Legal Entity and Warehouse Architecture Configuration for Currency and Warehouse Management in Microsoft Dynamics 365 Supply Chain Management
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A company is planning to implement Dynamics 365 Supply Chain Management with three locations.
Two locations must use United States currency (USD) as the default currency.
The third location must use Canadian currency (CAD)
One US facility and the Canadian facility must use advanced warehouse functionality.
The other US facility must use basic warehousing.
You need to configure the legal entity, site, and warehouse architecture to meet the requirements.
Solution: Create two legal entities, one for advanced warehouse and one for basic warehouse.
Does the solution meet the goal?
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A. B.B.
You cannot have two default currencies in the same legal entity.
The proposed solution to create two legal entities to meet the requirement of having two facilities with advanced warehouse functionality and one facility with basic warehousing will partially meet the goal. However, it may not be the most optimal solution and might lead to some issues.
Creating separate legal entities for each location may increase the complexity of the implementation and might create difficulties in managing the system. Each legal entity would require its own set of master data, such as customers, vendors, and items, which may lead to data redundancy and inconsistencies. Additionally, it could create challenges in managing inventory across locations, as it would require additional steps to move inventory between legal entities.
An alternative solution could be to create one legal entity and multiple sites within it. Each site can have a different currency and warehouse configuration. This approach would simplify the management of the system and allow for better inventory management across sites. Also, the multi-site configuration would enable the company to have a consolidated view of its operations, which is not possible with separate legal entities.
To configure the legal entity and site architecture, follow the steps below:
- Create a legal entity for the company.
- Create three sites within the legal entity: two for US facilities with USD currency and one for the Canadian facility with CAD currency.
- Configure the warehouse management settings for each site. Set up advanced warehouse functionality for the US and Canadian sites that require it and basic warehouse functionality for the US site that does not require advanced functionality.
- Configure inventory policies for each site to manage inventory movement between sites.
In summary, while the proposed solution of creating separate legal entities for each location might meet the requirement of having different warehouse functionality, it may not be the most optimal solution due to the complexity it would create. Creating multiple sites within one legal entity would simplify the system's management and allow for better inventory management.
