Hi All,
There are some key topics about how retail and commerce is related to finance. I provide settings, suggestions, links to understand more how these both modules are connected.
The document with screenshots is attached below.
How Retail/Commerce related to Finance:
1. Sales tax setup related to stores
a. Sales tax code setup
b. Sales tax group setup
c. Item sales tax group setup
d. Stores with ‘Prices include sales tax’
e. Exempt tax scenarios
f. Sales tax for Online stores
Very useful blog article related to sales tax settings:
https://community.dynamics.com/365/commerce/f/dynamics-365-commerce-forum/406060/sales-tax-setup-recommended-for-retail-stores
2. Financial dimensions/Account structure
Account structures use the main account and financial dimensions to create a set of rules that determine the order and values used when entering the account number. You can set up as many account structures as you need for your business.
a. Useful docs:
Configure account structures - Finance | Dynamics 365 | Microsoft Docs
Default financial dimensions - Finance & Operations | Dynamics 365 | Microsoft Docs
The blog article describes how financial dimension are posted:
https://community.dynamics.com/365/financeandoperations/b/axsupport/posts/financial-dimensions-hierarchy-in-dynamics-365-for-commerce
b. If non of above parameters do help to correct financial dimension, use Edit/Audit feature:
- On version 10.0.6 and higher versions it is possible to Edit Cash management transactions and audit Cash and carry transactions. You can update these by installing the Dynamics Excel Add in.
Useful links to documentation:
https://docs.microsoft.com/en-us/dynamics365/retail/edit-audit-retail-transactions
https://docs.microsoft.com/en-us/dynamics365/commerce/edit-financial-dim
- Edit "Transdate and BusinessDate" for retail transactions:
When the transactions are validated, they will be flagged that the fiscal period is closed. You can then go to the Transaction validation failures tile in Retail store financials. You would then be able to use the Office Add in and Edit selected transactions to update the appropriate fields "Transdate and BusinessDate" in this case. You can then publish your changes.
Customers would no longer need to create a support ticket to update the dates on the transactions. Geneva Actions make it fast to update the transaction and business date, but this is even better news that the customer can update the dates themselves:
https://community.dynamics.com/365/financeandoperations/b/axsupport/posts/transaction-validation-added-the-functionality-to-look-at-closed-fiscal-periods-in-validation-store-and-allow-you-to-edit-the-validated-fields-when-the-fiscal-period-is-closed
3. Accounts used in posted voucher (e.g. for customer revenue, customer balance or item postings / costs)
When you create Customer account – it has Customer group:
Open Customer group/Setup/Item posting:
Main accounts may be set for one item or group of items, for one customer or group of customers.
Also it is possible to set up Sales tax group as a default group which will be added creating customer with that particular Customer group.
Posting voucher the system is verifying the combination of all settings and accordingly takes ledger account.
The most commonly used ledger accounts from the form above:
- Costs (item costs)
- Revenue
- Discount
Ledger accounts can be taken also from some different places:
- Customer balance ledger account taken from Customer posting profile which is assigned in AR parameters/tab Ledger and sales tax/fast tab General.
- Sales tax ledger account taken from Sales tax code/General/Ledger posting group.
- Payment ledger account taken from Payment method set on the Store.
4. Rounding setup
Rounding can be set up in different places:
a. Currency rounding – Currencies/tab Rounding rules:
In Retail scenarios it could be used when prices are rounded depending on this setting:
- General rounding rule - the value in the General Rounding rule field affects all values in all
- Modules
- Sales orders rounding rule – amounts rounded in sales orders
- Prices rounding rule – rounded item prices
b. Payment rounding – Store/Payment methods/tab Amount/Rounding:
5. Accounts for automatic transactions
In Accounts receivable parameters/tab Settlement/section Options we have Maximum penny difference and Maximum overpayment or underpayment.
In standard we have set these 2 parameters set to 1.00, but in real business case it should be even lower amounts.
We recommend setting these parameters with very low amounts. Maximum penny difference set to 0.01 or 0.02.
For the maximum over/underpayment – set to very low amount or leave even zero.
The definition of these two parameters:
Maximum penny difference
Enter the maximum permitted penny difference for the settlement of accounts receivable transactions. If the penny difference is equal to or less than the penny difference that is specified in this field, the difference will be posted to the Penny difference ledger account that is specified in the Accounts for automatic transactions form.
Maximum overpayment or underpayment
Enter the amount that is accepted for overpayment and underpayment.
• If the overpayment or underpayment produces a penny difference that is less than the difference that is defined in the Maximum penny difference field, the penny difference amount is posted to the Penny difference account.
• If the overpayment or underpayment produces a penny difference that is greater than the difference that is defined in the Maximum penny difference field, the penny difference amount is posted to the difference account that is selected for the Customer cash discount posting type in the Accounts for automatic transactions form.
Additionally, we have very good examples that illustrate such postings:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/cash-bank-management/cash-discount-handling-overpayments
6. Discounts / Periodical discounts
a. Each Retail discounts can be posted to their own ledger account:
b. If there is no Discount account on Retail discounts, all discount will be posted to one ledger account which is set up in Commerce parameters as Periodic discounts:
Commerce parameters/tab Posting/fast tab Periodic discounts/Post periodic discount should be enabled and ledger accounts for each type of discount added.
c. If there is no Discount account on Retail discounts, and no Periodic discounts set up, all discounts will be posted to ledger account which is set up on Item posting (see point 3).
NOTE: When Periodic discounts enabled or Retail discount has a separate ledger account, after retail transaction is completed/customer order completed – discount will be posted to ledger account from Item posting. When retail statement is posted, there is an additional voucher posted where we move discount amount from Item posting ledger account to particular Periodic discount account or Retail discount ledger account.
7. Gift card with sales tax included
For this please check such docs:
(99+) Sales Tax on Gift card sales - Dynamics 365 Commerce Forum Community Forum
8. Advance payment
Advance payment default percentage can be set in Commerce parameters/Tab Customer orders:
When the customer order created in POS or Call center, the default deposit percentage will be calculated for advance payment. You may override deposit in POS if needed.
When Deposit (Prepayment) is paid in POS or Call center, in HQ we will get payment journal posted which is using ‘Posting profile with prepayment journal voucher’. There is also possible to enable/disable ‘Sales tax on prepayment journal voucher’:
Posting profile PRE is set with ledger accounts which will be used in Prepayment voucher:
- Summary account= 212160 – used to post Deposit for Posting type ‘Customer balance’
- Sales tax prepayments= 221850 – used to post sales tax
Posting profile can found in Payment journal Lines/Tab Payment:
Voucher for Deposit looks like this:
9. Settlement of Customer transactions
When retail sales are posted in HQ (sales invoice) and payments are posted, these transactions are going to be posted to ‘Customer transactions’ as well. Each invoice and payment should be settled so the balance remains always zero. In some cases (some bugs or very rare cases) these transactions are not settled. Then transactions should be settled manually.
In ‘Customer transactions’ we have Transaction type Payment and Sales order. Balance for both transactions is zero, this means they are fully settled:
To check the settlement how it was made, you can select one of transactions/Settlement/Settlement history. E.g. Payment transaction marked above, select Settlement/Settlement history – you will see it is settled with voucher INV-10012507 which is Sales order:
If settlement is not posted, Balance amount will be filled with the amount which is not settled. Then you may settle them manually by clicking on Settlement/Settle transactions.
10. Statement posting - Posted Vouchers/Payment journals/Invoices
When we post retail statement – we get vouchers posted related to each statement. All can be found in Posted statements/Inquiries/Statement vouchers. There can be found Invoice vouchers, Payment vouchers, Income/Expense vouchers.
When some issue are happening, it could be some vouchers are not posted, but for some reason they are not included to the statement. You may check all posted vouchers in General ledger/Inquiries and reports/Audit trial. If you are not sure where from the voucher is posted, you will always find them in Audit trial.
Posting retail statement, it might be the error appears “The transactions on voucher %1 do not balance as per %2". First, we recommend checking if all setup is done correctly.
Please check the places as per below if you have all setups done:
1. On a Store Payment method/tab Posting do you have ‘Difference account’ and ‘Big difference account’ are set up?
2. On a store/tab Statement/Closing if ‘Rounding account’ and ‘Maximum rounding amount’ are set up?
3. GL/Posting Setup/Accounts for automatic transactions – do you have all these accounts set up?
- Penny difference in reporting currency
- Penny difference in accounting currency
- Cash discount
- Customer cash discount
4. In General ledger parameters/tab Ledger/Section General/’Maximum penny difference’ and ‘Maximum penny-rounding in the reporting currency’ – do you have there any amount or zero?
5. AR parameters/Settlement/’Maximum penny difference’ and ‘Maximum Overpayment or Underpayment’- do you have any amount there?
Some advice when you get some issues to post retail statements when it is failing on customer order creation or posting, always try to test the same without statement. Create a standard regular sales order for the same customer account, same item, same warehouse etc and try to post. If the issue can be reproduced, maybe it is not retail related but core SCM code.
