Perhaps some of the most exciting new features that are now available with the release of Dynamics AX2012 R3 are those are in the area of warehouse management. Dynamics AX now has true warehouse automation (bar-code scanning) without the need to utilize 3rd party software. The ability to use radio frequency handheld devices for warehousing transactions is now out-of-the-box functionality. Warehouse workers can use handheld scanning devices for inbound and outbound processes, as well as key inventory and production control processes. Furthermore, the functionality comes to us as a mature, well-proven solution. This is because Microsoft has folded into the core AX product the warehouse management functionality that was in use for years as a 3rd party product that was developed by the ISV Blue Horseshoe. Many partners and customers in the Dynamics AX channel can attest to the extensive and solid history that the Blue Horseshoe product has with Dynamics AX, thus alleviating any concerns about the maturity of this set of functionality. Some of the processes supported by the new warehouse management functionality are:
Radio Frequency Handheld Scanners for receiving, put-away, picking, staging, loading, inventory adjustments, and production
Real-time cycle counting
Workflow enabled inbound processes and outbound processes
Positive Pay (commonly called SafePay) functionality from Microsoft Dynamics AX 2012 allows for the transmission of an electronic file to the bank to provide a list of paper checks which have been approved for payment. The bank then adds this list of sanctioned checks to their master file. Positive Pay for Dynamics AX 2012 process ensures that checks which are fraudulent will not be paid. The functionality is available out-of-the-box and multiple electronic file types are supported.
Once the functionality has been set up, the user need only generate the file by selecting the file format, company, bank account and the cut-off date for the checks.
The positive pay file is then generated and submitted electronically to the bank. A simple inquiry can be run to view the Positive Pay files which have been generated and the details of each file.
If the file needs to be corrected, it can be recalled and re-submitted to the bank. If the bank sends a confirmation number to confirm that the file was received and processed, the confirmation number can be entered on the Positive Pay line.
With the latest release of AX 2012 R2 Cumulative Update 7, AX 2012 now offers separate Positive Pay statements for Payroll bank accounts.
This post was written by Robin Ellsworth, AX Application Consultant at Tridea Partners. Tridea is a Microsoft Dynamics AX partner serving Southern California, Utah, Colorado and surrounding regions.
Reconciling a bank statement with all the bank account transactions created in a period can be a daunting and cumbersome task. Microsoft Dynamics AX 2012 provides easy to use functionality which makes reconciling a bank account a quick and painless exercise.
To reconcile a bank account, begin in the Cash and Bank Management functional area by following navigation path:
Cash and bank management > Common > Bank accounts
Select the bank account and click the Account Reconciliation button to open the Bank statement form.
Enter a Bank statement date, a Bank statement name and the ending balance of the bank account as it appears on the statement received from the bank.
Click the Transactions button to open the Account Reconciliation form.
The top portion of the Account reconciliation form lists the transactions which have not yet been reconciled.
Mark each of the transactions on the bank statement in AX by clicking the Cleared checkbox on each transaction line.
As you mark the transactions as ‘cleared’, the bottom portion of the form shows the sum of the transactions selected grouped by Bank transaction group.
The Unreconciled field also adjusts automatically as you mark transactions as cleared and shows the remaining amount to be reconciled.
If you wish to select the Cleared checkbox for all of the lines within an interval of check numbers on the bank statement, click the Mark check interval button. Select the first check number and last check number in the sequence. All of the lines associated with this check sequence will then be selected as ‘Cleared’.
Microsoft Dynamics AX 2012 offers multiple ways to simplify and expedite the procurement process. One of the many helpful features included in the procurement and sourcing module is the ability for purchase orders to be created automatically upon purchase requisition approval.
Two options are offered in the creation of a purchase order from a purchase requisition: manual or automatic. For a purchase order to be created manually, the purchase requisition must first move through the purchase requisition workflow approval process. This process varies from business to business. Once the purchase requisition has been approved, the purchasing agent navigates to the ‘Release approved purchase requisitions’ form, chooses the approved purchase requisition, and selects the ‘New Purchase Order’ button. This process can be time-consuming if your business handles numerous purchase requests.
Automatic creation of purchase orders is set up by navigating to the Procurement and Sourcing Purchasing Policies form.
Use navigation path: Procurement and Sourcing>Setup>Policies>Purchasing policies
-Edit the current purchasing policy or create a new purchasing policy
-Under Policy rule type, choose Purchase order creation and demand consolidation
-Select an existing policy rule (by double-clicking on the policy rule line) or create a new policy rule (by clicking on the ‘Create policy rule’ button)
This opens the Purchase order creation and demand consolidation rule form:
-Choose Manual purchase order creation
-Click the ‘Automatically create purchase orders’ radio button to select it
Reporting in multicurrency in Microsoft Dynamics AX 2012 is achieved through the use of currency translation within the consolidations function. For example, a subsidiary operating in functional and reporting currency of EUR for local statutory requirements, but required to report in USD for its parent company in the US.
First a consolidation legal entity must be created with functional and reporting currency of USD:
a) Navigate to Organization administration>Setup>Legal Entity: check “Use for financial consolidation process”
b) Navigate to General Ledger>Setup>Ledger to configure the Ledger for the consolidation company;
Assign the same COA and calendar as that of the subsidiary, assign USD for functional and reporting currencies.
c) Navigate to General Ledger>Setup>Posting>Accounts for automatic transactions
Define the main account for the transaction types “Profit and loss account for consolidations differences and “Balance account for consolidation differences.” These are the accounts where the exchange rate adjustment will be posted.
Exchange rate types for average, period end, and historical rates must be defined between USD and EUR:
d) Navigate to General Ledger >Setup>Currency>Exchange rate types
Create rate types of average, period end and historical. Enter the related exchange rates for each type by selecting the “Exchange rate” button. These exchange rate types are assigned to a range of main accounts in consolidation for balance sheet, income statement and equity in order to achieve currency conversion results in accordance with GAAP.
With the consolidation company created, the consolidation and currency translation process must be configured.
e) Navigate to General Ledger>Periodic>Consolidate>Consolidate [Online]
Criteria Tab> select the account range for all main accounts to be translated and consolidated, the period , check include actuals and include budgets if budgets exist.
Financials Dimension Tab> select the financial dimensions to be consolidated
Legal Entities Tab> Select the subsidiary EUR and which account, Balance or P&L, for the exchange rate adjustment. This correlates to the setup from step c) above
Description tab> this description will be the default text for the voucher created in the consolidation
Elimination tab is utilized for the processing of eliminating transactions which is not a requirement for currency translation in consolidation and can be left blank
Currency translation tab> define which currency exchange rates will be utilizes with various main accounts.
Enter the subsidiary name (source legal entity name), the functional currency (source accounting currency) the main account range (from account /to account) and the associated exchange rate type to be applied to the local currency during the consolidation process (Exchange rate type).
For each account range in 1 above, select the Exchange rate date which indicates if the exchange rate should be based on the transaction date or the date of the consolidation.
A specific rate can also be used by entering the specific exchange rate in the Exchange rate field. This will override all other rate selections.
Run consolidation by selecting “Ok”.
To view the consolidation results navigate to General Ledger>Inquiries>Consolidations. Select “Transactions” to view the voucher entries created by the consolidation. Results can also be reviewed through the numerous general ledger standard reports such as the trial balance and ledger transaction list.