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Chapter 7: Cash and Bank Management Setup: Objectives
Chapter 7: Cash and Bank Management Setup: Objectives
Introduction
In Microsoft Dynamics AX, companies use the Cash and Bank Management
module to create and maintain bank accounts. The bank account table contains a
record for each bank account. Each record contains bank account information,
such as the following:
The application uses this information to process all bank transactions, such as
payments and deposits.
To use the Cash and Bank Management module, set up the following:
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Scenario
Annie, the bookkeeper at Contoso, must set up the banking functions for a new
company. Annie first sets up the types of transactions Contoso must make, such
as deposits and withdrawals. She then groups these transaction types to allow for
an additional level for reporting and analysis. Next, Annie sets up bank groups
for the banks with whom the company holds multiple accounts. Annie creates
payment purpose codes for reporting to the central bank. Finally, Annie indicates
which account is used for checks returned from the bank and the number series
that is used for banking documents.
After Annie finishes setting up the banking functions, she enters the information
for the company's bank accounts and indicates, for each account, how checks are
to be designed.
Users can indicate the transaction type on journal worksheets. When the journal
is recorded, the application copies the contents of the Bank transaction type
field to the bank transaction.
Create one transaction type for Non-Sufficient Funds (NSF) transactions. NSF
transactions occur when a check is returned from the bank because the bank
account lacks sufficient funds to honor the check.
1. Click Cash and Bank Management, click Setup, and then click
Bank transaction types.
2. Click the New button to create a new record.
3. Enter a unique code in the Bank transaction type field.
4. Enter the name of the transaction type in the Name field.
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Chapter 7: Cash and Bank Management Setup
5. Click the Main account arrow to select the ledger account to post
corrections to and to add data for bank reconciliation.
6. Repeat steps 2 through 5 to create each new Bank transaction type.
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1. Click Cash and bank management, click Setup, and then click
Bank transaction groups.
2. Click the New button to create a new record.
3. In the Bank transaction groups field, enter a group identification
code that refers to this group when a code is used in other system
tables. The bank transaction group is an alphanumeric string of up to
10 characters.
4. Enter a short description in the Description field.
5. Click the Type FastTab.
6. Click the Bank transaction type arrow and select a bank transaction
type to relate to the selected bank transaction group.
The Name field is populated automatically with the Bank transaction
type name.
7. Click the Add button to add additional Bank transaction types to this
Bank transaction group.
8. Click the Remove button to remove Bank transaction types from this
Bank transaction group.
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Chapter 7: Cash and Bank Management Setup
Annie, the bookkeeper at Contoso, must create a bank transaction type for cash
withdrawals. In addition, Contoso wants the option to analyze the total charges
paid to each bank. Annie will create an additional bank transaction group for
bank fees and interest charges.
Challenge Yourself!
Help Annie by creating a new bank transaction type of 20 for cash withdrawals
and a new bank transaction group of 80.
Step by Step
Create a bank transaction type for cash withdrawals.
1. Click Cash and bank management, click Setup, and then click
Bank transaction types.
2. Click the New button to insert a new record.
3. In the Bank transaction type field, enter 20.
4. Enter the name Cash Withdrawal in the Name field.
5. Type in 110110 in the Main account field.
6. Close the Bank transaction type form.
1. Click Cash and bank management, click Setup, and then click
Bank transaction groups.
2. Click the New button to insert a new record.
3. In the Bank transaction groups field, enter 80.
4. Enter Bank Charges in the Description field.
5. From the Bank transaction groups form click the Type FastTab.
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6. Click the Bank transaction type arrow and select the bank
transaction type of 07 for Fees. The Name field is automatically
populated with the Bank transaction type name.
7. Click the Add button to insert a new record.
8. Click the Bank transaction type arrow and select the bank
transaction type of 08 for Interest charges. The Name field is
automatically populated with the Bank transaction type name.
9. Close the form.
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Chapter 7: Cash and Bank Management Setup
1. Click Cash and bank management, click Setup, and then click
Cash and bank management parameters.
2. Click General on the left hand navigation pane.
3. Select the Bank transaction type that is used for Non-Sufficient
Funds (NSF) from the NSF list.
NSF is used to identify returned payments. When the bank returns a
payment the NSF identifier automatically cancels the payment from
the system. It also marks the payment so that it is not selected when
you reconcile the bank account.
4. 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.
5. 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.
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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. If this check
box is cleared, the cancellation is posted immediately when you click the Cancel
payment button in the Deposit slips form
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Chapter 7: Cash and Bank Management Setup
Select the Allow copies of payments check box to allow users to print copies of
payments. These include checks, promissory notes, and electronic payments. The
payment copies are printed as non-negotiable checks, which users can use to
settle disagreements with vendors or customers.
Select a number sequence to associate with each reference from the Number
sequence code list.
1. Click Cash and bank management, click Setup, and then click
Payment purpose codes.
2. Click the New button to enter a new record or click on a line record
to modify an existing code.
3. In the Central bank purpose code field, enter the code used when
reporting to the central bank.
4. Enter the name of the payment purpose code in the Name field.
5. Click the General FastTab.
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Bank Groups
Use bank groups when several bank accounts share the same address information
or routing number. When you create a new bank account and enter the bank
group, the bank group information is copied to the account automatically. For
example, you can create a bank group for one financial institution at which five
accounts are open.
1. Click Cash and bank management, click Setup, and then click
Bank groups.
2. Click the New button to create a new record.
3. Enter a unique code in the Bank groups field
4. Enter the bank's routing number in the Routing number field. The
bank provides the routing number.
5. Enter a brief description of the bank group in the Description field.
6. Click on the General FastTab to enter any additional information for
this account, such as the following:
o Routing number Type: code identifying the type of the routing
number.
o Company ID: banking identification of the bank group that is
used in connection with payments.
o Currency: currency code for the bank group.
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Chapter 7: Cash and Bank Management Setup
7. Click the Address FastTab and enter the address for the bank.
8. Click the Contact information FastTab and enter the information
for the bank group's contact person.
Bank Accounts
Enter and maintain all information for the company bank accounts in the Bank
accounts form. Use the options on the form to view the details for each bank
account, such as transactions, current balance, and checks that have been created.
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1. In the Name field, enter a name that is used to identify this account
on printed reports and other areas.
2. Use the Company statement name to enter the company name as
you want it to appear on your bank statement. This field is only
available when the company's primary address is in Canada or the
United States.
3. 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. This field is only available to legal
entities whose primary address is in the United States.
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Chapter 7: Cash and Bank Management Setup
Prenotes
Select the Prenote required check box if the bank requires prenotes for
electronic transactions.
If prenotes are required, specify the number of days that the bank requires to
process a prenote in the Prenote response days field. The bank must process the
prenote before electronic payments will be accepted. This field is available only
if you selected the Prenote required check box.
Active Status
Use the Active fields to enter specific dates when the bank account becomes
active.
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. If you do not enter a
date, the bank account is immediately available for new transactions.
Active to: enter the date when the bank account will no longer be
active for new transactions. Any existing transactions that are not
completed by this date, such as pending payments, will still occur as
they were originally scheduled. If you do not enter a date, the bank
account remains active indefinitely.
Use the Bank account status to select the status to use for the bank account.
Active for all transactions - the bank account is active and available
for all transactions.
Inactive for new transactions - no new transactions can be
scheduled for this bank account. Existing transactions that have not
yet been completed, such as pending payments, will still occur as
they were originally scheduled.
Inactive for all transactions - no transactions, either new or
existing, can be scheduled or processed for this bank account.
Credit Limit
If the bank uses credit limits for this account, use the Credit limit field to enter
the amount that the bank offers for this account.
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Chapter 7: Cash and Bank Management Setup
NOTE: The values in the Days, Suffix, and Drawer fields all default from the
Bank group, if defined.
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Contoso has opened a new bank account. The bank account will operate
primarily in Chinese Yuan (CNY), but may operate in other currencies. Annie,
the bookkeeper, must create a new bank group and new bank account in
Microsoft Dynamics AX for this bank. Annie does not have address information
for the bank account, but she does have the following specifications:
Challenge Yourself!
1. Add a new account for Cash in bank - CNY to the Chart of accounts.
2. Create the new bank group and assign the Chinese Yuan (CNY) to
the group.
3. Create the new bank account, which is part of the CHTB bank group.
Select the option to enable posting in more than one currency for this
bank account.
Step by Step
Create a new account for Cash in bank - CNY to the Chart of accounts.
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Chapter 7: Cash and Bank Management Setup
Create the new bank group and assign the Chinese Yuan (CNY) to it.
1. Click Cash and bank management, click Setup, and then click
Bank groups.
2. Click the New button to create a new record.
3. In the Bank groups field, enter CHTB.
4. Enter 9876 in the Routing number field.
5. In the Description field, enter Chinese Trading Bank.
6. Click the General FastTab.
7. From the Currency list select CNY.
8. Close the Bank groups form.
Create the new bank account that is part of the CHTB bank group.
1. From the Navigation pane, click Cash and bank management, click
Common, and then click Bank accounts.
2. Click the Bank Account button to create a new record.
3. In the Bank account field, enter CNYBANK.
4. In the Name field, enter Bank Account - CNY.
5. Click the Bank groups arrow and select CHTB.
6. The Routing number field automatically will display 9876.
7. In the Bank account number field, enter 433090321489.
8. Click the Currency management FastTab.
9. Click the Main account field arrow and select 110115.
10. The Currency field automatically displays CNY, which defaults
from the bank group.
11. In the More currencies field, select the check box to enable posting
in more than one currency for this bank account.
12. Close the form.
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Check Layout
Use the Check layout form to set up the check layout for the bank accounts. You
can define a different check layout for each bank account.
1. To access the Check layout form, first access the Bank accounts
form by clicking Cash and bank management, click Common, and
then click Bank accounts.
2. Double-click on a Bank account.
3. On the Action Pane, click the Setup tab, and then click Check.
4. Select the method to use for generating check numbers from the
Check number method list. Select either method:
o Fixed: use this method when you have preprinted checks. Before
you can use checks for payment, they must be created by
clicking Check numbers from the Set up tab on the Action
Pane in the Bank accounts form.
o Free: use this method when you do not have preprinted checks.
Check numbers are automatically proposed when you use checks
for payment.
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Chapter 7: Cash and Bank Management Setup
1. In the Check layout form, select a layout for the check in the Check
form field.
2. Enter the length of the paper on which the check is printing in the
Paper length field.
3. Select the unit in which the paper size is measured from the Paper
length unit list
4. Enter the starting position on the paper where the check must be
printed in the Check start position field.
5. 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, enter 3.00 in
the Check start position field and select 'Inch' in the Unit for the start position
of the check field.
BEST PRACTICES: Print two slip texts so that you can keep one and send the
other.
8. In the Prefix field, enter the text to print in front of the amount on
the check.
For example, if you are entering USD in this field and the check
amount is 1000.00, the printer will print USD 1000.00 on the check.
9. From the Ruler list, select one of the following rulers to display
when you test print.
o None: shows no ruler on test prints.
o cm: shows the ruler in centimeters.
o Inches: shows the ruler in inches.
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If you select the Company logo check box, click the Company logo
button to select the company logo to print on the checks. From the
Image form, click the Change button to select the file that contains
the company logo.
3. Click the Codes tab.
4. Select the option to print ABC codes on the check. For each check
box selected, enter the associated routing number to print on the
check.
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Chapter 7: Cash and Bank Management Setup
NOTE: The MICR line can be included only if the check is to be printed on blank
paper without preprinted information, such as watermarks.
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Chapter 7: Cash and Bank Management Setup
Scenario
Set up the check layout for the new bank account that you created in the previous
lab. Use these check layout requirements.
Challenge Yourself!
Step by Step
1. Click Cash and bank management, click Common, and then click
Bank Accounts.
2. Double-click the line for CNYBANK.
3. Click the Setup tab, then click the Check button on the Action Pane.
4. In the Check number method field, select Free, because pre-printed
checks are not used.
5. In the Check form field, select U.S. check format.
6. In the Paper length field, enter 8.5.
7. In the Paper length unit field, select Inch.
8. In the Check start position field, enter 2.
9. In the Unit for the start position of the check field, select Inch.
10. In the Number of slip copies field, enter 2.
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13. Click the Print test button to preview the check layout.
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Chapter 7: Cash and Bank Management Setup
Summary
This course focuses on how banking functions are structured in Microsoft
Dynamics AX. Companies define bank transaction types to manage transactions,
such as the following:
Deposits
Fees
Payments
Companies then create groups of transaction types for analysis and reporting. In
Microsoft Dynamics AX, companies have the option to create bank groups for
banks in which they hold more than one bank account.
The bank account window holds all the information about each company bank
account and provides quick access to detailed information about each account,
which includes transactions and current balance. For each bank account from
which checks are printed, companies define how the checks for that account will
look.
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3. If you are using pre-printed checks, what method do you select in the Check
number method field?
( ) Variable
( ) Fixed
( ) Print
( ) Original
4. How many signatures can the application print on a check? (Select all that
apply)
()1
()2
()3
()4
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Chapter 7: Cash and Bank Management Setup
1.
2.
3.
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Solutions
1. What is a Bank Transaction Group?
MODEL ANSWER:
MODEL ANSWER:
A bank group is used when several bank accounts share the same address
information or routing number. When you create a new bank account and
enter the bank group, the bank group information is copied to the account
automatically..
3. If you are using pre-printed checks, what method do you select in the Check
number method field?
( ) Variable
() Fixed
( ) Print
( ) Original
4. How many signatures can the application print on a check? (Select all that
apply)
() 1
() 2
()3
()4
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