Dynamics GP vs Dynamics 365 - Transaction Processing

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Companies are always asking us to compare Microsoft Dynamics 365 to Microsoft Dynamics GP.


While it is really difficult to provide a tit for tat comparison of features, as we dig more into Dynamics 365 we can definitely note some conceptual differences.


Here are some conceptual areas related to transaction entry where Dynamics GP and Dynamics 365 are different.




When we work with Dynamics GP users we teach them how to set up defaults in the system to simplify their lives.  In particular, use defaults anywhere where a GL account is required.  We teach them how those defaults flow down through the rest of the system and when/how to override the defaults if needed.


Dynamics 365 allows us to set defaults as well.  Instead of using "classes" to assign transaction type defaults (terms, currency, credit limit, etc.), D365 uses "templates".  Where the class in GP (or sometimes the master record itself) is also used to set default GL distributions, D365 uses "posting groups".


However, when it comes to some defaults - particularly the GL distribution - users are not able to override at master record creation or transaction entry.  Sort of.


When entering a Sales/Purchase Order based document (Quote, Order, Invoice, Credit Memo), the system builds the GL distribution based on the combination of:


  • General Business Posting Group from the Customer/Vendor combined with the Product Posting Group from the Inventory Item for Revenue and COGS/Expense accounts
  • Customer/Vendor Posting group for AR/AP accounts (as well as terms discounts and such)
  • Inventory Posting Group combined with location for the Inventory accounts
    • This doesn't apply for "Service" items


When I assign a Posting Group to its relevant master record, there is no opportunity to override the GL Account for that master record only.  When I use that master record on a transaction, there is again no opportunity to change the distribution account for that transaction only.


For example, if I need to buy both telephone services and internet services from Rogers and I choose to use a Purchase Invoice to record it then I need to:


  • Create 2 General Product Posting Groups.  One for Internet and one for telephone expenses.
  • Combine those posting groups with the General Business Posting Group assigned to Rogers to get the appropriate expense accounts set up.
  • Create an Inventory Item (Service type so we don't have to stock it) for each


Did you notice the italicized words above?  There is an option in Dynamics 365 that allows users to over-ride the GL Account at transaction entry, but it is also the focus of our next major conceptual difference.




In Dynamics GP, there is a very clear point of demarcation between any subledger transaction and its associated GL Entry.  It's even possible to configure the system so that the GL Entry doesn't automatically post so that the accounting team can review and modify it as required.  (A practice not even a little bit endorsed by this consultant, BTW.)


In Dynamics 365, the line can be a little fuzzier.


In the previous section, we talked about traditional Sales/Purchase Order based documents.  In Dynamics GP those would be the SOP and POP modules.  Dynamics GP would have similar setup requirements if we chose to use a Purchase Receipt to purchase our telephone and internet services, we'd just have the ability to override the distribution if required.  But nobody does that.


In GP, we have the concept of a Receivables Transaction or a Payables Transaction to record those entries where we don't need itemized lines.  The Rogers invoice, for example.  We simply select ROG001 as the vendor - which sets the default payables and expense accounts - and then override the distribution to reflect the correct amounts for telephone and internet.


This type of transaction in D365 is through "Journals", which basically look like General Ledger entries.  Continuing our Rogers example, we would go to the "Purchases Journal" and record an entry where the invoice amount is on a line credited to the Vendor (Which sets the AP Account), and the telephone and internet are on lines debited to GL Accounts.  The taxes still get calculated automatically based on the tax liability of the vendor and the tax group of the GL Accounts.

I've heard a lot of my fellow GP consultants make fun of this concept - especially in reference to the "Payments Journal" - but I really don't see more than a GUI design difference here to be honest.


Each of these differences is just something to consider.  It does not mean one product is better than the other, they are just different.  And they fit different needs.


If you are evaluating a new accounting system, and want to determine if Dynamics GP or Dynamics 365 is the right fit for you, contact us at 844-BRIWARE or rod@briwaresolutions.com.


By Briware Solutions, www.briwaresolutions.com

Follow me on Twitter: @Briware_Rod

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