Where Microsoft Dynamics GP Shines
With over 60 of the Twin Cities’ best-known nonprofit organizations as our clients across three middle-market ERP products, Boyer & Associates has earned the right to present ourselves as experts to those in the nonprofit community who are searching for accounting software. Come to our Nonprofit Accounting Software Comparison Event on March 24 to see which product will work best for your organization. Existing users are welcome to attend as well. The event is free, but you must register.
This is part one of a three-part series comparing the three Microsoft Dynamics products as a preview to our Nonprofit Accounting Software Comparison event coming up March 24.
Over 2,000 organizations in the Twin Cities use Dynamics GP (formerly Great Plains). At least 400 of them are nonprofits. Our three-hour event March 24 will showcase why so many nonprofits select this product, but for now here’s a sneak peek.
One of the main reasons nonprofits select Dynamics GP is that while Dynamics GP is a horizontal product, built to match the needs of any middle market organization, the nonprofit space is one of the few areas where Microsoft has inserted and maintained nice vertical functionality.
For example, Dynamics GP has built-in encumbrance management. When you create purchase orders using the Purchase Order Entry screen, encumbrances automatically are created. They are authorized automatically if the purchase order line items fit the budget requirements and can be authorized manually if they’re outside the budget requirements. To meet the budget requirements, the result of the following formula must be positive: Budget Amount – Actual Amount – Encumbrance Amount.
Purchases are associated with a budget based on the posting account on the purchase order line item, and the fiscal period that the required date on the purchase order falls within. For example, if an annual budget is set at $10,000 and a purchase order line item is created for $2,000, the available budget amount would be reduced to $8,000. A new purchase order line item for $8,500 would exceed the budget and require authorization. (This assumes that no budget tolerances have been set up.)
Control accounts are another key area where Dynamics GP shines for nonprofits. Pretend you have multiple programs or funds and you want to centralize Accounts Payable for transactional efficiency but you need to show separate Accounts Payable per program or fund on your financial statements. Accounts Payable is managed centrally and then at month end, a routine is run that separates the open Accounts Payable by program or fund segment.
A reversing journal entry is automatically created to remove items from the Accounts Payable account and put them in the appropriate program or fund Accounts Payable accounts (the control accounts). A reversing journal entry causes the amounts to clear and return to Accounts Payable for central processing at month end.
Tomorrow we will discuss how Dynamics SL uniquely handles keeping balance sheets in balance by fund or program using the built-in Multi-Company capabilities.