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Create a test/ cronus environment and P&L question

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Posted on by NL_Question

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.

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Dynamics 365 Business Central

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Gavin 2,339 on at

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RE: Create a test/ cronus environment and P&L question

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
NL_Question 5 on at

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RE: Create a test/ cronus environment and P&L question

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
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Inge M. Bruvik 32,748 Super User 2024 Season 1 on at

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RE: Create a test/ cronus environment and P&L question

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!
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MahGah 15,428 on at

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RE: Create a test/ cronus environment and P&L question

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