Business Central OnPrem vs Azure vs SaaS

A few last months constantly I see misunderstanding what Business Central SaaS offering is. To be honest I thought it is all well known, but often it is not a case. Because of that, I’ve readjusted standard IaaS vs PaaS vs SaaS chart and made it applicable to Business Central. I think this chart speaks for itself, but if someone needs additional info, you can send a question and I’ll add details.

Just to be clear, on the top level where we have Company Data, I think on using BC as a system through UI or API’s. That means you are master of your data. You need to be sure how you enter and post your documents. But if we talk about configuration of system, mostly it will be done by your partner, but again this is your decision (as customer) to find trusted partner to work with.

As this chart cannot offer completely picture, I’ve added one more. First one was all about technology, but the next one is about licensing and what is included in system.

*) One thing maybe not 100% clear from this chart is infrastructure subscription if you are using BC on Azure (IaaS model). If you want to use Business Central deployed on Azure infrastructure (no SaaS), you can use a few different models. First you (as customer) can have your own infrastructure (1 VM, 2 VM’2, or VM + Azure SQL). The second, you (as customer) can use partner infrastructure and in this case you can dedicated hardware or services to you (as if you use your own) or you can use shared resources (more cost effective). In this case, middle tier can be used for more clients, as well as Azure SQL database can be added to Azure Elastic Database Pool and to get better performances and better cost. You can find ideas how to make it here (and this is important especially if BC SaaS is not available in your country). And one more thing… if you are using model BC on Azure, cost for OS and SQL Server is included in HW Subscription.

I hope it is now far clearer, but again if you need any additional detail, just send a question.

Posting Groups #26 – Deferrals in Purchase

Last year I had a series of articles about using Posting Groups in Microsoft Dynamics NAV. Now, I want to continue with some small updates.

I already wrote about using Posting Groups in purchasing process, but now I want to add a model when we use Deferrals (a very nice new feature in NAV 2016). In this case, we have some differences compared with a standard posting. System will use some different rules about Posting Groups (you can check standard purchase posting model here). In the following chart, you can understand how system uses Posting Groups when we have deferrals on Purchase document:

PG_Purch_Deferr.png

When we post document and get purchase posted invoice, we will get the following G/L Entries. You can find completely description of them in the next table:

Entries_Purch_Deferr.png

You can notice that we have more line amounts. Number of lines is based on number of period defined in Deferral Template. For each period, we have two lines (positive and negative). We have always first period lines, but other period lines are behind all entries, because they have not the same posting date. Their posting date is based on setup in Deferral Template.

Posting Groups #13 – Finance Charge and Reminders

When we have overdue sales invoices, we usually can use Reminders and/or Finance Charge Memos. Both of these documents increases debits of our customers. We don’t post these documents, but we issue them. But, these issued documents also can make G/L entries.

On the first flowchart, you can see how system uses posting groups on Finance Charge Memos.

FWC_FinChargeMemo

Results of this issued document in G/L entries are as following:

FinChargeMemo

Now, on the second flowchart, you can see how system uses posting groups on Reminder. It uses very similar as on Finance Charge Memos, but fees on Finance Charge Memos lines are based only on Terms, while fees on Reminders can be based on Terms and Levels.

FWC_Reminders

Results of Issued Reminders in G/L entries are as following:

Reminders

Posting Groups #10 – Item Returns Posting (Sale & Purchase)

In my earl posts about posting groups, I have showed purchase and sales processes. But both of these processes have its opposite processes.

If our customer wants to return items to us, we can use the Sales Return Order for this. When we finish posting, we will get Return Receipt and Sales Credit Memo as result.

On other side, if we want to return items to our vendor, we can use the Purchase Return Order for this. As result of posting, we will get Return Shipment and Purchase Credit Memo.

I will not prepare flow chart about using posting groups, because we can use the same schemas as we already have in Item Sale Posting and Item Purchase Posting posts.

First, I will describe sales return process. When we post Return Receipt, we will get only these G/L Entries:

##1

But, when we finish posting and post Sales Credit Memo, we will get more G/L Entries:

##2

The similar situation is in purchase return process. When we post Return Shipment, we will get again only these G/L Entries:

##3

But, when we post Purchase Credit Memo for this item, we will get more G/L Entries:

##4

And, on the end when we run Adjust Cost – Item Entries batch job, we will get the following G/L Entries (variance between expected and actual cost):

##5

Posting Groups #8 – Revaluation Posting

In my last post, I have touched Revaluation process, but only for Standard cost changing. We can use Revaluation for other cases, as well.

If we change cost only for items on stock, it will be the same situation as on previous example. But, if we want to change cost for already sold or consumed stock, it will be with some differences. First, when we change the cost, we will get the same entries, as I already show in previous post. But, when we run Adjust Cost – Item Entries batch job, we will get the new G/L entries.

I made three scenarios:

In the first scenario, I have raw material with FIFO cost type. I consume this raw material on production order to produce finish goods, configured as also FIFO cost type. In this case, result of posting in G/L entry will be as following:

RevPOfifo

In the second scenario, everything was the same, but only finish goods was configured as Standard cost type. In this case, result of posting in G/L entry will be a bit different, as following example:

RevPOstd

And, in the third scenario, I change the cost on already sold items. In this scenario, G/L entries will be as following:

RevSO

Posting Groups #7 – Change Standard Cost

If you use Standard cost type for your Items and you want to change it, you need to use Standard Cost Worksheet. When you run Implement Standard Cost Changes command, all changes will be moved to Revaluation Journal.

When you post Revaluation Journal, you will get following G/L entries, if you have cost increasing:

std_rev_1

If you have cost decreasing, you will get the same Accounts, but the different values, as following:

std_rev_2

Posting Groups #6 – Manufacturing Posting (Std. Cost Type)

In my previous post, I describe all G/L posting results when we do with production, but using FIFO costing method. It this new example, I will describe results of posting when we have finish goods with Costing Method configured as Standard.

In this case, we use the same flow chart for posting groups, as I have described in my previous post.

In this example, when we post consumption and output, we will get following entries in G/L Ledger. In this case, we will get entries from cost of Item consumption and cost of Work Centers using, and value for output Item based on Standard Cost:

C&OJPstd

When we change status of Production Order to Finished, we will get additional G/L Entries. These are correction of standard cost on output Item and variance from standard to actual cost. You can find these entries in next table:

POsFstd

Posting Groups #5 – Manufacturing Posting

When we post manufacturing processes, we have Production Order as the base document. Then, we can use Production Journal (for posting in one step), or Consumption and Output Journals (for posting in two steps). Never mind, what you variant use, result in G/L Entries is the same.

In any case, we have some rules about using posting groups. Some posting groups are used from items, and other from work centers. In following chart, you can see how system uses posting groups in manufacturing posting.

Production Diagram

Difference in G/L Entries can be based on Costing Method you use for output items. It is not the same when you use Standard or some other costing methods. In this example, I will describe non-standard method (in this case I have used FIFO). I will describe using of standard method in next post.

In this example, when we post consumption and output, we will get following entries in G/L Ledger. These are only cost of Item consumption and cost of Work Centers using:

C&OJPfifo

When we change status of Production Order to Finished, we will get additional G/L Entries. These are cost of output Item, calculated from consumption Items and Work Centers usage. You can find these entries in next table:

POsFfifo

Posting Groups #1 – Item Purchase Posting

When we want to post item purchase, we can do it in one step (posting receipt and invoice in the same time) or in two steps (posting receipt in the first step, and then posting invoice). In my example, I have used second example. In my example, I also use line and invoice discounts, for better example.

But, in any case, we have some rules about posting groups. Some posting groups are used from document header, and other from document line. In following chart, you can see how system uses posting groups on documents.

Dijagram

When we finish posting of receipt, we will get only two entries in G/L Ledger. These are only entries about inventory:

PPR-i

When we post invoice related with posted receipt, we will get more entries in G/L Entries. You can find completely description of them in next table:

PPI-i1