Microsoft Dynamics NAV Financial Management by Packt Publishing

This is my 3rd NAV book from Packt Publishing. Packed with only 112 pages of contents, this book gives a very good overview of what's available in NAV Financial Management Module. The coverage is broad but not depth in details. It touches all important functionalities that Finance users need to know with "just enough" information to understand and get started.

I would recommend this book to Finance users who are currently working on NAV. During project implentation, NAV Consultant may have skipped some functionalities which are not required at that time. This book will tell you the leftover. This book can also be used as a reference as and when needed.

This book is also useful for NAV consultant who are not specialized in Financial Management. Technical Consultant and Functional Consultant who specialized in modules other than Financial Management can use this book to get an overview what's in NAV Financial Management. It's always useful for all NAV Consultants to know Financial Management because it is the core module of ERP.

This book is also useful for NAV Finance Consultant who just get started on NAV. Experienced NAV Finance Consultant won't get much from this book.

Reason Codes

Reason codes will tell why an entry exist in the system.
To setup Reason Code, click FINANCIAL MANAGEMENT --> GENERAL LEDGER --> SETUP --> TRAIL CODES --> REAON CODES.

Source Code

Source codes are used to identify the origin of an entry. By inserting Source Code in the Journal templates, source code will be copied to all journal lines created under the journal template. This can help to trace the journal entries are posted from which journal.

To setup the Source Code, click FINANCIAL MANAGEMENT --> GENERAL LEDGER --> SETUP --> TRAIL CODES --> SOURCE CODES to open the Source Codes window. You can see all the source code defined in the system in this window. Select any source code and the click on the Source button and then select the relevant register to see all entries for the source code.

Global Dimension and Shortcut Dimension

You can define the 2 most frequently used dimension at the General Ledger Setup window. To open the General Ledger Setup window, Click FINANCIAL MANAGEMENT --> GENERAL LEDGER --> SETUP --> GENERAL LEDGER SETUP. Click on the Dimension tab. You can define your global dimension here. Besides the 2 Global Dimensions, Navision also have 8 Shortcut Dimension. The first 2 shortcut dimensions are the same with the 2 Global Dimensions. Therefore, users still can define another 6 dimensions as the shortcut dimensions. Shortcut dimensios will appear at the subform while doing data entry to let users select the dimension easily.

Posting Date allowed

Navision do not have month-end closing. In order to prevent users from posting records with older date, you can set the posting date ranges for a particular period. This can be set at the Geneleger Ledger Setup window. To open General Ledger Setup window, click FINANCIAL MANAGMENT --> GENERAL LEDGER --> SETUP --> GENERAL LEDGER SETUP

At the General tab, enter the date for Allow Posting From and Allow Posting to fields. If you do not enter any date in these 2 fields, users can post entries with any posting date.

Insert LCY Rounding Lines

When you enter foreign currency in journal lines, Navision will automatically calculate and fill in the Amount (LCY) field with local currency. Hence, there may have the situation where the foreign currency is balanced but the local currency is not balanced due to the rounding difference. The journal lines still cannot be posted if the Amount (LCY) is not balanced, even for 1 cent different.
To make the Amount (LCY) balance, you can use Insert Conv. LCY Rndg. Lines to createa another line to balance out the difference. Click FUNCTIONS --> INSERT CONV. LCY RNDG. LINES.

Please take note that before you can use the Insert Conv. LCY Rndg. Lines function, you must define the G/L Account that Navision will post the rounding difference to. To define this account, click FINANCIAL MANAGEMENT --> GENERAL LEDGER --> PERIODIC ACTIVITIES --> CURRENCY --> CURRENCIES to open up the Currencies window. Enter the G/L Account number at the Conv. LCY Rndg. Debit Acc. and Conv. LCY Rndg. Credit Acc. fields.

Unit Price Including / Excluding VAT

1) When you select an Item No at Sales document, Navision will auto fills in the Unit Price field.

2) When you enter the quantity, Navision will calculates the Line Amount as well.

3) To determine whether to include VAT or not in the unit price, you can set the option at the Invoicing tab, Prices Including VAT field at the sales header document.

4) Prices Includeing VAT field can be defaulted at the Customer cards.

Manual VAT Calculation (Journal)

1) VAT calculated by Navision in Journal can be adjusted. You need to do this when the Navision calculated VAT value is different from what is stated in the vendor invoice.

2) Before you can do VAT adjustment, you must specify the Max. VAT Diff Allowed value in the General Ledger Setup window

3) A warning message will be prompted if the variance between the adjusted VAT value and the Navision calculated is more than the Max. VAT Diff Allowed specified. You won't be able to proceed.

4) The difference between the adjusted value and the Navision calculated values will be stored in the VAT Diference field.


* MyCom does not allow VAT Difference

Value-added Tax (VAT)

1) VAT is a transaction tax that is paid by end consumers

2) Setting up of VAT Posting Group is the same as the General Posting Group
a) VAT Business Posting Group - Customers & Vendors (Who)
b) VAT Product Posting Group - Items & Resources (What)

3) VAT Business Posting Groups
a) FINANCIAL MANAGEMENT -> SETUP -> VAT POSTING GROUP -> BUSINESS
b) Code field can accept 10 characters

4) VAT Product Posting Groups
a) FINANCIAL MANAGEMENT -> SETUP -> VAT POSTING GROUP -> PRODUCT
b) used to calculate tax based on types of item perchased or sell.

5) VAT Posting Setup
a) Matrix of VAT Business Posting Groups and VAT Product Posting Groups

Default Dimension

There are 3 types of dimensions:
1) Dimension - Single: Single Account
2) Dimensions - Multiple: Multiple Account
3) Account Type Default Dimensions: All Account

Dimension - single
Dimension - Single is used in account card such as customer card. to access the Customer Dimension, click CUSTOMER -> DIMENSIONS. Fields in Default Dimensions window are:
1) Dimension Code
2) Dimension Value Code
3) Value Posting
---> Blank - no restriction
---> Code Mandatory - Navision will check that entry contains dimension value during posting but the dimension can accept any values
---> Same Code - Navision will check to make sure that the entry will have the same dimension value in the Default dimension value during posting
---> No Code - Navision will check that entry does not have dimension code during posting


Dimension - Multiple
1) Besides assigning 1 default dimension to 1 customer card at a time, you can also assign the same default dimension to a group of customers at a time.

2) You can achieve this by assigning the dimension values in a groups of customer at the Customer list

3) At the customer list, highlight the group of customers that you want to assign default dimension value. Click on the CUSTOMER -> DIMENSIONS -> DIMENSIONS-MULTIPLE

4) The above steps can also be applied to other account types such as vendor, items and G/L Account



Account Type Default Dimensions
1) FINANCIAL MANAGEMENT -> SETUP -> DIMENSIONS -> DIMENSIONS to open Dimensions window

2) Select the dimension code that you want to create default dimension value and then click on the DIMENSION -> ACCOUNT TYPE DEFAULT DIMENSION

3) Select the appropriate table id in the Table ID field

4) key in the Dimension Value Code and Value Posting.

Dimension Combination

1) FINANCIAL MANAGEMENT -> SETUP -> DIMENSIONS -> DIMENSION COMBINATIONS

2) used to restrict the use of a particular dimension combinations

3) Can have 3 options
a) blank
- default setting
- dimension combination is allowed
b) limited
- dimension combinatino is only allowed under certain circumstances
- must click on the assist button to define what combination is not allowed.
c) blocked
- cannot have this dimenstion combination

Dimensions and Dimension Values

Dimension is a marker entered together with transaction records to group similar record with similar data together for analysis purposes. You can you do simple analysis by using one dimension or more complex analysis by tagging several dimension to a record.

Before you can use Dimension in Navision, you must first setup the Dimensions and Dimension Values accoding to you company business requirement. Dimension can be setup from
FINANCIAL MANAGEMENT ->SETUP -> DIMENSIONS -> DIMENSIONS

Important fields in the Dimension Setup table include:
1) Code - a reference field
2) Name - displayed Reports and Analysis View
3) Description - for information purpose only
4) Code Caption and Filter Caption - caption that appears in shortcut dimension field name 5) Blocked - prevent further posting using this dimension. Posted transaction will remain.
6) Map to IC Dimension Code - map to the dimension code in intercompany
7) Consolidation code - for consolidation

Each Dimension can have unlimited number of Dimension Values. Dimension Values can be created by:
1) Select the Dimension that you want to create Dimension Values.
2) Click on Dimension -> Dimension Values to open Dimension Value window

The important thing to take note here is the Dimension Value Type. Dimension Value Type is used to create hierarchical relationship and grouping betwen dimension values. There are 5 types of Dimension Values:
1) Standard
2) Heading
3) Total
4) Begin-Total
5) End-Total
Please note that only Standard and Begin-Total types can be posted.

VAT Posting Groups

1) VAT is paid by end customers

2) defines vat% based on who we sell to and who we buy from

3) the steps to setup VAT Posting Group are same as setting up General Posting Groups

4) FINANCIAL MANAGEMENT -> SETUP -> VAT POSTING GROUPS -> BUSINESS

General Posting Setup

1) FINANCIAL MANAGEMENT -> SETUP -> POSTING GROUPS -> GENERAL -> POSTING SETUP

2) Matrix of General Business Posting Group and General Product Posting Group

Product Posting Group

1) Assign to items and resources

2) FINANCIAL MANAGEMENT -> SETUP -> POSTING GROUPS -> GENERAL -> PRODUCT

3) breakdown sales by items and purchases by items

General Business Posting Group

1) Assign to Customers and Vendors.

2) Use to break down sales by customers and purchases by vendoers.
a) geographical area - domestic, export
b) type of business - retail, industrial, service, wholesale
c) private / government

2) FINANCIAL MANAGEMENT -> SETUP -> POSTING GROUPS -> GENERAL -> BUSINESS

3) Fields in General Business Posting Groups
a) Code
b) Description
c) Def. VAT Bus. Posting Group
--> Default VAT Bus. Posting Group for transaction involving this General Bus. Posting Groups
--> Auto updated to Vendor / Customer card if Auto Insert Default is set to true.
d) Auto Insert Default

General Posting Groups

There are 2 types of General Posting Groups:

1) General Business Posting Group
a) Who we sell to - CUSTOMERS
b) Who we buy from - VENDORS

2) General Product Posting Group
a) What we sell - ITEMS and RESOURCES
b) What we buy - ITEMS

Vendor Posting Group

1) FINANCIAL MANAGEMENT --> SETUP --> POSTING GROUPS --> VENDOR

2) Fields in Vendor Posting Group
a) Payable Account
--> Payables due to vendors.

b) Service Chage Acc.
--> Service charges due to vendors.

c) Payment Disc. Debit Acc.
--> Reductions in payment discounts received from vendors.

d) Payment Disc. Credit Acc.
--> Payment discounts received from vendors.

e) Debit Curr. Appln. Rndg. Acc.
--> Rounding differences that occurs when applying entries in different currencies.

f) Credit Curr. Appln. Rndg. Acc.
--> Rounding differences that occurs when applying entries in different currencies.

g) Debit Rounding Account
--> Rounding diffrences from remaining amount.
--> Remaining Amount is the amount remains to be applied and is shown in the original currency.

h) Payment Tolerance Debit acc.
--> Purchase tolerance
--> Must use together with Business Posting Group

i) Payment Tolereance Credit Acc.
--> Purchase tolerance
--> Must use together with Business Posting Group

j) Interest Account
--> Interest transaction



To Assign the Vendor Posting Group to Vendor:
1) Open the Vendor Card (FINANCIAL MANAGEMENT --> PAYABLES --> VENDORS)and browse to the vendor on which you want to assign the Vendor Posting Group.
2) Click on Invoicing tab.
3) Select a Vendor Posting Group.

Customer Posting Group

1) Financial Management --> Setup --> Posting Groups --> Customer

2) Code field have a maximum of 10 characters.

3) You can create as many code that you like but the code must be unique.

4) You can specify the accounts to which Navision will post to when posting transaction invoiving customer. Accounts that can be specified include:
a) Receivable Acccount

b) Service Charge Acccount

c) Payment Disc Debit Account
--> payment discount granted to customers
--> can only be used if Adjust for Payment Disc. field in G/L Setup table is not activated.

e) Payment Disc Credit Acc
- reduction of discout granted to customers

f) Interest Acc
--> post interest from reminders and finance charge memos for customers
--> reminder is the document used to remind customer of outstanding balance
--> finance charge memo is the document that contains information about interest + outstanding balance.

g) Additional Fee Account
- post additional fee on reminders and finance charge memos

h) Invoice Rounding Acc
--> speficies which account Navision will post amount that resulting from invoice rounding
--> can only be used if you check the Invoice Rounding Field in the Sales & Receivable Setup
--> additional invoice lines will be created for the rounded amount.

i) Debit Curr. Appl. Rndgn. Acc.
--> post rounding differences that occur when you do apply entries in different currencies

j) Credit Curr. Appl. Rndgn. Acc.
- same as (h)

k) Debit Rounding Acc.
--> points to account that Navision will post the rounding differences from remaining amount (Cust. Ledger entry Table)
--> remaining amount is the amount that remains to be applied to before entry has been completely applied.

l) Credit Rounding Acc.

m) Payment Tolerance Debit Acc

n) Payment Tolerance Credit acc

5) After the Customer Posting Group has been setup, you can assign it to Customer Card
--> Go to Invoicing Tab
--> Select the Customer Posting Group

After you setup the Customer Posting Group, whenever you post sales order, invoices, credit memos, payments, etc related to the customer, Navision will post to the specified accounts based on the Customer Posting Group setting in the Customer Card and Customer Posting Group Setup.

Posting Group Overview

The purpose of posting group is to create links between different application areas with G/L Accounts. Therefore, you must setup COA before you setup any posting group.

There are 3 types of posting group in Navision:

1. Specific Posting Groups - Customer Posting Group, Vendor, Item, Bank Account, Fixed Asset
2. General Posting Groups - General Business Posting Group, General Product Posting Group
3. VAT Posting Groups -