Better Budgeting for Your Business with Microsoft Dynamics 365 Finance & Operations

Microsoft Dynamics 365 Finance & Operations

Efficient cost management is considered as the key to business success. Budget control ensures that the project remains optimally profitable while it also enables you to monitor the funds that are available for planned and actual purchases, and expenditures. If you have a clear view about the budget, then you can carefully plan, measure, manage and forecast financial resources throughout the fiscal year while restricting expenditures that exceed the budget.

Microsoft Dynamics 365 Finance & Operations

Microsoft Dynamics 365 Finance & Operations (formerly known as Dynamics AX) is a smart business application that offers native budgeting and financial planning functionality while enabling you to manage financial resources using a chart of accounts, workflows, configurable calculation of available funds, budget cycles, and thresholds.

Dynamics 365 Finance & Operations enables an organization to create budget plan worksheet templates, review and approve the budget. Once the budget is approved, organizations can use budget plans to generate budget register entries to record the expenditure budget for an organization.

D365F&O also allows you to create or import budget register entries from a third-party program instead of using budget planning functionality.

With Dynamics 365 F&O, expenditures can be recorded by using main accounts and financial dimensions. Dynamics 365 Finance & Operations enables you to configure control for expenditure to meet the organization’s policies and requirements by grouping combinations of financial dimensions and main accounts.

Microsoft Dynamics 365 Finance & operations allows you to:

  • Determine the financial components used to establish and control budgets.
  • Update or revise budgets based on economic events.
  • Define workflows and policies that match organizational requirements.
  • Use a budgeting tool that is right for the organization.

Dynamics 365 F&O enables you to control budget using different factors which are listed below:-

Financial Dimensions:- In Microsoft Dynamics 365 F&O, financial dimensions represent legal entities. For budget control, you can define which financial dimensions should be used to report budget and actuals?

Time – What time frame (fiscal period, fiscal period to date, and so on) will be used to evaluate available budget funds?

Dynamics 365 Finance & operations
Microsoft Dynamics 365 Finance & operations

Source documents – Source documents includes purchase order, vendor invoice, expense report, and free text invoice. Dynamics 365 F&O enables you to define which source documents must be evaluated for budget control. Should the documents be evaluated per line or per document?

Funds available calculation – Should documents such as purchase requisitions (pre-encumbrances) and purchase orders (encumbrances) be considered in the calculation of available funds? Should documents that are in a draft state be considered in the calculation?

Override permission – Who has permission to exceed the available budget?

With fully integrated budget control in D365 F&O, you get the flexibility to evaluate the available budget for both planned purchases and actual purchases. Dynamics 365 Finance & Operations offers budget inquiries and reports with which users can evaluate the budget throughout the budget cycle while making any adjustments which are required in the form of budget revisions or transfers. Furthermore, the budget manager can export the budget and actuals into Microsoft Excel for analysis & forecasting.

Configuring Budget Control

Budget Cycle Time Span:- You can define the time to calculate budget funds available across all dimensions.

Budget Control Interval: Select the default interval used to calculate the budget funds available for all dimensions.

Over budget permissions:- With this permission, you can specify whether users who are members of a group have permission to exceed the budget. You can, further, prevent users from exceeding the budget threshold.

Budget funds available:- You can easily know the available funds by defining formula for calculating budget funds.

Budget models:- Budget models perform budget checking for the budget cycle.

Budget control rules:- Financial budget combination for budget control are defined.

Main account:- The main account for which budget control will be applied to is selected.

Budget group:- Optional budget groups can be defined to build a collection of financial dimension values for a secondary budget check.

Activate budget control:- You can activate budget using this tab.

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