Boost your accounting and financial skills with Microsoft Dynamics AX 2012 R3
Mohamed Aamer
Copyright © 2015 Packt Publishing
Table of Contents
Understanding the ERP characteristics 6
Discovering the implementation team 6
Responsibilities and motivation of an ERP consultant 7
Exploring key intentions of ERP implementations 8
Understanding the ERP module's integration 10
Accounts payable 11
Product receipt 11
Invoice 12
Payment 12
Settlement 12
Accounts receivable 12
Packing slip 13
Invoice 13
Collection 13
Settlement 13
Exploring ERP and reporting 13
Posting types in Microsoft Dynamics AX 15
Exploring the common terms in ERP implementations 16
Exploring Microsoft Dynamics Implementation Methodology – Sure Step 17
Exploring Microsoft Dynamics Lifecycle Services 19
Looking at Microsoft Dynamics AX user Interface 19
Summary 32
Understanding the chart of accounts 33
Classifying main accounts 34
Using transactional accounts 36
Using nontransactional accounts 37
Main account categories 39
Controlling main accounts 40
Debit/Credit controls 40
Using account administration 44
Using posting validation 47
Understanding shared financial data 51
Exploring the sales tax mechanism 52
Withholding tax 58
Understanding financial management in action 59
Opening balance 59
Best practices of uploading opening balances 60
Planning and designing 60
Validation 63
Performing daily transactions 63
The account alias 64
Recurring entries 65
Saving a voucher 67
Closing procedure 68
Summary 71
Understanding cash and bank integration 73
Controlling cash and bank management 74
Credit limit 75
Date activation 77
Status activation 78
General ledger reconciliation 80
Transaction currency 80
Exploring cash and bank management in action 82
Bank account reconciliation 82
Bank facility – letter of guarantee 90
Summary 101
Chapter 4: Understanding Accounts Payable 103
Understanding accounts payable integration with other modules 103
Exploring vendor master data characteristics 108
The General fast tab 108
The Purchasing demographics fast tab 109
Invoice and delivery fast tab 109
The Invoice field group 110
The Sales tax field group 110
The Withholding tax field group 111
The Discount field group 111
Vendor price/discount groups 112
The Payment fast tab 114
Terms of payment 115
Method of payment 116
Payment schedule 117
Cash discount 118
Exploring accounts payable controls 121
Vendor hold activities 121
Invoice matching controls 125
Invoice matching 125
Price tolerance 129
The invoice number 137
The Posting profile 138
Exploring accounts payable transactions 139
The purchase order invoice 140
The prepayment invoice 147
Vendor settlement 160
The vendor settlement mechanism in Microsoft Dynamics AX 161
Summary 162
Understanding the Accounts receivable module's integration with other modules 163
Exploring customer master data characteristics 168
The Sales order defaults fast tab 170
The Discount field group 170
Customer price or discount groups 170
The Payment fast tab 173
Terms of payment 174
Method of payment 175
Payment specification 176
Payment schedule 176
Cash discount 177
The Invoice and delivery fast tab 180
The Invoice field group 180
The Sales tax field group 180
Exploring Accounts receivable controls 181
Customer hold activities 181
Customer credit limit management 182
Exploring Accounts receivable transactions 191
Sales order invoice 192
Free text invoice 198
Free text correction 199
Customer settlement 202
Customer settlement mechanism – Dynamics AX 203
Summary 204
Understanding fixed assets integration with other modules 205
Exploring fixed assets master data characteristics 207
The depreciation profile 207
The depreciation method 208
Constant fields 209
Dynamic fields 209
The value model 210
Fixed asset groups 212
Fixed assets 213
Exploring fixed assets transactions 216
Fixed asset disposal sale 223
Summary 225
Understanding cash flow integration with other modules 228
Cash flow forecast configuration 229
Accounts payable 230
Accounts receivable 234
Budget 238
General ledger 238
Cash flow transactions 239
Purchase order cash flow forecast 240
Cash flow forecast by currency requirement 241
Main account cash flow forecast 244
Summary 244
Understanding the business costing model 246
Configuring inventory costing 247
Item model group 247
Product dimension groups 250
Storage dimension groups 250
Tracking dimension groups 251
Item groups 251
Exploring the inventory costing background 253
Physical and financial updates 253
Physical update 254
Financial update 254
Understanding inventory recalculation and closing 255
Working with inventory marking 256
Exploring inventory reconciliation 258
Inventory value report setup 259
Inventory value report generation 262
Summary 263
Understanding the concept of financial dimensions 265
Understanding the ledger account segmentation 269
Segmented ledger accounts 269
Financial dimensions entry 270
Creating financial dimensions 271
Configuring the account structure 275
Advanced rules structure 278
Fixed dimension 281
Posting types in Microsoft Dynamics AX 282
The posting profile concept 282
Journal posting 284
Exploring dimension reporting 285
Financial dimension sets 285
Summary 292
Planning reporting needs for ERP 293
Understanding the information technology value chain 296
Infrastructure 296
Database management 297
Business processes 297
Business Intelligence 298
Frontend 298
Understanding Microsoft Dynamics AX information source blocks 298
Detailed transactions block 299
Business Intelligence block 299
Executive decisions block 301
Discovering Microsoft Dynamics AX reporting 301
Reporting options 301
Inquiry forms 302
SSRS reports 305
Reporting currency 311
Autoreports 311
Microsoft Dynamics Management Reporter 316
Summary 321
Index 323
Preface
The essential foundation of the Enterprise Resource Planning (ERP) implementation is the financial part that is considered as the backbone of the implementation. The implementation team from the partner side and customer side should ensure that the financial module is well structured and designed. This book provides a broad guide to Microsoft Dynamics AX Financial Management fundamentals for parties involved in the implementation project, with considerations of the business rationale behind functions, basic setups, configurations, transactions in action, and examples of real-life scenarios.
What this book covers
Chapter 1, Getting Started with Microsoft Dynamics AX 2012, explains the ERP concept, integration of modules, the financial posting mechanisms in Microsoft Dynamics AX 2012 R3, the role of consultant in implementation team, Microsoft Dynamics Sure Step implementation methodology, Microsoft Dynamics Lifecycle Service, and the Microsoft Dynamics AX 2012 R3 user interface.
Chapter 2, Understanding the General Ledger, explains the usage of main accounts, control points, and the Microsoft Dynamics AX 2012 R3 shared financial data concept. It also gives you a practical insight on opening balance tips and
month-end closing procedures.
Chapter 3, Understanding Cash and Bank Management, will help you understand the cash and bank management module integration, controls, the bank reconciliation process, and then cover the bank facility function.
Chapter 4, Understanding Accounts Payable, focuses on integrating Accounts payable with other modules, the vendor transactions, invoices, payment, and prepayment, in addition to vendor controls and basic master data.
Chapter 5, Understanding Accounts Receivable, focuses on integrating Accounts receivable with other modules, the customer transactions, sales invoices, free text invoices and its correction, in addition to customer controls and basic master data.
Chapter 6, Exploring Fixed Assets, focuses on the integration of fixed assets with other modules and their transactions.
Chapter 7, Functioning of Cash Flow Management, focuses on the integration points between cash flow management and other modules in Microsoft Dynamics AX, provided with basic setups, configuration, and cash flow transaction.
Chapter 8, Working with Cost Management, covers the inventory costing model in Microsoft Dynamics AX 2012 and provides information about inventory cost setups and configuration, inventory reconciliation with general ledger, recalculation, and closing.
Chapter 9, Exploring Financial Dimensions, focuses on financial dimensions model in Microsoft Dynamics AX 2012, its practical utilization, and its reporting.
Chapter 10, Exploring Financial Reporting and Analysis, will help you to find out the reporting needs at early stages of the implementation project and what sides you should consider during the project's life cycle. It also explores Microsoft Dynamics AX inquiry forms and SQL Reporting Services (SSRS) reports.
What you need for this book
All examples were performed using a virtual machine of Microsoft Dynamics AX 2012 R3 Image from the Microsoft partner/customer source.
Who this book is for
This book is intended for application consultants, controllers, CFOs, and other professionals who are involved in the Microsoft Dynamics AX implementation project. Basic knowledge of financial terms, concepts, and Microsoft Dynamics AX terminology is required.
