Cash Flow Mastery with Azure AI in Dynamics 365 Business Central

The future of financial management is here and predicting trends now isn’t just a power move; it’s your business’s lifeline. Amidst changing business trends, one thing is clear: the key to growth lies in foreseeing and adapting. Microsoft has redefined decision-making with its forecasting model for Business Central, a seamless fusion of Azure AI and Microsoft Dynamics 365 Business Central. It’s a powerful solution that will be your wise partner in financial decisions—perfect for businesses of all sizes. This blog is your behind-the-scenes look at this transformative powerhouse. Say goodbye to ordinary data analysis; the game is about to change.

The Azure Machine Learning Model Workflow—an overview

1. The training process

In the initial stages, the model’s journey commences with the development of machine learning training scripts. These scripts—built in Python, R, or through a visual designer—are the foundational elements for the model’s intelligence. They are then submitted for training, where logs and outputs are systematically organized for further analysis.

The outcome of the training process determines the model’s readiness for the grand show. A satisfactory run results in the model’s registration, and subsequent validation is conducted through metrics querying. This iterative process ensures that the model meets expectations and delivers the desired accuracy.

2. Packaging and validation

The model undergoes the packaging and validation process after a successful training phase. If the initial run doesn’t meet expectations, refinement of scripts becomes paramount. The goal is to ensure the model’s performance aligns seamlessly with the dynamic data landscape.

3. Deployment and monitoring

The end goal of the Azure Machine Learning Model Workflow is to launch the model as a web service on Azure or an IoT Edge device.  It’s crucial to constantly monitor the model to ensure it adjusts to changes in data environments. This is similar to how we would modify strategies based on differing client requirements and market conditions.

Practical Insights about the Business Central Forecasting Model

Overview

The sales and inventory forecast extension is handy for navigating the complex supply chain domain. It does more than predict sales; it helps manage stock levels optimally and balances customer satisfaction and cost control.

Configuration

Azure AI in Business Central is easy to set up and adjust according to your reporting needs. Its user-friendly design allows businesses to make accurate forecasts with limited tech expertise.

Model and web service configuration

With Azure Machine Learning Studio and simple Python scripting, you can quickly configure and implement the Sales and Inventory Forecast Extension.

Forecasts

This extension is a powerful tool for predicting sales and guiding inventory decisions. It provides essential insights for decision-makers and simplifies supply chain management.

Using the forecasting model for Business Central

• The model uses tools such as the Execute R Script module to analyze data and make forecasts.
• Two input modules define the structure of your data and global parameters and make the predictions more accurate.

Customizing your predictive web service

• You can create personalized, predictive web services based on a model from the Azure AI Gallery.
• This feature lets you customize your financial forecasting experience based on your business needs.

Key Features of Dynamics 365 Business Central Inventory Forecast

1. Forecast setup

Walkthroughs on setting up the Sales and Inventory Forecast ensure a smooth start. This includes the assignment of your API URI and API KEY. The guided setup process minimizes the barriers to entry and helps you flawlessly initiate your forecasting journey.

Demo steps: Sales and inventory forecast setup

Search and open:

• Search for “Sales and Inventory Forecast Setup.”
• Open the found result.

Schedule automatic update:

• Use the Job Queue Process to set up automatic updates.

On-Demand Update for Forecast:

• Search for “Update Forecast.”
• Open the “Item List page.”

Forecast FastTab:

• Check the Forecast FastTab.
• Use “Show Inventory Forecast” to view calculated forecasts.

Note:  If historical data is insufficient (less than five periods), a message prompts for more data.

Forecast data won’t display if inadequate or falls outside the 20 to 40 percent variance.

Testing forecast calculation:

• Create sales, purchase, and inventory entries for testing.
• If within configured variance, forecast data appears in the Item Forecast FastTab.

Forecast calculation update from “Item List”:

• Update forecast calculation directly from the item list using “Update Sales Forecast.”

Create purchase orders and invoices:

• Generate Purchase Orders and Purchase Invoices from calculated data in the Forecast FastTab.
• Modify forecast setup as needed.

2. Automatic updates

The convenience of scheduling automatic updates through the Job Queue Process is a crucial feature. This seamless integration of forecasting into your daily business processes ensures that you stay updated with the latest insights without manual intervention.

3. On-demand update

Flexibility is prioritized with the option for on-demand updates. You can adapt to real-time changes by opting for immediate updates, which ensure that your forecasting model remains responsive to evolving circumstances.

4. Visualization and decision support

The practicality of the forecasting model extends to visual representations of forecast data on the
“Item List” page. These visual aids provide a clear understanding of the story behind the numbers.

Tools for creating purchase orders and invoices based on forecasted data also add a practical dimension to the decision-making process.

The accountant role center in Dynamics 365 Business Central

The accountant role center includes various tools for financial performance analysis that focus on cash cycles, cash flow, and income and expense charts. These features give you complete tools for examining your cash flow and financial performance.

1. Timeline slider for period analysis

Functionality: The timeline slider lets users view figures for a specific period.

Usage: You can move the slider to study cash flow trends over different times.

2. Legend-based filtering

Functionality: Users can filter the charts by selecting sources in the legend.

Usage: This helps you focus on specific data sources for a more detailed view.

3. Period management and navigation

Functionality: The Finance Performance dropdown provides options to change the length of your study period and move to the previous or next period.

Usage: Users can tailor the analysis period for a more detailed look at their financial performance.

4. Interactive point-based analysis

Functionality: Users can view entries by choosing a point on the chart, such as a timeline or a column segment.

Usage: This interactive feature empowers users to identify discrepancies and make real-time adjustments directly from the charts.

5. Cash flow forecast features

Functionality: Similar to other charts, the Cash Flow Forecast chart provides details, filtering options, and customizable display settings.

Usage: Users can refresh the forecast after modifying settings by choosing the Cash Flow Forecast and selecting the Recalculate Forecast option.

6. Detailed cash flow worksheet

Functionality: Users can examine forecast details by accessing the Cash Flow Worksheet.

Usage: The Cash Flow Worksheet provides insights into how the forecast handles confirmed sales and purchases, manages payables and receivables, and skips duplicate sales and purchase orders.

7. Forecast adjustment and recalculation

Functionality: Users can make adjustments based on the analysis and recalculate the forecast.

Usage: This iterative process ensures the forecast remains accurate and aligned with your changing financial situation.

8. Cash flow worksheet navigation

Functionality: Users can navigate to the Cash Flow Worksheet by searching for Cash Flow Forecasts and selecting the related link.

Usage: The Cash Flow Worksheet offers additional functionalities such as the Suggest Worksheet Lines action, providing a more detailed breakdown of forecast components.

Final thoughts

And that’s a wrap—a glimpse into the future where this intelligent sidekick effortlessly guides your business decisions. The forecasting model is already a transformational narrative; you can be part of this technological saga. So, let’s step into the future with confidence, use the power of predictions, and see your business reach new heights.