Inventory accounting with Dynamics 365
Dynamics 365 Finance secures inventory valuation by automating journal entries, adjustments, and movement tracking. You gain precise and immediate visibility, essential to control costs and support industrial and logistics decisions.

Inventory accounting challenges
Inventory accounting is often slowed by fragmented data, frequent discrepancies, and manual adjustments. Without a centralized system, it becomes difficult to ensure reliable valuation, prevent errors, and optimize operating costs.
- Manual or unreliable inventory valuation
- Discrepancies between physical stock and accounting
- Limited visibility into movements and actual costs
- Complex and delayed accounting adjustments
- Silos between Supply Chain, Production, and Finance
Inventory accounting with Dynamics 365 Finance
Dynamics 365 Finance automates inventory accounting based on actual movements from Supply Chain and Production. Accounting entries are generated automatically for receipts, consumption, transfers, issues, inventory counts, and adjustments. The solution ensures accurate valuation according to the selected method such as FIFO, LIFO, standard cost, or weighted average, while maintaining full traceability. With native integration to Dynamics 365 Supply Chain Management, financial data accurately reflects actual quantities and costs on the ground. You benefit from instant visibility into variances, fluctuations, and financial impacts to support faster and more reliable decisions.
Our FiveForty expertise
FiveForty helps you structure valuation rules, secure data, and streamline collaboration between Finance, Supply Chain, and Production. We configure automatic posting accounts, set up cost methods, secure inventory movements, and implement controls to reduce discrepancies. Our consultants work closely with your teams to simplify processes, accelerate close cycles, and strengthen consistency between operations and accounting entries. With FiveForty, you benefit from a clear, sustainable implementation fully aligned with your operational reality.
Key inventory accounting features in Dynamics 365
- Automatic generation of inventory entries
- Reliable valuation methods such as FIFO, LIFO, standard cost, and weighted average
- Full traceability of inventory movements
- Reduction of accounting and operational discrepancies
- Native integration with Supply Chain and Production
- Automated inventory counts and adjustments
erp & chill
Why Choose FiveForty?
From integration to maintenance.
Clear governance, transparent reporting, shared decisions.
Well controlled processes and a team that truly listens.
Human, responsive support always delivered with a smile.
A QUESTION? An answer.
Frequent asked questions
An ERP such as Dynamics 365 Finance automates valuation, generates inventory entries in real time, and integrates Supply Chain and Production. A traditional system processes data manually and does not reflect actual movements.
Yes. The inventory accounting module supports both SMEs and mid sized companies. It structures cost methods, secures inventory counts, and reduces discrepancies regardless of transaction volume.
The timeline depends on logistics complexity, level of automation, valuation methods, and integrations with WMS or Supply Chain systems. In most cases, implementation ranges from a few weeks to several months.
Yes. Power BI integrates natively with Dynamics 365 to analyze variances, movements, and valuations. Dashboards update automatically in real time.