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International organizations are under increasing pressure from authorities to comply with local and global accounting standards. The valuation of inventory plays a significant role in ensuring compliance. The Global Inventory Accounting Add-in for Microsoft Dynamics 365 Supply Chain Management provides a comprehensive solution that enables organizations (especially international organizations) to use multiple costing ledgers to do inventory accounting. Therefore, those organizations can comply with multiple accounting standards and internal management accounting at the same time.

Global Inventory Accounting lets you account inventory in multiple representations by applying the appropriate valuation method (standard cost, average, or specific identification) and the selected accounting currency per instance. Global Inventory Accounting enables organizations to report inventory statements and subledger accounting values (also known as the inventory balance and the cost of goods sold) in what is often referred to as dual valuation and/or dual currency.

Inventory accounting is done in individual ledgers. Several Global Inventory Accounting ledgers can be created for each legal entity in an organization, as required. Therefore, multiple inventory representations can be obtained. All documents that are posted in a legal entity (such as purchase orders, sales orders, and transfer orders) will be accounted in all the costing ledgers that are associated with that legal entity.

A Global Inventory Accounting ledger is defined by a combination of the following elements:

  • Calendar
  • Currency
  • Exchange rate table
  • Convention

A convention is a collection of inventory accounting policies that can be associated with one or more ledgers. Conventions let you share a common set of policies within your organization.

Availability

Global Inventory Accounting is currently available in the following Azure geographic regions:

  • Australia
  • Canada
  • China
  • Europe
  • France
  • Norway
  • South Africa
  • Switzerland
  • UAE
  • United Kingdom
  • United States

If you try to install the add-in from another geographic region, Microsoft Dynamics Lifecycle Services (LCS) will show a message that your geographic region isn't supported. Global Inventory Accounting doesn't support on-premises deployments of Supply Chain Management.

If you have any issues enabling Global Inventory Accounting in one of the supported geographic regions listed here, please send an email message with your environment ID to Global Inventory Accounting team for validation.

Licensing

Global Inventory Accounting is licensed together with the standard cost management features available for Supply Chain Management. You don't have to purchase an additional license to use Global Inventory Accounting.