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COURSE: 80219

FINANCIALS I IN
MICROSOFT DYNAMICS® AX 2012

Last Revision: August 2011
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This course content is designed for Microsoft Dynamics® AX 2012.

Table of Contents
Introduction

0-1 

Welcome ............................................................................................................ 0-1 
Microsoft Dynamics Courseware Contents ........................................................ 0-2 
Documentation Conventions .............................................................................. 0-3 
Student Objectives ............................................................................................. 0-4 

Chapter 1: General Ledger Setup

1-1 

Objectives ........................................................................................................... 1-1 
Introduction ......................................................................................................... 1-1 
Currency and Exchange Rate Setup .................................................................. 1-2 
Lab 1.1 - Set up a Currency Exchange Rate .................................................... 1-12 
Periods and Fiscal Year Setup ......................................................................... 1-14 
Lab 1.2 - Create Periods in a New Fiscal Year ................................................ 1-18 
Date Intervals ................................................................................................... 1-19 
Reason Codes .................................................................................................. 1-23 
Financial Dimensions ....................................................................................... 1-25 
Lab 1.3 - Assign Ledger Account Dimension Values ....................................... 1-32 
Financial Dimension Sets ................................................................................. 1-33 
Period Allocations ............................................................................................. 1-34 
Summary .......................................................................................................... 1-44 
Test Your Knowledge ....................................................................................... 1-45 
Quick Interaction: Lessons Learned ................................................................. 1-47 
Solutions ........................................................................................................... 1-48 

Chapter 2: Chart of Accounts Setup

2-1 

Objectives ........................................................................................................... 2-1 
Introduction ......................................................................................................... 2-1 
Main Account Categories ................................................................................... 2-2 
Chart of Accounts ............................................................................................... 2-4 
Main Account Information ................................................................................... 2-7 
Main Account Administration Information ........................................................... 2-9 
Main Account Setup Information ...................................................................... 2-11 
Configuring Account Structures ........................................................................ 2-12 
Advanced Rules ............................................................................................... 2-14 
Ledger Setup .................................................................................................... 2-17 
Lab 2.1 - Enter a Main Account ........................................................................ 2-22 
Lab 2.2 - Account Allocation Terms ................................................................. 2-23 
Accounts for Automatic Transactions ............................................................... 2-24 
Inquiries and Reports Related to the Chart of Accounts .................................. 2-26 
Summary .......................................................................................................... 2-28 
Quick Interaction: Lessons Learned ................................................................. 2-31 
Solutions ........................................................................................................... 2-32 

Chapter 3: Journal Setup

3-1 

Objectives ........................................................................................................... 3-1 
Introduction ......................................................................................................... 3-1 
Journal Setup ..................................................................................................... 3-2 
Journal Controls ................................................................................................. 3-9 
Journal Descriptions ......................................................................................... 3-10 

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Financials I in Microsoft Dynamics® AX 2012
Balance Control Accounts ................................................................................ 3-11 
General Ledger Parameters ............................................................................. 3-13 
Lab 3.1 - Set Up Journals ................................................................................. 3-15 
Summary .......................................................................................................... 3-17 
Test Your Knowledge ....................................................................................... 3-18 
Quick Interaction: Lessons Learned ................................................................. 3-20 
Solutions ........................................................................................................... 3-21 

Chapter 4: General Ledger Daily Procedures

4-1 

Objectives ........................................................................................................... 4-1 
Introduction ......................................................................................................... 4-1 
General Ledger Journals .................................................................................... 4-2 
Enter General Ledger Transactions ................................................................... 4-4 
Lab 4.1 - Daily Transactions ............................................................................... 4-7 
Lab 4.2 - Daily Transactions with Balance Control ............................................. 4-9 
Posting Multiple Journals ................................................................................. 4-11 
Approval Journals ............................................................................................. 4-13 
Example: Gathering Data for an Approval Journal ........................................... 4-17 
Voucher Templates .......................................................................................... 4-18 
Periodic Journals .............................................................................................. 4-20 
Lab 4.3 - Entering Periodic Transactions ......................................................... 4-24 
General Ledger Transaction Reversal.............................................................. 4-27 
Reversing Entries - General Journals .............................................................. 4-31 
Inquire and View Reports on Daily Journal Transactions ................................. 4-32 
Summary .......................................................................................................... 4-34 
Test Your Knowledge ....................................................................................... 4-35 
Quick Interaction: Lessons Learned ................................................................. 4-37 
Solutions ........................................................................................................... 4-38 

Chapter 5: Sales Tax Setup

5-1 

Objectives ........................................................................................................... 5-1 
Introduction ......................................................................................................... 5-1 
Sales Tax Overview ........................................................................................... 5-2 
Ledger Posting Groups ...................................................................................... 5-4 
Lab 5.1 - Create a Ledger Posting Group ........................................................ 5-10 
Sales Tax Authorities ....................................................................................... 5-12 
Lab 5.2 - Create a Sales Tax Authority ............................................................ 5-15 
Lab 5.3 - Create and Assign a Vendor to the Sales Tax Authority ................... 5-16 
Sales Tax Settlement Periods .......................................................................... 5-18 
Lab 5.4 - Setup of Sales Tax Settlement Periods............................................. 5-22 
Sales Tax Codes .............................................................................................. 5-24 
Sales Tax Codes Intervals................................................................................ 5-32 
Lab 5.5 - Set Up Sales Tax Codes Intervals .................................................... 5-36 
Sales Tax Groups ............................................................................................. 5-38 
Item Sales Tax Groups ..................................................................................... 5-43 
Sales Tax Jurisdictions ..................................................................................... 5-45 
Lab 5.6 - Comprehensive Setup of Sales Tax .................................................. 5-47 
Lab 5.7 - Including Sales Tax in Journal Amounts ........................................... 5-54 
Sales Tax Transactions .................................................................................... 5-55 
Sales Tax Exemption ....................................................................................... 5-61 

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Lab 5.8 - EU 115 Sales Tax Directive .............................................................. 5-63 
Withholding Sales Tax ...................................................................................... 5-66 
Summary .......................................................................................................... 5-69 
Test Your Knowledge ....................................................................................... 5-70 
Quick Interaction: Lessons Learned ................................................................. 5-73 
Solutions ........................................................................................................... 5-74 

Chapter 6: Financial Features

6-1 

Objectives ........................................................................................................... 6-1 
Introduction ......................................................................................................... 6-1 
Financial Reason Codes .................................................................................... 6-2 
Fill Utility ............................................................................................................. 6-7 
Summary ............................................................................................................ 6-8 
Test Your Knowledge ......................................................................................... 6-9 
Quick Interaction: Lessons Learned ................................................................. 6-10 
Solutions ........................................................................................................... 6-11 

Chapter 7: Cash and Bank Management Setup

7-1 

Objectives ........................................................................................................... 7-1 
Introduction ......................................................................................................... 7-1 
Bank Transaction Types ..................................................................................... 7-2 
Bank Transaction Groups ................................................................................... 7-4 
Lab 7.1 - Create Bank Transaction Types and Bank Transaction Groups ......... 7-5 
Cash and Bank Management Parameters ......................................................... 7-7 
Payment Purpose Codes ................................................................................... 7-9 
Bank Groups .................................................................................................... 7-10 
Bank Accounts ................................................................................................. 7-11 
Lab 7.2 - Create a Bank Group and Bank Account .......................................... 7-16 
Check Layout ................................................................................................... 7-18 
Lab 7.3 - Define a Check Layout ...................................................................... 7-23 
Summary .......................................................................................................... 7-25 
Test Your Knowledge ....................................................................................... 7-26 
Quick Interaction: Lessons Learned ................................................................. 7-27 
Solutions ........................................................................................................... 7-28 

Chapter 8: Cash And Bank Management Daily Procedures

8-1 

Objectives ........................................................................................................... 8-1 
Introduction ......................................................................................................... 8-1 
Create Checks .................................................................................................... 8-2 
Delete a Check ................................................................................................... 8-3 
Lab 8.1 - Create and Delete a Check ................................................................. 8-4 
Deposit Slips ...................................................................................................... 8-6 
Lab 8.2 - Create a Deposit Slip .......................................................................... 8-9 
Void Unposted Checks ..................................................................................... 8-11 
Refund Checks ................................................................................................. 8-11 
Lab 8.3 - Check Refund ................................................................................... 8-13 
Bank Remittance .............................................................................................. 8-14 
Payment Reversal ............................................................................................ 8-15 
Reconcile a Bank Account ............................................................................... 8-17 
Summary .......................................................................................................... 8-20 

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Financials I in Microsoft Dynamics® AX 2012
Test Your Knowledge ....................................................................................... 8-21 
Quick Interaction: Lessons Learned ................................................................. 8-23 
Solutions ........................................................................................................... 8-24 

Chapter 9: Accounts Payable Setup

9-1 

Objectives ........................................................................................................... 9-1 
Introduction ......................................................................................................... 9-1 
Payment Schedule ............................................................................................. 9-2 
Terms of Payment .............................................................................................. 9-4 
Payment Days .................................................................................................... 9-7 
Lab 9.1 - Terms of Payment ............................................................................... 9-8 
Cash Discounts .................................................................................................. 9-9 
Payment Fee .................................................................................................... 9-14 
Methods of Payment ........................................................................................ 9-18 
Lab 9.2 - Method of Payment, Terms of Payment, and Cash Discount ........... 9-24 
Vendor Groups ................................................................................................. 9-26 
Lab 9.3 - Create a Vendor Group ..................................................................... 9-30 
Accounts Payable Posting Profiles ................................................................... 9-31 
Lab 9.4 - Vendor Posting Profile ...................................................................... 9-34 
Accounts Payable Vendors .............................................................................. 9-36 
Lab 9.5 - Vendors ............................................................................................. 9-42 
Summary .......................................................................................................... 9-43 
Test Your Knowledge ....................................................................................... 9-44 
Quick Interaction: Lessons Learned ................................................................. 9-45 
Solutions ........................................................................................................... 9-46 

Chapter 10: Accounts Payable Daily Procedures

10-1 

Objectives ......................................................................................................... 10-1 
Introduction ....................................................................................................... 10-1 
Invoice Journals in Accounts Payable .............................................................. 10-2 
Invoice Register ................................................................................................ 10-2 
Invoice Approval Journal ................................................................................ 10-13 
Lab 10.1 - Register an Invoice ....................................................................... 10-16 
Vendor Invoice Pool Excluding Posting Details .............................................. 10-19 
Lab 10.2 - Invoice Pool Excluding Posting ..................................................... 10-21 
Invoice Journal ............................................................................................... 10-23 
Lab 10.3 - Invoice Journal .............................................................................. 10-25 
Voucher Template .......................................................................................... 10-27 
Payment Journals ........................................................................................... 10-29 
Lab 10.4 - Payment Journals ......................................................................... 10-39 
Prepayments .................................................................................................. 10-43 
Lab 10.5 - Setup and Track a Prepayment..................................................... 10-47 
Invoice Matching ............................................................................................ 10-50 
Charges to Purchase Order Invoices ............................................................. 10-60 
Edit Open Transactions .................................................................................. 10-64 
Reverse a Closed Transaction ....................................................................... 10-66 
Lab 10.6 - Reverse a Closed Transaction ...................................................... 10-68 
Print Management .......................................................................................... 10-69 
Summary ........................................................................................................ 10-76 
Test Your Knowledge ..................................................................................... 10-77 

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Quick Interaction: Lessons Learned ............................................................... 10-79 
Solutions ......................................................................................................... 10-80 

Chapter 11: Accounts Receivable Setup

11-1 

Objectives ......................................................................................................... 11-1 
Introduction ....................................................................................................... 11-1 
Payment Schedule ........................................................................................... 11-2 
Terms of Payment ............................................................................................ 11-4 
Payment Days .................................................................................................. 11-7 
Lab 11.1 - Terms of Payment ........................................................................... 11-9 
Cash Discount ................................................................................................ 11-10 
Payment Fee .................................................................................................. 11-13 
Methods of Payment ...................................................................................... 11-18 
Lab 11.2 - Set up a Method of Payment ......................................................... 11-23 
Customer Groups ........................................................................................... 11-24 
Lab 11.3 - Create a Customer Group ............................................................. 11-28 
Accounts Receivable Posting Profiles ............................................................ 11-29 
Lab 11.4 - Set Up a Customer Posting Profile................................................ 11-32 
Accounts Receivable Customers.................................................................... 11-34 
Lab 11.5 - Create a Customer ........................................................................ 11-41 
Summary ........................................................................................................ 11-43 
Test Your Knowledge ..................................................................................... 11-44 
Quick Interaction: Lessons Learned ............................................................... 11-46 
Solutions ......................................................................................................... 11-47 

Chapter 12: Accounts Receivable Daily Procedures

12-1 

Objectives ......................................................................................................... 12-1 
Introduction ....................................................................................................... 12-1 
Free Text Invoice - Description and Usage ...................................................... 12-2 
Lab 12.1 - Create Free Text Invoices ............................................................. 12-10 
Payment Journals ........................................................................................... 12-12 
Lab 12.2 - Settlements - Entering an Accounts Receivable Payment Journal
(Cash Receipt) ............................................................................................... 12-23 
Edit Open Transactions .................................................................................. 12-25 
Lab 12.3 - Edit Open Transactions ................................................................. 12-29 
Placing an Accounts Receivable Transaction on Hold ................................... 12-31 
Reverse Settlements ...................................................................................... 12-32 
Lab 12.4 - Reverse a Settlement .................................................................... 12-34 
Reimburse a Customer .................................................................................. 12-35 
Lab 12.5 - Reimburse a Customer ................................................................. 12-36 
Reason Codes ................................................................................................ 12-39 
Print Management .......................................................................................... 12-40 
Summary ........................................................................................................ 12-47 
Test Your Knowledge ..................................................................................... 12-48 
Quick Interaction: Lessons Learned ............................................................... 12-50 
Solutions ......................................................................................................... 12-51 

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Financials I in Microsoft Dynamics® AX 2012

vi

Introduction

INTRODUCTION
Welcome
We know training is a vital component of retaining the value of your Microsoft
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Look for a complete list of manuals available for purchase on the Microsoft
Dynamics website: www.microsoft.com/Dynamics.

0-1

Financials I in Microsoft Dynamics® AX 2012

Microsoft Dynamics Courseware Contents
Test Your Skills
Within the Microsoft Dynamics Training Materials you find a variety of different
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By outlining three key points from the chapter, the student is maximizing
knowledge retention, and providing themselves with an excellent resource for
reviewing key points after class.

0-2

may be valuable to an end user. while not critical. BEYOND THE BASICS: Advanced information found throughout the training manual is preceded by the words BEYOND THE BASICS in bold. that may help you to more optimally use the application. Examples bring to light business scenarios that may better explain how an application can be used to address a business problem. EXAMPLE: Examples are found throughout the training manual and are preceded by the word EXAMPLE in bold. Hints are used to suggest time-saving features or alternative methods for accomplishing a specific task. CAUTION: Cautions are found throughout the training manual and are preceded by the word CAUTION in bold. 0-3 . Cautions are used to remind you of a specific result of a specific action which may be undesirable. HINT: Hints are found throughout the training manual and are preceded by the word HINT in bold. outside of standard functionality. NOTE: Notes are found throughout the training manual and are preceded by the word NOTE in bold.Introduction Documentation Conventions The following conventions and icons are used throughout this documentation to help you quickly and effectively navigate through the information. Notes are used to provide information which. Beyond the Basics provides additional detail.

0-4 .Financials I in Microsoft Dynamics® AX 2012 Student Objectives What do you hope to learn by participating in this course? List three main objectives below. 3. 1. 2.

and delete reason codes. The chart of accounts is a list of main accounts and financial dimensions that are allowed by one or more account structures. • Create. This course explains how to work with the chart of accounts and its multiple dimensions. Allocation rules and methods are also defined in this course. 1-1 . • Create a Financial dimension value.Chapter 1: General Ledger Setup CHAPTER 1: GENERAL LEDGER SETUP Objectives The objectives are: • Set up Currencies and Exchange Rates. • Create Date intervals. fiscal calendars. legal entities. • Create a Dimension Set. Introduction A general ledger is a formal ledger that contains a company’s accounting records. setup the chart of accounts. • Create Periods in a new fiscal year. cost centers. To make the General ledger functional. while currency setup determines which currencies are available for business transactions. and other important financial information. • Set up allocation rules. and currencies. Fiscal calendars specify what time period financial data is posted. • Contrast the various allocation methods. These dimensions may be used to track profits. modify.

Multi-currency functionality may be used if your company does business in more than one currency.1 CURRENCIES FORM Only one currency can represent the Triangulation currency. 1-2 . all currencies are provided by default. By default. then maintaining currencies and their corresponding exchange rate is essential. click Setup. Currency Setup In Microsoft Dynamics AX. To change the Triangulation currency. The currencies are loaded the first time a user opens the General ledger parameters form. If your organization has multiple legal entities and transacts in multiple currencies. Then. the EUR currency is selected as the Triangulation currency. click Currency. and then click Currencies. To view currencies click General ledger. you must first clear the Reference currency for triangulation check box on the EUR record in the Currencies form.Financials I in Microsoft Dynamics® AX 2012 Currency and Exchange Rate Setup Currency setup is a mandatory step in Microsoft Dynamics AX® and is used to record financial transactions. FIGURE 1. you can select the Reference currency for triangulation on the desired currency.

• Accounting Currency: The customary monetary unit of measure used to record the converted monetary value of economic transactions in ledger accounts. The name. This is typically printed on checks and other documents.Canadian dollar A description of the currency. 1-3 .Euro • CAD . this was called the company currency. symbol and currency code are specific to each currency. S.S dollar Name • EUR . In previous releases of Microsoft Dynamics AX. The following illustrates currencies: • $ . dollar • € . Examples: • U. • Reporting Currency: The monetary unit of measure used to record the converted monetary value of economic transactions in ledger accounts for financial and management reporting purposes.U. Examples: • USD.Euro Field Description Currency The unique identifier – a code of up to three characters – for the selected currency.S dollar • Euro • Canadian dollar Symbol Typically used on reports Example: $ Currency Code The standard code of the currency as defined by the International Organization for Standardization (ISO).Chapter 1: General Ledger Setup Currency Names and Symbols Each currency may have specific attributes associated with it.U. Accounting and Reporting Currencies Microsoft Dynamics AX uses the concept of Accounting currency and Reporting currency.

When running reports you want to see the results of the business operations in Canadian dollars (CAD). If the Conversion box is selected. This setup allows the display of financial information in a currency other than the default company currency in forms and reports. Changing the Display Currency After a currency is enabled for currency conversion. Click General ledger. 3. click Currency. 3. Do this by performing the following steps: 1. 2. the system uses the exchange rate defined on the Exchange rates form to convert the amounts for reporting purposes. you must convert your U. the system will automatically convert transaction amounts in grids using the exchange rates in the lower pane. Procedure: Enable a Currency for Currency Conversion The Currency Converter setup allows numeric conversions for online transactions.S. 4. On the status bar. Enter the date used for the conversion in the Date of rate field. To accomplish this. Select a currency. 4.Financials I in Microsoft Dynamics® AX 2012 An example of this would be if you had a subsidiary company in Canada. you can display financial information in a form or report using a currency other than the ledger accounting currency. your primary company is in the United States. Perform the following steps to convert to another currency. click the Currency field to open the Currency converter form. in the Prefix or Suffix fields. dollars (USD) to CAD. Click a currency to select the new currency. This conversion is completed by double-clicking the Currency converter in the Status bar in these forms. Select any of the currencies that have been set up for conversion in the Currency converter form. Specify the currency's symbol before or after an amount. 2. HINT: Enter a space before the currency symbol to separate the currency amount and the symbol. 1. click Setup. and then click Currencies. 1-4 . Select the Conversion check box to enable a currency for conversion.

00. Rounding Option . such as 0. and the Currency field on the status bar displays the new currency. Rounding Method . Perform the following steps to return to the default company currency: 1. select a currency. and Prices. Round the sums according to a fixed unit for general transaction amounts For example.10 or 1. 1-5 . Purchase orders. Tab to the Rounding Rules section. 4.Chapter 1: General Ledger Setup The Currency converter form will automatically close. amounts on transactions are rounded to the nearest unit to 0. Procedure: Set Rounding Options Perform the following steps to set the Rounding options for each currency. Round sums for Sales orders. • Rounding-up – round up all numbers. 2. 3. and reports that originally displayed amounts in the company's currency now display the currency selected. These have a Rounding option as well as a Rounding method. NOTE: The value in the General round-off field affects all values in all modules.01. From the Currencies form. inquiries. Specify the general unit for rounding in the General roundoff field. 2. Click the Reset button to return to the ledger accounting currency. Open the Currency converter form. All the forms. • Downward – round down all numbers. 1.Select the rounding convention that applies to the number to the right of the round-off unit that is entered in the Rounding rule text box: • Normal – round up numbers 5 and higher and round down numbers 4 and lower.Enter the unit for rounding amounts.

Spot. 1-6 . The default value for this field is Masculine. which.Financials I in Microsoft Dynamics® AX 2012 Rounding Option Considerations All posting amounts are rounded off to the nearest factor of the specified unit. regardless of whether they are calculated and posted automatically or entered manually by the user. in effect. Examples include Buy. FIGURE 1. Sell. Exchange rate types are a grouping that allows different exchange rates for two currencies.2 GENERAL LEDGER PARAMETERS Currency Gender Currency Gender is used for Spanish speaking countries to define the gender printed on checks and reports. in the Maximum penny difference field. Procedure: Create Exchange Rate Types Exchange rates types are shared data across the entire system and only need to be setup once. • Set up the rounding for secondary currencies in the Maximum penny-rounding in secondary currency field. means no gender. Select Feminine if the selected currency has a feminine gender and the gender is used on checks and reports. and Budget. In the General ledger parameters form: • Specify the maximum rounding amount for a voucher in the default currency.

1-7 . FIGURE 1. click Currency. Click the New button. Click on the New button to create a new record. Enter the identification of the exchange rate type in the Exchange rate type field and a description in the Name field. click Setup. click Setup.Chapter 1: General Ledger Setup Perform the following steps to set up an exchange rate: 1. and uses multiple exchange rate conversions. Select a Exchange rate type from the drop-down list. 3. 4. click Currency. and then click Currency exchange rates or navigate from the Exchange rate type form. and then click Exchange rate types. 2. Define the necessary exchange rates between a currency pair by selecting a currency in the From currency and the To currency drop-down list. click General ledger. 3. 4. Save the record and close the form. click General ledger. 2. To access the Currency Exchange rates form.3 EXCHANGE RATE TYPES Procedure: Create Currency Exchange Rates If a company trades with multiple currencies. Perform the following steps to set up the additional exchange rates: 1. To access the Exchange rates types form.

the exchange rate should specify how many U. you cannot create a EUR to USD currency pair for the same exchange rate type. By default. Therefore. the system will first look for the exact currency pair in the rate type used by the ledger: EUR to USD. The system will calculate the reciprocal rate automatically if it cannot find the exact currency pair during the translation conversion. this range is set to 30 days prior to and 30 days after the current date 7. 8. Select the date range in by entering the From date and a To Date in the appropriate fields. 6. 5. If not found. if the "From" currency is U. Define the Quotation unit. if you already have USD to EUR set up.S. It is possible to add multiple exchange rate dates for a single currency pair by clicking the Add button. Save the record and close the form 1-8 . It is also possible to remove exchange rate dates for a single currency pair by clicking the Remove button. 9. If the field is set to one hundred units. Typically the system is based on either one unit or one hundred units. the system will then look for USD to EUR and calculate the reciprocal rate. dollars and the "To" currency is Euro. For example. If you only have USD to EUR set up and you are entering a transaction amount in EUR in a legal entity where USD is the accounting currency.Financials I in Microsoft Dynamics® AX 2012 NOTE: A currency pair can only exist once and entering a reciprocal pair is not supported in the the system. dollars equal one hundred Euros.S. This date range is used to filter the display of the exchange rates in the grid. the exchange rate should specify the equivalent of one hundred units of the foreign currency.

Open General ledger. Perform the following steps to set up ledger and currency specific exchange rate loss/gain accounts: 1. This is also used in the customer/vendor settlement of payments and invoices. 4. Revaluation processes will generate unrealized gain/loss amounts where the settlement process will generate realized gain/loss amounts. If a sales order is invoiced on January 15. define main accounts to account for changes in exchange rate loss or gain. select Setup. For each ledger. the rate from February is used as an adjustment. Save the record and close the form. 2. 1-9 . Select the ledger in the Ledger field. the posting date determines the rate applied. FIGURE 1.4 CURRENCY EXCHANGE RATES Procedure: Create Revaluation Accounts When running currency revaluation. Select a Currency and define the main accounts that will be posted to for any unrealized and realized gains/losses for the currency in that ledger. If an exchange adjustment is run on February 2. 3. For example: An exchange rate is entered on January 1. and then select Currency revaluation accounts.Chapter 1: General Ledger Setup NOTE: Because the same currency can have several rates. and another exchange rate is entered on February 1. exchange rate differences may occur due to the change in exchange rates. Repeat the same steps for each ledger/currency. select Currency. 5. the exchange rate from January 1 is used to calculate the invoice amount.

FIGURE 1.6 DENOMINATION CURRENCIES FORM 1-10 .5 CURRENCY VALUATION ACCOUNTS FORM Denomination Currencies Add the currencies that are denominated as the triangulation currency and should be triangulated through the triangulation currency during the currency conversion process.Financials I in Microsoft Dynamics® AX 2012 NOTE: This setup can also be completed from the General ledger Setup > Ledger form if different gain/loss accounts are not required for each currency. FIGURE 1.

Chapter 1: General Ledger Setup Accounting and Reporting Currencies Microsoft Dynamics AX allows Accounting and Reporting currencies. 4. 2. Procedure: Change the Display Currency After a currency has been enabled for currency conversion. Enter the date used for the conversion in the Date of rate field. Reporting Currency: This is the monetary unit of measure used to record the converted monetary value of economic transactions in ledger accounts for financial and management reporting purposes. inquiries. Perform the following steps to return to the default company currency. It may also be referred to as the "company" or ledger currency. 3. To see financial reports in the Canadian (CAD ) currency. and reports that originally showed amounts in the company's currency display the new currency. perform the following steps to display financial information in a currency other than the default company currency: 1. For example: A primary company entity is located in the United States. 2. the default currency of a company does not change. The Currency converter form automatically closes. It is also meant to be an estimate of the amount in the selected currency. it does not affect any other users in the company. Open the Currency converter form. this is not a global change. 1-11 . 1. All the screens. and a subsidiary entity is located in Canada. On the status bar. Click a currency to select the new currency. Click the Reset button to return to the default company currency. NOTE: When you change the display currency. Also. the system uses the exchange rates defined in the Exchange rates form to convert USD to CAD amounts. click the Currency field to open the Currency converter form. nor does it change the original transaction. Select any of the currencies that have been set up for conversion in the Currency converter form. Accounting Currency: This is the monetary unit of measure that is used to record the converted monetary value of economic transactions in ledger accounts. and the Currency field on the status bar displays the new currency.

Highlight the Currency ZAR. Set up the exchange rate. click Currency. Transactions for this currency should be tracked to two decimal places. Field Value Realized Loss 801300 Realized Profit 801500 Unrealized Loss 801400 Unrealized Profit 801600 Challenge Yourself! 1. 1-12 . 2. After some research.Financials I in Microsoft Dynamics® AX 2012 Lab 1.35 USD equals 100 ZAR. 12. Convert the ZAR Quotation unit to 100. click Setup. o Open the Currency revaluation accounts form. and then click Currencies. CEU recently gained a new customer located in South Africa and uses the South African Rand (ZAR).Set up a Currency Exchange Rate Scenario Ken is the Controller for Contoso Entertainment USA (CEU). Click General ledger. To set up ZAR for currency conversion. 2. 2. Need a Little Help? 1. Set up the exchange rate for the ZAR currency. and set appropriate main accounts. 3. Ken has found that the following posting accounts should be set for the new currency.1 . As of April 1. 3. To set up the currency and specify the posting accounts and rounding options. select 100 in the Quotation unit field Step by Step Perform the following steps to set up the currency rounding options: 1. 2011. CEU uses US dollars as the company's default currency. Set up the South African Rand (ZAR) posting accounts and rounding options. follow these steps: o Open the Currencies form and enter a general rounding rule.

5. Click Close to close the form. Highlight the Currency ZAR. 4.3500 Perform the following steps to set up ZAR for currency conversion.01. In the Realized loss line. enter 801500 in the Main account field. Select 04/01/11. Every currency requires one exchange rate entry with a blank date. 8. In the Exchange rate field. 6. click Currency. enter 801600 in the Main account field. Perform the following steps to set up the exchange rate.Chapter 1: General Ledger Setup 3. and then click Currency revaluation accounts. 4. Click General ledger. 2. click Setup. Select ceu as the Ledger. 3. Perform the following steps to set up the currency posting accounts: 1. 5. enter 801300 in the Main account field. 1. Click Close to close the form. 2. In the Start Date field. 3. Click the Add button. 4. In the Exchange rate type field. Select 100 in the Quotation unit field. In the Realized gain line. 6. click Currency. and then click Currency exchange rates. 1. Click Close to close the form. select Default in the drop down list. 1-13 . Click General ledger. 7. In the Unrealized gain line. In the Unrealized loss line. click the calendar icon. enter 12. enter 801400 in the Main account field. enter . 2. Click the Rounding rules FastTab and in the General rounding rule field. click Setup.

Financials I in Microsoft Dynamics® AX 2012 Periods and Fiscal Year Setup The fiscal year in Microsoft Dynamics AX can be: • Set to any length • Divided into any number of periods • Shared across multiple legal entities Both fiscal year and periods can be set up by the following measurements of time: • Years • Months • Days Each period (at the ledger level) can be: • Closed completely or put On Hold to block transaction postings • Set to enable selected users to continue an update of one or more modules The periods and fiscal year feature is very useful for the preparation and reconciliation of periodic and yearly accounts Set Up Periods and Fiscal Year Fiscal calendars are shared across multiple legal entities. 1-14 . Closing of accounting periods allows the user to close the sub-ledger to make sure that no additional transactions are recorded. Having multiple calendars allows you to run parallel depreciations. NOTE: Microsoft Dynamics AX posts transactions according to dates as opposed to periods. • Reduces the amount of setup required for each legal entity as it is possible to use the same fiscal calendar for multiple legal entities. For example: Fixed assets may require two calendars one for auditing purposes and one for tax purposes. Before posting transactions. a new fiscal year must be divided into periods as transactions cannot post unless a period is created for the posting date. The benefits of sharing fiscal calendars include: • Supporting multiple fiscal calendars for each legal entity. Accounting periods are used for reporting.

Enter the Length of the period and the Unit of the periods. NOTE: There will always be an Open and Closing period created along with the number parameters specified in the Length of the Period and the Unit fields. the Accounting Manager. Enter a Fiscal year name of the initial fiscal year to be associated with this fiscal calendar. click Setup.Chapter 1: General Ledger Setup Scenario Phyllis. Click the Create button. 7. 2. 3. Click General ledger. 5. 1-15 . Enter a description of the fiscal calendar in the Description field. 8. Click the New fiscal calendar button. This description may print on reports. Enter the Start and End dates of the initial fiscal year in the appropriate fields. These fields work together to determine how many periods will be created. wants to define calendars for different purposes and share them across different ledgers without having to create them in each legal entity. Enter the name of the calendar to be created in the Calendar field. 6. Procedure: Create Shared Fiscal Calendar Perform the following steps to create a new fiscal calendar: 1. and then click Fiscal Calendar. 4.

the system creates the following: 1-16 • An opening period with the Type of Opening • A number of periods (or period) with the Type of Operating • A closing period with the Type of Closing .Financials I in Microsoft Dynamics® AX 2012 Example: Length of period entered in setup Unit entered in setup Number of Periods Created 1 Days 367 1 Months 14 1 Year 3 FIGURE 1.7 FISCAL CALENDAR YEAR FORM Review New Periods When you create a new fiscal year.

• • To delete period with an Operating status click the Delete button. in their ledger (General ledger > Setup > Ledger > Ledger calendar). After making changes to periods. The transactions are not deleted. it is possible to Divide. Modifying Fiscal Calendar Once the Fiscal Calendar is created. No warning or error message appears when an open period with transaction history is deleted. The period types are defined as follows: • Opening – the period can be used to record opening balances from the previous period. • To create a closing period for a fiscal period. Enter the start date of the new period. This is because when you are sharing a calendar across multiple legal entities. The system automatically creates an opening and closing period for the fiscal year. and then click OK to create the new period and return to the Periods form. • Operating – the period can be used to record accounting transactions. • To divide an existing period into two periods. Therefore. • Closing – the period can be used to record general ledger transactions for closing a fiscal period. and the end date of the period prior to the deleted period changes to coincide with the beginning date of the next period. all legal entities may not be ready to be closed at the same time.Chapter 1: General Ledger Setup NOTE: There is no Period status control on the Fiscal Calendar form. Delete. The Delete button is not available if the selected fiscal period has a status of Opening. 1-17 . you control the period status on a per-legal entity basis. click the Divide period button. NOTE: It is also possible to create multiple closing periods. click the Create Closing period button. This provides the ability to track internal button external audit adjustments (for example) in separate periods. or Create closing period in the Fiscal calendar form by clicking the appropriate button. it is recommend to run the Recalculate ledger period functionality. but not for each individual period.

2 . enter 7/1/2011. In the End of fiscal year field. In the Length of period field. 3. Enter FIS-2012 in the Calendar field. Click the New fiscal calendar button. the Controller for Contoso Entertainment USA (CEU). and is divided into onemonth periods. 1-18 Click General ledger. 11. must create a new fiscal year. 6. CEU has a fiscal year that begins on July 1. click the New fiscal calendar button to create the fiscal year for 2012. 9. . 2. click the arrow to select Months. 10. enter 6/30/2012. In the Start of fiscal year field. Step by Step 1. click Setup. Click the Create button to create the year. and then click Fiscal Calendar. enter 1. Enter Fiscal Year 2012 in the Description field. In the Fiscal calendars form. Enter 2012 in the Fiscal year name field. which begins on July 1. 2011. Select the period length of one month. Need a Little Help? 1.Create Periods in a New Fiscal Year Scenario Ken. 2. In the Unit field. Click Close to close the form. 5. 4. 7. 8. Challenge Yourself! Create the fiscal year calendar for 2012.Financials I in Microsoft Dynamics® AX 2012 Lab 1.

he selects a date interval. To access the Date intervals form. such as CP for the Current period. Procedure: Create Date Intervals Perform the following steps to create date intervals: 1. The date interval automatically fills in the start date and the end date. and then click Date Intervals. Enter a date interval code in the Date interval code field. 2.Chapter 1: General Ledger Setup Date Intervals Create and manage date intervals that can be used in financial statements and reports. 3. the Controller at Contoso Entertainment USA (CEU). click Setup. Date intervals allow you to create dynamic dates. Therefore. When you use date intervals. 1-19 . you can set up predefined periods when you run financial statements. Instead of entering the dates every time he runs the report. Ken does not have to specify the start date and the end date when he runs the dimension statement. Date intervals can also be used when setting up an allocation rule. click General Ledger. Click the New button to create a new record. runs a dimension statement every month. click Periods. Scenario Ken. Use a code that is easy to identify when you set up date intervals on statements and reports.

Start/End Perform the following steps to further define the date interval start and end dates. 1. This data is used with the value in the Before list to set the starting point of the date interval. The following examples are for Before and Start/End fields: 1-20 Field name Value Before Fiscal year Start/End Start Calculation date 3/13/2012 Starting point 1/1/2012 Field name Value Before Quarter Start/End End Calculation date 3/13/2012 Starting point 3/31/2012 . in the Description field. From the Date intervals form. Select the time unit that is the basis of the calculation in the Before list. click the General tab. FIGURE 1. Specify the starting point of the interval in the Start/End field. 3. 2. Enter a short description of the date interval.Financials I in Microsoft Dynamics® AX 2012 4.8 DATE INTERVALS FORM Procedure: Create Date Intervals .

months. by selecting + for future or . Select the unit for change of start date in the interval in the Days. years and period fields: Field Value Before Year Start/End Start +/- 1 Days.for past in the +/. months.Future or Past Perform the following steps to set whether a date interval moves into the future or the past 1. years and periods Years Calculation date 3/13/2012 Starting point 1/1/2012 After adjustment 1/1/2012 1-21 . Indicate whether the interval should move into the future or into the past. (File > Tools > Session Date). Procedure: Create Date Intervals . The choices are reflected in the After adjustments field. months. months. The number is multiplied by the time units in the Days. years and periods Years Calculation date 3/13/2012 Starting point 1/1/2012 After adjustment 1/1/2012 Field Value Before Year Start/End Start +/- -1 Days. The +/field is based on the Before field. From the Date intervals form. click the General tab. The number of units is displayed in the +/. Years or periods field.field. 2. Changing the system date. will change all the values in the Date calculation area of the form accordingly.field.Chapter 1: General Ledger Setup NOTE: The Calculation date field is equal to the system date. years or periods field.field and the Days. 3. The following examples are of the +/. Months.

Procedure: Create Date Intervals . 1. From the Date intervals form. in the Locked start field. 2. 1-22 . The following examples are of the After field and the Start/End field. Select a time unit to determine the start date or the end date of the From date field in the After field. click the General tab.Locked Start Perform the following steps to use a specific date. Field Value After adjustments 4/17/2012 After Fiscal year Start/End Start From date 1/1/2012 Field Value After adjustments 4/17/2012 After Quarter Start/End End From date 6/30/2012 Procedure: Create Date Intervals . Enter a fixed start date. The From date field is based on the value in the After adjustments field. Years or periods field is empty.After Follow these steps to select the basis for adjustment of the date in the After adjustments field. From the Date intervals form.Financials I in Microsoft Dynamics® AX 2012 NOTE: If the +/. the After adjustments field equals the starting point value. All other values are overwritten. and the value is transferred to the From date field. and can be the start or the end date of a time unit selected in the After field 3. 1. Months. Select whether the time unit in the After field should be set in the beginning or the end of the time unit in the Start/End field.field and Days. click the General tab. 2. The From date is used as the basis of calculation in financial statement columns.

Click the New button to create a new reason. auditors or managers frequently want to see reasons recorded for various transactions such as reversals. Reason codes can be used with the following: • General ledger • Accounts payable • Accounts receivable • Bank Procedure: Create a Reason Code A reason code can be selected in the following General ledger entry processes: • General journal entry • Process allocation requests • Elimination proposal • Consolidation. To access the Reasons form. 2. Online periodic Perform the following steps to create a General ledger reason code: 1. For example.Chapter 1: General Ledger Setup Reason Codes Reason codes are standardized codes that can be used in various transaction types or changes to field values to provide background data about the transaction. 3. click Setup. you have guidelines for which codes to select from. When you use standard reason codes instead of transaction text. 1-23 . and then click Ledger reasons. Enter a unique Reason Code as identification. click General Ledger. Standard reason codes also allow management and auditors to analyze transaction history by specific reason.

Financials I in Microsoft Dynamics® AX 2012 4. You can change the default reason comment. 4. FIGURE 1. click Setup. click General Ledger. and then click Ledger reasons. click Setup. Perform the following steps to modify a reason code: 1. 1-24 . 2. The Default comment and Account types can be changed. Clear the Ledger check box. The comment entered here is displayed as the default comment when you select this reason in transactions. 1. 2. Select the Reason Code to be deleted. and is unable to be used. Select the Reason Code to modify. As soon as the Ledger check box is cleared. To access the Reasons form. Modify the Default Comment for the reason code. and then click Ledger reasons. Enter a Default Comment for the reason code. Procedure: Delete a Reason Code Perform the following steps to delete a reason code. the reason code is no longer displayed in the General ledger transaction entry forms. To access the Reasons form. click General Ledger. 3.9 LEDGER REASONS FORM Procedure: Modify a Reason Code Reason codes can be modified at any time.

• Can be used throughout the system. If the Reason code has been selected for use from another module.Chapter 1: General Ledger Setup 3. Financial Dimensions Financial dimensions have the following characteristics: • Provide a more detailed description of a transaction. the Controller at Contoso Entertainment USA. • Enable you to view the data file from different perspectives to improve the effectiveness in tracking figures across accounts. • Simplify the accounting process when you enable detailed analysis without the creation of a detailed Chart of Accounts. Click the delete icon. 4. he decides to set up dimensions as a supplement to voucher and account numbers. Therefore. Ken wants to make reports and sales statistics inquiries based on cost centers and departments. clear the other Account type check boxes or view the Reasons form from Basic to clear all Account type check boxes. must analyze company figures from a perspective other than only ledger accounts. 5. • Are defined to analyze and classify financial transactions as follows: o o Financial transactions usually are organized according to voucher and account number. 1-25 . Clear the Ledger check box. You can delete a Reason code only if no account types are associated with it. Additional grouping and classification options are available when you assign several dimensions to transactions. • Add dimensions to base data such as: o o o • Ledger accounts Customers Vendors Are copied to transactions automatically. Scenario Ken. Click Yes in the Confirm deletion dialog box.

5.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Financial Dimension Perform the following steps to create a new financial dimension. For example. 8. Enter the name of the financial dimension in the Dimension name field. and then click Financial dimensions. For example. select Projects. to create dimension values for projects. Click the Financial dimension values button to enter more details about the financial dimension. In the Use values from field. A dimension value will be created for each project name. A format mask limits the amount and type of information that you can enter for dimension values. 1-26 . 6. 3. This field is available only when you select < Custom dimension > in the Use values from field. 4. you could enter XXX. To access the Financial Dimensions form. click General ledger. Financial dimension values will be created from this selection. if the dimension value should be 3 characters. select a system-defined entity to base the financial dimension on. 7. enter the name of the financial dimension to be displayed as a column name on reports. click Financial dimensions. click Setup. 1. Click the New button. In the Report column name field. enter a format mask to use for creating financial dimension values. 2. In the Dimension value mask field.

FIGURE 1.Chapter 1: General Ledger Setup 9. in which you can enter text to be displayed in different languages for the selected financial dimension. NOTE: Depending on your selection in the Select the level of dimension value to display field. You also can set specific options for dimension values based on the chart of accounts or legal entity specified. You can set options for dimension values that can be shared between a chart of accounts and a legal entity. 10. Click Main account translation to open the Text translation form. 1-27 . Click the Translations button to open the Text translation form.10 FINANCIAL DIMENSIONS Financial Dimension Value Details Use the Dimension Values Detail form to set up the details for financial dimension values. Click the Financial dimension values button in the Financial dimensions form to enter detailed values. some fields will not be available Field Description Dimension Value Displays the financial dimension value for the dimension selected in the Dimension details form Description The description for the financial dimension value. in which you can enter text to be displayed in different languages for the main account.

1-28 Field Description Active from Enter or select the date that the financial dimension value is active from. Active to Enter or select the date that the financial dimension value is active to. If you select Shared value. If you select Chart of accounts. If you select Companies. You cannot suspend a financial dimension value that is assigned as a budget group account on another account. . Group Dimension Enter a group dimension name.Financials I in Microsoft Dynamics® AX 2012 Field Description Select the level of dimension value to display Select the level of the financial dimension value to display. This field is available only when Shared value is selected in the Select the level of dimension value to display field. This field is available only when Shared value is selected in the Select the level of dimension value to display field. some fields will not be available and you can override the shared information for the selected chart of accounts. Owner Select the employee number for the employee who is responsible for this financial dimension value. fields that can be shared between a chart of accounts and a company are displayed. Suspended Select this check box to prevent all postings to the selected financial dimension value. You can the values for a specific chart of accounts or legal entity by selecting Chart of accounts or Companies. Calculate total from multiple dimension values Select this check box to sum up amounts from one or more dimension values. Financial Dimension Value Details General Expand the General tab to enter general parameters detail for the dimension. If you leave it blank then it uses the beginning of time. This can be used to group specific financial dimension values into the same dimension value when you consolidate legal entities. If it is left blank. it uses the end of time. and additional fields specific to the selected company will be displayed. some fields will not be available. you can override the shared information for the selected company.

revenue and expenses are displayed in both credit and debit balances so that credit balances have a minus sign and debit balances have no sign. Italics Select to print the selected financial dimension in italic type on the financial statement. for a definition that shows the current balance. Underline text Select to underline the text when the selected financial dimension is printed on the financial statement.Chapter 1: General Ledger Setup Field Description Do not allow manual entry Select this check box to prevent a user from manually entering a value for this financial dimension in journals. For example. Line above Select to precede the selected financial dimension with a blank line on the printout of the financial statement. Bold Select to print the selected financial dimension in bold type on the financial statement. Underline amount Select to underline the amounts when the selected financial dimension is printed on the financial statement. if you enter a 2 in the Number of columns field in the Financial statement form. Financial Statement Formatting and Cost accounting tabs become available. Typically. the balance for this financial dimension will be printed in 2 columns. When this check box is selected. Companies If Companies is selected in the Select the level of dimension value to display field. the minus sign in front of revenue on the report is not displayed. This field is available only when Shared value is selected in the Select the level of dimension value to display field. Line below Select to follow the selected financial dimension with a blank line on the printout of the financial statement. The following describes how to use each of the fields in the expanded Financial Statement Formatting tab: Field Description Invert sign Select this check box to hide the minus sign on the financial statement report when this financial dimension is represented. Column Select the column number that the financial dimension is printed to when the financial statement is printed. 1-29 . You can define how many columns will be used to print a single column definition.

Blocked for allocation Select this check box to prevent a user from entering an allocation in Cost accounting for this financial dimension. Financial Dimension Templates Dimension templates may be used for common patterns used to distribute source document amounts. Select General Ledger. The information in the template will be used to display default financial dimension values when you distribute source document amounts. . Template percentages and dimension values Enter the percentage to apply to the distribution. then Financial dimension default templates. Blocked for distribution Select this check box to prevent a user from entering a distribution in Cost accounting for this financial dimension. Blocked for service transactions Select this check box to prevent a user from entering a service transaction in Cost accounting for this financial dimension. Use the Financial dimension default templates form to create a template of percentage and financial dimension value combinations. Financial dimensions Select the dimension to use with the percentage to apply to the distribution. Use the following table to enter the appropriate information: 1-30 Field Description Template ID Enter an identification for the template.Financials I in Microsoft Dynamics® AX 2012 The following table describes how to use each of the fields in the expanded Cost accounting tab: Field Description Blocked for cost transactions Select this check box to prevent a user from entering a cost transaction in Cost accounting for this financial dimension. click on Setup. then Financial dimensions.

you can assign them to the following: • Ledger accounts • General ledger transactions • Accounts Receivable transactions • Customers • Accounts Payable transactions • Vendors For example. the defined dimensions are populated on the sales order automatically. but the values can be changed.Chapter 1: General Ledger Setup Financial Dimension Entry After dimension values are set up. For example. Throughout Microsoft Dynamic AX. customer 4037 may be set up by department and cost center dimensions. you can separate data in different ways by using dimensions. 1-31 . you can attach a department number to each transaction and then run a query that shows balances by department code. When a sales order is created for customer 4037.

Expand the Financial Dimensions FastTab. Select account 605110.Building maintenance Step by Step 1. click Common. the Accounting Manager. Cleaning expense. 3. the President and CEO. at Contoso Entertainment USA (CEU) has been asked by Charlie. and purpose. make sure that transactions posted to the cleaning expense account (605110) always specify: 1. for monthly financial reports by department.Assign Ledger Account Dimension Values Scenario Phyllis. 4. Click General ledger. Select CEU in the Companies field. 7. Cost center dimension . Select Companies in the Select the level of main account to display field. 1-32 . and click the Edit button. cost center. Close the form. You may have to click on the green cross icon to select the company. 5. 2. Need a Little Help? To guarantee the accuracy of the financial reports.3 . In the Cost center field.Financials I in Microsoft Dynamics® AX 2012 Lab 1. and then click Main accounts. Challenge Yourself! Help Phyllis enter the necessary dimension validation options for account 605110. Phyllis has determined that cleaning expenses for the building should always be recorded to the Building maintenance cost center. 6. click the arrow to select the Building maintenance account.

The selection of a secondary financial dimension set is limited to focuses that do not share a dimension type with a primary dimension set. Financial dimension sets also drive the data displayed in the Trial balance list page. the considered financial set is the composite of Department and Cost center. Sara decides to create a dimension set that consists of ledger accounts and departments dimensions. must: • Analyze financial transactions based on dimensions and ledger accounts combined. The secondary financial dimension set details the figures of the primary dimension set. the set Department and Cost center indicates that the Department dimension type is first and Cost center second. The defined financial dimension set can be used alone or in pairs when inquiring or reporting on financial transactions. Department amounts are presented first and Cost center amounts are presented second. To view the sales revenue for all departments in CEU. Financial dimension sets are used to determine how reports and inquiries related to the general ledger are rendered. the Chief Financial Officer (CFO) at Contoso Entertainment USA (CEU). For example. Balances are stored based on the financial dimension set and are calculated based on the option to calculate with posting or batch schedule. The selection of a primary and secondary financial dimension set is considered when presenting the results. Therefore.Chapter 1: General Ledger Setup Financial Dimension Sets Financial dimension sets have several purposes. • Determine how financial transactions should be organized when users run reports and make inquiries. Scenario Sara. these cannot be select in the secondary financial set. if the primary dimension set is the composite of Main account and Department. Sara views sales revenue for each department or country. The order in which financial dimension sets are considered in reporting effect how transactions are sorted and fields are presented. For example. 1-33 . Balances can also be scheduled for calculation or manually updated. Financial dimension sets are used to calculate balances during the posting process. Therefore.

Expand the Financial dimension FastTab. 4. and then click Financial dimension sets. Generated allocation is the distribution of posted or fixed amounts to combinations of destination accounts and dimensions at any time. which generate new journal entries. The financial dimension that is the primary row pattern (primary financial set) must be listed first.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Financial Dimension Set Perform the following steps to create a dimension set: 1. 3. click General Ledger. click Setup.11 DIMENSION SETS FORM Period Allocations Allocation is the process of distributing monetary amounts to one or more accounts or account and dimension combinations. Click the arrows to add the dimensions to the Selected dimensions pane. click Financial dimensions. For example. and the dimension shown within each primary row must be listed second (secondary financial set). 2. Enter a descriptive name in the Name field. Select one or more dimensions in the Available dimensions pane that should be included in the financial dimension set. to print a report that displays sales revenue per department. To access the Financial dimension set form. Enter a unique identifier to name the new dimension set in the Financial dimension set field. the department dimension should be selected first and ledger accounts selected second. Microsoft Dynamics AX has the ability to use predefined allocation rules to perform generated allocations. At least one dimension must be selected for each financial dimension set. 1-34 . 5. FIGURE 1.

including: • Basis • Fixed percentage • Fixed weight • Spread even Allocations also provide the ability to allocate across multiple companies. • The Destination defines how the results of the allocation calculation must be distributed to the destination distribution lines. When Phyllis has finished writing the document. the Accounting Manager at Contoso Entertainment USA (CEU). Phyllis enters 12/31/2012 as the end date for the rule. Because Phyllis does not want the new rule to be used until then. The rule is for the new fiscal year that begins on January 1. • The Source data for the allocation is also known as the allocation pool. Scenario Phyllis. she attaches a copy of it to the rule. Phyllis enters detailed notes about the basis and reasons for the allocation rule. creates a new Intercompany allocation rule for Electric Utilities to distribute overhead utility expense to each department based on fixed percentages. Anyone who wants additional information about the rule can open the document or print an Allocation rules definition report. 2012. • Offset entries balance the destination distribution lines. Because CEU typically reviews its allocation rules every fiscal year. she enters 01/01/2012 as the start date for the rule. Each ledger allocation rule has the four primary components: • The General settings dictate which fields are available in the rule tabs. Ledger Allocation Rules Ledger allocation rules allow you to define the results you want in the allocation business process. Phyllis then selects the Microsoft® Word template that was implemented when CEU experienced an audit review to document the allocation rule completely. 1-35 . also known as Intercompany allocations.Chapter 1: General Ledger Setup Allocation rules have numerous calculation methods.

if the allocation rule is available to be processed. Click General ledger.General Perform the following steps to complete the setup of allocation rule general settings. and then click Ledger allocation rule. FIGURE 1. 6.12 LEDGER ALLOCATION RULE FORM Procedure: Create a Ledger Allocation Rule . 2. 3. From the Ledger allocation rule form. 2. 4. click Setup. These dictate what fields are available in the rule tabs. Click the New button to create a new rule. 1-36 . select the General tab. Review or change settings from the Overview tab in the Identification and Administration sections. Select the Active check box. 5. Enter a Description of the rule. 3. click Posting.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Ledger Allocation Rule Perform the following steps to create an allocation rule: 1. Enter the Rule as identification. 1. which displays the date when a user last processed the allocation rule and created distributions. Optionally select the Effective start date and Effective end date for the rule. View the Date last run.

For example. If Fixed value is selected in the Data source field. Select the Allocation method: o Basis: Defines how and in what proportion the source amounts are distributed to the various destination lines.Chapter 1: General Ledger Setup 4. 8. select an arithmetic operation to apply to the source value in the Mathematical operation field. Select the Intercompany rule check box if the allocation rule involves being processed among multiple companies. FIGURE 1. in which the cost of corporate advertising expense is shared across all departments. o Fixed percentage: Takes criteria defined in the allocation source and uses a fixed percentage amount that the user entered. GENERAL TAB 6. o Spread even: Takes criteria defined in the allocation source and disperses the amount evenly across the destination distribution lines. If Ledger is selected in the Data source field. o Fixed weight: Takes criteria defined in the allocation source and uses a fixed weight amount that the user entered. select the source of the amount to allocate: o Ledger o Fixed value 7. to determine the allocation amount for the destination. allocation based on revenue dollars. enter a value in the Fixed value field. 1-37 . to determine the allocation amount for the destination.13 LEDGER ALLOCATION RULE FORM. In the Data source field. 5. is based on each department's sales in proportion to total departmental sales.

2.Financials I in Microsoft Dynamics® AX 2012 9. 1-38 . all balanced for the chosen account or account-dimension combination will be selected for source allocation. 10. select the Source button. If Ledger is selected in the Data source field and either Multiply or Divide is selected in the Mathematical operation field. If Financial dimension is selected in the Field setting field. 1. 13. 3. select from the Keep account from list to use the source account. 4. If the Spread even Allocation method is selected. also known as the allocation pool. If a date interval is not selected. From the Ledger allocation rule form. enter the Amount by which to multiply or divide the source value. select a Financial dimension.Source Perform the following steps to complete the setup of settings for the allocation rule source. From the Field setting list select to allocate from an Account or account Dimension combination. select a date interval to determine the account periods used for the allocation rule source. Select an allocation Journal name. The Description displays the allocation journal description. 11. If the Spread even Allocation method is selected. Click New to create a new record. Procedure: Create a Ledger Allocation Rule . select from the Keep dimension form list to indicate if you want to use the source destination account and dimension or a user-specified destination account and dimension. If Ledger is selected in the Data source field. 12.

For example. Select the Dimension you want to allocate to. 4. 2. From the Ledger allocation rule form.Destination Perform the following steps to complete the setup of allocation rule destination settings. select the Destination button. In the Source criteria field enter the account or dimension information from which to allocate. users can change this field. 1-39 .14 LEDGER ALLOCATION RULE SOURCE FORM Procedure: Create a Ledger Allocation Rule . if the selected Financial dimension is Department and the source criteria = Admin.Chapter 1: General Ledger Setup 5. FIGURE 1. The Company field displays the company in which the allocation rule was created. You can use wildcard characters to specify accounts or dimension codes. 5. Click the New button to create a new record. If the allocation rule is an inter-company rule. the system displays information that includes the department dimension equal to Admin or a department dimension has not been specified. Select the account to allocate to in the To Account field. 1. which define how the results of the allocation calculation must be distributed to the destination distribution lines. 3.".

These define the offset entries that balance the destination distribution lines. 4. o User specified: The allocation process will use the specified offset dimension value.Offset Perform the following steps to complete the setup of allocation rule Offset settings. 3. 2. o Source: The allocation process will use the respective dimension value that was defined in source. select the Offset tab. o User specified: The allocation process will use the offset account value specified. select the Basis ID with which to associate the destination line. 1. 7. In the Offset dimension from field.Financials I in Microsoft Dynamics® AX 2012 6. select the Offset account. 1-40 . o Source: The allocation process will use the respective account defined in source.15 LEDGER ALLOCATION RULE DESTINATION FORM Procedure: Create a Ledger Allocation Rule . select where to find the offset account. From the Ledger allocation rule form. select where to find the offset account. In the Offset account from field. Select the Purpose dimension you want to allocate. FIGURE 1. If the Allocation method is Basis. If the Offset account from is set to User specified.

click Reports. description. OFFSET TAB Scenario Phyllis runs the Allocation rules definition report that details the allocation rules for the current year. 2. 1-41 . click General Ledger. and then click Allocation rules definition. The report contains details about each rule including the rule ID.16 LEDGER ALLOCATION RULE FORM. Select criteria such as Ledger allocation rule.Chapter 1: General Ledger Setup 5. usage information. click Base data. calculation method details. Procedure: Print the Ledger Allocation Rules Definition Report Perform the following steps to print the Allocation Rules Definition report: 1. effective start and end dates. click Various. If the Offset dimension from field is set to User specified. FIGURE 1. and other setup information. To access the Allocation Rules Definition report. select the dimension to associate to the allocation rule. From/To account number and dimension combinations.

click Journals. and then click Process allocation request. and then click Journal names. 2. click Setup. o Select Stop to create an error that indicates when a zero source amount is selected and stops the allocation process. where applicable. Click General ledger. you can process it and either preview or post an allocation journal. click Periodic. Select the action to occur if the allocation process generates a zero source amount. 1-42 . 1. Click OK to print.17 ALLOCATION RULES DEFINITION REPORT Scenario Phyllis runs an allocation proposal without posting it to review the allocation results and the detailed distributions that will be created based on the allocation rule used. Select an allocation rule. o Select Process to create destination distributions. If the results are accurate. Select the date to include ledger amounts for allocation in the As of date field. FIGURE 1. 3. To set up an allocation journal.Financials I in Microsoft Dynamics® AX 2012 3. Procedure: Process a Ledger Allocation Request As soon as an allocation rule is created. 5. 4. Perform the following steps to use the Process allocation request form to create an allocation journal. Phyllis posts the entry. Select the date to post the allocation journal to the general ledger in the GL posting date field. select General ledger. This date corresponds with the Date interval on the allocation rule.

select a posting preference.18 PROCESS ALLOCATION REQUEST FORM 1-43 . Click OK. FIGURE 1. NOTE: The Date last run field displays the last date a user processed an allocation rule and created distribution lines. o Select Proposal only to review allocation results without posting. 7. o Select Post only to post the allocation results directly to the general ledger.Chapter 1: General Ledger Setup 6. In the Proposal options field.

The course provides basic introductions to set up: 1-44 • Currencies and exchange rates • Fiscal calendars • Financial dimensions and financial dimension sets • Period allocations .Financials I in Microsoft Dynamics® AX 2012 Summary The General ledger setup course describes the initial setup to start working with Microsoft Dynamics AX financials.

1. it affects all users. ( ) True ( ) False 3. What effect does the value in the General round-off field have on the values in Microsoft Dynamics AX 2012? 2. Is it possible to post activity that uses a date for which a period has not been created? ( ) Yes ( ) No 4. What are reason codes? 1-45 . When you change the display currency.Chapter 1: General Ledger Setup Test Your Knowledge Test your knowledge with the following questions.

by referring to balances in other account-dimensions? ( ) Basis ( ) Fixed percentage ( ) Fixed weight ( ) Spread even 1-46 .Financials I in Microsoft Dynamics® AX 2012 5. Which allocation method defines how and in what proportion the source amounts are distributed to the various destination lines. What are the parts of an allocation rule? ( ) General ( ) Source ( ) Destination ( ) Offset 6.

1-47 . 2. 3.Chapter 1: General Ledger Setup Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.

2. What are reason codes? MODEL ANSWER: Reason codes are standardized codes that can be used in various transaction types or changes to field values to provide background data about the transaction. ( ) True (•) False 3. Which allocation method defines how and in what proportion the source amounts are distributed to the various destination lines. Is it possible to post activity that uses a date for which a period has not been created? ( ) Yes (•) No 4. What are the parts of an allocation rule? (√) General (√) Source (√) Destination (√) Offset 6. by referring to balances in other account-dimensions? (•) Basis ( ) Fixed percentage ( ) Fixed weight ( ) Spread even 1-48 . When you change the display currency. it affects all users.Financials I in Microsoft Dynamics® AX 2012 Solutions 1. What effect does the value in the General round-off field have on the values in Microsoft Dynamics AX 2012? MODEL ANSWER: The value are used to round all amounts in all modules. 5.

It captures financial information to make good financial decisions. • Set up advanced rules.Chapter 2: Chart of Accounts Setup CHAPTER 2: CHART OF ACCOUNTS SETUP Objectives The objectives are: • Create. • Set up accounts for automatic transactions. Each account is assigned an account number as a unique identifier. • Set up account structures. or delete Main account categories. • Define main account information. The Chart of Accounts Setup course also shows all the reports and inquiries related to the Chart of Accounts. • Define administration information for the main chart of accounts. Additionally. • Define setup information for the main chart of accounts. Each main account contains the account structures used by the chart of accounts to define the valid combinations of main accounts and financial dimension values. edit. • Create a ledger. 2-1 . different allocation terms can be set up for an account to distribute the amount to several accounts and account-dimension combinations. close. and system accounts help users handle automatic postings. Introduction A Chart of Accounts is a set of main accounts tracked by Microsoft Dynamics AX®. • View inquiries and reports related to the Chart of Accounts. • Create a new account in the Chart of Accounts (COA). The chart of accounts is shared and is a list of main accounts and account structures that define a chart of accounts in use by one or more ledgers.

Current assets typically consist of cash. Scenario Phyllis. Phyllis uses the Main account category field. To perform this calculation. 3. and Inventory accounts. Use main account categories primarily for grouping or selection of ledger accounts for Cubes and Key Performance Indicators (KPI's). wants to include the Current Ratio on the Short-term solvency KPI report. To access the Main account categories form. Fixed Assets are not considered current assets. and marketable securities. Click the New button to create a new record. 2-2 . the Accounting Manager.Financials I in Microsoft Dynamics® AX 2012 Main Account Categories Main account categories can be used to better classify a general ledger account. click Main accounts. accounts receivable. Phyllis must sum the values of the Cash. Main accounts later added to the chart of accounts will also use the Main account category to automatically be included in existing calculations. over fifty ledger account categories are provided. inventory. Accounts receivable. Current Ratio is calculated by dividing a company’s current assets by current liabilities. By default. The following table shows the types of accounts defined in Contoso Entertainment USA: Ledger account Account name 110100 Cash 130000 Accounts receivable 140000 Inventory 170000 Fixed Assets To derive the Current Asset value. and then click Main account categories. Enter a unique name for the Main account category and a Description. Procedure: Create Main Account Categories Perform the following steps to create a General Ledger Main Account category: 1. click Setup. Current Liabilities consist of any liabilities that are payable within one year. cash equivalents. click General Ledger. 2.

Select a Main account type to associate with the account category. For more information. click the Link main accounts button. To link an account category to a main account.1 MAIN ACCOUNT CATEGORIES FORM Edit Main Account Categories The Main account category. refer to "Create a New Account . 2-3 ." FIGURE 2. After a Main account category is closed. select the Closed check box in the Main account categories form. Description. it cannot be linked to main accounts.Main Account Category. link a Main account category to an account from the Main account details form. 5. Select to continue or cancel. and Main account Type assignment values can be changed at any time for user-defined and default Main Account Categories. If you try to close a Main account category that is already linked to a main account. The purpose of selecting a Main account type is to reduce the lookup of available Main account categories when you create a new Main account within the Chart of accounts form. including any of the default main account categories. Close Main Account Categories To inactivate a main account category.Chapter 2: Chart of Accounts Setup 4. Or. a warning message listing the linked main accounts is displayed.

These structures determine the valid main account and financial dimension value combinations for the chart. as long as it is not assigned for use with Purchase Requisitions in the Accounts Payable Parameters form. additional main accounts can be created between the existing main accounts. consider the following: • What degree of specification is needed • How the Chart of Accounts must be structured • If external accountants offered any suggestions about the structure of the Chart of Accounts Make sure that there is sufficient space so that in the future. Before you create a company's Chart of Accounts. None of the default Ledger account categories can be deleted. Use the COA to do the following: • Create and maintain main accounts • Set standard parameters • Define the terms of allocation Plan the Chart of Accounts To create the COA. users should list accounts that group well together and group kinds of revenues. costs. The COA will provide the main accounts for the COA plus the account structures in use for the COA. and balance accounts.Financials I in Microsoft Dynamics® AX 2012 Delete Main Account Categories A user-defined Main account category can be deleted. Decide whether operating accounts must come before balance accounts or the other way around. 2-4 . Chart of Accounts The Chart of Accounts (COA) is the structured list of an organization's general ledger accounts.

Chapter 2: Chart of Accounts Setup Multiple Chart of Accounts It is common for large organizations to have the same chart of accounts used across multiple companies. such as the default sales tax code on the main account. FIGURE 2. the ability to inactivate financial dimension values for a specific company. The following entities/objects will have company specific data: • Main account • Dimension values The following elements make up the shared chart of accounts: • Chart of accounts • Main accounts • Account structures • Advanced rules • Financial dimensions • Financial dimension values Chart of Accounts Form The Chart of Accounts form is where where the list of main accounts can be viewed as well as the account structures in use by the chart of accounts. It is possible to define company specific data. Also.2 CHART OF ACCOUNTS FORM 2-5 .

respectively. Chart of accounts: Selecting this provides setup for the main account for the chart. Also to set up company specific data such as default sales tax codes. Companies: Selecting this provides the means to override specific data at the company level. It will be the shared setup. 3. default dimensions and financial statement formatting. It does NOT select which company can use the main account. 4. 2. Procedure: Create Main Accounts To create main accounts associated with a specific chart of accounts. and then click Chart of accounts. click the New from template to use a template set up in the Main account templates form. The chart of accounts also provides the main account and financial dimension value combination rules. Select either Chart of accounts or Companies in the Select the level of main account to display field. Enter the name and description in the Chart of Accounts and Description fields. enter the structure that main accounts must adhere to when they are created. Click New to create a new line. This field is optional. 2-6 . The main accounts contain the financial data about the activity of the legal entity. Enter an account number in the Main account field and enter an account Name. 3. click on the Main accounts FastTab and perform the following steps: 1. 1. In the Main account mask field. such as active from/active to dates. manage. 2. and view the organization’s chart of accounts. then click Chart of accounts. then click Setup. Click General ledger.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Chart of Accounts Use the Chart of accounts form to create. Click the New button.

Select one of the following options to enter as the Main account type: • Profit and loss. click the General FastTab to enter detail information. debit and credit controls. The profit and loss account is used for recording revenue and expenses. Revenue. The first level of detail consists of selecting a Main account type.Chapter 2: Chart of Accounts Setup NOTE: Depending on the selection of the Select the level of the main account to display. 2-7 . and related accounts. such as the main account category. You must select a main account type when creating the main account in the Main accounts form. The balances for these main accounts are rolled into the year end result account during the Opening transactions process. specific fields in the Main accounts form are available. and Expense – used as posting accounts. FIGURE 2. Expense accounts are used by budgetary control.3 MAIN ACCOUNTS Main Account Information Select information specific to the main account. The revenue and the expense accounts have the same function as the profit and loss account. Procedure: Select Main Account Type After the Main accounts header information has been established. The following main account types determine how the account is used in the chart of accounts. The sum of all operating accounts determines the year-end results.

Procedure: Debit and Credit Considerations Perform the following steps to enter additional information on the General FastTab. select the balance control criterion for the transactions on the current account. or Page header. To set the Main account category field value. and Equity – used as transaction accounts that record the amounts that a company owns or owes. if the account type is Profit and loss. You can select Header. in the DB/CR proposal list. liability. when transactions are entered in a journal for the account. The balances for these main accounts roll forward to the new year during the Opening transactions process. The pointer in the general journal is automatically positioned according to the choice. • Total – use this to add account intervals. If you use asset. If the field is left blank. if Debit control is selected. If an account is limited to only debiting or crediting. when the amount is a credit. Balance. select how the account is used for reporting. Revenue. 1. 3. Select if transactions in this account are usually debits or credits. This selection determines the result when you leave the Transaction text field in a transaction entry process. and equity accounts. the system checks this when it validates and posts the general journal.Financials I in Microsoft Dynamics® AX 2012 • Balance sheet. For example. or Liability. the accounts can have a higher degree of specification and you can more precisely structure reports about the company balance. In the Balance control list. select a main account category from the drop-down list. from the Chart of Accounts form. frequently it is useful to make a total of a range of revenue accounts to obtain a quick overview of the total sales for the current period when you run a financial statement. Asset. Select if an account is used only for debiting or for crediting in the DB/CR requirement list. the system makes sure that total amount of the journal transactions do not make the balance for the account go into a credit. Liability. For example. If you selected Reporting in the Type field. Cost. Asset. 2. a negative credit can still be entered. the debit is automatically proposed. Procedure: Main Account Category The Main account category field can be used to better classify a general ledger account. such as Key Performance Indicators (KPIs) or Microsoft SQL Reporting Services (SRS). Empty header. However. 2-8 . Ledger account categories are used primarily for grouping or selection of ledger accounts for business intelligence reporting. • Reporting – used for financial statement reporting.

enter the account number to which the opening balance should be transferred. 2. In the Opening Account field. 1. 2-9 . users are prevented from entering a value for this account. When you insert an account and then run the Opening transactions periodic job for a new fiscal year. Main Account Administration Information Select administration information specific to the main account. revenue. Select the Suspended check box to prevent all postings to the selected main account. the balance on the current account is transferred to the account that is specified in this field. 3. Select the Do not allow entry check box if a user should not be manually entering this account in a journal entry. Select an Active from date and an Active to date to set up a time frame when the main account is available for transaction and journal entry. you can settle certain costs from the same payment account without manually specifying the account every time. The SRU code is used specifically for Sweden and is only available when the legal entity's address is in Sweden. select the default offset account for an account in the general journal. By creating a default offset account. By selecting this check box. and cost accounts are set to zero when you create opening transactions. It is not possible to suspend an account that is assigned as a budget group account on another account. 2. If the entity is based in Sweden. In the Offset account field. NOTE: Only select asset or liability accounts in this field because profit and loss. Procedure: Allow Manual Entry In order to have control when a main account may be used in a journal entry there have been administrative parameters added to the setup of a main account.Chapter 2: Chart of Accounts Setup Procedure: Selecting Related Accounts Perform the following steps below to associate related accounts with the main account: 1. enter the SRU code in this field. 3.

the Accountant. the order processor in the Contoso Entertainment USA (CEU) Company. Use allocation for realized and budget transactions. In the Closing drop-down field. In the Allocation percentage field. If you have a shared view of the chart of accounts. 2-10 .Using Allocation Terms for a Main Account When Susan. 2. The Percentage in total field checks that the allocation does not exceed 100 percent. 1. • Capital – select this option for accounts related to cash flow forecasts and revaluation. for example. Scenario . posts a sales order. • Blank – leave the field blank to transfer the balance to the Difference field. Cassie. This functionality is only available for the Companies view (Select the level of main account to display field ) in the Main accounts form. the net amount is totaled. creates an allocation term so that every time there is a posting to the revenue account in question. 10 percent is allocated to the royalty account. The allocation feature is valuable when centrally administrated expenses must be distributed to. After allocation. • Result – select this option to update operating accounts. any remainder relative to the journal line is posted to the original account with the original dimensions. Procedure: Set Up Allocation Terms for a Main Account Use the Allocation check box to automatically distribute a transaction amount to different accounts. select how balances should be transferred to the closing sheet forms during the closing process. Perform the following steps to set up allocation terms for an account. During allocation to the given accounts. enter the percentage of the amount allocated to the specified account. To achieve this. individual cost centers. this option is not available. Allocation Terms Allocated transactions redistribute account balances from one account to one or more destination accounts or account-dimension combinations. 10 percent of the revenue posted must be allocated as a royalty payment.Financials I in Microsoft Dynamics® AX 2012 Closing Options It is important to define closing processes for the main account and how balances are distributed at the time of closing. • Balance – select this option for balance accounts. click the Allocation check box in the Main accounts form and then click the Allocation Terms button. To access the Allocation form.

• To be filled in . • Table . The system uses all lines where the dimension is empty or where it matches the given line.the field is not validated at the time of posting.the system verifies that the field is completed with one of the values that are defined on the Validation list button. For example. 3. set up an allocation term where any entry on the account allocates 50 percent between the two dimensions set up for expenses. Create a New Main Account . Expand the Source financial dimension criteria FastTab to select the financial dimension values to allocate from. • List .Validation Options There are four posting validation settings that can be defined for each account. Department. posting. and tax code validation information for each main account. To copy an existing allocation profile from another account to the selected account click the Copy button. Limit the allocation from the selected dimensions by using the drop down list for the Cost center.the system verifies that the field is completed for posting. 2-11 . Expand the Destination ledger account FastTab to select the financial dimension values to allocate to. user.Chapter 2: Chart of Accounts Setup Procedure: Select Allocation Criteria Perform the following steps to select allocation criteria: 1. Main Account Setup Information Set up currency. The value is not checked. and the Expense purposes. 2. This is the default setting. Posting validation can be set for the following: • Currency • User ID • Posting types • Sales tax (available if Companies is selected in the Select the level of main account to display field) Validation settings can be based on the following: • Optional . in a journal entry where a given expense is shared evenly between two departments.the system verifies that the field is completed for posting and that the value corresponds with the value specified in the account.

Main accounts. 3.Validation Options. In the Validate posting field. In the Posting type field. if appropriate. Depending on your selection in the Validate currency code field. click Main account on the Action Pane. select the default currency that is displayed when a line in the general journal is assigned the selected main account. The account structures are used to define the valid combinations. In the Currency field. then click the Setup FastTab." Configuring Account Structures Account structures consist of main accounts and can include financial dimension segments. specify the user who is authorized to post to this account. Common. refer to "Create a New Main Account . In the Validate user field." Procedure: Create a New Account . which together with the main accounts. The account structures allow you to define the sequence for the entry of the main account and financial dimension. 2. determine how the currency must be validated for posting. For more information. The Validate user field determines how User ID must be validated for posting.Validate Currency Perform the following steps to define currency information for a main account: 1. In the User ID list. 2.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a New Main Account . form a chart of accounts. 2. determine how User ID must be validated for posting.Validation Options.Validate Posting Perform the following steps to set posting validation for a main account: 1. determine the posting types allowed for the current account to make sure that only the defined posting types are accepted. Click General Ledger.Validation Options. 2-12 . For more information. a user can change the default currency on the journal line. determine how posting must be validated.Validate User Perform the following steps to specify authorized users for posting: 1. In the Validate currency code field. For more information. refer to "Create a New Main Account ." Procedure: Create a New Account . refer to "Create a New Main Account .

and then Configure account structures. Open General ledger. Click Add segment to add financial dimension to the structure from the list. Purpose. and Region. 5. balance sheet accounts may not require as many financial dimensions as profit and loss type accounts. 4. For example. 2. you might only be interested in Department. you might also want to track Cost Center. Click Activate once the validation is complete. it is required to be a segment in the account structure. However. Procedure: Configure Account Structures Perform the following steps to configure account structures: 1. Multiple account structures allow a company to track information for specific accounts while not affecting other accounts. 2-13 . click Chart of accounts. 3. Click Validate to check if you created a valid combination of financial dimensions. For balance sheet accounts. Save the record and close the form.Chapter 2: Chart of Accounts Setup NOTE: It is not required that the main account be the first segment in the account structure. Click the New button to create a new record. For profit and loss accounts. 6.

"Airline 2". Advance rule structures provide the financial dimension combinations that are valid for the advanced rule. For example. You could set up "Travel Expense" as the main account and create another financial dimension called "Airlines" and set criteria for that financial dimension such as "Airline 1". and "Airline 3".Financials I in Microsoft Dynamics® AX 2012 NOTE: This form can also be accessed from the Chart of accounts form. FIGURE 2. you want to track the travel expense account by the airlines.4 CONFIGURE MAIN ACCOUNTS Advanced Rules Advanced rules link a financial dimension or multiple financial dimensions to an account number or range of account numbers so additional information can be gathered for reporting and analysis. 2-14 . Now. you can easily track travel expense by each airline defined.

and select Advanced rule structures. select the Allow blanks check box to allow blank values for the segment in the advanced rule you are defining. Select the Specify which values are allowed option. Click Add segment to add another financial dimension to the structure. Open General ledger.Chapter 2: Chart of Accounts Setup Scenario: Create Advanced Rules Phyllis. Click the Filter icon under the new segment to define which values for the financial dimension are applicable for the selected rule. She needs to ensure that for the customer group (one of the financial dimensions)"80: Other customers" that only certain departments can be used. Click in the Enter a value field and then enter the desired value. 15. Select the desired Financial dimension from the list and then click Add segment. Click OK to save and close the form. enter a brief description. 9. is setting up the charts of accounts for Contoso Enterprise. Optionally. 5. 2-15 . Enter a unique identifier for the Advanced rule structure. 10. 6. Click Add segment to add financial dimension to the structure from. 3. 4. 13. 8. 12. 2. Click New to create a new record. Select the Specify which values are allowed option. 11. click Setup. For some of the accounts. the organization wants to track additional information that is not captured in the account structures. click Chart of accounts. 14. Click the Filter icon under the selected segment to define which values for the financial dimension are applicable for the selected rule. 7. Click in the Enter a value field and then enter the desired value. Select the next desired financial dimension from the list and then click Add segment. Procedure: Create Advanced Rule Structures Perform the following steps to create an advanced rule: 1. the Accounting Manager. and then click OK.

Select the advanced rule structure to use when the advanced rule is in use. 7. 17. Only active advanced rule structures are displayed. Select the account structure to apply the advanced rule. select the Allow blanks check box to allow blank values for the segment in the advanced rule you are defining. Optionally. FIGURE 2. and then select the appropriate options to create the criteria. To activate the advanced rule. 6. 5. Click OK to save and close the form. If the account structure is active. click Advanced rule. in the Setup group. 3. Click General ledger > Setup > Chart of accounts > Configure account structures.Financials I in Microsoft Dynamics® AX 2012 16. and click OK.5 ADVANCE RULES Procedure: Create Advance Rules Perform the following steps to create advanced rules: 1. NOTE: To add or edit advanced rules for an account structure. 18. you will receive a message and can change the status of the account structure from active to draft. 2. the account structure must be in a draft status. On the Action Pane. and you select to create a new advanced rule or edit an existing advanced rule. click Add. Click New. Click the Add filter button to add criteria. Enter an Advanced rule ID and Name. 2-16 . 4. 9. You might have to scroll down to view all of the criteria. 8. Click Activate to save the changes and make them effective in the ledger. you must activate the account structure by clicking Activate on the Action Pane in the Configure account structures form. On the Advanced rule structures FastTab.

In the Type field. select the type of ledger account alias. Each legal entity will have a separate ledger and it is possible to have multiple ledgers for each legal entity. currencies and fiscal calendar by multiple legal entities. The ledger also provides the means for sharing the chart of accounts. click Chart of accounts. If you select Shared. Go to General ledger. 2. 3. 4. click Setup. and one or more currencies. accounting currency. and then click Ledger account alias. Procedure: Create a Ledger Account Alias Use the Ledger account alias form to create or update ledger account aliases. 2-17 . Select the Company for the alias to be used in. a fiscal calendar. Creating multiple ledgers will provide a ledger for each legal entity which provides the chart of accounts. reporting currency and fiscal calendar for the legal entity. In the Leger account alias field. enter unique name. the ledger account alias will be available only for the user or user group selected in the User group or User field. 1. If you select User group or User. Select the account structure for the ledger account alias. the ledger account alias will be available for all users.Chapter 2: Chart of Accounts Setup Ledger Setup The term ledger is used as a system for classifying transactions for the general ledger using a chart of accounts.

Because payments to suppliers and other trade partners is restricted to this ledger (Example . and this secondary currency is required for consolidated reporting purposes. a secondary currency (of USD) is added because WMG’s ledger currency does not match the functional currency of CEU parent entity. She enters/selects the following ledger attributes: o Name: enters Waste Management Group Canada o Description: enters Corporate ledger 2-18 .Financials I in Microsoft Dynamics® AX 2012 5. WMG uses the same chart of accounts and calendar as CEU. 4. She creates a new Ledger by clicking File > New. Phyllis navigates to the Ledger form (General ledger > Setup > Ledger). FIGURE 2. 6. As such. Scenario .6 LEDGER ACCOUNT ALIAS FORM Scenario .Create Ledgers CEU has recently acquired a waste management company in Canada called Waste Management Group (WMG) for the purpose of proper disposal of all wastes as a result of plant manufacturing processes. WMG and CEU use different local currencies as CEU uses the USD currency and WMG uses the CAD currency. 3. Phyllis logs into WMG. Select the dimension that will be selected when you enter this ledger account alias for a ledger account in the Initial focus field. Select the values that will be displayed when the ledger account alias is entered in a ledger account definition field. 2.Add Business Entity To add the newly acquired business into the CES (Contoso Entertainment Systems) organization structure follow these steps: 1. Phyllis must indicate this when creating the ledger.payment transactions will not be allowed from other ledgers WMG may establish).

The ledger posting groups are attached to individual sales tax codes. Click the Ledger calendar button. 2-19 . 2. She enters the main accounts for posting. Click General ledger > Setup > Ledger. Procedure: Ledger Calendars The ledger calendar uses the details set up in fiscal calendars. To view details for the fiscal calendar that was selected in the Ledger form. 6. and view details for fiscal years that are part of that fiscal calendar follow these steps: 1. and the ledger posting groups determine the ledger accounts that the calculated sales taxes are posted to.Chapter 2: Chart of Accounts Setup o o o Financial Calendar: selects Fiscal Year Accounting Currency: selects CAD Reporting Currency: selects USD 5. She closes the form. Use this form to set up the ledger posting groups for sales taxes. Procedure: Create a Ledger Group To group multiple ledgers into a ledger group for ease of use in process management and reporting follow these steps: Click General ledger > Setup > Sales Tax > Posting Groups.

Use the drop down menu under the Period status field to set the period status. • Closed . Select a fiscal year in the left pane. Use the fields on this form to view period information and change the status of the periods. The details for the selected year are displayed in the right pane.Accounting transactions can be recorded in this period • On hold .7 LEDGER CALENDAR Procedure: Setting Period Statuses To view and control the period status. click Setup. Status . Expand the calendar tree in the navigation pane and click on the desired period 5.The three available statuses include: • Open . NOTE: A closed period cannot be re opened or put it on hold. 2-20 . follow these steps: 1. If a period has a status of Open. FIGURE 2. 2. and to select which users can post accounting transactions to specific periods.Accounting transactions cannot be recorded in the period. This status may be changed to Open or Closed. you cannot select Closed unless the previous period also has a status of closed. and then click Ledger.Financials I in Microsoft Dynamics® AX 2012 3. Click General ledger. 4.Accounting transactions cannot be recorded in the period. Click Ledger calendar on the top left corner of the form and it will open the desired calendar 4. Select the calendar from the drop down menu in the Fiscal Calendar field 3.

User group . 2. Click General ledger > Setup > Ledger. 7. when the module status is set to User group. Recalculate Calendars Use the Recalculate ledger periods form to validate the ledger period in the general journal. 2-21 . click Setup.All users are authorized to update in the module in the selected period. None. the modules that will not be adjusted are set to None. Select the calendar from the drop down menu in the Fiscal Calendar field 3. Click the Recalculate ledger periods button. A message will be displayed and you will need to update the closing transactions using the Close form. This sets all periods in a fiscal year to a Closed status.Chapter 2: Chart of Accounts Setup NOTE: When a fiscal year is being closed. Click General ledger. or User Group All . the reference to the ledger period will be updated in the general journal.Specific user groups are authorized to updates in the selected period. Expand the calendar tree in the navigation pane and click on the desired period 5. Click on the Module access level tab to expand the access level detail. In the Module user group area.No users are authorized to update in this module in the selected period. If the ledger period has been modified for the ledger. You can also select the Check journalizing check box in the General ledger parameters form if you want to verify whether periods are journalized before they are put on hold or closed Procedure: Select Authorized Users Follow these steps to select the users who are authorized to post transactions in a specific AX module. To recalculate ledger periods follow these steps: 1. For example. specify the user group that can make changes. you can select the Set fiscal year status to closed check box in the General ledger parameters form. 6. In the Access field select All. Highlight the line item of the Module Name you wish to grant access. None . 2. if a company wants to make some adjustments to a period. and then click Ledger. Click Ledger calendar on the top left corner of the form and it will open the desired calendar 4. 1.

click the arrow to select USD. use the arrow to select Balance sheet. click the arrow to select USD. 4. On the Setup FastTab in the Currency field. In the Name field. 5. click Main account. Option Value Main account 131150 Name Prepaid Rent Main account category Prepaid Expenses Currency USD Challenge Yourself! Use the table information to create a new Main account. enter Prepaid rent. In the Main account category field. Click General Ledger. use the arrow to select PREPAIDEXP for Prepaid Expenses.1 . and then click Main accounts. 8. use the arrow to select Balance sheet. In the Main accounts form. In the Main account category field. enter 131150. 2. Need a Little Help? 1. click Common. 3. 2. The prepaid rent is an asset for CEU.Enter a Main Account Scenario Ken is the Controller at Contoso Entertainment USA (CEU). In the Currency field. 9. 7. 4. In the Main Account type field. use the arrow to select PREPAIDEXP for Prepaid Expenses. 2-22 .Financials I in Microsoft Dynamics® AX 2012 Lab 2. The following table provides additional information. 6. In the Main account type field. Expand the Setup FastTab. CEU pays rent for a leased building two times a year. In the Main account field. Prepaid rent. create the new account 131150. 3. Step by Step 1. Click Close to close the form. In the New group on the Action Pane.

open the Allocation rules form by clicking the Allocation terms button. Double-click on the Main account 600200 in the Main accounts list page. entries posted to account 600200.00 9. Expand the General FastTab and select the Allocation check box. 10. 12. 2. and then click Main accounts. Click the Edit button. After locating account 600200. click Common. 5. 3. Click the Legal entity icon and select CEU. 2-23 . Allocate 50 percent from the Administration department to the Professional Services department. In the To account field select 600200. Repairs and Maintenance Expense. Close the Allocation form. On the Source Dimension FastTab. Set the Allocation rules terms according to the information in the scenario. Click the Allocation terms button. 2. On the Navigation Pane. 6. click General Ledger. and then use the arrow to select OU_4569 (Administration). select Specific. On the Destination ledger account FastTab. Need a Little Help? 1. In the Department field. In the Select level of main accounts to display field. Open the Main accounts form. 11.2 . 8. must be allocated between departments based on dimensions. In the Department drop down list.Chapter 2: Chart of Accounts Setup Lab 2. In the Percentage field enter 50. Challenge Yourself! Use the information in the scenario to enter the allocation terms for account 600200. 4. Repair and Maintenance Expense. Step by Step 1. 7. select Companies.Account Allocation Terms Scenario At Contoso Entertainment USA (CEU). use the arrow to select OU_2562 (Professional Services). 3.

The appropriate account for that kind of posting must be set up. 2. The following is a list of examples of Accounts for automatic transaction Microsoft Dynamics AX creates when you click the Create button: o Penny difference in reporting currency o Error account o Penny difference in accounting currency o Year-end result o Cash discount o Balance account for consolidation differences o Customer cash discount o Customer invoice discount 2-24 . through system accounts. click Setup. • The posting set up is discussed when each module is introduced. For example. this amount is posted automatically to an account for discounts. In the Accounts for automatic transactions form consider the following: • Specify the main accounts for automatic transactions that cannot be set up elsewhere in Microsoft DynamicsAX. click Posting. for example. when an invoice is posted where a discount is given. Click Create and the system automatically creates the most common system account types when you set up the system accounts for the first time.Financials I in Microsoft Dynamics® AX 2012 Accounts for Automatic Transactions The modules in Microsoft DynamicsAX are highly integrated and many postings are handled automatically. Create Accounts for Automatic Transactions Perform the following steps to set up automatic transaction accounts: 1. posting profiles in the Accounts Receivable and Accounts Payable modules. • There are other automatic accounts set up in each module. and then click Accounts for automatic transactions. Click General ledger.

NOTE: To interrupt updates with an error message when the error account is used in the posting process. Attach the relevant main account for each account for automatic transactions in the Main account field. 2-25 . The other accounts for automatic transaction are set up depending on whether that functionality is used. Penny Difference. 3. The name of the main account is automatically inserted in the Name field. Click New to create a new account for automatic transactions. 4. Click the Create button after you install a service pack to make sure you have all the latest default account types. new accounts for automatic transactions may be introduced. fixed receipt price profit NOTE: The Error Account.Chapter 2: Chart of Accounts Setup o o o Vendor cash discount Vendor invoice discount Order.8 ACCOUNTS FOR AUTOMATIC TRANSACTIONS FORM o o o Order invoice rounding Purchase invoice rounding-off Purchase. If a service pack is installed. freight Order fee FIGURE 2. select the Interrupt in case of error account check box in the General ledger parameters form. and Year-end Result accounts for automatic transactions are mandatory. if accounts are already created.

To offer a discount on the total invoice amount. a cash discount system account must be set up. Print the Chart of Accounts The Chart of Account report displays a list of all accounts in the Chart of Accounts. The entry includes an automatically generated transaction text that identifies the origin of the entry. and then click Chart of Accounts. vendor invoice discount. The entry also includes references to the user who created the entry and to the entry date and time. Audit Trail Inquiry Consider the following when using audit trail inquiry: 2-26 • Each ledger transaction is part of a voucher. Inquiries and Reports Related to the Chart of Accounts This lesson describes standard inquiries and reports and the relationship to the Chart of Accounts. the program creates an audit trail entry with a unique numeric identifier. click Reports. • When a voucher or group of vouchers is posted. .Financials I in Microsoft Dynamics® AX 2012 NOTE: To register or manually change a cash discount in the settlement process. or both must be set up. To print the Chart of Accounts report. click Base Data. a customer invoice discount. • Click the Voucher button to view the vouchers that are contained in the audit trail entry. click General Ledger.

click Reports. click General Ledger. 2-27 . • To correct an entry. Check the specific vouchers by clicking the transactions button. only one line is created in the audit trail. click Inquiries. FIGURE 2. make a transfer which then appears in the form. It is also possible to view balances from the Main account list page and the Trial balance list page. click Reports. • The entries result from posting transactions in: o o o Journals Sales and purchase orders Any other modules that post to ledger • The information in the fields in the ledger transactions cannot be modified.9 VOUCHER INQUIRY View Account Transactions When you view account transactions. To open the Balance list. click and then click Balance list. If a journal that consists of several vouchers is posted. and then click Audit Trail. consider the following: • You can use the Ledger transaction list to view a list of all posted transactions on the current account. click General Ledger. To open the Account Transactions form. View Account Balances To view a quick inquiry of ledger account balances in the system use the Balance list. and then click Ledger transaction List.Chapter 2: Chart of Accounts Setup To access the Audit Trail form. click Transactions. click General Ledger.

is the base of the General Ledger module. for example. This is practical and can be used to set up automatic posting of. The Chart of Accounts. It provides information about a company's financial state. and inquiries and reports related to these topics. Advanced Rules. Account Allocation Terms. percentage allocation of main account postings. 2-28 . Accounts for Automatic Transactions. covers the basic information about the Chart of Accounts. the central collection location for daily financial transactions. Allocated transactions redistribute main account balances from one main account to another destination main account.Financials I in Microsoft Dynamics® AX 2012 Summary This course. Chart of Accounts Setup.

Is the purpose of account allocation to use for realized transactions and budget transactions? ( ) Yes ( ) No 4. Is it possible to have the same chart of accounts used across multiple companies? ( ) Yes ( ) No 2. 1.Chapter 2: Chart of Accounts Setup Test Your Knowledge Test your knowledge with the following questions. Can using posting types reduce the risk of selecting a wrong account when you set up posting profiles? ( ) Yes ( ) No 2-29 . what considerations should be discussed? 3. Before creating a company's Chart of Accounts.

Which of the following system accounts are required to be set up? (Select all that apply) ( ) Error account ( ) Cash difference ( ) Year-end result ( ) Penny difference 6.Financials I in Microsoft Dynamics® AX 2012 5. Which tasks are completed from the Chart of Accounts in Microsoft Dynamics AX? (Select all that apply) ( ) Create accounts ( ) Set standard parameters ( ) Access transactions ( ) View a company's financial state 2-30 .

3. 2. 2-31 .Chapter 2: Chart of Accounts Setup Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.

Before creating a company's Chart of Accounts. Which of the following system accounts are required to be set up? (Select all that apply) (√) Error account ( ) Cash difference (√) Year-end result (√) Penny difference 6. what considerations should be discussed? MODEL ANSWER: -What degree of specification is needed -How the Chart of Accounts must be structured -If external accountants offered any suggestions about the structure of the Chart of Accounts 3. Can using posting types reduce the risk of selecting a wrong account when you set up posting profiles? (•) Yes ( ) No 5.Financials I in Microsoft Dynamics® AX 2012 Solutions Test Your Knowledge 1. Is the purpose of account allocation to use for realized transactions and budget transactions? (•) Yes ( ) No 4. Which tasks are completed from the Chart of Accounts in Microsoft Dynamics AX? (Select all that apply) (√) Create accounts (√) Set standard parameters (√) Access transactions (√) View a company's financial state 2-32 . Is it possible to have the same chart of accounts used across multiple companies? (•) Yes ( ) No 2.

• Set up journal controls. • Create journal texts. controls. Before you use financials in Microsoft Dynamics AX®.Chapter 3: Journal Setup CHAPTER 3: JOURNAL SETUP Objectives The objectives are: • Set up journal names. You can use journals quickly and efficiently when you set them up correctly. and texts. • Set up balance control accounts. • Set up General Ledger parameters. review the setup procedures for journals in this course. Introduction A journal is a worksheet that you can use before you enter postings into the system manually. The procedures explain the basic setup of journals such as journal names. 3-1 .

they can be the following states: • Changed • Reviewed • Approved • Deleted In Microsoft Dynamics AX. Set up journal names.Financials I in Microsoft Dynamics® AX 2012 Journal Setup There are manually generated journals and system generated journals in Microsoft Dynamics AX. You can apply an approval system so that special journals are posted only after they are approved. Examples of system generated journals are allocation journals and elimination journals. These journals are created automatically and are never created manually. Create journal lines and post transactions. 3. enter posting transactions in the journal and post it or transfer the journal for someone else to review and approve. In General Ledger. use journals for ledger posting. Before you can post a manual entry. In Accounts Receivable. When a new journal is created. When you use a manual journal entry the transactions are not posted immediately. create new journals by using the template that is associated with the journal type. Many of the modules in Microsoft Dynamics AX use journals for entering transactions. You can set up number sequences and attach them to the appropriate references. This means all the journals use the voucher series. use journals for postings. and other information that you set up. When you open a journal dialog box. you can use journals to do the following: • Control different kinds of entries. offset account. Use the journal setup for all new journals by using the name listed in Journal names. • Make sure that the necessary voucher series is set up before you create journals. Create a new journal. 2. • Review data imported from external ledger systems. 3-2 . Manual journals entries are generated by postings entered into the system such as a general journal entry. Working with Journals Working with journals is divided into the following three steps: 1. You can ensure that all valid fields contain a value and that all restrictions for the transaction are fulfilled.

Chapter 3: Journal Setup Journal Types The following are examples of journals: • Daily • Periodic • Invoice register • Approval • Customer payment EXAMPLE: Select a Daily journal type to create a journal for daily transactions.Overview Perform the following steps to set up journal names: 1. click General Ledger. click Journals. click Setup. To access the Journal names form. 3. 2. and then click Journal names. When you create new daily journals in General ledger > Journals > Journal Names. 3-3 . Enter a recognizable journal name in the Name field. Enter a description of the journal that clearly describes the purpose of the journal in the Description field. Procedure: Create Journal Names . the journal names with the journal type of Daily appear in the Name list.

The journal type determines what the journal is used for and in which module it is available. FIGURE 3.Financials I in Microsoft Dynamics® AX 2012 4. In the Approval area. Specify the users who can approve the journal in the Approve list. the customer payment Journal type is used only for customer payment journals.Approval The user responsible for journal routines sets up the approval system for each journal where approvals will be used. 3-4 . Select a journal from the Journal names form. and then click the General tab. select the Active check box if the journal must be approved before it is invoiced.1 JOURNAL NAMES FORM Procedure: Create Journal Names . 3. 2. The approval system enables journal transactions to be reported as one of the following: o Ready o Approved o Rejected. Select the type of journal in the Journal type list. NOTE: You can define approval options in the Journal names form on the Overview tab. Manual journal approval is available for all journals in Microsoft Dynamics AX Perform the following steps to define approval options for a journal: 1. For example.

either as a default account or as a manually entered account number. In the Voucher number area.Blocking Perform the following steps to restrict the use of a journal: 1.Workflow Approval Perform the following steps to define workflow approval options for a journal: 1. a new voucher is assigned for every line. o Manual: new voucher numbers are assigned manually. From the Journal names form. 3. In the Private for user group list. When you create a new journal a new voucher number is allocated automatically. select when a new voucher number is assigned. NOTE: You cannot use both the manual approval system and the workflow approval system for the same journal name. o One voucher number only: only one voucher number is employed for all journal lines. specify if the journal should be available for only a limited group of people. select from the following: o In connection with balance: if an offset account is not entered. From the Workflow field. select a user group to restrict the usage of the journal.Chapter 3: Journal Setup Procedure: Create Journal Names . click the General FastTab. click the General FastTab. select the Approval workflow check box to start the workflow journal approval for the journal name. 2. 2. From the Journal names form. enter the workflow configuration to use for the workflow approval for this journal name. From the Journal names form. In the Blocking area. because every line balances. In the New voucher list. However.Voucher Number Perform the following steps to define voucher number options: 1. if an offset account is entered. Procedure: Create Journal Names . Procedure: Create Journal Names . General FastTab. 2. 3-5 . keep entering transactions with the same voucher number as long as the lines on the voucher number do not balance.

8.3. select that a daily journal always must have a bank account as the default offset account. 5. specify the default offset account type for the journal name in the Account type list. specify if the transactions in this journal name are Current. Specify the number of the external document in the Document field. and Tax Current is the default layer that is used the same as Operations for entry of transactions. where it can be associated with a document date. For example. In the Offset account proposal area.Offset Account Proposal Perform the following steps to define the offset account for the journal: 1. click Common. click the General FastTab. 3. 4. and then click Number Sequences. For example. the order is 1. Operations. In the Journal names form. The default value is Current. Select a default offset account for the journal in the Offset account list.Posting Perform the following steps to set up information about posting: 1.Financials I in Microsoft Dynamics® AX 2012 4. Set up information about journal posting details in the Posting area. 3. The Tax layer is where you record transactions that impact tax reporting.2. For example. the voucher number is generated automatically from the previous voucher number without gaps in the voucher numbers. Procedure: Create Journal Names . posting occurs automatically in the vendor summary account in General Ledger. These are part of the periodic financial reporting. 3-6 . click the General FastTab. Procedure: Create Journal Names . Select the Fixed offset account check box to prevent the default offset account from being changed. NOTE: In the Organization Administration Module. 2.4 and not 1. In the Posting layer. Select the Number allocation at posting check box to start voucher number allocation in journals at posting. when recording a vendor payment and specifying Vendor in Account type. a vendor invoice number that generated the voucher will appear on the journal lines. NOTE: The following posting layers can be used: Current. 2. For example. If the Continuous check box is selected in the Number sequences form on the General tab.3. Operations. or Tax. In the Journal names form. At the same time. offset posting occurs in the vendor account.

. Specify how many journal lines are allowed in the Lines limit field. select the default currency for the journal name in the Currency field. If the Currency or fixed rate fields are blank. Select the Delete lines after posting check box to delete journal lines when posting is finished. the fees are transferred into the journal set up on the bank account. the company currency setup is used for the journal name automatically. account number. Procedure: Create Journal Names .every instance of an account number in the journal lines is posted as a separate account transaction.keep fees in the actual journal for future posting. However. 4. . dimension.during posting of remittance journal. In the Journal names form. Select from the following options: o Keep fees in journal . for remittance. 5. the ability to inquire on posted journal lines is not saved. The fixed exchange rate is specified in the individual Journal forms on the Setup tab. and currency code contain the same values. 6. specify how journal lines should be summarized: o Details . 3. NOTE: Summation is not performed on transactions with sales tax. o Summary . and a new voucher number is allocated automatically. In the Detail level list. 3-7 . 2. Select how to handle the posting of fees in the Fees posting list. click the General FastTab. the fees are transferred into the journal set up in the Fee journal field on the bank account for the remittance. In the Currency area. Select the fixed rate check box if a fixed exchange rate should be used. If the number of journal lines exceeds the number specified in the Lines limit field. the journal lines are distributed into several smaller journals.Currency Perform the following steps to define journal currency options: 1. o Transfer fees. new voucher no. 7. This saves database space.during posting of remittance journal.Chapter 3: Journal Setup NOTE: Posting operations or tax transactions can be done in the closing period from the Closing sheet form. o Transfer fees. keep voucher no. The journal keeps the original voucher number.a summation of journal lines into one transaction is performed automatically during posting if voucher with date. for example.

In the Sales tax area. if specific users or user groups can only post the journals that the user or user group members entered or created. for example. select the Amount includes sales tax check box to include sales tax in the journal transactions when a sales tax group is set up. on a journal name basis. click the General FastTab. 3-8 .Financials I in Microsoft Dynamics® AX 2012 Procedure: Create Journal Names . However.Sales Tax Perform the following steps to define journal sales tax options: 1. In the Journal names form. Procedure: Create Journal Names . Procedure: Create Journal Names . 2. The dimensions are inserted automatically when you create new journals. another dimension is set up on vendors or customers. 2. and then click the Posting restrictions button. The total includes sales tax. In the Journal names form. the dimensions are overwritten if. Perform the following steps to define posting restrictions for a journal: 1. Set up default financial dimensions for the journal names. Posting restrictions can be defined by user group or user.Financial Dimensions Perform the following steps to define journal dimension options: 1. click the Financial dimensions FastTab.Define Posting Restrictions Click the Posting restrictions button on the Journal names form. Select a journal from the Journal names form. The posting restrictions feature enables an organization to specify.

Chapter 3: Journal Setup 2. Because of this posting restriction assignment. select the restrictions for users. Journal Controls Set up journal control options to set up posting rules for the journal name. the Accounting Manager. click Journal names. and then click the Journal control button. To access the Journal control form. 3. Phyllis must clear the posting control for Arnie so that he can post to all AR journals. Scenario Contoso uses journal control to set up limitations to certain journals. Phyllis. If <All> is displayed. click Journals. Select the company accounts that allow posting for the current journal in the Company accounts list. click Setup. decides to allow Arnie to post all AR journals. 3-9 . For example. and the customer payment journal allows only customer type postings. there are no posting restrictions by account type for the journal. In the How do you want to set up posting restrictions? field. click General ledger. If the user is not assigned to a posting restriction. 2. he or she can post all journals for the journal name. is a member of the AR user group. specify what type of account the journal may be posted to. members of the AR user group can post AR journals that only they created. Select from the following: o By user group o By user o No posting restrictions For example. Use the Add button to add detail information. The AR user group has been assigned to a posting restriction for AR journals. In the Accounts type list. Procedure: Set Up Journal Controls Perform the following steps to set up controls and posting rules for a journal: Which account types can be posted? section: 1. the Accounts Receivable (AR) Manager at Contoso. Arnie. 4. the bank journal name is set up so that it is only possible for users to make bank account postings. not only those that he created. Restrict journal posting to the user who created the journal for those who are assigned the control.

Procedure: Create Journal Descriptions Perform the following steps to set up standard journal texts: 1. 5. 3. Select a Company account to determine which segment accounts are available for this journal. and then click Journal descriptions. click General ledger. 2. Journal Descriptions Use journal texts to enter and reuse transaction texts when you record in journals. in the Identification field. Use the Add button to add detail information. 3-10 . all ledger types are valid for the selected journal. You can save the transaction texts in a table with a search name so that you can reuse the transaction text.Financials I in Microsoft Dynamics® AX 2012 Which segment values are valid for this journal? section: 1. click Journals. Select the Ledger type that is valid for the selected journal. Click the New button to create a new record. Users frequently enter the same transaction text every time they post a certain transaction. users transfer from petty cash to bank or payment of invoice number. To access the Ledger journal descriptions form. You can use the identification as a hotkey together with the search name when you enter the transaction texts. Enter an ID for the transaction text. Select the From and To value to determine the starting main account and the ending main account values that are valid for the selected journal. 2. For example. Select the Segment that is valid for the selected journal. If <All> is displayed. click Setup. 4. These fields are available only when Ledger is selected from the Company accounts list in the Which account types can be posted? section. 3.

The expected balance includes posted and unposted journals. Scenario Phyllis. verifies the expected balance of the bank account to make sure the balance is sufficient to pay invoices. April.Chapter 3: Journal Setup 4. These include bank accounts and petty cash accounts. For example. Enter a short. the Accounting Manager at Contoso. the Accounts Payable Coordinator. The search name frequently resembles the value in the Identification field. You are not required to set up balance control accounts to work with Microsoft Dynamics AX. FIGURE 3. 3-11 . After Phyllis has set up the balance control accounts. enter: o 1 in the Identification field o Daily in the Search name field o Daily transactions in the Transaction description field Microsoft Dynamics AX automatically finds the text Daily transactions if 1 or Daily is entered in the Transaction description field in any Journal lines form. wants to track the current and expected balance of liquidity accounts better.2 LEDGER JOURNAL DESCRIPTIONS FORM Balance Control Accounts Use the Balance control accounts form to monitor the current and expected balance on an account as transactions are entered in a journal. memorable name in the Search name field.

The Balance control form displays the following: 3-12 • The balance before journal • The posting transaction • The balance after journal • The effect on the account from other journals • The balance after posting this and other journals . select the main account for balance control. 2. FIGURE 3.Financials I in Microsoft Dynamics® AX 2012 Procedure: Set Up Balance Control Accounts Perform the following steps to set up balance control accounts: 1. 3. In the Main account field. Click the New button to create a new record. click General ledger. and then click Balance control accounts. click Setup. The Name field is populated with the Account name of the main account.3 BALANCE CONTROL ACCOUNTS FORM Procedure: View a Balance Control When you add a main account to the Balance control accounts form. click Posting. bank accounts are included in the balance control. By default. To access the Balance control accounts form. The account is typically a liquidity account. you can verify the effect of the postings on the main account in question.

Select the Check continuous numbers check box for the system to check for continuous numbers in the number sequences that generate vouchers in ledger.sets up the system to notify you if journal lines with different transactions dates have the same voucher number.prevents the use of different transaction dates for the same voucher number. From the Journal voucher form.Chapter 3: Journal Setup Perform the following steps to view the current and expected balance of a balance control account: 1. 3-13 . General Ledger Parameters The last part of the journal setup is performed in the General Ledger parameters form. 3. and then click General Ledger Parameters. select a journal. click Setup. and then click Balance control. o Reject duplicates within fiscal year . Click the Lines button. 2.uses different transaction dates for the same voucher number in the Transaction Date field in journal lines. In the navigation pane select Ledger. Procedure: Set Up General Ledger Parameters Perform the following steps to set up the general ledger parameters for journals: 1. If this option is selected. no missing numbers can be in the voucher number sequence. o Warn in case of duplicates . 2. then select one of the following methods to check the use of vouchers from the Check for Voucher used list: o Reject duplicate .allows for different transaction dates for the same voucher number in different fiscal years. Click General ledger. o Accept duplicates . 3. click the Inquiries button. From the Journal form.

You can number the journal by using the number sequences in the General ledger parameters form on the Number sequences tab. The number sequence is created in the Number sequences form. you can create general journal transactions. 2.Number Sequence Perform the following steps to set up the number sequence options for journals: 1.Financials I in Microsoft Dynamics® AX 2012 Procedure: Set Up General Ledger Parameters . and then click General ledger parameters. Click General ledger. FIGURE 3. Number sequences in the Journal names form are used for voucher numbers (journal lines). In the Number sequence code list. set up a number sequence for journal number transactions. The Reference is a unique key for the journals in the General Ledger module and acts as a batch number that links journal transactions together. When you specify the number sequence for the journal number reference.4 GENERAL LEDGER PARAMETERS NUMBER SEQUENCE 3-14 . Select Number sequence in the navigation pane and then select a Number sequence code. click Setup.

In Journal type. Journal Option Value Vendor Journal Name of Journal Day3 Description Vendor Invoice Journal Type Daily Voucher Series Acco_18 Account Type Ledger Name of Journal PerRent Description Rent Journal Journal Type Periodic Voucher Series Acco_23 Account Type Ledger Company Account ceu Rent Journal Challenge Yourself! Use the information in the table to set up the journals. One journal records vendor invoices daily and a second journal records where periodic rent entries will be recorded.Chapter 3: Journal Setup Lab 3. click Setup. 3. Need a Little Help? 1. 2. use the arrow to select Daily. enter Vendor Invoice. 4. In the Name field. The table provides additional information about the journals. and then click Journal names. enter Day3. 5. the Controller at Contoso.Set Up Journals Scenario Ken. Set up the Vendor Invoice journal. click Journals. Define a journal control for Company ceu. 3-15 .1 . Step by Step Perform the following steps to set up the Vendor Invoice journal. 3. Click General ledger. In the Description field. 1. Set up journal description for the Rent Journal. Set up the Rent Journal. Click the New button to add a line. 2. must set up two journals in Microsoft Dynamics AX.

9. 7. enter rent. In the Account type field. click Journals. Press the New button to add a line. use the arrow to select the first Acco_18. 4. 3. Close the form. In the New voucher field. In the description field. Click General ledger. In the Name field. enter rent. 6. 3-16 . 5. Close the Journal control form. verify Ledger is populated automatically. Click the Journal control button. From the Journal names form. 4. 8. use the arrow to select Periodic. 10. 11. verify that In connection with balance is selected. 3. Perform the following steps to set up the Rent Journal. In the Account type field. In the Journal type field. In the Description field. Notice the Search name defaults with the same value. 5. click Setup. click the arrow to select CEU. In the Voucher series field. 1. click the New button to add a line. 1. 8. Click the Add button in the Which account types can be posted? In the Company accounts field. 2. and then click Journal description. 2. In the Voucher series field. verify Ledger is populated automatically. In the Identification field. use the arrow to select the first Acco_23. enter Rent Journal. 9. Close the Journal names form. enter PerRent.Financials I in Microsoft Dynamics® AX 2012 6. 7. Click the General FastTab. Perform the following steps to set up journal text for the Rent Journal.

User rights are also an important consideration. For each journal type. accounts.Chapter 3: Journal Setup Summary Journal setup completion allows users to create journal and journal lines and record vendor and customer transactions. and modules. 3-17 . approval procedures for verification may be set up before any update. or delete) also allows for increased security for sensitive information. edit. With journal validation. add. you can lace restrictions on users. The level of detail stored in individual records and fields may be modified. Defining access permissions (read. It is also possible to set up journal validation and journal approvals for every financial journal.

What is the purpose of using Balance Control Accounts? 3-18 . Which of the following types of journals may be set up in Microsoft Dynamics AX? (Select all that apply) ( ) Daily ( ) Periodic ( ) Approval ( ) Annual 3. 1. What is the purpose of the Blocking function when setting up Journals? 2.Financials I in Microsoft Dynamics® AX 2012 Test Your Knowledge Test your knowledge with the following questions.

Which of the following would be used to monitor the current and expected balance on an account as transactions are entered in a journal. ( ) Journal names ( ) Journal controls ( ) Balance control accounts ( ) General ledger parameters 3-19 .Chapter 3: Journal Setup 4. _____: Create journal lines. Sequentially order the following steps for working with journals. _____: Create new journal. Step: _____: Post transactions. 5. _____: Set up journal names.

2. 3-20 . 3.Financials I in Microsoft Dynamics® AX 2012 Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.

1 : Set up journal names. What is the purpose of using Balance Control Accounts? MODEL ANSWER: -To monitor the current and expected balance on an account as transactions are entered in a journal. What is the purpose of the Blocking function when setting up Journals? MODEL ANSWER: To restrict the usage of a journal 2. Which of the following types of journals may be set up in Microsoft Dynamics AX? (Select all that apply) (√) Daily (√) Periodic (√) Approval ( ) Annual 3. 2 : Create new journal. 3 : Create journal lines.Chapter 3: Journal Setup Solutions Test Your Knowledge 1. Sequentially order the following steps for working with journals. Which of the following would be used to monitor the current and expected balance on an account as transactions are entered in a journal. 4. ( ) Journal names ( ) Journal controls (•) Balance control accounts ( ) General ledger parameters 3-21 . 5. Step: 4 : Post transactions.

Financials I in Microsoft Dynamics® AX 2012 3-22 .

• Create and Retrieve Periodic Journals. • General Ledger Transaction Reversal. • Create General Ledger Reversing Entries. and verify completed journals until they are ready for posting. 4-1 . • Enter General Ledger Transactions. • Post multiple journals. You also can choose whether to keep the used journals for historical purposes.Chapter 4: General Ledger Daily Procedures CHAPTER 4: GENERAL LEDGER DAILY PROCEDURES Objectives The objectives are: • Create General Ledger Journals. • Create Approval Journals. • Inquire and Report on Daily Journal Transactions. There are many ways to set up the journals to control different kinds of entries and to apply an approval system so that special journals post only after they have been approved. • Create a Voucher Template. A journal is a type of worksheet where entries do not post immediately. Introduction Every manual posting entered into Microsoft Dynamics® AX is entered through a journal. You can review. change. • Demonstrate data needed to create an Approval Journal. This course explains journal management and journal transactions in the General ledger module.

The description from the Journal names form is inserted automatically. and then click General Journal. The Journal batch number is created automatically from the number sequence set up in the General ledger parameters form. users enter the following relevant information for the transaction: • Posting date • Amount • Accounts to post to The information that users enter in a general journal is temporary and can be changed as long as it remains unposted within the journal. The journal number is inserted automatically from the voucher series set up in the Journal names form. 1. 2.Financials I in Microsoft Dynamics® AX 2012 General Ledger Journals Users can post transactions to the following accounts by using a general journal: • General ledger • Bank • Customer • Vendor • Projects • Fixed assets In a general journal. posted. Procedure: Create a General Ledger Journal Use the General journal form to create and view journals within the General Ledger module in Microsoft Dynamics AX. and the description comes from the Journal names form. but you can overwrite it. select Journals. or select the name from the journal name list for the general journal type. The Show list determines whether only open. 3. 4-2 . Perform the following steps to create a general journal entry. Click General ledger. Enter the name of the journal in the Name list. Click the New button to create a new journal in the General journal form. or all transactions display in the form.

To print the journal and other reports. The General journal form filters journals by the Show field. Click Lines on the menu bar to create a transaction. 4. click File. click the Print button. To inquire about transactions within a journal at any time. When you post the journal lines in either form. then click Save at the end of each line or use the down arrow to enter a new transaction line. To save the lines.Lines Perform the following steps to create the General Journal Lines: 1. You can select to display only open. 3. to change or add to any of the field information that is entered automatically from the Journal names form. all. the results are the same. FIGURE 4. 4-3 .1 THE JOURNAL FORM Procedure: Create a General Ledger Journal . for example the General or Financial Dimension tab. A transaction does not affect account balances until you post it. or posted journals. highlight the journal and click the Lines button. Use the tabs. 5. 2.Chapter 4: General Ledger Daily Procedures NOTE: The Posted check box is selected automatically after the journal has been posted. 6. Click Post in the General journal form or in the General journal lines form to post transactions to the General Ledger immediately after you create transactions.

Procedure: Enter General Ledger Transactions . Create a journal and view open. posting occurs in the specified vendor account. 1. NOTE: Set up default number sequences using the General ledger parameters form.Account Types Click the Overview or Setup tab to determine which type of transaction to create by using the Account type field. or all journals according to the selection in the Show list at the top of the form.use Ledger for transactions in a ledger account. A ledger account is debited or credited. Enter General Ledger Transactions . 4-4 . posted. when you record a vendor payment and specify Vendor as the Account type. If you set the number sequence to Continuous and you allow no user changes. Select one of the following account types to use for the general journal transaction in the Account type field: a. At the same time.use Customer for transactions to customers. then select General ledger parameters. Ledger . To do this. For example. Click the Lines button on the General Journal to open the Journal lines form. Refer to the Microsoft Dynamics AX Introduction manual for more information about number sequences. Customer . Follow these suggestions to select the account type. Use this tab to enter transactions in the General Ledger. click Setup. It contains the basic information needed to make a journal entry. c. Vendor . You must have the following information to create a journal entry: • Accounting date • Ledger account • Debit or credit amount • Offset account (can be entered on the same line or multiple lines) Use the Journal lines form to enter transactions within a journal. the voucher field is skipped automatically. posting occurs automatically in the vendor summary account in the General Ledger. and then an offset account is designated. b. click General Ledger.use Vendor for posting to a vendor account.Financials I in Microsoft Dynamics® AX 2012 Enter General Ledger Transactions Journal entries in Microsoft Dynamics AX are the same as any other type of accounting entry.Overview Tab The Overview tab is used to create entries.

use the following steps to enter the line item detail by selecting Lines on the menu bar. Also. NOTE: Set up the default offset account for an account in the Journal names form. then Post and transfer to transfer the line that contains errors into the next journal of the same type. 4. It is also possible to enter multiple lines to get a balanced voucher. Use the Offset account drop-down list to select an offset account to use with the transaction.Use Bank if a bank account transaction is involved.Chapter 4: General Ledger Daily Procedures d. 2. 4-5 .Accounts After you enter the account type. Fixed assets . Select an account number for the current account type in the Account field. Project . Enter the debit amount in the given currency in the Debit field. All of the correct lines will then post. Procedure: Enter General Ledger Transactions . you now can post the journal. Click Post. you will receive an error message and the journal will not post. 2. Procedure: Enter General Ledger Transactions . 3. set up default accounts and posting account restrictions in the Journal names form by clicking the Journal Control button. If the journal contains erroneous entries.use Project to post to a specific project number. Click Validate to verify that there are no errors before you click Post.Post Journal After you enter General Ledger transactions into the journal and you verify that the information is correct. then select Post the general journal to post without first validating. e. Bank . Enter the credit amount in the given currency in the Credit field. Perform the following steps to post the journal: 1. Use the Offset account drop-down list to select an offset account to use with the transaction. By creating a default offset account. 1. 2.use Fixed assets to post to a specific asset number. this field is populated automatically without specifying the account every time. f. Click Post.

3. 4-6 . Select the Totals check box to show total amounts in currencies for ledger accounts for every journal.Financials I in Microsoft Dynamics® AX 2012 Procedure: Enter General Ledger Transactions . 2. Click Print and select Journal or click on General Ledger. 5. The Print journal form prints a list of transactions for each journal. then click Print Journal and select the journal number you just created. such as invoice number and approval information. then click Journals. Select the Accrual schemes check box to identify accrued transactions. 4.View Results You can view the results of posting the journal by printing the journal. Select the Specifications check box to print additional information. Click OK to print the journal report. then click Reports. Perform the following steps to view the results: 1.

2. 4-7 . Enter a journal for the prepaid rent expense. Click the Post button on the Journal voucher form. After you enter the transaction information. Select the desired transaction description. post the journal.000. Use the information in the following table to enter the transaction. Need a Little Help? 1.00 USD for audio-visual equipment. 2011 Contoso paid 6. Select the journal name. Help Ken record the activity in the prepaid rent expense account in Microsoft Dynamics AX.1 . On June 30.Chapter 4: General Ledger Daily Procedures Lab 4. 3. Option Name of Journal GenJrn Journal Number Accept the System Default Description AV Equipment Account Description Invoice Debit 6000 Offset Account 110180 Challenge Yourself! 1. Scenario Ken is the Controller for Contoso.Daily Transactions This lab will demonstrate creating and posting transactions in a General journal. NOTE: Normal accounting procedures would not disburse a large payment from a Petty Cash account. 2. This account (number 110180) has been chosen to simplify this lab procedure.

click General ledger. 4. In the Journal batch number field. In the Description field. In the Date field. 3. enter AV Equipment. 2. click General journal. Post the Journal (Only if Fiscal Year has been set up): 1. enter 06/30/2011. enter payment. If a fiscal period has not been set up you will receive a message that you cannot post until setting up a fiscal period for this date. enter 6000. accept the system default. In the Offset account type field select Bank In the Offset account field. Click the Payment tab and in the Method of payment field select USA_EL. 2. In the Account field. select USA OPER. click Journals. 7. Click the Lines button. 4. If a fiscal year and period has been set up for this fiscal period you may click Post to post this transaction. In the Name field. Click the New button to add a line. select Vendor. 3. On the Navigation Pane. 10. In the Account type field. 5. enter 1001. In the Bank transaction type field select 02. 8. 9. 6.Financials I in Microsoft Dynamics® AX 2012 Step by Step Create the Journal: 1. click the arrow to select GenJrn. In the Description field. In the Debit field. 5. 4-8 . Create the Journal Lines: 1.

crediting 131100. 2. Note that this field may already be filled in. In the Description field. 9. Validate the journal in the Journal voucher form by clicking the Validate button. click the arrow to select account Ledger.00 USD. In the Debit field. enter 800. 7. select invoice. click Journals. for the expense. In the Account Type field. Help Ken validate the journal and review the balance control accounts online. click the arrow to select account Bank.2 . Step by Step Create the General Journal: 1. using the GenJrn journal. 3. click the arrow to select GenJrn. Challenge Yourself! 1.Daily Transactions with Balance Control This lab will demonstrate the use of the Balance control feature. 6. A journal is to be created. 2. 2. In the Description field. Review the balance control accounts online. Scenario Ken is the controller for Contoso. 12. On June 25. 10. In the Date field. enter 06/25/2011. Click the Lines button. 8. 4-9 . Press the down arrow key to add a line. 11. click General ledger. Enter a journal for office expenses. enter Electricity. In the Date field. Review the balance control accounts from the Journal voucher form by using the Balance control option available from the Inquiries button. accept the system default. 2011 he received an invoice from vendor for 800. 13. On the Navigation Pane. debiting the Bank Operating account and entering a second line. 3. 4. In the Name field. In the Journal batch number field. In the Account Type field.Chapter 4: General Ledger Daily Procedures Lab 4. using two lines of entry instead of an offset account. and then click General journal. Need a Little Help? 1. Click the New button to add a line. 5. Validate the journal. enter 06/25/2011.

An Infolog form displays. and then click the Validate. Validate the General Journal: 1. Close the General Journal form. Close the Balance control form. In the Description field. Note the display for the accounts. Review the Balance Control: 1.Financials I in Microsoft Dynamics® AX 2012 14. . 3. enter 800. enter invoice. Close the Infolog form. click the arrow to select account 131100. Close the Journal voucher form. Click the Balance control option. In the Account field. 5. 4. 4-10 Click the Inquiries button. In the Credit field. Click the Validate button. which provides information for issues in the journal that may affect posting. 16. 15. 2. 2.

3. the posting process posts vouchers without errors and transfers vouchers with errors to a new journal. Susan runs a journal batch job to post all the open journals at the same time. Open the Post journals form by clicking General Ledger. 4-11 . opens and creates multiple journals. You can also post multiple journals that you have created in the following modules by selecting the Post journals menu option: • General ledger • Accounts receivable • Accounts payable • Project You can post journals immediately or set them up as a job for batch processing. press ALT+F9 to delete a journal. Click OK to return to the Post journals form. click Journals. Scenario Contoso uses batch processing at the end of its business day to process large jobs. the order processor.Select Journals Follow these steps to post multiple journals: 1. 2. press CTRL+N to create a line. Click the Select button to open journals for multiple posting. click Periodic. When this check box is selected.Chapter 4: General Ledger Daily Procedures Posting Multiple Journals You can use the Post journals menu option to post multiple journals with large processes in a batch. 5. During the day. Susan. When necessary. The range is already set up to include open journals. Select the Transfer errors check box on the individual journal lines so that vouchers with errors do not delay the posting of vouchers without errors. At the end of the day. and then click Post Journals. To add a journal. Procedure: Post Multiple Journals . and then select the appropriate journal type and number. Manually add or delete journals from the resulting list of journals to be posted. 4. The journals are not posted in case Susan must make corrections or add more items to the journals during the day.

you may have to create several journals during posting. 1. The number of the first journal posted is saved automatically in each associated journal that you create.Financials I in Microsoft Dynamics® AX 2012 NOTE: If using batch job processing. By selecting this check box. NOTE: If Lines limit is set up in the Journal names form.2 POST JOURNALS FORM Procedure: Post a Journal Batch . start the posting again by using the same criteria for subsequent selection in the original request. NOTE: A power failure during posting can cause some journals to post while others do not post. Click OK to post the multiple journals. you may click the Late selection check box to build a query. Click OK to return to the Post journals form. 3. FIGURE 4. 4-12 . Click Insert All to apply the setting to all the selected journal lines or click User default to apply the setting to all users.Transfer Errors and Post You can configure the transfer of errors for just the selected lines by clicking Default values. and then click Apply. The journals that did not get posted appear in this form for posting. If this occurs. the journal does not have to exist prior to being selected for the batch processing job. and to have the system use all journals that meet the criteria for posting when the batch is run. 4. 2. Select or clear the Transfer errors check box in the Set up posting form.

The Delete posted journals form deletes all posted journals in the Journals form to free space. are authorized correctly. 1. the accounting manager. Click on the New button and enter the name of the journal that you use throughout Microsoft Dynamics AX in the Name field. Approval Journals To set up an unlimited number of journal templates. a sample of 100 daily journal transactions shows that less than half are completed correctly. The sample shows that in many instances. has decided to start the journal approval procedure to make sure specific user groups approve and validate the journals. Enter a description of the journal's purpose in the Description field. 4-13 . click Journals. use the Journal names form. Give it a name that is recognizable by its name alone. or have documented support sufficiently for the recorded transaction amounts. 3. The person responsible for journal routines sets up the approval system in one of the journals. the causes of these errors or misstatements are difficult to identify. and then click Journal Names. Open the Journal names form by clicking General Ledger. 2.Chapter 4: General Ledger Daily Procedures HINT: Use the Delete posted journals form (General ledger > Periodic > Cleanup > Ledger journals clean up) to cleanse the Journals form. Scenario: Journal Approval At Contoso. You can set up the journal templates with or without a mandatory approval of the transactions before posting. Therefore Phyllis. Without appropriate journal approval controls. This does not delete the posted vouchers. information fields were left blank or contain insufficient or incomplete information. Procedure: Create an Approval Journal Perform the following steps to start the approval journal feature. click Setup.

4-14 . the Customer payment journal type is used only for customer payment journals.Financials I in Microsoft Dynamics® AX 2012 4. The customer payment journal is used only within Accounts Receivable. The journal type determines what the journal is used for and which module it is available in. journal lines. to post a payment directly to a customer account. Number sequences manage automatic allocation of voucher numbers. and journal numbers used by Microsoft Dynamics AX. a description such as "AR Payment" would be appropriate when you select this journal type. Therefore. Select the type of journal in the Journal type field.3 JOURNAL NAMES FORM Procedure: Create an Approval Journal . for example. invoice numbers.Number Sequences To create number sequences for an approval journal select a number sequence for the journal name in the Voucher series list. For example. The number sequence automatically is applied to. You can set up number sequences in the General ledger parameters form. FIGURE 4.

This enables journal transactions to be reported as ready. However. In the Private for user group list. when you record a vendor disbursement and specify Bank in Account type. approved. Specify the user group whose members should approve the journal in the Approve field. if you are using Workflow approval. you can create an additional layer of control on posting. • On the Posting restrictions button. posting occurs automatically in the bank's posting account in the General Ledger.Restricting Access The following ways are available to further restrict access to the journal: • On the General tab. select a user group to restrict the usage of the journal. if workflow is used. 3. 4. Optionally. Close the Journal names form. you can select a default offset account for the journal in the Offset account list. 2. 4-15 . posting occurs in the bank account selected in the journal. or rejected. NOTE: There is also a Workflow approval process which is separate from this approval process.Chapter 4: General Ledger Daily Procedures Procedure: Create an Approval Journal . At the same time. you cannot use the approval system enabled by the Active field within the same journal name record. 5. Select the Active check box to start the approval system.Accounts Perform the following steps to select the Account type and other options for an approval journal: 1. For example. do not use steps 3 and 4. Select the default account type for the journal name in the Account type list. select the Fixed offset account check box to prevent users from changing the default offset account. you can enable approval workflow for the journal by selecting and selecting a workflow Configuration. Procedure: Create an Approval Journal . NOTE: If an offset account is set up. • In the Approval workflow field. specify if the journal should be available only for a limited group of people.

Approval Follow these example steps to approve a journal when a member of the user group designated in the Journal names form approves. and then click General Journal. 5. Click General ledger in the Navigation pane. 4-16 . Click the Approval button. then click General journal.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create an Approval Journal . NOTE: If the journal has errors. Go to General Ledger. although this example uses a General Journal. but the remaining steps 2 and 3 will be the same. 1. Create the journal transactions by clicking the New button and entering information in the fields. and then click Approve to approve the journal. click Journals. a General journal. 4. When the journal is approved. Click Approval. click Journals. If a different journal type was created and used. 1. the Post button is enabled within that journal. Click the Lines button to open the Journal voucher form. Note that the Post button is unavailable until the journal is approved. Procedure: Create an Approval Journal . Other journal types also may use the approval system. 3. 2. and click Report as ready to make the journal ready for approval as soon as you complete the transaction.Entering Data in the Journal Perform the following steps to create an approval journal when another person enters data into the journal in which the approval system is set up. This allows the user who created the journal and the journal lines to post the transactions. Click the New button to create a new journal and select the journal name with the approval system enabled. HINT: View the history of approvals on the History tab of the Journal form and the Journal voucher form. 2. 3. the path in step 1 will be different. and click Reject. for example. click Approval.

Phyllis needs help establishing the proper procedures to enable this approval. Phyllis has noticed many errors on entries posted by Alfredo Fuentes Espinosa (AFE) in the GenJrn journal. Request to Link Users to Groups Required Data or Field Value User ID User Group User ID User Group Request to Enable Journal Approval Required Data or Field Value Journal Name Active Select Approve Private for user group How would you complete the following tables to provide Phyllis with the setup that she needs? Some hints and the completed table are shown in the next lesson sections. the following tables will be used to assist to gather the needed information. you can use the Private for user group field to prevent other users from accessing the journal. has the responsibility for guaranteeing the accuracy of transactions posted in Microsoft Dynamics AX. Scenario Phyllis. then the approving user must also be a member of the Private for user group value selected to see the journal for approval. Now Phyllis has decided that entries made to GenJrn must be approved by a member of the Finance team. Alex Roland (ASR). 4-17 .Chapter 4: General Ledger Daily Procedures Example: Gathering Data for an Approval Journal The following is an example in gathering some of the data needed to create an Approval journal. a journal used only by Admin. Helpful Information Here are some hints: • Alfredo is a member of the Admin user group. If you do this. the Accounting Manager for Contoso. • Because only Admin makes entries to the GenJrn journal. What Data Is Needed? In this scenario.

Phyllis decides to save the voucher as a voucher template by amount. Use voucher templates with a general journal or an accounts payable invoice journal. Admin Request to Enable Journal Approval Required Data or Field Value Journal Name GenJrn Active Select Approve Finance Private for user group Admin Voucher Templates A voucher template is a voucher that can be used as the basis for future vouchers. she selects the Load voucher template action and chooses the interest entry. is entering a voucher to record interest expense on a fixed-rate long-term note. Scenario Phyllis. 4-18 . The voucher debits Interest Expense and credits Interest Payable for 350. The next time Phyllis records an interest expense. dollars (USD) each.00 U. This voucher for the same amount must be recorded each month. The original ledger accounts and amounts are loaded into the form automatically.S.Financials I in Microsoft Dynamics® AX 2012 Solution: Data Required The completed tables are as follows: Request to Link Users to Groups Required Data or Field Value User ID AFE User Group Admin User ID ASR User Group Finance. the Accounting Manager at Contoso. To reduce future data entry time.

April records the telephone expenses across all departments equally. receives a telephone bill that she must enter. At Contoso. 1. 2. 4. and then click the Lines button. The following table shows is an example of the distributions for an invoice in the amount of 600. Click OK.Production 150 USD Telephone Expense . The distributions then are created based on the original percentage. and then click Save voucher template. Account Debit Amount Telephone Expense .Accounting 150 USD Telephone Expense . 3. The next time April receives the telephone bill. Procedure: Create a Voucher Template Perform the following steps to create a voucher template. Enter a transaction through in the General journal by clicking General ledger. click Journals. Select a line item. This will hold the value assigned to each account as a percentage of the total. dollars (USD). click General journal. 5. April will assign each department 25 percent.Administration 150 USD Accounts Payable Credit Amount 600 USD April saves this entry as a Voucher template by percent. the Accounts Payable Coordinator. In this case.00 U. 4-19 .S.uses the percentage of the original voucher total represented by each voucher line. From the Template type list. she must retrieve the Voucher template and enter only the amount of the telephone bill.Sales 150 USD Telephone Expense .uses the original voucher total and line amounts.Chapter 4: General Ledger Daily Procedures Scenario April. o Amount . select one of the following: o Percent . Click Functions. April enters the voucher with the appropriate department breakdown.

When you create a new voucher based on a percent type voucher template. Periodic Journals A periodic journal only has data entered periodically. then click the Lines button. 2. • Then. Procedure: Create a Periodic Journal Perform the following steps to create a periodic journal that is the same as a regular journal. Decide whether to leave the date field blank. 4. For example: • During each month-end accounting close. Click Functions. However. the percentage calculated for each new line automatically is applied to the value entered in the Voucher amounts dialog. a user makes the same entry with the same account numbers and currency amounts. 5. enter a starting date. enter the Amount of the new transaction. 6. If you select a percent voucher template. • The user sets up a periodic journal to make this process quicker. Click the New button to create a new journal. Use a GenJrn type and enter the periodic journal description to define it as a periodic journal.Financials I in Microsoft Dynamics® AX 2012 Procedure: Use a Voucher Template After a voucher template has been created. click General journal. Create the transactions in the periodic journal the same way that you would create a transaction in a normal General journal. perform the following steps to use a voucher template to create a new general journal or accounts payable invoice journal. you can leave the date blank. 5. each month. 3. Select the correct template in the Voucher templates form. It determines the amount for that new voucher line. 4. the user retrieves the journal and posts it with the appropriate accounting date. and then click General Journal. Highlight a line item. 3. 1. Click OK. if you want to use the automatic period incrementation functionality of periodic journals. 4-20 . click Journals. click Journals. 2. Enter a transaction through in the General journal by clicking General ledger. Click on General Ledger. Click the Lines button to open the Journal voucher window. 1. and then click Select voucher template. If you plan to use this journal more than one time.

This can be found by clicking General ledger. even if the journal does not have an accounting date. click Periodic journals. Procedure: Retrieve the Periodic Journal . Click Period Journal button. Go to and click General Ledger. click Journals. in the To date field. 1. A new window appears. Enter a date that is after the date you saved the journal. the Period journal you select must first exist as a Journal name with Journal type periodic in the Journal names form. A new form appears titled Period journal. and evaluating whether to retrieve the periodic journal. Enter the posting date for transactions or last date for transfer of periodic transactions. 4. click Journals. click Retrieve Journal on the Journal voucher window.Set Date Conditions Perform the following steps to set up the conditions for retrieving lines from a periodic journal to the current journal: 1. Click the New button or open an existing journal.Notes and Hints HINT: Be as descriptive as possible when entering the Name of a new periodic journal. Click Save Journal when the transaction is complete. click Setup. then click General Journal. 7. click Periodic. A record will be created automatically in the Periodic journals form found by clicking General ledger. Click the Lines button. you can post or delete the General journal that you created by these steps. NOTE: When you create a new periodic journal. It is easier to identify the correct journal when you retrieve the periodic journal.Chapter 4: General Ledger Daily Procedures 6. Either save the journal in an existing journal or create a new journal.First Steps Perform the following steps to retrieve and use the periodic journal from the Journal voucher window. 2. Procedure: Create a Periodic Journal . 4-21 . This is the date the system uses when searching through the periodic journals. NOTE: After you create the periodic journal. Procedure: Retrieve the Periodic Journal . and then click Journal names. Click the Period journal. 3.

the Unit field does not apply. 5. If you do not select a date. Go to General Ledger. then click Periodic journals. note the following about the Periodic tab: 4-22 • Unit field . Go to and click on General ledger. If the lines are copied. If the lines are moved. click Periodic. click Periodic. Close the form. Journals. For example. you can modify it. .select the unit to use for the selected periodic transaction. When you modify a periodic journal. • Number of units field . Select either Copy or Move in the Copy or move journal field list. If you entered Days in the Unit field and 14 in Number of units field.enter the number of units defined in the Unit field that make up the interval in which to post transactions for the selected journal line. 4. 7. if you have entered Months in the Unit field and want to make quarterly postings. Make the changes you want. 6. the journal is not available for further retrieval. Enter a date to use for the accounting date in the Empty date field if the Date field in the periodic journal is empty. the To date is automatically used as a posting date. for example. Click the Lines button to open the Journal voucher form. Select the periodic journal to use in the Periodic journal number field list. enter 3 in the Number of units field. Periodic. Perform the following steps to modify a periodic journal. Click OK to create the journal lines. 4. 5. then click Periodic Journal to view or create all the periodic journals. 2. Procedure: Modify a Periodic Journal After you create a Periodic journal. 3. NOTE: You also can create periodic journals by using this form. you indicate that the periodic journal line is posted every two weeks. This will determine whether or not the lines from the selected Periodic journal number are left in a reusable status. 1. Post the journal as you normally would.Financials I in Microsoft Dynamics® AX 2012 2. If the Date field is empty. 3. click Journals. you can use the journal again. Periodic journals. Click to highlight the desired periodic journal. Periodic Journal: Fields on The Periodic Tab You can access the Periodic journal at General ledger. Months for monthly postings.

this field contains the Session date of the last time you transferred the periodic line to a journal. Use these fields to determine the next Periodic journal posting date. You can also determine whether a journal will be retrieved automatically into the General journal form based on the selection criteria you set up. Next. When you select a Periodic journal to retrieve into the General journal form. Every time you post the Periodic journal by using the General journal form. click Periodic. then click Periodic journals. if the Date field in the Periodic journal Journal voucher form line is blank. click the Lines button. click Periodic journals. The system retrieves the journal only when the To date field value entered in the retrieval form is equal to or greater than the Date field in the Periodic journal Journal voucher form line (found at General ledger. click Lines. and then click Lines). Next. and the posting date is set based on the values entered during retrieval. click Periodic. then click To date) determines whether to retrieve the journal. and then click the Periodic tab. 4-23 . Periodic Journal: Using Periodic Tab Fields When Retrieving Periodic Journals You can access the Periodic Tab Fields by clicking General ledger. click the Lines button.Chapter 4: General Ledger Daily Procedures • Last date field . However. click Periodic. the value found in the To date field (go to General ledger. click Journals. then click Periodic journals. then click Retrieve journal. and click the Date field. NOTE: To automatically establish an initial baseline date for Periodic journal posting. The system updates the field automatically. ensure that the Date field of the Journal voucher form within a Periodic journal is populated. the Date field in the Periodic journal. This field is found by clicking General ledger. the line automatically transfers one time per retrieval. Journal voucher is automatically incremented by the values set up in the Periodic tab. click the Period journal button.

After you enter the Periodic Journal. Create a Journal name for RentExp. Retrieve the Periodic Journal and post the first transaction on June 30. NOTE: Set the Session date to 06/30/2011 for this lab. Option Name of Journal RentExp Description Rent Expense Date 06/30/2011 Account 131100 Transaction Text Rent Expense Credit $1. 2011. Use the following information to enter the transaction.000. Accounting staff must make an entry to move the used portion of 1. It is the end of June and therefore one-sixth of the prepaid rent must be expensed.3 . 2. Need a Little Help? 1. click the Save button. Post the entry for June.00 Offset Account 605150 Rent Expense Unit Month(s) Number 1 Challenge Yourself! 1. 4-24 . Ken asks you to create the Periodic journal and post the June entry.000.00 USD to Rent Expense. 2.Financials I in Microsoft Dynamics® AX 2012 Lab 4. Create a Periodic journal to use for posting the monthly expense.Entering Periodic Transactions This lab demonstrates creating a Periodic Journal Scenario Ken is the Controller for Contoso. 3.

In the Credit field. enter 605150. In the Voucher series field. On the Navigation Pane. In the Journal number field. click the arrow to select RentExp. Click the New button on the Menu bar to add a line. Close the Journal names form. In the Unit field. 6. Use the Tab key to move to the next field. 4. enter Rent Expense. 3. 7. 2. 4-25 . enter RentExp. Close the Journal voucher form. 5. 11. accept the system default. 8. In the Account field. Click the Lines button. 9. Click the New button to add a line. then click Journal names. click Journals. 8. click General ledger. Enter 1 in the Number of units field. On the Navigation Pane. In the Offset account field. the field populates based on the Journal names form setup. enter 1000. 3. In the Description field. 2. In the Description field. select the first Acco_23. click the arrow to select Periodic. In the Journal type field. click Journals. enter periodic. 7. use the arrow to select Months. 4. In the Name field. 12. click General ledger. 6. 5. Create the Periodic Journal: 1. click Setup. click Periodic. In the Description field.Chapter 4: General Ledger Daily Procedures Step by Step Set up the Journal name: 1. Close the Journal form. then click Periodic journals. In the Name field. enter 131100. 10.

click General ledger.Financials I in Microsoft Dynamics® AX 2012 Post the entry for June: 1. 4-26 . 5. 4. click Journals. 6. In the Periodic journal number field. Click the New button to add a line. 3. On the Navigation Pane. click the arrow to select GenJrn. Close the Journal form. then click General journal. 12. Click OK to retrieve the journal information. enter 06/30/2011. 9. click the Post button. 13. Close the Journal voucher form. In the Journal voucher form. 14. 11. Click the Lines button on the Menu bar. use the arrow to select RentExp. 2. In the To date field. 7. then click Post. 10. Click Post. In the Name field. 8. Click the Retrieve journal option. Close the Infolog form. Click the Period journal button.

Further Description You can select only one transaction at a time for reversal. an invoice can only be reversed if it is not paid. • Vendor transactions. except transactions that relate to sales orders. To reverse a paid invoice.Chapter 4: General Ledger Daily Procedures General Ledger Transaction Reversal Microsoft Dynamics AX enables users to easily reverse transactions posted incorrectly. • Fixed asset transactions General Ledger Transaction Reversal . For example. and you must reverse it at the last transaction level. 4-27 . The reversal functionality applies to: • The last transaction level • Transactions in the origin module The reversal functionality does not apply to: • Transactions included in the bank reconciliation • Project invoices and credit notes • Vendor invoices entered through purchase orders • Sales invoices entered through sales orders • Inventory transactions • Delivery notes posted into the ledger NOTE: You also can enable Reason codes for transaction reversal. except transactions that relate to purchase orders or bank. The transaction reversal feature includes: • Setup options in General Ledger parameters • Number sequences for tracing purposes • The ability to reverse a transaction and subledger transactions • The ability to undo a reversal • Inquiry on tracing The following transactions can be reversed: • General Ledger transactions • Customer transactions. you first must reverse the payment. projects or bank.

2. 4. Optionally. 4-28 . then click Number Sequences.Transaction Level Perform the following steps to reverse a transaction in the General ledger module: 1. Click General Ledger. 3. and you can reverse a credit transaction by adding a minus credit transaction. The system uses the trace number on the original transaction and also on the reversal of the reversal. The transaction itself and all related transactions that were created when the original transaction is posted are reversed. NOTE: You cannot reverse a transaction in a previously closed fiscal year. Enter a number sequence for the Transaction reversal reference. Click OK. Procedure: Reverse a Transaction . Click Reverse transaction on the action pane strip. Perform the following steps to reverse a transaction. 1. click Common.Set Up Number Sequence Before using reverse functionality. and then click Main accounts. Select the date of posting for the reversal transaction. Select a Main account. 3. and check the appropriate box. The date cannot be before the original posting date or in a closed period. Clicked on the Posted button on the tool bar. NOTE: You can set the number sequence to Continuous by clicking General Ledger. This makes it possible to trace the: o Original transaction o Reversed transaction o Reversal of the reversed 2.Financials I in Microsoft Dynamics® AX 2012 Procedure: Reverse a Transaction . select a number sequence for Transaction Reversal and Trace number in General ledger parameters on the Number sequences tab. click General ledger parameters. 6. 5. select the Correction check box on the Ledger tab to reverse the connected ledger transaction by using correction. Enter a number sequence for the Trace number reference. You can reverse a debit transaction by adding a minus debit transaction. click Setup.

Select the date of posting for the reversal transaction. Procedure: Reverse a Transaction in Accounts Payable and Accounts Receivables It is also possible to reverse transactions in Accounts Receivables and Accounts Payable. Below are the steps to reverse a transaction in Accounts Receivable: 1. The transaction itself and all related transactions that were created when the original transaction is posted are reversed. Click OK. in addition to entering a posting date. The date cannot be before the original posting date or in a closed period. Select a customer and click Transactions. click Common. Select a transaction to reverse. 2. Click Reverse transaction on the action pane strip. 4. 6. 5. and then click All customers. 3. 4-29 . Click Accounts Receivables.Chapter 4: General Ledger Daily Procedures NOTE: Parameter settings for a module determine whether you must enter a reason for the reversal. The results include the following: • Both new and old reversed transactions now receive a special marking ''R(eversed)'' allowing you to select these transactions in: o o o • Reports Inquiries Periodic jobs The ''R'' marking identifies all transactions settled through reversal and are currently still settled. click Customers. The results include the following: • Both new and old reversed transactions now receive a special marking ''R(eversed)'' allowing you to select these transactions in: o o o • Reports Inquiries Periodic jobs The ''R'' marking identifies all transactions settled through reversal and are currently still settled.

select whether the report or inquiry should include transactions that are reversed and settled ('R' transactions). Select the date of posting for the revocation transaction. and then click OK. and Accounts Payable. Clicked on the Posted button on the tool bar. Select a main account. and then click Main accounts.Financials I in Microsoft Dynamics® AX 2012 Procedure: Revoke a Reversed Transaction You also can reverse a reversal which involves the following actions: • Settlements between the original transaction and its reverse are canceled. 5. • The original transaction is marked as an original transaction. • In the dialog of some inquiries and reports in General Ledger. Click Reverse transaction on the action pane strip. Accounts Receivable. and then click Reversed Tracing. 3. NOTE: Reversed tracing is active only for reversed transactions and reversed transactions that you revoke. Select the reversed or original transaction to revoke the reversed transaction. 6. included in reports such as account statements and aging reports. • The 'Include reversed' parameter is. Click General Ledger. Select a transaction to view all the transactions with the same trace number. Perform the following steps to reverse a reversal. for example. and the revocation transactions share the same trace number. . 7. 4. 2. Inquiry and Reports on Transaction Reversal Consider the following when you use inquiries and reports: 4-30 • The identification of the reversal (trace number) and the reversal marking ('R') must be displayed. 1. The reversed transaction and all transactions that you created by using the reversal are revoked. click Common.

as shown in the following table. enters a month-end transaction on September 30.General Journals The action of reversing entry functionality lets users enter a general journal transaction with a reversing date. 4-31 . as shown in the following table. Account Debit amount Interest on bank loans 50 USD Long term interest payable Credit amount 50 USD Because the full payment will not be made until October 15. with interest payable on October 15. Assuming the interest payment at the end of the 30-day period is 100. Phyllis sets the previous transaction with a reversing date of October 1. The action of reversing entry functionality provides an easy way to perform transaction reversal for accruals. the Accounting Manager.00 USD. Scenario An interest note is issued on September 16. You need accrual type transactions to accurately reflect balances on financial statements. and the transaction reversal is posted based on the reversing date. This action creates a reversal of the previous transaction in the new accounting period.Chapter 4: General Ledger Daily Procedures Reversing Entries . because that is when the costs were incurred. the following transaction occurs: Account Debit amount Interest on bank loans 100 USD Cash Credit amount 100 USD The overall balance for the interest expense for October is a debit of 50. After you post the transaction in the general journal. half of the expense must be reported in September. Phyllis. Account Debit amount Long term interest payable 50 USD Interest on bank loans Credit amount 50 USD When the actual transaction for payment of interest is entered on October 15. the original transaction is posted based on the transaction date.00 USD.

3. In the Reversing date field. click the Print button. click Journals. then click General journal. and finally click Journal. highlight and select the journal you wish to print. Perform the following steps to designate on the header that a general journal entry is a reversing entry: 1. NOTE:To change the reversing date of an individual transaction in this journal. enter a posting date for the reversing voucher. Inquire and View Reports on Daily Journal Transactions You can run various reports to help you review and reconcile General Ledger posted data. If the Reversing entry check box is selected. Enter a new date in the Reversing date field. then click General journal. and click Print Journal to print a list of transactions entered in the current journal. • Go to General Ledger. click General ledger. Enter or select a journal. Select the Reversing entry check box. click the Lines button to open the Journal voucher form. Next. 4. you must enter a date in the Reversing date field. To access the Journal form. 2. . click Journals. Report: Print Journal There are two ways to print a list of transactions in a General journal: 4-32 • Go to General ledger. NOTE: You also can access the Reversing entry and Reversing date fields from the General tab in the Journal form. click Reports.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Reversing Entry You can set up the Reversing entry and Reversing date fields in the General Journal header to default on all lines or on the journal lines. click Journals.

no value displays if you enter the account in the journal as a debit to the bank account. 4-33 . then an error occurred somewhere in the process. If the debits do not equal the credits. click General ledger. For example. To access this report. then click General journal entries that have not been posted. To print the General journal entries that have not been posted report. go to General Ledger. click Reports. Report: Account Balances To verify a specific account balance. click Main accounts.Chapter 4: General Ledger Daily Procedures Report: General Journal Entries That Have Not Been Posted The General journal entries that have not been posted prints the journal lines that have not yet been posted. click Reports. Report: Trial Balance If the total of the debits and credits are error free and posted correctly to the General Ledger: • The total of all the debit balances should equal the total of all the credit balances. then click Balance list. click Transactions. Report: Balance List Print a Balance list report that shows the opening and closing balance for all accounts for a given period. click Transactions. NOTE: The account must be the account in the Chart of Accounts. Highlight the desired account and view the FactBox pane on the right of the form to view account balances. click Journals. click General ledger. click Reports. • The total of all accounts on the debit side and on the credit side is known as the trial balance. Print the trial balance to verify the debits and the credits equal. Use the report to do the following: • View debit and credit totals • Quickly analyze development in the different accounts To access this report. then click Trial balance. click Common. and then later you make an inquiry on the ledger account for that specific bank account. open General Ledger.

discounts. An audit trail enables you to audit the system for a record of alterations. click OK to continue. and also to reconstruct the data at a specified time. click Inquiries. You can control the posting in the journals by the way you set up of the Chart of Accounts and the journal templates. cost of goods sold. then click Voucher transactions. Summary By using the connectivity in Microsoft Dynamics AX. work in progress. This applies to sales and purchases. fixed asset transactions and inventory transactions. click Inquiries. you also can enter General Ledger transactions manually when you use general ledger journals. then click Audit trail. After you enter the criteria in the Inquiry form. Report: Voucher Transactions Use the Voucher Transactions form to view ledger transactions by voucher number and posting date. exchange rate adjustments of accounts receivable and accounts payable. However. project invoices and costs. To access this form. An audit trail is a time-stamped record of all the changes made to a record. click General ledger. interest payments. click General ledger. The journal itself also offers various posting options. It contains the name/identification of the user who made the modification and typically also includes the reason for the change. 4-34 .Financials I in Microsoft Dynamics® AX 2012 Report: Audit Trail Use the Audit trail form to trace a transaction to its origin for internal and external auditing and analysis. many transactions in the general ledger are posted automatically. To access this form.

Chapter 4: General Ledger Daily Procedures Test Your Knowledge Test your knowledge with the following questions. What information is needed to create a journal entry? (Select all that apply) ( ) Accounting date ( ) Ledger account ( ) Offset account ( ) Debit or credit amount 4. ( ) True ( ) False 6. In Microsoft Dynamics AX. The information you enter in a general journal is temporary and changeable as long as the journal is unposted. 1. ( ) True ( ) False 3. General journals are used to post transactions in which of the following accounts? (Select all that apply) ( ) General ledger ( ) Bank ( ) Customer ( ) Vendor 2. you can set up journals that require mandatory approval. With which journals can you use voucher templates? (Select all that apply) ( ) General journal ( ) Fixed assets journal ( ) Accounts payable invoice journal ( ) Purchase journal 4-35 . When can Multiple journals be posted? (Select all that apply) ( ) Yearly ( ) Immediately ( ) On a delayed schedule ( ) Set up as a job for batch processing 5.

( ) After you post transactions. Is it possible to select multiple transactions for reversal at the same time? ( ) Yes ( ) No 9. Which voucher template type allows users to recreate a voucher for the same accounts and values as the original entry? ( ) Percent ( ) Division ( ) Aggregate ( ) Amount 8. ( ) Reversing entry functionality serves only the purpose of correcting or backing out incorrect transactions. 10. Which of the following fields designates a reversing entry? (Select all that apply) ( ) Reversing entry ( ) Correcting entry ( ) Reversing date ( ) Correction date 4-36 . ( ) Reversing entry functionality provides transaction reversal for accruals. and the transaction reversal posts based on the reversing date. Accrual type transactions are needed to accurately reflect balances on financial statements. Which of the following statements correctly describe Microsoft Dynamics AX Reversing Entry functionality? (Select all that apply) ( ) Reversing entry functionality allows users to enter a general journal transaction with a reversing date. the original transaction posts based on the transaction date.Financials I in Microsoft Dynamics® AX 2012 7.

4-37 .Chapter 4: General Ledger Daily Procedures Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1. 3. 2.

The information you enter in a general journal is temporary and changeable as long as the journal is unposted.Financials I in Microsoft Dynamics® AX 2012 Solutions Test Your Knowledge 1. What information is needed to create a journal entry? (Select all that apply) (√) Accounting date (√) Ledger account (√) Offset account (√) Debit or credit amount 4. When can Multiple journals be posted? (Select all that apply) ( ) Yearly (√) Immediately ( ) On a delayed schedule (√) Set up as a job for batch processing 5. you can set up journals that require mandatory approval. (•) True ( ) False 4-38 . (•) True ( ) False 3. General journals are used to post transactions in which of the following accounts? (Select all that apply) (√) General ledger (√) Bank (√) Customer (√) Vendor 2. In Microsoft Dynamics AX.

Accrual type transactions are needed to accurately reflect balances on financial statements. ( ) Reversing entry functionality serves only the purpose of correcting or backing out incorrect transactions. 10. Which of the following fields designates a reversing entry? (Select all that apply) (√) Reversing entry ( ) Correcting entry (√) Reversing date ( ) Correction date 4-39 . the original transaction posts based on the transaction date. Is it possible to select multiple transactions for reversal at the same time? ( ) Yes (•) No 9. (√) Reversing entry functionality provides transaction reversal for accruals. Which voucher template type allows users to recreate a voucher for the same accounts and values as the original entry? ( ) Percent ( ) Division ( ) Aggregate (•) Amount 8.Chapter 4: General Ledger Daily Procedures 6. Which journals can you use voucher templates? (Select all that apply) (√) General journal ( ) Fixed assets journal (√) Accounts payable invoice journal ( ) Purchase journal 7. and the transaction reversal posts based on the reversing date. Which of the following statements correctly describe Microsoft Dynamics AX Reversing Entry functionality? (Select all that apply) (√) Reversing entry functionality allows users to enter a general journal transaction with a reversing date. (√) After you post transactions.

Financials I in Microsoft Dynamics® AX 2012 4-40 .

In Microsoft Dynamics AX®. • Create Sales Tax Authorities.Chapter 5: Sales Tax Setup CHAPTER 5: SALES TAX SETUP Objectives The objectives are: • Provide an overview on sales tax. Therefore. • Set up Sales Tax Jurisdictions. • Create Item Sales Tax Groups. • Calculate and Post Withholding Sales Tax. NOTE: The labs in this chapter must be completed in order as they are dependent on the previous lab. • Create Sales Tax Settlement Periods. the tax module of a true international Enterprise Resource Planning (ERP) system must be comprehensive. • Create Ledger Posting Groups. • Create Sales Tax Exempt Data. the tax module offers many different options for: • Tax calculation • Posting • Reporting This content explores the extensive functionality for sales tax handling. Introduction The requirements for tax calculation and tax reporting differ significantly for different countries. • Create Sales Tax Codes. • Create Sales Tax Codes Intervals. 5-1 . • Create Sales Tax Groups. • Create Sales Tax Transactions.

This topic provides a general overview on taxes. In some countries. • The user specifies when and how frequently to settle under sales tax settlement periods. with the focus on sales taxes. the rules differ between states or counties. .Financials I in Microsoft Dynamics® AX 2012 Sales Tax Overview All businesses must collect and pay taxes to various tax authorities. although the tax system in Microsoft Dynamics AX can process many kinds of taxes and duties. • The user specifies the sales tax authorities by using the Sales tax authorities form. • The system determines whether a sales tax should be imposed on a sale or purchase order through a combination of the Sales tax group and the Item sales tax group. The user sets this up under the Sales tax codes. Different countries have different rules and rates. The sales tax system within Microsoft Dynamics AX functions as follows: 5-2 • The user specifies where to post sales taxes by entering a ledger account in the Ledger posting groups. • The user defines how much to collect or pay as a certain amount or percentage.

Suggested Steps The image illustrates the steps for setting up tax information.1 SALES TAX SETUP IMAGE When you buy an item from a vendor or sell an item to a customer. you can avoid going back and forth between dialog boxes in Microsoft Dynamics AX. If you follow the steps in this order. 5-3 . the system must calculate all the applicable sales taxes. FIGURE 5.Chapter 5: Sales Tax Setup Sales Tax Overview . The calculated sales tax in Microsoft Dynamics AX is based on the sales tax codes included in both of the tax groups that are attached to the customer or vendor and the item.

Finally. you can set up the tax reporting on the sales tax code. FIGURE 5. . the system calculates the sales taxes based on tax codes CA and Fed because those codes exist in both groups. The following characteristics apply to ledger posting groups: 5-4 • A ledger account is updated automatically when the system calculates taxes and updates invoice posting. You must create the accounts that General Ledger uses in the Chart of Accounts before using them to set up the ledger posting groups.Financials I in Microsoft Dynamics® AX 2012 Sales Tax Overview.2 AFFECT OF SALES TAX CODES ON SALES TAX CALCULATION When you attach settlement period and posting group to the tax codes. • Because each ledger account can use several tax codes. a ledger posting group determines posting. Ledger Posting Groups The ledger posting groups control the automatic posting of sales taxes in Microsoft Dynamics AX. you specify how to post and pay the taxes.Example The following table shows the: • Sales tax setup for a customer and an item • Attached tax groups and the associated tax codes If you sell the item P Lamp to customer TTL Tire. • The system attaches the ledger accounts that the taxes are posted in to the sales tax code.

3. 5-5 . 2.Chapter 5: Sales Tax Setup • Each ledger posting group can contain several ledger accounts. • You can set up ledger accounts that have the posting type Sales tax to select the accounts in the Account group form. you can set up accounts for the following: • Sales-tax payable • Use-tax payable • Settlement account • Sales-tax receivable Procedure: Create Ledger Posting Groups Perform the following steps to create ledger posting groups: Go to General ledger. The description appears on reports and other areas throughout Microsoft Dynamics AX. • Changes that you make to the ledger account numbers in Ledger posting groups only affect transactions that have not yet posted. The help text indicates the purpose of each account and how it is used. This description appears with the code of the ledger posting group. 1. Ledger Posting Groups . click Sales Tax.Types of Accounts The number of accounts you must set up depends on the use of the group and national law. Click the New button to create a new record. Enter a meaningful name to describe the ledger posting group in the Description field. Enter a unique name for the ledger posting group in the Ledger posting group field. then click Ledger posting groups. HINT: Describe the groups so that you can recognize them. For example. click Setup.

LEDGER POSTING GROUPS FORM Create Ledger Posting Groups .Financials I in Microsoft Dynamics® AX 2012 4.00 USD.3 ACCOUNT GROUP.00 USD and the tax amount is 5.Posting Example The following is a brief example about posting sales taxes. FIGURE 5. For example. These sales taxes are collected by the company on behalf of the tax authority when you sell taxable goods and services. The system credits this account for sales tax amounts received from customers and debits the appropriate customer accounts. Select the ledger account in the Sales tax payable list. 5-6 . if a customer makes a purchase of 95. The amount you receive includes the sales tax. Debits are automatically recorded in the account and settled upon payment of the taxes. The ledger accounts available in the Sales tax payable list are the posting type of sales tax in the Chart of accounts. The system debits the outgoing tax in the customer account and then credits this account. the ledger transactions are as follows: Ledger account Debit (USD) Customer account (Accounts Receivable) 100 Credit (USD) Sales tax payable* 5 Sales account (domestic) 95 * The sales tax payable line represents the ledger account specified in the Sales tax payable field on the Ledger posting group form. where you must post the outgoing sales tax as part of the company's revenue.

of which 5. the Sales tax payable field is unavailable. Enter the ledger account for posting deductible incoming taxes that vendors do not claim or report to the tax authority in the Use-tax expense list. if a vendor sends an invoice of 100. and the amount paid to the vendor includes taxes. the system debits sales taxes paid to vendors as expenditures (costs) to the same accounts as the purchases. Select the ledger account for incoming taxes (receivable from the tax authority) in the Sales tax receivables field. Vendors collect these taxes on behalf of the tax authority when the company purchases taxable goods and services. The system debits to this account the sales tax amounts that you pay vendors and credits the appropriate vendor accounts. NOTE: If the Apply US sales tax and use tax rules check box is selected on the General Ledger Parameters form on the Sales tax tab. the ledger transactions are as follows: Ledger account Debit ($) Vendor account (Accounts payable) Credit ($) 100 VAT paid (Sales tax receivable)** 5 Inventory account (Expense account) 95 ** This account represents the ledger account specified in this field. Instead.Sales Tax Receivable Perform the following steps to create sales tax receivable ledger posting groups: 1.00 USD. For example. 2.00 USD is value-added tax. 5-7 .Chapter 5: Sales Tax Setup Procedure: Create Ledger Posting Groups .

The vendor charges 100. 2.You must indicate a use tax expense account for the Ledger posting group. you must select the Use Tax field on the Setup tab on the Sales tax group form. Setup. A company buys office supplies on the Internet from an out-of-state vendor.The amount in this account offsets the taxes posted as expenses if the Apply US sales tax and use tax rules check box is selected on the Parameters form. Non-U. For any sales tax groups that contribute amounts to this ledger account. found at General Ledger.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create Ledger Posting Groups . sales tax and use tax rules check box is selected in the General ledger parameters form on the Sales tax tab. taxes . The vendor is not required to collect the tax. Sales tax.S. 1. The company may still owe use taxes to the sales tax authority in its own state. The way you use this account depends on the type of tax system your company chooses.Use Tax Payable Perform the following steps to create use tax payable ledger posting groups: Enter the ledger account that offsets the use tax expense for taxes that vendors do not claim in the Use tax payable list. However. NOTE: This field is visible only when the Apply U.00 USD for the supplies and no tax. taxes . Create Ledger Posting Groups. The ledger transactions are as follows: Ledger account Debit (USD) Credit (USD) Vendor account (Accounts Payable) 100 Use tax payable*** 5 Office supplies (Expense account) 105 ***This account represents the ledger account specified in this field.S. the company may still owe taxes to a sales tax authority and must track such taxes. U.Use Tax Payable Example The following is an example of the use tax payable concept. 5-8 .S.

You can use this account to view a more accurate audit trail on the transaction. The sum of these accounts is the total balance of taxes due. To ease use.Chapter 5: Sales Tax Setup Procedure: Create Ledger Posting Groups Settlement Perform the following steps to create settlement accounts for ledger posting groups: 1. group the account with other ledger accounts in the Chart of accounts that contain posted taxes. Select the ledger account that the system debits when you pay taxes in the Settlement account field. Perform the following in the Ledger posting groups form: o Enter the ledger account for the posting of vendor cash discounts that include a sales tax amount. If you use this field. o Select the account for posting loss on cash discounts in the Customer cash discount list. 2. The ledger posting groups have the following characteristics: • They can be attached to individual sales tax codes • They determine the ledger accounts to which the sales taxes calculated for the sales tax code are posted 5-9 . sales tax check boxes in the Parameters form. you must also select the Reverse sales tax on cash discount and Cash discount is calculated on amount incl.

then click Main accounts. Challenge Yourself! 1. In the Main account field. Phyllis asks you to perform these tasks for her. 8. Contoso has a new customer in Alabama. click General ledger. Set up a new ledger posting group to assign to the Alabama customer to automate postings of sales tax transactions. In the Select the level of main account to display field. Create a new ledger posting group for the Alabama customer in the Ledger posting form that uses the Ledger posting group ALST (Alabama State Tax). In the Main account type field. 6. 2. Click the Setup FastTab. 9. click the arrow to select Sales tax.Chart of accounts form. click Common. you will set up ledger accounts and a ledger posting group for use in posting sales tax transactions. In the Posting type field. On the Navigation Pane. 4. Scenario Phyllis is the Accounting Manager for Contoso. When you create a new account for the sales tax liability for the Alabama customer.Financials I in Microsoft Dynamics® AX 2012 Lab 5. Need a Little Help? 1. In the Name field. click the arrow to select Balance sheet.1 . NOTE: The labs in this chapter must be completed in order as they are dependent on the previous lab. 5. Click the Main account button to add a line. Step by Step Set up the ledger account: 1. enter 220105. Create an account to record the sales tax payable and the sales tax settlements for the Alabama customer. 7.Create a Ledger Posting Group During this lab. enter Alabama state sales tax payable. 2. 2. Close the Main Accounts . A ledger account must be set up to record the sales tax liability and payments made (settlements) to the taxing authority in Alabama automatically. 5-10 . select Chart of accounts. 3. use account number 220105.

Chapter 5: Sales Tax Setup Set up the ledger posting group: 1. click the arrow to select account 220105. In the Sales tax payable field. In the Ledger posting group field. 7. Close the Ledger posting groups form. In the Description field. enter Alabama State Tax. enter ALST. 5. Click General ledger. 3. click the arrow to select account 220105. Click the New button to add a line. and then click Ledger posting groups. 6. In the Settlement account field. 5-11 . then click Sales Tax. then click Setup. 2. 4.

click Setup. To make payments to the sales tax authority. Click General ledger. states. Click the New button.Financials I in Microsoft Dynamics® AX 2012 Sales Tax Authorities Companies pay and report taxes to authorities. It displays on reports and in other areas throughout the system. The name displays together with the tax authority code. specify the vendor's account number together with the correct sales tax authority. Sales tax payments are transferred by the system to the vendor making the payment. 4. Select the vendor to make tax payments to the appropriate authorities in the Vendor account list. Procedure: Create a Sales Tax Authority Perform the following steps to create a sales tax authority: 1. Enter the name of the tax authority in the Name field. NOTE: Give the tax authority a name that is easy to identify. The sales tax payments are then posted automatically to the settlement account specified in the Ledger posting group. Microsoft Dynamics AX uses this code throughout the system to refer to a particular authority. then click Sales tax authorities. Tax authorities can be countries. Enter a unique code for the authorities that you send tax declarations and payments in the Authority field. you must pay the tax authorities directly. The authorities determine when and where the company pays its taxes. and cities. You can pay sales tax through a vendor or to the sales tax authority directly. 5. To pay sales tax through a vendor. regions. If you leave the field blank. click Sales tax. 2. 3. 5-12 . enter the sales tax authority's address information.

the vendor's address is entered automatically. o Normal . you must pay the tax authorities directly. for fields on the General FastTab: 1.round any number to the company's advantage. FIGURE 5. When you select a vendor. the total sales tax amount rounds automatically according to the setup on the sales tax authority.4 AUTHORITY FORM Procedure: Create a Sales Tax Authority . 3. 5-13 .Chapter 5: Sales Tax Setup 6.General Perform the following steps to create a sales tax authority.round up any number adjacent to the specified unit.round up numbers five and higher and round down numbers lower than five to the right of the specified unit. Select the report layout to print for the tax authority in the Report layout list. according to the chosen rounding form. o Downward . 2. When the system settles sales tax.round down any number to the right of the specified unit. Select the report layout to print for the tax authority in the Report layout list. o Own advantage . The sales tax payments are then posted automatically to the settlement account specified in the Ledger posting group. o Rounding-up . Select the vendor to make tax payments to the appropriate authorities in the Vendor account list. Specify the general unit for rounding sales tax amounts in the Round-off field. Select the rounding form to use for rounding the sales tax amount in the Rounding form list. 4. If you leave the field blank.

10 and -10. The company can pay sales taxes to the authority directly or through a vendor account created for the sales tax authority. Enter the remaining contact information on the Contact Information FastTab of the Sales tax authority. each with specific address and contact information and report layout. enter the address of the Sales tax authority.16 to -10. Procedure: Create a Sales Tax Authority. the system rounds a figure of 10.10. 2. for fields on the Address and Contact information FastTabs: 1. On the Address FastTab. 5-14 . Create as many sales tax authorities as needed. prepare a manual payment to the tax authority on the appropriate due date. with a Round-off of 0.Address and Contact Perform the following steps to create a sales tax authority.16 to 10.Financials I in Microsoft Dynamics® AX 2012 EXAMPLE: If you select Own advantage. This ensures that the rounding is always to the advantage of the company. NOTE: If you have not set up the tax authority as a vendor.20.

and then click Sales tax authorities. Contoso recently started conducting business with a customer in Alabama. then click Sales tax. click the arrow to select Normal. 2. enter ALA.01. In the Rounding form field. 8. Need a Little Help? 1. In the Authority field. 5. In the Name field.2 . report layout. then click Sales tax. Click the New button to add a new line. click the arrow to select U. Close the Sales tax authorities form. 9. has asked for your assistance in setting up a sales tax authority. Step by Step 1. then click Setup. 3. Use ALA for the authority name. enter Alabama Authorities. Contoso uses the field value "Normal" for the rounding method and it rounds to the nearest penny. Challenge Yourself! Set up the Alabama sales tax authority. 4. the Accounting Manager for Contoso. then click Setup. click General ledger. Expand the General FastTab 6. and then click Sales tax authorities. Click General ledger. A new sales tax authority must be set up to use to report sales taxes to the Alabama authorities. 7. Create a new sales tax authority. Scenario Phyllis. NOTE: The labs in this chapter must be completed in order as they are dependent on the previous lab. 2. On the Navigation Pane. 5-15 .Create a Sales Tax Authority During this lab you will demonstrate how to create a sales tax authority in Microsoft Dynamics AX.S. In the Round-off field. enter .Chapter 5: Sales Tax Setup Lab 5. In the Report layout field.

During this lab you will assign a vendor. Use the following information for the vendor. 2. you can assign a vendor to the authority. Phyllis has asked you to set the Alabama sales tax authority up as a vendor. the Accounting Manager for Contoso. • During the company's usual payment routine.Financials I in Microsoft Dynamics® AX 2012 Lab 5. Assign the vendor to the sales tax authority for Alabama. has discovered that assigning a vendor to a sales tax authority has the following advantages: • She can make payments as a part of the typical payment routines. Field Value Name State of Alabama Search name AL tax Group 10 Terms of payment M15-Month end + 15 days Method of payment USAUSD_CHK NOTE: The labs in this chapter must be completed in order as they are dependent on the previous lab. Scenario Phyllis. the payment to the sales tax authority is created automatically with payments to other vendors. Create a vendor for Alabama sales tax. • When she runs the Sales tax payment periodic job.Create and Assign a Vendor to the Sales Tax Authority To make paying the sales tax authorities more efficient. To automate payments to the Alabama sales tax authority. the amount the company owes the sales tax authority transfers to the sales tax authority's vendor account.3 . Challenge Yourself! 1. 5-16 .

Close the Sales tax authorities form. In the Term of payment field. and then click Sales tax authorities. click General ledger. click the arrow to select 70. Close the Vendor form. Click the Payment FastTab. enter AL tax. Ensure that this setup is correct. then click Sales tax. Locate the line for Alabama Authorities. 11. 2. the next available vendor number is assigned automatically. In the Vendor account field. click the arrow to select State of Alabama. 2. Click the New . 6. use the arrow to select M15. 5. then click Setup. Microsoft Dynamics AX can assign the vendor number because of the Accounts Payable setup in Contoso. On the Navigation Pane. 10. On the Navigation Pane. Assign the vendor to the authority: 1. click Common. 4. In the Name field. because of accounts payable setup. 5-17 .Tax Authorities. 8. 4. 7.Vendor button to add a record. In Contoso. 3. enter State of Alabama. In the Method of payment field.Chapter 5: Sales Tax Setup Need a Little Help? 1. In the Group field. click Accounts payable. then click All Vendors. 9. click Vendors. use the arrow to select USAUSD_CHK. Step by Step Set up the vendor: 3. Assign the new vendor to the sales tax authority for the State of Alabama. When you add a vendor. In the Search name field.

Typical periods could be: • Monthly • Quarterly • Yearly Procedure: Create Sales Tax Settlement Period Perform the following steps to create sales tax settlement periods. Enter a code in the Settlement period field that the system will use in the other forms to refer to the settlement period. sales tax codes associate with a settlement period through the Settlement period field in the Sales tax codes form. 1. Click General ledger. Click the New button. The company then can determine which sales tax settlement period to report to the authorities. click Setup. laws. 2. and the authorities. NOTE: If the Include corrections field on the Sales tax tab page in the General ledger parameters form is selected. Microsoft Dynamics AX includes corrections from previous periods into the tax report for the actual period. then click Sales tax settlement periods. click Sales tax.Financials I in Microsoft Dynamics® AX 2012 Sales Tax Settlement Periods Sales tax settlement periods specify the intervals when the company reports and pays taxes. The system automatically marks the posted tax transaction with the settlement period when it must report the transaction. 5-18 . Otherwise it is possible to manually select what information is included before running the report. For example. Reporting periods depend on the size of the company.

click Sales tax. this payment term overrules any terms of payment set on the vendor in the Accounts Payable module. click Setup. 3.Chapter 5: Sales Tax Setup 3. Also note that the Due date calculates based on the date set when you run Sales tax payment from General ledger > Periodic > Sales tax payment. Click General ledger. In this case. then click Sales tax settlement periods. FIGURE 5. Select the tax authority that you report and pay taxes to for each settlement period in the Authority list. Enter the name of the settlement period that appears on reports and in other areas throughout the system in the Description field. which is attached to the settlement period. 4. NOTE: The Terms of payment field. 2.5 SALES TAX SETTLEMENT PERIODS FORM Procedure: Add Terms of Payment Perform the following steps to set up terms of payments: 1. Select a record. Create and manage terms of payment in the Terms of payment form in Accounts Receivable or Accounts Payable. 5-19 . Select the terms of payment for the sales tax settlement in the Terms of payment list. only applies if a vendor account is set up on the sales tax authority.

To create the other quarters of the year. or years. Contoso settles its sales taxes every quarter. You can create new periods automatically by clicking New periods. Select the reporting interval in days. 5-20 . Click General ledger. Add additional periods by clicking the New Period action. the settlement period displays in days. However. 4. 4. Based on how you define the Period interval. if the Period interval is set to Month(s) and the Number of units is set to 12. 2. Select a record. Select a record. 2011 in the From date field and March 31. click Sales tax. in the Period interval list. click on the Periods FastTab. Enter the length of the settlement period in the Number of units field. 5. Example: Create Sales Tax Settlement Periods In the year 2011. months. and then click the Add button. the length of one period is one year or 12 months. then click Sales tax settlement periods. EXAMPLE: If the Period interval is set to Month(s) and the Number of units is set to 1. click Setup. click Setup. 2011 in the To date field. You cannot change an updated period interval. or years. click the Add button three additional times. a new period automatically is one month. on the General FastTab. months. click Sales tax.Financials I in Microsoft Dynamics® AX 2012 Procedure: Specify Period length Perform the following steps to set up period intervals for the sales tax settlement periods: 1. enter January 1. but with the opposite mathematical sign. To create a new period. then click Sales tax settlement periods. Procedure: Specify the Actual Periods Perform the following steps to set up new Sales Tax Settlement periods for a already created Settlement Period record: 1. 3. To create the first period. Click General ledger. This means that you cannot remove tax transactions from the original period interval. Enter the first day and last day of a period interval in the From date and To date fields. 3. 2. You can correct errors with an offset transaction that is identical to the original transaction.

5-21 . Period intervals may not overlap. view sales tax payments for a specific period by selecting an interval on the Periods tab and clicking Interval sales tax settlements. This provides an overview of each sales tax transaction. report and pay sales tax for specific settlement periods.Chapter 5: Sales Tax Setup CAUTION: The sum of period intervals must cover whole periods so that no tax transactions fall outside the calculation periods. Additionally. you can inquire. The Sales Tax Settlement Periods form contains several methods to inquire on Sales tax transactions: • View the sales tax payments for a specific sales tax settlement period by selecting a sales tax settlement period and clicking Sales tax payments. Use settlement periods to create and manage the periods the company uses to report sales tax. • View posted sales tax transactions for a specific sales tax settlement period by selecting a sales tax settlement period and clicking Posted sales tax. which is posted in Microsoft Dynamics AX with a sales tax code. Alternatively. HINT: Click General ledger > Reports > External > Sales tax payments to print a report about all settled sales taxes. click Sales tax per interval to view posted sales tax transactions for a specific interval. Inquire about Sales Tax Settlement Periods When you set up the sales tax settlement periods.

June 30 July 15 July 01 . Attach the Terms of payment to the settlement period. enter Alabama Quarterly. to pay Contoso's Alabama sales tax liability quarterly. click Setup. Step by Step Set up the Tax Settlement: 5. The sales tax settlement period and deadlines are laid out in the following table: Settlement period Deadline for reporting January 1 . the Controller for Contoso.4 . Click the New button to insert a line. click General ledger. and then click Sales tax settlement periods. wants April. Challenge Yourself! Set up the required sales tax settlement for Alabama.Setup of Sales Tax Settlement Periods During this lab you set up a sales tax settlement period. Need a Little Help? 1. 4. NOTE: The labs in this chapter must be completed in order as they are dependent on the previous lab. 9. Scenario Ken. Expand the General FastTab.March 31 April 15 April 1 . click Sales tax. 8. the following year April has asked for your assistance in completing the setup for the Alabama sales tax settlement so that April can generate the tax payments automatically. In the Description field. 2.September 30 October 15 October 1 . enter AL. 3.Financials I in Microsoft Dynamics® AX 2012 Lab 5.December 31 January 15. Set up the Period length. the accounts payable coordinator. On the Navigation Pane. Create the individual Settlement periods. 6. Create the Sales tax settlement period. The sales tax authorities expect settlement 15 days after the close of the quarter. In the Settlement period field. 7. 5-22 .

Close the Sales tax settlement periods form. enter 3. use the arrow to select Months. if needed. 11. 5. Click the Periods tab. In the From date field. use the arrow to select N015. In the Authority field.Chapter 5: Sales Tax Setup 10. enter 01/01/2011. 4. In the Terms of payment field. In the To date field. 13. Press Add button to add a line. Set up the Periods tab: 1. 6. enter 03/31/2011. 12. In the Number of units field. Click the New Period action three additional times to create the remaining quarters. In the Period interval field. 3. 2. 5-23 . click the arrow to select ALA-Alabama Authorities.

Click General ledger. 5-24 . and packing duty throughout the system. It specifies the following: • How taxes are calculated • The value that is used for tax calculation The sales tax value is very important because no tax is calculated without it. click Sales tax.When to Create Create sales tax codes when you initially set up the system. changes to the company's market can result in the need for new sales tax codes. then click Sales tax codes 2. purchase duty. NOTE: If a company operates in the United States. Enter a unique identifier for the sales tax code in the Sales tax code field. This describes the function of the code and appears on reports and throughout the system. click Setup. Because taxes frequently depend on geographic location. You must attach sales tax jurisdictions to sales tax groups. This is the basis for calculation of tax.Overview Perform the following steps to create a sales tax code: 1. You can attach sales tax codes to the sales tax group through the sales tax jurisdictions. 3. as well as sales tax codes.Financials I in Microsoft Dynamics® AX 2012 Sales Tax Codes The Sales tax code is a central part of the setup. Procedure: Create a Sales Tax Code . Click the New button to create a line for the new sales tax code. 4. A sales tax code includes information about the following: • How the tax is calculated. it is highly recommended that you set up sales tax jurisdictions. Enter a meaningful name for the new sales tax code in the Name field. posted and reported • When the payments are made • To whom the payments are made You can define the sales tax rate for the following: • Various intervals and periods in Values • Limits on sales tax amounts in Limits Sales Tax Codes . Update the sales tax codes when you need to make changes to existing taxes or when you add new taxes.

The sales tax code identifier is an alphanumeric string that may include special characters. Select the ledger posting group for a sales tax code in the Ledger posting group list. Select the period and the sales tax authority used to calculate the sales tax code in the Settlement period list. You can create the posting groups in the Ledger posting groups form. 5-25 . Enter a Packing duty Sort code to help identify the packing duty. 3. 5. 4. Select whether a user-defined code or the sales tax rate should print with the sales tax specifications in invoice documents by making a selection in the Print field on the General tab. Define an identifier that specifies the sales tax code on printed invoices in the Print code field. set up sales tax jurisdictions in the Sales tax jurisdiction list. but only if Print code is selected in the Print list. The posting group contains information about which accounts to use when the sales tax amounts are automatically posted in the General Ledger.Chapter 5: Sales Tax Setup NOTE: If a company operates in the United States. If the original transaction is in another currency. 6. FIGURE 5. the tax converts automatically 2.General Perform the following steps to enter general information when creating a sales tax code: 1. Select the currency in which tax must be calculated and paid in the Sales tax code form on the General tab in the Currency list.6 SALES TAX CODES FORM Procedure: Create a Sales Tax Code . Click the General tab.

indicate the unit on which the sales tax will be calculated in the Unit field. 5-26 . o Amount per unit . In the General ledger parameters form. 2.Calculation Perform the following steps to enter calculation information when creating a sales tax code: 1. can be used when a legal entity must retain tax (for example IRPF Impuesto sobre la Renta de las Personas Físicas—personal income in Spain) from vendors. click Sales tax codes. excluding any other taxes. o Percentage of sales tax . Procedure: Create a Sales Tax Code . This includes all other taxes or duties. Click General ledger. Select from the following options in the Origin list: o Percentage of net amount . 8. In the Payment sales tax code field. o Calculated percentage . in the Sales on sales tax field. o Percentage of gross amount . NOTE: For the transfer to occur.percentage of purchase or sale.Financials I in Microsoft Dynamics® AX 2012 7. set up the general ledger to allow the posting of conditional sales taxes.percentage of purchase or sale. click Sales tax.percentage of another tax. set up the specific sales tax code that you based the current sales tax code on. Sales tax calculates as a percentage of the purchase or sale amount. it converts automatically based on Unit conversion in Inventory. If the transaction is in another unit. then click the Calculation FastTab. The sales tax rate must be the same sales tax rate that you entered in the Sales tax code field. This feature. This setting is used for “unrealized sales tax” when a sales tax is calculated at time of invoicing but will be due (realized) for payment to the tax authorities only at the time when the invoice has been paid.of the net amount -the calculated percentage of net amount calculation method can be used to calculate input tax deduction for per diem expenses (as used for example in Germany). select a sales tax code to which sales taxes are posted when invoices are settled with payments. select the Conditional sales tax check box. and pay this amount to the sales tax authorities. including any other taxes. Select the Negative sales tax percentage check box to allow a negative tax percentage for the sales tax code. On the Calculation tab. click Setup. The tax code that this calculation is based on must exist in the system.

click Sales tax. select the unit to use when taxes are calculated.10 Round-off = 1.00 in the field.765. 5-27 .765. enter 10.765. FIGURE 5. click Sales tax codes.435 USD with different rounding values set up.00 Round-off = 100. For example.43 98. The Rounding form field indicates the kind of rounding to use.765.01 Round-off = 0.00 NOTE: There is no requirement that the value be less than 1. 2. Round-off = 0.00 98. On the Calculation tab in the Unit list. Enter the lowest absolute value of a calculated tax on the Calculation tab in the Round-off field. then click the Calculation tab. this Unit field is mandatory.Chapter 5: Sales Tax Setup 3.7 SALES TAX CODE CALCULATIONS Procedure: Create a Sales Tax Code . enter the value as a decimal (0. if taxes should round off to a unit that is 1/100 of the currency of the tax. click Setup.800. If the value must round to the nearest 10.00 98.40 98.Calculation Rounding Options Perform the following steps to set up rounding when you create a sales tax code: 1. If the transaction is expressed in another unit. Refer to the following table for rounding on the amount 98. it converts automatically according to the Unit conversion. Click General ledger. NOTE: If the basis for tax is the number of units.01).

00. and add the duty amount to the net amount before the sales tax is calculated.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Sales Tax Code . . Select the Calculate before sales tax check box to calculate and add a duty or tax to the net amount before sales tax is calculated.Calculation Packing Duty Select the Packing duty check box to specify that the sales tax code is a packing duty. • The total amount is 127. • The net amount is 100. the unit of measure is converted to the unit of measure of the product as shown in the Unit field in the Product per company details form.50. For example.50. • The Calculate before sales tax check box is selected. Percentage of net amount is selected. • The purchase duty is 10. the unit that it is converted to depends on whether or not this field is selected. • The sales tax is calculated as (100 + 10) x 25% = 27. When you convert a unit of measure. Example: 5-28 • In the Origin field. • The sales tax is 25 percent. • If this check box is selected. you could calculate a duty and a sales tax on the same transaction. You can only select this check box when the Amount per unit option is selected in the Origin field. • If this check box is clear. the unit of measure is converted to the unit of measure displayed in the Unit field in the Sales tax codes form.00.

in the Taxable sales list. click Sales tax.Report Setup Perform the following steps to create sales tax codes: 1. click Setup.Additional Calculation Options Perform the following steps to set up additional calculation options when you create a sales tax code: 1.8 SALES TAX CODE REPORT SETUP 5-29 . you can select the number of the field in the tax report that contains taxable sales. Insert the Reporting code numbers to facilitate reporting on the Report setup and Report setup . click Sales tax. FIGURE 5. then click Sales tax codes 2. Enter the Percentage/Amount in the Values form. Procedure: Create a Sales Tax Code. Enter Values to set up the sales tax rate. click Setup. For example. Click General ledger. A series of forms exists within Microsoft Dynamics AX. Frequently the tax authorities have special forms with numbered cells for reporting of taxes. click Sales tax codes. Also refer to the procedure on how to create sales tax codes intervals. Close the Values form.credit note tab pages. Click General ledger. The sales tax code is included in these reports in the cell indicated in this field. Click the Values button on the action bar.Chapter 5: Sales Tax Setup Procedure: Create a Sales Tax Code . which contains numbered cells that you can report to various authorities. then click the Reports Setup FastTab or click the Report setup.credit note FastTab. 2.

00 USD by completing the following table with the provided information? Setup 1 Rate 5-30 Duty 1 10% Duty 2 20% Formula Setup 2 Calculation Formula Calculation . In the Method of calculation list.Incomplete Table How would you apply the information in the table above to determine the effect of each setup on an invoice for 10.Use percentage of amount Setup 2 . Phyllis is asking your assistance in reviewing the calculation of sales tax by using various options available in Microsoft Dynamics AX. NOTE: In the Parameters form (click General ledger. Contoso's customer base includes many international customers. The following table shows Phyllis's review of setups in Contoso: Setup 1 . select the Calculation date type to determine the date that sales tax calculates. Example Setup: Calculation Methods for Sales Tax Codes The following is an example showing a sample setup for sales tax codes: Scenario: Phyllis is the Accounting Manager at Contoso. then click the Sales tax link in the navigation pane). click Setup.Use percentage of sales tax Rate Duty 1 Percentage of net amount Percentage of net amount 10% Duty 2 Percentage of net amount Percentage of sales tax (Duty 1 in the sales tax on sales tax list) 20% Sales Tax Calculation Percentage of gross amount Percentage of gross amount 25% Example Setup: Calculation Methods for Sales Tax Codes. To increase the understanding of sales tax. select whether the sales tax should calculate for each line or the total amount. click General ledger parameters.Financials I in Microsoft Dynamics® AX 2012 Rounding and Report Setup Notes NOTE: Click General ledger > Reports > Base data > Sales tax codes to print a report listing all the sales tax codes.

25 $ 6.00 Duty 2 20% $10 * 20% $2.00 $10+1+2 .20 +3.50 $16.00 $10 * 10% $1.25 $10 + 6.20 * 25% $ 3.50 Total Sale $10 + 6.20 $13 * 25% $ 3.20 $10+1+2 $13.Chapter 5: Sales Tax Setup Setup 1 Setup 2 Gross Amount Sales Tax Calculation 25% Duty + Sales Tax Total Sale The completed table is shown in the next lesson section.25 $13.30 Duty + Sales Tax $1+2+3.Completed Table The completed table is as follows: Setup 1 Setup 2 Rate Formula Calculation Formula Calculation Duty 1 10% $10 * 10% $1.00 ($10+1)* 20% $2.50 Gross Amount Sales Tax Calculation 25% 5-31 .30 $ 6. Example Setup: Calculation Methods for Sales Tax Codes.25 $1+2.25 $16.20 $13.

then click Sales tax codes. Procedure: Create Sales Tax Codes Intervals . then click Setup. then click Sales tax.Effective Dates Perform the following steps to set up the From date and To date field in sales tax code intervals. click Setup. 5-32 . click Sales tax codes. and sales taxes over the upper limit amount are set to the upper limit amount automatically. 1.Financials I in Microsoft Dynamics® AX 2012 Sales Tax Codes Intervals Use Microsoft Dynamics AX to specify the following: • The sales tax rates to use in different intervals • A lower and upper amount limit for sales tax calculations Sales taxes lower than the minimum limit amount are not recorded. then click the Values button. click Sales tax. Enter the first date the tax limits apply in the From date field. Changes to minimum and upper limits do not affect sales tax that is already updated and posted. 3. 2. Enter the last date the tax limits apply in the To date field. both Limits and Values: Click General ledger. You can attach the limits to specific dates. With From date and To date fields. The sales tax code defines the limits. The posting date determines when the tax falls outside the given period. indicate a period that the calculated tax applies to. then click the Limits OR click General ledger. NOTE: The previous limits are visible because they are not overwritten when users make changes.

it is adjusted automatically to match this amount. Enter the lower sales tax limit in the Minimum sales tax field. close the old period to indicate an ending date in the To date field and create a period with a new starting date in the From date field.9 SALES TAX LIMITS Procedure: Create Sales Tax Codes Intervals .Chapter 5: Sales Tax Setup If you have made changes to the limits. FIGURE 5. it is reduced to zero automatically. Enter the upper sales tax limit in the Maximum sales tax field. If the tax is more than the amount indicated. You can change the limits taking effect at a later date. The amount in this field must be the same currency as the currency specified in the sales tax code. Extend the old period by changing the date in the To date field. If the tax is lower than this minimum amount. 2.Minimums and Maximums Perform the following steps to set up the minimums and maximums in sales tax code intervals in the Limits form: 1. The amount in this field must be the same currency as the currency specified in the sales tax code. 5-33 .

These minimum and maximum sales tax limits are the minimum and maximum sales tax that will be calculated on the sale. These minimum and upper limits are the minimum and upper sales amount to which the amount entered in the Value field applies. Values define the tax to calculate. select the origin for the sales tax limits in the Marginal base list. Sales Tax Code Intervals. o Net amount of invoice balance . 2. the entry in the Value field on the Overview tab of the Values form is the percentage value used in the calculation. This includes any other taxes. Limits define the tax to calculate. excluding any other taxes. o Net amount per unit . excluding any other taxes. In the Sales tax code form on the Calculation FastTab.value of the line. If the basis is several units. based upon the effective interval dates and the minimum and upper limits. define the tax percentage. If the basis for the calculation of tax is an amount.value of the line. Select from the following options: o Net amount per line .Marginal Base Options Perform the following steps to set up the marginal base options in sales tax code intervals: 1.value of the unit. In the Value field. or amount for each unit. based upon the effective interval dates and the minimum and maximum sales tax.the total value for the invoice. This can involve the unit price specified by using a unit in the Unit field. such as Purchase duty or Packing duty.Financials I in Microsoft Dynamics® AX 2012 Perform the following steps to set up the field in the Values form: 1. You can include only one tax code with this or the next property in the individual calculation. 2. excluding any other taxes. For a sales tax code. after all tax calculations are performed. o Gross amount per line .Values Versus Limits For a sales tax code. 5-34 . on either a percentage or amount per unit. 3. You can define units by using the Unit field found on the Calculation tab on the Sales tax codes form. the entry in the Value field on the Overview tab of the Values form is the amount for each unit used in the calculation. In the Values form. Procedure: Create Sales Tax Codes Intervals . specify a sales tax rate for the different intervals.

Chapter 5: Sales Tax Setup o o Gross amount per unit . In the Sales tax transactions form. You can include only one tax code with this property in the individual calculation. Click the Inquiries button > Posted sales tax to display posted sales tax transactions for a sales tax code and an itemization of each tax. Use this function for inquiries and error detection. You can include only one tax code with this or the previous property in the individual calculation. NOTE: Click the Inquiries button > Included in sales tax groups or Included in item sales tax groups to view or attach sales tax codes to sales tax groups or item sales tax groups. Invoice total incl.the base is divided into intervals. The part within a given interval is calculated automatically based on the tax rate for that interval. Procedure: Create Sales Tax Codes Intervals .the sales tax calculates for the whole amount. click Voucher to view related ledger transactions. Select from the following options: o o Whole amount . This includes any other taxes. which the tax rate for the interval that includes the transaction determines. 5-35 . other sales tax amounts . Select the origin for the sales tax limits in the Method of calculation.Method of Calculation Perform the following steps to set up the method of calculation in sales tax code intervals: 1. Click the Recalculate tax button to recalculate taxes on unposted transactions if the settings of a sales tax code have been modified. in the Sales tax code form on the Calculation tab. 2. This includes any other taxes.The total value for the invoice. Interval .value of the unit.

00 50. the Controller for Contoso. 2. and then click Sales tax codes.001 8% NOTE: The labs in this chapter must be completed in order as they are dependent on the previous lab. click General ledger.00 9% 100. Ken asks for your assistance in setting up tax codes that comply with the new structure. Add the lines to the Values form. The notice specifies the following rates: Minimum limit Maximum limit Tax rate 0. Suggested dates are 1/01/2006 . Scenario Ken.001 100. Need a Little Help? 1. All of them will be assigned the same date range assigned. 5-36 . then click Setup.00 10% 50. Challenge Yourself! 1.Financials I in Microsoft Dynamics® AX 2012 Lab 5. 3. then click Sales tax. Microsoft Dynamics AX will require an 'ending' date for the tax. Locate the line for AV_FLST. Step by Step Edit the State of Florida Tax code record: 1. has received a notification from the State of Florida that as of 07/01/2011.5 . 2.6/30/2011. a tiered tax is due on video recorder sales. Before you add a new line to the Values form. you must enter dates on the existing line. Plan to enter an artificial date of 12/31/2020. On the Navigation Pane. Click the Values button. 2.Set Up Sales Tax Codes Intervals During this lab you get to practice setting up sales tax code intervals. Use sales tax code intervals to structure the AV_FLST tax rate in Microsoft Dynamics AX for the new rates.

enter 0. 5.Chapter 5: Sales Tax Setup Edit the existing line by adding dates: 1. 4.00. In the Value field. Repeat steps 1 through 8 to add the remaining tax intervals to the form. In the Minimum limit field. 3. In the Upper limit field. 8. Close the Values form. enter 10. 5-37 . Create the rest of the lines: 1. In the To date field. Click the New button to add a line. 7. In the To date field. 6.00. enter 07/01/2011. enter 12/31/2020. 2. 4. In the From date field. Click the New button to add a line. 3.00. enter 50. Close the Sales tax codes form. 2. In the From date field. enter 01/01/2006. enter 06/30/2011.

you must create two different sales tax groups that reflect the differences: • Foreign customers: this group would contain the Export Tax and Environmental Duty tax codes • Domestic customers: this group would contain the VAT and Environmental Duty tax codes After you create the sales tax groups. the tax codes appear as follows: Domestic customers Foreign customers VAT Yes No Export Tax No Yes Environmental Duty Yes Yes The two groups of customers (domestic and foreign) do not have identical tax needs. different tax rules apply when you trade with domestic and foreign customers.Example Comparison If your company needs the following tax codes. A careful analysis of the different types of customers and vendors that the company trades with is a good starting point for determining the types of Sales tax groups needed. attach the appropriate sales tax group to: 5-38 • Customers • Vendors • Ledger accounts .Financials I in Microsoft Dynamics® AX 2012 Sales Tax Groups A sales tax group includes all sales tax codes that apply when you trade goods or services with customers and vendors. In most countries. Therefore. Sales Tax Groups . Therefore. here is an example of how to apply sales tax codes to a sales tax group: • VAT (only applies for domestic customers) • Export Tax (only applies for foreign customers) • Environmental duty (applies to all customers) In a table. and the setup of those Sales tax groups. The tax rules for foreign trade frequently are split up based on bilateral and multilateral trade agreements. you must create tax groups depending on the taxes that may apply for a certain group of customers or vendors.

Click General ledger. FIGURE 5. such as country. click Sales tax. click Sales tax. Enter a form of identification to identify a sales tax group based on specific criteria. you usually assign the same Sales tax group to similar trading partners in the system. or county. click Setup. 5-39 . click Sales tax groups. then click the General FastTab. 2. state. click Setup. The correct tax codes used by the system are attached to this Sales tax group. Enter a name that identifies the sales tax group in the Description field.General Information Perform the following steps to set up additional fields in Sales tax groups: 1. 2. 3. click Sales tax groups.Chapter 5: Sales Tax Setup Procedure: Create a Sales Tax Group Because the geographic location of the customer or the supplier determines taxes. Enter a unique name for the sales tax group in the Sales tax group field. This provides another method to identify the group. then click the New button. Click General ledger.10 SALES TAX GROUP FORM Procedure: Create a Sales Tax Group . Perform the following steps to create a sales tax group: 1. in the Country/State and County/Purpose fields. The Sales tax group then associates with customer information specified in the Sales tax group field found on the Setup tab in the Customers form.

This field is available if your company configuration includes sales tax jurisdictions. This option is a logical selection for sales tax groups that are based on sales tax jurisdictions for which you have selected the Exempt check box on the Jurisdiction setup tab. • Sales tax code combinations . • No details – no sales tax details are shown on the invoice. • Sales tax groups – the sales taxes are shown by sales tax group. . a new tab called Jurisdictions setup appears and you cannot add sales tax codes to the Sales tax group. 5-40 • Sales tax codes – the sales taxes are shown by sales tax code.Print field. States in the United States have different requirements.Financials I in Microsoft Dynamics® AX 2012 3. You can see the value in the Round-off field on the Calculation tab of the Sales tax codes form. NOTE: If the Sales tax jurisdictions value is selected in the Sales tax group setup list. When you create a sales tax group. If the company is located in a country with sales tax jurisdiction. The Rounding by field controls the rounding principle that applies to the taxes of the sales tax group. The two kinds of rounding that you can select that apply to the sales tax group are: • Sales tax codes – rounding is according to the sales tax code roundoff. the selection in the Reverse sales tax on cash discount field in General ledger parameters defaults to the field. so you must set up this information on the sales tax group. select a code in the Sales tax group setup list. 4.rounding is according to the sales tax code combination that is attached to each invoice line.Additional Information The following is additional information on the General FastTab in the Sales tax group form. Rounding By. select the Sales tax jurisdictions value. Printing Taxes on Invoices Select the way you want the sales taxes to appear on the printed invoice by selecting one of the following in the Invoicing . Select the Reverse sales tax on cash discount check box to reverse sales tax on a cash discount. Select Sales tax setup section.

If the company is not responsible. if necessary. Click the Add button to create a new tax code line. there are no deductions for taxes on purchases and the tax posts together with the expense. the system credits the tax to the account shown in the Use-tax payable field in Ledger posting groups. This is the default sales tax group for transactions that involve the customer. Additionally. If the Apply U. If the vendor did not charge tax.Setup Perform the following steps to set up additional tax codes with this Tax Group: 1. the tax posts to the same account as the expense. How the tax is debited depends on how you set the Apply U. 2. The value is entered automatically from the Use-tax field in Sales tax groups.Chapter 5: Sales Tax Setup Recalculating Taxes on Unposted Transactions After changing the settings of a Sales tax group you can click Recalculate taxes on all transactions with the modified Sales tax group or all unposted transactions. taxation rules parameter option is selected in General ledger parameters . 5-41 .S taxation rules parameter in the General Ledger parameters. the vendor calculates and pays the tax. you can change the sales tax group on individual transactions before you post transactions. you can change the sales tax group on individual transactions. The default sales tax group appears automatically on transactions for the customer or vendor. It is also possible to specify a default sales tax group on Customer and Vendor groups which will then be defaulted to customers and vendors for the group. Select one or more sales tax codes to use with the sales tax group. Procedure: Create a Sales Tax Group .S. for example. If the option is not selected. the ledger account for office equipment. however. but you can change it if necessary. 3. the tax posts to the account specified in the Use-tax expense field in Ledger posting groups. Select the Use-tax check box to indicate whether the company is responsible for calculating and paying use-tax on the purchase. As with all defaults. Procedure: Create a Sales Tax Group .Attach to Customer or Vendor Attach a sales tax group to a customer or vendor on the Setup area of the Customers form or Vendors form. you can attach a default sales tax group to each ledger account for purchases or sales excluding a customer or vendor are posted. The fields on the Setup tab automatically fill in with values from the Sales tax codes form.

you must enter gross amounts in journals. This is the setting that will apply to amounts on journals if no other information is supplied through a default setting of higher priority or through a manual setting in a line. If you select the Amount incl. Lines in journals that are patterned on a specific journal template automatically receive the journal template default setting regarding the inclusion of sales tax in journal amounts.Financials I in Microsoft Dynamics® AX 2012 Amount Includes Sales Tax. Journal names form – specify a default setting that overrides the default setting on the Parameters form.Additional Information You can indicate if the amounts entered in journals include sales tax or do not include sales tax. The net amount is posted to the ledger account entered in the journal. The net amount is posted to the ledger account entered in the journal. The highest priority setting is entered automatically on journal templates. Individual Journal forms – specify a default setting on an individual journal to override the default settings of the Journal names and Parameters forms. sales tax field. you must enter net amounts in journals. and journal lines as they are created. sales tax field at any time. journals. sales tax field. The sales taxes are calculated on the basis of the net amount and are posted automatically. If you do not select the Amount incl. General ledger. Parameters form – specify the default setting of lowest priority regarding the inclusion of sales tax in journal amounts. You can specify this information in three different forms: General ledger. but you can select or clear the Amount incl. 5-42 . Sales taxes are calculated on the basis of the gross amount and posted to the sales tax account. unless you have entered a setting on the journal itself.

Click Inventory and warehouse management. o Investment – the sales tax line amount is included in the Investment value column. 5-43 . 3. This information appears on reports and in other areas throughout Microsoft Dynamics. 4. This column is relevant only for Belgium. Click General ledger. Select the sales tax code for an item sales tax group on the Setup tab. The Item sales tax group also may include most of the sales tax codes in the system. then click Item sales tax groups. on the Setup tab. you must select it for the sales tax group and the item sales tax group. The association between sales tax codes and the item sales tax group is in the Item sales tax group form. Enter a unique name for the item sales tax group in the Item sales tax group field. Procedure: Set Up a Default Item Sales Tax Group for an Item To ensure sales tax calculates on all transactions for a specific item group. NOTE: This information is in Item sales tax group. click Setup. The Item sales tax group includes all the sales tax codes that apply when you sell that item. you must indicate how taxes are calculated for each item.Chapter 5: Sales Tax Setup Item Sales Tax Groups Because items generally determine taxes. When you create the Item sales tax groups. attach the group to Items. 2. click Inventory and then Item groups. Select where the item sales tax line amount will be included on the EU sales list in the Reporting Type field: o Blank – the sales tax line amount is included in the Not assigned value column. click Sales tax. 2. set up a default item sales tax group. and a description in the Description field. o Service – the sales tax line amount is included in the Services value column. Select an item group and then click the Setup FastTab. The sales tax codes calculated are determined automatically when you post. For a sales tax code to be valid. Perform the following steps to set up the default: 1. Procedure: Create Item Sales Tax Groups Perform the following steps to create item sales tax groups: 1. o Item – the sales tax line amount is included in the Items value column.

the item sales tax group attached to the item automatically is entered on the journal lines. click Setup. Click General ledger. This value is the default item sales tax group for the selected item group when you enter it on a sales purchase line. purchase journals. Follow these steps to set up a default item sales tax group for a particular ledger account: 1. Select a value in the Item sales tax group lookup field in the Purchase tax section. unless a specific item sales tax group is attached to the ledger account that you enter in the line. Procedure: Set Up a Default Item Sales Tax Group for a Ledger Account Perform the following steps to select a default item sales tax group for all ledger accounts: 1. NOTE: In sales journals. 2. 2. click General ledger parameters. Click the Sales tax link on the navigation pane and then select the default item sales tax group in the Item sales tax group list on the General FastTab. if necessary You can change any default item sales tax group that appears automatically on a journal line as necessary before the transaction posts. The item sales tax group in this field is entered automatically on journal lines as you create them. 4.Financials I in Microsoft Dynamics® AX 2012 3. Select the default item sales tax group in the Item sales tax group list on the Setup tab. click Chart of accounts and select the ledger account. Select a value in the Item sales tax group lookup field in the Sales tax section. 5-44 . and other journals where you enter an item number. Click General ledger. This value is the default item sales tax group for the selected item group when you enter it on a purchase order line. Set Up a Default Item Sales Tax Group for a Ledger Account To ensure sales tax calculates on all journal transactions that you post to ledger accounts: • Set up a default item sales tax group for all ledger accounts • Set up default item sales tax groups for particular ledger accounts.

7. town. In the Settlement period and the Ledger posting group lookup fields. using jurisdictions makes it easier for a company to pay correct tax amounts to the authority. create sales tax codes for the sales taxes that the sales tax authority collects in the sales tax jurisdiction. 3. enter the name of the jurisdiction. for example a district. 5-45 . In the Currency lookup field. NOTE: A sales tax jurisdiction is not a geographical area. then click Sales tax jurisdictions. Click General ledger. Each jurisdiction is assigned one or more sales tax codes and has only one tax authority. 6. A sales tax jurisdiction is a grouping of sales tax codes for a particular settlement period (including the sales tax authority). Additionally. A geographical area can be covered by several jurisdictions. Procedure: Set Up Sales Tax Jurisdictions Perform the following steps to set up sales tax jurisdictions: 1. If a state has many jurisdictions and a complex tax code structure. Click New button on the toolbar to create a new sales tax jurisdiction record. click Sales tax. In the Name text box. 5. but is not a legal requirement. country or state. select the currency of the sales tax jurisdiction. transactions that are posted for the sales tax jurisdiction are posted to the accounts of the Sales tax ledger posting group which is assigned to the tax account group that is selected in this form. In the Sales tax codes form. The sales tax jurisdiction functionality is designed for companies that operate in the United States. Some state tax authorities collect taxes for all the jurisdictions within the state. click Setup. The form is available if an administrator enables the Sales tax jurisdictions configuration key.Chapter 5: Sales Tax Setup Sales Tax Jurisdictions Use Sales Tax Jurisdiction functionality to create the sales tax jurisdictions for which the company must collect sales tax. Click Sales tax codes. Make sure that the configuration key is turned on for sales tax jurisdictions (see Licensing configuration help) 2. select values. 4. 8. enter a unique identifier for a sales tax jurisdiction. In the Sales tax jurisdiction code text box.

Close the Sales tax groups form. select the rounding convention for the sales tax group. in the Sales tax jurisdiction code lookup field. select a jurisdiction. select the way you want sales taxes printed on the invoice. The sales tax codes that are attached to a selected sales tax jurisdiction appear automatically on the Setup tab. Click General ledger. and sales taxes are calculated for the transaction. and click Sales tax groups. select Sales tax jurisdictions. In the line for the sales tax code. When a journal line or purchase or sales order line is created. 2. On the Jurisdiction setup tab. 6. In the Rounding by drop-down list.Financials I in Microsoft Dynamics® AX 2012 NOTE: Click General ledger > Reports > Base data > Sales tax codes. 5. click Sales tax. the sales tax codes on the sales tax jurisdictions that are attached to sales tax groups are matched to the sales tax codes on the item sales tax groups. In the Sales tax group setup drop-down list. 7. click Setup. If necessary. 4. Procedure: Set Up Sales Tax Groups for Jurisdictions Perform the following steps to set up sales tax groups for jurisdictions: 1. add the sales tax jurisdictions that apply to the sales tax group. 3. In the Print drop-down list. you can change the sales tax codes of the jurisdiction in the Sales tax jurisdictions form. 5-46 . and enter information about tax exempt status and use tax if applicable.

000 USD from Blue Yonder Airlines. April. and comes to you for help because the necessary setups are to post this invoice are not in Microsoft Dynamics AX. the accounts payable coordinator.6 . the Controller for Contoso. Arkansas where business has not previously been conducted. located in Little Rock. receives an invoice for 50.Chapter 5: Sales Tax Setup Lab 5. Scenario Ken. has decided to do business with a new vendor.Comprehensive Setup of Sales Tax During this lab you gain comprehensive practice in setting up sales tax information in Microsoft Dynamics AX. You determine to do the following: • Set up Blue Yonder Airlines as a vendor • Set up the Arkansas Department of Revenue as a vendor • Set up two accounts in the Chart of Accounts: one for the Arkansas state sales tax payable (account 220107) and one for the Little Rock city sales tax payable (account 220245) • Set up both ledger posting groups • Set up a sales tax authority • Set up sales tax settlement periods • Set up sales tax codes • Set up sales tax code intervals • Set up sales tax groups • Set up item sales tax groups The vendor's information is in the following table: Field Value Name Blue Yonder Airlines City Little Rock State AR ZIP Code/Postal Code 72205 Group 10 Currency USD Terms of Payment N030 5-47 . Blue Yonder Airlines.

S. Plan to set up two sales tax codes.Additional Lab Data The information for Arkansas is in the following table: Field Value Name The Arkansas Department of Revenue Search Name AR tax Group 70 Terms of Payment M15 Method of Payment USAUSD_CHK You can set up the sales tax authority by using the U. Enter a sales tax settlement period (AR) to use for each code. Plan to round taxes in a typical manner to the nearest penny.Financials I in Microsoft Dynamics® AX 2012 NOTE: The labs in this chapter must be completed in order as they are dependent on the previous lab. by using the codes ALL_LRCITY and ALL_ARST. one for each authority. Then set up three new periods starting with the beginning of the current month. The tax breakdown for city and state taxes is as follows: • City of Little Rock: three percent. Setup a sales tax authority by using ARA as the authority name. by using ARST for Arkansas and LRAST for Little Rock. Use the standard ledger posting group for each tax code. the maximum tax limit that can be paid is 1000 USD in sales tax • State of Arkansas: two percent Challenge Yourself! 1. Comprehensive Setup of Sales Tax . The settlement period is an interval of one month. Any gain or loss that occurs when you round will post to account 618160. 4. Setup two ledger posting groups. 3. 5-48 . 2. Setup a sales tax group by using ARLRA as the group name. Report layout. The term of payment is 15 days. 5.

Verify that the tab entries are correct. In the Name field. On the Navigation Pane. the next available vendor number is assigned automatically based on setups in the sample data. sales tax field found on the Setup tab of the journal. enter Blue Yonder Airlines. Review the tax calculation in the journal. click the arrow to select 10. enter Blue Yonder. 10. 9. Make sure when creating the journal that you have deselected the Amount incl. 9. 12. record the invoice in an accounts payable Invoice journal. 5. then click All vendors. 6. 5-49 . Click the Payment FastTab. 14. 3. In the Method of payment field. Add the two new sales tax codes to the ALL item tax group. Note that Sales tax jurisdictions will not be used in this lab. use the arrow to select USAUSD_CHK. 13. click Vendors. 2. 8. In the Country/region field select USA from the drop down list. refer to the lesson titled Sales Tax Overview. In the Search name field. In CEU.Vendor button on the action pane. Click the Address FastTab. Set your session date to 6/30/2011. After you complete the sales tax setup. 8. In the Zip code field. In the Group field. Click the OK button and close the window. Need a Little Help? For a visual representation of the sales tax setup process.Chapter 5: Sales Tax Setup 7. In the Name and description field enter Primary. 7. 11. Review the tax calculation by clicking Inquiry and then clicking Sales tax totals. Click the New . 4. use the arrow to select N030. and click the Add button to create a new address. enter 72205. These values were populated automatically based on setups in the sample data. It is not necessary to post the invoice. Step by Step Set up Blue Yonder Airlines as a vendor: 1. Close the window. In the Terms of payment field.Suggested steps. click Accounts payable.

then click Main accounts. In CEU. In the Search name field. In the Main account field. On the Navigation Pane. adding an account 220245 for Little Rock city sales tax payable. In the Sales tax payable field. the next available vendor number is assigned automatically based on setups in the sample data 3. 9. 4. enter Arkansas State Tax. enter ARST. Close the Main accounts form. In the Ledger posting group field. Set up accounts in the Chart of accounts account for sales tax payable: 1. 9. On the Navigation Pane. use the arrow to select USAUSD_CHK. Close the Account group form. 8. click the arrow to select account 220107. enter Arkansas state sales tax payable. Click the New . Repeat steps 2 through 8. In the Name field. 6. click the arrow to select Balance sheet. 6. use the arrow to select M15. In the Method of payment field. In the Group field. click Setup. On the Navigation Pane. 5. 5. 5. In the Posting type field. 6. In the Settlement account field. then click Ledger posting groups.Financials I in Microsoft Dynamics® AX 2012 Set up the Arkansas Department of Revenue as a vendor: 1. Click the New .Main account button on the Action Pane. Close the Vendor form. In the Name field. 4.Vendor button on the action pane. 2. click General ledger. Click the Payment FastTab. click Accounts payable. 8. Click the Setup FastTab. click Sales tax. 2. In the Terms of payment field. click Vendors. enter The Arkansas Department of Revenue. Click the New button to add a line. 8. Set up ledger posting groups: 1. click the arrow to select account 220107. click General ledger. 7. Repeat steps 2 through 6. 7. click the arrow to select 70. In the Description field. 5-50 . 7. enter 220107. click the arrow to select Sales tax. enter AR tax. 2. In the Main account type field. adding a ledger posting group for Little Rock. 3. click Common. 3. 4. then click All vendors.

9. In the Sales tax code field. click General ledger. Close the Sales tax settlement periods form. In the Settlement period field. Click the New button to add a line. In the Authority field. click the arrow to select The Arkansas Department of Revenue. 5.01. 3. 5. 4. click Sales tax. In the Authority field. report layout. Click the New button to insert a line. In the Report layout field. click General ledger. 13. use the arrow to select Months. 9. 3. then click Sales tax settlement periods. 2. 4. In the Terms of payment field. enter Arkansas Monthly. In the Name field. In the Vendor account field. 8. 10. click the arrow to select ARST. click Setup. Click the Add button two more times to create two additional months. On the Navigation Pane. If a new line is not available. 5-51 . click Sales tax. click the arrow to select U. In the Settlement period field. click Sales tax. In the Ledger posting group field. In the Round-off field. 8. Set up a sales tax settlement periods: 1. 6. enter AR.Chapter 5: Sales Tax Setup Set up a sales tax authority for Arkansas: 1. In the From date field. 6. 7. 14. 11. enter 06/01/2011. click the arrow to select AR. 4. Click the Values button on the menu bar. enter ARA. 7. enter Arkansas State . enter 06/30/2011. 2. then click Sales tax authorities. click Setup. On the Navigation Pane.All. click the arrow to select ARA-Arkansas Authority. 12.S. click Setup. 5. click the arrow to select Normal. In the Period interval field. then click Sales tax codes. 2. Set up sales tax codes and sales tax code intervals for Arkansas and Little Rock: 1. Close the Authority form. In the Description field. press the Add button to add a line. use the arrow to select M15. Click the New button to add a new line. click General ledger. Click the Periods FastTab. enter Arkansas Authorities. In the Number of units field. 3. 6. On the Navigation Pane. In the Rounding form field. enter ALL_ARST. enter . In the To date field. In the Name field. enter 1. 7.

00 Close the Limits form.Financials I in Microsoft Dynamics® AX 2012 8. 12. Close the form. In the Value field. In the Sales tax group setup field.00. click Setup. 19.00 for the percentage. In the Sales tax code field. enter 0. enter 2. click Setup. In the Rounding by field. In the Upper limit field. 15. click General ledger.00 for the percentage. enter 3. 10. click Sales tax. In the Sales tax group field. Close the Values form. In the Minimum limit field. enter 1000. Click the Limits button. Close the Values form. Click the Add button to add a line. 15. 4. Repeat steps 2 through 6 for Little Rock and enter ALL_LRCITY. use the arrow to select ALL_LRCITY. In the Minimum limit field. 13. enter ARLRA. 10. 6. and then click Item sales tax groups. select Sales tax codes. In the Minimum sales tax field. enter 0. Close the Sales tax group form. Click the New button to add a line. 14. In the left hand Navigation pane. 14. 17.00. On the Navigation Pane. In the Sales tax code field. 16. In the Sales tax code field. Click the Setup FastTab. use the arrow to select ALL_ARST. select Sales tax codes. Click the Add button to add a line. On the Navigation Pane. 5-52 . 11. Close the Sales tax codes form. In the Sales tax code field. 12. click the ALL line. 20. In the Description field. 16. 17. 21. select ALL_LRCITY. Click the Setup FastTab and click the Add button. 11. enter 0. then click Sales tax groups. Set up a sales tax group: 1.00. In the Upper limit field. 9. 18. 7. 19. enter 0. 8. Click the Add button to add a line. click General ledger. 18. 3. 13. 22. Click the Values button. In the Value field. 2. 5.00. click Sales tax. enter Arkansas and Little Rock. select ALL_ARST.00 In the Maximum sales tax field. 9. enter 0.

6. enter COMPLAB. In the Sales tax group field. 9. c. 13. Click the Setup tab.000. 12. three percent of 50. In the Item sales tax group field. Click the Lines button. two percent of 50. 7. Click the Inquiries button. 14. then click Sales tax totals.000. b. Click Accounts payable from the Navigation pane. Verify the correct calculation of sales tax: a. 11. click Journals. 2.500. the maximum tax should be 1.000. click Invoices. 8. Select Blue Yonder Airlines in the Account field.000 is 1. Enter 50. and make sure that the Amount include sales tax check box is not selected. Accept the Voucher number and Vendor Account type.Chapter 5: Sales Tax Setup Record the invoice in an accounts payable invoice journal: 1. Total tax should be 2. 3. Click the New button to add a line.000 is 1. 5-53 . 10. For Little Rock. however. For Arkansas. Close all forms. Select the APInv in the Name field. and click Invoice journal. Enter 618900 in the Offset account field.000 in the Credit field. 4. In the Invoice field. select ALL. Enter 06/30/2011 in the Date field. select ARLRA. 5.

6. 3. Use the GenJrn journal. click Setup. Select the GenJrn journal from the left hand Navigation pane. select the field. and then click Journal names. Step by Step Follow these steps: 1. Click the Sales tax link on the left hand navigation pane. 4.Financials I in Microsoft Dynamics® AX 2012 Lab 5. On the Navigation Pane. Close the form. click General ledger. select the field. then click General ledger parameters. 7.10). NOTE: The labs in this chapter must be completed in order as they are dependent on the previous lab. If it is specified that the journal amount includes sales tax. 8. and the sales tax amount is 10.7 .00 USD. In the Amount include sales tax field. Scenario Ken is the Controller for Contoso.00 USD. the net amount is 100. Close the form. click General ledger.00/1. 2. suppose the sales tax is ten percent and the total invoice amount is 110. Challenge Yourself! Help Ken find the two forms that can specify whether the journal amounts include sales tax. Need a Little Help? Check the General ledger parameters and the Journal names form. 9.00 USD (110. On the Navigation Pane. 5-54 . 5. then click Setup.Including Sales Tax in Journal Amounts During this lab you will set up sales tax in journal amounts. For example. then click Journals. In the Amount include sales tax field. Ken requests your assistance. He wants to include sales taxes in journal amounts to make it easier to create journal entries.

Select Latest corrections to select sales tax transactions that are included in the most recent settlement calculation made for the period.Sales Tax Payment Version Options Perform the following steps to select the kind of transactions to include in the Sales Tax Payment Report. Select Original to select sales tax transactions on the first posted settlement calculation for the period interval. In the Settlement period list. The report includes all subsequent payments that are posted for the settlement period. In the From date field.Chapter 5: Sales Tax Setup Sales Tax Transactions Sales tax transactions are important in every business. Select Corrections to select sales tax transactions that are not included in the first posted settlement calculation for the period interval. you can do the following: • Run a sales tax payment report • Revise the sales tax amount on a transaction before posting • Post sales tax on prepayments • Create transactions with conditional sales tax • Post sales tax for imported goods Procedure: Run a Sales Tax Payment Report Perform the following steps to run a sales tax payments report to calculate the sales tax that is due for a given period: Click General ledger. In Microsoft Dynamics AX. click Sales tax payment. 3. 2. then click Sales tax payment. 2. when clicking the Sales Tax Payment Version field: 1. enter a date within the sales tax settlement period to be calculated. the settlement calculation of the current job becomes the most recent settlement calculation. Select Total list to select all sales tax transactions to settle in the current period. 3. 4. In the Transactions date field. 5-55 . 1. If you select the Update check box and this option. select the settlement period for which the sales tax payment is being calculated. Procedure: Run a Sales Tax Payment Report . click Periodic. enter the posting for transactions which are posted for the Sales tax payment.

specify a number sequence for the sales tax payment voucher on the Number sequences tab in the General ledger parameters form. If you create a vendor account for the sales tax authority on the settlement period.Financials I in Microsoft Dynamics® AX 2012 NOTE: This field is not available if you select the Include corrections check box on the Sales tax section of the General ledger parameters form. To run the Sales tax payment report without posting it to check the status of the outstanding sales taxes. If you do not specify a vendor account. run the report with the Update option deselected. To post the settlement automatically. Procedure: Run a Sales Tax Payment Report. 4. Perform the following steps to enter additional information when you run a Sales Tax Payment Report: 1. You can make several payments for a single period. 2. a vendor transaction is created automatically when you select the Update check box and then click OK. 5-56 . you must create a payment to the sales tax authority manually to pay the sales tax you owe for the settlement period. Click OK to run the report. HINT: Click General ledger > Reports > Transactions > Sales tax list to print a report about sales tax postings that you have not yet updated.Using the Update Check Box The settlement calculation only includes the sales tax that you have not yet paid to the sales tax authority. 3. HINT: To report the sales tax payment correctly to the sales tax authority. select the correct report format in the Report Layout list on the Sales Tax Authority form.

Select Revision Type Perform the following steps to revise the sales tax amount: 1. Select the transaction line that needs the sales tax revision. occasionally a company may receive several invoices on which the sales tax amount differs from what Microsoft Dynamics AX calculates automatically. 4. most of the sales tax posting and calculation occurs automatically. 5-57 . View the original use tax for the sales tax code line in the Sales tax charge field. Click the Reset actuals button to reset the adjustment. Perform the following steps to change the calculated sales taxes in a journal line. To make the sales tax amounts match the invoices. Procedure: Revise the Sales Tax Amount on a Transaction Before Posting . the user may have to change the sales tax amount on a transaction before posting. However. Click File and then Save to save the record or click the Apply button. Select one of the three types of revisions: o Enter a correction of the sales tax amount in the Actual sales tax amount field for a selected sales tax code line on the Adjustment tab. This amount appears in the Total actual sales tax amount field at the top of the form. This amount distributes among the sales tax code lines that appear in the Temporary sales tax transactions form. o Enter an adjustment amount in the Total actual sales tax amount field if the transaction has several sales tax code lines. o Enter adjustments to the use tax amount in the Actual sales tax charge field if the sales tax code line applies to use taxes on the Adjustment tab. Click the Sales tax button to open the Temporary sales tax transactions form. or sales order line: 1. Click the Close button to close the form. 3.Chapter 5: Sales Tax Setup Procedure: Revise the Sales Tax Amount on a Transaction Before Posting In Microsoft Dynamics AX. purchase order line. 2. 2.

click Setup. the sales tax posts incorrectly. Click Accounts receivable. Select a posting profile in the Posting profile with prepayment journal voucher list that defines the ledger account where the sales tax transactions on prepayments post temporarily. When they use conditional sales tax. When you create a sales invoice and settle the prepayment. 4. then click Accounts receivables parameters. Transactions with Conditional Sales Tax Users generally report sales taxes in the period when they create the invoice. 2. Then select the appropriate ledger account on the Setup tab in the Sales tax prepayments list. Sales tax calculates and posts whenever you post a prepayment. although a sale has not been made. If they do not settle the invoice in full with a single payment. Select the Sales tax on prepayment journal voucher check box in the Ledger and sales tax section.Financials I in Microsoft Dynamics® AX 2012 Procedure: Post Sales Tax on Prepayments A tax authority can require a company to record sales taxes on prepayments from customers. 3. users must only report the sales tax and base amount to the sales tax authorities when they pay the invoice. the sales taxes automatically are reported proportionally to the actual amount paid on the invoice. an automatic transaction on the sales tax prepayments account offsets the first temporary sales tax transaction. Select the Prepayment journal voucher check box on the Payment tab when you post a prepayment through a journal. If you omit this step. Follow these steps to set up sales tax on prepayments: 1. NOTE: Create a posting profile for the purpose of posting sales tax on prepayments in Accounts receivable > Setup > Posting profiles in the Posting profiles form. 5-58 .

The EUR 1. Create two settlement periods: one to control conditional tax and one to report sales taxes to the authorities.000 plus EUR 2. Create a separate ledger posting group for posting the conditional tax to the separate ledger accounts (Optional). However. On August 10 the company reports taxes for July.250 is included in the sales tax payment because the customer paid only part of the invoice. because you can choose to post the conditional tax on the same account as the ordinary sales tax. the rest of the sales tax is reported.000 plus EUR 1. On July 15 the customer pays half of its balance due. If you post the conditional tax to a separate ledger account.500 is not included in the sales tax payment because the invoice is unpaid. the sales tax authorities require companies to report tax for the full invoice amount. 2.250 in sales tax. This step is optional.500 in sales tax. Create a separate ledger account(s) for posting sales taxes for invoices awaiting settlement (Optional). regardless of whether the full amount is paid. many countries legally require separation of these postings. In some countries. Procedure: Create Transactions with Conditional Sales Tax Perform the following steps to set up conditional sales tax on a transaction: 1. which is EUR 5.Chapter 5: Sales Tax Setup EXAMPLE: On June 10 Contoso creates an invoice of EUR 10. When the rest of the invoice is paid. you must create a separate ledger posting group to control the postings. The EUR 2. On July 10 the company reports taxes for June. A separate settlement period for the conditional tax has the following advantages: o It prevents the conditional sales tax from being reported incorrectly o It allows you to generate a report that displays undeclared conditional sales tax amounts 5-59 . 3.

you may need to post a document with the whole amount treated as sales tax. 2. must be the same for both. 3. Procedure: Sales Tax Import . Create a ledger posting group for import sales tax and attach the ledger posting group to the import sales tax code. This is necessary when you receive an invoice from the customs for imported goods. NOTE: The sales tax rate. 4. Create a sales tax code for import sales tax. Select the Conditional tax check box in the General ledger parameters form in the Sales tax section. Sales Tax for Imported Goods If you must report the import sales tax. Perform the following steps to make a direct posting of sales tax import: 1.Financials I in Microsoft Dynamics® AX 2012 Perform the following steps to continue to set up conditional sales tax on a transaction: 1. Select the sales tax code used for real sales taxes in the Payment sales tax code list. Create a ledger account for import sales tax.Direct Posting Direct posting of sales tax codes is the only situation in which the sales tax code manually is entered in the invoice journal on the General tab. 3. Set up sales tax groups and item sales tax groups. which is set up in the Values form. Scenario: Sales Tax Import A European subsidiary of Contoso purchased goods from a vendor that is located in a non-EU country. Such an invoice only states the tax amount. Create two sales tax codes for: o the conditional tax o the sales taxes that you must report 2. The conditional sales tax then transfers to the selected sales tax code. 5. The vendor did not charge sales tax on the invoice. 5-60 . select the General section. When you create the sales tax code for the conditional sales tax. The customs office sends an invoice to claim tax because the goods crossed the border and the company declared them at customs. This parameter ensures the sales tax amount transfers from the ledger account for temporary posting of conditional taxes to the real sales tax account.

you must associate a sales tax exempt description in trade documents. it groups the transactions according to sales tax exempt descriptions. Procedure: Create a Sales Tax Exempt Code Perform the following steps to provide justification to sales tax exemption: 1. click Journals. you must report why the sales order is sales tax exempted. The sales tax exempt description is saved on sales tax transactions for history and reprinting. 7. Sales Tax Exemption Certain countries or regions. require companies to record justification for sales tax exemption. click Invoices. Click Post to post the journal. 5-61 . To report sales tax exemption. Enter the invoice amount and select the import sales ledger account in the Offset account on the Overview tab. 2. for example the European Union. 3. then click Sales tax group. click Setup. 5. Close the Sales tax exempt code form. Select the import sales tax code on the General tab in the Sales tax code list. then click Sales tax exempt codes. • The actual invoice groups the sales tax transactions according to sales tax rates when the sales tax is not exempted. click Sales tax. When you post sales orders in Microsoft Dynamics AX: • The sales tax group and sales tax rate is recorded automatically on the transaction. The description of the sales tax exemption prints on the same line as the exempt code. Click General ledger. click Sales tax. click Setup. If the invoice has sales tax exemptions. 6. Close the form. On the Setup tab. Open General ledger. Click the New button to create a new sales tax exempt code and then enter the Exempt code and the Description. Open an invoice journal by clicking Accounts payable. The sales tax amount is registered in the import sales tax ledger account automatically. select the sales tax code that you want to use. The invoice amount also is listed in the Sales tax amount field. click Invoice journals. select the Exempt check box and select an exempt code in the Exempt code list. If no sales tax applies to trade documents.Chapter 5: Sales Tax Setup 4. then click Invoice journal lines.

Select the Print sales tax exempt number on interest notes and collection letters check box in Accounts receivable > Setup > Forms > Form setup > Interest notes/collection letter sections. 5. click Setup.11 SALES TAX EXEMPT CODES 5-62 . Select the sales tax code that you checked as exempt on the Sales tax groups form in the Setup tab in step 2 of this process. click Sales tax. FIGURE 5. NOTE: You can set up tax exempt numbers for customers and vendors in the Customers or Vendors form on the Setup tab. The print code and the sales tax rate do not print on the sales tax specification line because several sales tax codes with different sales tax rates may be involved. NOTE: You also can print sales tax exempt rates on interest notes and collection letters. then click Sales tax codes. Click Print code in the Print list in the Sales tax code form on the General FastTab to print the sales tax exemption description in trade documents.Financials I in Microsoft Dynamics® AX 2012 4. Open General ledger.

Chapter 5: Sales Tax Setup Lab 5. 5-63 .EU 115 Sales Tax Directive This is a lab on the EU 115 Sales Tax Directive. Create a new sales tax code named Exempt. Challenge Yourself! Set up the sales tax system so that.8 . Before implementing the EU sales tax directive. the Exempt code prints on invoices. NOTE: The labs in this chapter must be completed in order as they are dependent on the previous lab. Scenario Ken is the Controller of Contoso. Ken asks you to set this up. Use the Settlement periods. Use the following data: Field Data value Settlement period CA Ledger posting group CAST Sales tax group CA Customer 9100 Item number 10000 Exempt code Subsidiary Description Sales to Subsidiary Need a Little Help? Use the tax information that already is set up for California sales tax codes. test the setup using the California Sales tax groups. Ledger posting groups. a company that has decided to specify sales tax exemptions on invoices for their European subsidiary. when you use tax codes that are marked exempt in the tax system. and Sales tax groups already set up in the data for California.

16. Close the form. 23. Click the Add button to add a line. and select Subsidiary. 8. In the Name field. use the arrow to select CA. click Sales and Marketing. 5-64 . In the Sales tax code list. On the Navigation Pane. click the arrow to select Print code. On the Navigation Pane. click General ledger. click Common. Click Yes to confirm deletion. On the Navigation Pane. This will print the sales tax exemption description. 21. In the Sales tax code field. Click the Setup tab. 20. Click the ALL line in the left hand navigation pane within the form. enter Exempt. Click the New button to create a new sales tax exempt code and then enter Subsidiary in the Exempt code field and Sales to Subsidiary in the Description field. Click the New button to add a line. then click Sales tax exempt codes. In the Ledger posting group field. 26. In the Customer account field. 18. 6. then click Setup. 3. 4. Click General ledger. enter Sales tax exemption. click Sales orders. use the arrow to select the 'Exempt' sales tax code that you just created. 10. Click the New . 11. then click Item sales tax groups. click General ledger. then click Sales tax codes. click the arrow to select Exempt. Select the 'CA' sales tax group in the Sales tax group form. click Sales tax. Press the Add button to insert a line on the Setup tab. click General ledger. In the Setup section. On the Navigation Pane. click Sales tax. 28.Financials I in Microsoft Dynamics® AX 2012 Step by Step Follow these steps: 1. click Setup. click Setup. Close the Sales tax exempt code form. then click Sales tax. then click All sales orders. 14. 9. 19. delete all the sales tax codes by highlighting the rows and then by using the Remove button. 5. In the Print field. click Sales tax. Click to select the Exempt check box. 22. 12. 27. Close the form. 13. 25. Click the Exempt code field.Sales Order button on the tool bar to add a new order. Close the Sales tax code form. 15. use the arrow to select customer 9100. 7. click Setup. use the arrow to select CAST. In the Sales tax code field. 2. 17. In the Settlement Period field. 24. then click Sales tax groups.

if prompted to do so. In the Site field enter 1. use the arrow to select ALL 39. Click OK to close the Create sales order form. 35. Click Close to close the Infolog form. 30. 40. 37. use the arrow to select CA. Close the Sales order form. Click the Item number field in the lower pane. 38. Click the Line details FastTab and then click the Setup tab in the lower pane. 33. In the Sales tax group field. 31. In the Item number field. In the Quantity field. enter 10. 5-65 . enter 10000. In the Item sales tax group field. 32. 36. In the Size field enter 01.Chapter 5: Sales Tax Setup 29. 34. Click Yes to transfer the customer information.

Enter withholding tax groups and attach the relevant withholding tax codes on the Setup tab using the Add button. and periodically is paid to the authorities. Close the form. then click Setup. Withholding tax: • Is a tax on vendors that does not create sales tax transactions. then click Setup. delivers. Expand the General ledger node and select the Withholding tax check box. • Is reported in fixed reports. Procedure: Set Up Withholding Tax in Administration and General Ledger Perform the following steps to set up withholding tax in Administration and General Ledger: 1. Click General ledger. then click Withholding tax. The tax withheld posts to a ledger account for withholding tax. 6. click Setup. The buying company is legally responsible for submitting a report to the tax authorities and to the supplier. the buyer is legally responsible for paying withholding tax. that a supplier.Financials I in Microsoft Dynamics® AX 2012 Withholding Sales Tax In some countries. Close the form. • Is a liability if it is calculated on vendor payments and therefore only balance sheet accounts or liability accounts are valid accounts for posting withholding tax. and then click Withholding tax groups. 5-66 . Withholding tax is due on non-inventory deliveries. 2. frequently services. 7. who is not an employee of the company. Click System Administration. Click General ledger from the Navigation pane. then click Withholding tax. then click Licensing. The net amount (= invoice amount reduced by the withholding tax) is paid to the supplier. 5. 4. The buyer is legally responsible for withholding a certain percentage of the invoice amount at the time of payment. Enter withholding tax codes with values and limits using the Values and Limits buttons. 8. and then click Withholding tax codes. 3. then click Licensing configuration.

Perform the following steps to calculate and post withholding tax: 1. the Withholding tax group field displays the withholding tax group for the vendor. However. then click Journals. On the Action Pane in the New section click Payment journal. On the Invoice and delivery FastTab. • Allow for the journal to propose this setup by default when you enter a payment into a journal for a vendor who is set up for withholding tax. and then click Payment Journals. click Vendors. click Common. Click Accounts payable. • Keep basis data about the vendor for reporting. Click New to add new payment journal and then click the Lines button. Verify the Infolog information about the calculated withholding tax and close the Infolog. then click All vendors. 3. Setting up withholding tax makes it more efficient to: • Start the calculation of withholding tax when you pay a vendor invoice.Chapter 5: Sales Tax Setup Procedure: Set Up Withholding Tax in Accounts Payable Because withholding tax applies only to vendor invoices. 4. 7. then click Payments. 2. The default withholding tax group of the vendor displays in the withholding tax group list. Use the Mark check box in the succeeding form to modify the open invoices that you want to pay. 5. Enter a payment date and select the vendor account that is set up to calculate withholding tax. 5-67 . or in the General journal form in the General ledger section. Click Functions. or deactivate the withholding tax calculation for this particular payment. You can select a different group or delete the field value if no withholding tax should be calculated for the line. 2. On the Action Pane in the New section click Vendor. 6. Click Accounts payable. select the Calculate withholding tax check box and a Withholding tax group to activate the calculation when a payment is entered in a journal. then Settlement. By default. select a different withholding tax. and select Yes or No to remove existing marked transactions. you must complete the setup in the Accounts payable section. Procedure: Calculate and Post Withholding Tax Calculate and post withholding tax in the Payment journal form in the Accounts payable section. you also can edit the calculated amounts. Follow these steps to set up withholding tax in Accounts Payable and General Ledger: 1.

In the Payment journal form. In the General journal form. withholding tax is calculated automatically when the following conditions are true: • A vendor account that is set up to calculate withholding tax is selected for the journal line. 9. and then click Posted withholding tax to view withholding tax transactions with the possibility to view the ledger transactions for each withholding tax entry. Click General ledger. The payment amount on the journal line is reduced by the withholding tax amount. then click Withholding sales tax transactions to view a report about posted transactions with withheld sales tax. click Reports. • There is no entry in the Invoice field for the selected journal line. Procedure: Withholding Sales Tax Reports and Inquiry Perform the following steps to create withholding sales tax reports and an inquiry: 1. click Transactions. Click General ledger. You can also create lines and enter the information. and the withholding tax setup is always handled as described in the steps earlier in this section. 2.Financials I in Microsoft Dynamics® AX 2012 8. 5-68 . then click Tax. Validate and post the payment journal by clicking the Validate button on the Action bar. Close the Open transaction editing form. then click Inquiries. all transactions are considered as payments. 10. Optional: Click the Withholding tax tab for each selected line to change or delete the calculated withholding tax.

posting. the tax module offers many different options for tax calculation. special EU statistic reports such as Intrastate and EU sales list are also available. In Microsoft Dynamics AX. and reporting.Chapter 5: Sales Tax Setup Summary The requirements for tax calculation and tax reporting differ greatly for different countries. 5-69 . Therefore the tax module of a true international ERP system must be comprehensive. The features include: • Percentage calculation • Fixed tax amounts • Tax on tax • EU tax • Tax exemption • Packing duty • Multiple tax calculation • Flexible settlement periods • Country-specific tax reporting and additional options For EU countries.

Each ledger account can use several tax codes. Before creating ledger posting groups. ( ) Posted transactions ( ) Deleted transactions ( ) Not yet posted transactions ( ) Posted transactions from previous months 3. You use settlement periods to create and manage the periods the company uses to report sales tax. Sales tax can be paid by the Microsoft Dynamics AX system to _____ ? (Select all that apply) ( ) A client ( ) An employee ( ) A vendor ( ) A sales tax authority 6. ( ) True ( ) False 5-70 . Tax authorities can be ______. 1.Financials I in Microsoft Dynamics® AX 2012 Test Your Knowledge Test your knowledge with the following questions. ( ) Tax Group ( ) Sales Tax ( ) Account ( ) Group 4. (Select all that apply) ( ) Countries ( ) States ( ) Regions ( ) Cities 5. Changes that you make to the ledger account numbers in ledger posting groups only affect ____. True or False? ( ) True ( ) False 2. you must create a(n) _________ in the General Ledger to link to ledger posting group.

including any other taxes c. ( ) True ( ) False 12. Gross amount for each unit _____ 6. ( ) True ( ) False 8. excluding any other taxes 5-71 . Sales tax settlement periods specify at what intervals the company reports taxes. Match the options to the answers. Net amount of invoice balance _____ 4.Chapter 5: Sales Tax Setup 7. Value of the line. Value of the unit. A sales tax code includes information about which of the following? Select all that apply. ( ) True ( ) False 10. Specify the origin for the sales tax limits in the Marginal base list. (Select all that apply) ( ) When the payments are made ( ) How the tax is posted ( ) How the tax is calculated ( ) The currency in which the sales tax is calculated 11. including any other taxes e. You use settlement periods to create and manage the periods the company uses to report sales tax. Value of the unit. Gross amount for each line _____ 5. Invoice total incl. Value of the line. Sales taxes over the minimum limit amount automatically are discontinued and sales taxes under the upper limit amount are set to the upper limit amount. Sales tax settlement periods specify at what intervals the company reports taxes. The total value for the invoice. ( ) True ( ) False 9. Net amount for each unit _____ 3. other sales tax amounts a. excluding any other taxes f. _____ 1. including any other taxes d. The total value for the invoice. excluding any other taxes b. Net amount for each line _____ 2.

( ) Is recorded on the transaction. If the invoice has sales tax exemptions. which does not create sales tax transactions. ( ) True ( ) False 15. an automatic transaction on the sales tax prepayments account offsets the first temporary sales tax transaction? ( ) Yes ( ) No 16. ( ) Is a tax on vendors. which is a liability. does it group the transactions according to sales code descriptions? ( ) Yes ( ) No 17. Is it possible when you create a sales invoice and settle the prepayment. ( ) Is reported in fixed reports. (Select all that apply) ( ) Company ( ) Customers ( ) Ledger accounts ( ) Vendors 14. attach the sales tax group to ______. 5-72 . You cannot change any default item sales tax group that appears automatically on a journal line before you post the transaction.Financials I in Microsoft Dynamics® AX 2012 13. only balance sheet accounts or liability accounts are valid accounts for posting withholding tax. When the sales tax groups are created. What is a withholding tax? (Select all that apply) ( ) Is calculated on a vendor payment. Therefore.

Chapter 5: Sales Tax Setup Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1. 5-73 . 3. 2.

you must create a(n) _________ in the General Ledger to link to ledger posting group. Sales tax can be paid by the Microsoft Dynamics AX system to _____ ? (Select all that apply) ( ) A client ( ) An employee (√) A vendor (√) A sales tax authority 6. True or False? (•) True ( ) False 2. (•) True ( ) False 5-74 . Changes that you make to the ledger account numbers in ledger posting groups only affect ____. You use settlement periods to create and manage the periods the company uses to report sales tax. ( ) Tax Group ( ) Sales Tax (•) Account ( ) Group 4. Tax authorities can be ______. ( ) Posted transactions ( ) Deleted transactions (•) Not yet posted transactions ( ) Posted transactions from previous months 3. (Select all that apply) (√) Countries (√) States (√) Regions (√) Cities 5. Each ledger account can use several tax codes.Financials I in Microsoft Dynamics® AX 2012 Solutions Test Your Knowledge 1. Before creating ledger posting groups.

Specify the origin for the sales tax limits in the Marginal base list. (Select all that apply) (√) When the payments are made (√) How the tax is posted (√) How the tax is calculated (√) The currency in which the sales tax is calculated 9. ( ) True (•) False 10. Gross amount for each line d 5. excluding any other taxes b. (Select all that apply) ( ) Company (√) Customers (√) Ledger accounts (√) Vendors 5-75 . other sales tax amounts a. Value of the unit. The total value for the invoice. A sales tax code includes information about which of the following? Select all that apply. attach the sales tax group to ______. Match the options to the answers. Sales taxes over the minimum limit amount automatically are discontinued and sales taxes under the upper limit amount are set to the upper limit amount. Gross amount for each unit b 6. Value of the line. When the sales tax groups are created. a 1. Invoice total incl. including any other taxes c. Net amount for each unit e 3. The total value for the invoice. including any other taxes e. Sales tax settlement periods specify at what intervals the company reports taxes. Net amount of invoice balance c 4. excluding any other taxes f. (•) True ( ) False 8. Net amount for each line f 2. Value of the unit. including any other taxes d.Chapter 5: Sales Tax Setup 7. Value of the line. excluding any other taxes 11.

(√) Is reported in fixed reports.Financials I in Microsoft Dynamics® AX 2012 12. which does not create sales tax transactions. 5-76 . only balance sheet accounts or liability accounts are valid accounts for posting withholding tax. an automatic transaction on the sales tax prepayments account offsets the first temporary sales tax transaction? (•) Yes ( ) No 14. Therefore. ( ) True (•) False 13. ( ) Is recorded on the transaction. If the invoice has sales tax exemptions. Is it possible when you create a sales invoice and settle the prepayment. does it group the transactions according to sales code descriptions? ( ) Yes (•) No 15. which is a liability. (√) Is a tax on vendors. You cannot change any default item sales tax group that appears automatically on a journal line before you post the transaction. What is a withholding tax? (Select all that apply) (√) Is calculated on a vendor payment.

This content also describes how to use the Fill utility to update multiple records. similar to find and replace functionality. Introduction This content describes features that you can use across the various financial modules in Microsoft Dynamics AX®.Chapter 6: Financial Features CHAPTER 6: FINANCIAL FEATURES Objectives The objectives are: • Create. • Describe how and when to use the Fill utility. and delete financial reason codes. modify. which allow you analyze transaction history by specific reason. 6-1 . This content describes how to set up reason codes.

Because of the accident damage. To accommodate the auditors’ requirements. For example. users have guidelines on what codes to select from. they can see within the accounting records and history forms that vehicle number 17 was adjusted because of the accident and that no other car was involved in the accident. Later. in addition to certain changes to existing assets. Because of the selected parameter settings. These codes can be used with asset transactions. which enforce use of reason codes during various transactions and value changes in the accounting records. Cassie establishes internal controls in Microsoft Dynamics AX by setting up parameter values. When the auditors next review the accounting records. she uses the “VACC-SC” reason code with the asset journals and the other forms that require reason codes.Financials I in Microsoft Dynamics® AX 2012 Financial Reason Codes Financial reason codes are standardized codes that you can use in various transaction types or changes to field values which provide background data about the transaction. and expected scrap value. Standard reason codes provide management and auditors with the ability to analyze transaction history by specific reason. Cassie must adjust downward the asset's value. Use reason codes with the following: • General Ledger • Accounts Payable • Accounts Receivable • Cash and Bank Management Scenario Cassie. She creates a reason code titled “V-ACC-SC. When you use standard reason codes instead of transaction text.” with a description of “Vehicle Accident . Cassie has decided that using reason codes will satisfy the auditors. Contoso's auditors have required explanations for all new assets purchased. auditors or managers frequently want to see recorded reasons for various transactions. one of Contoso's vehicles (vehicle number 17) was recently in an accident.Single Car” for transactions related to this accident. For example. Cassie also develops a list of standard fixed asset reason codes and descriptions. service life. is responsible for managing the company's fixed assets. Cassie records the write-down adjustment to the vehicle and changes the other asset values. the Accountant at Contoso. 6-2 .

then click Financial reasons o Fixed assets. if the Financial reasons form opens from Accounts Payable. click Setup. You also can specify whether reason codes are required for a module. or you can open a reasons form from a specific module to set up reason codes for only that module. but in each module. click one of the following: o Organization administration. You specify reason code requirements in the parameters form for most modules.1 FINANCIAL REASONS Procedure: Create a Financial Reason Code Perform the following steps to create a reason code. reason codes are assigned only to the account type that relates to that module. 1. click Setup.Chapter 6: Financial Features Create a Financial Reason Code Use the Financial reasons form in Organization administration to create reason codes for a variety of financial modules. then click Customer reasons 6-3 . and the reason codes created can only be used with vendor transactions. The difference between the two methods is that the Financial reasons form in Organization administration provides additional fields to assign the reason code to any of five account types. FIGURE 6. For example. then click Asset reasons o General ledger. click Setup. the Account type is set to Vendor automatically. then click Ledger reasons o Accounts receivable. click Setup. click Customer. To access the Financial reasons form.

5. click Setup. then click Asset reasons o General ledger. Enter a unique Reason code as identification. Enter a Default comment for the reason code. click setup. The comment you enter here appears as the default comment when you select this reason in transactions. then click Financial reasons o Fixed assets. and the system will not allow its use. Procedure: Modify a Financial Reason Code You can modify reason codes at any time. click Setup. then click Vendor reasons o Cash and bank management. click Setup. then click Vendor reasons Cash and bank management. Modify the Default comment for the reason code. click Setup. As soon as the account type is cleared.Financials I in Microsoft Dynamics® AX 2012 o o Accounts payable. only reason codes with an account type of Asset are available when you enter fixed asset transactions. then click Ledger reasons o Accounts receivable. click one of the following: o Organization administration. 6-4 . the reason code will not display in the transaction entry or asset forms. To access the Financial reasons form. All the account type fields are visible only if you open the Financial reasons form from Organization administration. Select or clear the Account type check boxes. click Setup. Select the Reason code to modify. Select the Account type with which to use the reason code. 4. An account type limits the reason codes displayed in reason lists when you create or modify a transaction of that type. You also can change the Default comment and Account types. 4. then click Customer reasons o Accounts payable. then click Bank reasons 2. For example. 3. Click the New button to create a new reason. click Vendor. then click Bank reasons 2. click Vendor. click Setup. 3. click setup. click Customer. 1.

Module Transaction Type Path General Ledger General journal General ledger > Journals > General Journal > Lines button > General tab General Ledger Process allocation request General ledger > Periodic > Process allocation request General Ledger Elimination proposal General ledger > Journals > Elimination > Lines button > General tab General Ledger Consolidation. Online General ledger > Periodic > Consolidate > Consolidation. then click Vendor reasons o Cash and bank management. Online Fixed Assets Fixed assets journal Fixed assets > Journals > Fixed assets > Lines button > General tab 6-5 . click Vendor. ensure that you clear the necessary account types from other modules. 3. If you are using any form other than the Financial reasons form accessed from the Organization administration menu. click setup. select reasons for transactions or other entries in the following forms. 5. then click Customer reasons o Accounts payable. Click the delete button. click Setup. To access the Reasons form. Select the Reason code to delete. click one of the following: o Organization administration. Financial Reason Codes After you have created reason codes. Click Yes in the Confirm deletion dialog box. then click Financial reasons o Fixed assets. click Setup. then click Ledger reasons o Accounts receivable. click Customer. click Setup. then click Bank reasons 2. 4.Chapter 6: Financial Features Procedure: Delete a Financial Reason Code Follow these steps to delete a reason code. then click Asset reasons o General ledger. click Setup. Clear all Account type check boxes. click Setup. 1. You can delete a reason code only if no account types are associated with it.

the default comment that is set up in the Financial reasons form displays in the Reason comment field. Reason Comments Optional reason comments can be entered on the respective Financial reasons form. If you select a reason code for a transaction.Financials I in Microsoft Dynamics® AX 2012 Module Transaction Type Path Fixed Assets Inventory to fixed assets journal Fixed assets > Journals > Inventory to fixed assets > Lines button > General tab Accounts Receivable Cancel payment Cash and bank >Common> Deposit slips > Cancel payment button Accounts Receivable Free text invoice Accounts receivable >Common>Free text Invoices > All Free text invoices>Line details FastTab> Reasons tab Bank Payment reversal Cash and bank management> Common>Checks > Payment reversal button Accounts Payable Invoice journal Accounts payable > Journals> Invoice journal > Lines button > General tab Accounts Payable Check reversals journal Cash and bank management> Journals > Check reversals > Lines button > General tab Accounts Payable Deposit slip payment cancellations journal Cash and bank management >Journals> Deposit slip journals> Lines button> General tab NOTE: You must select the reason codes as available for all transaction types within the journal line to be posted. You can change the default reason comment. Although you can set up default reason comments for each reason code. This must include the ledger offset account. no setup is required. 6-6 . the typed reason comment is not replaced. If you enter a reason comment first and then select a reason code.

Select the value to change the field to for the list of records. 3. Open the form where the field that you want to update is displayed.Chapter 6: Financial Features Fill Utility The Fill utility enables authorized users and/or administrators to mass-update records This is done in a similar manner to the Find and Replace function. Instead of updating each account individually. will use the Fill utility to update the discount terms of all high priority customers in one step. This feature is available only if the Fill utility License configuration is enabled. 6. NOTE: Make a backup before you perform this process. 4. This utility assists administrators or users during implementations or when business process changes affect multiple records. Specify the query criteria to find the records to update. Procedure: Update Multiple Records Perform the following steps to update multiple records at the same time by using the Fill utility. and then click the Fill utility log. High-priority customers will now receive a longer discount period. In the Record information form. 8. 1. 6-7 . 5. Click OK. click the Fill utility button. the Accounting Manager. 2. Phyllis. Click OK. Scenario Contoso has decided to change its payment terms. Fill Utility Log Use the Fill Utility Log form to view a record of the changes that you have made by using the Fill Utility. CAUTION: Be aware that changing numerous records at the same time can be time-consuming. Right-click the field that you want to update and select Record information from the menu. Click OK. click Inquiries. 7. 9. Verify that the list of records to be updated is correct. To do this navigate to Organization administration.

Modified field Displays the name of the field that was modified for the selected Fill Utility Log record. which is indicated in the selected Fill Utility Log record.Financials I in Microsoft Dynamics® AX 2012 The following tables provide descriptions for the fields in this form. Query statement Displays the query statement that was used to update the records for the selected Fill Utility record. Summary The Financial Features section described the setup of reason codes and the use of the Fill utility. New value Displays the new value for the field that was modified for the selected Fill Utility Log record. Field Description Name of table Displays the name of the table that was modified for the selected Fill Utility Log record. 6-8 . Created by Displays the user name of the person who made the change. Created date and time Displays the date and time that the change occurred.

( ) The system prompts users to create a backup before they use the FillUtility. 1. What are reason codes? 2. ( ) The system automatically makes a back up before it uses the Fill utility. ( ) Users can view a log of changes that the Fill utility made. Which of the following statements correctly describe the Fill utility? (Select all that apply) ( ) The Fill utility enables authorized users to mass-update records. 6-9 .Chapter 6: Financial Features Test Your Knowledge Test your knowledge with the following questions.

2.Financials I in Microsoft Dynamics® AX 2012 Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1. 3. 6-10 .

(√) The system prompts users to create a backup before they use the FillUtility.Chapter 6: Financial Features Solutions 1. Which of the following statements correctly describe the Fill utility? (Select all that apply) (√) The Fill utility enables authorized users to mass-update records. 6-11 . ( ) The system automatically makes a back up before it uses the Fill utility. 2. What are reason codes? MODEL ANSWER: Reason codes are standardized codes that you can use in various transaction types or changes to field values which provide background data about the transaction. (√) Users can view a log of changes that the Fill utility made.

Financials I in Microsoft Dynamics® AX 2012 6-12 .

• Set up bank groups. • Set up payment purpose codes. set up the following: • Bank transaction types • Bank transaction groups • Bank groups • Cash and bank parameters • Bank accounts • Checks 7-1 . • Set up bank parameters. such as the following: • Registration number and account number • Address • Other contact information • Currency • Check set up • Main account for posting The application uses this information to process all bank transactions. such as payments and deposits. companies use the Cash and Bank Management module to create and maintain bank accounts. To use the Cash and Bank Management module.Chapter 7: Cash and Bank Management Setup CHAPTER 7: CASH AND BANK MANAGEMENT SETUP Objectives The objectives are: • Set up cash bank transaction types. The bank account table contains a record for each bank account. • Define the check layout for a bank account. Each record contains bank account information. • Set up bank transaction groups. Introduction In Microsoft Dynamics AX®. • Create a bank account.

Enter the name of the transaction type in the Name field. Create one transaction type for Non-Sufficient Funds (NSF) transactions. fees. Users can indicate the transaction type on journal worksheets. such as deposits and withdrawals. Annie first sets up the types of transactions Contoso must make. If the bank reports transactions on its account statements. for each account. the bookkeeper at Contoso. click Setup. When the journal is recorded. 2. Finally. 3. and interest charges. such as deposit slips. 4. the application copies the contents of the Bank transaction type field to the bank transaction. 1. Next. 7-2 . Click Cash and Bank Management. must set up the banking functions for a new company. Procedure: Create Bank Transaction Types Perform the following to create bank transaction types. Bank Transaction Types Use bank transaction types to set up the types of transactions to be made in company bank accounts. how checks are to be designed. Annie creates payment purpose codes for reporting to the central bank. Annie indicates which account is used for checks returned from the bank and the number series that is used for banking documents. companies can use a summation of the transaction types for summary reconciliation. Click the New button to create a new record. and then click Bank transaction types. She then groups these transaction types to allow for an additional level for reporting and analysis. After Annie finishes setting up the banking functions. NSF transactions occur when a check is returned from the bank because the bank account lacks sufficient funds to honor the check. she enters the information for the company's bank accounts and indicates. Annie sets up bank groups for the banks with whom the company holds multiple accounts. Enter a unique code in the Bank transaction type field.Financials I in Microsoft Dynamics® AX 2012 Scenario Annie.

6. FIGURE 7. Repeat steps 2 through 5 to create each new Bank transaction type. Click the Main account arrow to select the ledger account to post corrections to and to add data for bank reconciliation.Chapter 7: Cash and Bank Management Setup 5.1 BANK TRANSACTION TYPE FORM 7-3 .

Click the Add button to add additional Bank transaction types to this Bank transaction group. 4. enter a group identification code that refers to this group when a code is used in other system tables. The Name field is populated automatically with the Bank transaction type name. The bank transaction group is an alphanumeric string of up to 10 characters. Click the Remove button to remove Bank transaction types from this Bank transaction group. and then click Bank transaction groups. a group of transfers may include the bank transaction types of transfer and wire transfer. In the bank statement reconciliation. Enter a short description in the Description field. 5. Click the Type FastTab. calculate totals for each bank transaction group and for each bank transaction type.Financials I in Microsoft Dynamics® AX 2012 Bank Transaction Groups Use bank transaction groups to set up groups of different bank transaction types. 7. 7-4 . 6. In the Bank transaction groups field. Procedure: Create Bank Transaction Groups Perform the following to set up bank transaction groups. Click the Bank transaction type arrow and select a bank transaction type to relate to the selected bank transaction group. 2. 3. Click Cash and bank management. For example. 8. click Setup. 1. Click the New button to create a new record.

Click Cash and bank management. Click Cash and bank management. From the Bank transaction groups form click the Type FastTab. Annie will create an additional bank transaction group for bank fees and interest charges. Associate the new bank transaction group with fees and interest charges. 4. and then click Bank transaction types. Close the Bank transaction type form. In the Bank transaction groups field. Contoso wants the option to analyze the total charges paid to each bank. 1. 4. 2. 5. must create a bank transaction type for cash withdrawals. Enter the name Cash Withdrawal in the Name field. In the Bank transaction type field. Click the New button to insert a new record. enter 80. 7-5 . 2. Create a bank transaction group for bank charges. 1.Chapter 7: Cash and Bank Management Setup Lab 7. Click the New button to insert a new record. click Setup.1 . and then click Bank transaction groups. 2. In addition. click Setup. 3. Type in 110110 in the Main account field. Enter Bank Charges in the Description field. Challenge Yourself! Help Annie by creating a new bank transaction type of 20 for cash withdrawals and a new bank transaction group of 80. Create a bank transaction type for cash withdrawals. 5. the bookkeeper at Contoso. 6. Need a Little Help? 1. Step by Step Create a bank transaction type for cash withdrawals. 3.Create Bank Transaction Types and Bank Transaction Groups Scenario Annie. enter 20. 3. Create a bank transaction group for bank charges.

8. Click the Bank transaction type arrow and select the bank transaction type of 08 for Interest charges. Close the form. Click the Add button to insert a new record. 7-6 . 7. The Name field is automatically populated with the Bank transaction type name. Click the Bank transaction type arrow and select the bank transaction type of 07 for Fees. The Name field is automatically populated with the Bank transaction type name.Financials I in Microsoft Dynamics® AX 2012 6. 9.

Select the Allow check reuse check box to indicate whether a check number can be reused if the check was printed incorrectly or the check stock was not used. 5. Select the Bank transaction type that is used for Non-Sufficient Funds (NSF) from the NSF list. Procedure: Define Cash and Bank Parameters Perform the following to set up Bank parameters.Chapter 7: Cash and Bank Management Setup Cash and Bank Management Parameters Use the Cash and bank management parameters form to define rules for checks and to indicate the number sequences for the various kinds of transactions within Microsoft Dynamics AX. 1. and then click Cash and bank management parameters. 3. 4. click Setup. Click General on the left hand navigation pane. Click Cash and bank management. Select the Allow checks for bank or ledger accounts check box to indicate whether a check can be printed for a bank or ledger account. When the bank returns a payment the NSF identifier automatically cancels the payment from the system. NSF is used to identify returned payments. 7-7 . It also marks the payment so that it is not selected when you reconcile the bank account. 2.

the cancellation is posted immediately when you click the Cancel payment button in the Deposit slips form 7-8 . To require reason codes for bank transactions. Select the Use review process for deposit slip payment cancellations check box to require that deposit slip payment cancellations must be reviewed in the Deposit slip payment cancellations journal before they are posted. select one or more of the following check boxes in the Reason code requirements area: o Require reasons for payment reversals o Require reasons for deposit slip payment cancellations FIGURE 7.Financials I in Microsoft Dynamics® AX 2012 6. If this check box is cleared. the reversal is posted immediately when you click the Payment reversal button in the Check form.2 CASH AND BANK PARAMETERS FORM Procedures: Define Reversal Process Select the Use review process for payment reversals check box to require that check reversals must be reviewed in the Check reversals journal before they are posted. If this check box is cleared.

1. causes a balance that exceeds the credit limit. In the Central bank purpose code field. click Setup. The following options are available: • None .Chapter 7: Cash and Bank Management Setup Prenotes and Copies of Payments Select the Allow prenote creation on inactive bank accounts check box to allow users to create prenotes for inactive bank accounts. Define Number Sequence Click Number sequence on the left navigation pane to select or change the number sequences for each reference and corresponding sequence code. 4.the system generates a warning notification. Select a number sequence to associate with each reference from the Number sequence code list. Click the New button to enter a new record or click on a line record to modify an existing code. • Error . Procedure: Create Payment Purpose Codes Perform the following to set up payment purpose codes. which users can use to settle disagreements with vendors or customers. 2. Click Cash and bank management. and then click Payment purpose codes.no warning or error is generated in the system. These include checks. 7-9 . Select the Allow copies of payments check box to allow users to print copies of payments. Click the General FastTab. and electronic payments. if it is required. • Warning . Credit Limit Tolerance Use the Bank credit limit tolerance list to select how to notify the user when a payment journal that is posted. Enter the name of the payment purpose code in the Name field.the system generates a error notification. The payment copies are printed as non-negotiable checks. The central bank is the official bank of a country or region. promissory notes. enter the code used when reporting to the central bank. 3. 5. Payment Purpose Codes Use the Payment purpose codes form to create payment purpose codes for the central bank.

Enter the bank's routing number in the Routing number field. 1. and then click Bank groups. click Setup. you can create a bank group for one financial institution at which five accounts are open. 7. Click on the General FastTab to enter any additional information for this account. 5. 6. Enter a description of the payment purpose code in the Purpose text field. o Currency: currency code for the bank group. The bank provides the routing number. FIGURE 7. When you create a new bank account and enter the bank group. Click Cash and bank management.Financials I in Microsoft Dynamics® AX 2012 6. 3. the bank group information is copied to the account automatically. such as the following: o Routing number Type: code identifying the type of the routing number.3 PAYMENT PURPOSE CODES Bank Groups Use bank groups when several bank accounts share the same address information or routing number. o Company ID: banking identification of the bank group that is used in connection with payments. Click the New button to create a new record. Enter a brief description of the bank group in the Description field. Enter a unique code in the Bank groups field 4. 7-10 . 2. Procedure: Create Bank Groups Perform the following to create bank groups. For example. 8. Close the form. Enter any additional information about the payment purpose code in the Text field.

General Perform the following to create general information for a new bank account. Click the Contact information FastTab and enter the information for the bank group's contact person. It is a combined postal. Click the New. Use the options on the form to view the details for each bank account. 7. 2. FIGURE 7. and telegraph ID. Click the Address FastTab and enter the address for the bank.Chapter 7: Cash and Bank Management Setup o o o o Post account: also known as PTT. The bank provides this code. click Cash and bank management.4 BANK GROUPS FORM Bank Accounts Enter and maintain all information for the company bank accounts in the Bank accounts form.Bank account button to create a new record. 3. you may be required to make a selection in this field. 1. This is an account that is used in European countries for electronic banking. 7-11 . click Common. Drawer: code of the drawer. and checks that have been created. and then click Bank accounts. current balance. in days. Days: time limit. Select the kind of bank account routing number from the Routing number type field. 8. Suffix: suffix of the bank. To access the Bank accounts form. telephone. If your company makes international payments. such as transactions. for feedback from the bank on payments. Procedure: Create Bank Accounts .

bank accounts are identified by name and account number. Use the Destination name field to enter the name of the Automated Clearing House (ACH) or receiving point of an Electronic Funds Transfer (EFT) transaction. Select the group to which this bank belongs. 2. enter a name that is used to identify this account on printed reports and other areas. If a Bank group is selected. This field is only available when the company's primary address is in Canada or the United States. enter a unique ID number to identify the bank account. from the Bank groups list. You cannot modify the bank account value for existing bank accounts. 7-12 . Use the Bank account number field to enter the account number specified by your bank. Use the Company statement name to enter the company name as you want it to appear on your bank statement. 5. This field is only available to legal entities whose primary address is in the United States.General Descriptions Perform the following to create descriptions for a new bank account. In the Name field. In Microsoft Dynamics AX. 6.5 BANK ACCOUNTS Procedure: Create Bank Accounts . NOTE: Name accounts so that they can be easily identified.Financials I in Microsoft Dynamics® AX 2012 4. 3. 1. the Routing number field will be populated automatically based on the bank group setup. if applicable. It is an alphanumeric string up to 34 characters. FIGURE 7. In the Bank account field.

either new or existing. the bank account remains active indefinitely. the bank account is immediately available for new transactions. If prenotes are required. • Inactive for all transactions .Chapter 7: Cash and Bank Management Setup Prenotes Select the Prenote required check box if the bank requires prenotes for electronic transactions. Credit Limit If the bank uses credit limits for this account. will still occur as they were originally scheduled.the bank account is active and available for all transactions. will still occur as they were originally scheduled. • Active to: enter the date when the bank account will no longer be active for new transactions. specify the number of days that the bank requires to process a prenote in the Prenote response days field. If you do not enter a date. Any existing transactions that are not completed by this date. The following two fields are optional and available if the Bank account status field is set to Active for all transactions: • Active from: enter the date when the bank account will become active and be available for new transactions.no new transactions can be scheduled for this bank account. use the Credit limit field to enter the amount that the bank offers for this account. Existing transactions that have not yet been completed. such as pending payments. This field is available only if you selected the Prenote required check box. such as pending payments. 7-13 . If you do not enter a date.no transactions. Use the Bank account status to select the status to use for the bank account. Active Status Use the Active fields to enter specific dates when the bank account becomes active. The bank must process the prenote before electronic payments will be accepted. • Inactive for new transactions . can be scheduled or processed for this bank account. • Active for all transactions .

Corrections. Enter the code stated by the Banks Automated Clearing System (BACS) in the Sort code field. It is used when transferring money to a PTT bank account. 4. 5. click the Additional identification FastTab. This code is used for electronic bank payments for BACS 7.Currency Management Perform the following to enter more information about Currency management for the bank account. In the SWIFT code field. In the IBAN field enter the International Bank Account Number (IBAN). also known as the Bank Identifier Code (BIC). Select a Main account to which all bank account transactions are automatically posted. Enter the Post. Select the Keep check box to keep the bank account number of the payment transaction if the transaction is removed from a remittance batch. Enter a maximum number of days for the bank to return a paymentrelated message in the Days field. 7-14 . Select the currency code from the Currency list. Telegraph. 3. 8. When you generate deposit slips. Enter the bank suffix in the Suffix field. 1. From the Bank accounts form. The value determines the date in the Deadline field on the Open transaction editing form. Use the Debit Direct ID field to enter the customer number of the company for debit direct. are posted to the main account when the statement reconciliation is complete and posted 3. enter the Society for Worldwide Interbank Financial Telecommunication code. which are entered during the reconciliation of the bank account with the bank account statement. 2. one deposit slip is generated for each currency. Enter the bank or postal identification of the company in the Company ID field.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create Bank Accounts . Select the More currencies check box to enable posting in more than one currency for this bank account. 2. 5.Additional Information Follow these steps to enter additional details on the bank account. 7. Click the Currency management FastTab. Procedure: Create Bank Accounts . 1. 4. Use the Clearing field to enter the control code of the bank. and Telephone (PTT) account number in the Post account field. 6. 6.

6 CURRENCY MANAGEMENT Procedure: Create Bank Accounts . Enter any additional information about fees and the ledger accounts to which the application posts the fees as required by the company in the remaining fields on the Negotiable instrument FastTab. Select the journal to hold the generated remittance fees from the Fee journal list. NOTE: The values in the Days. 3. Enter the bank-issued drawer code in the Drawer field. Click the Address FastTab and enter the address for the bank. 1. if defined. From the Bank accounts form. 5. 2.Chapter 7: Cash and Bank Management Setup 8. Click the Contact information FastTab and enter the information for the bank group's contact person. FIGURE 7. In the Discounting maximum field. Suffix. 9. The amount is displayed in the Remittance journal. and Drawer fields all default from the Bank group. click the Negotiable instrument FastTab. 4. enter an amount for the maximum remittance for discount amount granted for the current bank.Other Perform the following to complete the remaining bank account setup. 7-15 .

Financials I in Microsoft Dynamics® AX 2012 Lab 7. Annie. Click the Main account button to create a new record.CNY to the Chart of accounts. click Common. For the bank account: o o o o The bank account name is Bank Account . Postings should use a new balance account called Bank account CNY. The bank account will operate primarily in Chinese Yuan (CNY). Click General ledger. enter 110115. Annie does not have address information for the bank account. 4. 5. enter Bank Account – CNY. Need a Little Help? 1. Create the new bank account. Create the new bank group and assign the Chinese Yuan (CNY) to the group. and then click Main accounts. but may operate in other currencies. 2. In the Name field. which is part of the CHTB bank group. 7-16 . Step by Step Create a new account for Cash in bank . must create a new bank group and new bank account in Microsoft Dynamics AX for this bank. The bank account is part of the Chinese Trade Bank group.Create a Bank Group and Bank Account Scenario Contoso has opened a new bank account. 3. but she does have the following specifications: • For the bank group: o o • The bank group name is CHTB for Chinese Trade Bank. Add a new account for Cash in bank . 1. Challenge Yourself! 1. Create the new bank group. The bank account number is 433090321489. In the Main account field. 2. 3. 2.2 . Create the new bank account.CNY. Click the General FastTab and select Balance sheet in the Main account type field. the bookkeeper.CNY to the Chart of accounts. Select the option to enable posting in more than one currency for this bank account. The bank group routing number is 9876.

4. 3. 8. 11. 6. 2. click Setup. enter Bank Account . enter CHTB. Click the New button to create a new record. enter 433090321489. From the Navigation pane. Click the Main account field arrow and select 110115. 6. select the check box to enable posting in more than one currency for this bank account. which defaults from the bank group. Click the Setup FastTab. Close the form. click the All tab. 7-17 . From the Currency list select CNY. 7. 5. In the Bank account number field. Enter 9876 in the Routing number field. and then click Bank groups. 1. 7. The Routing number field automatically will display 9876. 2. 5. 12. In the Name field. Click Cash and bank management.CNY. and then click Bank accounts. Close the Bank groups form. Create the new bank account that is part of the CHTB bank group. enter CNYBANK.Chapter 7: Cash and Bank Management Setup 6. 1. Click the Bank Account button to create a new record. Close the form. The Currency field automatically displays CNY. Click the Currency management FastTab. 8. In the Description field. 10. click Common. 9. enter Chinese Trading Bank. 4. Click the General FastTab. and then click CNY. click Cash and bank management. 7. In the Bank groups field. In the Bank account field. In the More currencies field. Click the arrow in the Currency field. Create the new bank group and assign the Chinese Yuan (CNY) to it. 3. 8. Click the Bank groups arrow and select CHTB.

4. and then click Bank accounts. 3.Financials I in Microsoft Dynamics® AX 2012 Check Layout Use the Check layout form to set up the check layout for the bank accounts. Double-click on a Bank account. 2. To access the Check layout form. Select either method: o Fixed: use this method when you have preprinted checks. Check numbers are automatically proposed when you use checks for payment. Select the method to use for generating check numbers from the Check number method list. 7-18 . click the Setup tab. You can define a different check layout for each bank account.7 CHECK LAYOUT FORM Procedure: Define the Check Number Perform the following to define the check numbering. click Common. FIGURE 7. they must be created by clicking Check numbers from the Set up tab on the Action Pane in the Bank accounts form. first access the Bank accounts form by clicking Cash and bank management. On the Action Pane. and then click Check. Before you can use checks for payment. o Free: use this method when you do not have preprinted checks. 1.

Enter the starting position on the paper where the check must be printed in the Check start position field. From the Ruler list.00.00 in the Check start position field and select 'Inch' in the Unit for the start position of the check field.Chapter 7: Cash and Bank Management Setup Procedure: Define Check format To define the check format. enter the text to print in front of the amount on the check. enter 3. o Inches: shows the ruler in inches. BEST PRACTICES: Print two slip texts so that you can keep one and send the other. In the Prefix field. EXAMPLE: To start the check 3 inches from the top of the paper. Even if you enter a number larger than two. if you are entering USD in this field and the check amount is 1000. select a layout for the check in the Check form field. select one of the following rulers to display when you test print. Enter the unit in which the start position is measured from the Unit for the start position of the check list.00 on the check. 6. 7-19 . the printer will print USD 1000. 5. For example. o None: shows no ruler on test prints. In the Check layout form. no more than two copies can be printed at the same time. Enter the length of the paper on which the check is printing in the Paper length field. 3. 9. 2. Enter either 1 or 2 to indicate whether to print one or two slip text copies in the Number of slip copies field. follow these steps: 1. 8. Select the unit in which the paper size is measured from the Paper length unit list 4. o cm: shows the ruler in centimeters.

FIGURE 7. SETUP TAB 7-20 . click the Company logo button to select the company logo to print on the checks. click the Setup tab. click the Change button to select the file that contains the company logo. Select from the following list of check boxes for every field to be printed on the check. For each check box selected.Financials I in Microsoft Dynamics® AX 2012 Procedure: Select the Fields to Print on the Check Perform the following to select the fields that print on the check. 4. 2. o Bank account o Bank name o Bank number o Company name o Company logo If you select the Company logo check box.8 CHECK LAYOUT FORM. From the Check layout form. Click the Codes tab. 1. 3. From the Image form. enter the associated routing number to print on the check. Select the option to print ABC codes on the check.

The check number cannot be entered because it is unique to each check. 1. Enter the following information: o o o Leading zeros: indicate whether the MICR line contains leading zeros. 2. Select the Print MICR line check box to print the MICR line on the check. click the Codes tab. Procedure: Define Signatures Perform the following to define signatures. 7-21 . Length of check number: indicate the number of characters entered in the MICR line for the check number. From the Check layout form. 1. 3. which includes the delimiters. NOTE: The MICR line can be included only if the check is to be printed on blank paper without preprinted information. such as watermarks. 2. Enter the highest amount that each signature is allowed in the First amount limit and Second amount limit fields. click the Signatures tab. MICR-line: enter the complete MICR line. Select the check box for Print first signature or Print second signature to print signatures on the check.Chapter 7: Cash and Bank Management Setup Procedure: Define MICR Options Perform the following to define MICR options. From the Check layout form. 3. Designate the place for the check number in the MICR line with the character sequence %1.

FIGURE 7. 5. SIGNATURE TAB Procedure: Print a Test Check When the check layout is complete. click the Print test button to preview the check layout. click the Change button to select the file that contains the signature. For each selected signature.9 CHECK LAYOUT FORM. 7-22 .Financials I in Microsoft Dynamics® AX 2012 4. If the Print first signature or Print second signature check boxes are selected. click the Signature button to select the signatures to print on the checks.

Challenge Yourself! 1. Click Cash and bank management. 9. From the Bank accounts form. In the Paper length unit field. 2. Click the Setup tab. and then click Bank Accounts. 10. check format.5 inches long. 2. and number must be printed on the check.Chapter 7: Cash and Bank Management Setup Lab 7. because pre-printed checks are not used. Open the Check layout form. enter the specified information. • Checks must be printed in the U. Scenario Set up the check layout for the new bank account that you created in the previous lab. enter 2. 3. enter 8. 5. Use these check layout requirements. On the General and Setup tabs. click Common.5. 7. enter 2. • Two slip copies are required for each check.3 . the letters CHY must be displayed. 6. 4. then click the Check button on the Action Pane. In the Check number method field. Double-click the line for CNYBANK. select CNYBANK. Need a Little Help? 1. select Free. Preview the check layout. Define the check layout for CNYBANK. In the Check form field.S.Define a Check Layout During this lab you will define a check layout. 8. format. In the Unit for the start position of the check field. • Pre-printed checks cannot be used for this account. In the Number of slip copies field. In the Check start position field. 4. 2. In the Paper length field. name. Print a preview of the check layout. • Before the check amount. 3. • The bank account. select Inch. select U.S. Step by Step 1. select Inch. • The paper must be 8. 7-23 . • The checks must print two inches under the top of the page.

In the Prefix field. Click the Print test button to preview the check layout. 7-24 . Click the Setup tab. 12. enter CHY.Financials I in Microsoft Dynamics® AX 2012 11. Select the check boxes for: o Bank account o Bank name o Bank number 13.

companies define how the checks for that account will look. Companies define bank transaction types to manage transactions. such as the following: • Deposits • Fees • Payments Companies then create groups of transaction types for analysis and reporting. For each bank account from which checks are printed. 7-25 . companies have the option to create bank groups for banks in which they hold more than one bank account. The bank account window holds all the information about each company bank account and provides quick access to detailed information about each account.Chapter 7: Cash and Bank Management Setup Summary This course focuses on how banking functions are structured in Microsoft Dynamics AX. which includes transactions and current balance. In Microsoft Dynamics AX.

If you are using pre-printed checks. what method do you select in the Check number method field? ( ) Variable ( ) Fixed ( ) Print ( ) Original 4. What is a Bank Transaction Group? 2.Financials I in Microsoft Dynamics® AX 2012 Test Your Knowledge Test your knowledge with the following questions. 1. What is a Bank Group? 3. How many signatures can the application print on a check? (Select all that apply) ()1 ()2 ()3 ()4 7-26 .

3. 2.Chapter 7: Cash and Bank Management Setup Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1. 7-27 .

2. 3. When you create a new bank account and enter the bank group. If you are using pre-printed checks. what method do you select in the Check number method field? ( ) Variable (•) Fixed ( ) Print ( ) Original 4. What is a Bank Group? MODEL ANSWER: A bank group is used when several bank accounts share the same address information or routing number. How many signatures can the application print on a check? (Select all that apply) (√) 1 (√) 2 ()3 ()4 7-28 .. the bank group information is copied to the account automatically.Financials I in Microsoft Dynamics® AX 2012 Solutions 1. What is a Bank Transaction Group? MODEL ANSWER: A bank transaction group is used to set up groups of different bank transaction types. In the bank statement reconciliation. totals can be calculated for each bank transaction group and for each bank transaction type.

• Create a bank deposit entry.Chapter 8: Cash And Bank Management Daily Procedures CHAPTER 8: CASH AND BANK MANAGEMENT DAILY PROCEDURES Objectives The objectives are: • Create checks. 8-1 . Introduction Within the Cash and Bank Management module. • Reverse a posted check payment. These transactions include the following: • Processing payments to bank and ledger accounts • Processing payments from bank and ledger accounts • Reconciling the records of financial transactions from banks with the records in Microsoft Dynamics AX This section discusses the various processes available to manage bank transactions in Microsoft Dynamics AX®. users manage the financial transactions between the company and its bank accounts. • Use bank remittances. • Delete checks. • Create a refund that prints a check. • Reconcile bank statements. • Void checks.

To verify. click Common. 2. Double-click on the Bank account from which the checks will be written. 6. and in the Quantity field. 1. and voiding of checks and electronic payments. See the Accounts Payable help for more information on this process. and then click Bank accounts.Financials I in Microsoft Dynamics® AX 2012 Scenario At Contoso Annie is the Bookkeeper that manages the creation. click the Check button on the Action Pane. the Check form provides access to view existing check transactions and to create new checks. Click the Check numbers button. 7. in the From field. Also. checks generate through the Accounts Payable payment journal. type 2000. On the Action Pane. In the Creation of check form. the check numbers option is not available. 8-2 . click the Setup tab. In the Quantity field. NOTE: As soon as created checks are available. 5. 3. enter the number of checks to be created. This option is only available if the Check number method is set to Fixed in the Check layout form. enter the check number for the first check to be created. If the method is set to Free. 4. Create Checks In Microsoft Dynamics AX. Click Cash and bank management. 8. Procedure: Create Checks Perform the following steps to create checks. Annie reconciles the statement with the transactions in the application. EXAMPLE: To create a total number of 1250 checks starting with check number 2000. type 1250. the selected bank account is displayed in the Bank account field. when Contoso receives a bank statement. Annie creates check refunds for customers when required and processes payments to vendors. In the From field. Click OK. deletion. This will create checks numbered 2000 to 3249.

Click the Delete checks button. click Common. 5. 2. To verify the deletion. enter the number of the first check to delete. 4. Checks created but not used have the status of Created in the Status field. 1. Click Cash and bank management. NOTE: If you include checks that have a status other than Created in the interval between the From and To fields. 6. type Delete in the Type Delete if you want to delete field. 8-3 . Procedure: Delete a Check Perform the following steps to delete a check. In the From field.Chapter 8: Cash And Bank Management Daily Procedures Delete a Check After users create a check in Microsoft Dynamics AX. Select the bank account from which to delete a check. and then click Checks. 3. In the To field. and then click OK. they can delete the check if it has not been used. no checks are deleted and the Delete checks job is canceled. enter the number of the last check to delete.

Click Cash and bank management. she learned that only 12 of the checks were needed. Delete the final three checks. 3. 6. and then delete the unnecessary checks. and then click Bank accounts. 8. The last 3 checks must be deleted. Click the Check numbers button.Create and Delete a Check Scenario Annie.1 . 8-4 . 2. In the From field. type 101. After Annie created the checks. starting with check number 101.Financials I in Microsoft Dynamics® AX 2012 Lab 8. type 15. the Bookkeeper at Contoso. Need a Little Help? Create 15 checks for the EUR OPER bank account. starting with check number 101. 7. On the Action Pane. Double-click on the EUR OPER Bank account. 4. In the Quantity field. click Common. 1. starting with check number 101. Click OK. must complete a check run that consists of 15 checks. Challenge Yourself! Help Annie to create checks. Step by Step Create 15 checks for the EUR OPER bank account. 5. The checks are from the EUR OPER bank account. click the Setup tab. Click the Close button in the Infolog.

1. Type Delete in the Type Delete if you want to delete field. type 115. 6. type 113. 7. Click the Delete checks button. 2. 4. Click the Close button in the Infolog. and then click OK. 8-5 . In the To field. and then click Checks. Click Cash and bank management. 5. In the From field.Chapter 8: Cash And Bank Management Daily Procedures Delete the final three checks. 3. Click on the EUR OPER Bank account. click Common.

Financials I in Microsoft Dynamics® AX 2012 Deposit Slips A deposit slip is a document used to deposit checks. click Payments. and then click Payment journal. 6. 5. 4. Click Accounts receivable. 7. in the Account field. Click the New button to create a new record. 9. In the Credit field. Click the Lines button to access the Journal voucher form. FIGURE 8. 10. credit card notes. and cash into a bank account. Select the Use a deposit slip check box. Select a Description to attach information about the transaction to the deposit.1 DEPOSIT SLIP FORM Procedure: Create a Deposit Slip Perform the following steps to create a deposit slip. In the Offset account type field. 3. select Bank. 2. type the deposit amount. click Journals. 1. Or. select the account of the customer who made the deposit. Select a journal name from the Name list. In the Offset account field. 8-6 . Use the Deposit slip form to view and manage deposit slips for payments into bank accounts. 8. select the bank account in which to make the deposit. click the Enter customer payments button to enter the payment in the Enter customer payments form. From the Journal voucher form.

not the entire deposit slip. 5. Click Functions. enter a reference for the payment if applicable. you cannot cancel the payment. Payment Fee. and then click Deposit slip. and then click the OK button to send the cancellation for review. enter the currency code of the bank account in which to make the deposit. 8-7 . 1. 17. Payment. Select the line with the deposit slip to cancel. o Enter a Journal name. Select the Method of payment and Payment specification. When you cancel a deposit slip payment. and Bank tabs. 4. In the Currency field. Perform the following steps to cancel a deposit slip. NOTE: The system may require a Reason code if the Require reasons for deposit slip payment cancellations check box is selected on the General FastTab of the Cash and bank parameters form. 12. Procedure: Cancel a Deposit Slip Payment You may want to cancel a deposit slip payment if a customer payment is invalid. Click the Post button. If you have already reconciled the deposit slip in the bank statement. 3. Click the Cancel payment button. In the Payment reference field. 2. In the Cancel payment form. 18.Chapter 8: Cash And Bank Management Daily Procedures 11. click Common. the single payment is canceled. then click Deposit slips. In the dialog box. 16. Close the Infolog form. Click Cash and bank management. 15. 13. enter the date in the Bank statement date field. Other deposit lines remain unchanged. and then click Post. Accept the default value or modify the value in the Reason comment field. 19. enter any applicable information. Depending on which method your organization prefers and whether the Use review process for deposit slip payment cancellations check box is selected on the General tab of the Cash and Bank management parameters form. do one of the following: o Click the OK button to post the cancellation. On the General. 6. 14. Click OK to view the deposit slip. select a reason for cancellation from the Reason code list.

2. 1. o To reject the cancellation.Financials I in Microsoft Dynamics® AX 2012 Procedure: Review a Deposit Slip Payment Cancellation You can submit a deposit slip payment cancellation for review. Select the cancellation journal to review and then click the Lines button. and then click Deposit slips. Perform the following steps to review cancellations. Verify that a check mark is in the Canceled field. 1. 3. and then click Post or Post and transfer. During review. or reject the cancellation. click Common. 2. click the Post button. Procedure: Verify a Deposit Slip Payment Cancellations Perform the following steps to verify that the system has canceled the deposit. and then click the General tab. The system requires a review if the Use review process for deposit slip payment cancellations check box is selected on the General FastTab of the Cash and bank management parameters form. click the Delete button on the toolbar. 8-8 . you can either approve and post the journal. 3. Click Cash and bank management. and then click Deposit slip payment cancellations. click Journals. Click Cash and bank management. Review the cancellation and select one of the following approval options: o To approve and post the cancellation journal. Select the line for the canceled deposit slip in the Deposit slip form.

The deposit was made to the USA OPER bank account and the payment reference is 1987. In the Credit field. 3. the Bookkeeper for Contoso. type 1987. click Journals. Click the Lines button to access the Journal voucher form.Chapter 8: Cash And Bank Management Daily Procedures Lab 8. 3. 8-9 . Click the Post button. 4. In the Account field. Challenge Yourself! Help Annie complete the following: 1. Make sure that the Offset account field contains USA OPER. 9. 2. 6. must enter a deposit for Customer 2022 for 1000 USD. Click the Cancel payment button from the Deposit slip form to cancel the deposit slip. and then click Post.2 . Select the Use a deposit slip check box in the Customer payment journal. Select the Use a deposit slip check box. 4. Click the New button to create a new record. In the Payment reference field. Click Accounts receivable. The payment reference should be 1988. click Payments.Create a Deposit Slip Scenario Annie. Select ARPay in the Name list. Make sure that the Currency field contains USD. 5. 2. Create a customer payment journal View the deposit slip to verify it exists Cancel the deposit slip Verify that the system canceled the deposit slip Need a Little Help? 1. 8. 10. 7. type 1000. select customer account 2022. Click the Close button in the Infolog. Step by Step Create a customer payment journal: 1. 11. 2. 12. Annie realizes that she entered the deposit slip in error. and then click Payment journal.

Click the Functions button. Select BA_Dep_Rev in the Journal name field. In the Deposit slip form. click Common. Select ERROR in the Reason code field. accept the default date. click Common. Click OK. Click the Close button in the Infolog. 3. Click the Cancel payment button. 2. Click Cash and bank management. and then click OK. Verify that a check mark is in the Pending Cancellation field. 2. 5. Click OK again to view the deposit slip. 2. 3. 7. 6. then click Deposit slip. 8-10 . Verify that the system canceled the deposit slip: 1. and then click Deposit slips. 3. Click Cash and Bank management. Select the line that contains the deposit slip to cancel. 4. and then click the General tab. Select the line for the canceled deposit slip in the Deposit slip form.Financials I in Microsoft Dynamics® AX 2012 Verify that the deposit slip is created by viewing it: 1. Cancel the deposit slip: 1. and then click Deposit slips.

companies must generate payment refunds to their customers or process refunds they received from their vendors. 1. and then click Rejected. For example. then click Checks. In the appropriate payment journal. select the lines ordered for the printing of the checks. In Microsoft Dynamics AX users can create a check refund that prints out a check. Select the relevant bank account. For example. This usually occurs when credit notes. NOTE: This procedure can be used only if you have not posted the checks. Click Cash and bank management. and very the Status field. you must void the unused checks. to void an unposted Accounts Payable payment journal. click Journals. click Accounts payable. The refunding feature is implemented in payment journals for customers. look for checks with the status of Void. The application removes the check numbers from the journal. Procedure: Verify Checks Are Void Perform the following steps to verify the checks are voided. you may be unable to use them. overpayments. 2. 2. Refund Checks Under certain circumstances.Chapter 8: Cash And Bank Management Daily Procedures Void Unposted Checks After printing or trying to print checks. 8-11 . and then click Payment journal. and bonuses are involved in third-party transactions. click Common. click Payments. Procedure: Void Unposted Checks Perform the following steps to void a check. if a check is damaged while it is printed. 1. Click the Lines button and then click the Payment status button.

11. and then name the journal. NOTE: Before you create a check refund. 9. Use the Financial Dimensions button to enter financial dimensions for the journal. From the Journal voucher form. 12. In the Currency field. 15. Payment Fee. In the Credit field. 6. To access the customer payment journal click Accounts receivable. enter any applicable information. 17. Click OK to generate the check. Click the Post button. For more information about Methods of payment. 13. review the Accounts Receivable Setup and Accounts Payable Setup courses. On the General. 8. 4. and then click Post. click Journals. 14. select Bank. 7. in the Account field. 8-12 . 5. Select the Bank account from which to draw the refund. enter a negative amount for the refund amount. Select a Description to attach information about the transaction to the check refund. Modify the Method of payment to Refund. 10. and then click Generate payments. 16. In the Method of payment field. Create a customer payment journal line with a negative amount. enter the currency code of the bank account from which to draw the refund. 2. and Bank tabs. In the Offset account type field. In the Offset account field. set up a Method of payment to refund a check to a customer if you have not done this already. and then click Payment journal. Click the Functions button.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Check Refund Perform the following steps to create a check refund for a customer: 1. select the account of the customer who will receive the refund. click Payments. 3. Payment. select the bank account from which to draw the refund. select Refund. Click the New button to create a new record. Click the Lines button to access the Journal voucher form.

In the Name field. 2.Chapter 8: Cash And Bank Management Daily Procedures Lab 8. 5. From the customer payment journal. Click the New button to create a new record. verify that USA OPER is selected 12. click Journals. 8.3 . 3. In the Credit field. From the Journal voucher form. 9. and then click Generate payments. Use the Functions button to create the check. and then click Post. create a new journal. To access the customer payment journal click Accounts receivable. 5.Check Refund Scenario Contoso received an overpayment on account from Triangle Headquarters. 2. 6. Step by Step 1. in the Account field. 6. type -396. 4. select 2022. Click the Lines button to access the Journal voucher form. 3. In the Method of payment field. 14. Click OK to generate the check. must issue a refund check to Triangle Headquarters for 396 USD. Create in the Journal voucher form. Triangle Headquarters. Verify that Bank is selected in the Offset account type field and USA OPER display in the Offset account field. 13. and then click Payment journal. verify that Refund is selected. 10. click Payments. 11. The system should draw the refund from the US Operating Bank Account. create a line for Triangle Headquarters for the refund amount of 396 USD. 7. the Bookkeeper. In the Bank account field. Annie. Click the Functions button. 8-13 . Challenge Yourself! Help Annie create a refund check to pay Triangle Headquarters the overpayment amount of 396 USD. Change the Method of payment to Refund. Post the refund amount. 4. Close the Infolog or Warning message. From the Method of payment list. Need a Little Help? 1. select Refund. Enter the amount as a negative value to indicate that it is a refund. select ARPay. Click the Post button.

In the Payment step identification field.Financials I in Microsoft Dynamics® AX 2012 Bank Remittance Use the Remittance form to view the remittances made to company bank accounts. you can define the minimum amount of information that the user must enter before he or she can continue to the next step. and then click Remittance. In the Bank account field. In the Currency field. 8. Procedure: Create a Bank Remittance Perform the following steps to create a bank remittance entry. Click Accounts receivable. select the step associated with the payment. set a post validation for file creation date. verify that the currency code used for the payment is displayed. click Journals. set a post validation for print. select the bank account for this remittance. NOTE: For each step. 9. 3. 7. you can define the minimum amount of information that must be filled in before continuing to the next step. select the method of payment to use for this payment. Click the General tab. To ensure that the file is created before posting. 6. 2. To ensure that the bank advice is printed before posting. 8-14 . 4. NOTE: For each step. The File creation date field displays the date that the file was created. 1. click Payments. In the Method of payment field. Click the New button to insert a new record. 5. The Printed field displays the date in the printed payment advice.

For example. 8-15 . Reversing differs from deleting or voiding checks because you can delete only checks that have a status of Created. There are two methods available for reversing posted checks. and you can void only unposted checks. 11. • When you click the Payment reversal button in the Check form. you must reverse a check after you have made a payment and posted the check. In the Remittance format field. You might reverse a check to reissue a payment made to a vendor. and then click Post to post the remittance. Microsoft Dynamics AX provides a function to reverse posted check payments. where a reviewer can then post or reject the reversal.2 REMITTANCE FORM Payment Reversal Occasionally. You can reverse only posted checks that have a status of Paid. the delivery company may have the check or a member of the accounting staff may notice that an employee paid the check in error. • Reversals are posted immediately when you click the Payment reversal button in the Check form. FIGURE 8. select the remittance format for the payment.Chapter 8: Cash And Bank Management Daily Procedures 10. the reversal first is sent to the Check reversals journal in Cash and bank management. Click the Posting button.

Select the check to reverse. To review reversals. Select the reversal journal to review and then click Lines. click the Delete button. 4. The status of the check is no longer Pending cancellation. o To reject the reversal. 3. Close the form. Review the reversal and select one of the following approval options: o To approve and post the reversal journal. Close the form and then click the Delete button again to delete the journal header. you must also select a journal name. and then click Checks. Click Cash and bank management. 8-16 . 2. Click Cash and bank management. click Common. follow these steps: 1. Enter the date and select a reason for the reversal. depending on which method your organization uses. NOTE: Deleting the journal removes the reversal from the system. 1. click Journals. or reject the reversal. 2. Click Payment reversal. click the Post button and then click Post or Post and transfer. Click OK to post the reversal or send the reversal for review. If your organization uses the Check reversals journal for review. Procedure: Review a Payment Reversal It is possible to either approve and post the journal. 3. 5.Financials I in Microsoft Dynamics® AX 2012 Procedure: Reverse a Payment Perform the following steps to reverse a posted check. 4. and click Check reversals. 5. but the original check remains in the Check form.

the status is no longer Pending cancellation. Click Cash and bank management. 5. In the Bank statement field. enter the total ending balance on the bank account statement. 1. and then click Bank accounts. enter the date from the bank account statement. click Common. 8-17 . After a reviewer posts or rejects a check reversal or deposit slip payment cancellation. In the Ending Balance field. Select the bank account for which to reconcile the bank account statement. enter the number of the bank account statement. In the Currency field. and it is possible to reconcile the bank account.Chapter 8: Cash And Bank Management Daily Procedures Reconcile a Bank Account Bank Reconciliation is an important component of the Microsoft Dynamics AX financial management system. 7. Procedure: Begin a Bank Account Reconciliation Perform the following steps to reconcile a bank account. 3. Bank Reconciliation contains the features that provide the following functions: • Enter additional transactions that affect balances • Automate the reconciliation process Reconcile Overview It is not possible to reconcile a bank account statement with a bank account if any of the checks or deposit slip payments that are listed on the statement currently have a status of Pending cancellation. 4. 2. verify that the application inserts the correct currency for the selected bank account. 6. In the Bank statement date field. Click the Account reconciliation button on the Action Pane and enter information as appropriate.

3 BANK ACCOUNT STATEMENT FORM Procedure: Reconcile Transactions As soon as you have entered information about the bank reconciliation. The system enters the date automatically when you post the transaction lines that reconcile company bank records with the bank statement. NOTE: You cannot change the amount of the transaction during reconciliation. 3. In the Mark check interval for reconciliation form. enter the range of cleared check numbers in the From and To fields. 2. Select the transactions to include in the reconciliation by selecting the Cleared check box. Perform the following steps to review transactions. 8-18 . enter the corrected amount in the Correction Amount field. 1. To select a check interval to clear for reconciliation. you can review the transactions in the bank account instead of the transactions on the bank statement. FIGURE 8. click the Mark check interval button. To edit the amount of a transaction during reconciliation.Financials I in Microsoft Dynamics® AX 2012 NOTE: The Reconciled field displays the date of account reconciliation. Ensure that you enter the correction in the currency used for the account. click the Transactions button. From the Bank statement form.

7. 4. Enter the date of the transaction in the Date field. In the Description field. 8. If you used a check for the transaction. enter the number for the deposit slip that a payment should be associated with.Chapter 8: Cash And Bank Management Daily Procedures Procedure: Enter Missing Transactions Sometimes transactions that have not been recorded in the system appear on the bank statement. Click the Checks button to view a list of the checks for this account. Click the New button. 1. NOTE: When you create transactions manually during reconciliation. Procedure: Complete a Bank Account Reconciliation After you have reconciled the transactions. 3. In the Deposit Slip field. if applicable to the transaction. The corrections post when you update the reconciliation. enter the check number in the Check number field. 9. from the number sequence and will mark it Bank-account reconciled. the application automatically will assign a voucher number. The voucher number is displayed on the General tab. In the Amount in transaction currency field. Click the Deposit Slips button to view a list of the deposits for this account. Perform the following steps to create transactions that have not been recorded in the account. 6. enter information that describes the transaction. enter the transaction amount in the specified currency. indicate which ledger account the system should offset when you create the new transactions during reconciliation. enter any required dimensions for the transaction. click the Reconcile account button to perform the reconciliation of the Bank Account. 5. Select the correct transaction type in the Bank Transaction Type list. In the Main Account field. 8-19 . 2. On the Financial dimensions tab.

in addition to generating and issuing checks according to company specifications. refund. In the Bank reconciliation form. and then click Bank reconciliation to print a report that takes non-reconciled transactions into account and shows transactions after the reconciliation date. and then click Reconciliation summary to print a bank reconciliation report. The application provides functionality to manage check payments. 1. and void checks.Financials I in Microsoft Dynamics® AX 2012 Procedure: Print Reconciliation Reports Perform the following steps to print reconciliation reports. Users can delete. In addition. Summary This course covers the main procedures in the Cash and Bank Management module in Microsoft Dynamics AX. companies can use the bank reconciliation function to match internal company records of transactions against bank statements. select the fields to include in the report: o Reconciliation summary o Cleared transaction detail o Uncleared transaction detail 2. Click the Print button. 8-20 . Click the Print button. because the system records all financial transactions. as well as procedures for resolving special situations with checks.

How can you tell if a deposit slip is canceled? 4. Annie.Chapter 8: Cash And Bank Management Daily Procedures Test Your Knowledge Test your knowledge with the following questions. Create a check refund by placing the following steps in order: Step: _____: Create a customer payment journal line with a negative amount. What status must a check have for you to delete it? ( ) Void ( ) Processed ( ) Created ( ) Invoiced 3. must create checks numbered 2361 through 2366. What values must she enter in the From and Quantity fields to do this? ( ) Enter 2361 in the From field and 5 in the Quantity field ( ) Enter 2366 in the From field and 5 in the Quantity field ( ) Enter 2361 in the From field and 6 in the Quantity field ( ) Enter 2366 in the From field and 6 in the Quantity field 2. _____: Modify the method of payment to Check Refund on the negative payment journal line. 8-21 . the Bookkeeper at Contoso. _____: Generate the refund check. 1. _____: Post the payment journal.

8-22 . Explain the circumstances in which you would delete. void.Financials I in Microsoft Dynamics® AX 2012 5. When you perform bank reconciliation. how do you exclude transactions that are in the application but not on the bank statement from the reconciliation? ( ) Open the transaction ( ) Delete the transaction ( ) Select the Cleared check box ( ) Do not select the Cleared check box 6. or reverse a check.

3. 2.Chapter 8: Cash And Bank Management Daily Procedures Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1. 8-23 .

the Canceled check box is selected. What values must she enter in the From and Quantity fields to do this? ( ) Enter 2361 in the From field and 5 in the Quantity field ( ) Enter 2366 in the From field and 5 in the Quantity field (•) Enter 2361 in the From field and 6 in the Quantity field ( ) Enter 2366 in the From field and 6 in the Quantity field 2. 3 8-24 : Generate the refund check. Create a check refund by placing the following steps in order: Step: 1 : Create a customer payment journal line with a negative amount. 4 : Post the payment journal. the Bookkeeper at Contoso. 2 : Modify the method of payment to Check Refund on the negative payment journal line. on the General tab. 4.Financials I in Microsoft Dynamics® AX 2012 Solutions Test Your Knowledge 1. must create checks numbered 2361 through 2366. . Annie. How can you tell if a deposit slip is canceled? MODEL ANSWER: On the Deposit slip form. What status must a check have for you to delete it? ( ) Void ( ) Processed (•) Created ( ) Invoiced 3.

how do you exclude transactions that are in the application but not on the bank statement from the reconciliation? ( ) Open the transaction ( ) Delete the transaction ( ) Select the Cleared check box (•) Do not select the Cleared check box 6. After printing or trying to print checks. checks may be voided. Checks with a Created Status can be deleted. Explain the circumstances in which you would delete. This may happen if checks are damaged in printing. or reverse a check. but before posting. you can reverse it. void. When you perform bank reconciliation. If payment has been made and a check has been posted. MODEL ANSWER: Checks that are created but not used have the status of Created in the Status field.Chapter 8: Cash And Bank Management Daily Procedures 5. 8-25 .

Financials I in Microsoft Dynamics® AX 2012 8-26 .

Introduction This course describes the different Accounts Payable setup options in Microsoft Dynamics® AX. • Set up vendor groups. • Set up a cash discount. • Create a method of payment.Chapter 9: Accounts Payable Setup CHAPTER 9: ACCOUNTS PAYABLE SETUP Objectives The objectives are: • Create a payment schedule. and include the following: • Payment schedules • Payment days • Terms of payment • Cash discounts • Methods of payment • Payment fees This course also explains the vendor setup for efficient management of vendors and vendor transactions. • Create a payment day. • Create a new vendor. This course explains topics such as payment options. • Set up posting profiles. These global payment options are used in the Accounts Payable and Accounts Receivable modules. • Create terms of payment. • Create a payment fee. 9-1 . vendor setup and posting profiles. It shows setup procedures and defaults used throughout the Accounts Payable module. Microsoft Dynamics AX offers extensive functionality for setting up different vendor payment options.

payment of the total amount is divided into a fixed quantity of payments. In the Allocation list. To access the Payment schedules form. 6. o Fixed quantity . click Accounts payable. Enter a description in the Description field.total amount outstanding on the invoice due. Define the following to set up a payment schedule: • Number of installments • Amount of each installment • Due date of each installment A payment schedule consists of consecutive payments in set time intervals. click Payment.a specified amount is due on each specified payment date. click Setup. o Specified . If Specified is selected. select an allocation method: o Total .a specific. o Fixed amount .000 USD each month until the balance is paid.Financials I in Microsoft Dynamics® AX 2012 Payment Schedule Use payment schedules to pay invoices in installments. 2. the payment schedules and amounts must be defined on the Payment lines FastTab. This is also known as a finance plan. Click the New button to enter a new record. 5. fixed amount is due for each payment on the specified payment dates. and then click Payment schedules. Enter a name to be used as identification of the payment schedule in the Payment schedule field. During this period the invoice is not considered past due if the scheduled payments are made on time. or contract payments. 3. It is paid at 2. 9-2 . The payments can be a: • A set amount • A specified number of payments in which the amount owed is divided to create equal payments For example. Procedure: Create a Payment Schedule Perform the following to create a payment schedule: 1. Click the General FastTab.000 USD is recorded. an invoice of 10. 4.

5.1 PAYMENT SCHEDULES FORM Procedure: Create a Total Payment Schedule If Total is selected in the Allocation list. click the General FastTab. different fields are enabled on the General and Payment lines FastTabs. Perform the following to complete the payment schedule setup: 1. The system uses this information when it calculates the due date of each installment. Procedure: Create a Specified Payment Schedule If the Specified option is selected in the Allocation list. 2. to designate how many different payments there should be. 4. or Years. Use the Sales tax allocation list to distribute the sales tax amount to the payment schedule installments. select the date interval in Days. 9-3 . FIGURE 9. From the Payment schedules form. no other fields are enabled on the General FastTab.Chapter 9: Accounts Payable Setup Depending on the value selected in the Allocation list. Enter the time interval for each installment in the Quantity field. depending on the value in the Percentage/Amount field. Enter the value of the installment in the Amount in transaction currency field. Click the Payment lines FastTab to define the line information for the payment schedule. Enter either the value of the installment as a percentage of the amount invoiced or as an absolute amount. Months. in the Payment per list. Select whether the value entered is a percent or an absolute amount in the Percentage/Amount list. 3. 6. and to divide how much of the total should be paid in each payment.

on the General FastTab. enter the fixed amount in the Amount currency field. enter the fixed number of installments in the Number of payments field. and the invoice is dated November 15. After that date. Months. Scenario Contoso has a standard vendor payment term of Net 30 days. according to the settlement. • Purchase order in the Purchase order form. if the payment is not completed. 1.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Fixed Amount or Quantity Payment Schedule If Fixed amount or Fixed quantity is selected in the Allocation list. • Customer in the Customers form. an interest charge of a specified percent per month may be added to the invoice. In the Change field. 3. Perform the following to complete the payment schedule setup. enter the minimum installment amount. 2. Use a term of payment for calculation of a due date based on the date of the invoice. then payment is due December 15. Contoso must pay the net due within 30 days of the invoice date. select the date interval in Days. 5. With a Net 30 Days settlement. Terms of Payment Use the Terms of payment form to define all the terms of payment used by a company and the vendors. In the Minimum field. From the Payment schedules form. If the Allocation field is set to fixed amount. The system uses this information when it calculates the due date of each installment. 9-4 . enter the number of units related to the payment per value between the due dates of each installment. If an invoice with a Net 30 payment term ships goods on September 15. • Sales order in the Sales order form. Other services charges may also apply. or Years. 4. Minimum amounts override calculated payment amounts. in the Payment per list. If the Allocation field is set to fixed quantity. Specify terms of payment for each of the following: • Vendor in the Vendors form.

click Setup. Enter the number of months to add to the payment method to calculate the due date in the Months field. click Payment. From the Terms of payment form click the Setup FastTab. o Net o Current month o Current quarter o Current year o Current week o Cash on Delivery (C. Select the method that is used to calculate the due date in the Payment method list.Setup Perform the following to define the setup information for a term of payment: 1. 3. and then click Terms of payment. 4. 2. FIGURE 9.O. enter a code or a short name for the term of payment.) 3. Click Accounts payable. 2. Click the New button to create a new record.2 TERMS OF PAYMENT FORM Procedure: Create Terms of Payment .D. Enter a descriptive name for the current terms of payment in the Description field. 9-5 .Chapter 9: Accounts Payable Setup Procedure: Create Terms of Payment Perform the following to create a term of payment: 1. In the Terms of payment field.

In the Language field.O. 2. NOTE: If a term of payment is linked to a payment schedule. select Current month to pay the vendor invoice during the month of the invoice date. 5. select Net and enter 20 in the Days field to pay a vendor 20 days after the invoice date.O. follow these steps. The rules set up in the payment schedule are used to calculate the due date of the following installments. (Cash on delivery) payment method is selected. If the C.Language Perform the following to define additional language options for the terms of payment: 1. For example. click the Translation button to translate the search name into more languages. select the language that you are translating. Click the New button to enter a new record. Procedure: Create Terms of Payment . To extend the period add days to the Days field. In the Ledger posting area from the Cash field. For example. Select a payment day to be used for calculation of the due date in the Payment day list. Or. The payment day can be specified: o For a specific day in the week o For a specific day in the month Procedure: Create Terms of Payment .D. 4.Financials I in Microsoft Dynamics® AX 2012 4. Select the Cash payment check box to indicate if payments should be made in cash and not by check. 3. enter the translated text. 2. select a ledger account for settlement of invoices that will be used for cash payment.C. 6. to complete the term of payment setup. Enter the number of days to add to the payment method to calculate the due date in the Days field. The payment schedule defines how an invoiced amount is split into installments that must be paid in specific intervals. if a French language text is created the text is shown on invoices for all vendors that are set up with French as the language. 9-6 .D. The due date is always rounded up to the nearest specified date. In the Text field. Link a payment schedule to the term of payment in the Payment schedule list. From the Terms of payment form. the rules set up in the term of payment are used to calculate the due date of the first installment. 1.

2. and if Month is selected. The due date always is rounded up to the nearest specified date. Click the New button to create a new record. 5. 1. click Payment.3 PAYMENT DAYS FORM Set up the payment day in the Terms of Payment form on the Setup FastTab to define the payment date used for calculation of the due date. 9-7 . click Setup. In the Payment day field. FIGURE 9. On the Payment day lines FastTab. 4. Select between Week and Month in the Week/Month field. 3. enter a value from the Day of Week field.Chapter 9: Accounts Payable Setup Payment Days Use payment days to define the payment day used for calculating due date. Click Accounts payable. click the Add button to add a new line to the payment day. enter in the Day of month field a value between 1 and 31. Payment day can be specified for one of the following: • Day in the week • Day in the month Procedure: Create a Payment Day Perform the following to create a payment day. enter a short identification of the payment day and enter a description of the payment day identification in the Description field. and then click Payment days. If Week is selected.

In the Terms of payment list. 3. 4.. type Net 12 days. 1. Click the Setup FastTab.Terms of Payment Scenario Cassie. 6. Step by Step Create the new term of payment and name it N012. In the Description field. Click the Payment FastTab. then click Vendors. and then click Net. Assign the new term of payment to the vendor Southbridge Insurance Co. Click Accounts Payable. now requests that payments are paid in 12 days. Click the Edit button on the Action Pane. select the newly created term of payment N012. click Setup. 4. Challenge Yourself! Help Cassie create the new term of payment titled N012 and assign it to the vendor. click Payment. Click the Payment method arrow.1 . the Accountant at Contoso. 7. type N012. In the Days field. The vendor. 6. Click the New button. 5. has been asked to set up a new term of payment for a vendor that Contoso has been slow in paying. 5. 2.click the record for vendor 8004 (Southbridge Insurance Co. 9-8 . Double. Southbridge Insurance Co. 8. 1. type 12. Close the form. 2. click Common. and then click Terms of payment.). and then click All vendors. 3.Financials I in Microsoft Dynamics® AX 2012 Lab 9. Close the form. In the Terms of payment field. Click Accounts payable.

click Payment.4% Discount for the discount code 7D4. enter 7D4 to indicate the company receives a four percent discount if payment is made seven days before the due date. and then click Cash discounts. • Post to the ledger account specified for the cash discount automatically if an invoice is settled on time. Click the New button. enter 7 days . or are given to customers when they pay their invoices in a specified period. Finally.Chapter 9: Accounts Payable Setup Cash Discounts The following information applies to cash discounts: • Accrue if a company meets the vendor payment terms on time. Procedure: Set Up Cash Discounts Perform the following to set up cash discounts. click Setup.cash discount of five percent when the amount is paid within ten days. Enter an alphanumeric code for the cash discount in the Cash discount field. 1.cash discount of 10 percent when the amount is paid within five days. Select the cash discount code used when the criteria for obtaining the current cash discount is exceeded in the Next discount code list. To specify the cash discounts following the 5D10% code. • Link to the Customer tables and Vendor tables. For example. Enter a brief description for the cash discount in the Description field. 4. On the 10D5% code. only one cash discount is granted. 2. 3. Scenario Contoso obtains a cash discount if it pays vendor invoices within certain dates. • 14D2% . the 10D5% code is selected in the Next discount code list. • 10D5% . 9-9 . For example. the 14D2% code is selected in the Next discount code list. However. The three cash discounts occur sequentially as the cash discount date nears. on the 14D2% code the Next discount code is left blank. Contoso has set up the following codes: • 5D10% . Click Accounts payable.cash discount of two percent when the amount is paid within 14 days. 5.

FIGURE 9. The method specified. 2. Select the Main account for customer discounts and the Main account for vendor discounts. 4. NOTE: Assign cash discounts to vendors. From the Cash discounts form click the Setup FastTab. Enter the number of days during the period when the cash discount is applicable in the Days field. or purchase orders.Financials I in Microsoft Dynamics® AX 2012 This selection lets you to define a set of cash discounts that are sequential. 6. Enter the cash discount as a percentage of the invoiced amount in the Discount percentage field. Select the method applicable for the cash discount from the Net/Current list. is used to calculate the last date make a payment and receive any available cash discount. 5. journals. 9-10 . 3. Enter the number of months during the period when the cash discount is applicable in the Months field.Setup Perform the following to define setup options for cash discounts.4 CASH DISCOUNTS FORM Procedure: Set Up Cash Discounts . 1. with the value given in the Days field and/or Months field.

1. 9-11 . If there are multiple cash discounts so that an overpayment was settled against multiple invoices. 3. To access the Accounts payable parameters form. click Accounts payable. the system will adjust the cash discount.the underpayment amount is posted to the vendor cash discount account. the adjustment to the discount is from the last invoice to the first discount. it is posted to the system cash discount account. and then click Account payable parameters. If the applicable cash discount was posted in the same company as the overpayment. Click Settlement in the left navigation pane. In the Cash-discount administration field select what to do with an overpayment or underpayment when a cash discount is not deducted correctly when the invoice is settled. click Setup. 2. Select from the following values: o Unspecific .Chapter 9: Accounts Payable Setup Procedure: Define Accounts Payable Parameters Perform the following to specify accounts payable parameter values that affect the cash discount calculation. If the applicable cash discount was not posted in the same company as the overpayment.

the overpayment or underpayment amount is posted to the vendor cash discount account.50 USD. the invoice is settled.50 USD is posted to the ledger account specified for cash discount differences. and the difference of 0. However the amount actually paid to the vendor is 95. a vendor's invoice total is 105. Considering the cash discount.5 ACCOUNTS PAYABLE PARAMETERS 9-12 .Financials I in Microsoft Dynamics® AX 2012 o Specific .00 USD. and the difference of 0. For example. the invoice is settled.50 USD (105-10. FIGURE 9. If the Cash-discount administration parameter is set to Unspecific.50). and the obtainable cash discount is 10.50 USD is posted to the vendor's cash discount account.00 USD. the vendor will be paid 94. If the Cash-discount administration parameter is set to Specific.

To access the General ledger parameters form. click Setup. 3. Select the Cash discount is calculated on amount including sales tax check box in the Vendor cash discount Area to specify that the cash discount is calculated based on the amount plus sales tax. Click Sales tax on the left navigation pane. Expand the Tax options FastTab. and then click General ledger parameters. 2.6 GENERAL LEDGER PARAMETERS FORM 9-13 . click General ledger. 1. FIGURE 9.Chapter 9: Accounts Payable Setup Procedure: Define General Ledger Parameters Perform the following to specify general ledger parameter values that affect the cash discount calculation.

2. click Payment. 4. Click the New button to create a new record. • Define fee identifications. and then click Payment fee. Enter an identification in the Fee ID field. 3. Procedure: Create a Payment Fee Perform the following to create a payment fee. a vendor might add a fee for issuing a promissory note or a company might be charged a vendor bank remittance fee. After the invoice amount is transferred. 9-14 .Financials I in Microsoft Dynamics® AX 2012 Payment Fee Use payment fees to do the following: • Specify if any additional charges are added to the vendor invoice. Click Accounts payable. 1. click Setup. Enter a brief description in the Description field. and identify how to generate fees. To manage the payment fees from the bank. a paper remittance invoice is sent automatically to each vendor explaining the specific account the payment is posted to and the amount of the payment issued. Contoso decides to set up payment fees for vendor invoices. Scenario Contoso electronically transfers invoice amounts (that are due to the vendor) to its bank. For example. The bank then transfers the money directly into a vendor's designated banking account. specify bank relations.

currencies. 1. 2. If Ledger is selected. methods of payment. Select the kind of bank information that is required to start the fee in the Grouping field. 6.Chapter 9: Accounts Payable Setup 5. Select whether to charge the Vendor or Ledger to use a financial cost for the fee in the Charge field.all the bank accounts 9-15 . The fee is valid for each field for: o Table . click the Payment fee setup button. Select the journal type for which the fee is valid for in the Journal type field. payment specifications. From the Payment fee form. This journal type is typically vendor bank remittance.the bank account selected in the field Bank relation o Group . select an account in the Main account field for posting in the ledger.the bank group selected in Bank relation o All . Perform the following to set up a payment fee.7 PAYMENT FEE FORM Procedure: Define Payment Fee Setup You can define a payment fee to set up lines for each fee used for different banks. FIGURE 9. and amount intervals. time periods. remittance types.

Only transactions with this currency can enable the fee. Select the currency code for the fee in the Currency field. Select the currency that enables the fee in the Currency field. 5. Enter the size of the fee in the percentage of the payment or the amount for one payment in the Fee amount field. all currencies enable the fee. Select among: o Amount o Percent o Interval 7. select the payment specifications in the Payment specification field.all is selected in the Grouping field Select a method of payment used for the actual payment fee in the Method of payment field. If you leave this field blank. Select the calculation method in the Percentage/Amount list.8 PAYMENT FEE SETUP FORM 4. Select a bank relation from the Bank relation field if: o A bank account .Financials I in Microsoft Dynamics® AX 2012 3. If the company agrees with the bank to specify the payment. FIGURE 9.table is selected in the Grouping field o Bank groups . 9-16 . 6. 8.group is selected in the Grouping field o Skip .

From the Payment fee setup form. Enter the maximum transaction amount to enable the fee in the Maximum field.9 PAYMENT FEE SETUP FORM.General Perform the following to define additional options for the Payment Fee Setup. If a financial cost is selected. click the General tab. 6. 5. Enter the ending date for date interval for fee calculation in the To date field. the net amount is posted on a ledger account. and the sales tax amount is posted on a sales tax account. 3. 4. If the calculated fee is less than the value entered in the Minimum fee field. FIGURE 9. 1. you can select a Sales tax group and an Item sales tax group to generate the relevant taxes. it will not be applied. GENERAL TAB 9-17 . Enter the date the date interval starts for fee calculation in the From date field. NOTE: If sales tax is calculated.Chapter 9: Accounts Payable Setup Procedure: Define Payment Fee Setup . 2. Enter the minimum transaction amount to enable the fee in the Minimum field. 7.

4. From the Payment fee setup form. such as the following: 9-18 • Credit • Cash in advance • Bill of exchange • Check and electronic payments . 3. INTERVAL TAB Methods of Payment Many companies offer several methods to pay due invoices. Enter the number of days between the posting date (discounting date) of the remittance and the due date of the promissory note in the Days field. Select whether the specification is a percentage or an absolute amount in the Percentage/Amount field.Interval You can enter fees for the selected payment fee setup line that depend on the interval between the remittance and due dates. FIGURE 9. 2.Financials I in Microsoft Dynamics® AX 2012 Procedure: Define Payment Fee Setup . Perform the following to define an interval payment fee setup.10 PAYMENT FEE SETUP FORM. click the Interval tab. 1. Enter the size of the fee in percent of the payment or amount for one payment in the Fee amount field.

Enter the number of days the vendor gives to make the payment after the specified method of discount. and then click Methods of payment.combines the payment for all invoices for vendors with the same due date o Week . Enter a description of the method of payment in the Description field.Chapter 9: Accounts Payable Setup In the Methods of payment form. Options include the following: o Invoice . For each method of payment.creates one payment transfer for each invoice o Date . click Payment. 3. 4. 6. Select whether the system should total the invoices in an automatic payment proposal. Methods of payment can be assigned to: • Vendors • Journals • Purchase orders Procedure: Create a Method of Payment Perform the following to create a method of payment. 9-19 . click Setup. Enter a name for the new method of payment in the Method of payment field. enter information that states how payments should be summarized and posted.combines all invoices from vendors for the same payment 5. 1. Click Accounts payable. 2. specify all the methods of payment the company uses to pay its vendors. and still give a cash discount in the Grace period field. Select the payment status that is required to post a payment with this method of payment in the Payment status field. 7.combines all invoices for vendors with a due date within the same week o Total . Click the New button to create a new record.

FIGURE 9. select the kind of offset account that is used for payments. When this payment type is used. From the Methods of payment . o Other . In the Posting area in the Account type field. 3. such as electronic funds transfer (EFT).the method of payment is a check. Users might need to print copies of payments to resolve payment disputes. This is the default value. Select what type of payment is allowed in the Payment type field. 9-20 . 2. o Electronic Payment .General Perform the following to add general information to the method of payment: 1.the method of payment is a promissory note. The most common account type is Bank. o Promissory note .11 METHOD OF PAYMENTS Procedure: Create a Method of Payment . Select the Allow copies of payments check box to allow users to print non-negotiable copies of payments for the selected method of payment. o Check . Select the liquidity account for payment in the Payment account field.the method of payment is electronic. or to let vendors know which invoices were paid on a particular date. the system performs bank validations that are skipped if you use other payment types.vendors form click the File formats FastTab.Financials I in Microsoft Dynamics® AX 2012 8.method of payment is none of the other choices or is not yet assigned. 9.

Remittance format Enter a format for remittance to a specific bank. When you receive the draft. The bill is not printed. Return format Enter a format to return a message from the export format. 5. The bill is not printed and you agree to pay without an acceptance step.you accept the bill of exchange from the vendor and include a remittance.you promise to pay the vendor on a specified date.vendors form click the File formats FastTab. o Bill with no acceptance . 1. Procedure: Create a Method of Payment .no draft is created. and the bank is responsible for paying the bill to the vendor. The transaction type is marked on every transaction generated in the payment proposal. From the Methods of payment . o Bill of exchange with bank acceptance . if the bank supports an electronic return file. The export format tells the system how to communicate with the bank. enter the acceptance date or approval date. 9-21 . You do not receive a bill of exchange from the vendor. In the Promissory note area. o Bill with acceptance .the bill of exchange can be included directly in a bank remittance. a promissory note or a check format. o Promissory note .File Formats Perform the following to specify the file format. for example.Chapter 9: Accounts Payable Setup 4. Specify the file formats to use with this Method of Payment by using the following table to complete the File formats tab: Format Action Export format Specify the format to export payment. This field is active only when the account type is Bank. and you agree to pay without an acceptance step.a bill of exchange can be included directly in a bank remittance. 2. The bill can be printed and sent from the vendor with an invoice or an account statement. Enter the transaction type for a bank account in the Bank transaction type field. select one of the following in the Type of draft field: o No draft .

1. Select one or more of the following validation methods: o Payment reference is mandatory . FILE FORMATS FASTTAB Procedure: Create a Method of Payment . Select the validation for the method of payment.vendors form click the Payment control FastTab. click the Setup button and select from the available formats.verifies that a note follows the payment o Payment ID is mandatory . 2.12 METHODS OF PAYMENT . Validation is executed during posting if a method of payment is selected on a journal. FIGURE 9.verifies that a payment reference is entered o Payment note is mandatory . From the Methods of payment .Payment control Perform the following to select the validation for the method of payment.verifies that a payment identification is filled in 9-22 .Financials I in Microsoft Dynamics® AX 2012 NOTE: If the format list is empty.

verifies that the offset account type selected is Bank Bank transaction type is mandatory -verifies that a bank transaction type is selected FIGURE 9. PAYMENT CONTROL FASTTAB 9-23 .Chapter 9: Accounts Payable Setup o o o o Payment specification is mandatory -verifies that the payment method's specification is entered Check number is mandatory .13 METHODS OF PAYMENT.verifies that the check number is entered Offset account has the type bank .

Attach the new terms of payment and cash discount to the vendor. Also. Other details are as follows: Field Value Payment status None Account type Bank Payment account EUR OPER Bank transaction type 03 Export Format 1 (Test) Return Retur. Need a Little Help? 1. and then click Methods of payment. type SCD.2 . The vendor has asked Contoso to pay cash with a special discount. 3. and then click Invoice. Click the New button to create a new method of payment. the Accounts Payable Clerk at Contoso has been asked to set up a new method of payment called special cash discount (SCD). Lake Electronics is offering good terms with a two percent cash discount if the invoice is paid within seven days and net payment due in 14 days. Terms of Payment. Step by Step Create a new method of payment called SCD. payment Challenge Yourself! Help April set up the method of payment. The SCD was requested by Lake Electronics. which specifies that the balance is due in 14 days. and Cash Discount Scenario April. 9-24 .Method of Payment. 2. click Setup.Financials I in Microsoft Dynamics® AX 2012 Lab 9. Special Cash Discount. Create a new method of payment and name it SCD. 2. In the Method of payment field. click Payment. 4. Assign the new method of payment to the vendor. Special Cash Discount. Format 1 pr. 1. a vendor with whom Contoso collaborates. for the next few months to help them with some accounts receivable shortfalls. assign the N014 terms of payment to the vendor. Click the Period arrow. Click Accounts payable.

Click the Account type arrow. Click the General FastTab. 12. and then click All vendors. and then click None. Click the Method of payment arrow. 8. type Special Cash Discount. 2. Close the form. and then click SCD. 8. which specifies that the balance is due in 14 days. 5. click Common.Chapter 9: Accounts Payable Setup 5. 13. Assign the new method of payment to the vendor. Double-click Vendor account 4103. 14. and then click Format 1 (Test). 4. Click the Edit button on the Action pane. Click the Terms of payment arrow. Click the Cash discount arrow. Also assign the N014 Terms of payment to the vendor. Click the Payment account arrow. 9. and then click 03 (ChecksPrinted). 9-25 . In the Grace period field. Click the Export format arrow. and then click N014. type 0. and then click EUR OPER. 6. 3. 10. Click Accounts payable. Click the Payment status field. Click the File formats tab. Close all the forms. Click the Bank transaction type arrow. 6. and then click 2%D07. Click the Payment FastTab. 11. 7. 1. and then click Bank. 7. In the Description field.

that is. Specify a payment term that corresponds to the default time interval between the purchase of an item and the invoice due date in the Terms of payment field. Contoso has set up several vendor groups to do the following: • Specify ledger posting per vendor group . Click Accounts payable.find additional information about how to set up budgets for each vendor group in Financials II training material. 3. 9-26 . Use the Terms of payment list for cash flow forecasting. The name acts as additional specification of the vendors included in the vendor group. You can specify accounts.Financials I in Microsoft Dynamics® AX 2012 Vendor Groups Use vendor groups to set up certain information that always defaults when you enter a new vendor. Enter a short name for the vendor group in the Vendor group field. item consumption account and account for vendor line discounts. click Setup. and then click Vendor groups.to specify accounts for each vendor group. 4. 5. an arrival account for a vendor with a corresponding offset account. To view the name of the vendor in all dialog boxes that display a vendor group move the pointer over the vendor group and wait until the name is displayed. for example.to generate sales statistics that. Enter the full name of the vendor group in the Description field. for vendor debts. a receipt account. • Record sales budgets per vendor group . This name is used throughout the system. Scenario Contoso has multiple vendors to monitor. • Generate trade statistics per vendor group . because a vendor group must be specified when you create a new vendor. click Vendors. use the vendor group to set up automatic posting to General Ledger accounts for consumption generated by vendor transactions. Click the New button to create a new record. To simplify the management of vendors. Procedure: Create a Vendor Group Perform the following to create a new vendor group: 1. You must set up at least one vendor group. show monthly consumption for each vendor group. set up vendor groups. In the Vendor groups form. For example. 2.

the posting in ledger only applies to a specific item number. 2. o Group .Chapter 9: Accounts Payable Setup For example. By selecting Table. Enter or select the default tax group for the selected vendor group in the Default tax group field. coverage is arranged so that the budgeted item price of 10.000 USD is due for payment on July 30. the payment term is used for vendor payment coverage based on one purchase budget per vendor group.000 USD is budgeted for June 15. and sales-tax codes by selecting one of the following in the Item code field. 7. On this basis. Use the payment terms with vendor payment coverage based on one purchase budget for each vendor group.This option is the highest in the hierarchy. accounts. Specify a term of payment that corresponds to the default interval between the due date and the actual payment time in the Settle period field. click the Item posting button. Set up general posting rules for all items. FIGURE 9.The posting in the ledger only applies to a particular item group. 9-27 . If a purchase budget is set up for vendor group X and a purchase of 10. 6. a payment term is specified to correspond to the current month + 30 days. Use the Settle period field in cash flow calculations. From the Vendor groups form.14 VENDOR GROUPS FORM Procedure: Define Inventory Posting Perform the following to set up automatic postings to ledger accounts for a vendor group: 1. o Table .

set up the Primary receipt posting list to prioritize the Item. click Setup. Item code Item relation Account code All All All Group Table B-R14 All Account relation Main account 510100 50 510800 510120 If the posting is set up as illustrated in the following table. The focus of finance is related to consumption and revenue accounts. Click the Posting FastTab and select whether the primary posting should be assigned to Item or Vendor in the Primary receipt posting field. For example. because the item relation is more specific than the account relation. If you buy some of item type B-R14 from vendor 3000. decide which accounts you must set up. the system posts the transaction to account number 510120. the transaction is posted to account number 510100 because of the Accounts Payable parameter setup.15 INVENTORY POSTING FORM Perform the following to further define parameter values: 1. and then click Accounts payable parameters.Each transaction is posted for all item numbers in the same account in the ledger. and the Primary receipt posting list is set to Vendor. The first matching account is used for posting. Click Ledger and sales tax on the left navigation pane. FIGURE 9. and packing slip accounts.Financials I in Microsoft Dynamics® AX 2012 o All . and you bought some of item type B-R14 from vendor 3000. which is part of vendor group 50. click Accounts payable. Based on the kind of business that you run. whereas the focus of logistics is the issue. receipt. 9-28 . 2. 3. To access the Accounts payable parameters form.

Chapter 9: Accounts Payable Setup Item code Item relation All Table B-R14 Account code Account relation Main account Table 3000 510100 All 510120 FIGURE 9.16 ACCOUNTS PAYABLE PARAMETERS FORM. LEDGER AND SALES 9-29 .

and post to account number 211300. click Setup. she must set up automatic posting of receipts to General ledger accounts. and then click P007. the Accounts Payable Clerk. and then click All. type Cash Vendors for the description. 2. . which is titled 13 for cash vendors. Phyllis will use the vendor group to group vendors who require Contoso to pay cash on delivery.Financials I in Microsoft Dynamics® AX 2012 Lab 9. 2. Step by Step Create a new vendor group. Select Purchase inventory receipt and click the Add button. type 83. and then click Vendor groups. Challenge Yourself! Help April create a new vendor group that has automatic posting. In the Vendor group field. 4. and then click P007. Confirm that the Account code field is set to Group.Create a Vendor Group Scenario Phyllis. 1. In the Description field. 3. type 80 – Other vendors. Need a Little Help? 1. Assign the automatic posting to the new vendor group. Click the New button to create a new group. to create a new vendor group. 6. Click the Item code arrow. has asked April. In the Account relation field. Create a new vendor group. 6. Click Accounts payable. The new group should be called 83. In the Main account field.3 . click the Item posting. type 141250. which is titled 83 for cash vendors. the Accounting Manager. 3. 7. Close the form. 1. After April creates the vendor group. Click the Terms of payment arrow. 5. click Vendors. 2. and the description should be cash vendor group. 9-30 From the Vendor groups form. Click the Settle period arrow. Assign the terms of payment as cash and the settle periods as COD. 5. The posting should have the account relation of 80 (other vendors). Assign a cash terms of payment and COD settle period. 4.

Summary accounts are temporary accounts where all invoices are posted to and offset when the vendor is paid. 2. and then click Posting profiles. Click Accounts payable. Enter a code or a short name for the posting profile in the Posting profile field. however. the line specified for the vendor group that the vendor is attached to is used. you can set up many vendor posting profiles.Chapter 9: Accounts Payable Setup Accounts Payable Posting Profiles Posting profiles are common throughout all modules in Microsoft Dynamics AX. • No posting profile line exists for the vendor. Enter a description of the posting profile in the Description field. If all vendor transactions are processed together. Assign posting profiles to the following: • All vendors • Groups of vendors • Single vendor When you post a vendor transaction automatically. Consider the following examples: • A posting profile line exists for the vendor. this line is used. 4. set up only one posting profile for all vendors. the summary accounts are defined for vendors. the system searches for the ledger accounts shown in the previous order. the posting profile line for all vendors are used. 5. Procedure: Create a Posting Profile Perform the following to create a posting profile: 1. Click the Table restrictions FastTab. • Neither of these exists. 3. 6. Select the Settlement check box to indicate whether entries should be created by using this posting profile for automatic settlement or the settlement must be manual and use open-transaction editing. In Accounts Payable posting profiles. Click the New button to create a new record. In the Vendor posting profiles dialog box. click Setup. 9-31 .

o If All is selected in the Account code field.17 VENDOR POSTING PROFILES FORM Procedure: Create a Posting Profile . From the Vendor posting profiles form. 9-32 . 2. Click the Add button to add a new line.Financials I in Microsoft Dynamics® AX 2012 7. Specify which vendors belong to the current posting profile in the Account/Group number field. FIGURE 9.Setup Perform the following to set up the ledger accounts that are posted to when you post transactions in Accounts payable: 1. Select the Cancel check box to indicate whether you want to be able to cancel transactions created that have this posting profile. 3. Select the name of any other posting profile to change to when transactions with this posting profile are closed in the Close list. do not fill in the field. A transaction automatically becomes closed when it is settled in full. o If Table is selected in the Account code field. o If Group is selected in the Account code field. enter the account number of the vendor to whom the posting profile relates. enter the vendor group to which the posting profile relates. Select an Account code: o Table o Group o All 4. click the Setup FastTab. 8.

Select the account used for Sales tax prepayments. all vendor invoices recorded as having arrived but not yet approved are posted in the Arrivals account and the Arrivals offset account.Chapter 9: Accounts Payable Setup 5. Click Ledger and Sales tax on the navigation pane. the debt is transferred to the vendor summary account. When these invoices are approved. which are updated through the invoice register. enter or select the short name of the default vendor posting profile. and then click Accounts payable parameters. 6. all vendor invoices are updated directly in the vendor summary account. The offset account acts as the offset account for arrival and contains unapproved vendor purchases. 2. which are updated through invoice register in the Arrival list. 8. Select the account number of the ledger account that is used as the vendor summary account for the vendor(s) to whom the posting profile relates in the Summary account field. For more about Cash flow forecast refer to the Microsoft Dynamics AX Financials II course. In the Posting profile field. 9-33 . If your company does not use an invoice register and invoice approval journal. Select in the Offset account list. Select a ledger account number that is used to make temporary postings of unapproved vendor invoices. To set up default values for posting click Accounts payable. Select the liquidity ledger account that is used for cash flow forecast. 9. the ledger account number that is used for offsetting unapproved vendor invoices. 7. 3. Procedure: Set Parameter Values Perform the following to define parameter values: 1. click Setup. If you use an invoice register and invoice approval journal. Cash flow forecast in the Settle account field. A posting profile must be specified for every update of a vendor transaction.

Click the Setup FastTab. Step by Step 1. The following details apply: Field Value Posting Profile COD Description Cash on Delivery Profile Account Code Group Account/Group Number 80 . 11.Other Vendors Summary Account 211100 Settle Account 110180 Arrival 211310 Offset Account 211320 Challenge Yourself! Help April create the new vendor posting profile for group 80.Financials I in Microsoft Dynamics® AX 2012 Lab 9. In the Account/Group number. In the Description field. 4.Vendor Posting Profile Scenario Phyllis. 8. 9. type COD.4 . and then click Vendor posting profiles. In the Summary account field. Click Accounts payable. 6. Need a Little Help? You can find the Automatic settlement and Cancel check boxes on the Table restrictions FastTab. 3. In the Posting profile field. 5. 10. type 80. to set up a new posting profile for a group of vendors to be paid from a different cash account than other vendors. 2. Click the Table restrictions FastTab. click Setup. type 211100. type Cash on delivery profile. Verify the Settlement check box is selected. the Accounts Payable Clerk. 7. and then select Group. Verify the Cancel check box is selected. Click the Account code arrow. Click the New button to create a new profile. 9-34 . the Accounting Manager has asked April. Phyllis explained that the profile should be selected for automatic settlement and should allow for cancellation.

14.Chapter 9: Accounts Payable Setup 12. type 211320. In the Settle account field. type 211310. 9-35 . 13. In the Offset account field. Close the form. type 110180. In the Arrival field. 15.

such as telephone numbers. such as purchase orders in the Language field. 5. maintain and inquire about vendors. NOTE: In the Other information section. and a vendor name with up to 30 characters in the Name field.Financials I in Microsoft Dynamics® AX 2012 Accounts Payable Vendors A company purchases goods and services from vendors. Select a Record type of either Person or Organization. and then click All vendors.General Perform the following to create a new vendor: 1. enter values in the other fields in the Organization details and Other information area. Select the vendor group to which the vendor belongs in the Group list. The language code is mandatory. 2. the Name field is used by default. To do this. select the Manual check box on the General FastTab in the Number sequences form. Default information can always be changed. Avoid using numbers that can be changed. Each accounts payable transaction must be associated with a vendor. If it is not entered. Enter as much data as possible when you set up Microsoft Dynamics AX because the data is used throughout the system for: • Invoices • Payments • Reports The base data automatically appears as the default for all transactions involving the vendor. Click Vendor in the New group on the the Action Pane. 7. The Vendor account is generated automatically if the vendor account number sequence is specified in the Accounts payable parameters form in the Number sequences section. Procedure: Create a Vendor . 9-36 . select the language that is used for all external documents. Enter the name to use when you search for the vendor in the Search name field. Click Accounts payable. Some companies prefer to enter the number sequences manually. click Vendors. As appropriate. 6. 4. 3. Enter a Vendor ID with up to 10 characters in the Vendor account field. This selection will determine what fields are available on the form. click Common. Use the Vendors form to create.

click the Show more fields button. Additionally. additional phones numbers NOTE: If alternative delivery addresses are in different states or countries. You must associate tax groups with a delivery address. alternative delivery address. 3. Click the Add button on the Contact information FastTab. FIGURE 9. 2.18 VENDORS FORM Procedure: Create a Vendor . ensure that you enter the appropriate tax group for each alternative address. NOTE: This Area is for non-postal contact information for the vendor organization. and parameters for access from the Internet. such as invoice. contact information. purchase. 9-37 .Chapter 9: Accounts Payable Setup NOTE: To display more fields on the General FastTab. Example: Website URL. If a vendor has more than one address. enter additional addresses by clicking the Add button. enter address. From the Vendors form. enter the vendor's address and contact details on the Addresses and Contact information FastTabs. delivery.Address and Contact Perform the following to add addresses and contact information about the vendor: 1. or SWIFT.

1. This amount always is stated in the default currency.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Vendor . The following types of holds are available: No . After selecting a type of vendor hold. set up the system to verify whether an account is over its credit limit in the Credit rating section of the Accounts payable parameters form. 5. 3. This may occur if a batch job is configured to periodically sweep the vendor master for inactive vendors.no invoices can be created or posted for this vendor. Enter the maximum outstanding amount allowed in the balance of the vendor's account in the Credit limit field. 2. It is used for statistical purposes only. the update is stopped. o Never . 9-38 .no requisitions can be generated for this vendor. then click the On hold button in the Maintain group of the Action Pane.the vendor has no holds. Payments that were generated before the hold was applied can still be posted. All types of transactions are permitted o Invoice . select the Release date and Reason code for the vendor hold in the same drop down menu. To apply vendor holds.prevents vendors from being put on hold for inactivity. If an account is beyond the credit limit specified.no payments can be generated for this vendor. Enter the vendor credit rating in the Credit rating field. click the Vendor tab. From the Vendors form.Miscellaneous Details Perform the following to set Miscellaneous vendor details. 4.all transactions for this vendor are on hold o Payment . As part of updating purchase orders or invoices. o All . click the Miscellaneous details FastTab. 6. o Requisition .

FIGURE 9. 5. If the One-time supplier check box is selected when a purchase order is created. the distinction is indicated here. 1. Select the One-time supplier check box if the vendor is a one-time supplier. and items/planned orders when you create purchases and productions. 9-39 . click the Vendor profile FastTab. You can use this indicator to associate bids and other documentation with the vendor account. Select the Locally owned check box if the vendor meets your guidelines for being a locally owned business. Collecting this data allows local businesses to have priority on certain contracts. 8. Select the Bid only check box if the vendor has submitted quotes or proposals but has not yet been approved for purchases. You can collect this data to generate reports about this information. Perform the following to define vendor profiles. Select a Customer account number if vendor is also a customer and used in Intercompany transactions.Chapter 9: Accounts Payable Setup 7. 4. employees. 3. For example. From the Vendors form. use buyer groups to determine which employees are associated with the current buyer group and to change the buyer group if an employee changes an area of responsibility. 2.19 VENDORS FORM. MISCELLANEOUS FASTTAB Procedure: Create a Vendor .Define Vendor Profile Vendor profiles allow organizations to track specific details about vendors. Select a buyer group in the Buyer group list. Select the Small business check box if the vendor meets your guidelines for being a small business. Your selection creates links between vendors.

leave the Default vendor number blank. Procedure: Create a Vendor . The system automatically creates a one-time vendor when a purchase order is created for a one-time supplier. In the General section of the Accounts payable parameters form. 7. Information is copied automatically when you create a onetime supplier in the Vendors form. The one-time vendor number sequence must be specified in the Number sequences form. on the Purchasing Demographics FastTab. the one-time supplier inherits all base information from the vendor number specified in this field. select a vendor's account number that can serve as the default template for one-time suppliers. If you have no one-time suppliers. This field is used for statistical purposes only. line of business. Except for the vendor number. NOTE: If you are using one-time suppliers you must set up a number sequence for one-time suppliers in the Accounts payable parameters form in the Number sequence section. Continue selecting the appropriate check boxes as appropriate in this section. Select the Woman owner check box if the vendor is owned by a woman. chain and contact name for the vendor in the Vendors form.Purchasing Demographics Enter or view the currency.Financials I in Microsoft Dynamics® AX 2012 6. 9-40 .

on the Payment FastTab. and tax for the vendor in the Vendors form. delivery.Tax 1099 and Financial Dimensions Enter or view information for tax 1099 reporting in the United States for the selected vendor in the Vendors form. discounts and change management for purchase orders when created for the vendor in the Vendors form. Enter information about how to manage payments on the invoices entered in Accounts Payable in the Vendors form. Procedure: Create a Vendor . Throughout Microsoft Dynamics AX.Invoice and Delivery Enter or view invoice defaults.Chapter 9: Accounts Payable Setup Procedure: Create a Vendor . Set up specific dimensions for a vendor on the Financial dimensions FastTab. those dimensions automatically default for transactions made that use that vendor. on the Purchase Order Defaults FastTab. If you designate dimensions for a vendor. This option is available only to legal entities whose primary address is in the United States.20 INVOICE AND DELIVERY FASTTAB. 9-41 . FIGURE 9. on the Tax 1099 FastTab.Purchase Order Defaults and Payment Enter or view the default location. you can use dimensions to group data in different ways. on the Invoice and Delivery FastTab. Procedure: Create a Vendor .

5. Step by Step Create the new vendor. Click Accounts payable. 11. type Dakota Travel.other vendors Credit limit 10. 3. and then click 4%D10. Click the Terms of payment arrow. April. and then click All vendors. Dakota Travel.Vendors Scenario Contoso has begun working with a new vendor. 7. and then click N015. must set up this new vendor. click Common. 10. In the Name field. 1. 2. 9. Click the New Vendor button on the action pane to create a new vendor. Click the Method of Payment arrow. and then click USAUSD_CHK.000. A new vendor account number will be assigned automatically. Click the Miscellaneous details FastTab and then type 10. 6. click Vendors. 8. Click the General tab. 9-42 . Click the Payment FastTab. Close the form.5 .Financials I in Microsoft Dynamics® AX 2012 Lab 9.000 Method of payment Check payment . 4. the Accounts Payable Clerk.00 in the Credit Limit field.USD Cash discount 4%D10 Terms of payment N015 Challenge Yourself! Help April create a new vendor. Tab to the Group field and type 80. Click the Cash discount arrow. The following details apply: Field Value Vendor group 80 .

• Become aware of situations and trends more quickly by grouping vendors with a common identifier to view and analyze financial causes in more detail. ten days three percent and 30 days one percent). For example.Chapter 9: Accounts Payable Setup Summary Payment options in Microsoft Dynamics AX are flexible to accommodate different business processes. You can decide whether you want special ledger accounts to post. current month or current quarter). • Set up advanced payment schedules and use them as terms of payment based on many factors. • Set up terms of payment for cash payment so that the payment posts automatically when you issue the invoice. You also can group vendors to categorize information so that it is meaningful. 9-43 . and with or without additional months or days. By grouping vendors you can do the following: • Set up automatic posting rules for vendor transactions to ensure that the transactions affect the correct accounts. You can do the following with payment options: • Define terms based on the number of months and/or days. • Set up Microsoft Dynamics AX to manage the cash discount with or without sales tax to comply with the tax legislation in various countries. based on a current period (for example. you can group vendors by the kinds of products you purchase from them or by the dollar volume of purchases. based on the following: o o The current period The number of net days • Set up the cash discounts as multiple (for example. including the following: o o o • Percentage allocation of the actual invoice amount Allocation based on a fixed number of installments Combined amounts and percentages of the invoice amount Set up cash discounts similar to the terms of payment.

What interval can the payment day can be specified? (Select all that apply) ( ) Specific day in a week ( ) Specific date in a month ( ) Specific day in a year ( ) Specific day in a quarter 4.Financials I in Microsoft Dynamics® AX 2012 Test Your Knowledge Test your knowledge with the following questions. What are some methods of payment a company might use? (Select all that apply) ( ) Credit ( ) Cash in advance ( ) Check and electronic payments ( ) Bill of exchange 6. A payment schedule consists of which of the following? ( ) Payments ( ) Consecutive time intervals ( ) Consecutive payments ( ) Consecutive payments in set time intervals 2. What elements must be defined to create a payment schedule? (Select all that apply) ( ) Vendor account ( ) Due date of each installment ( ) Amount of each installment ( ) Number of installments 3. 1. How many vendor groups must be set up? ( ) None ( ) One ( ) Two ( ) Ten 9-44 . Cash discounts are linked to what tables? ( ) Sales and Purchase Order ( ) Payment Days and Payment Fees ( ) Terms of Payment and Payment Days ( ) Customer and Vendor 5.

9-45 . 3. 2.Chapter 9: Accounts Payable Setup Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.

Place the following steps in order. Step: 9-46 1 : Access the Terms of payment form in Accounts Payable. . 6 : Specify the days (or other time unit). 3 : Enter a terms of payment identifier. 2 : Create a new record. A payment schedule consists of which of the following? ( ) Payments ( ) Consecutive time intervals ( ) Consecutive payments (•) Consecutive payments in set time intervals 2. 5 : Select the payment method. 4 : Enter a description.Financials I in Microsoft Dynamics® AX 2012 Solutions Test Your Knowledge 1. What elements must be defined to create a payment schedule? (Select all that apply) ( ) Vendor account (√) Due date of each installment (√) Amount of each installment (√) Number of installments 3. Outline the steps to setting up a term of payment.

What interval can the payment day can be specified? (Select all that apply) (√) Specific day in a week (√) Specific date in a month ( ) Specific day in a year ( ) Specific day in a quarter 5. Cash discounts are linked to what tables? ( ) Sales and Purchase Order ( ) Payment Days and Payment Fees ( ) Terms of Payment and Payment Days (•) Customer and Vendor 6. What are some methods of payment a company might use? (Select all that apply) (√) Credit (√) Cash in advance (√) Check and electronic payments (√) Bill of exchange 7. How many vendor groups must be set up? ( ) None (•) One ( ) Two ( ) Ten 9-47 .Chapter 9: Accounts Payable Setup 4.

Financials I in Microsoft Dynamics® AX 2012 9-48 .

• Create an invoice excluding posting. It describes what to use each Invoice Journal for and how to enter transactions into each journal. To give an accurate view of the financial condition of the business. • Generate a payment. • Edit open transactions. • Reverse a closed transaction. • Use a voucher template to create vouchers. 10-1 . • Create a payment proposal. • Register an invoice journal.Chapter 10: Accounts Payable Daily Procedures CHAPTER 10: ACCOUNTS PAYABLE DAILY PROCEDURES Objectives The objectives are: • Explain the different invoice journals available. all the expenses that affect the net profit are included in Accounts Payable. • Add charges to a purchase order invoice. Companies must monitor Accounts Payable closely and implement procedures to enable management to easily obtain the financial information that they must have to stay informed about changes in the costs of goods. • Post a prepayment. Purchasing goods for resale or as materials for manufacturing or services is a large responsibility. • Define print management settings. • Create an invoice journal. • Approve an invoice register journal. • Describe invoice matching. • Set up a prepayment. Introduction This chapter discusses the various Invoice Journals in the Accounts Payable module. Tracking those purchases and paying the vendors that supply the goods is just as challenging. • Create a payment journal. • Run a payment proposal for a marked settlement.

The invoices are typically one of the following: • Registered • Approved • Paid Consider the following about Microsoft Dynamics ®AX: • Supports several methods of managing incoming invoices to cater to different company procedures • Has a different invoice journal depending on the need of the company The following types of invoices are available: • Invoice Register • Invoice Approval Journal • Invoice Pool excluding Posting • Invoice Journal Invoice Register The purpose of the invoice register journal is to pre-register invoices when they arrive at the company and transfer them to an invoice pool for approval. 10-2 . depending on the company's size. structure and organization.Financials I in Microsoft Dynamics® AX 2012 Invoice Journals in Accounts Payable The procedure for handling invoices varies from company to company. Usually the accounts are pending accounts where the amounts requite the manual approval and reclassification by the person specified in the journal line. In the invoice register journal. an employee registers the following information: • Vendor account • Invoice number • Amount • Person who approves the invoice The same employee validates and posts the journal to the accounts specified in the posting profile.

click General ledger. and then click Invoice register. click Journals.Chapter 10: Accounts Payable Daily Procedures Procedure: Register an Invoice Perform the following steps to register an invoice for approval: 1. The number and description are entered automatically in the Journal number and Description fields. FIGURE 10. The default view is Open journals. To access the Journal names form. In the Show field. or All journals. and then click Journal names. select to view Open. click Journals. Journal numbering is controlled by a number sequence. click Invoices. This feature enables you to print a list of ledger transactions created in a specific journal. 4. HINT: Create and define journal names in the Journal names form. 5. 3.1 INVOICE REGISTER 10-3 . Click Accounts payable. These values default from the Journal names form. 2. All subsequent ledger transactions created in this journal contain the same journal number. click Setup. Click New to create a new journal. Enter the name of the journal in the Name field or select the name from the selection list that contains journal names with the relevant journal type. Posted.

Select the summation level from the Detail level list. Enter the maximum number of lines in a journal in the Lines limit field. 4. 2. From the Journal form click the General tab. and currency code values. The kind of transactions that you can post in this journal display in the Posting layer field. Select from the following: o Details . the posting process distributes the lines into several smaller journals.General Most of the fields on the General tab inherit data from the Journal names form. however. If this number is exceeded.use to post every instance of an account number in the journal lines as a separate account transaction o Summary . you can view information that was defined on the Overview tab. and the Payment reference field is blank. account number. 3. you also lose the ability to inquire into journal lines later. This value defaults from the Journal names form but you can overwrite it. Perform the following steps to view or define additional posting parameters for the journal: 1.use to combine the journal lines into one transaction during posting if vouchers have the same date. Select to delete journal lines when posting is completed by selecting the Delete lines after posting check box. In the Identification and Journal areas. 5.Financials I in Microsoft Dynamics® AX 2012 Procedure: Register an Invoice . When you delete journal lines. 10-4 . dimension.

View the voucher number allocation in journals at the time of posting in the Number allocation at posting field. Perform the following steps to view or change posting parameters for the journal: 1.2 INVOICE REGISTER. 10-5 . View the account type that the journal uses as the default offset account type in the Account type field. View the default offset account that copies automatically to all lines in the journal in the Offset account field. The code appears in the Currency field in the journal lines. but you can overwrite them. 3. 6. GENERAL TAB Procedure: Register an Invoice . Enter the number of the external document in the Document field. If you leave the field blank. 5. Enter the currency code in the Currency field. The number copies to the journal lines. Explanations of these fields are available in the topic about journal names and exchange rates. From the Journal form. 4.Setup Most of the fields on the Setup tab inherit data from the Journal names form and Exchange rates form. Select the Forced rate check box to use an exchange rate other than the rate that you usually would use according to the posting date for the selected currency code. FIGURE 10. 7.Chapter 10: Accounts Payable Daily Procedures NOTE: Most of the fields on the General and the Setup tabs are inherited from the Journal names form and the Currency exchange rate form. click the Setup tab. the default currency is inserted in the journal lines. 2.

Enter the secondary exchange rate in the Secondary exchange rate field. From the Journal form. select the Private check box. and you cannot post in the journal. clear this check box. the Locked by system check box is selected. FIGURE 10. click the Blocking tab. If the system has blocked the journal. 10-6 . Select the Amounts include sales tax check box if the amount in the journal line includes sales tax. 2. SETUP TAB Procedure: Register an Invoice . View the name of the user who is using the journal currently in the Used by user field.3 JOURNAL FORM.Blocking Perform the following steps to enter and view parameters that indicate how the selected journal can be blocked by the system for use. 5. 4. 1.Financials I in Microsoft Dynamics® AX 2012 8. 10. To release a blocked journal. Enter the currency exchange rate that applies to the transaction in the Exchange rate field. You also can select this check box manually. The In use check box will be marked if the journal is currently in use. 3. To exclude users or user groups from the journal. 9. The exchange rate is expressed as the number of units of the foreign (non-company) currency that displays in the Quotation unit field in the Currency exchange rates form.

History View details about the approval procedure. only one user at a time can enter lines in a particular journal. the Private for user field contains your user identification. Register an Invoice . 7. 10-7 . BLOCKING TAB Procedure: Register an Invoice .Financial Dimensions Perform the following steps to select financial dimension values to propose on the journal lines for the selected journal. FIGURE 10.4 INVOICE REGISTER. These values display on the journal lines but you can change them.Chapter 10: Accounts Payable Daily Procedures NOTE: For security reasons. If you select the Private check box. if any. 1. To exclude users or user groups from the journal. click the Financial dimensions tab. From the Journal form. select a group in the Private for user group field. 6. Select a financial dimension value in any of the dimension fields. for the selected journal on the History tab. 2. Only the users associated with the selected group can access the journal.

5. 7. Select the description regarding the transaction in the Description field. the field is skipped. the system uses the same description. until you specify offset transaction description. click the Lines button. 4. 2. Select the vendor to register the invoice of in the Account field. Enter the invoice number in the Invoice field. The system date displays. FIGURE 10. and post: 1. When you specify an offset account. because it is attached to the journal name in the Voucher field in the Journal names form. but you can change it. Enter an amount in the Debit field if you are entering a credit note. Enter the appropriate amount in the given currency in the Debit or Credit fields.Financials I in Microsoft Dynamics® AX 2012 Procedure: Register Invoice Lines Perform the following steps to create journal vouchers to validate. From the Journal form. If you set the number sequence code with the Continuous option selected and no user changes are enabled. 3. 6. The Voucher is entered automatically. print. You cannot post the invoice register.5 JOURNAL VOUCHER FORM 10-8 . Enter an amount in the Credit field if you are entering an invoice. Enter the posting date in the Date field. if you do not specify an invoice number.

If this field is empty. 3. Close the window to return to the journal. but you can change it. or enter additional sales tax to the transaction. If a payment proposal is used. To save the changes. The value defaults from the Sales tax group field in the Vendor form. select a sales tax group for the transaction in the Sales tax group field. 10-9 . Restrict the approval function to a specific User group in the Approve field on the Setup tab of the Journal names form.Invoice Perform the following steps to view or edit invoice information for the journal vouchers: 1. the field is always empty. Enter the terms of payment for the current invoice in the Terms of payment field. specify in the Approved by list which employee approves the transaction. Specify the item sales tax group for each journal line in the Item sales tax group list. click the Reset actuals calculated button. The due date calculates by the terms of payment. click the Sales tax button. Enter the payment identification used upon payment in the Payment ID field. but you can manually enter a value. 6. but you can change it manually. click the Apply button. The calculation of the due date only occurs if an invoice number appears in the Invoice field.chart of accounts form. Edit or view the calculated taxes for the current line. In the Journal voucher form. 2. 4. Enter the due date for the invoice in the Due date field. the value in the Item sales tax group field in the Sales tax area of the General ledger parameters form is used.Sales Tax Perform the following steps to view or edit sales tax information for the journal vouchers: 1. 4.Chapter 10: Accounts Payable Daily Procedures Procedure: Register Invoice Lines . To cancel the changes. The value defaults from the Item sales tax group field in the Main accounts . 2. the system suggests the payment ID from the invoice or credit note. 3. NOTE: If the Exempt field in the Main chart of accounts is selected. edit. Procedure: Register Invoice Lines . In the Invoice area of the Journal voucher form. To view. To edit the sales tax. 5. enter either an adjusted amount in the Adjusted amount field or open the Adjustment tab and enter the corrections. View the sales tax amount that calculates on the invoice in the Sales tax amount field.

Payment Perform the following steps to view or edit payment information for the journal vouchers: 1. o The Currency field in the Journal form. 2. o The Accounting currency field in the Ledger form. select the payment method to use on the current payment. 6. This is set up in the Currency exchange rates form. Procedure: Register Invoice Lines . The default value is determined by using the following priority: o The Currency field in the Main accounts . 2.Currency Perform the following steps to view or edit currency information for the journal vouchers: 1. View the cross rate for the two exchange rates in the Cross rate field. or credit note in the Method of payment field. 3. you can set up validation rules for the currency. Specify the payment specification. for the current method of payment in the Payment specification field. View the secondary exchange rate in the Secondary exchange rate field. The Exchange rate is expressed as the number of units of the foreign (non-accounting) currency that is indicated in the Quotation unit field in the Currency exchange rates form. invoice. Enter the currency exchange rate that applies to the transaction. 10-10 . 4. specify the currency to use in the Currency field. but you can change this rate. (Click General ledger > Setup > Ledger). 5. taken from the Journal names form. Specify the purchase order numbers regarding this invoice in the Purchase order field.Financials I in Microsoft Dynamics® AX 2012 5. In the Currency area of the Journal voucher form. This field is informational only.chart of accounts form. Select the tax exempt number for the transaction. NOTE: In the Validate currency code field in the Chart of Accounts form. Procedure: Register Invoice Lines . if any. In the Payment area of the Journal voucher form. The tax exempt numbers are created in Tax exempt numbers form (General ledger > Setup > Sales tax > External > Tax exempt numbers). View the basis for the calculation of the cross rate in the Calculation method field.

The invoices are not yet approved for posting to ledger cost accounts. From the Journal voucher form click the General tab and then do the following: 1. This can also be done in the Offset account field in the Vendors form 3. Select the posting profile for the transaction in the Posting profile field. 7. 2. Enter a date for the document in the Document date field. NOTE: In the Main accounts . Procedure: Register Invoice Lines . the discount amount is redeemed and posted automatically. The actual balance in the journal is reflected in the Journal and Per voucher fields. In the Cash discount area of the Journal voucher form select the code for the cash discount in the Cash discount field. Select an offset transaction text in the Offset-transaction text list. 3. you can set up a default offset account that appears automatically in the Offset account field. 10-11 . Select the account number for the current offset account transaction type in the Offset account field. but they are posted to the accounts that are specified in the Arrival and Offset account fields in the Vendor posting profiles form. Enter or view the amount to report on the 1099 form in the 1099 amount field. Enter the latest payment date to qualify for a cash discount in the Cash discount date field. 2. Select the location on the 1099 form where you want to print the 1099 amount in the 1099 box list. The posting profile defaults from the setup for the vendor. The discount date is calculated based on the cash discount setup. Enter the number or name of the document that is the basis of the transaction in the Document field. 6. 5.General Use this form to enter and post basic information about vendor invoices as soon as they arrive. The cash discount information is set up on the Cash discount tab.chart of accounts form. When you make a payment before the cash discount date.Cash Discount Perform the following steps to view or edit cash discount information for the journal vouchers: 1.Chapter 10: Accounts Payable Daily Procedures Procedure: Register Invoice Lines . 4. Enter the cash discount amount in the Discount amount field. but you can change it manually.

Procedure: Delete an Invoice To delete an unposted journal line. In an invoice approval journal. Specify the state for the delivery in the State field.Financials I in Microsoft Dynamics® AX 2012 8. highlight the line and either click the Delete button from the Toolbar or click the Functions button and select Delete journal lines. If you designate financial dimensions in the Journal form.Dimension On the Financial dimensions button. click the Post button to post the invoice journal. 9. 10-12 . • Post: post the selected lines. they default on each transaction. Procedure: Post an Invoice After you enter all the invoice journal lines. Override any of those defaults now or enter financial dimensions if no defaults are set up in the Journal form. GENERAL TAB Procedure: Register Invoice Lines . Enter the amount to report in the 1099 form in the 1099 state amount field. no lines are posted and an error message is displayed. you can transfer them from the invoice pool into the invoice approval journal. you transfer them to an invoice pool. If an error exists. set up the financial dimensions for the invoice register transaction. The following two posting options are available: • Post and transfer: post lines that do not have errors and transfer lines that have errors to a new journal. FIGURE 10. When you post the journal lines.6 JOURNAL VOUCHER FORM.

Invoice Approval Journal After you post the lines of the invoice register. Scenario April. registers an incoming invoice in the invoice register and posts the registration. • The invoice pool holds invoices originating from a purchase order that originate from an invoice register. the Accounts Payable Clerk. April registers and posts the approval in the invoice approval journal. The invoice is now ready to be paid. Phyllis approves the invoice with a signature or a stamp and returns the invoice to April. 10-13 . Click the Purchase order button to select and approve the purchase orders. and then click Invoice pool. April sends the physical invoice to Phyllis.Chapter 10: Accounts Payable Daily Procedures HINT: If the invoice register is not being used or if most of the incoming invoices do not require approval. enter the vendor invoices directly into an invoice journal. click Inquiries. for approval. Invoice Pool To view the postings in the invoice pool click Accounts Payable. The following applies to the invoice pools: • The invoice pool displays the relevant information about the invoices awaiting approval. the postings display in the invoice pool. the Accounting Manager.

you may want to run this report by employee. Enter all the other relevant information. Perform the following steps to print the Invoices not approved report: 1. click Invoices. 4.Financials I in Microsoft Dynamics® AX 2012 NOTE: All tabs and fields in the Invoice pool form are discussed in the Invoice Register lesson. The report reminds them to approve the invoices. Click Accounts payable. Click Accounts Payable. and then click Invoice approval journal. FIGURE 10.7 INVOICE POOL FORM Procedure: Print Invoices Not Approved The Invoices not approved report displays a list of invoices awaiting approval. Refer to the Invoice Register lesson to view the field explanations. In the query window. 6. 5. and then give the report to the relevant people. you can specify: o Vendor account o Employee o Due date 3. Click the Lines button to create line records. and then click Invoices not approved. 3. 10-14 . Click New to create a record. 2. Select the approval journal in the Name list. click Reports. click Journals. 2. Click the OK button. Select the line and click Find vouchers. click Status. For example. Procedure: Approve an Invoice Register Journal Perform the following steps to create an approval journal: 1.

Click the Post button. 3. and then click Validate voucher only to verify that the invoice in the upper pane is ready for posting. 7. Select the next invoice. The following options are available: o Report as ready – specify that the selected journal is ready for approval. click Journals. Enter all the other relevant information. and then click Post. o Reject – reject the selected journal. Procedure: Approve an Invoice Register Journal After the vouchers have been approved. 8. Click Accounts Payable. select the invoice register entries that need approval and click OK to save the entries and transfer to the approval journal.Chapter 10: Accounts Payable Daily Procedures 7. 2. Click the Validate button. o Approve – approve the selected journal. and then click Validate when the account information is complete for all the invoices. In the Find vouchers form. HINT: Instead of validating each line. Select the approval journal in the Name list. 9. 10-15 . and then click Invoice approval journal. Click New to create a record. click Invoices. You can now settle the posted invoices in the Payment journal. 6. and enter the account information. 4. 8. Refer to the Invoice Register lesson to view the field explanations. Repeat steps 1-3 until you have entered and validated account information for all the invoices. click the Validate button. Click the Lines button. NOTE: The Approval button is available only if the Active check box is selected in the Journal names form. Perform the following steps to continue to process the invoice register: 1. Click the Approval button to create an approval record. 5.

approve the invoices by using the invoice journal on Tuesday and Wednesday. and invoice approval journal to complete the workflow outlined in the scenario. 2. 10-16 . the Accounts Payable Clerk at Contoso.Financials I in Microsoft Dynamics® AX 2012 Lab 10. invoice pool.Register an Invoice Scenario April. The invoice register and the invoice approval journal are in journals. The approver must be specified in the Approved by field in the invoice register.1 . 3. creates invoice registers and approves invoices. Apply the following details: Field Value Invoice register Inv_R Vendor account 3002 Invoice number INV123 Transaction text Invoice Credit 150 Approved by BKD Terms of payment D30 Cash discount 7D4 Invoice approval Inv_A Invoice approval description Invoice approval Invoice offset account 601500 Challenge Yourself! Use the invoice register. view the invoices to be approved in the invoice pool on Tuesday. April's typical workflow is to create invoice registers on Monday. and if there are enough to process. The invoice pool is in inquiry. Need a Little Help? 1.

and then click Post. Click Accounts payable. 2. and then click N030. In the Description field. 4. Perform the following steps to create and post an invoice approval journal: 1. type INV123. Click the New button to create a new invoice approval journal. and then click 4%D10. click Inquiries. Click the voucher for INV123. In the Invoice field. 11. Click the Name arrow. Close the form. and then click Invoice register. click Journals. click Journals. 3. Click the Approved by arrow. Click the Lines button. type 150. click Brooke Drynan. 12. 10. 9. 3. Click Accounts payable. and then click APInvApp. click Invoices.Chapter 10: Accounts Payable Daily Procedures Step by Step Perform the following steps to pre-register the invoice and transfer it to an invoice pool: 1. 8. click Invoices. and then click APInvReg. Click the Account arrow. Click Accounts payable. and then click Invoice approval journal. 7. 10-17 . 5. 2. 6. Click the Lines button. enter Invoice. Perform the following steps to view the invoice in the invoice pool: 1. 13. 7. Click the Terms of payment arrow. In the Credit field. 3. Close the Infolog. Click the Cash discount arrow. and then click 3002. Close the remaining forms. 14. 4. Click New to create a new register. The voucher appears in the List of selected vouchers area. Click the Select button. 2. and then click Invoice pool. 5. and then Select. Click the Post button. View the line for the invoice previously created. 6. Click the Find vouchers button. Click the Name arrow.

Click Close to close the Infolog. Click the OK button. and then click Post. 12. click the Account arrow.Financials I in Microsoft Dynamics® AX 2012 8. 10-18 . 10. In the Journal voucher form. Close all the forms. 9. 11. Click the Post button. and then click 601500.

The lines go directly into the invoice pool. the Accounts Payable Clerk at Contoso. • To post the lines. • Use the invoice journal to transfer the invoices for approval and posting. uses the Function button to find the invoice from the invoice pool. unapproved invoices.Chapter 10: Accounts Payable Daily Procedures Vendor Invoice Pool Excluding Posting Details Invoice pools excluding posting have the following characteristics: • The invoice register excluding posting is another kind of journal available in the Accounts Payable module. they are registered in the system. • If you activate the invoice pool by accessing the invoice pool exclude posting item in the Accounts Payable menu. April creates a new invoice journal. Select Invoice pool and accept the individual invoices in the pool after you approve them. for approval. create a new invoice journal. • Using the invoice journal represents another procedure for handling incoming invoices. Phyllis approves the invoice with a signature or a stamp and returns the invoice to April. registers the incoming invoice in the journal invoice pool excluding posting. and posts the journal. The difference is that you cannot post the lines. Although the invoices are unposted. and then click Functions. the Accounting Manager. Now the invoice is ready to be paid. 10-19 . April sends the invoice to Phyllis. although it is similar to the invoice register with posting. the invoices shown on the window are registered. Scenario April.

After the invoice posts. Click the Lines button to open the Journal voucher form to transfer the invoice pool excluding posting record for approval and posting. 6. To post the transactions click the Post button. click the Functions button. Refer to the topic Procedure: Approve an Invoice Register Journal for more information. FIGURE 10. click Invoices. and then click Post. click Journals. 2. The fields are the same as described in the invoice register lesson. posting form. posting. and then click Vendor invoice pool excluding posting journal details. and then click Invoice pool excl. Click Accounts payable.8 INVOICE POOL EXCLUDING POSTING DETAILS FORM Procedure: Approve and Post an Invoice Excluding Posting Perform the following steps to approve and post the invoice excluding posting journal: 1. 4. 2. click Invoice journal to open the Journal form. click Invoices. To find the invoice from the invoice pool excluding posting form. 10-20 .Financials I in Microsoft Dynamics® AX 2012 Procedure: Create Vendor Invoice Pool Excluding Posting Details Perform the following steps to create an invoice without posting it: 1. 3. Click New to create a new journal. 5. Click Accounts payable. it is ready to be paid. and then click the Accept button to transfer the invoices to the Journal voucher form. Select one or more invoices in the Invoice pool excl. click Journals. Enter the information necessary to create an invoice excluding posting.

3. has asked April. Need a Little Help? 1. click Journals. 4. Phyllis wants to review April's work. 9. and then click Select. 10-21 . 7. type INV777. Click the Approved by arrow. In the Invoice field. Click the History tab. Step by Step 1. and then click invoice. Click the Vendor account arrow. type today’s date. Click Accounts payable. 2. posting form. 6. 10. In the Date field.2 . and then click Vendor invoice pool excluding posting details. to enter invoices to the invoice pool excluding posting. Accounting Manager at Contoso. the Accounts Payable Clerk. Apply the following details: Field Value Vendor account 3002 Description Invoice Credit 1000 Invoice number INV777 Invoice journal name APInv Approver Phyllis Offset account 601500 Challenge Yourself! Help April enter the invoices into the invoice pool excluding posting. Click File . In the Credit field. and then click 3002. Close the form. click Phyllis Harris. Click the Description arrow. Designate an approver from the Invoice pool excl. click Invoices. 5. 2.New to create a new journal. type 1000. Then help Phyllis review and approve them in an invoice journal.Chapter 10: Accounts Payable Daily Procedures Lab 10.Invoice Pool Excluding Posting Scenario Phyllis. 8. Approve the invoice from the invoice journal.

and then click USA OPER. Click the Post button. and then click Invoice pool excl. Click Lines. Click Accounts payable. 17. and then click Post. Click the line for INV777. 16. 20. 14. and then click Invoice journal. 22. 23. Click New to create a new journal. click Invoices. Click the Functions button. type APInv. 10-22 . Click the Offset account arrow. 18. 24. 15. Click Close to close the Infolog. 21. Close all the forms.Financials I in Microsoft Dynamics® AX 2012 11. Click Accept. In the Name field. Click the General tab and select Bank in the Offset account type field. 12. 13. Select the Approved check box. click Journals. posting. Click the Invoice tab. 19.

the user can post. • By default. The process is the same regardless of which window you use. Click Accounts payable. Enter any other relevant information. • The invoice journal is designed for users to enter the invoices they receive from vendors without using the approval journal. Procedure: Create an Invoice Journal Perform the following steps to create an invoice journal: 1. Procedure: Validate a Journal After you enter transactions. 2. 4. enters the invoice directly into a new invoice journal. Refer to the Invoice Register lesson for field explanations. you must post them to update the vendor's balance in the subsidiary ledger and the general ledger account balances. the user who is logged in and who enters the journal lines approves the invoices. Now the invoice is ready to be paid. click the Lines button. the Accounts Payable Clerk at Contoso. 3. Refer to the Invoice Register lesson for field explanations. 2.Chapter 10: Accounts Payable Daily Procedures Invoice Journal A third option for processing incoming invoices is to enter them directly into the invoice journal. Enter the other relevant information. Select a journal name in the Name list. click Journals. From the Journal form. Click New to create a new invoice journal. You can validate and post from two forms. and then approves and posts the journal. Procedure: Create Invoice Journal Lines Perform the following steps to add invoice journal lines: 1. click Invoices. and then click Invoice journal. • Journal form • Journal voucher form 10-23 . Scenario April. As soon as the user enters the incoming invoices.

Financials I in Microsoft Dynamics® AX 2012 Validate the Journal before it posts. To validate a journal. it is ready to be posted. and then click either Validate to validate all the journals or Validate voucher only to validate only the selected line.Posts all correct vouchers in the journal and transfers the lines with errors to a separate journal. click the Post button from either of the previous windows. If a journal does not validate correctly. click the Validate button from either of the forms. To post the journal. There are two options to select from: 10-24 • Post . For example. If Then The journal is correct A window appears with the message: Journal is OK. The journal is incorrect A window appears with details of what is incorrect. it cannot be posted. The validation process ensures that the journal is correct. the system verifies that all mandatory fields have information entered and that the journal balances.Posts the journal (provided it has no errors). . Procedure: Post a Journal After you validate the journal. • Post and transfer .

In the Credit field. The following details apply: Field Value Invoice journal name APInv Vendor account 3002 Invoice number INV879 Credit 1300 Offset account type Bank Offset account USA OPER Challenge Yourself! Help April enter. 5. 3.Invoice Journal Scenario April. Click the Account arrow. and then click Bank. to enter an invoice into an invoice journal. Click the Lines button. In the Credit field. Click the Validate button. Press CTRL+N or click the New button to create a new journal. has been asked by Phyllis. and then click USA OPER. validate. 9. and then click 3002. and then post it. Use the account 3002. Validate and Post the journal. 3. Click the Offset account type arrow. Click Accounts payable. and post a journal. the Accounting Manager. click Journals. 6.3 . 5. In the Invoice field. type 1300. 4. validate the journal. Click the Name arrow. Open Accounts payable. and then click APInv. and then click Invoice journal. type INV879. Click the Offset account arrow. In the Invoice field. and then click Validate. 2. type INV879. 2.Chapter 10: Accounts Payable Daily Procedures Lab 10. type 1300. Step by Step 1. 10. 10-25 . and create a new journal. Need a Little Help? 1. 8. the Accounts Payable Clerk at Contoso. 7. click Invoices. 4.

12. Click the Post button. 14. Click Close to close the Infolog. and then click Post.Financials I in Microsoft Dynamics® AX 2012 11. Close all forms. 10-26 Click Close to close the Infolog. 13. .

10-27 . the Accounting Manager.Administration 150 USD Accounts Payable Credit amount 600 USD April chooses to save this entry as a Voucher template by percent. Scenario Phyllis. The voucher debits Interest Expense and credits Interest Payable for 350 U.00 U. dollars (USD) each. The next time April receives the telephone bill she must retrieve the Voucher template and enter only the amount of the telephone bill. You can use voucher templates with an accounts payable invoice journal. Phyllis decides to save the voucher as a voucher template by amount. This will hold the value assigned to each account as a percentage of the total.Sales 150 USD Telephone Expense . the Accounts Payable Coordinator.Production 150 USD Telephone Expense . she will assign each department 25 percent. The next time Phyllis records an interest expense. The following table is an example of the distributions for an invoice in the amount of 600. To reduce future data entry time. April. receives a telephone bill that she must enter. is entering a voucher to record interest expense on a fixed-rate long-term note.Chapter 10: Accounts Payable Daily Procedures Voucher Template Use a voucher template as the basis of future vouchers. she selects the Load voucher template action and chooses the interest entry. At Contoso the telephone expenses are distributed across all departments equally. April enters the voucher with the appropriate departments.S. The distributions will be created automatically based on the original percentage.Accounting 150 USD Telephone Expense . dollars (USD). In this case.S. Account Debit amount Telephone Expense . The original ledger accounts and amounts load into the form. Phyllis must record this voucher for the same amount each month.

Click Accounts payable. 2. o Amount . click Invoices. select the correct template. 6.Uses the original voucher total and line amounts. enter the Amount of the new transaction.Uses the percentage of the original voucher total represented by each voucher line. 4.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Voucher Template Perform the following steps to create a voucher template: 1. 4. When you create a new voucher based on a percenttype voucher template. and then click Invoice journal. Perform the following steps to use a voucher template to create a new accounts payable invoice journal: 1. click Journals. Refer to the Invoice Journal lesson for more field information. From the Template type field. 5. Click the Functions button. 5. 10-28 . Enter a transaction by creating a new record or selecting and existing record and then click the Lines button. If a percent voucher template is selected. Click the Lines button. 2. the percentage calculated for each new line is applied automatically to the value in the Voucher amounts dialog. Click New to create a new journal. The percentage determines the amount for the new voucher line. 3. 7. and then click Save voucher template. Click Accounts payable. In the Voucher templates form. select one of the following: o Percent . 3. Click OK. and then click Invoice journal. Click the Functions button. Procedure: Use a Voucher Template After you create a voucher template. click Invoices. Click OK. click Journals. and then click Select voucher template.

• The payment proposal function searches for payment lines that either are due or have a maximum date for receiving a cash discount. Payment journals have the following characteristics: • You can create payments through the payment journal. use the Generate payments command on the Functions button to generate the payment. and post the invoice. NOTE: To learn more about all the tabs and fields on the Journal window. • The payment proposal function verifies vendor transactions that are open and approved. This is the selected method of payment and the setup of controls if the system should. review the Invoice Register lesson. • Use the payment journal to enter and post payments. o o • Click Payment proposal. for example. Make payments and enter them according to the terms of payment established with the vendors. 10-29 . In the payment journal there are several ways to create payment lines: o o o • There are two methods for selecting the invoices to pay through the payment journal. The Payment proposal option searches for invoice lines that meet selected search criteria. print checks or create a payment file. Click Functions and select Settlement. Payment Proposal You must post payments made to vendors to ensure the Accounts Payable subsidiary ledger matches the General Ledger.Chapter 10: Accounts Payable Daily Procedures Payment Journals After you register. The system includes only transactions with either a due date or a cash discount date in the search. edit them in the payment journal. As soon as the payment lines generate. Create a journal line and enter the payment details manually. Use the Settlements option to select the specific invoice lines to pay. it is time to pay the invoice. After you create all the payment lines. approve.

Refer to the Invoice Register lesson for more information about the fields. and then click Payment journal. and then click Create payment proposal. 2. 4.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Payment Proposal Perform the following steps to create a payment proposal: 1. Click the Lines button. Enter the additional information as necessary.transfers the set of vendor payments that fulfills the criteria for obtaining a cash discount 10-30 . Select from the following options: o Per due date . Click the Payment proposal button. Select the kind of payment proposal to create in the Proposal type field.Options Perform the following steps to designate options for vendor payment proposal: 1. Click Accounts payable. FIGURE 10. click Journals.9 VENDOR PAYMENT PROPOSAL FORM Procedure: Create a Payment Proposal . Click New to create a new journal.transfers the set of vendor payments for due invoices o By cash discount .transfers the set of vendor payments that fulfills the criteria for obtaining a cash discount o Due date and cash discount . click Payments. 3.

Select the Delete negative payments check box to delete payments. Procedure: Create a Payment Proposal . select the lines. and enter the values to be implemented. click the Multiple change button. 8. put the pointer on the line and click the Delete button. 5. • Review each proposal line and the associated open transactions before settlement. 7. 6. To change certain fields on several lines in one operation.Chapter 10: Accounts Payable Daily Procedures 2. • When you select a payment proposal line. delete an open invoice from the open transactions lines if you are unsatisfied with the items and you do not want to pay the invoice. 10-31 . 4. 9. 3. For example.Payment Proposal Lines After you select options and then click the OK button. the Vendor payment proposal form opens and will display the following information for you to verify: • Payment proposal lines that meet the criteria appear in the lower Payment proposal pane. Select the Generate check box to generate a payment journal. 10. Add other criteria as appropriate in the other fields. and after that. Enter the total amount to selected for payment in the Amount limit field. Enter the maximum lines to pay in the Transaction limit field. Enter the period for the vendor transactions to include in the payment proposal in the From date and To date fields. To delete a line. transfers vendor transactions proposed after the due date Click the Select button to select specific vendors or a range of vendors. Enter the date the payment is due in the Total payment date field. and then click the OK button. if the amount to be paid is negative. view the open invoice transactions that contribute to the payment proposal line in the upper Open transactions pane. Enter the lowest date for the payment in the Minimum date field.

To view the balances. 2. and then click Balance control. and Post Follow these steps after you are satisfied with the results in the Vendor payment proposal form and are ready to transfer the proposal lines to the payment journal. Click the Post button. When you move between payment suggestions. 10-32 . click the Inquiries button. Validate.10 VENDOR PAYMENT PROPOSAL FORM Procedure: Create a Payment Proposal . Click the Validate button to validate the payment lines. continue to edit the lines in the payment journal if necessary. FIGURE 10. When this option is selected the Open transactions pane only shows transactions related to the current payment suggestion. In the Payment journal lines form.Transfer. 4. 3. These include payments that have lines with statuses of Rejected or Approved. 5. the system updates open transactions. Generate Payment Transfers Use the Payment transfer form to manage payments with a status of Sent that are not posted. Click Accounts payable > Journals > Payments > Payment transfer. and then click Post to generate the payments. 1. Verify the balances of company bank accounts to ensure you can make the payments.Financials I in Microsoft Dynamics® AX 2012 HINT: Select the Link check box in the middle of the form to synchronize the two parts of the form. After you inspect all the proposed lines click the Transfer button to move the lines to the payment journal.

Enter the additional information as necessary. Click Accounts payable.Open Transaction Editing Perform the following steps to mark invoices for settlement: 1. Click New to create a new journal. 3. Perform the following steps to run a payment proposal for a marked settlement: 1. 5. 4. NOTE: The Vendor account and Currency fields must contain values to select the Settlements option. 3. 2. NOTE: A red mark displays in the Is marked field if a transaction already is marked for settlement. Refer to the Invoice Register lesson for more information about the fields.Chapter 10: Accounts Payable Daily Procedures Procedure: Mark Settlements Use the settlement option as a second option for selecting invoice lines to pay. and then click Payment journal. click Payments. Select the Payment proposal check box. 2. click Journals. Click the Functions button. Click the Lines button. 10-33 . Select a vendor account in the Account field. the Vendor payment proposal form opens and shows the payment proposal and the open transactions. Close the form after you select the invoices for payment. and then click Settlement to open the Settle open transaction form. Procedure: Mark Settlements . When you close the Settle open transaction form. Select one or several invoices for settlement. From the Settle open transaction form select the Mark check box to transfer the invoice to the Vendor payment proposal form.

Perform the following steps to create a manual payment journal: 1.) o Enter an appropriate amount in the Debit or Credit field. Enter the additional information as necessary. o Select an Offset Account Type in the Offset account type list.Financials I in Microsoft Dynamics® AX 2012 Procedure: Mark Settlements . continue to edit the lines in the payment journal if necessary. Click the Transfer button to move the proposal lines to the payment journal after you inspect all the proposed lines. Make entries in the following fields: o Account . and Post Follow these steps after you are satisfied with the results in the Vendor payment proposal form and are ready to transfer the proposal lines to the payment journal: 1.Transfer. Click Accounts payable. and then enter information about the next voucher. o Select an offset account in the Offset Account list. Enter values in the relevant fields in the first line on the Overview tab of the Journal voucher form. and then click Post to generate the payments. and then click Payment journal. 2. Verify the balances of company bank accounts to ensure that you can make the payments. click Payments. 2. but it eases the entry of lines in the journal because the pointer automatically goes to the appropriate Debit or Credit field. Procedure: Create a Manual Payment Journal You can create a payment journal by entering the invoice information. Click New to create a new journal. click the Inquiries button. click Journals. Click the Validate button to validate the payment lines. Click the Lines button. 3. and then click Balance control. 4.select a main account o Description (This is optional. 3. Validate. 4. In the Payment journal lines form. 5. Some fields may be entered automatically with values from fields in the Journal form. To view the balances. Refer to the Invoice Register lesson for more information about the fields. 10-34 . Click the Post button. o Press the down arrow key on your keyboard to create a new line.

From the Journal voucher form click the Validate button after you enter all the voucher lines. Click the Post button. and then click Post. Procedure: Generate Payments After you create the payment journal. and then click Balance control to ensure that the bank account has funds available to pay the vendor. The procedure on how to generate payments is the same for the following: • Payment proposals • Settlements • Manual payment journals 10-35 . Post the lines in the Journal voucher form or in the Journal form. 2. This verifies that all the lines or the selected lines are ready for posting. it is ready to be paid.Chapter 10: Accounts Payable Daily Procedures Procedure: Create a Manual Payment Journal . and then click Validate or Validate voucher only. NOTE: Click the Inquiries button.Validate and Post Perform the following steps to check the entry and post the payment: 1.

FIGURE 10. From the Journal voucher form. 3. 3. For example. and then click Generate payments.Print Checks Perform the following steps to print checks: 1. Select the method of payment for the invoice lines you are paying in the Method of payment list. 2. click the Dialog button to pay with checks. 1. 2.11 GENERATE PAYMENTS FORM Procedure: Generate Payments . click the Functions button. Click OK to print the checks. 10-36 . Select the bank account from which to withdraw the payment in the Bank account list. Or. select the method of payment for checks. select an export format in the Export format list. if you are making a check payment. From the Generate payments form. Fill in the fields and then click the Document button to print the check.Financials I in Microsoft Dynamics® AX 2012 Perform the following steps to generate a payment.

you can print a copy of the payment as a non-negotiable check. 3. Print a copy of a payment from payment history by following these steps: 1. The Journal voucher form opens. Select a payment or payments. exchanged. HINT: Before checks print. On the Action Pane. 2. and then click Lines. ensure that the printer has the correct checks ready to print. select the Invoice tab. Click Accounts payable > Journals > Promissory notes > Draw promissory note journal. Print Payments as Non . the journal lines cannot be deleted unless the checks are voided.Chapter 10: Accounts Payable Daily Procedures NOTE: To print checks. NOTE: To void checks after they are printed.Vendor payment journal (form). run the create checks process in bank management. 2. before you run the generate payments process. and then click Print > Payment copy. and then click Print payment copy. A non-negotiable check is a document that cannot be bought. For more information. 10-37 . sold. CAUTION: As soon as checks are printed. Click Accounts payable > Common > Vendors > All vendors.Negotiable Checks After a payment has been generated and posted to the payment journal. Select a journal or click New to create a new line. click Payment status and select Reject. Print a copy of a payment from a promissory note journal by following these steps: 1. see Methods of payment . NOTE: You can print a copy of a payment only if its method of payment allows for payment copies and the offset account type is Bank. or transferred.vendors (form) and Journal voucher . and then click the Payment history button. Select a payment or payments. For information about this refer to the Bank Management course.

Click Accounts payable > Common > Vendors > All vendors. or indefinitely. the status is set to Sent automatically. click On hold. In the Vendor hold release date field. Procedure: Placing Payments on Hold You can put Accounts payable payments on hold until a specified date. 5. View the status of the payment in the Status field in the Payment journal lines form. You can hold all payments for a specific vendor or invoice. Select a vendor account. You might want to hold all payments for a vendor until a dispute is resolved. If you do not enter a date. select Payment in the Vendor hold field. enter the date when the payment hold should end. On the Action Pane. Click Post to update the vendor account balance in the subsidiary ledger and General Ledger account balances.Post Perform the following steps to post the payment: 1. 2. the payment hold lasts indefinitely. 3. 1. and payments should again be made to the vendor. 10-38 .Financials I in Microsoft Dynamics® AX 2012 Procedure: Generate Payments . After the payment generates. or you might want to hold the payment for an invoice until funds become available. In the form that is displayed. 2. 4.

April. has returned from the annual Microsoft conference called Convergence.Chapter 10: Accounts Payable Daily Procedures Lab 10. Post the journal. Apply the following details: Airfare for trip to Convergence Option Value Date 4/1/2011 Invoice number 1000 Amount 550 USD Approver Brooke Drynan Hotel for trip to Convergence Option Value Date 4/1/2011 Invoice number 1001 Amount 600 USD Approver Brooke Drynan Challenge Yourself! Help April with the following tasks: 1. Enter the expense accounts to balance each line item: o For the Airfare line. the Accounts Payable Clerk at Contoso. 5. 2.4 . the CFO at Contoso. 10-39 . Generate the payment(s) for this invoice. 7. She has submitted her expenses using an outside travel agency called Margie's Travel. Make the appropriate edits and validate the journal again. must register and post the invoices. Post the approvals for these transactions in one journal. validate and post this journal. After you complete the required steps. use account 601500 4. She must then validate and post each journal. use account 601500 o For the Hotel line. Register the invoices. 6.Payment Journals Scenario Sara. 3. each in a separate journal.

Click the Post button. Close the Journal voucher form. 10. 7. 8. In the Description field enter Airfare for Convergence. Click Accounts payable. click Journals. 8. Click the Approved by arrow. Click the Lines button. Click New to create a new journal. Enter 550 in the Credit field. and then click Post. 3. click Brooke Drynan and then click the Select button. In the Account field select 8005 . Click the Post button. In the Infolog click the Close button. 14. Click the Validate button. 4.Margie's Travel. In the Description field enter Hotel for Convergence. Hotel Invoice: 1. Enter 600 in the Credit field. 9. 5. In the Method of payment field select USA_EL. and then click Invoice register. 16. 3. Click the Approved by arrow. 12. Enter 4/1/11 for the date. In the Account field select 8005 . 10-40 . and then click Validate. 6. Click the Name arrow. Click the Validate button. 6. click Journals. 11. click Invoices. Click the Lines button. 12. In the Infolog click the Close button. use the Invoice Register. 14. Airfare Invoice: 1. Enter 4/1/11 for the date. In the Invoice field enter 1000. 13. 5. click Invoices. click Brooke Drynan and then click the Select button. To register the invoice. In the Invoice field enter 1001. 13. In the Method of payment field select USA_EL. Click the Name arrow. Click Accounts payable. In the Infolog click the Close button. 7. 10. and then click Validate. Click New to create a new journal. 15. and then click APInvReg. 9. and then click Invoice register. 4. 2. 11.Margie's Travel. and then click Post. and then click APInvReg. 2.Financials I in Microsoft Dynamics® AX 2012 Step by Step Perform the following steps to enter invoices in Accounts Payable.

Click the Find vouchers button. 16. 5. click Invoices. Enter 8005 (Margie's Travel) in the Criteria field for the Vendor account. Select the Airfare line and click Select. click Payments. Click OK. Click the Lines button. Perform the following steps to make payments for the invoices: 1. 15. Click the Functions button. click the Transfer button. 6. Perform the following steps to use the invoice approval journal. In the Infolog click the Close button. 8. 14. 4. 17. 2. 13. 13. Click the Select button. Enter 5/15/11 in the To Date field. 12. click Journals. 11. Select the Hotel line and click Select. 12. Enter 601500 in the Account field. Click the Find vouchers button. In the Bank account field select USA OPER 10-41 . 6. Click Accounts payable. 5. and then click Create Payment Proposal. In the Proposal type list. 3. Close the forms. Click OK. and then click Validate. 10. Click the Name arrow. In the Infolog click the Close button. 15. and then click APPay. Enter 601500 in the Account field.Chapter 10: Accounts Payable Daily Procedures 15. select Due date & cash discount. Click New to create a new journal. 4. 16. 10. and then click Payment journal. and then click Validate. and then click Invoice approval journal. Click Accounts payable. In the Vendor Payment Proposal form. and then click OK. Click the Post button. Close the Journal voucher form. Click the Validate button. and then click APInvApp. Click the Name arrow. Then click OK. Select the Method of Payment of USAUSD_CHK. click Journals. 1. 9. 11. 14. 8. Click the Lines button. In the Infolog click the Close button. 9. 2. and then click Post. Click the Payment proposal button. 7. Then click OK. 7. In the Infolog click the Close button. Click the Validate button. Click New to create a new journal. 3. and then click Generate payments.

Click OK.Financials I in Microsoft Dynamics® AX 2012 16. Close all forms. You will receive a print stop error if printers are not set up properly. Clear and Close the Infolog form. 17. 10-42 . 18.

4. If required. to process the prepayment. Alicia must create the purchase order and submit a request to April. 3.Chapter 10: Accounts Payable Daily Procedures Prepayments Advance payments of expenses such as taxes or insurance can be used as prepayments. In addition. Type the Quantity and Unit price. The sales representative at the vendor has communicated to Alicia that a 10 percent prepayment is required before the order can be processed. follow these steps: 1. 3. parameters allow for the posting of prepayments to be directed to a different posting profile. In the Lines tab. the Accounts Payable Coordinator. Set up the prepayment. Create the purchase order. the Purchasing Agent. Procedure: Set Up the Prepayment To create a purchase order with a request for a prepayment. Settle the prepayment against the final invoice Scenario: Prepaid Purchase Order Alicia. Make a payment. Select the Vendor account. Post the prepayment. The system functionality can automate a process for making a prepayment for a purchase order. Prepayment Process Five basic steps involved with processing a prepayment for a purchase order include the following: 1. 5. she must post the prepayment and print the check to the vendor. 5. has created a purchase order for 100 televisions from a local television supplier. Open Procurement and sourcing > Common > Purchase orders > All purchase orders. 6. Click New > Purchase order to create a new purchase order. 4. She must now settle the invoice from the purchase order against the prepayment that was made previously. Once April has received the request. click Yes to transfer the vendor information to the purchase order. 2. April receives the invoice for the goods. 2. Once the televisions are delivered. This functionality allows the prepayment to be settled against the purchase order to help prevent over or double payment. 7. 10-43 . select the desired Item number. Click OK to create the order.

Financials I in Microsoft Dynamics® AX 2012
8. Click the Purchase tab on the action pane.
9. Click Prepay > Prepayment to open the Create or edit a
prepayment form.
10. Optionally, type a Description for the prepayment.
11. Select an option for Fixed or Percent based prepayment.
12. In the Value field type the amount.
o If Fixed is selected for the type, the Value field represents a flat
amount in the currency of the purchase order.
o If Percent is selected for the type, the Value field represents a
percentage of the purchase order total.
13. Select the desired Prepayment category ID.
14. Click Save.
15. Click Generate > Confirm to confirm the purchase order.

FIGURE 10.12 CREATE PURCHASE ORDERS FORM

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Chapter 10: Accounts Payable Daily Procedures
Procedure: Post the Prepayment Invoice
To post a prepayment invoice, follow these steps:
1. Verify a posting account is set up in the Posting form. Open
Inventory and warehouse management > Setup > Posting >
Posting > Purchase order tab. Click on the Prepayment radio
button to set up a Main account for prepayments.
2. Open Procurement and sourcing > Common > Purchase order >
All purchase orders.
3. Search for the desired purchase order.
4. Click the Invoice tab.
5. Click Prepayment invoice.
6. Enter a unique invoice number into Number field.
7. Verify the invoice information, ensuring that the Prepayment check
box is selected.
8. Click Post to post the transaction
9. Close the Purchase order details form
A new transaction is posted to the vendor account for the amount of the
prepayment.

Procedure: Make a Payment
To make a payment for the prepayment invoice, follow these steps.
1. Open Accounts payable > Journals > Payment > Payment
journal.
2. Click New to create a new journal header.
3. Select a journal name from the Name field.
4. Enter a brief Description.
5. Click Lines.
6. Select the desired vendor in the Account field.
7. Click Functions > Settlement.
8. Select the desired prepayment invoice to be paid.
9. Close the Open transaction editing form.
10. Click Post > Post the vendor payments journal.
11. Close the Journal voucher form.
12. Close the Payment journal form.

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Financials I in Microsoft Dynamics® AX 2012
Procedure: Record Final Invoice and Application of the
Prepayment
To settle the payment, follow these steps:
1. Open Accounts payable > Common > Vendor invoice > Open
vendor invoices.
2. Click New > Invoice > Vendor invoice.
3. Select the Invoice account.
4. Enter the Invoice number.
5. Enter additional invoice information as necessary.
6. Click Apply prepayment.
7. Click Post to finalize and post the invoice with the settlement.

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Chapter 10: Accounts Payable Daily Procedures

Lab 10.5 - Setup and Track a Prepayment
This lab provides practice for creating and posting a vendor prepayment.
Scenario
Alicia, the Purchasing Agent, needs to create a purchase order for 100 LCD
Monitors, item number 10003, for a unit price of 2,565.00 U.S. Dollars (USD).
The sales representative at the vendor has communicated to Alicia that a 10
percent prepayment is required before the order can be processed.
Alicia must create the purchase order and submit a request to April, the Accounts
Payable Coordinator to process the prepayment. Once April has received the
request, she must post the prepayment and print the check to the vendor.
Once the televisions are delivered, April receives the invoice for the goods. She
must now settle the invoice from the purchase order against the prepayment that
was made previously.

Challenge Yourself!
Using the information provided, create a new purchase order and setup an
prepayment for 10 percent of the purchase order total.
Next, post the prepayment invoice for the purchase order created in the previous
step.
Process and post a payment journal for the prepayment vendor invoice.

Need a Little Help?
1.
2.
3.
4.
5.

Create a new purchase order for Vendor 1003.
Add Item 10003 to the order.
Setup a prepayment for 10 percent of the purchase order total.
Post the vendor invoice for the prepayment.
Create and post a vendor payment, ensuring that the vendor
prepayment is marked for settlement.

Step by Step
To create a purchase order with a request for a prepayment, follow these steps:
1. Open Procurement and sourcing > Common > Purchase orders >
All purchase orders.
2. Click New > Purchase order to create a new purchase order.
3. Select 1002 in the Vendor account field.
4. Click Yes to transfer the vendor information to the purchase order.
5. Click OK to create the order.

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Financials I in Microsoft Dynamics® AX 2012
6. In the Purchase order lines tab, select 10003 in the Item number
field.
7. Enter "100" into the Quantity field and "2,565.00" into the Unit
price field.
8. Click the Purchase tab on the action pane.
9. Click Prepayment to open the Create or edit a prepayment form.
10. Type a Description for the prepayment.
11. Select Percent based prepayment.
12. In the Value field enter "10.00".
13. Select Audio as the Prepayment category ID.
14. Click Save.
15. Click Generate > Confirm to confirm the purchase order.
16. Close the Infolog form if you receive this message.
17. Click the Invoice tab, and click Prepayment invoice action to open
the Vendor invoice form.
18. Enter a unique invoice number into Number field.
19. Verify the invoice information, ensuring that the Prepayment check
box is selected.
20. Close the Vendor invoice form.
21. Close the Purchase order form.
To post a prepayment invoice, follow these steps:
1. Verify a posting account is set up in the Posting form. Open
Inventory and warehouse management > Setup > Posting >
Posting > Purchase order tab. Click on the Prepayment radio
button to set up a Main account for prepayments.
2. Click the Add button and enter All in the Item code and Account
code fields.
3. Enter 110110 in the Main account field.
4. Close the Posting form.
5. Open Procurement and sourcing > Common > Purchase orders >
All purchase orders.
6. Search and open the purchase order created in the Create a
Purchase Order with a Prepayment step.
7. Click the Invoice tab.
8. Click Prepayment invoice to create an invoice.
9. Enter a unique invoice number into the Number field.
10. Verify the invoice information, ensuring that the Prepayment check
box is selected.
11. Click Post on the Action pane, and then click the Post button.
12. Close all forms.

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Chapter 10: Accounts Payable Daily Procedures
To make a payment for the prepayment, follow these steps:
1. Open Accounts payable > Journals > Payments > Payment
journal.
2. Click New to create a new journal header.
3. Select a journal name from the Name field.
4. Enter a brief Description.
5. Click Lines.
6. Select 1002 in the Account field.
7. Click Functions > Settlement.
8. Select the prepayment invoice created during the Post the
Prepayment procedure.
9. Close the Settle open transactions form.
10. Select USA_EL in the Method of Payment field.
11. Click Post > Post.
12. Close the Infolog form
13. Close the Journal voucher and Payment journal form.

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Financials I in Microsoft Dynamics® AX 2012

Invoice Matching
Accounts payable invoice matching is the process of matching the vendor
invoice, purchase order, and product receipts information. Vendor invoices are
frequently based on product receipts that represent actual shipments, instead of
on purchase orders. Sometimes the invoiced amounts do not match the purchase
order amounts, and sometimes the shipped quantities do not match the invoiced
quantities. To manage this information, Microsoft Dynamics AX enables you to
do the following things:

Create an accounts payable invoice based on product receipts.
Product receipts are automatically suggested for invoicing, and you
can select which product receipts to use. You can also select specific
product receipt line items from multiple purchase orders, if
necessary.

Enter and save an invoice before a shipment arrives. After the
product receipt that represents the shipment arrives, you can match
the appropriate product receipt lines to the invoice lines.

View and approve quantity differences between the invoiced
quantity on the invoice and the received quantity on the product
receipt. If there is a difference, you can save the invoice and later
match it to a different product receipt or change the invoice quantity
to match the received quantity.

Enter invoice amounts that were not included on the original
purchase order so that the invoice information matches the invoice
that you received from your vendor. You can compare the
miscellaneous charges for purchase orders with the miscellaneous
charges for invoices. If necessary, you can add miscellaneous
charges to invoices and allocate them to invoice lines.

View and approve price match discrepancies between the invoice net
unit price and the purchase order net unit price. You can set up price
tolerance percentages for companies, vendors, and items. If the
vendor invoice line price is not within the acceptable price tolerance,
you can save the invoice until it is approved for posting, or until you
receive a correction from the vendor.

Types of Accounts Payable Invoice matching
You can use the following types of Accounts payable invoice matching:

10-50

Invoice totals matching – match the total amounts on the invoice to
the total amounts on the purchase order. This type of invoice
matching includes the least amount of detail, so you can use this
option to set up controls that minimize the staff time that is required
to review invoice matching information.

Two-way matching – match the price information on the invoice to
the price information on the purchase order.

Chapter 10: Accounts Payable Daily Procedures

Three-way matching – match the price information on the invoice
to the price information on the purchase order. Also match the
quantity information on the invoice to the quantity information on
the product receipts that are selected for the invoice.

Charges matching – match the charges information (amounts) on
the invoice to the charges information (amounts) on the purchase
order.

NOTE: Refer to the User Help In Microsoft Dynamics AX for more details on the
types of Invoice Matching.

Scenario
Alicia, the Buyer at Contoso, enters a purchase order with one line item for 50
bulbs at a price of 2.00 U.S. dollars (USD) each. The purchase order is approved
and submitted to the vendor.
The vendor ships only 30 bulbs. Sammy, the Shipper, enters a product receipt for
30 bulbs.
April, the Accounts payable clerk, receives the invoice in the mail for 50 bulbs at
a price of 2.00 USD each for a total of 100 USD, but the totals that April is
viewing reflect 30 bulbs at 2.00 USD each, for a total of 60 USD. April examines
the vendor invoice and notices that the quantity is 50, not 30 as the system
defaulted. She changes the invoice quantity to 50. The system flags April with a
Quantity matching discrepancy, because the quantity on the invoice does not
equal the total matched quantity for the invoice line.
April cannot post the invoice, but she chooses to put it on hold so she can check
with Alicia or Sammy to inquire why the invoice has arrived for a quantity that
differs from the product receipt quantity currently posted in the system.

Procedure: Define Parameters
Invoice Matching enables the set up of price tolerance percentages that you can
use to identify discrepancies among purchase order line prices, product receipt
line quantities, and invoice line prices and quantities.
Perform the following steps to enable invoice matching:
1. Click Accounts Payable, click Setup, and then click Accounts
payable parameters.
2. Click Invoice validation, and then select the Enable invoice
matching validation check box.
3. In the Post invoice with discrepancies field, select whether
approval is required before an invoice that contains discrepancies for
invoice matching can be posted.

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Financials I in Microsoft Dynamics® AX 2012
4. Optional: To match actual invoice totals with expected totals, based
on information on the purchase order, select the Match invoice
totals check box.
a. In the Display invoice totals match icon field, select whether an
icon is displayed if a discrepancy for invoice matching exceeds
the tolerance. You can select to display the icon when a positive
discrepancy exceeds the tolerance, or when either a positive or a
negative discrepancy exceeds the tolerance.
For example, the tolerance is 5 percent, and the total invoice
amount on the purchase order is 100.00. Therefore, a price match
icon is displayed if the total invoice amount on the invoice
exceeds 105.00. If you select If greater than or less than
tolerance, the icon is also displayed if the invoice amount is less
than 95.00.
b. In the Invoice totals tolerance percentage field, enter the
maximum percentage variance that is acceptable.
5. Optional: To match price or price and quantity information for line
items on invoices, follow these steps:
a. In the Line matching policy field, select a value to be used as
the default policy for the legal entity that you are working with.
b. To allow a different level of matching to be applied for an item,
vendor, vendor and item combination, or purchase order line,
select a value in the Allow matching policy override field.
c. In the Display unit price match icon field, select when an icon
is displayed if a discrepancy for invoice matching exceeds the
tolerance for the net unit price. The icon can be displayed when a
positive discrepancy exceeds the tolerance, or when either a
positive or a negative discrepancy exceeds the tolerance. For
example, the tolerance is 5 percent, and the unit price on the
purchase order is 10.00. Therefore, a price match icon is
displayed if the net unit price on the invoice exceeds 10.50. If
you select If greater than or less than tolerance, the icon is
also displayed if the net unit price on the invoice is less than
9.50.

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Chapter 10: Accounts Payable Daily Procedures
6. Optional: To match price totals for line items on invoices, select a
value in the Match price totals field.
a. Enter the price totals tolerance percentage, amount, or
percentage and amount.
b. In the Display price total match icon field, select when an icon
is displayed if a discrepancy for invoice matching exceeds the
tolerance. The icon can be displayed when a positive discrepancy
exceeds the tolerance, or when either a positive or a negative
discrepancy exceeds the tolerance. For example, the tolerance is
5 percent, and the line price total on the purchase order is 10.00.
Therefore, a price match icon is displayed if the line price total
on the invoice exceeds 10.50. If you select If greater than or
less than tolerance, the icon is also displayed if the line price
total on the invoice is less than 9.50.

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00.50.13 ACCOUNTS PAYABLE PARAMETERS FORM. INVOICE VALIDATION 10-54 . and the expected charge. a charges match icon is displayed if the actual charge exceeds 10. or when either a positive or a negative discrepancy exceeds the tolerance. b. select when an icon is displayed if a discrepancy for invoice matching exceeds the tolerance.50.Financials I in Microsoft Dynamics® AX 2012 7. For example. In the Charges tolerance percentage field. In the Display charges match icon field. enter the maximum percentage variance that is acceptable. FIGURE 10. the icon is also displayed if the charge is less than 9. If you select If greater than or less than tolerance. based on information on the purchase order. Optional: To match actual charges with expected charges. a. is 10. the tolerance is 5 percent. Therefore. The icon can be displayed when a positive discrepancy exceeds the tolerance. select the Match charges check box. based on the purchase order.

Chapter 10: Accounts Payable Daily Procedures
Procedure: Modify an Inventory Model Group for Invoice
Matching
Price discrepancies between the price of an item on a product receipt and the
price on a corresponding invoice may affect the recorded inventory cost of the
item. To help ensure that users record inventory costs correctly, invoice matching
requires that product receipt information be posted before invoice information
can post.
Perform the following steps to modify an inventory model group for invoice
matching:
1. Click Inventory and warehouse management, click Setup, click
Inventory, and then click Inventory model groups.
2. Select an inventory model group.
3. On the Setup FastTab, select the Receiving requirements check
box to designate that users must update item receipts physically
before they can update the receipts financially. Users must enter and
post a product receipt before they can post the corresponding vendor
invoice.
If there is a difference between the received quantity on the product
receipt and the invoiced quantity on the invoice, an icon displays in
the Packing slip quantity match column in the Posting invoice
form.

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4. Select the Deduction requirements check box. When selected, users
must update item deductions physically before they update them
financially. Users must enter and post a product receipt before they
post a corresponding vendor invoice.
If there is a difference between the deducted quantity on the product
receipt and the negative invoiced quantity on the invoice, an icon
displays in the Packing slip quantity match column in the Posting
invoice form.
5. Repeat steps 2 through 4 for the inventory model groups for which
you want to use invoice matching.

FIGURE 10.14 INVENTORY MODEL GROUPS FORM, SETUP
FASTTAB

Procedure: Create Item Price Tolerance Groups
You can set up price tolerance information for all items in your company, for
item price tolerance groups, or for individual items. To set up item price
tolerances by group, first create item price tolerance groups and then assign each
item to the appropriate group. For example, you might set up three item price
tolerance groups: High, Medium, and Low.
Perform the following steps to set up price tolerance information:
1. Click Inventory and warehouse management, click Setup, click
Price/Discount, and then click Item price tolerance groups.
2. Click New to create a new item price tolerance group.
3. Enter an identifier for the item price tolerance group and a name.
4. Repeat steps 2 and 3 for the remaining item price tolerance groups.
5. Click Product Inventory management, click Common, and then
click Released products.
6. Select an item. On the Action Pane, click Edit.
7. Click the Grid View at the bottom of the form, and then select an
item in the list.

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Chapter 10: Accounts Payable Daily Procedures
8. On the Purchase FastTab, select an item price tolerance group.
9. Repeat steps 7 and 8 for each item.

FIGURE 10.15 ITEM PRICE TOLERANCE GROUPS FORM

Procedure: Create Vendor Price Tolerance Groups
Set up price tolerance information for all vendors in your company, for vendor
price tolerance groups, or for individual vendors. To set up vendor price
tolerances by group, first create vendor price tolerance groups and then assign
each vendor to the appropriate group. For example, set up two vendor price
tolerance groups: 10 percent and 5 percent.
Perform the following steps to set up price tolerance information for vendors:
1. Click Accounts payable, click Setup, click Vendors, and then click
Vendor price tolerance groups.
2. Click New to create a new vendor price tolerance group.
3. Enter an identifier and a name for the vendor price tolerance group.
4. Repeat steps 2 and 3 for the remaining vendor price tolerance
groups.
5. Click Accounts payable, click Common, click Vendors, and then
click All Vendors.
6. Select a vendor account. On the Action Pane, click Edit.
7. On the Invoice and delivery FastTab, select a Vendor price
tolerance group.
8. Repeat steps 6 and 7 for the remaining vendors.

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Price Tolerance Setup
Set up price tolerance percentages for your company, items, and vendors. When
the system compares vendor invoices with purchase order information, it
searches for the applicable price tolerance percentage in the following order.
Item code

Account code

Table

Table

Table

Group

Table

All

Group

Table

Group

Group

Group

All

All

Table

All

Group

All

All

The default company price tolerance is zero percent and it applies to all items and
all accounts (All, All). You cannot delete the default company price tolerance
record.
For example, you can set up the following price tolerance percentage records.
Item
code

Item
relation

All

Table

10-58

Battery

Account
code

Account
relation

Price
tolerance
percentage

Notes

All

1%

This percentage
applies to all items
and all vendors,
unless one of the
other scenarios
applies. This is the
legal entity price
tolerance
percentage.

All

1%

This percentage
applies to the
Battery item from
all vendors.

Chapter 10: Accounts Payable Daily Procedures
Item
code

Item
relation

Account
code

Group

Low

Group
Group

Account
relation

Price
tolerance
percentage

Notes

All

2%

This percentage
applies to all items
whose item value
model group has the
“Low” item price
tolerance group
assigned to their
item value model
groups, and all
vendors.

Medium

All

6%

High

All

15%

All

Group

5 percent

5%

All

Group

10
percent

10%

This percentage
applies to vendors
who are assigned to
the “10 percent”
group, and All
items.

Procedure: Set Up Price Tolerance
Perform the following steps to set up price tolerance:
1. Click Accounts payable, click Setup, click Invoice matching, and
then click Price tolerances.
2. In the first row, you can change the default company price tolerance.
3. Click New to create a new price tolerance percentage.
4. Enter information about the item and vendor combination that the
price tolerance applies to, and the price tolerance percentage.
5. Repeat steps 3 and 4 for the remaining price tolerance percentages.
NOTE: By default, negative price discrepancies are allowed. However, you
cannot enter a negative number as the price tolerance percentage. To track
negative price tolerance percentages, select If greater than or less than
tolerance in the Display unit price match icon field in the Accounts payable
parameters form. Then enter price tolerance percentages in the Price tolerances
form.

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Charges to Purchase Order Invoices
Add or change charges during the purchase order invoicing process. You can
apply the charges to the invoice header or the invoice lines. Additionally, you can
connect the transactions to the purchase order header or lines to correct
differences, if necessary. For each customer/vendor charge code, determine
whether you want to compare charges values on purchase orders and invoices.
Example
If a charge on an invoice differs from the expected charge on the corresponding
purchase order, you can change the charge transaction for the invoice. For
example, a charges transaction for a handling fee might be 10.00 USD on the
purchase order, but when the invoice arrives, the handling fee may have
increased to 20.00 USD.

Account for Purchase Order Invoice Variance Caused by
Charges
If the charges for an invoice differ from the charges for the purchase orders, you
can change the charges for the unposted invoice.
Charges are copied to an unposted invoice from the applicable purchase orders.
NOTE: Charges values for an invoice are not included in the price tolerance
calculations for accounts payable invoice matching. However, you can view
expected and actual values for Customer/Vendor type charge codes in the
Compare misc. charges values - Invoice form.
When you post a purchase order invoice, the system posts the charges
transactions from the invoice. The system removes corresponding charges
transactions from the purchase order.
NOTE: If you are working with an invoice for an intercompany purchase order,
you cannot change charges on the invoice. The charges for the intercompany
purchase order must match the charges for the corresponding intercompany
sales order, and any changes to charges for the invoice for the purchase order
will cause posting to fail.

Procedure: Add Charges to a Purchase Order
To add charges to a purchase order, follow these steps:
1. Open Procurement and sourcing > Common > Purchase order >
All purchase orders.
2. Select a purchase order and then click Invoice tab on the Action
pane and then click Invoice in the Generate group.
3. If necessary, click Edit record in the Maintain group Action Pane.

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4. Select which charges transactions to add, change, or delete:
a. To add, change, or delete charges transactions for the invoice
header, click Maintain Charges on the Financial tab.
b. To add, change, or delete charges transactions for an invoice
line, in the Lines Action pane strip, click Financials > Maintain
misc. line charges.
5. In the Charges transactions form, enter the charge from the invoice
that you received from your vendor.
6. Click Connect to selected charges transaction for an invoice header
or line to the corresponding purchase order header or line. Close the
form.
7. Close the Charges transactions form.

Update Charges and Allocation
If a charges transaction was added to purchase order lines and the charges
amount is different on the invoice, you can enter a new charge transaction for the
difference and then allocate it to the invoice lines.
NOTE: If you are working with an invoice that has been summarized and you
add a charge to the summary invoice header (on the Overview tab), allocation
affects all invoice lines included in the summary invoice. If you add a charge to
one of the individual invoice headers (on the Purchases tab), allocation affects
only the invoice lines associated with the selected invoice header.
For example, assume that a charge for freight was expected to be 20.00 U.S.
dollars (USD) and was allocated equally to four purchase order lines. If the
freight charge on the invoice is 30.00 USD, enter an additional charge transaction
for the invoice header and allocate it to the four invoice lines. The additional
charge amount is allocated only to the invoice lines. The purchase order lines are
not affected.

Procedure: Update Charges and Allocation
To allocate charges, follow these steps:
1. Open Procurement and sourcing > Common > Purchase order >
All purchase orders.
2. Select a purchase order and then click Invoice tab on the Action
pane and then click Invoice in the Generate group.
3. To add charges transactions to the invoice header, click Maintain
charges in the Financial tab of the Action Pane.
4. In the Charges transactions form, enter the charge from the invoice
that you received from your vendor. In this example, enter 10.00,
because that is the difference between the purchase order charge and
the invoice charge.

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5. Close the Charges transactions form.
6. Click Allocate charges in the Charges group of the Action Pane.
7. Select how to allocate the charge to the lines. For this example,
select Per line to allocate the charges equally to all lines on the
invoice.

Landed Cost Charges
A landed cost enables a company to capture all the costs related to an inventory
item. Calculating landed cost is valuable when the additional costs are a
significant part of the item cost. Determining landed costs is also helpful when
you compare item costs between vendors. For example, vendor A sells an item
for 4.75 USD and vendor B sells the item for 4.25 USD. However, vendor B
charges more in freight charges so that the total cost of the item is more than
vendor A's cost.
Landed costs can be added when an item is posted and will provide the item's
total cost. Third-party charges, such as freight and import duty, can be posted to
an item so that the item transactions include these charges. This process provides
a landed cost for the item.
You can add these additional charges during the following points in time:

Before the order is posted, if known.

Later, if the charges come in after posting.

Adding Landed Costs After an Invoice Update
Charges can be added to a purchase order until it is invoiced. If an invoice from
the vendor contains a charge, it must be added and allocated among the items
before or during invoicing.
However, in some cases, a company might receive a bill from a third-party at a
later stage. To adjust the cost price for the items, you must set up the Charge
code as a Debit to the Item and a Credit to the Ledger account.

Procedure: Adjust Charges Using a Journal
To make an adjustment on an invoice from the Invoice Journal form, follow
these steps:
1. Open Accounts payable, click Inquiries, click Journals, and then
click Invoice journal.
2. On the Invoice Journal form, select the invoice to adjust.
3. Click Charges > Adjustment. The Allocate charges form appears.
4. If the charge is for a fixed amount, select the allocation method in
the Charges allocation field.
5. In the Posting date field, enter the date of posting in the ledger.

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Chapter 10: Accounts Payable Daily Procedures
6. Click the Allocate charges to lines arrow and decide how to allocate
charges to the lines.
7. Click the Charge code arrow and select the relevant code.
8. Update the Description, if it is necessary.
9. In the Charges value field, enter a value.
10. Click the Category arrow and select how to calculate the charge.
11. Click OK to adjust the charges to the lines.
12. To view the adjustment to the lines, click the Lines tab of the
adjusted invoice and then click Charges. Each line will display the
charges as allocated.

Procedure: Adjust Charges on a Purchase Order
Make adjustments on an invoiced order directly from the Purchase order form.
For example, a freight bill is received from a third-party vendor after the original
purchase order was received and invoiced. The charge can still be allocated to the
items received on the original purchase order through the adjustment process.
Purchase order adjustments use the same process as the Invoice journal. To
access the Allocate charges form for the purchase order, follow these steps:
1. Open the purchase order that requires the adjustment, and then from
the Action pane locate Invoice tab and the click Invoice in the
Journals group.
2. On the Invoice journal, click Charges > Adjustment and enter the
adjustment.
3. If the charge is for a fixed amount, select the allocation method in
the Charges allocation field.
4. In the Posting date field, enter the date of posting in the ledger.
5. Click the Allocate charges to lines arrow and decide how to allocate
charges to the lines.
6. Click the Charge code arrow and select the relevant code.
7. Update the Description, if it is necessary.
8. In the Charges value field, enter a value.
9. Click the Category arrow and select how to calculate the charge.
10. Click OK to adjust the charges to the lines.
11. To view the adjustment to the lines, click the Lines tab of the
adjusted invoice and then click Charges. Each line will display the
charges as allocated.
NOTE: Make sure that the charge debits the item and credits the appropriate
ledger account or it will not appear in the Charges transactions form.

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Edit Open Transactions
If a payment was entered and posted, but not yet settled with an invoice or other
transaction, you can settle the payment and invoice by opening the Settle open
transactions form from the Vendor form.
When you click the Update button, the selected payment and invoice transactions
are settled. If the payment and invoice transactions are in the same legal entity,
the transactions change status according to the following rules:

If an invoice is not settled in full, it remains open.

If the amount paid is greater than the amount due, the invoice is
settled and closed. The payment transaction for the customer remains
open for the amount by which the payment exceeds the amount due.

If the payment amount is less than the amount due, the payment
amount is subtracted from the amount due, and the invoice remains
open. The payment transaction is fully settled and is closed.

If the amount paid equals the amount due, the payment and invoice
transactions are closed.

Procedure: Settle Invoices and Payments
Perform the following steps to settle invoices against payments or make
corrections to open transactions.
1. Click Accounts payable, click Common, click Vendors, and then
click All vendors.
2. Select the customer or vendor whose open transactions you want to
settle.
3. To settle open vendor transactions, on the Action Pane, click the
Invoice tab, and then click Settle open transactions.
4. In the Settlement posting date field, select whether to post
settlement transactions using the date of the most recent transaction,
today's date, or a date that you specify.
5. Optional: To designate one of the transactions as the primary
payment transaction, select the transaction and then click Mark
payment. The purpose of a primary payment is to settle all the other
transactions that are selected. The transaction date of the primary
payment is used in cash discount calculations and exchange rate
calculations. If a primary payment is selected, the cross rate can be
entered.
6. Select the Mark check box on the other open transactions to be
settled. A red icon indicates that a transaction is already marked for
settlement.

10-64

1. if a company must handle many small vendors with few payments. for example. FIGURE 10. Enter the cross rate for each transaction that you selected to be settled with a primary payment transaction in step 5. 8. TABLE RESTRICTIONS FASTTAB 10-65 . FIGURE 10. 2. Perform the following steps to enable automatic settlement. 4.16 OPEN TRANSACTION EDITING FORM Procedure: Enable Automatic Settlement In some cases. Click the Table restrictions FastTab.Chapter 10: Accounts Payable Daily Procedures 7. Click Accounts payable. and then click Vendor posting profiles. it is more convenient to use automatic settlement of invoices and payments. Click Update The marked transactions are offset against each other. Select the Settlement check box. Select the relevant vendor posting profile. 3.17 VENDOR POSTING PROFILES FORM. click Setup.

Phyllis realizes that a consulting fee was paid twice and she wants to reverse the settlement. 2. Scenario Phyllis. • Note that the system considers an unsettled invoice unpaid. On the Action Pane. click Vendors. Procedure: Reverse a Closed Transaction Perform the following steps to reverse a closed transaction. 10-66 . The Mark field of the transaction that offsets the transaction marked is selected automatically. Select a vendor record. click the Invoice tab. Select the Mark check box to reverse the invoice or payment associated with the settlement. click Common. 4. 1.Financials I in Microsoft Dynamics® AX 2012 Reverse a Closed Transaction Consider the following when you work with reverse settlements: • Use the Closed-transaction editing form to edit fully applied or settled transactions that are in history. and then click Closed transaction editing. but it is a link between the payment and the invoice. reviews and approves the Accounts Payable transactions. • Use reverse settlements if the bank does not honor a payment or if you use the wrong date or settlement amount. the Accounting Manager at Contoso. and then click All Vendors. • Note that a settlement is not a transaction. Click Accounts payable. 3.

History displays an overview of settlements for the current voucher.18 CLOSED TRANSACTION EDITING FORM 10-67 . makes corrections. The date must be the same as. 6. Select how to determine the settlement reversal posting date to use: o Latest date: use the date of the most recent original settlement. Click the Reverse button.Chapter 10: Accounts Payable Daily Procedures 5. the date of the most recent transaction involved in the settlement. FIGURE 10. o Today's date: use today's date. The system changes the settlement amount. and changes the status. or later than. o Selected date: use the date that you specify.

8. She then will make a note to enter the transaction correctly in the morning. 10-68 . Click the Reverse button. Close all forms. 6. Need a Little Help? You can reverse closed transactions by using the closed transaction editing function. Click the Inquiry button.6 . Challenge Yourself! Help April reverse the transaction and check history to ensure she reversed it correctly. and then click Closed transaction editing. and then click All Vendors. Click Vendor account 5001. 2. Click Accounts payable. click Common.Financials I in Microsoft Dynamics® AX 2012 Lab 10. 4. the Accounts Payable Clerk at Contoso. realizes the last transaction posted for vendor account 5001 should have been posted to vendor account 2001. On the Action Pane. click Vendors. 7. Select the Mark check box.Reverse a Closed Transaction Scenario April. and then click History to view the reversed transactions. Step by Step 1. 3. Click the last line in the form. She must reverse the transaction and check history to ensure she reverses the transaction. 5. click the Invoice tab.

you can create a query to print footer text in a different language for a specific vendor. When a document generates. For example. or transaction level. the queries that associate with the conditional settings are evaluated automatically in the order in which the settings appear in the Print Management setup form. The effective records are the records established in Print management that control the printed output of original and copy records. to print three copies of the sales order product receipt. set up an original record and two copy records. account. You can control various activities that include the following: • Number of copies to produce • Multilingual document footer text • Print destination How Print Management Works When you print documents such as invoices or packing lists. For example. a document prints only if a query for an associated conditional setting successfully returns results. You can define the print management setup information for each document type in a hierarchical list that consists of modules. 10-69 . The setting that associates with the first successful query is used to print the document. The record that is used to print a document determines the footer text for the document. define print management original records. each with different footer text. If the Default setting check box in the Print management setup form is selected. An original or copy record contains the information that print management uses to print the document. Each conditional setting has a related query. use defined settings for the original or copy records in print management. and how many copies to print. At each level of the hierarchy. accounts. copy records. Each original record or copy record can have up to 19 conditional settings associated with it. or it can override an inherited record that has the same name.Chapter 10: Accounts Payable Daily Procedures Print Management You can define print management original records. and number of identical copies to print. When the document generates during posting. An effective record can inherit information from a higher level in the hierarchy or create a new record for the current level in the hierarchy. If this field is not selected. and settings for any of the available document types. printer destination. and conditional settings at the module. the printer to use. Each original record or copy record can associate with a default setting that specifies the footer text. a document prints according to the specifications for the default setting. copy records. and transactions. it prints according to the effective original record and effective copy records.

such as installation of a new printer. NOTE: You can use print management settings when you reprint documents. 4. right-click a document name and select New. Select Preview/Print > Use print management to reprint a document that uses the effective print management settings. select to create an original or copy record. if business needs require. You can create only one original record for each document. 10-70 . You can create up to 99 original or copy records for every document type. The hierarchical list in the left pane displays the module. You can create up to 19 conditional settings for each original or copy record. a plus (+) icon in front of the document type indicates that a setup record exists. depending on the selected record. click Forms. and conditional settings. documents. A new original or copy record is created and is displayed in the list automatically. transaction. 2. In the right pane in the Original/copy field. original or copy records. click Setup. Click the Print management button. Click Accounts Payable. However. 3. The fields in the right pane are the options that you can specify for each type of record. Procedure: Set Up Print Management Perform the following steps to set up print management at the module level: 1. To create a new record. When the hierarchy list is unexpanded. and then click Form Setup. but you can create multiple copy records for each document. settings for specific accounts or individual transactions can override module settings. or any combination of these three.Financials I in Microsoft Dynamics® AX 2012 Procedure: Print Management at the Module Level You can define print management settings for each module. The displayed fields vary. in addition to the default setting. account. Setting up print management at the module level requires the least amount of setup and minimizes the maintenance work when settings change.

When you finish making changes. click the Footer text lookup button and set up footer text for the additional languages. To print footer text in other languages.19 PRINT MANAGEMENT SETUP FORM 7. or footer text. If there is an override of an original or copy record from a higher level in the print management hierarchy. the original or copy prints even if the queries for any applicable conditional settings do not return any results. She must enter the order with the vendor's payment terms so that she receives the material on time. In the Number of copies field. In the Footer text field. use this option to stop a document from printing instead of only changing the destination. is entering a purchase order for a new vendor. 9. number of copies. the terms are cash on delivery. The original or copy is denoted in the hierarchical list by the word Default. By default. If the Do not print check box is selected. Scenario Alicia. If you are creating a copy. enter a name in the Name field. click OK to return to the Print management setup form.Chapter 10: Accounts Payable Daily Procedures 5. enter the number of identical copies to print. 10-71 . 6. click the Destination field's lookup button > Printer setup and select a destination. 10. up to 99 copies. To change the printer destination. the original or copy will not print. the document goes to the printer destination that you specify by clicking Printer setup from the posting form for the document. the Purchasing Agent at Contoso. Because this is her first time buying from the vendor. 11. FIGURE 10. enter up to 50 characters to include at the bottom of the document. If the Default setting check box is selected. 8.

5. click Print management. If changes are needed. click the General tab. right-click an original or copy record and select New. the Credit and Collections Manager. To change the printer destination. You must give the conditional setting a description and select query information. On the Action Pane. Alicia posts and prints the purchase order which prints a copy to Connie's printer. You must give the copy a new name. click OK to return to the Print management setup form. 10-72 .Financials I in Microsoft Dynamics® AX 2012 To speed up establishing an open account with the vendor. A copy is displayed in the list. Any original or copy records are displayed. 6. Review the original or copy record information. expand the list for a document that is listed under the customer or vendor account that you are working with. She enters “New Vendor . 7. you can override an inherited record. o To create a new original or copy record. Select a report format. Select an account. o To create a new conditional setting. Alicia sets up a document copy for the purchase order. Procedure: Set Up Print Management for an Account Perform the following steps to set up print management for a specific vendor account: 1. When you have finished making changes. o To copy. A new record is displayed in the list. o To override. right-click an original or copy record and select Copy. right-click an original or copy record and select Override. A new conditional setting is displayed in the list. By default. or create a new setting. Click Accounts payable. She also enters a note that will print on Connie's copy explaining how much business they plan on doing with the vendor. The icon changes to display a red X to indicate that the record is now an override record. copy an inherited record. click Destination lookup button > Printer setup and select a destination. click Common. and click All vendors. In the left pane.need credit established” as the footer and sets the print destination to the printer that belongs to Connie. right-click a document in the list and select New. This information will help Connie determine how much credit to request from the vendor. 2. In the Set up group. click Vendors. create a new record. 3. the document will be sent to the default printer. 4.

Enter the footer text to include at the bottom of the document. unless you make changes at the account or transaction level.Chapter 10: Accounts Payable Daily Procedures 8. such as a purchase order. An icon with a blue arrow indicates that the original or copy record is inherited from the module level or account level of the hierarchy. Select a transaction. Refer to the following table for the paths to setup a print management for a specific transaction type. In the left pane. Request for quotations Procurement and sourcing > Common > Requests for quotations > All requests for quotations Request for quotation replies Procurement and sourcing > Common > Requests for quotations > Request for quotation replies 1. If you opened the Request for quotation details form. 9. click the General tab. The report format must be created by a developer and be added to the Application Object Tree (AOT) before it is available for selection in the Print management setup form. depending on the language of the document. To print footer text in other languages. 2. 3. This may be necessary if you use a different printer for a specific transaction. Any original or copy records are displayed. Enter the number of identical copies to print. select a vendor. This is the print management information used for the customer or vendor. click Print management. 10-73 . 11. On the Action Pane. In the Setup group. Repeat steps 4 through 9 for the remaining documents in the list. 10. Procedure: Set Up Print Management for a Transaction Set up print management original or copy records and conditional settings for a transaction. click the Footer text lookup button and set up footer text for the additional languages. Document Path Purchase order Purchase order invoice Purchase order packing slip Purchase order receipts list Procurement and sourcing > Common > Purchase orders > All purchase orders. expand the list for a document that is listed under the transaction that you are working with. Report formats can be specific to a country/region.

To change the printer destination. Repeat steps 3 through 8 for the remaining documents in the list. You must give the copy a new name. 10-74 . 8. depending on the language of the document. You must give the conditional setting a description and select query information. A copy is displayed in the list. right-click an original or copy record and select New. 6. be aware that complex queries or many conditional settings can affect posting performance. o To copy. The icon changes to display a red X to indicate that the record is now an override record. Customize the document output by using conditional settings that apply based on the results of a query. the document will be sent to the default printer. A new record is displayed in the list. Select a report format. If changes are needed. o To create a new conditional setting. To print footer text in other languages. 7. Enter the footer text to include at the bottom of the document. 5. right-click a document in the list and select New. A new conditional setting is displayed in the list. Enter the number of identical copies to print. right-click an original or copy record and select Override. NOTE: Although conditional settings and queries provide flexibility in the print management settings. click Destination lookup button > Printer setup and select a destination. The report format must be created by a developer and be added to the Application Object Tree (AOT) before it is available for selection in the Print management setup form. By default. 9. right-click an original or copy record and select Copy. you can override an inherited record.Financials I in Microsoft Dynamics® AX 2012 4. or create a new conditional setting. When you have finished making changes. o To override. click the Footer text lookup button and set up footer text for the additional languages. Report formats can be specific to a country/region. create a new record. click OK to return to the Print management setup form. Review the original or copy record information. copy an inherited record. o To create a new original or copy record.

depending on the language of the document. Select a report format. Right-click an original or copy record and select New. Click the Print management button. Repeat steps 3 through 9 for the remaining documents in the list. such as Vendors 4000 to 4050. 2. Enter the footer text to include at the bottom of the document. click OK to return to the Print management setup form. 10-75 . enter a description for the setting. 10. 7. 8. click Forms. the document will be sent to the default printer. Click OK to return to the Print management setup form. By default. and then click Form Setup. 1. Report formats can be specific to a country/region.Chapter 10: Accounts Payable Daily Procedures Procedure: Set Up Conditional Print Management Settings Perform the following steps to create a conditional print management setting. 11. 4. you might select a range of customer accounts. 6. Click Select and enter the query condition that must be fulfilled in order to print the document by using the current settings. 5. click the Footer text lookup button and set up footer text for the additional languages. To change the printer destination. For example. click Destination lookup button > Printer setup and select a destination. To print footer text in other languages. click Setup. 9. The report format must be created by a developer and be added to the Application Object Tree (AOT) before it is available for selection in the Print management setup form. Enter the number of identical copies to print. 3. When you have finished making changes. Click Accounts Payable. A new conditional setting is created and is displayed in the list. In the right pane.

Financials I in Microsoft Dynamics® AX 2012 Summary Microsoft Dynamics AX offers the following important features for managing Accounts Payable: • Several options for recording vendor invoices including a two-step posting for separate handling of approved and unapproved invoices. 10-76 . • Prepayments • Print Management Microsoft Dynamics AX enhances the preferred procedures for handling financial interactions with both simple and advanced options. If you record invoices for every date. • Payment proposals. do so in the invoice pools. Record approved invoices directly in the invoice journal. and the option to match vendor invoices to physical deliveries of goods.

( ) True ( ) False 3. such as dates ( ) To Edit fully applied or settled transactions 10-77 . You must validate the journal before you post. ( ) True ( ) False 4. ( ) True ( ) False 2. Invoice matching is the process of matching information from what documents? (Select all that apply) ( ) Purchase Order ( ) Vendor Invoice ( ) Product Receipt ( ) Vendor Checks 6. What is the purpose of the closed transactions editing functionality? (Select all that apply) ( ) To edit settlements ( ) To Reverse settlements not honored by the bank ( ) To Reverse settlements with incorrect information. You can use the invoice pool to view registered invoices that are ready for posting. 1. After you post the lines of the invoice register. a red icon appears if a transaction already is selected for settlement. ( ) True ( ) False 7.Chapter 10: Accounts Payable Daily Procedures Test Your Knowledge Test your knowledge with the following questions. In the Is marked field. the postings display in the payment proposal. Which voucher template type lets users re-create a voucher for the same accounts and values as the original entry? ( ) Percent ( ) Division ( ) Aggregate ( ) Amount 5.

12. ( ) Verifies that the journal balances. account.Financials I in Microsoft Dynamics® AX 2012 8. or any combination of these three. How are print management settings defined? ( ) They are set up for each module ( ) They are set up for each account ( ) They are set up for each transaction ( ) They are set up for each module. 9. How do you create payment lines in the payment journal? (Select all that apply) ( ) Manual payment journal ( ) Payment transfer ( ) Settlement ( ) Payment proposal 10-78 . What does validation do? (Select all that apply) ( ) Ensures that everything is correct prior to posting. ( ) Verifies that all mandatory fields are filled in. What are the different invoices available in Microsoft Dynamics AX? (Select all that apply) ( ) Invoice register ( ) Invoice approval journal ( ) Invoice journal ( ) Invoice pool excluding posting 11. Which of the following activities are uncontrollable with print management settings? ( ) Number of copies to produce ( ) Page orientation ( ) Multilingual document footer text 10. transaction. ( ) Ensures that you have selected the correct vendor.

3. 2.Chapter 10: Accounts Payable Daily Procedures Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1. 10-79 .

(•) True ( ) False 3. You can use the invoice pool to view registered invoices that are ready for posting. a red icon appears if a transaction already is selected for settlement. Which voucher template type lets users re-create a voucher for the same accounts and values as the original entry? ( ) Percent ( ) Division ( ) Aggregate (•) Amount 5. In the Is marked field. (•) True ( ) False 10-80 . ( ) True (•) False 2. Invoice matching is the process of matching information from what documents? (Select all that apply) (√) Purchase Order (√) Vendor Invoice (√) Product Receipt ( ) Vendor Checks 6. You must validate the journal before you post.Financials I in Microsoft Dynamics® AX 2012 Solutions Test Your Knowledge 1. the postings display in the payment proposal. After you post the lines of the invoice register. ( ) True (•) False 4.

Which of the following activities are uncontrollable with print management settings? ( ) Number of copies to produce (•) Page orientation ( ) Multilingual document footer text ( ) Print destination 10. 9. 12. How are print management settings defined? ( ) They are set up for each module ( ) They are set up for each account ( ) They are set up for each transaction (•) They are set up for each module. What are the different invoices available in Microsoft Dynamics AX? (Select all that apply) (√) Invoice register (√) Invoice approval journal (√) Invoice journal (√) Invoice pool excluding posting 11. ( ) Ensures that you have selected the correct vendor. account. (√) Verifies that all mandatory fields are filled in.Chapter 10: Accounts Payable Daily Procedures 7. or any combination of these three. transaction. What is the purpose of the closed transactions editing functionality? (Select all that apply) ( ) To edit settlements (√) To Reverse settlements not honored by the bank (√) To Reverse settlements with incorrect information. such as dates (√) To Edit fully applied or settled transactions 8. How do you create payment lines in the payment journal? (Select all that apply) (√) Manual payment journal ( ) Payment transfer (√) Settlement (√) Payment proposal 10-81 . (√) Verifies that the journal balances. What does validation do? (Select all that apply) (√) Ensures that everything is correct prior to posting.

Financials I in Microsoft Dynamics® AX 2012 10-82 .

11-1 . • Set up posting profiles. • Create a payment fee. • Create terms of payment. • Set up a cash discount.Chapter 11: Accounts Receivable Setup CHAPTER 11: ACCOUNTS RECEIVABLE SETUP Objectives The objectives are: • Create a payment schedule. • Create a method of payment. Accounts Receivable offers extensive functionality to set up different customer payment options. Introduction This course introduces the setup procedures and defaults you can use throughout the Accounts Receivable module. This includes the following: • Payment schedules • Payment days • Terms of payment • Cash discounts • Methods of payment • Payment fees This course also explains Customer setup so you can process customers and customer transactions quickly and efficiently. • Create a payment day. • Create a new customer. • Set up customer groups.

o Specified . define the following: • Number of installments • Amount of each installment • Due date of each installment A payment schedule consists of consecutive payments in set time intervals. The customer pays 2.payment of the total amount is divided into a fixed quantity of payments. Enter a name as identification of the payment schedule in the Payment schedule field.the total amount outstanding on the invoice is due. 2. 3. Procedure: Create a Payment Schedule Perform the following steps to create a payment schedule: 1. To set up a payment schedule. click Accounts receivable. or contract payments. Select an allocation method in the Allocation list: o Total . 4. and then click Payment schedules. 11-2 .a specific.S.Financials I in Microsoft Dynamics® AX 2012 Payment Schedule Use payment schedules to pay invoices in installments. click Payment. During this period the invoice is not considered past due as long as the customer makes the scheduled payments on time.a specified amount is due on each specified date.000 U. The payments can be a: • Set amount • Specified number of payments wherein the amount owed is divided to create equal payments For example. To access the Payment schedules form. 5. If Specified is selected. fixed amount is due for each payment on the specified payment dates. an invoice of 10. Click the General FastTab. Enter a description in the Description field. o Fixed quantity . This is known as a finance plan. o Fixed amount . the payment schedules and amounts must be defined on the Payment lines tab.000 USD each month until the balance is paid. dollars (USD) is recorded. click Setup.

designate the number of different payments. or Years. From the Payment schedules form. In the Quantity field. The system uses this information when it calculates the due date of each installment. Perform the following steps to complete the Payment schedule setup: 1. select the date interval in Days. 4. and divide the percent of the total that is due in each payment. Click the Payment Lines FastTab to define the line information for the payment schedule. Months.: Procedure: Create a Specified Payment Schedule If you select Specified in the Allocation list. 3. enter the value of the installment as a percentage of the amount invoiced or as an absolute amount. select whether the value entered is a percent or an absolute amount. in the Payment per list.1 PAYMENT SCHEDULES FORM Procedure: Create a Total Payment Schedule If Total is selected in the Allocation list. no other fields are enabled on the General FastTab. FIGURE 11. depending on the value you select in the Percentage/Amount field. 6. enter the time interval for each installment. 2. 5. Use the Sales tax allocation list to distribute the sales tax amount on a bill of exchange to the payment schedule installments.Chapter 11: Accounts Receivable Setup Depending on the value you select in the Allocation list. 11-3 . In the Amount currency field. General FastTab. In the Percentage/Amount list. the General and Payment lines sections enable different fields.

enter the fixed amount in the Amount currency field. 11-4 . With a Net 30 Days settlement. If an invoice with a Net 30 payment term ships goods on September 15. • Customer in the Customers form. payment is due December 15. General FastTab. perform the following steps to complete the payment schedule setup: 1. if the payment is not completed. the customer must pay the net due within 30 days of the receipt of goods or receipt of the invoice. If the Allocation field is set to Fixed quantity. according to the settlement. or Years. You can also use a term of payment to calculate the due date based on the date of the invoice. in the Payment per list. and the invoice is dated November 15. 2. From the Payment schedules form. Scenario Contoso has a standard customer payment term of Net 30 days. The system uses this information when it calculates the due date of each installment. • Purchase order in the Purchase order form. select the date interval in Days. In the Change field. you may add an interest charge of a specified percent for each month to the invoice along with other services charges. enter the number of units related to the value in the Payment per field between the due dates of each installment. • Sales order in the Sales order form. enter the fixed number of installments in the Number of payments field. Enter the minimum installment in the Minimum field. Minimum amounts override calculated payment amo Terms of Payment Use the Terms of payment form to define all the terms of payment that a company and its customers use. After that date. 3. Specify terms of payment for each: • Vendor in the Vendors form. 4. If the Allocation field is set to Fixed amount.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Fixed Amount or Quantity Payment Schedule If Fixed amount or Fixed quantity is selected in the Allocation list. 5. Months.

and then click Terms of payment.2 TERMS OF PAYMENT FORM Procedure: Create Terms of Payment . select the method to calculate the due date: o Net o Current Month o Current Quarter o Current Year o Current Week o COD 3. 2.Chapter 11: Accounts Receivable Setup Procedure: Create Terms of Payment Perform the following steps to create a term of payment: 1.Setup Perform the following steps to enter setup information for a term of payment: 1. enter a code or a short name for the term of payment. In the Terms of payment field. click Setup. and then enter a descriptive name for the current terms of payment in the Description field. Enter the number of months to add to the payment method to calculate the due date in the Months field. click Payment. 2. From the Terms of payment form. Click New to create a new record. 11-5 . In the Payment method list. FIGURE 11. click the Setup FastTab. Click Accounts receivable. 3.

the rules set up in the term of payment are used to calculate the due date of the first installment.Financials I in Microsoft Dynamics® AX 2012 4. link a payment schedule to the term of payment. In the Ledger posting area from the Cash list. Select the Cash payment check box to indicate whether customers must make payments in cash and not by check. Use the Translation button to translate the search name into more languages. select a payment day used for calculation of due date. 2. select a ledger account for settlement of invoices that the system will use for cash payment. 7. perform the following steps to complete the term of payment setup: 1. In the Payment day field. In the Payment schedule field. For example. 5. Procedure: Create Terms of Payment .COD If the Cash on delivery (COD) payment method is selected. 6. The payment schedule defines how an invoiced amount is split up into installments that must be paid in specific intervals. NOTE: If a term of payment is linked to a payment schedule. The rules set up in the payment schedule are used to calculate the due date of the following installments. Enter the number of days to add to the payment method to calculate the due date in the Days field. if a French language text is created the text is shown on invoices for all customers set up with French as the language. 11-6 .

select the terms of payment in the Terms of payment field. click All customers and then click a customer account. click Accounts receivable. click Common.Chapter 11: Accounts Receivable Setup Procedure: Attach a Payment Term You can attach the terms of payment to sales orders. For example. and then on the Payment defaults FastTab.3 CUSTOMERS FORM Payment Days Use payment days to define the payment day to use for calculating the due date. FIGURE 11. Click Edit on the Action Pane. free text invoices. or customers. You can specify the payment day for: • A specific day in the week • A specific date in the month 11-7 . The due date is always rounded up to the nearest specified date automatically.

If you select Week. and if you select Month. select between Week and Month in the Week/Month field. and then click Payment days. Set up the payment day in the Terms of Payment form on the Setup FastTab to define the payment date to use to calculate the due date. Click Accounts receivable. click Setup. enter a value between one and 31 in the Day field. 3.4 PAYMENT DAYS FORM 11-8 . select a value from the Weekday list.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Payment Day Perform the following steps to create a payment day: 1. 4. Click New to create a new record. On the Payment day lines FastTab. Enter a short identification of the payment day in the Payment day field and then enter a description of the payment day identification in the Description field. 2. click Payment. FIGURE 11.

Close the forms. both parties agreed that Cave Wholesales will now make payments within 18 days. Challenge Yourself! Help Connie create a new term of payment to fulfill this requirement and assign it to Cave Wholesales. click Setup. Contoso's Credit and Collections Manager. 5. In the Description field. Click Edit on the Action pane. click Common. 2. in the Payment Method field. 5. Close the window. Click the Payment defaults FastTab. type 18. Perform the following steps to assign a new term of payment to Cave Wholesales: 1. select N018.Terms of Payment Scenario Connie. 3. click Customers. 2. 6. She noticed that the customer Cave Wholesales has a large outstanding balance. Click Accounts receivable. select Net. Click Accounts receivable. After a telephone call to Cave Wholesales. enter N018. 3. 6. Click the New button. Need a Little Help? The term of payment is assigned to the customer on the Payment defaults FastTab of the Customers form. click Payment. Select 1103. has been reviewing the outstanding customer balances. 11-9 . and then click Terms of payment. and then click All Customers.1 . 4.Chapter 11: Accounts Receivable Setup Lab 11. In the Terms of Payment field. In the Terms of payment field. Step by Step Perform the following steps to create a new term of payment: 1. 4. Cave Wholesales as the customer. In the Days field. 7. On the Setup FastTab. enter Net 18 days.

The three cash discounts follow one another as the payment nears the cash discount date. enter 10D2% to indicate the customer receives a two percent discount if payment is made ten days before the due date. Contoso has set up the following codes: • 5D10% . and then click Cash discounts. Scenario Contoso's customers receive a cash discount if they pay invoices due within certain dates. Finally. only one cash discount is granted. the 14D2% code is selected in the Next discount code list. Click Accounts receivable. • 10D5% . For example. • Used for both customers and vendors. on the 14D2% code the Next discount code is left blank. 2. click Payment. • Posted to the ledger account specified for the cash discount when an invoice is settled in time to obtain a cash discount. On the 10D5% code.Financials I in Microsoft Dynamics® AX 2012 Cash Discount Cash discounts are: • Earned if a customer pays the invoices within a specified period. click Setup. the 10D5% code is selected in the Next discount code list. Enter an alphanumeric code for the cash discount in the Cash discount field.Cash discount of 2 percent when the amount is paid within 14 days. 11-10 . However. To specify this on the 5D10% code. Procedure: Set Up Cash Discounts Perform the following steps to set up cash discounts: 1.Cash discount of 10 percent when the amount is paid within five days. • 14D2% .Cash discount of 5 percent when the amount is paid within ten days.

is used to calculate the last date the customer can make a payment and receive any available cash discounts. FIGURE 11. 7. 4. 6. This selection allows you to define a set of cash discounts that follow one another. The method specified. Select the cash discount code used when the criteria for obtaining the current cash discount is exceeded in the Next discount code list. Select the method applicable for the cash discount from the Net/Current list. 3. Enter a brief description for the cash discount in the Description field. 5. Enter the number of months during the period when the cash discount is applicable in the Months field. Enter the cash discount as a percentage of the invoiced amount in the Discount percentage field. together with the value given in the Days field and/or Months field.5 CASH DISCOUNTS FORM Procedure: Set Up Cash Discounts . NOTE: Assign cash discounts to customers. 4.Setup Perform the following steps to define setup information for cash discounts: 1. From the Cash discounts form. Select the main account for posting the cash discount given to Main account for vendor discounts field. 2. enter 10 days/2% for the discount code 10D2%. 11-11 .Chapter 11: Accounts Receivable Setup 3. Enter the number of days during the period when the cash discount is applicable in the Days field. For example. or sales orders. journals. Select the main account for posting the cash discount given to customers in the Main account for customer discounts field. click the Setup FastTab.

the adjustment to the discount is from the last invoice to the first discount. 3.50 is posted to the customer's cash discount account. 2.50 USD.50). click Setup. If the Cash-discount administration parameter is set to Specific. To access the General ledger parameters form. 2. click Accounts receivable.the overpayment or underpayment amount is posted to the customer cash discount account. Considering the cash discount. In the Cash-discount administration field select what to do with an overpayment or underpayment when a cash discount is not deducted correctly when the invoice is settled. Specific . the invoice is settled. For example. o If the applicable cash discount was posted in the same company as an overpayment. the invoice is settled and the difference of 0. click Setup. Click Sales tax. the customer should pay 94.50 is posted to the ledger account specified for cash discount differences automatically.50 USD ($105-10. 11-12 .00 USD and the obtainable cash discount is 10.Financials I in Microsoft Dynamics® AX 2012 Procedure: Define Accounts Receivable Parameters Perform the following steps to specify accounts receivable parameter values that affect the cash discount calculation: 1. and then click General ledger parameters. Procedure: Define General Ledger Parameters Perform the following steps to specify general ledger parameter values that affect the cash discount calculation: 1. a customer's invoice total is 105. the system will adjust the cash discount. and the difference of 0. click General ledger.00 USD. If the applicable cash discount was not posted in the same company as an overpayment. Select from the following values: o Unspecific .the underpayment amount is posted to the customer cash discount account. To access the Accounts receivable parameters form. and then click Accounts receivable parameters. Click Settlement. However the amount actually paid by the customer is 95. If the Cash-discount administration parameter is set to Unspecific. If there are multiple cash discounts so that an overpayment was settled against multiple invoices. it is posted to the system cash discount account.

Enter a brief description in the Description field. and identify how to generate fees. 4. Enter an identification in the Fee ID field. click Payment. • Contoso assesses most invoices late payment fees 30 days after the invoice date. Payment Fee Use payment fees to: • Specify if any additional charges are added to the customer invoice. Procedure: Create a Payment Fee Perform the following steps to create a payment fee: 1. Select the Customer Cash Discount: Cash discount is calculated on amount include sales tax check box to specify that the cash discount is calculated based on the amount plus sales tax. and then click New or Payment fee. 11-13 . specify bank relations. default values will automatically be added to some fields. 3. Click on the Tax options FastTab. If you select Payment fee. 2. it is subject to late payment fees. Scenario Contoso defined guidelines on how to handle late payments: • If a customer does not pay an invoice within the due date. • Define fee identifications. click Setup. Click Accounts receivable.Chapter 11: Accounts Receivable Setup 3.

click the Payment fee setup button. 2. Select a method of payment used for the actual payment fee in the Method of payment field.the bank account selected in the field Bank relation o Group . 11-14 .all is selected in the Grouping list 4.table is selected in the Grouping list o Bank groups . methods of payment.the bank group selected in Bank relation o All . From the Payment fee form. select an main account number in the Main account field for posting in the ledger. Select the journal type for which the fee is valid in the Journal type field.all the bank accounts 3.6 PAYMENT FEE FORM Procedure: Define Payment Fee Setup You can define a payment fee to set up lines for each fee used for different banks. time periods. 5. Select whether to charge the Customer or Ledger to use a financial cost for the fee in the Charge list. If Ledger is selected. remittance types. Select a bank relation from the Bank relation field if: o A bank account .Financials I in Microsoft Dynamics® AX 2012 4. FIGURE 11. payment specifications. and amount intervals. The fee is valid for each field for: o Table .group is selected in the Grouping list o Skip . Perform the following steps to set up a payment fee: 1. Select the kind of bank information required to start the fee in the Groupings field. currencies.

If you leave this field blank. 9. select the payment specifications in the Payment specification field. Select the currency code for the fee in the Currency field. Select among: o Amount o Percent o Interval 8. Select the currency that activates the fee in the Currency field. Only transactions with this currency can activate the fee. Select the calculation method in the Percentage/Amount list. If the company agrees with the bank to specify the payment. FIGURE 11. 7. 6. all currencies activate the fee.Chapter 11: Accounts Receivable Setup 5.7 PAYMENT FEE SETUP FORM 11-15 . Enter the size of the fee in the percentage of the payment or the amount for one payment in the Fee amount field.

11-16 . Enter the maximum transaction amount to activate the fee in the Maximum field. 4. Enter the date the date interval starts for fee calculation in the From date field. Enter the minimum transaction amount to activate the fee in the Minimum field.Financials I in Microsoft Dynamics® AX 2012 Procedure: Define Payment Fee Setup . 2. you can select a Sales tax group and an Item sales tax group to generate the relevant taxes. click the General tab. Enter the ending date for date interval for fee calculation in the To date field. 5.General Perform the following steps to define additional options for the payment fee setup: 1. If the calculated fee is less than the value entered in the Minimum fee field. From the Payment fee setup form. 3. If a financial cost is selected. it will not be applied.

Chapter 11: Accounts Receivable Setup `NOTE: If sales tax is calculated. Select whether the specification is a percentage or an absolute amount in the Percentage/Amount field. 3. GENERAL TAB Procedure: Define Payment Fee Setup . and the sales tax amount is posted on a sales tax account. From the Payment fee setup form. 4. Enter the size of the fee in percent of the payment or amount for one payment in the Fee amount field. 2. 11-17 . FIGURE 11. the net amount is posted on a ledger account. Enter the number of days between the posting date (discounting date) of the remittance and the due date of the invoice in the Days field. Perform the following steps to define an interval payment fee setup: 1. click the Interval tab.8 PAYMENT FEE SETUP FORM.Interval You can enter fees for the selected payment fee setup line that depend on the interval between the remittance and due dates.

3. Click Accounts receivable.combines all invoices for customers who have the same due date o Week . Enter a name for the new method of payment in the Method of payment field. Enter a description of the method of payment in the Description field.combines all invoices from customers for the same payment 5. enter information that states how payments should be summarized and posted. 4. click Setup. and then click Methods of payment. Enter the number of days the customer can make the payment after the specified method of discount. Click New to create a new record. 11-18 . specify all the methods of payment the company uses to receive pay from its customers. such as the following: • Credit • Cash in advance • Bill of exchange • Check and electronic payments In the Methods of payment form. 6. Select from the following options: o Invoice . and still receive a cash discount in the Grace period field. Methods of payment can be assigned to: • Customers • Journals • Sales orders Procedure: Create a Method of Payment Perform the following steps to create a method of payment: 1. For each method of payment.creates one payment transfer for each invoice o Date . click Payment.combines all invoices for customers who have a due date within the same week o Total .Financials I in Microsoft Dynamics® AX 2012 Methods of Payment Many companies offer several methods to pay due invoices. 2. Select whether the system should total the invoices in an automatic payment proposal in the Period list.

Enter or view the number of the last file that was sent in the Last file field. enter or view the number of the last file that was sent on the system date. Select the payment status required to post a payment with this method of payment in the Payment status field. 2.9 METHODS OF PAYMENT . 4. o Credit card: the method of payment is a credit card.Chapter 11: Accounts Receivable Setup 7. bank validations are performed that are otherwise skipped if you use other payment types o Other: the method of payment is not one of the other choices. select the type of offset account that is used for payments. 8. FIGURE 11. The most common account type is bank. When this payment type is used. or is not yet assigned. In the Today field. o Electronic payment: the method of payment is electronic.CUSTOMERS FORM Procedure: Create a Method of Payment .General Perform the following steps to specify general information format: 1. Select the liquidity account for payment in the Payment account list. This is the default value. which is usually today’s date. o Check: the method of payment is a check. o Bill of exchange: the method of payment is a bill of exchange. 11-19 . such as electronic funds transfer (EFT). In the Posting area in the Account type list. Select the Payment type that is associated with the method of payment. 3.

6. . This field is only active when the account type is bank. 2. Enter the transaction type for a bank account in the Bank transaction type field. Click the File formats FastTab.Financials I in Microsoft Dynamics® AX 2012 5. Import format Specify the file format for the bank report about payments from customers. The transaction type is marked on every transaction generated in the payment proposal. Remittance format Specify the file format for remittances to a specific bank.File Formats Perform the following steps to specify the file format: 1. Select the Bridging posting check box and select a Bridging account if payments that have the selected method of payment are first posted to a temporary ledger account and later are transferred to another ledger account. Specify the file formats to use with this Method of Payment by using the following table to complete the File formats tab: 11-20 Format Action Export format Specify the format to export electronic payment. Return format Specify a format to return a message from the export format if the bank supports an electronic return file. Procedure: Create a Method of Payment .

FILE FORMATS FASTTAB Procedure: Create a Method of Payment .Payment Control Perform the following steps to select the validation for the method of payment: 1. click the Setup button and select from the available formats. Validation is executed in the journals upon posting when the payment method is used.CUSTOMER FORM. Select one or more of the following validation methods: o Check number is mandatory .verifies that the check number is entered o Payment reference is mandatory . 2.10 METHODS OF PAYMENT . Select the validation for the method of payment.indicates that the option to use a deposit slip must be selected 11-21 .Chapter 11: Accounts Receivable Setup NOTE: If the format list is empty. FIGURE 11.verifies that a payment reference is entered o Use deposit slip must be checked .Customers form click the Payment control FastTab. From the Methods of payment .

verifies that the offset account type selected is Bank Bank transaction type is mandatory .11 METHODS OF PAYMENT .Financials I in Microsoft Dynamics® AX 2012 o o Offset account has the type bank .verifies that a bank transaction type is selected FIGURE 11.CUSTOMERS FORM. PAYMENT CONTROL FASTTAB 11-22 .

Chapter 11: Accounts Receivable Setup Lab 11. and then click None. 3. Click Accounts receivable. In the Method of payment field. Click the Payment account arrow. Click the Account type arrow. 7. 11. type 2.Set up a Method of Payment Scenario One of Contoso's European customers has asked for the option to pay invoices in cash in the Euro. 5. 11-23 . 6.Euro. 10. and then click EUR OPER. 8. In the Grace period field. and then click Total. Phyllis. click Payments. 2. In the Description field. type Cash . Click the Payment status field. type in CASH_EUR. Click the Bank transaction type arrow. has decided to also offer a two-day grace period for all Euro cash payments. Details for the method of payment are as follows: Field Value Period Total Days of grace 2 Payment status None Account type Bank Payment account EUR OPER Bank transaction type 02 Challenge Yourself! Set up a new method of payment for European cash payments with a two-day grace period. 4. and then click Bank. Step by Step 1. Close the form. the Accounting Manager. and then click Methods of payment. and then click 02. Click the Period arrow. click Setup.2 . 9. Click New to create a new method of payment.

Click New to create a new record. for customer debts. 4.Financials I in Microsoft Dynamics® AX 2012 Customer Groups Consider the following about customer groups: • Use Customer groups to set up certain information that always defaults when entering a new customer. Use this name for the customer group anywhere in the system. and then click Customer groups. • Also. Click Accounts receivable. • Record sales budgets per customer group. The name acts as an additional specification of the customers included in the customer group. a receipt account. 11-24 . For example. set up ledger accounts for the automatic transactions generated in connection with receipt and issues of inventory. Enter the full name of the customer group in the Description field. whenever required to specify a customer group. Click Customers. For each customer group. 3. For example. you can specify accounts. • Generate trade statistics per customer group. To view the name of the customer in all dialog boxes in which customer group is shown. that is. Enter a short name for the customer group in the Customer group field. Procedure: Create a Customer Group Perform the following steps to create a new customer group: 1. 2. item revenue account and account for customer line discounts. an arrival account for a customer who has a corresponding offset account. to generate sales statistics that shows monthly sales per customer group. because a customer group must be specified when you set up a new customer. set up any number of customer groups. • In the Customer group form. At least one customer group must be set up. Scenario Contoso has many customers to track. point the mouse at the customer group and wait until the name is displayed. To simplify the handling of customers. use the customer groups to set up automatic posting to General Ledger accounts for revenue generated by customers. the Contoso Company set up several customer groups to: • Specify ledger posting per customer group. click Setup.

000. a sales budget is set up for customer group X. 6.00 USD is due for payment on July 30. 7. Specify a payment term that corresponds to the default time interval between the sale of an item and the due date on the invoice in the Terms of payment list. Specify a term of payment that corresponds to the default interval between the due date and the actual payment date in the Settle period list. Use the payment term in connection with coverage of customer payments based on one sales budget per customer group.Chapter 11: Accounts Receivable Setup 5. coverage is arranged so that the budgeted item sale of 10. FIGURE 11. On this basis. Then a sale of 10. A payment term is then specified that corresponds to the current month + 30 days.000. For example. Use the payment terms with coverage of customer payments based on one sales budget for each customer group.00 USD is budgeted for June 15.12 CUSTOMER GROUP FORM 11-25 . Enter a Default tax group for this customer group.

13 ITEM POSTING FORM 11-26 . and then click Item posting. decide which accounts must be set up. The focus of finance is related to consumption and revenue accounts. o Category: the posting to an account in the general ledger applies to a particular category of items provided in the Category relation field. o Group: the posting in the ledger only applies to a particular Item group. and the focus in logistics is the issue.Financials I in Microsoft Dynamics® AX 2012 Procedure: Define Inventory Posting Perform the following steps to set up automatic postings to General ledger accounts for a customer group: 1. From the Customer groups form. The first matching account is used for posting. Based on the type of business being run. Posting by Category only applies to Sales and Purchasing transactions. Set up general posting rules for all items. o All: Each transaction is posted for all Item numbers in the same account in the ledger. and packing slip accounts. accounts and sales-tax codes. 2. the posting in ledger only applies to a specific Item number. receipt. In the Item code field. By selecting Table. click the Setup button. FIGURE 11. select one of the following: o Table: this option is the highest in the hierarchy.

Item code Item relation All Table B-R14 Account code Account relation Account number Table 4000 401100 All 401130 11-27 . Primary discount posting.Chapter 11: Accounts Receivable Setup Procedure: Set Parameter Values Perform the following steps to define parameter values: 1. select in the Primary consumption transaction. and then click Accounts receivable parameters. 2. click Setup. For example. in the Posting area. because the item relation is more specific than the account relation. and Primary sales posting fields to indicate whether the primary posting should be assigned to Item or Customer. Item code Item relation Account code All All All Group Table B-R14 Account relation Account number 401100 40 All 401120 401130 If you have set up the posting as illustrated in the following table. If you are selling some of item type B-R14 to customer 4000. the transaction is posted to account number 401100 because of the Accounts receivable parameter setup. set up the Primary sales posting list to prioritize the Item. To access the Accounts receivable parameters form. and you set the Primary sales posting field to Customer. the system posts the transaction to account number 401130. Click Ledger and sales tax. which is part of customer group 40. click Accounts receivable. 3. and some of item type B-R14 is sold to customer 4000. On the General FastTab.

In the Customer group field. has asked Arnie. Travel Agencies. Click the Terms of payment arrow. 1. and then click N014. 2. define automatic posting. Create the new Customer Group 60. type 60. Define automatic posting for the new group. For the new group. 4. 2. the Accounts Receivable Clerk. In the Description field. The payment term should be the current month plus 15 days. Challenge Yourself! Create the new customer group with the correct setup options. and then click Customer groups. Close the form. Click Accounts receivable. Type "142300" in the Main account field. the Sales Manager. Kevin. 5. Need a Little Help? 1. click the Setup button. and then click M15.Financials I in Microsoft Dynamics® AX 2012 Lab 11. with a 14-day settle period. 1. Click the Settle period arrow. 3. Travel Agencies.3 .Create a Customer Group Scenario Contoso is negotiating a deal with a group of Travel Agencies. type Travel Agencies. 2. click Setup. From the Customer groups form. Step by Step Create the new Customer Group 60. 3. 11-28 . Click the arrow in the Account code field and select All. 6. 4. and then click Item posting. Verify that item posting has been set for the All Item code. Arnie should assign the new group the code of 60 and name it Travel Agencies. to create a new customer group for travel agencies. automatic posting should have the Account code of all and post to the Main account 142300. 5. For this new group. click Customers. Click New to create a new group.

Click the Table restrictions FastTab. In Accounts Receivable posting profiles. • Neither of these exists. set up only one posting profile for all customers. a code or a short name in the posting profile and a description of the posting profile in the Description field. the summary accounts. In the Customer posting profiles form. 11-29 . 4. 5. the line specified for the customer group that the customer is attached to is used. or whether settlement must be manual by using open-transaction editing. Select the Settlement check box to indicate whether entries should be created using this posting profile for automatic settlement.Chapter 11: Accounts Receivable Setup Accounts Receivable Posting Profiles Posting Profiles are common throughout all modules. the posting profile line for all customers is used. 2. Click New to create a new record. Summary accounts are temporary accounts where all invoices are posted to and offset when the customer pays. If all customer transactions are processed together. For example if: • A posting profile line for the customer. are defined for customers. interest will not be calculated for customers who have this profile. Assign posting profiles to: • All customers • Groups of customers • Single customers When you post a customer transaction automatically. • No posting profile line exists for the customer. and then click Customer posting profiles. Enter in the Posting profile field. Select the Interest check box to indicate that the application should calculate interest on outstanding balances for customers who have this profile. If this check box is cleared. 6. this line is used. you can set up many customer posting profiles. the system searches for the ledger accounts that are shown in the previous order. Click Accounts receivable. 3. Procedure: Create a Customer Posting Profile Perform the following steps to set up a customer posting profile: 1. click Setup.

FIGURE 11. Select an Account code: o Table o Group o All 3. 8. enter the customer group to which the posting profile relates. the name of any other posting profile to change to when transactions with this posting profile are closed.Setup Perform the following steps to set up the ledger accounts that the system posts to when you post transactions in Accounts Receivable: 1. do not fill in the field. o If Group is selected in the Account code field. From the Customer posting profiles form. Select the liquidity ledger account used for cash flow forecast in the Settle account field.Financials I in Microsoft Dynamics® AX 2012 7. Select the account number of the ledger account that is used as the customer summary account for the customer(s) to whom the posting profile relates in the Summary account field.14 CUSTOMER POSTING PROFILE FORM Procedure: Create a Customer Posting Profile . A transaction is regarded as closed when it is settled in full. o If All is selected in the Account code field. To learn more about Cash flow forecast refer to the Microsoft Dynamics AX Financials II course. 11-30 . Specify which customers belong to the current posting profile in the Account/Group number field. enter the account number of the customer to whom the posting profile relates. Select the Collection letter check box if a collection letter may be issued for customers who have this profile. 5. o If Table is selected in the Account code field. Select from the Close field. 4. click the Setup FastTab. 2.

Enter the identification of the collection letter sequence in the Collection letter sequence field. 3. 11-31 .Chapter 11: Accounts Receivable Setup 6. To access the Accounts receivable parameters form. Select a standard customer posting profile in the Posting profile list. click Accounts payable. The standard posting profile is used if no other posting profile is specified. Select the ledger account for liabilities of discount in the Liabilities for discount account field. Click the Ledger and Sales tax tab. 9. 10. enter an account that will be used for the general ledger write-off entry when a transaction is written off. Procedure: Define Parameters Perform the following steps to specify accounts receivable parameter values related to posting profiles: 1. 2. and then click Parameters. 7. In the Write-off account field. Select a ledger account number to use for sales tax payments you receive in advance in the Sales tax prepayments list. click Setup. Select the code used for calculation in the Interest code field. 8.

the Accounts Receivable Clerk. 4. the Accounting Manager at Contoso. 3. Step by Step 1. click Setup. type Prom. On the Overview tab. • The application will calculate interest on outstanding balances for customers who have this profile. Click Accounts receivable. In the Description field. 5. in the Posting Profile field. • Transactions for the retail customers group will post to the summary account 130100 and settle account 110110. • A collection letter may be issued for customers who have this profile. Select the appropriate options to ensure the following: • Entries will be created using this profile for automatic settlement. Use the following information for the new customer posting profile: Field Value Posting Profile Prom Description Promotion Account Code Group Collection letter sequence High Challenge Yourself! Help Arnie create the new customer posting profile. • When transactions are settled in full.4 . Click the New button or press CTRL+N. the transactions should not change to another posting profile. type Promotion. make sure that the following check boxes are selected: o Settlement o Interest o Collection letter 11-32 . and then click Customer posting profiles. 2. has asked Arnie.Set Up a Customer Posting Profile Scenario Phyllis.Financials I in Microsoft Dynamics® AX 2012 Lab 11. to set up a new posting profile for a group of retail customers. On the Table restrictions tab.

select 110110. 10. select group. 9. 8. select 130100. 11. select High. in the Account code field. Close the form. 11-33 . Verify that the Close field is blank. 7.Chapter 11: Accounts Receivable Setup 6. In the Account\Group Number field. In the Settle account field. select 30 Retail Customers. In the Collection letter sequence field. In the Summary account field. On the Setup tab. 12.

you can create templates based on the entries in fields for specific customers that you specify as template models. Procedure: Create a Customer Perform the following steps to create a new customer: 1. and then enter a customer name with up to 30 characters in the Name field. a form appears that displays the available customer templates. because the data is used throughout the system for: • Invoicing • Payments • Reports The base data is automatically displayed as the default for all transactions that involve the customer. You can make changes to the fields and enter more information. Select the template that applies to the new customer. 5. In the New group. click Customers. 2. Templates can be used by all users or a single user. Click Accounts receivable. click Customer on the Action Pane. Enter as much data as possible in advance. 11-34 .Financials I in Microsoft Dynamics® AX 2012 Accounts Receivable Customers Each Accounts Receivable transaction must be associated with a customer. Select the currency used for customer invoices in the Currency field.You can change default information at any time. 7. If a template is available when you create a new customer. maintain and inquire about customers. Enter a Customer ID with up to ten characters in the Customer Account field. click Common. 3. Use the Customer form to create. Select the customer group to which the customer belongs in the Customer group field. Select if this customer represents a person or a organization in the Record type field. as appropriate. Click the Save and open button and select Customer. The field values of the template are copied to the fields for the new customer. 4. The system automatically generates the Customer account if the customer account number sequence is specified in the Accounts receivable parameters form in the Number sequences section. and then click All customers. To expedite the process of creating customers. 6.

2.Chapter 11: Accounts Receivable Setup NOTE: You can create and maintain currency codes and exchange rates in the Exchange rates form.15 CUSTOMERS FORM Procedure: Create a Customer . 11-35 . You can change the customer's invoice currency in the invoice header before entering sales order lines. From the Customers form. Click the General FastTab. FIGURE 11. click the Edit button on the action pane to edit fields.General Perform the following steps to set additional customer options: 1.

The language select in the Language field is used for all external documents such as sales orders. In the Other information area. select Address books. The fields that are included are: o Terms of payment o Settle period o Item posting ledger accounts. Select the customer group that the customer belongs to. including the Sales tax group account 4. You must specify a customer group for each customer. When you select the customer group. The language value defaults from the Company information form. In the Organization details section select the following: o Number of Employees o Organization Number o ABC code o DUNS number 6. 5.16 CUSTOMERS FORM. GENERAL FASTTAB 11-36 . Select a Classification group to be used with prioritization or sorting.Financials I in Microsoft Dynamics® AX 2012 3. naming information and a language. The language code is mandatory. FIGURE 11. the values of certain fields in the Customer groups form are automatically copied to the customer account.

If you do not use a one-time customer. be sure that you enter the appropriate tax group for each alternative address. Select from the following options: o Always . 3. select a customer's account number that can serve as the default template for one-time customers. The system automatically creates a one-time customer when you create a sales order for a one-time customer. such as invoice. You must associate tax groups with a delivery address. 2. Information is copied automatically when you create a one-time supplier in the Customers form. enter contact information and parameters for access from the Internet for external contact persons who associate with customers. the one-time customer inherits all base information from the customer number specified in this field.every three months o Biannually . you must set up a number sequence in the Accounts receivable parameters form in the Number sequence section. purchase. 2. Select a statistical group in the Statistics group list to make reports and statistics about this customer.Address and Contact Information Perform the following steps to define further setup information for a customer: 1. Select the One-time customer check box to indicate if the company only deals with this customer one time. On the Contact information FastTab. You must specify the one-time customer number sequence in the Number sequences form.Chapter 11: Accounts Receivable Setup Procedure: Create a Customer . enter the customer address and contact details.monthly o Quarter .every six months 11-37 . NOTE: If multiple delivery addresses are in different states or countries. delivery. Specify the frequency of when you send the customer an account statement by using the Account statement list. From the Customers form. enter on the Addresses and Contact information FastTab. If a customer has more than one address. Except for the customer number. 3. Procedure: Create a Customer . enter additional addresses by clicking the Add button and entering the relevant information. or alternative delivery address. In the General area of the Accounts receivable parameters form.Miscellaneous Details Perform the following steps to further define miscellaneous information for a customer: 1. leave the Default customer number blank. NOTE: If using one-time customers.

NOTE: Configure the system to check whether an account is over its credit limit in the Credit rating area of the Accounts receivable parameters form. Enter in the Credit limit field. if found. o Requisition:requisitions transactions are on hold. o Invoice: the main account is blocked for everything before Invoice. NOTE: Configure the system to require identification in the Credit rating area of the Accounts receivable parameters form. or State fields. These government-established data values are commonly used to protect companies against financial loss due to delinquent accounts.Financials I in Microsoft Dynamics® AX 2012 o o Annually . you can transfer the amount to the vendor account. Money can still be received. 5. If a customer has a credit amount because of overpayment or a credit note. Enter in the Credit rating field. Depending on the selection in the Address book type field on the General FastTab. select to keep history on All Orders or just Web orders. enter the maximum outstanding amount allowed in the balance of the customer's account. Select the Mandatory credit limit check box to check for exceeded credit limits and.not printed 4. Select a vendor account number in the Vendor account field if the customer is also a vendor.Credit and Collections Perform the following steps to set up credit and collections information for the customer: 1. enter the credit rating of the customer. o Never: never allow the transactions to be placed on hold. 4. 3. and an invoice can be sent on goods delivered before the blocking. to display an error message. It is used only for statistical purposes. o All: all transactions are on hold. Procedure: Create a Customer . Country/region. Use the vendor account for reimbursement. 6. Select whether invoicing or deliveries have been placed on hold for the customer. o Payment: payment transactions are on hold. 11-38 . 2. In the Customer self service area. in the Government identification area you may enter values in the ID number.one Time per year Never . o No: all transactions are possible. This amount is always stated in the default currency.

Chapter 11: Accounts Receivable Setup Enter appropriate collections information in the following fields: • Collections contact • Include interest charges • Exclude collections fees Procedure: Create a Customer . Procedure: Create a Customer . Specify the delivery terms and options for this customer in the Delivery area. if you are linking several customers to one invoice account. 2. Select a customer account for invoicing in the Invoice account Field. If you leave the field blank. Select the Prices includes sales tax check box to ensure that you include sales tax when you inform customers about sales prices. if there is more than one customer who has the same payment address. The following payment information can be entered: • Terms of payment • Method of payment • Payment specification • Payment schedule • Payment day • Cash discount • Bank account • Bank account number 11-39 . or if the customer's account is paid through a thirdparty.Invoice and Delivery Perform the following steps to set up invoice and delivery information for the customer: 1. then the invoice account is where the invoice amount is credited. For example. Also enter the Tax exempt number and Packing duty license number fields. the system uses the customer account number by default. Specify whether tax should be calculated on the invoice in the Sales tax group field. 3.Payment Information Enter information about how to manage payments on the invoices entered in Accounts Receivable in the Customer form. on the Payment FastTab.

Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Customer . you can use financial dimensions to group data in different ways. 11-40 . those financial dimensions automatically default for transactions for that customer. You can change these defaulted values when you enter the transaction.Financial Dimensions Set up specific Financial dimensions for a customer on the Financial Dimensions FastTab. Throughout the system. If you designate financial dimensions for a customer.

In the Credit limit field. 9. After all the information is entered close the form. 8. Click the Invoice and delivery FastTab. iClick Accounts receivable. 5. Open Accounts receivable and use the Customers form to create a customer. enter 10000. Click the Credit and collections FastTab. the Accounts Receivable Clerk. The following details apply: Option Value Customer group Major Credit limit 10. In the Record type field. select Organization. In the Customer group field. must set up this new customer. Need a Little Help? 1. Step by Step 1. Adventure Works. In the Name field. Click the Edit button on the action pane and enter the information in the proper fields. 2.5 .. click Customers. Arnie. 4. 11.Create a Customer Scenario Contoso has begun working with a new customer. select customer group 20. type Adventure Works. Use the default number in the Customer account field. 11-41 .000 USD Mode of delivery Air Sales tax group Illinois Terms of payment Net 30 days Method of payment CHCK Challenge Yourself! Create a new customer. 10. click Common. Click the Edit button on the action pane. and then click All customers. 6. 7. Click the Save and open button and select Customer. 2. 3. Click the Customers button on the action pane to create a new record.Chapter 11: Accounts Receivable Setup Lab 11. 3.

17. In the Sales tax group field.Financials I in Microsoft Dynamics® AX 2012 12. select 20. select CHCK. select N030. select IL. 16. . Click the Payment defaults FastTab. 15. In the Terms of payment field. Air. 14. 13. Close the form. In the Method of payment field. 11-42 In the Mode of delivery field.

and with or without additional months or days • Set up terms of payment for cash payment so that the payment posts automatically when you issue the invoice • Set up advanced payment schedules and use them as terms of payment based on many factors including: o o o Percentage allocation of the actual invoice amount Allocation based on a fixed number of installments Combined amounts and percentages of the invoice amount • Set up cash discounts based on a current period or a number of net days. For example. Decide whether you need special ledger accounts to post • Manage the cash discount with or without sales tax to comply with the tax legislation in various countries You can also group customers to categorize information so that it is meaningful. By grouping customers. you can do the following: • Set up automatic posting rules for customer transactions to ensure that the transactions affect the correct accounts • Become aware of situations and trends more quickly by grouping customers who have a common identifier to view and analyze financial results in more detail. you can group customers by the types of products you sell them or by the dollar volume of sales 11-43 . Using Accounts Receivable you can do the following: • Define terms based on: o o The number of months or days A current period (for example. you can set them up as multiple (for example.Chapter 11: Accounts Receivable Setup Summary Payment options in Microsoft Dynamics AX are flexible to accommodate different business processes. ten days 3 percent and 30 days 1 percent). If you require cash discounts. current month or current quarter).

( ) True ( ) False 4. 1. Which of the following can be selected in the Payment method list to calculate the due date? (Select all that apply) ( ) Net ( ) Current Week ( ) Current Year ( ) COD 3. What are some ways that companies may pay due invoices? (Select all that apply) ( ) Cash in advance ( ) Credit ( ) Bill of exchange ( ) Check and electronic payments 5. Customers earn cash discounts by paying an invoice within a specified period. What is necessary to set up a payment schedule? (Select all that apply) ( ) Number of schedules ( ) Number of installments ( ) Amount of each installment ( ) Due date of each installment 2.Financials I in Microsoft Dynamics® AX 2012 Test Your Knowledge Test your knowledge with the following questions. How many customer groups must you create in the system? ( ) At least one ( ) At least two ( ) At least three ( ) At least four 11-44 .

Chapter 11: Accounts Receivable Setup 6. It is possible to assign posting profiles to which of the following? (Select all that apply) ( ) All customers ( ) All employees ( ) Groups of customers ( ) Single customers 7. Which of the following would you use to pay invoices in installments? ( ) Method of payment ( ) Customer groups ( ) Payment schedules ( ) Payment fee 11-45 .

3. 11-46 . 2.Financials I in Microsoft Dynamics® AX 2012 Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.

What is necessary to set up a payment schedule? (Select all that apply) ( ) Number of schedules (√) Number of installments (√) Amount of each installment (√) Due date of each installment 2. (•) True ( ) False 4. Customers earn cash discounts by paying an invoice within a specified period. What are some ways that companies may pay due invoices? (Select all that apply) (√) Cash in advance (√) Credit (√) Bill of exchange (√) Check and electronic payments 11-47 .Chapter 11: Accounts Receivable Setup Solutions Test Your Knowledge 1. Which of the following can be selected in the Payment method list to calculate the due date? (Select all that apply) (√) Net (√) Current Week (√) Current Year (√) COD 3.

Financials I in Microsoft Dynamics® AX 2012
5. How many customer groups must you create in the system?
(•) At least one
( ) At least two
( ) At least three
( ) At least four
6. It is possible to assign posting profiles to which of the following? (Select all
that apply)
(√) All customers
( ) All employees
(√) Groups of customers
(√) Single customers
7. Which of the following would you use to pay invoices in installments?
( ) Method of payment
( ) Customer groups
(•) Payment schedules
( ) Payment fee

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Chapter 12: Accounts Receivable Daily Procedures

CHAPTER 12: ACCOUNTS RECEIVABLE DAILY
PROCEDURES
Objectives
The objectives are:

Create a Free Text Invoice.

Edit an Open Free Text Invoice.

Create a Payment Proposal.

Mark customer transactions for Settlement.

Create a Payment Journal.

Edit Open Transactions.

Place an Accounts Receivable transaction on hold.

Reverse a Settlement.

Reimburse a customer.

Describe Reason codes in Accounts receivable.

Define print management settings.

Examine print management setup.

Introduction
This course discusses the free text invoice and the payment journal. It also
explains various Accounts Receivable transactions that you may use in daily
procedures in the Accounts Receivable module.

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Financials I in Microsoft Dynamics® AX 2012

Free Text Invoice - Description and Usage
Use free text invoices to create a sales invoice with order lines that include the
following:

Ledger accounts

Free-text descriptions

The entry of a sales amount

You cannot enter an item number on this kind of invoice; however, you can enter
the appropriate sales tax information.

Comparing a Free Text and a Standard Invoice
The difference between a free text invoice and a standard invoice is as follows:
Standard invoice:

The user specifies the item number, and the system posts the itemrelated transactions in the ledger. NOTE: It is also possible to create
sales orders with non-inventory items.

A sales order makes inventory transactions, but a free text invoice
never uses item inventory because a free text invoice does not create
stock transactions. Users frequently use free text invoices to sell
fixed assets because the free text invoices calculate the costs or
income when you depreciate and sell the asset. Refer to the Fixed
Assets training manuals to learn more about the fixed asset topic.

Free text invoice:

No item numbers are specified by the user.

A ledger account for the sale is selected by the user and is displayed
on each order line. The system posts the customer balance to the
summary ledger account for the posting profile inherited from the
customer, unless the user specifies a different posting profile on the
free text invoice

Scenario
At Contoso, the Accounts Receivable Administrator uses free text invoices for
service charges that are not listed in the items table. For example, some of the
Product Managers consult with customers about specific product design
proposals, and the consulting fees are invoiced by using free text invoices.
Contoso also uses the free text invoice for anything that the company owns and
sells to customers that is not inventory-related. For example, the Accounts
Receivable Administrator typically invoices old plant equipment such as
hardware, furniture, and so on by using free text invoices.

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Chapter 12: Accounts Receivable Daily Procedures
Procedure: Configure a Free Text Invoice
The following setup must be configured before you issue a free text invoice:
1. Set up the invoice number sequence in Accounts receivable using the
Number sequences form. Click Accounts receivable, click Setup,
then click Accounts receivable parameters.
2. Click Number sequences and set up the free text invoice number
sequence for these references:
o Free text invoice
o Free text credit note
o Free text invoice voucher
o Free text invoice credit note voucher
3. Set up the chart of accounts in the Chart of accounts form and
customer accounts in the Customers form.
4. Set up sales tax rates and codes in the Sales tax groups, Sales tax
codes, and Currencies forms.
5. Set up charges codes in the Charges code form (Click Accounts
receivable > Setup > Charges > Charges code.) and groups in the
Customer charges groups form.
6. Set up free text invoice forms in the Form setup form.

Procedure: Create a Free Text Invoice
To create simple free text invoice perform the following steps:
1. Open the Free text invoice form by clicking Accounts receivable,
click Common, click Free text invoices, and then click All free text
invoices.
2. On the Action Pane, click Free text invoice to open the Free text
invoice form.
3. On the Free text invoice header FastTab, select the customer
account. The default information for the customer account is
displayed.
4. In the Invoice lines grid, enter a description, select the main
account, and enter the quantity and unit price for the invoice line.
5. On the Line details FastTab, enter any additional information.
6. To save your changes without posting the invoice, click Close.

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Financials I in Microsoft Dynamics® AX 2012
NOTE: The Invoice field is updated automatically when the invoice posts.

FIGURE 12.1 THE FREE TEXT INVOICE FORM

Procedure: Post and Print a Free Text Invoice
Use this procedure when you are ready to send an invoice to a customer. To
generate electronic invoices, you can print to the screen, to a file, or to an email
message.
1. Click Accounts receivable > Common > Free text invoices > All
free text invoices.
2. Select the invoice that you want to post. On the Action Pane, click
Post.
3. In the Post free text invoice form, select the Posting check box and
the Print invoice check box.
NOTE: If workflow is enabled, the Post button is not available. If you did not
submit the invoice for approval, click Submit. To view the status of a submitted
invoice, click Actions > View history. The Actions menu is available only if a
workflow is activated.
4. To print the invoice by using the printing settings that have been set
up, select the Use print management destination check box.
Alternatively, to specify the printer destinations for the invoice, click
Printer setup. Click OK.
5. In the Post free text invoice form, click OK.
The invoice is posted to the general ledger and sent to the printer destination
specified. The invoice displays the total of the amounts on the invoice lines and
any charges.

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Chapter 12: Accounts Receivable Daily Procedures
Adding Item Quantities and Unit Prices
Frequently a free text invoice line can be used to sell a quantity of some type of
goods, services, or rights. For this reason enabling the quantity to be identified
on the line may be necessary. Similarly, if a good, service, or right has a unit
price it is important to capture this information on the free text invoice line.
Providing this information to the user and a basic amount calculation helps
identify and explain charges to customers.

Scenario: Adding Item Quantities and Unit Prices to a
Free Text Invoice
Contoso Entertainment is selling surplus widgets left over from a large project
recently completed. The widgets were not purchased through the inventory
system so they cannot be sold through a sales order. Instead, they must be sold
through a simple free text invoice transaction. A subcontractor has requested to
purchase 15 and Contoso Entertainment agreed to sell them all 15 for 50 U.S.
dollars (USD).
Arnie, the Accounts Receivable Administrator, must now quickly create a
customer invoice for surplus material using the total amount.

Procedure: Create a Free Text Invoice with Quantities and
Amounts
To create a free text invoice with quantities and amounts, perform the following
steps:
1. Click Accounts receivable, click Common, click Free text invoice,
and then click All free text invoices.
2. Click New, then click Free text invoice to create a new free text
invoice.
3. Select a customer in the Customer field, and enter any additional
information.
4. Click Add lines in the Invoice lines grid.
5. In the Description field, type a description for the invoice line.
6. In the Main account field, select the ledger account to be used for
posting.
7. In the Quantity field, type a number for the quantity.
8. In the Unit price field, type an amount for each quantity in the
invoice line. Notice the Amount field is updated with the extended
amount.
9. Click Close when you are finished.

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Financials I in Microsoft Dynamics® AX 2012
Creating Recurring Free Text Invoices
Recurring free text invoices are used when a customer is to be billed on a
recurring basis. To create a recurring free text invoice, following these steps:
1. Create a Free text invoice template
2. Assign the template to a customer
3. Generate and post the recurring invoice

Procedure: Create a Recurring Free Text Invoice Template
To create a recurring free text invoice template perform the following steps:
1.
2.
3.
4.

Click Accounts receivable > Setup > Free text invoice templates.
Click New.
Enter the Template name and Description.
On the Invoice lines FastTab, assign an invoice line to the template
and assign a Main account.
5. Optional: To distribute the line amount to multiple ledger accounts,
click Distribute amounts. Enter the distribution information in the
Accounting distribution templates form, and then close the form.
6. Optional: Repeat steps 4 and 5 for additional invoice lines.
7. Optional: To specify charges, such as freight and postage, click
Charges.
a. Enter the charge information in the Charges form.
b. Optional: To distribute the charges line amount to multiple
ledger accounts, click Distribute amounts. Enter the
distribution information in the Accounting distribution
templates form, and then close the form.
c. Close the Charges form.
8. To save the changes, close the form.

Procedure: Assign a Recurring Free Text Invoice to a
Customer
Use this procedure to assign a free text invoice template to a customer and
specify when and how frequently the invoice will recur.
1. Click Accounts receivable > Common > Customers > All
customers.
2. Select the customer to assign the template to.
3. On the Invoice tab, click Recurring invoices in the Set up group to
open the Recurring invoices form.
4. Click New.
5. Click the Setup FastTab to enter recurrence information.

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Chapter 12: Accounts Receivable Daily Procedures
6. Select a recurring template in the Template field.
7. Enter the recurrence start date in the Billing start date field.
8. Select the Recurrence pattern of:
o Daily
o Weekly
o Monthly
o Yearly
9. Specify any additional recurrence information.
10. To save the changes, close the form.

Procedure: Generate Recurring Free Text Invoices
Use this procedure to generate invoices that are due and that have free text
invoice templates assigned to them.
1. Click Accounts receivable > Periodic > Recurring invoices >
Generate recurring invoices.
2. In the Invoice date field, enter the date to appear on the invoices.
3. Select the recurring template in the Template field.
4. Click OK A message will be displayed indicating that the invoice
generation was successful.

Procedure: Post and Print Recurring Free Text Invoices
After recurring invoices have been generated, use this procedure to post and print
the invoices. You can send electronic invoices to the screen, to a file, or to email.
1. Click Accounts receivable > Periodic > Recurring invoices >
Generate recurring invoices.
2. On the Action Pane, click Post.
3. Select the Posting check box and select the Print invoice check box.
4. Select the Use print management destination check box to print
the invoice using the print settings that have been set up, or click
Printer setup to specify the printer destinations for the invoice.
Click OK.
5. In the Post free text invoice form, click OK. The invoice is posted
to the ledger, and is sent to the printer destination specified. The total
of the amounts on the invoice lines and any charges display on the
invoice.
NOTE: If the Post button is not available and your organization requires a
review process for free text invoices, the invoice may not have been submitted or
approved. If you have not submitted the invoice for approval, click Submit. To
view the status of a submitted invoice, click Actions > View history

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Financials I in Microsoft Dynamics® AX 2012
Procedure: Free Text Invoice - Edit Open Transactions
Perform the following steps to edit open transactions on a free text invoice:
1. Open the Free text invoice form by clicking Accounts receivable,
click Common, click Free text invoices, and then click All free text
invoices.
2. On the Action Pane, click Edit to allow editing in the Free text
invoice form.
Use the open transaction editing function to change a free text invoice that you
have not yet settled. You can only perform limited editing in this form, for
example adjusting the cash discount. You cannot mark transactions when you use
the open transaction editing functionality from a free text invoice.

Entering Corrections
Enter corrections to modify a free text invoice that has been posted. When you
correct an invoice that has been posted, a corrected invoice is created where you
can modify the invoice and post it with the new values. When you post the
corrected invoice, a canceling invoice is created, which brings the combined
balance of the original invoice and the canceling invoice to a zero amount.
For example, if you correct an original posted invoice that has a balance of
500.00, a corrected invoice will be created that has a balance of 500.00. You can
change the information for the invoice, and then post it. When the corrected
invoice is posted, a canceling invoice will be created that has a balance of 500.00. This brings the combined balance of the original and canceling invoices
to 0.00.

Procedure: Entering Corrections
To correct posted free text invoices perform the following steps:
1. Click Accounts receivable > Common > Free text invoices > All
free text invoices.
2. Select a posted invoice.
3. On the Action Pane, click Correct invoice, and then enter the
following information:
o Reason code: enter or select the reason code that describes why
the invoice is being corrected.
o Comments: enter any additional comments about the invoice
cancellation.
o Canceling invoice date: enter or select the invoice date to assign
to the canceling invoice.
4. Click Create corrected invoice. A corrected invoice is created.
5. Click Edit and make any necessary changes to the invoice.

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Chapter 12: Accounts Receivable Daily Procedures
6. If required by your organization, submit the corrected invoice for
workflow review. When the corrected invoice has been approved,
continue to the next step.
7. In the Free text invoice form, on the Action Pane, click Post and
then click OK. The corrected invoice is posted, and a canceling
invoice is automatically created.
8. Optional: In the Free text invoice list page in the Cancel group,
click View, and then click Invoice corrections to view the invoice
correction details. These details include the related invoices:
o Original invoice: the invoice that includes the information that
you are correcting.
o Corrected invoice: the invoice that contains the corrected
invoice information.
o Canceling invoice: the system-generated credit invoice that was
created to cancel the invoice that was most recently corrected.
This invoice is created when the corrected invoice is posted.

Free Text Print Enhancements
Several sections have a form tab that relates to Free text invoices:

The Form setup form: to open, click Accounts receivable, then
click Setup, click Forms, and finally click Form setup.

The Form sorting parameters form: to open, click Accounts
receivable, then click Setup, click Forms, and then click Form
sorting.

In addition, you can use two types of form notes specifically for Free text
invoices:

Customer free text invoice

Customer free text invoice credit note

To open these form notes, click Accounts receivable, then click Setup, click
Forms, and then click Form notes.
See the Print Management section of this for information on printing
documents.

12-9

Financials I in Microsoft Dynamics® AX 2012 Lab 12. Create a free text invoice. and then posting the invoice. has taken an order from Forest Wholesales for consulting design. Customer Account Forest Wholesales (1101) Invoice Account Forest Wholesales (1101) Date System date Enter the line for the invoice. Scenario Susan. Post the invoice. Use the following information to create line information: Description Invoice for Consulting Design Main account 401190 Sales tax group Accept the default Item sales tax group Accept the default Amount 1450. the Order Processor at Contoso.00 USD Challenge Yourself! Use any of the methods described in this section to create and post the free text invoice.1 . 2. which she invoices to the customer without creating a sales order. Need a Little Help? 1. 12-10 .Create Free Text Invoices During this lab you create and post a free text invoice. Your task is to help Susan complete the order by creating a free text invoice for the consulting. Use the following information to create an invoice for the sale of the design services in Accounts Receivable.

On the Customer Account field. In the Description field. In the Date field. 8. In the Main account field. click Common.Chapter 12: Accounts Receivable Daily Procedures Step by Step Perform the following steps to complete the exercise and set up the Accounts Receivable Free Text Invoice: 1. accept the default. enter 401190. and select customer 1101 (Forest Wholesales). In the Amount field. 10. accept the default. and then click All free text invoices. Close the Free text invoice form. enter $1450. go to the Invoice lines area. enter Invoice for Consulting Design. click Free text invoices. select the customer account. 12. 6. 15. On the Action Pane. 4. 11. On the Free text invoice header FastTab. click Post on the Action Pane. enter System date. To enter the line for the invoice. 14. 16. To post the invoice. 9. The default information for the customer account is displayed. 2.00. 5. click Free text invoice to open the Free text invoice form. In the Sales tax group field. Open the Free text invoice form by clicking Accounts receivable. enter 1101 (Forest Wholesales). 12-11 . Close the Infolog form. click the drop down arrow. In the Invoice Account field. 7. 3. In the Item sales tax group field. Click OK to post the invoice. 13.

approve.Financials I in Microsoft Dynamics® AX 2012 Payment Journals After you register. Payment Proposal When customers make payments. use the payment journal to register it. the customer must pay for the invoice. refer to Financials II in Microsoft Dynamics AX . and to which to record payments. For information on the Centralized payments functionality. For example. • Make and enter payments according to the terms of payment established with the customers. Use a payment proposal as an effective way to select the payment records and create the payment journal. and also to ensure that you can reconcile the Accounts Receivable information with General Ledger information. you must generate payment lines based on payment due dates. you must create and post them in a payment journal. Only transactions with either a due date or a cash discount date are included in the search. Use the Settlements option to select the specific invoice lines to settle. you can select the customer invoices to which payments will be recorded by creating the journal's payment lines: o o o Use a Payment proposal to search for invoice lines that meet selected search criteria. You can use payment journals to do the following: • Enter and post payments. The payment proposal does the following: • Searches for payment lines that either are due or have a maximum date for receiving a cash discount. both to record the payments to the customer's accounts. you can edit them in the payment journal. • Checks open and approved customer transactions. When you receive a customer payment. and post the invoice. Create a Payment journal line manually to enter the payment details manually. As soon as the system generates payment lines. 12-12 . In the Payment journal.

click the Payment proposal button. select the type of payment proposal to create in the Proposal type field. a. and then clicking Journals. Select Due date and cash discount to transfer the set of customer payments that fulfills the criteria for obtaining a cash discount and are due on or before the due date. Create the proposal by due date.Chapter 12: Accounts Receivable Daily Procedures Procedure: Create a Payment Proposal . or by both due date and cash discount date. Finally. Then click Payments and click Payment journal. Select Per due date to transfer the set of customer payments that are due by the specified date. In the Customer payment proposal form. Select By cash discount to transfer the set of customer payments that fulfills the criteria for obtaining a cash discount. click the Lines button. and then click Create payment proposal.General Process Perform the following steps to create a payment proposal: FIGURE 12.2 PAYMENT PROPOSAL 1. After the basic journal information is created. 12-13 . Open the Payment proposal form by clicking Accounts receivable in the Navigation pane. c. 2. b. cash discount date.

Enter the maximum lines to be paid in the Transaction limit field. Procedure: Create a Payment Proposal . and then click OK. 4. 2. b. Enter the period for the customer transactions to be included in the payment proposal in the From date and To date fields. Procedure: Working With Open Transactions in Payment Proposals Follow this procedure to modify the Payment proposal lines in the edit form. and enter the values to implement.Refining Selections and Creating the Proposal Perform the following steps to further refine the criteria for selecting the transactions that appear in the Payment proposal: 1. click the Multiple change button. Inspect each proposal line and the associated open transactions to ensure that they are ready for settlement. 2. Enter the total amount to be selected for payment in the Amount limit field. Highlight a line and click Delete to delete a line record. The Payment proposal pane of the form shows the payment proposal lines. you can review if you want to delete one or more of the open invoice transactions from the Open transactions lines in the Open transactions pane. Select the Generate check box to indicate that you want to generate the payment proposal transactions. if payment of these items is unacceptable or unwanted. For example. If the customer transaction has a Method of payment whose period is set to the Total type. This will open a Customer payment proposal edit form. The Open transactions pane of the form shows the open invoice transactions for the selected payment proposal line. select the lines.Financials I in Microsoft Dynamics® AX 2012 3. Enter the payment date that you want to use in the Total payment date field. 4. Add other criteria as appropriate in the other fields on the Customer payment proposal selection form. the payment proposal uses the date entered in the Total payment date field to aggregate the transactions. 3. which has the following panes: a. 5. 12-14 . which includes transactions from all customers based upon the criteria selected. 1. To change certain fields on several lines in one operation. Click the Select button to select specific customers or a range of customers. 3.

Continue in the Customer payment proposal form to edit the lines if necessary. Procedure: Create a Payment Proposal . The open transactions displayed are updated when they move between Payment proposal pane lines. To view the balances. Click the Post button. Verify the balances of company bank accounts to ensure that you can make the payments. update the General Ledger with the voucher transactions. Click Validate to validate the payment lines.Chapter 12: Accounts Receivable Daily Procedures HINT: Select the Link check box to synchronize the two parts of the form. the customer allows the company to withdraw the payment directly from their bank accounts. In such a case. You must do this before you post. click the Functions button. 2. and indicate the customer invoice transactions as settled. 12-15 . NOTE: You can use workflow with payment journals.Move Selected Lines into Payment Journal and Post Follow this procedure to transfer the selected lines from the Payment proposal into the Payment journal. 5. then click Generate payments. the Open transactions pane shows only transactions related to the selected Payment proposal pane line. NOTE: Occasionally. 3. 4. click the Balance control button. When selected. Some buttons in the form are unavailable when a journal has been submitted for workflow journal approval. Click Transfer to move the proposal lines to the Payment journal after you have reviewed them and made any changes. 1. These actions post the payments to the customer records. and then click Post to post the payment journal.

2. Select a customer account in the Account field. NOTE: You must enter a Customer account and Currency to use the Settlements option. click the Lines button. NOTE: A red mark shows in the Is marked field if a transaction is already marked for settlement.3 OPEN TRANSACTION EDITING FORM. Perform the following steps to create a payment proposal for a marked settlement: 1.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Payment Proposal . click Payment journal. 3. 12-16 . then click Settlement to open the Open transaction editing form. and then clicking Journals. Select the Mark check box to select the invoices to mark it for payment.SETTLEMENTS 4. FIGURE 12. Open the Payment journal form by clicking Accounts receivable in the Navigation pane. Then click Payments.Mark for Settlements Method You can use the Settlement option to select invoice lines to pay instead of using the payment proposal option. Click the Functions button. Mark one or several invoices for settlement. After you create the basic journal information.

such as the Description field. 2. and then click Post to post the payment journal. When you close the Open transaction editing form. Select the Payment proposal check box and close the form when the invoices are marked for payment. click Payments. Verify that the information is correct in the Journal voucher form. 3. Click Transfer to move the payment suggestions to the payment journal lines to make the payment. 2. as appropriate and then click Lines. 12-17 . 4. the Customer payment proposal form opens and shows the payment proposal and the open transactions. 4. A confirmation form opens.Chapter 12: Accounts Receivable Daily Procedures Procedure: Transfer Marked Settlements to Payment Proposal and Payment Journal Perform the following steps to transfer the marked settlements to the Payment proposal and Payment journal: 1. 5. the customer allows the company to withdraw the payment directly from their bank accounts. update the General Ledger with the voucher transactions. Open Accounts receivable. NOTE: Occasionally. Procedure: Manually Create a Payment Journal . These actions post the payments to the customer records. NOTE: Some fields in the journal contain default values that the Journal names form assigns to the journal. In such a case. Optionally validate the journal lines by clicking the Validate button and clicking Validate. These fields usually are not edited by the user. then click Generate payments. and then click Payment journal. 3. Click the Post button. You must do this before you post. Modify the transactions in the Customer payment proposal form. Click New to create a new journal. and indicate the customer invoice transactions as settled. Enter information in other fields. click the Functions button. Perform the following steps to manually create a Payment journal: 1. Select a payment journal in the Name field. Click OK to confirm and continue. and then click Journals.Create the Journal You also can create a Payment journal manually by entering the invoice information into the journal.

. Information about the customer also displays. Description Enter descriptive text about the transaction. This could be. This is typically the bank account type for customer payment journal lines. use the Open transaction editing form to select the invoices. for example.Financials I in Microsoft Dynamics® AX 2012 Payment Journal Fields After you click the Lines button. enter the invoice number. enter the code for the standard journal text created in the Journal texts form. Use a deposit slip Select this check box to indicate that the amount must be deposited with a deposit slip. Invoice Enter or select the invoice number that relates to the payment. Users typically (but not always) enter customer payment amounts in this field. Offset account Enter or view the account number for the offset account type that is selected in the Offset account type list. For example. An asterisk (*) displays if multiple invoices have been selected in the Settlement form. The system date (today's date) is entered automatically. Account Enter or view the account number for the account type that is selected in the Account type field. Offset account type Select the account type for the offset transaction to the customer payment. if you received a payment receipt from your bank. Debit Enter a debit amount in the currency selected for the journal line. instead. Alternatively. Credit Enter a credit amount in the currency selected for the journal line. but you can select another date as appropriate. the following fields display in the Journal voucher form: 12-18 Field name Description Date View or enter the posting date. If multiple invoices are related to the payment. used for a fee of some sort. Company accounts Select the company to associate with the customer for this transaction.

This procedure can be used if you know which customer account the payment is for. settlements. enter the customer account that you have received a payment for. Click Validate to validate the payment line or lines. You can also select multiple invoices.Notes on Generating Payments Sometimes. 3. or if you intend to use the payment to settle multiple invoices. All open invoices for the customer will display. and then click Post. and then click Post. use the generate payment functionality to withdraw the payment from the account. The procedure on how to generate payments is the same for payment proposals.Invoice Number Known After you create the Payment journal and click the Lines button. 12-19 . In the Invoice field. select the invoice that you want. customers allow the company to withdraw the payment directly from their bank accounts. In the Account field. enter or select the invoice that you have received a payment for. Procedure: Payment Journal Lines . Perform the following steps to create a payment journal line with a known invoice number: 1. and click Post again. when you create the payment journal. Click Validate to validate the payment line. If centralized payments are used. One tab for the current company and one for all companies in the centralized payments boundaries.Chapter 12: Accounts Receivable Daily Procedures Procedure: Payment Journal Lines . two tabs show. and manual payment journals. 2. For a known customer and a single invoice. and click Post again. Customer information displays automatically. 2. Payment Journal . use this procedure in the Journal voucher form. Perform the following steps to create a payment journal line for multiple invoices: 1. it is ready to be paid.Customer Known or Multiple Invoices After you create the Payment journal and click the Lines button. use this procedure if you know which invoice number correlates with the payment. In this case. In these cases. Move to the Invoice field and click the arrow. 4.

7. enter the information about the payment in the Customer payment information field group. Procedure: Enter Customer Payments Form Perform the following steps to enter customer payments using the Enter customer payments form: 1. such as Method of payment. If you do not know the identifier. settle. then click Journals. 3. or other transaction identifier.Financials I in Microsoft Dynamics® AX 2012 Enter Customer Payments Form An alternative to manual creation of Payment journal lines is the use of the Enter customer payments functionality. 5. 12-20 . Click the Enter customer payments button. 8. 4. Create a new Payment journal by clicking New. Use this form to enter. and then click Post. If you know the invoice. Click Close. Click Save in journal. enter the identifier and click the lookup button in the Search for customer transactions field group. and save customer payments. interest note. In the Journal form. 6. including: o o o Open invoice Credit note Collection letter You also may view customer transaction records across multiple companies and define other aspects of the payment line. 9. collection letter. and click Payment journal. Click on Accounts Receivable. 2. click Validate to validate the payment line or lines. 10. select the invoices or other documents to settle with the payment. Repeat steps 3 through 6 for the remaining payments. Select a document and skip to step 6. and click Post again. You can select Transactions based on the following fields: • Customer account information • Customer invoice information. or alternatively use an existing Payment journal. Offset account type. etc. In the Select to pay field group.

and then click Payment journal. NOTE: To clear any transactions marked for payment in the Enter customer payments form. Procedure: Edit Customer Payments Perform the following steps to edit customer payments: 1. click Payments. 3. and then click the Lines button. You also can use the Enter customer payments function prior to clicking Lines. NOTE: If the selected transaction is not an invoice transaction or credit note transaction. To save the marked lines in the Payment journal and close the form. normal overpayment or underpayment posting rules apply. Click on Accounts receivable. Select the company. click the Close button. Adjust the marked transactions or amount accordingly.Select by Customer Perform the following steps to view and select transactions for a specific customer: 1. 4. and then select the customer in the Customer field. 12-21 . The form will close. HINT: To view the details of the selected customer transaction. Enter Customer Payments Form .Chapter 12: Accounts Receivable Daily Procedures Procedure: Enter Customer Payments Form . and the Journal form will display. click the Save in journal button. 2. click the Show document button. In the Select to pay pane of the form. Select or create the payment journal record. an asterisk will appear in the Invoice field of the created payment line. You may then continue working in the Payment journal. all open transactions for the selected customer will display. click the Clear button. then click Journals. then the form will display the warning that The payment is not fully settled. If you do transfer payment to the journal without adjustment. 2.Notes and Hints If the amount in the Amount field of the Enter customer payment form does not equal the total of the marked transactions. To save the marked lines in the Payment journal and remain in the form. Select the Mark check box next to each transaction that you want to settle against this payment.

If you entered neither an invoice or customer payment on the payment line. create the payment line manually. Click the Close button to exit the form and return to the Payment journal. 12-22 . If you entered either a customer transaction or a customer account on the payment journal line. repeat steps 1 to 6. You can continue to mark other customer transactions by clicking Mark. 5. 6. then all open invoices for the entered customer will appear in the Select to pay pane of the Edit customer payments form.Financials I in Microsoft Dynamics® AX 2012 3. the created lines display in the journal. This button is inactive unless you have created and saved a payment line. To select additional customer transactions. and you may proceed to select a customer and mark transactions. 7. although you do not have to specify all fields in that line. the edit form will not show transactions. If you have not used the Enter customer payments function to create the payment line. Post the journal as you normally would. 4. and click the Edit customer payments button. The Mark check box for the transaction selected in the payment line already will be selected. If the Enter customer payments function was used. Select the line to edit.

then click Journals. 12-23 .499 in the Credit field.Entering an Accounts Receivable Payment Journal (Cash Receipt) During this lab you will create a payment journal. 2. 4. Use the following information to create a payment journal in Accounts Receivable.2 .Settlements . Need a Little Help? Create a payment journal and use open transaction editing to apply this payment to the correct invoice: Step by Step Perform the following steps to create a payment journal and use open transaction editing to apply this payment to the correct invoice: Create the Payment journal: 1. Sunflower Shopping Mall in the Account field. Click Accounts receivable. o Use customer number 2112. 2. o Use offset account USA OPER. and then click Payment journal.499. Scenario Contoso has received a payment from Sunflower Shopping Mall. o Enter the amount of 2. Click New to create a new journal.00 USD Offset Account USA OPER Challenge Yourself! 1. Date Use the system date Account Sunflower Shopping Mall Credit 2. Click the Lines button and enter the information specified in the example for the payment. 3. Select ARPay in the Name field.Chapter 12: Accounts Receivable Daily Procedures Lab 12. Post the payment journal. click Payments. Create a payment journal.

8. . 12-24 Click the Post button. Close the Payment journal form. Close the Infolog form. 6. Close the Journal form. Click Post to post the invoice.Financials I in Microsoft Dynamics® AX 2012 5. 9. 7.

The payment amount is less than the amount due The system subtracts the payment from the amount due and the invoice remains open The amount paid equals the amount due The system generates a payment transaction for the payment amount. The following procedures explain how to: • Settle invoices and payments • Specify a cross rate between invoices and payments • Reorganize transactions with new due dates Settling Invoices and Payments You can settle invoices and payments in the Settle open transaction form.Chapter 12: Accounts Receivable Daily Procedures Edit Open Transactions Use the Settle open transactions form to make changes in transactions for customers. The following information is relevant to settling invoices and payments. if. Only unapplied transactions are available for editing. If Then The amount paid is more than the amount due The system settles the invoice and the payment transaction remains open for the amount by which the payment exceeded the amount due. and then closes the transaction 12-25 . NOTE: If the over/underpayment feature is being used it can force them to be equal and close the transaction. for example. the invoice and payment are not settled when you create the payment.

3. Select the Mark check box for both the payment and the invoice and then click the Update button to apply the payment to the invoice. 4. The selected vouchers offset one another. If you do not settle a voucher in full. the system records it with a status of Open. or to select the basis currency used for cross rate calculation. click All customers. Click Update. and then click Settle open transactions. 12-26 . Close the Settle open transactions form. click Customers. 2. Click the Collect tab. Click Accounts receivable. and then double-click on the customer. they disappear from this form and transfer to Closed-transaction editing.4 SETTLE OPEN TRANSACTIONS FORM 1. NOTE: A red icon shows in the Is marked check box if a transaction already is selected for settlement. 7. 6. then click Common. if this transaction is to be the Primary payment.Financials I in Microsoft Dynamics® AX 2012 Procedure: Settle Invoices and Payments Perform the following steps to settle invoices against payments or make corrections to open transactions: FIGURE 12. The purpose of a primary payment is to obtain a more accurate history (since all the other transactions marked for settlement will then be settled against the primary payment). When the transactions settle. 5. Close the Customers form. Select the relevant postings to settle by selecting the Mark check box or click the Mark payment button.

Chapter 12: Accounts Receivable Daily Procedures
To enable automatic settlements, click Accounts receivable, then click Setup,
then click Customer posting profiles. Select the relevant customer posting
profile, and on the Table restriction FastTab select the Settlement check box. In
some cases, it is convenient to allow for an automatic settlement of invoices and
payments. For example, if a company has to handle numerous small customers
who have few payments, such as subscribers to magazines, this can be an
efficient solution to posting payments.

Procedure: Specify the Cross Rate in Open Transaction
Editing
You can use a cross rate when you settle a payment with an invoice, and the
payment and invoice lines are in different currencies. When you select an invoice
and a primary payment, you can enter a cross rate for the invoice line. The cross
rate is the exchange rate between the currencies for those transactions as of the
settlement date. Follow these procedures.
1. Click Accounts receivable, then click Common, click Customers,
click All customers, and then double-click on the customer.
2. Click the Collect tab, and then click Settle open transactions.
3. Select the transaction that is the primary payment, and click the
Mark payment button. The check box in the Mark column is
selected, and an information icon is shown in Primary payment
column.
4. In the Cross rate field, enter the exchange rate multiplier between
the invoice currency and the payment currency, as of the settlement
date.

Reorganizing Open Transactions
You or a customer might pay one invoice on multiple dates or use multiple
payment methods, such as a check and cash. When this happens, you can
reorganize an invoice into several parts and assign a separate payment method to
each part. After reorganizing the invoice, you can settle each new invoice line
with a separate payment.
Consider the following information to reorganize customer transactions in
accounts receivable journals and vendor transactions in accounts payable
journals.
NOTE: You can also reorganize transactions in the general journal and in
payment journals.

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Financials I in Microsoft Dynamics® AX 2012
Procedure: Reorganizing Open Transactions
Perform the following steps to reorganize payments:
1. Click Accounts receivable, then click Common, click Customers,
click All customers, and then double-click on the customer.
2. Click the Collect tab, and then click Settle open transactions.
3. On the Overview tab, select the Mark check box for an invoice.
4. Click Transaction reorganizing.
5. Select whether to reorganize the transaction by percentage or by
amount.
6. On the Overview tab, create a new line for each new due date. For
each due date, enter the percentage or amount of the original
transaction that is due on that date.
7. To reorganize the original transaction by method of payment, you
can enter the same due date for each line. You will select the method
of payment in step 12.
8. Verify that the percentage or amount shown in the Remainder field
is 0.
9. Click Accept to transfer the reorganized transactions to the Open
transaction editing form.
10. Select a new transaction.
11. Select the Payment tab and select a method of payment and a
payment specification.
12. Repeat steps 11 and 12 for the remaining new transactions.
NOTE: Alternatively, you can reorganize the due dates by using a payment
schedule. Click the Payment schedule button, select a payment schedule and a
starting point, and click OK. The Payment schedule configuration key must be
selected to reorganize transactions according to a payment schedule.

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Chapter 12: Accounts Receivable Daily Procedures

Lab 12.3 - Edit Open Transactions
During this lab you can edit open transactions.
Scenario
You are an Accounts Receivable Coordinator at Contoso. Whale Wholesales
(Customer account 1301) has purchased some design consultancy from Contoso.
You need to create a free text invoice because the sale is not an inventory
transaction. The price agreed on for consulting 99.00 USD plus tax.
Two weeks later, a check for 108.90 USD arrives from the customer, so you need
to create a payment journal and post it for this amount. As part of the week
ending process, you now must check the Open transactions for all customers.
When you check the Whale Wholesales account, you notice that some
transactions are open. Mark them for payment and update the account. To ensure
that you have done this correctly, check the Closed transactions for Whale
Wholesales and verify the transactions in the Closed transactions form.

Challenge Yourself!
1. Create the Free Text Invoice. Use main account 401200.
2. Record the payment and apply the payment to the correct invoice by
using the Settle open transactions form.

Need a Little Help?
1. Create a Free text invoice.
2. Create and post a Payment journal.
3. Use the Open transactions editing functionality to mark the
transactions.
4. Use the Closed transactions editing functionality to view the
transactions.

Step by Step
Create the invoice:
1. Open the Free text invoice form by clicking Accounts receivable,
click Common, click Free text invoices, and then click All free text
invoices.
2. Click Free text invoice on the Action pane.
3. In the Customer account field, type 1301.
4. Click the Invoice lines tab.
5. In the Invoice line area type Design consultancy in the Description
field..

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Financials I in Microsoft Dynamics® AX 2012
6.
7.
8.
9.
10.
11.

Click the Main account arrow, and then click 401200.
Move to the Amount field, and type 99.00.
Click the Post button on the Action pane,
Click OK in the Post free text invoice form.
Close the Infolog form.
Close the Free text invoice form.

Create and post the Payment journal:
1. Click Accounts receivable, then click Journals, click Payments,
and then click Payment journal.
2. Click New to create a new journal.
3. In the Name field, select ArPay.
4. Click Lines.
5. In the Account field, type 1301.
6. Click the Description text arrow, select Payment, and move to the
next field.
7. In the Credit field, type 108.90.
8. Click the Post button, and then click Post.
9. Click Close to close the Infolog dialog box.
10. Close the form.
Settle the invoice:
1. Click Accounts receivable, then click Common, click Customers,
click All customers, and then double-click on the Customer
account 1301.
2. Click the Collect tab, and then click Settle open transactions.
3. Select the Mark check box for the invoice line just created.
4. Select the Mark check box for the payment line just created.
5. Click Update.
6. Close the form.
Verify the settlement:
1. Click Accounts receivable, then click Common, click Customers,
click All customers, and then double-click on the Customer
account 1301.
2. Click the Collect tab, and then click Closed transaction editing.
3. View the transactions in this form.
4. Close all the forms.

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Chapter 12: Accounts Receivable Daily Procedures

Placing an Accounts Receivable Transaction on Hold
To make data entry more flexible, you can enter a transaction on one date, and
then put it on hold to prevent users from posting it until a specified date. This
functionality is useful if you have an agreement with a customer about when a
transaction can be posted.
To prevent a transaction from being posted until a specified date, enter a release
date. The transaction is on hold until the release date occurs. You can edit and
save transactions that are on hold, but you cannot post them unless you first
remove the hold.

Procedure: Place an Accounts Receivable Transaction on
Hold
You can place an accounts receivable transaction on hold by using one of the
following paths:

Click Accounts receivable, click Common, click Free text
invoices, then click All Free Text Invoice Details

Click Accounts receivable, then click Journals, click Payments,
click Payment journal, and then click Lines

Click Accounts receivable, click Journals, click Payments, and
then click Payment transfers

Click Accounts receivable, click Journals, and then click Bill of
exchange. Open any Bill of Exchange journal, and then click Lines

Perform the following steps to place an accounts receivable transaction on hold:
1. In the Release date field, enter the date when the transaction is no
longer on hold and becomes available for posting.
2. To remove a hold on a transaction, you can clear the entry in this
field. Any user can clear the release date, regardless of who initially
entered it.

About Release Date for On Hold Transactions in Different
Time Zones
If your organization includes users who work across different time zones, the
date and time when a transaction is released from a hold is based on the time
zone of the user who most recently modified the Release date value. Because the
transactions release at midnight on the specified date in that user's time zone, the
actual date and time of the release adjust accordingly for users in other time
zones.
For example, on December 31 in New York, a user puts a transaction on hold at
noon Eastern Time, and enters a release date of January 1 (the next day). The
user sets up the transaction to be on hold until midnight Eastern Time, so the user
must wait 12 hours for the transaction to be released.

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Financials I in Microsoft Dynamics® AX 2012
Users in London, which is five hours ahead of New York, also must wait 12
hours. However, because the transaction was put on hold at 17:00 Greenwich
Mean Time on December 31, the transaction will not be released until 05:00
Greenwich Mean Time on January 1.
For users in Seattle, which is three hours behind New York, the transaction was
put on hold at 09:00 Pacific Time on December 31. When the transaction is
released 12 hours later (at 21:00 Pacific Time), it will still be December 31 for
these users.

Reverse Settlements
When you work with reverse settlements:

Use the Closed-transaction editing window to edit fully applied or
settled transactions that are in history.

Use reverse settlements if the bank does not honor a payment, or if
you used the wrong date or settlement amount.

An unsettled invoice is considered unpaid and is handled together
with collection letters.

Scenario
At Contoso, the Accounting Manager reviews and approves the Accounts
Receivable transactions. The Accounting Manager realizes that a customer
payment is settled with the wrong invoice and wants to reverse the settlement.

Procedure: Reverse Settlements
Perform the following steps to reverse a closed transaction:
1. Click Accounts receivable, then click Common, click Customers,
click All customers, and then double-click on the Customer
account.
2. Click the Collect tab, and then click Closed transaction editing.
3. Put the cursor on the line that contains the settlement to reverse.

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Chapter 12: Accounts Receivable Daily Procedures
4. Select the Mark field to reverse the invoice or payment to associate
with the settlement. The Mark field of the transaction that offsets the
transaction marked is selected automatically.
5. Click Reverse.

FIGURE 12.5 CLOSED TRANSACTION EDITING FORM

As soon as the changes that you want are made, the system changes the
settlement amount, makes the corrections, and changes the status. View the
history by clicking the Inquiries button, then clicking History. The History form
displays an overview of settlements for the current voucher.

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Financials I in Microsoft Dynamics® AX 2012

Lab 12.4 - Reverse a Settlement
During this lab you reverse a settlement.
Scenario
You are the Accounts Payable Coordinator at Contoso. You just realized that the
settlement posted to Whale Wholesales should have posted to customer account
1203- Pelican Wholesales, and you now must reverse the settlement to Customer
account 1301.

Challenge Yourself!
Use the Closed transactions editing function to reverse this settlement.

Need a Little Help?
1. Open the customer account.
2. Click the Collect tab, and then click Closed open transactions., to
reverse the payment posting error.

Step by Step
1. Click Accounts receivable, then click Common, click Customers,
click All customers, and then double-click on the Customer
account 1301.
2. Click the Collect tab, and then click Closed transaction editing.
3. Click the transaction line that recorded a payment for 108.90.
4. Select the Mark check box.
5. Click the Reverse button.
6. Close all the forms.

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Chapter 12: Accounts Receivable Daily Procedures

Reimburse a Customer
Consider the following when you work with the reimbursement feature:

Use it to repay customers who have credit amounts because of
overpayment or credit notes.

It transfers the balance to a vendor account.
The vendor account is assigned in the Customer form, otherwise a
one-time vendor account is created automatically.

The Accounts Payable Coordinator can create an ordinary payment
when the balance amount transfers to a vendor account.

Scenario
Contoso has a compensation policy that guarantees customers are reimbursed if
Contoso does not meet the service level described in customer agreements. For
example, if there is product damage or a delay in delivery, Contoso reimburses
the customer five percent of the invoice amount.

Procedure: Reimburse a Customer
Perform the following steps to reimburse a customer:
1. Click Accounts receivable, click Setup, and then click Accounts
receivable parameters.
2. Click General.
3. In the Minimum reimbursement field, enter a minimum amount for
reimbursement of customer overpayments. If the reimbursement
amount is equal to or greater than the value in the Minimum
reimbursement field, the balance transfers to the vendor account.
4. Close the Accounts receivable parameters form.
5. Click Accounts receivable, click Periodic, and then click
Reimbursement.
6. Click Select to reimburse specific customer accounts, and to specify
the customer accounts in the CustOverPayment query form. To
reimburse all customer accounts, click OK.
7. The credit amounts transfer to the vendor accounts of the customers
and are processed automatically as ordinary payments.
NOTE: If a customer does not have a vendor account, the system automatically
creates a one-time vendor account for the customer. You can set up vendor
accounts for customers by opening the clicking Customers form and entering
information in the Vendor account field.
8. Click Accounts receivable, then click Reports, click Transactions,
click Payments, and then click Reimbursement to view the
reimbursement transactions created.

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Financials I in Microsoft Dynamics® AX 2012

Lab 12.5 - Reimburse a Customer
During this lab you use customer reimbursements.
Scenario
Whale Wholesales purchases additional design consultancy services with the
same price as before - 99.00 USD, plus tax. As the Accounts Receivable
Administrator, you create a free text invoice for this order. The Accounts Payable
Coordinator at Whale Wholesales sends a check for 120.00 USD immediately
because he could not remember the exact amount of the consulting order, but
thought that the last order was for about 120.00 USD.
You receive the payment, and then create and post a payment journal. Again, as
part of the week-ending process, you edit open transactions, including the open
transactions for Whale Wholesales. You notice the overpayment, so after you
edit the open transactions, you generate reimbursements so that you can
reimburse your customers, including Whale Wholesales, for their overpayments.

Challenge Yourself!
1. Create the invoice for Whale Wholesales.
2. Post the payment to Whale Wholesales.
3. Generate the reimbursement for the overpayment.

Need a Little Help?
1. Change the Minimum reimbursement field for Accounts
receivable parameters to 5.00.
2. Create and post a Free text invoice for the sale. Use main account
401200.
3. Create and post a Payment journal for the payment.
4. Edit the open transactions.
5. Generate the reimbursements.

Step by Step
Set the Minimum reimbursement value:
1. From the Navigation pane, click Accounts receivable, click Setup,
and then click Accounts receivable parameters.
2. In the Minimum reimbursement field, type 5.00.
3. Close the form.

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In the Credit field. Close all other forms. Select the Mark check box for the invoice line just created. Click the Collect tab. and then type 99. 6. 12-37 . Click the Post button. type ARPay. and then move to the next field. type 120. click All customers. type Consulting. click Payments. and then click Payment journal. In the Customer account field. type 1301. and then double-click on the Customer account 1301. Click the Lines button. in the Invoice lines section. 3. Open the Free text invoice form by clicking Accounts receivable. then click Post. 2. Click New to create a new journal. Click OK. Click Close to close the Infolog box. In the Name field. 9. and then click All free text invoices.00. 4. 3. select Payment. In the Description field. Click the Description arrow. 3. Click the Post button. 8. 2. 7. In the Account field. Click Accounts receivable. Select the Mark check box for the payment line just created. then click Common. 4. 5. and then type 401200. 4. and then click Settle open transactions. 10. Click Update. 6. 8. 2. click Common. type 1301. 6. 5. Close all the forms. Close the form. click Customers. Click Free text invoice on the Action pane. 10. click Free text invoices. then click Journals. Click Close to close the Infolog form. Click the Main account arrow. 9. Settle the invoice and the payment: 1. Click Accounts receivable. Move to the Amount field.Chapter 12: Accounts Receivable Daily Procedures Create the Free text invoice: 1. 7. 5. Create and post the Payment journal: 1.

click Periodic. 2. and then click Reimbursement. Click Accounts receivable. In the Criteria field on the Customer account line. 3. Click the Select button. 12-38 . 6. Close all the forms. 4. 5.Financials I in Microsoft Dynamics® AX 2012 Record the reimbursement: 1. type 1301. Click OK and click OK again. Click Close to close the Infolog box.

auditors or managers frequently want to see reasons recorded for various transactions. you can set up parameters to require reason codes when transactions are reversed or canceled. select the check boxes next to one or more of the following Reason code requirements settings in the Accounts receivable parameters form (Accounts receivable > Setup > Accounts receivable parameters > General > Reason code requirements): • Require reasons for payment cancellations • Require reasons for return orders • Require reasons for transaction reversals 12-39 . Using standard reason codes instead of transaction text gives users guidelines on what codes to select from. and provides management and auditors the ability to analyze transaction history by specific reason. For example.Chapter 12: Accounts Receivable Daily Procedures Reason Codes Reason codes are standard codes that you can use in various transaction types or changes to field values to provide background data about the transaction. Reason codes can be used with: • Fixed assets • General ledger • Accounts payable • Accounts receivable • Bank Require Reason Codes in Accounts Receivable In Accounts receivable. You can view historical reasons in the Customer transactions and Voucher transactions forms. To require reason codes for receivable transactions. or when return orders are posted.

You can define print management original records. and conditional settings at the module. account. no setup is required. use defined settings for the original or copy records in print management. to print three copies of the sales order packing slip. 12-40 . the typed reason comment is not replaced. each with different footer text.Financials I in Microsoft Dynamics® AX 2012 Reason Codes in Accounts Receivable Transactions After you have created reason codes. and although you can set up default reason comments for each reason code. which printer to use. If you type a reason comment first and then select a reason code. copy records. Print Management Print management works with Accounts Receivable and Accounts Payable. The record that is used to print a document determines the footer text for the document. An original or copy record contains the information that print management uses to print the document. and the number of copies to print. If you select a reason code for a transaction. Reason comments are optional. the default comment that is set up in the Reasons form displays in the Reason comment field. so that you can control various activities that include the following: • Number of copies to produce • Multilingual document footer text • Print destination • Select report format How Print Management Works When you print documents such as invoices or packing lists. For example. or transaction level. The effective records are the records established in Print management that control the printed output of original and copy records. You can change the default reason comment. set up an original record and two copy records. select reasons for transactions or other entries in the following forms in the Accounts receivable module: • Cancel payment form • Free text invoice form • Transaction reversal form Reason Comments Enter a reason comment in the same forms where you select reason codes.

copy records. For example. if business needs require. When you generate the document during posting. a document prints only if a query for an associated conditional setting successfully returns results. account. or any combination of these three. the queries that are associated with the conditional settings are evaluated automatically in the order in which the settings appear in the Print Management setup form. An effective record can be inherited from a higher level in the hierarchy or created as a new record for the current level in the hierarchy. You can create up to 19 conditional settings for each original or copy record. Set Up Print Management at the Module Level You can define print management settings for each module.Chapter 12: Accounts Receivable Daily Procedures The print management setup information for each document type is defined in a hierarchical list that consists of modules. If you do not select this field. a document prints according to the specifications for the default setting. Setting up print management at the module level requires the least amount of setup and minimizes the maintenance work when settings change. If you select the Default setting check box in the Print management setup form. At each level of the hierarchy. it prints according to the effective original record and effective copy records. define print management original records. in addition to the default setting. You can create up to 99 original or copy records for every document type. accounts. you can create a query to print footer text in a different language for a specific customer. and number of identical copies to print. 12-41 . such as installation of a new printer. or it can override an inherited record that has the same name. and settings for any of the available document types. and transactions. Each original record or copy record can have up to 19 conditional settings associated with it. The setting that is associated with the first successful query is used to print the document. Each conditional setting has a related query. transaction. However. Select Preview/Print > Use print management to reprint a document that uses the effective print management settings. printer destination. You can set up a default setting for each original record or copy record that specifies the footer text. NOTE: You can use print management settings when you reprint documents. When you generate a document. settings for specific accounts or individual transactions can override module settings.

order in which the copies print. For the Customer and Remittance Copy. Contoso uses the same invoice for all types of customer orders. Simon finishes setting up all the documents for Contoso and then begins setting up Contoso Europe. Simon specifies that copies 1. the Project Manager at Contoso. printing order. 12-42 . Therefore. receives Simon's e-mail and verifies the print setup. 4. Simon enters the footer text for multiple languages so that all the text on the invoice prints with the language appropriate to the customer. Simon enters the footer information for each copy. Simon sets up the Sales order Packing Slip document next. which is as follows: • "Customer" for the first and second copy • "Remittance Copy" for the third copy • "Customer File" for the fourth copy. has collected information about the printing of sales invoices. For Warehouse A2. sort order. but also to the free text invoice and project invoice. thus. footer text. Contoso requires five copies. Simon specifies that the setup applies not only to the Sales order invoice. which is filed by Customer name • "Numeric File" for the fifth copy. and 5 must print to Arnie's printer. The appropriate document and copies print automatically based on the warehouse location for each Sales order line. which is filed in a numeric invoice file For each copy. printing order.Financials I in Microsoft Dynamics® AX 2012 Scenario Simon. sort order. he must set up copies for each warehouse. the customer invoice documents are unique. and printer destination. Because Contoso Europe has several warehouses. He sets up copy 2 to print to the Archive. He reviews the setup for all the documents and is satisfied that Simon set them up correctly. Prakash. Simon specifies the intended audience so that each document prints in the appropriate language. For Warehouse A1. he specifies four copies. and printer destination for each document. 3. When Simon finishes setting up the documents for all the companies. Simon sets up the footer text. Arnie in Accounts Receivable prints all the copies. sort order. and printer destination. he sends an e-mail to the implementation team stating that the setup is complete and requesting that each member verify the document setup for his or her particular department. he specifies three copies. the System Implementer. footer text. For this company.

original or copy records. a plus (+) icon in front of the document type indicates that a setup record exists. and conditional settings. When you expand the hierarchy list. To create a new record. The original or copy is denoted in the hierarchical list by the word Default. A new original or copy record is created and is displayed in the list automatically. click Setup. 3. 5. 4. To print footer text in other languages. click the Footer text lookup button and set up footer text for the additional languages. depending on the selected record. documents. right-click a document name and select New. In the right pane in the Original/copy field. Click Accounts Receivable. click Form Setup. click the Destination field's lookup button and then click Printer setup to select a destination. 2. make a selection to create either an original or copy record. 5. and click Print management button. By default. To set up the original or copy so that it does not print. enter up to 50 characters to include at the bottom of the document. This is a continuation of setting up Print management.Chapter 12: Accounts Receivable Daily Procedures Procedure: Set Up Print Management Perform the following steps to set up print management at the module level: 1. click OK to return to the Print management setup form. but you can create multiple copy records for each document. 4. the original or copy prints even if the queries for any applicable conditional settings do not return any results. enter a name in the Name field. click Form Setup. The displayed fields vary. enter the number of identical copies to print. To change the printer destination. In the Number of copies field. You can create only one original record for each document. If the Default setting check box is selected. number of copies. click Forms. the document prints at the specified printer destination when you click Printer setup from the posting form for the document. The fields in the right pane display the options that you can specify for each type of record. click Setup. In the Footer text field. Click Accounts Receivable. and then click the Print management button. click Forms. The hierarchical list in the left pane displays the module. or footer text. If there is an override of an original or copy record from a higher level in the print management hierarchy. 2. Perform the following steps to continue: 1. After you make changes. up to 99 copies. use this option to stop a document from printing instead of only changing the destination. If you are creating a copy. 3. 12-43 . select the Do not print check box.

expand the list for a document that is listed under the customer or vendor account.need credit established" as the footer and sets the print destination to the printer that belongs to Connie. In the left pane. He also enters a note that will print on Connie's copy that explains how much business they plan to conduct with the customer. Procedure: Set Up Print Management for an Account Perform the following steps to set up print management for a specific customer. Select an account. the Credit and Collections Manager. He enters "New Customer. and click All customers. the Accounts Receivable Coordinator. which prints a copy to Connie's printer. 3. Arnie sets up a document copy for the sales order. prospect. click Common. click Customers. This information will help Connie determine how much credit to grant to the customer. He must enter the order with the customer's payment terms so that the material will be sold and delivered on time. is entering a sales order for a new customer. Click Accounts receivable. Arnie posts and prints the sales order. Because this is the first time he is selling to the customer. This is the print management information to use for the customer or vendor. 4. the terms are cash on delivery. 2. To speed up establishing an open account with the customer. Any original or copy records are displayed.Financials I in Microsoft Dynamics® AX 2012 Scenario Arnie. 12-44 . unless you perform an override to make changes at the account level. or vendor account: 1. Click Setup and then click Print management. An icon with a blue arrow indicates that the original or copy record is inherited from the module level of the hierarchy.

Set Up Print Management for a Transaction Set up print management original or copy records and conditional settings for a transaction. create a new record. right-click an original or copy record and select Copy. o To override. right-click an original or copy record and select Override. A new record displays in the list. copy an inherited record. Give the copy a new name. expand the list of documents. A copy is displayed in the list. In the left pane of the Print management setup form. The icon changes to display a red X to indicate that the record is now an override record. such as a sales order. Refer to "Set up Print Management" for more information about the fields available in the Print Management setup form. 12-45 . or create a new setting. create a new record. right-click an original or copy record and select Copy. and you must select query information. 2. The copy must have a new name. This may be necessary if you use a different printer for a specific transaction. 6. Module Documents Path Accounts receivable Free text invoice Accounts receivable > Common > Free text invoices > All free text invoices > Print management 1. override an inherited record. Any original or copy records display. A new conditional setting displays in the list. or create a new conditional setting. Review the original or copy record information. override the inherited record. o To copy. copy an inherited record. right-click an original or copy record and select New.Chapter 12: Accounts Receivable Daily Procedures 5. If changes are necessary. If changes are necessary. The icon changes to display a red X to indicate that the record is now an override record. o To override. Review the original or copy record information. o To create a new original or copy record. o To create a new conditional setting. right-click a document type in the list and select New. Refer to the following table for the path that gives access to the print management setup. o To copy. right-click an original or copy record and select Override. A copy displays in the list. The conditional setting must have a description.

For example. right-click a document in the list and select New. right-click an original or copy record in the list and select New.Financials I in Microsoft Dynamics® AX 2012 o o To create a new original or copy record. A new record displays in the list. If you post sales orders for customer accounts 1102 and 1104 with the original or copy records and defined conditional setting. To create a new conditional setting. such as customer accounts 1101 through 1103. Example: Conditional Print Management Settings You can customize the document output by using conditional settings that apply based on the results of a query. 12-46 . one copy might be sufficient for most customers. the following results will occur. 3. and then define "Customer copy 2" as the footer text for the extra copy. A new conditional setting displays in the list. Refer to "Set up Print Management" for more information about the fields available in the Print Management setup form. complex queries or numerous conditional settings can affect posting performance. You must enter a description for the conditional setting and you must select query information. but an extra customer copy may be necessary for a certain set of customers. Customer Documents that print Customer 1102 Original Customer copy Customer copy 2 (because the customer account falls within the query results for the setting) Warehouse copy Customer 1104 Original Customer copy Warehouse copy NOTE: Although conditional settings and queries provide flexibility in the print management settings. Set up an additional copy record and a conditional setting with an associated query for the customer accounts that must have the additional copy printed.

Enter a Description for a conditional setting. reopening closed transactions. Refer to "Set up Print Management" for more information about available fields in the Print Management setup form. 4. You also can stop the customer account automatically at any step during the collection procedure. enter query information in the Criteria field. 6. 2.Setting form. In the Query . Decide whether the credit limit applies on the total of the sales order or if you need to control each sales order line separately.Chapter 12: Accounts Receivable Daily Procedures Procedure: Set Up Conditional Print Management Settings Perform the following steps to create a conditional print management setting: 1. You can view the customer invoice and print a copy of it directly from the customer account. Click the Select button. and entering renegotiated payment schedules directly into the system. delivered items. or even sales orders. 5. right-click an original or copy record and select New. In the left pane of the Print management setup form. Summary Accounts Receivable offers many advanced options including: • Extensive options for credit assessment and credit control • Flexible terms of payment and cash discount You can give each customer a unique credit limit. Apply the credit limits to only customer balances or to include uninvoiced. Accounts Receivable offers extensive options for editing open transactions. You can set up the system to stop delivery when you reach the credit limit or set up an automatic warning that you can overrule. 3. 12-47 . When the query is complete. click OK.

A ordinary invoice typically consists of which of the following? (Select all that apply) ( ) The company’s bank accounts ( ) A ledger account for the sale is indicated on each order line. ( ) True ( ) False 4. the customer must pay for the invoice. ( ) True ( ) False 2. and the customer balance is posted for each customer group. When the invoice is registered and approved. In settling open transactions. 1. What is the purpose of cross rate functionality? ( ) When the payment and the invoices are in different currencies ( ) When the payment and the invoices are in the same currencies ( ) When the customer and the invoices are in the same currencies ( ) When the customer needs to be reimbursed 12-48 . What does the payment proposal function do? (Select all that apply) ( ) Searches for due payment lines ( ) Searches for vendors ( ) Searches for payment lines with a maximum date for receiving a cash discount ( ) Checks open and approved customer transactions 5. you can do which of the following? (Select all that apply) ( ) Create a payment proposal ( ) Edit unapplied transactions ( ) Create a free text invoice ( ) Make changes in transactions for customers 6. You can create inventory transactions that use item quantities by using Free text invoices. unless specified otherwise ( ) A sales order that makes the inventory transactions ( ) The item number that specifies and posts in the ledger 3.Financials I in Microsoft Dynamics® AX 2012 Test Your Knowledge Test your knowledge with the following questions.

If the invoice and payment are not settled when you create the payment. Which of the following activities can not be controlled with print management settings? ( ) Number of copies to produce ( ) Page orientation ( ) Multilingual document footer text ( ) Print destination 12-49 . account. or any combination of these three 11. How are print management settings defined? ( ) For each module ( ) For each account ( ) For each transaction ( ) For each module. where can these be settled? ( ) Free text invoice ( ) Payment proposals ( ) In the Settle open transactions form ( ) In the Reverse settlements function 8. transaction. Is it possible to split open transactions? ( ) Yes ( ) No 9.Chapter 12: Accounts Receivable Daily Procedures 7. Can a settlement be reversed if the bank does not honor a payment and it has been closed? ( ) Yes ( ) No 10.

Financials I in Microsoft Dynamics® AX 2012 Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1. 2. 12-50 . 3.

( ) True (•) False 4. you can do which of the following? (Select all that apply) ( ) Create a payment proposal (√) Edit unapplied transactions ( ) Create a free text invoice (√) Make changes in transactions for customers 12-51 .Chapter 12: Accounts Receivable Daily Procedures Solutions Test Your Knowledge 1. unless specified otherwise (√) A sales order that makes the inventory transactions (√) The item number that specifies and posts in the ledger 3. and the customer balance is posted for each customer group. When the invoice is registered and approved. In settling open transactions. What does the payment proposal function do? (Select all that apply) (√) Searches for due payment lines ( ) Searches for vendors (√) Searches for payment lines with a maximum date for receiving a cash discount (√) Checks open and approved customer transactions 5. You can create inventory transactions that use item quantities by using Free text invoices. the customer must pay for the invoice. A ordinary invoice typically consists of which of the following? (Select all that apply) ( ) The company’s bank accounts ( ) A ledger account for the sale is indicated on each order line. (•) True ( ) False 2.

What is the purpose of cross rate functionality? (•) When the payment and the invoices are in different currencies ( ) When the payment and the invoices are in the same currencies ( ) When the customer and the invoices are in the same currencies ( ) When the customer needs to be reimbursed 7. or any combination of these three 11. where can these be settled? ( ) Free text invoice ( ) Payment proposals (•) In the Settle open transactions form ( ) In the Reverse settlements function 8.Financials I in Microsoft Dynamics® AX 2012 6. Can a settlement be reversed if the bank does not honor a payment and it has been closed? (•) Yes ( ) No 10. Which of the following activities can not be controlled with print management settings? ( ) Number of copies to produce (•) Page orientation ( ) Multilingual document footer text ( ) Print destination 12-52 . account. transaction. How are print management settings defined? ( ) For each module ( ) For each account ( ) For each transaction (•) For each module. Is it possible to split open transactions? (•) Yes ( ) No 9. If the invoice and payment are not settled when you create the payment.