot was taken. o

All changes to the item's net requirements, such as a sales order line quantity increase or transfer order line quantity decrease, are logged in a table called InventSumLogTTS. This table is used to maintain the state of the dynamic plan, by keeping track of all changes in demand and supply that occurred since the last master planning regeneration. This table is only cleaned up by a master planning regeneration.

If it is never cleaned, the table keeps growing and clogs system performance. If you do not intend to run master planning or any other planning processes (explosion, production order scheduling with finite material, CTP delivery date control) in a specific company, set the Master planning > Setup > Master planning parameters > Disable all planning processes parameter to Yes. This will prevent records from being logged in the InventSumLogTTS table. When a new company is created, this parameter is by default set to Yes. This means that if you intend to implement planning processes in a company, you need to manually set Master planning > Setup > Master planning parameters > Disable all planning processes parameter to No.

•

Current forecast plan - If the company is using forecasting, the forecast plan is specified in this field. The plan entered here is regarded as the default forecast plan and is used in the Gross requirement page.

•

Current static master plan - This field is used to specify the master plan to be used when the regeneration principle selected, regardless of whether the company uses a one or a two master plan strategy. This is usually the plan that contains the results of the planning run from the previous night, and it is used as the default plan.

•

Current dynamic master plan - This field is used to specify the master plan that is used during order simulations/explosions (or explosions from the Items page), when a two-master plan strategy is used. If a one master plan strategy is used, the same plan is specified in both the Current static master plan and the Current dynamic master plan fields.

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You can also set the Copy the complete and updated static master plan to the dynamic master plan to Yes. When this option is selected, the static master plan is copied to the dynamic master plan when you run regenerative master planning. Use the parameters in the Coverage field group To define additional general parameters on the General tab in the Coverage field group, refer to the following: •

General coverage group - Select the coverage group that will be the default when you create a new item. The coverage group is also used automatically if you do not specify any other value in both the Released products page and the Item coverage page.

•

Start time for calculating delays -This field is used together with Calculated delays and rescheduling of planned orders. If a planned receipt time is later than the specified Futures time, then one day is added to the Futures date. This makes the items available one day later.

•

Use dynamic negative days -Select this option to use dynamic negative days in master planning calculations. This option and the Negative days field control when to use a scheduled receipt to fulfill a requirement, or when to generate a planned order instead. By using dynamic negative days, you can include the factor of remaining item lead time in the calculation. This provides increased accuracy in the master planning results.

•

The formula for calculating dynamic negative days is: Negative days = Lead time + negative days min {lead time, requirement due date - today's date}. o

The Negative days field is in the Item coverage and Coverage groups pages.

The Safety margin field group and the Update field group on the General tab includes the following fields:

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•

Working days - Select this option if you want safety margins to be calculated as working days in the calendar. Working days are classified as open. If the option is cleared, safety margin days are calculated as calendar days. These can be classified as either open or closed.

•

Today's date calendar - Select the calendar to use when you run master planning. The program calculates today's date by searching forward in the calendar from the system date and time until an open day is found. If this field is blank, master planning uses the current system date as today's date.

The following lists the parameters of the Planned orders tab: •

Find trade agreements - Select this option if you want the program to search for a vendor with whom a trade agreement exists when you run master planning. If there are several vendors that can supply the item, use the Search criterion field to see the criteria for selecting a vendor. If a default vendor has been specified for the item, the default vendor will override the selection made in this field.

•

Search criterion - Select the Find trade agreements option before you specify the search criterion. You can search for suppliers by minimum lead time or by lowest unit cost.

•

Receipt time - Enter the time that is automatically assigned to all planned orders that are generated. Master planning calculates planned production orders backward from this time. The time is also important for calculating futures dates and messages for planned orders.

•

Production - Select this option to include capacity that is already reserved against production orders. The program uses this field when it schedules capacity for planned orders.

•

Project - Select this option to include capacity that is already reserved against projects. The program uses this field when it schedules capacity for planned orders.

The following lists the parameters of the Standard Update tab: •

Update marking -Select the inventory marking policy to use when firming planned orders: No (no inventory marking is performed), Standard (inventory marking is updated according to the www.dynamicscompanions.com Dynamics Companions

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pegging; a requirement order is marked against a fulfillment order; if some quantity remains on the fulfillment order, it is not marked), or Extended (both the requirement order and the fulfillment order are marked, regardless of whether any quantity remains on the fulfillment order). •

Stop firming if an error occurs - Select this option if you want to stop firming all planned orders if there is an error in one planned order.

•

Group by vendor - Select this option to group planned purchase orders together to make a single purchase order per vendor when firming. Alternatively, you can create one purchase order with one line for each planned order.

•

Group by buyer group - Select this option to group planned purchase orders together to create a single purchase order that combines the vendor and buyer group. To use this option, you must also select the Group by vendor option.

•

Group by purchase agreement - Select this option to combine the planned purchase orders and make a single purchase order per purchase agreement. If you select this option, the Find purchase agreements option is automatically selected.

•

Group by period - Select the period during which you want to group planned transfer orders.

•

Find purchase agreements - Select this option to enable auto-search for purchase agreements during firming of planned orders. If a matching purchase agreement is found, information, such as price and discount, will be applied to the purchase order lines.

Create a master plan Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/04-create-master-plan There are two types of plans: •

•

A company may choose to work with just a dynamic plan, or it may use both static and dynamic plans. In addition, you can configure any master plan to reflect a strategy or address an issue.

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Example: •

For short term planning perhaps, daily, weekly or even monthly consider using a dynamic plan to stay up-to-date with changes in a day to day operations such as mix/max requirements to ensure the safety stock journals created will cover the requirements for available items at hands. .

•

For long term plans usually yearly, you need to set longer safety margins to protect against unforeseen circumstances such as dealing with vendors who perhaps do not deliver the goods as promised.

You should set up the dynamic plan so that it is updated with the new requirements plan every time that you run master planning. You can specify these settings on the Master planning parameters page. Based on parameters that you set, Master planning checks on-hand inventory and factors in all sales orders (including sales quotations, if they are included in the Master plans setup), inventory transactions, and purchase orders. This also includes previously planned production orders. Then it creates a new planned orders if regeneration is selected when running a plan. It can also update the existing plan, with Actions and Calculated delays.

When master planning generates planned orders, the planned orders have a status of Unprocessed.

•

If you decide not to firm a planned order, you can give it a status of Completed.

•

When you decide to firm a planned order, you can give it a status of Approved. This status indicates that you approve firming of the planned order, but it isn't firmed yet.

NOTE: An approved planned order is transferred, in its current state, to the next master planning calculation. You can firm planned orders by clicking Firm for the following planned orders: •

The planned order that is selected.

•

Multiple planned orders.

•

Planned orders that are generated by an explosion from the Explosion page. Click Planned orders, select the planned order, and then click Firm.

When a planned order is firmed, Orders are created based on the reference type of each order such as Purchase, Production, Kanban, and Transfer

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Calculated delays Master planning can calculate the earliest fulfillment date for a transaction, based on lead times, material availability, capacity availability, and various planning parameters. A calculated delay is a system-generated order with a due date that is based on lead times for all levels of items. A calculated delay date is generated if master planning calculates an order date, perhaps for a lower-level item, which precedes today's date. Master planning then forward-schedules the order from today's date and includes lead times which start with any lower-level component items. The calculated delay date is a realistic due date based on the current data. If master planning calculates an order date that precedes the current date, the order can't be fulfilled on time. Therefore, the order is delayed. In this case, master planning forward-plans the order from the current date and includes lead times. These lead times start with any lower-level component items. The order then receives a delayed date. A delayed date is a realistic due date, based on the current data. Master planning also calculates the number of delay days. In some situations, you might choose not to calculate delays, such as when users know that they can expedite lead times by selecting alternative modes of delivery. You can configure how delays are calculated for a coverage group. You can then attach the coverage group to an item later. On the Master planning parameters page, you can set the start time for the calculation of delays. If an order is fulfilled after this time, a delay of one day is added to the delay date of the order.

Master plans page The Master plans page contains parameter settings that guide how the application calculates requirements for each plan. Go to Master planning>Setup>Plans>Master plans to create and maintain master plans. The following lists some of the parameters in the General FastTab: •

Include on-hand inventory - Select this option if the master planning calculation should include on-hand inventory levels of the item. If on-hand inventory items levels should not be included, planned orders might be generated for items that are already in stock.

•

Include inventory transactions - Select this option if the master planning calculation should include all expected transactions. These include sales orders and purchase orders, inventory journals, production orders that are not yet registered as physical receipts, and issues from inventory.

•

Probability % - If you selected the Include sales quotations option, you can select a probability percentage. The master planning calculation includes all project or sales orders of the Quotation type that have the same probability percentage or higher.

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•

Include requests for quotations - Select this option to include requests for quotations. Transactions that have a receipt status of Quotation receipt are included in the master planning calculation.

•

Include requisitions - Select this option to include demand from requisitions that have the Replenishment purpose in the master planning calculation. Requisitions that have the Replenishment purpose and an approved status are included.

•

Scheduling method - Select the scheduling method for planned production orders that are generated during master planning. Operations scheduling provides a rough schedule that does not require you to decide which specific resource performs each operation. This method is also less demanding on system resources. If you select job scheduling, a planned production order is scheduled in detail, and a job is scheduled automatically for the planned production order when it is firmed.

•

Finite property - Select this option to indicate that capacity planning for the planned production order should consider that the requested property ID is available. You create and update properties in the Properties page.

•

Backward scheduling capacity time fence - Enter a period in days, starting from the requirement date for an order and going backward, during which master planning searches to identify available capacity. If no capacity is available, the scheduling proceeds forward from the requirement date for the order.

•

Finite capacity - Select this option to indicate that the scheduling of planned production orders will consider capacity that has already been reserved. Note that planned production orders are backward scheduled from the requirement date. If capacity is not available, the requirement for component items is sought on an earlier date than what the optimal production sequence can carry out. If the capacity can be changed as the requirement changes, such as when working with shifts, you should not select this option because calculated processing times will be incorrect. Scheduling considers capacity that is already reserved only if you selected the Finite capacity option in the Resources page. Selecting this option makes the Finite capacity time fence field available to modify.

•

Finite capacity time fence - Enter a period in days, starting from the current date, during which planned production orders are scheduled by using finite capacity. You cannot leave this field blank. This field works with the capacity time fence that you can set up on the Time fences FastTab or in the Coverage groups page. This field is available only when you select the Finite capacity option. To include a resource in finite capacity scheduling, you must select the Finite capacity field in the individual resource or resource group. o

Example 1 -You enter 15 in this field and set the capacity time fence to 100 - Master planning uses finite capacity for the first 15 days and infinite capacity for the remaining days of the time fence.

Example 2 - You enter 25 in this field, and the item belongs to a coverage group that states a capacity time fence of 10 -- Master planning uses finite capacity for 10 days.

Example 3 - You enter 0 (zero) in this field - Master planning does not use finite capacity.

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•

Finite capacity for bottleneck resources - Select this option to calculate master planning by using finite capacity for those resources that are defined as bottleneck resources. You can use bottleneck scheduling to extend the finite capacity time fence for a limited number of resources. Bottleneck resources can be scheduled by using finite capacity for a longer period than nonbottleneck resources. This field is available only when you select the Finite capacity option.

•

Capacity time fence for bottleneck resources - Enter a period in days, starting from the current date, during which those resources that are defined as bottleneck resources are scheduled by using finite capacity. The bottleneck capacity time fence should be greater than the finite capacity time fence. The greater value is used. This field is available only when you select the Finite capacity option and the Bottleneck scheduling option.

•

Include supply forecast - After you select a forecast model, select this option to include the supply forecast in the current master plan. If you do not select this option, supply forecast transactions are not included in the master plan.

•

Include demand forecast - After you select a forecast model, select this option to include the demand forecast in the current master plan. If you do not select this option, demand forecast transactions are not included in the master plan.

•

Method used to reduce forecast requirements - Select a method to use to reduce forecast requirements during master planning. o

None - Forecast requirements are not reduced during master planning.

Percent - reduction key - Forecast requirements are reduced according to the percentages and time periods that are defined by the reduction key.

Transactions - reduction key -Forecast requirements are reduced by the transactions that occur during the time periods that are defined by the reduction key.

Transactions - dynamic period - Forecast requirements are reduced by the actual order transactions that occur during the dynamic period - the dynamic period covers the current forecast dates and ends with the start of the next forecast. This method does not use or require a reduction key and when you select this option:

•

If the forecast is reduced completely, the forecast requirements for the current forecast become 0 (zero);

•

If there is no future forecast, forecast requirements from the last forecast that was entered are reduced; Time fences are included in the forecast reduction calculation; Positive days are included in the forecast reduction calculation;

•

If actual order transactions are greater than the forecasted requirements, the remaining transactions are not forwarded to the next forecast period.

•

Planned orders - Select the number sequence to use for picking planned orders. Each time that a planned order is created, it is assigned a sequential number from this number sequence. We recommend that you give the planned orders their own number sequence, so that you can differentiate them from other requirements.

•

The following lists some of the parameters in the Plan time fences in days FastTab:

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•

Coverage - Select this option to override the coverage time fence for the item during master planning. If you select this option, enter the number of days that the master planning calculation should cover requirements. The coverage time fence is calculated forward from the current date. Requirements that occur before the current date are always processed.

•

Freeze - Select this option to override the freeze time fence for the item during master planning. If you select this option, enter the number of days that planning activity is frozen. No new planned orders are generated, and existing planned orders cannot be changed.

•

Firming - Select this option to override the firming time fence for the item during master planning. If you select this option, enter the number of days that planned purchase orders and production orders are automatically firmed. The time fence is calculated forward from the master planning date. An item must be associated with a vendor for automatic firming of a planned purchase order to occur.

•

Explosion - Select this option to override the explosion time fence for the item during master planning. If you select this option, enter the number of days that bills of materials (BOMs) are exploded to calculate requirements for component items. The time fence is calculated forward from the current date.

•

Forecast plan - Select this option to override the forecast plan time for the item during master planning. If you select this option, enter the number of days that the sales forecast from the forecast plan is included in master planning.

•

Capacity - Select this option to override the capacity time fence for the item during master planning. If you select this option, enter the number of days that capacity is planned for planned production orders. Master planning uses the active production route for the item and schedules backward from the requirement date. If the requirement date for a planned production order is outside the capacity time fence, the lead time is determined by the delivery time of the item. The time fence is calculated forward from the current date.

•

Action message - Select this option to override the action message time fence for the item during master planning. If you select this option, enter the number of days that master planning generates action messages for requirements. The time fence is calculated forward from the current date.

•

Approved requisitions time fence (days) - Select this option to override the time fence settings that are defined for the item. In the field, enter the number of days in the past during which demand from approved requisitions that have the Replenishment purpose is included in master planning.

•

Sequencing - Set the sequencing time fence for the item during master planning. If you select this option, enter the number of days that sequencing is performed.

The following lists some of the parameters in the Calculated delays FastTab: Each of the four planned order types has an Add the calculated delay to the requirement date option. Therefore, by setting each option, you can define how the delay in the plan version is interpreted: •

Yes - The delay is added to the requirements date. In other words, the delay is accepted, and a new base date is calculated for the planned demand. Because this behavior typically applies when

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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CTP is used in the order creation process, the option should be set to Yes. In this case, the planned order won't have any actions, because according to the new plan, it fulfills its demand on the correct date. Additionally, for production orders, transfer orders, and kanbans, the explosion of dependent demand will now be calculated based on the postponed demand, not the original order date. If the plan for production orders is calculated based on finite capacity, we recommend that you set this option to Yes for planned production orders to make sure that materials and preproduction aren't ordered or staged before the resources are actually available. •

No - The original requirement date will remain. If actions are active, the planned order will receive an action to indicate to the planner that the delay should not be accepted. Instead, the planner should negotiate an earlier supply with the supplier. Note that a delay in the plan might be caused by a lead time or other attribute in the supply policies that can be negotiated for a specific case. For CTP, a planner should rarely have to renegotiate the plan after sales order entry if the order taker accepted the date that CTP proposed. For planned purchase orders and planned transfers, delays are usually created based on the lead times. Therefore, you can set this option to No if a planner wants to take action based on the related action messages.

Under the Action message FastTab select Update postponed date as requirement date option to automatically update planned purchase orders with the proposed action date. The action date cannot exceed the requirement date. The following lists some of the parameters in the Safety margin in days FastTab: •

Receipt margin added to requirement date - Enter the number of days that are added to the requirement date for the receipt during master planning. Safety margins for the coverage group and safety margins for the master plan are summed during master planning. For example, if the receipt margin is set to 4 days and a purchase order line is scheduled for receipt on the 15th of the month, master planning calculates the adjusted receipt date as the 19th of the month.

•

Issue margin deducted from requirement date - Enter the number of days that are deducted from the issue requirement date during master planning. Safety margins for the coverage group and safety margins for the master plan are summed during master planning. For example, if the safety margin is set to 4 days and a sales order line is scheduled for delivery on the 15th of the month, master planning calculates the adjusted delivery date as the 11th of the month.

•

Reorder margin added to item lead time - Enter the number of days that are added to the item lead time for all planned orders during master planning. Safety margins for the coverage group and safety margins for the master plan are summed during master planning.

Demand forecasting Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/05-demand-supply-forecasts Demand forecasting is used to predict independent demand from sales orders and dependent demand at any decoupling point for customer orders. The enhanced demand forecast reduction rules provide an ideal solution for mass customization. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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To generate the baseline forecast, a summary of historical transactions is passed to a Microsoft Azure Machine Learning service that is hosted on Azure. Because this service isn't shared among users, it can easily be customized to meet industry-specific requirements. You can use Finance and Operations to visualize the forecast, adjust the forecast, and view key performance indicators (KPIs) about forecast accuracy. Here are some of the main features of demand forecasting: •

Generate a statistical baseline forecast that is based on historical data.

•

Use a dynamic set of forecast dimensions.

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Visualize demand trends, confidence intervals, and adjustments of the forecast.

•

Authorize the adjusted forecast to be used in planning processes.

•

Remove outliers.

•

Create measurements of forecast accuracy.

The setup tasks include setting up the following data and parameters.

Item allocation key A demand forecast is calculated for an item and its dimensions only if the item is part of an item allocation key. This rule is enforced to group large numbers of items, so that demand forecasts can be created more quickly. The item allocation key percentage is ignored when demand forecasts are generated. Forecasts are created based on historical data only. An item and its dimensions must be part of only one item allocation key if the item allocation key is used during forecast creation. To add a stock keeping unit (SKU) to an item allocation key, go to Master planning > Setup > Demand forecasting > Item allocation keys. Use the Assign items page to assign an item to an allocation key.

Intercompany planning groups Demand forecasting generates cross-company forecasts. In Finance and Operations, companies that are planned together are grouped into one intercompany planning group. To specify, per company, which item allocation keys should be considered for demand forecasting, associate an item allocation key with the intercompany planning group member by going to Master planning > Setup > Demand forecasting > Intercompany planning groups. By default, if no item allocation keys are assigned to intercompany planning group members, a demand forecast is calculated for all items that are assigned to all item allocation keys from all Finance and Operations companies. Additional filtering options for companies and item allocation keys are available on the Generate statistical baseline forecast page. Review the number of items that are forecasted. Unnecessary items might cause increased costs when you use Microsoft Azure Machine Learning.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Demand forecasting parameters To set up demand forecasting parameters, go to Master planning > Setup > Demand forecasting > Demand forecasting parameters. Because demand forecasting runs cross-company, the setup is global. In other words, the setup applies to all companies. Demand forecasting generates the forecast in quantities. Therefore, the unit of measure that the quantity should be expressed in must be specified in the Demand forecast unit field. The unit of measure must be unique, to help guarantee that the aggregation and percentage distribution make sense. For more information about aggregation and percentage distribution, see Make manual adjustments to the baseline forecast . For every unit of measure that is used for SKUs that are included in demand forecasting, make sure that there is a conversion rule for the unit of measure and the general forecasting unit of measure. When forecast generation is run, the list of items that don't have a unit of measure conversion is logged, so that you can easily correct the setup. Demand forecasting can be used to forecast both dependent and independent demand. For example, if only the Sales order check box is selected, and if all the items that are considered for demand forecasting are items that are sold, the system calculates independent demand. However, critical subcomponents can be added to item allocation keys and included in demand forecasting. In this case, if the Production line check box is selected, a dependent forecast is calculated. There are two methods for creating a baseline forecast in Finance and Operations. You can use forecasting models on top of historical data, or you can just copy over the historical data to the forecast. The Forecast generation strategy field lets you select between these two methods. To use forecast models, select Azure Machine Learning. By clicking Forecast dimensions in the left pane of the Demand forecasting parameters page, you can also select the set of forecast dimensions to use when the demand forecast is generated. A forecast dimension indicates the level of detail that the forecast is defined for. Company, site, and item allocation key are mandatory forecast dimensions, but you can also generate forecasts at the warehouse, inventory status, customer group, customer account, country/region, state, and item plus all item dimension levels.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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At any point, you can add forecast dimensions to the list of dimensions that are used for demand forecasting. You can also remove forecast dimensions from the list. However, manual adjustments are lost if you add or remove a forecast dimension. Not all items behave in the same manner from a demand forecasting perspective. Similar items can be grouped in one item allocation key, and parameters such as transaction types and forecast method settings can be set per item allocation key. Click Item allocation keys in the left pane of the Demand forecasting parameters page.

Azure machine learning service To generate the forecast, Finance and Operations uses a Machine Learning web service. To connect to the service, you must provide Finance and Operations the following information if you sign into Microsoft Azure Machine Learning Studio: •

Web service application programming interface (API) key

•

Web service endpoint URL

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Azure storage account name

•

Azure storage account key

Note: The Azure storage account name and key are required only if you use a custom storage account. If you deploy the on-premises version, you must have a custom storage account on Azure, so that the Machine Learning service can access the historical data.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

To create demand predictions, you can deploy your own service by using Machine Learning Studio or the Finance and Operations demand forecasting experiments. Instructions for deploying the Finance and Operations demand forecasting experiments as a web service are available in Finance and Operations, on the Demand forecasting parameters page, click the Azure Machine Learning tab.

Settings for the Finance and Operations demand forecasting machine learning service To view the parameters that can be configured for the Finance and Operations demand forecasting service, go to Master Planning > Setup > Demand forecasting > Forecasting algorithm parameters. The Forecasting algorithm parameters page shows the default values for the parameters. You can overwrite these parameters on the Demand forecasting parameters page. Use the General tab to overwrite the parameters globally or use the Item allocation keys tab to overwrite the parameters per item allocation key. Parameters that are overwritten for an item allocation key affect only the forecast of items that are associated with that item allocation key.

Coverage settings Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/06-coverage-settings Master planning uses coverage settings to calculate item requirements.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

You can specify coverage settings for a coverage group. You can create a coverage group that contains settings for all products that are linked to the coverage group. Click Master planning > Setup > Coverage > Coverage groups to create a coverage group. The following are some of the important parameters under the General tab.

Negative days Enter the days that are added to a requirement due date. This number defines a time interval during which a planned receipt that is due can be used to fulfil the requirement. A planned receipt that is outside the defined time interval cannot be used to fulfil the requirement. Master planning generates a new planned order. You can equate negative days with the number of delivery days that are past due. During this time, there is a negative inventory level for the item. You must accept the negative inventory level before you can create a new fulfilment order. The value that you enter depends on factors such as item lead time and the organization's policy about inventory. If an item has a long lead time, you can specify the typical lead time as negative days. You can specify negative days in either the Item coverage page or the Coverage groups page. The full behavior of negative days depends on whether you select the Use dynamic negative days option in the Master planning parameters page.

Example For an item, a purchase order is scheduled for receipt on September 20, and a sales order is scheduled for delivery on September 19. You must specify whether to generate a new planned purchase order to cover the requirement, or to accept a late delivery for the sales order on September 20. If you set the Negative days to 0 (zero), a new planned purchase order is generated. If you set the Negative days to a number that is larger than zero, no planned purchase order is generated. Instead, an action message is generated for the purchase order, and a futures message is generated for the sales order.

Positive days Enter the number of days that are subtracted from a requirement due date. This number defines a time interval during which a planned receipt that is due can be used to fulfil the requirement. A planned receipt that is outside the defined time interval cannot be used to fulfil the requirement. Master planning generates a new planned order. You can equate positive days with the number of days that you can use existing inventory before you must create a new fulfilment order. For items that you regularly order and procure, specify the item's coverage period as positive days. For items that have few transactions, specify the coverage group's coverage period as positive days. You can specify positive days in either the Item coverage page or the Coverage groups page.

Example For an item, there is inventory, and a sales order is scheduled for delivery in 90 days. If you set the Positive days to a number that is less than 90, a new planned purchase order is generated. If you set the www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Positive days to a number that is more than 90, no planned purchase order is generated. However, the current inventory levels of the item are no longer available for new sales orders.

Use the specified BOM or formula version requirement If you select this, a bill of materials (BOM) version affects coverage planning. For example, for a sales order, you can indicate in the Item number field that the items that are ordered must be produced by a BOM version. If that version is not the active BOM version for the item, a new planned production order is created. Requirements that are derived from the specified BOM version are used, regardless of the current inventory available.

Action tab The following lists some of the important parameters under Action tab: •

Action message - If this is selected, the items are set up for action messages. Action messages suggest ways to avoid unwanted situations, and ways to change existing purchase orders and production orders.

•

Advance margin - If this is selected, master planning can suggest that existing planned orders be advanced in time. Use the Advance margin field to specify the maximum number of days between orders that are advanced. For example, a purchase order that has a delivery time of 5 days is scheduled to arrive on 10 August. A sales order is scheduled to be delivered on 6 August. Master planning suggests that the purchase order be delivered on 6 August instead of 10 August.

•

Postpone margin - If this is selected, master planning can suggest that existing planned orders be postponed. Use the Postpone margin field for the maximum number of days permissible to be postponed between sales. For example, a purchase order is scheduled to arrive on 10 August, and a sales order is scheduled to be sent on 13 August. Master planning suggests that the purchase order arrive on 13 August instead of 10 August.

•

Decrease - Select this to specify whether master planning can suggest that production orders, purchase orders, and other receipt transactions be decreased to prevent excess inventory levels.

•

Increase - Select this to specify that master planning can suggest that production orders, purchase orders, and other receipt transactions be increased to prevent shortages in inventory.

Link a coverage group to a product You can link a coverage group to a product. If the link is specific to a site, warehouse, or product dimension, use the Coverage group field on the Item coverage page. If the link is generic, regardless of the product dimensions, use the Coverage group on the Plan FastTab on the Product details page. If you do not link a coverage group to a product, master planning uses the General coverage group that is specified on the Master planning parameters page as the default.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

If the product is already linked to a coverage group, you can override the coverage group settings by using the Override field. The coverage settings on the Item coverage page take precedence over the settings on the Coverage group page.

Specify coverage settings for a product by using a wizard The wizard is a step-by-step guide to help you set up the primary item coverage parameters. On the Item coverage page, click Wizard to open the Item Coverage Wizard. Use the wizard to create new item coverage settings or delete invalid item coverage settings. After using the wizard, you can view the coverage settings in the Item coverage page.

Specify coverage settings for a dimension group 1.

Click Product information management > Common > Released products.

On the Released product detail page, on the General tab, in the Administration group, click the Storage dimension group link.

On the Storage dimension group page, select the Coverage plan by dimension field to create the coverage settings for a dimension in the storage dimension group. All product dimensions, such as configuration, color, size, style, must have the Coverage plan by dimension field selected.

Action messages Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/07-action-messages

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Action messages are generated by the master planning calculation in response to changed requirements. For example, the ship date or quantity may have changed on a sales order for which you have already created a purchase order to fulfil the demand. In this case, one or multiple action messages are generated by the master planning calculation to update the purchase order. You decide whether to make the changes that are suggested. You can set up how action messages are calculated for a coverage group that you attach to an item. On the Coverage groups page, you can select the action messages that you want the system to generate, and the coverage groups or items that the messages apply to. You can select the following action messages. Message

Description

Advance

If you select this message, the system will generate action messages, when needed, to move orders to an earlier date. In the Advance margin field, you can also specify the maximum number of days between receipt and issue without advance action.

Postpone

If you select this message, the system will generate action messages, when needed, to move orders to a later date. In the Postpone margin field, you can specify the maximum number of days between receipt and issue without postpone action.

Decrease

If you select this message, production orders, purchase orders, and other receipt transactions should be decreased to prevent excess inventory levels.

Increase

If you select this message, production orders, purchase orders, and other receipt transactions should be increased to prevent shortages in inventory.

Derived actions

If you select this message, action messages are created for derived requirements, for example, actions for component orders fulfilling the production.

Configure intercompany planning Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/08-configure-intercompany-planning

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Logistic operations of some companies depend on other legal entities within the organization. Such operations are dealt with using intercompany sales and purchases, as these legal entities have separate chart of accounts. In this unit we will review Intercompany planning and explain how to configure intercompany planning in Finance and Operations.

Intercompany planning groups Go to Master planning > Setup > Intercompany planning groups to configure the sequence of intercompany plans execution.

Intercompany master plans When you create an intercompany sales order, Finance and Operations can create a corresponding purchase order automatically. Similarly, creating an intercompany purchase order can prompt the automatic creation of a corresponding intercompany sales order. For more information regarding Intercompany trade refer to Configure and use intercompany trade in Dynamics 365 for Finance and Operations . Intercompany plans show: •

Net requirements over legal entities

•

Connects demand and supply for short term.

•

Connects forecasts and long-term projections between companies.

There are two options when setting up demand throughout the intercompany chain: •

You can have planned intercompany demand where the orders generated are not automatically firmed - This has the advantage of project demand, but not committing resources. You can use this a planning tool for corporate projections, potential contracts, or for capital expenditures for capacity expansion.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

You can firm orders as they are generated - This has the advantage of reducing intervention and increasing automation. If you would like to go from status Planned to Firmed, parameters must be set up to ensure that planned purchase orders are automatically firmed. Orders cannot be changed in terms of time or quantity. To enable this feature, set up the Firming time fence on the coverage group, or the Firming time fence on the master plan. If no Firming time fence is set up, no intercompany purchase orders are created automatically.

Key intercompany terms Below are some key intercompany terms that you should understand: •

Upstream - Used as a relative reference in a firm or supply chain to indicate moving in the direction of the raw material supplier.

•

Downstream - Used as a relative reference in a firm or supply chain to indicate moving in the direction of the end customer.

•

Planned intercompany demand - Planned demand for a product in a company based on planned demand for the product from a downstream company.

•

Intercompany planning group - A group of legal entities planned together in intercompany master planning.

The planned purchase orders for items obtained from other companies within the intercompany supply chain are used for creating representations of the demand in the upstream vendor companies. When demand is created on the upstream the following is determined by using the common product definition. •

The default data for the product is used in the upstream vendor company.

•

Converting the quantity from the unit of measure used in the downstream customer company to the unit of measure used in the upstream company

•

Storage dimensions will be considered for both the upstream and downstream companies

•

Calculating the requirement date based on lead times for the product in the upstream vendor company including transfer times.

The upstream vendor company always looks at the current downstream customer data. The demand is the combined demand from all companies that the upstream vendor company supplies. The total demand for a company is the sum of the dependent and the independent demand that may exist for the actual company. The demand is exploded, and planned orders are created as usual. To get started with intercompany master planning, we must first set up trading relationships between the two entities.

Procedure - Run intercompany master planning To create an intercompany master plan follow these steps. 1.

Open Master planning > Run > Intercompany master planning. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Select the name of the intercompany planning group

Under Planning Method, select the Number of intercompany planning iterations field and specify a value. Type the number of master planning iterations for each master planning run. For the iterations, intercompany company is planned according to the sequence that is defined in the Scheduling sequence field. A maximum of 30 iterations is possible.

Select the appropriate options for the First iteration and Subsequent iterations.

Under Other parameters, optionally select the check box Track process task duration to record the processing time for each master planning task.

Specify the Number of threads to enter the maximum number of scheduling threads to use. The actual number used depends on the number of available batch threads among the batch servers.

Click the Run in the background FastTab.

Select the appropriate batch function options. This runs the Intercompany master planning on the batch server. See Set up batch jobs in Dynamics 365 for Finance and Operations for more information about batch processing.

Iterations for intercompany master planning The following options are available for iterations when setting up intercompany master planning. •

Number of intercompany planning iterations - The number of times that the intercompany master planning calculation will iterate through the legal entities included in the intercompany planning group

•

First iteration - Select the master planning method to use for the first iteration. The options are as follows:

•

Regeneration - Deletes existing planned orders and generates new planned orders based on all known requirements.

Net change - Generates planned orders to cover only new or changed requirements that have occurred since the last master planning run. However, action and futures dates are updated for all requirements. This option is available only if you calculate a dynamic master plan.

Net change minimized - Generates planned orders, together with action and futures dates, to cover only new or changed requirements that have occurred since the last master planning run. This option is available only if you calculate a dynamic master plan.

Subsequent iterations - Select the master planning method to use for later iterations. The options are as follows: o

Regeneration - Deletes existing planned orders and generates new planned orders based on all known requirements.

Net change - Generates planned orders to cover only new or changed requirements that have occurred since the last master planning run. However, action and futures dates are

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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updated for all requirements. This option is available only if you calculate a dynamic master plan. o

You can access an overview of all intercompany supply and demand in a given master plan for a given legal entity by going to Master planning > Inquiries and reports > Intercompany master planning > Intercompany supply and demand. This page shows all orders, planned and firmed, that a company has, to or from downstream and upstream companies.

Run plans and firm planned orders Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/09-run-plans-firm-planned-orders This unit provides information about how to manage planned orders. It describes how you can update the status of planned orders, firm them, and filter for planned orders that have the same status as a selected planned order. Master planning creates planned purchase, planned transfer, planned production (discrete, and batch) and planned Kanban orders.

Planned purchase order Purchase orders are used to manage the request and receipt of goods and services from your vendors. Before proceeding with production, most companies perform supply planning, typically at least once a week, to calculate how many production orders and purchase orders to execute to fulfil that week's sales demand. Purchase orders supply the components that are required according to the production BOM to produce the end items. In direct distribution scenarios, the purchase materials are shipped to customers or retail stores. In some cases, products may be cross docked during the receiving process to help minimize the handling of the products within the warehouse. Planned purchase orders are unique based on several characteristics: •

You can automatically create a purchase order from a sales order, or purchase orders can be generated automatically by master planning.

•

Generating planned purchase orders results in a suggested planned purchase order that includes quantity information that is derived from the requirement, minimum, maximum, multiple, and standard order quantities.

•

The order date and delivery dates are calculated. The master plan considers lead times from your vendors, for shipment of the items to your customers, any time required for a production process, and warehouse transport times. www.dynamicscompanions.com Dynamics Companions

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

You can manage planned orders from the Planned purchase orders page.

An approved planned order is transferred in its current state to the next master planning calculation. You can right-click a planned order that has a status and filter for other planned orders that have the same status. This is useful, for example, if you want to filter for all planned orders that have a status of Approved, and then firm them. To create planned purchase orders follow these steps: 1.

Open Master Planning > Master Planning > Planned Orders > New

Select Planned order type

Select Plan

Select Item number

Click Create

Open Procurement and sourcing > Purchase orders > Planned purchase orders > Planned purchase orders

Set the Purchase order for Planned order type

Select Plan

Select Item number

10. Click Create 11. Open Procurement and sourcing > Purchase orders > Planned purchase orders > Planned purchase orders. 12. Select the planned order lines you want to group into one planned order. 13. Click the Group button on the Planned order. 14. Click OK on the Group selected planned orders. The selected planned order lines are grouped into one planned order. This planned order takes the delivery date from the planned order line that is selected when you execute the function. To split the planned order quantity, use the following procedure: 1.

Click Master planning > Common > Planned orders.

Select the Planned order line that you want to split.

Click the Split button on the Planned order tab.

Enter the quantity that you want to move to a second planned order and select a delivery date by using the drop-down calendar.

Click OK.

The program creates two planned orders: one planned order with the quantity and delivery date that you specify; and one planned order with the remaining quantity and the original delivery date. You can use this function to allow for partial delivery from a vendor.

There are a variety of parameters that you can select to control how planned purchase orders will be grouped and firmed.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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•

Group by period - Select the period during which you want to group planned transfer orders.

•

You can firm planned orders by clicking Firm. You can firm the following planned orders: •

From the Master planning module in the Planned order page. This page shows all planned orders regardless of their type.

•

From the Procurement and sourcing module in the Planned order page. These pages filter to only show planned purchase orders.

You must firm a planned order before you can process it. 1.

Open Master planning > Common > Planned orders.

Select the planned orders to firm.

On the Action Pane, click the Planned order tab.

In the Process group, click the Firm button.

Click OK.

You can view firmed planned orders in their respective modules. Click Procurement and sourcing > Purchase orders > Planned purchase orders > Planned purchase orders.

In some cases, you may need to change the planned order type. For example, master planning suggested that you purchase 100 new pieces of a specific item for warehouse 20. Currently warehouse 10 has some of these items in stock, and they are not needed for purchase in the next few weeks. So, you can change the planned purchase order to be a planned transfer order. Action messages suggest ways to avoid unwanted situations, and ways to change existing purchase orders and production orders. 1.

Open Procurement and sourcing > Purchase orders > Planned purchase orders > Planned purchase orders

Find a planned item,

Scroll over to see action messages. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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There are several views that you can use to manage your planned purchase orders. •

Open Master planning > Master planning > Planned orders

•

Open Procurement and sourcing > Purchase orders > Planned purchase orders > Planned purchase orders

•

Open Procurement and sourcing > Purchase orders > Planned purchase orders > Planned purchase orders with order date today or overdue

Planned transfer orders Transfer orders are used to handle items that are in transit between warehouses within or across different geographical sites in the same company, For example, to maximize space and efficiency on the production floor, raw materials are stored in a separate warehouse and are transferred into the production floor warehouse based on the production requirements. This helps eliminate the need for production floor personnel to count and find items in the warehouse and allows them to focus on the manufacturing process. By using the item coverage group you can override or set the parameters to have master planning based on the coverage settings to create planned transfer orders. For example in the image below USMF, plans to have minimum of 300 quantity of item A0001 to be available in site 1 warehouse 13.

However, USMF, requires the A0001 be planned to be transferred from site 1 warehouse 11. Therefore, you need to override the item coverage. In the CHANGE PLANNED ORDER TYPE group you update the Planned order type field to Transfer and the Main warehouse field to 11, for the planned transfer which will be created when running master planning. When you firm planned transfer orders, they become transfer orders. When more than one planned transfer order between the same warehouse is firmed, the shipment date and receipt date are taken from the earliest order date and latest delivery date of all the planned transfer orders. Additionally, you can assign a planned transfer order to a transfer order before firming the planned transfer order. In the Master planning parameters page you can select if you want to group transfer orders. You use the Group by period field to select the period during which you want to group planned transfer orders.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

In some cases, you may need to change the planned order type. For example, master planning suggested that you transfer 100 new pieces of an item from warehouse 20. However, the other warehouse needs to use those items and you decide it would be better to purchase more of the item into your warehouse. You can change the planned order type to Planned purchase order to generate a purchase order instead of a transfer order.

Planned production orders Production orders are used to manage the conversion of purchased materials into manufactured items. Production orders (job or work orders) route work through various facilities (work or machine centers) on the shop floor. Production orders are the central components of the program's manufacturing functionality and they contain the following information: •

Products planned for manufacturing

•

Materials required for the planned production orders

•

Products that have just been manufactured

•

Materials that have already been selected

•

Products that have been manufactured in the past

•

Materials that were used in previous manufacturing operations

Planned production orders are unique because of the following characteristics: •

You can automatically create a planned production order from a sales order, or they can be generated by master planning.

•

Planned production orders are like released production orders and provide input to capacity requirements planning by showing the total capacity requirements by work center or machine center.

•

A planned production order represents the best estimate of the future load for the work center or machine center load based on available information. Typically, they are generated from planning, but can also be created manually. Because they are erased during subsequent planning generations, manual creation is not practical.

You can right-click a planned order that has a status and filter for other planned orders that have the same status. This is useful, for example, if you want to filter for all planned orders that have a status of Approved, and then firm them.

Exercise - Firm a planned order Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/10-exercise-firm-planned-order You need to firm a planned order in Finance and Operations. www.dynamicscompanions.com Dynamics Companions

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Open the planned order 1.

In company USMF, open Master planning > Master planning > Planned orders.

In the Planned orders page, select the line for order number 004261.

Click the Firm button in the action pane.

In the Firming page, in the Update marking field, select Standard.

Click OK.

Review the purchase order 1.

Open Procurement and sourcing > Purchase orders > All purchase orders.

In the All purchase orders page, sort the list by the Delivery date field.

Verify the firmed order is now listed with a status of Open order.

Close the pages.

Exercise - Change a planned order type Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/11-exercise-change-planned-order-type You need to change the planned order type for an order. 1.

Open Master planning > Master planning > Planned orders.

In the Planned orders page, select the line for order number 004262.

Select the Planned order tab in the Action Pane.

Click the Change to ... drop-down arrow in the Maintain area.

Select Planned production order.

In the Change to planned production order page, click OK.

In the Planned orders list page, verify that the Reference field has been updated to Planned production order for order number 004262.

Close the pages.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Exercise - Create and run an intercompany master plan Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/12-exercise-create-intercompany-plan As the materials and production scheduling manager, you need to develop a new intercompany planning group. Assemblies are shipped from company DEMF to company USMF. At USMF they are painted and finished with the North American logo. Then they are transferred to USRT for sale. Use the Plans 20, DynPlan, and MasterPlan respectively to accomplish this goal.

Create an intercompany planning group 1.

In company USMF, click Show navigation pane.

Open Master planning > Setup > Intercompany planning groups.

Click New in the Action Pane.

Enter 'Intercompany Extended Group' in the Name field.

Click Save.

Click New on the tool bar for Intercompany planning group members tab.

Select DEMF in the Legal entity field.

Enter '0' in the Scheduling sequence field.

Click New on the tool bar for Intercompany planning group members tab.

10. Select DEMF in the Legal entity field. 11. Select 0 in the Scheduling sequence field. 12. Select 20 in the Master plan field. 13. Clear the Automatic Copy to Static Plan and Automatic Copy to Dynamic Plan check boxes. 14. Click Save.

Assign an item allocation key 1.

Select Master Planning > Setup > Demand Forecasting > Item Allocation Keys.

Select Wizard.

Select Apples from Item Group drop-down menu.

Type 'Apples Group' in the Name field.

Click Next.

Click Next on the Overview page after verifying information is correct.

Click Finish on the Completed page after verifying information is correct.

Select Demand Forecasting > Intercompany Planning Groups.

Select Item Allocation Keys. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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10. Select Apples under the Unassigned item allocation keys check box, then select > to move it to the Assigned item allocation keys check box.

Run an intercompany master plan 1.

In the USMF company, click Show navigation pane.

Open Master planning > Run > Intercompany master planning.

Select 60 for Intercompany planning group.

Select 2 for Number of intercompany planning iterations.

Select Regeneration for First iteration.

Select Net change for Subsequent iteration.

Set Track process task duration slider to No.

Set Number of threads to 0.

Click Run in the background.

10. Click OK. 11. Open Master planning > Inquiries and reports > Intercompany master planning > Intercompany supply and demand to view the results.

Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/13-configure-use-master-planning-quiz

Configure and use master planning in Dynamics 365 for Finance and Operations knowledge check 1.

Which of the following is not a type of action message for planned orders? a.

Advance

b. Postpone c.

Proceed

d. Decrease 2.

When master planning generates planned orders, what is their initial status? a.

Unprocessed

b. Not firmed c.

Completed

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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d. Approved 3.

You want to add an action message to a coverage group that will display if you reach excess inventory levels. Which type of action message would you set up? a.

Advance

b. Postpone c.

Increase

d. Decrease 4.

Which of the following can be configured to generate purchases for items when your stock level drops below a certain point? a.

Safety stock levels

b. Minimum stock levels c. 5.

Demand forecasts

Which of the following can you use to estimate how much of a product you will require during a specific period for planned purchase orders? a.

Demand or supply forecasts

b. Sales quotations c.

Sales orders

d. Bill of materials

Summary Link: https://docs.microsoft.com/en-us/learn/modules/configure-use-master-planning-indynamics-365-finance-ops/14-configure-use-master-planning-summary The Master planning module in Finance and Operations can be integrated into a business process flow that combines various other modules, roles, and models into a model that works for intercompany and for multisite planning. Master planning calculates requirements and results in the generation of planned orders. The three main master planning processes are: •

Master planning - The Master plan calculates net requirements. It is based on actual current orders and enables companies to control inventory replenishment on a short-term, day-to-day basis. Another term to describe it is the "Net requirements plan."

•

Forecast plan - The Forecast plan calculates gross requirements. It is based on future projections (or forecasts) and enables companies to conduct long-term master planning of materials and capacity. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

•

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Intercompany master planning - The Intercompany master planning calculates net requirements across legal entities. It connects demand and supply between companies not only for short-term, firm demand and supply but also for long-term, planned (that is not yet firmed) demand and supply.

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Course MB-330T03-A: Configure and use warehouse, and transportation management in Dynamics 365 for Finance and Operations Link: https://www.microsoft.com/en-us/learning/course.aspx?cid=MB-330T03 Organizations use Dynamics 365 for Finance and Operations to automate and streamline your supply chain, by modernizing business logistics, delivering timely customer response, getting ahead with predictive insights, streamlining procurement, and unifying processes from sales to fulfillment. This course discusses how to configure and use warehouse and transportation management in Dynamics 365 for Finance and Operations.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Module 1: Configure Warehouse Management The Warehouse management module for Dynamics 365 for Finance and Operations lets you manage warehouse processes in manufacturing, distribution, and retail companies. It has a wide range of features to support the warehouse facility at an optimal level, at any time. Warehouse management is fully integrated with other business processes in Finance and Operations such as transportation, manufacturing, quality control, purchase, transfer, sales, and returns. Lessons •

Introduction

•

Configure warehouse management setup

•

Understand reservation hierarchies

•

Location directives and work templates

•

Practice Labs

•

Module summary

In this module you learned how to: •

Configure Warehouse management parameters

•

Create warehouses and locations

•

Configure work pools, zones, location format, and profiles

•

Create reservation hierarchies

•

Configure location directives

•

Configure Waves

•

Configure Loads

•

Configure Inventory statuses

•

Configure cycle counting

•

Configure Packing and containerization

•

Set up and generate labels

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Configure warehouse management in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/configure-warehouse-management-indynamics-365-finance-ops/ Warehouse management in Dynamics 365 for Finance and Operations helps optimize and streamline warehouse processes according to your individual needs and provides the insight into your inventory and the tools to help increase customer satisfaction and reduce costs. In this module, you will learn how to: •

Create warehouses and locations

•

Configure work pools, zones, location format, and profiles

•

Create reservation hierarchies

•

Configure location directives

•

Configure wave templates

•

Configure inventory statuses

Introduction Link: https://docs.microsoft.com/en-us/learn/modules/configure-warehouse-management-indynamics-365-finance-ops/1-configure-warehouse-management-intro The Warehouse management module for Dynamics 365 for Finance and Operations lets you manage warehouse processes in manufacturing, distribution, and retail companies. It has a wide range of features to support the warehouse facility at an optimal level, at any time. Warehouse management is fully integrated with other business processes in Finance and Operations such as transportation, manufacturing, quality control, purchase, transfer, sales, and returns. In this module you will learn how to: •

Create warehouses and locations

•

Configure work pools, zones, location format, and profiles

•

Create reservation hierarchies

•

Configure location directives

•

Configure wave templates

•

Configure inventory statuses

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Every warehouse must have a layout that visually assists you to configure the warehouse according to the physical layout of the business. Within a warehouse there may be some equipment that can move products around the warehouse, such as forklift and ladders. The warehouse staff need to be able to put the items away and pick them up and perhaps move them from one location of the warehouse to another, such as the shipping location. One of the daily tasks of warehouse staff is to rearrange products to make space within a location, to make room for new item arrivals. They will be walking up and down aisles to pick or put away items for order. Warehouse workers can use their time and maximize their productivity during daily operations in a warehouse, by having the correct data and visibility of the available space of locations. To increase the efficiency of a warehouse and maximize its storage capacity, companies need to accurately record information regarding the whereabouts of products, where the warehouse staff can pick from and put away the products more efficiently. When warehouse management is configured and used throughout the product life cycle, Finance and Operations makes the work at the warehouse more efficient and manageable. Warehouse management can, for example, quickly and easily answer questions such as the following: •

Where should/can this item be stored?

•

Which items should be/are ready to be shipped?

The key benefits of warehouse management in Finance and Operations include the following: •

Optimizing your warehouse layout to increase efficiency.

•

Obtaining a complete overview of inventory to help improve customer service.

•

Streamlining your warehouse processes to reduce costs.

•

Processing transactions faster with a mobile device.

•

Workers can identify who performed every movement, cycle count, sales pick, and transfer, etc.

•

Workers have a set of options that can allow them to dictate how inventory should be handled. This can include specific instructions for each warehouse, for products or groups of products, and for quantities on an order. The system can be set up to require warehouse workers to follow very detailed processes for inventory handling (at specific locations if needed). It can also give warehouse workers the authority to make independent decisions, depending on worker.

Warehouse management in Finance and Operations can be a great fit for companies with a relatively large number of transactions, and in situations where they want to maintain and enforce specific processes for all transactions. The following lists the Warehouse management processes which helps you understand what needs to be configured: •

Integrated support for source documents for sales orders, returns, transfer orders, production orders, and kanban.

•

Flexible, inbound and outbound material workflow support based on queries.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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•

Full integration with the manufacturing and transportation offerings.

•

Full control of location stocking limits and location volumetric.

•

Inventory properties controlled by inventory status.

•

Full batch and serial item support.

•

Various item receiving capabilities.

•

Multiple picking strategies.

•

Out-of-the-box support for the next generation of barcode scanners.

•

Pallet/container types for warehouse processes.

•

Advanced counting capabilities.

•

Label printing and label routing with Zebra ZPL support.

•

Business intelligence integration into Power BI.

•

Manual and automatic movement of inventory.

•

Fully-integrated quality control (QMS).

•

Full traceability of workers' material handling.

•

Outbound wave processing.

•

Manual packing and automatic containerization support.

•

Cluster picking.

•

Simple cross docking.

Roles in warehouse management Link: https://docs.microsoft.com/en-us/learn/modules/configure-warehouse-management-indynamics-365-finance-ops/2-roles-warehouse-management Typically, many users are involved in the various phases of the supply chain. All users are assigned roles in Finance and Operations. Roles are set up and maintained in the System administration module by the security administrator, and these roles are used to control access to the system. Several roles are specific to inventory and warehouse management: •

Warehouse manager - Enables and reviews processes, authorizes recordings, maintains master data, and responds to inquiries within warehouse management.

•

Warehouse mobile device user - Used to access the Warehouse mobile devices portal service

•

Warehouse planner - Plans the activities in a warehouse.

•

Warehouse worker - Documents warehouse operation events and responds to warehouse operation inquiries.

•

Receiving clerk - Documents receiving operation events and responds to warehouse receiving operation inquiries.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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•

Shipping clerk - Documents shipping operation events and responds to warehouse shipping operation inquiries.

•

Quality control manager - Reviews processes, maintains master data, and responds to inquiries within quality control

•

Quality control clerk - Documents quality control events and responds to quality control inquiries

Set up warehouse management Link: https://docs.microsoft.com/en-us/learn/modules/configure-warehouse-management-indynamics-365-finance-ops/3-set-up-warehouse-management This unit helps you set up warehouse management. When a company is in the process of implementing warehouse management, basic setup must be completed to make sure that the system works for the company's business needs.

Storage dimension groups In the storage dimension group, the Use warehouse management process option indicates that the warehouse management functionality will be used for all the products assigned to this storage dimension.

The Inventory status is used to divide inventory into categories such as Available or Not available. It also can block certain activities in case of certain items that are not available in the inventory. For example you may want to prevent a worker from picking the items for any orders. This can be done by the inventory blocking feature that is used to prevent use of the items when they are not available. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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The License plate inventory dimension can be used to track inventory that is grouped together in a warehouse such as the pallet, bin, cart or individual item. If you want to use the warehouse management processes and apply a reservation hierarchy, you must set up at least one storage dimension group with at least one storage dimension.

Tracking dimension groups In warehouse management, the tracking dimensions are optional for Reservation hierarchies. They are typically used as batch control, or to serialize inventory. When you select to enable serial number dimension, you have an option to define when the serial number will be captured in the warehouse management process.

Unit sequence groups A unit sequence group is required to be assigned to any item that has a storage dimension group that uses warehouse management. The unit sequence group defines the sequence of units that can be used in warehouse operations. The sequence determines the order of units in which warehouse work is generated, and it is applied when work is created for quantities on a purchase order line or transfer order line. The unit sequence group should include units of measure that range from the smallest to the largest unit and can be used for the product in warehouse operations. There are several important features of the Unit sequence groups page: â&#x20AC;˘

Each unit of measure can be selected if you will allow that unit to be used in cycle counts.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

•

You can select a unit of measure as the default unit of purchase orders, production, or material consumption.

•

You can specify a default container type for the unit.

If you wish to receive larger than a pallet size and have it grouped, select The License plate grouping field. If this option is not selected, every single item above the pallet unit would be assigned its own license plate.

Inventory statuses The inventory status dimension can be used to divide items into categories, such as Available and Blocking. You can create an unlimited number of statuses. You can set the default for the inventory status to apply for all items, for items in one warehouse, or to one customer or vendor.

After you have set up an inventory status, you can set the default inventory status for a site, item, and warehouse. You can change the default status on the mobile device or on the purchase order, sales order, or transfer order line.

Item groups In the item groups you may need to set up the use of filters. Filters, which are used to further describe an item, can be also used to limit items for vendors and customers and can be made a required setup for a product. Filters allow users to categorize items, limit customers to items and then limit vendors to items. For example, you should use the filters if there is a requirement to only sell items that have that specific filter. There are four filter codes available in Finance and Operations. You must predefine the values for each filter code and you may consider renaming the filter codes from the generic labels of code one, code two, code three and four to match your business use of the filter code.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Filters are turned on and off in the Item groups page. The Use filter code option indicates that you'll be using the filter code for the item and that you manually set that filter code on the Released product page. You can also set up filter groups which will automatically default to filter codes based upon the item group selection when you create a new product. After you create the filter codes you can then configure items to be generally available, which overrides any customer or vendor specific filter codes, or you can add the filters to your customers and vendors.

Dock management profiles The dock management profile, helps you control inventory items for multiple orders, shipments, loads or waves at the docks when inbound items are received, or outbound items are loaded. The location profiles also specify whether a warehouse location is license plate controlled, can be cycle counted and whether it allows for mixing of inventory batches.

You can set up a dock management profile and assign it to a location profile to manage the mixing of inventory in specific warehouse locations.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

For example, when you stage product into a staging location, maybe you only want one order to be staged in each staging lane, or segregate items by shipment ID, load ID, order number, wave ID and work order type.

Configure the warehouse layout Link: https://docs.microsoft.com/en-us/learn/modules/configure-warehouse-management-indynamics-365-finance-ops/4-configure-warehouse-layout Warehouse management in Finance and Operations gives you flexible ways to define your warehouse layout to meet changing needs, so that you can achieve optimal warehouse efficiency. •

You can establish high-priority and low-priority storages areas for optimum placement of goods.

•

You can divide your warehouse into zones to accommodate various storage needs, such as temperature requirements, or various turnover rates for items.

•

You can specify warehouse locations on any level (for example, site, warehouse, aisle, rack, shelf, and bin position).

•

You can group locations by using physical capacity constraint settings.

•

You can control how items are stored and picked, based on query-defined rules.

To use warehouse management in Finance and Operations, you must create a warehouse and enable it for more advanced or specialized warehouse management activities. On the Warehouses page, select the Use warehouse management processes option.

After you have enabled the warehouse management processes, additional setups can be completed for general parameters, number sequences, locations, work, and so on.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

The warehouse zone is a defined area in a warehouse to which you allocate specific inventory items. It's a collection of different locations. As part of the process for enabling a warehouse layout, you must define warehouse zone groups, and zones, location profiles, location types, and locations. •

Zone groups - A logical or physical grouping of zones within a warehouse.

•

Zones - A logical or physical grouping of locations within a warehouse.

•

Location profiles - A logical or physical grouping of locations that have the same warehouse location process policies. For example, a mix of different item numbers can be stored there, and the same physical capacity constraints apply.

•

Locations types - A logical or physical grouping of the warehouse locations. For example, you can create a location type for all staging locations. Mandatory settings on the Warehouse management parameters page drive the process of defining staging location types and the final shipping location type.

•

Locations - The lowest level of location information. Locations are used to track where the onhand inventory is stored and picked in a warehouse.

The entities that you create to define your warehouse layout are used in the queries that you set up in work templates to drive work orders in the warehouse. Therefore, when you define the zones, location types, and so on, consider how different areas in the warehouse are used for different processes. Additionally, consider factors such as the physical characteristics of a particular area. For example, there might be areas where you can use only a certain type of forklift truck. Or, if your company has both production and finished goods within the same facility, you might want to create a single warehouse in Finance and Operations but then separate the two operations by creating two zone groups. Give your entities descriptive names, so that it's easy to identify them when you use them in template queries.

Zones and zone groups Zones allow you to categorize or group locations into a zone. Zones can be useful for allocating products based on zone area. The zone group is a logical grouping of different warehouse zones. Zones and zone groups are created for reporting. For example, you may have zones for mixed, frozen and returns. Locations, you can assign them to a specific zone with both picking and bulk locations.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Location formats The Location formats page is used to create a format for the ID that is used to identify a specific warehouse location. Location formats allow you to define the numbering system for your warehouse. Locations can have unique formatting depending on whether you use aisles, racks, shelves, and bins.

A location format can contain multiple segments.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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For example, you can create a format with two segments and use a period as the separator, such as A2R10-S2. In this example, the type of location format, the picking locations, will have a format of aisle, rack, and shelf. You would need to set up eight segments on the location format, with the following formats: •

Aisle prefix - The letter A (constant)

•

Aisle number - One-digit number

•

Separator - Dash (constant)

•

Rack prefix - The letter R (constant)

•

Rack number - Two-digit number

•

Separator - Dash (constant)

•

Shelf prefix - The letter S (constant)

•

Shelf number - One-digit number

The result of this process would mean picking locations would have a format such as A2-R10-S2.

Location profiles The location profile is where all the setups you have completed to this point are applied to a profile, which is then assigned to every location in your warehouse. In addition, there are several other rules that apply to a location: •

If license plate tracking is to be used

•

If there can be negative inventory

•

If cycle counting is allowed

For example, you can define location dimensions such as height, length, width, and so on for a common unit of measure such as pallets or boxes, or you can set the sizes by location volume. Therefore, if you have an area with different size racks or shelves, you would need to create a different location profile.

Location types Location types are used to define the locations your warehouse will be using. After you add a description to your locations, you can use the location types to filter the locations to only see those that you wish to use for item picking or put away processes.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Some examples of the usage for location types that might be used in a large warehouse, could be a location dedicated for inspections or returns, or dock door location, whether it be inbound, outbound or both. You can also define location types for specific items such as dry, fresh or frozen goods. You can have bulk storage locations to place all items for later transfer, or a staging location perhaps for bubble wrapping in the packing process prior to shipment of the goods.

Locations Inventory locations are used to track the whereabouts of your inventory in the warehouse. You can manually create locations or use a wizard to generate locations.

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Location stocking limits, location profiles, and fixed picking locations You must consider the physical layout of the warehouse, both to determine storage capacities (location stocking limits and location profiles) and to achieve optimal warehouse processes. You can create location stocking limits to define the maximum amount of a product that can be stored in a location. For example, bulk locations can hold three pallets, while picking locations can hold ten cases, and dock doors and staging locations have no limits.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Stocking limits require you to enter either a specific location or a location profile, but not both. There can be multiple items with stocking limits at the same location, and one item can also have limits at multiple locations. You can also specify stocking limits for products, product variants and container types. Finance and Operations does not allow more than the specified quantity of an item at a specific location. Location stocking limits help guarantee that work isn't created to request that inventory be put in a location that doesn't have the physical capacity to carry the inventory. For example, if some locations within a warehouse can hold only one pallet per location, location stocking limits can be enabled. The Quantity value can be set to 1, and the Unit value can be set to PL within a specific location profile grouping. If more advanced calculations are required to control the location capacity constraints, the location profile settings can be used. In this case, the weight and volume are considered when capacity calculations are done. To achieve optimal outbound processes, you should evaluate whether to use fixed picking locations and/or packing locations. Often, minimum/maximum replenishment is used for replenishment processes from a bulk area to the fixed picking locations, and multiple fixed picking locations can be enabled within the same warehouse and for product variants. Consider the flexibility that can you achieve by enabling

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

dedicated demand replenishment overflow locations that are used only for wave/load replenishment processing. To quickly create the locations within a warehouse, you can use the Location setup wizard. As part of this process, you can easily maintain the format of the location names.

Warehouse processes Link: https://docs.microsoft.com/en-us/learn/modules/configure-warehouse-management-indynamics-365-finance-ops/5-warehouse-processes As part of the configuration of the warehouse, it's important that you enable warehouse processes according to business requirements. The most important components that you must configure are wave templates, work templates, work pools, and location directives.

Wave templates Wave templates help enable the outbound "release to warehouse" process. When order lines are released (either directly from source documents, via batch job processes, or via loads that have already been created), the wave template functionality is used. You can create three types of wave templates: •

Shipping

•

Production order

•

Kanban

Parameters are used to define how far the system should automatically go in the outbound work processing. A wave template is selected based on the wave template sequence and criteria that are specified in the template. If a template is listed at the top of the sequence, the criteria in that template are checked first. If the criteria can be met, the wave template is processed. Otherwise, the criteria in the next template are checked, and so on. Therefore, it's a good idea to put the template that has the most specific criteria at the top of the wave template sequence list, so that it's processed first. For example, you want to process all the work for a preferred carrier today and temporarily delay processing of the work for other carriers. In this case, the wave template that selects work for that preferred carrier should be listed higher in the sequence than other templates. Otherwise, the work for other carriers might be processed before the work for the preferred carrier is completed. You must specify the wave process methods in each wave template. The methods that are available vary, depending on the wave template type.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Work templates Work templates define what work is performed, and how the work is done. Work templates can also contain a directive code that links to a location directive to determine where work is performed. Work templates include a query that specifies the criteria for the work. Each template must include at least one Pick operation and one Put operation to drive the basic work operation of transferring on-hand inventory from one location to another. If multiple workers must be able to process work for some of your warehouse operations, you might want to use the concept of staging for the inventory and separate the work execution into different work classes. Work template is used to create and process warehouse work at various stages in the warehouse management process. A valid work template should be specified as pick - put in pairs.

Scenario A purchase order is created and confirmed and sent to a vendor. The vendor, ships the items and they will be received in your inbound location. Then you need to pick the inventory items and put them away in a specific location which may be a picking location for a sales order.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

When the sales order is created, you pick the inventory items and perhaps put them away in a staging location, to be packed. Finally, you will pick the packed items and put them away on an outbound location to be shipped.

Work pools Work pools are used to organize warehouse work into groups. For example, you can create a work pool to classify work that occurs in a specific warehouse location. For all work types except counting, you can assign a work pool to a work template. For cycle counting, you can assign a work pool on the following pages: •

Cycle count plans

•

Cycle count thresholds

•

Cycle count work by location

•

Cycle count work by item

When you use work templates to create work, the work pool is automatically assigned to the work. Work pool IDs can also be used to limit the type of work that is directed to a warehouse worker, provided that this functionality is configured on the relevant mobile device menu item.

Location directives Location directives are used to direct the work transactions to the appropriate locations in the warehouse. In other words, they define where to pick and put. To make it easier and quicker to define the actions that are associated with each location directive line, use one of the predefined strategies. For example, you can use the Empty location with no incoming work strategy to search for free locations in a warehouse, or you can use FEFO batch reservation strategy for outbound sales picking. For example, in a sales order transaction, a location directive determines where the items will be picked and where the picked items will be put. You can use location directives to do the following: •

Put away incoming items.

•

Pick and stage items for outbound transactions.

•

Pick and put raw materials for production.

•

Replenish locations.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

You can use the Fixed locations usage page to assign a permanent or fixed location to an inventory item. You can assign multiple fixed locations to the same item, and multiple items can have the same fixed location assigned to them. Fixed locations are used to set up location directives and inventory replenishment. Location directives have several features that help with identifying pick and put locations for inventory movement: •

They are warehouse specific - If you have multiple warehouses that are set up the same, you can use the copy feature, but you still need to have location directives set up for each one.

•

There are 16 different types of work orders for which you can set up a location directive Some of these are standard types, such as purchase orders, sales orders, transfer issue, and transfer receipt. There are other types as well. For example, if you are a manufacturing company, there are work orders for finished goods put away, raw material picking, and Kanban picking. Other work orders include several types for cycle counting, return orders, and replenishment.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

There are three FastTabs that hold details about a location directive: •

Location directives - Specifies the site and warehouse.

•

Lines - Can separate directives based on different criteria. For example, it could separate directives based on the quantities of the transaction. As another example, you can have one directive if the purchase order being received is 1,000 items or less, and another for an amount greater than 1,000.

•

Location directive actions - Where you can specify how certain items or locations are being transacted in much greater detail. For example, if you are receiving items that need to be put into a refrigerated zone, the Location directive actions query can make that stipulation.

Disposition codes Disposition codes are a collection of rules that are used when damaged items are received.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

A disposition code is a field that is intended for use on a location directive for return merchandise. It describes what action will be taken upon processing of the return.

Reservation hierarchies Link: https://docs.microsoft.com/en-us/learn/modules/configure-warehouse-management-indynamics-365-finance-ops/6-reservation-hierarchies Reservation hierarchies, which is a mandatory setup in warehouse management, defines the sequence of reservations and dictates which items will be reserved based on priorities such as storage and tracking dimensions. For example, with batch items, typically the earliest dates of expiration are reserved first in the respective storage dimension from which they are being issued. The dimensions Site, Warehouse, Inventory status, Location, and License plate are all required levels in a reservation hierarchy. Additional dimensions such as Batch number and Serial number only need to be included if they are used in the associated tracking dimension group. The elements in a reservation hierarchy determine which dimensions must be recognized when the actual reservation occurs. Each dimension is required for the reservation and the order of the elements in the hierarchy is important when you make the reservation. However, you do not always have to provide all dimensions in the hierarchy when placing an order because the reservation system can identify and provide dimensions that are missing in the required sequence of the hierarchy. The location of an item is identified by the warehouse management system. If you want to make a dimension that is below a location required for the ordering process, this dimension must be moved above the location in the hierarchy. For example, if you want to reserve an item with a specific inventory status, you can specify Site, Warehouse, and Inventory status dimensions. A reservation cannot be based on only Site and Inventory status dimensions because items with the same inventory status might be in different warehouses on a site. The warehouse ranks higher in the hierarchy than inventory status. However, the site and the

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

inventory status that you specify will be enough information for the reservation system to determine a warehouse which has the items on hand.

If you have a product that customers usually order from the same batch number, then the batch number should be determined when the order is entered. In this case, the Batch number dimension must be listed above the Location dimension in the reservation hierarchy. To assign a reservation hierarchy to a released product, a storage dimension group and a tracking dimension group must be assigned to the product. Also, the physical tracking and storage dimensions that are listed for the product in the Storage dimension groups and Tracking dimension groups fields must correspond to the dimension fields in the reservation hierarchy. The dimension fields in the reservation hierarchy are listed in the Inventory reservation hierarchy page. If an item has no transactions, you can change the reservation hierarchy for the item. However, if an item has transactions, you must go through a separate process to change the reservation hierarchy.

Item setup When setting up items in Finance and Operations and you are not using warehouse management there are five fields the system requires to use the item: •

Item group

•

Item model group

•

Storage dimension

•

Tracking dimension

•

Sales unit (of measure)

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

When the item's storage dimension is assigned to a storage dimension that uses warehouse management, several more fields become required: •

Reservation hierarchy

•

Unit sequence group

•

Unit conversions (if the Unit sequence group includes multiple units of measure)

•

Filters (if required by the Item group)

Exercise - Configure warehouse management Link: https://docs.microsoft.com/en-us/learn/modules/configure-warehouse-management-indynamics-365-finance-ops/7-exercise-configure-warehouse-management In this exercise you will configure warehouse management elements.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Create a storage dimension group As a warehouse manager in USMF, you need to create a new storage dimension group to use with warehouse management. 1.

In company USMF, go to Product information management > Setup > Dimension and variant groups > Storage dimension groups.

Click New to create a new storage dimension group.

Type 'LASD' in the Name field.

Type 'Los Angeles storage dimension' in the Description field.

Enable the Use warehouse management processes option to enable warehouse management.

Click Save in the Action Pane and verify that the Site, Warehouse, Location, Inventory status, and License plate dimensions are active.

Close the page.

Create a tracking dimension group As a warehouse manager in USMF, you need to create a new tracking dimension group that will not track serial numbers or batch numbers. 1.

Open Product information management > Setup > Dimension and variant groups > Tracking dimension groups.

Click New to create a new Tracking dimension group.

Type 'LANT' in the Name field.

Type 'Los Angeles no tracking' in the Description field.

Select None in the Capture serial field.

Make sure the Active check box is not selected for any dimensions.

Click Close.

Create a unit sequence group As a warehouse manager in USMF, you need to create a new unit sequence group for each, box, and pallet (EA, BOX, PL), which will have license plate grouping.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Open Warehouse management > Setup > Warehouse > Unit sequence groups.

Click New to create a unit sequence group.

Type 'EBP' in the Unit sequence group ID field.

Type 'EachBoxPallet' in the Name field.

On the Line details FastTab, click New to create the sequence lines.

In the Unit field, select ea.

Select the License plate grouping check box.

Select the Default unit for purchase and transfer orders check box.

Click New on the Line details FastTab to add a line.

10. In the Unit field, select Box. 11. Select the License plate grouping check box. 12. Click New on the Line details FastTab to add a line. 13. In the Unit field, select PL. 14. Select the License plate grouping check box. 15. Close the pages.

Create a warehouse and assign a name and site As a warehouse manager in USMF, you need to configure a new warehouse named "MainDC" in Site "1" for use within company USP2. 1.

Open Warehouse management > Setup > Warehouse > Warehouses.

Click New to create a new warehouse.

Type 'MainDC' for the warehouse.

Select Site 1 to relate the warehouse to.

Assign warehouse management attributes. 1.

Expand the Master planning FastTab and select the Calendar for the warehouse.

Expand the Warehouse management FastTab.

Select the Use warehouse management processes check box.

Select the Allow pallet moves during cycle counting check box.

Select the Decrement load line check box.

Close the pages.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Create location types As a warehouse manager in USMF, you need to create new location types for the warehouse, which you will name "RCV," "PICKING," and "FRESH." 1.

Open Warehouse management > Setup > Warehouse > Location types.

Click New to create a new location type.

Type 'PICKING' as the identifier in the Location type field.

Type 'Picking' in the Description field.

Click New to create another new location type.

Type 'RCV' as the identifier in the Location type field.

Type 'Receiving' in the Description field.

Click New to create another new location type.

Type 'FRESH' as the identifier in the Location type field.

10. Type 'Fresh' in the Description field. 11. Close the pages.

Create location formats As a warehouse manager in USMF, you need to create a new location format for Aisle-Rack-Shelf, AisleShelf, and Bay door 1.

Open Warehouse management > Setup > Warehouse > Location formats.

Click New to create a new location format.

Type 'ARS' in the Location format field.

Type 'Aisle - Rack - Shelf' in the Name field.

Add segments to the location format. 1.

On the Details FastTab, click New to create a new line.

In the Segment description field, type Aisle Prefix.

Type '1' in the Length field.

On the Details FastTab, click New to create a new line.

In the Segment description field, type 'Aisle Number'.

Type '2' in the Length field.

On the Details FastTab, click New to create a new line.

In the Segment description field, type 'Rack Number'.

Type '2' in the Length field.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

10. On the Details FastTab, click New to create a new line. 11. In the Segment description field, type 'Shelf Prefix'. 12. Type '1' in the Length field. 13. On the Details FastTab, click New to create a new line. 14. In the Segment description field, type 'Shelf Number'. 15. Type '2' in the Length field. 16. Click New to create a new location format. 17. Type 'RS' in the Location format field. 18. Type 'Rack - Shelf' in the Name field. 19. On the Details FastTab, click New to create a new line. 20. In the Segment description field, type 'Rack Prefix'. 21. Type '1' in the Length field. 22. On the Details FastTab, click New to create a new line. 23. Type 'Baydoor' in the Location format field. 24. Type 'Baydoor Only' in the Name field. 25. On the Details FastTab, click New to create a new line. 26. In the Segment description field, type 'Baydoor Prefix'. 27. Type '1' in the Length field. 28. On the Details FastTab, click New to create a new line. 29. In the Segment description field, type 'Baydoor Number'. 30. Type '2' in the Length field. 31. Close the pages.

Create a dock management profile As a warehouse manager in USMF, you need to set up a new dock management profile. 1.

Open Warehouse management > Setup > Warehouse > Dock management profiles.

Click New to create a dock management profile.

Type 'SHIPSTAGE' in the Dock management profile ID field.

Type 'Staging locations unique per shipment' in the Description field

Select Shipment ID in the Inventory types that should not be mixed field.

Select the Assume empty location for new wave check box to ensure that the location is empty before adding new items to the location.

Close the pages.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Create new location profiles As a warehouse manager in USMF, you need to create new location profiles for picking, staging, receiving, bulk, and fresh 1.

Open Warehouse management > Setup > Warehouse > Location profiles.

Click New to create a new Location profile.

In the Location profile ID, enter 'PICKING'.

In the Name field, enter 'Picking Locations'.

On the General FastTab select ARS in the Location format field.

On the General FastTab select Picking from the Location type field.

Select the Use license plate tracking check box.

Select the Allow mixed items check box.

Select the Allow cycle counting check box.

10. Click New to create a new Location profile. 11. In the Location profile ID enter 'STAGING'. 12. In the Name field, enter 'Staging locations'. 13. On the General FastTab select Baydoor in the Location format field. 14. On the General FastTab select Staging in the Location type field. 15. Select the Use license plate tracking check box. 16. Select the Allow mixed items check box. 17. Click New to create a new Location profile. 18. In the Location profile ID field, enter 'RECEIVING'. 19. In the Name field, enter 'Receiving locations'. 20. On the General FastTab select Baydoor in the Location format field. 21. On the General FastTab select Recv in the Location type field. 22. Select the Use license plate tracking check box. 23. Select the Allow mixed items check box. 24. Click New to create a new Location profile. 25. In the Location profile ID field enter 'BULK'. 26. In the Name field, enter 'Bulk Locations'. 27. On the General FastTab select RS in the Location format field. 28. Select the Use license plate tracking check box. 29. Select the Allow mixed items check box. 30. Click New to create a new Location profile. 31. In the Location profile ID field, enter 'FRESH'. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

32. In the Name field, enter 'Fresh locations'. 33. On the General FastTab select ARS in the Location format field. 34. On the General FastTab select Fresh in the Location type field. 35. Select the Use license plate tracking check box. 36. Select the Allow mixed items check box. 37. Close the pages.

Exercise - Configure reservation hierarchies Link: https://docs.microsoft.com/en-us/learn/modules/configure-warehouse-management-indynamics-365-finance-ops/8-exercise-configure-reservation-hierarchies As a member of the Finance and Operations project team for company USP2, you need to create a new reservation hierarchy to help you manage oranges. The oranges will be tracked using site, warehouse, location, and batch numbers. Use the information provided to create a new reservation hierarchy.

Create a reservation hierarchy. 1.

In company USP2, go to Warehouse management > Setup > Inventory > Reservation hierarchy.

Click New to create a new reservation hierarchy.

Enter 'Oranges' in the Name field.

Enter 'Orange reservations' in the Description field.

Select dimensions for the reservation hierarchy. 1.

In the Selected pane, select the Serial number check box.

Click the left directional button to move the dimensions to the Available pane.

Repeat steps 1-2 for Owner.

Click OK.

Close the pages.

Apply the reservation hierarchy to a new products You need to create a new product in company USP2 called Low sugar orange juice, item number B0004. The new item will track site, warehouse, location, and batch numbers. The costing for the product will use the FEFO methodology and the posting will use the standard orange juice postings. Use the information provided to create a new item.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Create a product. 1.

In USP2, open Product information management > Products > Released products.

Click New to create a new product.

Enter the following information in the entry fields:

•

Product number - B0004

•

Product name - Low sugar orange juice

•

Item model group - FEFO

•

Item group - OrgJuice

•

Storage dimension group - Ware

•

Tracking dimension group - Batch-Phy

•

Reservation hierarchy - Oranges

Click OK.

Configure advanced warehousing settings. 5.

Expand the Warehouse FastTab.

Select GAL in the Unit sequence group ID field.

Click Validate in the Maintain group of the action pane.

Close the pages.

Exercise - Configure disposition codes and location directives Link: https://docs.microsoft.com/en-us/learn/modules/configure-warehouse-management-indynamics-365-finance-ops/9-exercise-configure-disposition-codes-location-directives You are asked to set up two new disposition codes. The first will be named "Ready," which will be available, and the second will be named "Not ready," which will be blocked for use with warehouse management. 1.

In company USP2, go to Warehouse management > Setup > Mobile device > Disposition codes.

Click New to create a disposition code.

In the Disposition code field, enter 'Ready'.

In the Inventory status field, select Available.

Click New to create a disposition code.

In the Disposition code field, enter 'Not ready'.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

In the Inventory status field, select Blocking.

Close the pages.

Create inbound location directives You need to configure a new inbound location directive that will receive goods to the warehouse and then one that will put away goods in bulk locations. 1.

Open Warehouse management > Setup > Location directives.

Select Purchase orders in the Work order type field.

Click New in the action pane to create a new location directive.

Type 'MAIN DC' in the Name field.

Select Put in the Work type field. This is because we want to put the received items on purchase orders away.

Select 3 in the Site field.

Select 30 in the Warehouse field.

Select Available in the Directive code field.

Add lines to the location directive. 1.

Click New in the Lines FastTab.

Verify the Sequence number is 1.

Type '200' in the To quantity field.

Select ea in the Unit field.

Select None in the Locate quantity field.

Click Save in the Action Pane.

Click New in the Location directive actions FastTab.

Type 'Fresh' in the Name field.

Click Save in the action pane.

Add location directive actions to the location directive. 1.

Click Edit query in the action pane.

Click Add on the Query page.

Select Purchase Orders in the Table column.

Select Location in the Field column.

Select 30 in the Criteria column.

Click OK.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Close the Location directives page.

Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/configure-warehouse-management-indynamics-365-finance-ops/10-configure-warehouse-management-quiz

Configure warehouse management in Dynamics 365 for Finance and Operations knowledge check 1.

To use the warehouse management processes and apply a reservation hierarchy, what must you do? a.

Set up a storage dimension group.

b. Set up a storage dimension. c.

Set up a storage dimension group and at least one storage dimension.

d. Set up two storage dimension groups. 2.

Which of the following statements is true about tracking dimensions? a.

A tracking dimension group is a required field for every product.

b. A tracking dimension group is always optional for products. c.

A tracking dimension group cannot be added to products.

d. A tracking dimension group is not used in Warehouse management. 3.

What is the primary purpose of an item group? a.

To keep users from creating duplicate products

b. To indicate the ledger account where transactions of the items assigned are posted c.

To create general ledger accounts

d. To create forecasts 4.

What is a location format? a.

A type of warehouse location

b. A naming convention for a location c.

A setting to help control inventory items

d. A defined area in a warehouse 5.

On the Dock management profiles page, you can specify inventory types that should not be mixed. If you select Order number in this field, what does that mean? www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Only one order number can be used at a dock location at a time.

b. Order numbers must be kept in separate stacks at the dock location. c. 6.

Order numbers cannot be used at dock locations.

You need to configure a reservation hierarchy for your client. The client requires that all items be controlled by the batch number and this information must be scanned on the mobile device at the time of picking the sales or transfers. The client does not require the batch number to be specified during the sales or transfer order entry. How should you configure the reservation hierarchy? a.

Do not include the batch number in the list of dimensions.

b. Include the batch number first in the list of dimensions. c.

Include the batch number above the location dimension in the list of dimensions.

d. Include the batch number below the location dimension in the list of dimensions.

Summary Link: https://docs.microsoft.com/en-us/learn/modules/configure-warehouse-management-indynamics-365-finance-ops/11-configure-warehouse-management-summary In this module you learned that warehouse management is the administration and management of item flow and inventory in a company's warehouses and storage facilities. It helps streamline item flow through the warehouse. When configured, warehouse management in Finance and Operations makes the work at the warehouse more efficient and manageable. The main goals of warehouse management are as follows: •

Optimize the warehouse layout.

•

Increase the warehouse efficiency.

•

Improve visibility into the supply chain.

•

Achieve a complete overview of the inventory.

Warehouse management exchanges information with many other functional areas in Finance and Operations to help improve your overall business performance.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Module 2: Configure Mobile Devices for Warehouse Management This topic explains how to configure Mobile device setup for Warehouse Management in Finance and Operations. Lessons •

Introduction

•

Configure mobile devices

•

Practice Lab

•

Module summary

In this module you learned to: •

Create new work classes

•

Configure mobile devices

•

Configure menu items for activities and inquiries

•

Configure menu items to create work for another worker or process

•

Configure menu items to process existing work

•

Define the layout of mobile device menus

•

Configure the basic look and feel of mobile devices

•

Create mobile device users

•

Set up label layouts and define settings for printing labels

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Module 3: Use Warehouse Management Before you can use the Mobile device for Warehouse management you need to install the application. This topic explains how to use warehouse management processes in Finance and Operations. Lessons •

Introduction

•

Configure mobile device

•

Inbound operations

•

Cycle counting

•

Transfers and replenishment

•

Outbound oeprations

•

Cluster picking

•

Packing and containerization

•

Practice Labs

•

Module summary

In this module you learned how to perform: •

Inbound operations

•

Outbound operations

•

Cluster Picking

•

Packing and containerization

•

Cycle counting

•

Transfers and Replenishment

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Work with warehouse management in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/ The Warehouse management module in Dynamics 365 for Finance and Operations lets you manage warehouse processes in manufacturing, distribution, and retail industries. It has a wide range of features to support the warehouse facility at an optimal level, at any time. Warehouse management is fully integrated with other business processes in Finance and Operations such as transportation, manufacturing, quality control, purchase, transfer, sales, and returns. In this module you will learn how to perform: •

Inbound operations

•

Outbound operations

•

Cluster picking

•

Packing and containerization

•

Cycle counting

•

Transfers and replenishment

Configure mobile device Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/1configure-mobile-device Before performing any of the Warehouse management processes with a mobile device, you must configure it for Finance and Operations. There are five basic areas in the setup: •

Work classes - Are used to define the types of work orders that a mobile device can process.

•

Device menus - Are used to outline which options are available and the navigation for those options on each device.

•

Device layout - Allows you to define information such as font and color, map keyboard shortcuts, and determine the date format to display on the device.

•

Device users - Defines the people or workers that can access the mobile devices and what level of access is required.

•

Print settings - Allows you to control the layout, printer, and template to be used for printing labels.

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Work classes Work classes are used to specify the work orders that a mobile device can process if the menu item will process existing work.

For example, a work order could include purchase orders, transfers and receipts, replenishment, or return orders. The menu item will only process work for the specified type of work order.

Device menus The menu contains the menu items that a warehouse worker will use to perform their work. You create the structure of the mobile device menu by adding menu items and menus. When you add a menu, its menu items are also assigned.

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You can configure menu items to do the following: •

Process an inquiry or perform an activity, such as print a label, generate license plate numbers, start a production order, or quickly look up information about items in a location.

•

Create work that will be performed through another process. For example, receiving an item for a purchase order can create put away work for another worker.

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Perform work that was created by another process. This is called existing work. For example, performing put away work that was created when an item was received for a purchase order.

The menu items that appear on the menus on a warehouse mobile device are configured on the Mobile device menu items page. Because the menu items can be put onto different menus, it's easy to configure menu structures so that only specific types of work are exposed to specific users.

Device users You need to set up a user account for a warehouse worker to access a mobile device. This involves setting up a worker as a work user, selecting the mobile device menus that the worker can access and specifying their log-on information. You can create multiple work users for each worker if they're going to need to see and have different permissions in different locations.

Print settings for labels You can set up the mobile device menu items that enable a worker to use their mobile device to print or reprint labels. An important part of the warehouse process is the printing of labels for the items that are received so that they can be identified with a scanner for future use. Printing is typically done as you complete the work of, such, picking, and receiving.

Install and configure Finance and Operations - Warehousing Finance and Operations - Warehousing is an application available on Google Play Store and Windows Store. For the current version of Finance and Operations, this app is provided as a standalone component, which means self-deployment on devices used for warehouse tasks. To use the app in your Finance and Operations environment, you must download the app on each device and configure it to connect to your environment.

Create a web service application in Azure Active Directory To enable the app to interact with a specific Finance and Operations server, you must register a web service application in an Azure Active Directory for the Finance and Operations tenant. For security reasons, we recommend that you create a web service application for each device that you use. To create a web service application in Azure Active Directory (Azure AD), complete the following steps: 1.

In a web browser, go to https://portal.azure.com

Enter the name and password for the user who has access to the Azure subscription.

In Azure Portal, in the left navigation pane, click Azure Active Directory.

Ensure that the Active Directory instance is the one that is used by Finance and Operations.

In the list, click App registrations.

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In the top pane, click New application registration.

The Add application wizard starts.

Enter a name for the application and select Web application/web API. Enter the sign-on URL, which is your web app URL. This URL is the same as your deployment URL, but oauth is added to the end.

Click Create.

10. Select the new app in the list. 11. Remember the Application ID, you will need it later. The Application ID will later be referred to as the Client ID. 12. Click Keys in the Settings pane. Create a key by entering a key description and a duration in the Passwords section. 13. Click Save and copy the key. This key will later be referred to as the Client secret.

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Create and configure a user account in Finance and Operations Create a Finance and Operations user that corresponds to the warehousing app user credentials. Then associate your Azure Active Directory application with the warehousing app user. To enable Finance and Operations to use your Azure AD application, you need to complete the following configuration steps: 1.

In Finance and Operations, go to System administration > Common > Users.

Create a new user.

Assign the Warehouse mobile device user.

In Finance and Operations, go to System administration > Setup > Azure Active Directory applications.

Create a new line.

Enter the Client ID (obtained in the last section), give it a name, and select the previously created user. We recommend that you tag all your devices so that you can easily remove their access to Finance and Operations from this page in case they are lost.

Configure the application You must configure the app on the device to connect to the Finance and Operations server through the Azure AD application. To do this, complete the following steps: 1.

In the app, go to Connection settings.

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Enter the following information: •

Azure Active directory client ID - The client ID is obtained in step 11 in "Create a web service application in Active Directory".

•

Azure Active directory client secret - The client secret is obtained in step 13 in "Create a web service application in Active Directory".

•

Azure Active directory resource - The Azure AD directory resource depicts the Finance and Operations root URL. Note: Do not end this field with a forward slash character (/).

•

Azure Active directory tenant - The Azure AD directory tenant used with the Finance and Operations server: https://login.windows.net/your-AD-tenant-ID. For example: https://login.windows.net/contosooperations.onmicrosoft.com. Do not end the URL field with a forward slash character (/).

Company Enter the legal entity in Finance and Operations to which you want the application to connect.

Select the Back button in the top-left corner of the application. The application will now connect to your Finance and Operations server and the log-in screen for the warehouse worker will display.

Scan bar codes using a camera in Finance and Operations - Warehousing In the Display settings of the Warehousing application, you can select if the camera should be used for bar code scanning. If you enable Use the camera as scanner, you can use the camera on every input field that has the preferred input mode set to Scanning. To control whether an input field should be scannable, on the Warehouse app field names page in Finance and Operations, set Preferred input mode to Scanning. When this option is selected, a camera can be used for scanning in the Warehousing app. The most common bar code formats are supported, including Code 128, Code 39, Code 93, EAN-8, EAN13, UPC-E, UPC-A, and QR codes.

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The Camera page will be initiated on each page where the input field has the preferred input mode set to Scanning, when you are on the Camera page. Use the following options to navigate: •

Click the Back button to go back to the Task and details page.

•

Click the pencil on the Task and details page to go to the page where you can type input manually.

•

Click the camera on the Task and details page to go back to the Camera page.

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On the Camera page, when you click the Camera button, it will appear dimmed while trying to identify a bar code. If a bar code is not identified within 5 seconds, the process will time out and the Camera button will become available again. You will then be able to try to scan a bar code again. When you aim the camera at a bar code, keep the bar code aligned within the brackets for best result. When a bar code is scanned successfully, the result will be processed, and you will be taken to the next step. If the next step contains another input field with the preferred input mode set to Scanning, the camera page will start again. If the next step is not a scanning field, then the Camera page will not be initiated.

Remove access for a device In case of a lost or compromised device, you must remove access to Finance and Operations for the device. The following steps describe the recommended process to remove access. 1.

In Finance and Operations, go to System > administration > Setup > Azure Active Directory > applications.

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Delete the line that corresponds to the device to which you want to remove access. Remember the Client ID used for the removed device, you will need it later.

Click the Active Directory icon on the left menu, and ensure that you are in the correct directory.

In the list, click App registrations, and then click the application that you want to configure. The Settings page will appear with configuration information.

Ensure that the Client ID of the application is the same as in step 2 in this section.

Click the Delete button in the top pane.

Click Yes in the confirmation message.

Configure work type menu items Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/2configure-work-type-menu-items

Mobile device process This list illustrates mobile device processes in Warehouse management: 1.

Open the device

Access the menu

Enter data

Report and journal are produced

Reported as finished

Setup mobile device for warehouse management Mobile device menu items have three different categories: •

Indirect - A list of Activity code options then becomes available, so that you can select the type of inquiry or activity that the menu item is for.

•

Work (Set Using existing work to No) - A list of Work creation process options then becomes available.

•

Work (Set Using existing work to Yes) - Additional fields might be available for menu items, depending on the mode that you select for the menu item, and whether the menu item is used to perform existing work.

If the Mode field for a menu item is set to Indirect, you can create a menu item to perform a general activity or inquiry that doesn't create work. Examples include reprinting license plate labels and an inquiry about the items in a location.

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The following table shows a list of the menu item options for indirect activities: Options

Description

None

This default value does not enable an activity or inquiry.

About

View information about the system, such as the version number, warehouse ID, and the worker who is currently logged in.

Change warehouse

Change the warehouse that a worker is logged on to.

Location enquiry

View information about all items and quantities for a location.

License plate enquiry

View the quantity of items on a license plate or pallet, and the location of the license plate or pallet.

Start production order

Start a production order.

Production scrap

Enter the percentage of scrap that was created during production.

Production last Indicate that the last pallet of items has been produced for a production order, and that pallet the status of the production order must be updated to reported as finished. Item inquiry

Scan an item to determine where it is in the warehouse. The inquiry returns all locations and quantities for the scanned item.

Reprint label

Reprint a license plate label.

License plate build

Create a parent license plate by combining multiple license plates in the same location. This is useful if you move multiple license plates at the same time. After the parent license plate is moved, you must perform a license plate break before you can pick items from each license plate.

License plate break

Break up a license plate build so that you can pick items from the license plates that were in the build.

If you’re using Transportation management, register that a driver has arrived and start Driver check in the appointment. You can note the trailer number, tractor number, driver name, license number, and location. Driver check out

If you’re using Transportation management, register that a driver is ready to leave, and end the appointment. You can scan the ID of the load, shipment, and appointment.

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Description

Flush number Delete number sequence numbers from the cache. This activity is typically performed by sequence cache a system administrator. Change batch disposition

Select this check box to allow a worker to specify a batch disposition code for an item and batch. This selection will override the disposition code that is specified for the batch.

You can set up a menu item that creates work for another worker after an initial action is performed on the mobile device.

For example, when one worker uses a mobile device to receive an item, put-away work is created for another worker. To set up a menu item that creates work, on the Mobile device menu items page, in the Mode field, select Work. www.dynamicscompanions.com Dynamics Companions

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The following table shows a list of the menu item options when you are not using existing work: Work order

Option

Description

Purchase order

Purchase order line receiving

Receive and stage items for a purchase order line, and create put away work for another worker.

Purchase order line receiving and put away

Receive and put away items for a purchase order. The same worker can perform both actions.

Note:

The Purchase order line receiving and Purchase order line receiving and put away processes are typically used with a printed receiving worksheet that contains a bar code for the purchase order line ID, and the items and quantities.

Purchase order item receiving

Receive and stage items for a purchase order by registering the SKU number for the item. Create put away work for another worker.

Purchase order item receiving and put away

Receive an item for a purchase order by registering the SKU number for the item, and put the item away. The same worker can perform both actions.

Receive an inbound License plate load by using the receiving license plate ID. Return order

Transfer order

Receive an inbound load by using the license plate ID.

Return order receiving

Receive and stage items for a return order by registering the RMA number, and create put away work for another worker.

Return order receiving and put away

Receive and put away returned items. The same worker can perform both actions.

Note:

A license plate number and a disposition code must be specified for return order receipts.

Transfer order item receiving

Receive and stage items for a transfer order, and create put away work for another worker.

Transfer order item receiving and put away

Receive and put away items for a transfer order. The same worker can perform both actions.

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Work order

Production

Inventory movement

Cycle count

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Option

Description

Transfer order line receiving

Receive items for a transfer order line, and create put away work for another worker.

Transfer order line receiving and put away

Receive and put away items for a transfer order line. The same worker can perform both actions.

Report as finished

Indicate that a production is finished.

Report as finished and put away

Indicate that a production order has been processed and the items have been moved to a put away location.

Kanban

Receive items for a Kanban, and create put away work for another worker.

Kanban put away

Receive and put away items for a Kanban. The same worker can perform both actions.

Movement

Move items from one location to another. The worker specifies the location that the items are moved from and where they are moved to.

Quarantine

Make damaged or missing inventory items unavailable for warehouse processes.

Movement by template

Move items from one location to another in a semi-automated manner. The worker selects the location to move items from, and Microsoft Dynamics AX uses the location directive to determine where to move it to.

Warehouse transfer

Transfer items from one warehouse to another.

Adjustment in

Increase the quantity of items in inventory. Specify the location, license plate, item, quantity, unit of measure, and status of the inventory.

Adjustment out

Reduce the quantity of items in inventory. Specify the location, license plate, item, quantity, unit of measure, and status of the inventory.

Spot cycle counting

Start a cycle count for a location. The worker must count all items in the location.

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In addition to setting up menu items to create warehouse work, you can set up menu items to process work that has already been created. Set the Mode field to Work, and select the Use existing work option.

Some additional options then become available on the General tab. You can control access to the menu item by assigning one or more work classes on the Work class FastTab. The work classes define the work that the menu item can process. The work class can also be used to grant access to specific user roles or to separate processing for different types of operations. The following table describes the options that are available. The option can be chosen under the Directed by field in the Mobile device menu items page. The following table shows a list of the menu item options when you are using existing work: Options

Description

None

This default value does not process work.

System directed

The system controls the type of work that is assigned to a worker and the sequence in which to perform it. When you select this option, you can click System-directed work to open the System-directed sorting order form, where you can specify the sequence of the work.

User directed

The worker selects the work to perform and the sequence in which to perform it.

User grouping

The worker manually groups work. This can be used, for example, when a worker can pick multiple items, such as pallets, and move the items to the putaway location at the same time.

System grouping

The system groups work for the worker based on a specified field. If you select this option, the following fields are required: System grouping field; Select the field that the worker will

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Description scan to group the work. System grouping label; Enter text to inform the worker about what to scan to group the work.You can click System-directed work to open the System-directed sorting order form, where you can set up sorting criteria for the work. The sorting criteria control the order in which the worker will perform the work.

Validated user directed

The worker selects the work to perform when the work is associated with a larger entity, such as a load or shipment. The worker determines the order in which to pick the items. If you select this option, you must select the following: Validated user directed field; Select the field that the worker will scan to group the work. Validated user directed label; Enter the text that will inform the worker about where to scan when picking work is grouped by the system.

Cluster picking

The worker groups work into clusters. Clusters enable workers to pick items from a single location for multiple work orders at the same time.

The worker selects a zone, work pool, or location, and the system will assign work based on Cycle count the select. If you select this option, you can also click Cycle counting to specify additional information to display and specify the number of times the worker must repeat the count if grouping a difference is found. Additional menu items options are available on the Mobile device menu items page. The options vary, depending on the process that you're configuring the menu item for. The following table describes these options. Field

Description

Select this option to let users put items for a work order into more than one target license plate. This option is useful when, for example, a target license plate is full, and the worker must add the remaining items to another license plate. The worker can click Allow splitting Full to indicate that the license plate is full and stop receiving picking work for it. The put of work location for the picked items is then displayed, and the picking work that has already been completed is moved to a new work order. The remaining picking work for the target license plate stays on the original work order.

Anchoring

Select this option to let workers specify a location that overrides the suggested staging or loading location. All the remaining put-away work is directed to the new location. This option is useful when, for example, a worker who must put items for order 1 in a staging location by Dock 1 can’t, because a previous load hasn’t cleared the location. Instead of waiting for the Dock 1 staging location to become available, the worker can decide to use the staging location for Dock 2. In this case, the worker overrides the suggested staging location. The put location for all remaining items for the work order is then updated to the Dock 2 staging location. If you select this option, you must set the Anchor by field.

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Field

Description

Anchor by

If you're using anchoring, you must specify whether to anchor by shipment or by load.

Select the work audit template that will interrupt the work process for this menu item so that another operation can be performed. For example, if this menu item is for inbound Audit template work, the audit template might require that the worker check the temperature in the ID delivery container. The point at which the process is interrupted is specified on the audit template. This point can be, for example, when work is started or completed, or when its status changes.

Cluster profile ID

Select the cluster profile to use for cluster picking. The cluster profile includes settings such as whether to create clusters automatically, the names of positions and the number of work units that they can be assigned, when to break clusters into individual units, and whether verification is required. This field is available only if Cluster picking is selected in the Directed byfield.

Count total item quantity first

Select this option to require that a worker count the total quantity first during a count. If a difference is found, the worker must provide additional information, such as the license plate number, batch number, and serial numbers.

Create movement

Select this option to let a worker create work for a movement, but without requiring that the worker perform the work immediately. This option is useful if, for example, a quality inspection has been completed, and the inspector wants the item to be moved from the quality inspection area.

To use a specific location directive, select the directive code that is associated the Directive code location directive. This field is available when you create work and the work creation process is Movement by template. Disable cycle count thresholds

Select this option to ignore the cycle count thresholds. If you select this option, cycle count work isn't created when threshold values are exceeded.

Display batch disposition code

Select this option to display batch disposition codes. For example, you can display batch disposition codes when you receive a returned batch. Workers can then evaluate the status or quality of a batch, and select the appropriate code. The rules on the batch disposition code determine whether the batch will be available to other warehouse processes. If you don't select this option, one of the following batch disposition codes is used: If you receive a new batch number, the default batch disposition code that is specified on the item model group. The batch disposition code that is already assigned to the batch

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Field

Description

Display disposition code

Select this option to display disposition codes. For example, you can display disposition codes when you receive return items. Workers can then evaluate the status or quality of the items, and select the appropriate code. The rules on the disposition code determine whether the items will be available to other warehouse processes.

Display inventory status

Select this option to display the status of items in inventory. This option is available for all menu items that use existing work, except cycle counting.

Display summary of pick screen

Select this option to display a summary of picking work for the selected work order. The summary is displayed until the first work line is processed for the work order.

Generate license plate

Select this option to generate a unique license plate number, based on the number sequence selection. For example, you can generate a license plate number for items that are received for purchase orders.

Group put away

Select this option to group the put-away work. This option is available when the work was grouped either by the worker or by Microsoft Dynamics 365 for Finance and Operations. When the worker has finished all the picking work in the group, put-away work is created for the same group.

Inventory adjustment types

Select the inventory adjustment type that determines the inventory counting journal that is used to post the adjustment, and whether to remove reservations. This field is available only for the Adjustment in or Adjustment out work creation process.

Select this option to let workers who are reporting a quantity as finished for a Override batch production order enter a batch number that differs from the batch number that is number assigned to the production order. Select this option to let workers specify a target license plate number that differs from Override target the suggested target license plate. Use this option when the first pick for a work order is license plate for the entire quantity of an item on a license plate. This option is useful when, for example, a pallet is reused.

Pick and pack

Select this option to let workers combine work for a sales order or load into a single work unit. A worker can perform work only for the sales order or load. This option is useful when, for example, you must increase a quantity for a sales order after the load, shipment, and work have been created for the sales order. This option is available when the menu item uses existing work, and the work is directed by the user or system.

Pick oldest batch

Indicate whether the worker must pick the oldest batch in a location first. The following options are available: None – The worker can pick any batch in the location. The worker receives no message. Warn – The worker can pick any batch in the location, but he or

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Description she receives a warning message if a batch isn't the oldest batch. Force – The worker must pick the oldest batch in the location. The worker receives an error message if a batch isn't the oldest batch. Note: This option is relevant only if Batch number is lower than Location in the reservation hierarchy that is assigned to the item.

Print label

Select this option to let workers print license plate labels.

Select the field that determine how Microsoft Dynamics 365 for Finance and Operations will group picking work for workers. For example, if you select the ShipmentId field, the System worker will scan the shipment ID to group the picking work. All work for the shipment is grouping field then assigned to the worker. This field requires that you create a menu item to use existing work that is grouped by the system. You must also enter text in the System grouping label field to instruct the worker what to scan. Enter the text that will instruct the worker what to scan when picking work is grouped by Microsoft Dynamics 365 for Finance and Operations. For example, if you're using the System ShipmentId field to group picking work by shipment, you might enter Shipment ID in the grouping label field. This field requires that you create a menu item to use existing work that is grouped by the system. You must also select the field to group by in the System grouping field field. Use default data

Select this option to enable the Default data button on the Action Pane, where you can select fields to display data that a worker typically requires in his or her daily work. This option is useful if, for example, a worker often picks items from the same location. You can select the From location field to display the location by default.

Select the field that the worker will scan to group the work. For example, if you select Validated User LoadId, a worker can pick any work that is associated with a selected load. You must also Directed Field enter text in the Validated User Directed Label field to instruct the worker what to scan. Enter the text that will instruct the worker what to scan when picking work is grouped by Validated User a validated user-directed field. For example, if you’re using the LoadId field to group Directed Label picking work for a load, you might enter Load ID in the field. Select the work template that will create the work for a process. For example, if you receive an item for a purchase order, the put-away work will be generated based on the Work template work template. If you don't select a work template, Microsoft Dynamics 365 for Finance code and Operations assigns a template, based on query criteria. For more information on work templates, see Controlling warehouse work with work templates and location directives.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Require workers to confirm the product, location, or quantity when they pick items You can set up work confirmations that require that a worker use a mobile device to register the location or quantity when he or she performs work in the warehouse. Work confirmations help guarantee that the worker is at the correct location or is handling the correct quantity of items. You can also enable Finance and Operations to automatically confirm the worker's registration. If you enable automatic confirmation, you can't also require confirmations for location or quantity. Work confirmations also include products and product variants. Additionally, you can register confirmations by scanning a bar code. To confirm products and product variants, you must enter an ID for the product or product variant. This ID can be a product ID, product search ID, external ID, GTIN, or bar code. After you enter the ID or scan the bar code, the dimensions for the product variant are displayed on the mobile device. The following table describes the various work types that you can use work confirmations with. Option

Description

Pick

Require confirmation when items are picked.

Put

Require confirmation when items are put in a location.

Counting

Require confirmation during cycle counting.

Adjustments

Require confirmation when inventory quantities are adjusted.

Custom

Require confirmation for custom work.

Quarantine

Require confirmation when items are moved to quarantine.

License plate building Require confirmation when items are consolidated to build a license plate. Print

Require confirmation when license plate labels are printed.

Status change

Require confirmation when the status of inventory is changed.

You can require product confirmation only for pick and put work types.

Configure app field names in the Warehousing app You can define and configure the field names that are used in the app, as well as configure the priority to which the field names should be assigned. When you use Finance and Operations Warehousing on your mobile device, you can configure how metadata should be displayed on your device on the Warehouse app field names page. In a new company

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

in Finance and Operations, select Create default setup to generate all field names that will be used in the warehouse mobile device workflows, and then assign a preferred input mode and input type to them. After you have generated all field names, you can select the following input options: •

Preferred input mode: This option defines whether a scanning field or a manual entry input field should be shown for the selected field name. This is useful to distinguish fields depending on if barcodes are used for the field. Note: For field names with preferred input mode set to Scanning, you can enter information manually if the barcode is unreadable or damaged.

•

Input type: This option defines what input type should be used for the selected field name. Four options are available: o

Selection - Contains a list of options to choose from. Field names with this option are not editable.

Date - Field names specified as date will show a date format with the label. This helps warehouse workers see in which format to enter the date. Field names with this option are not editable.

Alpha - If selected, the device keyboard will be used when entering information manually in the app. The keyboard experience can be changed depending on which device is used.

Numeric - For field names that use numeric input only, you can select this option to display a custom numeric keypad with the input field instead of the device keyboard.

Configure warehouse app field priority In the Warehouse app field priority page, you can put field names into different priority groups. This makes it possible to decide what information should be displayed on the main task page when warehouse workers perform tasks using the app. If you click Create default setup, a default set of priority groups will be generated. It is possible to create as many priority groups as needed, but only three priority groups will be shown on the task page. When Finance and Operations sends metadata to the app, it will assign each field a relative priority depending on its priority group, and the app will display the first three priority groups contained in the metadata on the task page. The rest of the overflowing metadata will be displayed on a secondary details page.

Example The following is an example of five priority groups: •

Priority 10 can be assigned to: o o

•

Item Quantity

Unit of measure

Cluster position

Priority 20 can be assigned to:

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

• •

Cluster

Item description

Configuration

Priority 30 can be assigned to: Priority 40 can be assigned to: o o

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Color Size

Style

Location

Priority 50 can be assigned to: o

License plate

When a warehouse worker is performing a task on a mobile device, the metadata that will be displayed in the app consists of the following fields: •

Item

•

Quantity

•

Unit of measure

•

Item description

•

Size and Location

Based on the warehouse app field priority set up in this example, the following three rows of information will be displayed on the task page: •

Row 1: Item, Quantity, Unit of measure

•

Row 2: Item description

•

Row 3: Size

The remaining metadata, for example, Location, will not be displayed on the task page, but will be displayed on a details page.

Inbound operations Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/3inbound-operations

Purchase order receipts The purchase order receipt process can be broken down into the following steps from preparing to verifying the location in the warehouse: 1.

The purchase order is prepared by the appropriate person and sent to the vendor. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

You are advised of the delivery and it arrives at your dock.

Warehouse personnel logs in to the mobile device.

The menu can be customized for different workers

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

The Receiving function is accessed in the mobile device by selecting Inbound menu.

The process of receiving is verified as correct by viewing the Work page in Finance and Operations.

You can refer to the inventory of the item to see that it is located at the default Receive location in the warehouse (or wherever it was received).

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Purchase order put away Purchase order put away tasks are typically handled by warehouse workers via a mobile device. After the purchase order has been received, another worker may be assigned to actually put the items away to their inventory location as specified in the location directive. The process of put away can be broken down into four basic steps: 1.

Scan the work ID or license plate of the shipment to be put away.

Validate the items to be put away.

Follow the system prompts:

•

If system-directed, the mobile device will direct you to the location.

•

If user-directed, the worker will select a location.

The verification of the location is scanned into the handheld device.

Purchase order returns Most warehouses have a specific process to handle inventory that needs to be returned. This process may involve a specific location to house the inventory, sometimes known as a "quarantine warehouse." This location may be used for returns, items requiring inspection, or items requiring infrequent actions. There may be a time when something that is purchased will need to be returned to the vendor. This can be done with the mobile device by following these steps: 5.

The return order is entered into Finance and Operations.

The return is entered or scanned with the mobile device to start the process.

Items are picked. They are sent through the process that is set up on the work template and the mobile device.

Items are shipped using the mobile device to handle the created shipment and load.

Purchase order put away with a quality order A common practice in many companies is performing quality checks on incoming shipments of inventory. The process is set up in the Inventory management module in Finance and Operations. Part of the quality process can be the creation of an automatic quality order upon receipt of an item. This means that when an item is received into inventory, the system will create a quality order. So, instead of putting all items away as is normally done, some or all of the items (based on the sample size that was set up) will be moved to a different location for the testing. The process would be as follows: 1.

The Quality order put away menu item, location directive, and work template are created to support the process.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

The shipment is received.

The quality order is generated.

The quality order process is initiated to move the product to the location specified for quality testing.

Receive items at a different warehouse than expected You may receive loads or items at a warehouse that differ from the warehouse that was specified on the source document. When you receive the load or the item, it's located at the new warehouse and then all related work is created for that new warehouse. This means that all processes for managing the inventory are the same as they would have been at the warehouse where the inventory was expected, which includes packing structures and advanced shipping notice. The information on the source document is not changed to reflect the new warehouse. The warehouse must be assigned to the same site that was specified on the source document. Inbound workflows on the mobile device for purchasing and returns only support the following work creation processes: •

License plate receiving

•

Purchase order line receiving

•

Purchase order line receiving and put away

•

Purchase order item receiving

•

Purchase order item receiving and put away

•

Return order receiving

•

Return order receiving and put away

•

Load item receiving and load item receiving and put away.

To avoid mistakes, it's important that the worker who is receiving the load or items ensures that they are logged into the correct warehouse. For example, if a worker is working in Warehouse 11 but has forgotten that he's logged in on his mobile device in Warehouse 21 the loader items will be mistakenly located at Warehouse 21. To enable receipts at a warehouse that differ from the warehouse that is set up on the source document, you need to go to Sites page, and Warehouse FastTab.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

You can enable the option to allow users on a mobile device to receive at another warehouse.

Cycle counting Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/4cycle-counting

Cycle counting process Cycle counting is a warehouse process that you can use to audit on-hand inventory items. A cycle counting threshold indicates the quantity or percentage limit of inventory items. Cycle counting work is automatically created when the threshold limit is reached.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

A cycle counting plan is set up to create cycle counting work immediately or periodically. After you create cycle counting work, you must use a mobile device to process cycle counting at a warehouse location. The cycle counting process can be described in three steps: 1.

Create cycle counting work - Cycle counting work can be created automatically, based on threshold parameters for items or by using a cycle counting plan. Alternatively, you can manually create cycle counting work by using the item or warehouse parameters on the Cycle count work by item page or the Cycle count work by location page.

Process the cycle count - After cycle counting work is created, you do the cycle counting work by counting items in a warehouse location and then using a mobile device to enter the result in Finance and Operations. Alternatively, you can count items in a warehouse location without creating cycle counting work. This process is referred to as spot cycle counting.

Resolve differences in the counted value - After a cycle count, any items that have differences in the counted value will have a work status of Pending review on the All work page. You can resolve these differences on the Cycle count work pending review page.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

General setup Before you can begin cycle counting, you need to set up the following: 1.

Workers - You create work user accounts and later assign mobile device menus to the work user ID.

Work pools - You can create work pools to organize and separate the warehouse work based on the type of work.

Mobile device menu items - You can create menu items for user-directed cycle counting, system-directed cycle counting, cycle count grouping, and spot cycle counting in the system using the Mobile device menu items page in the system. You can also set up menus.

Location profile settings - You need to update the location profile by selecting the Allow cycle counting option on the Location profiles screen.

Warehouse management parameters - On the Warehouse management parameters screen, you'll set up parameters, including the default adjustment type code, work class ID, and work priority.

Cycle counting workers Workers who will perform cycle counting work or approve and reject cycle counts that have been performed by the warehouse workers must be configured in the Work users page. No special setup is required for users to perform cycle count work, However, several additional parameters exist for workers that will approve or reject cycle counting work.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Work pools You can use work pools to organize work into groups. For example, you can create a work pool to classify work that occurs in a particular warehouse location. For all work types, except counting, you can assign a work pool to a work template. For cycle counting, you can assign a work pool to cycle count plans. You can assign a work pool to a cycle count threshold, and perform a cycle count work by location and some cycle count work by item. When you use work templates to create work, the work pool is automatically assigned to the work. You can also manually assign work pools to work using the location directives form. After a warehouse worker defines the menu items that will be used to perform work on a mobile device, the worker will then scan the work pool ID. The work that is related to the work pool ID is then automatically assigned to the work user on the mobile device until all work is completed.

Guided cycle counting Guided cycle counting is used when you want the worker to count specific items. When the cycle count is performed, if the wrong number of items are counted the worker is prompted to count them again. The following lists the basic steps in the guided cycle counting process: 1.

Create cycle counting work.

Verify work is created.

Perform a cycle count.

Approve cycle counting work.

Review cycle counting work.

Blind cycle counting A blind cycle count is used when you want a worker to count items in a location without guidance as to which items they are counting. You can control what type of information is provided on the mobile device, how many or how much should be scanned or entered during the cycle counting process. A blind cycle count refers to physical inventory taken by personnel who perform a hands-on count of inventory without access to the quantities currently shown on electronic or other inventory systems. Blind counts are used to assess the integrity of the automated inventory systems. The cycle count can be considered blind when it does not indicate any information about the item being counted. The worker performing the counting would not know the item number that is supposed to be counted. The worker only scans the location, the barcode on the items in that location, and enter the count.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Spot cycle counting A spot cycle count is used when a worker finds a variance while performing other work. These variances can be breakage, misplaced items, or physical movements that were not recorded with an inventory movement, among other things. Spot counts do not require work to be created prior to the count being performed. Spot counts are a quick and easy way to record and remedy inventory questions as they are discovered on the warehouse floor. For example, a worker is directed to put items away into a specific location that is empty according to the system. However, when the user arrives, they find the location is filled with another item. The worker then performs a spot count on the location to update the system. When you are using license plate control in the warehouse, a spot count can either prevent the cycle count from occurring or allow it and automatically create a transfer instead of a movement. To enable the spot counts, set the Allow license plate moves during cycle counting option to Yes.

Thresholds You can create cycle count work by using thresholds. Cycle counting thresholds automatically create cycle counting work when the threshold limit is reached. As warehouse workers execute picking work in the warehouse, if a threshold is hit, it will automatically create cycle count work for that location in the warehouse. Each threshold can be configured using item and location queries, which are evaluated during the execution of picking work. A cycle counting plan is set up to create cycle counting work immediately or periodically. When counting work is created, it contains the information about which location to count as part of the counting work line. The on-hand inventory associated with this location is not blocked and is therefore available for reservation and outbound processing, even though open counting work exists.

Example The threshold type of a threshold is set to 10 Percentage. If the quantity is 3000, when the inventory hits 300, cycle counting work will be created immediately. Alternatively, you could setup a time fence like 7 days 14 days before another cycle count can be performed. The threshold types can be a check on a quantity and unit of measure combination, or a volumetric percentage check. If the inventory falls below this threshold when doing picking work, and the last counted date on the location falls outside of the days between setup on the threshold, cycle count work will be created. You can configure warehouse management to ensure warehouse workers execute the cycle count work immediately after the threshold is reached.

Automatically create cycle counting work There are two ways to schedule recurring creation of cycle counting work: www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Set up cycle counting thresholds - Indicates the quantity or percentage limit of inventory items. Cycle counting work is automatically created when the threshold limit is reached. For example, there are 60 items in a location that has a cycle counting threshold of 40. During a sales order transaction, 25 items are picked from the location and put in a staging location. Because the new item count, 35, is less than the threshold quantity, cycle counting work is automatically created for the location.

•

Set up a cycle counting plan - Creates cycle counting work either immediately or periodically through a batch job. When cycle counting work is created, the counting work line includes information about the location to count. The on-hand inventory that is associated with this location isn't blocked, and is therefore available for reservation and outbound processing, even though open counting work exists. For example, an item is available in three locations in the warehouse, and the maximum number of cycle counts is set to 2. In this case, when you run the cycle counting plan, two cycle counts are created for the two locations where the item is present. As another example, you set the number of days between cycle counts to 5. In this case, cycle counting work is created every five days. However, if cycle counting work is processed on day 3, the next cycle counting work will be created five days after the last cycle counting was processed, on day 8.

Transfers orders and replenishment Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/5transfers-replenishment You use transfer orders to handle items that are in transit between warehouses within the same company that are in different geographical sites. The Transfer order page is used to manage items that are in transit. Items are unavailable for use when they are in transit because they are automatically registered at a transit warehouse during the transfer period. You can ship and receive order lines or parts of order lines. It is important to note that transfer orders can be used even if only one warehouse involved has warehouse management active in Finance and Operations. The warehouse with warehouse management can use the mobile device to process the order.

Setup for transfer orders The following configurations are required for using the mobile device to process transfer orders: •

Transit warehouse - Items in transit are automatically registered at the transit warehouse.

•

Menu items - Mobile device menu items are necessary for warehouse workers to use the mobile device to receive transfer orders.

•

Work templates - You can set up one or more work templates to specify how to create the work to pick and receive inventory for transfer orders.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

•

Location directives - Location directives, along with work templates, determine how and where work is carried out.

•

Wave templates - Wave templates help specify criteria that determines what work is generated for a warehouse when a wave is processed.

•

Process transfers - After this configuration is complete, you can process transfers.

Wave templates for transfer orders You can use the same wave template that is used for sales orders for transfer orders. If a new wave template is required, make sure that you use the Edit query button to filter each wave template to the specific criteria that should be used for the selected template.

Transfer order process The Transfer order process consists of the following steps: 1.

Create transfer orders. This is considered as part of outbound processes

Reserve items in the transfer orders

Create loads for the transfer orders

Release the transfer orders to the warehouses associate with it for each order

Pick items for each transfer order

Receive the transfer order on the destination: this is considered as part of inbound processes.

Even though the steps 5 and 6 can be done in the Finance and Operations web client, by using mobile device, you make these tasks very convenient for the warehouse workers.

Replenishment The following replenishment strategies are available: •

Wave demand replenishment - This strategy creates replenishment work for outbound orders or loads if inventory isn't available when the wave creates work. For example, replenishment work can be created if the quantity that is required for a sales order isn't available when a wave is processed.

•

Min/Max replenishment - This strategy uses minimum and maximum stocking limits to determine when locations should be replenished. The item and location criteria define the inventory that is evaluated for replenishment. Min/Max replenishment templates are the primary mechanism for maintaining optimal levels in picking locations. To help guarantee that enough pick face inventory is available to meet wave demand, you can use demand replenishment as a supplement between Min/Max replenishment cycles.

•

Load demand replenishment - This strategy sums the demand for several loads and creates the replenishment work that is required in order to stock the relevant picking locations. This strategy

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

helps guarantee that the loads that are created can be picked in the warehouse after they are released. â&#x20AC;˘

Immediate replenishment - This strategy replenishes inventory before a wave is run if allocation fails for a location directive line that has a replenishment template.

All four strategies create replenishment work, based on a replenishment template.

Wave demand replenishment Wave demand replenishment creates replenishment work, based on demand, if the quantity that is required for production orders, kanbans, outbound orders, or loads isn't available when a wave creates work. The replenishment template contains information about the item criteria, the unit of measure, the demand increment, and the location. Location directives are used to determine which location should be replenished. You link these location directives to the replenishment template by using the Directive code field. If the Directive code field isn't set, queries are used to determine which location directive should be used. Note that if a directive code isn't specified in the replenishment template, and the location directive has a directive code, the location directive will be ignored, even if the query on the location directive is correct. Pick location directives are used to determine where to get inventory for the replenishment. In addition to creating a template, you must specify some replenishment settings in the wave template. The wave template should contain a wave step for replenishment that is run only if an item isn't successfully allocated. This replenishment wave step uses a wave step code to determine which replenishment template should be used. In addition to having a wave step for replenishment, you must make sure that Replenish is selected in the Methods section of the wave template. The Replenishment template page includes an Allow wave demand to use unreserved quantities check box. Select this check box if demand replenishment should be able to deduct unreserved quantities from work that is generated from the selected replenishment template. To enable demand replenishment templates to use this logic, select this check box for every existing replenishment template. When demand replenishment is triggered in the warehouse, it will deduct the demand from existing replenishment work that has unreserved quantities, if the work originates from replenishment templates where the Allow wave demand to use unreserved quantities check box is selected. Demand replenishment is supported for sales orders, transfer orders, production orders, and kanbans.

Min/Max replenishment In Min/Max replenishment, stock is replenished so that it's between the minimum and maximum limits that have been set. Typically, this process occurs one time every day, to help guarantee that all picking locations are filled to the maximum level before picking starts. The minimum and maximum amounts are set in a replenishment template. Many of the other settings in the template resemble the settings in templates that are used in Wave demand replenishment. The template should contain one line for each item and location. When you run replenishment by using the

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

batch job, Finance and Operations, evaluates whether replenishment is required by using the sequence that the lines are organized in. Note that the Min/Max replenishment strategy can't replenish an empty location unless the location is set as the fixed location for the item. If the location that must be replenished isn't a fixed location, the system can't determine which item should be replenished. Therefore, at least some on-hand quantity is required before replenishment occurs.

Load demand replenishment Load demand replenishment sums the demand for several loads and creates the replenishment work that is required in order to stock the relevant picking locations. Load demand replenishment resembles Wave demand replenishment in many ways. The main difference is how and when Load demand replenishment and Wave demand replenishment are run. Like Min/Max replenishment, Load demand replenishment is run by using a batch job. To set up the batch job, on the Load demand replenishment page, select the replenishment template to use, and set a filter query to specify which loads are used to determine the demand. The location query defines the locations that any available quantity will be subtracted from to meet the aggregated demand of the loads.

Immediate replenishment Instead of having to sum demand at the end of an allocation process and do replenishment on the basis of the summed quantity, you can apply the Immediate replenishment strategy. When you use this strategy, the inventory can be replenished immediately after a location directive line fails. Therefore, you can set up the replenishment so that it's restricted by specific units, and so that it uses quantities that are set for specific locations.

Replenishment setup To use replenishments, you need to create and configure the following entities: •

Replenishment templates - Define the units of measurement for the inventory to replenish.

•

Request types - Set up request types to connect a replenishment template with a specific location directive, which could improve the performance when work is created for replenishment.

•

Fixed locations - If you want to replenish locations that are empty, you must use fixed locations for items. Locations that do not contain a quantity of an item will not be replenished. You can use the replenishment template to specify that you want to replenish empty fixed locations for an item or replenish only fixed locations.

•

Work templates - Set up a work class to control who can perform replenishment work.

•

location directive- It indicates where these items will be picked from and to where they will put away.

•

Mobile device menu items - It allow workers to process replenishment work from the mobile device.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Replenishment process Min/Max replenishment in Warehouse management will create work units to restock inventory based on well-defined criteria. Min/Max stocking limits are used to determine what needs to be restocked and by how much. Once these settings have been determined, replenishment can be run manually or setup to run automatically in a batch job. Demand based replenishment will create replenishment work for outbound orders that are unable to locate inventory during work creation. You can run the replenishment either manually or automatically by using a batch job. For example, scheduling replenishment is useful if replenishment is based on Min/Max stocking limits and you want to refill your picking locations at the end of the workday or at the end of the work week. For load demand replenishment, this is useful if you cannot fulfill a load due to the lack of inventory in a location.

Outbound operations Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/6outbound-operations

Location directives Location directives are important for inbound and outbound processes. A location directive in the outbound process instructs where to pick the items from and where to put those to be shipped by using a put away process. You can use a simple two-step process where the items are picked from a location within the warehouse and then shipped by using a put away process. Alternatively, you can use multiple step picking to introduce a staging location or an additional packing station. There is no limit to the number of steps that you can use in your location directives for the outbound process; at a minimum, you must include one pick and one put action.

Work templates Work templates shows activity in the warehouse consolidated into a single view and set of tables. When work is created, it starts with a status of open which can be viewed by using the Work details page. A work is open when a transaction is started and then immediately closed when the transaction is completed, therefore, work can be used as transaction history, since the related information such as item, location, and quantity is captured on the work instruction. There are multiple closed work pages such as Closed sales work or Closed purchase work that can be used to review the work that is closed manually or automatically.

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Wave templates Warehouse management uses wave picking. Wave is a term used to describe a process to support managing the work of a warehouse or distribution center. The Wave templates page is used to create and maintain templates that control how a wave is executed. This includes the setup criteria and how waves are created, executes, and released. Multiple wave templates can be created, each with different properties. To open the Wave template page, go to Warehouse management > Setup > Waves > Wave templates. Wave picking is an application of short interval scheduling, to assign orders into groupings (waves) and release them together to coordinate several parallel and sequential activities required to complete the work. The individual orders in the wave are dependent on the criteria used to make the selection. There are three types of wave templates available: shipping, production, and kanban. The wave template includes the workload by function, such as creating loads, allocating work, creating work, replenishment, and containerization. This helps provide management the information to calculate staff requirements and assign staff by function, with the expectation that the work in each function, within each wave, can be started and be completed at about the same time. There are two basic planning elements and benefits of wave picking: •

To organize the sequence of orders and assignment to waves, consistent with routing, loading, and planned departure times of shipping vehicles or production requirements, and so on, to reduce the space required for shipping dock handling to assemble orders and load.

•

To assign staff to each wave and function within a wave, with the expectation that all the work assigned to each wave will be completed within the wave period, providing management with the ability to monitor and manage performance throughout the day, and respond in a timely way to problems that occur, and more effectively utilize the staffing throughout the shift.

When you first create a wave template, required base methods are created as steps for that template and appear in the lower left grid. Any additional wave execution methods appear on the lower right grid and can be manually added to the wave template using the arrow buttons. Some base wave steps such as containerization and replenishment are optional and will have to be added manually to the wave template. The containerization wave steps can also be marked as repeatable under wave execute method setup (Warehouse management > Setup > Waves > Wave execution methods). This allows the method to be called several times within a single wave template. Added wave steps also have a new field called Wave step code which is generically used to help pass information to the method being called. Wave steps are utilized by replenishment and containerization which are discusses later in this course. When you set up a wave template, you specify the following: •

The site and warehouse that the template will create work for. www.dynamicscompanions.com Dynamics Companions

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•

The sequence in which the templates are matched to released lines on sales orders, production orders, and Kanbans - When a line on a sales order, production order, or Kanban is released to the warehouse or to production, the system applies the first wave template that the line meets the criteria for.

•

The wave methods that perform the actions that are created by the template - Such creating or distributing work for each type of wave template. These actions are also referred to as wave steps.

•

Wave containerization - Can be added to a sequence of wave methods to define the containerization of the lines processed in a wave template.

Consider the following settings which represent strategic decisions for wave processing: •

If the template is used for shipping items for sales orders and transfer orders or used for moving items to production for production orders or Kanbans.

•

If a wave is processed manually or automatically, as follows: o

Manual processing - The line is added to a wave and the inventory is reserved. However, you must click Process on the All waves list page to create the picking work for the order.

Automatic processing - You can fully or partially automate wave processing. If you fully automate wave processing, a wave is created that includes the line from the sales order when a sales order is created. The items are deducted from on-hand inventory and the picking work is created. If you partially automate wave processing, you can specify values that will trigger wave processing. 

For example, you can specify a maximum weight for shipments that will trigger wave processing when the total weight of the lines in the wave reaches the value.



If you assign shipments to an open wave. For example, if you promise customers that an order placed by 12:00 PM will ship within 24 hours, you can set up the wave template to automatically assign order lines to an open wave until 12:00 PM. At that time, the wave is automatically processed.

When a wave is processed, the picking work that is created is based on the work template and the location directive that is specified for the warehouse. The work template specifies how the picking work is created, and the location directive specifies the pick and put locations. Based on the wave template setup the wave process can be automatic or manual. There are several properties that determine this including:

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•

Automate wave creation - Indicates waves are automatically created for shipments during the release to warehouse process. The query criteria can be used to limit what shipments will apply to this wave template.

•

Assign to open waves - Indicates shipments will be assigned to open waves during the release to warehouse process. The query criteria can be used to limit what shipments are assigned to waves of this template.

•

Process wave at release to warehouse - Indicates that waves created during the release to warehouse process are automatically executed to create work.

•

Process wave automatically at threshold - Indicates waves are automatically executed when a defined threshold is reached.

•

Automate wave release - Indicates waves are automatically released once it is executed. When this option is selected work is not created and the wave is automatically completed. This essentially bypasses mobile device processing.

•

Automate replenishment work release - When selected and demand-based replenishment work is created, the replenishment work will be released automatically.

•

Wave template sequence - This sequence number determines in what order the wave template is selected when creating waves and assigning shipments to existing waves. If a shipment does not fit the query criteria of a wave template it will try again with the next wave template in the sequence.

The manual wave process manually creates, processes, and releases a wave to create picking work for a load, shipment, production order, or Kanban order. You can create waves for sales orders, production orders, and Kanban orders, as follows: •

Sales orders - Use shipping waves to include lines from sales orders. When a sales order is released to the warehouse, the sales order lines can be included in the wave.

•

Production orders - Use production waves to include lines from the bill of materials (BOM) for the product.

•

Kanban orders - Kanban waves include picking list lines from Kanban orders.

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For sales orders and Kanban orders, inventory must be reserved before the order is released to the warehouse. Otherwise, the items or allocation lines cannot be processed in a wave. However, production orders are slightly more flexible. For production orders, you can specify the following: •

Allow production orders to be released to the warehouse although all materials cannot be reserved. If you select this option, you must manually repeat the release to warehouse process when the additional materials become available. For example, this is useful if you have the materials that you need to start a production and can wait until the additional materials become available.

•

Require that all materials are reserved before an order can be released to the warehouse.

You can specify the default value in the Release to warehouse field in Production control parameters. However, you can change the setting for a specific production order at any time.

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Outbound menu items and menus To use outbound functionality in the mobile device, menu items and menus must first be created. Use the following procedure to configure those items. To create an outbound menu item, you will need to do the following after going into the Menu items screen.

Sales order picking Sales order picking is a required process for any business, by either using the mobile device or the web client. There are various options that can be used to actually pick, but the process is the same regardless: •

The sales order is created and entered into the system.

•

The order is confirmed in the system.

•

At some point, the order is then ready to be released for picking. This can be the same day or any time frame.

Staging with sales order picking You can configure the work template to skip the staging step by only using one pick and put pair. In more complex warehouse operations, you may use multiple staging operations. For example, after items are picked from the warehouse, let's say they require a complex packing operation to bubble wrap items for shipping. After the items are bubble wrapped, they are staged at a dock door for loading. With this example, you could create three pick and put pairs to track the movement of the item through the various steps. •

The first pick-put pair moves the item out of the picking location and into a packing location.

•

The second pick- put pair moves the item out of the packing location and into the loading location.

•

The final pick-put pair moves the item out of the loading locations and onto a truck or out of your warehouse.

You need to configure a work template with the correct pick and put pairs, and create location directives to indicate that items should be placed in the packing and loading locations respectively. These would then be linked to the work template to indicate where the items should be placed. When you configure

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the menu items for sales order picking, some additional options are available to help you manage the staging process. Anchoring is a concept that allows the user to override the staging or loading location; all subsequent open puts will be directed to the new staging or loading location. You can find the Anchoring option in the Mobile Device Menu Items page. If the Anchoring slider is set to Yes, then the user can select to anchor by the shipment or the load. If anchoring is by shipment, then the subsequent open puts for the same shipment or load will be changed to the new location for that shipment. If anchoring is by load, then the subsequent open puts will be changed to the new location for that load.

Picking sales orders with the mobile device Sales order picking with the mobile device can be done after the order is released to the warehouse and the work is created. This will enable any user with the proper permissions to use the menu in the device to access the picking options. Consider the following steps for picking process: 1.

Create the sales order.

Confirm the Sales order.

Release to warehouse and create the"work.

Pick sales order.

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Automatically release orders You can set up a batch job to automatically release sales and transfer orders to the warehouse in Warehouse management > Release to warehouse > Release to warehouse form and select the sales orders to be released. If you want to have a batch job release the sales orders, go to Warehouse management > Release to warehouse > Automatic release of sales orders and the setup batch recurrence in order to release the orders on a regular basis.

Cluster Picking Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/7cluster-picking Before you can begin cluster picking, you need to set up a cluster profile which specifies whether to automatically generate a cluster ID and number of positions to use and when to break clusters and how to sequence and verify the picking work. Cluster profiles enable the user to start a cluster and assign work to the positions and formally commence the pick of the cluster. You need to create both cluster and pick cluster profile. To enable cluster picking, you must have other components to be associated with such as a work template, location directive, and set up items on your mobile device menus as well as configuring the Warehouse management parameters page.

Cluster picking After work orders are released to the warehouse, the worker can use a mobile device to assign the orders to a cluster. The cluster will organize the picking work for the worker. When a work order is assigned to a cluster, the worker must use cluster picking to perform the picking work for the order. The worker cannot use other picking methods. If a work order is assigned to a cluster by mistake, the worker must break the cluster and then re-create it. If needed, a worker can pass a cluster to another worker. This changes the cluster status to Passed. When the worker uses a mobile device to indicate that the picking and put away work is completed, the shipment or load must be confirmed in Finance and Operations.

Use cluster picking When you have completed the setup for cluster picking, you can start to use the mobile device to process a sales order by using the cluster picking method.

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Once you have released the work to the warehouse, you can begin creating clusters and assigning work to those clusters. On the mobile device you can see the cluster picking item that was created with the Cluster ID. You will scan the Work ID and click OK, and then you will be prompted for next. You will repeat this process until the cart is full. If the cluster is created manually from the Create cluster menu item you must manually enter the cluster ID and then assign work to each position and repeat the process until the cart is full. After the work is assigned to the cluster, you can begin picking using the standard picking process in the mobile device.

Packing and containerization Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/8packing-containerization

Set up manual packing Containers represent the physical structure in which products are packed during shipping, and you can keep track of the container information in the system. This can be useful during transportation planning, especially in the case where shipping charges are calculated based on containers. In Finance and Operations, you can see the number of containers that are used in a shipment, the types of containers that are used, and physical dimensions such as total volume, weight, and so on, prior to shipping. Container types can be used to create descriptions of containers, including maximum values for physical size dimensions and weight capacity. When a containerized wave is processed, the containers are created based on the container type information. Finance and Operations provides a packing process that allows you to validate and pack products into containers. In this process, warehouse workers pick products from the storage locations and move them to the packing station, where they check the item quantities and types, and then assign them to appropriate containers. When a container is fully packed, they can close it and move it to the outbound docks. At this point, the products are ready for shipping.

Create a location profile for manual packing To create a location profile for manual packing go to Warehouse Management > Setup > Warehouse Location profiles, and create a new record to with the location type to be pack. You can choose to allow tracking of the license plates at the packing station, have a negative inventory, pick from mixed items, and choose items with mixed inventory statuses, and be able to perform cycle counting. Alternatively, you can enable Check digit to verify location ids and make sure they match with those of the picking list or receipt lists. You can also link a packing profile to a user. www.dynamicscompanions.com Dynamics Companions

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Manual packing process The manual packing process starts with an order such as sales or transfer orders. Work is then created through a wave that has the packing station as the put location. The location directives and work templates must have already been set up in order for the items to be moved to a packing location when the picking work is completed. Then, the warehouse worker uses a mobile device to pick the items and move them to the packing location. After the items are in the pack location, users open the Pack page and create a container, pack the items, close the container, and weigh and print documents, if required. This cycle continues for each shipment. When packing product variations such as size, color, or serial controlled items or batch controlled items, a dialog is displayed where you can select product dimensions. While items are being packed, the Quantity packed and Quantity remaining fields are updated on the item lines. When a line is completely packed, it will be removed from the Open lines tab. However, you can still view it on the All lines tab. In each packing action, Finance and Operations validates the total item weight inside the container against the maximum allowed weight of the container. These are specified for the container on the container type. If it exceeds the limit, the system will prevent the item from being packed into the container and displays an error. However, Finance and Operations does not validate other physical dimensions such as volume, width, height, and length. This gives flexibility to warehouse user during packing to adjust these dimensions on the product. For example, a packer might be able to squeeze the items into the container although the volume exceeds the nominal value. At any time during packing, you can view and modify all containers created for the shipment by clicking the Available containers button on the Pack page. The Containers page is displayed where you can perform the following actions: •

Adjust the item quantity in a container. Unpacked items will update on the Pack form to be packed again.

•

Delete empty containers.

•

Reopen closed containers.

•

Reverse the manifest.

Set up containerization Automated containerization creates containers and the picking work for shipments when a wave is processed. To set up containerization, you must first create container types which define the physical characteristics of the containers. You use container types to pack inventory items into specific types in size of packaging, such as bins or pallets. Then you need to create container groups which its members would have the same container type. For example, a container group can include container types that have similar size dimensions.

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A group specifies the sequence in which containers are packed and the fill percentage of each container. You also need to create container build templates which define rules for containerization. For example, rules for mixing of inventory and other packing strategies. You require to create one or more wave templates to create the picking work for containerization. Container types that are used for manual packing cannot be used for containerization. If you're using both processes, you must set up one container type to be used for manual packing and then one for automated containerization.

Containerization process When you release the sales order to warehouse, based on the wave template setup, this step should create, process, and then release the wave. This diagram shows the query criteria.

Upon the processing of the wave, containerization runs the following steps: 1.

The container build template with a matching wave step code on the wave template is selected.

The query criteria of the template are checked for the current allocation line. If met, the system starts processing the template to create containers for the allocation line.

When checking the physical dimensions, length, width, and height of a single item, its highest unit are checked first against the maximum allowed values set on the container type.

If length, width, and height meet the requirement, the system then checks the weight and volume of the entire items on the allocation line against the maximum allowed weight and volume of the container, taking into account the container utilization percentage set on the container group.

If the Allow split? In container build templates is set to yes you can split the items into multiple containers.

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The system will keep trying to downsize into smaller containers defined in the container group. When a container type fails to downsize, it will stop trying to downsize any further. Therefore, the container types in the group should be ordered by size.

If the query criteria are met, but the container build template fails to pack the allocation line (for example, due to the dimension not being met), the line will still be assigned to the container. However, the created container will have the field Container has errors enabled, indicating that the containerization process failed here. You will also receive an error in the system.

Continue the same process on the next allocation line until there are no more items to be packed.

Exercise - Configure mobile devices Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/9exercise-configure-mobile-devices

Set up warehouse work policies Warehouse processes don't always include warehouse work. By defining a work policy, you can prevent the creation of work for raw material picking and put-away of finished goods for a set of products at specific locations. 1.

In company USMF, go to Warehouse management > Setup > Work > Work policies.

Click New.

In the Work policy name field, type 'No put-away work'.

Click Save.

Click Add.

In the Work order type field, select 'Finished goods put away'.

Click Add.

In the Work order type field, select 'Co-product and by-product put away'.

Expand the Inventory location section.

10. Click Add. 11. In the Warehouse list, enter '51'. 12. In the Location field, enter or select '001'. 13. Expand the Products section.

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14. In the Product selection field, select 'Selected'. 15. Click Add. 16. In the Item number field, enter or select 'L0101'. 17. Click Save.

Create a work class In preparation for setting up the mobile device for your warehouse, you are asked to set up a work class, which you will name Purch-Orders. It will have the Put location types of Bay-door, Bulk, and Pick. 1.

Open Warehouse management > Setup > Work > Work classes.

Click New to create a work class.

In the Work class ID field, enter Purch-Orders.

For Description, enter Purchase Orders.

For Work order type, select Purchase orders.

On the Valid put location types FastTab, click New.

Enter Bay-door.

Click New.

Enter Bulk.

10. Click New. 11. Enter Pick.

Create a mobile device menu item and menu As Warehouse manager, you have to configure the mobile device options. You will be setting up two functions: Purchase order receive and Purchase order put away. You will then add them to your Mobile device menu.

Set up mobile device menu items. 1.

Open Warehouse management > Setup > Mobile device > Mobile device menu items.

Click on New.

For Menu item name, enter PO Receive.

For Title, enter PO Receive.

For Mode, select Work.

Set the Use existing work slider to No.

On the General FastTab, on Work creation process, select Purchase order line receiving.

Set the License plate grouping slider to Yes.

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Set the Generate license plate slider to Yes.

10. Set all other sliders to No. 11. Click Save in the Action Pane. 12. Click New in the Action Pane. 13. For Menu item name, enter PO Putaway. 14. For Title, enter PO Putaway. 15. For Mode, select Work. 16. Set the Use existing work slider to Yes. 17. On the General FastTab, in the Directed by field, select User grouping. 18. Set the Group put away slider to Yes. 19. Set all remaining sliders to No. 20. On Work classes FastTab, click New. 21. For Work class ID, select P-Orders. 22. Click Save. 23. Close the form.

Set up a mobile device menu. 1.

Open Warehouse management > Setup > Mobile device > Mobile device menu.

Select Inbound in the left menu bar and click Edit in the Action Pane.

In the AVAILABLE MENUS AND MENU ITEMS pane, select PO Receive and click the right directional arrow.

In the AVAILABLE MENUS AND MENU ITEMS, select PO Putaway and click the right directional arrow.

Click Save.

Close the page.

Create mobile device users As Warehouse manager, you have to configure the mobile device users. Add Ted Howard as a worker with a User ID and User name as thoward with a default warehouse of 62. His password will be 1234 on the mobile device. 1.

Open Warehouse management > Setup > Worker.

Click New.

In the Worker field, select Ted Howard.

On the Users FastTab, click New.

For User ID, enter thoward. www.dynamicscompanions.com Dynamics Companions

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For User name, enter thoward.

For Default warehouse, select 62.

For Menu name, select Main.

Click Save.

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

10. For Password, enter 1234. 11. For Confirm password, enter 1234. 12. Click Set password. 13. Close the page.

Set up a mobile device menu item for completing work of the Purchase order type As a warehouse manager, you need to create a menu item that is used for performing work of the Purchase order type. The work class that's associated with the menu item determines which work is valid.

Create a mobile device menu item 1.

Go to Warehouse management > Setup > Mobile device > Mobile device menu items.

Click New.

In the Menu item name field, enter a unique value. For example, you could type POMove. Remember the value, you'll need it later.

In the Title field, type PO Move. This is the title which will be displayed on the mobile device.

In the Mode field, select Work.

Select Yes in the Use existing work field.

The Display inventory status field determines whether the inventory status of the on-hand inventory will be displayed to the warehouse worker on the mobile device.

In the Directed by field, select 'System grouping'. When you select something in the Directed by field, additional fields appear in the General section on this page. The fields that appear depend on what you selected. When you select System grouping, two new fields are added.

In the System grouping field, select WorkPoolId. When warehouse workers open this menu item, they'll be asked to scan a Work pool ID. All work orders with this Work pool ID and open work order lines with one of the work classes added to this menu item will be pushed to the user.

10. In the System grouping label field, type Work pool. This is the text displayed to the user on the mobile device. 11. Select Yes in the Override license plate during put field. This option allows warehouse workers to override the target license plate when items are put down on a license plate-controlled location.

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12. Select Yes in the Group put away field. If all the Put lines on the work order share the same location, the user will receive one combined Put instruction for all lines. 13. Expand the Work classes section. 14. Click New. 15. In the Work class ID field, type 'Purchase'. The work pool restricts the work that the menu item can be used for. In this case it will be used for open work order lines that have the Purchase work class ID. 16. Click Save.

Set up work confirmation 1.

Click Work confirmation setup.

In the Work type field, select Pick.

Select the Auto confirm check box. The work instruction with work type Pick will be autoconfirmed. This instruction will not be presented to the user.

Click New.

In the Work type field, select Put.

Select the Location confirmation check box. The warehouse worker will be asked to perform a confirmation scan of the location, when the item is put down.

Click Save.

Close the Work confirmation page.

Close the Mobile menu item page.

Add the menu item to a mobile device menu 1.

Go to the Mobile device menu.

Click Edit.

Use the Quick Filter to find records. For example, filter on the Name field with a value of 'inbound'. You want to find the menu you use for inbound menu items. In USMF this is called Inbound.

In the tree, select a value.

Click on the arrow that points to the right.

Click Save.

Close the Mobile device menu page.

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Exercise - Perform inbound operations Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/10-exerciseperform-inbound-operations

Perform a purchase order receipt As a warehouse manager for Contoso Orange Juice, you need to process a purchase order receipt using a mobile device. You have ordered 1 box of the grapefruit juice. These will be from Vendor US-112 and shipped to Warehouse 62. The unit price will be 2.50 USD per box.

Create a purchase order. 1.

In company USP2, Open Accounts payable > Accounts payable > Purchase orders > All purchase orders.

Click New in the Action Pane.

Select Vendor US-112.

On the General FastTab, enter storage dimensions of Site 3 and Warehouse 62.

Click OK.

On the Purchase order lines FastTab, select Item number P9500.

Enter a quantity of 1.

Enter a unit price of 2.50.

On Action pane, click the Purchase tab.

10. In the Actions group, click Confirm, and note your purchase order number. 11. Close the page.

Create a purchase order receipt using the mobile device. 1.

Click Inbound.

Click Purchase receive.

Enter the purchase order number in the PONum field.

Click the green checkmark.

Enter Item number P9500.

Click the green checkmark.

Enter a quantity of 1 in the Qty field.

Click the green checkmark.

10. Click the green checkmark again. www.dynamicscompanions.com Dynamics Companions

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11. Enter LP number LP951. 12. Click the green checkmark. 13. Enter today's date as the Vendor batch date. 14. Click the green checkmark. 15. Click the Use as expiration date arrow. 16. Click No and click the green checkmark. 17. Enter a date six months from the current date as the Expiry date. 18. Click the green checkmark. 19. For Country/Region of Origin 1, enter USA. 20. Click the green checkmark. 21. Click the green checkmark again to bypass the second Country/region entry. 22. Note the "Work completed" notification.

Exercise - Perform outbound operations Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/11exercise-perform-outbound-operations

Create an outbound location directive You work for Contoso Orange Juice, and you have been asked to set up an outbound location directive to ship items sold to a customer. 1.

In USP2, open Warehouse management > Setup > Location directives.

In the Work order type field, select Sales orders.

Click New.

Enter 30 Pick in the Name field.

Select Pick in the Work type field.

Select 3 in the Site field.

Select 30 in the Warehouse field.

Click Save.

In the Lines FastTab, click New.

10. In the From quantity field, enter 0. 11. In the To quantity field, enter 9999. 12. Leave the Unit field blank. 13. Select None in the Locate quantity field.

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14. Click Save. 15. In the Location directive actions FastTab, click New. 16. In the Name field, enter Pick. 17. In the Fixed location usage field, select Fixed and non-fixed locations. 18. Click Save.

Create an outbound work template You work for Contoso Orange Juice, and you have been asked to set up a work template for a sales order. 1.

In USP2, open Warehouse management > Setup > Work > Work templates.

Select Sales order in the Work order type field.

Click New .

Enter SO Pick in the Work template field.

Enter SO Pick in the Work template description field.

Click Save.

In the Work Template Details section, click New.

Select Pick in the Work type field.

Select the Mandatory check box.

10. In the Work class ID field, select SO Pick. 11. In the Work Template Details section, click New again. 12. Select Put in the Work type field. 13. Select the Mandatory check box. 14. In the Work class ID field, select SO Pick. 15. Click Save.

Create a sales order and release it to the warehouse You work for Contoso Orange Juice and you need to create a sales order for four bottles of grapefruit juice and release it to the warehouse.

Create a sales order. 1.

In USP2, open Sales and marketing > Sales orders > All sales orders.

Click the New button to create a new sales order.

In the Customer account drop-down list, select US-027.

Expand the General FastTab.

Select 3 in the Site drop-down list. www.dynamicscompanions.com Dynamics Companions

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Select 30 in the Warehouse drop-down list.

Click OK.

In the Item number field, select P9500.

Enter 4 in the Quantity field.

10. Expand the Line Details FastTab. 11. Click the Setup tab. 12. Select Manual in the Reservation drop-down list. 13. On the Sales order lines FastTab, select Inventory > Reservation. 14. Enter 4 in the Reservation field. 15. Select the Inventory status check box. 16. Click Reserve lot. 17. Close the Reservation page.

Release the order to the warehouse. 1.

Select the Warehouse management tab on the Action Pane.

Click Release to warehouse in the Actions group. An information bar confirms that the shipment is created.

Close the information bar.

Close the **Sales order details ** page.

Exercise - Perform cluster picking Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/12exercise-perform-cluster-picking

Create cluster profiles As a warehouse manager for Contoso Orange Juice, you need to create a cluster profile, create a menu item for Cluster picking, and then add the menu item to the mobile device.

Create a cluster profile. 1.

In USP2, open Warehouse management > Setup > Mobile device > Cluster profiles.

Click New.

In the Cluster profile ID field, enter Picking Cluster Profile.

In the Name field, enter Picking Cluster Profile.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Expand the General FastTab.

Set the Generate cluster ID slider to Yes.

Set the Activate positions slider to Yes.

Enter 2 in the Number of positions field.

Click Save.

Create the Cluster picking menu item. 1.

Open Warehouse management > Setup > Mobile device > Mobile device menu items.

Click New.

Enter Cluster Picking in the Menu item name field.

Enter Cluster Picking in the Title field.

Select Work in the Mode field.

Select the Use Existing Work slider to Yes.

Select Cluster picking in the Directed by field.

In the Cluster profile ID field, select Pick Cluster.

Click New in the Work classes FastTab.

10. Select Sales in the Work class ID field. 11. Click New in the Work classes FastTab again. 12. Select SO Load in the Work class ID field. 13. Click New in the Work classes FastTab again. 14. Select SO Pick in the Work class ID field. 15. Click Save.

Add the menu item to the mobile device. 1.

Open Warehouse management > Setup > Mobile device > Mobile device menus.

Select Main in the left-hand pane.

Select Cluster Picking from the Available menus and menu items pane.

Click the directional arrow to move the selection to the Menu structure pane.

Click Save.

Exercise - Perform packing and containerization Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/13exercise-perform-packing-containerization

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Set up manual packing You are asked to set up manual packing for Contoso Orange Juice. You need to create a container type and packing profile. You will then link the packing profile to the user Julia Funderburk.

Create container types 1.

Open Warehouse management > Setup > Containers > Container types.

Click New.

In the Container type code field, enter PackingBox.

In the Description field, enter PackingBox.

In the Tare weight field, enter 0.5.

In the Maximum net weight field, enter 15.00.

In the Container length field, enter 12.00.

In the Container width field, enter 16.00.

In the Container height field, enter 10.00.

10. Click Save.

Create a packing profile 1.

Open Warehouse management > Setup > Packing > Packing profiles.

Click New.

Type PACK2 in the Packing profile ID field.

Type Packing station 2 in the Description field.

Select Number 1 in the Container packing policy field.

Select Auto in the Container ID mode field.

In the Container type field, select PackingBox.

Select the Autocreate container at container close check box.

Click Save.

Link the profile to a work user. 1.

Open Warehouse management > Setup > Workers.

Select Julia Funderburk from the left-hand pane.

Click Edit.

Update the Packing profile ID field to PACK2.

Click Save.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Set up a wave template 1.

Go to Warehouse management > Setup > Waves > Wave templates.

Click New.

In the Wave template name field, type a value.

In the Wave template description field, type a value.

In the Site field, enter or select a value.

In the Warehouse field, enter or select a value.

Expand the Methods section. The **Selected methods **pane lists the methods for the selected wave template type. The wave template must include the containerize method.

In the list, find and select the desired record.

In the Wave step code field, type a value. Enter a Wave step code for the added method, which can be any code. It's possible to add the method more than once and assign different wave step codes. To do this, select Repeatable for this method in the Wave process methods page.

10. Click Save. 11. Close the page.

Enable license plate label printing This exercise enables the automatic printing of a Serial shipping container code (SSCC) label after the last item is picked from inventory in a sales picking work process. You can run this procedure in demo data company USMF. If you run it using your own data, you need to have a number sequence set up for license plates. You need to set up a label printer before you begin this task. Go to Organization administration > Setup > Network printers. On the Action pane, click Options, and then click the Download document routing agent installer button. Run the installer and make sure that you have a working network printer set to Active before you continue with the procedure.

Set up the GS1 company prefix 1.

In company USMF, go to Warehouse management > Setup > Warehouse management parameters.

In the GS1 company prefix field, enter the 7 numbers for your GS1 company number.

Click Save.

Close the page.

Setup the SSCC license plate number sequence 1.

Go to Organization administration > Number sequences > Number sequences. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

In the Scope field, select Company.

In the Company field, Select USMF.

Expand the Segments section.

Select the Company row

Click Remove.

Select the Constant row

Click Remove.

Click Save.

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

10. Close the page.

Create the document route layout 1.

Go to Warehouse management > Setup > Document routing > Document routing layouts.

Click New.

In the Layout ID field, type GTLLayout.

In the Description field, type any value.

In the list, find and select the desired record.

Click Insert at end of text.

Click Save.

Close the page.

Set up the document routing 1.

Go to Warehouse management > Setup > Document routing > Document routing.

In the Work order type field, select an option (such as Purchase order).

In the Warehouse field, type 61.

Click New.

In the Name field, type a value.

Click New.

In the Layout ID field, enter or select GTLLayout.

In the Name field, enter the printer name that you want to use..

Click Save.

10. Close the page.

Create mobile device menu 1.

Go to Warehouse management > Setup > Mobile device > Mobile device menu items. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Click New.

In the Menu item name field, type GTLMnu.

In the Title field, type a value.

In the Mode field, select an option.

Select Yes in the Use existing work field.

Select Yes in the Generate license plate field.

Expand the Work classes section.

Click New.

10. In the Work class ID field, type a value. 11. Click Save. 12. Close the page. 13. Go to Warehouse management > Setup > Mobile device > Mobile device menu. 14. In the list, find and select the desired record. 15. In the tree, select GTLMnu. 16. Click Edit. 17. Click on the arrow to add the menu item to the menu. 18. Click Save. 19. Close the page.

Update a work template 1.

Go to Warehouse management > Setup > Work > Work templates.

In the list, find and select the desired record.

Click Edit.

Click New.

In the Work type field, select 'Print'.

In the Work class ID field, enter or select a value.

Click Move up.

Click Save.

Close the page.

Exercise - Perform cycle counting Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/14exercise-perform-cycle-counting

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Set up cycle counting As a warehouse manager in Contoso Orange Juice, you need to set up a cycle count for the mobile device.

Set up a cycle counting adjustment type 1.

Open Warehouse management > Setup > Inventory > Adjustment types.

Click New.

In the Inventory adjustment type field, enter New Cycle Count.

In the Description field, enter New Cycle Count.

In the Name field, select Counting

Select the Remove reservations check box.

Set up warehouse management parameters for cycle counting. 1.

Open Warehouse management > Setup > Warehouse management parameters.

Click the Cycle counting tab on the left pane.

In the Default cycle counting adjustment type code field, select New Cycle Count.

In the Default cycle count work class ID field, select Cycle.

In the Default cycle count work priority field, enter 1.

Set up a spot cycle counting menu item. 1.

Open Warehouse management > Setup > Mobile device > Mobile device menu items.

Click New.

In the Menu item name field, enter Spot Cycle Count.

In the Title field, enter Spot Cycle Count.

Select Work in the Mode field.

Click Save.

Set the Use existing work slider to Yes.

Set the Display inventory status slider to Yes.

Select System directed in the Directed by field.

10. Expand the Work classes FastTab. 11. Click New. 12. Select Cycle in the Work class ID field. 13. Click Cycle Counting in the action pane. 14. On the Mobile device cycle counting form, enter 2 in the Number of attempts field.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

15. Click OK to close the form. 16. Click Save.

Add the Spot cycle count menu item to the mobile device menu. 1.

Open Warehouse management > Setup > Mobile device > Mobile device menu.

Select Inbound in the left-hand pane.

In the Mobile device menus section, select Spot Cycle Count from the Available menus and menu items list.

Click the right directional arrow to add the menu item to the Menu structure list.

Click Save.

Define cycle counting In this exercise you will set up the default counting work priority, enable a mobile device menu item to process both picking and counting operations, enable a counting threshold trigger when a location becomes empty, and enable a cycle counting plan for a specific item in a specific warehouse. Typically, these tasks are performed by a warehouse manager. You can go through this procedure in the USMF demo data company or in your own data.

Set the priority of counting work 1.

Go to Warehouse management > Setup > Warehouse management parameters.

Click the Cycle counting tab.

In the Default cycle count work priority field, enter a number. This step changes the priority of cycle counting work compared to other types of work in the warehouse. By entering a number that is lower than the number for other types of work, you raise the priority of the cycle counting work.

Click Save.

Close the page.

Enable the mobile device 1.

Go to Warehouse management > Setup > Mobile device > Mobile device menu items.

Click New.

In the Menu item name field, type a value.

In the Title field, type a value.

In the Mode field, select 'Work'.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Set the Use existing work option to Yes. When you set this option to Yes, the system will look for existing work when the mobile device menu item is used.

In the Directed by field, select System directed. The warehouse worker will be directed to open work that is in defined work classes.

Expand or collapse the Work classes section.

Create work classes Now, you will create two work classes that will be used with this mobile device menu item. When the menu item is used, these work classes will be queried, and the work that has the highest priority will be shown to the user. 1.

Click New.

In the Work class ID field, select a value.

Click New.

In the Work class ID field, select a value.

Click Save.

Close the page.

Go to Warehouse management > Setup > Mobile device > Mobile device menu.

In the tree, select the menu item that you just created.

Click Edit.

10. Click the arrow to add the menu item to the menu. 11. Click Save.

Create a counting threshold 1.

Go to Warehouse management > Setup > Cycle counting > Cycle count thresholds.

Click New.

In the Cycle counting threshold ID field, type a value.

Set the Process cycle counting immediately option to Yes.

In the Description field, type a value.

Click Save.

Click Select locations.

In the Criteria field, select a value.

Click OK.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

10. Close the page.

Create a cycle counting plan 1.

Go to Warehouse management > Setup > Cycle counting > Cycle count plans.

Click New.

In the Cycle counting plan ID field, type a value.

In the Description field, type a value.

In the Maximum number of cycle counts field, enter a number.

Click Save.

Click Select locations.

In the Criteria field, select a value.

Click OK.

10. In the Days between cycle counting field, enter a number. For example, if the **Days between cycle counting **field is set to 5, cycle counting work will be created every five days. However, if cycle counting work is processed on day three, the next cycle counting work will be created five days after the last cycle counting was processed, on day 8. 11. Click Save. 12. Click New. 13. In the Sequence number field, enter a number. The sort is from the smallest number to the largest number. The value must be more than 0 (zero). 14. In the Description field, type a value. 15. Click Save. 16. Click Define product query. 17. In the Criteria field, enter or select a value. 18. Click OK. 19. Close the page.

Define partial location cycle counting process When you use cycle count plans to create counting work, you can guide the actual counting operations by requesting that only specific products and product variants be counted instead of all on-hand inventory at the location. By filtering on specific products, the warehouse manager can reduce review overhead, help prevent consolidation mistakes, and save time. You can go through this procedure in the USMF demo data company or in your own data.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Create a cycle counting work template 1.

Go to Warehouse management > Setup > Work > Work templates.

In the Work order type field, select Cycle counting.

Click New.

In the Sequence number field, enter a number. The sort order is from the smallest number to the largest number. The value must be more than 0 (zero).

In the Work template field, type a value.

In the Work template description field, type a value.

In the Work pool ID field, enter or select a value.

In the Work priority field, enter a number.

Click Save.

10. Click New. 11. In the Work type field, select Counting. 12. In the Work class ID field, enter or select a value. 13. Click Save. 14. Click Work line breaks. 15. Click New. 16. In the Sequence number field, enter a number. The sort order is from the smallest number to the largest number. The value must be more than 0 (zero). 17. Click Save. 18. Close all pages.

Create a cycle counting plan 1.

Go to Warehouse management > Setup > Cycle counting > Cycle count plans.

Click New.

In the Cycle counting plan ID field, type a value.

In the Description field, type a value.

In the Maximum number of cycle counts field, enter a number.

In the Work template field, enter or select a value.

Click New.

In the Sequence number field, enter a number. The sort order is from the smallest number to the largest number. The value must be more than 0 (zero).

In the Description field, type a value.

10. Click Save.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

11. Click Define product query. 12. In the Criteria field, enter or select a value. 13. Click OK. 14. Close the page.

Exercise - Perform transfers and replenishment Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/15exercise-perform-transfers-replenishment

Set up transfer orders You need to perform some setup for transfer orders for Contoso Orange Juice. To get started, you need to create and link a transit warehouse, set up location directives, and set up a work template.

Create a transit warehouse and link it to Warehouse 30. 1.

Open Warehouse management > Setup > Warehouse > Warehouses.

Click New to create a new warehouse.

In the Warehouse field, enter 31.

In the Name field, enter Site 3 - Transit Warehouse.

In the General FastTab, select 3 in the Site field.

In the Type field, select Transit.

Expand the Warehouse FastTab.

Set the Use warehouse management processes slider to Yes.

Click Save.

Set up a location directive. 1.

Open Warehouse management > Setup > Location directives.

Select Transfer issue in the Work order type field.

Click New in the Location directives FastTab.

Enter Transfer Issue in the Name field.

In the Location directives FastTab, select Pick in the Work type field.

In the Site field, select 3.

In the Warehouse field, select 30.

Click New in the Lines FastTab.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Verify the Sequence number field is 1.

10. Enter 1000 in the To quantity field. 11. Select None in the Locate quantity field. 12. Expand the Location Directive Actions FastTab. 13. Click New. 14. Type Bulk in the Name field. 15. Click Save. 16. Click New. 17. Enter Transfer Issue-Put in the Name field. 18. Select Put in the Work type field. 19. In the Site field, select 3. 20. In the Warehouse field, select 31. 21. Click New in the Lines FastTab. 22. Verify the Sequence number field is 1. 23. Enter 1000 in the To quantity field. 24. Select None in the Locate quantity field. 25. Expand the Location Directive Actions FastTab. 26. Click New. 27. Type Bulk in the Name field. 28. Click Save. 29. In the left-hand pane, select Transfer Receipt in the Work order type field. 30. Click New in the action pane. 31. Enter Transfer Issue in the Name field. 32. Select Pick in the Work type field. 33. In the Site field, select 3. 34. In the Warehouse field, select 32. 35. Click New in the Lines FastTab. 36. Verify the Sequence number field is 1. 37. Enter 1000 in the To quantity field. 38. Select None in the Locate quantity field. 39. Expand the Location Directive Actions FastTab. 40. Click New. 41. Type Bulk in the Name field. 42. Click Save.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

43. Click New. 44. Type Transfer Issue-Put in the Name field. 45. Select Put in the Work type field. 46. In the Site field, select 3. 47. In the Warehouse field, select 32. 48. Click New in the Lines FastTab. 49. Verify the Sequence number field is 1. 50. Type 1000 in the To quantity field. 51. Select None in the Locate quantity field. 52. Expand the Location Directive Actions FastTab. 53. Click New. 54. Type Bulk in the Name field. 55. Click Save.

Set up a work template. 1.

Open Warehouse management > Setup > Work > Work templates.

In the Work order type field, select Transfer issue.

Click New.

Type Transfer Order Issue in the Work template field.

Type Transfer Issue in the Work template description field.

Click Save.

Click New in the Work Template Details area.

Select Pick in the Work type field.

Select the Mandatory check box.

10. Select Transfer in the Work class ID field. 11. Click New in the Work Template Details area. 12. Select Put in the Work type field. 13. Select the Mandatory check box. 14. Select Transfer in the Work class ID field. 15. Click Save. 16. Verify that the Valid check box in the Overview tab is now selected. 17. In the Work order type field, select Transfer receipt. 18. Click New in the action pane. 19. Type Transfer Order Issue in the Work template field.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

20. Type Transfer Issue in the Work template description field. 21. Click Save. 22. Click New in the Work Template Details area. 23. Select Pick in the Work type field. 24. Select the Mandatory check box. 25. Select Transfer in the Work class ID field. 26. Click New in the Work Template Details area. 27. Select Put in the Work type field. 28. Select the Mandatory check box. 29. Select Transfer in the Work class ID field. 30. Click Save 31. Verify that the Valid check box is now selected. 32. Close the pages.

Set up replenishment You have been asked to perform the setup for replenishment for Warehouse 30 for Contoso Orange Juice.

Set up mobile device menu items and menu. 1.

Open Warehouse management > Setup > Mobile device > Mobile device menu items.

Click New.

Type Replenishment in the Menu item name field.

Type Replenishment in the Title field.

Select Work in the Mode field.

Set the Use existing work slider to Yes.

Click New in the Work classes FastTab.

Select the Replenish Work class ID from the list.

Close the page.

10. Open Warehouse management > Setup > Mobile device > Mobile device menu, and select the menu where you would like to add replenishment. 11. Select the Replenishment menu item from the Available menus and menu items pane. 12. Click the right directional arrow to move Replenishment to the Menu structure pane. 13. Close the page

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Set up a work template. 1.

Open Warehouse management > Setup > Work > Work templates.

In the Work order type field, select Replenishment.

Click New.

Type Replenish the Work template field.

Type Replenish in the Work template description field.

Refresh the screen.

Click New in the Work Template Details section.

Select Pick in the Work type field.

Select the Mandatory check box.

10. Select Replenish in the Work class ID field. 11. Click New in the Work Template Details section. 12. Select Put in the Work type field. 13. Select the Mandatory check box. 14. Select Replenish in the Work class ID field. 15. Close the page.

Set up a location directive 1.

Open Warehouse management > Setup > Location directives.

Select Replenishment in the Work order type field.

Click New.

Type Replenish in the Name field.

Select Pick in the Work type field.

Select 3 in the Site field.

Select 32 in the Warehouse field.

Click New in the Lines FastTab.

Verify the Sequence number is 1.

10. Type 500 in the To quantity field. 11. Type ea in the Unit field. 12. Refresh the screen. 13. Click New in the Location directive actions FastTab. 14. Type Replenish in the Name field. 15. Refresh the screen.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

16. Click Edit query. 17. Click Add on the Query page. 18. Select Locations in the Table column. 19. Select Location profile ID in the Field column. 20. Select BULK in the Criteria column. 21. Click OK. 22. Click New. 23. Type Replenish Put in the Name field. 24. Select Put in the Work type field. 25. Select 3 in the Site field. 26. Select 32 in the Warehouse field. 27. Click New in the Lines FastTab. 28. Verify the Sequence number is 1. 29. Type 500 in the To quantity field. 30. Type ea in the Unit field. 31. Refresh the screen. 32. Click New in the Location Directive Actions FastTab. 33. Type Replenish Put in the Name field. 34. Refresh the screen. 35. Click Edit query. 36. Click Add on the Query form. 37. Select Locations in the Derived table column. 38. Select Location profile ID in the Field column. 39. Select PRODIN in the Criteria column. 40. Click OK. 41. Close the Location directives page.

Set up a wave template 1.

Open Warehouse management > Setup > Waves > Wave templates.

Select Shipping in the Wave template type field.

Click New.

Type 30 Replenish in the Wave template name field.

Type 30 Replenish in the Wave template description field.

Select 3 in the Site field.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Select 30 in the Warehouse field.

Set the Automate wave creation, Process wave at release to warehouse, Automate wave release, and Automate replenishment work release sliders to Yes.

Expand the Methods FastTab and verify that the createLoads, allocateWaves, and createWork methods are selected.

10. Select Replenish from the Remaining methods pane. 11. Click the right directional arrow to move Replenish to the Selected methods pane. 12. Close the page.

Set up a replenishment template 1.

Open Warehouse management > Setup > Replenishment > Replenishment templates.

Click New.

Enter Rep Demand in the Replenish template field.

Enter Replenish Demand in the Description field.

In the Replenishment type field, select Wave demand.

In the Wave step code field, enter 200.

In the Replenishment template lines section, click New.

In the Sequence number field, enter 1.

In the Description field, type Demand.

10. In the Replenishment unit field, type ea. 11. In the Work template field, select Replenish. 12. Click Select products. 13. In the Product query page, enter P9500 in the Criteria field. 14. Open Warehouse management > Setup > Waves > Wave template. 15. Select 30 Replenish from the list of wave templates. 16. Click Edit. 17. In the Selected Methods pane, select the Replenish method and enter 200 in the Wave step code field. 18. Click Save . 19. Close the page.

Run replenishment for a load demand You have been asked to run replenishment for a load demand for Contoso Orange Juice once a day on every work day for the next six weeks. Set up the recurring replenishment. 1.

Open Warehouse management > Replenishment > Load demand replenishment. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

In the Load demand replenishment page, select Rep Demand in the Replenish template field.

Expand the Run in the background FastTab.

Set the Batch processing slider to Yes.

Click the Recurrence tab.

In the Define recurrence page, enter today's date in the Start date field.

In the Start time field, enter 7:00 PM.

Select the End by radio button and enter a date six weeks from today's date.

In the Recurrence Pattern area, select the Days radio button.

10. Select the Every weekday radio button. 11. Click OK. 12. Close the page.

Exercise - Configure wave processing Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/16exercise-configure-wave-processing

Configure wave processing You need to set up the criteria that determine what work is generated for a warehouse when a wave is processed, and whether waves are processed manually or automatically. You specify the criteria by setting up wave templates and queries that match a wave with released lines in sales orders, production orders, or Kanban orders. When you set up a wave template, you specify the sequence in which the templates will be matched to released lines on sales orders, production orders, or Kanban. When a line is released to the warehouse or to production, it uses the first wave template that it meets the criteria for. We recommend that you put templates with the most specific criteria at the top of the list. The broader the criteria, the more likely it is for a line to meet the criteria, and this could lead to lines being assigned to the wrong wave. 1.

In USMF, go to Warehouse management > Setup > Waves > Wave templates.

Click New.

In the Wave template name field, type GTL-Wave.

In the Wave template description field, type GTL Wave.

In the Site field, enter or select site 2.

In the Warehouse field, enter 24.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Set the Automate wave creation field to Yes. Select this option to automatically create a wave when a sales order, production order, or kanban is released to the warehouse.

Set the Process wave at release to warehouse option to Yes. Select this option to automatically process the wave and create work when a line is released to the warehouse.

Set the Automate wave release option to Yes. Select this option to automatically release the wave. The picking work is created and made available on mobile devices.

10. Set the Assign to open waves option to Yes. Lines are assigned to waves based on the query filter for the wave template. 11. Set the Process wave automatically at threshold option to Yes. Select this option to automatically process the wave when its values reach the thresholds for weight, shipment, and lines specified in the Wave thresholds field group. This option is available only if Shipping is selected in the Wave template type field. 12. Set the Automate replenishment work release option to Yes. Select this option to create demand-based replenishment work and release it automatically. You must add the replenishment wave method to the wave template, and create a replenishment template of the type Wave demand. 13. Expand the Methods section. Wave template methods allow you to control the sequence of activities that each wave is going through when it's processed. For example, you might have a method for wave replenishment. When you add a method, it's automatically listed in the appropriate location in the sequence of steps. If you've set the Automate replenishment work release option to Yes, you need to add the replenish method here. Wave attributes act as filters, to restrict the kind of items that can use the wave. For example, you could specify an item group. 14. Click Save. 15. Close the Wave templates page. 16. Go to Warehouse management > Setup > Warehouse management parameters. 17. Expand the Wave processing section. 18. In the Wave processing batch group field, enter or select a value. 19. Set the Process waves in batch option to Yes. 20. In the Wait for lock (ms) field, enter the time, in milliseconds, that an allocation step will wait for a system resource that is locked by another allocation step. When this time is exceeded, the wave is not processed and an error message is displayed. 21. Click Save. 22. Close the page. 23. Go to Production control > Setup > Production control parameters. 24. In the Release to warehouse field, select an option. For sales orders and kanban orders, inventory must be reserved before the order is released to the warehouse. Otherwise, the items or allocation lines cannot be processed in a wave. For production orders, you also have the option of choosing Allow partial reservation. For example, this is useful if you have the materials that you need to start production, and can then wait until the additional materials become available to

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finish the process. If you select this option, you must manually repeat the release to warehouse process when the additional materials become available. 25. Close the page.

Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/17knowledge-check

Work with warehouse management in Dynamics 365 for Finance and Operations knowledge check 1.

Which of the following steps must occur before you use the mobile device to receive a purchase order? a.

The delivery must arrive at the dock.

b. The work must be verified. c. 2.

The inventory must be viewed.

Purchase order put away tasks are typically handled by which of the following? a.

Supervisors using a desktop or laptop computer

b. Warehouse workers via a mobile device c.

Automatically and without any user input

d. Warehouse workers using a desktop or laptop computer 3.

What are the two steps in the basic outbound process? a.

Items are picked from a location and then shipped using a put process.

b. Items are sent to a packing station and then to a staging location. c.

Items are picked and then sent to a packing station.

d. Items are sent to a staging location and then shipped using a put process. 4.

What form in the system can be used to view work with a status of Open? a.

The Work templates form

b. The Work details form c.

The Close sales work form

d. The Close purchase work form 5.

Which of the following settings is NOT required to be specified on a wave template? www.dynamicscompanions.com Dynamics Companions

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The site the template will create work for

b. The warehouse the template will create work for c.

Wave weight threshold

d. The sequence in which the templates are matched to released lines on sales orders, production orders, or Kanban orders. 6.

When a wave is processed, the picking work is created based on the work template and the location directive. What does the work template specify? a.

The pick and put locations

b. How the picking work is created c.

The shipping location

d. When the picking work is to be performed 7.

What is the purpose of anchoring? a.

Making it impossible to override a staging or loading location

b. Overriding the staging or loading location c. 8.

Ensuring that sales orders do not leave the dock without authorization

You want to automatically release sales orders to your warehouse. Which of the following would you set up in Dynamics 365 for Finance and Operations to do that? a.

Transfer order

b. Batch job c.

Recurrence

d. Alerts 9.

What must the worker do if a work order is assigned to a cluster by mistake? a.

Break the cluster and then re-create it

b. Pass the cluster to another worker c.

Leave the cluster alone

10. To enable cluster picking, which of the following are you NOT required to set up in Dynamics 365 for Finance and Operations? a.

Cluster profiles

b. Work templates c.

Location Directives

d. Mobile Device Menu Items

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Transportation Parameters

11. Which of the following is NOT a standard prerequisite for setting up replenishment in Dynamics 365 for Finance and Operations? a.

Replenishment templates

b. Request types c.

Load demand

d. Work templates e.

Mobile device menu items

12. Which of the following can you NOT configure menu items in the mobile device to do? a.

Perform an inquiry or activity.

b. Create work that will be performed through another process. c.

Perform work that was created by another process.

d. Remove mobile device users. 13. You printed a label from a mobile device, but the print is blurred. Which of the following is your best next step? a.

Use the label as-is.

b. Handwrite the information on the label before using it. c.

Reprint the label.

d. Ask another user to recreate the work item and print the label using their User ID.

Summary Link: https://docs.microsoft.com/en-us/learn/modules/work-with-warehouse-management/18summary In this module, you learned how to configure mobile devices, create menu items for activities and inquiries, for workers or process, and to process existing work. You also learned about the receipt and storage processes that are used for an item's purchase, arrival and registration. Output orders are used to link sales order lines and transfer order lines with the outbound picking processes that use picking lists. When picking lists are generated from either sales orders or transfer orders, output orders and shipments are automatically created. A picking list has a one-to-one relationship with a shipment. The transfer order shipment or the sales order packing slip can be processed from the shipment.

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Finally, you learned how to perform cycle counting, transfers and replenishments processes.

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Module 4: Configure Transportation Management This module gives an overview of the Transportation management functionality in Microsoft Dynamics 365 for Finance and Operations and teaches you how to configure and use Transportation management. Lessons •

Introduction

•

Planning and configuring transportation management

•

Procedures

•

Routing and transportation flows

•

Transportation engines and freight management

•

Practice Labs

•

Module summary

In this module you learned how to perform: •

Transportation planning

•

Routing

•

Rating

•

Inbound operations

•

Load processes

•

Outbound operations

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Configure and work with transportation management in Dynamics 365 for Finance and Operations Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/ The Transportation management module in Dynamics 365 for Finance and Operations helps you find the most efficient way to deliver goods to your customers by calculating the least expensive and fastest way, and lets you identify vendor and routing solutions for inbound and outbound orders. In this module, you will learn how to perform: •

Transportation planning

•

Routing

•

Rating

•

Inbound operations

•

Loads processes

•

Outbound operations

Introduction Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/1-configure-work-with-transport-mgmt-intro This module gives an overview of the transportation management functionality in Dynamics 365 for Finance and Operations and shows you how to configure and use transportation management. In this module you will learn how to perform: •

Transportation planning

•

Routing

•

Rating

•

Inbound operations

•

Loads processes

•

Outbound operations

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Transportation management lets you use your company's transportation, and lets you identify vendor and routing solutions for inbound and outbound orders. For example, you can identify the fastest route or the least expensive rate for a shipment. A transportation tariff is a system of pricing, rates, and discounts that are typically defined by contracts between a carrier and its customers. The tariffs define how much will be paid for a specific transport. In the United States, the Department of Transportation (DOT) requires interstate movers to make their rates and charges public in a tariff that details the services provided, the conditions under which the services are provided, and the prices charged. Each moving company determines its own rates, charges, and publishes its own tariff. To be able to use transportation management activities on a warehouse you must consider it when you set up a warehouse. On the Warehouse FastTab, set the Use warehouse management processes slider to Yes. Typical transportation functionality includes: •

Analytics: o o

•

Productivity analytics

Freight invoice management

Billing:

o o o

Freight reconciliation Disputes Adjustments Invoice settlement

Audit

Scheduling

Execution: o o o

•

Performance analytics

•

Spend analytics

Dock/yard management Warehouse operations Transport documentation

Status tracking

Transport requests/orders

Order management: o o o

Load planning Load optimization Route planning

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

o •

Load pricing/quotes

Transport purchase order management

Carrier recruitment

Contracting: o o o

•

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Carrier service management Carrier routes management Carrier pricing management

Carrier contract management

Capacity planning

Planning: o

Sourcing plans

The Transportation management module in Finance and Operations is designed for companies that engage logistic service providers for the transportation of their own goods and services. It can be used in scenarios for intercompany transfers and with companies that use their own vehicles for transport. The features are not ideally suited for logistic service providers or carriers, although other features of the system may be suitable for these types of organizations. Scenario

How transportation management can help

Use external logistics providers for transportation activities.

Use Transportation management for inbound and/or outbound transportation.

The company's own fleet is available for delivery/pickup, and delivery charges are passed on to customers.

For the outbound processes, you can use Transportation management to determine the transportation charges and pass them on to customers. However, the carrier invoice reconciliation process isn't required.

The company's own fleet is available for delivery/pickup, but delivery charges aren't passed on to customers, because product prices include transportation.

A lot of the Transportation management functionality isn't required. However, you can use Transportation management to determine the transportation rates and adjust the sales price accordingly.

Logistics service is provided by another legal entity in the same company.

You can use Transportation management by treating the other legal entity like any other shipping carrier. You can't automate the economic transactions between legal entities.

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Scenario

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

How transportation management can help Therefore, you must handle these transactions manually (for example, by creating a purchase order). In the legal entity that provides the logistics services, Transportation management can be used to determine transportation rates.

Inbound transportation When you order items from a vendor, and the items must be delivered to your warehouse, you might want to arrange the transport of the items yourself. You can use Finance and Operations to plan the transportation and receipt of the inbound load. The following illustration shows the business process flow for planning transportation for an inbound load. The following image shows an example of an inbound transportation flow:

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Outbound transportation You can plan and process an outbound load to ship specific items from a company's warehouse to a customer. You can use Finance and Operations to plan the transportation and shipping of an outbound load. The following illustration shows the business process flow for planning and processing outbound loads for shipping.

Planning transportation management Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/2-planning-transp-mgmt Transportation planning can be based either on orders or on the shipments that are created based on those orders. One of the most important pieces of setting up transportation management in Finance and Operations involves gathering requirements. To gather requirements, you should ask your customer questions such as: •

What type of trucks and equipment will be used? For example:

•

Are you using your own fleet, or a third party?

•

Are there capacity requirements for the equipment?

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•

Are there special requirements like frozen or refrigerated goods for certain items?

•

Are there special requirements for specific customers?

Do you need to schedule inbound and outbound shipments? For example: •

How many dock doors do you have?

•

Are they dedicated to inbound or outbound?

•

Do you require carriers to call ahead?

•

Do carriers have standard dock door times? For example, they come at 3 pm every day?

•

Do you typically have open dock doors at any time and staff to load or unload the trucks?

What carriers do you use, and do they have any special requirements? For example: •

Are no hazardous materials or the like allowed?

•

Are certain carriers limited to certain countries/regions?

•

Are certain carriers more expensive?

How will shipping charges be added to orders? •

Will charges be passed on to customer orders?

•

Should charges add to the landed cost of an inbound order?

•

Are charges billed back to you by a third-party freight company?

•

Do estimated charges need to be reconciled against the final invoice?

The answers to these questions and many more will help you determine what needs to be configured in the system. The answers will tell you important information such as: •

When equipment will need to be configured

•

Which load templates and requirements you require

•

How many carriers and types of services you require?

•

If appointment types and reasons will be required

•

What charges, fuel surcharges, and so on should be configured

•

If special codes will need to be configured.

The shipments are not required for transportation planning. Transportation management is part of supply chain management that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption to meet customer requirements.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Transportation management is a subset of the logistics management function that focuses on the physical flow of goods and services and their associated information between the point of source and the point of consumption. The following figure shows the integration of transportation management in supply chain management:

Transportation management integrates supply and demand management functions encompassing the planning and management of all activities involved in sourcing and procurement, conversion and all logistic management activities.

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Configure transportation management Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/3-configure-transport-mgmt

Rate masters Rate masters are a key part of the rating setup for a shipping carrier. You can use rate masters to determine the available rates for the shipping carrier and to determine whether the rates justify considering the shipping carrier for an assignment. The rate master is associated with a shipping carrier in the carrier's rating profile. For each rate master, you must define rating metadata and a rate base.

Before you set up a rate master, you must set up at least one set of rating metadata. The rating metadata can be applied to any rate master. It defines lookup criteria that are used to determine rates of a shipping carrier. Setting up rating metadata requires the following tasks: •

Set up rating metadata with lookup criteria, such as postal code and carrier service.

•

Associate a rate master with the rating metadata and, on the rate master, provide values for criteria, such as postal code and carrier service. One or more rate masters are associated with a shipping carrier in the Rating profile FastTab. You can use rate masters to determine the available rates for the shipping carrier and to determine whether the rates justify considering the shipping carrier for an assignment.

The break master defines the break values that you must associate with the rate base. For example, distances are structured into breakpoints of 50, 100, and 150 miles. Up to 50 miles is charged with 10 USD per assignment, between 50 and 100 miles is charged with 18 USD, and from 100 to 150 miles is charged with 20 USD.

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If you want to set up a tariff structure for the rate master, you can create a rate base. The rate base structures rates in breakpoints. To calculate rates, you must create one or more engines, or automatically initialize the base engine data. You can search for available shipment rates based on information such as travel distance or zones in a region. The search criteria are interpreted by transportation management engines that calculate the available rates. Finally, you will link all the rating information to a carrier by creating a rating profile and then selecting one or more rating profiles on the Rating profiles FastTab of the Shipping carriers page.

Rating metadata Rating metadata refers to a unique set of determinants or fields that are used by the carriers and services to determine the transportation tariff. Each set of metadata includes rate assignments, which are a minimum set of attributes that are required to calculate the tariff for a given shipment. For example, this might include the origins country/region and zip code, along with the shipments destination country or region, and zip code. The data for the assignments are assigned to a lookup type which is a corresponding master data field in the system such as an LTL (less than truckload) code, STCC (Standard transportation commodity code), Postal code, and so on. Follow the steps in this procedure to set up a rate master for an air carrier: 1.

Go to Transportation management > Setup > Rating > Rate master.

Click New.

In the Rate master field, type a value.

In the Name field, type a value.

In the Rating metadata ID field, click the drop-down button to open the lookup. The rating metadata ID will determine the data needed for the rate master, as it defines the metadata expected by the TMS engine using this rate master.

You could, for example, select the P2P option.

Click Save.

To set up the rate base, click Rate base.

Click New.

10. In the Rate base field, type a value. 11. In the Name field, type a value. 12. In the Break master field, click the drop-down button to open the lookup. 13. You could, for this example, use weight. 14. Toggle the expansion of the Details section. 15. Click New. 16. In the Drop-off postal code from field, type '30301'. www.dynamicscompanions.com Dynamics Companions

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17. In the Drop-off postal code to field, type '30318'. 18. In the Drop-off country region field, type 'USA'. 19. In the <1.00 Lbs field, type '100'. Insert the rate per lbs. if the total weight of the load is less than 1 pound. 20. In the <5.00 Lbs field, type '300'. Insert the rate per lbs. if the total weight of the load is less than 5 pounds. 21. In the <20.00 Lbs field, type '500'. Insert the rate per lbs. if the total weight of the load is less than 20 pounds. 22. In the <100.00 Lbs field, type '1000'. Insert the rate per lbs. if the total weight of the load is less than 100 pounds. 23. In the <1,000.00 Lbs field, type '3000'. Insert the rate per lbs. if the total weight of the load is less than 1000 pounds. 24. Click Save. 25. Close the page. 26. To assign the rate base, toggle the expansion of the Rate base assignments section. 27. Click New. You can have several rate base assignments for each rate master. This makes it possible to create several different price points for each carrier depending on destinations, services, or different rate bases. In this procedure you will only create one rate base assignment. 28. In the Name field, type a value. 29. In the Rate base field, click the drop-down button to open the lookup. 30. In the list, find and select the desired record. 31. In the Service field, click the drop-down button to open the lookup. 32. In the list, find and select the desired record. 33. In the Pick-up Postal Code field, type '98052'. Specify which postal code this rate base assignment should be valid from. 34. In the Pick-up Country Region field, type 'USA'. 35. Click Save. Rating metadata is engine specific. You must set up rating metadata before you can set up a rate engine. The rating metadata required for the engines shipped with Finance and Operations is generated with the engines when you click the Initialize base engine data button in the Transportation management > Setup > Transportation management parameters page.

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We don't recommend people to create their own rating metadata for existing engines, this is error prone as it can cause the engine to fail unless the rating metadata strictly conforms to the rules of the engine. 1.

Open Transportation management > Setup > Rating > Rating metadata.

Click New to create new rating metadata.

Enter a unique ID and name for the rate base type.

In this example we will set up two rate bases, and then an assignment, and we'll make them all mandatory. 1.

In the Described data type field, select Rate base to set up criteria fields.

In the Rate base type metadata FastTab, click New.

In the Data type field, select Integer for the input type of the data.

In the Lookup type field, select ZIP/Postal code.

Select the Mandatory check box.

In the Described data type field, select Rate base to set up criteria fields.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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In the Rate base type metadata FastTab, click New.

In the Data type field, select String for the input type of the data.

In the Lookup type field, select Region.

10. Select the Mandatory check box. 11. In the Described data type field, select Assignment to set up criteria fields. 12. In the Rate base type metadata FastTab, click New. 13. In the Data type field, select Real for the input type of the data. 14. In the Lookup type field, select a type. 15. Optionally, select the Mandatory check box. 16. Close the page If you are creating a rate base type with three rate bases and four assignments, you could select the •

STCC Class - string

•

Mileage - integer or real

•

Weight - real

The options for the rate bases are: •

Origin country/region - string

•

Origin zip code - integer

•

Destination country/region - string

•

Destination zip code - integer

The Standard transportation commodity code (STCC) is a publication containing specific product information used on waybills and other shipping documents. An STCC is a seven-digit numeric code representing 38 commodity. Assignment of an STCC is associated by a commodity description developed to conform to exact descriptions in freight transportation classifications of rail and motor carriers. Accompanying an STCC are two corresponding codes: the Harmonized commodity description coding system, or Harmonized code, and a Standard classification of transported goods (SCTG) category. The LTL (or less-than-truckload) class refers to the NMFC (or National motor freight classification) code and is a category of your LTL freight. The freight class determines the carrier shipping charges by identifying the size, value, and difficulty of transporting your LTL freight.

To set up a new LTL class follow these steps: 1.

Open Transportation Management > Setup > Transportation standards > LTL classes.

Click New and create (or edit existing) LTL class codes.

Enter a value in the LTL class field.

Enter a value in the Name field.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

Enter a value in the Class field.

Close the page.

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

To create an STCC Code follow these steps: 1.

Open Transportation management > Setup > Transportation standards > STCC Codes.

Click New to create a new STCC code.

Enter a unique ID and descriptive name for the STCC code.

Close the page.

The National motor freight classification (NMFC) code determines how the item is rated for certain carriers. It is also important to be specified for the bill of lading. After you have created the LTL (Less than Truckload) codes, you can create the NMFC codes in Finance and Operations. In most cases, the class will be the same for the NMFC and the LTL class. However, in some cases, an LTL shipment may cause the same product to be in a different class. After you create the NMFC code, you can link them to the products.

To create an NMFC code, follow these steps: 1.

Open Transportation management > Setup > Transportation standards > NMFC Codes.

Click New to create a new NMFC code.

Enter a unique ID and descriptive name for the NMFC code.

Optional: Enter the LTL class the NMFC corresponds to.

Optional: Enter the bill of lading type for the NMFC code.

Close the page.

The Harmonized code is an internationally standardized system of names and numbers for classifying traded products developed by the World customs organization. It accompanies the STCC code.

To set up a Harmonized tariff schedule code, follow this procedure: 1.

Open Transportation Management > Setup > Transportation Standards > Harmonized Tariff Schedules

Click New.

Enter a value in the Harmonized tariff schedule field.

Enter a name in the Name field.

Close the page.

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To link an NMFC, STCC, and Harmonized code to a product, follow these steps: 1.

Open Product information management > Products > Products.

Select a product from the list.

Click Edit in the action pane.

Open Warehouse FastTab.

Enter a code in the NMFC code field.

Enter a code in the STCC code field.

Enter a code in the Harmonized system field.

Close the pages.

Shipping carrier The shipping carrier is one of the basic setups required for transportation management. The carrier is a key input for the orders and loads that are created. Use the Shipping carrier* page to set up a carrier service, mode of shipment, transportation tender, and rating profile for the shipping carrier.*

To create a shipping carrier follow these steps: 1.

Open Transportation management > Setup > Carriers >Shipping carriers.

Click New to create a new shipping carrier.

In the Shipping Carrier field, enter the type of the shipping carrier.

In the Name field, enter a name for the shipping carrier.

In the Mode field, select the shipment mode type.

On the Overview FastTab, specify the shipping carrier details by using the following fields.

•

Activate shipping carrier: Set this slider bar to Yes to use the specified shipping carrier for shipment.

•

Vendor: Select the vendor account to which you want to assign the shipping carrier.

•

SCAC: Enter an ID for the Standard Carrier Alpha Code (SCAC).

•

Activate carrier rating: Set this slider to Yes to enable automatic rating for the shipping carrier.

Optional: In the Transportation tender type field, select one of the following methods for updating the details of transportation tender: •

Manual - Manually update the transportation tender details by using the Transportation tenders page.

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â&#x20AC;˘

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

EDI - Automatically update the transportation tender details by using an Electronic Data Interchange (EDI) in the Transportation tenders page.

Optional: In the Pro number sequence field, you can select a number sequence that is associated with a generic engine, if any are available.

On the Addresses FastTab, click New, and then enter the address and purpose of the shipping carrier.

10. Click OK to save the address. 11. Close the page.

Transportation mode The transportation mode represents the type of transport that the carrier uses for freight deliveries, such as Less than load (LTL), Truckload (TL), or Parcel. The transportation method represents the form of transport that the carrier uses for freight deliveries, such as air, ground, ocean, or rail.

To create a transportation mode, follow these steps: 1.

Open Transportation management > Setup > Carriers > Mode.

Click New to create a new mode.

Enter a unique ID and a descriptive name for the mode.

Close the page.

To associate a shipping carrier with a transportation mode, follow these steps: 1.

Open Transportation management > Setup > Carriers > Shipping carriers.

Click Edit.

Select a shipping carrier.

In the Mode field, select a transportation mode.

Close the page.

To create a transportation method, follow these steps: 1.

Open Transportation management > Setup > Carriers > Transportation methods.

Click New to create a new transportation method.

Enter a unique ID and descriptive name for the transportation method.

Close the page.

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Carrier services One or more carrier services must be configured for a carrier. The carrier service defines the services offered by the carrier. For example, next day air, second day air, and ground would be examples of a carrier service.

To create a carrier service, follow these steps: 1.

Open Transportation management > Setup > Carriers > Shipping carriers

Select LTL in the left-hand pane.

Expand the Services FastTab.

Click New.

Enter a unique ID in the Carrier service field.

Enter a Name for the carrier service.

Optional: Select a Load template ID.

Select a Transportation method.

Enter a Mode of delivery.

10. Optional: Enter an External code. 11. Select a Billing group ID. 12. Close the page.

Carrier groups Carrier groups are used to group shipping carriers with their corresponding shipping services.

To create a carrier group, follow these steps: 1.

Open Transportation management > Setup > Carriers > Carrier group.

Click New.

Enter a Carrier group ID and a name.

In the Details FastTab, click New.

Select a Shipping carrier.

Select a Carrier service.

Close the page.

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Transportation status You can set up master codes for transportation statuses to interpret codes provided by your shipping carriers. This is used for EDI integration with shipping carriers to provide a status. The transportation status that you provide for a transportation master status code can help you track the status of a load, shipment, or container.

To create a transportation status, follow these steps: 1.

Open Transportation management > Setup > Transportation status masters.

Click New to create a transportation status master.

In the Transportation status master field, enter a unique code for the transportation status.

In the Transportation type field, select either Shipping carrier or Hub as the type of transportation.

Enter a name and transportation status.

Close the page.

To map a transportation status to a carrier status, follow these steps: 1.

Open Transportation management > Setup > Carriers > Carrier transportation status.

Click New to map a code from a shipping carrier to a transportation status master code.

Select the unique ID for the shipping carrier and the carrier service.

Select the transportation status code that you want to map to the selected shipping carrier's code.

Enter the external code that is used by the shipping carrier.

Close the page

Number sequence The number sequence page in the Transportation management module lets you set up various pronumbers to be used by the LTL and TL carriers.

To create a number sequence for a pro number, follow these steps: 1.

Open Transportation management > Setup > Carriers > Number sequences.

Click New to create a new number sequence.

Enter a unique ID and descriptive name for the number sequence.

In the Number sequence type field, Pro number is the only option.

In the Check digit field, Check digit is the only option. This is set up as a generic engine.

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In the Sequence FastTab, provide information on the sequence.

Close the page.

To link a number sequence to a carrier, follow these steps: 1.

Open Transportation management > Setup > Carriers > Shipping carriers.

Select a shipping carrier.

Click Edit.

On the Overview FastTab, select an option in the Pro number sequence field.

Close the page.

Load templates Load templates are used in the load planning workbench to allow for the defaults for weight restrictions and/or equipment restrictions for the load. For example, if the load is frozen goods, then a load template would be set up that identifies a refrigerated truck and the weight that the selected equipment is restricted to.

To create a load template, follow these steps: 1.

Open Transportation management > Setup > Load building > Load templates.

Click New to create a new load template.

Enter a unique ID and descriptive name for the load template.

Enter Load height, Load width and Load depth.

Enter Max. allowed load volume.

Enter Max. allowed load weight.

Enter Maximum allowed load gross weight.

Enter Maximum number of freight pieces allowed. This can relate to number of pallets or loosed boxes etc.

Close the page.

Transportation tender A transportation tender is a shipping document that has an assignment for a load, a route, or part of a route. You can use this transportation tender to keep track of the dates and rates that are approved between the customer and a shipping carrier. You can create a transportation tender from a route, a route segment, or from a load on a route segment. You can also create and update these documents in the Transportation tenders form.

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The first step after you are finished creating the transportation tender is to submit it. This updates the workflow status from Pending to Submitted. When confirmation from the carrier is received, you confirm it and enter confirmed details such as the rate and pickup date. You can also create and update these documents in the Transportation tenders page.

To create a transportation tender, follow these steps: 1.

Open Transportation management > Planning > Dock appointment scheduling > Transportation tenders.

In the Filter by field, select one of the following options to indicate the type of assignment that is requested.

Load - This refers to a pickup of a specific load

Route - This refers to a load that will be transported using a route

Route segment - This refers to a load that will be transported using part of a route

Route segment for a load - This refers to a specific load that will be transported using part of a route

Click New to create a new transportation tender. The tender document automatically displays an ID in the Transportation tender field.

In the References FastTab, In the Reference ID field, select a unique ID for the load. The loads are filtered according to your selection in the Filter by field.

On the General FastTab, in the Shipping carrier field, select the shipping carrier that should pick up the load.

10. In the Carrier service field, select a service that is offered by the carrier. 11. Enter the remaining information in the Shipping field group. 12. In the Rates field group, enter the date and rate request for the carrier. The Requested pickup date and time and the Requested rates fields are for the customer request. If the carrier wants to update the information before confirmation, this information must be entered in the Confirmed pickup date and time and the Confirmed rates fields. You can view the exchange of information between the customer and the carrier on the History FastTab. 13. Close the page.

To submit, confirm, and accept a transportation tender, follow these steps: 1.

Open Transportation management > Planning > Dock appointment scheduling > Transportation tenders.

Click on Update status

Click on Submit

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

Click on Confirm

Enter Rate and Date

Press OK

Click on Update status

Click on Accept

Close the page.

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Transportation management parameters To review the transportation management parameters, follow these steps: 1.

Open Transportation management > Setup > Transportation management parameters.

On the General tab, review the following FastTabs: •

Appointment scheduling - Set the Default duration of an appointment scheduled for delivery or pickup of shipment.

•

Driver check-in and check-out - Enter an alert interval for driver checking in or out

•

Vendor invoice - Select options for vendor invoices.

•

Hub type - Select a Port hub type.

•

Shipment - Indicate whether shipments are planned by shipments.

•

In transit planning - Indicate whether in transit planning is used.

•

Loads - Determine whether to: o o o o o

Automatically create at sales order entry? Automatically create at purchase order entry? Automatically create at transfer order entry? Override outbound shipped confirmation date? Enable split of transfer order ship confirmation and posting transfer ship?

•

Direct delivery - Create customer charges for direct delivery.

•

Engines - Initialize base engine data.

•

Freight reconciliation -Indicate whether to enable freight reconciliation. if this disabled no freight bills will be generated.

•

Bill of lading - Indicate whether to create a master bill of lading when there is more than one shipment on a load.

On the Reports tab, review the following FastTabs: •

Load report - Select a load report note type.

•

Bill of lading - Select a carrier purpose.

On the Print management tab, the various documents in transportation management that are managed by print management are listed.

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On the Number sequences tab, standard number sequences in transportation management are listed.

Routing and transportation flows Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/4-routing-transportation-flows Let's review some basic routing terminology: •

Transportation mode - Represents the form of transport that the carrier uses for freight deliveries, such as Less than truckload (LTL), Truckload (TL), or Parcel. A carrier can be associated with one or more transportation modes. We looked at how to configure a mode in the Core Transportation Management Setup elearning course.

•

Transportation method - Represents the form of transport that the carrier uses for freight deliveries, such as air, ground, ocean, or rail. A carrier can be associated with an unlimited number of transportation methods. We also looked at how to configure a mode earlier in the Core Transportation Management Setup elearning course.

•

Transportation constraint - Limitation to ship an items based on conditions that you configure. The constraints can be configured for items, shipments, or carriers, and each constraint can be set as a warning or a hard restrictions.

•

Route plans - Contain route segments that provide information about the shipping carrier, carrier service, carrier group, origin and destination hubs, mode of transport, and other details pertaining to freight delivery. They define the starting and stopping points for each variation of starting and stopping points that you will travel.

•

Routing guide - Combines one or more route segments together to create the definition of which equipment, customers, hubs, and limitations such as weight or volume apply within a given time frame for a specific route.

There are six steps in the route setup process: 1.

Create hub types, which are used to group hubs by type such as seaport, airport, and rail yard just as a few examples.

Create hubs, which are physical locations.

Create mileage and transit times, relying on information from mileage engines.

Create route plans, which link hubs together.

Create a routing guide, which links routing plans together.

Validate the routing setup to make sure it is configured properly.

Note: While planning the route setup consider that hubs, route plans and route guides are not mandatory to create a process where you can rate and ship loads. They are mainly used if you have specific routing criteria or static routes you need to map out.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Hub types and hubs Hub types categorize hubs. You can set up hub types to organize hubs into categories based on your selected criteria. A hub is a centralized location for shipments that is typically used for staging before the shipment moves to the end location or another hub. Hubs are typically used in a multimodal transportation model. Multimodal transportation (which is sometimes referred to as combined transport) is the transportation of goods under a single contract, but performed with at least two different modes of transport; the carrier is liable (in a legal sense) for the entire shipment, even though it is performed by several different modes of transport (by rail, sea, and road, for example). Hubs are optional, and they can be set up from the Hub masters page in the Transportation management module. When you create new hubs, make sure that they are associated with accurate addresses, because these will be used by Rate/route workbench to evaluate the correct routing guide and transportation rates

To set up a hub type, follow these steps: 1.

Open Transportation management > Setup > Routing > Hub types.

Click New in the action pane.

Enter a hub type and name in the respective fields.

Close the page.

To create a hub, follow these steps: 1.

Open Transportation management > Setup > Routing > Hub masters.

Click New.

In the Hub field, enter an ID for the hub, which usually refers to a location

On the Codes FastTab, in the Hub type field, select identification for the hub type.

Optional: In the Rate master field, select a rate master.

Optional: On the Effective dates tab, provide information about periods where the hub rate applies.

Optional: On the Address and Additional vendor contact information tabs, provide an address and additional vendor contact information

Close the page.

After you set up a hub, you can associate charges with the hub, including designating an accessorial master. You will also need to specify the hub for either pickup or delivery. You do this in the Rating area of transportation management. Before you can set up accessorial charges for a hub, you will need to set up an accessorial master for the hub if one does not already exist

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To set up an accessorial master, follow these steps: 1.

Open Transportation management > Setup > Rating > Accessorial masters.

Click New.

Enter a title and name for the accessorial master.

Select Hub in the Accessorial type field.

Close the page.

To configure hub accessorial charges, follow these steps: 1.

Open Transportation management > Setup > Rating > Hub accessorial charges.

Click New.

In the Hub accessorial ID field, enter a name.

In the Hub field, select the hub to which you will associated the charges.

In the Hub position field, identify whether these are drop-off or pickup charges.

In the Billing group ID field, select Freight or Fuel for the type of charges.

In the Accessorial master field, select the accessorial master.

Close the page.

Route plans Route plans can include information about the origin and destination hubs, shipping carrier, carrier service, carrier group, mode of transport, and other details relating to freight delivery. They define the starting and stopping points for each variation of starting and stopping points that will be traveled.

To define a route plan with hubs, follow these steps: 1.

Open Transportation management > Setup > Routing > Route plans.

Click New to create a new route plan.

Enter a unique identifier and a name for the route plan.

On the Details FastTab, click New to create line details for the route plan.

In the Sequence field, enter the order in which the route segments in the route plan are used.

Enter a name for the route segment.

In the Origin hub and Destination hub fields, select the starting and ending hubs for the route segment.

Optional: In the Person in charge for payment field, select the party that is responsible for paying for the freight services.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Optional: Select the vendor and the invoice account details for the vendor who will transport the freight.

10. Optional: Click Create spot rates to create spot rates for route segments. 11. To update the route hub configurations, click Edit hubs to open the Route hub configuration form. 12. Close the page.

Route guide A route guide combines one or more route plans or segments together to create the definition of which equipment, customers, hubs, and limitations such as weight or volume apply within a given time frame for a specific route. For example, you can specify an origin hub and a destination hub, limits for the container volume or weight, and a shipping carrier, service, or group.

To configure a route guide with a hub, follow these steps: 1.

Open Transportation management > Setup > Routing > Route guides.

Click New to create a new route guide.

Enter a unique identifier and a name for the routing guide.

On the Information FastTab, in the Direction field, select the direction for loads.

Select the Active slider to enable the routing guide.

Optionally, you can select equipment, whether the location is residential, accounts for the customer and the customer invoice, and transportation limits.

Optional: In the Equipment field, select the equipment that you want to use for the load.

Optional: Select the Residential check box to determine the surcharge rate for remote deliveries.

Optional: On the Accounts FastTab, select the customer and the account number for the customer invoice

10. Optional: On the Limits FastTab, enter the limits for the container volume, the container weight, and the number of containers. 11. Optional: In the Effective start date and time and Effective end date and time fields, select the effective start date and time and end date and time for the route plan. 12. Optional: On the Origin and Destination FastTabs, select the settings for origin and destination hubs. 13. On the Result FastTab, select unique IDs for the shipping carrier, carrier service, and carrier group. 14. In the Route plan field, select a route plan for the routing guide. Route guides are available on the Rate route workbench, where loads can be matched to routes either manually or automatically.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Using the route plans we just created, we're going to look at the results in the Rate route workbench. By doing this, we can ensure that the route plans and guide we set up are configured correctly. If they are, they will be picked up in the Rate route workbench for the origin/destination combination.

To view the route results for route plans, follow these steps: 1.

Open Transportation management > Planning > Rate route workbench.

In the From and To columns, select the information for the hubs that were created in the route plan.

In the Data column, select the configurations that were set up in previous courses.

In the Warehouse column, select the configurations that were set up in previous courses.

In the Rate shop data column, select the configurations that were set up in previous courses.

In the Route results FastTab, view the route plan.

Constraints Constraints can apply to items, shipments, or shipping carriers. Examples would be things like hazardous chemicals as an item, a carrier will not allow fragile items to be shipped, or carriers that do not have refrigerated areas so they cannot ship certain food items. You may also have carriers who will not be allowed to go to certain customers or pick up from certain vendors. On the Constraints page in the Transportation management module, all of these constraints can be entered and then considered when creating shipments. One of the constraints you can set up is a filter code. By setting up filter codes on an item group, you can make the codes required for products in the item group. You can specify filter codes for released products. For example, you can use filter codes to group products that must be located in a storage zone with a specific temperature. You can make specific inventory items available only for customers or vendors, or for both customers and vendors. For any item that you set up as generally available, customer filters and vendor filters do not apply.

Load building strategy Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/5-load-building-strategy The following are some examples of when load building strategies to automatically build loads are useful: â&#x20AC;˘

When you regularly ship a certain set of products. Rather than building loads every time, you can apply load building strategies.

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â&#x20AC;˘

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

When you want to maximize efficiency by avoiding half full loads.

Finance and Operations provides a load building strategy that is named the Volume-based load building strategy. This strategy lets you use the maximum values that are specified for height and weight in the load template, or you can override the settings by entering new values. To use this strategy, select it in the Load building strategy field on the Transportation management > Planning > Load building workbench page.

Transportation management engines Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/6-transportation-management-engines Transportation management engines define the logic that is used to generate and process transportation rates in Transportation management. A transportation management engine calculates tasks, such as the carrier's transportation rate. The engine system lets you change calculation strategies at runtime, based on data in Finance and Operations. A transportation management engine resembles a plug-in that is related to a carrier contract. The following table shows the transportation management engines types that are available in Finance and Operations.

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Transportation management engine

Description

Rate engine

Calculates rates.

Generic engine

Simple auxiliary engines that are used by other engines that do not require data from Finance and Operations, for example, an apportionment engine. Apportionment engines are used to reduce the final costs of transportation to specific orders and lines, based on dimensions, such as volume and weight.

Mileage engine

Calculates the transportation distance.

Transit time engine

Calculates the time that is required to travel from the start to the end destination.

Zone engine

Calculates the zone based on the current address and calculates the number of zones that must be crossed to travel from address A to address B.

To rate a shipment using a specific carrier, you must configure multiple transportation management engines. The Rate engine is required, but other transportation management engines may be required to support the Rate engine. For example, the Rate engine can be used to retrieve data from the Mileage engine to calculate the rate based on mileage between the source and the destination. The data that you use when you calculate rates in Finance and Operations is controlled by the metadata configuration. For example, if you want to search for rates based on postal codes you must set up metadata based on the lookup type of a postal code. Transportation management engines that are used to retrieve the data that is required for rate calculation from external systems don't need metadata. The rate data for these engines can be retrieved from external transportation carrier systems, usually through a web service. For example, can use a mileage engine that retrieves data directly from Bing maps so that you don't need a metadata for this engine. Metadata for transportation management engines is configured differently for the different types of engines.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

Transportation management engine

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Metadata configuration

Rate engine

Requires a Rate base type. The rate base type contains metadata for the rate base data and the rate base assignment data. The structure of rate base metadata is determined by the type of rate engine. The structure of the rate base assignment metadata is determined by the type of rate base assigner that is associated with that rate engine. You set up the rate base type of a rate engine on the Rate engine page and on the Rate master page.

Zone engine

Requires metadata to be set up directly on the zone master.

Transit time engine and Mileage engine

Retrieves the metadata directly from the mileage engine's configuration setup form.

Example of metadata for a rate engine The transportation management engine requires identification of the origin address, the destination state and country/region, and the start and end point of the shipment. By using these requirements, the metadata would look like the data in the following table. The table also includes information about what type of input data is required. You set up this information in Transportation management > Setup on the Rating metadata page.

Sequence

Name

Field type

Data type

Lookup type

Mandatory

Origin postal code

Assignment

String

Postal Code

Selected

Destination state

Assignment

String

State

Destination start postal code

Assignment

String

Postal Code

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Sequence

Name

Field type

Data type

Lookup type

Mandatory

Destination end postal code

Assignment

String

Postal Code

Selected

Destination country

Assignment

String

Country/region

Selected

Bill of lading Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/7-bill-of-lading A bill of lading is a legal document between the company that ships the items and the carrier. The document accompanies the shipped items, and it serves as a receipt of shipment when the items are delivered at the destination. If you're using warehouse management, there are two ways to generate a bill of lading: •

Create the report manually, using the Bill of lading page.

•

Generate the report from the Load planning workbench.

If you generate the bill of lading from the Load planning workbench, the load status must be Shipped. If there's more than one shipment in the load, a bill of lading is created for each shipment. After a bill of lading has been created you can make changes to it on the Bill of lading page.

Master bill of lading If there's more than one shipment in the load, you can generate a master bill of lading. This has the same layout and information as a bill of lading but contains the summarized content for all the shipments. If the Create a master bill of lading when there's more than one shipment on a load option is set to Yes on the Transportation management parameters page, a master bill of lading is automatically generated if you create a bill of lading from the Load planning workbench, and there's more than one shipment. You can also get a list of the bills of lading by clicking Related information > Bill of lading. If you're creating bills of lading manually, you can create a master bill of lading on the Bill of lading page.

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Plan freight transportation routes with multiple stops Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/8-plan-freight-routes-multiple-stops You can use route plans and route guides for complex transportation routes that have multiple stops. If the same route will be used on a regular basis, you can set up a scheduled route.

Route plans A route plan contains route segments that provide information about the stops that are visited on the route and the carriers that are used for each segment.

You must define the stops on the route as hubs. A hub can be a vendor, a warehouse, a customer, or even just a reloading place where you change carrier. For each segment, you can define "spot rates" for various charges. Here are some examples: •

Charges for travelling to the given segments

•

Charges for a picking up the goods

•

Charges for dropping off the goods

Each route plan must be associated with a route guide.

Route guides A route guide defines the criteria for matching a load to a specific route plan. For example, you can specify an origin hub and a destination hub, limits for the container volume or weight, and a shipping carrier, service, or group. Route guides are available on the Rate route workbench page, where loads can be matched to routes either manually or automatically. If the route guide is for a scheduled route, it's also available on the Load building workbench page.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

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Scheduled routes A scheduled route is a predefined route plan that has a schedule for the shipping dates. Scheduled routes and non-scheduled routes differ in the way that loads are assigned to them. If you assign a nonscheduled route by using the Rate route workbench, only the load and the route guide are validated. If you assign a scheduled route, the dates and addresses from the orders and the hubs, and the date on the route plan, are also considered. You don't have to use the Rate route workbench page to manually assign loads to a scheduled route. Instead, you can use the Load building workbench to suggest that loads be built based on the customer addresses and delivery dates from sales orders for a given scheduled route. For scheduled routes, the route plan will have fixed origin and destination hubs. Typically, the shipping carrier and service will be the same for all segments, but they can differ. The destination hubs are created by using the postal codes of the customers that are visited on the route. Several route schedules can be defined for one route plan. The route plan must be associated with a route guide. However, for scheduled routes, the plan can be associated with only one route guide. The route schedule is used only to create the actual routes on the Route schedule page. You can use the default load template when you propose loads on the Load building workbench.

Load building workbench The Load building workbench uses the customer addresses and delivery dates from sales orders, and the scheduled routes that are available, to propose a load. By default, the values from the route are entered on the workbench. However, you can select a "from" date that is earlier than the "from" date on the route. When a load is proposed, the delivery address and delivery date of all open sales orders are checked. If the postal code of the delivery address matches the postal code of a hub in the route plan, and if the delivery date is within the range that is selected in the criteria, the sales order is proposed for the load. The capacity of the load template is also considered. For scheduled routes only one load is proposed at a time but when not using schedule routes multiple loads can be proposed. If you have a sales order that isn't included, you might have to use a different load template (for example, a load template for a bigger truck or container) or plan an extra delivery.

Plan loads using hub consolidation It can be useful to consolidate shipments in a hub when you deliver goods from different warehouses to the same customer, or when goods are delivered from multiple vendors to the same warehouse.

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EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Building loads Before you can use hub consolidation, you must enable the In transit planning option on the Transportation management parameters page. You must also create the hubs where consolidation will occur. The following diagram shows an example of hub consolidation. In this case, sales orders from different warehouses are going to the same customer. The basic loads are created based on sales orders in the usual way, by using the Load planning workbench page. To consolidate the two loads in a hub before they are delivered to the customer, on the Load planning workbench page, in the Transportation field, select Hub consolidation. When you select the correct hub for each load, the loads will have the hub as the "drop off" destination. You will also have two "transportation request lines" in the Supply and Demand section on the Load planning workbench page. You can then add these two lines to a new load. This new load will have both sales order lines, and will also have the hub as the "pick up" address and customer A as the "drop off" destination. The three loads are then ready to be rated and routed like any other load. You can select whatever shipping carrier the system suggests for each load.

You can also use the same method to consolidate loads for multiple transfer orders. In this case, customer A in the diagram is a warehouse. Alternatively, you can consolidate loads for multiple purchase orders, where the loads are delivered from different vendors to the same warehouse. You can have more than one consolidation hub and can consolidate in multiple hubs for more loads that come from different warehouses. After you build your basic loads and use the hub consolidation option, you build the new loads by using the consolidated transportation request lines. You then rate and route your loads.

Include container weight and volume on load The functionality for including the container weight and volume on a load gives a clear representation of the total weight and volume of containers and items that are going on a load. A load contains a single shipment or multiple shipments, and these shipments contain distinct items that belong to a single sales order or multiple sales orders. The items are stored inside a container, and containers are loaded on a load. Items that are outside a container can also be part of a load. Based on

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

these conditions, the system calculates values for the weight and volume on the load by considering the weight and volume of both containers and items. If the calculated values aren't precise, you can adjust them by entering the actual values for the weight and volume on the load. The values for the weight and volume are used in transportation management processes. For example, the values are used in the rate route workbench, where they help define the rate and route for loads, and they are also used for transportation tenders and driver check-in. The functionality for including the container weight and volume on a load applies in transportation management processes, such as the rate route workbench, transportation tenders, and driver check-in. The number of containers that should be considered for a load is calculated based on the weight and volume of the container, and on the percentage of the container is used. To set the weight and volume for a container, click Warehouse management > Setup > Containers > Container types. To set the container utilization percentage, click Warehouse management > Setup > Containers > Container groups, and then enter a value in the Container utilization percentage field.

Reconcile freight in transportation management Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/9-reconcile-freight Freight reconciliation can be done manually, or it can be set up to happen automatically. To use automatic freight reconciliation, you must set up an audit master where you can define criteria that determine which freight bills are matched automatically. Freight rates are calculated by the rate engine that is associated with the relevant shipping carrier. When a load is confirmed, a freight bill is generated, and the freight rates are transferred to it. The freight rates are apportioned as miscellaneous charges to the relevant source document (purchase order, sales order, and/or transfer order), depending on the setup that is used for the regular billing process. The freight reconciliation process (which is also known as the matching process) can start as soon as the freight invoice arrives from the shipping carrier. The invoice can be received electronically or on paper. If the invoice is received on paper, you can generate an electronic invoice by using the freight bill as a template.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Manual reconciliation If you're reconciling freight manually, you must match each invoice line with the freight bill line or lines for the load that is being invoiced. You do this matching on the Freight bill and invoice matching page. If the amount on the invoice line doesn't match the freight bill amount, you must select a reconciliation reason for the difference. If there are multiple reasons for reconciliation, you can split the unmatched amount across them. The reconciliation reason determines how the difference amounts are posted in the general ledger. When the reconciliation of the whole invoice amount is accounted for, it's submitted for approval, and then the journal is posted.

Automatic reconciliation To use automatic reconciliation, you must specify the schedule for reconciliation, and the invoices and shipping carriers to use. The matching of the invoice lines and freight bills is done according to the setup of the audit master and freight bill type. After you run the automatic reconciliation, you must handle any invoices that the system can't match. You must then process these invoices manually before you can post all the invoices for payment.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Exercise - Set up a shipping carrier and carrier service Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/10-exercise-set-up-shipping-carrier-service The company USMF in the United States has a new customer that is in Europe. Ted, the Transportation coordinator, at Contoso Entertainment has determined that a new company will be used for transporting the products to this customer. Ted needs to set up a new ocean carrier and carrier service.

Set up a new carrier: 1.

In company USMF, go to Transportation management > Setup > Carriers > Shipping carriers.

In the Action Pane, click New to create a new shipping carrier.

In the Shipping carrier field, type 'Ocean Carrier 2'.

In the Name field, type 'Secondary ocean carrier'.

In the Mode field, select Ocean.

Expand the Overview FastTab.

Set the Activate shipping carrier slider to Yes.

Select Vendor account 1002 from the Vendor drop-down menu.

In the SCAC field, type '2005'.

10. Select the Activate carrier rating check box. 11. On the Addresses FastTab, click New. 12. In the New address page, type 'Ocean carrier location' in the Name field. 13. Select Business from the Purpose drop-down list. 14. Select USA in the Country/region drop-down list. 15. In the ZIP/postal code field, type '11251'. 16. In the Street field, type 1577 Madison Blvd. 17. Set the Primary slider to Yes. 18. Click OK. 19. Close the Shipping carriers page.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Add a carrier service to the carrier: 1.

Open Transportation management > Setup > Carriers > Shipping carriers.

Select Ocean Carrier 2 in the left-hand pane.

Expand the Service FastTab.

Click New.

In the Carrier service field, type Ocean.

In the Name field, type Ocean.

In the Transportation method field, select Ocean.

Select Freight from the Billing group ID drop-down menu.

Close the page.

Exercise - Configure a rate master Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/11-exercise-configure-rate-master The company USRT is planning to ship some live plants to a new customer in Bothell, Washington, United states, where the zip code is 98021. They will be shipping from their warehouse in Carmel, India, United states where the zip code is 46032. Ted, the Transportation manager needs to configure a new Flower moving rate master and configure an assignment for the source and destination locations using the mileage engine.

Create a rate base. 1.

In company USRT, open Transportation management > Setup > Rating master.

In the Rate base assignments FastTab, right-click the Rate base drop-down and select View Details.

Click New.

In the Rate base, field enter 'FlowerMovingBase'.

In the Name field, enter 'FlowerMovingBase'.

In the Rate master field, select FlowerMovingMaster.

In the Break master field, select Mileage.

Click Save.

Click Close.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Create a rate master. 1.

Open Transportation management > Setup > Rating > Rate master.

Click New.

In the Rate master field, enter 'FlowerMovingMaster'.

In the Name field, enter 'FlowerMovingMaster'.

In the Rating metadata ID field, select Mileage.

Assign the rate base assignments. 1.

On the Rate base assignment FastTab, click New.

In the Name field, enter 'LTL'.

In the Rate base field, enter 'FlowerMovingBase'.

In the Service field, select Truck.

In the Origin PC field, enter '46032'.

In the DestStartPC field, enter '98021'.

In the DestEndPC field, enter '98021'.

In the DestCountry field, enter 'USA'.

In the Effect start date and time field, select Today.

10. Close the page.

Exercise - Create a route plan and route guide Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/12-exercise-create-route-plan-route-guide

Create a route plan As a member of the Finance and Operations project team for Adventure works cycles, you need to configure a new route plan from Georgia, US to Los Angeles, US. You will also need to create a new hub for the warehouses at Georgia and Los Angeles.

Create a new route plan named "GA to LA". 1.

Open USMF > Transportation management > Setup > Routing > Route plans.

Click New.

In the Route plan field, enter 'GA to LA'.

In the Name field, enter 'Georgia to Los Angeles'. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Close the page.

Create new hubs for Georgia and Los Angeles. 1.

Open Transportation management > Setup > Routing > Hub masters.

Click New.

In the Hub field, enter 'Georgia 3'.

In the Name field, enter 'Savannah GA'.

Expand the Codes FastTab.

In the Hub type field, select Hub.

In the Rate master field, select TruckRateMaster.

Expand the Effective dates FastTab.

In the Effective start date and time field, select Today.

10. In the Effective end date and time field, select 12/31/2018. 11. Expand the Address FastTab. 12. Click Add. 13. In the Name or description field, enter 'Georgia 3'. 14. In the Zip/postal code field, enter '31302'. 15. In the Street field, enter '123 ABC Street'. 16. Click OK. 17. Click New. 18. In the Hub field, enter 'Los Angeles 2'. 19. In the Name field, enter 'Los Angeles CA 2'. 20. Expand the Codes FastTab. 21. In the Hub type field, select Hub. 22. In the Rate master field, select TruckRateMaster. 23. Expand the Effective dates FastTab. 24. In the Effective start date and time field, select Today. 25. In the Effective end date and time field, select 12/31/2018. 26. Expand the Address FastTab. 27. Click Add. 28. In the Name or description field, enter 'Los Angeles 2'. 29. In the Zip/postal code field, enter '90001'. 30. In the Street field, enter '987 XYZ Avenue'. 31. Click OK.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

32. Close the page.

Add details to the route plan. 1.

Open Transportation management > Setup > Routing > Route plans.

Select the GA to LA route plan.

On the Details FastTab, click New.

In the Origin hub field, select Georgia 3.

In the Destination hub field, select Los Angeles 2.

In the Shipping carrier field, select TruckCarrier.

In the Carrier service field, select Truck.

Close the page.

Create a Route guide As a member of the Finance and Operations project team for Adventure Works cycles, you need to configure a new routing guide for Georgia to Los Angeles. The routing guide should ultimately lead to the result being the TruckCarrier shipping carrier, with the Truck carrier service.

Create a new route guide named "GA to LA". 1.

Open USMF > Transportation management > Setup > Routing > Route guides.

Click New.

In the Routing guide field, enter 'GA to LA'.

In the Name field, enter 'Georgia to Los Angeles'.

Add Information, Origin, Destination, and Result entities to the routing guide. 1.

Expand the Information FastTab.

In the Direction field, select Outbound.

Set the Active slider to the Yes position.

In the Effective start date and time field, select Today.

In the Effect end date and time field, enter 12/31/2018.

Expand the Origin FastTab.

In the Zip/postal code field, enter '31302'.

In the Hub field, select Los Angeles 2.

In the Country/region field, enter USA.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

10. Expand the Destination FastTab. 11. In the Zip/postal code from field, enter '31302'. 12. In the Zip/postal code to field, enter '90001'. 13. In the Hub field, select Georgia 3. 14. In the Country/region field, enter USA. 15. Expand the Results FastTab. 16. In the Shipping carrier field, select TruckCarrier. 17. In the Carrier service field, select Truck.

Exercise - Process an inbound shipment Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/13-exercise-process-inbound-shipment

Prerequisite steps

Add a vendor address for the Ade Supply company. 1.

In company USMF, open Accounts payable > Vendors > All vendors.

Select vendor 1003 from the list of vendors.

In the Action Pane, click Edit.

In the Addresses FastTab, click Add.

In the Name or description field, type 'Ade Supply main location'.

In the Zip/postal code field, enter '00210'.

In the Street field, enter '123 Main Street'.

Set the Primary slider to Yes.

Click OK.

10. In the Invoice and delivery FastTab, in the Mode of delivery field, select Parce-STD. 11. Close the pages.

Modify the CFR terms of delivery. 1.

Open Accounts payable > Setup > Terms of delivery.

Select CFR from the left-hand panel.

Click Edit in the action pane.

In the Transportation FastTab, set the Add transportation charges to retail sales orders slider to Yes.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Close the page.

Create a hub, route plan, and route guide You have been asked to set up a hub for the Ade Supply company and create a route plan and guide between the Ade Supply company and USMF's warehouse 61.

Create a hub for the Ade Supply company. 1.

Open Transportation management > Setup > Routing > Hub masters.

Click New in the Action Pane.

In the Hub field, enter 'Ade Supply'.

In the Name field, enter 'Ade Supply NH'.

In the Codes FastTab, in the Hub type field, select Hub.

In the Rate master field, select ParcelRateMaster.

In the Address FastTab, click Add.

In the New address page, in the Name or description field, enter 'Ade Supply NH'.

In the ZIP/postal code field, enter 00210.

10. In the Street field, enter '123 Main Street'. 11. Click OK. 12. Close the page.

Create a route plan from New Hampshire to Washington. 1.

Open Transportation management > Setup > Routing > Route plans.

Click New in the Action Pane.

In the Route plan field, enter 'NH to WA'.

In the Name field, enter 'New Hampshire to Washington'.

In the Details FastTab, click New.

In the Origin hub field, select Ade Supply.

In the Destination hub field, select Own WHS.

In the Shipping carrier field, select ParcelCarrier.

In the Carrier service field, select STD.

10. In the Vendor field, select 1003. 11. Close the page.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Create a route guide from New Hampshire to Washington. 1.

Open Transportation management > Setup > Routing > Route guides.

Click New in the action pane.

In the Routing guide field, enter 'NH to WA'.

In the Name field, enter 'New Hampshire to Washington'.

In the Origin FastTab, in the ZIP/postal code field, enter '00210'.

In the Destination FastTab, in the ZIP/postal code field, enter '98052'.

In the Result FastTab, in the Route plan field, select NH to WA.

Close the page.

Initiate an inbound shipment You have been asked to create a new purchase order for 10 mini-speakers from the Ade Supply company. After creating the purchase order, you will need to create an inbound shipment and then rate shop for the inbound load to find the cheapest transportation rate.

Create a new purchase order. 1.

Open Accounts payable > Purchase orders > All purchase orders.

Click New in the Action Pane.

On the Create purchase order page, in the Vendor account field, select 1003.

In the General FastTab, in the Site field, select 6.

In the Warehouse field, select 61.

Click OK.

In the Purchase order lines FastTab, in the Item number field, enter L0101.

In the Quantity field, enter 10.

In the Unit price field, enter 50.

10. In the Purchase tab on the action pane, click Confirm.

Create an inbound shipment. 1.

In the Warehouse tab on the Action Pane, click Load planning workbench.

Select the check mark column for the purchase order line that you just created.

In the Supply and demand tab on the Action Pane, click To new load.

In the Load template assignment page, in the Load template ID field, select Stnd Load template.

Click OK. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Rate shop for the inbound load. 1.

In the Loads tab of the Load planning workbench, select Rate route workbench from the Rating and routing drop-down menu.

In the Action Pane of the Rate route workbench, click Rate shop.

In the Route results FastTab, clear the Hide exceptions check box.

Select the Route result line for the route guide.

Click Assign.

Process an inbound shipment Now that the inbound shipment has been created and rated, you need to schedule an appointment for the mini-speaker shipment. You've also been asked to check the driver Tim Smith in and out of the appointment.

Schedule an appointment. 1.

Open Transportation management > Planning > Load planning workbench.

In the Loads tab, select the load ID for the purchase order created earlier.

Select Appointment scheduling from the Transportation drop-down menu.

In the Appointment scheduling page, click New in the Action Pane.

In the Appointment details FastTab, in the Appointment rule field, select Inbound docks 61.

In the Action Pane, click the Update status drop-down arrow and then select Firm.

Check the driver in. 1.

In the Action Pane, click the Update status drop-down arrow and select Driver check-in.

In the Driver check-in details page, in the Driver name field, enter Tim Smith.

In the Driver license field, enter 123.

Click OK.

Close the Appointment scheduling page.

Check the driver out. 1.

In the Loads tab, select Appointment scheduling in the Transportation drop-down menu.

In the Appointment scheduling form, in the Action Pane, click the Update status drop-down arrow and select Driver check-out.

In the Driver's information page, click OK to accept the default information.

Close the page. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Confirm an inbound shipment You now need to confirm the inbound load. 1.

Open Transportation management > Planning > Load planning workbench.

In the Loads tab, clear the Hide shipped and received check box.

Click the load ID.

In the Load details page, click the Ship and receive tab in the Action Pane, and then select Inbound load in the Confirm area.

Close the page.

Exercise - Process an outbound shipment Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/14-exercise-process-outbound-shipment You have been asked to confirm a sales order for Desert Wholesales, reserve stock for the order, and create an outbound transportation load.

Receive and confirm the sales order 1.

In company USMF, open Sales and marketing > Sales orders > All sales orders.

In the list of customers, select the line for account US-007.

In the Action Pane, click the Sell tab.

In the New area, click Sales order.

In the Sales order page, expand the Sales order lines FastTab, if not expanded already.

In the existing sales order line, in the Item number field, enter A0001.

In the Quantity field, enter 5.

In the Site field, enter 6.

In the Warehouse field, enter 62.

10. In the Unit price field, enter 15. 11. In the Action Pane, click Save. 12. In the Action Pane, click the Sell tab. 13. In the Generate area, click Confirm sales order. 14. Confirm the information on the Confirm sales order page and click OK. 15. Click OK to post without printing.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Reserve stock for the order 1.

In the Sales order details page, select the order line in the Sales order lines FastTab.

Click the Inventory drop-down arrow and select Reservation.

In the Reservation page, in the Reservation field, enter 5.

In the Action Pane, click Reserve lot.

Close the page.

Create an outbound transportation load. 1.

In the Sales order details page, click the Warehouse tab in the Action Pane.

In the Loads area, click Load planning workbench.

In the Sales lines tab, select the line for your current sales order.

In the Action Pane, click Supply and demand.

In the Add area, click To new load.

In the Load template assignment page, select Stnd Load Template from the Load template ID drop-down menu.

Click OK.

Click OK to confirm exceeding capacity.

Creating a consolidated shipment Desert Wholesales wants to add another line to their sales order. They request that both sales order lines arrive in one consolidated load. You have been tasked with creating the consolidated load and confirming it.

Set up parameters for consolidated shipments. 1.

Open Transportation management > Setup > Transportation management parameters.

Click the General tab.

In the In transit planning FastTab, set the In transit planning slider to Yes.

Close the page.

Add a new line to a sales order 1.

Open Accounts receivable > Sales orders > All sales orders.

Select the current sales order for Desert Wholesales.

In the Sales order details page, in the Sales order lines FastTab, click Add line.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

In the Item number field, enter A0002.

In the Quantity field, enter 5.

In the Action Pane, click the Sell tab.

In the Generate area, click Confirm sales order.

Confirm the information on the Confirm sales order page and click OK.

Click OK to post without printing.

Reserve stock for the order. 1.

In the Sales order details page, select the order line in the Sales order lines FastTab.

Click the Inventory drop-down arrow and select Reservation.

In the Reservation page, in the Reservation field, enter 5.

In the Action Pane, click Reserve lot.

Close the page.

Create and confirm a new outbound load. 1.

In the Sales order details page, click the Warehouse tab in the Action Pane.

In the Loads area, click Load planning workbench.

In the Sales lines tab, select the line for your current sales order.

In the Action Pane, click Supply and demand.

In the Add area, click To new load.

In the Load template assignment page, select Stnd Load Template from the Load template ID drop-down menu.

Click OK.

Click OK to confirm exceeding capacity.

Add hub consolidation and rate both loads 1.

In the Load planning workbench, select the first load you created in the Loads tab.

Select Hub consolidation in the Transportation drop-down menu.

In the Override location page, click the Hub drop-down arrow and select Los Angeles.

Click OK.

Select the load line in the Loads tab.

Select Rate route workbench from the Rating and routing drop-down menu.

In the Rate route workbench, click Route with rate in the Action Pane.

In the Route Results FastTab, select route guide Wh 61 to Cust 003 004 019.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Click Assign.

10. Close the Routes page and the Rate route workbench. 11. Repeat steps 1-10 for the second load.

Create the consolidated load 1.

In the Transportation request lines tab, select both lines.

In the Action Pane, click the Supply and demand tab.

In the Add area, click To new load.

In the Load template assignment page, select Stnd Load Template from the Load template ID drop-down menu.

Click OK.

Click OK to confirm exceeding capacity.

Note: The consolidated load may take several minutes to appear in the Loads tab.

Rate the consolidated load 1.

In the Loads tab, select the consolidated load line.

Select Rate route workbench from the Rating and routing drop-down menu.

In the Rate route workbench, click Route with rate in the Action Pane.

In the Route Results FastTab, select route guide Wh 61 to Cust 003 004 019.

Click Assign.

Close the Routes page and the Rate route workbench.

Confirm the consolidated load shipment 1.

On the Load planning workbench, in the Loads tab, select the consolidated load line.

Select Outbound load in the Ship and receive drop-down menu.

Exercise - Set up automatic freight reconciliation Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/15-exercise-set-up-automatic-freight-reconciliation You have been tasked with setting up the system for Desert Wholesales for freight reconciliation.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Create a freight reconciliation reason code for 'Overtime'. 1.

Open Transportation management > Setup > Freight reconciliation > Reconciliation reasons.

Click New.

Type 'OT' in the Reconciliation reason code field.

Type 'Overtime' in the Description field.

Type 211650 in the Debit account field.

Select the Pay the freight vendor check box.

Close the page.

Verify the Freight bill type is configured 1.

Open Transportation management > Setup > Freight reconciliation > Freight bill type.

Select the TL Freight bill type.

Verify the Engine assembly field is populated.

Verify that two records exist; one for Billing group ID and one for External code.

Close the page.

Create a freight bill type assignment for the Truck Carrier service 1.

Open Transportation management > Setup > Freight reconciliation > Freight bill type assignments.

Click New.

Select None in the Direction field.

Select Ground in the Mode field.

Select TruckCarrier in the Shipping carrier field.

Select TL in the Freight bill type field.

Close the page.

Create a billing group named 'Duties' 1.

Open Transportation management > Setup > Freight reconciliation > Billing Group.

Click New.

Type 'Duties' in the Billing group field.

Type 'Duties' in the Name field.

Close the page.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Create an audit master for overtime 1.

Open Transportation management > Setup > Freight reconciliation > Audit master.

Click New.

Enter Overtime in the Audit master ID field.

Select TruckCarrier in the Shipping carrier field.

Select TL in the Freight bill type field.

In the Results FastTab, select Overtime in the Overpayment reason code field.

Select Damage claim in the Underpayment reason code field.

Close the page.

Exercise - Work with appointment scheduling Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/16-exercise-work-with-appointment-scheduling

Create a new appointment rule 1.

In company USMF, open Transportation management > Setup > Appointment scheduling > Appointment rules.

Click New.

In the Appointment rule field, enter Warehouse 24.

In the Site field, select 6.

In the Warehouse field, select 24.

In the Duration field, enter 30.

In the Max. number of appointments field, enter 5.

In the Item movement direction field, select Both.

Close the page.

Create and pick a new sales order 1.

Open Accounts receivable > Orders > All sales orders.

Click New.

In the Customer account field, select US-003.

Click OK.

Select Sales order in the Action Pane.

In the Copy area, click From all. www.dynamicscompanions.com Dynamics Companions

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

In the Copy from all page, select 00783.

Click OK.

Close the page.

10. In the Load planning workbench, in the Loads section, select the Load ID. 11. Select Release to warehouse from the Release drop-down menu. Note: Use the Load ID generated by the above steps as the load to select for the rest of the exercise.

Create a new load assignment You have been instructed to create a new load assignment for an existing sales order for Warehouse 24. 1.

Open Transportation management > Planning > Load planning workbench.

In the Loads section, select Load ID - generated earlier.

Select Appointment scheduling from the Transportation drop-down menu.

In the Appointment scheduling page, click New in the Action Pane.

In the Appointment details FastTab, in the Appointment rule field, select Warehouse 24.

In the Action Pane, select Firm from the Update status drop-down menu.

Check a driver in You have been asked to create an instant appointment for driver Tom Anderson, and then check him in for the appointment.

Create an instant appointment 1.

Open Transportation management > Planning > Dock appointment scheduling > Driver check-in and check-out.

In the Action Pane, click the Schedule an instant appointment drop-down arrow.

In the Appointment rule field, select Warehouse 24.

Click OK.

Check in a driver for the instant appointment 1.

In the Driver check-in and check-out list page, select the appointment ID that has just been created.

In the Action Pane, click Driver check-in.

In the Driver check-in details page, in the Shipping carrier field, select TruckCarrier.

In the Driver name field, enter Tom Anderson in the Driver license field.

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Check your knowledge Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/17-configure-work-with-transport-mgmt-quiz

Configure and work with transportation management in Dynamics 365 for Finance and Operations knowledge check 1.

Which of the following accurately describes rating a load? a.

Rating determines the costs and methods or modes of delivery for a load.

b. Rating determines the sequence and path a load will take to reach its destination. c. 2.

Rating can optionally use appointment scheduling and freight reconciliation features.

What is an accessorial charge? a.

An accessorial charge is a process by which the Transportation manager can review all carrier options that are available for use.

b. An accessorial charge determines the overall rate for the customer or shipper as charged. c. 3.

An accessorial charge is any additional charge that is added when rating freight.

Which of the following statements accurately explains a transportation method? a.

A transportation method represents the form of transport that the carrier uses for freight deliveries, such as LTL, TL, or Parcel.

b. A transportation method defines the services offered by the carrier, such as next-day air, second-day air, or ground. c.

A transportation method represents the form of transport that the carrier uses for freight deliveries, such as air, ground, ocean, or rail.

Appointment scheduling acts as a dock-door management tool by allowing the tracking of which of the following? a.

Driver check-in and check-out

b. Warehouse receiving c.

Item picking and staging

Summary Link: https://docs.microsoft.com/en-us/learn/modules/configure-work-with-transportationmanagement-in-dynamics-365-finance-ops/18-configure-work-with-transport-mgmt-summary

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

The Transportation management module in Finance and Operations helps you find the most efficient way to deliver goods to your customers by calculating the least expensive and fastest way. It lets you use your company's transportation, and identify vendor and routing solutions for inbound and outbound orders. In this module you learned how to work with: •

Transportation planning

•

Routing

•

Rating

•

Inbound operations

•

Loads processes

•

Outbound operations

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Index Bid attachments, 204, 206 Bid line attachments, 204, 206 Bidding, 206 Bids in progress, 205, 206 Bill back workbench, 233 Bill of ladings, 9, 568, 577 Bill of materials (BOM), 4, 11, 49, 50, 66, 69, 100, 101, 107, 117, 119, 120, 126, 127, 128, 129, 130, 131, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144, 145, 146, 147, 148, 149, 258, 262, 263, 281, 389, 399, 400, 417, 423, 431, 508 Bin, 46 Blank issue, 31 Blank receipt, 31 Blind cycle counting, 499 Blocked, 128 Blocking, 325, 326, 327, 440, 464 Broker claims, 236, 237 Broker contract, 235 Bulk location, 46, 72, 78 Business justifications, 178 Buying legal entity, 170, 182 C Items, 83 Calculated delays, 390, 403, 406, 407, 410 Cancel quotation, 260, 261 Capable-to-Promise (CTP), 281, 402, 411 Capacity planning, 551 Carrier groups, 564 Carrier services, 564 Catalog policy rule, 182 Catalogs, 153, 154, 159 Category access policy rule, 182, 188 Category hierarchies, 122, 165 Category hierarchy types, 165 Category policy rule, 166, 183 Category policy rules, 166 Certificates, 324 Change ownership, 34 Charges, 217, 235, 262, 289, 337, 349, 350, 355, 371, 578 Check credit limit, 277, 305, 306 Closing and adjustment, 64, 68, 70 Cluster picking, 437, 468, 469, 485, 486, 512, 524, 525 Collaboration activation, 194, 200, 209 Color, 29, 89, 100, 101, 131, 207, 266, 299, 303, 491 Commission calculation, 295, 296, 304 Commission percentage, 295 Commitment types, 223, 227 Product quantity commitment, 223, 224, 227, 228, 245, 252, 385 Product value commitment, 223, 224, 227, 228, 252, 385 Quantity commitment, 223 Value commitment, 223, 224, 227, 228, 252, 385

A Items, 83 ABC classification, 4, 12, 81, 82, 83, 84, 85, 87, 88, 94, 95 ABC inventory classification, 82, 83 ABC items, 83 ABC Models, 95 Carrying cost, 85, 87 Margin, 84, 87, 232, 240, 243 Revenue, 84, 87, 94, 95 Value, 84, 87, 94, 95, 223, 224, 227, 228, 252, 333, 351, 352, 370, 385 Accounts receivable consumption journal, 234 Accrue liability on product receipt, 62, 63 Action messages, 8, 417, 418, 419, 425 Activate price/discount, 216, 217 Activate trade agreements, 216 Activate trading relationships, 345 Activation date, 129 Active (PO is auto-confirmed), 194, 200 Active prices, 129 Adjustment of on-hand inventory, 70 Advance margin, 417, 419 Aisle, 45, 46, 71, 445, 459 Alternates, 204 Amendments, 204, 206 App registrations, 472, 478 Arrival overview, 20, 21, 22, 23, 49, 51, 212, 291, 292, 382 ATP backward demand time fence, 283, 284 ATP backward supply time fence, 283, 284 ATP calculations, 283 ATP delayed demand offset time, 283, 284 ATP delayed supply offset time, 283, 284 ATP incl. planned orders, 283 ATP time fence, 283 Attribute types, 123 Attributes, 124, 126 Auto-create intercompany orders, 360, 385 Automate wave creation, 508, 541, 543 Automatic summary, 277 Available to promise (ATP), 270, 280, 281, 283, 284, 306 Awarded bids, 205 Azure Active directory client ID, 475 Azure Active directory client secret, 475 Azure Active directory resource, 475 Azure Active directory tenant, 475 Azure Active Directory., 472 Azure machine learning, 414 B Items, 83 Backward from ship date, 66 Backward scheduling, 408 Bar codes, 48 Batch number, 33, 34, 36, 38, 89, 95, 358, 359, 454, 455, 488 Best before date, 66

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Configuration, 11, 29, 88, 95, 100, 101, 119, 120, 130, 207, 299, 491 Configuration groups, 119 Configuration rules, 119, 120 Confirm quotation, 260, 261 Consignment, 55, 56 Consignment replenishment orders, 55 Consolidate requirement, 66 Constraint-based configuration, 100, 115 Containerization process, 515 Containers, 513, 514, 526, 581 Co-product, 320, 338, 516 Corrections report, 324 Cost management, 72, 91, 125 Cost recognition, 61 Costing method, 61 Costing versions, 72, 125, 126, 127, 128, 129 Counting, 48, 49, 51, 53, 54, 55, 77, 79, 489, 530, 534 Counting group, 48 Counting reason code policies, 53 Counting reason code policy, 54 Coverage groups, 396, 403, 408, 416, 417, 418, 419 Coverage plan by dimension, 32, 57, 397, 418 Create cycle counting work, 497, 499 Credit, 236, 286, 287, 290, 294, 362, 382 Credit correction, 294 Credit only process, 287 Cumulate rebates, 233 Cumulate sales by, 232, 239 Customer classification groups, 275 Customer invoice, 66, 271 Customers, 66, 217, 222, 231, 232, 233, 235, 246, 247, 249, 254, 262, 265, 266, 269, 271, 275, 285, 286, 288, 290, 295, 296, 298, 303, 304, 319, 334, 345, 346, 348, 349, 350, 354, 362, 368, 369, 375, 378, 379, 380, 381, 383, 523, 597 cXML, 160, 162, 163 Cycle counting, 8, 468, 469, 485, 496, 497, 498, 500, 501, 530, 531, 532, 533, 534 Cycle counting workers, 498 Days campaign expires, 259 Declined bids, 205 Deduction requirements, 66, 273 Default issue location, 48 Default item allocation key, 59 Default order settings, 4, 109, 110, 112 Default receipt location, 48 Delivery alternatives, 282 Delivery control defaults, 282 Delivery terms, 180, 201, 355, 371 Demand for upcoming production, 389 Demand forecasting, 7, 411, 412, 413, 414, 415 Demand from existing sales orders, 388 Demand from existing sales quotations, 389 Demand to meet minimum stock levels, 389 Demand to meet safety stock levels, 389 Device layout, 469 Device menus, 469, 470 Device users, 469, 472 Differential reasons, 238

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Differentials, 237 Dimension number, 34 Dimension-based configuration, 100, 115, 116 Direct deliveries, 364, 386 Direct delivery return orders, 361 Discount percentage 1, 218 Discount percentage 2, 219 Display dimension, 51, 207 Display principle, 146 Disposition codes, 287, 289, 290, 355, 361, 362, 453, 463 Credit only, 286, 287, 290 Replace and credit, 290 Replace and scrap, 290, 362 Return to customer, 290, 293, 362 Scrap, 290, 362 Dock management profiles, 441, 460, 465 Document conclusions, 258 Document introductions, 258 Document titles, 258 Effective date, 96, 223, 225, 570, 586 End output inventory order, 25, 26 Estimates in the forecast, 389 Expiration date, 66, 223, 226, 245 External catalog, 153, 160, 161, 163 External codes, 353, 370 External vendor catalogs, 160 FIFO, 63, 66, 67, 70, 72, 73, 126, 130 FIFO date-controlled, 66 Financial inventory, 31, 32, 57 Financial negative inventory, 65 Finite capacity, 408, 409 First Expired, First Out (FEFO), 66, 399, 451, 462, 463 Fixed receipt price, 59, 63, 64, 129 For purchase price, 32 For sales prices, 32 Forecast dimensions, 413 Forecast group, 59 Forecast plan, 389, 392, 395, 410, 431 Forecast planning, 392, 395 Forecasting algorithm parameters, 415 Formula versions, 135 Formulas, 135, 144 Freight reconciliation, 550, 568, 581, 596, 597 Fulfil minimum, 398 Funds, 230, 231 General coverage group, 396, 403, 417 Generic currency, 219 Guided cycle counting, 499 Harmonized tariff, 561 Hub masters, 570, 586, 589 Hub types, 570 Hubs, 570 Human resource (HR), 173 Immediate replenishment, 503, 504 In external review, 192, 193, 194, 200, 201, 210 In-Active (PO is not auto-confirmed), 200 Inbound dock, 46, 78, 591 Inbound operations, 8, 19, 468, 469, 491, 548, 549, 600 Inbound transportation, 552

DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Include demand forecast, 409 Include physical value, 63 Include supply forecast, 409 Input areas, 47 Inspection location, 47 Intercompany agreements, 7, 363, 386 Intercompany goods in transit, 344 Intercompany master planning, 389, 392, 421, 422, 423, 430, 432 Intercompany percent, 350, 351 Intercompany planning groups, 412, 420, 429 Intercompany reservations, 358 Intercompany return order chain, 361 Intercompany sales agreements, 364 Intercompany trade, 340, 360, 420 Inventory activation, 40 Inventory adjustment, 49, 50, 52, 75, 487, 530 Inventory blocking, 61, 325, 327 Inventory journals, 17, 49, 61 Inventory locations, 46, 47, 446 Inventory model, 34, 64, 67, 73 Inventory model groups, 34 Inventory on-hand, 4, 82, 93, 97 Inventory status, 29, 89, 327, 434, 438, 440, 454, 457, 463, 464, 524 Item allocation key, 59, 412, 414, 415 Item coverage, 11, 387, 396, 397, 398, 400, 403, 416, 417, 418 Item groups, 11, 57, 60, 91, 107, 130, 147, 440, 441, 455, 456, 463 Item model groups, 11, 58, 59, 60, 73, 129, 327 Item number, 34, 74, 75, 76, 77, 87, 91, 186, 245, 247, 265, 266, 269, 285, 298, 299, 302, 303, 304, 333, 335, 336, 375, 379, 380, 383, 417, 424, 517, 521, 524, 590, 592, 594 Item sales reservation, 66 Item sales tax group, 59, 130, 131 Item sampling, 315, 317, 326, 333, 334 Kanban, 40, 47, 110, 391, 396, 406, 423, 449, 452, 483, 507, 508, 509, 542, 545 Late selection, 277 Lean manufacturing, 40, 47 Less than truck load (LTL), 557, 560, 561, 563, 564, 565, 569, 585, 599 Levels, 312 License plate, 29, 76, 89, 439, 440, 454, 457, 458, 480, 482, 489, 491, 495, 517 LIFO, 63, 66, 67, 126 LIFO date, 63, 67 Line discounts, 217, 218 Load building strategy, 9, 573, 574 Load building workbench, 574, 578, 579 Load demand replenishment, 502, 504, 541, 542 Load templates, 566 Location, 21, 29, 46, 47, 48, 71, 72, 75, 77, 89, 95, 434, 443, 444, 445, 447, 448, 449, 451, 452, 453, 454, 455, 457, 459, 460, 461, 462, 464, 465, 480, 488, 491, 498, 502, 503, 505, 513, 516, 520, 522, 523, 535, 536, 537, 539, 540, 545 Location directive actions, 453, 464, 523, 539 Location directives, 434, 451, 452, 453, 464, 465, 502, 503, 505, 522, 535, 539, 540

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Location formats, 444, 459 Location profiles, 443, 445, 461, 498, 513 Location types, 445, 459 Lock items during count, 51 Lock route, 146 Lose quotation, 260, 261 Lost bids, 205 Lot ID, 34, 73, 74 Lump sum, 232, 234 Machine, 336, 337, 412, 413, 414, 415 Maintain charges, 262 Manage costs, 63 Mass create quotation, 261 Master bill of ladings, 577 Master plan, 7, 59, 112, 387, 388, 389, 390, 391, 392, 394, 396, 397, 398, 399, 400, 401, 402, 404, 406, 407, 408, 410, 412, 413, 415, 416, 417, 420, 421, 423, 424, 425, 426, 428, 429, 430, 431, 458 Master planning, 7, 59, 112, 387, 388, 389, 390, 391, 392, 394, 396, 397, 398, 399, 400, 401, 402, 404, 406, 407, 408, 410, 412, 413, 415, 416, 417, 420, 421, 423, 424, 425, 426, 428, 429, 430, 431, 458 Max is enforced, 224, 226, 228 Max. order quantity, 111, 133 Maximum release amount, 224, 228 Merchandizing events, 231 Min. order quantity, 111, 132 Min/Max coverage code, 397 Min/Max replenishment, 502, 503, 504, 505 Minimum release amount, 224, 228 Mode of delivery, 180, 201, 355, 564, 588 Modes of delivery, 344, 353, 370 Movement, 49, 50, 74, 79, 483, 486 Multiline discounts, 217, 219 National motor freight classification (NMFC), 560, 561, 562 Negative days, 403, 416 Negative inventory, 64 Net change master planning, 394 Net requirements, 389, 394, 399, 420, 431 New bid invitations, 205, 206 On physical update, 39, 73, 74, 78 On-hand consignment inventory, 56, 204 Only for inventory transactions, 39, 73, 74, 78 Operations scheduling, 408 Order activation, 40 Order hold codes, 285 Order promising, 278, 279, 280, 281 Organization hierarchy purposes, 183 Outbound dock, 46, 72 Outbound operations, 3, 8, 24, 468, 469, 505, 548, 549, 600 Outbound transportation, 553 Owner, 33, 34, 56, 57, 462 Ownership change, 56 Partially process claims, 237 Pegged supply, 139, 148 Pending prices, 128 Per qty, 39, 74 Phantom, 139, 148 Physical inventory, 4, 31, 32, 34, 57, 82, 88, 95, 97, 381

DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT Released, 54, 63, 65, 84, 87, 100, 102, 108, 113, 116, 124, 127, 129, 130, 131, 132, 142, 217, 219, 222, 251, 282, 360, 396, 397, 398, 403, 418, 441, 463 Report as finished, 292, 329, 330, 478, 483 Scheduled, 579 Started, 65, 328, 329 Products received from consignment inventory, 56, 204 PunchOut eProcurement, 153, 160 Purchase activation, 40 Purchase agreements, 156, 180, 214, 227, 228, 229, 245, 351, 363 Purchase order creation and demand consolidation rule, 183 Purchase order preparation, 194, 200, 201, 210 Purchase orders consuming consignment inventory, 56, 204 Purchase orders for review, 199, 207 Purchase price agreements, 218 Purchase requisition control rule, 183 Purchase requisition request for quotation (RFQ) rule, 183 Purchase tax, 59, 131 Purchase type, 180, 186 Purchasing policies, 154, 177, 182, 183, 188 Quality associations, 316, 317, 334 Quality assurance, 32, 311 Quality control clerk, 438 Quality control manager, 438 Quality management, 12, 311, 312, 318, 324, 332, 336 Quality orders, 61, 312, 316, 318, 325, 335 Quarantine, 44, 61, 65, 291, 320, 327, 328, 329, 331, 336, 483, 489 Quarantine management, 65, 291, 327 Quarantine warehouse, 328 Quotation type customer, 259 Rack number, 445 Rack prefix, 445 Rate masters, 556 Rating metadata, 557, 558, 559, 576, 585 Rating profile, 556, 557 Rebate agreements, 241, 242, 246 Rebate line break type, 232, 242, 243, 247 Rebate program accrual account, 242 Rebate program expense account, 242 Rebates, 214, 232, 243, 244, 247, 248, 249 Recalculate claims, 233 Receipts, 22, 284 Receiving clerk, 437 Receiving requirements, 65 Record ID, 34 Reduce quantity, 27, 277 Regenerative master planning, 392 Registration requirements, 65 Release approved purchase requisitions, 177 Release sales order picking, 267, 275, 276 Released products, 54, 65, 84, 87, 100, 102, 108, 113, 124, 127, 129, 130, 131, 142, 217, 222, 251, 282, 360, 396, 397, 398, 403, 418, 463 Replace a product, 292 Replacement by disposition code, 292, 293 Replacement order, 287, 363 Replacing returned items, 363

Physical negative inventory, 34, 64 Physical update, 65, 272 Pick criteria, 66, 67 Picking areas, 47 Picking list registration, 28, 335 Picking lists, 28, 267, 276, 335, 380 Picking location, 46, 48, 78 Picking requirements, 66, 273, 275 Picking route status, 24, 25, 27, 274, 275, 380 Plan safety stock replenishment, 399 Planned cost, 126, 127 Planned order, 391, 404, 406, 409, 424, 425, 426, 428 Planned production order, 391, 406, 427, 428 Planned purchase order, 391, 406, 423, 424, 425, 426, 427 Planned transfer order, 426 Planning transportation management, 9, 553 Policies, 178, 183, 187, 188, 189, 224, 228, 387 Policy organizations, 183 Policy types, 183 Positive days, 409, 416 Post invoice automatically, 365, 366, 367, 368, 383, 385 Post packing slip in ledger, 58, 62, 293 Post physical inventory, 58, 61, 62, 293 Post to deferred revenue account on sales delivery, 61, 63 Postpone margin, 417, 419 Predefined variant, 100, 115, 116, 130 Preparer, 173 Price, 63, 64, 128, 129, 194, 217, 218, 219, 224, 226, 228, 232, 239, 240, 243, 246, 247, 248, 250, 251, 263, 346, 367, 369 Price and discount is fixed, 224, 226, 228 Price details, 232, 239, 240, 243, 246, 248 Price simulation, 263 Price type, 128 Pricing terms, 224, 228 Primary stocking, 31 Print invoice automatically, 365, 366, 367, 368, 383, 385 Print packing slip automatically, 365, 383, 385 Priorities, 490, 491 Probability %, 407 Process cycle count, 497 Procurement categories, 159, 167, 169 Product configuration, 120, 121 Product dimensions, 29, 30, 131, 145 Product master, 98, 101, 116, 119, 130, 132 Product receipt quantity match, 65, 66 Product templates, 108, 109 Product translation, 104 Product variant, 102, 108, 132 Product variants, 102, 108, 132 Production activation, 40 Production input, 20, 46, 49, 51, 78 Production input location, 46, 78 Production manager, 116 Production orders, 21, 61, 427, 449, 508 Production status Created, 181, 232, 242, 260, 306, 329, 363 Ended, 329, 330

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DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Replenishment category access policy rule, 155 Replenishment process, 505 Replenishment setup, 504 Replenishment templates, 504, 541, 546 Request change, 176 Request for quotations (RFQ), 5, 12, 153, 158, 178, 179, 180, 181, 185, 186, 187, 189, 193, 196, 204, 205, 206, 211 Requester, 173, 187, 188 Reservation, 8, 27, 31, 66, 107, 266, 380, 439, 454, 456, 462, 463, 524, 593, 594 Resource, 146 Resource consumption, 146 Resources, 408 Restricted usage, 320 Return material authorization (RMA), 287, 288, 291, 363, 381, 382, 482 Return order, 226, 287, 288, 291, 294, 381, 382, 482, 495 Return reason codes, 289 Returned bids, 205 RFQ statuses, 181 Route guides, 572, 578, 587, 590 Route operations, 142 Route plans, 569, 571, 578, 585, 587, 589 Route versions, 146 Routes, 142, 146, 550, 567, 569, 571, 572, 573, 578, 579, 585, 587, 589, 590, 591, 594, 595 Royalty claims, 240, 241 Royalty contracts, 239 Royalty transactions, 241 Run price simulation, 263 Safety stock, 398, 399, 400, 431 Sales agreements policies, 352 Sales lead time, 112, 280, 306 Sales order, 6, 58, 217, 232, 236, 239, 247, 248, 254, 257, 265, 266, 267, 268, 269, 270, 271, 272, 274, 277, 282, 285, 286, 291, 294, 303, 304, 334, 342, 345, 346, 347, 348, 350, 351, 357, 358, 364, 367, 369, 372, 373, 374, 375, 376, 377, 379, 380, 381, 383, 385, 388, 394, 413, 431, 508, 510, 511, 522, 523, 524, 592, 593, 594, 597 Sales order picking, 6, 272, 510, 511 Sales price agreements, 218 Sales quotation template currency, 260 Sales quotations, 254, 257, 258, 259, 260, 261, 263, 431 Sales rep. code, 295 Sales rep. relation, 295 Sales tax, 59, 131, 180, 267 Same batch selection, 66 Search criteria, 298, 299, 300 Send quotation, 260, 261 Serial number, 33, 34, 37, 38, 40, 79, 89, 95, 359, 454, 462 Serial number control, 34, 37, 38, 40 Serial numbers, 33, 37, 38, 40, 79 Service, 101, 132, 319, 320, 338, 558, 584, 585 Settle transactions, 233, 249, 250 Shelf, 46, 71, 445, 459, 460 Shipping carrier, 557, 562, 563, 564, 565, 566, 567, 583, 584, 587, 588, 589, 596, 597, 598 Shipping clerk, 438 Simulated prices, 264

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Site, 21, 29, 50, 71, 74, 75, 77, 89, 95, 128, 137, 146, 147, 186, 207, 245, 251, 288, 303, 336, 372, 375, 376, 378, 379, 454, 457, 458, 464, 521, 522, 523, 527, 535, 536, 537, 539, 540, 542, 590, 592, 597 Size, 29, 46, 89, 100, 101, 131, 207, 269, 299, 491 Skills, 11 Smart rounding, 220 Spot Count, 53 Spot cycle counting, 483, 500 Standard cost, 67, 69, 72, 73, 126, 127, 129, 294 Standard order quantity, 49, 111, 132 Standard transportation commodity code (STCC), 557, 560, 561, 562 Starting royalty amount, 241 Static plan, 390, 405 Stocked product, 61, 113 Stopped, 112 Storage dimension groups, 29, 30, 31, 32, 107, 130, 397, 418, 438, 455, 457, 463 Storage dimensions, 29, 421 Style, 29, 89, 100, 101, 207, 299, 491 Submitted by purchaser, 181 Supplementary customer groups, 222 Supplementary item groups, 221, 222 Supplementary items, 221, 222, 262 Supplementary sales items, 222, 251, 262 Synchronizing disposition codes, 362 Tag counting, 50, 51, 52 Template groups, 258 Terms of payment, 180 Test groups, 316, 333 Test instrument, 313 Test instruments, 313 Threshold count, 54 Thresholds, 500 Titles, 517, 518, 519, 525, 529, 530, 531, 538 Total discounts, 217, 219 Trace inventory dimensions, 34, 35 Tracing, 32, 401 Tracking dimension groups, 439, 455, 457 Tracking dimensions, 29, 33, 34, 37, 38 Tracking dimensions group, 34 Trade agreement journals, 217, 250, 251 Transfer, 40, 49, 50, 61, 75, 76, 79, 391, 406, 426, 482, 483, 501, 502, 535, 536, 537, 538, 545 Transit, 44, 501, 535, 575, 576 Transit time, 575, 576 Transit warehouse, 44, 501 Transportation management, 9, 13, 480, 548, 549, 550, 551, 554, 555, 557, 558, 559, 561, 562, 563, 564, 565, 566, 567, 568, 570, 571, 572, 573, 574, 575, 576, 577, 580, 583, 584, 585, 586, 587, 589, 590, 591, 592, 593, 596, 597, 598, 600 Transportation management engines, 9, 574, 575 Transportation status, 565 Transportation tender, 562, 563, 566, 567 Unit of aging period, 91 Unit of measure, 113, 242, 490, 491 Unit sequence groups, 439, 458 Unlock route, 146

DYNAMICS COMPANIONS CERTIFICATION EXAM STUDY GUIDE

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Update marking, 404, 428 Up-front replacement, 292 Use filter code, 441 Value mapping, 352, 385 Vendor (external), 195, 196, 208 Vendor admin (external), 195, 196, 208 Vendor bidding, 205 Vendor collaboration, 5, 13, 56, 152, 158, 181, 191, 196, 198, 204, 209, 210 Vendor collaboration invoicing, 5, 196, 198, 210 Vendor evaluation criterion groups, 166, 167 Vendor invoice, 65, 66, 245, 568 Vendor responses, 193 Vendors, 5, 12, 13, 23, 56, 65, 66, 139, 148, 152, 158, 159, 166, 167, 169, 170, 171, 172, 176, 181, 185, 186, 190, 191, 193, 194, 195, 196, 198, 201, 202, 204, 205, 208, 209, 210, 217, 235, 241, 242, 243, 244, 245, 320, 338, 345, 368, 370, 372, 375, 376, 378, 383, 521, 522, 562, 568, 583, 588, 589, 590 Version control, 137, 138 Warehouse, 8, 13, 21, 29, 44, 45, 46, 47, 50, 51, 54, 65, 71, 72, 75, 77, 89, 95, 108, 146, 186, 207, 245, 251, 275, 276, 291, 303, 327, 337, 361, 372, 375, 376, 378, 379, 434, 435, 436,

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437, 442, 443, 449, 454, 457, 458, 459, 460, 461, 462, 463, 464, 465, 466, 467, 468, 469, 474, 475, 478, 483, 489, 490, 492, 495, 498, 505, 506, 512, 513, 516, 517, 518, 519, 521, 522, 523, 524, 525, 526, 527, 528, 529, 530, 531, 532, 533, 534, 535, 536, 537, 538, 539, 540, 541, 542, 543, 544, 550, 562, 573, 581, 590, 592, 593, 594, 597, 598, 599 Warranties, 32 Wave containerization, 507 Wave demand replenishment, 502, 503, 504 Wave templates, 449, 502, 506, 527, 540, 542, 543 Weighted avg., 63, 67 Weighted avg. date, 63, 67 Work class, 469, 470, 484, 517, 518, 520, 523, 525, 529, 530, 532, 534, 537, 538, 539 Work classes, 469, 470, 517, 518, 520, 525, 529, 530, 532, 538 Work in Progress (WIP), 47 Work pools, 451, 498, 499 Work templates, 450, 501, 504, 505, 523, 529, 534, 537, 539, 544, 545, 546 Working Days, 112 Zone groups, 443 Zones, 443

DYNAMICS COMPANIONS

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND

CERTIFICATION EXAM STUDY GUIDEGUIDE CERTIFICATION EXAM STUDY

OPERATIONS, SUPPLY CHAIN MANAGEMENT About the Author

EXAM MB-330: MICROSOFT DYNAMICS 365 FOR FINANCE AND OPERATIONS, SUPPLY CHAIN MANAGEMENT

Murray Fife is an Author of over 25 books on Microsoft Dynamics including the Bare Bones Configuration Guide series. These guides comprise of over 15 books which step you through the setup and configuration of Microsoft Dynamics including Finance, Operations, Human Resources, Production, Service Management, and Project Accounting.

This study guide contains all of the exam prep content, including walkthroughs, practice exercises and sample Questions following core courses that are recommended for the MB-330 certification. Course MB-330T01-A: Configure and use supply chain management in Dynamics 365 for Finance and Operations Module 1: Supply Management Module 2: Use Inventory Journals Module 3: Use Inventory Reports Module 4: Create Products and Product Masters Module 5: Create Bill of Materials Module 6: Configure and Perform the Procure-to-Purchase Process Module 7: Configure Vendor Collaborations Module 8: Configure and perform the Purchase-to-Pay Process Module 9: Configure and Use Agreements Module 10: Configure and Use the Order-to-Cash Process

If you are interested in contacting Murray or want to follow his blogs and posts then here is all of his contact information: Email: Twitter:

murray@murrayfife.com @murrayfife

Facebook: Google: LinkedIn:

facebook.com/murraycfife google.com/+murrayfife linkedin.com/in/murrayfife

Blog: Amazon:

atinkerersnotebook.com amazon.com/author/murrayfife

Course MB-330T02-A: Use quality management, Intercompany trading and master planning in Dynamics 365 for Finance and Operations Module 1: Configure and Use Quality Control and Management Processes Module 2: Configure and Use Intercompany Trade Relations Module 3: Configure and Use Master Planning Course MB-330T03-A: Configure and use warehouse, and transportation management in Dynamics 365 for Finance and Operations Module 1: Configure Warehouse Management Module 2: Configure Mobile Devices for Warehouse Management Module 3: Use Warehouse Management

Module 4: Configure Transportation Management

www.dynamicscompanions.com Dynamics Companions

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