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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Create a test/ cronus ...
Small and medium business | Business Central, N...
Suggested Answer

Create a test/ cronus environment and P&L question

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Posted on by NL_Question 5

Hello all,

I'm just getting started with business central. Although I'm experienced with Microsoft products, this seems to be another level. I have two questions, I hope someone can help me with. 

Question 1: 

How can I set up a test environment? Or how can I open Cronus example company? I would like to add dimensions, create reports etc without screwing up the production environment.

Question 2: 

I noticed that "Change in trade goods" (8805) is part of revenue. I do not understand this line item. It seems that in some cases "Direct Cost" (credit) is booked as revenue. The debit entry is stock. Does someone understand this ? To phrase it differently, for some purchases I see 4 entries: Direct Cost, Purchases, Accounts Payable and Stock. I do not understand why direct cost would be part of revenue. 

Categories:
Dynamics 365 Business Central
Dynamics 365 Business Central
I have the same question (0)
  • Suggested answer
    MahGah Profile Picture
    MahGah 15,529 on at

    Hi

    For question1 please see this article: https://docs.microsoft.com/en-us/learn/modules/trial-dynamics-365-business-central/   or this video  https://www.youtube.com/watch?v=AbM_NYB8vIc

    I am not sure about question 2 since it goes to accounting section and how you want to set the BC up. I am sure other people such as   can provide more info here. 

    Thanks 

  • Suggested answer
    Inge M. Bruvik Profile Picture
    Inge M. Bruvik 1,111 Moderator on at

    Here you can read about how you create your first company in Business Central
    https://bc365.co/2021/12/19/lets-create-our-first-business-central-company/

    For further reference i would recommend you read one of these books to get an introduction to Business Central

    https://www.hougaard.com/book/

    https://sparebrained.com/your-first-20-hours-with-microsoft-dynamics-365-business-central/

    These books will also describe the different costing methods available in the system and how they effect your accounting,

    Change in trade goods is uses as a part of the posting process where you post inventory to your balance sheet as a result of your purchase orders and when you reduce your inventory as a result of your sales.

    The aim is to have the correct direct cost posted to your income and expense reports.

    Good luck with your Business Central journey!

  • NL_Question Profile Picture
    NL_Question 5 on at

    Dear Inge

    Thank you for your fast response.

    I find the posting process quite difficult to understand. I would have expect the following:

    Purchase of goods:

    D/ Purchases: 100

    C/ Accounts Payable: 100

    Receipt of Invoice for Purchase of Goods

    D/ Stock: 100

    C/ Purchases: 100

    Sale of Goods

    D/ Trade receivable: 200

    C/ Revenue: 200

    D/ Cost of goods sold: 100

    C/ Stock: 100

    Then for the PL I would expect a structure

    Revenue: 200

    Cost of goods sold: 100

    Gross profit: 100

    Hence, I dont expect a line item for Change in trade Goods.

    If you could help me understand better why such a distinction is made in BC that would really help.

    Best

  • Gavin Profile Picture
    Gavin 2,508 on at

    Hi,

    With regards point 2 I had similar queries when I first started to use Business Central. (my experience up to that point was with Dynamics GP)

    I documented my thoughts on the additional GL entries here on my blog here

    thedynamicsexplorer.com/.../

    My conclusion is that the extra postings are there to accommodate the Automatic Cost Posting option in the Inventory Setup. (I'm not sure if this is the case, its just my thoughts on this).

    Hope this helps.

    Thanks

    Gavin

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