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FINANCIALS I IN
MICROSOFT DYNAMICS® AX 2012
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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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Table of Contents
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Table of Contents
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Introduction
INTRODUCTION
Welcome
We know training is a vital component of retaining the value of your Microsoft
Dynamics® AX 2012. investment. Our quality training from industry experts
keeps you up-to-date on your solution and helps you develop the skills necessary
for fully maximizing the value of your solution. Whether you choose Online
Training, Classroom Training, or Training Materials; there is a type of training to
meet everyone's needs. Choose the training type that best suits you so you can
stay ahead of the competition.
Online Training
Online Training delivers convenient, in-depth training to you in the comfort of
your own home or office. Online training provides immediate access to training
24 hours-a-day. It is perfect for the customer who does not have the time or
budget to travel. Our newest online training option, eCourses, combine the
efficiency of online training with the in-depth product coverage of classroom
training, with at least two weeks to complete each course.
Classroom Training
Classroom Training provides serious, in-depth learning through hands-on
interaction. From demonstrations to presentations to classroom activities, you
receive hands-on experience with instruction from our certified staff of experts.
Regularly scheduled throughout North America, you can be sure you will find a
class convenient for you.
Training Materials
Training Materials enable you to learn at your own pace, on your own time with
information-packed training manuals. Our wide variety of training manuals
feature an abundance of tips, tricks, and insights you can refer to again and again:
Look for a complete list of manuals available for purchase on the Microsoft
Dynamics website: www.microsoft.com/Dynamics.
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Challenge Yourself!
Level 3 exercises are the most challenging. These exercises are designed for the
experienced student who requires little instruction to complete the required task.
Step by Step
Level 1 exercises are geared towards new users who require detailed instructions
and explanations to complete the exercise. Level 1 exercises guide you through
the task, step by step, including navigation.
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Introduction
Documentation Conventions
The following conventions and icons are used throughout this documentation to
help you quickly and effectively navigate through the information.
CAUTION: Cautions are found throughout the training manual and are preceded by
the word CAUTION in bold. Cautions are used to remind you of a specific result of a
specific action which may be undesirable.
HINT: Hints are found throughout the training manual and are preceded by the word
HINT in bold. Hints are used to suggest time-saving features or alternative methods for
accomplishing a specific task.
NOTE: Notes are found throughout the training manual and are preceded by the word
NOTE in bold. Notes are used to provide information which, while not critical, may be
valuable to an end user.
BEYOND THE BASICS: Advanced information found throughout the training manual
is preceded by the words BEYOND THE BASICS in bold. Beyond the Basics provides
additional detail, outside of standard functionality, that may help you to more optimally
use the application.
EXAMPLE: Examples are found throughout the training manual and are preceded by
the word EXAMPLE in bold. Examples bring to light business scenarios that may better
explain how an application can be used to address a business problem.
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Student Objectives
What do you hope to learn by participating in this course?
1.
2.
3.
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Chapter 1: General Ledger Setup
Introduction
A general ledger is a formal ledger that contains a company’s accounting records.
To make the General ledger functional, setup the chart of accounts, fiscal
calendars, legal entities, and currencies. The chart of accounts is a list of main
accounts and financial dimensions that are allowed by one or more account
structures.
Fiscal calendars specify what time period financial data is posted, while currency
setup determines which currencies are available for business transactions.
This course explains how to work with the chart of accounts and its multiple
dimensions. These dimensions may be used to track profits, cost centers, and
other important financial information.
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Currency Setup
In Microsoft Dynamics AX, all currencies are provided by default. The
currencies are loaded the first time a user opens the General ledger parameters
form.
To view currencies click General ledger, click Setup, click Currency, and then
click Currencies.
Only one currency can represent the Triangulation currency. By default, the EUR
currency is selected as the Triangulation currency. To change the Triangulation
currency, you must first clear the Reference currency for triangulation check
box on the EUR record in the Currencies form. Then, you can select the
Reference currency for triangulation on the desired currency.
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Chapter 1: General Ledger Setup
• $ - U. S. dollar
• € - Euro
Field Description
Currency
The unique identifier – a code of up to three characters –
for the selected currency.
Examples:
• USD- U.S dollar
• EUR - Euro
• CAD - Canadian dollar
Name A description of the currency. This is typically printed
on checks and other documents.
Examples:
• U.S dollar
• Euro
• Canadian dollar
Symbol Typically used on reports
Example: $
Currency The standard code of the currency as defined by the
Code International Organization for Standardization (ISO).
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This setup allows the display of financial information in a currency other than
the default company currency in forms and reports. This conversion is
completed by double-clicking the Currency converter in the Status bar in these
forms.
1. Click General ledger, click Setup, click Currency, and then click
Currencies.
2. Select a currency.
3. Select the Conversion check box to enable a currency for
conversion.
4. Specify the currency's symbol before or after an amount, in the
Prefix or Suffix fields.
HINT: Enter a space before the currency symbol to separate the currency
amount and the symbol.
1. On the status bar, click the Currency field to open the Currency
converter form.
2. Select any of the currencies that have been set up for conversion in
the Currency converter form.
3. Enter the date used for the conversion in the Date of rate field.
4. Click a currency to select the new currency.
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Chapter 1: General Ledger Setup
The Currency converter form will automatically close, and the Currency field
on the status bar displays the new currency. All the forms, inquiries, and reports
that originally displayed amounts in the company's currency now display the
currency selected.
Rounding Option - Enter the unit for rounding amounts, such as 0.10 or 1.00.
Rounding Method - 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:
NOTE: The value in the General round-off field affects all values in all modules.
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Currency Gender
Currency Gender is used for Spanish speaking countries to define the gender
printed on checks and reports. Select Feminine if the selected currency has a
feminine gender and the gender is used on checks and reports.
The default value for this field is Masculine, which, in effect, means no gender.
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Chapter 1: General Ledger Setup
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NOTE: A currency pair can only exist once and entering a reciprocal pair is not
supported in the the system. Therefore, if you already have USD to EUR set up,
you cannot create a EUR to USD currency pair for the same exchange rate type.
The system will calculate the reciprocal rate automatically if it cannot find the
exact currency pair during the translation conversion. 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, the system will first look for the exact
currency pair in the rate type used by the ledger: EUR to USD. If not found, the
system will then look for USD to EUR and calculate the reciprocal rate.
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Chapter 1: General Ledger Setup
NOTE: Because the same currency can have several rates, the posting date
determines the rate applied.
For example:
For each ledger, define main accounts to account for changes in exchange rate
loss or gain. Perform the following steps to set up ledger and currency specific
exchange rate loss/gain accounts:
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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.
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.
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Chapter 1: General Ledger Setup
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.
For example:
A primary company entity is located in the United States, and a subsidiary entity
is located in Canada. To see financial reports in the Canadian (CAD ) currency,
the system uses the exchange rates defined in the Exchange rates form to
convert USD to CAD amounts.
1. On the status bar, click the Currency field to open the Currency
converter form.
2. Select any of the currencies that have been set up for conversion in
the Currency converter form.
3. Enter the date used for the conversion in the Date of rate field.
4. Click a currency to select the new currency.
The Currency converter form automatically closes, and the
Currency field on the status bar displays the new currency. All the
screens, inquiries, and reports that originally showed amounts in the
company's currency display the new currency.
NOTE: When you change the display currency, the default currency of a
company does not change. Also, this is not a global change; it does not affect any
other users in the company, nor does it change the original transaction. It is also
meant to be an estimate of the amount in the selected currency.
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Ken is the Controller for Contoso Entertainment USA (CEU). CEU uses US
dollars as the company's default currency. CEU recently gained a new customer
located in South Africa and uses the South African Rand (ZAR). Transactions for
this currency should be tracked to two decimal places. As of April 1, 2011, 12.35
USD equals 100 ZAR.
After some research, Ken has found that the following posting accounts should
be set for the new currency.
Field Value
Realized Loss 801300
Realized Profit 801500
Unrealized Loss 801400
Unrealized Profit 801600
Challenge Yourself!
1. Set up the South African Rand (ZAR) posting accounts and rounding
options.
2. Set up the exchange rate.
3. Convert the ZAR Quotation unit to 100.
1. To set up the currency and specify the posting accounts and rounding
options, follow these steps:
o Open the Currencies form and enter a general rounding rule.
o Open the Currency revaluation accounts form, and set
appropriate main accounts.
Step by Step
Perform the following steps to set up the currency rounding options:
1. Click General ledger, click Setup, click Currency, and then click
Currencies.
2. Highlight the Currency ZAR.
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Chapter 1: General Ledger Setup
1. Click General ledger, click Setup, click Currency, and then click
Currency revaluation accounts.
2. Select ceu as the Ledger.
3. Highlight the Currency ZAR.
4. In the Realized gain line, enter 801500 in the Main account field.
5. In the Realized loss line, enter 801300 in the Main account field.
6. In the Unrealized gain line, enter 801600 in the Main account field.
7. In the Unrealized loss line, enter 801400 in the Main account field.
8. Click Close to close the form.
Perform the following steps to set up the exchange rate. Every currency requires
one exchange rate entry with a blank date.
1. Click General ledger, click Setup, click Currency, and then click
Currency exchange rates.
2. In the Exchange rate type field, select Default in the drop down list.
3. Click the Add button.
4. In the Start Date field, click the calendar icon.
5. Select 04/01/11.
6. In the Exchange rate field, enter 12.3500
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Both fiscal year and periods can be set up by the following measurements of
time:
• Years
• Months
• Days
The periods and fiscal year feature is very useful for the preparation and
reconciliation of periodic and yearly accounts
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, a new fiscal year must be divided into periods as
transactions cannot post unless a period is created for the posting date.
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Chapter 1: General Ledger Setup
Scenario
Phyllis, the Accounting Manager, wants to define calendars for different
purposes and share them across different ledgers without having to create them in
each legal entity.
1. Click General ledger, click Setup, and then click Fiscal Calendar.
2. Click the New fiscal calendar button.
3. Enter the name of the calendar to be created in the Calendar field.
4. Enter a description of the fiscal calendar in the Description field.
This description may print on reports.
5. Enter the Start and End dates of the initial fiscal year in the
appropriate fields.
6. Enter a Fiscal year name of the initial fiscal year to be associated
with this fiscal calendar.
7. Enter the Length of the period and the Unit of the periods. These
fields work together to determine how many periods will be created.
8. Click the Create button.
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.
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Example:
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Chapter 1: General Ledger Setup
NOTE: There is no Period status control on the Fiscal Calendar form. This is
because when you are sharing a calendar across multiple legal entities, all legal
entities may not be ready to be closed at the same time. Therefore, you control
the period status on a per-legal entity basis, in their ledger (General ledger >
Setup > Ledger > Ledger calendar).
NOTE: It is also possible to create multiple closing periods. This provides the
ability to track internal button external audit adjustments (for example) in
separate periods.
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Ken, the Controller for Contoso Entertainment USA (CEU), must create a new
fiscal year. CEU has a fiscal year that begins on July 1, and is divided into one-
month periods.
Challenge Yourself!
Create the fiscal year calendar for 2012, which begins on July 1, 2011.
1. In the Fiscal calendars form, click the New fiscal calendar button
to create the fiscal year for 2012.
2. Select the period length of one month.
Step by Step
1. Click General ledger, click Setup, and then click Fiscal Calendar.
2. Click the New fiscal calendar button.
3. Enter FIS-2012 in the Calendar field.
4. Enter Fiscal Year 2012 in the Description field.
5. In the Start of fiscal year field, enter 7/1/2011.
6. In the End of fiscal year field, enter 6/30/2012.
7. Enter 2012 in the Fiscal year name field.
8. In the Length of period field, enter 1.
9. In the Unit field, click the arrow to select Months.
10. Click the Create button to create the year.
11. Click Close to close the form.
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Chapter 1: General Ledger Setup
Date Intervals
Create and manage date intervals that can be used in financial statements and
reports. Date intervals allow you to create dynamic dates. When you use date
intervals, you can set up predefined periods when you run financial statements.
Date intervals can also be used when setting up an allocation rule.
Scenario
Ken, the Controller at Contoso Entertainment USA (CEU), runs a dimension
statement every month. Instead of entering the dates every time he runs the
report, he selects a date interval.
The date interval automatically fills in the start date and the end date. Therefore,
Ken does not have to specify the start date and the end date when he runs the
dimension statement.
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Chapter 1: General Ledger Setup
NOTE: The Calculation date field is equal to the system date. Changing the
system date, (File > Tools > Session Date), will change all the values in the
Date calculation area of the form accordingly.
Field Value
Before Year
Start/End Start
+/- 1
Days, months, 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, months, years and periods Years
Calculation date 3/13/2012
Starting point 1/1/2012
After adjustment 1/1/2012
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NOTE: If the +/- field and Days, Months, Years or periods field is empty, the
After adjustments field equals the starting point value.
The following examples are of the After field and the Start/End
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
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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. For
example, auditors or managers frequently want to see reasons recorded for
various transactions such as reversals.
When you use standard reason codes instead of transaction text, you have
guidelines for which codes to select from. Standard reason codes also allow
management and auditors to analyze transaction history by specific reason.
Reason codes can be used with the following:
• General ledger
• Accounts payable
• Accounts receivable
• Bank
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Chapter 1: General Ledger Setup
3. Clear the Ledger check box. You can delete a Reason code only if
no account types are associated with it. If the Reason code has been
selected for use from another module, clear the other Account type
check boxes or view the Reasons form from Basic to clear all
Account type check boxes.
4. Click the delete icon.
5. Click Yes in the Confirm deletion dialog box.
Financial Dimensions
Financial dimensions have the following characteristics:
Scenario
Ken, the Controller at Contoso Entertainment USA, must analyze company
figures from a perspective other than only ledger accounts. Ken wants to make
reports and sales statistics inquiries based on cost centers and departments.
Therefore, he decides to set up dimensions as a supplement to voucher and
account numbers.
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Chapter 1: General Ledger Setup
Click the Financial dimension values button in the Financial dimensions form
to enter detailed values.
NOTE: Depending on your selection in the Select the level of dimension value to
display field, some fields will not be available
Field Description
Dimension Displays the financial dimension value for the dimension
Value selected in the Dimension details form
Description The description for the financial dimension value.
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Field Description
Select the Select the level of the financial dimension value to display. If
level of you select Shared value, fields that can be shared between a
dimension chart of accounts and a company are displayed. You can the
value to values for a specific chart of accounts or legal entity by
display selecting Chart of accounts or Companies.
If you select Chart of accounts, some fields will not be
available and you can override the shared information for the
selected chart of accounts.
If you select Companies, some fields will not be available,
you can override the shared information for the selected
company, and additional fields specific to the selected
company will be displayed.
Field Description
Active from Enter or select the date that the financial dimension value
is active from. If you leave it blank then it uses the
beginning of time.
Active to Enter or select the date that the financial dimension value
is active to. If it is left blank, it uses the end of time.
Suspended Select this check box to prevent all postings to the
selected financial dimension value.
You cannot suspend a financial dimension value that is
assigned as a budget group account on another account.
Owner Select the employee number for the employee who is
responsible for this financial dimension value.
Group Enter a group dimension name. This can be used to
Dimension group specific financial dimension values into the same
dimension value when you consolidate legal entities.
This field is available only when Shared value is
selected in the Select the level of dimension value to
display field.
Calculate total Select this check box to sum up amounts from one or
from multiple more dimension values.
dimension values This field is available only when Shared value is selected
in the Select the level of dimension value to display field.
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Field Description
Do not allow Select this check box to prevent a user from manually
manual entry entering a value for this financial dimension in journals.
This field is available only when Shared value is
selected in the Select the level of dimension value to
display field.
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.
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. Typically, 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, the minus sign in
front of revenue on the report is not displayed.
Column Select the column number that the financial dimension is
printed to when the financial statement is printed.
You can define how many columns will be used to print
a single column definition. For example, if you enter a 2
in the Number of columns field in the Financial
statement form, for a definition that shows the current
balance, the balance for this financial dimension will be
printed in 2 columns.
Bold Select to print the selected financial dimension in bold
type on the financial statement.
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.
Line below Select to follow the selected financial dimension with a
blank line on the printout of the financial statement.
Underline text Select to underline the text when the selected financial
dimension is printed on the financial statement.
Underline Select to underline the amounts when the selected
amount financial dimension is printed on the financial statement.
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The following table describes how to use each of the fields in the expanded Cost
accounting tab:
Field Description
Blocked for cost Select this check box to prevent a user from entering a
transactions cost transaction in Cost accounting for this financial
dimension.
Blocked for Select this check box to prevent a user from entering a
service service transaction in Cost accounting for this financial
transactions dimension.
Blocked for Select this check box to prevent a user from entering a
distribution distribution in Cost accounting for this financial
dimension.
Blocked for Select this check box to prevent a user from entering an
allocation allocation in Cost accounting for this financial
dimension.
Field Description
Template ID Enter an identification for the template.
Template percentages and Enter the percentage to apply to the
dimension values distribution.
Financial dimensions Select the dimension to use with the
percentage to apply to the distribution.
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Chapter 1: General Ledger Setup
• Ledger accounts
• General ledger transactions
• Accounts Receivable transactions
• Customers
• Accounts Payable transactions
• Vendors
For example, customer 4037 may be set up by department and cost center
dimensions. When a sales order is created for customer 4037, the defined
dimensions are populated on the sales order automatically, but the values can be
changed.
Throughout Microsoft Dynamic AX, you can separate data in different ways by
using dimensions. For example, you can attach a department number to each
transaction and then run a query that shows balances by department code.
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Challenge Yourself!
Help Phyllis enter the necessary dimension validation options for account
605110.
Step by Step
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Chapter 1: General Ledger Setup
Financial dimension sets are used to calculate balances during the posting
process. Balances can also be scheduled for calculation or manually updated.
Balances are stored based on the financial dimension set and are calculated based
on the option to calculate with posting or batch schedule. Financial dimension
sets also drive the data displayed in the Trial balance list page.
The order in which financial dimension sets are considered in reporting effect
how transactions are sorted and fields are presented. For example, the set
Department and Cost center indicates that the Department dimension type is
first and Cost center second. Therefore, the considered financial set is the
composite of Department and Cost center. Department amounts are presented
first and Cost center amounts are presented second.
The defined financial dimension set can be used alone or in pairs when inquiring
or reporting on financial transactions. The selection of a primary and secondary
financial dimension set is considered when presenting the results. The secondary
financial dimension set details the figures of the primary dimension set. 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, if the primary
dimension set is the composite of Main account and Department, these cannot
be select in the secondary financial set.
Scenario
Sara, the Chief Financial Officer (CFO) at Contoso Entertainment USA (CEU),
must:
To view the sales revenue for all departments in CEU, Sara decides to create a
dimension set that consists of ledger accounts and departments dimensions.
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Period Allocations
Allocation is the process of distributing monetary amounts to one or more
accounts or account and dimension combinations.
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• Basis
• Fixed percentage
• Fixed weight
• Spread even
Allocations also provide the ability to allocate across multiple companies, also
known as Intercompany allocations.
Scenario
Phyllis, the Accounting Manager at Contoso Entertainment USA (CEU), creates
a new Intercompany allocation rule for Electric Utilities to distribute overhead
utility expense to each department based on fixed percentages. The rule is for the
new fiscal year that begins on January 1, 2012. Because Phyllis does not want the
new rule to be used until then, she enters 01/01/2012 as the start date for the rule.
Because CEU typically reviews its allocation rules every fiscal year, Phyllis
enters 12/31/2012 as the end date for the rule.
Phyllis enters detailed notes about the basis and reasons for the allocation rule.
Phyllis then selects the Microsoft® Word template that was implemented when
CEU experienced an audit review to document the allocation rule completely.
When Phyllis has finished writing the document, she attaches a copy of it to the
rule. Anyone who wants additional information about the rule can open the
document or print an Allocation rules definition report.
• The General settings dictate which fields are available in the rule
tabs.
• The Source data for the allocation is also known as the allocation
pool.
• The Destination defines how the results of the allocation calculation
must be distributed to the destination distribution lines.
• Offset entries balance the destination distribution lines.
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1. Click General ledger, click Setup, click Posting, and then click
Ledger allocation rule.
2. Click the New button to create a new rule.
3. Enter the Rule as identification.
4. Enter a Description of the rule.
5. Optionally select the Effective start date and Effective end date for
the rule.
6. Select the Active check box, if the allocation rule is available to be
processed.
1. From the Ledger allocation rule form, select the General tab.
2. Review or change settings from the Overview tab in the
Identification and Administration sections.
3. View the Date last run, which displays the date when a user last
processed the allocation rule and created distributions.
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1. From the Ledger allocation rule form, select the Source button.
2. Click New to create a new record.
3. From the Field setting list select to allocate from an Account or
account Dimension combination.
4. If Financial dimension is selected in the Field setting field, select a
Financial dimension.
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1. From the Ledger allocation rule form, select the Offset tab.
2. In the Offset account from field, select where to find the offset
account.
o Source: The allocation process will use the respective account
defined in source.
o User specified: The allocation process will use the offset
account value specified.
3. If the Offset account from is set to User specified, select the Offset
account.
4. In the Offset dimension from field, select where to find the offset
account.
o Source: The allocation process will use the respective dimension
value that was defined in source.
o User specified: The allocation process will use the specified
offset dimension value.
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Chapter 1: General Ledger Setup
Scenario
Phyllis runs the Allocation rules definition report that details the allocation rules
for the current year. The report contains details about each rule including the rule
ID, description, From/To account number and dimension combinations, effective
start and end dates, calculation method details, usage information, and other
setup information.
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3. Click OK to print.
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. If the results are accurate, Phyllis posts the entry.
Perform the following steps to use the Process allocation request form to create
an allocation journal.
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7. Click OK.
NOTE: The Date last run field displays the last date a user processed an
allocation rule and created distribution lines.
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Summary
The General ledger setup course describes the initial setup to start working with
Microsoft Dynamics AX financials. The course provides basic introductions to
set up:
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Chapter 1: General Ledger Setup
1. What effect does the value in the General round-off field have on the values
in Microsoft Dynamics AX 2012?
3. Is it possible to post activity that uses a date for which a period has not been
created?
( ) Yes
( ) No
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6. Which allocation method defines how and in what proportion the source
amounts are distributed to the various destination lines, by referring to
balances in other account-dimensions?
( ) Basis
( ) Fixed percentage
( ) Fixed weight
( ) Spread even
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1.
2.
3.
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Solutions
1. What effect does the value in the General round-off field have on the values
in Microsoft Dynamics AX 2012?
MODEL ANSWER:
3. Is it possible to post activity that uses a date for which a period has not been
created?
( ) Yes
(•) No
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.
6. Which allocation method defines how and in what proportion the source
amounts are distributed to the various destination lines, by referring to
balances in other account-dimensions?
(•) Basis
( ) Fixed percentage
( ) Fixed weight
( ) Spread even
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Chapter 2: Chart of Accounts Setup
Introduction
A Chart of Accounts is a set of main accounts tracked by Microsoft Dynamics
AX®. It captures financial information to make good financial decisions. Each
account is assigned an account number as a unique identifier.
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.
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.
The Chart of Accounts Setup course also shows all the reports and inquiries
related to the Chart of Accounts.
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Scenario
Phyllis, the Accounting Manager, wants to include the Current Ratio on the
Short-term solvency KPI report. Current Ratio is calculated by dividing a
company’s current assets by current liabilities. Current assets typically consist of
cash, cash equivalents, accounts receivable, inventory, and marketable securities.
Current Liabilities consist of any liabilities that are payable within one year.
To derive the Current Asset value, Phyllis must sum the values of the Cash,
Accounts receivable, and Inventory accounts. Fixed Assets are not considered
current assets. To perform this calculation, Phyllis uses the Main account
category field. Main accounts later added to the chart of accounts will also use
the Main account category to automatically be included in existing calculations.
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Chart of Accounts
The Chart of Accounts (COA) is the structured list of an organization's general
ledger accounts. The COA will provide the main accounts for the COA plus the
account structures in use for the COA. These structures determine the valid main
account and financial dimension value combinations for the chart. Use the COA
to do the following:
Make sure that there is sufficient space so that in the future, additional main
accounts can be created between the existing main accounts. Decide whether
operating accounts must come before balance accounts or the other way around.
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Chapter 2: Chart of Accounts Setup
• Main account
• Dimension values
• Chart of accounts
• Main accounts
• Account structures
• Advanced rules
• Financial dimensions
• Financial dimension values
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1. Click New to create a new line, click the New from template to use
a template set up in the Main account templates form.
2. Enter an account number in the Main account field and enter an
account Name.
3. 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. It will be the shared setup.
Companies: Selecting this provides the means to override specific data at the
company level, such as active from/active to dates. Also to set up company
specific data such as default sales tax codes, default dimensions and financial
statement formatting.
It does NOT select which company can use the main account.
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NOTE: Depending on the selection of the Select the level of the main account to
display, specific fields in the Main accounts form are available.
The following main account types determine how the account is used in the chart
of accounts. You must select a main account type when creating the main
account in the Main accounts form.
Select one of the following options to enter as the Main account type:
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To set the Main account category field value, from the Chart of Accounts
form, select a main account category from the drop-down list.
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Chapter 2: Chart of Accounts Setup
1. In the Offset account field, select the default offset account for an
account in the general journal. By creating a default offset account,
you can settle certain costs from the same payment account without
manually specifying the account every time.
2. In the Opening Account field, enter the account number to which
the opening balance should be transferred. When you insert an
account and then run the Opening transactions periodic job for a
new fiscal year, the balance on the current account is transferred to
the account that is specified in this field.
NOTE: Only select asset or liability accounts in this field because profit and
loss, revenue, and cost accounts are set to zero when you create opening
transactions.
3. The SRU code is used specifically for Sweden and is only available
when the legal entity's address is in Sweden. If the entity is based in
Sweden, enter the SRU code in this field.
1. 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, users are prevented from entering a value for this
account.
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.
3. Select the Suspended check box to prevent all postings to the
selected main account. It is not possible to suspend an account that
is assigned as a budget group account on another account.
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Closing Options
It is important to define closing processes for the main account and how balances
are distributed at the time of closing.
In the Closing drop-down field, select how balances should be transferred to the
closing sheet forms during the closing process.
Allocation Terms
Allocated transactions redistribute account balances from one account to one or
more destination accounts or account-dimension combinations. The allocation
feature is valuable when centrally administrated expenses must be distributed to,
for example, individual cost centers.
Use allocation for realized and budget transactions. During allocation to the
given accounts, the net amount is totaled. After allocation, any remainder relative
to the journal line is posted to the original account with the original dimensions.
1. To access the Allocation form, click the Allocation check box in the
Main accounts form and then click the Allocation Terms button.
2. In the Allocation percentage field, enter the percentage of the
amount allocated to the specified account. The Percentage in total
field checks that the allocation does not exceed 100 percent.
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Chapter 2: Chart of Accounts Setup
• Currency
• User ID
• Posting types
• Sales tax (available if Companies is selected in the Select the level
of main account to display field)
• Optional - the field is not validated at the time of posting. This is the
default setting.
• To be filled in - the system verifies that the field is completed for
posting. The value is not checked.
• Table - the system verifies that the field is completed for posting and
that the value corresponds with the value specified in the account.
• List - the system verifies that the field is completed with one of the
values that are defined on the Validation list button.
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1. In the User ID list, specify the user who is authorized to post to this
account. The Validate user field determines how User ID must be
validated for posting.
2. In the Validate user field, determine how User ID must be validated
for posting. For more information, refer to "Create a New Main
Account - Validation Options."
1. In the Posting type field, determine the posting types allowed for the
current account to make sure that only the defined posting types are
accepted.
2. In the Validate posting field, determine how posting must be
validated. For more information, refer to "Create a New Main
Account - Validation Options."
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Chapter 2: Chart of Accounts Setup
NOTE: It is not required that the main account be the first segment in the
account structure. However, it is required to be a segment in the account
structure.
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NOTE: This form can also be accessed from the Chart of accounts form.
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.
Advance rule structures provide the financial dimension combinations that are
valid for the advanced rule.
For example, you want to track the travel expense account by the airlines. 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", "Airline 2", and "Airline 3". Now, you can easily track travel
expense by each airline defined.
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16. Optionally, select the Allow blanks check box to allow blank values
for the segment in the advanced rule you are defining.
17. Click OK to save and close the form.
18. Click Activate to save the changes and make them effective in the
ledger.
1. Click General ledger > Setup > Chart of accounts > Configure
account structures.
2. Select the account structure to apply the advanced rule.
3. On the Action Pane, in the Setup group, click Advanced rule.
4. Click New.
NOTE: To add or edit advanced rules for an account structure, the account
structure must be in a draft status. If the account structure is active, and you
select to create a new advanced rule or edit an existing advanced rule, you will
receive a message and can change the status of the account structure from active
to draft.
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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, a fiscal calendar, and one or more currencies.
Creating multiple ledgers will provide a ledger for each legal entity which
provides the chart of accounts, accounting currency, reporting currency and fiscal
calendar for the legal entity. The ledger also provides the means for sharing the
chart of accounts, currencies and fiscal calendar by multiple legal entities.
Each legal entity will have a separate ledger and it is possible to have multiple
ledgers for each legal entity.
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5. Select the values that will be displayed when the ledger account alias
is entered in a ledger account definition field.
6. Select the dimension that will be selected when you enter this ledger
account alias for a ledger account in the Initial focus field.
WMG uses the same chart of accounts and calendar as CEU. WMG and CEU
use different local currencies as CEU uses the USD currency and WMG uses the
CAD currency.
Because payments to suppliers and other trade partners is restricted to this ledger
(Example - payment transactions will not be allowed from other ledgers WMG
may establish), Phyllis must indicate this when creating the ledger.
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Chapter 2: Chart of Accounts Setup
Click General ledger > Setup > Sales Tax > Posting Groups.
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 the ledger posting
groups determine the ledger accounts that the calculated sales taxes are posted to.
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3. Select a fiscal year in the left pane. The details for the selected year
are displayed in the right pane.
4. Use the fields on this form to view period information and change
the status of the periods, and to select which users can post
accounting transactions to specific periods.
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NOTE: When a fiscal year is being closed, you can select the Set fiscal year
status to closed check box in the General ledger parameters form. This sets all
periods in a fiscal year to a Closed status. 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
All - All users are authorized to update in the module in the selected period.
None - No users are authorized to update in this module in the selected period.
For example, if a company wants to make some adjustments to a period, the
modules that will not be adjusted are set to None.
User group - Specific user groups are authorized to updates in the selected
period. In the Module user group area, specify the user group that can make
changes, when the module status is set to User group.
Recalculate Calendars
Use the Recalculate ledger periods form to validate the ledger period in the
general journal. If the ledger period has been modified for the ledger, the
reference to the ledger period will be updated in the general journal. A message
will be displayed and you will need to update the closing transactions using the
Close form.
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Ken is the Controller at Contoso Entertainment USA (CEU). CEU pays rent for a
leased building two times a year. The prepaid rent is an asset for CEU. The
following table provides additional information.
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.
1. In the Main accounts form, create the new account 131150, Prepaid
rent.
2. In the Main account type field, use the arrow to select Balance
sheet.
3. In the Main account category field, use the arrow to select
PREPAIDEXP for Prepaid Expenses.
4. On the Setup FastTab in the Currency field, click the arrow to
select USD.
Step by Step
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Challenge Yourself!
Use the information in the scenario to enter the allocation terms for account
600200.
Step by Step
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1. Click General ledger, click Setup, click Posting, and then click
Accounts for automatic transactions.
2. Click Create and the system automatically creates the most common
system account types when you set up the system accounts for the
first time.
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
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Chapter 2: Chart of Accounts Setup
NOTE: The Error Account, Penny Difference, and Year-end Result accounts for
automatic transactions are mandatory. The other accounts for automatic
transaction are set up depending on whether that functionality is used. If a
service pack is installed, new accounts for automatic transactions may be
introduced. 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, select the Interrupt in case of error account check
box in the General ledger parameters form.
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To print the Chart of Accounts report, click General Ledger, click Reports,
click Base Data, and then click Chart of Accounts.
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To access the Audit Trail form, click General Ledger, click Inquiries, and then
click Audit Trail.
If a journal that consists of several vouchers is posted, only one line is created in
the audit trail. Check the specific vouchers by clicking the transactions button.
• You can use the Ledger transaction list to view a list of all posted
transactions on the current account.
• The entries result from posting transactions in:
o Journals
o Sales and purchase orders
o Any other modules that post to ledger
To open the Account Transactions form, click General Ledger, click Reports,
click Transactions, and then click Ledger transaction List.
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Summary
This course, Chart of Accounts Setup, covers the basic information about the
Chart of Accounts, Advanced Rules, Account Allocation Terms, Accounts for
Automatic Transactions, and inquiries and reports related to these topics. The
Chart of Accounts, the central collection location for daily financial transactions,
is the base of the General Ledger module. It provides information about a
company's financial state.
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, for example, percentage allocation of main account
postings.
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Chapter 2: Chart of Accounts Setup
4. Can using posting types reduce the risk of selecting a wrong account when
you set up posting profiles?
( ) Yes
( ) No
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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
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1.
2.
3.
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Solutions
Test Your Knowledge
1. Is it possible to have the same chart of accounts used across multiple
companies?
(•) Yes
( ) No
MODEL ANSWER:
4. Can using posting types reduce the risk of selecting a wrong account when
you set up posting profiles?
(•) Yes
( ) No
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
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Chapter 3: Journal Setup
Introduction
A journal is a worksheet that you can use before you enter postings into the
system manually. Before you use financials in Microsoft Dynamics AX®, review
the setup procedures for journals in this course. The procedures explain the basic
setup of journals such as journal names, controls, and texts. You can use journals
quickly and efficiently when you set them up correctly.
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Journal Setup
There are manually generated journals and system generated journals in
Microsoft Dynamics AX. Examples of system generated journals are allocation
journals and elimination journals. These journals are created automatically and
are never created manually. Manual journals entries are generated by postings
entered into the system such as a general journal entry. When you use a manual
journal entry the transactions are not posted immediately. Before you can post a
manual entry, they can be the following states:
• Changed
• Reviewed
• Approved
• Deleted
1. Set up journal names. Use the journal setup for all new journals by
using the name listed in Journal names. This means all the journals
use the voucher series, offset account, and other information that you
set up.
2. Create a new journal. Many of the modules in Microsoft Dynamics
AX use journals for entering transactions. In General Ledger, use
journals for ledger posting. In Accounts Receivable, use journals for
postings. When you open a journal dialog box, create new journals
by using the template that is associated with the journal type.
3. Create journal lines and post transactions. When a new journal is
created, enter posting transactions in the journal and post it or
transfer the journal for someone else to review and approve.
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Chapter 3: Journal Setup
Journal Types
The following are examples of journals:
• Daily
• Periodic
• Invoice register
• Approval
• Customer payment
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4. Select the type of journal in the Journal type list. The journal type
determines what the journal is used for and in which module it is
available. For example, the customer payment Journal type is used
only for customer payment journals.
1. Select a journal from the Journal names form, and then click the
General tab.
2. In the Approval area, select the Active check box if the journal must
be approved before it is invoiced. The approval system enables
journal transactions to be reported as one of the following:
o Ready
o Approved
o Rejected.
3. 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.
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Chapter 3: Journal Setup
NOTE: You cannot use both the manual approval system and the workflow
approval system for the same journal name.
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NOTE: The following posting layers can be used: Current, Operations, and Tax
Current is the default layer that is used the same as Operations for entry of
transactions. These are part of the periodic financial reporting. The Tax layer is
where you record transactions that impact tax reporting.
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Chapter 3: Journal Setup
NOTE: Posting operations or tax transactions can be done in the closing period
from the Closing sheet form.
4. Select the Delete lines after posting check box to delete journal lines
when posting is finished. This saves database space. However, the
ability to inquire on posted journal lines is not saved.
5. In the Detail level list, specify how journal lines should be
summarized:
o Details - every instance of an account number in the journal
lines is posted as a separate account transaction.
o Summary - a summation of journal lines into one transaction is
performed automatically during posting if voucher with date,
account number, dimension, and currency code contain the same
values.
6. Select how to handle the posting of fees in the Fees posting list, for
example, for remittance. Select from the following options:
o Keep fees in journal - keep fees in the actual journal for future
posting.
o Transfer fees, keep voucher no. - during posting of remittance
journal, the fees are transferred into the journal set up in the Fee
journal field on the bank account for the remittance. The journal
keeps the original voucher number.
o Transfer fees, new voucher no. - during posting of remittance
journal, the fees are transferred into the journal set up on the
bank account, and a new voucher number is allocated
automatically.
7. Specify how many journal lines are allowed in the Lines limit field.
If the number of journal lines exceeds the number specified in the
Lines limit field, the journal lines are distributed into several smaller
journals.
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1. Select a journal from the Journal names form, and then click the
Posting restrictions button.
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Chapter 3: Journal Setup
Journal Controls
Set up journal control options to set up posting rules for the journal name.
Scenario
Contoso uses journal control to set up limitations to certain journals. For
example, the bank journal name is set up so that it is only possible for users to
make bank account postings, and the customer payment journal allows only
customer type postings.
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1. Use the Add button to add detail information. These fields are
available only when Ledger is selected from the Company accounts
list in the Which account types can be posted? section.
2. Select a Company account to determine which segment accounts
are available for this journal.
3. Select the Segment that is valid for the selected journal.
4. Select the Ledger type that is valid for the selected journal. If <All>
is displayed, all ledger types are valid for the selected journal.
5. 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.
Journal Descriptions
Use journal texts to enter and reuse transaction texts when you record in journals.
Users frequently enter the same transaction text every time they post a certain
transaction. For example, users transfer from petty cash to bank or payment of
invoice number. You can save the transaction texts in a table with a search name
so that you can reuse the transaction text.
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Chapter 3: Journal Setup
4. Enter a short, memorable name in the Search name field. The search
name frequently resembles the value in the Identification field.
For example, enter:
o 1 in the Identification field
o Daily in the Search name field
o Daily transactions in the Transaction description field
Scenario
Phyllis, the Accounting Manager at Contoso, wants to track the current and
expected balance of liquidity accounts better. These include bank accounts and
petty cash accounts. After Phyllis has set up the balance control accounts, April,
the Accounts Payable Coordinator, verifies the expected balance of the bank
account to make sure the balance is sufficient to pay invoices. The expected
balance includes posted and unposted journals.
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Chapter 3: Journal Setup
Perform the following steps to view the current and expected balance of a
balance control account:
1. Click General ledger, click Setup, and then click General Ledger
Parameters.
2. In the navigation pane select Ledger, then select one of the
following methods to check the use of vouchers from the Check for
Voucher used list:
o Reject duplicate - prevents the use of different transaction dates
for the same voucher number.
o Reject duplicates within fiscal year - allows for different
transaction dates for the same voucher number in different fiscal
years.
o Accept duplicates - uses different transaction dates for the same
voucher number in the Transaction Date field in journal lines.
o Warn in case of duplicates - sets up the system to notify you if
journal lines with different transactions dates have the same
voucher number.
3. Select the Check continuous numbers check box for the system to
check for continuous numbers in the number sequences that generate
vouchers in ledger. If this option is selected, no missing numbers can
be in the voucher number sequence.
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1. Click General ledger, click Setup, and then click General ledger
parameters.
2. Select Number sequence in the navigation pane and then select a
Number sequence code.
The Reference is a unique key for the journals in the General Ledger
module and acts as a batch number that links journal transactions
together. When you specify the number sequence for the journal
number reference, you can create general journal transactions. In the
Number sequence code list, set up a number sequence for journal
number transactions. The number sequence is created in the Number
sequences form.
Number sequences in the Journal names form are used for voucher
numbers (journal lines). You can number the journal by using the
number sequences in the General ledger parameters form on the
Number sequences tab.
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Chapter 3: Journal Setup
Ken, the Controller at Contoso, must set up two journals in Microsoft Dynamics
AX. One journal records vendor invoices daily and a second journal records
where periodic rent entries will be recorded. The table provides additional
information about the journals.
Challenge Yourself!
Use the information in the table to set up the journals.
Step by Step
Perform the following steps to set up the Vendor Invoice journal.
1. Click General ledger, click Setup, click Journals, and then click
Journal names.
2. Click the New button to add a line.
3. In the Name field, enter Day3.
4. In the Description field, enter Vendor Invoice.
5. In Journal type, use the arrow to select Daily.
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6. In the Voucher series field, use the arrow to select the first
Acco_18.
7. In the Account type field, verify Ledger is populated automatically.
8. Click the General FastTab.
9. In the New voucher field, verify that In connection with balance is
selected.
1. From the Journal names form, click the New button to add a line.
2. In the Name field, enter PerRent.
3. In the Description field, enter Rent Journal.
4. In the Journal type field, use the arrow to select Periodic.
5. In the Voucher series field, use the arrow to select the first
Acco_23.
6. In the Account type field, verify Ledger is populated automatically.
7. Click the Journal control button.
8. Click the Add button in the Which account types can be posted?
9. In the Company accounts field, click the arrow to select CEU.
10. Close the Journal control form.
11. Close the Journal names form.
Perform the following steps to set up journal text for the Rent Journal.
1. Click General ledger, click Setup, click Journals, and then click
Journal description.
2. Press the New button to add a line.
3. In the Identification field, enter rent. Notice the Search name
defaults with the same value.
4. In the description field, enter rent.
5. Close the form.
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Chapter 3: Journal Setup
Summary
Journal setup completion allows users to create journal and journal lines and
record vendor and customer transactions.
It is also possible to set up journal validation and journal approvals for every
financial journal. With journal validation, you can lace restrictions on users,
accounts, and modules. For each journal type, approval procedures for
verification may be set up before any update.
User rights are also an important consideration. The level of detail stored in
individual records and fields may be modified. Defining access permissions
(read, edit, add, or delete) also allows for increased security for sensitive
information.
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Chapter 3: Journal Setup
Step:
5. Which of the following would be used to monitor the current and expected
balance on an account as transactions are entered in a journal.
( ) Journal names
( ) Journal controls
( ) Balance control accounts
( ) General ledger parameters
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1.
2.
3.
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Chapter 3: Journal Setup
Solutions
Test Your Knowledge
1. What is the purpose of the Blocking function when setting up Journals?
MODEL ANSWER:
MODEL ANSWER:
Step:
4 : Post transactions.
5. Which of the following would be used to monitor the current and expected
balance on an account as transactions are entered in a journal.
( ) Journal names
( ) Journal controls
(•) Balance control accounts
( ) General ledger parameters
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Chapter 4: General Ledger Daily Procedures
Introduction
Every manual posting entered into Microsoft Dynamics® AX is entered through a
journal. A journal is a type of worksheet where entries do not post immediately.
You can review, change, and verify completed journals until they are ready for
posting.
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. You also can choose whether to keep the used journals for
historical purposes.
This course explains journal management and journal transactions in the General
ledger module.
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• General ledger
• Bank
• Customer
• Vendor
• Projects
• Fixed assets
In a general journal, 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.
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Chapter 4: General Ledger Daily Procedures
NOTE: The Posted check box is selected automatically after the journal has been
posted. The General journal form filters journals by the Show field. You can
select to display only open, all, or posted journals.
1. Use the tabs, for example the General or Financial Dimension tab,
to change or add to any of the field information that is entered
automatically from the Journal names form.
2. Click Lines on the menu bar to create a transaction.
3. To inquire about transactions within a journal at any time, highlight
the journal and click the Lines button.
4. To print the journal and other reports, click the Print button.
5. To save the lines, click File, then click Save at the end of each line
or use the down arrow to enter a new transaction line.
6. Click Post in the General journal form or in the General journal
lines form to post transactions to the General Ledger immediately
after you create transactions. When you post the journal lines in
either form, the results are the same. A transaction does not affect
account balances until you post it.
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• 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. Click the Lines
button on the General Journal to open the Journal lines form.
Create a journal and view open, posted, or all journals according to the selection
in the Show list at the top of the form.
NOTE: Set up default number sequences using the General ledger parameters
form. To do this, click General Ledger, click Setup, then select General ledger
parameters. If you set the number sequence to Continuous and you allow no user
changes, the voucher field is skipped automatically. Refer to the Microsoft
Dynamics AX Introduction manual for more information about number
sequences.
1. Select one of the following account types to use for the general
journal transaction in the Account type field:
a. Ledger - use Ledger for transactions in a ledger account.
b. Customer - use Customer for transactions to customers.
c. Vendor - use Vendor for posting to a vendor account. For
example, when you record a vendor payment and specify Vendor
as the Account type, posting occurs in the specified vendor
account. At the same time, posting occurs automatically in the
vendor summary account in the General Ledger.
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Chapter 4: General Ledger Daily Procedures
NOTE: Set up the default offset account for an account in the Journal names
form. By creating a default offset account, this field is populated automatically
without specifying the account every time. Also, set up default accounts and
posting account restrictions in the Journal names form by clicking the Journal
Control button.
1. Click Post, then select Post the general journal to post without
first validating. If the journal contains erroneous entries, you will
receive an error message and the journal will not post. Click
Validate to verify that there are no errors before you click Post.
2. Click Post, then Post and transfer to transfer the line that contains
errors into the next journal of the same type. All of the correct lines
will then post.
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Chapter 4: General Ledger Daily Procedures
Scenario
Ken is the Controller for Contoso. On June 30, 2011 Contoso paid 6,000.00 USD
for audio-visual equipment.
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. Help Ken record the activity in the prepaid rent expense account in
Microsoft Dynamics AX. Enter a journal for the prepaid rent
expense.
2. After you enter the transaction information, post the journal.
NOTE: Normal accounting procedures would not disburse a large payment from
a Petty Cash account. This account (number 110180) has been chosen to simplify
this lab procedure.
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Step by Step
Create the Journal:
Post the Journal (Only if Fiscal Year has been set up):
1. If a fiscal year and period has been set up for this fiscal period you
may click Post to post this transaction. 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.
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Chapter 4: General Ledger Daily Procedures
Scenario
Ken is the controller for Contoso. On June 25, 2011 he received an invoice from
vendor for 800.00 USD. A journal is to be created, using the GenJrn journal, for
the expense, debiting the Bank Operating account and entering a second line,
crediting 131100. Help Ken validate the journal and review the balance control
accounts online.
Challenge Yourself!
1. Enter a journal for office expenses, using two lines of entry instead
of an offset account.
2. Validate the journal.
3. Review the balance control accounts online.
Step by Step
Create the General Journal:
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14. In the Account field, click the arrow to select account 131100.
15. In the Description field, enter invoice.
16. In the Credit field, enter 800.
1. Click the Validate button, and then click the Validate. An Infolog
form displays, which provides information for issues in the journal
that may affect posting.
2. Close the Infolog form.
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Chapter 4: General Ledger Daily Procedures
• General ledger
• Accounts receivable
• Accounts payable
• Project
You can post journals immediately or set them up as a job for batch processing.
Scenario
Contoso uses batch processing at the end of its business day to process large jobs.
During the day, Susan, the order processor, opens and creates multiple journals.
The journals are not posted in case Susan must make corrections or add more
items to the journals during the day. At the end of the day, Susan runs a journal
batch job to post all the open journals at the same time.
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NOTE: If using batch job processing, you may click the Late selection check box
to build a query, and to have the system use all journals that meet the criteria for
posting when the batch is run. By selecting this check box, the journal does not
have to exist prior to being selected for the batch processing job.
1. Select or clear the Transfer errors check box in the Set up posting
form, and then click Apply.
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.
3. Click OK to return to the Post journals form.
4. Click OK to post the multiple journals.
NOTE: If Lines limit is set up in the Journal names form, you may have to
create several journals during posting. The number of the first journal posted is
saved automatically in each associated journal that you create.
NOTE: A power failure during posting can cause some journals to post while
others do not post. If this occurs, start the posting again by using the same
criteria for subsequent selection in the original request. The journals that did not
get posted appear in this form for posting.
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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. The Delete
posted journals form deletes all posted journals in the Journals form to free
space. This does not delete the posted vouchers.
Approval Journals
To set up an unlimited number of journal templates, use the Journal names
form. You can set up the journal templates with or without a mandatory approval
of the transactions before posting. The person responsible for journal routines
sets up the approval system in one of the journals.
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4. Select the type of journal in the Journal type field. The journal
type determines what the journal is used for and which module it is
available in. For example, the Customer payment journal type is
used only for customer payment journals. The customer payment
journal is used only within Accounts Receivable, to post a payment
directly to a customer account. Therefore, a description such as "AR
Payment" would be appropriate when you select this journal type.
The number sequence automatically is applied to, for example, journal lines.
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Chapter 4: General Ledger Daily Procedures
1. Select the default account type for the journal name in the Account
type list. For example, when you record a vendor disbursement and
specify Bank in Account type, posting occurs in the bank account
selected in the journal. At the same time, posting occurs
automatically in the bank's posting account in the General Ledger.
2. Optionally, you can select a default offset account for the journal in
the Offset account list.
NOTE: If an offset account is set up, select the Fixed offset account check box to
prevent users from changing the default offset account.
3. Select the Active check box to start the approval system. This
enables journal transactions to be reported as ready, approved, or
rejected.
4. Specify the user group whose members should approve the journal
in the Approve field.
5. Close the Journal names form.
NOTE: There is also a Workflow approval process which is separate from this
approval process. if you are using Workflow approval, do not use steps 3 and 4.
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HINT: View the history of approvals on the History tab of the Journal form and
the Journal voucher form.
NOTE: If the journal has errors, click Approval, and click Reject.
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Chapter 4: General Ledger Daily Procedures
Scenario
Phyllis, the Accounting Manager for Contoso, has the responsibility for
guaranteeing the accuracy of transactions posted in Microsoft Dynamics AX.
Phyllis has noticed many errors on entries posted by Alfredo Fuentes Espinosa
(AFE) in the GenJrn journal, a journal used only by Admin. Now Phyllis has
decided that entries made to GenJrn must be approved by a member of the
Finance team, Alex Roland (ASR). Phyllis needs help establishing the proper
procedures to enable this approval.
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.
Helpful Information
Here are some hints:
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Voucher Templates
A voucher template is a voucher that can be used as the basis for future vouchers.
Use voucher templates with a general journal or an accounts payable invoice
journal.
Scenario
Phyllis, the Accounting Manager at Contoso, is entering a voucher to record
interest expense on a fixed-rate long-term note. The voucher debits Interest
Expense and credits Interest Payable for 350.00 U.S. dollars (USD) each.
This voucher for the same amount must be recorded each month. To reduce
future data entry time, Phyllis decides to save the voucher as a voucher template
by amount.
The next time Phyllis records an interest expense, she selects the Load voucher
template action and chooses the interest entry. The original ledger accounts and
amounts are loaded into the form automatically.
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Chapter 4: General Ledger Daily Procedures
Scenario
April, the Accounts Payable Coordinator, receives a telephone bill that she must
enter. At Contoso, April records the telephone expenses across all departments
equally. April enters the voucher with the appropriate department breakdown.
The following table shows is an example of the distributions for an invoice in the
amount of 600.00 U.S. dollars (USD).
April saves this entry as a Voucher template by percent. This will hold the value
assigned to each account as a percentage of the total. In this case, April will
assign each department 25 percent.
The next time April receives the telephone bill, she must retrieve the Voucher
template and enter only the amount of the telephone bill. The distributions then
are created based on the original percentage.
5. Click OK.
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Periodic Journals
A periodic journal only has data entered periodically. For example:
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Chapter 4: General Ledger Daily Procedures
6. Click the Period journal. Click Save Journal when the transaction
is complete. A new window appears.
7. Either save the journal in an existing journal or create a new journal.
NOTE: When you create a new periodic journal, the Period journal you select
must first exist as a Journal name with Journal type periodic in the Journal
names form. This can be found by clicking General ledger, click Setup, click
Journals, and then click Journal names.
NOTE: After you create the periodic journal, you can post or delete the General
journal that you created by these steps. A record will be created automatically in
the Periodic journals form found by clicking General ledger, click Periodic,
click Periodic journals.
1. Enter the posting date for transactions or last date for transfer of
periodic transactions, in the To date field. This is the date the
system uses when searching through the periodic journals, and
evaluating whether to retrieve the periodic journal. Enter a date that
is after the date you saved the journal, even if the journal does not
have an accounting date.
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2. Enter a date to use for the accounting date in the Empty date field
if the Date field in the periodic journal is empty. If the Date field is
empty, the To date is automatically used as a posting date.
3. Select the periodic journal to use in the Periodic journal number
field list.
4. Select either Copy or Move in the Copy or move journal field list.
This will determine whether or not the lines from the selected
Periodic journal number are left in a reusable status. If the lines are
copied, you can use the journal again. If the lines are moved, the
journal is not available for further retrieval.
5. Click OK to create the journal lines.
6. Post the journal as you normally would.
7. Go to General Ledger, click Periodic, then click Periodic Journal
to view or create all the periodic journals.
NOTE: You also can create periodic journals by using this form.
• Unit field - select the unit to use for the selected periodic transaction,
for example, Months for monthly postings. If you do not select a
date, the Unit field does not apply.
• Number of units field - enter the number of units defined in the
Unit field that make up the interval in which to post transactions for
the selected journal line. For example, if you have entered Months in
the Unit field and want to make quarterly postings, enter 3 in the
Number of units field. If you entered Days in the Unit field and 14
in Number of units field, you indicate that the periodic journal line
is posted every two weeks.
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• Last date field - this field contains the Session date of the last time
you transferred the periodic line to a journal. The system updates the
field automatically.
Every time you post the Periodic journal by using the General journal form,
the Date field in the Periodic journal, Journal voucher is automatically
incremented by the values set up in the Periodic tab. This field is found by
clicking General ledger, click Periodic, then click Periodic journals. Next,
click the Lines button, and click the Date field.
When you select a Periodic journal to retrieve into the General journal form,
the value found in the To date field (go to General ledger, click Journals, click
Lines, click the Period journal button, then click Retrieve journal, then click
To date) determines whether to retrieve the journal. 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, click Periodic journals, and then click
Lines).
However, if the Date field in the Periodic journal Journal voucher form line is
blank, the line automatically transfers one time per retrieval, and the posting date
is set based on the values entered during retrieval.
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Scenario
Ken is the Controller for Contoso. It is the end of June and therefore one-sixth of
the prepaid rent must be expensed. Accounting staff must make an entry to move
the used portion of 1,000.00 USD to Rent Expense. Ken asks you to create the
Periodic journal and post the June entry.
Option
Name of Journal RentExp
Description Rent Expense
Date 06/30/2011
Account 131100
Transaction Text Rent Expense
Credit $1,000.00
Offset Account 605150 Rent Expense
Unit Month(s)
Number 1
Challenge Yourself!
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Step by Step
Set up the Journal name:
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NOTE: You also can enable Reason codes for transaction reversal.
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NOTE: You can set the number sequence to Continuous by clicking General
Ledger, click Setup, click General ledger parameters, then click Number
Sequences, and check the appropriate box.
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Chapter 4: General Ledger Daily Procedures
NOTE: Parameter settings for a module determine whether you must enter a
reason for the reversal, in addition to entering a posting date.
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NOTE: Reversed tracing is active only for reversed transactions and reversed
transactions that you revoke.
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Chapter 4: General Ledger Daily Procedures
Scenario
An interest note is issued on September 16, with interest payable on October 15.
Assuming the interest payment at the end of the 30-day period is 100.00 USD,
half of the expense must be reported in September, because that is when the costs
were incurred. Phyllis, the Accounting Manager, enters a month-end transaction
on September 30, as shown in the following table.
Because the full payment will not be made until October 15, Phyllis sets the
previous transaction with a reversing date of October 1. This action creates a
reversal of the previous transaction in the new accounting period, as shown in the
following table.
When the actual transaction for payment of interest is entered on October 15, the
following transaction occurs:
The overall balance for the interest expense for October is a debit of 50.00 USD.
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Perform the following steps to designate on the header that a general journal
entry is a reversing entry:
NOTE: You also can access the Reversing entry and Reversing date fields from
the General tab in the Journal form.
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Chapter 4: General Ledger Daily Procedures
To print the General journal entries that have not been posted report, open
General Ledger, click Reports, click Journals, then click General journal
entries that have not been posted.
NOTE: The account must be the account in the Chart of Accounts. For example,
no value displays if you enter the account in the journal as a debit to the bank
account, and then later you make an inquiry on the ledger account for that
specific bank account.
To access this report, click General ledger, click Reports, click Transactions,
then click Balance list.
• The total of all the debit balances should equal the total of all the
credit balances. If the debits do not equal the credits, then an error
occurred somewhere in the process.
• The total of all accounts on the debit side and on the credit side is
known as the trial balance. Print the trial balance to verify the debits
and the credits equal.
To access this report, click General ledger, click Reports, click Transactions,
then click Trial balance.
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To access this form, click General ledger, click Inquiries, then click Audit
trail.
To access this form, click General ledger, click Inquiries, then click Voucher
transactions. After you enter the criteria in the Inquiry form, click OK to
continue.
Summary
By using the connectivity in Microsoft Dynamics AX, many transactions in the
general ledger are posted automatically. This applies to sales and purchases, cost
of goods sold, discounts, interest payments, exchange rate adjustments of
accounts receivable and accounts payable, project invoices and costs, work in
progress, fixed asset transactions and inventory transactions.
However, you also can enter General Ledger transactions manually when you use
general ledger journals. You can control the posting in the journals by the way
you set up of the Chart of Accounts and the journal templates. The journal itself
also offers various posting options.
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Chapter 4: General Ledger Daily Procedures
3. What information is needed to create a journal entry? (Select all that apply)
( ) Accounting date
( ) Ledger account
( ) Offset account
( ) Debit or credit amount
5. In Microsoft Dynamics AX, you can set up journals that require mandatory
approval.
( ) True
( ) False
6. With which journals can you use voucher templates? (Select all that apply)
( ) General journal
( ) Fixed assets journal
( ) Accounts payable invoice journal
( ) Purchase journal
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7. Which voucher template type allows users to recreate a voucher for the same
accounts and values as the original entry?
( ) Percent
( ) Division
( ) Aggregate
( ) Amount
10. Which of the following fields designates a reversing entry? (Select all that
apply)
( ) Reversing entry
( ) Correcting entry
( ) Reversing date
( ) Correction date
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Chapter 4: General Ledger Daily Procedures
1.
2.
3.
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Solutions
Test Your Knowledge
1. General journals are used to post transactions in which of the following
accounts? (Select all that apply)
(√) General ledger
(√) Bank
(√) Customer
(√) Vendor
3. What information is needed to create a journal entry? (Select all that apply)
(√) Accounting date
(√) Ledger account
(√) Offset account
(√) Debit or credit amount
5. In Microsoft Dynamics AX, you can set up journals that require mandatory
approval.
(•) True
( ) False
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6. Which journals can you use voucher templates? (Select all that apply)
(√) General journal
( ) Fixed assets journal
(√) Accounts payable invoice journal
( ) Purchase journal
7. Which voucher template type allows users to recreate a voucher for the same
accounts and values as the original entry?
( ) Percent
( ) Division
( ) Aggregate
(•) Amount
10. Which of the following fields designates a reversing entry? (Select all that
apply)
(√) Reversing entry
( ) Correcting entry
(√) Reversing date
( ) Correction date
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Chapter 5: Sales Tax Setup
Introduction
The requirements for tax calculation and tax reporting differ significantly for
different countries. Therefore, the tax module of a true international Enterprise
Resource Planning (ERP) system must be comprehensive. In Microsoft
Dynamics AX®, 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.
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This topic provides a general overview on taxes, with the focus on sales taxes,
although the tax system in Microsoft Dynamics AX can process many kinds of
taxes and duties.
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Chapter 5: Sales Tax Setup
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.
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If you sell the item P Lamp to customer TTL Tire, the system calculates the sales
taxes based on tax codes CA and Fed because those codes exist in both groups.
When you attach settlement period and posting group to the tax codes, you
specify how to post and pay the taxes. Finally, you can set up the tax reporting on
the sales tax code.
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Chapter 5: Sales Tax Setup
• Each ledger posting group can contain several ledger accounts. The
help text indicates the purpose of each account and how it is used.
• You can set up ledger accounts that have the posting type Sales tax
to select the accounts in the Account group form.
• Changes that you make to the ledger account numbers in Ledger
posting groups only affect transactions that have not yet posted.
• Sales-tax payable
• Use-tax payable
• Settlement account
• Sales-tax receivable
HINT: Describe the groups so that you can recognize them. This description
appears with the code of the ledger posting group.
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4. Select the ledger account in the Sales tax payable list, where you
must post the outgoing sales tax as part of the company's revenue.
The system debits the outgoing tax in the customer account and then
credits this account. Debits are automatically recorded in the account
and settled upon payment of the taxes. The ledger accounts available
in the Sales tax payable list are the posting type of sales tax in the
Chart of accounts.
These sales taxes are collected by the company on behalf of the tax authority
when you sell taxable goods and services. The amount you receive includes the
sales tax.
For example, if a customer makes a purchase of 95.00 USD and the tax amount is
5.00 USD, the ledger transactions are as follows:
* The sales tax payable line represents the ledger account specified in the Sales
tax payable field on the Ledger posting group form. The system credits this
account for sales tax amounts received from customers and debits the appropriate
customer accounts.
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Chapter 5: Sales Tax Setup
1. 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, and the amount paid to the vendor
includes taxes. For example, if a vendor sends an invoice of 100.00
USD, of which 5.00 USD is value-added tax, the ledger transactions
are as follows:
** This account represents the ledger account specified in this field. The system
debits to this account the sales tax amounts that you pay vendors and credits the
appropriate vendor accounts.
2. 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.
NOTE: If the Apply US sales tax and use tax rules check box is selected on the
General Ledger Parameters form on the Sales tax tab, the Sales tax payable
field is unavailable. Instead, the system debits sales taxes paid to vendors as
expenditures (costs) to the same accounts as the purchases.
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Enter the ledger account that offsets the use tax expense for taxes that vendors do
not claim in the Use tax payable list. The way you use this account depends on
the type of tax system your company chooses.
1. Non-U.S. taxes - You must indicate a use tax expense account for the
Ledger posting group. For any sales tax groups that contribute
amounts to this ledger account, you must select the Use Tax field on
the Setup tab on the Sales tax group form, found at General
Ledger, Setup, Sales tax.
2. U.S. taxes - 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. The vendor is not required to
collect the tax. However, the company may still owe taxes to a sales
tax authority and must track such taxes.
A company buys office supplies on the Internet from an out-of-state vendor. The
vendor charges 100.00 USD for the supplies and no tax. The company may still
owe use taxes to the sales tax authority in its own state. The ledger transactions
are as follows:
NOTE: This field is visible only when the Apply U.S. sales tax and use tax rules
check box is selected in the General ledger parameters form on the Sales tax tab.
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Chapter 5: Sales Tax Setup
1. Select the ledger account that the system debits when you pay taxes
in the Settlement account field. To ease use, group the account with
other ledger accounts in the Chart of accounts that contain posted
taxes. The sum of these accounts is the total balance of taxes due.
2. Perform the following in the Ledger posting groups form:
o Enter the ledger account for the posting of vendor cash discounts
that include a sales tax amount. If you use this field, you must
also select the Reverse sales tax on cash discount and Cash
discount is calculated on amount incl. sales tax check boxes in
the Parameters form.
o Select the account for posting loss on cash discounts in the
Customer cash discount list. You can use this account to view a
more accurate audit trail on the transaction.
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Scenario
Phyllis is the Accounting Manager for Contoso. Contoso has a new customer in
Alabama. 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.
NOTE: The labs in this chapter must be completed in order as they are
dependent on the previous lab.
Challenge Yourself!
1. Create an account to record the sales tax payable and the sales tax
settlements for the Alabama customer.
2. Set up a new ledger posting group to assign to the Alabama customer
to automate postings of sales tax transactions.
1. When you create a new account for the sales tax liability for the
Alabama customer, use account number 220105.
2. 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).
Step by Step
Set up the ledger account:
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Chapter 5: Sales Tax Setup
1. Click General ledger, then click Setup, then click Sales Tax, and
then click Ledger posting groups.
2. Click the New button to add a line.
3. In the Ledger posting group field, enter ALST.
4. In the Description field, enter Alabama State Tax.
5. In the Sales tax payable field, click the arrow to select account
220105.
6. In the Settlement account field, click the arrow to select account
220105.
7. Close the Ledger posting groups form.
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You can pay sales tax through a vendor or to the sales tax authority directly. To
pay sales tax through a vendor, specify the vendor's account number together
with the correct sales tax authority. Sales tax payments are transferred by the
system to the vendor making the payment. To make payments to the sales tax
authority, enter the sales tax authority's address information.
1. Click General ledger, click Setup, click Sales tax, then click Sales
tax authorities.
2. Click the New button.
3. Enter a unique code for the authorities that you send tax declarations
and payments in the Authority field. Microsoft Dynamics AX uses
this code throughout the system to refer to a particular authority.
4. Enter the name of the tax authority in the Name field. It displays on
reports and in other areas throughout the system.
NOTE: Give the tax authority a name that is easy to identify. The name displays
together with the tax authority code.
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Chapter 5: Sales Tax Setup
6. Select the report layout to print for the tax authority in the Report
layout list.
4. Specify the general unit for rounding sales tax amounts in the
Round-off field, according to the chosen rounding form.
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EXAMPLE: If you select Own advantage, with a Round-off of 0.10, the system
rounds a figure of 10.16 to 10.10 and -10.16 to -10.20. This ensures that the
rounding is always to the advantage of the company.
Create as many sales tax authorities as needed, each with specific address and
contact information and report layout. The company can pay sales taxes to the
authority directly or through a vendor account created for the sales tax authority.
NOTE: If you have not set up the tax authority as a vendor, prepare a manual
payment to the tax authority on the appropriate due date.
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Chapter 5: Sales Tax Setup
Scenario
Phyllis, the Accounting Manager for Contoso, has asked for your assistance in
setting up a sales tax authority. Contoso recently started conducting business with
a customer in Alabama. A new sales tax authority must be set up to use to report
sales taxes to the Alabama authorities.
NOTE: The labs in this chapter must be completed in order as they are
dependent on the previous lab.
Challenge Yourself!
Set up the Alabama sales tax authority. Use ALA for the authority name.
1. Click General ledger, then click Setup, then click Sales tax, and then
click Sales tax authorities.
2. Create a new sales tax authority. Contoso uses the field value
"Normal" for the rounding method and it rounds to the nearest
penny.
Step by Step
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Scenario
Phyllis, the Accounting Manager for Contoso, has discovered that assigning a
vendor to a sales tax authority has the following advantages:
To automate payments to the Alabama sales tax authority, Phyllis has asked you
to set the Alabama sales tax authority up as a vendor. Use the following
information for the vendor.
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.
Challenge Yourself!
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Step by Step
Set up the vendor:
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NOTE: If the Include corrections field on the Sales tax tab page in the General
ledger parameters form is selected, Microsoft Dynamics AX includes corrections
from previous periods into the tax report for the actual period. Otherwise it is
possible to manually select what information is included before running the
report.
Reporting periods depend on the size of the company, laws, and the authorities.
Typical periods could be:
• Monthly
• Quarterly
• Yearly
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Chapter 5: Sales Tax Setup
3. Enter the name of the settlement period that appears on reports and
in other areas throughout the system in the Description field.
1. Click General ledger, click Setup, click Sales tax, then click Sales
tax settlement periods.
2. Select a record.
3. Select the terms of payment for the sales tax settlement in the Terms
of payment list. Create and manage terms of payment in the Terms
of payment form in Accounts Receivable or Accounts Payable.
4. Select the tax authority that you report and pay taxes to for each
settlement period in the Authority list.
NOTE: The Terms of payment field, which is attached to the settlement period,
only applies if a vendor account is set up on the sales tax authority. In this case,
this payment term overrules any terms of payment set on the vendor in the
Accounts Payable module. 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.
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1. Click General ledger, click Setup, click Sales tax, then click Sales
tax settlement periods.
2. Select a record.
3. Select the reporting interval in days, months, or years, in the Period
interval list, on the General FastTab.
4. Enter the length of the settlement period in the Number of units
field. Based on how you define the Period interval, the settlement
period displays in days, months, or years.
EXAMPLE: If the Period interval is set to Month(s) and the Number of units is
set to 1, a new period automatically is one month. However, if the Period interval
is set to Month(s) and the Number of units is set to 12, the length of one period is
one year or 12 months. You can create new periods automatically by clicking
New periods.
1. Click General ledger, click Setup, click Sales tax, then click Sales
tax settlement periods.
2. Select a record.
3. To create a new period, click on the Periods FastTab, and then click
the Add button.
4. Enter the first day and last day of a period interval in the From date
and To date fields. You cannot change an updated period interval.
This means that you cannot remove tax transactions from the original
period interval. You can correct errors with an offset transaction that
is identical to the original transaction, but with the opposite
mathematical sign.
5. Add additional periods by clicking the New Period action.
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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. 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. Additionally, view sales tax payments for a specific
period by selecting an interval on the Periods tab and clicking
Interval sales tax settlements.
HINT: Click General ledger > Reports > External > Sales tax payments to print
a report about all settled sales taxes.
• View posted sales tax transactions for a specific sales tax settlement
period by selecting a sales tax settlement period and clicking Posted
sales tax. This provides an overview of each sales tax transaction,
which is posted in Microsoft Dynamics AX with a sales tax code.
Alternatively, click Sales tax per interval to view posted sales tax
transactions for a specific interval.
Use settlement periods to create and manage the periods the company uses to
report sales tax.
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Scenario
Ken, the Controller for Contoso, wants April, the accounts payable coordinator,
to pay Contoso's Alabama sales tax liability quarterly. The sales tax authorities
expect settlement 15 days after the close of the quarter. The sales tax settlement
period and deadlines are laid out in the following table:
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.
NOTE: The labs in this chapter must be completed in order as they are
dependent on the previous lab.
Challenge Yourself!
Set up the required sales tax settlement for Alabama.
Step by Step
Set up the Tax Settlement:
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Chapter 5: Sales Tax Setup
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The sales tax value is very important because no tax is calculated without it.
You can define the sales tax rate for the following:
1. Click General ledger, click Setup, click Sales tax, then click Sales
tax codes
2. Click the New button to create a line for the new sales tax code.
3. Enter a unique identifier for the sales tax code in the Sales tax code
field. This is the basis for calculation of tax, purchase duty, and
packing duty throughout the system.
4. Enter a meaningful name for the new sales tax code in the Name
field. This describes the function of the code and appears on reports
and throughout the system.
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Chapter 5: Sales Tax Setup
NOTE: If a company operates in the United States, set up sales tax jurisdictions
in the Sales tax jurisdiction list.
1. Click 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. If the original transaction is in another currency,
the tax converts automatically
2. Select the period and the sales tax authority used to calculate the
sales tax code in the Settlement period list.
3. Select the ledger posting group for a sales tax code in the Ledger
posting group list. The posting group contains information about
which accounts to use when the sales tax amounts are automatically
posted in the General Ledger. You can create the posting groups in
the Ledger posting groups form.
4. Select whether a user-defined code or the sales tax rate should print
with the sales tax specifications in invoice documents by making a
selection in the Print field on the General tab.
5. Define an identifier that specifies the sales tax code on printed
invoices in the Print code field, but only if Print code is selected in
the Print list. The sales tax code identifier is an alphanumeric string
that may include special characters.
6. Enter a Packing duty Sort code to help identify the packing duty.
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NOTE: For the transfer to occur, set up the general ledger to allow the posting
of conditional sales taxes. In the General ledger parameters form, select the
Conditional sales tax check box.
1. Click General ledger, click Setup, click Sales tax, click Sales tax
codes, then click the Calculation FastTab.
2. Select from the following options in the Origin list:
o Percentage of net amount - percentage of purchase or sale,
excluding any other taxes.
o Percentage of gross amount - percentage of purchase or sale,
including any other taxes. Sales tax calculates as a percentage of
the purchase or sale amount. This includes all other taxes or
duties.
o Percentage of sales tax - percentage of another tax. The tax
code that this calculation is based on must exist in the system.
On the Calculation tab, set up the specific sales tax code that you
based the current sales tax code on, in the Sales on sales tax
field.
o Amount per unit - indicate the unit on which the sales tax will
be calculated in the Unit field. If the transaction is in another
unit, it converts automatically based on Unit conversion in
Inventory.
o Calculated percentage - 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).
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Chapter 5: Sales Tax Setup
3. On the Calculation tab in the Unit list, select the unit to use when
taxes are calculated. If the transaction is expressed in another unit, it
converts automatically according to the Unit conversion.
NOTE: If the basis for tax is the number of units, this Unit field is mandatory.
1. Click General ledger, click Setup, click Sales tax, click Sales tax
codes, then click the Calculation tab.
2. Enter the lowest absolute value of a calculated tax on the
Calculation tab in the Round-off field. For example, if taxes should
round off to a unit that is 1/100 of the currency of the tax, enter the
value as a decimal (0.01). The Rounding form field indicates the
kind of rounding to use. Refer to the following table for rounding on
the amount 98,765.435 USD with different rounding values set up.
NOTE: There is no requirement that the value be less than 1. If the value must
round to the nearest 10, enter 10.00 in the field.
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You can only select this check box when the Amount per unit option is selected
in the Origin field.
When you convert a unit of measure, the unit that it is converted to depends on
whether or not this field is selected.
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.
For example, you could calculate a duty and a sales tax on the same transaction,
and add the duty amount to the net amount before the sales tax is calculated.
Example:
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Chapter 5: Sales Tax Setup
1. Click General ledger, click Setup, click Sales tax, then click Sales
tax codes
2. Click the Values button on the action bar. Enter the
Percentage/Amount in the Values form. Enter Values to set up the
sales tax rate. Also refer to the procedure on how to create sales tax
codes intervals. Close the Values form.
1. Click General ledger, click Setup, click Sales tax, click Sales tax
codes, then click the Reports Setup FastTab or click the Report
setup- credit note FastTab.
2. Insert the Reporting code numbers to facilitate reporting on the
Report setup and Report setup - credit note tab pages. Frequently
the tax authorities have special forms with numbered cells for
reporting of taxes. For example, in the Taxable sales list, you can
select the number of the field in the tax report that contains taxable
sales. A series of forms exists within Microsoft Dynamics AX,
which contains numbered cells that you can report to various
authorities. The sales tax code is included in these reports in the cell
indicated in this field.
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NOTE: In the Parameters form (click General ledger, click Setup, click General
ledger parameters, then click the Sales tax link in the navigation pane), select
the Calculation date type to determine the date that sales tax calculates. In the
Method of calculation list, select whether the sales tax should calculate for each
line or the total amount.
Scenario:
Setup 1 Setup 2
Rate Formula Calculation Formula Calculation
Duty 1 10%
Duty 2 20%
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Chapter 5: Sales Tax Setup
Setup 1 Setup 2
Gross
Amount
Sales Tax 25%
Calculation
Duty + Sales
Tax
Total Sale
Setup 1 Setup 2
Rate Formula Calculation Formula Calculation
Duty 1 10% $10 * 10% $1.00 $10 * $1.00
10%
Duty 2 20% $10 * 20% $2.00 ($10+1)* $2.20
20%
Gross $10+1+2 $13.00 $10+1+2 $13.20
Amount .20
Sales Tax 25% $13 * 25% $ 3.25 $13.20 * $ 3.30
Calculation 25%
Duty + $1+2+3.25 $ 6.25 $1+2.20 $ 6.50
Sales Tax +3.30
Total Sale $10 + 6.25 $16.25 $10 + $16.50
6.50
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Sales taxes lower than the minimum limit amount are not recorded, and sales
taxes over the upper limit amount are set to the upper limit amount automatically.
You can attach the limits to specific dates. The sales tax code defines the limits.
Changes to minimum and upper limits do not affect sales tax that is already
updated and posted.
Click General ledger, click Setup, click Sales tax, click Sales tax codes, then
click the Limits OR click General ledger, then click Setup, then click Sales tax,
then click Sales tax codes, then click the Values button.
1. Enter the first date the tax limits apply in the From date field.
NOTE: The previous limits are visible because they are not overwritten when
users make changes.
2. Enter the last date the tax limits apply in the To date field.
3. With From date and To date fields, indicate a period that the
calculated tax applies to. The posting date determines when the tax
falls outside the given period.
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If you have made changes to the limits, 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. Extend the old period by changing the date in the To date field. You
can change the limits taking effect at a later date.
1. Enter the lower sales tax limit in the Minimum sales tax field. If the
tax is lower than this minimum amount, it is reduced to zero
automatically. The amount in this field must be the same currency as
the currency specified in the sales tax code.
2. Enter the upper sales tax limit in the Maximum sales tax field. If the
tax is more than the amount indicated, it is adjusted automatically to
match this amount. The amount in this field must be the same
currency as the currency specified in the sales tax code.
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Perform the following steps to set up the field in the Values form:
1. In the Values form, specify a sales tax rate for the different intervals.
2. In the Value field, define the tax percentage, or amount for each unit.
If the basis for the calculation of tax is an amount, the entry in the
Value field on the Overview tab of the Values form is the
percentage value used in the calculation.
3. If the basis is several units, such as Purchase duty or Packing duty,
the entry in the Value field on the Overview tab of the Values form
is the amount for each unit used in the calculation. You can define
units by using the Unit field found on the Calculation tab on the
Sales tax codes form.
For a sales tax code, Limits define the tax to calculate, based upon the effective
interval dates and the minimum and maximum sales tax. These minimum and
maximum sales tax limits are the minimum and maximum sales tax that will be
calculated on the sale, after all tax calculations are performed.
1. In the Sales tax code form on the Calculation FastTab, select the
origin for the sales tax limits in the Marginal base list.
2. Select from the following options:
o Net amount per line - value of the line, excluding any other
taxes.
o Net amount per unit - value of the unit, excluding any other
taxes. This can involve the unit price specified by using a unit in
the Unit field.
o Net amount of invoice balance - the total value for the invoice,
excluding any other taxes.
o Gross amount per line - value of the line. This includes any
other taxes. You can include only one tax code with this or the
next property in the individual calculation.
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Chapter 5: Sales Tax Setup
o Gross amount per unit - value of the unit. This includes any
other taxes. You can include only one tax code with this or the
previous property in the individual calculation.
o Invoice total incl. other sales tax amounts - The total value for
the invoice. This includes any other taxes. You can include only
one tax code with this property in the individual calculation.
1. Select the origin for the sales tax limits in the Method of
calculation, in the Sales tax code form on the Calculation tab.
2. Select from the following options:
o Whole amount - the sales tax calculates for the whole amount,
which the tax rate for the interval that includes the transaction
determines.
o Interval - the base is divided into intervals. The part within a
given interval is calculated automatically based on the tax rate
for that interval.
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.
Click the Inquiries button > Posted sales tax to display posted sales tax
transactions for a sales tax code and an itemization of each tax. Use this function
for inquiries and error detection. In the Sales tax transactions form, click
Voucher to view related ledger transactions.
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Scenario
Ken, the Controller for Contoso, has received a notification from the State of
Florida that as of 07/01/2011, a tiered tax is due on video recorder sales. Ken
asks for your assistance in setting up tax codes that comply with the new
structure. The notice specifies the following rates:
NOTE: The labs in this chapter must be completed in order as they are
dependent on the previous lab.
Challenge Yourself!
1. Use sales tax code intervals to structure the AV_FLST tax rate in
Microsoft Dynamics AX for the new rates.
2. Microsoft Dynamics AX will require an 'ending' date for the tax.
Plan to enter an artificial date of 12/31/2020.
1. Before you add a new line to the Values form, you must enter dates
on the existing line. Suggested dates are 1/01/2006 - 6/30/2011.
2. Add the lines to the Values form. All of them will be assigned the
same date range assigned.
Step by Step
Edit the State of Florida Tax code record:
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In most countries, different tax rules apply when you trade with domestic and
foreign customers. The tax rules for foreign trade frequently are split up based on
bilateral and multilateral trade agreements. Therefore, you must create tax groups
depending on the taxes that may apply for a certain group of customers or
vendors. 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, and the setup of those Sales tax groups.
The two groups of customers (domestic and foreign) do not have identical tax
needs. Therefore, 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, attach the appropriate sales tax group to:
• Customers
• Vendors
• Ledger accounts
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Chapter 5: Sales Tax Setup
1. Click General ledger, click Setup, click Sales tax, click Sales tax
groups, then click the New button.
2. Enter a unique name for the sales tax group in the Sales tax group
field.
3. Enter a name that identifies the sales tax group in the Description
field.
1. Click General ledger, click Setup, click Sales tax, click Sales tax
groups, then click the General FastTab.
2. Enter a form of identification to identify a sales tax group based on
specific criteria, such as country, state, or county, in the
Country/State and County/Purpose fields. This provides another
method to identify the group.
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3. Select the Reverse sales tax on cash discount check box to reverse
sales tax on a cash discount. States in the United States have
different requirements, so you must set up this information on the
sales tax group. When you create a sales tax group, the selection in
the Reverse sales tax on cash discount field in General ledger
parameters defaults to the field.
4. Select Sales tax setup section, select a code in the Sales tax group
setup list. If the company is located in a country with sales tax
jurisdiction, select the Sales tax jurisdictions value.
NOTE: If the Sales tax jurisdictions value is selected in the Sales tax group
setup list, a new tab called Jurisdictions setup appears and you cannot add sales
tax codes to the Sales tax group.
The Rounding by field controls the rounding principle that applies to the taxes
of the sales tax group. This field is available if your company configuration
includes sales tax jurisdictions.
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 round-
off. You can see the value in the Round-off field on the Calculation
tab of the Sales tax codes form.
• Sales tax code combinations - rounding is according to the sales tax
code combination that is attached to each invoice line.
• Sales tax codes – the sales taxes are shown by sales tax code.
• Sales tax groups – the sales taxes are shown by sales tax group.
• No details – no sales tax details are shown on the invoice. 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.
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Chapter 5: Sales Tax Setup
Additionally, you can attach a default sales tax group to each ledger account for
purchases or sales excluding a customer or vendor are posted, for example, the
ledger account for office equipment. The default sales tax group appears
automatically on transactions for the customer or vendor; however, you can
change the sales tax group on individual transactions before you post
transactions. 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.
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General ledger, Parameters form – specify the default setting of lowest priority
regarding the inclusion of sales tax in journal amounts. 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.
General ledger, Journal names form – specify a default setting that overrides
the default setting on the Parameters form. 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, unless you have
entered a setting on the journal itself.
If you select the Amount incl. sales tax field, you must enter gross amounts in
journals. Sales taxes are calculated on the basis of the gross amount and posted to
the sales tax account. The net amount is posted to the ledger account entered in
the journal.
If you do not select the Amount incl. sales tax field, you must enter net amounts
in journals. The net amount is posted to the ledger account entered in the journal.
The sales taxes are calculated on the basis of the net amount and are posted
automatically.
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Chapter 5: Sales Tax Setup
NOTE: This information is in Item sales tax group. The association between
sales tax codes and the item sales tax group is in the Item sales tax group form,
on the Setup tab.
1. Click General ledger, click Setup, click Sales tax, then click Item
sales tax groups.
2. Enter a unique name for the item sales tax group in the Item sales
tax group field, and a description in the Description field. This
information appears on reports and in other areas throughout
Microsoft Dynamics.
3. Select the sales tax code for an item sales tax group on the Setup
tab. For a sales tax code to be valid, you must select it for the sales
tax group and the item sales tax group. The sales tax codes
calculated are determined automatically when you post.
4. 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.
o Item – the sales tax line amount is included in the Items value
column.
o Service – the sales tax line amount is included in the Services
value column.
o Investment – the sales tax line amount is included in the
Investment value column. This column is relevant only for
Belgium.
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3. Select a value in the Item sales tax group lookup field in the
Purchase tax section. This value is the default item sales tax group
for the selected item group when you enter it on a purchase order
line.
4. Select a value in the Item sales tax group lookup field in the Sales
tax section. This value is the default item sales tax group for the
selected item group when you enter it on a sales purchase line.
• Set up a default item sales tax group for all ledger accounts
• Set up default item sales tax groups for particular ledger accounts, if
necessary
You can change any default item sales tax group that appears automatically on a
journal line as necessary before the transaction posts.
NOTE: In sales journals, purchase journals, and other journals where you enter
an item number, 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, unless a specific item sales tax group is attached to the ledger
account that you enter in the line.
Follow these steps to set up a default item sales tax group for a particular ledger
account:
1. Click General ledger, click Chart of accounts and select the ledger
account.
2. Select the default item sales tax group in the Item sales tax group
list on the Setup tab.
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Chapter 5: Sales Tax Setup
A sales tax jurisdiction is a grouping of sales tax codes for a particular settlement
period (including the sales tax authority). Each jurisdiction is assigned one or
more sales tax codes and has only one tax authority. Additionally, 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. If
a state has many jurisdictions and a complex tax code structure, using
jurisdictions makes it easier for a company to pay correct tax amounts to the
authority.
1. Make sure that the configuration key is turned on for sales tax
jurisdictions (see Licensing configuration help)
2. Click General ledger, click Setup, click Sales tax, then click Sales
tax jurisdictions.
3. Click New button on the toolbar to create a new sales tax jurisdiction
record.
4. In the Sales tax jurisdiction code text box, enter a unique identifier
for a sales tax jurisdiction.
5. In the Name text box, enter the name of the jurisdiction.
6. In the Settlement period and the Ledger posting group lookup
fields, select values.
7. In the Currency lookup field, select the currency of the sales tax
jurisdiction.
8. Click Sales tax codes. In the Sales tax codes form, create sales tax
codes for the sales taxes that the sales tax authority collects in the
sales tax jurisdiction.
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NOTE: Click General ledger > Reports > Base data > Sales tax codes. In the
line for the sales tax code, in the Sales tax jurisdiction code lookup field, select a
jurisdiction.
1. Click General ledger, click Setup, click Sales tax, and click Sales
tax groups.
2. In the Sales tax group setup drop-down list, select Sales tax
jurisdictions.
3. In the Rounding by drop-down list, select the rounding convention
for the sales tax group.
4. On the Jurisdiction setup tab, add the sales tax jurisdictions that
apply to the sales tax group, and enter information about tax exempt
status and use tax if applicable. The sales tax codes that are attached
to a selected sales tax jurisdiction appear automatically on the Setup
tab.
5. If necessary, you can change the sales tax codes of the jurisdiction in
the Sales tax jurisdictions form.
6. In the Print drop-down list, select the way you want sales taxes
printed on the invoice.
7. Close the Sales tax groups form.
When a journal line or purchase or sales order line is created, 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, and sales taxes are calculated for
the transaction.
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Chapter 5: Sales Tax Setup
Scenario
Ken, the Controller for Contoso, has decided to do business with a new vendor,
Blue Yonder Airlines, located in Little Rock, Arkansas where business has not
previously been conducted. April, the accounts payable coordinator, receives an
invoice for 50,000 USD from Blue Yonder Airlines, and comes to you for help
because the necessary setups are to post this invoice are not in Microsoft
Dynamics AX.
Field Value
Name Blue Yonder Airlines
City Little Rock
State AR
ZIP Code/Postal Code 72205
Group 10
Currency USD
Terms of Payment N030
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NOTE: The labs in this chapter must be completed in order as they are
dependent on the previous lab.
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.S. Report layout. Plan to
round taxes in a typical manner to the nearest penny. Any gain or loss that occurs
when you round will post to account 618160.
• City of Little Rock: three percent, the maximum tax limit that can be
paid is 1000 USD in sales tax
• State of Arkansas: two percent
Challenge Yourself!
1. Setup two ledger posting groups, by using ARST for Arkansas and
LRAST for Little Rock.
2. Setup a sales tax group by using ARLRA as the group name.
3. Setup a sales tax authority by using ARA as the authority name.
4. Enter a sales tax settlement period (AR) to use for each code. The
term of payment is 15 days. The settlement period is an interval of
one month. Then set up three new periods starting with the beginning
of the current month.
5. Plan to set up two sales tax codes, one for each authority, by using
the codes ALL_LRCITY and ALL_ARST. Use the standard ledger
posting group for each tax code.
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Chapter 5: Sales Tax Setup
7. Add the two new sales tax codes to the ALL item tax group.
8. After you complete the sales tax setup, record the invoice in an
accounts payable Invoice journal. Make sure when creating the
journal that you have deselected the Amount incl. sales tax field
found on the Setup tab of the journal. Set your session date to
6/30/2011.
9. Review the tax calculation in the journal.
Note that Sales tax jurisdictions will not be used in this lab.
Review the tax calculation by clicking Inquiry and then clicking Sales tax
totals. It is not necessary to post the invoice.
Step by Step
Set up Blue Yonder Airlines as a vendor:
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Set up accounts in the Chart of accounts account for sales tax payable:
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Set up sales tax codes and sales tax code intervals for Arkansas and Little Rock:
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Scenario
Ken is the Controller for Contoso. He wants to include sales taxes in journal
amounts to make it easier to create journal entries. Ken requests your assistance.
For example, suppose the sales tax is ten percent and the total invoice amount is
110.00 USD. If it is specified that the journal amount includes sales tax, the net
amount is 100.00 USD (110.00/1.10), and the sales tax amount is 10.00 USD.
NOTE: The labs in this chapter must be completed in order as they are
dependent on the previous lab.
Challenge Yourself!
Help Ken find the two forms that can specify whether the journal amounts
include sales tax.
Step by Step
Follow these steps:
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Chapter 5: Sales Tax Setup
Click General ledger, click Periodic, click Sales tax payment, then click Sales
tax payment.
1. In the Settlement period list, select the settlement period for which
the sales tax payment is being calculated.
2. In the From date field, enter a date within the sales tax settlement
period to be calculated.
3. In the Transactions date field, enter the posting for transactions
which are posted for the Sales tax payment.
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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:
HINT: To report the sales tax payment correctly to the sales tax authority, select
the correct report format in the Report Layout list on the Sales Tax Authority
form.
HINT: Click General ledger > Reports > Transactions > Sales tax list to print a
report about sales tax postings that you have not yet updated.
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Chapter 5: Sales Tax Setup
Perform the following steps to change the calculated sales taxes in a journal line,
purchase order line, or sales order line:
1. Select the transaction line that needs the sales tax revision.
2. Click the Sales tax button to open the Temporary sales tax
transactions form.
2. Click File and then Save to save the record or click the Apply
button.
3. Click the Reset actuals button to reset the adjustment.
4. Click the Close button to close the form.
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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. Then select the appropriate ledger account on the Setup tab in the
Sales tax prepayments list.
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.
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Chapter 5: Sales Tax Setup
On July 10 the company reports taxes for June. The EUR 2,500 is not included in
the sales tax payment because the invoice is unpaid.
On July 15 the customer pays half of its balance due, which is EUR 5,000 plus
EUR 1,250 in sales tax.
On August 10 the company reports taxes for July. The EUR 1,250 is included in
the sales tax payment because the customer paid only part of the invoice. When
the rest of the invoice is paid, the rest of the sales tax is reported. In some
countries, the sales tax authorities require companies to report tax for the full
invoice amount, regardless of whether the full amount is paid.
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2. When you create the sales tax code for the conditional sales tax,
select the General section.
3. Select the sales tax code used for real sales taxes in the Payment
sales tax code list. The conditional sales tax then transfers to the
selected sales tax code.
NOTE: The sales tax rate, which is set up in the Values form, must be the same
for both.
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Chapter 5: Sales Tax Setup
The sales tax exempt description is saved on sales tax transactions for history and
reprinting.
• The sales tax group and sales tax rate is recorded automatically on
the transaction.
• The actual invoice groups the sales tax transactions according to
sales tax rates when the sales tax is not exempted.
If the invoice has sales tax exemptions, it groups the transactions according to
sales tax exempt descriptions.
1. Click General ledger, click Setup, click Sales tax, then click Sales
tax exempt codes.
2. Click the New button to create a new sales tax exempt code and then
enter the Exempt code and the Description. Close the Sales tax
exempt code form.
3. Open General ledger, click Setup, click Sales tax, then click Sales
tax group. On the Setup tab, select the sales tax code that you want
to use, select the Exempt check box and select an exempt code in the
Exempt code list. The description of the sales tax exemption prints
on the same line as the exempt code. Close the form.
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4. Open General ledger, click Setup, click Sales tax, then click Sales
tax codes. 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.
5. 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. The print code and the sales tax rate do not print on the
sales tax specification line because several sales tax codes with
different sales tax rates may be involved.
NOTE: You also can print sales tax exempt rates on interest notes and collection
letters. 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.
NOTE: You can set up tax exempt numbers for customers and vendors in the
Customers or Vendors form on the Setup tab.
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Chapter 5: Sales Tax Setup
Scenario
Ken is the Controller of Contoso, a company that has decided to specify sales tax
exemptions on invoices for their European subsidiary. Ken asks you to set this
up. Before implementing the EU sales tax directive, 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.
Challenge Yourself!
Set up the sales tax system so that, when you use tax codes that are marked
exempt in the tax system, the Exempt code prints on invoices.
Create a new sales tax code named Exempt. Use the Settlement periods, Ledger
posting groups, and Sales tax groups already set up in the data for California.
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Step by Step
Follow these steps:
1. Click General ledger, click Setup, click Sales tax, then click Sales
tax exempt codes.
2. 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. Close the Sales tax exempt code form.
3. On the Navigation Pane, click General ledger, click Setup, click
Sales tax, then click Sales tax codes.
4. Click the New button to add a line.
5. In the Sales tax code field, enter Exempt.
6. In the Name field, enter Sales tax exemption.
7. In the Settlement Period field, use the arrow to select CA.
8. In the Ledger posting group field, use the arrow to select CAST.
9. In the Print field, click the arrow to select Print code. This will print
the sales tax exemption description.
10. Close the Sales tax code form.
11. On the Navigation Pane, click General ledger, click Setup, click
Sales tax, then click Sales tax groups.
12. Select the 'CA' sales tax group in the Sales tax group form.
13. In the Setup section, delete all the sales tax codes by highlighting the
rows and then by using the Remove button.
14. Click Yes to confirm deletion.
15. Press the Add button to insert a line on the Setup tab.
16. In the Sales tax code list, use the arrow to select the 'Exempt' sales
tax code that you just created.
17. Click to select the Exempt check box.
18. Click the Exempt code field, and select Subsidiary.
19. Close the form.
20. On the Navigation Pane, click General ledger, then click Setup,
then click Sales tax, then click Item sales tax groups.
21. Click the ALL line in the left hand navigation pane within the form.
22. Click the Setup tab.
23. Click the Add button to add a line.
24. In the Sales tax code field, click the arrow to select Exempt.
25. Close the form.
26. On the Navigation Pane, click Sales and Marketing, click
Common, click Sales orders, then click All sales orders.
27. Click the New - Sales Order button on the tool bar to add a new
order.
28. In the Customer account field, use the arrow to select customer
9100.
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The net amount (= invoice amount reduced by the withholding tax) is paid to the
supplier. The tax withheld posts to a ledger account for withholding tax, and
periodically is paid to the authorities. The buying company is legally responsible
for submitting a report to the tax authorities and to the supplier.
Withholding tax:
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Follow these steps to set up withholding tax in Accounts Payable and General
Ledger:
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8. Optional: Click the Withholding tax tab for each selected line to
change or delete the calculated withholding tax. You can also create
lines and enter the information.
9. Close the Open transaction editing form. The payment amount on the
journal line is reduced by the withholding tax amount.
10. Validate and post the payment journal by clicking the Validate
button on the Action bar.
In the Payment journal form, all transactions are considered as payments, and the
withholding tax setup is always handled as described in the steps earlier in this
section.
In the General journal form, withholding tax is calculated automatically when the
following conditions are true:
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Chapter 5: Sales Tax Setup
Summary
The requirements for tax calculation and tax reporting differ greatly for different
countries. Therefore the tax module of a true international ERP system must be
comprehensive.
In Microsoft Dynamics AX, the tax module offers many different options for tax
calculation, posting, and reporting. 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, special EU statistic reports such as Intrastate and EU sales list
are also available.
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1. Each ledger account can use several tax codes. True or False?
( ) True
( ) False
2. Changes that you make to the ledger account numbers in ledger posting
groups only affect ____.
( ) Posted transactions
( ) Deleted transactions
( ) Not yet posted transactions
( ) Posted transactions from previous months
3. Before creating ledger posting groups, you must create a(n) _________ in the
General Ledger to link to ledger posting group.
( ) Tax Group
( ) Sales Tax
( ) Account
( ) Group
6. You use settlement periods to create and manage the periods the company
uses to report sales tax.
( ) True
( ) False
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7. Sales tax settlement periods specify at what intervals the company reports
taxes.
( ) True
( ) False
8. You use settlement periods to create and manage the periods the company
uses to report sales tax.
( ) True
( ) False
9. Sales tax settlement periods specify at what intervals the company reports
taxes.
( ) True
( ) False
10. A sales tax code includes information about which of the following? Select
all that apply. (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 taxes over the minimum limit amount automatically are discontinued
and sales taxes under the upper limit amount are set to the upper limit
amount.
( ) True
( ) False
12. Specify the origin for the sales tax limits in the Marginal base list. Match the
options to the answers.
_____ 1. Net amount for each a. Value of the line, excluding any other
line taxes
_____ 2. Net amount for each b. The total value for the invoice,
unit including any other taxes
_____ 3. Net amount of invoice c. Value of the line, including any other
balance taxes
_____ 4. Gross amount for d. Value of the unit, including any other
each line taxes
_____ 5. Gross amount for e. The total value for the invoice,
each unit excluding any other taxes
_____ 6. Invoice total incl. f. Value of the unit, excluding any other
other sales tax amounts taxes
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13. When the sales tax groups are created, attach the sales tax group to ______.
(Select all that apply)
( ) Company
( ) Customers
( ) Ledger accounts
( ) Vendors
14. You cannot change any default item sales tax group that appears
automatically on a journal line before you post the transaction.
( ) True
( ) False
15. 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
16. If the invoice has sales tax exemptions, does it group the transactions
according to sales code descriptions?
( ) Yes
( ) No
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1.
2.
3.
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Solutions
Test Your Knowledge
1. Each ledger account can use several tax codes. True or False?
(•) True
( ) False
2. Changes that you make to the ledger account numbers in ledger posting
groups only affect ____.
( ) Posted transactions
( ) Deleted transactions
(•) Not yet posted transactions
( ) Posted transactions from previous months
3. Before creating ledger posting groups, you must create a(n) _________ in the
General Ledger to link to ledger posting group.
( ) Tax Group
( ) Sales Tax
(•) Account
( ) Group
6. You use settlement periods to create and manage the periods the company
uses to report sales tax.
(•) True
( ) False
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7. Sales tax settlement periods specify at what intervals the company reports
taxes.
(•) True
( ) False
8. A sales tax code includes information about which of the following? Select
all that apply. (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. 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.
( ) True
(•) False
10. Specify the origin for the sales tax limits in the Marginal base list. Match the
options to the answers.
a 1. Net amount for each a. Value of the line, excluding any other
line taxes
f 2. Net amount for each b. The total value for the invoice,
unit including any other taxes
e 3. Net amount of invoice c. Value of the line, including any other
balance taxes
c 4. Gross amount for each d. Value of the unit, including any other
line taxes
d 5. Gross amount for each e. The total value for the invoice,
unit excluding any other taxes
b 6. Invoice total incl. other f. Value of the unit, excluding any other
sales tax amounts taxes
11. When the sales tax groups are created, attach the sales tax group to ______.
(Select all that apply)
( ) Company
(√) Customers
(√) Ledger accounts
(√) Vendors
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12. You cannot change any default item sales tax group that appears
automatically on a journal line before you post the transaction.
( ) True
(•) False
13. 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. If the invoice has sales tax exemptions, does it group the transactions
according to sales code descriptions?
( ) Yes
(•) No
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Chapter 6: Financial Features
Introduction
This content describes features that you can use across the various financial
modules in Microsoft Dynamics AX®.
This content describes how to set up reason codes, which allow you analyze
transaction history by specific reason.
This content also describes how to use the Fill utility to update multiple records,
similar to find and replace functionality.
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• General Ledger
• Accounts Payable
• Accounts Receivable
• Cash and Bank Management
Scenario
Cassie, the Accountant at Contoso, is responsible for managing the company's
fixed assets. Contoso's auditors have required explanations for all new assets
purchased, in addition to certain changes to existing assets. Cassie has decided
that using reason codes will satisfy the auditors.
Cassie also develops a list of standard fixed asset reason codes and descriptions.
These codes can be used with asset transactions. For example, one of Contoso's
vehicles (vehicle number 17) was recently in an accident. Because of the accident
damage, Cassie must adjust downward the asset's value, service life, and
expected scrap value. She creates a reason code titled “V-ACC-SC,” with a
description of “Vehicle Accident - Single Car” for transactions related to this
accident.
Later, Cassie records the write-down adjustment to the vehicle and changes the
other asset values. Because of the selected parameter settings, she uses the “V-
ACC-SC” reason code with the asset journals and the other forms that require
reason codes.
When the auditors next review the accounting records, 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.
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You also can specify whether reason codes are required for a module. You
specify reason code requirements in the parameters form for most modules.
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, but in each module, reason codes are assigned only
to the account type that relates to that module. For example, if the Financial
reasons form opens from Accounts Payable, the Account type is set to Vendor
automatically, and the reason codes created can only be used with vendor
transactions.
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NOTE: You must select the reason codes as available for all transaction types
within the journal line to be posted. This must include the ledger offset account.
Reason Comments
Optional reason comments can be entered on the respective Financial reasons
form. Although you can set up default reason comments for each reason code, no
setup is required.
If you select a reason code for a transaction, the default comment that is set up in
the Financial reasons form displays in the Reason comment field. You can
change the default reason comment. If you enter a reason comment first and then
select a reason code, the typed reason comment is not replaced.
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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. This
utility assists administrators or users during implementations or when business
process changes affect multiple records.
Scenario
Contoso has decided to change its payment terms. High-priority customers will
now receive a longer discount period. Instead of updating each account
individually, Phyllis, the Accounting Manager, will use the Fill utility to update
the discount terms of all high priority customers in one step.
This feature is available only if the Fill utility License configuration is enabled.
1. Open the form where the field that you want to update is displayed.
2. Right-click the field that you want to update and select Record
information from the menu.
3. In the Record information form, click the Fill utility button.
4. Specify the query criteria to find the records to update.
5. Click OK.
6. Verify that the list of records to be updated is correct.
7. Click OK.
8. Select the value to change the field to for the list of records.
9. Click OK.
CAUTION: Be aware that changing numerous records at the same time can be
time-consuming.
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The following tables provide descriptions for the fields in this form.
Field Description
Name of Displays the name of the table that was modified for the
table selected Fill Utility Log record.
Modified Displays the name of the field that was modified for the
field selected Fill Utility Log record.
New value Displays the new value for the field that was modified for
the selected Fill Utility Log record.
Created by Displays the user name of the person who made the change,
which is indicated in the selected Fill Utility Log record.
Created Displays the date and time that the change occurred.
date and
time
Query Displays the query statement that was used to update the
statement records for the selected Fill Utility record.
Summary
The Financial Features section described the setup of reason codes and the use of
the Fill utility.
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2. Which of the following statements correctly describe the Fill utility? (Select
all that apply)
( ) The Fill utility enables authorized users to mass-update records.
( ) 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.
( ) The system automatically makes a back up before it uses the Fill
utility.
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1.
2.
3.
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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.
2. Which of the following statements correctly describe the Fill utility? (Select
all that apply)
(√) The Fill utility enables authorized users to mass-update records.
(√) 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.
( ) The system automatically makes a back up before it uses the Fill
utility.
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Chapter 7: Cash and Bank Management Setup
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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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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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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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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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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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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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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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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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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Chapter 8: Cash And Bank Management Daily Procedures
• Create checks.
• Delete checks.
• Create a bank deposit entry.
• Void checks.
• Create a refund that prints a check.
• Use bank remittances.
• Reverse a posted check payment.
• Reconcile bank statements.
Introduction
Within the Cash and Bank Management module, users manage the financial
transactions between the company and its bank accounts. These transactions
include the following:
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Scenario
At Contoso Annie is the Bookkeeper that manages the creation, deletion, and
voiding of checks and electronic payments. Annie creates check refunds for
customers when required and processes payments to vendors. Also, when
Contoso receives a bank statement, Annie reconciles the statement with the
transactions in the application.
Create Checks
In Microsoft Dynamics AX, the Check form provides access to view existing
check transactions and to create new checks.
1. Click Cash and bank management, click Common, and then click
Bank accounts.
2. Double-click on the Bank account from which the checks will be
written.
3. On the Action Pane, click the Setup tab.
4. Click the Check numbers button. This option is only available if
the Check number method is set to Fixed in the Check layout
form. If the method is set to Free, the check numbers option is not
available. To verify, click the Check button on the Action Pane.
5. In the Creation of check form, the selected bank account is
displayed in the Bank account field.
6. In the From field, enter the check number for the first check to be
created.
7. In the Quantity field, enter the number of checks to be created.
8. Click OK.
EXAMPLE: To create a total number of 1250 checks starting with check number
2000, in the From field, type 2000, and in the Quantity field, type 1250. This will
create checks numbered 2000 to 3249.
NOTE: As soon as created checks are available, checks generate through the
Accounts Payable payment journal. See the Accounts Payable help for more
information on this process.
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Delete a Check
After users create a check in Microsoft Dynamics AX, they can delete the check
if it has not been used. Checks created but not used have the status of Created in
the Status field.
1. Click Cash and bank management, click Common, and then click
Checks.
2. Select the bank account from which to delete a check.
3. Click the Delete checks button.
4. In the From field, enter the number of the first check to delete.
5. In the To field, enter the number of the last check to delete.
6. To verify the deletion, type Delete in the Type Delete if you want to
delete field, and then click OK.
NOTE: If you include checks that have a status other than Created in the interval
between the From and To fields, no checks are deleted and the Delete checks job
is canceled.
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Annie, the Bookkeeper at Contoso, must complete a check run that consists of 15
checks, starting with check number 101. The checks are from the EUR OPER
bank account.
After Annie created the checks, she learned that only 12 of the checks were
needed. The last 3 checks must be deleted.
Challenge Yourself!
Help Annie to create checks, and then delete the unnecessary checks.
Step by Step
Create 15 checks for the EUR OPER bank account, starting with check number
101.
1. Click Cash and bank management, click Common, and then click
Bank accounts.
2. Double-click on the EUR OPER Bank account.
3. On the Action Pane, click the Setup tab.
4. Click the Check numbers button.
5. In the From field, type 101.
6. In the Quantity field, type 15.
7. Click OK.
8. Click the Close button in the Infolog.
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1. Click Cash and bank management, click Common, and then click
Checks.
2. Click on the EUR OPER Bank account.
3. Click the Delete checks button.
4. In the From field, type 113.
5. In the To field, type 115.
6. Type Delete in the Type Delete if you want to delete field, and then
click OK.
7. Click the Close button in the Infolog.
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Deposit Slips
A deposit slip is a document used to deposit checks, credit card notes, and cash
into a bank account. Use the Deposit slip form to view and manage deposit slips
for payments into bank accounts.
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11. In the Currency field, enter the currency code of the bank account in
which to make the deposit.
12. Select the Method of payment and Payment specification.
13. In the Payment reference field, enter a reference for the payment if
applicable.
14. On the General, Payment, Payment Fee, and Bank tabs, enter any
applicable information.
15. Click the Post button, and then click Post.
16. Close the Infolog form.
17. Click Functions, and then click Deposit slip.
18. In the dialog box, enter the date in the Bank statement date field,
19. Click OK to view the deposit slip.
NOTE: The system may require a Reason code if the Require reasons for
deposit slip payment cancellations check box is selected on the General FastTab
of the Cash and bank parameters form.
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During review, you can either approve and post the journal, or reject the
cancellation. Perform the following steps to review cancellations.
1. Click Cash and bank management, click Journals, and then click
Deposit slip payment cancellations.
2. Select the cancellation journal to review and then click the Lines
button.
3. Review the cancellation and select one of the following approval
options:
o To approve and post the cancellation journal, click the Post
button, and then click Post or Post and transfer.
o To reject the cancellation, click the Delete button on the toolbar.
1. Click Cash and bank management, click Common, and then click
Deposit slips.
2. Select the line for the canceled deposit slip in the Deposit slip form,
and then click the General tab.
3. Verify that a check mark is in the Canceled field.
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Annie, the Bookkeeper for Contoso, must enter a deposit for Customer 2022 for
1000 USD. The deposit was made to the USA OPER bank account and the
payment reference is 1987.
Annie realizes that she entered the deposit slip in error. The payment reference
should be 1988.
Challenge Yourself!
Help Annie complete the following:
1. Select the Use a deposit slip check box in the Customer payment
journal.
2. Click the Cancel payment button from the Deposit slip form to
cancel the deposit slip.
Step by Step
Create a customer payment journal:
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1. Click Cash and bank management, click Common, and then click
Deposit slips.
2. Select the line for the canceled deposit slip in the Deposit slip form,
and then click the General tab.
3. Verify that a check mark is in the Pending Cancellation field.
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1. In the appropriate payment journal, select the lines ordered for the
printing of the checks.
For example, to void an unposted Accounts Payable payment
journal, click Accounts payable, click Journals, click Payments,
and then click Payment journal.
2. Click the Lines button and then click the Payment status button,
and then click Rejected. The application removes the check numbers
from the journal.
NOTE: This procedure can be used only if you have not posted the checks.
Refund Checks
Under certain circumstances, companies must generate payment refunds to their
customers or process refunds they received from their vendors. This usually
occurs when credit notes, overpayments, and bonuses are involved in third-party
transactions.
In Microsoft Dynamics AX users can create a check refund that prints out a
check. The refunding feature is implemented in payment journals for customers.
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NOTE: Before you create a check refund, set up a Method of payment to refund
a check to a customer if you have not done this already. For more information
about Methods of payment, review the Accounts Receivable Setup and Accounts
Payable Setup courses.
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Challenge Yourself!
Help Annie create a refund check to pay Triangle Headquarters the overpayment
amount of 396 USD.
Step by Step
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Bank Remittance
Use the Remittance form to view the remittances made to company bank
accounts.
NOTE: For each step, you can define the minimum amount of information that
the user must enter before he or she can continue to the next step. To ensure that
the bank advice is printed before posting, set a post validation for print.
6. The File creation date field displays the date that the file was
created.
NOTE: For each step, you can define the minimum amount of information that
must be filled in before continuing to the next step. To ensure that the file is
created before posting, set a post validation for file creation date.
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10. In the Remittance format field, select the remittance format for the
payment.
11. Click the Posting button, and then click Post to post the remittance.
Payment Reversal
Occasionally, you must reverse a check after you have made a payment and
posted the check. For example, the delivery company may have the check or a
member of the accounting staff may notice that an employee paid the check in
error. Microsoft Dynamics AX provides a function to reverse posted check
payments.
You might reverse a check to reissue a payment made to a vendor. You can
reverse only posted checks that have a status of Paid. Reversing differs from
deleting or voiding checks because you can delete only checks that have a status
of Created, and you can void only unposted checks.
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1. Click Cash and bank management, click Common, and then click
Checks.
2. Select the check to reverse.
3. Click Payment reversal.
4. Enter the date and select a reason for the reversal. If your
organization uses the Check reversals journal for review, you must
also select a journal name.
5. Click OK to post the reversal or send the reversal for review,
depending on which method your organization uses.
4. Close the form and then click the Delete button again to delete the
journal header.
5. Close the form.
NOTE: Deleting the journal removes the reversal from the system, but the
original check remains in the Check form. The status of the check is no longer
Pending cancellation.
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Chapter 8: Cash And Bank Management Daily Procedures
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.
1. Click Cash and bank management, click Common, and then click
Bank accounts.
2. Select the bank account for which to reconcile the bank account
statement.
3. Click the Account reconciliation button on the Action Pane and
enter information as appropriate.
4. In the Bank statement date field, enter the date from the bank
account statement.
5. In the Bank statement field, enter the number of the bank account
statement.
6. In the Currency field, verify that the application inserts the correct
currency for the selected bank account.
7. In the Ending Balance field, enter the total ending balance on the
bank account statement.
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NOTE: The Reconciled field displays the date of account reconciliation. The
system enters the date automatically when you post the transaction lines that
reconcile company bank records with the bank statement.
NOTE: You cannot change the amount of the transaction during reconciliation.
To edit the amount of a transaction during reconciliation, enter the corrected
amount in the Correction Amount field. Ensure that you enter the correction in
the currency used for the account.
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2. Click the Print button, and then click Bank reconciliation to print a
report that takes non-reconciled transactions into account and shows
transactions after the reconciliation date.
Summary
This course covers the main procedures in the Cash and Bank Management
module in Microsoft Dynamics AX. The application provides functionality to
manage check payments, as well as procedures for resolving special situations
with checks. Users can delete, refund, and void checks, in addition to generating
and issuing checks according to company specifications. In addition, because the
system records all financial transactions, companies can use the bank
reconciliation function to match internal company records of transactions against
bank statements.
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Chapter 8: Cash And Bank Management Daily Procedures
Step:
_____: Modify the method of payment to Check Refund on the negative payment
journal line.
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5. When you perform bank reconciliation, how do you exclude transactions that
are in the application but not on the bank statement from the reconciliation?
( ) Open the transaction
( ) Delete the transaction
( ) Select the Cleared check box
( ) Do not select the Cleared check box
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1.
2.
3.
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Solutions
Test Your Knowledge
1. Annie, the Bookkeeper at Contoso, must create checks numbered 2361
through 2366. What values must she enter in the From and Quantity fields to
do this?
( ) Enter 2361 in the From field and 5 in the Quantity field
( ) Enter 2366 in the From field and 5 in the Quantity field
(•) Enter 2361 in the From field and 6 in the Quantity field
( ) Enter 2366 in the From field and 6 in the Quantity field
MODEL ANSWER:
On the Deposit slip form, on the General tab, the Canceled check box is
selected.
Step:
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5. When you perform bank reconciliation, how do you exclude transactions that
are in the application but not on the bank statement from the reconciliation?
( ) Open the transaction
( ) Delete the transaction
( ) Select the Cleared check box
(•) Do not select the Cleared check box
MODEL ANSWER:
Checks that are created but not used have the status of Created in the Status
field. Checks with a Created Status can be deleted.
After printing or trying to print checks, but before posting, checks may be
voided. This may happen if checks are damaged in printing.
If payment has been made and a check has been posted, you can reverse it.
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Chapter 9: Accounts Payable Setup
Introduction
This course describes the different Accounts Payable setup options in Microsoft
Dynamics® AX. It shows setup procedures and defaults used throughout the
Accounts Payable module. This course explains topics such as payment options,
vendor setup and posting profiles.
• 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.
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Payment Schedule
Use payment schedules to pay invoices in installments. Define the following to
set up a payment schedule:
• Number of installments
• Amount of each installment
• Due date of each installment
• A set amount
• A specified number of payments in which the amount owed is
divided to create equal payments
For example, an invoice of 10,000 USD is recorded. It is paid at 2,000 USD each
month until the balance is paid. During this period the invoice is not considered
past due if the scheduled payments are made on time. This is also known as a
finance plan, or contract payments.
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Depending on the value selected in the Allocation list, different fields are
enabled on the General and Payment lines FastTabs.
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Terms of Payment
Use the Terms of payment form to define all the terms of payment used by a
company and the vendors. Use a term of payment for calculation of a due date
based on the date of the invoice.
Scenario
Contoso has a standard vendor payment term of Net 30 days. If an invoice with a
Net 30 payment term ships goods on September 15, and the invoice is dated
November 15, then payment is due December 15. With a Net 30 Days settlement,
Contoso must pay the net due within 30 days of the invoice date, according to the
settlement. After that date, if the payment is not completed, an interest charge of
a specified percent per month may be added to the invoice. Other services
charges may also apply.
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1. Click Accounts payable, click Setup, click Payment, and then click
Terms of payment.
2. Click the New button to create a new record.
3. In the Terms of payment field, enter a code or a short name for the
term of payment.
4. Enter a descriptive name for the current terms of payment in the
Description field.
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6. Select a payment day to be used for calculation of the due date in the
Payment day list. The due date is always rounded up to the nearest
specified date. The payment day can be specified:
o For a specific day in the week
o For a specific day in the month
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Payment Days
Use payment days to define the payment day used for calculating due date. The
due date always is rounded up to the nearest specified date.
1. Click Accounts payable, click Setup, click Payment, and then click
Payment days.
2. Click the New button to create a new record.
3. In the Payment day field, enter a short identification of the payment
day and enter a description of the payment day identification in the
Description field.
4. On the Payment day lines FastTab, click the Add button to add a
new line to the payment day.
5. Select between Week and Month in the Week/Month field. If
Week is selected, enter a value from the Day of Week field, and if
Month is selected, enter in the Day of month field a value between
1 and 31.
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.
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Cassie, the Accountant at Contoso, has been asked to set up a new term of
payment for a vendor that Contoso has been slow in paying. The vendor,
Southbridge Insurance Co., now requests that payments are paid in 12 days.
Challenge Yourself!
Help Cassie create the new term of payment titled N012 and assign it to the
vendor.
Step by Step
Create the new term of payment and name it N012.
1. Click Accounts payable, click Setup, click Payment, and then click
Terms of payment.
2. Click the New button.
3. In the Terms of payment field, type N012.
4. In the Description field, type Net 12 days.
5. Click the Setup FastTab.
6. Click the Payment method arrow, and then click Net.
7. In the Days field, type 12.
8. Close the form.
Assign the new term of payment to the vendor Southbridge Insurance Co.
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Cash Discounts
The following information applies to cash discounts:
Scenario
Contoso obtains a cash discount if it pays vendor invoices within certain dates.
Contoso has set up the following codes:
The three cash discounts occur sequentially as the cash discount date nears.
However, only one cash discount is granted.
To specify the cash discounts following the 5D10% code, the 10D5% code is
selected in the Next discount code list. On the 10D5% code, the 14D2% code is
selected in the Next discount code list. Finally, on the 14D2% code the Next
discount code is left blank.
1. Click Accounts payable, click Setup, click Payment, and then click
Cash discounts.
2. Click the New button.
3. Enter an alphanumeric code for the cash discount in the Cash
discount field. For example, enter 7D4 to indicate the company
receives a four percent discount if payment is made seven days
before the due date.
4. Enter a brief description for the cash discount in the Description
field. For example, enter 7 days - 4% Discount for the discount code
7D4.
5. Select the cash discount code used when the criteria for obtaining the
current cash discount is exceeded in the Next discount code list.
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This selection lets you to define a set of cash discounts that are
sequential.
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Payment Fee
Use payment fees to do the following:
Scenario
Contoso electronically transfers invoice amounts (that are due to the vendor) to
its bank. The bank then transfers the money directly into a vendor's designated
banking account. After the invoice amount is transferred, 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.
To manage the payment fees from the bank, Contoso decides to set up payment
fees for vendor invoices.
1. Click Accounts payable, click Setup, click Payment, and then click
Payment fee.
2. Click the New button to create a new record.
3. Enter an identification in the Fee ID field.
4. Enter a brief description in the Description field.
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1. From the Payment fee form, click the Payment fee setup button.
2. Select the kind of bank information that is required to start the fee in
the Grouping field. The fee is valid for each field for:
o Table - the bank account selected in the field Bank relation
o Group - the bank group selected in Bank relation
o All - all the bank accounts
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7. Enter the size of the fee in the percentage of the payment or the
amount for one payment in the Fee amount field.
8. Select the currency code for the fee in the Currency field.
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1. From the Payment fee setup form, click the General tab.
2. Enter the minimum transaction amount to enable the fee in the
Minimum field.
3. Enter the maximum transaction amount to enable the fee in the
Maximum field.
4. Enter the date the date interval starts for fee calculation in the From
date field.
5. Enter the ending date for date interval for fee calculation in the To
date field.
6. If the calculated fee is less than the value entered in the Minimum
fee field, it will not be applied.
7. If a financial cost is selected, you can select a Sales tax group and
an Item sales tax group to generate the relevant taxes.
NOTE: If sales tax is calculated, the net amount is posted on a ledger account,
and the sales tax amount is posted on a sales tax account.
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1. From the Payment fee setup form, click the Interval tab.
2. 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.
3. Select whether the specification is a percentage or an absolute
amount in the Percentage/Amount field.
4. Enter the size of the fee in percent of the payment or amount for one
payment in the Fee amount field.
Methods of Payment
Many companies offer several methods to pay due invoices, such as the
following:
• Credit
• Cash in advance
• Bill of exchange
• Check and electronic payments
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In the Methods of payment form, specify all the methods of payment the
company uses to pay its vendors. For each method of payment, enter information
that states how payments should be summarized and posted.
• Vendors
• Journals
• Purchase orders
1. Click Accounts payable, click Setup, click Payment, and then click
Methods of payment.
2. Click the New button to create a new record.
3. Enter a name for the new method of payment in the Method of
payment field.
4. Select whether the system should total the invoices in an automatic
payment proposal. Options include the following:
o Invoice - creates one payment transfer for each invoice
o Date - combines the payment for all invoices for vendors with
the same due date
o Week - combines all invoices for vendors with a due date within
the same week
o Total - combines all invoices from vendors for the same
payment
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Format Action
Export Specify the format to export payment, for example, a
format promissory note or a check format. The export format tells the
system how to communicate with the bank.
Return Enter a format to return a message from the export format, if
format the bank supports an electronic return file.
Remittance Enter a format for remittance to a specific bank.
format
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NOTE: If the format list is empty, click the Setup button and select from the
available formats.
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April, the Accounts Payable Clerk at Contoso has been asked to set up a new
method of payment called special cash discount (SCD). The SCD was requested
by Lake Electronics, a vendor with whom Contoso collaborates. The vendor has
asked Contoso to pay cash with a special discount, for the next few months to
help them with some accounts receivable shortfalls. 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.
Field Value
Payment status None
Account type Bank
Payment account EUR OPER
Bank transaction type 03
Export Format 1 (Test)
Return Retur. Format 1 pr. payment
Challenge Yourself!
Help April set up the method of payment. Attach the new terms of payment and
cash discount to the vendor.
Step by Step
Create a new method of payment called SCD, Special Cash Discount.
1. Click Accounts payable, click Setup, click Payment, and then click
Methods of payment.
2. Click the New button to create a new method of payment.
3. In the Method of payment field, type SCD.
4. Click the Period arrow, and then click Invoice.
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Assign the new method of payment to the vendor. Also assign the N014 Terms of
payment to the vendor, which specifies that the balance is due in 14 days.
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Vendor Groups
Use vendor groups to set up certain information that always defaults when you
enter a new vendor.
For example, use the vendor group to set up automatic posting to General Ledger
accounts for consumption generated by vendor transactions.
In the Vendor groups form, set up vendor groups. You must set up at least one
vendor group, because a vendor group must be specified when you create a new
vendor.
Scenario
Contoso has multiple vendors to monitor. To simplify the management of
vendors, Contoso has set up several vendor groups to do the following:
1. Click Accounts payable, click Setup, click Vendors, and then click
Vendor groups.
2. Click the New button to create a new record.
3. Enter a short name for the vendor group in the Vendor group field.
This name is used throughout the system.
4. Enter the full name of the vendor group in the Description field. The
name acts as additional specification of the vendors included in the
vendor group. 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.
5. 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. Use the Terms of payment list for cash
flow forecasting.
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For example, 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 10,000 USD is
budgeted for June 15, a payment term is specified to correspond to
the current month + 30 days. On this basis, coverage is arranged so
that the budgeted item price of 10,000 USD is due for payment on
July 30.
6. 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. Use the payment terms with vendor payment coverage
based on one purchase budget for each vendor group. Use the Settle
period field in cash flow calculations.
7. Enter or select the default tax group for the selected vendor group in
the Default tax group field.
1. From the Vendor groups form, click the Item posting button.
2. Set up general posting rules for all items, accounts, and sales-tax
codes by selecting one of the following in the Item code field.
o Table - This option is the highest in the hierarchy. By selecting
Table, the posting in ledger only applies to a specific item
number.
o Group - The posting in the ledger only applies to a particular
item group.
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o All - Each transaction is posted for all item numbers in the same
account in the ledger. The first matching account is used for
posting.
Based on the kind of business that you run, decide which accounts you must set
up. The focus of finance is related to consumption and revenue accounts, whereas
the focus of logistics is the issue, receipt, and packing slip accounts.
For example, set up the Primary receipt posting list to prioritize the Item. If
you buy some of item type B-R14 from vendor 3000, which is part of vendor
group 50, the system posts the transaction to account number 510120, because
the item relation is more specific than the account relation.
If the posting is set up as illustrated in the following table, and the Primary
receipt posting list is set to Vendor, and you bought some of item type B-R14
from vendor 3000, the transaction is posted to account number 510100 because
of the Accounts Payable parameter setup.
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Phyllis, the Accounting Manager, has asked April, the Accounts Payable Clerk,
to create a new vendor group. Phyllis will use the vendor group to group vendors
who require Contoso to pay cash on delivery. The new group should be called 83,
and the description should be cash vendor group. After April creates the vendor
group, she must set up automatic posting of receipts to General ledger accounts.
The posting should have the account relation of 80 (other vendors), and post to
account number 211300.
Challenge Yourself!
Help April create a new vendor group that has automatic posting.
Step by Step
Create a new vendor group, which is titled 13 for cash vendors. Assign a cash
terms of payment and COD settle period.
1. Click Accounts payable, click Setup, click Vendors, and then click
Vendor groups.
2. Click the New button to create a new group.
3. In the Vendor group field, type 83.
4. In the Description field, type Cash Vendors for the description.
5. Click the Terms of payment arrow, and then click P007.
6. Click the Settle period arrow, and then click P007.
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• All vendors
• Groups of vendors
• Single vendor
When you post a vendor transaction automatically, the system searches for the
ledger accounts shown in the previous order. Consider the following examples:
• A posting profile line exists for the vendor, this line is used.
• No posting profile line exists for the vendor, however, the line
specified for the vendor group that the vendor is attached to is used.
• Neither of these exists, the posting profile line for all vendors are
used.
In the Vendor posting profiles dialog box, you can set up many vendor posting
profiles. If all vendor transactions are processed together, set up only one posting
profile for all vendors.
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7. Select the Cancel check box to indicate whether you want to be able
to cancel transactions created that have this posting profile.
8. 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.
1. From the Vendor posting profiles form, click the Setup FastTab.
2. Click the Add button to add a new line.
3. Select an Account code:
o Table
o Group
o All
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5. 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.
If you use an invoice register and invoice approval journal, all
vendor invoices recorded as having arrived but not yet approved are
posted in the Arrivals account and the Arrivals offset account. When
these invoices are approved, the debt is transferred to the vendor
summary account. If your company does not use an invoice register
and invoice approval journal, all vendor invoices are updated directly
in the vendor summary account.
6. Select the liquidity ledger account that is used for cash flow forecast.
Cash flow forecast in the Settle account field. For more about Cash
flow forecast refer to the Microsoft Dynamics AX Financials II
course.
7. Select the account used for Sales tax prepayments.
8. Select a ledger account number that is used to make temporary
postings of unapproved vendor invoices, which are updated through
invoice register in the Arrival list.
9. Select in the Offset account list, the ledger account number that is
used for offsetting unapproved vendor invoices, which are updated
through the invoice register. The offset account acts as the offset
account for arrival and contains unapproved vendor purchases.
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Phyllis, the Accounting Manager has asked April, the Accounts Payable Clerk, to
set up a new posting profile for a group of vendors to be paid from a different
cash account than other vendors. Phyllis explained that the profile should be
selected for automatic settlement and should allow for cancellation. The
following details apply:
Field Value
Posting Profile COD
Description Cash on Delivery Profile
Account Code Group
Account/Group Number 80 - 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.
Step by Step
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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.
NOTE: In the Other information section, select the language that is used for all
external documents, such as purchase orders in the Language field. The
language code is mandatory.
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NOTE: To display more fields on the General FastTab, click the Show more
fields button.
1. From the Vendors form, enter the vendor's address and contact
details on the Addresses and Contact information FastTabs.
2. If a vendor has more than one address, such as invoice, delivery,
purchase, alternative delivery address, or SWIFT, enter additional
addresses by clicking the Add button.
3. Additionally, enter address, contact information, and parameters for
access from the Internet. Click the Add button on the Contact
information FastTab.
NOTE: This Area is for non-postal contact information for the vendor
organization. Example: Website URL, additional phones numbers
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6. After selecting a type of vendor hold, select the Release date and
Reason code for the vendor hold in the same drop down menu.
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7. Select a buyer group in the Buyer group list. Your selection creates
links between vendors, employees, and items/planned orders when
you create purchases and productions.
For example, 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.
8. Select a Customer account number if vendor is also a customer and
used in Intercompany transactions.
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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. In the General section of the Accounts payable parameters
form, select a vendor's account number that can serve as the default template for
one-time suppliers. Information is copied automatically when you create a one-
time supplier in the Vendors form. The system automatically creates a one-time
vendor when a purchase order is created for a one-time supplier. Except for the
vendor number, the one-time supplier inherits all base information from the
vendor number specified in this field. The one-time vendor number sequence
must be specified in the Number sequences form. If you have no one-time
suppliers, leave the Default vendor number blank.
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Contoso has begun working with a new vendor, Dakota Travel. April, the
Accounts Payable Clerk, must set up this new vendor. The following details
apply:
Field Value
Vendor group 80 - other vendors
Credit limit 10,000
Method of payment Check payment - USD
Cash discount 4%D10
Terms of payment N015
Challenge Yourself!
Help April create a new vendor.
Step by Step
Create the new vendor.
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Summary
Payment options in Microsoft Dynamics AX are flexible to accommodate
different business processes. You can do the following with payment options:
• Set up the cash discounts as multiple (for example, ten days three
percent and 30 days one percent). You can decide whether you want
special ledger accounts to post.
• Set up Microsoft Dynamics AX to manage the cash discount with or
without sales tax to comply with the tax legislation in various
countries.
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2. What elements must be defined to create a payment schedule? (Select all that
apply)
( ) Vendor account
( ) Due date of each installment
( ) Amount of each installment
( ) Number of installments
3. 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. 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
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1.
2.
3.
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Solutions
Test Your Knowledge
1. A payment schedule consists of which of the following?
( ) Payments
( ) Consecutive time intervals
( ) Consecutive payments
(•) Consecutive payments in set time intervals
2. What elements must be defined to create a payment schedule? (Select all that
apply)
( ) Vendor account
(√) Due date of each installment
(√) Amount of each installment
(√) Number of installments
3. Outline the steps to setting up a term of payment. Place the following steps in
order.
Step:
4 : Enter a description.
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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
6. What are some methods of payment a company might use? (Select all that
apply)
(√) Credit
(√) Cash in advance
(√) Check and electronic payments
(√) Bill of exchange
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Chapter 10: Accounts Payable Daily Procedures
Introduction
This chapter discusses the various Invoice Journals in the Accounts Payable
module. It describes what to use each Invoice Journal for and how to enter
transactions into each journal.
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• Registered
• Approved
• Paid
• 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. In the
invoice register journal, an employee registers the following information:
• Vendor account
• Invoice number
• Amount
• Person who approves the invoice
The same employee validates and posts the journal to the accounts specified in
the posting profile. Usually the accounts are pending accounts where the amounts
requite the manual approval and reclassification by the person specified in the
journal line.
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HINT: Create and define journal names in the Journal names form. To access
the Journal names form, click General ledger, click Setup, click Journals, and
then click Journal names.
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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. Explanations of
these fields are available in the topic about journal names and exchange rates.
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8. Enter the currency exchange rate that applies to the transaction in the
Exchange rate field. 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. Enter the secondary exchange rate in the Secondary exchange rate
field.
10. Select the Amounts include sales tax check box if the amount in the
journal line includes sales tax.
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NOTE: For security reasons, only one user at a time can enter lines in a
particular journal.
6. If you select the Private check box, the Private for user field
contains your user identification.
7. To exclude users or user groups from the journal, select a group in
the Private for user group field. Only the users associated with the
selected group can access the journal.
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1. In the Journal voucher form, select a sales tax group for the
transaction in the Sales tax group field. The value defaults from the
Sales tax group field in the Vendor form.
2. Specify the item sales tax group for each journal line in the Item
sales tax group list. The value defaults from the Item sales tax
group field in the Main accounts - chart of accounts form. If this
field is empty, the value in the Item sales tax group field in the
Sales tax area of the General ledger parameters form is used.
View the sales tax amount that calculates on the invoice in the Sales
tax amount field.
NOTE: If the Exempt field in the Main chart of accounts is selected, the field is
always empty, but you can manually enter a value.
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5. Select the tax exempt number for the transaction. The tax exempt
numbers are created in Tax exempt numbers form
(General ledger > Setup > Sales tax > External > Tax exempt
numbers).
6. Specify the purchase order numbers regarding this invoice in the
Purchase order field. This field is informational only.
2. Enter the currency exchange rate that applies to the transaction. This
is set up in the Currency exchange rates form, but you can change
this rate.
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.
3. View the secondary exchange rate in the Secondary exchange rate
field.
4. View the cross rate for the two exchange rates in the Cross rate
field.
5. View the basis for the calculation of the cross rate in the Calculation
method field.
NOTE: In the Validate currency code field in the Chart of Accounts form, you
can set up validation rules for the currency.
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1. In the Cash discount area of the Journal voucher form select the
code for the cash discount in the Cash discount field.
2. Enter the latest payment date to qualify for a cash discount in the
Cash discount date field. The discount date is calculated based on
the cash discount setup, but you can change it manually.
3. Enter the cash discount amount in the Discount amount field.
When you make a payment before the cash discount date, the
discount amount is redeemed and posted automatically. The cash
discount information is set up on the Cash discount tab.
The invoices are not yet approved for posting to ledger cost accounts, but they
are posted to the accounts that are specified in the Arrival and Offset account
fields in the Vendor posting profiles form.
From the Journal voucher form click the General tab and then do the
following:
1. Select the posting profile for the transaction in the Posting profile
field. The posting profile defaults from the setup for the vendor.
2. Select the account number for the current offset account transaction
type in the Offset account field.
NOTE: In the Main accounts - chart of accounts form, you can set up a default
offset account that appears automatically in the Offset account field. This can
also be done in the Offset account field in the Vendors form
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• Post and transfer: post lines that do not have errors and transfer
lines that have errors to a new journal.
• Post: post the selected lines. If an error exists, no lines are posted
and an error message is displayed.
When you post the journal lines, you transfer them to an invoice pool. In an
invoice approval journal, you can transfer them from the invoice pool into the
invoice approval journal.
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HINT: If the invoice register is not being used or if most of the incoming
invoices do not require approval, enter the vendor invoices directly into an
invoice journal.
Scenario
April, the Accounts Payable Clerk, registers an incoming invoice in the invoice
register and posts the registration. April sends the physical invoice to Phyllis, the
Accounting Manager, for approval. Phyllis approves the invoice with a signature
or a stamp and returns the invoice to April. April registers and posts the approval
in the invoice approval journal. The invoice is now ready to be paid.
Invoice Pool
To view the postings in the invoice pool click Accounts Payable, click
Inquiries, and then click Invoice pool.
• The invoice pool displays the relevant information about the invoices
awaiting approval.
• The invoice pool holds invoices originating from a purchase order
that originate from an invoice register. Click the Purchase order
button to select and approve the purchase orders.
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NOTE: All tabs and fields in the Invoice pool form are discussed in the Invoice
Register lesson.
Perform the following steps to print the Invoices not approved report:
1. Click Accounts payable, click Reports, click Status, and then click
Invoices not approved.
2. In the query window, you can specify:
o Vendor account
o Employee
o Due date
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7. In the Find vouchers form, select the invoice register entries that
need approval and click OK to save the entries and transfer to the
approval journal.
8. 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.
o Approve – approve the selected journal.
o Reject – reject the selected journal.
NOTE: The Approval button is available only if the Active check box is selected
in the Journal names form.
HINT: Instead of validating each line, click the Validate button, and then click
Validate when the account information is complete for all the invoices.
9. Click the Post button, and then click Post. You can now settle the
posted invoices in the Payment journal.
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April, the Accounts Payable Clerk at Contoso, creates invoice registers and
approves invoices. April's typical workflow is to create invoice registers on
Monday, view the invoices to be approved in the invoice pool on Tuesday, and if
there are enough to process, approve the invoices by using the invoice journal on
Tuesday and Wednesday.
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, invoice pool, and invoice approval journal to complete
the workflow outlined in the scenario.
1. The invoice register and the invoice approval journal are in journals.
2. The invoice pool is in inquiry.
3. The approver must be specified in the Approved by field in the
invoice register.
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Step by Step
Perform the following steps to pre-register the invoice and transfer it to an
invoice pool:
Perform the following steps to view the invoice in the invoice pool:
Perform the following steps to create and post an invoice approval journal:
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Scenario
April, the Accounts Payable Clerk at Contoso, registers the incoming invoice in
the journal invoice pool excluding posting. April sends the invoice to Phyllis, the
Accounting Manager, for approval. Phyllis approves the invoice with a signature
or a stamp and returns the invoice to April. April creates a new invoice journal,
uses the Function button to find the invoice from the invoice pool, and posts the
journal. Now the invoice is ready to be paid.
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Phyllis, Accounting Manager at Contoso, has asked April, the Accounts Payable
Clerk, to enter invoices to the invoice pool excluding posting. Phyllis wants to
review April's work.
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. Then help
Phyllis review and approve them in an invoice journal.
Step by Step
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11. Click Accounts payable, click Journals, click Invoices, and then
click Invoice journal.
12. Click New to create a new journal.
13. In the Name field, type APInv.
14. Click Lines.
15. Click the Functions button, and then click Invoice pool excl.
posting.
16. Click the line for INV777.
17. Click Accept.
18. Click the Invoice tab.
19. Select the Approved check box.
20. Click the General tab and select Bank in the Offset account type
field.
21. Click the Offset account arrow, and then click USA OPER.
22. Click the Post button, and then click Post.
23. Click Close to close the Infolog.
24. Close all the forms.
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Invoice Journal
A third option for processing incoming invoices is to enter them directly into the
invoice journal.
• By default, the user who is logged in and who enters the journal lines
approves the invoices.
• The invoice journal is designed for users to enter the invoices they
receive from vendors without using the approval journal. As soon as
the user enters the incoming invoices, the user can post.
Scenario
April, the Accounts Payable Clerk at Contoso, enters the invoice directly into a
new invoice journal, and then approves and posts the journal. Now the invoice is
ready to be paid.
You can validate and post from two forms. The process is the same regardless of
which window you use.
• Journal form
• Journal voucher form
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Validate the Journal before it posts. The validation process ensures that the
journal is correct. For example, the system verifies that all mandatory fields have
information entered and that the journal balances.
To validate a journal, click the Validate button from either of the forms, and then
click either Validate to validate all the journals or Validate voucher only to
validate only the selected line.
If Then
The journal A window appears with the message: Journal is OK.
is correct
The journal A window appears with details of what is incorrect. If a
is incorrect journal does not validate correctly, it cannot be posted.
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April, the Accounts Payable Clerk at Contoso, has been asked by Phyllis, the
Accounting Manager, to enter an invoice into an invoice journal, validate the
journal, and then post it.
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, validate, and post a journal.
Step by Step
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Voucher Template
Use a voucher template as the basis of future vouchers. You can use voucher
templates with an accounts payable invoice journal.
Scenario
Phyllis, the Accounting Manager, is entering a voucher to record interest expense
on a fixed-rate long-term note. The voucher debits Interest Expense and credits
Interest Payable for 350 U.S. dollars (USD) each.
Phyllis must record this voucher for the same amount each month. To reduce
future data entry time, Phyllis decides to save the voucher as a voucher template
by amount.
The next time Phyllis records an interest expense, she selects the Load voucher
template action and chooses the interest entry. The original ledger accounts and
amounts load into the form.
April, the Accounts Payable Coordinator, receives a telephone bill that she must
enter. At Contoso the telephone expenses are distributed across all departments
equally. April enters the voucher with the appropriate departments. The
following table is an example of the distributions for an invoice in the amount of
600.00 U.S. dollars (USD).
April chooses to save this entry as a Voucher template by percent. This will hold
the value assigned to each account as a percentage of the total. In this case, she
will assign each department 25 percent.
The next time April receives the telephone bill she must retrieve the Voucher
template and enter only the amount of the telephone bill. The distributions will be
created automatically based on the original percentage.
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5. Click OK.
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Payment Journals
After you register, approve, and post the invoice, it is time to pay the invoice.
• There are two methods for selecting the invoices to pay through the
payment journal.
o The Payment proposal option searches for invoice lines that
meet selected search criteria.
o Use the Settlements option to select the specific invoice lines to
pay.
• After you create all the payment lines, use the Generate payments
command on the Functions button to generate the payment. This is
the selected method of payment and the setup of controls if the
system should, for example, print checks or create a payment file.
NOTE: To learn more about all the tabs and fields on the Journal window,
review the Invoice Register lesson.
Payment Proposal
You must post payments made to vendors to ensure the Accounts Payable
subsidiary ledger matches the General Ledger.
• The payment proposal function searches for payment lines that either
are due or have a maximum date for receiving a cash discount.
• The payment proposal function verifies vendor transactions that are
open and approved.
The system includes only transactions with either a due date or a cash discount
date in the search. As soon as the payment lines generate, edit them in the
payment journal.
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• Payment proposal lines that meet the criteria appear in the lower
Payment proposal pane.
• When you select a payment proposal line, view the open invoice
transactions that contribute to the payment proposal line in the upper
Open transactions pane.
• Review each proposal line and the associated open transactions
before settlement. For example, 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 delete a line, put the pointer on the line and click the Delete
button.
To change certain fields on several lines in one operation, select the lines, click
the Multiple change button, and enter the values to be implemented.
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HINT: Select the Link check box in the middle of the form to synchronize the two
parts of the form. When this option is selected the Open transactions pane only
shows transactions related to the current payment suggestion. When you move
between payment suggestions, the system updates open transactions.
1. After you inspect all the proposed lines click the Transfer button to
move the lines to the payment journal.
2. In the Payment journal lines form, continue to edit the lines in the
payment journal if necessary.
3. Verify the balances of company bank accounts to ensure you can
make the payments.
To view the balances, click the Inquiries button, and then click
Balance control.
4. Click the Validate button to validate the payment lines.
5. Click the Post button, and then click Post to generate the payments.
Click Accounts payable > Journals > Payments > Payment transfer.
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Perform the following steps to run a payment proposal for a marked settlement:
NOTE: The Vendor account and Currency fields must contain values to select
the Settlements option.
5. Click the Functions button, and then click Settlement to open the
Settle open transaction form.
1. From the Settle open transaction form select the Mark check box
to transfer the invoice to the Vendor payment proposal form. Select
one or several invoices for settlement.
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1. Click the Transfer button to move the proposal lines to the payment
journal after you inspect all the proposed lines.
2. In the Payment journal lines form, continue to edit the lines in the
payment journal if necessary.
3. Verify the balances of company bank accounts to ensure that you can
make the payments.
To view the balances, click the Inquiries button, and then click
Balance control.
4. Click the Validate button to validate the payment lines.
5. Click the Post button, and then click Post to generate the payments.
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1. From the Journal voucher form click the Validate button after you
enter all the voucher lines, and then click Validate or Validate
voucher only. This verifies that all the lines or the selected lines are
ready for posting.
2. Post the lines in the Journal voucher form or in the Journal form.
Click the Post button, and then click Post.
NOTE: Click the Inquiries button, and then click Balance control to ensure that
the bank account has funds available to pay the vendor.
• Payment proposals
• Settlements
• Manual payment journals
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1. From the Journal voucher form, click the Functions button, and
then click Generate payments.
2. Select the method of payment for the invoice lines you are paying in
the Method of payment list. For example, if you are making a check
payment, select the method of payment for checks. Or, select an
export format in the Export format list.
3. Select the bank account from which to withdraw the payment in the
Bank account list.
1. From the Generate payments form, click the Dialog button to pay
with checks.
2. Fill in the fields and then click the Document button to print the
check.
3. Click OK to print the checks.
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NOTE: To print checks, before you run the generate payments process, run the
create checks process in bank management. For information about this refer to
the Bank Management course.
HINT: Before checks print, ensure that the printer has the correct checks ready
to print.
NOTE: To void checks after they are printed, click Payment status and select
Reject.
CAUTION: As soon as checks are printed, the journal lines cannot be deleted
unless the checks are voided.
1. Click Accounts payable > Common > Vendors > All vendors. On
the Action Pane, select the Invoice tab, and then click the Payment
history button.
2. Select a payment or payments, and then click Print payment copy.
1. Click Accounts payable > Journals > Promissory notes > Draw
promissory note journal.
2. Select a journal or click New to create a new line, and then click
Lines. The Journal voucher form opens.
3. Select a payment or payments, 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. For more information,
see Methods of payment - vendors (form) and Journal voucher - Vendor payment
journal (form).
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1. View the status of the payment in the Status field in the Payment
journal lines form. After the payment generates, the status is set to
Sent automatically.
2. Click Post to update the vendor account balance in the subsidiary
ledger and General Ledger account balances.
1. Click Accounts payable > Common > Vendors > All vendors.
2. Select a vendor account.
3. On the Action Pane, click On hold.
4. In the form that is displayed, select Payment in the Vendor hold
field.
5. In the Vendor hold release date field, enter the date when the
payment hold should end, and payments should again be made to the
vendor. If you do not enter a date, the payment hold lasts
indefinitely.
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Sara, the CFO at Contoso, has returned from the annual Microsoft conference
called Convergence. She has submitted her expenses using an outside travel
agency called Margie's Travel. April, the Accounts Payable Clerk at Contoso,
must register and post the invoices, each in a separate journal. She must then
validate and post each journal.
Option Value
Date 4/1/2011
Invoice number 1000
Amount 550 USD
Approver Brooke Drynan
Option Value
Date 4/1/2011
Invoice number 1001
Amount 600 USD
Approver Brooke Drynan
Challenge Yourself!
Help April with the following tasks:
4. After you complete the required steps, validate and post this journal.
5. Make the appropriate edits and validate the journal again.
6. Post the journal.
7. Generate the payment(s) for this invoice.
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Step by Step
Perform the following steps to enter invoices in Accounts Payable.
Airfare Invoice:
Hotel Invoice:
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Chapter 10: Accounts Payable Daily Procedures
Prepayments
Advance payments of expenses such as taxes or insurance can be used as
prepayments. The system functionality can automate a process for making a
prepayment for a purchase order. This functionality allows the prepayment to be
settled against the purchase order to help prevent over or double payment. In
addition, parameters allow for the posting of prepayments to be directed to a
different posting profile.
Prepayment Process
Five basic steps involved with processing a prepayment for a purchase order
include the following:
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.
1. Open Procurement and sourcing > Common > Purchase orders >
All purchase orders.
2. Click New > Purchase order to create a new purchase order.
3. Select the Vendor account.
4. If required, click Yes to transfer the vendor information to the
purchase order.
5. Click OK to create the order.
6. In the Lines tab, select the desired Item number.
7. Type the Quantity and Unit price.
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A new transaction is posted to the vendor account for the amount of the
prepayment.
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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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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.
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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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.
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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:
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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.
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Perform the following steps to modify an inventory model group for invoice
matching:
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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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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.
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Example
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.
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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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.
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.
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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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:
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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.
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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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:
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7. Enter the cross rate for each transaction that you selected to be
settled with a primary payment transaction in step 5.
8. Click Update The marked transactions are offset against each other.
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Scenario
Phyllis, the Accounting Manager at Contoso, reviews and approves the Accounts
Payable transactions. Phyllis realizes that a consulting fee was paid twice and she
wants to reverse the settlement.
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April, the Accounts Payable Clerk at Contoso, realizes the last transaction posted
for vendor account 5001 should have been posted to vendor account 2001. She
must reverse the transaction and check history to ensure she reverses the
transaction. She then will make a note to enter the transaction correctly in the
morning.
Challenge Yourself!
Help April reverse the transaction and check history to ensure she reversed it
correctly.
Step by Step
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Print Management
You can define print management original records, copy records, and conditional
settings at the module, account, or transaction level. You can control various
activities that include the following:
You can define the print management setup information for each document type
in a hierarchical list that consists of modules, accounts, and transactions. At each
level of the hierarchy, define print management original records, copy records,
and settings for any of the available document types.
Each original record or copy record can associate with a default setting that
specifies the footer text, printer destination, and number of identical copies to
print. If the Default setting check box in the Print management setup form is
selected, a document prints according to the specifications for the default setting.
If this field is not selected, a document prints only if a query for an associated
conditional setting successfully returns results.
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Setting up print management at the module level requires the least amount of
setup and minimizes the maintenance work when settings change, such as
installation of a new printer. However, if business needs require, settings for
specific accounts or individual transactions can override module settings.
NOTE: You can use print management settings when you reprint documents.
Select Preview/Print > Use print management to reprint a document that uses
the effective print management settings.
1. Click Accounts Payable, click Setup, click Forms, and then click
Form Setup.
2. Click the Print management button. The hierarchical list in the left
pane displays the module, documents, original or copy records, and
conditional settings. The fields in the right pane are the options that
you can specify for each type of record. The displayed fields vary,
depending on the selected record. When the hierarchy list is
unexpanded, a plus (+) icon in front of the document type indicates
that a setup record exists.
3. To create a new record, right-click a document name and select New.
A new original or copy record is created and is displayed in the list
automatically.
4. In the right pane in the Original/copy field, select to create an
original or copy record. You can create only one original record for
each document, but you can create multiple copy records for each
document.
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Scenario
Alicia, the Purchasing Agent at Contoso, is entering a purchase order for a new
vendor. Because this is her first time buying from the vendor, the terms are cash
on delivery. She must enter the order with the vendor's payment terms so that she
receives the material on time.
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Alicia posts and prints the purchase order which prints a copy to Connie's printer.
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Refer to the following table for the paths to setup a print management for a
specific transaction type.
Document Path
Purchase order Procurement and sourcing > Common > Purchase
Purchase order orders > All purchase orders.
invoice
Purchase order
packing slip
Purchase order
receipts list
Request for Procurement and sourcing > Common > Requests
quotations for quotations > All requests for quotations
Request for Procurement and sourcing > Common > Requests
quotation replies for quotations > Request for quotation replies
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Customize the document output by using conditional settings that apply based on
the results of a query.
NOTE: Although conditional settings and queries provide flexibility in the print
management settings, be aware that complex queries or many conditional
settings can affect posting performance.
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1. Click Accounts Payable, click Setup, click Forms, and then click
Form Setup.
2. Click the Print management button.
3. Right-click an original or copy record and select New. A new
conditional setting is created and is displayed in the list.
4. In the right pane, enter a description for the setting, such as Vendors
4000 to 4050.
5. Click Select and enter the query condition that must be fulfilled in
order to print the document by using the current settings. For
example, you might select a range of customer accounts. Click OK
to return to the Print management setup form.
6. By default, the document will be sent to the default printer. To
change the printer destination, click Destination lookup button >
Printer setup and select a destination. When you have finished
making changes, click OK to return to the Print management setup
form.
7. Select a report format.
8. 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. Report formats can be specific
to a country/region.
9. Enter the number of identical copies to print.
10. Enter the footer text to include at the bottom of the document. To
print footer text in other languages, depending on the language of the
document, click the Footer text lookup button and set up footer text
for the additional languages.
11. Repeat steps 3 through 9 for the remaining documents in the list.
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Summary
Microsoft Dynamics AX offers the following important features for managing
Accounts Payable:
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1. After you post the lines of the invoice register, the postings display in the
payment proposal.
( ) True
( ) False
2. You can use the invoice pool to view registered invoices that are ready for
posting.
( ) True
( ) False
4. Which voucher template type lets users re-create a voucher for the same
accounts and values as the original entry?
( ) Percent
( ) Division
( ) Aggregate
( ) Amount
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10. 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
12. How do you create payment lines in the payment journal? (Select all that
apply)
( ) Manual payment journal
( ) Payment transfer
( ) Settlement
( ) Payment proposal
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1.
2.
3.
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Solutions
Test Your Knowledge
1. After you post the lines of the invoice register, the postings display in the
payment proposal.
( ) True
(•) False
2. You can use the invoice pool to view registered invoices that are ready for
posting.
(•) True
( ) False
4. Which voucher template type lets users re-create a voucher for the same
accounts and values as the original entry?
( ) Percent
( ) Division
( ) Aggregate
(•) Amount
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10. 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
12. How do you create payment lines in the payment journal? (Select all that
apply)
(√) Manual payment journal
( ) Payment transfer
(√) Settlement
(√) Payment proposal
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Chapter 11: Accounts Receivable Setup
Introduction
This course introduces the setup procedures and defaults you can use throughout
the Accounts Receivable module.
• 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.
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Payment Schedule
Use payment schedules to pay invoices in installments. To set up a payment
schedule, define the following:
• Number of installments
• Amount of each installment
• Due date of each installment
• Set amount
• Specified number of payments wherein the amount owed is divided
to create equal payments
For example, an invoice of 10,000 U.S. dollars (USD) is recorded. The customer
pays 2,000 USD each month until the balance is paid. During this period the
invoice is not considered past due as long as the customer makes the scheduled
payments on time. This is known as a finance plan, or contract payments.
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Depending on the value you select in the Allocation list, the General and
Payment lines sections enable different fields.
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Terms of Payment
Use the Terms of payment form to define all the terms of payment that a
company and its customers use. You can also use a term of payment to calculate
the due date based on the date of the invoice.
Scenario
Contoso has a standard customer payment term of Net 30 days. If an invoice with
a Net 30 payment term ships goods on September 15, and the invoice is dated
November 15, payment is due December 15. With a Net 30 Days settlement, the
customer must pay the net due within 30 days of the receipt of goods or receipt of
the invoice, according to the settlement. After that date, if the payment is not
completed, you may add an interest charge of a specified percent for each month
to the invoice along with other services charges.
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6. In the Payment day field, select a payment day used for calculation
of due date.
7. Use the Translation button to translate the search name into more
languages. For example, if a French language text is created the text
is shown on invoices for all customers set up with French as the
language.
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For example, click Accounts receivable, click Common, click All customers
and then click a customer account. Click Edit on the Action Pane, and then on
the Payment defaults FastTab, select the terms of payment in the Terms of
payment field.
Payment Days
Use payment days to define the payment day to use for calculating the due date.
The due date is always rounded up to the nearest specified date automatically.
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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.
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Chapter 11: Accounts Receivable Setup
Connie, Contoso's Credit and Collections Manager, has been reviewing the
outstanding customer balances. She noticed that the customer Cave Wholesales
has a large outstanding balance. After a telephone call to Cave Wholesales, both
parties agreed that Cave Wholesales will now make payments within 18 days.
Challenge Yourself!
Help Connie create a new term of payment to fulfill this requirement and assign
it to Cave Wholesales.
Step by Step
Perform the following steps to create a new term of payment:
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Cash Discount
Cash discounts are:
Scenario
Contoso's customers receive a cash discount if they pay invoices due within
certain dates. Contoso has set up the following codes:
The three cash discounts follow one another as the payment nears the cash
discount date. However, only one cash discount is granted.
To specify this on the 5D10% code, the 10D5% code is selected in the Next
discount code list. On the 10D5% code, the 14D2% code is selected in the Next
discount code list. Finally, on the 14D2% code the Next discount code is left
blank.
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Payment Fee
Use payment fees to:
Scenario
Contoso defined guidelines on how to handle late payments:
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1. From the Payment fee form, click the Payment fee setup button.
2. Select the kind of bank information required to start the fee in the
Groupings field. The fee is valid for each field for:
o Table - the bank account selected in the field Bank relation
o Group - the bank group selected in Bank relation
o All - all the bank accounts
4. Select a method of payment used for the actual payment fee in the
Method of payment field.
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5. If the company agrees with the bank to specify the payment, select
the payment specifications in the Payment specification field.
6. Select the currency that activates the fee in the Currency field. Only
transactions with this currency can activate the fee. If you leave this
field blank, all currencies activate the fee.
7. Select the calculation method in the Percentage/Amount list. Select
among:
o Amount
o Percent
o Interval
8. Enter the size of the fee in the percentage of the payment or the
amount for one payment in the Fee amount field.
9. Select the currency code for the fee in the Currency field.
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1. From the Payment fee setup form, click the General tab.
2. Enter the minimum transaction amount to activate the fee in the
Minimum field.
3. Enter the maximum transaction amount to activate the fee in the
Maximum field.
4. Enter the date the date interval starts for fee calculation in the From
date field.
5. Enter the ending date for date interval for fee calculation in the To
date field.
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, you can select a Sales tax group and
an Item sales tax group to generate the relevant taxes.
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`NOTE: If sales tax is calculated, the net amount is posted on a ledger account,
and the sales tax amount is posted on a sales tax account.
1. From the Payment fee setup form, click the Interval tab.
2. 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. Select whether the specification is a percentage or an absolute
amount in the Percentage/Amount field.
4. Enter the size of the fee in percent of the payment or amount for one
payment in the Fee amount field.
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Methods of Payment
Many companies offer several methods to pay due invoices, such as the
following:
• Credit
• Cash in advance
• Bill of exchange
• Check and electronic payments
In the Methods of payment form, specify all the methods of payment the
company uses to receive pay from its customers. For each method of payment,
enter information that states how payments should be summarized and posted.
• Customers
• Journals
• Sales orders
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1. Enter or view the number of the last file that was sent in the Last file
field.
2. In the Today field, enter or view the number of the last file that was
sent on the system date, which is usually today’s date.
3. In the Posting area in the Account type list, select the type of offset
account that is used for payments. The most common account type is
bank.
4. Select the liquidity account for payment in the Payment account
list.
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Format Action
Export format Specify the format to export electronic payment.
Import format Specify the file format for the bank report about
payments from customers.
Return format Specify a format to return a message from the
export format if the bank supports an electronic
return file.
Remittance format Specify the file format for remittances to a specific
bank.
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NOTE: If the format list is empty, click the Setup button and select from the
available formats.
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o Offset account has the type bank - verifies that the offset
account type selected is Bank
o Bank transaction type is mandatory - verifies that a bank
transaction type is selected
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One of Contoso's European customers has asked for the option to pay invoices in
cash in the Euro.
Phyllis, the Accounting Manager, has decided to also offer a two-day grace
period for all Euro cash payments.
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.
Step by Step
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Customer Groups
Consider the following about customer groups:
Scenario
Contoso has many customers to track. To simplify the handling of customers, the
Contoso Company set up several customer groups to:
• Specify ledger posting per customer group. For each customer group,
you can specify accounts, that is, for customer debts, an arrival
account for a customer who has a corresponding offset account, a
receipt account, item revenue account and account for customer line
discounts.
• Record sales budgets per customer group.
• Generate trade statistics per customer group. For example, to
generate sales statistics that shows monthly sales per customer
group.
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1. From the Customer groups form, click the Setup button, and then
click Item posting.
2. Set up general posting rules for all items, accounts and sales-tax
codes. In the Item code field, select one of the following:
o Table: this option is the highest in the hierarchy. By selecting
Table, the posting in ledger only applies to a specific Item
number.
o Group: the posting in the ledger only applies to a particular
Item group.
o All: Each transaction is posted for all Item numbers in the same
account in the ledger. The first matching account is used for
posting.
o Category: the posting to an account in the general ledger
applies to a particular category of items provided in the
Category relation field. Posting by Category only applies to
Sales and Purchasing transactions.
Based on the type of business being run, decide which accounts must be set up.
The focus of finance is related to consumption and revenue accounts, and the
focus in logistics is the issue, receipt, and packing slip accounts.
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For example, set up the Primary sales posting list to prioritize the Item. If you
are selling some of item type B-R14 to customer 4000, which is part of customer
group 40, the system posts the transaction to account number 401130, because
the item relation is more specific than the account relation.
If you have set up the posting as illustrated in the following table, and you set the
Primary sales posting field to Customer, and some of item type B-R14 is sold
to customer 4000, the transaction is posted to account number 401100 because of
the Accounts receivable parameter setup.
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Contoso is negotiating a deal with a group of Travel Agencies. Kevin, the Sales
Manager, has asked Arnie, the Accounts Receivable Clerk, to create a new
customer group for travel agencies. Arnie should assign the new group the code
of 60 and name it Travel Agencies. The payment term should be the current
month plus 15 days, with a 14-day settle period.
For this new group, automatic posting should have the Account code of all and
post to the Main account 142300.
Challenge Yourself!
Create the new customer group with the correct setup options.
Step by Step
Create the new Customer Group 60, Travel Agencies.
1. From the Customer groups form, click the Setup button, and then
click Item posting.
2. Verify that item posting has been set for the All Item code.
3. Click the arrow in the Account code field and select All.
4. Type "142300" in the Main account field.
5. Close the form.
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• All customers
• Groups of customers
• Single customers
When you post a customer transaction automatically, the system searches for the
ledger accounts that are shown in the previous order. For example if:
In the Customer posting profiles form, you can set up many customer posting
profiles. If all customer transactions are processed together, set up only one
posting profile for all customers.
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1. From the Customer posting profiles form, click the Setup FastTab.
2. Select an Account code:
o Table
o Group
o All
4. 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.
5. Select the liquidity ledger account used for cash flow forecast in the
Settle account field. To learn more about Cash flow forecast refer to
the Microsoft Dynamics AX Financials II course.
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6. Select a ledger account number to use for sales tax payments you
receive in advance in the Sales tax prepayments list.
7. Select the ledger account for liabilities of discount in the Liabilities
for discount account field.
8. Enter the identification of the collection letter sequence in the
Collection letter sequence field.
9. Select the code used for calculation in the Interest code field.
10. In the Write-off account field, enter an account that will be used for
the general ledger write-off entry when a transaction is written off.
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Phyllis, the Accounting Manager at Contoso, has asked Arnie, the Accounts
Receivable Clerk, to set up a new posting profile for a group of retail customers.
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
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Enter as much data as possible in advance, because the data is used throughout
the system for:
• Invoicing
• Payments
• Reports
The base data is automatically displayed as the default for all transactions that
involve the customer.You can change default information at any time. To
expedite the process of creating customers, you can create templates based on the
entries in fields for specific customers that you specify as template models.
Templates can be used by all users or a single user. If a template is available
when you create a new customer, a form appears that displays the available
customer templates. Select the template that applies to the new customer. The
field values of the template are copied to the fields for the new customer. You
can make changes to the fields and enter more information, as appropriate.
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NOTE: You can create and maintain currency codes and exchange rates in the
Exchange rates form. You can change the customer's invoice currency in the
invoice header before entering sales order lines.
1. From the Customers form, click the Edit button on the action pane
to edit fields.
2. Click the General FastTab.
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3. Select the customer group that the customer belongs to. You must
specify a customer group for each customer.
When you select the customer group, 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, including the Sales tax group
account
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NOTE: If using one-time customers, you must set up a number sequence in the
Accounts receivable parameters form in the Number sequence section. In the
General area of the Accounts receivable parameters form, select a customer's
account number that can serve as the default template for one-time customers.
Information is copied automatically when you create a one-time supplier in the
Customers form.
The system automatically creates a one-time customer when you create a sales
order for a one-time customer. Except for the customer number, the one-time
customer inherits all base information from the customer number specified in this
field. You must specify the one-time customer number sequence in the Number
sequences form. If you do not use a one-time customer, leave the Default
customer number blank.
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2. Select the Mandatory credit limit check box to check for exceeded
credit limits and, if found, to display an error message.
3. Enter in the Credit rating field, enter the credit rating of the
customer. It is used only for statistical purposes.
4. Enter in the Credit limit field, enter the maximum outstanding
amount allowed in the balance of the customer's account. This
amount is always stated in the default currency.
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.
NOTE: Configure the system to require identification in the Credit rating area of
the Accounts receivable parameters form.
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• Collections contact
• Include interest charges
• Exclude collections fees
• Terms of payment
• Method of payment
• Payment specification
• Payment schedule
• Payment day
• Cash discount
• Bank account
• Bank account number
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Chapter 11: Accounts Receivable Setup
Contoso has begun working with a new customer, Adventure Works. Arnie, the
Accounts Receivable Clerk, must set up this new customer. The following details
apply:
Option Value
Customer group Major
Credit limit 10,000 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.
Step by Step
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Chapter 11: Accounts Receivable Setup
Summary
Payment options in Microsoft Dynamics AX are flexible to accommodate
different business processes. Using Accounts Receivable you can do the
following:
• 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 Percentage allocation of the actual invoice amount
o Allocation based on a fixed number of installments
o Combined amounts and percentages of the invoice amount
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4. 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
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1.
2.
3.
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Solutions
Test Your Knowledge
1. What is necessary to set up a payment schedule? (Select all that apply)
( ) Number of schedules
(√) Number of installments
(√) Amount of each installment
(√) Due date of each installment
4. 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
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Chapter 12: Accounts Receivable Daily Procedures
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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• 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.
Standard invoice:
• The user specifies the item number, and the system posts the item-
related 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.
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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NOTE: The Invoice field is updated automatically when the invoice posts.
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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1. Click Accounts receivable > Setup > Free text invoice templates.
2. Click New.
3. Enter the Template name and Description.
4. 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.
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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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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.
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.
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In addition, you can use two types of form notes specifically for Free text
invoices:
To open these form notes, click Accounts receivable, then click Setup, click
Forms, and then click Form notes.
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Scenario
Susan, the Order Processor at Contoso, has taken an order from Forest
Wholesales for consulting design, which she invoices to the customer without
creating a sales order. Your task is to help Susan complete the order by creating a
free text invoice for the consulting, and then posting the invoice.
Use the following information to create an invoice for the sale of the design
services in Accounts Receivable.
Enter the line for the invoice. Use the following information to create line
information:
Challenge Yourself!
Use any of the methods described in this section to create and post the free text
invoice.
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Step by Step
Perform the following steps to complete the exercise and set up the Accounts
Receivable Free Text Invoice:
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Payment Journals
After you register, approve, and post the invoice, the customer must pay for the
invoice. When you receive a customer payment, use the payment journal to
register it.
Payment Proposal
When customers make payments, you must create and post them in a payment
journal, both to record the payments to the customer's accounts, and also to
ensure that you can reconcile the Accounts Receivable information with General
Ledger information. Use a payment proposal as an effective way to select the
payment records and create the payment journal. The payment proposal does the
following:
• Searches for payment lines that either are due or have a maximum
date for receiving a cash discount.
• Checks open and approved customer transactions.
Only transactions with either a due date or a cash discount date are included in
the search. As soon as the system generates payment lines, you can edit them in
the payment journal.
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HINT: Select the Link check box to synchronize the two parts of the form. When
selected, the Open transactions pane shows only transactions related to the
selected Payment proposal pane line. The open transactions displayed are
updated when they move between Payment proposal pane lines.
NOTE: Occasionally, the customer allows the company to withdraw the payment
directly from their bank accounts. In such a case, click the Functions button,
then click Generate payments. You must do this before you post.
NOTE: You can use workflow with payment journals. Some buttons in the form
are unavailable when a journal has been submitted for workflow journal
approval.
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4. Select the Mark check box to select the invoices to mark it for
payment. Mark one or several invoices for settlement.
NOTE: You must enter a Customer account and Currency to use the Settlements
option.
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1. Select the Payment proposal check box and close the form when the
invoices are marked for payment. When you close the Open
transaction editing form, the Customer payment proposal form
opens and shows the payment proposal and the open transactions.
2. Modify the transactions in the Customer payment proposal form.
Click Transfer to move the payment suggestions to the payment
journal lines to make the payment. A confirmation form opens. Click
OK to confirm and continue.
3. Verify that the information is correct in the Journal voucher form.
4. Optionally validate the journal lines by clicking the Validate button
and clicking Validate.
5. Click the Post button, and then click Post to post the payment
journal. These actions post the payments to the customer records,
update the General Ledger with the voucher transactions, and
indicate the customer invoice transactions as settled.
NOTE: Occasionally, the customer allows the company to withdraw the payment
directly from their bank accounts. In such a case, click the Functions button,
then click Generate payments. You must do this before you post.
NOTE: Some fields in the journal contain default values that the Journal names
form assigns to the journal. These fields usually are not edited by the user.
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1. In the Invoice field, enter or select the invoice that you have received
a payment for. Customer information displays automatically.
2. Click Validate to validate the payment line, and then click Post, and
click Post again.
1. In the Account field, enter the customer account that you have
received a payment for.
2. Move to the Invoice field and click the arrow. All open invoices for
the customer will display. If centralized payments are used, two tabs
show. One tab for the current company and one for all companies in
the centralized payments boundaries.
3. For a known customer and a single invoice, select the invoice that
you want. You can also select multiple invoices.
4. Click Validate to validate the payment line or lines, and then click
Post, and click Post again.
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You also may view customer transaction records across multiple companies and
define other aspects of the payment line, such as Method of payment, Offset
account type, etc.
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1. Select the company, and then select the customer in the Customer
field. In the Select to pay pane of the form, all open transactions for
the selected customer will display.
2. Select the Mark check box next to each transaction that you want to
settle against this payment.
3. To save the marked lines in the Payment journal and remain in the
form, click the Save in journal button.
4. To save the marked lines in the Payment journal and close the
form, click the Close button. The form will close, and the Journal
form will display. You may then continue working in the Payment
journal.
NOTE: To clear any transactions marked for payment in the Enter customer
payments form, click the Clear button.
HINT: To view the details of the selected customer transaction, click the Show
document button.
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Scenario
Contoso has received a payment from Sunflower Shopping Mall. Use the
following information to create a payment journal in Accounts Receivable.
Challenge Yourself!
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:
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If Then
The amount paid is The system settles the invoice and the payment
more than the transaction remains open for the amount by which
amount due the payment exceeded the amount due. NOTE: If
the over/underpayment feature is being used it can
force them to be equal and close the transaction.
The payment The system subtracts the payment from the amount
amount is less than due and the invoice remains open
the amount due
The amount paid The system generates a payment transaction for the
equals the amount payment amount, and then closes the transaction
due
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NOTE: A red icon shows in the Is marked check box if a transaction already is
selected for settlement. When the transactions settle, they disappear from this
form and transfer to Closed-transaction editing.
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NOTE: You can also reorganize transactions in the general journal and in
payment journals.
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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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Scenario
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!
Step by Step
Create the invoice:
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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.
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.
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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:
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.
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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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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.
Step by Step
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Reimburse a Customer
Consider the following when you work with the reimbursement feature:
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.
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.
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Scenario
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!
Step by Step
Set the Minimum reimbursement value:
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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. For
example, auditors or managers frequently want to see reasons recorded for
various transactions. Using standard reason codes instead of transaction text
gives users guidelines on what codes to select from, and provides management
and auditors the ability to analyze transaction history by specific reason. Reason
codes can be used with:
• Fixed assets
• General ledger
• Accounts payable
• Accounts receivable
• Bank
To require reason codes for receivable transactions, 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):
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Reason Comments
Enter a reason comment in the same forms where you select reason codes.
Reason comments are optional, and although you can set up default reason
comments for each reason code, no setup is required.
If you select a reason code for a transaction, the default comment that is set up in
the Reasons form displays in the Reason comment field. You can change the
default reason comment. If you type a reason comment first and then select a
reason code, the typed reason comment is not replaced.
Print Management
Print management works with Accounts Receivable and Accounts Payable. You
can define print management original records, copy records, and conditional
settings at the module, account, or transaction level, so that you can control
various activities that include the following:
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The print management setup information for each document type is defined in a
hierarchical list that consists of modules, accounts, and transactions. At each
level of the hierarchy, define print management original records, copy records,
and settings for any of the available document types. When you generate a
document, it prints according to the effective original record and effective copy
records. 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, or it can override
an inherited record that has the same name.
You can set up a default setting for each original record or copy record that
specifies the footer text, printer destination, and number of identical copies to
print. 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. If you do not select this field, a document prints only if a query for an
associated conditional setting successfully returns results.
Setting up print management at the module level requires the least amount of
setup and minimizes the maintenance work when settings change, such as
installation of a new printer. However, if business needs require, settings for
specific accounts or individual transactions can override module settings.
NOTE: You can use print management settings when you reprint documents.
Select Preview/Print > Use print management to reprint a document that uses
the effective print management settings.
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Scenario
Simon, the System Implementer, has collected information about the printing of
sales invoices. Contoso uses the same invoice for all types of customer orders.
Therefore, Simon specifies that the setup applies not only to the Sales order
invoice, but also to the free text invoice and project invoice.
Contoso requires five copies. Simon enters the footer information for each copy,
which is as follows:
For each copy, Simon specifies the intended audience so that each document
prints in the appropriate language. For the Customer and Remittance Copy,
Simon enters the footer text for multiple languages so that all the text on the
invoice prints with the language appropriate to the customer.
Arnie in Accounts Receivable prints all the copies; thus, Simon specifies that
copies 1, 3, 4, and 5 must print to Arnie's printer. He sets up copy 2 to print to the
Archive.
Simon finishes setting up all the documents for Contoso and then begins setting
up Contoso Europe. For this company, the customer invoice documents are
unique. Simon sets up the footer text, printing order, sort order, and printer
destination for each document.
Simon sets up the Sales order Packing Slip document next. Because Contoso
Europe has several warehouses, he must set up copies for each warehouse. For
Warehouse A1, he specifies three copies, footer text, printing order, sort order,
and printer destination. For Warehouse A2, he specifies four copies, footer text,
order in which the copies print, sort order, and printer destination. The
appropriate document and copies print automatically based on the warehouse
location for each Sales order line.
When Simon finishes setting up the documents for all the companies, 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.
Prakash, the Project Manager at Contoso, receives Simon's e-mail and verifies
the print setup. He reviews the setup for all the documents and is satisfied that
Simon set them up correctly.
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Chapter 12: Accounts Receivable Daily Procedures
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Financials I in Microsoft Dynamics® AX 2012
Scenario
Arnie, the Accounts Receivable Coordinator, is entering a sales order for a new
customer. Because this is the first time he is selling to the customer, the terms are
cash on delivery. He must enter the order with the customer's payment terms so
that the material will be sold and delivered on time.
Arnie posts and prints the sales order, which prints a copy to Connie's printer.
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Chapter 12: Accounts Receivable Daily Procedures
Refer to the following table for the path that gives access to the print
management setup.
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Financials I in Microsoft Dynamics® AX 2012
If you post sales orders for customer accounts 1102 and 1104 with the original or
copy records and defined conditional setting, the following results will occur.
NOTE: Although conditional settings and queries provide flexibility in the print
management settings, complex queries or numerous conditional settings can
affect posting performance.
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Chapter 12: Accounts Receivable Daily Procedures
Summary
Accounts Receivable offers many advanced options including:
You can give each customer a unique credit limit. Apply the credit limits to only
customer balances or to include uninvoiced, delivered items, or even sales orders.
Decide whether the credit limit applies on the total of the sales order or if you
need to control each sales order line separately. 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. You also can stop the customer account automatically at any step
during the collection procedure.
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Financials I in Microsoft Dynamics® AX 2012
1. You can create inventory transactions that use item quantities by using Free
text invoices.
( ) True
( ) False
3. When the invoice is registered and approved, the customer must pay for the
invoice.
( ) True
( ) False
4. 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. 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
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Chapter 12: Accounts Receivable Daily Procedures
7. If the invoice and payment are not settled when you create the payment,
where can these be settled?
( ) Free text invoice
( ) Payment proposals
( ) In the Settle open transactions form
( ) In the Reverse settlements function
9. Can a settlement be reversed if the bank does not honor a payment and it has
been closed?
( ) Yes
( ) No
11. 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
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Financials I in Microsoft Dynamics® AX 2012
1.
2.
3.
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Chapter 12: Accounts Receivable Daily Procedures
Solutions
Test Your Knowledge
1. You can create inventory transactions that use item quantities by using Free
text invoices.
(•) True
( ) False
3. When the invoice is registered and approved, the customer must pay for the
invoice.
( ) True
(•) False
4. 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. 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
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Microsoft Official Training Materials for Microsoft Dynamics®
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Financials I in Microsoft Dynamics® AX 2012
7. If the invoice and payment are not settled when you create the payment,
where can these be settled?
( ) Free text invoice
( ) Payment proposals
(•) In the Settle open transactions form
( ) In the Reverse settlements function
9. Can a settlement be reversed if the bank does not honor a payment and it has
been closed?
(•) Yes
( ) No
11. 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
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