22 Jan Microsoft Dynamics NAV 2018 Functionality

Add new value to your business and take your company to a higher level with and ERP system Microsoft Dynamics NAV 2018. Equip your workforce with integrated, innovative and smart business solutions that help them grow and develop, engage in the digital transformation and realize your company’s full market potential.

The article discusses the new features and functionality that are available in Microsoft Dynamics NAV 2018 and the Polish Functionality module, as well as the development, availability, licensing models and potential migration paths to Dynamics NAV 2018 version. The document provides an overview of available platforms, such as Microsoft Azure and DataCenter and outlines the opportunities for integration with other Microsoft solutions: Office 365, PowerBI, Dynamics 365, Microsoft Flow, Microsoft Azure and Machine Learning. Obtain direct insight into the operation of the system by watching the online video material.

Microsoft Dynamics NAV 2018

In the second half of 2018, Microsoft rebranded Microsoft Dynamics NAV to Microsoft Dynamics 365 Business Central. Microsoft Dynamics NAV 2018 is the most recent version of this ERP Microsoft product and the last one available under the name of Dynamics NAV. Each new feature related to Dynamics NAV will be released with the new brand name of Microsoft Dynamics 365 Business Central.

The world premiere of Dynamics NAV 2018 was held in December 2017 while the Polish Functionality was officially introduced in September 2018. It is the most complete and fully tested Polish Functionality version released so far.

What’s new – Plus Surface

Starting from Microsoft Dynamics NAV 2013, through its subsequent versions, Microsoft Corporation has been working on the W1 international version for the EMEA region. IT.integro is responsible for adjusting the system to the local legal requirements and preparing interface translations.

The latest, Polish Dynamics NAV 2018 version has been redesigned to include features that were previously available only in the Polish Functionality module. Microsoft Dynamics NAV 2018 became the best equipped and adapted version of Dynamics NAV so far.

New features in Microsoft Dynamics NAV 2018 – Polish Functionality

Polish Functionality is an add-on module developed by IT.integro and certified by Microsoft that extends the standard Microsoft Dynamics NAV 2017 (W1) version. The solution contains, in particular, necessary adjustments to the Polish legal regulations and the Polish language layer and it is successively updated and developed. Since its Microsoft Dynamics NAV 2013 premiere, the solution has been enhanced with a number of powerful and innovative features. At the moment, it is one of the most comprehensive functional packages on the market.

Split Payment

On 1st July 2018, the law related to the so-called split payment came into force. The new regulation applies only to transactions made between business entities. It includes the possibility to pay invoices in two parts – to the general account and the VAT account.

IT.integro designed a solution based on the Electronic Banking module that enables the user to prepare payments (both – statements to import and export) in compliance with new legal requirements.

E-Banking module facilitates communication between an ERP system and the vast majority of Polish banks and allows for the use of templates, also the ones that are marked as split payment.  Data in the vendors payment worksheets can be completed automatically (suggested by the program based on defined criteria) or edited manually.

All data that is mandatory in the transfer description (e.g. contractor’s VAT reg. no. or invoice no.) is automatically retrieved from card entries.

Import of statements by using the split payment mechanism can be performed in two ways:

Primary account statement. All transactions between the VAT account and the primary account are posted to the new account in the general ledger and retrieved from the setup.

Importing bank statements from the primary and VAT accounts. Transactions are posted by using the G/L accounts for cash in transit and are retrieved from the setup.

Standard Audit File (SAFT/JPK)

Microsoft Dynamics NAV includes a mechanism that supports the generation of SAFT/JPK files.

Unlike previous versions, the current functionality is built on external objects (additional objects) without any modifications made in the standard Dynamics NAV objects. It is a significant change and improvement when it comes to Dynamics NAV and SAFT file updates in case of publishing new legal requirements by the Ministry of Finance. What’s more, the structure and configuration processes have been simplified and can be carried out in four locations:

Government Reporting Setup window – supplementary data concerning the taxpayer that is missing in the company information window (e.g. tax authority no.).

SAF-T Setup window – basic and general parameters used to generate all file types (e.g. file name formula, off-balance account filter).

SAF-T Areas window – used to define more detailed setup, e.g. the current version of SAF-T file, default save paths or relations to posting groups for JPK_VAT (SAFT_VAT) and JPK_FA (SAFT_INV) files.

Area Elements window – used to define additional options that are activated while generating a specified SAF-T file type.

National Official Business Register (BIR) online database

The Polish Functionality module has been extended to include a mechanism allowing for the direct connection between Microsoft Dynamics NAV 2018 and the National Official Business Register (BIR) as well as searching business entities based on their provided VAT registration number. The new tool enables the user to verify and enter data of customers and vendors into the system. It is also possible to create and update customer, vendor and contact data based on data retrieved from the Polish National Business Online Register.

The only requirement to be able to use the tool is an active internet connection.

VAT Taxpayer Status

In April 2018, The Ministry of Finance released the CheckVATReg.No. service. Based on the VAT registration number, it is possible to verify whether the entity is registered as a TAX taxpayer on the day preceding the query submission. The Ministry of Finance is planning to launch the CheckVATReg.No.At.Date service.

Within Polish Functionality, the standard Dynamics NAV 2018 functionality has been enhanced with the Check VAT Status feature that can be used in purchase and sales transactions. Verification of the VAT status can be performed in the contact/customer/vendor card or in the purchase and sales documents, before or after posting.

Queries for a selected taxpayer can be used multiple times. Each query and each response are marked with a special certificate that will be stored (with the enquiry submission date and the response) in the system database.

Due to the limited infrastructure capacity of the Ministry of Finance, it is not possible to verify multiple statuses at the same time. Limitations are related to the number of enquiries (up to 10 queries can be sent per second), one IP address and one VAT registration number that the enquiry refers to. As a consequence, it is not possible to verify all taxpayers during monthly generation of JPK_VAT file.

Skipping transactions in VAT register

Costs and purchases are usually registered in Dynamics NAV by using purchase invoices. However, as one type of costs is not subject to VAT, it should not be included in the VAT settlement for a given time period.

Polish Functionality has been extended with a special feature to skip selected VAT entries while generating VAT register and JPK_VAT file. To exclude selected VAT entries from VAT settlement, select the “Skip in VAT Register” field.

The same procedure can be performed in the general journal lines. As a result of posting a document line with a checkmark in the Ship in VAT Register field, a VAT entry with a checkmark in the same field will be created. After posting the document, it is still possible to manage the skipping in VAT register function with the options added in the VAT Application Worksheet window.  They may be used to change the selection in the Skip in VAT Register field in selected VAT entries. To optimize user’s work, it is possible to insert a checkmark in the Skip in VAT Register field by default for selected combinations of VAT posting groups.

Fixed assets classification

The Fixed Asset Classification 2010 was used in the Polish Functionality module for a long time. The reporting of fixed assets based on their FAC numbers was simple and intuitive.

For balancing and taxation purposes, a new classification of fixed assets came into force on 1st January 2018 (FAC 2016). Fixed Assets Classification 2016 introduces changes in the numbering and names of groups, subgroups and types of fixed assets. Changes also concern fixed assets that were included in accounting records before 2018.

Within Polish Functionality, dedicated tools to generate tables with Fixed Asset Classification 2010 and Fixed Asset Classification 2016 were added. Now users can assign two numbers (one in accordance with FAC 2010 and one in accordance with FAC 2016) to each fixed asset and generate reports based on both classifications.

 

Business Activity Type

The CIT law 2018 introduces the requirement to split the revenues into operating and capital income, banning the compensation of losses between these types of activities.

In the standard Microsoft Dynamics NAV 2018 version, exchange rate accounts are assigned to the currency. Therefore, it is not possible to classify exchange rate differences into separate General Ledger accounts based on various business types.

Within the Polish Functionality module, exchange rate account sets can be assigned to the newly added business activity types. This new setup is used to for automatic posting of exchange rate differences.

The functionality is based on the dimension selected in the general ledger setup window. Exchange rate accounts are assigned to dimension values that correspond to the business activity types.

Posting of currency transactions with a selected dimension value specifying the activity type results in posting of exchange rate differences to the relevant general ledger accounts.

Development plans for Polish Functionality

A decision was made not to move selected features of the Polish Functionality module to the most recent system version. Their further development will not be continued.

Financial e-statements – file structures

According to the amended Accounting Act, as of October 2018, business entities are obliged to prepare their financial statements in electronic form only. More than 40 file structures were published that were broken down into types of business activity and required types of reports.

The file contains header data in PLN – balance sheet, profit and loss statement in a comparative and spreadsheet variant, cashflow account statements from the operating and investment activities, as well as a statement of changes in equity. As the structure of Microsoft Dynamics NAV data does not include all information that is required in the JPK_SF file, IT.integro made a decision not to design a solution that would enable the user to generate a complete file. It is recommended that third-party solutions to prepare and export JPK_SF files are used.

Balance sheet and profit & loss statement

A decision was made to use the standard tool to set up balance sheets and profit and loss statements that will be based on categories and subcategories of general ledger accounts and account schedules.

Due to the lack of relevant mechanisms in the standard functionality, dedicated tools for generating balance sheets and profit and loss statements were implemented with the first version of the Polish Functionality module. The international Dynamics NAV version could not meet this requirement.

With the modifications that were recently made in the standard version by Microsoft, it is now possible to prepare this type of statements. As the maintenance and further development of the solution are no longer justified, a decision was made to end support for this part of the functionality, starting from Dynamics NAV 2018 version.

Account schedule extensions

As part of the Polish Functionality module, three extensions for the account schedule were used: shared account schedule, saving account schedule results and the source of the amount calculated in the line with the Formula type. However, our experience showed that interest in these extensions was very limited. Thus, our company decided to end support services for the NAV 2018 and later system versions.

Multiple interest rates

The multiple interest rates functionality was used to calculate statutory interest on late payments. While designing the first version of the Polish Functionality module, IT.integro added the possibility of defining various statutory interest rates applicable in different periods so that interest on late payments could be calculated in a correct way.

As Microsoft decided to add this feature to the international standard Microsoft Dynamics NAV version, it will no longer be part of the Polish Functionality module.

Licensing models and migration paths

Dynamics NAV is available under two licensing models. Under the perpetual license, the user is required to pay a one-time initial fee for using the system and annual fees for ongoing support and the license. He is able to work with the system over any period of time.

Under the subscription model,  the user has the right to use the software for a specific amount of time and the fee is charged depending on the number of users. It is possible to define only the number of users for whom the access in the Starter or Extended Pack version has been purchased. It is not possible to mix licenses within these two packages.

Dynamics NAV 2018 licensing – Perpetual

• Starter Pack Functionality;
• Extended Pack Functionality;
• Access licenses:
  • Full User – concurrent user
  • Limited User – concurrent user
    (any number of defined users);
• Application objects;
• Add-on modules of external vendors;
• One-time license fee;
• Annual Enhancement Plan fees.

Dynamics NAV 2018 licensing – Subscription

• Access licenses:
  • Standard Full User – named user,
  • Extended Full User – named user,
  • Limited User – named user
    (the number of defined users is the same as the number of access licenses with the Full type; it is not possible to mix Standard and Extended users within one license);
• No licensing for functional packages;
• Application objects;
• Add-on modules of external vendors;
• Monthly fee;
• Enhancement Plan fee included in the subscription price.

Dynamics NAV 2018 licensing – availability

Perpetual

• For new customers: until 31 March, 2019;
• For NAV 2018 customers: no date specified;
• For NAV 2013-2017 customer (license upgrade): no date specified;
• For NAV 2009 and higher versions (license migration): until 31 March, 2019.

Subscription

• No date specified (from 1 October 2019, prices for Dynamics 365 Business Central).

Migration paths

Migration to Dynamics NAV 2018 Perpetual

• Incompatibility of the Perpetual model with previous licensing models: MBL i BRL;
• A prerequisite – an active Enhancement Plan;
• Functionality – not less than the one that was previously used;
• Number of concurrent users – unchanged;
• No Polish localization by Microsoft – NAV PL version developed by IT.integro;
• Availability of ISV modules – dependent on vendors;
• The value of the previous license is assigned to the new NAV 2018 license;
• Enhancement Plan with the new license;
• Enhancement Plan fee – unchanged;
• Option to downgrade to NAV 2017 or NAV 2016 version;
• Ability to use the previous and the new license at the same time during the implementation period.

Migration to Dynamics 365 Business Central

Watch the webinar to find out more about the migration to the Dynamics 365 Business Central version.

Microsoft Dynamics NAV Platforms

One of the core elements of an ERP implementation is IT infrastructure which has a direct effect on the system efficiency. From the licensing and technical perspectives, Dynamics NAV environment can be designed in three ways.

On-premises environment

In the first scenario, the company is responsible for the purchase and configuration of their own hardware and has full control over the entire NAV environment. However, its main disadvantages are high initial costs and poor flexibility of the investment, assuming that by investing in the hardware, we expect it to be sufficient in the years to come. The effect of that decision is having redundant hardware compared to the actual needs.

Business owners must be aware that they also need to provide proper location and adequate room for the infrastructure, as well as maintenance and security services.

Data Center

One possible way of implementing Microsoft Dynamics NAV 2018 involves the use of data center delivered by the external provider of IT infrastructure services. Selecting this option means that the responsibility for maintaining the hardware infrastructure and basic configuration is passed to the external service provider. However, less responsibility for the infrastructure means lower level of control for the Dynamics NAV environment. Data centers provide greater flexibility as users pay for the contracted software and hardware resources only. The majority of service providers offer the opportunity to expand the existing IT resources.

However, choosing the right one may seem like a challenging task. An experienced and reliable vendor will definitely ensure great scalability of resources and high system performance which are of critical importance, from a safety point of view.

Microsoft Azure

In the third scenario, Microsoft Dynamics NAV environment is built on the Microsoft Azure cloud-based platform. One of the options assumes that the only component we hold responsibility for is data and Microsoft Dynamics NAV application layer. The remaining elements can be purchased as services and charged based on the actual consumption. It is possible to run a virtual machine with the following components installed as a service: an operating system, Microsoft Dynamics NAV and Active Directory. Users have less control over the hardware. Choosing Microsoft Azure technology means they don’t have to deal with security concerns.

Microsoft team is obliged to provide all released updates as well as ensure an uninterrupted operation and access to IT resources (as defined by the SLA).

The price of the service includes all types of protection and it is, definitely, a significantly higher control level than we are able to offer in our company’s server room.

The Azure cloud-based environment is highly scalable and can be adjusted to meet the current business needs. For example, it can be switched off automatically (at night or during weekends) reducing resource consumption costs.

IT.integro and Microsoft Azure

With long-standing experience and highly specialized expertise of consultants, IT.integro offers the preparation of the Microsoft Azure environment, its further development and technical support services. Their extensive portfolio of Dynamics NAV and Microsoft Azure projects is the best guarantee of outstanding quality of work and high level of customer satisfaction. It is worth mentioning that none of the companies that decided to implement the new technology would consider returning to the previously used solutions.

A decision to implement cloud-based Microsoft solution should be considered, in the first place, by companies using outdated technology. but also the ones that strongly believe that their business data should not be stored outside the company, especially in the public cloud. These companies should realize that some of their data (SAF-T files) is already stored in the cloud. The Ministry of Finances sends all SAF-T files to the Azure cloud-based platform.

One Microsoft Strategy and New Features in Microsoft Dynamics NAV 2018

Microsoft intends to consistently implement One Microsoft strategy with the objective to ensure the greatest possible integration of business solutions. With every new Microsoft Dynamics NAV version, integration capabilities of solutions and technologies delivered by Microsoft emerging on the market are more and more advanced.

Office 365

• SharePoint – sharing MS Dynamics NAV pages on the portal;
• Active Directory – single sign-on to Dynamics NAV and Office 365;
• OneNote – notes attached to Microsoft Dynamics NAV;
• Outlook – exchange of contacts and tasks between Outlook and Dynamics NAV;
• Word – editing report templates (printouts);
• Excel – importing data directly into Dynamics NAV tables;
• Outlook – receiving email directly from the Dynamics NAV main window;
• Outlook – working with Dynamics NAV by using Outlook client.

Microsoft Dynamics 365 Customer Engagement (CRM)

• All Dynamics 365 data (sales opportunities, quotes, cases) can be previewed from Dynamics NAV;
• Dynamics NAV customer statistics available in Dynamics 365 Customer Engagement (CRM);
• Simple navigation between related objects in Dynamics NAV Dynamics 365 Customer Engagement (CRM);
• Synchronization of data between Dynamics NAV and Dynamics 365.

Power BI

• Embedding Power BI reports in Dynamics NAV;
• Ready-made reports and dashboards for Dynamics NAV;
• Single sign-on to Dynamics NAV and Power BI;
• Automatic refresh of reports – data updates with Dynamics NAV;
• Ability to view reports by users without Dynamics NAV access.

Microsoft Flow

• Single sign-on to Dynamics NAV and Microsoft Flow;
• Creating workflows between Dynamics NAV and one of 200 systems/services (not only by Microsoft);
• Simple creation of workflows with no programming needed;
• Ready-to-use workflow samples and templates.

Microsoft Azure

• Ability to control and regulate system efficiency in specified time periods (day, month, year) = cost reduction;
• High availability environment (even in the most remote parts of the world by using an appropriate data center) = improved work efficiency;
• Flexibility and scalability of infrastructure resources = greater potential for system development and improvements, as well as costs reductions in periods of decreased activity;
• The highest possible security level = minimal risk of data leakage and system downtimes.

Machine learning

• Forecasting stock levels and warehouse movements = production and purchase optimization;
• Daily work supported by state-of-the-art technology = enhanced work performance;
• Cashflow forecasting = monitoring the financial liquidity of the company;
• Ability to take preventive actions = eliminating causes of potential problems instead of fixing them.

Presentation of the system – new features in Microsoft Dynamics NAV 2018

Watch the online video and learn more about Microsoft Dynamics NAV 2018 processes. Explore the new functionalities developed by Microsoft and features designed by IT.integro that come with the Polish Functionality module.

• Creating item cards on the fly;
• Creating purchase orders from sales orders;
• Suggesting accounts for posting setup;
• Posting multiple documents;
• New ledger – Employee type in the journal;
• PowerApps – a service for building custom business applications and extensions.