Business Central for Retail: Luxenter's Dynamics 365 Phase 1

Luxenter, a Spanish jewelry brand, engaged Awara IT to implement Microsoft Dynamics 365 Business Central as a Phase 1 deployment targeting core finance, procurement, sales and inventory processes. The goal was to replace fragmented spreadsheets and point solutions with a single financial and operational backbone that supports tax rate management for European expansion and standard bank handling workflows.

Awara IT delivered a scoped Business Central implementation for the first legal entity, focusing on accounting, VAT configuration, purchase-to-pay, sales order processing and stock management. The engagement established a repeatable foundation for Phase 2 rollouts across additional entities, reduced manual reconciliations, and improved data consistency for CFO and operations stakeholders.

Client / Industry / Country

Luxenter is an established jewelry brand operating in Spain (Western Europe). The company manages retail and online sales, finance and warehouse operations and is preparing for further European expansion. The Phase 1 implementation targeted a single legal entity as the template for broader rollout.

Business challenge

Before the engagement Luxenter managed accounting, tax rates, bank handling and inventory across disjointed processes: accounting data were consolidated from spreadsheets and legacy records, tax rates for multi-country pricing were tracked manually, and warehouse stock levels were reconciled by hand. These manual workflows increased month-end close time, introduced compliance risk for VAT reporting across Europe, and limited finance visibility for purchasing and sales.

Operationally, purchase-to-pay and sales order processing were slowed by duplicate data entry between store systems and back-office records. Bank statement handling relied on manual imports and reconciliations, increasing the risk of posting errors. The project trigger was a strategic decision to standardize finance and inventory processes for the first entity to reduce risk and accelerate a controlled multi-entity expansion across Europe.

Why Dynamics 365 was selected

Dynamics 365 Business Central was selected because it combines core financials, purchasing, sales and inventory management in a single, Microsoft-backed platform that aligns with Luxenter’s Microsoft-centric landscape. Business Central's multi-entity and tax configuration capabilities make it suitable for controlled rollouts when preparing for European tax complexity and varying VAT rates.

Awara IT was chosen as the implementation partner due to its track record with Dynamics NAV/BC projects in retail and its pragmatic approach to phased rollouts. The Microsoft stack (Business Central, Azure AD and potential Power Platform extensions) also supported Luxenter’s requirement for future reporting and automation without duplicating systems.

Modules implemented

• Financial Management (General Ledger, Accounts Payable, Accounts Receivable)
• VAT & Tax Rate Management (EU VAT mapping, country rate configuration)
• Purchasing / Purchase-to-Pay
• Sales Order Processing
• Inventory & Warehouse Management (basic location/bin control)
• Bank Handling and Reconciliation (SEPA-ready bank statement import)
• Basic CRM / Customer Master for sales orders
• Reporting & Dashboards (Power BI-ready data models)

Integrations

• Bank statement import (file/API) for automated reconciliation
• Point-of-Sale (POS) integration for store sales and stock sync (API-based)
• E‑commerce order feed for online sales consolidation
• Azure Active Directory for SSO and user provisioning
• Data migration from legacy accounting files and spreadsheets

Localization & compliance

The solution was configured for Spanish localization: euro currency, Spanish language labels where required, and VAT configuration aligned to Spanish reporting requirements (Modelo 303 VAT returns and standard VAT ledgers). SEPA payment formats and bank statement formats were implemented to match the banking partners used by Luxenter.

Tax rate management was built to support multi-country VAT rate tables and mappings for future European expansion, enabling Intrastat-ready flows and preparing the company for OSS or other EU reporting mechanisms if needed. Chart of accounts and posting profiles were aligned with Spanish accounting practices to ensure statutory compliance.

Business value

The Phase 1 Business Central deployment gave Luxenter a single source of truth for finance and core operations, reducing manual reconciliations and accelerating the month-end close. Centralized VAT and tax rate management reduced compliance work and positioned the company to apply the same template for additional European entities. Operationally, purchase-to-pay and sales processes are now controlled through workflows and standardized masters, reducing duplicate entries and errors.

With automated bank handling and integrations to POS and e-commerce channels, Luxenter improved inventory accuracy and got near-real-time visibility into sales and stock levels. The implementation also established a technical baseline—Business Central plus Azure AD and Power BI readiness—that Awara IT will reuse for the planned Phase 2 multi-entity rollout.