Advanced Rule Structures in Dynamics AX

Some customers have very complicated business rules when it comes to their accounting, but end up not enforcing them in an effort to simplify the chart of accounts.  In many cases the accounting group will end up reviewing and reclassing transactions or preparing custom reports at the end of the month instead of enforcing the rules at the time the transactions are recorded.  Using advanced account structures in Dynamics AX can help users setup and enforce those rules to reduce the accounting rework at month end.

So what is an account structure?  Essentially the account structure is telling AX the valid combinations of main accounts and dimensions.  For example the main account “601300 Advertising Expense” is only valid with the “Department” financial dimension of “022 – Sales & Marketing”.

In this example, the advanced account structure comes into to play when you have a need to further define your advertising expenses into “Print”, “Radio”, “Online”, etc.  Rather than creating three or more new main accounts you can easily create a new dimension of “Adv. Expense” and create an advanced rule to make it required only when the advertising expense main account is used.

Setting up the advanced structure is not too difficult, you’re essentially creating a separate structure and applying it on top of the basic account structure.

After you’ve created your new financial dimension, navigate to General ledger/Setup/Chart of accounts/Advanced rule structures and click new to create a new advanced structure.  In this case we’ve named it “Advertising” and added the new financial dimension we created called “AdvExpense”.

AdvExpense Dynamics  AX

 

Next you’ll need to add the advanced rule to your existing account structure.  In the example below, we have our marketing related main accounts that are only valid with the marketing department, “022”.  In addition to that, we’ve clicked on “Advanced rule”, clicked “New” and added the advertising rule we created earlier.  Be sure to add the filter that controls when the advanced rule is used, in this case when the main account is “601300” a department and advertising expense type will be required.

AX Advance Rule

To complete the setup, be sure the advanced rule and account structures have been activated, and lastly, add the account structure to your ledger and you’re all set!

This post was written by Matthew Caffrey, AX Application Consultant at Tridea Partners. Tridea is a leading Microsoft Dynamics provider serving CA, AZ, UT, CO, NH and surrounding regions.