Microsoft Dynamics 365 Financials Versus Operations ERP Software

My simple productivity test found a comparable number of mouse clicks when creating transactions without inventory items. However, more mouse clicks were required to enter transactions (quotes, orders, invoices, RMA's, PO's and vouchers) that contained inventory items. I also found application navigation generally required more mouse-clicks and screen to screen sequencing. For example, extra mouse clicks were required to access starting point functions such as any particular module, as the system displays modules in categories, and then the user must drill down further to the desired module (such as GL, AP, AR). Similarly, extra clicks were required to access the search field in order to view lists (Chart of Accounts, Orders, etc.) or objects (customers, items, etc.)

The default landing pages deliver simple dashboards, and use graphical constructs such as tiles for key performance indicators (KPIs), but are not as intuitive or flexible as Operations which offers easily configurable Workspaces (for daily work), accessible Favorites, contextual Recent records and on-screen dashboard items such as the tabbed List Pane, optional additional panes and related links.

The application is also particularly strong in filtering large data sets into easy to consume views. Operations offers four list view filtering functions (Quick Filter, Filter Pane, Grid Column Filter and Advanced Filter) which make accessing individual or groups of records much simpler. The additional Fact boxes which display on list pages and master record forms (customers, vendors, items, etc.) reduce keystrokes and required drill-down to subsequent pages. Similarly, the Fast tabs on master data pages accelerate access to supporting information more intuitively and with fewer clicks.

A more advanced but real world time saving function is Operations ability to display connected windows to view related information in side by side (modeless) frames and scroll through a series of records (i.e. view a customer list window on one side which is linked to customer orders, receivables or other related records in a window on the other side). The Help is good in both applications, but the Operations custom Help with Task Guides and Task Recorders can put help content into video that is easy to consume.

Cross Border fulfillment capabilities (outbound report, tariff assignment) can be managed. Tariff Code classification assigns classification codes for going across borders.

The built-in General Electronic Reporting (GER) is able to model report formatting and apply date effectivity. This is a configurable tool (which replaces custom coding) to address challenges of creating and maintaining regulatory electronic reporting and payments often required for non-U.S. compliance. This also makes financial reporting more extensible and can be localized for countries other than the U.S. if foreign reporting is needed.

The General Tax Engine (GTE) can model tax calculations and apply date effectivity. This makes tax reporting more extensible and can be localized for countries other than the U.S.

The Finance software does not support the Management Reporter financial statement designer. It instead uses Account Schedules and internal parameters to create financial statements. This limits financial statement production and often results in creating financial statements in Excel.

It also supports Management Reporter for budget and financial statement design and delivery. This offers more flexible reporting and the ability to automate period-end reporting packages. Financial planning, budgeting and analysis is supported in the application (not just in Excel). For example, bottoms up budgeting and forecasting can be modeled with user-defined variables (i.e. historical performance, number of staff, output per Representative) and What-If and pro forma modeling can show forward looking projections.

Vendor, procurement and payables dashboards are available but very simple and not as extensible.

The Finance application will likely meet most of the payables management requirements for small and midsize businesses, however, may not satisfy many of the inventory and fulfillment requirements for inventory-based companies.

Finance has much lighter inventory controls, inventory management, order tracking and SKU analysis. Both the Dynamics 365 Finance and Operations ERP software do not offer EDI processing.

The workflow design is more sophisticated (i.e. more granular trigger events, routing, rules, etc.) so events such as PO, voucher and RMA approval processing can be more streamlined. The vendor portal can be used by vendors to update fulfillment information, upload invoices and collaborate (verify price discrepancies, updates and more).

Information accessibility is slightly better due to features such as quick access to distribution accounts per vendor, or the Record Information panels available on list and entity pages.