Improved Core Financial Management Features in Microsoft Dynamics NAV

Time-saving features were added to the core Financial Management functionality, starting with Microsoft Dynamics NAV 2016. Subsequent releases of NAV have seen continued improvements. NAV’s Finance and Accounting functionality has been improving in both quality and speed. Now you can streamline your bookkeeping and have more sophisticated control over complex transactions.

 

Take note of these four enhancements to NAV for Financial Management:

 

1) Bank Reconciliations

 

Fundamental accounting tasks such as reconciling your general ledger cash account against your bank statements are now streamlined in Dynamics NAV. You can easily identify and solve any discrepancies by spending less time matching cleared transactions.

 

This upgrade begins with Dynamics NAV’s Data Exchange Framework, which allows users to create templates that align the format from bank statements with matching fields in NAV. If you have accounts at multiple banks, you can create additional templates.

 

Once the templates are created, you can import statement files directly into NAV 2016 or NAV 2017. Just supply the account number and statement ending date on the reconciliation page, and the statement entries will be displayed side-by-side with the posted NAV entries.

 

Should you choose to forgo the statement import option, the manual reconciliation process is also available. It has been made much more efficient than previous versions. Use the Suggest Line functionality to copy your NAV ledger entries to the statement side of the reconciliation. If there are transactions which do not clear, you can easily un-match them by deleting them from that side of the page. If you see inconsistencies such as different amounts, you can flag the transaction as a “difference,” un-match it, and resolve it during the next reconciliation cycle.

 

2) Positive Pay

 

Another way to ensure accuracy is through Positive Pay, which has been built on the Data Exchange Framework. This feature allows you to create custom export templates for transmitting authorized check payment information to your bank.

 

NAV 2016/2017 includes pre-built export templates for Bank of America and Citibank, but you can also create templates for other institutions based on information they provide. Create multiple templates for multiple banks and multiple accounts. Or ask us for help in setting up your templates in a way that will make your payments both fast and secure.

 

Once the template is created, NAV 2016/2017 will create a Positive Pay file that can be emailed or uploaded to your bank, which has a confirmation number that you can then use to locate any irregularities flagged by the bank.

 

3) Prepaid Expenses and Revenue Deferrals

 

The Revenue Deferral and Prepaid Expenses features of NAV 2016/2017 allow you to create a transaction that distributes prepaid expenses or revenue over time, while automatically posting future transactions to the General Ledger at the correct intervals. After the fact, you no longer need to post recurring Journal entries. These features simplify complex deferred revenue processes such as subscription services, product warranties, as well as prepaid expenses.

 

Here again, customized templates in your Dynamics NAV 2016/2017 are the key to efficiency and accuracy. Your template can specify a percentage/fixed amount of revenue or expense to be distributed over start date, calculation method (ex: monthly, daily, etc.), duration, or time. You can create as many templates as necessary to cover your company’s various deferral models. The Income Statement accounts are entered in the lines of the journal entry or document on each deferral template, and the Balance Sheet account is specified in conjunction with that deferral template.

 

You may choose to set your most frequently used templates as a G/L Account master record, Resource, or a default code on an Item. Or, you may choose templates manually for each transaction.

 

4) Posting Preview

 

This feature will enable you to see all entries that will be affected by a transaction before you post it. The preview is available for journal entries, receivables, payables, and service documents. When you launch the preview, NAV will show you the impact the transaction has on your General Ledger in addition to all sub-ledgers (Vendor Ledger, Customer Ledger, and so on). This means you will be able to realize the value of items taken out of inventory for deferred revenue sales in addition to the portion of the COGS and sale recorded during each time period.

 

The enhanced features in Microsoft Dynamics NAV make it even more valuable and appealing to your finance and accounting team and to those who rely on financial data for decision-making.

 

For more detailed descriptions of these and other Financial Management features, including video demonstrations, visit the Resource Library on westerncomputer.com and take advantage of our on-demand webinars.

 

We are excited about the enhanced features in Dynamics NAV and look forward to the release of NAV 2018. If you are interested in talking about how Microsoft Dynamics NAV can make your financial management easier, more efficient and more reliable, contact our NAV experts at Western Computer 800-729-9971.

 

By Western Computer