SFC Finance FRD - V3 PDF

Functional Requirement Document
FUNCTIONAL REQUIREMENT
DOCUMENT
FINANCE
MANAGEMENT
PREPARED FOR:
STAR FASHION CO.LTD
The contents of this document are for the use of client

personnel only. No part of it may be circulated, quoted, or
reproduced for distribution outside the clients
organization without prior consent.
2014 by AxionsPlus Pte Ltd. All rights reserved
1|P a g e
Information
Topics: Financial Management
Author: Kasun Pathirana
Version: 1.00
Comments:
Date : 05/02/2015
This functional design document (FRD) is prepared on the basis of requirements indicated by STAR
FASHION CO.LTD (SFC) key users during Business Analysis sessions held in January 2015. The goal of
this document is to confirm requirements from SFC and to allow core users an understanding of the
AX2009 features related to their requirements.
We would like to take the opportunity to thank all of the participants for their cooperation in
connection with the preparation of this document.
This document is structured in accordance with AXIONSPLUS method for implementation of Microsoft
Dynamics AX projects. The findings of this FRD and Gap Analysis will form the basis of the system
development. This ensures that future tasks are prioritized accordingly and resources used efficiently.
The individual gaps are listed by functional and report area, each gap has been given a complexity level
ranking for development effort of High, Medium, or Low, and an indication if we believe the gap can be
filled by changing the process, introducing a manual workaround, or performing a modification to
standard functionality.
Version
1.00
2.00
3.00
2|P a g e
Date
05/02/2015
17/02/2015
14/04/2015
Description
Initial
Internal Review
Revision after FRD review by process owner
Prepared By
Kasun Pathirana
Gillian Saw
Gillian Saw
Table of Contents
1
1.1
Executive Summary ................................................................................................................. 5

Purpose of the Requirement Specification ........................................................................ 5
System Setup ............................................................................................................................ 6
2.1
2.2
2.7
2.8
Company Basic Information ................................................................................................ 6

Currencies ............................................................................................................................. 6
2.2.1
Exchange Rate ..................................................................................................................................................... 7
Financial Periods .................................................................................................................. 8
2.3.1
Requirement ......................................................................................................................................................... 9
2.3.2
Solution ................................................................................................................................................................ 9
Date Intervals ...................................................................................................................... 10
Chart of Accounts ............................................................................................................... 11
2.5.1
Requirement ....................................................................................................................................................... 12
2.5.2
Solution .............................................................................................................................................................. 12
Financial Dimensions ......................................................................................................... 12
2.6.1
Dimension 1 Intercompany Unit ..................................................................................................................... 12
2.6.2
Dimension 2 Department ................................................................................................................................ 13
2.6.3
Dimension 3 Strategic Business Unit (SBU) ................................................................................................... 13
2.6.4
Dimension 4 Product Category ....................................................................................................................... 14
2.6.5
Dimension 5 Factory....................................................................................................................................... 15
2.6.6
Dimension 6 Brand (Buyer) ............................................................................................................................ 16
2.6.7
Dimension 7 Buyer Division ........................................................................................................................... 16
2.6.8
Dimension 8 Business Segment ....................................................................................................................... 17
2.6.9
Dimension 9 Job Number................................................................................................................................ 17
Bank Account and Bank Reconciliation ........................................................................... 17
Journal Type and Journal Name ....................................................................................... 18
General Ledger ....................................................................................................................... 19
2.3
2.4
2.5
2.6
3.1
3.2
3.3
3.4
3.5
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
5
General ................................................................................................................................. 19
General Journal Entry ........................................................................................................ 20
Taxation (VAT)..................................................................................................................... 21
Budget .................................................................................................................................. 22
Currency revaluation .......................................................................................................... 22
Fixed Assets ........................................................................................................................... 24
General ................................................................................................................................. 24
Fixed Assert Group ............................................................................................................ 24
Fixed Asset Number Sequence ......................................................................................... 25
Fixed Asset .......................................................................................................................... 25
Depreciation profile ............................................................................................................ 26
Value Models ....................................................................................................................... 27
Posting Profile..................................................................................................................... 28
Fixed Asset Locations ........................................................................................................ 28
Fixed Assets Acquisition ................................................................................................... 29
Monthly depreciation of Fixed Asset ................................................................................ 32
Disposal of Fixed Asset ..................................................................................................... 33
Fixed Assets Tax Depreciation Posting ........................................................................... 34
Report .................................................................................................................................. 34
Account Payables .................................................................................................................. 36
3|P a g e

5.1
5.2
5.3
5.4
5.5
5.6
Accounts Payable Setup .................................................................................................... 36

5.1.1
Journal and Voucher Number Sequences .......................................................................................................... 36
5.1.2
Vendor Group setup ........................................................................................................................................... 36
5.1.3
Posting Profile ................................................................................................................................................... 37
5.1.4
Terms of Payment .............................................................................................................................................. 37
5.1.5
Methods of Payment ........................................................................................................................................... 38
5.1.6
Aging Bucket ...................................................................................................................................................... 39
Vendors ................................................................................................................................ 39
5.2.1
Vendor General tab......................................................................................................................................... 40
5.2.2
Vendor Setup tab ............................................................................................................................................. 41
5.2.3
Vendor Address tab ......................................................................................................................................... 41
5.2.4
Vendor Payment tab ........................................................................................................................................ 41
Invoice Journal.................................................................................................................... 43
Payment Journal ................................................................................................................. 45
5.4.1
Bank Interface for GIRO/TT .............................................................................................................................. 50
5.4.2
Cheque Printing ................................................................................................................................................. 50
Revaluation.......................................................................................................................... 51
Reports ................................................................................................................................ 52
5.6.1
Vendor Aging Report ......................................................................................................................................... 52
Accounts Receivable ............................................................................................................. 53
6.1
Accounts receivable setup ................................................................................................ 53

6.1.1
Journal and Voucher Number Sequence ............................................................................................................ 53
6.1.2
Customer Group setup ....................................................................................................................................... 53
6.1.3
Customer Group setup ....................................................................................................................................... 54
6.1.4
Posting profile for Customer.............................................................................................................................. 55
6.1.5
Terms of Payment .............................................................................................................................................. 55
6.1.1
Method of Payment ............................................................................................................................................ 56
6.1.2
Aging Bucket ...................................................................................................................................................... 56
Customer ............................................................................................................................. 57
Free Text Invoice / Debit Note / Credit Note ..................................................................... 58
Customer Payment ............................................................................................................. 60
Report .................................................................................................................................. 61
6.5.1
Customer Aging Report...................................................................................................................................... 61
6.2
6.3
6.4
6.5
7
7.1
8
8.1
8.2
9
Virtual Company ..................................................................................................................... 62

Virtual company .................................................................................................................. 62
Summary Gap Analysis List ......................................................................................................... 64
Function GAP List .............................................................................................................. 64
Report GAP List .................................................................................................................. 65
Client Acceptance ....................................................................................................................... 66
4|P a g e
1 Executive Summary
This Functional Requirement Document (FRD) is prepared on the basis of requirements indicated by STAR
FASHION CO.LTD (SFC) with Key Users during Business Process Analysis sessions held in January, 2015 of this
year. We would like to take the opportunity to thank all of the participants for their cooperation in connection
with the preparation of this document.
This document is structured in accordance with AXIONSPLUS (AXP) method for implementation of Microsoft
Business Solutions projects. The findings of this FRD and Gap Analysis will form the basis of the system
development. This ensures that future tasks are prioritized accordingly and resources used efficiently.
The individual gaps are listed by functional and report area, each gap has been given a complexity level ranking
for development effort of High, Medium, or Low, and an indication if we believe the gap can be filled by
changing the process, introducing a manual workaround, or performing a modification to standard functionality.
1.1
Purpose of the Requirement Specification

The purpose of the Gap Requirements Specification can be summarized as follows:
It identifies and documents by SFC requirements not met by the proposed systems standard
functionality.
It forms the basis of the system development
It forms the basis of planning
It forms the basis of quality assurance
It forms the basis of unit tests
5|P a g e
2 System Setup
2.1
Company Basic Information
A new company SFC had been created in AX2009.

Company Code
(3-Character long)
SFC
Company Name/Address/General
STAR FASHION CO.LTD
Lot 3 - Industrial Zone - Chuong My - Ha Noi
Tel: (84) 4632 67395
Fax: (84) 4632 67433
Tax Reg. No. : 0500556370
Company. Reg. No. : 01222000176
2.2
Currencies
6|P a g e
The base currency for SFC is USD, and the secondary currency is VND.
2.2.1
7|P a g e
Base currency the currency for reporting and transactions for the company
Secondary currency additional reporting currency for financial and management reporting
purposes
Exchange Rate
SLG Finance team will setup and maintain the exchange rate for the entire group to ensure that the
exchange rate is consistent across all companies.
2.3
Financial Periods
8|P a g e
The fiscal year start in January and the individual period will follow the calendar month.
There are 12 Accounting Periods; the following table indicates the period start and end dates for 2
years.
SLG Finance team is responsible for creating and maintaining the financial periods in SFC books.
Financial Periods
Year
Start date
End date
Period 1
2014
01 Jan
31 Jan
Period 2
2014
01 Feb
28 Feb
Period 3
2014
01 Mar
31 Mar
Period 4
2014
01 Apr
30 Apr
Period 5
2014
01 May
31 May
Period 6
2014
01 Jun
30 Jun
Period 7
2014
01 Jul
31 Jul
Period 8
2014
01 Aug
31 Aug
Period 9
2014
01 Sep
30 Sep
Period 10
2014
01 Oct
31 Oct
Period 11
2014
01 Nov
30 Nov
Period 12
2014
01 Dec
31 Dec
Period 1
2015
01 Jan
31 Jan
Period 2
2015
01 Feb
28 Feb
Period 3
2015
01 Mar
31 Mar
Period 4
2015
01 Apr
30 Apr
Period 5
2015
01 May
31 May
Period 6
2015
01Jun
30 Jun
Period 7
2015
01 Jul
31 Jul
Period 8
2015
01 Aug
31 Aug
Period 9
2015
01 Sep
30 Sep
Period 10
2015
01 Oct
31 Oct
Period 11
2015
01 Nov
30 Nov
Period 12
2015
01 Dec
31 Dec
It is advisable to create the next year financial period at the end of the year.
Once created, set the status to Stopped which will eliminate error posting to future month. This
task will be performed by the respective finance department in charged.
2.3.1
i.
ii.
iii.
2.3.2
i.
ii.
iii.
9|P a g e
Requirement
The Financial Periods access needs to be controlled by SLG finance user.

Module access feature to be used to restrict posting transactions SLG needs to confirm.
How to handle audit adjustments after year end close. (E.g. require to set up 13th month period?)
Solution
Financial Periods screen access rights to be given to a system administrator and this is to be
controlled by SLG.
System allows certain users to post to a particular module, even though the period is set to
Stopped. Eg: At the start of a new period, you might want a group of users (eg: Finance
Manager) to finish posting financial transactions in the previous period, while other groups (eg:
AP clerk) work only in the new period. Multiple user group will be created in AX2012 and using
module access level security to restrict which users can post to the module for the selected
period.
A closed or year closed period cannot be reopened and therefore period to be stopped
until the period is closed finally in accounting with the audit adjustments. Audit adjustments to
be done using a special journal name and to post into this journal and rerun the transfer of year
end closing. No 13th month is required to be setup.
2.4
Date Intervals
10 | P a g e
Date intervals will be setup to allow user to create dynamic dates. The following Date Intervals are
setup for Financial Statement printing.
SLG to confirm Date Interval
- Current Year (CY)
- Current Month (CM)
- Prior Year (PY)
- Next Year (NY)
- Next Period (NP)
- Quarter 1 Current Year (Q1CY)
- Quarter 1 Last Year (Q1LY)
- Year to Date Current Month (YTDCM)
- Year-To-Date Current Year (YTDCY)
2.5
Year To Date Last Month (YTDLM)

Year-To-Date Last Year (YTDLY)
MTH01
MTH02
MTH03
MTH04
MTH05
MTH06
MTH07
MTH08
MTH09
MTH10
MTH11
MTH12
Chart of Accounts
11 | P a g e
The Chart of accounts form is used to create, maintain, and view general ledger accounts in a
structured form. These accounts contain the financial data as well as the companys day-to-day
activities.
Sample of existing Chart of Accounts:
2.5.1
2.5.2
2.6
Chart of Accounts would be standardized and maintained by SLG, and SFC to use group Chart of
Accounts. If SFC requires adding of a new account code, then request will be made to Head Office.
Requirement
Eliminate existing COA duplication.
Solution
Some COA need to be renamed and to block some accounts to prevent future posting. During the
business requirement gathering sessions SLG agreed to carry out COA fine tuning.
Financial Dimensions
2.6.1
There are nine financial dimensions setup.

Dimension 1 Intercompany Unit
This Dimension is used to facilitate the inter-company elimination during consolidation process.
When SLG sell Fabric to STF, the intercompany code for the sales transaction is with intercompany
dimension STF. Vice versa, STF will record the Fabric purchase with intercompany dimension SLG.
At consolidation level, these 2 transactions can then be identified easily for elimination purposes.
i.e. Only transactions with NA should not be eliminated at consolidation level.
12 | P a g e
2.6.2
2.6.3
13 | P a g e
Dimension 2 Department
This dimension will be used to record expenses incurred by every departments

Department dimension values will include all the cost centers from production and other
departments.
Dimension 3 Strategic Business Unit (SBU)

st
1 character denotes whether it is Manufacturing Division or Agency Trading Distribution (ATD)

Division.
2.6.4
Dimension 4 Product Category
For every new garment item created in item master, user can set the Product Category as a default
for subsequent transaction.
The List of product Category Dimension values is listed below.
Requirement
To revise and add on to the existing Product Category dimension values.
Solution
14 | P a g e
One of the option is to use A&T Structure ID values as the "Product Category" Dimensions. SLG
Finance to confirm.
A&T Structure ID as follow :
2.6.5
15 | P a g e
Dimension 5 Factory
Include both SLGs factories as well as 3rd party sub-con factories.

Partial List of Factory Dimension values is listed below.

Dimension 6 Brand (Buyer)
2.6.6
Dimension 7 Buyer Division
2.6.7
16 | P a g e
This dimension will be used to record the transactions with buyers.
This dimension will be used to record the buyer divisions.

Dimension 8 Business Segment
2.6.8
Dimension 9 Job Number
2.6.9
2.7
This dimension will be used to record the Business Segment.
This is a system generated number from Sales Order module.
Bank Account and Bank Reconciliation
17 | P a g e
Bank Accounts for each bank per currency will be created and maintained in the Bank module.
Currently SFC has 2 main banks, SCB and VietinBank. Each bank Account code will be directly linked
to G/L Account
2.8
Bank reconciliation is prepared manually, and cash flow is prepared on daily basis. Automated Bank
Reconciliation process is not required by SLG and SFC.
SLG wish to track AR financing through the system. The interface with the bank is not yet available.
Thus the tracking has to continue manually.
Journal Type and Journal Name
18 | P a g e
Journal names are used to create and manage different kinds of journals entries. These journals can
be set-up and used across all modules accordingly. Journal type is used to determine which module
a specific journal is used for. A voucher number sequence has to be set-up and maintained for each
journal created.
3 General Ledger
3.1
General
Requirement:
SFC requires Ax2009 to handle multi-currency transactions, VAT reporting, recurring journal entries with
allocations capabilities.
To be able to identify standard AX2009 reports and those customized reports easily.
Requirement for Vietnamese Language pack and Vietnamese Accounting System Not included in the first phase
and TBC by SLG.
Resolution:
Standard Ax2009 General Ledger functionality will accommodate multiple currencies, recurring journal entries.
Allocation rules can be preset as a template.
To easily identify customized reports :
- For those reports that not in used, make these reports not visible in user menu
- Add an * character in front of those customized reports
19 | P a g e
User can add the commonly used reports to the My Favorites folder.
3.2
General Journal Entry
General Journal form is used to create and record Ledger transaction entries on a daily basis.
Requirement:
i.
ii.
iii.
To implement journal approval function for journal batch.

To customize a function to import payroll file in AX General Journal Line. (Functionality GAP List # FF02).
To customize the Tax Exchange Rate function in General Journal. (Functionality GAP List # FF03).
Resolution:
i.
ii.
iii.
20 | P a g e
To enable Journal Approval function in AX2009.
SLG to revert which journal name requires Journal Approval function.

SLG IT to setup the approval user group.
Payroll Interface
Option 1: Customize an import function in AX2009. The journal lines to include dimension values for
Department and SBU.
Option 2: Use Atlas XL import function to upload the payroll file into General Journal lines.
Tax Exchange Rate
To customize Tax Exchange Rate function for General Journal.
3.3
Taxation (VAT)
Requirement:
SFC is required to submit the following VAT reports to the tax authority on monthly basis.
Statement of Invoices Input Report (Report GAP List # FR04)
21 | P a g e
Statement of Invoices Output Report (Report GAP List # FR05)
3.4
SLG IT has customized these reports.
Budget
Requirement:
SFC Finance team wish to upload the GL budget into AX.

To revise financial statements (P&L) to include budget figures for comparison purposes
Resolution:
3.5
Going forward, user will prepare the budget in MS Excel and upload the budget into AX via the Data
Import function. This will be provided to SFC by SLG finance team.
SLG Finance team will amend the existing financial statement format to include budget figures.
Currency revaluation
Requirement:
SFC require to perform Bank & GL revaluation.

Currently this is carried out manually, and revaluation amount is posted via GL journal.
Solution
To customize a Monthly batch job (Gap List # FF01):
- To revalue Bank balance with the exchange rate from the following month.
- User will be able to filter by Bank, and specify the revaluation date.
- System to auto create new General Journal Line for the exchange gain/loss amount
calculated.
- This journal is auto reverse on the following month.
- The journal is with description Bank revaluation for MMM (month) YY (Year).
- User can validate the journal created and post the journal when ready.
22 | P a g e
23 | P a g e
The transaction is only posted to GL Ledger and not Bank sub-ledger.

To have one voucher per bank.
To customize a report Bank Revaluation Report (GAP List # FR01) to show Bank (GL)
balance before and after currency revaluation. The Variance amount and Variance % will
be printed as well.
4 Fixed Assets
4.1
General
Current Process
Current Fixed Asset capitalization policy :
Item with amount more than USD 600 will be capitalized
Amount less than USD 600 will be expensed off to P/L
Capitalization Threshold : This feature is applicable for FA acquisition via Purchase Order (not AP Invoice
journal and Asset Acquisition journal). Capitalization thresholds are evaluated during asset creation from
purchase orders. If the laptop cost is 400 USD which is under the Capitalization threshold of 600USD, the
laptop will be created with the depreciation check box cleared. User will then have to decide whether
to activate the depreciation for this asset or this asset need to be expensed off.
4.2
Fixed Assert Group

Every Fixed Asset will belong to a particular Fixed Asset Group. The Fixed Asset group define asset
characteristics such as type, depreciation policy and posting profile of the asset. The Fixed Asset Group
will be maintained by SLG Finance.
24 | P a g e
4.3
Fixed Asset Number Sequence

For SFC, the Fixed Asset numbering is based on asset groups.
4.4
Fixed Asset
For every fixed asset, user to maintain the supplier information, and warranty information.
25 | P a g e
4.5
Depreciation profile
26 | P a g e
Depreciation profiles are used to define rules for calculation of depreciation. They are used only for
depreciable assets, which usually mean tangible assets and sometimes also intangible assets.
For Straight Line method, Service Life would be used. The acquisition adjustment has its own service
life corresponding to the full service life of the primary acquisition.
4.6
Value Models
Value models are essential to fixed assets. Each value model assigns an additional life cycle to the
asset.
Value models define the following functionality:

- Is the asset depreciable?
- How it the asset going to be depreciated?
- How is the depreciation going to be rounded?
Depreciation Profile for each Fixed Asset Group is attached to the value model.
27 | P a g e
4.7
Posting Profile
4.8
Ledger accounts for different Fixed Asset activities:

Ledger & Offset Account of Acquisition.
Ledger & Offset Account of Acquisition Adjustment.
Ledger & Offset Account of Depreciation.
Ledger & Offset Account of Depreciation Adjustment.
Ledger & Offset Account of Disposal Sale.
Ledger & Offset Account of Disposal Scrap.
When a fixed asset transaction is posted, based on the asset transaction type (Acquisition,
Depreciation, etc.), the value model used, and the posting profile for the transaction, Ax2009 finds
the ledger accounts to post to. Therefore, correct setup of the posting profile is crucial to correct
ledger transactions, and thus to financial reporting.
The posting profile will be maintained by SLG Finance.
Fixed Asset Locations
Currently locations are used as identification of the main location of the asset in the field Location. This
will facilitate the asset taking during year end audit.
The FA location is maintained by SFC finance user.
28 | P a g e
4.9
Fixed Assets Acquisition

There are various ways to acquire an asset. These are following:
1) From Purchase order
2) From Accounts Payable Invoice Journal
3) From Fixed Asset Journal
Current Process
Fixed Assets is acquired via Accounts Payable Invoice Journal.
Task ID Task description
2
3
4
29 | P a g e
Fills in FA Request form and match with approved capital budget.

Internal policy needed to ensure the requester has considered the
various availability options in SFC group of companies. Example: can
loan/rental/refurnish/transfer instead of purchase a new machine?
Send for Approval, send to Account after check against Assets Capital
budget
Approved Acquisition Request send to accounts to create New FA code
Use AX Invoice Journal to acquire the new Fixed Asset.
Task
Next
owner
task
Fin User
Fin User
Fin Mgr
4
End
Fixed Assets acquisition via Purchase Order.

Task Task description
Task
Next
ID
owner
task
IT
In the inventory, create a service item for fixed assets.
Create a purchase order. Select the FA item; Enter the assets name in the text field and
print out the purchase order to get approval.
Dept
User
In the Purchase order line, go to Fixed Assets tab and tick the New fixed asset fields.
Select the correct FA group.
Dept
User
30 | P a g e
Post Packing Slip (GRN) for asset receiving.
FIN
After generating the purchase invoice, the new fixed asset will be created, and acquisition
entry is posted.
FIN
FIN
FIN
Back to the Fixed Asset card. Update the next run depreciation date.
Bar Code label is then printed for FA tagging. In the label, it will include Company Code + Department
Code + Fixed Asset Number.
31 | P a g e
4.10
Monthly depreciation of Fixed Asset
Requirement:
System auto calculate the depreciation amount and update to their respective ledger account and
dimension
Some of the assets need to depreciation as per their dimensions and Department, Strategic Business Unit,
Intercompany Unit.
Depreciation is perform once a month during month end. If an asset is acquired in mid-month, the asset
will be still subject to full month depreciation.
Resolution:
Every month end, create a fixed asset journal and run the function Depreciation Proposal.
In the Depreciation Proposal, user can specify the To Date, which usually is the month end date. User can also
filter by Depreciation Book.
32 | P a g e
System will auto generate the depreciation journal lines.
User can validate the journal created and post the journal when ready.
4.11
Disposal of Fixed Asset
Requirement:
Once an asset is disposed in the system, the status of the assets should be changed but still able to
view the history
Resolution:
For any disposal assets, create a fixed assets journal and select journal name as Disposal
Select the transaction type as disposal scrap or write off and the asset code
Click on Report as finished to allow system approval
After approval, the disposal transaction is ready for posting
Posting will update the asset card and the asset status will be set to Scrapped.
In Ax2009, when disposal of asset transaction is posted before depreciation calculation, then there
will not be any depreciation for the disposal assets
Disposal assets, system will reverse the previous entries as per previous years depreciation and
acquisition, current year depreciation and go into the disposal gain and loss account
33 | P a g e
4.12
Fixed Assets Tax Depreciation Posting
Requirement:
Service life for Tax Depreciation is different. SFC Ms Mai to confirm whether to setup and
maintain Tax depreciation in system.
Resolution:
In Ax2009, user can setup another Value Model for the fixed asset. The Depreciation period can be
specified and the tax depreciation will be posted to the Tax Posting Layer.
Finance Department will post the Tax Depreciation journals yearly. The computed tax depreciation
calculation will not be posted to GL but posted in Tax layer.
A unique fixed asset journal for posting Tax depreciation journal should be created and setup. The
Posting Layer should be setup as TAX, this posts all transactions into Tax layer of Accounts and does
not updates balances in Current layer.
Tax Depreciation can be viewed for FA module as well as from GL reports for Tax layer.
4.13
Report
Requirement:
Require a Fixed asset Balance report for year-end audit purposes.
Resolution:
Report GAP List # FR02. SLG IT has customized this report.
34 | P a g e
35 | P a g e
5 Account Payables
5.1
Accounts Payable Setup

5.1.1
Journal and Voucher Number Sequences
Below is the list of SFCs current accounts payable journal voucher number sequences:
SFC Finance user can maintain the list.
5.1.2
Vendor Group setup
36 | P a g e
Vendor Group is used to maintain groups of vendors that share the same terms of payment and
ledger posting accounts.
Below is list of the current vendor groups, and it is maintained by SLG Finance:
The vendor group setup is maintained by SLG Finance.
5.1.3
Posting Profile
Vendor posting profiles are required to control the posting of vendor transactions to the general
ledger.
The vendor posting profile is maintained by SLG Finance.
5.1.4
Terms of Payment
37 | P a g e
The Terms of payment form is used to set-up terms and conditions as to how a payment is being
made to a vendor or by a customer. This form can be used for the Sales and marketing,
Procurement and sourcing, Accounts payable, and Accounts receivable modules. The term of
payment code can be defaulted to each vendor or a customer. Other than that, the term of
payment can be changed at the time of the vendor or customer transaction.
The Term of Payment is maintained by SLG Finance.
5.1.5
Methods of Payment
38 | P a g e
Methods of payment are used to set-up and maintain various payment methods for vendors. A
default method of payment code can be set-up to each vendor. However, should the vendor
accept multiple methods of payment that varies per transaction, this can then be changed in the
transaction form before it is posted.
The Method of Payment is maintained by SLG Finance.

5.1.6
5.2
Aging Bucket
Aging bucket form is used to setup different date intervals that are being used in an aging report.
These buckets are used to determine and analyze the balances of each customer and vendor
account. Each aging bucket corresponds to a column in an aging form and report.
Vendors
This vendor form is used to create new and manage vendors that the company transacts business with.
Vendors are categorized according to vendor groups. Default set-up can be done per vendor such as the
currency, term of payment, method of payment.
39 | P a g e
5.2.1 Vendor General tab
40 | P a g e
Vendor Group
Currency: The default currency code for invoices.
Segment: Can be used to identify sub agency vendor
Segment and sub-segment can be used to further classify the vendors. Eg: Vendor A is an appointed
accessories supplier for Buyer VF. Segment = Accessories, Sub-segment= VF
5.2.2 Vendor Setup tab
Vendor Address tab
5.2.3
A vendor can have multiple addresses stored in AX2009 but there can only be 1 Primary address.
This primary address will be the default address used in invoice and payment transactions.
Vendor Payment tab
5.2.4
41 | P a g e
Sales tax group: Select the sales tax group that applies to this vendor. E.g. GST Registered
vendor.
Term of payment: The terms of payment for an invoice determine the invoice due date.
42 | P a g e
Method of payment: Method of payment typically used for payments to the vendor. E.g. check,
Telegraphic Transfer, GIRO, etc.
5.3
Invoice Journal
Task
ID
Vendor Invoices without purchase order will be posted through AP Invoice Journal.
Task Description
Task
Next
owner
task
Fin
Admin
Enable the Journal Approval function in the system.
SLG IT to setup the approval User Group.
Receive vendor Invoice
AP
user
Create AP Invoice Journal
AP
user
43 | P a g e
Report as Ready the Invoice journal
AP
user
Approval process
Fin
Mgr
5 or
6
Reject Invoice if not approved and send for revision.
Fin
Mgr
Approve Invoice journal
Fin
Mgr
Post Invoice journal
AP
user
END
44 | P a g e
5.4
Payment Journal
Requirement:
Require system approval functions for payment journal

Require to have the Tax exchange rate function in payment journal.
Require system to print Payment Order report (for TT submission to the bank).
Resolution:
Task
ID
0
Vendor Payments will be done through AP Payment journals in Ax2009.
Task Description
Enable the Journal Approval function in the system.
45 | P a g e
Task
Next
owner
task
Fin
Admin
Create AP Payment Journal
AP
User
AP
User
There are two methods for selecting the invoices to pay through the payment
journal.
The Payment proposal option searches for invoice lines that meet selected search
criteria.
Use the Settlements option to select the specific invoice lines to pay.
Create Payment proposal by Due Date.
2
System will generate a list of suggested payment base on the selection below
46 | P a g e
Select Invoice for settlement.

System will list down all overdue invoices for payment in journal line.
AP
User
Enter the payment detail.

For SLG, customization is required to enable the Tax Exchange Rate function in payment
journal.
47 | P a g e
Functionality GAP List # FF04.

Report the journal As Ready
AP
User
Approval Process
Fin
Mgr
6 or 8
If not Approved, Reject the AP Payment journal.
Fin
Mgr
Revise the AP Payment journal
AP
User
Approve the AP Payment Journal
Fin
Mgr
Print Payment Voucher.
AP
User
10
48 | P a g e
Print Payment Order (for TT submission to Vietin Bank).
49 | P a g e
Report GAP List # FR06.

10
Post and Print the AP Payment journal
5.4.1
5.4.2
50 | P a g e
AP
User
end
Bank Interface for GIRO/TT
In AP Payment Journal, based on the Method of Payment, system to generate a payment export file.
This file can then be uploaded to the Bank payment system.
For each of the Method of Payment, there is an export file format which has to be mapped to the
Bank required format.
SLG to confirm.
Cheque Printing
Two options available :

Computerized cheque : To generate and print cheque from AX
Manual cheque : To print payment details on manual cheque.
SLG to confirm.
5.5
Revaluation
Requirement
AP Revaluation is required.
Solution
The vendor foreign currency revaluation form is used to revalue all open vendor transactions in foreign
currencies. The revaluation will determine whether a particular transaction has gained or lost at the
time it was revalued. Each vendor transaction result will then be posted to an un-realized gain or unrealized loss account.
Currently, SFC process revaluation every month-end.
51 | P a g e
5.6
Reports
5.6.1
Vendor Aging Report
Requirement
52 | P a g e
To be able to filter by SBU Dimension.

To add a column for SBU dimension. (Report GAP List # FR07)
For invoice with partial payment, the aging report did not reflect the source currency amount.
SLG IT to provide the sample report to AXP for further investigation.
6 Accounts Receivable
6.1
Accounts receivable setup

6.1.1
Journal and Voucher Number Sequence
Below is the list of SFCs current accounts receivable journal voucher number sequences:
6.1.2
SLG IT will maintain the list of number sequence.

SLG to revert whether to use the same number sequence for Free Text Invoice Credit Note and
Sales Order-Credit Note.
Customer Group setup
Customer Group is used to maintain groups of customer that share some key parameters:
53 | P a g e
Terms of payment
Inventory posting ledger accounts, including the sales tax group
Default account setup
Customer Group is maintained by SLG Finance.
6.1.3
Customer Group setup
The same as in the accounts payable module, Terms of payment form is used to set-up terms and
conditionals as to how a payment is being made to a vendor or by a customer. This form can be used for
the Sales and marketing, Procurement and sourcing, Accounts payable, and Accounts receivable
modules. The term of payment code can be defaulted to each vendor or a customer. Other than that the
term of payment can be specified at the time of the vendor or customer transaction.
Customer Group Setup is maintained by SLG Finance.
54 | P a g e

6.1.4
6.1.5
Posting profile for Customer
Customer posting profiles are required to control the posting of customer transactions to the
general ledger.
Each customer posting profile will be linked to the AR Ledger Control account in GL.
Posting Profile is maintained by SLG Finance.
Terms of Payment
The same as in the accounts payable module, Terms of payment form is used to set-up terms and
conditionals as to how a payment is being made to a vendor or by a customer. This form can be used for
the Sales and marketing, Procurement and sourcing, Accounts payable, and Accounts receivable
modules. The term of payment code can be defaulted to each vendor or a customer. Other than that the
term of payment can be specified at the time of the vendor or customer transaction.
The Terms of Payment is maintained by SLG Finance.
55 | P a g e

6.1.1
Method of Payment
Methods of payment form used to set-up and maintain various payment methods for vendors. A default
method of payment code can be set-up to each vendor. However, should the vendor accept multiple
methods of payment that varies per transaction, this can then be changed in the transaction form
before it is posted.
The Methods of Payment is maintained by SLG Finance.
6.1.2
Aging Bucket
Aging bucket form is used to setup different date intervals that are being used in an aging report. These buckets
are used to determine and analyze the balances of each customer and vendor account. Each aging bucket
corresponds to a column in an aging form and report.
56 | P a g e
6.2
Customer
For new Customer, user will need to fill in the New Customer Application and submit to finance for
Credit Check. Once finance approved on this customer, the customer will be setup in Ax2009.
Other setup such as payment terms, method of payment, address, currency, credit limit, agent,
invoicing account, dimensions etc. will be setup according.
57 | P a g e
6.3
Free Text Invoice / Debit Note / Credit Note
58 | P a g e
Free text invoice is used when a transaction does not require a sales order, packing slip, or a
customer invoice. At the same time, you may also use this form to create adjustments such as
credit note.
Create Free text invoice in Ax2009 and allow user to enter transaction text as per user require.
Select the billing currency; Fill in the dimension as per the transaction amount.
Print the proforma invoice for checking before posting.
59 | P a g e
If the total amount of the invoice is negative, the posting will be shown as Credit Note.
For credit note, go to open transaction editing to select which invoice to offset and after posting, the
fully offset invoice will be closed.
6.4
Customer Payment
When Accounts Receivable users receives payment from clients, she will record the payment using
Payment Journal with Settlements method to select the specific invoice lines to offset.
Journal approval is required to be turned on for Payment Journal.
60 | P a g e

SLG to revert issues in 'Customer posted payment journal' report.
6.5
Report
6.5.1
Customer Aging Report
Requirement
To be able to filter by SBU Dimension, and additional column for SBU dimension. (Report GAP List # FR08)
To create another customer Aging report for AR Financing invoices (eg: Macy)
- $100 Invoice, $90 finance by bank and $10 balance by Macy.
- To show original invoice amount as a new column (i.e. to show 100%)
(Report GAP List # FR03)
61 | P a g e
7 Virtual Company
7.1
Virtual company
A single Microsoft Dynamics AX database can contain multiple individual company accounts. Each
company account in an application uses the same application logic, but has its own set of data for
tables. Data that is stored in one company account cannot be accessed from other companies. This
means that if a table's data belongs to company account A, its data will only be available to
application objects within that company account, unless company account A is created as a virtual
company, which enables data sharing.
Virtual company accounts contain data in certain tables that are shared by any number of company
accounts. This lets users post information in one company account that will be available to another
company account.
Following are the tables setup in the Virtual Company :

General Ledger
- Chart of Accounts
- Dimensions
- Dimensions Set
- Currency
- Currency Exchange Rate
- Date Interval
- Financial Statement Row Definition
- Financial Statement
Fixed Asset
- Fixed Asset Group
- Fixed Asset Group Setup
- Fixed Asset Posting Profile
- Fixed Asset Disposal Parameters
- Fixed Asset Depreciation Profile
- Fixed Asset Value Models
Accounts Receivable & Accounts Payable
- Customer Group
- Vendor Group
- Customer Method of Payment
- Vendor Method of Payment
- Modes of Delivery
- Terms of Delivery
- Terms of Payment
- Aging Buckets
- Agent
- Quota Category
- Sample Types
62 | P a g e
Country
Inventory & Production

- Item Model Group
- Unit of measure
- Sales Pool
- Production Pool
- BOM Cost Group
- Item Group
- Item Test Group
- Item Test Variable
- Route Operation
A&T
-
63 | P a g e
Item Season
Size Chart
Structure Id
Structure Category
Structure Type
Structure Definition
Packing Accessory Type
Gauge
Garment Brand
Circular
Fabric Type
Fabric Yarn Composition
Garment Gender Group
Garment Version
Packing Accessories Type
Packing Accessories - Measure
Sewing Accessories Composition
Sewing Accessories Type
Sewing Accessories - Measure
Yarn Origin
Yarn Type
Property
Category
Summary Gap Analysis List
8.1
Function GAP List
Module
Finance
Refer
No.
FF01
Finance
FF02
Finance
FF03
Finance
FF04
64 | P a g e
Description
Options
(Must
Have/ Nice
to Have)
To customize a Monthly batch job (Gap List # FF01):

To revalue Bank balance with the exchange rate from
the following month.
User will be able to filter by Bank, and specify the
revaluation date.
System to auto create new General Journal Line for the
exchange gain/loss amount calculated.
M
This journal is auto reverse on the following month.
The journal is with description Bank revaluation for
MMM (month) YY (Year).
The transaction is only posted to GL Ledger and not Bank
sub-ledger.
To have one voucher per bank.
To customize an import function for payroll file into AX

General Journal Line.
To customize Tax Exchange Rate function in General Journal
To customize Tax Exchange Rate function in AP Payment

Journal.
Priority
H, M, L
Responsible
AXP
Estimated
Man-Days
TBC. SLG to
provide the
payroll file
format.
Approve
No
On Hold
until
HRMS
software
go live
AXP
AXP
1.5
Yes
AXP
1.5
Yes
8.2
Report GAP List
Refer
Module
No.
Finance
FR01
Finance
FR02
Description
To customize a report a Bank Revaluation Report to
show Bank (GL) balance before and after currency
revaluation. The Variance amount and Variance % will be
printed as well.
Options
(Must Have/
Nice to
Have)
Priority
H, M, L
Responsible
AXP
Nuwan (Completed)
AXP
Estimated
Man-Days
1.5
Fixed Asset Balance report

AR Aging report by AR Financing invoices
$100 Invoice, $90 finance by bank and $10
balance settled by customer (eg: Macy)
To show original invoice amount as a new
column (i.e. to show 100%)
Approve
No
Finance
FR03
Finance
FR04
Statement of Invoices Input Report
Nuwan (Completed)
Finance
FR05
Statement of Invoices Output Report
Nuwan (Completed)
Finance
FR06
Payment Order Report
Nuwan
Nuwan (Completed)
MN
Nuwan
Finance
Finance
65 | P a g e
FR07
FR08
Vendor Aging Report :

-To be able to filter by SBU Dimension.
-To add a column for SBU dimension.
Customer Aging Report :
-To be able to filter by SBU Dimension.
-To add a column for SBU dimension.
0.5
On Hold
Client Acceptance
The foregoing clearly states our understanding of our engagement with AxionsPlus, and we hereby
agree to the project scope, objectives, assumptions, task assignments and deadlines described herein.
We understand that changes to the engagement details, as described in this document, will require a
formal change order.
We accept our responsibility to ensure that scope; resources and time are kept constant through the
life cycle of the project, and our responsibility to ensure that our staff meets all the task deadlines. We
understand that our failure to meet these responsibilities could result in an out of scope condition and
adjustment of the overall project plan and deliverables, including the possibility of change orders or an
entirely new project budget and timeline.
SL Global Pte. Ltd.
AxionsPlus Pte. Ltd.
Signature:
Signature:
Printed Name:
Printed Name: Ms. Gillian Saw
Title:
Title: Project Director
Date:
Date:
Page 66 of 66

SFC Finance FRD - V3 PDF

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

SFC Finance FRD - V3 PDF

Hochgeladen von

Copyright:

Verfügbare Formate

Functional Requirement Document

STAR FASHION CO.LTD

The contents of this document are for the use of client

Functional Requirement Document

Functional Requirement Document

Executive Summary ................................................................................................................. 5

System Setup ............................................................................................................................ 6

Company Basic Information ................................................................................................ 6

General Ledger ....................................................................................................................... 19

Functional Requirement Document

Accounts Payable Setup .................................................................................................... 36

Accounts Receivable ............................................................................................................. 53

Accounts receivable setup ................................................................................................ 53

Virtual Company ..................................................................................................................... 62

Functional Requirement Document

Purpose of the Requirement Specification

It forms the basis of the system development

It forms the basis of planning

It forms the basis of quality assurance

It forms the basis of unit tests

Functional Requirement Document

Company Basic Information

A new company SFC had been created in AX2009.

Functional Requirement Document

Functional Requirement Document

Functional Requirement Document

The Financial Periods access needs to be controlled by SLG finance user.

Functional Requirement Document

Functional Requirement Document

Year To Date Last Month (YTDLM)

Functional Requirement Document

Eliminate existing COA duplication.

There are nine financial dimensions setup.

Functional Requirement Document

This dimension will be used to record expenses incurred by every departments

Dimension 3 Strategic Business Unit (SBU)

1 character denotes whether it is Manufacturing Division or Agency Trading Distribution (ATD)

Functional Requirement Document

Dimension 4 Product Category

Functional Requirement Document

Include both SLGs factories as well as 3rd party sub-con factories.

Functional Requirement Document

Dimension 7 Buyer Division

This dimension will be used to record the transactions with buyers.

This dimension will be used to record the buyer divisions.

Functional Requirement Document

Dimension 9 Job Number

This dimension will be used to record the Business Segment.

This is a system generated number from Sales Order module.

Bank Account and Bank Reconciliation

Functional Requirement Document

Journal Type and Journal Name

Functional Requirement Document

Functional Requirement Document

General Journal Entry

To implement journal approval function for journal batch.

To enable Journal Approval function in AX2009.

SLG to revert which journal name requires Journal Approval function.

Functional Requirement Document

Statement of Invoices Output Report (Report GAP List # FR05)

Functional Requirement Document

SLG IT has customized these reports.