14 Important points in Dynamics NAV, that are often overlooked
To celebrate that iNECTA is turning 14 today, I am going to list out important points that are often missed in 14 different functional areas within NAV.
1. General Ledger
Accounting periods need to be created and managed for all years. It is possible to post and operate NAV normally without any accounting periods set. But this is not advisable. Make sure you have created all the periods for all the years you have been operating and for the year ahead. It is impossible to close the year and post to retained earnings without them.
Make sure your accounts receivable GL Account does not allow direct post. This is a simple, but often overlooked detail. If you allow direct posting to your AR GL account then your AR aging and GL might not tie out. That is the first flag your auditor will look for.
3. Accounts Payable
As with Accounts Receivables, the GL account for AP needs to also have the direct post flag off.
4. Sales Order Management
Do not overflow your customer list with accounts that you never sold to. You can quote contacts in NAV, and when the quote becomes an order, the contact automatically turns into a customer. You customer list can quickly become messy if you do not use this feature.
5. Purchase Order Management
If you are managing any type of distribution business and haven´t looked at the requisition worksheets, you should. The requisition worksheet is the piece that connects supply with demand allowing your business to elevate from managing order by order to managing aggregate demand with supply.
6. Inventory Control
Make sure you understand automatic cost posting and expected cost posting fields. Many users just set these fields to what they think they should have and move on. Not having a full understanding of these fields, will lead to confusion when deciphering the inventory and cost of goods accounts. I could probably write a whole separate blog entry on these features.
7. Warehouse Management
Understand the difference between bin management and shelf management. It is usually better to be very selective on when you turn on bin management in a location. Although bin management might solve the immediate problem of not being able to store things in bins in the system, it introduces the overhead of managing everything in a bin. If you are implementing scan guns at the same time, then the overhead is less.
8. Fixed Assets
NAV has fixed assets, so use them! For some reason many users do not implement fixed assets in NAV, and prefer to run the depreciation in Excel or another program. NAV has excellent features in the fixed asset module and can handle almost any depreciation method. It ties to the sales and purchasing systems to automate acquisition and disposal postings among other things.
Check out the Production Journal, found in the line level on a Production Order. It is a very handy way to post consumption and output on a all-in-one page. Users often go straight into the standard consumption and output journals without investigating this little feature.
There is a relatively new page called WIP cockpit which is an excellent overview of what your WIP consists of. Work in process can be a difficult account to decipher if you do not have right tools. WIP cockpit provides an onscreen overview of WIP.
11. Resource Planning
This entire area is often overlooked. Resources are an excellent feature that can be used for things that are bought and sold, but you do not want to maintain inventory for. It provides a separate ledger for each resource which can be used for analysis. Although the system does not allow for resource purchases out of the box, it can be easily extended to do so.
12. Service Management
NAV is capable of managing service items that are not actual items. For example a service company can take over existing service items that the customer has. Users often think that the system will only take care of items sold.
13. Human Resource
Even if you outsource your payroll, it is still a good idea to maintain the employee file. One nice feature, is that you can connect the employee to the fixed asset to label who is responsible for the property, such as a laptop, etc.
Understand the posting date restriction in NAV. You can setup restrictions on posting both on the top level for all users and the user level. NAV does not hard close periods, only years. By properly managing the allowed posting dates, you can take at least some of the chaos out of your Chart of Accounts.