Season 2, Episode 4 : How can systems better coordinate stock arrivals with accounts payable to prevent issues such as paying for undelivered or incorrect stock?

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Are you, as an accountant, noticing a lack of communication in your clients' current accounting systems regarding stock arrivals? This deficiency can result in issues such as paying for undelivered or incorrect stock, so the importance of seamless connectivity between teams responsible for stock collection and payment cannot be overstated. Without this connection, the accounts payable team might find themselves paying for items that have not yet arrived or have been delivered incorrectly. So, enter Business Central – the solution to this communication gap. I'm Laura at Creative, and this is Dynamics Unwrapped…

In organisations where stock receipt and payment are handled by separate teams, maintaining the separation of duties is crucial. However, effective communication between these teams is equally vital. Business Central addresses this challenge by allowing the separation of duties while fostering seamless connectivity between departments through its required receive functionality. But what exactly is this?

Well, suppose a business prefers that the warehousing team or those receiving the stock don't have direct access to purchase order documents. In such cases, Business Central can generate a warehouse receipt for the warehousing team to interact with. This receipt provides detailed information about the expected stock and its quantity. So, if the received goods match the receipt, the team can post the receipt, which updates the purchase order and informs the purchasing team that the correct stock has been delivered.

This functionality becomes particularly crucial when verifying if the correct quantity of stock has been delivered. For example, if the receipt indicates 200 items but the warehousing team only receives 180, Business Central prevents the purchasing team from paying for the missing 20. Instead, they can pay for what they've received and promptly address the discrepancy with the vendor. So, Business Central enables a separation of duties between the warehouse and purchasing teams while ensuring effective communication, preventing payment for undelivered stock and facilitating the tracking of missing items.

This seemingly straightforward functionality is pivotal, especially in contrast to systems like Xero that lack this capability, because it can potentially lead businesses to pay for stock they don't actually possess, which result in unnecessary financial losses.

As we approach the final episode of this series, we’re going to go through arguably the most exciting topic yet. And yes, its AI, specifically Co-pilot, so get ready for the next video…

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