“What-If” Costing using Dynamics AX 2012 R3

Microsoft Dynamics AX offers a nice set of tools for quickly performing a “what if” analysis on the impact of price changes (labor costs, material costs, or both) on the standard cost of manufactured items with multi-level bills of materials.

A high-level summary of the process is as follows:

  1. Setup a Cost Version of type = Planning that has a Fallback Principle = Active costs
    • This allows us to define “what-if” costs where applicable, while referring back to the current standards wherever a “what-if” cost is not entered.
    • This allows us to run the what-if analysis while only having to key into the system the incremental changes
  2. Make the proposed changes to the labor rates and/or raw material costs at any level in the product structure/BOM, assigning the changes to the new “What-If” costing version.
    • Update the price in the Cost Category form to perform what-if analysis based on labor rate changes
    • Update the cost price of an item on any level of the BOM/Formula to perform what-if analysis based on material purchase price changes
  3. Run a Cost Calculation for the “What-If” costing version on the top-level FG item.

This article was written by Matthew Boese, Partner at Tridea Partners, a Gold Certified Microsoft Dynamics Partner.


Dynamics AX: Verify W-9 Received from 1099 Vendors

Microsoft Dynamics AX 2012 R3 has many features that will make your life easier! If you work in the accounts payable department processing invoices, you may want to verify that a 1099 vendor has provided their W-9 form before any invoices are posted for that vendor. AX 2012 R3 has a helpful feature which will automatically generate an infolog to alert you that a W-9 has not yet been received from a 1099 reportable vendor when an invoice is being created.

To enable the ‘Check for W-9 form’ functionality in AX 2012 R3, follow these steps:

On the Accounts payable parameters form, enable the ‘Check for W-9 form’ checkbox on the Invoice tab.

By selecting this checkbox, any newly created vendor record will automatically have the ‘Check for W-9’ checkbox enabled by default. The AP clerk who maintains vendors then has the option to deselect the field for each vendor if the infolog warning is not necessary for a particular vendor.

1099 Vendors

On the vendor record, the ‘Check for W-9’ checkbox will default as selected on the Tax 1099 tab. If the vendor has provided a W-9 form, click the ‘W-9 received’ checkbox to record it. You can attach the W-9 document to the vendor record using the Document handling functionality by clicking the ‘Attachments’ button on the Action pane.

Vendor 1099

For our example, we have not yet received a W-9 from our 1099 vendor and want an infolog generated to warn the AP clerk. We will leave the ‘W-9 received’ checkbox cleared and the ‘Check for W-9’ checkbox enabled.

Vendor 1099

Now when the AP clerk creates an invoice for a purchase order or a non-purchase order invoice journal for our 1099 vendor, an infolog is generated which warning the user that a W-9 form has not yet been received for that vendor. The AP clerk can still post the invoice or place the invoice on hold until the W-9 is received from the vendor.

1099 Vendor

For more information – check out our Webinar on 1099 Report Processing

This post was written by Robin Ellsworth, AX Application Consultant at Tridea Partners. Tridea is a leading Microsoft Dynamics provider.


The use of License Plates in Dynamics AX 2012 R3 Warehouse Management

The release of Dynamics AX 2012 R3 contained the new Warehouse Management module. One of the concepts introduced as part of this module, is the inventory dimension of license plate.  This article will outline a few specifics about this new inventory dimension.

When you enable warehouse management, it enables several new inventory dimensions. Those are Location, Inventory Status and License Plate.  These dimensions are not optional when using warehouse management.

Dynamics AX 2012 R3 Warehouse Management

The license plate inventory dimension is designed to allow you to track and move material in the warehouse by license plate numbers, typically applied to pallets. In this way, you can move a pallet that may contain many boxes of the same or different items in one transaction.  The license plate dimension can also be used to generate labels.

The warehouse management module requires that the following locations be license plate controlled:

  • Shipping Dock
  • Receiving Dock
  • Mobile Device User

To define a location as license plate controlled, you assign a location profile that has the “Use license plate tracking” box checked.

Dynamics AX 2012 R3 Warehouse Management

You can setup only these three locations to be license plate controlled, and then leave the rest of your locations, not license plate controlled.  This may be useful for implementations where you want to use mobile devices, but your warehouse isn’t complex enough or doesn’t have the volume to necessitate using license plates throughout the entire warehouse process.

If you only setup the required locations to be license plate controlled, then you can setup the mobile device menu options to generate a license plate automatically. See the purchase order receiving menu item below as an example.

Dynamics AX 2012 R3 Warehouse Management

In this example, this would cause a license plate to be automatically assigned to the incoming material, at the receiving dock. Once the material is put away, into a non-license plate controlled location, the users won’t have to transact with the license plate number until it’s time to ship the item.  When it’s time to ship, you can setup the mobile device menu item to generate a license plate automatically for shipping transaction as well.  So in this scenario, even though the license plate was generated at item receiving and item shipping, the user never needs to enter the license plate since its generated automatically by the system.  AX is generating and using the license plate, but the end users may never notice it.

In summary, the new warehouse management module in AX 2012 R3 is powerful and robust. The additional required inventory dimensions may seem like they add a lot of overhead, but if you’ve got an implementation that is more simplistic, you can make decisions during the setup to reduce the work for the end user.

For more information on the warehouse management module, there is an implementation guide released by Microsoft that will walk you through many of the steps of configuration, and can be found here: http://www.microsoft.com/en-us/download/details.aspx?id=43660

This post was written by Jason Federspiel, Senior AX Functional Consultant at Tridea Partners. Tridea is a leading Microsoft Dynamics provider. www.trideapartners.com