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Enhancing Transaction Tracking with Financial Tags in Dynamics 365 Finance
Introduction
In Microsoft Dynamics 365 Finance, managing and tracking financial data with precision is crucial for effective decision-making. One powerful feature that enhances this capability is the use of Financial Tags. Financial Tags offer a flexible way to categorize and analyze transaction data beyond traditional methods. By allowing organizations to create up to 20 user-defined fields, Financial Tags eliminate the reliance on document numbers and financial dimensions. This blog will guide you through the process of enabling and setting up Financial Tags, detailing their use in various transactions and their role in internal reporting.
The financial tag is a feature in Microsoft Dynamics 365 Finance. That allows an organization to create and enter up to 20 user-defined fields on transactions.
Financial tags eliminate the need to use document numbers, descriptions, or financial dimensions.
However, financial tags have limited structure, no validation is done, and very limited defaulting is done.
However, tag values aren’t stored in any subledger tables, such as the Customer transactions or Vendor transactions table.
First, we need to Enable ‘Financial tags’ feature in Feature management, so this feature will be available in General Ledger Module.
Once we enable the financial tags feature then we get financial tags in the general ledger module as shown below.
Create a financial tag
- Go to General ledger > Chart of accounts > Financial tags > Financial tags.
- Select New, Enter tag name. The name must start with a letter or underscore, and it can contain only letters, numbers, and underscores. No special characters, including spaces, are permitted.
- In the Value typefield, select Text, List, or Custom list.
- Text – If you select Text in the Value typefield,
- List – If you select Listin the Value type field, select the value source in the Use values from the field. The field contains a list of entities where the tag values can be selected from during transaction entry.
- Custom list – If you select Custom listin the Value type field, select Tag values to create a custom list of tag values that will be available for selection during transaction entry.
- Select Activate or deactivateto activate the tag.
You can activate the financial tags which will be used and click on OK
Here you can find the active financial tags
Now, under GL Parameters – user need to define a delimiter for financial tags.
Process
After financial tag’s are activated, tags will be available for entry on each transaction that supports the feature.
Once the financial tag has been added to the account side at the line level. Then automatically the offset financial tags get populated.
These are the posted voucher transactions with the attached financial tags.
Correct tag values after posting
Although financial tags are available for reporting, they aren’t part of the ledger account and have no impact on financial statements. Because tags are used only for internal analysis, edits to the tag values are permitted after transactions are posted.
- Go to Voucher transactions.
- Select the lines in Voucher transactions, and then select Edit internal voucher data.
- The lines that you selected in Voucher transactions, including the current financial tags and the new financial tags. The current tag values are entered as default values for the new tags.
- You can use the Bulk update selected recordsbutton to do multiple lines at a time.
- Reason for edit:
- Click OK.
The following journals and transactions are support for financial tags:
- General journal
- Global General Journal
- Allocation journal
- Fixed Asset Journal
- All asset leasing journals
- Periodic journal
- Reporting currency adjustment journal
- Customer Payment Journal
- Vendor Payment Journal
- Invoice journal (vendor)
- Global invoice journal (vendor)
- Invoice register
- Sales order documents (Sales order, packing slip and customer invoice)
NOTE: –To make support for tags available in sales order documents, enable the Enable financial tags for sales order invoicing feature in Feature management
So, this is the whole process and setup for financial tags.
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Summary
In summary, Financial Tags in Microsoft Dynamics 365 Finance provide a versatile tool for internal data analysis and categorization. After enabling the feature in Feature Management and setting up tags in the General Ledger module, organizations can effectively tag transactions for enhanced tracking and reporting. Although Financial Tags do not impact financial statements and are not stored in subledger tables, they offer valuable insights for internal analysis. By following the outlined setup process, including defining tag values and handling post-transaction edits, users can fully leverage Financial Tags to streamline financial management and reporting.
We hope this blog has offered valuable insights and practical advice for your professional journey. If you found it beneficial, please consider sharing it with your network. We welcome your feedback and thoughts, so don’t hesitate to contact us directly. Thank you for reading, and we look forward to engaging with you further!
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