A Bill of Materials (BOM) is the core functionality for defining the components that make up a parent item. It is the standard, maintainable way to model this hierarchical relationship in Supply Chain Management, enabling accurate production, costing, and inventory tracking for assembled goods.

The accounting currency is the primary currency used for maintaining the general ledger. Since consolidation reports must be in USD, it must be set as the accounting currency. A secondary reporting currency (like CAD in this case) can be configured to allow reporting in another currency without affecting the core ledger.

The party model is a core architectural concept in D365 F&O. It separates the entity (Party) from its roles (Customer, Vendor, Contact, etc.). A single legal party (e.g., Contoso Corp) can have one record but act as a ‘Customer’ for sales orders and have multiple associated ‘Addresses’ (roles) for shipping, billing, etc., resolving the semantic confusion between teams.

Workflows are the mechanism for automating business process approvals. A purchase requisition workflow can be configured with conditions (like `RequisitionTotal > 10000`) to route requests to a specific approver (the director), ensuring the policy is enforced systematically before the order is created.

Tracking dimensions (like Batch and Serial) are used to identify specific groups or units of an item. To track by batch and expiry date, ‘Batch number’ must be active in the product’s tracking dimension group. Storage dimensions (Site, Warehouse) are also typically needed to manage physical inventory location. The ‘Coverage plan by dimension’ is for planning, not mandatory for basic tracking.

Vendor invoice automation is a dedicated feature that automates the invoice processing lifecycle. It includes a ‘Matching validation’ step that can automatically perform two or three-way matching against POs and product receipts. Invoices that pass matching and other validations can be automatically posted or sent for approval, significantly reducing manual effort.

The revenue recognition module in D365 F&O is designed for this purpose. A product of type ‘Service’ can be linked to a revenue recognition schedule (e.g., 12 equal monthly periods). When the subscription order is invoiced, revenue is deferred and then automatically recognized per the schedule, ensuring compliance with accounting standards like ASC 606.

The ‘Order picking’ work order type creates one work ID per sales order. By setting the ‘Line details’ break to ‘None’ in the work template, you prevent the system from creating separate work lines/picks based on location or other criteria. This results in all items for that order being presented together on the picker’s device, fulfilling the manager’s requirement.

The inventory adjustment journal is used specifically for changing inventory values (quantity or price) in the financial records. Checking the ‘Financial inventory’ option allows for a purely financial adjustment—changing the cost or value without reflecting a physical movement of goods, which is perfect for revaluations due to market changes.

A Bill of Materials (BOM) is the core functionality for defining the components that make up a parent item. It is the standard, maintainable way to model this hierarchical relationship in Supply Chain Management, enabling accurate production, costing, and inventory tracking for assembled goods.0