Understanding Microsoft Dynamics 365 Finance & Operations modules

Microsoft Dynamics 365 Finance & Operations (D365 F&O) is a powerful enterprise resource planning (ERP) solution that helps you manage your financial and operational activities in the cloud. Dynamics 365 Finance & Operations modules comprises multiple functional areas that work together to streamline processes across your business. In this blog post, we will give you an overview of D365 F&O, explore its two main applications, and outline the modules available in each.

Dynamics 365 Finance & Operations refers to a pair of ERP applications in the Microsoft Dynamics 365 suite: Dynamics 365 Finance and Dynamics 365 Supply Chain Management (D365 SCM). Together, these two applications cover a wide range of business functions, from core accounting to inventory and production. These two applications can be used individually or combined to create a powerful and comprehensive ERP system.

• Dynamics 365 Finance focuses on financial management and accounting. It helps you streamline finance operations, automate routine accounting tasks, monitor real-time financial performance, and maintain global accounting standards.
• Dynamics 365 Supply Chain Management concentrates on the operational side of the business. It covers everything from procurement and manufacturing to distribution and logistics, helping you optimize supply chain processes, control costs, and have end-to-end visibility of your operations.

Below is a table listing the key Dynamics 365 Finance & Operations modules included in each application:

Dynamics 365 Finance contains modules related to core accounting, cash/bank management, and project financials, while Dynamics 365 Supply Chain Management contains modules related to procurement, manufacturing, inventory, and distribution.

D365 Finance is designed to handle the financial side of your business. Its modules allow finance teams to keep accurate records, enforce internal controls, and draw insights from up-to-date financial data. Using Dynamics 365 Finance, you can manage everything from day-to-day bookkeeping and cash management to high-level financial planning and analysis, all in one system. The application supports multi-currency and multi-company accounting, so it’s suitable for companies that operate across regions.

Dynamics 365 Finance modules include:

• General ledger: The central hub for all financial transactions and the basis for financial reporting (e.g., income statements, balance sheets).
• Cash and bank management: Tools for managing bank accounts, cash flow, and bank reconciliations to maintain clear visibility of cash positions.
• Accounts payable: Manages vendor invoices and outgoing payments, helping control expenditures and pay suppliers on schedule.
• Accounts receivable: Handles customer invoicing, incoming payments, credit, and collections to track receivables and improve cash flow.
• Budgeting: Supports creating budgets and tracking actuals versus budget, enabling better financial planning and expense management.
• Fixed assets: Tracks company assets from acquisition through depreciation to disposal, ensuring proper accounting of asset values.
• Cost accounting: Allows you to analyze costs (for example, by cost center or product) to understand profitability.
• Project management and accounting: Manages the financial aspects of projects, including project budgets, cost tracking, and billing for project work.

Dynamics 365 Supply Chain Management helps companies manage the flow of materials and products from procurement to production to delivery. With its modules, you can optimize inventory levels, streamline manufacturing, improve warehouse efficiency, and coordinate logistics, so customer orders are fulfilled on time while keeping costs low. This is especially valuable for manufacturers, distributors, and retailers that need to modernize their operations. It provides real-time visibility into each step of the supply chain and gives businesses the agility to respond quickly to changes in demand or supply.

Dynamics 365 Supply Chain Management modules include:

• Inventory management: Tools for tracking stock levels and movements across locations, ensuring accurate inventory records.
• Master planning: Supports demand forecasting and supply planning to make sure the right materials are available at the right time.
• Procurement and sourcing: Manages purchasing processes from vendor onboarding and purchase orders to vendor invoice matching.
• Product information management: Centralizes product data (item master records) for consistent product definitions and bill-of-materials management.
• Production control: Supports manufacturing operations, including scheduling production jobs, managing shop floor work, and tracking work-in-progress.
• Warehouse management: Provides capabilities for warehouse operations like receiving, picking, packing, shipping, and inventory tracking.
• Cost accounting: Helps analyze and control production costs by tracking cost variances and margins.
• Cost management: Manages inventory costing methods and calculations of cost of goods sold, offering insight into product profitability.
• Transportation management: Plans and optimizes the shipment of goods, managing carrier contracts, routing, and freight rates.
• Asset management: Handles maintenance of physical assets (machines, equipment), including scheduled maintenance and repair tasks to reduce downtime.
• Service management: Enables management of service agreements and service orders, supporting after-sales service and repairs for customers.
• Sales and marketing: Covers sales order processing and related sales operations (quotes, sales orders, and customer management) within the ERP system.

Rand Group is a Microsoft Dynamics 365 F&O consulting partner with over 20 years of experience delivering ERP solutions to clients across industries. We help organizations navigate the complexities of Dynamics 365 Finance & Operations modules, from selecting the right applications to fully implementing, customizing, and supporting the solution long-term. Whether you need just D365 Finance, just D365 SCM, or both, we guide you through the decision-making process based on your business structure, goals, and industry requirements. Our team includes senior consultants with deep expertise across the full suite of D365 F&O modules. With a 90% client retention rate, we build long-term partnerships and deliver results that align with real-world business needs.

Our Dynamics 365 F&O services include:

• Application selection: Evaluate your operations and determine whether D365 Finance, Supply Chain Management, or both are the right fit.
• Implementation: Full D365 F&O implementation services, including planning, configuration, testing, data migration, training, and go-live support.
• System customization: D365 F&O development and customization to adapt standard modules and workflows to fit unique requirements across finance, supply chain, or industry-specific operations.
• Integration: Seamlessly integrate D365 F&O to other systems in your tech stack, like CRM, HR, payroll, data warehouses, or third-party applications.
• Support: Continuous post-implementation D365 F&O support, system updates, and issue resolution from a team that knows your environment.

D365 Finance & Operations offers a unified platform to run your company’s financial and operational activities. By leveraging the right mix of Dynamics 365 Finance & Operations modules, you can streamline workflows, eliminate data silos, and make more informed decisions based on real-time information. Whether you require the finance capabilities of D365 Finance, the supply chain features of D365 Supply Chain Management, or both, this cloud solution can drive significant improvements in your business. Contact Rand Group today to learn more or to get started on your D365 F&O journey.