Get started with cost accounting

Get started with cost accounting


Welcome! In this video, I will demonstrate how you can easily get started with Cost accounting in Microsoft Dynamics 365 for Finance and Operations, Enterprise edition. If I go to any object within the Cost accounting module, And, we have not used the module before. In this instance, I will go-to the cost control workspace. We can see that I’ll get prompted with this welcome message. Simply because the system, the text that no entities exist in Cost accounting and it allows me to click Get started. And when I do so, a wizard will be popping up. In the wizard, I have a nice welcome message to explain what Cost accounting can do for you, and there’s also a link to the Cost accounting homepage where you can find wikis, task guides, and other videos. If I click next in the wizard, it will ask me and guide me through the setup of Cost accounting by me giving and providing some information to the system. So first, I need to select which legal entity that I want to take the data from. In this case, I want to take data from USP2. So I write USP2 in and select the legal entity. And I will click Next. Based on my select of USP2, the system recognizes which chart of account it will use as my basis for my cost elements. And to create cost elements, I need main accounts. And instead of you selecting each main account we can actually import them based on the main account type. And the system already preselects the three normal main account types that will become cost elements in Cost accounting. You can change these in the wizard, or you can leave them as they are. In this case, I will leave them as they are, and continue in the wizard. For the cost accounting ledger, you have to provide a and and a description. I will call this My trial version and give it an description of USP2. And again, based on my selection of USP2 as my legal entity, It actually defaults the fiscal calendar, the exchange rate type, and the accounting currency. For the Cost accounting ledger, I can change this, for instance accounting currency to a different currency if I want to, or I can leave as it is. In this case, I will leave it as it is. And I will click Next. Cost accounting works for cost objects and cost objects come from financial dimensions. So the wizard expects that I select at least one financial dimension as my cost object. In this case, I want to select cost centers. I select cost center and I click Next. Cost accounting also works with budget figures. So if you want to work with and have the budget figures in your ledger, you can actually select which budget model you want to import. In this case, I want to deselect it And I want to click Next. I can always later on configure the system to import the budget numbers. I’m actually now done with the wizard, and it says Congratulations. I’m done. And, tells me about what is going to do afterwards once I click Finish. And it also explains what I can do after I actually completed the wizard, I want to complete it by clicking Finish. And the system now creates one batch job where it’s going to create a lot of entities, configure a lot of data providers and process these data providers, so I will have data in my Cost accounting populated afterwards. So I will close these two forms down here. And we can go to the Cost accounting ledger, which has already been generated. So here is my cost accounting ledger entity. It’s call trial version as I provided the name in the wizard. We can see that the fiscal calendar is Fiscal, the accounting currency is US dollar, and the exchange rate type is default. We can also see when I go to control units That it created a control unit based on my dimension cost center. So, my ledger is now configured completely. If we go to the dimensions, which are really the building blocks of Cost accounting, we can go to the cost element dimension. We can see that it created one entity here called Main accounts. It created and selected the data provider for this entity to be Dynamics 365 for Finance and Operations. And if you go to configure the data provider, we can see that the data provider has been configured based on the settings that I actually entered in the wizard. And if we go to view dimension members, we can also see that it actually processed this data provider, and it has imported all the main accounts based on the three main account types. And it has created them as cost elements, of the type Primary in Cost accounting. If we go to cost object dimensions, We can see that it created an entity called cost center. The data provider is also Dynamics 365 for Finance and Operations. If we go to configure the data provider, we can see the data provider is configured based on the financial dimension cost center. And if you go to view dimension members, we can also see that this data provider has already been process and only cost centers have been imported. The system has also created two dimension hierarchies. One for the cost center and one for my main accounts. These are two very basic hierarchies, which is very important in Cost accounting because it allows you to create reporting your reporting hierarchies for the workspace, for the export to Excel, and so on, and also for your policies. The two hierarchies that have been created by default by the wizard are very basic. So if you go to view hierarchies, you can see it is very basic with one root and one node. And within this node, under the dimension member ranges, we can see that it actually goes from cost center 007 to 094, which is all the cost centers that we have actually imported. As a user, you can then create either a new and more advanced dimension hierarchy, or you can simply just change the hierarchy by creating new notes and moving the nodes up and down to add your own dimension member ranges as required. The wizard has also created the first workspace configuration, which is really our reporting components in Cost accounting. It’s called Actual by default because I only imported the general ledger data. And here we can see that it has selected my Cost accounting ledger and cost control unit of that ledger. We can also see it inserted the two hierarchies, the cost element dimension hierarchy and the cost object dimension hierarchy. The rest of the data in this configuration can always be changed by the user in any given point of time. If we go back to the ledger, We can actually also see on the actual versions that it created the trial version, which is our actual costing version. And we can also see under Managed, and under Data sources of general ledger, that it created one entity of USP2 and the data provider is Dynamics 365 for Finance and Operations. And that means if I go under Configure data provider, and the data provider has been set up as we specified, the legal entity is USP2, and the posting layer is Current. And when I process this data source, it will import the general ledger data from my financial system into Cost accounting. I will close it down, it has actually already been done. So if we go back and we go to source data processing to the general ledger entry transfer journals, we can see the first journal has been processed. This is because the wizard will run for the period that you’re running it in to see there is any general ledger data that can actually process into Cost accounting. And the first entry has already been processed by Cost accounting. And therefore, if I go to my workspace cost control, which was empty when we started this little video, and click. We’re now able to see that it actually now can show data and I can now select my cost object dimension hierarchy, even though it is very basic. I can select a level, and I can also drill into into the numbers. Again, very basic in my cost elements hierarchy and see that in total, we have approximately two hundred thousand us dollars imported into Cost accounting for my general ledger system. So, now imagine that you can create your your cost center hierarchy much more advanced and you can create your cost element hierarchy much more advanced. And, then you have the whole reporting story. So, this is a very quick way to get started with Cost accounting. You get your basic data set up. You get the basic providers processed, and you are now ready to go and explore Cost accounting by going through the creation of allocation bases and policies so you can start actually to make the cost behavior policies, cost distribution policies, and cost allocation policies. So this is what I wanted to show about the new wizard capability. Thank you for seeing and listening.

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