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After the Global Inventory Accounting Add-in is fully set up, it's ready to process inventory-related documents that are entered in Microsoft Dynamics 365 Supply Chain Management.
Supported business documents
There are two types of business documents:
- Documents that have a journal – These documents include product receipt, purchase invoice, packing slip, and sales invoice documents.
- Documents that don't have a journal – These documents include counting, movement, and inventory adjustment documents.
Later in this article, purchase orders are used as an example to illustrate the process.
The following table lists the documents that the current release supports.
| Document type | Document |
|---|---|
| Purchase Order | Product Receipt |
| Purchase Order | Invoice |
| Sales Order | Packing slip |
| Sales Order | Invoice |
| Inventory Journals | Movement |
| Inventory Journals | Adjustment |
| Inventory Journals | Counting |
| Inventory Journals | Transfer |
| Transfer Order | Shipment |
| Transfer Order | Receive |
Important
Global Inventory Accounting asynchronously processes the documents that are entered in Supply Chain Management. No error messages are shown for problematic documents.
Example: Purchase order
Product receipt
Post product receipts in the usual way. On the All purchase orders page, select a purchase order, and then, on the Action Pane, on the Receive tab, select Product receipt to open the Product receipt journal page. An operation event and a Global Inventory Accounting event are generated for each line. Therefore, select the Lines tab, and then select Inventory > Events and measurements to open the Events and measurements page.
Global Inventory Accounting is an accounting system that is based on events and measurements. The measurement line grid on the Events and measurements page shows a list of measurements. Each measurement has a list of dimensions.
For each operation event, there are two types of measurement:
- Operations measurements – These measurements describe business documents in generic terms. One measurement is the product quantity using the unit of measure that is used in the document. There are also measurements that affect the inventory value, such as extended price, discount, discount percent, and line charge.
- Resource accounting measurements – These measurements are from the inventory register perspective. They describe the document's impact on the inventory in the inventory unit of measure. If there are multiple inventory registrations, there are multiple lines of resource accounting measurements.
The dimensions are organized in the following way:
- Duality – Duality describes the agents who participate in the economic events. For external business documents, the primal dimensions describe the legal entity where the document is entered, whereas the dual dimensions describe the vendor, customer, and so on. For internal business documents (for example, transfer orders), the dual dimensions describe the counterpart warehouse.
- Dimension type – Dimension types categorize the dimensions.
- Dimension – The name of the dimension.
- Dimension value – The value of the dimension.
Global Inventory Accounting event
Global Inventory Accounting takes the operational events and measurements as input. It then does the appropriate accounting for each related ledger, based on the attached currency and convention. You can select Global inventory accounting events and measurements to view the Global Inventory Accounting event. The Global Inventory Accounting event follows the same methodology as operation events, but it uses different measurements. There are three major measurement types: product cost quantity, product cost, and variance.
Subledger accounts are used to further classify the measurements. There might be multiple ledgers. These ledgers are linked to the legal entity where the document is entered. You can view the events and measurements for each ledger by changing the value of the Ledger field.
Cost element
Based on the cost element policy that is attached to the ledger, the system assigns a cost element to each accounted operation event measurement that affects the inventory cost. These measurements include extended price, discount, discount percent, and line charge.
Measurement line details
The Overview tab shows the details of the attached policies. The cost object dimensions show the cost object, based on the cost object policy. Specific identification dimensions show the batch number if the cost flow assumption is Specific – Batch.
Purchase invoice
Post the invoice in the usual way. Then, on the Action Pane, on the Invoice tab, in the Journals group, select Invoice to open the invoice journal. An operation event and a Global Inventory Accounting event are generated for each line. Therefore, select the Lines tab, and then select Inventory > Events and measurements to open the Events and measurements page. The Events and measurements page shows the same measure type. However, because the page shows a different measure role and measure modifier, the impact on the agent (legal entity) differs.
Select Global inventory accounting events and measurements to view the Global Inventory Accounting event. The inventory quantity and cost now flow out from the Goods received not invoiced inventory subledger account and into the Cost of goods purchased subledger account.