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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

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Introduction

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

2. 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.

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

you must first clear the Reference currency for triangulation check box on the EUR record in the Currencies form. you can select the Reference currency for triangulation on the desired currency. then maintaining currencies and their corresponding exchange rate is essential. FIGURE 1.1 CURRENCIES FORM Only one currency can represent the Triangulation currency. Then. Multi-currency functionality may be used if your company does business in more than one currency. Currency Setup In Microsoft Dynamics AX.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. the EUR currency is selected as the Triangulation currency. all currencies are provided by default. By default. click Setup. To change the Triangulation currency. If your organization has multiple legal entities and transacts in multiple currencies. To view currencies click General ledger. click Currency. and then click Currencies. 1-2 . The currencies are loaded the first time a user opens the General ledger parameters form.

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

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

These have a Rounding option as well as a Rounding method. amounts on transactions are rounded to the nearest unit to 0.00. Purchase orders. such as 0. 1-5 . 4. NOTE: The value in the General round-off field affects all values in all modules. 2. 2. Rounding Option . Click the Reset button to return to the ledger accounting currency.01. Procedure: Set Rounding Options Perform the following steps to set the Rounding options for each currency. Rounding Method . 1. Perform the following steps to return to the default company currency: 1. and reports that originally displayed amounts in the company's currency now display the currency selected. Round the sums according to a fixed unit for general transaction amounts For example. and Prices.10 or 1.Chapter 1: General Ledger Setup The Currency converter form will automatically close. 3. • Rounding-up – round up all numbers. select a currency. All the forms. Round sums for Sales orders.Enter the unit for rounding amounts. Tab to the Rounding Rules section. Specify the general unit for rounding in the General roundoff field. From the Currencies form. and the Currency field on the status bar displays the new currency. inquiries. • Downward – round down all numbers.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. Open the Currency converter form.

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

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

S. 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. 9. 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. Select the date range in by entering the From date and a To Date in the appropriate fields. It is possible to add multiple exchange rate dates for a single currency pair by clicking the Add button. If the field is set to one hundred units. if you already have USD to EUR set up.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. By default. the system will first look for the exact currency pair in the rate type used by the ledger: EUR to USD. you cannot create a EUR to USD currency pair for the same exchange rate type. This date range is used to filter the display of the exchange rates in the grid. Therefore. 5. dollars equal one hundred Euros. If not found. 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. the system will then look for USD to EUR and calculate the reciprocal rate. if the "From" currency is U.S. Define the Quotation unit. 8. the exchange rate should specify how many U. the exchange rate should specify the equivalent of one hundred units of the foreign currency. dollars and the "To" currency is Euro. 6. Typically the system is based on either one unit or one hundred units.

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

FIGURE 1.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 1.6 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.

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

o Open the Currency revaluation accounts form. To set up ZAR for currency conversion. Click General ledger. As of April 1. 3. Transactions for this currency should be tracked to two decimal places.35 USD equals 100 ZAR. 3. After some research. Set up the exchange rate for the ZAR currency. 2. click Setup. click Currency. Field Value Realized Loss 801300 Realized Profit 801500 Unrealized Loss 801400 Unrealized Profit 801600 Challenge Yourself! 1. 12. Highlight the Currency ZAR. select 100 in the Quotation unit field Step by Step Perform the following steps to set up the currency rounding options: 1. CEU recently gained a new customer located in South Africa and uses the South African Rand (ZAR).Financials I in Microsoft Dynamics® AX 2012 Lab 1. Set up the exchange rate. 2. and set appropriate main accounts. Convert the ZAR Quotation unit to 100.1 . Need a Little Help? 1. Ken has found that the following posting accounts should be set for the new currency.Set up a Currency Exchange Rate Scenario Ken is the Controller for Contoso Entertainment USA (CEU). To set up the currency and specify the posting accounts and rounding options. 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. and then click Currencies. 2. 1-12 . CEU uses US dollars as the company's default currency. 2011.

Select 100 in the Quotation unit field. Every currency requires one exchange rate entry with a blank date. 2. Click Close to close the form. In the Unrealized gain line. Click the Rounding rules FastTab and in the General rounding rule field. 3. and then click Currency exchange rates. 1. and then click Currency revaluation accounts. enter . Highlight the Currency ZAR. Click Close to close the form. enter 801400 in the Main account field. 5.01. Select ceu as the Ledger. click Setup. Click General ledger. In the Unrealized loss line. Click the Add button. 4. 8. Select 04/01/11. In the Realized gain line. In the Exchange rate type field. enter 12. 6. enter 801500 in the Main account field. 4. 3. Click Close to close the form. 1-13 . In the Exchange rate field. 2. 1. In the Start Date field. 5. 6. 2. 7. Perform the following steps to set up the currency posting accounts: 1.Chapter 1: General Ledger Setup 3. click the calendar icon. Click General ledger. select Default in the drop down list. Perform the following steps to set up the exchange rate. In the Realized loss line. 4. click Currency. click Setup. enter 801600 in the Main account field. enter 801300 in the Main account field. click Currency.3500 Perform the following steps to set up ZAR for currency conversion.

• Reduces the amount of setup required for each legal entity as it is possible to use the same fiscal calendar for multiple legal entities. a new fiscal year must be divided into periods as transactions cannot post unless a period is created for the posting date. For example: Fixed assets may require two calendars one for auditing purposes and one for tax purposes. Having multiple calendars allows you to run parallel depreciations. Before posting transactions. 1-14 . The benefits of sharing fiscal calendars include: • Supporting multiple fiscal calendars for each legal entity. Closing of accounting periods allows the user to close the sub-ledger to make sure that no additional transactions are recorded. Accounting periods are used for reporting.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. NOTE: Microsoft Dynamics AX posts transactions according to dates as opposed to periods.

the Accounting Manager. 3. 7. This description may print on reports. Procedure: Create Shared Fiscal Calendar Perform the following steps to create a new fiscal calendar: 1. 1-15 . Enter the Length of the period and the Unit of the periods. wants to define calendars for different purposes and share them across different ledgers without having to create them in each legal entity. Click the Create button. Click General ledger. Enter a Fiscal year name of the initial fiscal year to be associated with this fiscal calendar. Enter the name of the calendar to be created in the Calendar field. 5. 6. and then click Fiscal Calendar. 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. Enter a description of the fiscal calendar in the Description field. 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. 2. Click the New fiscal calendar button. 8. 4.Chapter 1: General Ledger Setup Scenario Phyllis. click Setup.

7 FISCAL CALENDAR YEAR FORM Review New Periods When you create a new fiscal year. 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.

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

which begins on July 1. Click Close to close the form. . Enter FIS-2012 in the Calendar field. enter 7/1/2011. must create a new fiscal year. click the arrow to select Months. Step by Step 1. CEU has a fiscal year that begins on July 1. 9. In the End of fiscal year field. Select the period length of one month. In the Start of fiscal year field.Financials I in Microsoft Dynamics® AX 2012 Lab 1. 5.2 . 2. 2011. 8. 1-18 Click General ledger. and then click Fiscal Calendar. 2. Enter 2012 in the Fiscal year name field. 11. enter 6/30/2012. In the Length of period field. and is divided into onemonth periods. 10. 6. 7. enter 1. In the Fiscal calendars form. In the Unit field. the Controller for Contoso Entertainment USA (CEU). Need a Little Help? 1. Click the Create button to create the year. Enter Fiscal Year 2012 in the Description field. Challenge Yourself! Create the fiscal year calendar for 2012. click the New fiscal calendar button to create the fiscal year for 2012. Click the New fiscal calendar button. 3. click Setup.Create Periods in a New Fiscal Year Scenario Ken. 4.

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

in the Description field. FIGURE 1. From the Date intervals form. click the General tab. 1. Specify the starting point of the interval in the Start/End field. 2.8 DATE INTERVALS FORM Procedure: Create Date Intervals . This data is used with the value in the Before list to set the starting point of the date interval.Start/End Perform the following steps to further define the date interval start and end dates.Financials I in Microsoft Dynamics® AX 2012 4. Enter a short description 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 . Select the time unit that is the basis of the calculation in the Before list. 3.

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

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

auditors or managers frequently want to see reasons recorded for various transactions such as reversals. Online periodic Perform the following steps to create a General ledger reason code: 1. 1-23 . For example. Enter a unique Reason Code as identification.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. Click the New button to create a new reason. To access the Reasons form. click General Ledger. When you use standard reason codes instead of transaction text. and then click Ledger reasons. 3. you have guidelines for which codes to select from. 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. click Setup. 2. Standard reason codes also allow management and auditors to analyze transaction history by specific reason.

and is unable to be used. Procedure: Delete a Reason Code Perform the following steps to delete a reason code. Enter a Default Comment for the reason code. To access the Reasons form. click Setup. Clear the Ledger check box. To access the Reasons form.Financials I in Microsoft Dynamics® AX 2012 4.9 LEDGER REASONS FORM Procedure: Modify a Reason Code Reason codes can be modified at any time. 1-24 . and then click Ledger reasons. Select the Reason Code to modify. 1. the reason code is no longer displayed in the General ledger transaction entry forms. 3. click Setup. Select the Reason Code to be deleted. You can change the default reason comment. The comment entered here is displayed as the default comment when you select this reason in transactions. click General Ledger. and then click Ledger reasons. 2. Perform the following steps to modify a reason code: 1. 4. The Default comment and Account types can be changed. FIGURE 1. click General Ledger. 2. Modify the Default Comment for the reason code. As soon as the Ledger check box is cleared.

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

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

Click the Financial dimension values button in the Financial dimensions form to enter detailed values. in which you can enter text to be displayed in different languages for the main account. 10. Click Main account translation to open the Text translation form.Chapter 1: General Ledger Setup 9. in which you can enter text to be displayed in different languages for the selected financial dimension. FIGURE 1. Click the Translations button to open the Text translation form. NOTE: Depending on your selection in the Select the level of dimension value to display field. You can set options for dimension values that can be shared between a chart of accounts and a legal entity. You also can set specific options for dimension values based on the chart of accounts or legal entity specified. 1-27 . 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.10 FINANCIAL DIMENSIONS Financial Dimension Value Details Use the Dimension Values Detail form to set up the details for financial dimension values.

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

the balance for this financial dimension will be printed in 2 columns. 1-29 . the minus sign in front of revenue on the report is not displayed. Companies If Companies is selected in the Select the level of dimension value to display field. Financial Statement Formatting and Cost accounting tabs become available. Bold Select to print the selected financial dimension in bold type on the financial statement. for a definition that shows the current balance. Underline amount Select to underline the amounts when the selected financial dimension is printed on the financial statement. 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. When this check box is selected. This field is available only when Shared value is selected in the Select the level of dimension value to display field. 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. if you enter a 2 in the Number of columns field in the Financial statement form. Underline text Select to underline the text when the selected financial dimension is printed on the financial statement. Column Select the column number that the financial dimension is printed to when the financial statement is printed. Typically. Italics Select to print the selected financial dimension in italic type on the financial statement. Line above Select to precede the selected financial dimension with a blank line on the printout of 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. Line below Select to follow the selected financial dimension with a blank line on the printout of the financial statement. You can define how many columns will be used to print a single column definition. For example.

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. 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. . The information in the template will be used to display default financial dimension values when you distribute source document amounts. Blocked for distribution Select this check box to prevent a user from entering a distribution in Cost accounting for this financial dimension. then Financial dimensions. then Financial dimension default templates. Financial Dimension Templates Dimension templates may be used for common patterns used to distribute source document amounts. Select General Ledger. Financial dimensions Select the dimension to use with the percentage to apply to the distribution. Template percentages and dimension values Enter the percentage to apply to the distribution. click on Setup. Blocked for allocation Select this check box to prevent a user from entering an allocation in Cost accounting for this financial dimension. Use the following table to enter the appropriate information: 1-30 Field Description Template ID Enter an identification for the template.

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

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

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

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

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

General Perform the following steps to complete the setup of allocation rule general settings. Review or change settings from the Overview tab in the Identification and Administration sections. These dictate what fields are available in the rule tabs. click Posting. select the General tab. Click the New button to create a new rule. Select the Active check box. Enter the Rule as identification.12 LEDGER ALLOCATION RULE FORM Procedure: Create a Ledger Allocation Rule .Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Ledger Allocation Rule Perform the following steps to create an allocation rule: 1. 2. if the allocation rule is available to be processed. 3. View the Date last run. 1-36 . Enter a Description of the rule. 1. 5. click Setup. Click General ledger. Optionally select the Effective start date and Effective end date for the rule. From the Ledger allocation rule form. which displays the date when a user last processed the allocation rule and created distributions. 6. 2. FIGURE 1. 4. 3. and then click Ledger allocation rule.

select an arithmetic operation to apply to the source value in the Mathematical operation field. 1-37 . Select the Allocation method: o Basis: Defines how and in what proportion the source amounts are distributed to the various destination lines. For example. o Fixed weight: Takes criteria defined in the allocation source and uses a fixed weight amount that the user entered.Chapter 1: General Ledger Setup 4. o Fixed percentage: Takes criteria defined in the allocation source and uses a fixed percentage amount that the user entered. to determine the allocation amount for the destination. enter a value in the Fixed value field. FIGURE 1.13 LEDGER ALLOCATION RULE FORM. If Ledger is selected in the Data source field. allocation based on revenue dollars. 8. select the source of the amount to allocate: o Ledger o Fixed value 7. In the Data source field. o Spread even: Takes criteria defined in the allocation source and disperses the amount evenly across the destination distribution lines. to determine the allocation amount for the destination. Select the Intercompany rule check box if the allocation rule involves being processed among multiple companies. 5. GENERAL TAB 6. If Fixed value is selected in the Data source field. is based on each department's sales in proportion to total departmental sales. in which the cost of corporate advertising expense is shared across all departments.

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

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

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

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

click Setup. and then click Process allocation request. Select the date to include ledger amounts for allocation in the As of date field. 4. 1-42 . where applicable.Financials I in Microsoft Dynamics® AX 2012 3. Click OK to print. o Select Stop to create an error that indicates when a zero source amount is selected and stops the allocation process. Perform the following steps to use the Process allocation request form to create an allocation journal. 2. o Select Process to create destination distributions. If the results are accurate. This date corresponds with the Date interval on the allocation rule. select General ledger. To set up an allocation journal. you can process it and either preview or post an allocation journal. Procedure: Process a Ledger Allocation Request As soon as an allocation rule is created. click Journals. click Periodic.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. 1. Click General ledger. Phyllis posts the entry. Select the date to post the allocation journal to the general ledger in the GL posting date field. Select the action to occur if the allocation process generates a zero source amount. 5. Select an allocation rule. 3. and then click Journal names. FIGURE 1.

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

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

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

1-47 . 3. 2.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.

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? 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. 5. When you change the display currency. it affects all users. 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. ( ) True (•) False 3. What are the parts of an allocation rule? (√) General (√) Source (√) Destination (√) Offset 6. 2. by referring to balances in other account-dimensions? (•) Basis ( ) Fixed percentage ( ) Fixed weight ( ) Spread even 1-48 .Financials I in Microsoft Dynamics® AX 2012 Solutions 1. Which allocation method defines how and in what proportion the source amounts are distributed to the various destination lines.

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

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

To link an account category to a main account. select the Closed check box in the Main account categories form. After a Main account category is closed. it cannot be linked to main accounts. Select a Main account type to associate with the account category. a warning message listing the linked main accounts is displayed. click the Link main accounts button. 2-3 . including any of the default main account categories. 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. If you try to close a Main account category that is already linked to a main account.Chapter 2: Chart of Accounts Setup 4.1 MAIN ACCOUNT CATEGORIES FORM Edit Main Account Categories The Main account category. 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. Or. Close Main Account Categories To inactivate a main account category." FIGURE 2. refer to "Create a New Account . For more information. link a Main account category to an account from the Main account details form.Main Account Category. Description. 5.

Decide whether operating accounts must come before balance accounts or the other way around. None of the default Ledger account categories can be deleted. 2-4 . and balance accounts. as long as it is not assigned for use with Purchase Requisitions in the Accounts Payable Parameters form. These structures determine the valid main account and financial dimension value combinations for the chart. 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. Chart of Accounts The Chart of Accounts (COA) is the structured list of an organization's general ledger accounts.Financials I in Microsoft Dynamics® AX 2012 Delete Main Account Categories A user-defined Main account category can be deleted. The COA will provide the main accounts for the COA plus the account structures in use for the COA. costs. 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. additional main accounts can be created between the existing main accounts. Before you create a company's Chart of Accounts.

FIGURE 2. Also.2 CHART OF ACCOUNTS FORM 2-5 . the ability to inactivate financial dimension values for a specific company.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. 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.

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

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

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

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

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

The system uses all lines where the dimension is empty or where it matches the given line. Expand the Source financial dimension criteria FastTab to select the financial dimension values to allocate from. 2-11 . To copy an existing allocation profile from another account to the selected account click the Copy button. 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 . 2. Expand the Destination ledger account FastTab to select the financial dimension values to allocate to. and tax code validation information for each main account.the system verifies that the field is completed for posting. 3. Limit the allocation from the selected dimensions by using the drop down list for the Cost center. • List . • Table .Validation Options There are four posting validation settings that can be defined for each account. Main Account Setup Information Set up currency. Department. 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. This is the default setting. user. • To be filled in . The value is not checked. For example.Chapter 2: Chart of Accounts Setup Procedure: Select Allocation Criteria Perform the following steps to select allocation criteria: 1.the field is not validated at the time of posting. posting.the system verifies that the field is completed with one of the values that are defined on the Validation list button. and the Expense purposes. 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 .

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

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

2-14 .Financials I in Microsoft Dynamics® AX 2012 NOTE: This form can also be accessed from the Chart of accounts form. you can easily track travel expense by each airline defined. 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". you want to track the travel expense account by the airlines. FIGURE 2. For example.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. and "Airline 3". Advance rule structures provide the financial dimension combinations that are valid for the advanced rule. Now. "Airline 2".

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

7. and then select the appropriate options to create the criteria. 2-16 . you must activate the account structure by clicking Activate on the Action Pane in the Configure account structures form. the account structure must be in a draft status. and click OK. Only active advanced rule structures are displayed.Financials I in Microsoft Dynamics® AX 2012 16. FIGURE 2. Enter an Advanced rule ID and Name. 2. NOTE: To add or edit advanced rules for an account structure. click Advanced rule. 3. click Add. To activate the advanced rule. Click OK to save and close the form. Click the Add filter button to add criteria. 18.5 ADVANCE RULES Procedure: Create Advance Rules Perform the following steps to create advanced rules: 1. Click New. 4. in the Setup group. Select the advanced rule structure to use when the advanced rule is in use. If the account structure is active. Optionally. On the Advanced rule structures FastTab. You might have to scroll down to view all of the criteria. 9. 5. Click Activate to save the changes and make them effective in the ledger. 8. you will receive a message and can change the status of the account structure from active to draft. and you select to create a new advanced rule or edit an existing advanced rule. 6. On the Action Pane. select the Allow blanks check box to allow blank values for the segment in the advanced rule you are defining. Select the account structure to apply the advanced rule. Click General ledger > Setup > Chart of accounts > Configure account structures. 17.

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

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

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

follow these steps: 1. you cannot select Closed unless the previous period also has a status of closed. • Closed . 2.7 LEDGER CALENDAR Procedure: Setting Period Statuses To view and control the period status. If a period has a status of Open.Financials I in Microsoft Dynamics® AX 2012 3.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. FIGURE 2. 4. and to select which users can post accounting transactions to specific periods. This status may be changed to Open or Closed. Status . Click General ledger. NOTE: A closed period cannot be re opened or put it on hold. Select the calendar from the drop down menu in the Fiscal Calendar field 3. 2-20 . and then click Ledger.Accounting transactions cannot be recorded in the period. Use the fields on this form to view period information and change the status of the periods.The three available statuses include: • Open . Expand the calendar tree in the navigation pane and click on the desired period 5. Select a fiscal year in the left pane. click Setup. Use the drop down menu under the Period status field to set the period status. The details for the selected year are displayed in the right pane.Accounting transactions can be recorded in this period • On hold .

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

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

2. 6. 2-23 . 4. 5. Repairs and Maintenance Expense.00 9. Need a Little Help? 1. 2. Click the Legal entity icon and select CEU. open the Allocation rules form by clicking the Allocation terms button. Allocate 50 percent from the Administration department to the Professional Services department. On the Source Dimension FastTab. and then click Main accounts. 3. 3. Expand the General FastTab and select the Allocation check box. and then use the arrow to select OU_4569 (Administration). click Common. click General Ledger. Double-click on the Main account 600200 in the Main accounts list page. select Specific. Step by Step 1. In the Percentage field enter 50. 12. 11. On the Navigation Pane. On the Destination ledger account FastTab. Close the Allocation form. After locating account 600200. Set the Allocation rules terms according to the information in the scenario. must be allocated between departments based on dimensions. select Companies. Challenge Yourself! Use the information in the scenario to enter the allocation terms for account 600200. 8. use the arrow to select OU_2562 (Professional Services). 10.Chapter 2: Chart of Accounts Setup Lab 2. 7. Repair and Maintenance Expense. In the Department drop down list. Click the Allocation terms button. Open the Main accounts form.Account Allocation Terms Scenario At Contoso Entertainment USA (CEU). Click the Edit button. In the Select level of main accounts to display field. entries posted to account 600200. In the Department field.2 . In the To account field select 600200.

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. 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 . Click Create and the system automatically creates the most common system account types when you set up the system accounts for the first time. Click General ledger. through system accounts. posting profiles in the Accounts Receivable and Accounts Payable modules. The appropriate account for that kind of posting must be set up. Create Accounts for Automatic Transactions Perform the following steps to set up automatic transaction accounts: 1. when an invoice is posted where a discount is given. 2. For example. click Setup.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. click Posting. this amount is posted automatically to an account for discounts. for example. • There are other automatic accounts set up in each module. • The posting set up is discussed when each module is introduced. and then click Accounts for automatic transactions.

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

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

click Reports.9 VOUCHER INQUIRY View Account Transactions When you view account transactions. click Inquiries. click Reports. click General Ledger. consider the following: • You can use the Ledger transaction list to view a list of all posted transactions on the current account. View Account Balances To view a quick inquiry of ledger account balances in the system use the Balance list. • 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. Check the specific vouchers by clicking the transactions button.Chapter 2: Chart of Accounts Setup To access the Audit Trail form. If a journal that consists of several vouchers is posted. click Transactions. click General Ledger. click and then click Balance list. To open the Account Transactions form. FIGURE 2. • To correct an entry. It is also possible to view balances from the Main account list page and the Trial balance list page. and then click Audit Trail. 2-27 . click General Ledger. To open the Balance list. and then click Ledger transaction List. make a transfer which then appears in the form. only one line is created in the audit trail.

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

Can using posting types reduce the risk of selecting a wrong account when you set up posting profiles? ( ) Yes ( ) No 2-29 . Before creating a company's Chart of Accounts. 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. what considerations should be discussed? 3.Chapter 2: Chart of Accounts Setup Test Your Knowledge Test your knowledge with the following questions. 1.

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 .Financials I in Microsoft Dynamics® AX 2012 5. 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.

3. 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. 2.

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 . Can using posting types reduce the risk of selecting a wrong account when you set up posting profiles? (•) Yes ( ) No 5. Is it possible to have the same chart of accounts used across multiple companies? (•) Yes ( ) No 2. Is the purpose of account allocation to use for realized transactions and budget transactions? (•) Yes ( ) No 4.Financials I in Microsoft Dynamics® AX 2012 Solutions Test Your Knowledge 1. 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. 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.

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. • Set up balance control accounts. and texts. • Set up General Ledger parameters. • Create journal texts. 3-1 . You can use journals quickly and efficiently when you set them up correctly. review the setup procedures for journals in this course. • Set up journal 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. controls.

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

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. click General Ledger. click Setup. click Journals. 3-3 . Enter a recognizable journal name in the Name field. and then click Journal names. To access the Journal names form. When you create new daily journals in General ledger > Journals > Journal Names. 3. 2. Enter a description of the journal that clearly describes the purpose of the journal in the Description field.Overview Perform the following steps to set up journal names: 1. Procedure: Create Journal Names . the journal names with the journal type of Daily appear in the Name list.

Select a journal from the Journal names form. For example.Approval The user responsible for journal routines sets up the approval system for each journal where approvals will be used. 2. FIGURE 3. Manual journal approval is available for all journals in Microsoft Dynamics AX Perform the following steps to define approval options for a journal: 1. The approval system enables journal transactions to be reported as one of the following: o Ready o Approved o Rejected. select the Active check box if the journal must be approved before it is invoiced. Select the type of journal in the Journal type list. 3-4 . 3.1 JOURNAL NAMES FORM Procedure: Create Journal Names . the customer payment Journal type is used only for customer payment journals.Financials I in Microsoft Dynamics® AX 2012 4. Specify the users who can approve the journal in the Approve list. NOTE: You can define approval options in the Journal names form on the Overview tab. and then click the General tab. The journal type determines what the journal is used for and in which module it is available. In the Approval area.

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

select that a daily journal always must have a bank account as the default offset account. For example. For example. when recording a vendor payment and specifying Vendor in Account type. 4. These are part of the periodic financial reporting. or Tax. a vendor invoice number that generated the voucher will appear on the journal lines. For example. The Tax layer is where you record transactions that impact tax reporting. the order is 1.2. 3. offset posting occurs in the vendor account. 3. Select a default offset account for the journal in the Offset account list. 3-6 . click the General FastTab. posting occurs automatically in the vendor summary account in General Ledger.8. If the Continuous check box is selected in the Number sequences form on the General tab. Specify the number of the external document in the Document field. where it can be associated with a document date. Operations. In the Posting layer. In the Journal names form.4 and not 1. For example. Select the Fixed offset account check box to prevent the default offset account from being changed. Select the Number allocation at posting check box to start voucher number allocation in journals at posting.Financials I in Microsoft Dynamics® AX 2012 4.3. and Tax Current is the default layer that is used the same as Operations for entry of transactions. Procedure: Create Journal Names . NOTE: The following posting layers can be used: Current. specify if the transactions in this journal name are Current. Set up information about journal posting details in the Posting area.Offset Account Proposal Perform the following steps to define the offset account for the journal: 1. the voucher number is generated automatically from the previous voucher number without gaps in the voucher numbers. In the Offset account proposal area. 5. In the Journal names form. At the same time. Operations. specify the default offset account type for the journal name in the Account type list. click Common. and then click Number Sequences. Procedure: Create Journal Names .Posting Perform the following steps to set up information about posting: 1. The default value is Current. click the General FastTab. 2. 2.3. NOTE: In the Organization Administration Module.

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

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

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

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

After Phyllis has set up the balance control accounts. The expected balance includes posted and unposted journals. FIGURE 3. the Accounting Manager at Contoso. April. These include bank accounts and petty cash accounts. memorable name in the Search name field. 3-11 . For example. 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. The search name frequently resembles the value in the Identification field. the Accounts Payable Coordinator. You are not required to set up balance control accounts to work with Microsoft Dynamics AX.Chapter 3: Journal Setup 4. verifies the expected balance of the bank account to make sure the balance is sufficient to pay invoices. Enter a short. Scenario Phyllis.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. wants to track the current and expected balance of liquidity accounts better.

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

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

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

Click the New button to add a line. Define a journal control for Company ceu. In the Name field. must set up two journals in Microsoft Dynamics AX. In Journal type. 1. In the Description field. 3. 2. 3-15 . 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. Set up the Vendor Invoice journal. The table provides additional information about the journals. use the arrow to select Daily.Set Up Journals Scenario Ken. Set up journal description for the Rent Journal. Step by Step Perform the following steps to set up the Vendor Invoice journal. click Journals. enter Day3. Set up the Rent Journal. Click General ledger.1 . and then click Journal names. enter Vendor Invoice. 4. Need a Little Help? 1. the Controller at Contoso. 2.Chapter 3: Journal Setup Lab 3. 5. 3. click Setup.

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

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

What is the purpose of using Balance Control Accounts? 3-18 .Financials I in Microsoft Dynamics® AX 2012 Test Your Knowledge Test your knowledge with the following questions. 1. What is the purpose of the Blocking function when setting up Journals? 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.

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

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. 3. 3-20 .

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

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

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

Click General ledger. Click the New button to create a new journal in the General journal form. or all transactions display in the form. and then click General Journal. but you can overwrite it. Perform the following steps to create a general journal entry. posted. The description from the Journal names form is inserted automatically. select Journals. Enter the name of the journal in the Name list. 4-2 . 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. or select the name from the journal name list for the general journal type. The journal number is inserted automatically from the voucher series set up in the Journal names form.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. 1. 3. and the description comes from the Journal names form. The Journal batch number is created automatically from the number sequence set up in the General ledger parameters form. 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. 2. The Show list determines whether only open.

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

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

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

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

Use the information in the following table to enter the transaction.Chapter 4: General Ledger Daily Procedures Lab 4. 2011 Contoso paid 6. Scenario Ken is the Controller for Contoso. 4-7 . post the journal. NOTE: Normal accounting procedures would not disburse a large payment from a Petty Cash account. 3. Enter a journal for the prepaid rent expense. Help Ken record the activity in the prepaid rent expense account in Microsoft Dynamics AX. After you enter the transaction information. Need a Little Help? 1. Click the Post button on the Journal voucher form. 2.1 . Select the desired transaction description. 2. On June 30.000.00 USD for audio-visual equipment. Select the journal name. 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.Daily Transactions This lab will demonstrate creating and posting transactions in a General journal. This account (number 110180) has been chosen to simplify this lab procedure.

10. 9. enter AV Equipment.Financials I in Microsoft Dynamics® AX 2012 Step by Step Create the Journal: 1. 3. enter 06/30/2011. 7. In the Bank transaction type field select 02. accept the system default. Click the Payment tab and in the Method of payment field select USA_EL. click Journals. 5. In the Debit field. Create the Journal Lines: 1. On the Navigation Pane. If a fiscal year and period has been set up for this fiscal period you may click Post to post this transaction. Post the Journal (Only if Fiscal Year has been set up): 1. In the Date field. select USA OPER. click General ledger. click the arrow to select GenJrn. enter 1001. In the Account type field. Click the New button to add a line. enter 6000. In the Offset account type field select Bank In the Offset account field. 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. 4. In the Description field. 6. 4-8 . 5. select Vendor. In the Account field. 2. 3. In the Description field. click General journal. In the Name field. In the Journal batch number field. 2. enter payment. 8. Click the Lines button. 4.

enter 800. 10. Click the New button to add a line. In the Account Type field. and then click General journal. crediting 131100. In the Description field. 8. enter 06/25/2011. In the Name field. In the Account Type field. In the Journal batch number field. 5. click Journals. In the Date field. click the arrow to select account Ledger. On June 25. using the GenJrn journal. select invoice. Scenario Ken is the controller for Contoso.Daily Transactions with Balance Control This lab will demonstrate the use of the Balance control feature. Validate the journal in the Journal voucher form by clicking the Validate button. In the Description field. A journal is to be created. 3. debiting the Bank Operating account and entering a second line. enter 06/25/2011. 4.00 USD. Review the balance control accounts from the Journal voucher form by using the Balance control option available from the Inquiries button.2 . 2. Press the down arrow key to add a line. Help Ken validate the journal and review the balance control accounts online. Validate the journal. accept the system default. for the expense. click General ledger. Challenge Yourself! 1. 11. Note that this field may already be filled in. Enter a journal for office expenses. Click the Lines button. 2011 he received an invoice from vendor for 800. 2.Chapter 4: General Ledger Daily Procedures Lab 4. 3. Step by Step Create the General Journal: 1. 12. 13. In the Date field. using two lines of entry instead of an offset account. 9. 2. On the Navigation Pane. Need a Little Help? 1. click the arrow to select GenJrn. In the Debit field. 4-9 . enter Electricity. click the arrow to select account Bank. 6. 7. Review the balance control accounts online.

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

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. the posting process posts vouchers without errors and transfers vouchers with errors to a new journal. 2. 5. the order processor. and then select the appropriate journal type and number. The journals are not posted in case Susan must make corrections or add more items to the journals during the day. The range is already set up to include open 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.Select Journals Follow these steps to post multiple journals: 1. When necessary. At the end of the day. Open the Post journals form by clicking General Ledger. When this check box is selected. press ALT+F9 to delete a journal. Click OK to return to the Post journals form. To add a journal. 3. Manually add or delete journals from the resulting list of journals to be posted. click Periodic. 4-11 . Scenario Contoso uses batch processing at the end of its business day to process large jobs. opens and creates multiple journals. 4. Click the Select button to open journals for multiple posting. press CTRL+N to create a line. click 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. Susan runs a journal batch job to post all the open journals at the same time. and then click Post Journals. Procedure: Post Multiple Journals . Susan. During the day.

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

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

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

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

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

• Because only Admin makes entries to the GenJrn journal. Alex Roland (ASR). If you do this. Now Phyllis has decided that entries made to GenJrn must be approved by a member of the Finance team.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. Phyllis has noticed many errors on entries posted by Alfredo Fuentes Espinosa (AFE) in the GenJrn journal. Phyllis needs help establishing the proper procedures to enable this approval. Helpful Information Here are some hints: • Alfredo is a member of the Admin user group. the following tables will be used to assist to gather the needed information. 4-17 . then the approving user must also be a member of the Private for user group value selected to see the journal for approval. 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 Accounting Manager for Contoso. you can use the Private for user group field to prevent other users from accessing the journal. a journal used only by Admin. What Data Is Needed? In this scenario. Scenario Phyllis. has the responsibility for guaranteeing the accuracy of transactions posted in Microsoft Dynamics AX.

This voucher for the same amount must be recorded each month. Use voucher templates with a general journal or an accounts payable invoice journal. Scenario Phyllis. Phyllis decides to save the voucher as a voucher template by amount. she selects the Load voucher template action and chooses the interest entry. The voucher debits Interest Expense and credits Interest Payable for 350. 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.S. the Accounting Manager at Contoso.00 U.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. dollars (USD) each. is entering a voucher to record interest expense on a fixed-rate long-term note. The original ledger accounts and amounts are loaded into the form automatically. To reduce future data entry time. 4-18 . The next time Phyllis records an interest expense.

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

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

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

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

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

2011. NOTE: Set the Session date to 06/30/2011 for this lab. 3. Ken asks you to create the Periodic journal and post the June entry.00 Offset Account 605150 Rent Expense Unit Month(s) Number 1 Challenge Yourself! 1. Post the entry for June. Need a Little Help? 1. Create a Journal name for RentExp.00 USD to Rent Expense. Accounting staff must make an entry to move the used portion of 1.Financials I in Microsoft Dynamics® AX 2012 Lab 4. It is the end of June and therefore one-sixth of the prepaid rent must be expensed.000. Retrieve the Periodic Journal and post the first transaction on June 30. click the Save button.Entering Periodic Transactions This lab demonstrates creating a Periodic Journal Scenario Ken is the Controller for Contoso. 4-24 . 2. 2. After you enter the Periodic Journal. Use the following information to enter the transaction. Option Name of Journal RentExp Description Rent Expense Date 06/30/2011 Account 131100 Transaction Text Rent Expense Credit $1.000.3 . Create a Periodic journal to use for posting the monthly expense.

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

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

and you must reverse it at the last transaction level. you first must reverse the payment.Chapter 4: General Ledger Daily Procedures General Ledger Transaction Reversal Microsoft Dynamics AX enables users to easily reverse transactions posted incorrectly. except transactions that relate to sales orders. 4-27 . an invoice can only be reversed if it is not paid. For example. • Vendor transactions. To reverse a paid invoice. projects or bank.Further Description You can select only one transaction at a time for reversal. 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. 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. • Fixed asset transactions General Ledger Transaction Reversal . except transactions that relate to purchase orders or bank.

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

4-29 .Chapter 4: General Ledger Daily Procedures NOTE: Parameter settings for a module determine whether you must enter a reason for the reversal. Select the date of posting for the reversal transaction. Below are the steps to reverse a transaction in Accounts Receivable: 1. Select a transaction to reverse. 2. The transaction itself and all related transactions that were created when the original transaction is posted are reversed. 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 Reverse transaction on the action pane strip. Select a customer and click Transactions. 3. click Common. 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. 4. Click Accounts Receivables. The date cannot be before the original posting date or in a closed period. click Customers. 5. and then click All customers. in addition to entering a posting date. Click OK. Procedure: Reverse a Transaction in Accounts Payable and Accounts Receivables It is also possible to reverse transactions in Accounts Receivables and Accounts Payable. 6.

and Accounts Payable. and then click Main accounts. and then click Reversed Tracing. for example. • The original transaction is marked as an original transaction. Select the reversed or original transaction to revoke the reversed transaction. Perform the following steps to reverse a reversal. click Common. Select a main account. . 7. 1. • In the dialog of some inquiries and reports in General Ledger. 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. 2. Click General Ledger.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. Click Reverse transaction on the action pane strip. 6. Select a transaction to view all the transactions with the same trace number. select whether the report or inquiry should include transactions that are reversed and settled ('R' transactions). and then click OK. NOTE: Reversed tracing is active only for reversed transactions and reversed transactions that you revoke. The reversed transaction and all transactions that you created by using the reversal are revoked. 3. 5. Select the date of posting for the revocation transaction. • The 'Include reversed' parameter is. included in reports such as account statements and aging reports. and the revocation transactions share the same trace number. Accounts Receivable. 4. Clicked on the Posted button on the tool bar.

Scenario An interest note is issued on September 16. and the transaction reversal is posted based on the reversing date. half of the expense must be reported in September.00 USD.Chapter 4: General Ledger Daily Procedures Reversing Entries . the original transaction is posted based on the transaction date. Phyllis. the Accounting Manager.General Journals The action of reversing entry functionality lets users enter a general journal transaction with a reversing date. 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. You need accrual type transactions to accurately reflect balances on financial statements. enters a month-end transaction on September 30. as shown in the following table.00 USD. 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 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. 4-31 . This action creates a reversal of the previous transaction in the new accounting period. The action of reversing entry functionality provides an easy way to perform transaction reversal for accruals. with interest payable on October 15. Phyllis sets the previous transaction with a reversing date of October 1. because that is when the costs were incurred. Assuming the interest payment at the end of the 30-day period is 100. as shown in the following table.

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

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

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

( ) True ( ) False 6. General journals are used to post transactions in which of the following accounts? (Select all that apply) ( ) General ledger ( ) Bank ( ) Customer ( ) Vendor 2. The information you enter in a general journal is temporary and changeable as long as the journal is unposted. 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. In Microsoft Dynamics AX. 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 . you can set up journals that require mandatory approval. ( ) True ( ) False 3. 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.Chapter 4: General Ledger Daily Procedures Test Your Knowledge Test your knowledge with the following questions.

( ) Reversing entry functionality serves only the purpose of correcting or backing out incorrect transactions. 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. and the transaction reversal posts based on the reversing date. ( ) After you post transactions.Financials I in Microsoft Dynamics® AX 2012 7. 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. 10. Accrual type transactions are needed to accurately reflect balances on financial statements. 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. Is it possible to select multiple transactions for reversal at the same time? ( ) Yes ( ) No 9.

3. 2. 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.

The information you enter in a general journal is temporary and changeable as long as the journal is unposted. (•) True ( ) False 3. (•) True ( ) False 4-38 . What information is needed to create a journal entry? (Select all that apply) (√) Accounting date (√) Ledger account (√) Offset account (√) Debit or credit amount 4. you can set up journals that require mandatory approval. 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. 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.Financials I in Microsoft Dynamics® AX 2012 Solutions Test Your Knowledge 1.

(√) Reversing entry functionality provides transaction reversal for accruals.Chapter 4: General Ledger Daily Procedures 6. 10. 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. Which journals can you use voucher templates? (Select all that apply) (√) General journal ( ) Fixed assets journal (√) Accounts payable invoice journal ( ) Purchase journal 7. 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. 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. (√) After you post transactions. Which of the following fields designates a reversing entry? (Select all that apply) (√) Reversing entry ( ) Correcting entry (√) Reversing date ( ) Correction date 4-39 . and the transaction reversal posts based on the reversing date. 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.

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

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

This topic provides a general overview on taxes. Different countries have different rules and rates. . • The user specifies the sales tax authorities by using the Sales tax authorities form. 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. 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 defines how much to collect or pay as a certain amount or percentage. The user sets this up under the Sales tax codes. • The user specifies when and how frequently to settle under sales tax settlement periods. In some countries. • 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.

you can avoid going back and forth between dialog boxes in Microsoft Dynamics AX. FIGURE 5.1 SALES TAX SETUP IMAGE When you buy an item from a vendor or sell an item to a customer. the system must calculate all the applicable sales taxes. 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.Suggested Steps The image illustrates the steps for setting up tax information. If you follow the steps in this order.Chapter 5: Sales Tax Setup Sales Tax Overview . 5-3 .

• Because each ledger account can use several tax codes.Financials I in Microsoft Dynamics® AX 2012 Sales Tax Overview. Ledger Posting Groups The ledger posting groups control the automatic posting of sales taxes in Microsoft Dynamics AX. . the system calculates the sales taxes based on tax codes CA and Fed because those codes exist in both groups. a ledger posting group determines posting. you can set up the tax reporting on the sales tax code.2 AFFECT OF SALES TAX CODES ON SALES TAX CALCULATION When you attach settlement period and posting group to the tax codes. 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.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. you specify how to post and pay the taxes. FIGURE 5. You must create the accounts that General Ledger uses in the Chart of Accounts before using them to set up the ledger posting groups. Finally. • The system attaches the ledger accounts that the taxes are posted in to the sales tax code.

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

The system debits the outgoing tax in the customer account and then credits this account.00 USD. The amount you receive includes the sales tax. 5-6 . if a customer makes a purchase of 95.LEDGER POSTING GROUPS FORM Create Ledger Posting Groups . Debits are automatically recorded in the account and settled upon payment of the taxes. Select the ledger account in the Sales tax payable list. The ledger accounts available in the Sales tax payable list are the posting type of sales tax in the Chart of accounts. 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.3 ACCOUNT GROUP. where you must post the outgoing sales tax as part of the company's revenue. The system credits this account for sales tax amounts received from customers and debits the appropriate customer accounts. For example.00 USD and the tax amount is 5.Posting Example The following is a brief example about posting sales taxes. These sales taxes are collected by the company on behalf of the tax authority when you sell taxable goods and services. FIGURE 5.Financials I in Microsoft Dynamics® AX 2012 4.

and the amount paid to the vendor includes taxes. 2. For example.00 USD is value-added tax. The system debits to this account the sales tax amounts that you pay vendors and credits the appropriate vendor accounts. if a vendor sends an invoice of 100. 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. 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. 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. Instead.Sales Tax Receivable Perform the following steps to create sales tax receivable ledger posting groups: 1.Chapter 5: Sales Tax Setup Procedure: Create Ledger Posting Groups . 5-7 . 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.00 USD. of which 5. the system debits sales taxes paid to vendors as expenditures (costs) to the same accounts as the purchases.

5-8 .S. taxes . found at General Ledger.00 USD for the supplies and no tax. Setup. The vendor is not required to collect the tax. For any sales tax groups that contribute amounts to this ledger account. NOTE: This field is visible only when the Apply U. U. 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. sales tax and use tax rules check box is selected in the General ledger parameters form on the Sales tax tab. Create Ledger Posting Groups. taxes .Financials I in Microsoft Dynamics® AX 2012 Procedure: Create Ledger Posting Groups .S. Non-U.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.You must indicate a use tax expense account for the Ledger posting group. 1. A company buys office supplies on the Internet from an out-of-state vendor. the company may still owe taxes to a sales tax authority and must track such taxes. However. Sales tax.Use Tax Payable Example The following is an example of the use tax payable concept.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. 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. 2. you must select the Use Tax field on the Setup tab on the Sales tax group form. The vendor charges 100.

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

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

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

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

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

Enter the remaining contact information on the Contact Information FastTab of the Sales tax authority. the system rounds a figure of 10.20.Address and Contact Perform the following steps to create a sales tax authority. 5-14 . 2.Financials I in Microsoft Dynamics® AX 2012 EXAMPLE: If you select Own advantage.16 to -10. NOTE: If you have not set up the tax authority as a vendor. with a Round-off of 0.16 to 10. This ensures that the rounding is always to the advantage of the company. On the Address FastTab.10 and -10. The company can pay sales taxes to the authority directly or through a vendor account created for the sales tax authority. Procedure: Create a Sales Tax Authority.10. enter the address of the Sales tax authority. Create as many sales tax authorities as needed. each with specific address and contact information and report layout. for fields on the Address and Contact information FastTabs: 1. prepare a manual payment to the tax authority on the appropriate due date.

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

• During the company's usual payment routine.3 . the Accounting Manager for Contoso.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. Use the following information for the vendor. 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. Phyllis has asked you to set the Alabama sales tax authority up as a vendor. Assign the vendor to the sales tax authority for Alabama. you can assign a vendor to the authority. Challenge Yourself! 1. the amount the company owes the sales tax authority transfers to the sales tax authority's vendor account. • When she runs the Sales tax payment periodic job. 2. Scenario Phyllis. 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. During this lab you will assign a vendor.Financials I in Microsoft Dynamics® AX 2012 Lab 5. 5-16 . Create a vendor for Alabama sales tax. the payment to the sales tax authority is created automatically with payments to other vendors.

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

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

Select the terms of payment for the sales tax settlement in the Terms of payment list. 2. Select a record. then click Sales tax settlement periods. Select the tax authority that you report and pay taxes to for each settlement period in the Authority list.5 SALES TAX SETTLEMENT PERIODS FORM Procedure: Add Terms of Payment Perform the following steps to set up terms of payments: 1. click Setup. this payment term overrules any terms of payment set on the vendor in the Accounts Payable module. FIGURE 5. NOTE: The Terms of payment field. 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. Enter the name of the settlement period that appears on reports and in other areas throughout the system in the Description field. only applies if a vendor account is set up on the sales tax authority. 5-19 . Click General ledger.Chapter 5: Sales Tax Setup 3. 3. 4. Create and manage terms of payment in the Terms of payment form in Accounts Receivable or Accounts Payable. click Sales tax. which is attached to the settlement period. In this case.

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

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. you can inquire. Use settlement periods to create and manage the periods the company uses to report sales tax. Inquire about Sales Tax Settlement Periods When you set up the sales tax settlement periods. view sales tax payments for a specific period by selecting an interval on the Periods tab and clicking Interval sales tax settlements. which is posted in Microsoft Dynamics AX with a sales tax code. Period intervals may not overlap. 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. This provides an overview of each sales tax transaction. Alternatively. Additionally. report and pay sales tax for specific settlement periods. 5-21 .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. • View posted sales tax transactions for a specific sales tax settlement period by selecting a sales tax settlement period and clicking Posted sales tax.

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

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

3. You must attach sales tax jurisdictions to sales tax groups. and packing duty throughout the system. click Sales tax. You can attach sales tax codes to the sales tax group through the sales tax jurisdictions.When to Create Create sales tax codes when you initially set up the system. Enter a unique identifier for the sales tax code in the Sales tax code field. NOTE: If a company operates in the United States. Enter a meaningful name for the new sales tax code in the Name field. 4. Because taxes frequently depend on geographic location. Click the New button to create a line for the new sales tax code. 5-24 . Click General ledger. purchase duty. changes to the company's market can result in the need for new sales tax codes.Financials I in Microsoft Dynamics® AX 2012 Sales Tax Codes The Sales tax code is a central part of the setup. This describes the function of the code and appears on reports and 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. A sales tax code includes information about the following: • How the tax is calculated. Update the sales tax codes when you need to make changes to existing taxes or when you add new taxes.Overview Perform the following steps to create a sales tax code: 1. click Setup. This is the basis for calculation of tax. then click Sales tax codes 2. 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 . as well as sales tax codes. it is highly recommended that you set up sales tax jurisdictions. Procedure: Create a Sales Tax Code .

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.Chapter 5: Sales Tax Setup NOTE: If a company operates in the United States. the tax converts automatically 2. FIGURE 5.6 SALES TAX CODES FORM Procedure: Create a Sales Tax Code . 5. 3. but only if Print code is selected in the Print list. set up sales tax jurisdictions in the Sales tax jurisdiction list. The sales tax code identifier is an alphanumeric string that may include special characters. The posting group contains information about which accounts to use when the sales tax amounts are automatically posted in the General Ledger.General Perform the following steps to enter general information when creating a sales tax code: 1. If the original transaction is in another currency. 5-25 . Select the ledger posting group for a sales tax code in the Ledger posting group list. 6. Enter a Packing duty Sort code to help identify the packing duty. Click the General tab. 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. 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. 4. Define an identifier that specifies the sales tax code on printed invoices in the Print code field.

If the transaction is in another unit. 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. Sales tax calculates as a percentage of the purchase or sale amount. set up the specific sales tax code that you based the current sales tax code on. 5-26 . including any other taxes. This feature.Financials I in Microsoft Dynamics® AX 2012 7. 8. excluding any other taxes. o Calculated percentage . Procedure: Create a Sales Tax Code . click Setup. it converts automatically based on Unit conversion in Inventory. in the Sales on sales tax field. This includes all other taxes or duties.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).percentage of another tax. and pay this amount to the sales tax authorities. Select the Negative sales tax percentage check box to allow a negative tax percentage for the sales tax code. o Percentage of sales tax . then click the Calculation FastTab. select the Conditional sales tax check box. The sales tax rate must be the same sales tax rate that you entered in the Sales tax code field. select a sales tax code to which sales taxes are posted when invoices are settled with payments.indicate the unit on which the sales tax will be calculated in the Unit field. Select from the following options in the Origin list: o Percentage of net amount . 2. In the General ledger parameters form. The tax code that this calculation is based on must exist in the system. On the Calculation tab.percentage of purchase or sale. Click General ledger. click Sales tax.Calculation Perform the following steps to enter calculation information when creating a sales tax code: 1. click Sales tax codes. In the Payment sales tax code field. NOTE: For the transfer to occur. o Amount per unit . o Percentage of gross amount . 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. set up the general ledger to allow the posting of conditional sales taxes.percentage of purchase or sale.

40 98. enter the value as a decimal (0.00 98.00 NOTE: There is no requirement that the value be less than 1.Calculation Rounding Options Perform the following steps to set up rounding when you create a sales tax code: 1. click Sales tax codes. it converts automatically according to the Unit conversion.10 Round-off = 1. If the value must round to the nearest 10. then click the Calculation tab.Chapter 5: Sales Tax Setup 3.00 98. click Setup.01).435 USD with different rounding values set up. 5-27 . Click General ledger. If the transaction is expressed in another unit.01 Round-off = 0.00 in the field. Refer to the following table for rounding on the amount 98. if taxes should round off to a unit that is 1/100 of the currency of the tax. Enter the lowest absolute value of a calculated tax on the Calculation tab in the Round-off field.800. 2. click Sales tax. select the unit to use when taxes are calculated.765. NOTE: If the basis for tax is the number of units. this Unit field is mandatory.765.00 Round-off = 100. enter 10. For example.43 98. Round-off = 0. FIGURE 5.7 SALES TAX CODE CALCULATIONS Procedure: Create a Sales Tax Code .765. On the Calculation tab in the Unit list.765. The Rounding form field indicates the kind of rounding to use.

• The purchase duty is 10. • The Calculate before sales tax check box is selected.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Sales Tax Code .00.Calculation Packing Duty Select the Packing duty check box to specify that the sales tax code is a packing duty.50. 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. For example. Example: 5-28 • In the Origin field. you could calculate a duty and a sales tax on the same transaction. 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. the unit that it is converted to depends on whether or not this field is selected. When you convert a unit of measure. • The sales tax is 25 percent. Percentage of net amount is selected. • The sales tax is calculated as (100 + 10) x 25% = 27. . • The total amount is 127.00.50. • If this check box is selected. and add the duty amount to the net amount before the sales tax is calculated. • The net amount is 100. 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.

click Sales tax codes.credit note tab pages. Click the Values button on the action bar. click Setup. click Setup. Insert the Reporting code numbers to facilitate reporting on the Report setup and Report setup . which contains numbered cells that you can report to various authorities. For example. in the Taxable sales list. A series of forms exists within Microsoft Dynamics AX.Chapter 5: Sales Tax Setup Procedure: Create a Sales Tax Code . you can select the number of the field in the tax report that contains taxable sales. FIGURE 5. Click General ledger.Additional Calculation Options Perform the following steps to set up additional calculation options when you create a sales tax code: 1. Procedure: Create a Sales Tax Code.credit note FastTab. click Sales tax. Also refer to the procedure on how to create sales tax codes intervals. Click General ledger. then click the Reports Setup FastTab or click the Report setup. click Sales tax. Enter the Percentage/Amount in the Values form. Close the Values form.Report Setup Perform the following steps to create sales tax codes: 1. 2. The sales tax code is included in these reports in the cell indicated in this field. Enter Values to set up the sales tax rate. Frequently the tax authorities have special forms with numbered cells for reporting of taxes.8 SALES TAX CODE REPORT SETUP 5-29 . then click Sales tax codes 2.

To increase the understanding of sales tax. Phyllis is asking your assistance in reviewing the calculation of sales tax by using various options available in Microsoft Dynamics AX.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 . select whether the sales tax should calculate for each line or the total amount.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. NOTE: In the Parameters form (click General ledger.Use percentage of amount Setup 2 . The following table shows Phyllis's review of setups in Contoso: Setup 1 . click Setup.Incomplete Table How would you apply the information in the table above to determine the effect of each setup on an invoice for 10.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. In the Method of calculation list. click General ledger parameters. Contoso's customer base includes many international customers. then click the Sales tax link in the navigation pane). 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.

00 Duty 2 20% $10 * 20% $2.50 Gross Amount Sales Tax Calculation 25% 5-31 .20 $13 * 25% $ 3.50 Total Sale $10 + 6.30 Duty + Sales Tax $1+2+3.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 $ 6.00 $10+1+2 .Completed Table The completed table is as follows: Setup 1 Setup 2 Rate Formula Calculation Formula Calculation Duty 1 10% $10 * 10% $1. Example Setup: Calculation Methods for Sales Tax Codes.30 $ 6.25 $16.20 $13.50 $16.00 ($10+1)* 20% $2.20 * 25% $ 3.20 $10+1+2 $13.25 $13.00 $10 * 10% $1.25 $10 + 6.25 $1+2.20 +3.

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

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

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

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

001 100. has received a notification from the State of Florida that as of 07/01/2011.00 10% 50.001 8% NOTE: The labs in this chapter must be completed in order as they are dependent on the previous lab.6/30/2011. The notice specifies the following rates: Minimum limit Maximum limit Tax rate 0. 2. Before you add a new line to the Values form.5 . and then click Sales tax codes. On the Navigation Pane. Microsoft Dynamics AX will require an 'ending' date for the tax. you must enter dates on the existing line. click General ledger. Plan to enter an artificial date of 12/31/2020. Scenario Ken. 5-36 . then click Sales tax. Add the lines to the Values form.Financials I in Microsoft Dynamics® AX 2012 Lab 5.Set Up Sales Tax Codes Intervals During this lab you get to practice setting up sales tax code intervals. then click Setup. 3. the Controller for Contoso. Suggested dates are 1/01/2006 . Click the Values button. Ken asks for your assistance in setting up tax codes that comply with the new structure. 2. 2. Challenge Yourself! 1.00 9% 100. Step by Step Edit the State of Florida Tax code record: 1. All of them will be assigned the same date range assigned. Use sales tax code intervals to structure the AV_FLST tax rate in Microsoft Dynamics AX for the new rates.00 50. Locate the line for AV_FLST. a tiered tax is due on video recorder sales. Need a Little Help? 1.

3. Click the New button to add a line. In the From date field. enter 06/30/2011. enter 10. Close the Sales tax codes form. 7.00. In the Minimum limit field. In the From date field. In the Upper limit field. In the To date field. 2. In the Value field. 5. 4. 8. enter 50. 6. Click the New button to add a line. Create the rest of the lines: 1. 2. Repeat steps 1 through 8 to add the remaining tax intervals to the form. 5-37 . 4.00. enter 12/31/2020. 3. enter 01/01/2006.Chapter 5: Sales Tax Setup Edit the existing line by adding dates: 1. enter 0. Close the Values form. In the To date field.00. enter 07/01/2011.

In most countries. 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. Sales Tax Groups . Therefore. Therefore. The tax rules for foreign trade frequently are split up based on bilateral and multilateral trade agreements. and the setup of those Sales tax groups. 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. you must create tax groups depending on the taxes that may apply for a certain group of customers or vendors. 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.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. attach the appropriate sales tax group to: 5-38 • Customers • Vendors • Ledger accounts . 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. different tax rules apply when you trade with domestic and foreign customers.Example Comparison If your company needs the following tax codes.

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

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

If the vendor did not charge tax. taxation rules parameter option is selected in General ledger parameters . 2. Procedure: Create a Sales Tax Group . however. if necessary.Setup Perform the following steps to set up additional tax codes with this Tax Group: 1. you can attach a default sales tax group to each ledger account for purchases or sales excluding a customer or vendor are posted.S. Procedure: Create a Sales Tax Group . there are no deductions for taxes on purchases and the tax posts together with the expense. If the Apply U. 5-41 . but you can change it if necessary. the tax posts to the same account as the expense. the ledger account for office equipment. 3. How the tax is debited depends on how you set the Apply U. If the company is not responsible. Select one or more sales tax codes to use with the sales tax group. Additionally. If the option is not selected. you can change the sales tax group on individual transactions before you post transactions.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. The fields on the Setup tab automatically fill in with values from the Sales tax codes form.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. The value is entered automatically from the Use-tax field in Sales tax groups. the system credits the tax to the account shown in the Use-tax payable field in Ledger posting groups. The default sales tax group appears automatically on transactions for the customer or vendor.S taxation rules parameter in the General Ledger parameters. 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. for example. 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. Click the Add button to create a new tax code line. the vendor calculates and pays the tax. This is the default sales tax group for transactions that involve the customer. As with all defaults. you can change the sales tax group on individual transactions.

The net amount is posted to the ledger account entered in the journal. If you do not select the Amount incl. Individual Journal forms – specify a default setting on an individual journal to override the default settings of the Journal names and Parameters forms. journals. If you select the Amount incl. sales tax field. and journal lines as they are created. The highest priority setting is entered automatically on journal templates. Parameters form – specify the default setting of lowest priority regarding the inclusion of sales tax in journal amounts.Additional Information You can indicate if the amounts entered in journals include sales tax or do not include sales tax. General ledger.Financials I in Microsoft Dynamics® AX 2012 Amount Includes Sales Tax. sales tax field at any time. you must enter net amounts in journals. unless you have entered a setting on the journal itself. Journal names form – specify a default setting that overrides the default setting on the Parameters form. You can specify this information in three different forms: General ledger. 5-42 . 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. The sales taxes are calculated on the basis of the net amount and are posted automatically. sales tax field. you must enter gross amounts in journals. 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. The net amount is posted to the ledger account entered in the journal. Sales taxes are calculated on the basis of the gross amount and posted to the sales tax account. but you can select or clear the Amount incl.

This column is relevant only for Belgium. Select the sales tax code for an item sales tax group on the Setup tab. 2. The association between sales tax codes and the item sales tax group is in the Item sales tax group form. click Sales tax. 5-43 . When you create the Item sales tax groups. 2. then click Item sales tax groups. Perform the following steps to set up the default: 1. 3.Chapter 5: Sales Tax Setup Item Sales Tax Groups Because items generally determine taxes. on the Setup tab. click Setup. you must indicate how taxes are calculated for each item. For a sales tax code to be valid. o Item – the sales tax line amount is included in the Items value column. 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 Inventory and warehouse management. This information appears on reports and in other areas throughout Microsoft Dynamics. The sales tax codes calculated are determined automatically when you post. Procedure: Create Item Sales Tax Groups Perform the following steps to create item sales tax groups: 1. click Inventory and then Item groups. NOTE: This information is in Item sales tax group. 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. The Item sales tax group includes all the sales tax codes that apply when you sell that item. attach the group to Items. and a description in the Description field. set up a default item sales tax group. o Investment – the sales tax line amount is included in the Investment value column. Click General ledger. Select an item group and then click the Setup FastTab. you must select it for the sales tax group and the item sales tax group. o Service – the sales tax line amount is included in the Services value column. The Item sales tax group also may include most of the sales tax codes in the system. 4. Enter a unique name for the item sales tax group in the Item sales tax group field.

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

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

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

Comprehensive Setup of Sales Tax During this lab you gain comprehensive practice in setting up sales tax information in Microsoft Dynamics AX. the Controller for Contoso.6 . Blue Yonder Airlines. Scenario Ken. April.Chapter 5: Sales Tax Setup Lab 5. 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 . receives an invoice for 50. 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. located in Little Rock. has decided to do business with a new vendor.000 USD from Blue Yonder Airlines. Arkansas where business has not previously been conducted.

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. Setup a sales tax group by using ARLRA as the group name. Setup a sales tax authority by using ARA as the authority name. Any gain or loss that occurs when you round will post to account 618160.S. The term of payment is 15 days. 3. by using the codes ALL_LRCITY and ALL_ARST. by using ARST for Arkansas and LRAST for Little Rock. The settlement period is an interval of one month. Setup two ledger posting groups.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. 4. Report layout. 5. Comprehensive Setup of Sales Tax . one for each authority. 5-48 .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. Then set up three new periods starting with the beginning of the current month. Plan to round taxes in a typical manner to the nearest penny. Plan to set up two sales tax codes. 2. The tax breakdown for city and state taxes is as follows: • City of Little Rock: three percent. Enter a sales tax settlement period (AR) to use for each code.

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

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

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

14.00. Click the Add button to add a line. click the ALL line. 15. In the left hand Navigation pane. Click the Setup FastTab and click the Add button. 5-52 . select ALL_ARST.00 for the percentage. 3. click Setup. Click the Setup FastTab. 7.00 Close the Limits form. enter Arkansas and Little Rock. In the Upper limit field.00. In the Sales tax code field. In the Minimum sales tax field. 18. Click the Add button to add a line. On the Navigation Pane. In the Value field. 8. Close the form. 13. 10. Repeat steps 2 through 6 for Little Rock and enter ALL_LRCITY.00. 14. 22. click Setup. 5. enter 0. 4. In the Sales tax code field. In the Sales tax code field. click General ledger. 17. 2. 9. click Sales tax. Click the Add button to add a line. enter 0. 19. then click Sales tax groups. 18. 21. 12. Close the Values form. In the Rounding by field. 13. click General ledger. enter 3. enter 1000. select Sales tax codes. Click the New button to add a line. Close the Sales tax group form. 19. In the Description field. enter 0. Set up a sales tax group: 1. Click the Limits button.00. In the Sales tax code field. and then click Item sales tax groups. click Sales tax. Close the Values form. 10. use the arrow to select ALL_ARST.00 for the percentage. enter 0. Click the Values button. In the Sales tax group setup field. 15.00 In the Maximum sales tax field. 16. select Sales tax codes. Close the Sales tax codes form. In the Value field. In the Minimum limit field. use the arrow to select ALL_LRCITY. 17. 6. 16. In the Upper limit field. In the Sales tax group field. 11. On the Navigation Pane. 20. 11.Financials I in Microsoft Dynamics® AX 2012 8. select ALL_LRCITY. In the Minimum limit field. 9. enter 2. enter ARLRA. 12. enter 0.

however. enter COMPLAB. the maximum tax should be 1. Verify the correct calculation of sales tax: a.000. In the Item sales tax group field. select ALL. three percent of 50. For Little Rock. Total tax should be 2.500. 8. Select Blue Yonder Airlines in the Account field. 4. 2.000 in the Credit field. 10. 9. Click the New button to add a line. Click the Lines button.Chapter 5: Sales Tax Setup Record the invoice in an accounts payable invoice journal: 1.000 is 1. Close all forms. 5. Select the APInv in the Name field.000 is 1. 14.000. 3. 13. 7. 12. For Arkansas. two percent of 50. Accept the Voucher number and Vendor Account type. Click the Setup tab. then click Sales tax totals. c. 5-53 . In the Sales tax group field. select ARLRA. click Invoices. Enter 06/30/2011 in the Date field. Enter 618900 in the Offset account field. Click Accounts payable from the Navigation pane. and make sure that the Amount include sales tax check box is not selected. and click Invoice journal. click Journals. b. 6. In the Invoice field.000. Click the Inquiries button. 11. Enter 50.

select the field. On the Navigation Pane. 9.10). 5. For example. Use the GenJrn journal. 3. NOTE: The labs in this chapter must be completed in order as they are dependent on the previous lab. 4. Click the Sales tax link on the left hand navigation pane. and the sales tax amount is 10. suppose the sales tax is ten percent and the total invoice amount is 110. the net amount is 100.00 USD. Scenario Ken is the Controller for Contoso. click Setup. Challenge Yourself! Help Ken find the two forms that can specify whether the journal amounts include sales tax. 2. Close the form. 5-54 . 8.Financials I in Microsoft Dynamics® AX 2012 Lab 5. then click Journals. In the Amount include sales tax field. click General ledger. On the Navigation Pane. click General ledger.Including Sales Tax in Journal Amounts During this lab you will set up sales tax in journal amounts. Need a Little Help? Check the General ledger parameters and the Journal names form. Step by Step Follow these steps: 1.00/1. If it is specified that the journal amount includes sales tax. In the Amount include sales tax field. Ken requests your assistance. Close the form. and then click Journal names.00 USD (110. He wants to include sales taxes in journal amounts to make it easier to create journal entries.00 USD. 6. select the field. then click Setup. Select the GenJrn journal from the left hand Navigation pane. 7. then click General ledger parameters.7 .

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

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

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

Transactions with Conditional Sales Tax Users generally report sales taxes in the period when they create the invoice. Select the Prepayment journal voucher check box on the Payment tab when you post a prepayment through a journal. Sales tax calculates and posts whenever you post a prepayment. 3. the sales tax posts incorrectly. 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. Click Accounts receivable. 5-58 . then click Accounts receivables parameters. although a sale has not been made. an automatic transaction on the sales tax prepayments account offsets the first temporary sales tax transaction. When they use conditional sales tax. click Setup. 2. Select the Sales tax on prepayment journal voucher check box in the Ledger and sales tax section. Then select the appropriate ledger account on the Setup tab in the Sales tax prepayments list. If they do not settle the invoice in full with a single payment. users must only report the sales tax and base amount to the sales tax authorities when they pay the invoice. 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. Follow these steps to set up sales tax on prepayments: 1. When you create a sales invoice and settle the prepayment.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. the sales taxes automatically are reported proportionally to the actual amount paid on the invoice. 4. If you omit this step.

The EUR 1.250 is included in the sales tax payment because the customer paid only part of the invoice.500 is not included in the sales tax payment because the invoice is unpaid. On July 15 the customer pays half of its balance due. The EUR 2. On July 10 the company reports taxes for June. However. In some countries.250 in sales tax. because you can choose to post the conditional tax on the same account as the ordinary sales tax. Create two settlement periods: one to control conditional tax and one to report sales taxes to the authorities.000 plus EUR 1. If you post the conditional tax to a separate ledger account. 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 . Procedure: Create Transactions with Conditional Sales Tax Perform the following steps to set up conditional sales tax on a transaction: 1. 2. Create a separate ledger account(s) for posting sales taxes for invoices awaiting settlement (Optional).500 in sales tax. On August 10 the company reports taxes for July. the sales tax authorities require companies to report tax for the full invoice amount. regardless of whether the full amount is paid. Create a separate ledger posting group for posting the conditional tax to the separate ledger accounts (Optional). When the rest of the invoice is paid. you must create a separate ledger posting group to control the postings.Chapter 5: Sales Tax Setup EXAMPLE: On June 10 Contoso creates an invoice of EUR 10. This step is optional. 3.000 plus EUR 2. the rest of the sales tax is reported. which is EUR 5. many countries legally require separation of these postings.

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

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

Financials I in Microsoft Dynamics® AX 2012 4. 5. 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. 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. NOTE: You can set up tax exempt numbers for customers and vendors in the Customers or Vendors form on the Setup tab. click Sales tax. FIGURE 5. then click Sales tax codes. click Setup. 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. Open General ledger. NOTE: You also can print sales tax exempt rates on interest notes and collection letters. 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.11 SALES TAX EXEMPT CODES 5-62 .

Create a new sales tax code named Exempt. Ledger posting groups. 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. NOTE: The labs in this chapter must be completed in order as they are dependent on the previous lab.8 .Chapter 5: Sales Tax Setup Lab 5. Challenge Yourself! Set up the sales tax system so that. when you use tax codes that are marked exempt in the tax system. 5-63 . Ken asks you to set this up. the Exempt code prints on invoices. and Sales tax groups already set up in the data for California. a company that has decided to specify sales tax exemptions on invoices for their European subsidiary. Before implementing the EU sales tax directive.EU 115 Sales Tax Directive This is a lab on the EU 115 Sales Tax Directive. Scenario Ken is the Controller of Contoso. Use the Settlement periods.

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

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

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

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

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

Therefore the tax module of a true international ERP system must be comprehensive. the tax module offers many different options for tax calculation. 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. In Microsoft Dynamics AX. 5-69 .Chapter 5: Sales Tax Setup Summary The requirements for tax calculation and tax reporting differ greatly for different countries. special EU statistic reports such as Intrastate and EU sales list are also available. posting. and reporting.

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

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

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

5-73 .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. 3. 2.

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

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

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

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

she uses the “VACC-SC” reason code with the asset journals and the other forms that require reason codes. For example. which enforce use of reason codes during various transactions and value changes in the accounting records. Standard reason codes provide management and auditors with the ability to analyze transaction history by specific reason. service life. She creates a reason code titled “V-ACC-SC. For example. 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. Contoso's auditors have required explanations for all new assets purchased. Because of the accident damage. Later. users have guidelines on what codes to select from.Single Car” for transactions related to this accident. Cassie has decided that using reason codes will satisfy the auditors. 6-2 . Cassie records the write-down adjustment to the vehicle and changes the other asset values. Because of the selected parameter settings. To accommodate the auditors’ requirements. the Accountant at Contoso. Cassie establishes internal controls in Microsoft Dynamics AX by setting up parameter values. Use reason codes with the following: • General Ledger • Accounts Payable • Accounts Receivable • Cash and Bank Management Scenario Cassie. is responsible for managing the company's fixed assets. Cassie also develops a list of standard fixed asset reason codes and descriptions. These codes can be used with asset transactions. Cassie must adjust downward the asset's value. When the auditors next review the accounting records.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.” with a description of “Vehicle Accident . When you use standard reason codes instead of transaction text. one of Contoso's vehicles (vehicle number 17) was recently in an accident. auditors or managers frequently want to see recorded reasons for various transactions. in addition to certain changes to existing assets. and expected scrap value.

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

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

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

You can change the default reason comment. If you enter a reason comment first and then select a reason code. the default comment that is set up in the Financial reasons form displays in the Reason comment field. This must include the ledger offset account. 6-6 . the typed reason comment is not replaced. Although you can set up default reason comments for each reason code. no setup is required.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. Reason Comments Optional reason comments can be entered on the respective Financial reasons form. If you select a reason code for a transaction.

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

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

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

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. 6-10 . 2. 3.

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. (√) The system prompts users to create a backup before they use the FillUtility. 6-11 . Which of the following statements correctly describe the Fill utility? (Select all that apply) (√) The Fill utility enables authorized users to mass-update records.Chapter 6: Financial Features Solutions 1. 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.

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

• Set up bank groups. 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. The bank account table contains a record for each bank account. Each record contains bank account information. • Set up bank transaction groups. set up the following: • Bank transaction types • Bank transaction groups • Bank groups • Cash and bank parameters • Bank accounts • Checks 7-1 . • Define the check layout for a bank account. 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. Introduction In Microsoft Dynamics AX®. • Create a bank account. • Set up bank parameters. • Set up payment purpose codes. companies use the Cash and Bank Management module to create and maintain bank accounts.

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

Click the Main account arrow to select the ledger account to post corrections to and to add data for bank reconciliation. Repeat steps 2 through 5 to create each new Bank transaction type. 6. FIGURE 7.1 BANK TRANSACTION TYPE FORM 7-3 .Chapter 7: Cash and Bank Management Setup 5.

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

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

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

5. 3. Click General on the left hand navigation pane. and then click Cash and bank management 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. Click Cash and bank management. Procedure: Define Cash and Bank Parameters Perform the following to set up Bank parameters. It also marks the payment so that it is not selected when you reconcile the bank account. 2. 1. When the bank returns a payment the NSF identifier automatically cancels the payment from the system. 7-7 . NSF is used to identify returned payments. 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. Select the Bank transaction type that is used for Non-Sufficient Funds (NSF) from the NSF list. 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. 4. click Setup.

To require reason codes for bank transactions.Financials I in Microsoft Dynamics® AX 2012 6. 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. If this check box is cleared. If this check box is cleared. 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.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. the reversal is posted immediately when you click the Payment reversal button in the Check form. the cancellation is posted immediately when you click the Cancel payment button in the Deposit slips form 7-8 .

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

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

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

1. This field is only available to legal entities whose primary address is in the United States. Use the Bank account number field to enter the account number specified by your bank. NOTE: Name accounts so that they can be easily identified. 2. It is an alphanumeric string up to 34 characters. 7-12 .General Descriptions Perform the following to create descriptions for a new bank account. Use the Company statement name to enter the company name as you want it to appear on your bank statement. bank accounts are identified by name and account number. enter a name that is used to identify this account on printed reports and other areas. If a Bank group is selected. FIGURE 7. enter a unique ID number to identify the bank account. 6. 5. from the Bank groups list. In the Bank account field. if applicable. In the Name field.Financials I in Microsoft Dynamics® AX 2012 4.5 BANK ACCOUNTS Procedure: Create Bank Accounts . 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. 3. You cannot modify the bank account value for existing bank accounts. This field is only available when the company's primary address is in Canada or the United States. the Routing number field will be populated automatically based on the bank group setup. In Microsoft Dynamics AX.

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

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

From the Bank accounts form. enter an amount for the maximum remittance for discount amount granted for the current bank. NOTE: The values in the Days. click the Negotiable instrument FastTab. FIGURE 7. and Drawer fields all default from the Bank group. Enter the bank-issued drawer code in the Drawer field. Select the journal to hold the generated remittance fees from the Fee journal list. 2.Chapter 7: Cash and Bank Management Setup 8. 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. In the Discounting maximum field. 3. 1. 9.6 CURRENCY MANAGEMENT Procedure: Create Bank Accounts . 5. 4. Click the Contact information FastTab and enter the information for the bank group's contact person. Suffix. The amount is displayed in the Remittance journal. Click the Address FastTab and enter the address for the bank.Other Perform the following to complete the remaining bank account setup. if defined. 7-15 .

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

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

and then click Bank accounts.Financials I in Microsoft Dynamics® AX 2012 Check Layout Use the Check layout form to set up the check layout for the bank accounts. Check numbers are automatically proposed when you use checks for payment. Select either method: o Fixed: use this method when you have preprinted checks. first access the Bank accounts form by clicking Cash and bank management. 4. Select the method to use for generating check numbers from the Check number method list. You can define a different check layout for each bank account. 1. and then click Check. o Free: use this method when you do not have preprinted checks. they must be created by clicking Check numbers from the Set up tab on the Action Pane in the Bank accounts form. FIGURE 7. 7-18 . On the Action Pane. Double-click on a Bank account. Before you can use checks for payment. 3. click Common. 2.7 CHECK LAYOUT FORM Procedure: Define the Check Number Perform the following to define the check numbering. click the Setup tab. To access the Check layout form.

9. no more than two copies can be printed at the same time. 7-19 . Enter the starting position on the paper where the check must be printed in the Check start position field.00 on the check. In the Check layout form. enter 3. select one of the following rulers to display when you test print. Select the unit in which the paper size is measured from the Paper length unit list 4. Enter the unit in which the start position is measured from the Unit for the start position of the check list. EXAMPLE: To start the check 3 inches from the top of the paper. 3. From the Ruler list.00. o Inches: shows the ruler in inches. Enter either 1 or 2 to indicate whether to print one or two slip text copies in the Number of slip copies field. BEST PRACTICES: Print two slip texts so that you can keep one and send the other. o cm: shows the ruler in centimeters. In the Prefix field. o None: shows no ruler on test prints. the printer will print USD 1000. if you are entering USD in this field and the check amount is 1000. For example.Chapter 7: Cash and Bank Management Setup Procedure: Define Check format To define the check format. select a layout for the check in the Check form field. 5. follow these steps: 1. Even if you enter a number larger than two. 2.00 in the Check start position field and select 'Inch' in the Unit for the start position of the check field. Enter the length of the paper on which the check is printing in the Paper length field. 6. 8. enter the text to print in front of the amount on the check.

click the Company logo button to select the company logo to print on the checks. o Bank account o Bank name o Bank number o Company name o Company logo If you select the Company logo check box. FIGURE 7. 1. 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.8 CHECK LAYOUT FORM. From the Check layout form. 4. Select from the following list of check boxes for every field to be printed on the check. click the Setup tab. click the Change button to select the file that contains the company logo. SETUP TAB 7-20 . From the Image form. 3. Select the option to print ABC codes on the check. enter the associated routing number to print on the check. Click the Codes tab. 2.

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

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

Print a preview of the check layout. select CNYBANK. 5. enter 2. Preview the check layout. Step by Step 1. click Common. 7.Chapter 7: Cash and Bank Management Setup Lab 7. 4.5. In the Paper length unit field. enter 2. check format. enter the specified information. 3. Define the check layout for CNYBANK. select Free. On the General and Setup tabs. 7-23 . 3. name. 2. select Inch.3 . Click the Setup tab.5 inches long. From the Bank accounts form. In the Number of slip copies field. select Inch. • Before the check amount. In the Unit for the start position of the check field. In the Check number method field. • Pre-printed checks cannot be used for this account. and then click Bank Accounts. the letters CHY must be displayed. then click the Check button on the Action Pane. and number must be printed on the check.Define a Check Layout During this lab you will define a check layout. 9. Open the Check layout form. Double-click the line for CNYBANK. In the Check form field. 4. • The checks must print two inches under the top of the page. Need a Little Help? 1.S. 2. select U. enter 8. 8. 2. • Checks must be printed in the U. • Two slip copies are required for each check. • The paper must be 8. Click Cash and bank management. Challenge Yourself! 1. Use these check layout requirements. In the Paper length field. format.S. because pre-printed checks are not used. 10. In the Check start position field. Scenario Set up the check layout for the new bank account that you created in the previous lab. 6. • The bank account.

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

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

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

3. 2. 7-27 .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.

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

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®. • Void checks. users manage the financial transactions between the company and its bank accounts. • Delete checks. • Create a bank deposit entry. Introduction Within the Cash and Bank Management module.Chapter 8: Cash And Bank Management Daily Procedures CHAPTER 8: CASH AND BANK MANAGEMENT DAILY PROCEDURES Objectives The objectives are: • Create checks. • Reverse a posted check payment. • Reconcile bank statements. 8-1 . • Use bank remittances. • Create a refund that prints a check.

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

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

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

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

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

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

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

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

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

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

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

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

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

For example. where a reviewer can then post or reject the reversal. There are two methods available for reversing posted checks. and then click Post to post the remittance. and you can void only unposted checks. the delivery company may have the check or a member of the accounting staff may notice that an employee paid the check in error. select the remittance format for the payment. • Reversals are posted immediately when you click the Payment reversal button in the Check form.Chapter 8: Cash And Bank Management Daily Procedures 10. You can reverse only posted checks that have a status of Paid. you must reverse a check after you have made a payment and posted the check. 11.2 REMITTANCE FORM Payment Reversal Occasionally. Click the Posting button. 8-15 . the reversal first is sent to the Check reversals journal in Cash and bank management. Reversing differs from deleting or voiding checks because you can delete only checks that have a status of Created. In the Remittance format field. • When you click the Payment reversal button in the Check form. FIGURE 8. You might reverse a check to reissue a payment made to a vendor. Microsoft Dynamics AX provides a function to reverse posted check payments.

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

6. 1. In the Ending Balance field. Procedure: Begin a Bank Account Reconciliation Perform the following steps to reconcile a 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. After a reviewer posts or rejects a check reversal or deposit slip payment cancellation. the status is no longer Pending cancellation. click Common. In the Bank statement field. 8-17 . In the Bank statement date field. and then click Bank accounts. Click the Account reconciliation button on the Action Pane and enter information as appropriate. In the Currency field. 5. 3. Click Cash and bank management. 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. verify that the application inserts the correct currency for the selected bank account. enter the date from the bank account statement. and it is possible to reconcile the bank account. enter the total ending balance on the bank account statement. 7. 4. Select the bank account for which to reconcile the bank account statement. 2. enter the number of the bank account statement.

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

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

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

How can you tell if a deposit slip is canceled? 4. Create a check refund by placing the following steps in order: Step: _____: Create a customer payment journal line with a negative amount. must create checks numbered 2361 through 2366. What status must a check have for you to delete it? ( ) Void ( ) Processed ( ) Created ( ) Invoiced 3. _____: Post the payment journal. 1. the Bookkeeper at Contoso. 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. _____: Generate the refund check.Chapter 8: Cash And Bank Management Daily Procedures Test Your Knowledge Test your knowledge with the following questions. Annie. 8-21 .

Explain the circumstances in which you would delete. void. 8-22 . 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.Financials I in Microsoft Dynamics® AX 2012 5. When you perform bank reconciliation.

8-23 . 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. 3.

4. Annie. 2 : Modify the method of payment to Check Refund on the negative payment journal line.Financials I in Microsoft Dynamics® AX 2012 Solutions Test Your Knowledge 1. How can you tell if a deposit slip is canceled? MODEL ANSWER: On the Deposit slip form. 4 : Post the payment journal. the Bookkeeper at Contoso. 3 8-24 : Generate the refund check. 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. on the General tab. must create checks numbered 2361 through 2366. Create a check refund by placing the following steps in order: Step: 1 : 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. the Canceled check box is selected. .

When you perform bank reconciliation. you can reverse it. 8-25 . 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. If payment has been made and a check has been posted. After printing or trying to print checks. This may happen if checks are damaged in printing. Checks with a Created Status can be deleted. but before posting.Chapter 8: Cash And Bank Management Daily Procedures 5. MODEL ANSWER: Checks that are created but not used have the status of Created in the Status field. checks may be voided. void. or reverse a check. Explain the circumstances in which you would delete.

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

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. • Create terms of payment. • Set up vendor groups. Introduction This course describes the different Accounts Payable setup options in Microsoft Dynamics® AX. • Create a payment fee. These global payment options are used in the Accounts Payable and Accounts Receivable modules. 9-1 . • Create a payment day. • Set up a cash discount. This course explains topics such as payment options. • Create a method of payment. 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 new vendor.Chapter 9: Accounts Payable Setup CHAPTER 9: ACCOUNTS PAYABLE SETUP Objectives The objectives are: • Create a payment schedule. • Set up posting profiles.

2. and then click Payment schedules. If Specified is selected. Procedure: Create a Payment Schedule Perform the following to create a payment schedule: 1. or contract payments. Enter a description in the Description field. 9-2 . click Accounts payable.a specific. 6. This is also known as a finance plan. the payment schedules and amounts must be defined on the Payment lines FastTab. o Fixed amount . 4. fixed amount is due for each payment on the specified payment dates.Financials I in Microsoft Dynamics® AX 2012 Payment Schedule Use payment schedules to pay invoices in installments. an invoice of 10. click Setup. Click the New button to enter a new record. 5. Enter a name to be used as identification of the payment schedule in the Payment schedule field. o Fixed quantity . Click the General FastTab. During this period the invoice is not considered past due if the scheduled payments are made on time. 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.total amount outstanding on the invoice due. It is paid at 2.000 USD is recorded. 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. 3. To access the Payment schedules form.payment of the total amount is divided into a fixed quantity of payments. select an allocation method: o Total . In the Allocation list.000 USD each month until the balance is paid. o Specified .a specified amount is due on each specified payment date. click Payment.

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

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

and then click Terms of payment. 2.) 3. click Payment.O.Chapter 9: Accounts Payable Setup Procedure: Create Terms of Payment Perform the following to create a term of payment: 1. Click the New button to create a new record. click Setup.D. o Net o Current month o Current quarter o Current year o Current week o Cash on Delivery (C. 3.2 TERMS OF PAYMENT FORM Procedure: Create Terms of Payment . Enter a descriptive name for the current terms of payment in the Description field. Select the method that is used to calculate the due date in the Payment method list. 4. enter a code or a short name for the term of payment. FIGURE 9. From the Terms of payment form click the Setup FastTab.Setup Perform the following to define the setup information for a term of payment: 1. 2. Enter the number of months to add to the payment method to calculate the due date in the Months field. In the Terms of payment field. Click Accounts payable. 9-5 .

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

click the Add button to add a new line to the payment day. 5. click Setup. enter a short identification of the payment day and enter a description of the payment day identification in the Description field. Click the New button to create a new record. 9-7 . The due date always is rounded up to the nearest specified date. On the Payment day lines FastTab. and if Month is selected. In the Payment day field. If Week is selected.Chapter 9: Accounts Payable Setup Payment Days Use payment days to define the payment day used for calculating due date. 2. enter a value from the Day of Week field. FIGURE 9. and then click Payment days. 1. 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. 4. Select between Week and Month in the Week/Month field. Click Accounts payable. enter in the Day of month field a value between 1 and 31.3 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. click Payment. 3.

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

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

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

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. 3. 9-11 . it is posted to the system cash discount account. Select from the following values: o Unspecific . 2. If the applicable cash discount was not posted in the same company as the overpayment. If the applicable cash discount was posted in the same company as the overpayment. click Accounts payable. 1. the system will adjust the cash discount. To access the Accounts payable parameters form. 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. If there are multiple cash discounts so that an overpayment was settled against multiple invoices. and then click Account payable parameters. Click Settlement in the left navigation pane.the underpayment amount is posted to the vendor cash discount account. click Setup. the adjustment to the discount is from the last invoice to the first discount.

Financials I in Microsoft Dynamics® AX 2012 o Specific . If the Cash-discount administration parameter is set to Unspecific.the overpayment or underpayment amount is posted to the vendor cash discount account. For example. the invoice is settled. the vendor will be paid 94.50 USD is posted to the ledger account specified for cash discount differences. However the amount actually paid to the vendor is 95. and the obtainable cash discount is 10. Considering the cash discount.00 USD. FIGURE 9. a vendor's invoice total is 105.00 USD. and the difference of 0. If the Cash-discount administration parameter is set to Specific. the invoice is settled.50 USD is posted to the vendor's cash discount account.50).5 ACCOUNTS PAYABLE PARAMETERS 9-12 .50 USD (105-10.50 USD. and the difference of 0.

Click Sales tax on the left navigation pane. click General ledger. To access the General ledger parameters form. FIGURE 9. 2.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. 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.6 GENERAL LEDGER PARAMETERS FORM 9-13 . Expand the Tax options FastTab. 1. and then click General ledger parameters.

Scenario Contoso electronically transfers invoice amounts (that are due to the vendor) to its bank. Enter a brief description in the Description field. After the invoice amount is transferred. Enter an identification in the Fee ID field. 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. 2. and then click Payment fee. 4. and identify how to generate fees. 3. 9-14 . specify bank relations. Click Accounts payable.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. To manage the payment fees from the bank. click Setup. 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. • Define fee identifications. For example. click Payment. Contoso decides to set up payment fees for vendor invoices. Click the New button to create a new record. 1. The bank then transfers the money directly into a vendor's designated banking account.

methods of payment. Select the journal type for which the fee is valid for in the Journal type field. 6. The fee is valid for each field for: o Table . 2. remittance types. Select whether to charge the Vendor or Ledger to use a financial cost for the fee in the Charge field. currencies. If Ledger is selected. time periods.all the bank accounts 9-15 . 1.7 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. From the Payment fee form. click the Payment fee setup button. Select the kind of bank information that is required to start the fee in the Grouping field. payment specifications. Perform the following to set up a payment fee.the bank account selected in the field Bank relation o Group . FIGURE 9. select an account in the Main account field for posting in the ledger.Chapter 9: Accounts Payable Setup 5. and amount intervals. This journal type is typically vendor bank remittance.the bank group selected in Bank relation o All .

group is selected in the Grouping field o Skip . Select the calculation method in the Percentage/Amount list. If the company agrees with the bank to specify the payment. Only transactions with this currency can enable the fee. Select a bank relation from the Bank relation field if: o A bank account . 8.Financials I in Microsoft Dynamics® AX 2012 3.all is selected in the Grouping field Select a method of payment used for the actual payment fee in the Method of payment field. 6.8 PAYMENT FEE SETUP FORM 4. select the payment specifications in the Payment specification field. Select the currency code for the fee in the Currency field. 9-16 .table is selected in the Grouping field o Bank groups . Select among: o Amount o Percent o Interval 7. Enter the size of the fee in the percentage of the payment or the amount for one payment in the Fee amount field. 5. all currencies enable the fee. FIGURE 9. If you leave this field blank. Select the currency that enables the fee in the Currency field.

NOTE: If sales tax is calculated. Enter the maximum transaction amount to enable the fee in the Maximum field. 4. and the sales tax amount is posted on a sales tax account. Enter the date the date interval starts for fee calculation in the From date field.General Perform the following to define additional options for the Payment Fee Setup. Enter the ending date for date interval for fee calculation in the To date field. click the General tab. 3. 7. it will not be applied. 2. If the calculated fee is less than the value entered in the Minimum fee field. GENERAL TAB 9-17 . From the Payment fee setup form. 5.Chapter 9: Accounts Payable Setup Procedure: Define Payment Fee Setup . you can select a Sales tax group and an Item sales tax group to generate the relevant taxes. 1.9 PAYMENT FEE SETUP FORM. the net amount is posted on a ledger account. 6. Enter the minimum transaction amount to enable the fee in the Minimum field. If a financial cost is selected. FIGURE 9.

From the Payment fee setup form. Enter the size of the fee in percent of the payment or amount for one payment in the Fee 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. 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. click the Interval tab. Perform the following to define an interval payment fee setup.Financials I in Microsoft Dynamics® AX 2012 Procedure: Define Payment Fee Setup . 2. such as the following: 9-18 • Credit • Cash in advance • Bill of exchange • Check and electronic payments . 4. FIGURE 9. 3. Select whether the specification is a percentage or an absolute amount in the Percentage/Amount field. 1.10 PAYMENT FEE SETUP FORM.

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

This is the default value.the method of payment is a check. or to let vendors know which invoices were paid on a particular date. 9. o Other . In the Posting area in the Account type field.method of payment is none of the other choices or is not yet assigned.Financials I in Microsoft Dynamics® AX 2012 8.the method of payment is a promissory note. The most common account type is Bank.vendors form click the File formats FastTab. Select the Allow copies of payments check box to allow users to print non-negotiable copies of payments for the selected method of payment. the system performs bank validations that are skipped if you use other payment types. o Promissory note . 3. such as electronic funds transfer (EFT). o Electronic Payment . o Check . Select the liquidity account for payment in the Payment account field. When this payment type is used. From the Methods of payment .the method of payment is electronic. FIGURE 9. select the kind of offset account that is used for payments. 2. Users might need to print copies of payments to resolve payment disputes. Select what type of payment is allowed in the Payment type field.General Perform the following to add general information to the method of payment: 1.11 METHOD OF PAYMENTS Procedure: Create a Method of Payment . 9-20 .

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

Validation is executed during posting if a method of payment is selected on a journal.verifies that a note follows the payment o Payment ID is mandatory .12 METHODS OF PAYMENT . FILE FORMATS FASTTAB Procedure: Create a Method of Payment .Financials I in Microsoft Dynamics® AX 2012 NOTE: If the format list is empty. Select the validation for the method of payment.verifies that a payment reference is entered o Payment note is mandatory . Select one or more of the following validation methods: o Payment reference is mandatory . From the Methods of payment . click the Setup button and select from the available formats.Payment control Perform the following to select the validation for the method of payment. FIGURE 9. 2.vendors form click the Payment control FastTab. 1.verifies that a payment identification is filled in 9-22 .

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 .verifies that the check number is entered Offset account has the type bank .13 METHODS OF PAYMENT.

Need a Little Help? 1.Financials I in Microsoft Dynamics® AX 2012 Lab 9. 9-24 . 3. Format 1 pr. 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. Create a new method of payment and name it SCD. 4. assign the N014 terms of payment to the vendor. Step by Step Create a new method of payment called SCD. Click the New button to create a new method of payment. 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. for the next few months to help them with some accounts receivable shortfalls. Attach the new terms of payment and cash discount to the vendor. a vendor with whom Contoso collaborates. The vendor has asked Contoso to pay cash with a special discount. Click Accounts payable. Special Cash Discount. and then click Invoice. Assign the new method of payment to the vendor. 1. The SCD was requested by Lake Electronics.Method of Payment. which specifies that the balance is due in 14 days. 2. In the Method of payment field. payment Challenge Yourself! Help April set up the method of payment. 2. click Payment. type SCD. the Accounts Payable Clerk at Contoso has been asked to set up a new method of payment called special cash discount (SCD). and Cash Discount Scenario April.2 . Also. click Setup. Click the Period arrow. and then click Methods of payment. Special Cash Discount. Terms of Payment.

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

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

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

2. and the Primary receipt posting list is set to Vendor. 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 system posts the transaction to account number 510120.15 INVENTORY POSTING FORM Perform the following to further define parameter values: 1. receipt. whereas the focus of logistics is the issue. For example. The first matching account is used for posting. The focus of finance is related to consumption and revenue accounts. click Setup.Financials I in Microsoft Dynamics® AX 2012 o All . and then click Accounts payable parameters. 9-28 . Click the Posting FastTab and select whether the primary posting should be assigned to Item or Vendor in the Primary receipt posting field. the transaction is posted to account number 510100 because of the Accounts Payable parameter setup. decide which accounts you must set up. because the item relation is more specific than the account relation. To access the Accounts payable parameters form. which is part of vendor group 50.Each transaction is posted for all item numbers in the same account in the ledger. FIGURE 9. click Accounts payable. If you buy some of item type B-R14 from vendor 3000. and packing slip accounts. 3. Based on the kind of business that you run. set up the Primary receipt posting list to prioritize the Item. Click Ledger and sales tax on the left navigation pane. and you bought some of item type B-R14 from vendor 3000.

16 ACCOUNTS PAYABLE PARAMETERS FORM. LEDGER AND SALES 9-29 .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.

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

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

Select the Cancel check box to indicate whether you want to be able to cancel transactions created that have this posting profile. Select the name of any other posting profile to change to when transactions with this posting profile are closed in the Close list. A transaction automatically becomes closed when it is settled in full. Specify which vendors belong to the current posting profile in the Account/Group number field. FIGURE 9. o If All is selected in the Account code field. 3. do not fill in the field. Click the Add button to add a new line.Financials I in Microsoft Dynamics® AX 2012 7. enter the account number of the vendor to whom the posting profile relates. 9-32 . click the Setup FastTab. enter the vendor group to which the posting profile relates. 2. 8.Setup Perform the following to set up the ledger accounts that are posted to when you post transactions in Accounts payable: 1. o If Group is selected in the Account code field. From the Vendor posting profiles form. o If Table is selected in the Account code field. Select an Account code: o Table o Group o All 4.17 VENDOR POSTING PROFILES FORM Procedure: Create a Posting Profile .

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

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

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

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

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

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

the distinction is indicated here. 8.Define Vendor Profile Vendor profiles allow organizations to track specific details about vendors. click the Vendor profile FastTab. Select the Locally owned check box if the vendor meets your guidelines for being a locally owned business. For example. From the Vendors form. Collecting this data allows local businesses to have priority on certain contracts. 5. 1. You can use this indicator to associate bids and other documentation with the vendor account. You can collect this data to generate reports about this information. Select the Small business check box if the vendor meets your guidelines for being a small business. 3. 4. Select a buyer group in the Buyer group list. Perform the following to define vendor profiles. and items/planned orders when you create purchases and productions. Select the Bid only check box if the vendor has submitted quotes or proposals but has not yet been approved for purchases. Select the One-time supplier check box if the vendor is a one-time supplier. 2. If the One-time supplier check box is selected when a purchase order is created.19 VENDORS FORM. employees.Chapter 9: Accounts Payable Setup 7. FIGURE 9. 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. MISCELLANEOUS FASTTAB Procedure: Create a Vendor . 9-39 . Select a Customer account number if vendor is also a customer and used in Intercompany transactions. Your selection creates links between vendors.

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

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

9-42 . 11. Click Accounts payable. In the Name field. April. Click the Cash discount arrow. and then click 4%D10. click Vendors.other vendors Credit limit 10. Click the Payment FastTab. Click the General tab. Close the form.USD Cash discount 4%D10 Terms of payment N015 Challenge Yourself! Help April create a new vendor. 9. click Common.Financials I in Microsoft Dynamics® AX 2012 Lab 9. Click the Terms of payment arrow. 2.00 in the Credit Limit field.5 . Click the Miscellaneous details FastTab and then type 10. must set up this new vendor. Step by Step Create the new vendor. and then click N015. type Dakota Travel. 1.000. 3. 10. The following details apply: Field Value Vendor group 80 . 6. A new vendor account number will be assigned automatically. 8. Click the New Vendor button on the action pane to create a new vendor. the Accounts Payable Clerk.Vendors Scenario Contoso has begun working with a new vendor.000 Method of payment Check payment . 7. and then click All vendors. Click the Method of Payment arrow. 4. Tab to the Group field and type 80. and then click USAUSD_CHK. 5. Dakota Travel.

current month or current quarter). 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. 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. For example. • Set up Microsoft Dynamics AX to manage the cash discount with or without sales tax to comply with the tax legislation in various countries. • 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). You can decide whether you want special ledger accounts to post. based on the following: o o The current period The number of net days • Set up the cash discounts as multiple (for example. • 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. you can group vendors by the kinds of products you purchase from them or by the dollar volume of purchases. You can do the following with payment options: • Define terms based on the number of months and/or days. 9-43 . • Set up advanced payment schedules and use them as terms of payment based on many factors. and with or without additional months or days. based on a current period (for example.Chapter 9: Accounts Payable Setup Summary Payment options in Microsoft Dynamics AX are flexible to accommodate different business processes.

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. 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.Financials I in Microsoft Dynamics® AX 2012 Test Your Knowledge Test your knowledge with the following questions. A payment schedule consists of which of the following? ( ) Payments ( ) Consecutive time intervals ( ) Consecutive payments ( ) Consecutive payments in set time intervals 2. 1. 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. 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.

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. 9-45 . 2. 3.

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. . 4 : Enter a description. 5 : Select the payment method. 6 : Specify the days (or other time unit). A payment schedule consists of which of the following? ( ) Payments ( ) Consecutive time intervals ( ) Consecutive payments (•) Consecutive payments in set time intervals 2. 3 : Enter a terms of payment identifier.Financials I in Microsoft Dynamics® AX 2012 Solutions Test Your Knowledge 1. Outline the steps to setting up a term of payment. Step: 9-46 1 : Access the Terms of payment form in Accounts Payable. Place the following steps in order. 2 : Create a new record.

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. 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.Chapter 9: Accounts Payable Setup 4. 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. How many vendor groups must be set up? ( ) None (•) One ( ) Two ( ) Ten 9-47 .

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

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

depending on the company's size. 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. 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.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. structure and organization. 10-2 .

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

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

but you can overwrite them. 5. GENERAL TAB Procedure: Register an Invoice . The code appears in the Currency field in the journal lines.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. View the account type that the journal uses as the default offset account type in the Account type field. Enter the number of the external document in the Document field. FIGURE 10. If you leave the field blank. View the default offset account that copies automatically to all lines in the journal in the Offset account field. 3. 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. View the voucher number allocation in journals at the time of posting in the Number allocation at posting field. click the Setup tab.2 INVOICE REGISTER. Perform the following steps to view or change posting parameters for the journal: 1. The number copies to the journal lines. 2. 4. 6. the default currency is inserted in the journal lines. Enter the currency code in the Currency field. 7.Setup Most of the fields on the Setup tab inherit data from the Journal names form and Exchange rates form. Explanations of these fields are available in the topic about journal names and exchange rates. From the Journal form. 10-5 .

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

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

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

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

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

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

Procedure: Delete an Invoice To delete an unposted journal line. GENERAL TAB Procedure: Register Invoice Lines . If you designate financial dimensions in the Journal form. Override any of those defaults now or enter financial dimensions if no defaults are set up in the Journal form. highlight the line and either click the Delete button from the Toolbar or click the Functions button and select Delete journal lines. • Post: post the selected lines. 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.Dimension On the Financial dimensions button. In an invoice approval journal. FIGURE 10. click the Post button to post the invoice journal.Financials I in Microsoft Dynamics® AX 2012 8. Specify the state for the delivery in the State field. 9.6 JOURNAL VOUCHER FORM. they default on each transaction. If an error exists. When you post the journal lines. Enter the amount to report in the 1099 form in the 1099 state amount field. 10-12 . Procedure: Post an Invoice After you enter all the invoice journal lines. no lines are posted and an error message is displayed. set up the financial dimensions for the invoice register transaction. you transfer them to an invoice pool. you can transfer them from the invoice pool into the invoice approval journal.

The following applies to the invoice pools: • The invoice pool displays the relevant information about the invoices awaiting approval. 10-13 . April registers and posts the approval in the invoice approval journal. Invoice Pool To view the postings in the invoice pool click Accounts Payable. Scenario April. the Accounting Manager. the postings display in the invoice pool. Click the Purchase order button to select and approve the purchase orders. registers an incoming invoice in the invoice register and posts the registration. Phyllis approves the invoice with a signature or a stamp and returns the invoice to April. enter the vendor invoices directly into an invoice journal.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. April sends the physical invoice to Phyllis. and then click Invoice pool. • The invoice pool holds invoices originating from a purchase order that originate from an invoice register. the Accounts Payable Clerk. for approval. Invoice Approval Journal After you post the lines of the invoice register. The invoice is now ready to be paid. click Inquiries.

Enter all the other relevant information. Procedure: Approve an Invoice Register Journal Perform the following steps to create an approval journal: 1.Financials I in Microsoft Dynamics® AX 2012 NOTE: All tabs and fields in the Invoice pool form are discussed in the Invoice Register lesson. and then click Invoice approval journal. Perform the following steps to print the Invoices not approved report: 1. click Journals. 10-14 . 6. you can specify: o Vendor account o Employee o Due date 3. The report reminds them to approve the invoices. FIGURE 10. Click Accounts Payable. Refer to the Invoice Register lesson to view the field explanations. Click New to create a record. Select the line and click Find vouchers. In the query window. and then click Invoices not approved. Click the Lines button to create line records. 3. 5. click Status. you may want to run this report by employee. 2. For example. Click Accounts payable. 4. Click the OK button. click Invoices. and then give the report to the relevant people. click Reports.7 INVOICE POOL FORM Procedure: Print Invoices Not Approved The Invoices not approved report displays a list of invoices awaiting approval. 2. Select the approval journal in the Name list.

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

Financials I in Microsoft Dynamics® AX 2012 Lab 10. April's typical workflow is to create invoice registers on Monday. the Accounts Payable Clerk at Contoso. The invoice register and the invoice approval journal are in journals. 3. 10-16 . and invoice approval journal to complete the workflow outlined in the scenario. The approver must be specified in the Approved by field in the invoice register. The invoice pool is in inquiry.Register an Invoice Scenario April. view the invoices to be approved in the invoice pool on Tuesday. 2.1 . approve the invoices by using the invoice journal on Tuesday and Wednesday. invoice pool. and if there are enough to process. creates invoice registers and approves invoices. Need a Little Help? 1. 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.

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

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

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

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. 10-20 . click Invoices. Select one or more invoices in the Invoice pool excl. click Journals.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. 2. click Invoices. 5. 6. 3. posting form. click Journals. 4. and then click Post. Click Accounts payable. FIGURE 10. Click the Lines button to open the Journal voucher form to transfer the invoice pool excluding posting record for approval and posting. To find the invoice from the invoice pool excluding posting form. 2. and then click the Accept button to transfer the invoices to the Journal voucher form. Enter the information necessary to create an invoice excluding posting. click Invoice journal to open the Journal form. it is ready to be paid. and then click Invoice pool excl. Click Accounts payable. click the Functions button. posting. The fields are the same as described in the invoice register lesson. and then click Vendor invoice pool excluding posting journal details. Click New to create a new journal. To post the transactions click the Post button. Refer to the topic Procedure: Approve an Invoice Register Journal for more information. After the invoice posts.

In the Invoice field. Designate an approver from the Invoice pool excl. type 1000.2 . Accounting Manager at Contoso.Invoice Pool Excluding Posting Scenario Phyllis. 6. and then click 3002. type INV777. Click the History tab. In the Date field. Need a Little Help? 1. click Invoices. to enter invoices to the invoice pool excluding posting. and then click invoice. posting form. Approve the invoice from the invoice journal. Click Accounts payable. 10-21 . Close the form. 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. and then click Select. type today’s date. has asked April. 8. and then click Vendor invoice pool excluding posting details. Then help Phyllis review and approve them in an invoice journal. Click File . Click the Description arrow. 5. 3. 9. the Accounts Payable Clerk. Click the Approved by arrow. 2. 10. In the Credit field. Click the Vendor account arrow. click Journals. Phyllis wants to review April's work.New to create a new journal. Step by Step 1. 4. 2.Chapter 10: Accounts Payable Daily Procedures Lab 10. click Phyllis Harris. 7.

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

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

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

5. In the Credit field. validate the journal. Click the Offset account arrow.3 . 10-25 . Use the account 3002. Step by Step 1. In the Invoice field. the Accounts Payable Clerk at Contoso.Chapter 10: Accounts Payable Daily Procedures Lab 10. and then click USA OPER. Click the Validate button. type 1300. and create a new journal. Click Accounts payable.Invoice Journal Scenario April. In the Invoice field. and then click Validate. Click the Name arrow. 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. the Accounting Manager. 8. has been asked by Phyllis. 9. to enter an invoice into an invoice journal. Validate and Post the journal. 7. and then click 3002. and then click Invoice journal. 3. click Journals. validate. type INV879. In the Credit field. 5. Need a Little Help? 1. 6. and then click APInv. 2. Click the Offset account type arrow. 4. 2. type INV879. and then post it. Press CTRL+N or click the New button to create a new journal. click Invoices. Open Accounts payable. Click the Account arrow. 3. type 1300. and then click Bank. and post a journal. 10. 4. Click the Lines button.

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

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

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

review the Invoice Register lesson. and post the invoice. print checks or create a payment file.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. Payment Proposal You must post payments made to vendors to ensure the Accounts Payable subsidiary ledger matches the General Ledger. Make payments and enter them according to the terms of payment established with the vendors. Create a journal line and enter the payment details manually. Use the Settlements option to select the specific invoice lines to pay. approve. • The payment proposal function searches for payment lines that either are due or have a maximum date for receiving a cash discount. use the Generate payments command on the Functions button to generate the payment. 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. • Use the payment journal to enter and post payments. edit them in the payment journal. This is the selected method of payment and the setup of controls if the system should. for example. 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. 10-29 . As soon as the payment lines generate. The Payment proposal option searches for invoice lines that meet selected search criteria. o o • Click Payment proposal. After you create all the payment lines. Click Functions and select Settlement. it is time to pay the invoice. Payment journals have the following characteristics: • You can create payments through the payment journal.

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

Select the Delete negative payments check box to delete payments. 8. • Review each proposal line and the associated open transactions before settlement. For example. 7. Enter the date the payment is due in the Total payment date field. transfers vendor transactions proposed after the due date Click the Select button to select specific vendors or a range of vendors. Enter the lowest date for the payment in the Minimum date field. Procedure: Create a Payment Proposal . and enter the values to be implemented. 4. Enter the period for the vendor transactions to include in the payment proposal in the From date and To date fields. 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. To change certain fields on several lines in one operation. put the pointer on the line and click the Delete button. 5. 3.Payment Proposal Lines After you select options and then click the OK button. To delete a line. if the amount to be paid is negative. 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. 10-31 . view the open invoice transactions that contribute to the payment proposal line in the upper Open transactions pane. Add other criteria as appropriate in the other fields. Enter the maximum lines to pay in the Transaction limit field. and after that. click the Multiple change button. Enter the total amount to selected for payment in the Amount limit field. 10. • When you select a payment proposal line. 9. select the lines. Select the Generate check box to generate a payment journal.Chapter 10: Accounts Payable Daily Procedures 2. 6. and then click the OK button.

4. Verify the balances of company bank accounts to ensure you can make the payments. 2. continue to edit the lines in the payment journal if necessary. Click Accounts payable > Journals > Payments > Payment transfer. When this option is selected the Open transactions pane only shows transactions related to the current payment suggestion. 3. the system updates open transactions. and then click Balance control. 1.10 VENDOR PAYMENT PROPOSAL FORM Procedure: Create a Payment Proposal . 10-32 .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. Validate. To view the balances. In the Payment journal lines form. and then click Post to generate the payments. 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 Inquiries button. Generate Payment Transfers Use the Payment transfer form to manage payments with a status of Sent that are not posted. When you move between payment suggestions.Transfer. After you inspect all the proposed lines click the Transfer button to move the lines to the payment journal. These include payments that have lines with statuses of Rejected or Approved. FIGURE 10. Click the Validate button to validate the payment lines. Click the Post button. 5.

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

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

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

10-36 . Fill in the fields and then click the Document button to print the check. Or. if you are making a check payment. For example. 2. 3.Financials I in Microsoft Dynamics® AX 2012 Perform the following steps to generate a payment.Print Checks Perform the following steps to print checks: 1. and then click Generate payments. click the Dialog button to pay with checks. Select the bank account from which to withdraw the payment in the Bank account list. click the Functions button. Select the method of payment for the invoice lines you are paying in the Method of payment list. From the Generate payments form.11 GENERATE PAYMENTS FORM Procedure: Generate Payments . select the method of payment for checks. select an export format in the Export format list. 2. Click OK to print the checks. From the Journal voucher form. FIGURE 10. 1. 3.

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

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

the CFO at Contoso. 2. She has submitted her expenses using an outside travel agency called Margie's Travel. each in a separate journal. After you complete the required steps. must register and post the invoices. She must then validate and post each journal. Post the approvals for these transactions in one journal.Chapter 10: Accounts Payable Daily Procedures Lab 10. Enter the expense accounts to balance each line item: o For the Airfare line. Post the journal. Generate the payment(s) for this invoice. 10-39 . April. use account 601500 o For the Hotel line. validate and post this journal. the Accounts Payable Clerk at Contoso. Register the invoices. has returned from the annual Microsoft conference called Convergence. 7.4 . 3. 6.Payment Journals Scenario Sara. 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. 5. use account 601500 4. Make the appropriate edits and validate the journal again.

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

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

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

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

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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13 ACCOUNTS PAYABLE PARAMETERS FORM. select the Match charges check box.00.50.50. based on the purchase order. is 10. FIGURE 10. Therefore. Optional: To match actual charges with expected charges.Financials I in Microsoft Dynamics® AX 2012 7. the tolerance is 5 percent. select when an icon is displayed if a discrepancy for invoice matching exceeds the tolerance. For example. If you select If greater than or less than tolerance. In the Charges tolerance percentage field. the icon is also displayed if the charge is less than 9. a charges match icon is displayed if the actual charge exceeds 10. a. In the Display charges match icon field. INVOICE VALIDATION 10-54 . The icon can be displayed when a positive discrepancy exceeds the tolerance. b. based on information on the purchase order. and the expected charge. or when either a positive or a negative discrepancy exceeds the tolerance. enter the maximum percentage variance that is acceptable.

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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Financials I in Microsoft Dynamics® AX 2012
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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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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Financials I in Microsoft Dynamics® AX 2012
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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Financials I in Microsoft Dynamics® AX 2012
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

Click the Table restrictions FastTab. Perform the following steps to enable automatic settlement. 1. if a company must handle many small vendors with few payments. Click Update The marked transactions are offset against each other. it is more convenient to use automatic settlement of invoices and payments.16 OPEN TRANSACTION EDITING FORM Procedure: Enable Automatic Settlement In some cases. 4. Select the relevant vendor posting profile. 2. TABLE RESTRICTIONS FASTTAB 10-65 . 3. click Setup. FIGURE 10. Select the Settlement check box. and then click Vendor posting profiles.17 VENDOR POSTING PROFILES FORM. for example. FIGURE 10. 8.Chapter 10: Accounts Payable Daily Procedures 7. Enter the cross rate for each transaction that you selected to be settled with a primary payment transaction in step 5. Click Accounts payable.

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

History displays an overview of settlements for the current voucher. o Today's date: use today's date. Click the Reverse button. The date must be the same as. The system changes the settlement amount. and changes the status. Select how to determine the settlement reversal posting date to use: o Latest date: use the date of the most recent original settlement. or later than.Chapter 10: Accounts Payable Daily Procedures 5.18 CLOSED TRANSACTION EDITING FORM 10-67 . the date of the most recent transaction involved in the settlement. FIGURE 10. 6. makes corrections. o Selected date: use the date that you specify.

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

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

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

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

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

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

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

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

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. Record approved invoices directly in the invoice journal. 10-76 . If you record invoices for every date. and the option to match vendor invoices to physical deliveries of goods. • Prepayments • Print Management Microsoft Dynamics AX enhances the preferred procedures for handling financial interactions with both simple and advanced options. do so in the invoice pools. • Payment proposals.

( ) True ( ) False 3. You can use the invoice pool to view registered invoices that are ready for posting.Chapter 10: Accounts Payable Daily Procedures Test Your Knowledge Test your knowledge with the following questions. 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. 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. ( ) True ( ) False 4. Invoice matching is the process of matching information from what documents? (Select all that apply) ( ) Purchase Order ( ) Vendor Invoice ( ) Product Receipt ( ) Vendor Checks 6. such as dates ( ) To Edit fully applied or settled transactions 10-77 . ( ) True ( ) False 7. ( ) True ( ) False 2. the postings display in the payment proposal. You must validate the journal before you post. In the Is marked field. After you post the lines of the invoice register. 1. a red icon appears if a transaction already is selected for settlement.

account.Financials I in Microsoft Dynamics® AX 2012 8. 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. ( ) Ensures that you have selected the correct vendor. ( ) Verifies that the journal balances. or any combination of these three. transaction. 12. 9. ( ) Verifies that all mandatory fields are filled in. Which of the following activities are uncontrollable with print management settings? ( ) Number of copies to produce ( ) Page orientation ( ) Multilingual document footer text 10. 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.

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 . 3. 2.

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

How do you create payment lines in the payment journal? (Select all that apply) (√) Manual payment journal ( ) Payment transfer (√) Settlement (√) Payment proposal 10-81 .Chapter 10: Accounts Payable Daily Procedures 7. transaction. account. ( ) Ensures that you have selected the correct vendor. (√) Verifies that the journal balances. 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. or any combination of these three. 12. 9. such as dates (√) To Edit fully applied or settled transactions 8. 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. 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. 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. What does validation do? (Select all that apply) (√) Ensures that everything is correct prior to posting. (√) Verifies that all mandatory fields are filled in.

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

• Create a payment day. Accounts Receivable offers extensive functionality to set up different customer payment options. • Create a method of payment. • Create a new customer.Chapter 11: Accounts Receivable Setup CHAPTER 11: ACCOUNTS RECEIVABLE SETUP Objectives The objectives are: • Create a payment schedule. • Create terms of payment. • Create a payment fee. Introduction This course introduces the setup procedures and defaults you can use throughout the Accounts Receivable module. 11-1 . 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. • Set up a cash discount. • Set up customer groups. • Set up posting profiles.

and then click Payment schedules. To access the Payment schedules form. The payments can be a: • Set amount • Specified number of payments wherein the amount owed is divided to create equal payments For example. Select an allocation method in the Allocation list: o Total . During this period the invoice is not considered past due as long as the customer makes the scheduled payments on time. Enter a description in the Description field. fixed amount is due for each payment on the specified payment dates. The customer pays 2. This is known as a finance plan.S. 11-2 . 4.000 U. or contract payments. click Payment. 2. the payment schedules and amounts must be defined on the Payment lines tab.Financials I in Microsoft Dynamics® AX 2012 Payment Schedule Use payment schedules to pay invoices in installments. 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. click Accounts receivable. an invoice of 10. o Fixed quantity .000 USD each month until the balance is paid. 3.the total amount outstanding on the invoice is due. dollars (USD) is recorded. o Fixed amount . 5. Procedure: Create a Payment Schedule Perform the following steps to create a payment schedule: 1. o Specified .a specified amount is due on each specified date. If Specified is selected. Enter a name as identification of the payment schedule in the Payment schedule field. Click the General FastTab. click Setup. To set up a payment schedule.payment of the total amount is divided into a fixed quantity of payments.a specific.

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

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

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

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

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

select a value from the Weekday list. On the Payment day lines FastTab. and if you select Month. If you select Week. Click New to create a new record. click Setup. click Payment. FIGURE 11.4 PAYMENT DAYS FORM 11-8 . 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. enter a value between one and 31 in the Day field. 4. 3. 2. 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. Click Accounts receivable. and then click Payment days.Financials I in Microsoft Dynamics® AX 2012 Procedure: Create a Payment Day Perform the following steps to create a payment day: 1. select between Week and Month in the Week/Month field.

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

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

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

However the amount actually paid by the customer is 95. click Setup. click Setup. Considering the cash discount. If there are multiple cash discounts so that an overpayment was settled against multiple invoices.50).50 is posted to the ledger account specified for cash discount differences automatically.50 USD. the invoice is settled. If the Cash-discount administration parameter is set to Unspecific. click General ledger. If the Cash-discount administration parameter is set to Specific. To access the Accounts receivable parameters form. the system will adjust the cash discount. Click Sales tax. and then click Accounts receivable parameters. the invoice is settled and the difference of 0. a customer's invoice total is 105. the adjustment to the discount is from the last invoice to the first discount. 11-12 .the overpayment or underpayment amount is posted to the customer cash discount account.00 USD. Specific . 3. o If the applicable cash discount was posted in the same company as an overpayment. the customer should pay 94.00 USD and the obtainable cash discount is 10.50 is posted to the customer's cash discount account. 2. 2. Procedure: Define General Ledger Parameters Perform the following steps to specify general ledger parameter values that affect the cash discount calculation: 1. To access the General ledger parameters form. and the difference of 0. it is posted to the system cash discount account. Click Settlement. If the applicable cash discount was not posted in the same company as an overpayment. 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 Accounts receivable. and then click General ledger parameters.the underpayment amount is posted to the customer cash discount account.50 USD ($105-10. Select from the following values: o Unspecific . For example.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.

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

11-14 . payment specifications.table is selected in the Grouping list o Bank groups . select an main account number in the Main account field for posting in the ledger.all the bank accounts 3. remittance types. click the Payment fee setup button. The fee is valid for each field for: o Table . 2. Select a method of payment used for the actual payment fee in the Method of payment field. Select the journal type for which the fee is valid in the Journal type field. 5. Select whether to charge the Customer or Ledger to use a financial cost for the fee in the Charge list. currencies. Select the kind of bank information required to start the fee in the Groupings field.group is selected in the Grouping list o Skip .the bank account selected in the field Bank relation o Group . methods of payment.Financials I in Microsoft Dynamics® AX 2012 4.6 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. FIGURE 11.all is selected in the Grouping list 4. Select a bank relation from the Bank relation field if: o A bank account .the bank group selected in Bank relation o All . time periods. and amount intervals. Perform the following steps to set up a payment fee: 1. If Ledger is selected. From the Payment fee form.

6. 9. Select the calculation method in the Percentage/Amount list. select the payment specifications in the Payment specification field.Chapter 11: Accounts Receivable Setup 5. Select the currency code for the fee in the Currency field. Only transactions with this currency can activate the fee. Select among: o Amount o Percent o Interval 8. If you leave this field blank. If the company agrees with the bank to specify the payment. Enter the size of the fee in the percentage of the payment or the amount for one payment in the Fee amount field. FIGURE 11. all currencies activate the fee. 7. Select the currency that activates the fee in the Currency field.7 PAYMENT FEE SETUP FORM 11-15 .

you can select a Sales tax group and an Item sales tax group to generate the relevant taxes. Enter the maximum transaction amount to activate the fee in the Maximum field. 11-16 . Enter the minimum transaction amount to activate the fee in the Minimum field. 4. 3.General Perform the following steps to define additional options for the payment fee setup: 1. Enter the ending date for date interval for fee calculation in the To date field. 5. click the General tab. 2. From the Payment fee setup form. If the calculated fee is less than the value entered in the Minimum fee field. it will not be applied. If a financial cost is selected.Financials I in Microsoft Dynamics® AX 2012 Procedure: Define Payment Fee Setup . Enter the date the date interval starts for fee calculation in the From date 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. Enter the size of the fee in percent of the payment or amount for one payment in the Fee amount field.Chapter 11: Accounts Receivable Setup `NOTE: If sales tax is calculated. Perform the following steps to define an interval payment fee setup: 1. 2. From the Payment fee setup form.8 PAYMENT FEE SETUP FORM. 4. GENERAL TAB Procedure: Define Payment Fee Setup . click the Interval tab. 11-17 . the net amount is posted on a ledger account. and the sales tax amount is posted on a sales tax 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. 3. FIGURE 11.

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

Select the payment status required to post a payment with this method of payment in the Payment status field.Chapter 11: Accounts Receivable Setup 7. o Check: the method of payment is a check. Enter or view the number of the last file that was sent in the Last file field. o Bill of exchange: the method of payment is a bill of exchange. FIGURE 11. 11-19 . o Credit card: the method of payment is a credit card. select the type of offset account that is used for payments. 3. The most common account type is bank. o Electronic payment: the method of payment is electronic. In the Posting area in the Account type list. which is usually today’s date. such as electronic funds transfer (EFT).CUSTOMERS FORM Procedure: Create a Method of Payment . Select the liquidity account for payment in the Payment account list. 2. In the Today field. When this payment type is used. enter or view the number of the last file that was sent on the system date.9 METHODS OF PAYMENT .General Perform the following steps to specify general information format: 1. 8. 4. Select the Payment type that is associated with the method of payment. or is not yet assigned. This is the default value. 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.

This field is only active when the account type is bank.File Formats Perform the following steps to specify the file format: 1. . Return format Specify a format to return a message from the export format if the bank supports an electronic return file. 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.Financials I in Microsoft Dynamics® AX 2012 5. 6. Click the File formats FastTab. 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. Procedure: Create a Method of Payment . 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. Enter the transaction type for a bank account in the Bank transaction type field. Remittance format Specify the file format for remittances to a specific bank. 2.

Payment Control Perform the following steps to select the validation for the method of payment: 1. Select one or more of the following validation methods: o Check number is mandatory . Select the validation for the method of payment.Customers form click the Payment control FastTab. click the Setup button and select from the available formats.Chapter 11: Accounts Receivable Setup NOTE: If the format list is empty. From the Methods of payment .verifies that the check number is entered o Payment reference is mandatory .indicates that the option to use a deposit slip must be selected 11-21 .10 METHODS OF PAYMENT .CUSTOMER FORM.verifies that a payment reference is entered o Use deposit slip must be checked . FILE FORMATS FASTTAB Procedure: Create a Method of Payment . FIGURE 11. 2. Validation is executed in the journals upon posting when the payment method is used.

PAYMENT CONTROL FASTTAB 11-22 .CUSTOMERS FORM.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.verifies that the offset account type selected is Bank Bank transaction type is mandatory .

7. In the Grace period field. type 2. type Cash .2 . 11-23 . and then click 02. 4. and then click Methods of payment. Close the form. click Payments. Click the Period arrow. click Setup. 6. 11. Click the Account type arrow. Click the Payment status field. In the Description field. and then click Total. 3. 8. has decided to also offer a two-day grace period for all Euro cash payments. Phyllis. Click the Bank transaction type arrow. Click New to create a new method of payment. and then click None. the Accounting Manager. type in CASH_EUR. Step by Step 1. 5. 10.Euro. Click the Payment account arrow. 9. and then click EUR OPER. Click Accounts receivable.Chapter 11: Accounts Receivable Setup Lab 11.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. 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. In the Method of payment field. 2. and then click Bank.

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

7.000. A payment term is then specified that corresponds to the current month + 30 days.00 USD is due for payment on July 30. 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. On this basis. Then a sale of 10.Chapter 11: Accounts Receivable Setup 5. Enter a Default tax group for this customer group. FIGURE 11. Use the payment term in connection with coverage of customer payments based on one sales budget per customer group.000. 6. For example.00 USD is budgeted for June 15.12 CUSTOMER GROUP FORM 11-25 . a sales budget is set up for customer group X. Use the payment terms with coverage of customer payments based on one sales budget for each customer group. 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. coverage is arranged so that the budgeted item sale of 10.

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

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

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

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

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

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

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

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

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

Chapter 11: Accounts Receivable Setup NOTE: You can create and maintain currency codes and exchange rates in the Exchange rates form. From the Customers form. FIGURE 11. 11-35 . click the Edit button on the action pane to edit fields. Click the General FastTab. You can change the customer's invoice currency in the invoice header before entering sales order lines. 2.General Perform the following steps to set additional customer options: 1.15 CUSTOMERS FORM Procedure: Create a Customer .

including the Sales tax group account 4. When you select the customer group. FIGURE 11. GENERAL FASTTAB 11-36 . the values of certain fields in the Customer groups form are automatically copied to the customer account. The fields that are included are: o Terms of payment o Settle period o Item posting ledger accounts. naming information and a language.16 CUSTOMERS FORM. You must specify a customer group for each customer. The language value defaults from the Company information form. The language select in the Language field is used for all external documents such as sales orders. Select a Classification group to be used with prioritization or sorting. In the Organization details section select the following: o Number of Employees o Organization Number o ABC code o DUNS number 6. select Address books. 5.Financials I in Microsoft Dynamics® AX 2012 3. In the Other information area. Select the customer group that the customer belongs to. The language code is mandatory.

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

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

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

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

must set up this new customer. Need a Little Help? 1. Click the Credit and collections FastTab. The following details apply: Option Value Customer group Major Credit limit 10. After all the information is entered close the form. the Accounts Receivable Clerk. 8. Step by Step 1. 2.. click Common.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. In the Customer group field. Click the Edit button on the action pane. In the Credit limit field. Open Accounts receivable and use the Customers form to create a customer. 2. iClick Accounts receivable. 7. 11. 6. Arnie. and then click All customers. Click the Invoice and delivery FastTab. click Customers. select customer group 20. Click the Customers button on the action pane to create a new record. 3.Chapter 11: Accounts Receivable Setup Lab 11. In the Record type field. enter 10000. select Organization. 9. 3.5 . 4. type Adventure Works. Adventure Works. Click the Save and open button and select Customer. 11-41 .Create a Customer Scenario Contoso has begun working with a new customer. In the Name field. 5. 10. Click the Edit button on the action pane and enter the information in the proper fields. Use the default number in the Customer account field.

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

Chapter 11: Accounts Receivable Setup Summary Payment options in Microsoft Dynamics AX are flexible to accommodate different business processes. 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. 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. current month or current quarter). 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. For example. you can group customers by the types of products you sell them or by the dollar volume of sales 11-43 . If you require cash discounts. 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. you can set them up as multiple (for example. ten days 3 percent and 30 days 1 percent). By grouping customers.

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. How many customer groups must you create in the system? ( ) At least one ( ) At least two ( ) At least three ( ) At least four 11-44 .Financials I in Microsoft Dynamics® AX 2012 Test Your Knowledge Test your knowledge with the following questions. Customers earn cash discounts by paying an invoice within a specified period. 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. 1.

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 .Chapter 11: Accounts Receivable Setup 6.

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. 11-46 . 2. 3.

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. 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 . Customers earn cash discounts by paying an invoice within a specified period.Chapter 11: Accounts Receivable Setup Solutions Test Your Knowledge 1. (•) True ( ) False 4. 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.

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Financials I in Microsoft Dynamics® AX 2012 Lab 12. Create a free text invoice. Customer Account Forest Wholesales (1101) Invoice Account Forest Wholesales (1101) Date System date Enter the line for the invoice. which she invoices to the customer without creating a sales order. 2. and then posting the invoice. Your task is to help Susan complete the order by creating a free text invoice for the consulting.Create Free Text Invoices During this lab you create and post a free text invoice. 12-10 . the Order Processor at Contoso. Post the invoice. Use the following information to create an invoice for the sale of the design services in Accounts Receivable. Need a Little Help? 1.00 USD Challenge Yourself! Use any of the methods described in this section to create and post the free text 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 1450.1 . has taken an order from Forest Wholesales for consulting design. Scenario Susan.

To post the invoice. On the Customer Account field. enter Invoice for Consulting Design. In the Sales tax group field. 12-11 . Open the Free text invoice form by clicking Accounts receivable. 16. Close the Free text invoice form. 12. enter 1101 (Forest Wholesales). click Post on the Action Pane. Close the Infolog form. click Free text invoice to open the Free text invoice form. 6. click Free text invoices. 2.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. Click OK to post the invoice. 8.00. 15. accept the default. go to the Invoice lines area. In the Amount field. 11. 9. The default information for the customer account is displayed. 4. accept the default. 5. 13. 7. On the Action Pane. In the Invoice Account field. click the drop down arrow. enter System date. To enter the line for the invoice. and then click All free text invoices. In the Main account field. 14. In the Item sales tax group field. In the Date field. On the Free text invoice header FastTab. 3. and select customer 1101 (Forest Wholesales). enter $1450. In the Description field. click Common. enter 401190. select the customer account. 10.

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

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

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

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

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

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

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

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

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

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

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

Sunflower Shopping Mall in the Account field. o Use offset account USA OPER. 2. 3.2 . 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. and then click Payment journal. 4. Select ARPay in the Name field. Click the Lines button and enter the information specified in the example for the payment.499. Scenario Contoso has received a payment from Sunflower Shopping Mall. Use the following information to create a payment journal in Accounts Receivable. o Use customer number 2112. Create a payment journal. 2.Settlements . Click New to create a new journal.Entering an Accounts Receivable Payment Journal (Cash Receipt) During this lab you will create a payment journal.Chapter 12: Accounts Receivable Daily Procedures Lab 12. click Payments. Date Use the system date Account Sunflower Shopping Mall Credit 2. 12-23 . Post the payment journal.00 USD Offset Account USA OPER Challenge Yourself! 1.499 in the Credit field. then click Journals. o Enter the amount of 2. Click Accounts receivable.

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

the invoice and payment are not settled when you create the payment. 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 information is relevant to settling invoices and payments. 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. for example. 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. if.Chapter 12: Accounts Receivable Daily Procedures Edit Open Transactions Use the Settle open transactions form to make changes in transactions for customers. NOTE: If the over/underpayment feature is being used it can force them to be equal and close the transaction. Only unapplied transactions are available for editing. and then closes the transaction 12-25 .

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. If you do not settle a voucher in full. 7. or to select the basis currency used for cross rate calculation. 12-26 . Click Update. 5.4 SETTLE OPEN TRANSACTIONS FORM 1. click Customers. they disappear from this form and transfer to Closed-transaction editing. 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. 2. The selected vouchers offset one another. and then click Settle open transactions. if this transaction is to be the Primary payment. Click Accounts receivable. 4.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. 6. Click the Collect tab. then click Common. Close the Customers form. Select the relevant postings to settle by selecting the Mark check box or click the Mark payment button. click All customers. and then double-click on the customer. 3. Close the Settle open transactions form. the system records it with a status of Open. NOTE: A red icon shows in the Is marked check box if a transaction already is selected for settlement.

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

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

To require reason codes for receivable transactions. or when return orders are posted. 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 . You can view historical reasons in the Customer transactions and Voucher transactions forms.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. and provides management and auditors the ability to analyze transaction history by specific reason. For example. Using standard reason codes instead of transaction text gives users guidelines on what codes to select from. auditors or managers frequently want to see reasons recorded for various transactions.

the default comment that is set up in the Reasons form displays in the Reason comment field.Financials I in Microsoft Dynamics® AX 2012 Reason Codes in Accounts Receivable Transactions After you have created reason codes. The record that is used to print a document determines the footer text for the document. the typed reason comment is not replaced. 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. You can change the default reason comment. each with different footer text. If you type a reason comment first and then select a reason code. and although you can set up default reason comments for each reason code. You can define print management original records. and conditional settings at the module. 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. use defined settings for the original or copy records in print management. 12-40 . or transaction level. set up an original record and two copy records. account. and the number of copies to print. For example. An original or copy record contains the information that print management uses to print the document. to print three copies of the sales order packing slip. which printer to use. Print Management Print management works with Accounts Receivable and Accounts Payable. The effective records are the records established in Print management that control the printed output of original and copy records. no setup is required. If you select a reason code for a transaction. Reason comments are optional.

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

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

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

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

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

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

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. delivered items. You can view the customer invoice and print a copy of it directly from the customer account. and entering renegotiated payment schedules directly into the system. Refer to "Set up Print Management" for more information about available fields in the Print Management setup form. 3. 6. When the query is complete. Decide whether the credit limit applies on the total of the sales order or if you need to control each sales order line separately. Click the Select button. Apply the credit limits to only customer balances or to include uninvoiced. 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. In the Query . Accounts Receivable offers extensive options for editing open transactions. 4. Enter a Description for a conditional setting. click OK. 5. In the left pane of the Print management setup form. right-click an original or copy record and select New. enter query information in the Criteria field. or even sales orders. reopening closed transactions. 12-47 .Setting form.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. 2. You also can stop the customer account automatically at any step during the collection procedure.

Financials I in Microsoft Dynamics® AX 2012 Test Your Knowledge Test your knowledge with the following questions. unless specified otherwise ( ) A sales order that makes the inventory transactions ( ) The item number that specifies and posts in the ledger 3. In settling open transactions. 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. the customer must pay for the invoice. and the customer balance is posted for each customer group. ( ) 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 12-48 . You can create inventory transactions that use item quantities by using Free text invoices. When the invoice is registered and approved. 1. ( ) 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 6. 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.

If the invoice and payment are not settled when you create the payment.Chapter 12: Accounts Receivable Daily Procedures 7. 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. 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. or any combination of these three 11. Can a settlement be reversed if the bank does not honor a payment and it has been closed? ( ) Yes ( ) No 10. Is it possible to split open transactions? ( ) Yes ( ) No 9. transaction.

12-50 .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. 3.

( ) True (•) False 4. the customer must pay for the invoice. You can create inventory transactions that use item quantities by using Free text invoices. 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.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. (•) True ( ) False 2. In settling open transactions. 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 . 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. When the invoice is registered and approved. and the customer balance is posted for each customer group.

transaction. or any combination of these three 11. account. 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 . 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. where can these be settled? ( ) Free text invoice ( ) Payment proposals (•) In the Settle open transactions form ( ) In the Reverse settlements function 8. Is it possible to split open transactions? (•) Yes ( ) No 9. If the invoice and payment are not settled when you create the payment. 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 6. How are print management settings defined? ( ) For each module ( ) For each account ( ) For each transaction (•) For each module.