AX2009 Financials - 1

MICROSOFT DYNAMICS AX 2009
COURSE 80016: FINANCIALS I
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Last Revision: June 2008 The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication. This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation. Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property.
2008 Microsoft Corporation. All rights reserved. Microsoft Dynamics, AX 2009 are either trademarks or registered trademarks of Microsoft Corporation or Great Plains Software, Inc. or their affiliates in the United States and/or other countries. Great Plains Software, Inc. is a subsidiary of Microsoft Corporation. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
This course content is designed for Microsoft Dynamics 2009 formerly a part of Microsoft Business Solutions.
Table of Contents Introduction to Financials I in Microsoft Dynamics AX 2009 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 Periods and Fiscal Year Setup ......................................................................... 1-12 Date Intervals ................................................................................................... 1-19 Reason Codes .................................................................................................. 1-24 Dimensions ....................................................................................................... 1-27 Dimension Focus .............................................................................................. 1-33 Generated Allocations ...................................................................................... 1-38 Summary .......................................................................................................... 1-48 Quick Interaction: Lessons Learned ................................................................. 1-49 Solutions ........................................................................................................... 1-50
Chapter 2: Chart of Accounts Setup
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Objectives ........................................................................................................... 2-1 Introduction ......................................................................................................... 2-1 Ledger Account Categories ................................................................................ 2-2 Chart of Accounts ............................................................................................... 2-4 Account Allocation Terms ................................................................................. 2-14 System Accounts .............................................................................................. 2-18 Inquiries and Reports Related to the Chart of Accounts .................................. 2-20 Summary .......................................................................................................... 2-27 Test Your Knowledge ....................................................................................... 2-28 Quick Interaction: Lessons Learned ................................................................. 2-29 Solutions ........................................................................................................... 2-30
Chapter 3: Journal Setup
3-1
Objectives ........................................................................................................... 3-1 Introduction ......................................................................................................... 3-1 Journal Setup ..................................................................................................... 3-2 Journal Controls ............................................................................................... 3-10 Journal Texts .................................................................................................... 3-11 Balance Control Accounts ................................................................................ 3-12 General Ledger Parameters ............................................................................. 3-13 Set Up Journals ................................................................................................ 3-15 Summary .......................................................................................................... 3-17 Test Your Knowledge ....................................................................................... 3-18 Quick Interaction: Lessons Learned ................................................................. 3-19 Solutions ........................................................................................................... 3-20
Chapter 4: Financial Features
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Objectives ........................................................................................................... 4-1
Financials I in Microsoft Dynamics AX 2009

Introduction ......................................................................................................... 4-1 Reason Codes .................................................................................................... 4-2 Fill Utility ............................................................................................................. 4-7 Summary ............................................................................................................ 4-9 Quick Interaction: Lessons Learned ................................................................. 4-10 Solutions ........................................................................................................... 4-11
Chapter 5: General Ledger Daily Procedures
5-1
Objectives ........................................................................................................... 5-1 Introduction ......................................................................................................... 5-1 General Ledger Journals .................................................................................... 5-2 Enter General Ledger Transactions ................................................................... 5-4 Lab 5.1 - Daily Transactions ............................................................................... 5-9 Lab 5.2 - Daily Transactions with Dimensions.................................................. 5-11 Lab 5.3 - Daily Transactions with Balance Control ........................................... 5-14 Posting Multiple Journals ................................................................................. 5-16 Lab 5.4 - Post All Unposted General Journals ................................................. 5-19 Approval Journals ............................................................................................. 5-20 Example: Gathering Data For an Approval Journal .......................................... 5-25 Voucher Templates .......................................................................................... 5-26 Periodic Journals .............................................................................................. 5-29 Lab 5.5 - Entering Periodic Transactions ......................................................... 5-34 General Ledger Transaction Reversal.............................................................. 5-37 Reversing Entries - GL ..................................................................................... 5-40 Inquire and View Reports on Daily Journal Transactions ................................. 5-43 Summary .......................................................................................................... 5-49 Quick Interaction: Lessons Learned ................................................................. 5-50 Solutions ........................................................................................................... 5-51
Chapter 6: Sales Tax Setup
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Objectives ........................................................................................................... 6-1 Introduction ......................................................................................................... 6-1 Sales Tax Overview ........................................................................................... 6-2 Ledger Posting Groups ...................................................................................... 6-3 Lab 6.1 - Create a Ledger Posting Group .......................................................... 6-9 Sales Tax Authorities ....................................................................................... 6-11 Lab 6.2 - Create a Sales Tax Authority ............................................................ 6-14 Lab 6.3 - Create and Assign a Vendor to the Sales Tax Authority ................... 6-15 Sales Tax Settlement Periods .......................................................................... 6-17 Lab 6.4 - Setup of Sales Tax Settlements ........................................................ 6-21 Sales Tax Codes .............................................................................................. 6-23 Sales Tax Codes Intervals................................................................................ 6-29 Lab 6.5 - Set Up Sales Tax Codes Intervals .................................................... 6-34 Sales Tax Groups ............................................................................................. 6-36 Item Sales Tax Groups ..................................................................................... 6-41 Sales Tax Jurisdictions ..................................................................................... 6-43 Lab 6.6 - Comprehensive Setup of Sales Tax .................................................. 6-46 Lab 6.7 - Including Sales Tax in Journal Amounts ........................................... 6-53 Sales Tax Transactions .................................................................................... 6-54 Sales Tax Exemption ....................................................................................... 6-60
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Table of Contents
Lab 6.8 - EU 115 Sales Tax Directive .............................................................. 6-63 Withholding Sales Tax ...................................................................................... 6-66 Summary .......................................................................................................... 6-69 Quick Interaction: Lessons Learned ................................................................. 6-70 Solutions ........................................................................................................... 6-71
Chapter 7: Bank Management Setup
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Objectives ........................................................................................................... 7-1 Introduction ......................................................................................................... 7-1 Scenario ............................................................................................................. 7-2 Bank Transaction Types ..................................................................................... 7-2 Bank Transaction Groups ................................................................................... 7-4 Lab 7.1 - Create Bank Transaction Types and Bank Transaction Groups ......... 7-6 Bank Management Parameters .......................................................................... 7-8 Payment Purpose Codes ................................................................................... 7-9 Bank Groups .................................................................................................... 7-10 Bank Accounts ................................................................................................. 7-11 Create a Bank Group and Bank Account ......................................................... 7-16 Check Layout ................................................................................................... 7-18 Lab 7.2 - Define a Check Layout ...................................................................... 7-24 Summary .......................................................................................................... 7-25 Test Your Knowledge ....................................................................................... 7-26 Quick Interaction: Lessons Learned ................................................................. 7-27 Solutions ........................................................................................................... 7-28
Chapter 8: Accounts Payable Setup
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Objectives ........................................................................................................... 8-1 Introduction ......................................................................................................... 8-1 Payment Schedule ............................................................................................. 8-2 Terms of Payment .............................................................................................. 8-5 Payment Days .................................................................................................... 8-9 Lab 8.1 - Terms of Payment ............................................................................. 8-11 Cash Discount .................................................................................................. 8-12 Payment Fee .................................................................................................... 8-17 Methods of Payment ........................................................................................ 8-22 Lab 8.2 - Method of Payment, Terms of Payment, and Cash Discount ........... 8-27 Vendor Groups ................................................................................................. 8-29 Lab 8.3 - Create a Vendor Group ..................................................................... 8-34 Accounts Payable Posting Profiles ................................................................... 8-35 Lab 8.4 - Vendor Posting Profile ...................................................................... 8-38 Accounts Payable Vendors .............................................................................. 8-40 Lab 8.5 - Vendors ............................................................................................. 8-47 Summary .......................................................................................................... 8-49 Quick Interaction: Lessons Learned ................................................................. 8-50 Solutions ........................................................................................................... 8-51
Chapter 9: Accounts Payable Daily Procedures
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Objectives ........................................................................................................... 9-1 Introduction ......................................................................................................... 9-1 Invoice Journals in Accounts Payable ................................................................ 9-2
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Invoice Register .................................................................................................. 9-2 Invoice Approval Journal .................................................................................. 9-13 Lab 9.1 - Register an Invoice ........................................................................... 9-17 Invoice Pool Excluding Posting ........................................................................ 9-19 Lab 9.2 - Invoice Pool Excl. Posting ................................................................. 9-21 Invoice Journal ................................................................................................. 9-23 Lab 9.3: Invoice Journal ................................................................................... 9-25 Voucher Template ............................................................................................ 9-26 Payment Journals ............................................................................................. 9-28 Lab 9.4 - Payment Journals ............................................................................. 9-36 Invoice Matching .............................................................................................. 9-40 Edit Open Transactions .................................................................................... 9-46 Reverse a Closed Transaction ......................................................................... 9-48 Lab 9.5 - Reverse a Closed Transaction .......................................................... 9-50 Print Management ............................................................................................ 9-51 Print Management ............................................................................................ 9-51 Summary .......................................................................................................... 9-57 Test Your Knowledge ....................................................................................... 9-58 Quick Interaction: Lessons Learned ................................................................. 9-59 Solutions ........................................................................................................... 9-60
Chapter 10: Accounts Receivable Setup
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Objectives ......................................................................................................... 10-1 Introduction ....................................................................................................... 10-1 Payment Schedule ........................................................................................... 10-2 Terms of Payment ............................................................................................ 10-5 Payment Days .................................................................................................. 10-8 Lab 10.1 - Terms of Payment ......................................................................... 10-10 Cash Discount ................................................................................................ 10-11 Payment Fee .................................................................................................. 10-14 Methods of Payment ...................................................................................... 10-18 Lab 10.2 - Set up a Method of Payment ......................................................... 10-22 Customer Groups ........................................................................................... 10-23 Lab 10.3 - Create a Customer Group ............................................................. 10-27 Accounts Receivable Posting Profiles ............................................................ 10-28 Lab10.4 - Set Up a Customer Posting Profile................................................. 10-31 Accounts Receivable Customers.................................................................... 10-33 Lab 10.5 - Create a Customer ........................................................................ 10-39 Summary ........................................................................................................ 10-40 Test Your Knowledge ..................................................................................... 10-41 Quick Interaction: Lessons Learned ............................................................... 10-42 Solutions ......................................................................................................... 10-43
Chapter 11: Accounts Receivable Daily Procedures
11-1
Objectives ......................................................................................................... 11-1 Introduction ....................................................................................................... 11-1 Free Text Invoice - Description and Usage ...................................................... 11-2 Lab 11.1 - Create Free Text Invoices ............................................................... 11-8 Payment Journals ........................................................................................... 11-10
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Table of Contents
Lab 11.2 - Settlements - Entering an Accounts Receivable Payment Journal (Cash Receipt) ............................................................................................... 11-21 Edit Open Transactions .................................................................................. 11-23 Lab 11.3 - Edit Open Transactions ................................................................. 11-28 Placing an Accounts Receivable Transaction on Hold ................................... 11-30 Reverse Settlements ...................................................................................... 11-31 Lab 11.4 - Reverse a Settlement .................................................................... 11-33 Reimburse a Customer .................................................................................. 11-34 Lab 11.5 - Reimburse a Customer ................................................................. 11-36 Reason Codes ................................................................................................ 11-38 Print Management - AR .................................................................................. 11-39 Summary ........................................................................................................ 11-47 Quick Interaction: Lessons Learned ............................................................... 11-48 Solutions ......................................................................................................... 11-49
Chapter 12: Bank Management Daily Procedures
12-1
Objectives ......................................................................................................... 12-1 Introduction ....................................................................................................... 12-1 Scenario ........................................................................................................... 12-2 Create Checks .................................................................................................. 12-2 Delete a Check ................................................................................................. 12-4 Lab 12.1 - Create and Delete a Check ............................................................. 12-6 Deposit Slips .................................................................................................... 12-7 Lab 12.2 - Create a Deposit Slip .................................................................... 12-11 Void Unposted Checks ................................................................................... 12-13 Lab12.3 - Void Unposted Checks ................................................................... 12-14 Refund Checks ............................................................................................... 12-16 Lab 12.4 - Check Refund ............................................................................... 12-18 Bank Remittance ............................................................................................ 12-19 Payment Reversal .......................................................................................... 12-20 Reconcile a Bank Account ............................................................................. 12-21 Summary ........................................................................................................ 12-25 Test Your Knowledge ..................................................................................... 12-26 Quick Interaction: Lessons Learned ............................................................... 12-27
Appendix A: Reports and Inquiries
A-1
Sales Tax Reports ............................................................................................. A-1 Accounts Payable Reports ................................................................................ A-6 Accounts Receivable Inquiries ........................................................................ A-18 Accounts Receivable Reports ......................................................................... A-20 Bank Management Inquiries ............................................................................ A-28 Bank Management Reports ............................................................................. A-30 Quick Interaction: Lessons Learned ................................................................ A-39
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Introduction
INTRODUCTION TO FINANCIALS I IN MICROSOFT DYNAMICS AX 2009

Welcome
We know training is a vital component of retaining the value of your Microsoft Dynamics AX 2009 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:
Microsoft Dynamics Courseware

The Microsoft Dynamics Courseware consists of detailed training manuals, designed from a training perspective. These manuals include advanced topics as well as training objectives, exercises, interactions and quizzes. Look for a complete list of manuals available for purchase on the Microsoft Dynamics website: www.microsoft.com/Dynamics.
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Microsoft Dynamics Courseware Contents

Test Your Skills
Within the Microsoft Dynamics Training Materials you find a variety of different exercises. These exercises are offered in three levels to accommodate the variety of knowledge and expertise of each student. We suggest you try the level three exercises first, if you need help completing the task look to the information in the level two exercises. If you need further assistance each step of the task is outlined in the level one exercise.
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.
Need a Little Help?

Level 2 exercises are designed to challenge students, while providing some assistance. These exercises do not provide step by step instructions, however, do provide you with helpful hints and more information to complete the exercise.
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.
Quick Interaction: Lessons Learned

At the end of each chapter within the Microsoft Dynamics Training Material, you find a Quick Interaction: Lessons Learned page. This interaction is designed to provide the student with a moment to reflect on the material they have learned. By outlining three key points from the chapter, the student is maximizing knowledge retention, and providing themselves with an excellent resource for reviewing key points after class.
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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? List three main objectives below. 1.
2.
3.
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CHAPTER 1: GENERAL LEDGER SETUP

Objectives
The objectives are: Set up Currencies and Exchange Rates Create Periods in a new fiscal year Create Date intervals Create, modify, and delete reason codes Create a Dimension Value Create a Dimension Focus Set up allocation rules Contrast the various allocation methods
Introduction
A general ledger is a formal ledger that contains a companys accounting records in Microsoft Dynamics AX 2009, and includes the financial accounts and statements. Use the General Ledger to set up currencies and exchange rates. Microsoft Dynamics AX 2009 offers extensive functionality with multicurrency handling so you can record transactions in various currencies and report in parallel currencies. The General Ledger Setup course explains how to work with an infinite number of dimensions with various modules in Microsoft Dynamics AX 2009. You can use dimension focuses to track profits, cost centers, and other important financial information. The General Ledger Setup course describes the various components of an allocation rule and the purpose of each allocation method.
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Currency and Exchange Rate Setup

You can use currencies in Microsoft Dynamics AX 2009 to record transactions. If a company operates with multiple currencies because it trades with foreign entities, Microsoft Dynamics AX 2009 offers extensive functionality on multicurrency. A default currency always must be set up for a company. Use the Exchange rates form to set up currencies with corresponding exchange rates.
FIGURE 1.1 EXCHANGE RATES FORM
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Procedure: Create a Currency
Follow these steps to set up a currency. 1. To access the Exchange rates form, click General ledger, click Setup, and then click Exchange rates. 2. Press CTRL+N to create a new record. 3. Enter the currency code in the Currency field on the Overview tab. This field can only contain up to three characters. Currency code examples include USD for U.S. dollar, EUR for Euro, and CAD for Canadian dollar. 4. Enter the currency name in the Name field. The currency name appears on printed checks and should be descriptive, such as U.S. dollars, Danish kroner, or Swiss francs. 5. Enter the ISO currency code in the ISO currency code field. The ISO currency code is provided by the International Organization for Standardization. 6. Enter a symbol for the currency in the Symbol field to add clarity to reports and inquiries. Because some currencies do not have a symbol, this field is not required.
Procedure: Select the Default Company Currency

Follow these steps to designate the company currencies. 1. To access the Company information form, click Basic, click Setup, and then click Company Information. 2. Click the Other tab. 3. Select the default company currency in the Currency field. 4. After you create an additional currency, you can select a secondary reporting currency in the Secondary currency field. A company's business accounts can be kept in two parallel currencies for reporting. Microsoft Dynamics AX 2009 automatically converts all transactions into a secondary currency. In reports, results can be viewed in both the company currency and secondary currency.
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NOTE: Default currencies can be set up on many forms in Microsoft Dynamics AX 2009, for example, on vendors, customers, or journal names.
FIGURE 1.2 COMPANY INFORMATION FORM, OTHER TAB
Procedure: Select Exchange Rate Units

Follow these steps to set the number of units. 1. To access the General ledger parameters form, click General Ledger, click Setup, and then click Parameters. 2. From the Ledger tab, select the number of units the exchange rate system is based on in the Express exchange rate field. Typically the system is based on either one unit or 100 units. If the Express exchange rate field is set to 100 units, the exchange rate should specify the equivalent of 100 units of the foreign currency. For example, if the company currency is U.S. dollars and the foreign currency is Canadian dollars, the exchange rate should specify how many U.S. dollars equal 100 Canadian dollars.
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NOTE: In the Exchange rates form, the exchange rate for the company currency is changed automatically according to the Express exchange rate specified in the General Ledger parameters form.
FIGURE 1.3 GENERAL LEDGER PARAMETERS FORM
Procedure: Create Additional Currencies and Exchange Rates

If a company trades with multiple currencies, follow these steps to set up the additional currencies and their corresponding exchange rates. 1. From the Exchange rates form, create the additional currencies as described in the Procedure: Create a Currency topic. 2. Enter a start date in the Start date field, on the Exchange rate tab in the lower pane of the form. Because the same currency can have several rates, the posting date determines the rate applied.
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For example, an exchange rate is entered on January 1, and another exchange rate is entered on February 1. If a sales order is invoiced on January 15, the exchange rate from January 1 is used to calculate the invoice amount. If an exchange adjustment is run on February 2, however, the rate from February is used as an adjustment. The rate is based on the date that is entered in the Date of rate field when the exchange rate adjustment is run. If the Start date field is blank, the exchange rate does not have a start date and the original exchange rate is effective until another exchange rate is entered into the system. It is mandatory that the Start date be blank for the first exchange rate entered for a currency. 3. Enter the exchange rate of the foreign currency in the Exchange Rate field. Consider the value that was set in the Express currency rate field in the General ledger parameters form. For example if the Express currency rate field value is 100, you must specify how many foreign exchange units equal 100 units of the company currency. The relationship between the foreign currency and the company currency is displayed at the bottom of the Exchange rate form.
Procedure: Set Rounding Options

Follow these steps to set the Rounding options for each currency. 1. From the Exchange Rates form, select a currency. 2. Click the Round-off tab. 3. Round off the sums according to a fixed unit. For example, amounts on transactions are rounded to the nearest unit to 0.01. Specify the general unit for rounding in the General round-off field. Different rounding options exist for Accounts Receivable (Round off order) and Accounts Payable (Round off purchase) modules, as well as prices (Rounding price). All posting amounts are rounded off to the nearest factor of the specified unit, regardless of whether they are calculated and posted automatically or entered manually by the user. 4. In the General ledger parameters form on the Ledger tab: o Specify the maximum rounding amount for a voucher in the default currency, in the Maximum penny difference field. o Set up the rounding for secondary currencies in the Maximum penny-rounding in secondary currency field.
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NOTE: The value in the General round-off field affects all values in all modules.
NOTE: To print the Currency report, which lists all company currencies and related exchange rates, click General Ledger, click Reports, click Base Data, and then click Currency.
Procedure: Enable a Currency for Currency Conversion

In Microsoft Dynamics AX 2009, the currency converter makes it possible to display transactions and balances in another currency on reports and in forms. Follow these steps to convert to another currency. 1. To open the Exchange rates form, click General Ledger, click Setup, and then click Exchange Rates. 2. Select a currency. 3. Click the Currency converter tab. 4. Select the Conversion check box to enable a currency for conversion. 5. 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.
Procedure: Change the Display Currency

After a currency has been enabled for currency conversion, follow these steps to display financial information in a currency other than the default company currency. 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.
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Follow these steps to return to the default company currency. 1. Open the Currency converter form. 2. Click the Reset button to return to the default company 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.
Test Your Knowledge

Task: Simon, the System Implementer at Contoso Entertainment USA (CEU), is helping Phyllis, the Accounting Manager, with the implementation of Microsoft Dynamics AX 2009. CEU conducts business primarily in the United States and also in Canada. As of April 1, 2008, 1 Canadian Dollar (CAD) equals 0.97 US Dollars (USD). Help Phyllis and Simon determine the correct steps to set up multicurrency for CEU. Step _____ : Create the CAD Currency in the Exchange rates form Step _____ : Set the exchange rate value for CAD as of no date to 0.97 Step _____ : In the General ledger parameters form, enter 1 in the Express exchange rate field Step _____ : In the Company information form, select USD in the Currency field Step _____ : Set the exchange rate value for CAD as of April 1, 2008 to 0.97 Step _____ : Create the USD Currency in the Exchange rates form What effect does the value in the General round-off field have on the values in Microsoft Dynamics AX 2009?
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When you change the display currency, it affects all users. ( ) True ( ) False
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Lab 1.1- Enter a Currency and Print the Currencies

Scenario 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 that is 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, 2008, 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 Realized Loss Realized Profit Unrealized Loss Unrealized Profit Value 801300 801500 801400 801600
Challenge Yourself!
Set up the South African Rand (ZAR) as a currency and specify the posting accounts and rounding options. Set up the exchange rate. Make ZAR available for currency conversion. Print a copy of the currency rates that are set up in the system.
Need a Little Help?

1. To set up the currency and specify the posting accounts and rounding options, follow these steps: a. Open the Exchange Rates form to set up the South African Rand (ZAR) currency. b. Click the Posting tab to enter the posting accounts. c. Click the Round-off tab to enter the rounding option 2. Set up the exchange rate. Every currency requires one exchange rate entry with a blank date. 3. To set up ZAR for currency conversion, click the Currency converter tab. 4. Print a report with the exchange rates for the Controller.
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Step by Step
First, set up the currency and specify the posting accounts and rounding options. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Click General ledger, click Setup, and then click Exchange rates. Press CTRL+N to add a line in the Overview tab. In the Currency field, enter ZAR. In the Name field, enter South African Rand. In the ISO Currency Code, enter ZAR. Click the Posting tab. In the Realized loss field, enter 801300. In the Realized profit field, enter 801500. In the Unrealized loss field, enter 801400. In the Unrealized profit field, enter 801600. Click the Round-off tab. In the General round-off field, enter .01
Next set up the exchange rate. Every currency requires one exchange rate entry with a blank date. 1. On the Exchange rate form, click in the Exchange rate field on the line. 2. In the Exchange rate field, enter 12.35. 3. Press CTRL+N to create a new exchange rate. 4. In the Start Date field, click the calendar icon. 5. Select 04/01/08. 6. In the Exchange rate field, enter 12.35 Then, set up ZAR for currency conversion. 1. Click the Currency converter tab. 2. Select the Conversion check box. Finally, print a report for the Controller with the exchange rates. 1. Click the Print exchange rates button to open the Exchange rates form. 2. Click OK to print the Exchange rates report.
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Periods and Fiscal Year Setup

The fiscal year in Microsoft Dynamics AX 2009 can be: Set to any length Divided into any number of periods
Both fiscal year and periods can be set up by the following measurements of time: Years Months Days
Each period can be: Closed completely or stopped to block transaction postings Set to enable selected users to continue an update of one or more modules
The periods and fiscal year feature is very useful for the preparation and reconciliation of periodic and yearly accounts.
Set Up Periods and Fiscal Year

Before you post transactions in Microsoft Dynamics AX 2009, you must create a new fiscal year that is divided into periods because you cannot post transactions unless a period is created for the posting date. With the Periods form you can: Create a new fiscal year. Define fiscal periods. Modify fiscal periods in existing company accounts. Recalculate period balances, if the periods of a fiscal year with transactions are changed.
NOTE: Microsoft Dynamics AX 2009 posts transactions according to dates and not according to periods. Accounting periods are used for reporting. Closing of accounting periods lets the user close the sub-ledger to make sure that no additional transactions are recorded.
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Scenario
Before he closes a fiscal year, Ken, the Controller of Contoso Entertainment USA (CEU), sets up a new fiscal year with a 12-month period. Ken prepares monthly financial statements to measure the delivery of actual results against the budget, the operating result, financial position, and cash flow. The monthly reporting is important so you can track budgets. When you set up a new fiscal year, Microsoft Dynamics AX 2009 creates: a number of periods, with the status of Open a closing period, with the status of Stopped the opening period into the new fiscal year, with the status Closed
Procedure: Create Periods in a New Fiscal Year

Follow these steps to create periods in a new fiscal year. 1. Click General Ledger, click Setup, click Periods, click Periods, and then click Create New Fiscal Year. 2. Enter the date the fiscal year starts in the Enter start of fiscal year field. 3. Enter the date the fiscal year closes in the Enter close of fiscal year field. 4. Specify the length of each period in the Desired length of period field.
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5. Enter the unit of measurement for that length in the Unit list. For example, for each month in a year to be a period, the length of the periods is 1 and the unit is Month(s). 6. Click OK to create the period(s) and view the Periods form.
FIGURE 1.4 CREATE NEW FISCAL YEAR FORM
Review New Periods

Based on the values entered in the Create new fiscal year form, fiscal year information is displayed in the Periods form. Click General Ledger > Setup > Periods > Periods to access the form.
FIGURE 1.5 PERIODS FORM
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Microsoft Dynamics AX 2009 always creates two additional periods: An opening period to which to transfer the opening transactions from the year-end closing routine. The opening transactions result from the previous years balance accounts. A closing period to which to enter year-end close specific transactions.
The following information is displayed in the fields of the Periods form: Start - This field specifies the beginning date of the period. Period code - This field is specified automatically by the system based on the setup of periods. The possible values are: o o o Opening - Opening is the period used by the system to open transactions from the year-end closing routine. Normal - Normal is the period used to enter transactions. Closing - Closing is the period used to enter year-end close specific transactions.
End - This indicates the end date of the current period. Status - The four available statuses include: o o o o Stopped - The default period code is Closing. Open - The default period code is Normal. The periods must be set to open to enter transactions. Closed - The default period code is Opening. Year closed - This field is used to close the fiscal year.
NOTE: A stopped period can be opened. A closed period cannot be opened.
Procedure: Select Authorized Users

Follow these steps to select the users who are authorized to update the General Ledger module. 1. From the Periods form, click the Module status tab. 2. In the Module status lists, select the users authorized to update the various modules. o All - All users are authorized to update in the General Ledger module in the selected period.
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o None - No users are authorized to update in the General Ledger module in the selected period. For example, if a company wants to make some adjustments to a closed period, the modules that will not be adjusted are set to None. User group - Specific user groups are authorized to make General Ledger updates in the selected period.
3. In the Module user group area, specify the user group that can make changes, when the module status is set to User group. For example, after a period is stopped, limit access to the Ledger to only the user group that makes closing entries. This ensures no new entries are made during the financial closing process. You can select one group of users to enter the last postings in the old period and select other groups to continue working only in the new period.
Use Periods and Additional Options

When you work with the Fiscal Period Setup, additional functions are available from the Periods form. To divide an existing periods into two periods, click the Divide period button. Enter the start date of the new period, and then click OK to create the new period and return to the Periods form. To create a closing period for a fiscal period, click the Create Closing period button. The system automatically creates an opening and closing period for the fiscal year, but not for each individual period. To delete any period with an Open status or change the number of periods, click the Delete period button. The Delete Period button is not available if the selected fiscal period has a status of Stopped or Closed. No warning or error message appears when an open period with transaction history is deleted. The transactions are not deleted, and the end date of the period prior to the deleted period changes to coincide with the beginning date of the next period. To delete the fiscal year furthest into the future, click the Delete fiscal year button. As with the Delete Period button, no warning or error message appears when the fiscal year with transaction history is deleted. The transactions are not deleted and the year can be recreated. To make adjustments for a closer period and recalculate the balance for a specific period, select that period, and then click the Recalculate Period Balances button. Select whether to run the recalculation in batch or immediately.
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Test Your Knowledge
Is it possible to post activity that uses a date for which a period has not been created? ( ) Yes ( ) No
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Lab 1.2 - Create Periods in a New Fiscal Year

Scenario 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 onemonth periods.
Challenge Yourself!
Create the fiscal year for 2011, which begins on July 1, 2010.
Need a Little Help?

1. In the Periods form, click the Create new fiscal year button to create the fiscal year for 2011. 2. Select the period length of one month. 3. Review the new fiscal year in the Periods form.
Step by Step
1. Click General ledger, click Setup, click Periods, and then click Periods. 2. Click the Create new fiscal year button. 3. In the Enter start of fiscal year field, enter 7/1/2010. 4. In the Enter close of fiscal year field, enter 6/30/2011. 5. In the Desired length of period field, enter 1. 6. In the Unit field, click the arrow to select Months. 7. Click OK to create the year. The fiscal year for 2011 is added to the Periods form.
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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.
Procedure: Create Date Intervals

Follow these steps to create date intervals. 1. To access the Date intervals form, click General Ledger, click Setup, click Periods, and then click Date Intervals. 2. Press CTRL+N to create a new record. 3. Enter a date interval code in the Date interval code field. Use a code that is easy to identify when you set up date intervals on statements and reports, such as CP for the Current period.
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4. Enter a short description of the date interval, in the Description field. 5. Enter the period for the date interval in the From date and To date fields.
FIGURE 1.6 DATE INTERVALS FORM
Procedure: Create Date Intervals - Start/End

Follow these steps to further define the date interval start and end dates. 1. From the Date intervals form, click the General tab. 2. Select thetime unitthat is the basis of the calculation in the Before list. 3. Specify the starting point of the interval in the Start/End field. This data is used with the value in the Before list to set the starting point of the date interval.
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The following examples are for Before and Start/End fields: Field Before Start/End Calculation date Starting point Field Before Start/End Calculation date Starting point Value Fiscal year Start 3/13/2008 1/1/2008 Value Quarter End 3/13/2008 3/31/2008
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NOTE: The Calculation date field is equal to the system date. By changing the system date, (Microsoft Dynamics AX > Tools > Session Date), all the values in the Date calculation area of the form will be changed accordingly.
FIGURE 1.7 DATE INTERVALS FORM, GENERAL TAB
Procedure: Create Date Intervals - Future or Past

Follow these steps to set whether a date interval moves into the future or the past. 1. From the Date intervals form, click the General tab. 2. Indicate whether the interval should move into the future or into the past, by selecting + for future or - for past in the +/- field. The +/field is based on the Before field.The number is multiplied by the time units in the Days, months, years or periods field. 3. Select the unit for change of start date in the interval in the Days, Months, Years or periods field. The number of units is displayed in the +/- field. The choices are reflected in the After adjustments field.
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The following examples are of the +/- field and the Days, months, years and period fields: Field Before Start/End +/Days, months, years and periods Calculation date Starting point After adjustment Field Before Start/End +/Days, months, years and periods Calculation date Starting point After adjustment Value Year Start 1 Years 3/13/2008 1/1/2008 1/1/2009 Value Year Start -1 Years 3/13/2008 1/1/2008 1/1/2007
NOTE: If the +/- field and Days, Months, Years or periods field are empty, the After adjustments field equals the starting point value.
Procedure: Create Date Intervals - After

Follow these steps to select the basis for adjustment of the date in the After adjustments field. 1. From the Date intervals form, click the General tab. 2. Select a time unit used to determine the start date or the end date of the From date field in the After field. The From date fieldis based on the value in the After adjustments field. The From date is used as the basis of calculation in financial statement columns, and can be the start or the end date of a time unit selected in the After field
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3. Select whether the time unit in the After field should be set in the beginning or the end of the time unit in the Start/End field. The following examples are of the After field and the Start/End field. Field After adjustments After Start/End From date Field After adjustments After Start/End From date Value 4/17/2008 Fiscal year Start 1/1/2008 Value 4/17/2008 Quarter End 6/30/2008
Procedure: Create Date Intervals - Locked Start

Follow these steps to use a specific date. 1. From the Date intervals form, click the General tab. 2. Enter a fixed start date, in the Locked start field. All other values are overwritten, and the value is transferred to the From date field.
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.
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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: Fixed assets General ledger Accounts payable Accounts receivable Bank
NOTE: For more information about using reason codes with Fixed assets, refer to the Fixed assets collection.
Procedure: Create a Reason Code

A reason code can be selected in the following General ledger forms: General journal Process allocation request Elimination proposal Consolidation, Online periodic
Follow these steps to create a General ledger reason code. 1. To access the Reasons form, click General Ledger, click Setup, and then click Ledger reasons. 2. Press CTRL+N to create a new reason. 3. Enter a unique Reason Code as identification.
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4. Enter a Default Comment for the reason code. The comment entered here is displayed as the default comment when you select this reason in transactions. You can change the default reason comment.
FIGURE 1.8 LEDGER REASONS FORM
NOTE: Use the Reasons form from Basic to create reason codes for many financial modules. You also can open the Reasons form from a specific module. The Reasons form in Basic provides extra fields to assign the reason code to any of five account types, but in each of the other modules, reason codes by default are assigned to the account type that is related to that module. For example, if the Reasons form opens from Accounts payable, the Vendor check box is selected and the reason codes created can be used only with vendor transactions unless the Vendor check box is unmarked.
Procedure: Modify a Reason Code

Reason codes can be modified at any time. The Default comment and Account types can be changed. Follow these steps to modify a reason code. 1. To access the Reasons form, click General Ledger, click Setup, and then click Ledger reasons. 2. Select the Reason Code to modify. 3. Modify the Default Comment for the reason code. 4. Clear the Ledger check box. As soon as the Ledger check box is cleared, the reason code is no longer displayed in the General ledger transaction entry forms, and is unable to be used.
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Procedure: Delete a Reason Code
Follow these steps to delete a reason code. 1. To access the Reasons form, click General Ledger, click Setup, and then click Ledger reasons. 2. Select the Reason Code to be deleted. 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.
Test Your Knowledge

What are reason codes?
Dimensions
Dimensions have the following characteristics: Provide a more detailed description of a transaction. Simplify the accounting process when you enable detailed analysis without the creation of a detailed Chart of Accounts. Resemble separate accounts for: o o o Departments Cost centers Purposes
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Are defined to analyze and classify financial transactions as follows: o o Financial transactions usually are organized according to voucher and account number. Additional grouping and classification options are available when you assign several dimensions to transactions.
Enable you to view the data file from different perspectives to improve the effectiveness in tracking figures across accounts. Can be used throughout the system. Add dimensions to base data such as: o o o Ledger accounts Customers Vendors
Are copied to transactions automatically.
Default Dimension Settings

Three default dimension settings exist: Department Cost center Purpose
NOTE: Use the Financial Dimension Wizard to create extra dimensions in Microsoft DynamicsAX 2009. It requires a MorphX license to add extra dimensions in the application. To access the wizard, click Microsoft Dynamics AX, click Tools, click Development Tools, click Wizards, and then click Financial Dimension Wizard. The number of financial dimensions is finite, however, the number of dimension values within a financial dimension is infinite.
NOTE: These dimensions are financial dimensions. Microsoft Dynamics AX 2009 also has Inventory dimensions, which are different from financial dimensions.
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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Procedure: Create a Dimension Value
Follow these steps to create a new dimension value. 1. To access the Dimensions form, click General ledger, and then click Dimensions. 2. Select the relevant dimension in the Dimension list. 3. Press CTRL+N to create a new line. The value in the Dimension field is populated based on the selection in step 2. 4. Enter a unique identifier for the dimension value in the Number field. 5. Enter a name for the dimension value in the Description field. 6. Select an employee responsible for this dimension, in the Employee drop-down list. This field is optional.
FIGURE 1.9 DIMENSIONS FORM
After dimension values are set up, you can assign them to the following: Ledger accounts General ledger transactions Accounts Receivable transactions Customers Accounts Payable transactions Vendors
For example, in the Customers form on the Dimensions tab, set up department and cost center dimensions for customer 4037. 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.
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Throughout Microsoft Dynamics AX 2009, you can separate data in different ways when you use dimensions. For example, you can attach a department number to each transaction and then run a query that shows balances by department code.
Procedure: Select Dimension Validation Options

Validation options for dimension values can be assigned to specific account numbers. Follow these steps to specify a dimension validation option for an account. 1. To open the Chart of Accounts form, click General Ledger and then click Chart of Account Details. 2. Select the account number, and then click the Dimension tab. 3. Select a validation option value from the Mandatory Dimensions lists, which include the following value options: o Optional - Entry of a dimension value is optional; a value is not checked when you post. o To be filled in - Microsoft Dynamics AX 2009 verifies that a dimension value is entered, but the specific value is not checked. The Dimension field must contain data, however, the data does not have to be a valid dimension in the Dimension table. o Table - Microsoft Dynamics AX 2009 verifies that a Dimension value is entered, and that the value matches the value specified in the ledger account. o List - Microsoft Dynamics AX 2009 verifies that a Dimension value is entered. The value must be a valid dimension in the Dimension table. o Fixed - The dimension selected on the ledger account always is used when you post and replaces any other dimension value that may have been entered. o Default - For all transactions without any value set, the value stated on the ledger account is used. The default dimension value can be changed before you post. HINT: For accounts that have a List validation option selected, you must define the Dimension table values in the Validate dimension form. To access the Validate dimension form, click General ledger, click Chart of Accounts, select the account number, click the Validation list button, and then click Dimension.
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Test Your Knowledge
Which of the following is one of the default dimension settings? (Select all that apply.) ( ) Department ( ) Vendor ( ) Cost center ( ) Purpose
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Lab 1.3 - Assign Ledger Account Dimension Values

Scenario Phyllis, the Accounting Manager, at Contoso Entertainment USA (CEU) has been asked by Charlie, the President and CEO, for monthly financial reports by department, cost center, and purpose. Phyllis has determined that cleaning expenses for the building always should be recorded to the Building maintenance cost center.
Challenge Yourself!
Help Phyllis enter the necessary dimension validation options for account 605110.
Need a Little Help?

1. To guarantee the accuracy of the financial reports, make sure that transactions posted to the cleaning expense account (605110) always specify: o Cost center dimension 0101, Building maintenance 2. Specify these validation options in the Chart of Accounts form.
Step by Step
1. Click General ledger, and then click Chart of Account Details. 2. Select account 605110, Cleaning expense, and then click the Dimension tab. 3. In the Cost center field, click the arrow to select 0101, Building maintenance. 4. In the Validate cost center field, click the arrow to select Fixed.
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Dimension Focus
Dimension focuses make it easy for you to create financial reports that are based on dimensions and ledger accounts transactions. They also define the order in which dimensions and ledger accounts should be printed. A dimension focus combines dimensions and ledger accounts. For example, one focus can consists of: Ledger accounts Department Purpose
Another focus can consist of: Department Ledger accounts
For example, you can use the dimension focuses to view balance statements based on multiple dimensions and ledger accounts.
Scenario
Sara, the Chief Financial Officer (CFO) at Contoso Entertainment USA (CEU), must: Analyze financial transactions based on dimensions and ledger accounts combined. For example, Sara views sales revenue for each department or country. Determine how financial transactions should be organized when users run reports and make inquiries.
To view the sales revenue for all departments in CEU, Sara decides to create a dimension focus that consists of ledger accounts and departments dimensions.
Procedure: Create a Dimension Focus

Follow these steps to create a dimension focus: 1. To access the Dimension focuses form, click General Ledger, click Setup, click Financial Statement, and then click Dimension Focuses. 2. Enter a unique identifier to name the new dimension focus in the Set field. 3. Enter a descriptive name in the Description field. 4. Click the Dimension tab.
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5. Select one or more dimensions in the Available dimensions pane that should be included in the dimension focus. Click the arrows to add the dimensions to the Selected dimensions pane. At least one dimension must be selected for each dimension focus. The dimension that is the primary row pattern (main focus) must be listed first, and the dimension shown within each primary row must be listed second (secondary focus). For example, to print a report that displays sales revenue per department, the department dimension should be selected first and ledger accounts selected second. NOTE: The Dimension Entry check box cannot be edited. It identifies whether the dimension set is used with the dimension hierarchy feature. A dimension set that drives the entry of dimension automatically is considered a focus also, but must not be edited, modified or deleted from the Dimension focuses form. The dimension set can be edited only in the Dimension sets form, which you can access when you click General ledger > Setup > Dimensions > Dimension Set.
FIGURE 1.10 DIMENSION FOCUSES FORM
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Procedure: Select the Default Dimension Focus
After you complete the steps to create a dimension focus, you can use the dimension focus in various reports and statements. For example, use the dimension focus in financial or dimension statements. A default dimension focus is selected automatically when various reports are printed. For example, the default dimension focus is selected when you open the Dimension Statement form when you click General ledger > Reports > Transactions > Dimension Statement. Follow these steps to select the default dimension focus. 1. To open the General ledger parameters form, click General ledger, click Setup, and then click Parameters. 2. On the Ledger tab select the default dimension focus in the Default focus for dimension rendering list.
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Lab 1.4 - Create a Dimension Focus and Print the Dimension Statement
Scenario In June 2008, Sara, the Chief Financial Officer (CFO) at Contoso Entertainment USA (CEU), advised staff that all entries made to income statement accounts must include a department dimension.
Challenge Yourself!
Run a report to verify that entries for the month of June include the department dimension.
Need a Little Help?

1. Create a new dimension focus for account - department. 2. View the results in the Dimension Statement report.
Step by Step
Follow these steps to create a new Dimension focus for Account-Department. 1. To access the Dimension focuses form, click General ledger, click Setup, click Financial statement, and then click Dimension focuses. 2. Press CTRL+N to create a new dimension focus. 3. In the Set field, enter Acc-Dept. 4. In the Description field, enter Account Department. 5. Click the Dimension tab. 6. Drag the Ledger account field from Available dimensions to Selected dimensions. 7. Drag the Department field from Available dimensions to Selected dimensions. 8. Click the Overview tab. 9. Press CTRL+S to save the record. Microsoft Dynamics AX 2009 displays a confirmation message. 10. Click the Yes button. 11. Close the Dimension focuses form. Next, follow these steps to run the Dimension statement report. 1. Click General ledger, click Reports, click Transactions, and then click Dimension statement. 2. In the Main focus field use the arrow to select Acc-Dept. 3. In the From date field, enter 6/1/2008.
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4. In the To date field, enter 6/30/2008. 5. Click the Select button to open the Inquiry form. 6. On the Range tab on the Ledger account row enter 400000..999999 in the Criteria column. 7. Click OK to close the Inquiry form. 8. Click OK to view the report. 9. Review the report to determine whether accounts that have entries without departments are listed.
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Generated Allocations
Allocation is the process of distributing monetary amounts to one or more accounts or account and dimension combinations. New to Microsoft Dynamics AX 2009 is the ability to use predefined allocation rules to perform generated allocations. Generated allocation is the distribution of posted or fixed amounts to combinations of destination accounts and dimensions at any time, which generate new journal entries. Allocation rules have numerous calculation methods, including: Basis Fixed percentage Fixed weight Spread even
Microsoft Dynamics AX 2009 also provides 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, 2008. Because Phyllis does not want the new rule to be used until then, she enters 01/01/2008 as the start date for the rule. Because CEU typically reviews its allocation rules every fiscal year, Phyllis enters 12/31/2008 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 a SOX 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.
Allocation Rules
Allocation Rules allow you to define the results you want in the allocation business process. Each allocation rule has four primary components: 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.
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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.
Procedure: Create an Allocation Rule

Follow these steps to create an allocation rule. 1. Click General ledger, click Setup, click Posting, and then click Ledger allocation rule. 2. Press CTRL+N 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.
FIGURE 1.11 LEDGER ALLOCATION RULE FORM
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Procedure: Create an Allocation Rule - General
Follow these steps to complete the setup of allocation rule general settings, which dictate what fields are available in the rule tabs. 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. 4. Select the Intercompany rule check box if the allocation rule involves being processed among multiple companies. 5. Select the Allocation method: o Basis: Defines how and in what proportion the source amounts are distributed to the various destination lines. For example, allocation based on revenue dollars, in which the cost of corporate advertising expense is shared across all departments, is based on each department's sales in proportion to total departmental sales. o Fixed percentage: Takes criteria defined in the allocation source and uses a fixed percentage amount that the user entered, to determine the allocation amount for the destination.
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o Fixed weight: Takes criteria defined in the allocation source and uses a fixed weight amount that the user entered, to determine the allocation amount for the destination. Spread even: Takes criteria defined in the allocation source and disperses the amount evenly across the destination distribution lines.
FIGURE 1.12 LEDGER ALLOCATION RULE FORM, GENERAL TAB
6. In the Data source field, select the source of the amount to allocate: o Ledger o Fixed value 7. If Fixed value is selected in the Data source field, enter a value in the Fixed value field. 8. If Ledger is selected in the Data source field, select an arithmetic operation to apply to the source value in the Mathematical operation field. 9. If Ledger is selected in the Data source field and either Multiply or Divide is selected in the Mathematical operation field, enter the Amount by which to multiply or divide the source value. 10. If Ledger is selected in the Data source field, select a date interval to determine the account periods used for the allocation rule source. If a date interval is not selected, all balanced for the chosen account or account-dimension combination will be selected for source allocation. 11. Select an allocation Journal name. The Description displays the allocation journal description.
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12. If the Spread even Allocation method is selected, select from the Keep account from list to use the source account. 13. If the Spread even Allocation method is selected, select from the Keep dimension form list to indicate if you want to use the source destination account and dimension or a user-specified destination account and dimension.
Procedure: Create an Allocation Rule - Source

Follow these steps to complete the setup of settings for the allocation rule source, also known as the allocation pool. 1. From the Ledger allocation rule form, select the Source button. 2. Press CTRL+N to create a new record. 3. From the Field setting list select to allocate from an Account or account Dimension combination. 4. If Dimension is selected in the Field setting field, select a Dimension. 5. In the Source criteria field enter the account or dimension information from which to allocate. You can use wildcard characters to specify accounts or dimension codes. For example, if the selected Dimension is Department and the source criteria = Admin,, the system displays information that includes the department dimension equal to Admin or a department dimension has not been specified.
FIGURE 1.13 LEDGER ALLOCATION RULE SOURCE FORM
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Procedure: Create an Allocation Rule - Destination
Follow these steps to complete the setup of allocation rule destination settings, which define how the results of the allocation calculation must be distributed to the destination distribution lines. 1. From the Ledger allocation rule form, select the Destination button. 2. Press CTRL+N to create a new record. 3. The Company field displays the company in which the allocation rule was created. If the allocation rule is an inter-company rule, users can change this field. 4. Select the account to allocate to in the To Account field. 5. Select the Department dimension to which to allocate. 6. Select the Cost center dimension to which to allocate. 7. Select the Purpose dimension to which to allocate. 8. If the Allocation method is Basis, select the Basis ID with which to associate the destination line.
FIGURE 1.13 LEDGER ALLOCATION RULE DESTINATION FORM
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Procedure: Create an Allocation Rule - Offset
Follow these steps to complete the setup of allocation rule Offset settings, which define the offset entries that balance the destination distribution lines. 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. 5. If the Offset dimension from field is set to User specified, select the dimension to associate to the allocation rule.
FIGURE 1.14 LEDGER ALLOCATION RULE FORM, OFFSET TAB
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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.
Procedure: Print the Allocation Rules Definition Report

Follow these steps to print the Allocation Rules Definition report: 1. To access the Allocation Rules Definition report, click General Ledger, click Reports, click Base data, click Various, and then click Allocation rules definition. 2. Select criteria such as Ledger allocation rule. 3. Click OK to print.
FIGURE 1.15 ALLOCATION RULES DEFINITION REPORT
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.
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Procedure: Process Allocation Request
As soon as an allocation rule has been created, you can process it and either preview or post an allocation journal. To set up an allocation journal, move to General ledger > Setup > Journals > Journal names. Use the Process allocation request form to create an allocation journal. 1. Click General ledger, click Periodic, and then click Process allocation request. 2. Select an allocation rule. 3. Select the date to include ledger amounts for allocation in the As of date field. This date corresponds with the Date interval on the allocation rule. 4. Select the date to post the allocation journal to the general ledger in the GL posting date field. 5. Select the action to occur if the allocation process generates a zero source amount. o Select Process to create destination distributions, where applicable. o Select Stop to create an error that indicates when a zero source amount is selected and stops the allocation process. 6. In the Proposal options field, select a posting preference. o Select Proposal only to review allocation results without posting. o Select Post only to post the allocation results directly to the general ledger. 7. Click OK.
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NOTE: The Date last run field displays the last date when a user processed an allocation rule and created distribution lines.
FIGURE 1.16 PROCESS ALLOCATION REQUEST FORM
Test Your Knowledge

What are the parts of an allocation rule? (Select all that apply.) ( ) General ( ) Source ( ) Destination ( ) Offset 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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Summary
The General ledger setup course describes the initial setup to start working with Microsoft Dynamics AX 2009 financials. The course provides basic introductions to set up: Currencies and exchange rates Periods, fiscal year and date intervals Dimensions and dimension focuses Generated allocations
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Take a moment and write down three key points you have learned from this chapter: 1.
2.
3.
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Solutions
Currency and Exchange Rate Setup
Test Your Knowledge
Task: Simon, the System Implementer at Contoso Entertainment USA (CEU), is helping Phyllis, the Accounting Manager, with the implementation of Microsoft Dynamics AX 2009. CEU conducts business primarily in the United States and also in Canada. As of April 1, 2008, 1 Canadian Dollar (CAD) equals 0.97 US Dollars (USD). Help Phyllis and Simon determine the correct steps to set up multicurrency for CEU. Step 4 : Create the CAD Currency in the Exchange rates form Step 5 : Set the exchange rate value for CAD as of no date to 0.97 Step 3 : In the General ledger parameters form, enter 1 in the Express exchange rate field Step 2 : In the Company information form, select USD in the Currency field Step 6 : Set the exchange rate value for CAD as of April 1, 2008 to 0.97 Step 1 : Create the USD Currency in the Exchange rates form What effect does the value in the General round-off field have on the values in Microsoft Dynamics AX 2009? MODEL ANSWER - The value is used to round all amounts in all modules. When you change the display currency, it affects all users. ( ) True () False
Periods and Fiscal Year Setup

Test Your Knowledge
Is it possible to post activity that uses a date for which a period has not been created? ( ) Yes () No
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Reason Codes
Test Your Knowledge
What are reason codes? 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.
Dimensions
Test Your Knowledge
Which of the following is one of the default dimension settings? (Select all that apply.) () Department ( ) Vendor () Cost center () Purpose
Generated Allocations
Test Your Knowledge
What are the parts of an allocation rule? (Select all that apply.) () General () Source () Destination () Offset 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

Objectives
The objectives are: Create, edit, close, or delete Ledger Account Categories Create a new account in the Chart of Accounts (COA) Set up Account Allocation Terms Set up System Accounts View inquiries and reports related to the Chart of Accounts
Introduction
A Chart of Accounts is a list of all accounts tracked by Microsoft Dynamics AX 2009. It captures financial information to make sound financial decisions. Each account is assigned an account number as a unique identifier. Use the Chart of Accounts to create, manage, and view the company's General Ledger accounts in a structured list. Additionally, different allocation terms can be set up for an account to distribute the amount to several accounts and accountdimension combinations, and system accounts help users handle automatic postings. The Chart of Accounts Setup course also shows all the reports and inquiries related to the Chart of Accounts.
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Ledger Account Categories

Ledger account categories can be used to better classify a general ledger account. Use ledger account categories primarily for grouping or selection of ledger accounts for reports. By default, over fifty ledger account categories are provided.
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 companys 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. The following table shows which type accounts are defined in Contoso Entertainment USA: Ledger account 110100 130000 140000 170000 Account name Cash Accounts receivable Inventory Fixed Assets
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 Ledger account category field. Accounts later added to the chart of accounts will also use the Ledger account category to automatically be included in existing calculations.
Procedure: Create Ledger Account Categories

Follow these steps to create a Ledger account category. 1. To access the Ledger account categories form, click General Ledger, click Setup, and then click Ledger account categories. 2. Press CTRL+N to create a new record. 3. Enter a unique name for the Ledger account category and a Description. 4. Select an Account type to associate with the account category. The purpose of selecting an Account type is to reduce the lookup of available Ledger account categories when you create a new account within the Chart of accounts form.
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5. To link an account category to a ledger account, click the Link ledger accounts button. Or, link a Ledger account category to an account from the Chart of Accounts form. For more information, refer to the topic titled Create a New Account - Ledger Account Category.
FIGURE 2.1 LEDGER ACCOUNT CATEGORIES FORM
Edit Ledger Account Categories

The Ledger account category, Description, and Account Type assignment values can be changed at any time for user-defined and default Ledger Account Categories.
Close Ledger Account Categories

To inactivate a ledger account category, including any of the default ledger account categories, select the Closed check box in the Ledger account categories form. If you try to close a Ledger account category that is already linked to a ledger account, a warning message that has a listing of linked ledger accounts is displayed. Select to continue or cancel. After a Ledger account category is closed, it cannot be linked to ledger accounts.
Delete Ledger Account Categories

A user-defined Ledger account category can be deleted, as long as it is not assigned for use with Purchase Requisitions in the Accounts Payable Parameters form. None of the default Ledger account categories can be deleted.
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Chart of Accounts
The Chart of Accounts (COA), the central collection location for daily financial transactions, is the cornerstone of the General Ledger module. It provides information about a company's financial state. Use the COA to: Create accounts Set standard parameters Access transactions View a company's financial state
With the Chart of Accounts users can perform: Ledger budgeting Validation Definition of the terms of allocation
Plan the Chart of Accounts

To create the COA, we recommend that users list accounts that fall together and group kinds of revenues, costs, and balance accounts. Before you create a company's Chart of Accounts, consider the following: What degree of specification is needed How the Chart of Accounts must be structured If external accountants offered any suggestions about the structure of the Chart of Accounts
Make sure that there is sufficient space so that in the future, additional ledger accounts can be created between the existing accounts. Decide whether operating accounts must come before balance accounts or the other way around. Create the Chart of Accounts by: Setting up the accounts one by one. Importing default data from the installation CD or another company. (The existing accounts can always be altered, or new ones can be created).
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Chart of Accounts Form
The Chart of Accounts form is where accounts are created and deleted. This is also where ledger accounts are changed, and where transaction history and balances for specific ledger accounts are viewed. The window is divided into five tabs. To thoroughly set up a ledger account in Microsoft Dynamics AX 2009, fill in information on each tab. However, only the Ledger account and Account type fields are required.
FIGURE 2.2 CHART OF ACCOUNTS FORM
Procedure: Create a New Account - Name the Account

The Overview tab shows the Chart of Accounts in a table format. It also shows account balances to use as a quick balance inquiry screen. Follow these steps to create and name a new account in the Chart of Accounts form: 1. To access the Chart of Accounts form, click General Ledger, and then click Chart of Accounts. 2. Press CTRL+N to create a new record. 3. Enter the account number for posting in the Ledger account field. 4. Enter the account name, in the Account name field. This appears on reports and in inquiries. 5. Enter a short name that is used for fast search for an account, in the Search name field. The default is copied from the Account name, and is only visible when the record is saved. Although there can be a search on the Account name, the Search name is meant to be a quicker search field.
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CAUTION: Leave space between the account numbers for future changes to the Chart of Accounts.
Procedure: Create a New Account - Select Account Type

Follow these steps to select the account type: From the Chart of Accounts form Overview tab, select an account type to define the ledger account category in the Account type list, which determines how the account is handled by Microsoft Dynamics AX 2009. Select one of the following options: Profit & Loss, Revenue and Cost - These are posting accounts. Use Profit & Loss to record revenue and expenses. The sum of all operating accounts determines the year-end results. Revenue and Cost account have the same function as a Profit & Loss account and gives a debit or credit proposal when you use that account in a journal. Balance, Asset and Liability - A Balance account resembles a transaction account. Use it to record assets and liabilities. Assets and Liabilities have the same function as Balance. However, they additionally specify the balance for reporting, because that offers more possibilities for limiting balance reports. Header - Use this to enter the name of an account as a header in inquiries and reports. Empty header - Creates a space in an inquiry or report. Page header - Creates a new page immediately before the designated account, and uses the name of the account as a header. This is used in inquiries and reports. For example, organize the Chart of Accounts and financial statements by using the account type Page header with the transition from the balance sheet to the profit and loss statement. Total - Use this to add account intervals. For example, frequently it is useful to make a total of a range of revenue accounts to obtain a quick overview of the total sales for the current period when you run a financial statement.
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For example, view the total balances of the revenue accounts on the Overview tab in the Chart of Accounts form. Configure Account type total by clicking Setup > Totals, where total groups are balanced for all account intervals. Group Total - Use this to create a group total based on the prefix of the account. This resembles the Total field but it is automated based on the Group total account length field in the Ledger tab of the General Ledger parameters form.
CAUTION: Account numbers used for headers or calculations cannot be used as transaction accounts.
Procedure: Create a New Account - Ledger Account Category

The Ledger account category field can be used to better classify a general ledger account, if the account type is Profit and loss, Revenue, Cost, Balance, Asset, or Liability. Ledger account categories are used primarily for grouping or selection of ledger accounts for business intelligence reporting, such as Key Performance Indicators (KPIs) or Microsoft SQL Reporting Services (SRS). To set the Ledger account category field value, from the Chart of Accounts form Overview tab, select a Ledger account category from the drop-down list.
Procedure: Create a New Account - Locked in Journal

Select the Locked in journal check box to prevent posting on the account in general journals. Posting can occur if it comes from a subsidiary journal, for example, if the Accounts Payable ledger account has this check box selected, posting from the Accounts Payable invoice journal is permitted. Posting cannot be made to the Accounts Payable ledger account from a general journal. The locked in journal functionality prevents direct posting on an account. For example, the summary ledger accounts that are used by the Accounts Receivable module are set up in the Accounts Receivable Posting profile form. When the Locked in journal check box is selected, there can be no direct posting. If there is direct posting, the Accounts Receivable ledger account will not remain in balance with the Accounts Receivable sub-ledger.
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Procedure: Create a New Account - General Tab
The General tab contains many of the same fields as the Overview tab. Follow these steps to enter additional information on the General tab. 1. Access the General tab on the Chart of Accounts form by clicking General Ledger, Chart of Accounts, General tab. 2. Select if transactions in this account are usually debits or credits, in the DB/CR proposal list. Therefore, when you leave the Transaction text field, the pointer in the general journal is automatically positioned according to the choice. If the field is left blank, the debit is automatically proposed. 3. Select if an account is used only for debiting or for crediting in the DB/CR requirement list. If an account is limited to only debiting or crediting, the system checks this when it validates and posts the general journal. However, when the amount is a credit, a negative credit can still be entered. 4. In the Balance control list, select the balance control criterion for the transactions on the current account. For example, when transactions are entered in a journal for the account, if Debit control is selected, the system makes sure that total amount of the journal transactions do not make the balance for the account go into a credit. When lines are entered in a payment journal, click Balance control to view the balance of petty cash and all bank accounts. 5. Select the Closed check box to prevent all posting on the account if, for example, an account can no longer be used.
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6. In the Offset account list, 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 having to manually specify the account every time.
FIGURE 2.3 CHART OF ACCOUNTS FORM, GENERAL TAB
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Create a New Account - Setup Tab
Use the Setup tab to set transaction defaults - such as sales tax and currency when a transaction is made on an account. Most of these fields only set up proposed values. This means the default value can be changed when the transaction is entered. The default offset account can also be overwritten.
FIGURE 2.4 CHART OF ACCOUNTS FORM, SETUP TAB
Create a New Account - Validation Options

There are four posting validation settings that can be defined for each account. Posting validation can be set for the following: Sales tax Currency User ID Posting types
Validation settings can be based on the following: Optional - The field is not validated at the time of posting. This is the default setting. To be filled in - Microsoft Dynamics AX 2009 verifies that the field is completed for posting. The value is not checked.
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Table - Microsoft Dynamics AX 2009 verifies that the field is completed for posting and that the value corresponds with the value specified in the account. List - The Microsoft Dynamics AX 2009 system verifies that the field is completed with one of the values that are defined on the Validation list button.
Procedure: Create a New Account - Validate Currency

Follow these steps to define currency information for an account: 1. Access the Setup tab on the Chart of Accounts form by clicking General Ledger, Chart of Accounts, Setup tab. 2. In the Currency list, select a proposal for currency when recording in the current account in the general journal. The proposal can be overwritten in the journal, depending on the setting of the Validate currency code list. 3. In the Validate currency code list, determine how the currency must be validated for posting. For more information, refer to the topic Create a New Account - Validation Options.
Procedure: Create a New Account - Validate User

Follow these steps to specify authorized users for posting: 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 list, determine how User ID must be validated for posting. For more information, refer to the topic Create a New Account - Validation Options.
Procedure: Create a New Account - Validate Posting

Follow these steps to set posting validation for an account: 1. In the Posting type list, 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 list, determine how posting must be validated. For more information, refer to the topic Create a New Account - Validation Options.
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Create a New Account - Financial Statement Tab
Use the Financial statement tab to set up how a ledger account appears on a financial statement. For more information about financial statement options, refer to the Financials II course.
Create a New Account - Dimension Tab

Use the Dimension tab to set up default dimensions and validation rules for the current account. Throughout Microsoft Dynamics AX 2009, dimensions are a great method to separate data in different ways. For example: Attach a department number to each transaction and then run a query that shows balances by department code. The dimensions entered are proposed dimensions for transactions made that use the selected account number. Each dimension can be changed by the user when the transaction is made. In addition to the standard dimensions of department, cost center, and purpose, there are also the validate options.
When you create the Chart of Accounts, many fields are optional, but it is a good idea to carefully consider what degree of detail is necessary for a given system. The Chart of Accounts must be designed to capture financial information to make sound financial decisions.
Test Your Knowledge

True or False: Using posting types reduces the risk of selecting a wrong account when you set up posting profiles. ( ) True ( ) False
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Lab 2.1 - Enter a General Ledger Account

Scenario 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 Ledger account Name Ledger account category Currency Value 131150 Prepaid Rent Prepaid Expenses USD
Challenge Yourself!
Use the table information to create a new General ledger account.
Need a Little Help?

1. In the Chart of Accounts form, create the new account 131150, Prepaid rent. 2. In the Account type field, use the arrow to select Balance. 3. In the Ledger account category field, use the arrow to select PREPAIDEXP for Prepaid Expenses. 4. On the Setup tab in the Currency field, click the arrow to select USD.
Step by Step
Click General Ledger, and then click Chart of Account Details. Press CTRL+N to add a line in the Overview tab. In the Ledger account field, enter 131150. In the Account name field, enter Prepaid rent. In the Search name field, enter Prepaid rent. In the Account type field, use the arrow to select Balance. In the Ledger account category field, use the arrow to select PREPAIDEXP for Prepaid Expenses. 8. Leave the Locked in journal field blank. 9. Click the Setup tab. 10. In the Currency field, click the arrow to select USD. 1. 2. 3. 4. 5. 6. 7.
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Account 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.
Scenario - Using Allocation Terms for an Account

When Susan, the order processor in the Contoso Entertainment USA (CEU) Company, posts a sales order, 10 percent of the revenue posted must be allocated as a royalty payment. To achieve this, Cassie, the Accountant, creates an allocation term so that every time there is a posting to the revenue account in question, 10 percent is allocated to the royalty account.
Set Up Allocation Terms for an Account

Use the allocation terms to automatically distribute a transaction amount to different accounts. Follow these steps to set up allocation terms for an account. 1. To access the Allocation form, click General Ledger, click Chart of Account Details, click the Setup button, and then click Allocation Terms. 2. Make sure that the specific account is selected for allocation in the Chart of Accounts form on the General tab, before setting up allocation terms for an account. Select the Allocation check box to determine if the account must execute any allocation for posting from other parts of the application and when you post from the journals. If this field is selected, allocation is automatically executed as defined in Allocation terms. 3. In the To account list, select the ledger account to allocate to when transactions are created automatically. To distribute the amount to several accounts, add more lines in the Allocation terms form. To distribute the amount to another dimension within the same ledger account, leave the account blank or enter the current account. 4. In the To department, To cost center and To purpose lists, select the dimension for transactions created automatically during allocation.
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5. 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. 6. Limit the allocation to the selected dimensions that are on the Dimension tab. When it searches for allocations, the system uses all lines where the dimension is empty or where it matches the given line. For example, in a journal entry where a given expense is shared evenly between two departments, set up an allocation term where any entry on the account allocates 50 percent between the two dimensions set up on the Dimension tab page.
Test Your Knowledge

True or False: Account allocation is used for realized transactions and budget transactions. ( ) True ( ) False
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Lab 2.2 - Account Allocation Terms

Scenario At Contoso Entertainment USA (CEU), entries posted to account 600200, Repairs & Maintenance Expense, must be allocated between departments based on dimensions, as shown in the following table. Number 010 030 050 080 Description Administration Sales Customer Service Professional Services Percentage 20 10 15 55
Challenge Yourself!
Use the information in the table to enter the allocation terms for account 600200.
Need a Little Help?

1. Open the Chart of Accounts form. 2. After locating account 600200, Repair & Maintenance Expense, open the Allocation form. 3. Set the Allocation terms according to the table in the scenario. Enter each department on a separate line. When the entries are complete, make sure that the Percentage in total field displays 100.
Step by Step
1. On the Navigation Pane, click General Ledger and then click Chart of Accounts. 2. Locate account 600200, Repair & Maintenance Expense. 3. To open the Allocation form, click the Setup button and then click Allocation terms. 4. In the To department field, use the arrow to select department 010. 5. In the Allocation percentage field, enter 20. 6. Press CTRL+N to add a new line. 7. In the To department field, use the arrow to select department 030. 8. In the Allocation percentage field, enter 10. 9. Press CTRL+N to add a new line. 10. In the To department field, use the arrow to select department 050.
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11. 12. 13. 14. In the Allocation percentage field, enter 15. Press CTRL+N to add a new line. In the To department field, use the arrow to select department 080. In the Allocation percentage field, enter 55. Notice that the Percentage in total field displays 100. 15. Close the Allocation form.
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System Accounts
The modules in Microsoft Dynamics AX 2009 are highly integrated and many postings are handled automatically. For example, when an invoice is posted where a discount is given, this amount is posted automatically to an account for discounts. The appropriate account for that kind of posting must be set up, through system accounts. In the System accounts form: Specify the system accounts for automatic transactions that cannot be set up elsewhere in Microsoft Dynamics AX 2009. There are other automatic accounts set up in each module, for example, posting profiles in the Accounts Receivable and Accounts Payable modules. The posting set up is discussed when each module is introduced.
The following chart shows how Microsoft Dynamics AX 2009 handles an invoice discount entry.
FIGURE 2.5 POSTING OF AN INVOICE DISCOUNT
If the relation between the system account Customer invoice and ledger account 50310 is set up, the invoice discount amount of 50 is posted to ledger account 50310.
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Create System Accounts
Follow these steps to set up system accounts:
FIGURE 2.6 SYSTEM ACCOUNTS FORM
1. Click General ledger, click Setup, click Posting, and then click System Accounts. 2. Click Create and Microsoft Dynamics AX 2009 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 system accounts Microsoft Dynamics AX 2009 creates when you click the Create button: o Penny difference in secondary currency o Error account o Penny difference in default currency o Year-end result o Cash discount o Balance account for consolidation differences o Customer cash discount o Customer invoice discount o Vendor cash discount Vendor invoice discount o Order, freight o Order fee o Order invoice rounding o Purchase invoice rounding-off o Purchase, fixed receipt price profit
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NOTE: The Error Account, Penny Difference, and Year-end Result system accounts are mandatory. The other system accounts are set up depending on whether that functionality is used. If a service pack is installed, new system accounts may be introduced. Click the Create button after you install a service pack to make sure you have all the latest default account types. 3. Press CTRL+N to create a new system account, if system accounts are already created. 4. Attach the relevant ledger account for each system account in the Ledger account list. The name of the system account is automatically inserted in the Name field. 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.
NOTE: To register or manually change a cash discount in the settlement process, a cash discount system account must be set up. To offer a discount on the total invoice amount, a customer invoice discount, vendor invoice discount, or both must be set up.
Test Your Knowledge

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
Inquiries and Reports Related to the Chart of Accounts

This lesson describes those Microsoft Dynamics AX 2009 standard inquiries and reports, in addition to their functionalities that are related to the Chart of Accounts.
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Print the Chart of Accounts
The Chart of Account report displays a list of all accounts in the Chart of Accounts. To print the Chart of Accounts report, click General Ledger, click Reports, click Base Data, and then click Chart of Accounts.
FIGURE 2.7 CHART OF ACCOUNTS REPORT
Audit Trail Inquiry

When using audit trail inquiry: Each ledger transaction is part of a voucher. When a voucher or group of vouchers is posted, the program creates an audit trail entry with a unique numeric identifier. The entry includes an automatically generated transaction text that identifies the origin of the entry. Click the Voucher button to view the vouchers that are contained in the audit trail entry. The entry also includes references to the user who created the entry and to the entry date and time.
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To access the Audit Trail form, click General Ledger, click Inquiries, and then click Audit Trail.
FIGURE 2.8 AUDIT TRAIL FORM
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 Ledger transactions button.
View Account Transactions

When you view account transactions, consider the following: You can use the Account transactions form to view a list of all posted transactions on the current account. The entries result from posting transactions in: o o o Journals Sales and purchase orders Any other modules that post to ledger
The information in the fields in the ledger transactions cannot be modified. To correct an entry, make a transfer which then appears in the form.
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To open the Account Transactions form, click General Ledger, click Chart of Account Details, and then click Transactions or click General Ledger, click Reports, click Transactions, and then click Ledger Transaction List.
FIGURE 2.9 ACCOUNT TRANSACTIONS FORM
Select the Show open only check box to only display transactions not settled in the Ledger settlements form. In the Account Transactions form: o o o All the transactions posted to the current account are displayed. The transactions are identified in the Voucher field and it displays when the ledger transaction is posted. The Period code is also listed and the code is usually Normal. However, Opening may also display for entries made in an opening period and Closing for entries made in a closing period.
The amount is shown as: o o o o Currency - Displays the currency code specified at posting. Amount currency - Displays the transaction amount in the currency specified on that transaction. Amount - Displays the transaction amount in the default company currency. Amount in secondary currency - Amount in secondary currency. The secondary currency is defined on the Other tab of the Company information form.
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View Account Balances
From the Chart of Accounts form, use the Balance button for a quick inquiry of ledger account balances in Microsoft Dynamics AX 2009. Clicking the Balance button retrieves a list of options: Balance - Displays a small window that displays the balance for the selected account. Balance by currency - Displays an overview of the account's balance in the: o o o Posted currencies Default currency Percentage of the total balance for each specified currency. Define the period for the balance displayed in the Setup form under the Balance button.
Balance by dimension - Select the dimension with which to calculate the balance. Transactions on balance - View the posted transactions and the current account for the period specified in setup on the Balance button. The window that appears resembles what appears from the Transactions button on the Chart of Accounts window. Balance graphically - Displays the balance for the account in a graphical format. Setup - Specify the accounting year for the balance to be obtained. Specify whether the balances are shown with operating or fiscal adjustments. If Operations is selected, the sum of current transactions and operating adjustments display. If TAX is selected, the sum of current transactions and tax related adjustments display.
View Period Balances

From the Chart of Accounts form, use the Period balances button to display the Period balances form for the current ledger account. If there are revenue accounts with this functionality, you can quickly view the revenue in a period without having to print reports. Use the Period balances form to display balances for the current year in which the system date falls.
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To change the fiscal year, change the Date field at the top of the window to a date in another fiscal year.
FIGURE 2.10 PERIOD BALANCES FORM
View Account References

Use the Account references form to locate the use of an account in the system. This means if an account is used in an automatic transaction, its references can be viewed. To access the Account references form, click General Ledger, click Chart of Account Details, click the Inquiry button, and then click References. For the view to be updated: Set up the references to be inspected. Do this in General Ledger > Setup > Posting > Account Reference in the Account reference form. This process sets up the references for each related table and then updates them. After the reference is established, the account reference can be viewed through the inquiry form.
For example, update the account references BankAccountTable and BankAccountTrans in Ledger > Setup > Posting > Account reference by checking the Include box. Locate a cash account like 110110 in the chart of accounts, click the Inquiry button, and select References. The form will show the bank account that the ledger account is associated with.
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View Account Statement
Use the Account statement form to print an account statement for one or more accounts. To access the Account statement form, click General Ledger, click Chart of Account Details, and then click the Account Statement button. The Account statement report: Is by default printed for the current account. However, to change the ranges, click the Select button. Considers ledger accounts, dimensions, or a composite of those using main and secondary focuses and can be based on the following transactions: o o o Ledger Budget Cash flow
FIGURE 2.11 LEDGER STATEMENT BY LEDGER ACCOUNT REPORT
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Summary
This course, Chart of Accounts Setup, covers the basic information about the Chart of Accounts, allocation terms, system accounts, and inquiries and reports related to these topics. The Chart of Accounts, the central collection location for daily financial transactions, is the cornerstone of the General Ledger module. It provides information about a company's financial state. Allocated transactions redistribute account balances from one account to one or more destination accounts. This is practical and can be used to set up automatic posting of, for example, percentage allocation of accounts postings.
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Test Your Knowledge

Test your knowledge with the following questions.
Question 1
1. Which tasks are completed from the Chart of Accounts in Microsoft Dynamics AX 2009? (Select all that apply.) ( ) Create accounts ( ) Set standard parameters ( ) Access transactions ( ) View a company's financial state
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2.
3.
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Solutions
Chart of Accounts
Test Your Knowledge
True or False: Using posting types reduces the risk of selecting a wrong account when you set up posting profiles. () True ( ) False
Account Allocation Terms

Test Your Knowledge
True or False: Account allocation is used for realized transactions and budget transactions. () True ( ) False
System Accounts
Test Your Knowledge
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
Test Your Knowledge

Question 1
1. Which tasks are completed from the Chart of Accounts in Microsoft Dynamics AX 2009? (Select all that apply.) () Create accounts () Set standard parameters () Access transactions () View a company's financial state
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CHAPTER 3: JOURNAL SETUP

Objectives
The objectives are: Set up journal names Set up journal controls Create journal texts Set up balance control accounts Set up General Ledger parameters
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 2009, review the setup procedures for journals in this course. The procedures explains 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 in Microsoft Dynamics AX 2009.
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Journal Setup
All manual postings are entered into the system through journals. When you use a journal entries are not posted immediately. Before you can post entries, they can be: Changed Reviewed Approved Deleted
In Microsoft Dynamics AX 2009, you can use journals to: Control different kinds of entries - you can apply an approval system so that special journals are posted only after they are approved. Review data imported from external ledger systems - you can ensure that all valid fields contain a value and that all restrictions for the transaction are fulfilled. Make sure that the necessary voucher series is set up before you create journals - you can set up number sequences and attach them to the appropriate references.
Working with Journals

Working with journals is divided into three steps:
FIGURE 3.1 WORKING WITH JOURNALS
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1. Set up journal names. Use the journal setup as a template 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 2009 use journals for entering transactions. In General Ledger, use journals for ledger posting. In Accounts Receivable, use Sales journals for sales postings, and so on. 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.
Journal Examples
See the following examples of journals: Daily Periodic Invoice register Approval Customer payment
EXAMPLE: Select a Daily journal type to create a journal for daily transactions. When you create new daily journals in General ledger > Journals > General ledger journal, the journal names with the journal type of Daily appear in the Name list.
Procedure: Create Journal Names Overview

Follow these steps to set up journal names. 1. To access the Journal names form, click General Ledger, click Setup, click Journals, and then click Journal Names. 2. Enter a recognizable journal name in the Name field. 3. Enter a description of the journal that clearly describes the purpose of the journal in the Description field. 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.
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5. Select a number sequence for the journal name in the Voucher series list. Number sequences control automatic allocation of voucher numbers, invoice numbers, and journal numbers. For example, the number sequence is applied to journal lines automatically. You can set up number sequences in the Number sequences form. HINT: Use number sequences with alphanumeric characters so that you can recognize voucher numbers for future inquiries and reporting. To define number sequence codes, click Basic, click Setup, click Number sequences, and then click Number sequence.
FIGURE 3.2 JOURNAL NAMES FORM
Procedure: Create Journal Names - Approval

Follow these steps to define approval options for a journal. 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.
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NOTE: You can define approval options in the Journal names form on the Overview tab.
FIGURE 3.3 JOURNAL NAMES FORM, GENERAL TAB
Procedure: Create Journal Names - Workflow Approval

Follow these steps to define workflow approval options for a journal. 1. From the Journal names form, General tab, select the Approval workflow check box to start the workflow journal approval for the journal name. 2. From the Configuration list, enter the workflow configuration to use for the workflow approval for this journal name. NOTE: You cannot use both the manual approval system and the workflow approval system for the same journal name.
Procedure: Create Journal Names - Blocking

Follow these steps to restrict the usage of a journal. 1. From the Journal names form, click the General tab. 2. In the Blocking area, specify if the journal should be available for only a limited group of people. In the Private for user group list, select a user group to restrict the usage of the journal.
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Procedure: Create Journal Names - Voucher Number
To define voucher number options, follow these steps: 1. From the Journal names form, click the General tab. 2. In the Voucher number area, select when a new voucher number is assigned. 3. In the New voucher list, select from the following: o In connection with balance - If an offset account is not entered, keep entering transactions with the same voucher number as long as the lines on the voucher number do not balance. However, if an offset account is entered, either as a default account or as a manually entered account number, a new voucher is assigned for every line, because every line balances. Manual - New voucher numbers are assigned manually. One voucher number only - Only one voucher number is employed for all journal lines. When you create a new journal a new voucher number is allocated automatically.
o o
NOTE: You cannot enter multiple customer or vendor transactions by using the One voucher number only selection, if there is an invoice number that is used. 4. Specify the number of the external document in the Document field. For example, a vendor invoice number that generated the voucher will appear on the journal lines, where it can be associated with a document date. 5. Select the Number allocation at posting check box to start voucher number allocation in journals at posting. NOTE: If the Continuous check box is selected in the Number sequences form on the General tab, the voucher number is generated automatically from the previous voucher number without gaps in the voucher numbers. For example, the order is 1,2,3,4 and not 1,3,8.
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Procedure: Create Journal Names - Offset Account Proposal
Follow these steps to define the offset account for the journal. 1. In the Journal names form, click the General tab. 2. In the Offset account proposal area, specify the default offset account type for the journal name in the Account type list. For example, when recording a vendor payment and specifying Vendor in Account type, offset posting occurs in the vendor account. At the same time, posting occurs automatically in the vendor summary account in General Ledger. 3. Select a default offset account for the journal in the Offset account list. 4. Select the Fixed offset account check box to prevent the default offset account from being changed. For example, select that a daily journal always must have a bank account as the default offset account. 5. Select the Beginning-Ending balance control check box to check the beginning-ending balance control in the journal.
Procedure: Create Journal Names - Posting

Follow these steps to set up information about posting. 1. In the Journal names form, click the General tab. 2. Set up information about journal posting details in the Posting area. 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. NOTE: Summation is not performed on transactions with sales tax. 3. Select the Delete lines after posting check box to delete journal lines when posting is completed. Database space is saved. However, the ability to inquire on posted journal lines is not saved. 4. Select which layer the journal transactions are posted to in the Posting layer list.
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NOTE: Three 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. 5. Select how to handle the posting of fees in the Fees posting list, for example, for remittance. Select among three 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.Specify how many journal lines are allowed in the Lines limit field. If the number of journal lines exceeds the number that is specified in the Lines limit field, the journal lines are distributed into several smaller journals. 6. Specify how many journal lines are allowed in the Lines limit field. If the number of journal lines exceeds the number that is specified in the Lines limit field, the journal lines are distributed into several smaller journals.
Procedure: Create Journal Names - Currency

Follow these steps to define journal currency options. 1. In the Journal names form, click the General tab. 2. In the Currency area, select the default currency for the journal name in the Currency field. 3. Select the fixed rate check box if a fixed exchange rate should be used. The fixed exchange rate is specified in the individual Journal forms on the Setup tab. If the Currency or fixed rate fields are blank, the company currency setup is used for the journal name automatically.
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Procedure: Create Journal Names - Sales Tax
Follow these steps to define journal sales tax options. 1. In the Journal names form, click the General tab. 2. In the Sales tax area, select the Amount incl. sales tax check box to include sales tax in the journal transactions when a sales tax group is set up. The total includes sales tax.
Procedure: Create Journal Names - Dimension

Follow these steps to define journal dimension options. 1. In the Journal names form, click the Dimension tab. 2. Set up default dimensions for the journal names. The dimensions are inserted automatically when you create new journals. However, the dimensions are overwritten if, for example, another dimension is set up on vendors or customers.
Procedure: Create Journal Names - Define Posting Restrictions

The posting restrictions feature enables an organization to specify, on a journal name basis, if specific users or user groups can only post the journals that the user or user group members entered or created. Posting restrictions can be defined by user group or user. Follow these steps to define posting restrictions for a journal: 1. Select a journal from the Journal names form, and then click the Posting restrictions button. 2. In the How do you want to set up posting restrictions? field, select the restrictions for users. Restrict journal posting to the user who created the journal for those who are assigned the control. If the user is not assigned to a posting restriction, he or she can post all journals for the journal name. Select from the following: o By user group o By user
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o No posting restrictions For example, Arnie, the Accounts Receivable (AR) Manager at Contoso, is a member of the AR user group. The AR user group has been assigned to a posting restriction for AR journals. Because of this posting restriction assignment, members of the AR user group can post AR journals that only they created. Phyllis, the Accounting Manager, decides to allow Arnie to post all AR journals, not only those that he created. Phyllis must clear the posting control for Arnie so that he can post to all AR journals.
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.
Procedure: Set Up Journal Controls

Follow these steps to set up posting rules for a journal template. 1. To access the Journal control form, click General ledger, click Setup, click Journals, click Journal names, and then click the Journal control button. 2. Select the company accounts that allow posting for the current journal in the Company accounts list. 3. Specify whether recording is allowed for only profit and loss accounts, for only balance accounts, or for both types of accounts in the Posting accounts list. 4. Select the Ledger account in which to post in the From account list. 5. Define account intervals with the To account list. To create additional account intervals press CTRL+N. 6. Select the first account type that is available to use in the journal in the From account type list. 7. Select the last account type available to use in the journal in the To account type list. For example, if only a journal for ledger transactions is used, set both the From account type and the To account type to ledger. If you are posting to a ledger account and the off set account should be a bank account or fixed asset, you must enter the To account type as a bank account or fixed asset.
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Journal Texts
Use journal texts to enter and reuse transaction texts when you record in journals. Users frequently enter the same transaction text every time that 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.
Procedure: Create Journal Texts

Follow these steps to set up standard journal texts.
FIGURE 3.4 LEDGER JOURNAL TEXTS FORM
1. To access the Ledger journal texts form, click General ledger, click Setup, click Journals, and then click Journal texts. 2. Press CTRL+N to create a new record. 3. Enter an ID for the transaction text, in the Identification field. You can use the identification as a hotkey together with the search name when you enter the transaction texts.
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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 text field Microsoft Dynamics AX 2009 automatically finds the text Daily transactions if 1 or Daily is entered in the Transaction text field in any Journal lines form.
Balance Control Accounts

Use the Balance control accounts form to monitor the current and expected balance on an account as transactions are entered in a journal. You are not required to set up balance control accounts to work with Microsoft Dynamics AX 2009. However, it is good practice generally.
Scenario
Phyllis, the Accounting Manager at Contoso, wants to track the current and expected balance of liquidity accounts better, such as 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.
Procedure: Set Up Balance Control Accounts

Follow these steps to set up balance control accounts. 1. To access the Balance control accounts form, click General ledger, click Setup, click Journals, and then click Balance control accounts. 2. Press CTRL+N to create a new record. By default, bank accounts are included in the balance control. 3. In the Ledger account field, select the ledger account for balance control. The account is typically a liquidity account. The Name field is populated with the Account name of the ledger account.
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Procedure: View a Balance Control
When you add a ledger account to the Balance control accounts form, you can verify the effect of the postings on the ledger account in question. The Balance control form displays the following: The balance before journal The posting transaction The balance after journal The effect on the account from other journals The balance after posting this and other journals
Follow these steps to view the current and expected balance of a balance control account. 1. From the Journal form, select a journal. 2. Click the Lines button. 3. From the Journal voucher form, click the Inquiries button, and then click Balance control.
FIGURE 3.5 BALANCE CONTROL FORM
General Ledger Parameters

The last part of the journal setup is performed in the General Ledger parameters form.
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Procedure: Set Up General Ledger Parameters
Follow these steps to set up the general ledger parameters for journals: 1. Click General ledger, click Setup, and then click Parameters. 2. On the Ledger tab in the General area, 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 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.
Procedure: Set Up General Ledger Parameters - Number Sequence

Follow these steps to set up the number sequence options for journals: 1. Click General ledger, click Setup, and then click Parameters. 2. Select a Number sequence code in the Reference list on the Number sequences tab. 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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Set Up Journals
Scenario Ken, the Controller at Contoso, must set up two journals in Microsoft Dynamics AX 2009. 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. Journal Vendor Journal Option Name of Journal Description Journal Type Voucher Series Account Type Rent Journal Name of Journal Description Journal Type Voucher Series Account Type Offset Account Journal control Value Day3 Vendor Invoice Daily Acco_18 Ledger PerRent Rent Journal Periodic Acco_23 Ledger 131150 605150
Challenge Yourself!
Use the information in the table to set up the journals.
Need a Little Help?

1. Set up the Vendor Invoice journal. 2. Set up the Rent Journal. Define a journal control for account 605150. 3. Set up journal text for the Rent Journal.
Step by Step
First, set up the Vendor Invoice journal. 1. Click General ledger, click Setup, click Journals, and then click Journal names. 2. Press CTRL+N to add a line. 3. In the Name field, enter Day3.
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4. 5. 6. 7. 8. 9. In the Description field, enter Vendor Invoice. In Journal type, use the arrow to select Daily. In the Voucher series field, use the arrow to select Acco_18. In the Account type field, verify Ledger is populated automatically. Click the General tab. In the New voucher field, verify that In connection with balance is selected.
Set up the Rent Journal. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. From the Journal names form, click the Overview tab. Press CTRL+N to add a line. In the Name field, enter PerRent. In the Description field, enter Rent Journal. In the Journal type field, use the arrow to select Periodic. In the Voucher series field, use the arrow to select Acco_23. In the Account type field, verify Ledger is populated automatically. In the Offset account field, click the arrow to select 131150. Click the Journal control button. In the Company accounts field, click the arrow to select CEU. In the From account field, enter 605150. In the To account field, enter 605150. Close the form.
Set up journal text for the Rent Journal. 1. Click General ledger, click Setup, click Journals, and then click Journal texts. 2. Press CTRL+N to add a line. 3. In the Identification field, enter ren. Notice the Search name defaults with the same value. 4. In the Transaction text field, enter rent. 5. Close the form.
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Summary
After the journal setup is complete, Microsoft Dynamics AX 2009 is ready to create journal and journal lines so that you can record vendor and customer transactions. You can set up journal validation and journal approval for every financial journal. With journal validation, you can lace restrictions on users, accounts, and modules. For each journal type, you can set an approval procedure for verification before any update. Because user rights are also important, you can select the level of detail kept in fields and individual records. You can also define access as read, edit, add, or delete.
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Test Your Knowledge

Test your knowledge with the following questions. 1. Task: Correctly order the following steps for working with journals. Step _____ : Post transactions. Step _____ : Create new journal. Step _____ : Create journal lines. Step _____ : Set up journal names. 2. Use ___________ 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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2.
3.
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Solutions
Test Your Knowledge
1. Task: Correctly order the following steps for working with journals. 2. Step 4 : Post transactions. Step 2 : Create new journal. Step 3 : Create journal lines. Step 1 : Set up journal names. 3. Use ___________ 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: FINANCIAL FEATURES

Objectives
The objectives are: Create, modify, and delete reason codes Describe how and when to use the Fill utility
Introduction
This course describes features that you can use across the various financial modules in Microsoft Dynamics AX 2009. This course describes how to set up reason codes, which let you analyze transaction history by specific reason. This course also describes how to use the Fill utility to update multiple records, similar to find and replace functionality.
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Reason Codes
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. For example, auditors or managers frequently want to see recorded reasons for various transactions. When you use standard reason codes instead of transaction text, users have guidelines on what codes to select from. Standard reason codes provide management and auditors with the ability to analyze transaction history by specific reason. Use reason codes with: Fixed Assets General Ledger Accounts Payable Accounts Receivable Bank
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. To accommodate the auditors requirement, Cassie establishes internal controls in Microsoft Dynamics AX 2009 by setting up parameter values, which enforce use of reason codes during various transactions and value changes in the accounting records. 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 VACC-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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Procedure: Create a Reason Code
Use the Reasons form in the Basic module to create reason codes for many financial modules, or alternatively open the Reasons form from a specific module to set up reason codes for only that module. The difference between the two is that the Reasons form in Basic 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 Reasons form opens from Accounts Payable, the account type is set to Vendor automatically, and the reason codes created are usable only with vendor transactions.
FIGURE 4.1 REASONS FORM
Follow these steps to create a reason code. 1. To access the Reasons form, click one of the following: o Basic > Setup > Reasons o Fixed assets > Setup > Asset reasons o General ledger > Setup > Ledger reasons o Accounts receivable > Setup > Customer reasons o Accounts payable > Setup > Vendor reasons o Bank > Setup > Bank reasons 2. Press CTRL+N to create a new reason. 3. Enter a unique Reason code as identification.
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4. Enter a Default comment for the reason code. The comment you enter here appears as the default comment when you select this reason in transactions. 5. Select the Account type with which to use the reason code. An account type limits the reason codes displayed in reason lists when you create or modify a transaction of that type. For example, only reason codes with an account type of Asset are available when you enter fixed asset transactions. All the account type fields are visible only if you open the Reason form from Basic.
Procedure: Modify a Reason Code

You can modify reason codes at any time. You also can change the Default comment and Account types. Follow these steps to modify a reason code. 1. To access the Reasons form, click one of the following: o Basic > Setup > Reasons o Fixed assets > Setup > Asset reasons o General ledger > Setup > Ledger reasons o Accounts receivable > Setup > Customer reasons o Accounts payable > Setup > Vendor reasons o Bank > Setup > Bank reasons 2. Select the Reason code to modify. 3. Modify the Default comment for the reason code. 4. Select or clear the Account type check boxes. As soon as the account type is cleared, the reason code will not display in the transaction entry or asset forms, and the system will not allow its use.
Procedure: Delete a Reason Code

Follow these steps to delete a reason code. 1. To access the Reasons form, click one of the following: o Basic > Setup > Reasons o Fixed assets > Setup > Asset reasons o General ledger > Setup > Ledger reasons o Accounts receivable > Setup > Customer reasons o Accounts payable > Setup > Vendor reasons o Bank > Setup > Bank reasons
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2. Select the Reason code to delete. 3. Clear all Account type check boxes. You can delete a reason code only if no account types are associated with it. If you are using any form other than the Reasons form accessed from the Basic menu, ensure that you clear the necessary account types from other modules. 4. Click the delete icon. 5. Click Yes in the Confirm deletion dialog box.
Reason Codes
After you have created reason codes, select reasons for transactions or other entries in the following forms. Module General Ledger Transaction Type General journal Path General ledger > Journals > General Journal > Lines button > General tab General ledger > Periodic > Process allocation request General ledger > Journals > Elimination > Lines button > General tab General ledger > Periodic > Consolidate > Consolidation, Online General ledger > Journals > Fixed assets > Lines button > General tab General ledger > Journals > Inventory to fixed assets > Lines button > General tab General ledger > Fixed Asset Details > Depreciation books button > Transactions button > General tab Bank > Deposit slip > Cancel payment button
General Ledger
Process allocation request Elimination proposal
General Ledger
General Ledger
Consolidation, Online
Fixed Assets
Fixed assets journal
Fixed Assets
Inventory to fixed assets journal
Fixed Assets
Depreciation book journal
Accounts Receivable
Cancel payment
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Module Accounts Receivable
Transaction Type Free text invoice
Path Accounts receivable > Free Text Invoice Details > Invoice lines tab Bank > Checks > Payment reversal button Accounts payable > Journals > Invoices > Invoice journal > Lines button > General tab Bank > Journals > Check reversals > Lines button > General tab Bank > Deposit slip > Cancel payment button
Bank Accounts Payable
Payment reversal Invoice journal
Accounts Payable
Check reversals journal
Accounts Payable
Deposit slip payment cancellations journal
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. For example, to use a reason code for a fixed asset journal line transaction, you must enable the selected reason code for general ledger usage in the General Ledger Reasons form.
Reason Comments
Optional reason comments can be entered on the respective 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 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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Test Your Knowledge
What are reason codes?
Fill Utility
The Fill utility enables authorized users and/or administrators to mass-update records, similar to the find and replace functionality. 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.
Procedure: Update Multiple Records

Update multiple records at the same time by using the Fill utility. This feature is available only if the Fill utility configuration key is enabled and the user is assigned to the Fill utility security key. NOTE: Make a backup before you perform this process. Follow these steps to update multiple records by using the Fill utility. 1. Open the form that contains the field to update. For example, to update the payment terms for multiple customers, access the Customers form. Select a customer and select the Payment tab. 2. Right-click the field to update, such as the Terms of payment field, and select Record info from the menu. 3. Click the Fill utility button.
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4. In the Inquiry form, modify the selection of records as necessary, and then click OK. 5. Verify that the list of records to update is correct, and then click OK. A warning icon appears that recommends to backup your database before you perform this process. 6. Select the value to change the field to for the list of records, and then click OK. CAUTION: Be aware that changing numerous records at the same time can be time-consuming.
Fill Utility Log

Use the Fill Utility Log form to view a record of the changes that you have made by using the Fill Utility. To access the Fill Utility Log form, click Basic, click Inquiries, and then click Fill Utility Log.
FIGURE 4.2 FILL UTILITY LOG FORM
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The following tables provide descriptions for the fields in this form. Field Name of table Description Displays the name of the table that was modified for the selected Fill Utility Log record. Displays the name of the field that was modified for the selected Fill Utility Log record. Displays the new value for the field that was modified for the selected Fill Utility Log record. Displays the user name of the person who made the change, which is indicated in the selected Fill Utility Log record. Displays the date and time that the change occurred. Displays the query statement that was used to update the records for the selected Fill Utility record. Displays the old value for the field that was modified for the selected Fill Utility Log record.
Modified field
New value
Created by
Created date and time Query statement
Old value
Test Your Knowledge

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 that users create a backup before they use the Fill Utility. ( ) The system automatically makes a back up before it uses the Fill utility.
Summary
The Financial Features course described the setup of reason codes and the use of the Fill utility.
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2.
3.
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Solutions
Reason Codes
Test Your Knowledge
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.
Fill Utility
Test Your Knowledge
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 that users create a backup before they use the Fill Utility. ( ) The system automatically makes a back up before it uses the Fill utility.
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CHAPTER 5: GENERAL LEDGER DAILY PROCEDURES

Objectives
The objectives are: Create General Ledger Journals Enter General Ledger Transactions Post multiple journals Create Approval Journals Demonstrate data needed to create an Approval journal Create a Voucher Template Create and Retrieve Periodic Journals General Ledger Transaction Reversal Create General Ledger Reversing Entries Inquire and Report on Daily Journal Transactions
Introduction
Every manual posting you enter into Microsoft Dynamics AX 2009 is entered through a journal. A journal is a type of worksheet where entries do not post immediately. You can review, change, and verify them, however, until the completed journal is ready for posting. As discussed in the Journal Setup course, 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 Journals

Users can post transactions to the following accounts by using a general journal: General ledger Bank Customer Vendor Projects Fixed assets
In a general journal, users enter the relevant information for the transaction, such as the: 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.
Procedure: Create a General Ledger Journal

Use the General journal form to create and view journals within the General Ledger module in Microsoft Dynamics AX 2009. The Show list determines whether only open, posted, or all transactions display in the form.
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Follow these steps to create a general journal entry.
FIGURE 5.1 THE JOURNAL FORM
Click General Ledger, select Journals, and then click General Journal. 1. Press CTRL+N to create a new journal in the General journal form. 2. Enter the name of the journal in the Name list, or select the name from the journal name list for the general journal type. The journal number is inserted automatically from the voucher series set up in the Journal names form. The description from the Journal names form also is inserted automatically, but you can overwrite it. The voucher number is created automatically from the number sequence set up in the General ledger parameters form, and the description comes from the Journal names form. 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.
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Procedure: Create a General Ledger Journal - Lines
Follow these steps to create the General Journal Lines: 1. Use the tabs, for example the General or Dimension tab, to change or add to any of the field information that is entered automatically from the Journal names form. 2. Click Lines 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, press CTRL+S at the end of each line or use the down arrow to enter a new transaction line. 6. Click the Post button either 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.
Enter General Ledger Transactions

Journal entries in Microsoft Dynamics AX 2009 are the same as any other type of accounting entry. A ledger account is debited or credited, and then an offset account is designated. The only information that you must have to create a journal entry is the: Accounting date Ledger account Debit or credit amount Offset account
Use the Journal lines form is to enter transactions within a journal. Click the Lines button on the General Journal to open the Journal lines form.
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Procedure: Enter General Ledger Transactions - Overview Tab
FIGURE 5.2 JOURNAL VOUCHER FORM
The Overview tab is where you make entries. It contains the basic information needed to make a journal entry. You can use this tab to enter transactions in the General Ledger. When you set up the Overview tab, you can view or enter the posting date in the Date field. The system date is the default, but you can change the field. The Voucher field displays the voucher number for the transaction that is generated from the number sequence in the Journal names form NOTE: Set up a voucher series in the Number sequences by clicking Basic, then clicking Setup, then selecting Number sequences, and then clicking Number sequences. The voucher series is attached to the journal name in the Voucher field series by clicking General Ledger, selecting Setup, clicking Journals, and then clicking Journal Names. If you set the number sequence to Continuous and you allow no user changes, the field is skipped automatically. Refer to the Microsoft Dynamics AX 2009 Introduction manual for more information about number sequences.
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Procedure: Enter General Ledger Transactions - Account Type
You can determine which type of transaction to create by using the Account type field. Follow these suggestions to select the account type. 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. d. Project - Use Project to post to a specific project number. e. Fixed assets - Use Fixed assets to post to a specific asset number. f. Bank - Use Bank if a bank account transaction is involved. 2. However, frequently different modules have specific journals for these purposes. For example, there is a specific Payment Journal for recording payments to vendors. 3. Summary accounts are set up in the Accounts Receivables and Accounts Payables modules, using the Posting profiles form for the module. Do not use journals to manually post to ledger accounts that you use as summary accounts. 4. Ensure that the account field Locked in Journal is enabled for ledger accounts that you use as summary accounts.
Procedure: Enter General Ledger Transactions - Accounts

After you enter the account type, follow these steps to select the accounts and amounts to use. 1. Select an account number for the current account type in the Account field. 2. Enter a text about the transaction in the Transaction text field. When you specify an offset account, use the same text as long as no other offset transaction text is specified. Alternatively, enter the code for a journal text that is created in the Journal texts form in the Setup folder. NOTE: Click Functions, then click Journal Texts to create a new transaction text that you can reuse when you record in journals.
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3. Enter the debit amount in the given currency in the Debit field. 4. Enter the credit amount in the given currency in the Credit field. 5. Select an Account type in the Offset account type list, and then select the offset account in the Offset account list. 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 you having to specify the account manually every time. Also, set up default accounts and posting account restrictions in the Journal names form by clicking the Journal Control button.
Procedure: Enter General Ledger Transactions - Post Journal

After you enter General Ledger transactions into the journal and you verify that the information is correct, you now can post the journal. Follow these steps to post the journal. 1. Click Post to post without first validating. If the journal contains erroneous entries, you will receive an error message and the journal will not post. Note: click Validate to verify that there are no errors before you click Post. 2. Click Post and transfer to transfer the line that contains errors into the next journal of the same type. All of the correct lines then will post.
Procedure: Enter General Ledger Transactions - View Results

You can view the results of posting the journal by printing the journal. Follow these steps to view the results. 1. Click Print and select Journal or click on General Ledger, then click Reports, then click Journals, then click Print Journal and select the journal number you just created. The Print journal form prints a list of transactions for each journal. 2. Select the Specifications check box to print additional information, such as invoice number, approval information, and more. 3. Select the Totals check box to show total amounts in currencies for ledger accounts for every journal. 4. Select the Accrual schemes check box to identify accrued transactions. 5. Click OK to print the journal report.
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Test Your Knowledge
General journals are used to post transactions in which of the following accounts? (Select all that apply.) ( ) General ledger ( ) Bank ( ) Customer ( ) Vendor The information you enter in a general journal is temporary and changeable as long as the journal is unposted. ( ) True ( ) False What information are needed to create a journal entry? (Select all that apply.) ( ) Accounting date ( ) Ledger account ( ) Offset account ( ) Debit or credit amount
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Lab 5.1 - Daily Transactions

This lab will demonstrate creating and posting transactions in a General journal. Scenario Ken is the Controller for Contoso. On Contoso paid 6,000.00 USD for the rent of office space through December 31. Use the information in the following table to enter the transaction. Option Name of Journal Journal Number Description Account Transaction Text Debit Offset Account GenJrn Accept the System Default Prepaid Rent 131100 Pay 6000 110180
Challenge Yourself!
Help Ken record the activity in the prepaid rent expense account in Microsoft Dynamics AX 2009. Enter a journal for the prepaid rent expense. After you enter the transaction information, post the journal.
Need a Little Help?

1. Select the journal name. 2. Select the desired transaction text. 3. Click the Post button on the Journal voucher form. 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: 1. On the Navigation Pane, click General ledger, click Journals, click General journal. 2. Press CTRL+N to add a line. 3. In the Name field, click the arrow to select GenJrn. 4. In the Journal number field, accept the system default. 5. In the Description field, enter Prepaid Rent. Create the Journal Lines: Click the Lines button. In the Date field, enter 06/30/2008. In the Account field, enter 131100. In the Transaction text field, enter pay. Use the Tab key to move to the next field. 5. In the Debit field, enter 6000. 6. In the Offset account field, enter 110180. Post the Journal: 1. Click the Post button. 2. Click the Post option. An Infolog form displays, which provides information about the post process. 3. Close the Infolog form. 4. Close the Journal voucher form. 5. In the Posted field, verify that the system selected the field. 6. Close the Journal form. 1. 2. 3. 4.
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Lab 5.2 - Daily Transactions with Dimensions

This lab will demonstrate entering a General journal with dimensions. Scenario Cassie is the accountant for Contoso. On Contoso receives a bill for auto insurance from vendor 8004 in the amount of 1,400.00 USD. Help Cassie post the insurance by using the following dimensions. Department 010 030 030 030
Cost Center
0101 0401 0402 0403
Debit 200 500 300 400
After you enter the transaction information, post the journal.
Challenge Yourself!
Determine an expense account to use for auto insurance. Enter a journal for the auto insurance, using the correct dimensions.
After you enter the transaction information, post the journal.
Need a Little Help?

There is an account named Vehicle insurance expense in the Chart of Accounts that would be appropriate to use. You must change the dimensions on this account. 1. Ensure that the Validate department and Validate cost center fields are set to To be filled in (or Optional) to avoid posting errors. 2. Change the dimension settings on the vehicle insurance expense account before you post. 3. Use the GenJrn journal. 4. For the offset account, use Vendor for the Offset account type and select vendor number 8004.
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Step by Step
Modify account 604400: 1. On the Navigation Pane, click General Ledger, and then select Chart of Account details. 2. Find the Vehicle insurance expense account number 604400. 3. Click the Dimension tab. 4. In the Validate department field, click the arrow to select To be filled in. 5. In the Validate cost center field, click the arrow to select To be filled in. 6. Close the form. Enter the journal: 1. On the Navigation Pane, click General ledger, then click Journals, then click General journal. 2. Press CTRL+N to add a line. 3. In the Name field, click the arrow to select GenJrn. 4. In the Journal number field, accept the system default. 5. In the Description field, enter Auto Insurance. 6. Click the Lines button. 7. In the Date field, enter 06/30/2008. 8. In the Account field, click the arrow to select account 604400 (vehicle insurance expense). 9. In the Transaction text field, enter Inv. Use the Tab key to move to the next field. 10. In the Debit field, enter 200. 11. In the Offset account type field, use the arrow to select Vendor. 12. In the Offset account field, enter 8004. 13. Click the Dimension tab. 14. In the Department field, ensure that 010 is selected. 15. In the Cost center field, click the arrow to select 0101. 16. Save the record by clicking Ctrl-S. 17. Click the Overview tab. 18. Use the down arrow to move to the next line in the journal. 19. Repeat steps 7 to 17 and enter the rest of the information that the table provides. Some fields may already be filled in for you.
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Post the journal: 1. Click the Post button, and then click the Post option. An Infolog form displays, which provides information about the post process. 2. Close the Infolog form. 3. Close the Journal voucher form. 4. In the Posted field, notice that the field is selected automatically. 5. Close the Journal form.
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Lab 5.3 - Daily Transactions with Balance Control

This lab will demonstrate the use of the Balance control feature. Scenario Ken is the controller for Contoso. On June 25, 2008 he received an invoice from vendor 3002 for 800.00 USD. A journal is to be created, using the GenJrn journal, for the expense, debiting account 606300 and entering a second line, crediting 110180. Help Ken validate the journal and review the balance control accounts online. The payable to vendor 3002 is not set up in this lab.
Challenge Yourself!
Enter and post a journal for office expenses, using two lines of entry instead of an offset account. Validate the journal. Review the balance control accounts online.
Need a Little Help?

1. Validate the journal in the Journal voucher form by clicking the Validate button. 2. Review the balance control accounts from the Journal voucher form by using the Balance control option available from the Inquiries button.
Step by Step
Create the General Journal: 1. On the Navigation Pane, click General ledger, then click Journals, and then click General journal. 2. Press CTRL+N to add a line. 3. In the Name field, click the arrow to select GenJrn. 4. In the Journal number field, accept the system default. 5. In the Description field, enter Electricity. 6. Click the Lines button. 7. In the Date field, enter 06/25/2008. 8. In the Account field, click the arrow to select account 606300 (Office supplies expense). 9. In the Transaction text field, enter Inv. Use the Tab key to move to the next field. 10. In the Debit field, enter 800. 11. Press the down arrow key to add a line.
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12. In the Date field, enter 06/25/2008. Note that this field may already be filled in. 13. In the Account field, click the arrow to select account 110180. 14. In the Transaction text field, enter Inv. Use the Tab key to move to the next field. 15. In the Credit field, enter 800. Validate the General Journal: 1. Click the Validate button, and then click the Validate option. An Infolog form displays, which provides information for issues in the journal that may affect posting. 2. Close the Infolog form. Review the Balance Control: 1. Click the Inquiries button. 2. Click the Balance control option. Note the display for the line for account 110180. 3. Close the Balance control form. 4. Close the Journal voucher form. 5. Close the Journal form.
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Posting Multiple Journals

You can use the Post journals menu option to post multiple journals with large processes in a batch. You also can post multiple journals that you have created in the following modules by selecting the Post journals menu option: General ledger Accounts receivable Accounts payable Project
You can post journals immediately or set them up as a job for batch processing.
Scenario
Using Journal Batch Processing 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.
Procedure: Post Multiple Journals - Select Journals
FIGURE 5.3 POST JOURNALS FORM
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Follow these steps to post multiple journals: 1. Open the Post journals form by clicking General Ledger, then clicking Periodic, and then clicking Post Journals. 2. Click Select to select open journals for multiple posting. The range is already set up to include open journals. Then click OK to return to the Post journals form. 3. Manually add or delete journals from the resulting list of journals to be posted. To add a journal, press CTRL+N to create a line, and then select the appropriate journal type and number. 4. When necessary, press ALT+F9 to delete a journal. 5. Select the Transfer errors check box on the individual journal lines so that vouchers with errors do not delay the posting of vouchers without errors. When this check box is selected, the posting process posts vouchers without errors and transfers vouchers with errors to a new journal.
Procedure: Post a Journal Batch - Transfer Errors And Post

You can configure the transfer of errors for just the selected lines by clicking Default values. 1. Select or deselect 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 are unposted. 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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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.
Test Your Knowledge

When can Multiple journals be posted? (Select all that apply.) ( ) Yearly ( ) Immediately ( ) On a delayed schedule ( ) Set up as a job for batch processing
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Lab 5.4 - Post All Unposted General Journals

This lab demonstrates posting multiple journals. Scenario Cassie is the Accountant for Contoso. One of Cassie's responsibilities is posting all unposted General journals at the end of the day. Cassie performed extra tasks today and the end of the day is near. Help Cassie run the process.
Challenge Yourself!
Select the unposted General journals and post them as a multiple journal set.
Need a Little Help?

Select the criteria of Daily in the Ledger Journal MultiPost form. Click the Select button in the Post journals form.
Step by Step
1. Click General ledger, then click Periodic, then click Post journals, and then click the Select button. 2. In the Range tab in the bottom pane, click the line with the field Journal type. 3. In the Criteria field, click the arrow to select Daily. 4. Click OK in the Ledger JournalMultiPost form. 5. Click OK in the Post journals form. 6. An Infolog form displays and provides information for issues in the journal that affect posting. 7. Close the Infolog form.
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Approval Journals
Use Microsoft Dynamics AX 2009 to set up an unlimited number of journal templates in 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.
Scenario: Journal Approval

At Contoso, a sample of 100 daily journal transactions shows that less than half are completed correctly, are authorized correctly, or have documented support sufficiently for the recorded transaction amounts. The sample shows that in many instances, information fields were left blank or contain insufficient or incomplete information. Without appropriate journal approval controls, however, the causes of these errors or misstatements are difficult to identify. Therefore Phyllis, the accounting manager, has decided to start the journal approval procedure to make sure specific user groups approve and validate the journals.
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Procedure: Create an Approval Journal
Follow these steps to start the approval journal feature. 1. Open the Journal names form by clicking General Ledger, then clicking Setup, then clicking Journals, and then clicking Journal Names.
FIGURE 5.4 JOURNAL NAMES FORM
2. Enter the name of the journal that you use throughout Microsoft Dynamics AX 2009 in the Name field. Give it a name that is recognizable by its name alone. 3. Enter a description of the journal's purpose in the Description field. 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.
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Procedure: Create an Approval Journal - Number Sequences
Follow these steps to create number sequences for an approval journal. Select a number sequence for the journal name in the Voucher series list. Number sequences manage automatic allocation of voucher numbers, invoice numbers, and journal numbers used by Microsoft Dynamics AX 2009. You can set up number sequences in the Number sequences form. The number sequence automatically is applied to, for example, journal lines. NOTE: To define number sequence codes, go to Basic, then click Setup, click Number Sequences, and click Number Sequence.
Procedure: Create an Approval Journal - Accounts

Follow these steps to select the Account type and other options for an approval journal. 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, in the General tab, 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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Procedure: Create an Approval Journal - Restricting Access
There are several ways to further restrict access to the journal: On the General tab, specify if the journal should be available only for a limited group of people. In the Private for user group list, select a user group to restrict the usage of the journal. On the Posting restrictions button, you can create an additional layer of control on posting. In the Approval workflow field, you can enable approval workflow for the journal by selecting and selecting a workflow Configuration. However, if workflow is used, you cannot use the approval system enabled by the Active field within the same journal name record.
Procedure: Create an Approval Journal - Entering Data in the Journal

Follow these steps to create an approval journal when another person enters data into the journal in which the approval system is set up. Note that the Post button is unavailable until the journal is approved. 1. Go to General Ledger, then click Journals, and then click General Journal. 2. Press CTRL+N to create a new journal and select the journal name with the approval system enabled. Other journal types also may use the approval system, although this example uses a General Journal. HINT: View the history of approvals on the History tab of the Journal form and the Journal voucher form.
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3. Click the Lines button to open the Lines form.
4. Create the journal transactions by pressing CTRL+N and entering information in the fields. 5. Click Approval, and click Report as ready to make the journal ready for approval as soon as you complete the transaction.
Procedure: Create an Approval Journal - Approval

Follow these example steps to approve a journal when a member of the user group designated in the Journal names form approves, for example, a General journal. If a different journal type was created and used, the path in step 1 will be different, but the remaining steps 2 and 3 will be the same. 1. Click General ledger in the Navigation pane, then click Journals, then click General journal. 2. Click the Approval button, and then click Approve to approve the journal. 3. When the journal is approved, the Post button is enabled within that journal. This allows the user who created the journal and the journal lines to post the transactions.
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NOTE: If the journal has errors, click Approval, and click Reject.
Test Your Knowledge

In Microsoft Dynamics AX 2009, you can set up journals that require mandatory approval. ( ) True ( ) False
Example: Gathering Data For an Approval Journal

Let's look at an example in gathering some of the data needed to create an Approval journal.
Scenario
Phyllis, the Accounting Manager for Contoso, has the responsibility for guaranteeing the accuracy of transactions posted in Microsoft Dynamics AX 2009. 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.
What Data Is Needed?

In this scenario, we will use tables to assist us in gathering the needed information. The tables are as follows: Request to Link Users to Groups User ID User Group User ID User Group Request to Enable Journal Approval Journal Name Active Approve Private for user group Select Required Data or Field Value Required Data or Field Value
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How would we complete the following tables to provide Phyllis with the setup that she needs? Some hints and the completed table is shown in the next lesson sections.
Need a Little Help?

Here are some hints: Alfredo is a member of the Admin user group. Because only Admin makes entries to the GenJrn journal, you can use the Private for user group field to prevent other users from accessing the journal. If you do this, however, then the approving user must also be a member of the Private for user group value selected to see the journal for approval.
Solution- Data Required

The completed tables are as follows: Request to Link Users to Groups User ID User Group User ID User Group Request to Enable Journal Approval Journal Name Active Approve Private for user group Required Data or Field Value AFE Admin ASR Finance; Admin Required Data or Field Value GenJrn Select Finance Admin
Voucher Templates
A voucher template is a voucher that you can use as the basis of 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.
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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.
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 shown is an example of the distributions for an invoice in the amount of 600.00 U.S. dollars (USD). Account Telephone Expense Sales Telephone Expense Accounting Telephone Expense Production Telephone Expense Administration Accounts Payable Debit Amount 150 USD 150 USD 150 USD 150 USD 600 USD Credit Amount
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.
Procedure: Create a Voucher Template

Follow these steps to create a voucher template. 1. Enter a transaction through either the Invoice journal lines form (Click Accounts payable, then click Journals, then click Invoice, then click Invoice journal, then click Lines) or the General journal lines form (Click General ledger, then click General journal, then click Lines). 2. Click Functions, and then click Save voucher template.
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3. From the Template type list, select one of the following: o Percent - uses the percentage of the original voucher total represented by each voucher line. o Amount - uses the original voucher total and line amounts. 4. Click OK.
Procedure: Use a Voucher Template

After a voucher template has been created, follow these steps to use a voucher template to create a new general journal or accounts payable invoice journal. 1. Create a transaction through either the Invoice journal lines form (click Accounts payable, then click Journals, then click Invoice, then click Invoice journal, then click Lines) or General journal lines form (click General ledger, then click General journal, then click Lines). 2. Click Functions, and then click Select voucher template. 3. Select the correct template in the Voucher templates form. 4. Click OK. 5. If you select a percent voucher template, enter the Amount of the new transaction. When you create a new voucher based on a percent type voucher template, the percentage calculated for each new line automatically is applied to the value entered in the Voucher amounts dialog. It determines the amount for that new voucher line.
Test Your Knowledge

With which journals can you use voucher templates? (Select all that apply.) ( ) General journal ( ) Fixed assets journal ( ) Accounts payable invoice journal ( ) Purchase journal Which voucher template type allows users to recreate a voucher for the same accounts and values as the original entry? ( ) Percent ( ) Division ( ) Aggregate ( ) Amount
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Periodic Journals
A periodic journal is a journal that users enter only periodically. For example: During each month-end accounting close, a user makes the same entry with the same account numbers and currency amounts. The user sets up a periodic journal to make this process quicker. Then, each month, the user retrieves the journal and posts it with the appropriate accounting date.
Procedure: Create a Periodic Journal

Follow these steps to create a periodic journal that is the same as a regular journal. 1. Click on General Ledger, then click on Journals, and then click General Journal. 2. Press CTRL+N to create a new journal. 3. Enter the periodic journal description to define it as a periodic journal. 4. Click the Lines button to open the Journal voucher window. 5. Create the transactions in the periodic journal the same way that you would create a transaction in a normal General journal. Decide whether to leave the date field blank. If you plan to use this journal more than one time, you can leave the date blank. However, if you want to use the automatic period incrementation functionality of periodic journals, enter a starting date.
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6. Click the Period journal, then 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.
FIGURE 5.6 SAVE JOURNAL AS PERIODIC JOURNAL FORM
Procedure: Create a Periodic Journal - Notes and Hints

HINT: Be as descriptive as possible when you enter the Name of a new periodic journal. It will be easier to identify the correct journal when you retrieve the periodic 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, then clicking Setup, then clicking Journals, and then clicking 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, then clicking Periodic, and then clicking Periodic journals.
Procedure: Retrieve the Periodic Journal - First Steps

Follow these steps to retrieve and use the periodic journal from the Journal voucher window. 1. Go to and click General Ledger, then click Journals, and then click General Journal. 2. Press CTRL+N or open an existing journal.
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3. Click the Lines button. 4. Click Period Journal button, then click Retrieve Journal on the Journal voucher window. A new form appears titled Period journal.
FIGURE 5.7 THE PERIOD JOURNAL FORM
Procedure: Retrieve the Periodic Journal - Set Date Conditions

Follow these steps to set up the conditions for retrieving lines from a periodic journal to the current journal. 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. 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 automatically is 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.
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Procedure: Modify a Periodic Journal
After you create a Periodic journal, you can modify it. Follow these steps to modify a periodic journal. 1. Go to and click on General ledger, then click Periodic, and then click Periodic journals. 2. Click to highlight the desired periodic journal. 3. Click the Lines button to open the Journal voucher form. 4. Make the changes you want. 5. Close the form. NOTE: You also can create periodic journals by using this form.
Periodic Journal: Fields On The Periodic Tab

You can access the Periodic journal at General ledger, Periodic, Periodic journals. When you modify a periodic journal, note the following about the Periodic tab: 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. 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.
NOTE: To automatically establish an initial baseline date for Periodic journal posting, ensure that the Date field of the Journal voucher form within a Periodic journal is populated.
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Periodic Journal: Using Periodic Tab Fields When Retrieving Periodic Journals
You can access the Periodic Tab Fields by clicking General ledger, then clicking Periodic, then clicking Periodic journals. Next, click the Lines button, and then click the Periodic tab. Use these fields to determine the next Periodic journal posting date. You also can determine whether a journal will be retrieved automatically into the General journal form based on the selection criteria you set up. Every time you post the Periodic journal by using the General journal form, the Date field in the Periodic journal, Journal voucher is incremented automatically by the values set up in the Periodic tab. This field is found by clicking General ledger, then clicking Periodic, and then clicking 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 (click General ledger, then click Journals, then click Lines, then 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 by clicking General ledger, then clicking Periodic, then clicking Periodic journals, and then clicking 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 you enter during retrieval.
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Lab 5.5 - Entering Periodic Transactions

This lab demonstrates creating a Periodic Journal 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. Use the following information to enter the transaction. Option Name of Journal Description Date Account Transaction Text Credit Offset Account Unit Number RentExp Rent Expense 06/30/2008 131100 Rent Expense $1,000.00 605150 Rent Expense Month(s) 1
Challenge Yourself!
Create a Periodic journal to use for posting the monthly expense. Post the entry for June.
NOTE: Set the Session date to 06/30/2008 for this lab.
Need a Little Help?

1. Create a Journal name for RentExp. 2. After you enter the Periodic Journal, click the Save button. 3. Retrieve the Periodic Journal and post the first transaction on .
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Step by Step
Set up the Journal name: 1. On the Navigation Pane, click General ledger, then click Setup, then click Journals, and then click Journal names. 2. Press CTRL+N to add a line. 3. In the Name field, enter RentExp. 4. In the Description field, enter Rent Expense. 5. In the Journal type field, click the arrow to select Periodic. 6. In the Voucher series field, select Acco_23. 7. In the Offset account field, enter 605150. 8. Click the Journal control button. 9. In the Company accounts field, click the arrow to select CEU. 10. In the From account field, enter 131100. 11. In the To account field, enter 131100. 12. Press CTRL+N to add a line. 13. In the Company accounts field, click the arrow to select CEU. 14. In the From account field, enter 605150. 15. In the To account field, enter 605150. 16. Close the Journal control form. 17. Close the Journal names form. Create the Periodic Journal: 1. On the Navigation Pane, click General ledger, then click Periodic, and then click Periodic journals. 2. Press CTRL+N to add a line. 3. In the Name field, click the arrow to select RentExp. 4. In the Journal number field, accept the system default. In the Description field, the field populates based on the the Journal names form setup. 5. Click the Lines button. 6. In the Account field, enter 131100. 7. In the Transaction text field, enter Rent. Use the Tab key to move to the next field. 8. In the Credit field, enter 1000. 9. In the Unit field, use the arrow to select Months. 10. In the Number field, enter 1. 11. Close the Journal voucher form. 12. Close the Journal form.
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Post the entry for June: 1. On the Navigation Pane, click General ledger, then click Journals, and then click General journal. 2. Press CTRL+N to add a line. 3. In the Name field, click the arrow to select GenJrn. 4. Click the Lines button. 5. Click the Period journal button. 6. Click the Retrieve journal option. 7. In the To date field, enter 06/30/2008. 8. In the Periodic journal number field, use the arrow to select RentExp. 9. Click OK to retrieve the journal information. 10. In the Journal voucher form, click the Post button. 11. Click Post. 12. Close the Infolog form. 13. Close the Journal voucher form. 14. Close the Journal form.
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General Ledger Transaction Reversal

Microsoft Dynamics AX 2009 enables users to easily reverse transactions posted incorrectly. The transaction reversal feature includes: Setup options in General Ledger parameters Number sequences for tracing purposes The ability to reverse a transaction and subledger transactions The ability to undo a reversal Inquiry on tracing
The following transactions can be reversed: General Ledger transactions Customer transactions, except transactions that relate to sales orders or projects Vendor transactions, except transactions that relate to purchase orders Fixed asset transactions
General Ledger Transaction Reversal - Further Description

You can select only one transaction at a time for reversal, and you must reverse it at the last transaction level. For example, an invoice only can be reversed if it is not paid. To reverse a paid invoice, you first must reverse the payment. The reversal functionality applies to: The last transaction level Transactions in the origin module
The reversal functionality does not apply to: Transactions included in the bank reconciliation Project invoices and credit notes Vendor invoices entered through purchase orders Sales invoices entered through sales orders Inventory transactions Delivery notes posted into the ledger
NOTE: You also can enable Reason codes for transaction reversal.
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Procedure: Reverse a Transaction - Set Up Number Sequence
Before you use the reverse functionality, select a number sequence for Transaction Reversal and Trace number in General ledger parameters on the Number sequences tab. Follow these steps to reverse a transaction. 1. Enter a number sequence for the Trace number reference. The system uses the trace number on the original transaction and also on the reversal of the reversal. This makes it possible to trace the: o Original transaction o Reversed transaction o Reversal of the reversed 2. Enter a number sequence for the Transaction reversal reference. NOTE: You can set the number sequence to Continuous by clicking Basic, then clicking Setup, then clicking Number Sequences, clicking Number Sequences, and then clicking General Tab. 3. Optionally, select the Correction check box on the Ledger tab to reverse the connected ledger transaction by using correction. You can reverse a debit transaction by adding a minus debit transaction, and you can reverse a credit transaction by adding a minus credit transaction. NOTE: You cannot reverse a transaction in a previously closed fiscal year.
Procedure: Reverse a Transaction - Transaction Level

You can use the following examples of forms to reverse a transaction: Click General Ledger, click Chart of Account details, and click Transactions Click Accounts Receivables, then click Customers, and then click Transactions Click Accounts Payables, then click Vendor, and then click Transactions
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Follow these steps to reverse a transaction at the transaction level. 1. Select the transaction to reverse. 2. Click Reverse transaction. 3. Select the date of posting for the reversal transaction. The date cannot be before the original posting date or in a closed period. 4. Click OK. The transaction itself and all related transactions that were created when the original transaction is posted are reversed. The results include the following: Both new and old reversed transactions now receive a special marking R(eversed) allowing you to select these transactions in: o o o Reports Inquiries Periodic jobs
The R marking identifies all transactions settled through reversal and are currently still settled.
Procedure: Revoke a Reversed Transaction

You also can reverse a reversal which involves the following actions: Settlements between the original transaction and its reverse are canceled. The original transaction is marked as an original transaction.
Follow these steps to reverse a reversal. 1. Follow one of these paths: o Click General Ledger, then click Chart of Account details, and then select Transactions. o Click Accounts Receivable, then click Customers, and then click Transactions. o Click Accounts Payable, then click Vendors, and then click Transactions. 2. Select the reversed or original transaction to revoke the reversed transaction. 3. Click Reverse Transaction. 4. Select the date of posting for the revocation transaction, and then click OK. The reversed transaction and all transactions that you created by using the reversal are revoked, and the revocation transactions share the same trace number. 5. Select a transaction to view all the transactions with the same trace number, and then click Reversed Tracing.
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NOTE: Reversed tracing is active only for reversed transactions and reversed transactions that you revoke.
Inquiry and Reports on Transaction Reversal

When you use inquiries and reports: The identification of the reversal (trace number) and the reversal marking (R) must be displayed. In the dialog of some inquiries and reports in General Ledger, Accounts Receivable, and Accounts Payable, select whether the report or inquiry should include transactions that are reversed and settled (R transactions). The Include reversed parameter is, for example, included in reports such as account statements and aging reports.
Test Your Knowledge

You can select multiple transactions for reversal at the same time. ( ) True ( ) False
Reversing Entries - GL
The action of reversing entry functionality lets users enter a general journal transaction with a reversing date. After you post the transaction in the general journal, the original transaction is posted based on the transaction date, and the transaction reversal is posted based on the reversing date. The action of reversing entry functionality provides an easy way to perform transaction reversal for accruals. You need accrual type transactions to accurately reflect balances on financial statements.
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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. Account Interest on bank loans Long term interest payable Debit amount 50 USD 50 USD Credit amount
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. Account Long term interest payable Interest on bank loans Debit amount 50 USD 50 USD Credit amount
When the actual transaction for payment of interest is entered on October 15, the following transaction occurs: Account Long term interest payable Interest on bank loans Debit amount 50 USD 50 USD Credit amount
The overall balance for the interest expense for October is a debit of 50.00 USD.
Procedure: Create a Reversing Entry

You can set up the Reversing entry and Reversing date fields in the General Journal header to default on all lines or on the journal lines.
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Follow these steps to designate on the header that a general journal entry is a reversing entry: 1. To access the Journal form, click on General ledger, then click Journals, and then click General journal. 2. Enter a journal. 3. Select the Reversing entry check box. If the Reversing entry check box is selected, you must enter a date in the Reversing date field. 4. In the Reversing date field, enter a posting date for the reversing voucher. NOTE: You also can access the Reversing entry and Reversing date fields from the General tab in the Journal form.
HINT: If a Transaction text is defined in Basic > Setup > Transaction Text for Ledger - Reversing Entry, the text will be used automatically as prefix text in the reversing entry's transaction text field.
NOTE:To change the reversing date of an individual transaction in this journal, click the Lines button to open the Journal voucher form. Enter a new date in the Reversing date field.
Test Your Knowledge

Which of the following statements correctly describe Microsoft Dynamics AX 2009 Reversing Entry functionality? (Select all that apply.) ( ) Reversing entry functionality lets users enter a general journal transaction with a reversing date. ( ) After you post transactions, the original transaction posts based on the transaction date, and the transaction reversal posts based on the reversing date. ( ) Reversing entry functionality provides transaction reversal for accruals. Accrual type transactions are needed to accurately reflect balances on financial statements. ( ) Reversing entry functionality serves only the purpose of correcting or backing out incorrect transactions.
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Which of the following fields designates a reversing entry? (Select all that apply.) ( ) Reversing entry ( ) Correcting entry ( ) Reversing date ( ) Correction date
Inquire and View Reports on Daily Journal Transactions

You can run various reports to help you review and reconcile General Ledger posted data.
Report: Print Journal

There are two ways to print a list of transactions in a General journal: Go to General ledger, then click Journals, then click General journal. Next, highlight and select the journal you wish to print, and then click the Print button, and finally click Journal.
FIGURE 5.8 GENERAL JOURNAL REPORT
Go to General Ledger, then click Reports, then click Journals, and click Print Journal to print a list of transactions entered in the current journal.
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Report: Nonposted journal lines
Use one of these paths to print the Nonposted journal lines report: General Ledger, then click Reports, then click Journals, and then click Nonposted Journal Lines. General Ledger, then click Chart of Account Details, then click Inquiry, and then click Daily Journal Transactions.
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. The Non-posted journal lines report prints the journal lines that have not yet been posted.
FIGURE 5.9 NONPOSTED JOURNAL LINES REPORT
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Report: Account Statement
Go to General Ledger, then click Chart of Account Details, and then click Account Statement to print an account statement to view a record of transactions on accounts and their effect on account balances.
FIGURE 5.10 ACCOUNT STATEMENT REPORT
Report: Balance List

Print a Balance list report that shows the opening and closing balance for all accounts for a given period. Use the report to: View debit and credit totals Quickly analyze development in the different accounts
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To access this report, click General ledger, click Reports, click Transactions, click Periodic, and click Balance list.
FIGURE 5.11 BALANCE LIST REPORT
Report: Trial Balance

If the total of the debits and credits are error free and posted correctly to the General Ledger: 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.
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To access this report, click General ledger, click Reports, click Transactions, click Periodic, and click Trial balance.
FIGURE 5.12 TRIAL BALANCE REPORT
Report: Audit Trail

Use the Audit trail form to trace a transaction to its origin for internal and external auditing and analysis. An audit trail is a time-stamped record of all the changes made to a record. It contains the name/identification of the user who made the modification and typically also includes the reason for the change. An audit trail enables you to audit the system for a record of alterations, and also to reconstruct the data at a specified time.
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To access this form, click General ledger, click Inquiries, and click Audit trail.
FIGURE 5.13 AUDIT TRAIL FORM
Report: Voucher Transactions

Use the Voucher Transactions form to view ledger transactions by voucher number and posting date. To access this form, click General ledger, click Inquiries, and click Voucher transactions. After you enter the criteria in the Inquiry form, click OK to continue.
FIGURE 5.14 VOUCHER TRANSACTIONS FORM
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Summary
By using the connectivity in Microsoft Dynamics AX 2009, 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 offers various posting options, as well.
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2.
3.
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Solutions
Enter General Ledger Transactions
Test Your Knowledge
General journals are used to post transactions in which of the following accounts? (Select all that apply.) () General ledger () Bank () Customer () Vendor The information you enter in a general journal is temporary and changeable as long as the journal is unposted. () True ( ) False What information are needed to create a journal entry? (Select all that apply.) () Accounting date () Ledger account () Offset account () Debit or credit amount
Posting Multiple Journals

Test Your Knowledge
When can Multiple journals be posted? (Select all that apply.) ( ) Yearly () Immediately ( ) On a delayed schedule () Set up as a job for batch processing
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Approval Journals
Test Your Knowledge
In Microsoft Dynamics AX 2009, you can set up journals that require mandatory approval. () True ( ) False
Voucher Templates
Test Your Knowledge
With which journals can you use voucher templates? (Select all that apply.) () General journal ( ) Fixed assets journal () Accounts payable invoice journal ( ) Purchase journal Which voucher template type allows users to recreate a voucher for the same accounts and values as the original entry? ( ) Percent ( ) Division ( ) Aggregate () Amount
General Ledger Transaction Reversal

Test Your Knowledge
You can select multiple transactions for reversal at the same time. ( ) True () False
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Reversing Entries - GL
Test Your Knowledge
Which of the following statements correctly describe Microsoft Dynamics AX 2009 Reversing Entry functionality? (Select all that apply.) () Reversing entry functionality lets users enter a general journal transaction with a reversing date. () After you post transactions, the original transaction posts based on the transaction date, and the transaction reversal posts based on the reversing date. () Reversing entry functionality provides transaction reversal for accruals. Accrual type transactions are needed to accurately reflect balances on financial statements. ( ) Reversing entry functionality serves only the purpose of correcting or backing out incorrect transactions. 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 6: SALES TAX SETUP

Objectives
The objectives are: Provide an overview on sales tax Create Ledger Posting Groups Create Sales Tax Authorities Create Sales Tax Settlement Periods Create Sales Tax Codes Create Sales Tax Codes Intervals Create Sales Tax Groups Create Item Sales Tax Groups Set up Sales tax jurisdictions. Create Sales Tax Transactions Create Sales Tax Exempt Data Calculate and Post Withholding Sales Tax
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 2009, the tax module offers many different options for: Tax calculation Posting Reporting
This course explores the extensive functionality for sales tax handling.
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Sales Tax Overview

All businesses must collect and pay taxes to various tax authorities. Different countries have different rules and rates. In some countries, the rules differ between states or counties. This topic provides a general overview on taxes, with the focus on sales taxes, although the tax system in Microsoft Dynamics AX 2009 can process many kinds of taxes and duties. The sales tax system within Microsoft Dynamics AX 2009 functions as follows: The user specifies where to post sales taxes by entering a ledger account in the Ledger posting groups. The user specifies the sales tax authorities by using the Sales tax authorities form. The user specifies when and how frequently to settle under sales tax settlement periods. The user defines how much to collect or pay as a certain amount or percentage; the user sets this up under the Sales tax codes. The system determines whether a sales tax should be imposed on a sale or purchase order through a combination of the Sales tax group and the Item sales tax group.
Sales Tax Overview - Suggested Steps

The image illustrates the steps for setting up tax information. If you follow the steps in this order, you can avoid having to go back and forth between dialog boxes in Microsoft Dynamics AX 2009.
FIGURE 6.1 SALES TAX SETUP
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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 2009 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.
Sales Tax Overview- Example

The following table shows the: Sales tax setup for a customer and an item Attached tax groups and the associated tax codes
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.
FIGURE 6.2 AFFECT OF SALES TAX CODES ON SALES TAX CALCULATION
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.
Ledger Posting Groups

The ledger posting groups control the automatic posting of sales taxes in Microsoft Dynamics AX 2009. You must create the accounts that General Ledger uses in the Chart of Accounts before you can use them to set up the ledger posting groups. The following characteristics apply to ledger posting groups: A ledger account is updated automatically when the system calculates taxes and updates invoice posting. The system attaches the ledger accounts that the taxes are posted in to the sales tax code.
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Because each ledger account can use several tax codes, a ledger posting group determines posting. Each ledger posting group can contain several ledger accounts. The description field for that account indicates the way each account 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.
Ledger Posting Groups - Types of Accounts

The number of accounts you must set up depends on the use of the group and national law. For example, you can set up accounts for: Sales-tax payable Use-tax payable Settlement account
Procedure: Create Ledger Posting Groups - Overview Tab

Follow these steps to create ledger posting groups:
FIGURE 6.3 ACCOUNT GROUP- LEDGER POSTING GROUPS FORM
1. Click General ledger, then click Setup, then click Ledger posting groups, and then click the Overview tab. 2. Enter a unique name for the ledger posting group in the Ledger posting group field. 3. Enter a meaningful name to describe the ledger posting group in the Description field. The description appears on reports and other areas throughout Microsoft Dynamics AX 2009.
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HINT: Describe the groups so that you can recognize them. This description appears with the code of the ledger posting group. 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 automatically are 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 on the Setup tab in the Chart of accounts form. However, if you want to select other ledger accounts, click According to account type in the Sales tax payable, Use tax payable or Settlement account lists.
Create Ledger Posting Groups - Posting Example

Here is a brief example about posting sales taxes. 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: Ledger account Customer account (Accounts Receivable) Sales tax payable* Sales account (domestic) Debit ($) 100 5 95 Credit ($)
** 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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Procedure: Create Ledger Posting Groups - Sales Tax Receivable
Follow these steps to create sales tax receivable ledger posting groups: 1. Select the ledger account for incoming taxes (receivable from the tax authority) in the Sales tax receivables list. 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: Ledger account Vendor account (Accounts payable) VAT paid (Sales tax receivable)** Inventory account (Expense account) 5 95 Debit ($) Credit ($) 100
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.
Procedure: Create Ledger Posting Groups - Use Tax Payable

Follow these steps to create use tax payable ledger posting groups: 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. 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.
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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.
An example will be shown in the next lesson section.
Create Ledger Posting Groups- Use Tax Payable Example

Here is an example that shows the concept of use tax payable. 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: Ledger account Vendor account (Accounts Payable) Use tax payable*** Office supplies (Expense account) 105 Debit ($) Credit ($) 100 5
***This account represents the ledger account specified in this field. 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.
Procedure: Create Ledger Posting Groups Settlement

Follow these steps to create settlement accounts for ledger posting groups: 1. Select the ledger account that the system debits when you pay taxes in the Settlement account list. 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 on the General tab: o Select the ledger account for posting gains on cash discounts in the Vendor cash discount list. You can use this account to view a more accurate audit trail on the transaction. 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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The ledger posting groups have the following characteristics: You can attach them to individual sales tax codes They determine the ledger accounts to which the sales taxes calculated for the sales tax code are posted
Test Your Knowledge

Each ledger account can use several tax codes. True or False? ( ) True ( ) False 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 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
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Lab 6.1 - Create a Ledger Posting Group

In this lab, you will set up ledger accounts and a ledger posting group for use in posting sales tax transactions. 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.
Challenge Yourself!
Create an account to record the sales tax payable and the sales tax settlements for the Alabama customer. Set up a new ledger posting group to assign to the Alabama customer to automate postings of sales tax transactions.
Need a Little Help?

1. When you create a new account for the sales tax liability for the Alabama customer, use account 220105 in the Chart of Accounts. 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: 1. On the Navigation Pane, click General ledger, then click Chart of Account details. 2. Press CTRL+N to add a line. 3. In the Ledger account field, enter 220105. 4. In the Account name field, enter Alabama state sales tax payable. 5. In the Search name field, enter ALsales tax pay. 6. In the Account type field, click the arrow to select Balance. 7. Click the Setup tab. 8. In the Posting type field, click the arrow to select Sales tax. 9. Close the Chart of accounts form.
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Now, set up the ledger posting group: 1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, click Ledger posting groups, and then click Overview tab. 2. Press CTRL+N 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 Account group form.
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Sales Tax Authorities

Companies pay and report taxes to authorities. The authorities determine when and where the company pays its taxes. Tax authorities can be countries, states, regions, and cities. 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.
Procedure: Create a Sales Tax Authority - Overview Tab

Follow these steps to create a sales tax authority:
FIGURE 6.4 AUTHORITY FORM
1. Click General ledger, then click Setup, then click Sales tax, click Sales tax authorities, and then click the Overview tab. 2. Enter a unique code for the authorities that you send tax declarations and payments in the Authority field. Microsoft Dynamics AX 2009 uses this code throughout the system to refer to a particular authority. 3. 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 easy to identify. The name display together with the tax authority code.
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4. Select the vendor to make tax payments to the appropriate authorities in the Vendor account list. The sales tax payments then are posted automatically to the settlement account specified in the Ledger posting group. When you select a vendor, the vendor's address is entered automatically. If you leave the field blank, you must pay the tax authorities directly. 5. Select the report layout to print for the tax authority in the Report layout list.
Procedure: Create a Sales Tax Authority - General Tab

Follow these steps to create a sales tax authority, for fields on the General tab: 1. Select the rounding form to use for rounding the sales tax amount on the General tab in the Rounding form list. This feature is available only for the German and standard sales tax reports. The following rounding forms are available: o Normal - Round up numbers five and higher and round down numbers lower than five to the right of the specified unit. o Downward - Round down any number to the right of the specified unit. o Rounding-up - Round up any number adjacent to the specified unit. o Own advantage - Round any number to the company's advantage. When the system settles sales tax, the total sales tax amount rounds automatically according to the setup on the sales tax authority. 2. Specify: o The general unit for rounding sales tax amounts in the Roundoff field, according to the chosen rounding form. The ledger accounts to post gains and losses for rounding in the Account gain and Account loss fields. 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.
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Procedure: Create a Sales Tax Authority- Address and Contact Tabs
Follow these steps to create a sales tax authority, for fields on the Address and Contact information tabs: 1. On the Address tab, enter the address of the Sales tax authority. 2. Enter the remaining contact information on the Contact Information tab of the Sales tax authority. 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.
Test Your Knowledge

Tax authorities can be ______. (Select all that apply.) ( ) Countries ( ) States ( ) Regions ( ) Cities Sales tax can be paid by the AX system to _____ ? (Select all that apply.) ( ) A client ( ) An employee ( ) A vendor ( ) A sales tax authority
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Lab 6.2 - Create a Sales Tax Authority

This lab demonstrates how to create a sales tax authority in AX 2009. 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.
Challenge Yourself!
Set up the Alabama sales tax authority. Use ALA for the authority name.
Need a Little Help?

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
1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax authorities. 2. Press CTRL+N to add a new line. 3. In the Authority field, enter ALA. 4. In the Name field, enter Alabama Authorities. 5. In the Report layout field, click the arrow to select U.S. report layout. 6. Click the General tab. 7. In the Rounding form field, click the arrow to select Normal. 8. In the Round-off field, enter .01. 9. Close the Authority form.
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Lab 6.3 - Create and Assign a Vendor to the Sales Tax Authority
To make paying the sales tax authorities more efficient, you can assign a vendor to the authority. This lab shows how to assign a vendor. Scenario Phyllis, the Accounting Manager for Contoso, has discovered that assigning a vendor to a sales tax authority has the following advantages: She can make payments as a part of the typical payment routines. When she runs the Sales tax payment periodic job, the amount the company owes the sales tax authority transfers to the sales tax authority's vendor account. During the company's usual payment routine, the payment to the sales tax authority is created automatically with payments to other vendors.
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 Name Search name Group Terms of payment Method of payment Value State of Alabama AL tax 10 M15-Month end + 15 days USAUSD_CHK
Challenge Yourself!
Create a vendor for Alabama sales tax. Assign the vendor to the sales tax authority for Alabama.
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Need a Little Help?
1. When you add a vendor, Microsoft Dynamics AX 2009 can assign the vendor number because of the Accounts Payable setup in Contoso. Ensure that this setup is correct. 2. Assign the new vendor to the sales tax authority for the State of Alabama.
Step by Step
Ensure that the setup is correct for automatic vendor numbering: 1. Click Basic, then click Setup, then click Number sequences, and then click Number sequences. 2. Select the AP_001 number sequence. 3. Click the General tab. 4. Make sure that the Manual check box is not selected. 5. Close the Number sequences form. Set up the vendor: 1. On the Navigation Pane, click Accounts payable, then click Vendor details. 2. Press CTRL+N to add a line. In Contoso, because of accounts payable setup, the next available vendor number is assigned automatically. 3. In the Name field, enter State of Alabama. 4. In the Search name field, enter AL tax. 5. In the Group field, click the arrow to select 70- Tax Authorities. 6. Click the Payment tab. 7. In the Term of payment field, use the arrow to select M15. 8. In the Method of payment field, use the arrow to select USAUSD_CHK. 9. Close the Vendor form. Assign the vendor to the authority: 1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax authorities. 2. Locate the line for Alabama Authorities. 3. In the Vendor account field, click the arrow to select State of Alabama. 4. Close the Authority form.
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Sales Tax Settlement Periods

Sales tax settlement periods specify the intervals when the company reports and pays taxes. The company then can determine which sales tax transactions to report to the authorities and which not to report. The system automatically marks the settlement period when it must report the transaction. After it reports to the authorities, the system prints transactions from the current period. NOTE: If the Include corrections field on the Sales tax tab page in the General ledger parameters form is selected, Microsoft Dynamics AX 2009 automatically prints all transactions that it must include in previous periods. Reporting periods depend on the size of the company, laws, and the authorities. Typical periods could be: Monthly Quarterly Yearly
Procedure: Create Sales Tax Settlement Period - Overview Tab

Follow these steps to create a sales tax authority:
FIGURE 6.5 AUTHORITY FORM
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1. Click General ledger, then click Setup, then click Sales tax, click Sales tax authorities, and then click the Overview tab. 2. Enter a unique code for the authorities that you send tax declarations and payments in the Authority field. Microsoft Dynamics AX 2009 uses this code throughout the system to refer to a particular authority. 3. 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 easy to identify. The name display together with the tax authority code. 4. Select the vendor to make tax payments to the appropriate authorities in the Vendor account list. The sales tax payments then are posted automatically to the settlement account specified in the Ledger posting group. When you select a vendor, the vendor's address is entered automatically. If you leave the field blank, you must pay the tax authorities directly. 5. Select the report layout to print for the tax authority in the Report layout list.
Procedure: Create Sales Tax Settlement Periods - Period Interval

Follow these steps to set up period intervals for the sales tax settlement periods: 1. Click General ledger, then click Setup, click Sales tax, and then click Sales tax settlement periods. 2. Select the reporting interval in days, months, or years, in the Period interval list, on the General tab. 3. 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.
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4. To create a new period, click on the Periods tab, and then press CTRL+N, or click New period. 5. 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.
Example: Create Sales Tax Settlement Periods

In the year 2008, Contoso settles its sales taxes every quarter. To create the first period, enter January 1, 2008 in the From date field and March 31, 2008 in the To date field. To create the other quarters of the year, click New period three additional times.
FIGURE 6.6 SALES TAX SETTLEMENT PERIODS FORM
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.
Inquire about Sales Tax Settlement Periods

When you set up the sales tax settlement periods, you can inquire, report and pay sales tax for specific settlement periods.
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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 authority by selecting a sales tax authority on the Overview tab 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 authority by selecting a sales tax authority on the Overview tab and clicking Posted sales tax. This provides an overview of each sales tax transaction, which is posted in Microsoft Dynamics AX 2009 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.
Test Your Knowledge

You use settlement periods to create and manage the periods the company uses to report sales tax. ( ) True ( ) False Sales tax settlement periods specify at what intervals the company reports taxes. ( ) True ( ) False
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Lab 6.4 - Setup of Sales Tax Settlements

This lab explains an example of setting up a sales tax settlement period. 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: Settlement period January 1 - March 31 April 1 - June 30 July 01 - September 30 October 1 - December 31 Deadline for reporting April 15 July 15 October 15 January 15, the following year
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.
Challenge Yourself!
Set up the required sales tax settlement for Alabama.
Need a Little Help?

1. 2. 3. 4. Create the Sales tax settlement period. Attach the Terms of payment to the settlement period. Set up the Period length. Create the individual Settlement periods.
Step by Step
Set up the Overview tab: 1. On the Navigation Pane, click General ledger, click Setup, click Sales tax, and then click Sales tax settlement periods. 2. Press CTRL+N to insert a line. 3. In the Settlement period field, enter AL. 4. In the Description field, enter Alabama Quarterly. 5. In the Authority field, click the arrow to select ALA-Alabama Authorities. 6. In the Terms of payment field, use the arrow to select N015.
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Set up the General tab: 1. Click the General tab. 2. In the Period interval field, use the arrow to select Months. 3. In the Number of units field, enter 3. Set up the Periods tab: 1. 2. 3. 4. 5. Click the Periods tab. Press CTRL+N to add a line, if needed. In the From date field, enter 01/01/2008. In the To date field, enter 03/31/2008. Click the New period button three additional times to create the remaining quarters. 6. Close the Sales tax settlement periods form.
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Sales Tax Codes

The Sales tax code is a central part of the setup. It specifies: How taxes are calculated The value that is used for tax calculation
The sales tax value is very important because no tax is calculated without it. A sales tax code includes information about: How the tax is calculated, posted and reported When the payments are made To whom the payments are made
You can define the sales tax rate for: Various intervals and periods in Values Limits on sales tax amounts in Limits
Sales Tax Codes - When to Create

Create sales tax codes when you initially set up the system. Update the sales tax codes when you need to make changes to existing taxes or when you add new taxes. Because taxes frequently depend on geographic location, changes to the company's market can result in the need for new sales tax codes. NOTE: If a company operates in the United States, it is highly recommended that you set up sales tax jurisdictions, as well as sales tax codes. You must attach sale tax jurisdictions to sales tax groups. You can attach sales tax codes to the sales tax group through the sales tax jurisdictions.
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Procedure: Create a Sales Tax Code - Overview
Follow these steps to create a sales tax code:
FIGURE 6.7 SALES TAX CODES FORM
1. Click General ledger, then click Setup, click Sales tax, then click Sales tax codes, and then click the Overview tab. 2. Press CTRL+N 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 Microsoft Dynamics AX 2009. 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 Microsoft Dynamics AX 2009 system. NOTE: If a company operates in the United States, set up sales tax jurisdictions in the Sales tax jurisdiction list. 5. Select the period and the sales tax authority used to calculate the sales tax code in the Settlement period list. 6. Select 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 automatically are posted in the General Ledger. You can create the posting groups in the Ledger posting groups form.
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Procedure: Create a Sales Tax Code - Calculation options
Follow these steps to set up calculation options when you create a sales tax code: 1. Click General ledger, then click Setup, click Sales tax, then click Sales tax codes, and then click the Overview tab. 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. CAUTION: If the Sales on sales tax field is blank, this indicates that the amounts include all other taxes. o Amount per unit - Indicate the unit with a Unit. If the transaction is in another unit, it converts automatically based on Unit conversion in Inventory.
Calculated percentage of the net amount. 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.
Procedure: Create a Sales Tax Code - Additional Calculation Options

Follow these steps to set up additional calculation options when you create a sales tax code: 1. Click General ledger, then click Setup, click Sales tax, then click Sales tax codes, and then click the Calculation tab. 2. Click the Values button. Enter the Percentage/Amount in the Values form. Click 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.
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3. Click the General tab. Select the currency in which tax must be calculated 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. NOTE: Also set up a purchase duty on a sales tax code by selecting the Purchase duty check box. Users typically use the purchase duty if, for example, a European company imports goods from a non-European company. Set up the purchase duty in the General ledger > Setup > Posting > Purchase duty form. 4. Select whether a 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.
Procedure: Create a Sales Tax Code- Rounding and Report Setup

Follow these steps to set up rounding and reports when you create a sales tax code: 1. Click General ledger, then click Setup, click Sales tax, then click Sales tax codes, and 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 with different rounding values set up. Round-off = 0.01 98,765.43 Round-off = 0.10 98,765.40 Round-off = 1.00 98,765.00 Round-off = 100.00 98,800.00
3. Click the Report setup or Report setup - credit note tab. 4. 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 2009, 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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Rounding and Report Setup Notes
NOTE: Click General ledger > Reports > Base data > Sales tax codes to print a report listing all the sales tax codes.
NOTE: In the Parameters form (click General ledger, click Setup, click Parameters, and then click the Sales tax tab), 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.
Example Setup- Calculation Methods for Sales Tax Codes

Here is an example that shows a sample setup for sales tax codes: Scenario: Phyllis is the Accounting Manager at Contoso. Contoso's customer base includes many international customers. To increase the understanding of sales tax, Phyllis is asking your assistance in reviewing the calculation of sales tax by using various options available in Microsoft Dynamics AX 2009. The following table shows Phyllis's review of setups in Contoso: Setup 1 - Use percentage of amount Duty 1 Duty 2 Percentage of net amount Percentage of net amount Setup 2 - Use percentage of sales tax Percentage of net amount Percentage of sales tax (Duty 1 in the sales tax on sales tax list) Percentage of gross amount Rate
10% 20%
Sales Tax Calculation
Percentage of gross amount
25%
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Example Setup- Calculation Methods for Sales Tax Codes- Incomplete Table
How would you apply the information in the table above to determine the effect of each setup on an invoice for 10.00 USD by completing the following table with the provided information? Setup 1 Rate Duty 1 Duty 2 Gross Amount Sales Tax Calculation Duty + Sales Tax Total Sale The completed table will be shown in the next lesson section. 25% 10% 20% Formula Calculation Setup 2 Formula Calculation
Example Setup- Calculation Methods for Sales Tax Codes- Completed Table
The completed table as shown here: Setup 1 Rate Duty 1 Duty 2 Gross Amount Sales Tax Calculation Duty + Sales Tax Total Sale 25% 10% 20% Formula $10 * 10% $10 * 20% $10+1+2 $13 * 25% $1+2+3. 25 $10 + 6.25 Calculation $1.00 $2.00 $13.00 $ 3.25 $ 6.25 $16.25 Setup 2 Formula $10 * 10% ($10+1) *20% $10+1+ 2.20 $13.20 * 25% $1+2.20 +3.30 $10 + 6.50 Calculation $1.00 $2.20 $13.20 $ 3.30 $ 6.50 $16.50
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Test Your Knowledge
A sales tax code includes information about which of the following? (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
Sales Tax Codes Intervals

Use Microsoft Dynamics AX 2009 to specify: The sales tax rates to use in different intervals A lower and upper amount limit for sales tax calculations
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.
Procedure: Create Sales Tax Codes Intervals - Effective Dates

Follow these steps to set up the From date and To date field in sales tax code intervals, both Limits and Values:
FIGURE 6.8 SALES TAX VALUES FORM
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1. Click General ledger, then click Setup, then click Sales tax, then click Sales tax codes, and then click Limits OR click General ledger, then click Setup, then click Sales tax, then click Sales tax codes, and then click Values. 2. 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. 3. Enter the last date the tax limits apply in the To date field. 4. 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. 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.
Procedure: Create Sales Tax Codes Intervals - Minimums and Maximums

Follow these steps to set up the minimums and maximums in sales tax code intervals in the Limits form: 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. Follow these 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.
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Sales Tax Code Intervals- Values Versus Limits
For a sales tax code, Values define the tax to calculate, on either a percentage or amount per unit, based upon the effective interval dates and the minimum and upper limits. These minimum and upper limits are the minimum and upper sales amount to which the amount entered in the Value field applies. 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.
Procedure: Create Sales Tax Codes Intervals - Marginal Base Options

Follow these steps to set up the marginal base options in sales tax code intervals: 1. In the Sales tax code form on the Calculation tab, 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. 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.
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Procedure: Create Sales Tax Codes Intervals - Method of Calculation
Follow these steps to set up the method of calculation in sales tax code intervals: 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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Test Your Knowledge
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 Task: Specify the origin for the sales tax limits in the Marginal base list. Match the options to the answers. a. Value of the unit, including any other taxes b. The total value for the invoice, excluding any other taxes c. Value of the unit, excluding any other taxes d. The total value for the invoice, including any other taxes e. Value of the line, excluding any other taxes f. Value of the line, including any other taxes
_____ 1. Net amount for each line _____ 2. Net amount for each unit _____ 3. Net amount of invoice balance _____ 4. Gross amount for each line _____ 5. Gross amount for each unit _____ 6. Invoice total incl. other sales tax amounts
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Lab 6.5 - Set Up Sales Tax Codes Intervals

This lab provides practice in setting up sales tax code intervals. Scenario Ken, the Controller for Contoso, has received a notification from the State of Florida that as of 07/01/2008, 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: Minimum limit 0.00 50.01 100.01 Maximum limit 50.00 100.00 0.00 Tax rate 10% 9% 8%
Challenge Yourself!
Use sales tax code intervals to structure the AV_FLST tax rate in Microsoft Dynamics AX 2009 for the new rates. Microsoft Dynamics AX 2009 will require an ending date for the tax. Plan to enter an artificial date of 12/31/2020.
Need a Little Help?

1. Before you add a new line to the Values form, you must enter dates on the existing line. Suggested dates are 1/01/2003 - 6/30/2008. 2. Add the lines to the Values form. All of them will be assigned the same date range assigned.
Step by Step
Edit the LA-FLST line: 1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax codes. 2. Locate the line for AV_FLST. 3. Click the Values button. Edit the existing line by adding dates: 1. In the From date field, enter 01/01/2003. 2. In the To date field, enter 06/30/2008. 3. Press CTRL+N to add a line.
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4. 5. 6. 7. 8. In the From date field, enter 07/01/2008. In the To date field, enter 12/31/2020. In the Minimum limit field, enter 0.00. In the Upper limit field, enter 50.00. In the Value field, enter 10.00.
Create the rest of the lines: 1. Press CTRL+N to add a line. 2. Repeat steps 1 through 8 to add the remaining tax intervals to the form. 3. Close the Values form. 4. Close the Sales tax codes form.
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Sales Tax Groups

A sales tax group includes all sales tax codes that apply when you trade goods or services with customers and vendors. 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.
Sales Tax Groups - Example Comparison

If your company needs the following tax codes, here is an example of how to apply sales tax codes to a sales tax group: VAT (only applies for domestic customers) Export Tax (only applies for foreign customers) Environmental duty (applies to all customers)
In a table, they appear as follows: Domestic customers VAT Export Tax Environmental Duty Yes No Yes Foreign customers No Yes Yes
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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Procedure: Create a Sales Tax Group
Follow these steps to create a sales tax group:
FIGURE 6.9 SALES TAX GROUP FORM
Because the geographic location of the customer or the supplier determines taxes, you usually assign the same Sales tax group to similar trading partners in the system. The correct tax codes used by the system are attached to this Sales tax group. The Sales tax group then associates with customer information specified in the Sales tax group field found on the Setup tab in the Customers form. 1. Click General ledger, then click Setup, then click Sales tax, then click Sales tax groups, and then click the Setup tab. 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. 4. Select Sales tax 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. 5. Select the rounding criteria for the sales tax group in the Rounding by list.
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Rounding By- Additional Information
The following is additional information on the choices available in the Rounding by field on the Sales tax group form. 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 roundoff. 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.
Procedure: Create a Sales Tax Group - Additional Fields

Follow these steps to set up additional fields in Sales tax groups: 1. Click General ledger, then click Setup, then click Sales tax, then click Sales tax groups, and then click the Setup tab. 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. 3. Select the Reverse sales tax on cash discount check box to reverse sales tax on a cash discount on the General tab. 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 Parameters defaults to the field. 4. Select one or more sales tax codes to use with the sales tax group on the Setup tab. The fields on the Setup tab automatically fill in with values from the Sales tax codes form.
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5. Select the Use-tax check box to indicate whether the company is responsible for calculating and paying use-tax on the purchase. This is U.S.-specific functionality. If the company is not responsible, the vendor calculates and pays the tax. If the vendor did not charge tax, the system credits the tax to the account shown in the Use-tax payable field in Ledger posting groups. How the tax is debited depends on how you configured Parameters in the Use sales tax module for the United States tax system. If the Use-tax option is selected, the tax posts to the same account as the expense. If the tax posts to the account specified in the Use-tax expense field in Ledger posting groups, there are no deductions for taxes on purchases and the tax posts together with the expense. The value is entered automatically from the Use-tax field in Sales tax groups, but you can change it if necessary.
Procedure: Create a Sales Tax Group - Attach to Customer or Vendor

Follow these steps to attach a sales tax group to a customer or vendor: 1. Attach a sales tax group to a customer or vendor on the Setup tab of the Customers form or Vendors form. This is the default sales tax group for transactions that involve the customer. As with all defaults, you can change the sales tax group on individual transactions, if necessary. 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. 2. Indicate whether the amounts entered in journals include sales tax. For example, if the total invoice amount of EUR 110.00 is entered in the Debit or Credit field in a journal, and this amount includes the sales tax, then Microsoft Dynamics AX 2009 uses this information to calculate the net amount and sales tax amount. In this example, the net amount is EUR 100.00 (110.00/1.10), and the sales tax amount is EUR 10. 3. Specify this information for the system by selecting the Amount incl. Sales tax check box in the General ledger parameters form on the Sales tax tab, in the Journal Names form on the General tab, or for a specific journal on the Setup tab.
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Amount Includes Sales Tax- Additional Information
You can indicate if the amounts entered in journals include sales tax or do not include sales tax. You can specify this information in three different forms: 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. Individual Journal forms Specify a default setting on an individual journal to override the default settings of the Journal names and Parameters forms. The highest priority setting is entered automatically on journal templates, journals, and journal lines as they are created, but you can select or clear the Amount incl. sales tax field at any time. 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.
Test Your Knowledge

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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Item Sales Tax Groups

Because items generally determine taxes, you must indicate how taxes are calculated for each item. The Item sales tax group includes all the sales tax codes that apply when you sell that item. The Item sales tax group also may include most of the sales tax codes in the system. When you create the Item sales tax groups, attach the group to Items. 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.
Procedure: Create Item Sales Tax Groups

Follow these steps to create item sales tax groups:
FIGURE 6.10 ITEM SALES TAX GROUP FORM
1. Click General ledger, then click Setup, then click Sales tax, and then click Item sales tax groups. 2. Enter a unique name for the item sales tax group in the Item sales tax group field on the Overview tab, and a description in the Description field. This information appears on reports and in other areas throughout Microsoft Dynamics AX 2009. 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.
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Procedure: Set Up a Default Item Sales Tax Group for an Item
To ensure sales tax calculates on all transactions for a specific item, set up a default item sales tax group for an item. Follow these steps to set up the default: 1. Click Inventory management, then click Items. 2. Select an item on the Overview tab. 3. Select a value in the Item sales tax group lookup field on the References tab in the Purchase order section. This value is the default item sales tax group for the selected item when you enter it on a purchase order line. 4. Select a value in the Item sales tax group lookup field in the Sales order section. This value is the default item sales tax group for the selected item when you enter it on a sales purchase line.
Set Up a Default Item Sales Tax Group for a Ledger Account

To ensure sales tax calculates on all journal transactions that you post to ledger accounts: 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.
Procedure: Set Up a Default Item Sales Tax Group for a Ledger Account
Follow this procedure to select a default item sales tax group for all ledger accounts: 1. Click General ledger, then click Setup, then click Parameters. 2. Select the default item sales tax group in the Item sales tax group list on the Sales tax tab. 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.
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Follow these steps to set up a default item sales tax group for a particular ledger account: 1. Click General ledger, then 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.
Test Your Knowledge

You cannot change any default item sales tax group that appears automatically on a journal line before you post the transaction. ( ) True ( ) False
Sales Tax Jurisdictions

Sales tax jurisdictions can be entered by clicking General ledger, then clicking Setup, then clicking Sales tax, and then clicking Sales tax jurisdictions. Use this form to create the sales tax jurisdictions for which the company must collect sales tax. The sales tax jurisdiction functionality is designed for companies that operate in the United States, but is not a legal requirement. The form is available if an administrator enables the Sales tax jurisdictions configuration key. 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 ledger posting accounts that are 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. NOTE: A sales tax jurisdiction is not a geographical area. A geographical area can be covered by several jurisdictions, for example a district, town, country or state.
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Procedure: Set Up Sales Tax Jurisdictions
Follow this procedure to set up sales tax jurisdictions: 1. Make sure that the configuration key is turned on for sales tax jurisdictions. Click on Administration, click Setup, click System, then click Configuration. Expand the General ledger configuration key, then expand the Sales tax key, and then if needed click the Sales tax jurisdictions key to activate it. Close the form, and allow the system to update the system configuration. 2. Click General ledger, click Setup, click Sales tax, and click Sales tax jurisdictions. 3. Press CTRL+N to create a new sales tax jurisdiction record. 4. In the Sales tax jurisdiction code check box, enter a unique identifier for a sales tax jurisdiction. 5. In the Name text box, enter the name of the jurisdiction. 6. On the General tab, in the Settlement period and the Ledger posting group lookup fields, select the values that you want. 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 sales taxes that the sales tax authority collects in the sales tax jurisdiction. 9. Close the forms. NOTE: To create a jurisdiction sales tax code from an existing sales tax code: Click General ledger > Setup > Sales tax > Sales tax codes. In the line for the sales tax code on the Overview tab, in the Sales tax jurisdiction code lookup field, select a jurisdiction.
Procedure: Set Up Sales Tax Groups for Jurisdictions

Follow this procedure to set up sales tax groups for jurisdictions: 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. The Jurisdiction setup tab appears. 3. On the Jurisdiction setup tab, in the Rounding by drop-down list, select the rounding convention for the sales tax group. 4. On the Jurisdiction setup tab, select 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.
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5. If necessary, you can change the sales tax codes of the jurisdiction in the Sales tax jurisdictions form. 6. Click the General tab. 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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Lab 6.6 - Comprehensive Setup of Sales Tax

This lab offers comprehensive practice in setting up sales tax information in Microsoft Dynamics AX 2009. 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 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 2009. You determine to do the following: Set up Blue Yonder Airlines as a vendor Set up the Arkansas Department of Revenue as a vendor Set up two accounts in the Chart of Accounts: one for the Arkansas state sales tax payable (account 220107) and one for the Little Rock city sales tax payable (account 220245) Set up both ledger posting groups Set up a sales tax authority Set up sales tax settlement periods Set up sales tax codes Set up sales tax code intervals Set up sales tax groups Set up item sales tax groups
The vendor's information is in the following table: Field Name City State ZIP Code/Postal Code Group Currency Terms of Payment Value Blue Yonder Airlines Little Rock AR 72205 10 USD N030
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Comprehensive Setup of Sales Tax - Additional Lab Data
The information for Arkansas is in the following table: Field Name Value The Arkansas Department of Revenue AR tax 70 M15 USAUSD_CHK
Search Name Group Terms of Payment Method of Payment
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. The tax breakdown for city and state taxes is as follows: City of Little Rock: three percent, the maximum tax limit that can be paid is $1000 in sales tax State of Arkansas: two percent
Challenge Yourself!
Setup two ledger posting groups, by using ARST for Arkansas and LRAST for Little Rock. Setup a sales tax group by using ARLRA as the group name. Setup a sales tax authority by using ARA as the authority name. Enter a sales tax settlement period (AR) to use for each code. The term of payment is fifteen days. The settlement period is an interval of one month. Then set up three new periods starting with the beginning of the current month. 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. Add the two new sales tax codes to the ALL item tax group. After you complete the sales tax setup, record the invoice in an accounts payable Invoicejournal. Make sure when creating the journal that you have deselected the field Amount incl. sales tax found on the Setup tab of the journal. Set your session date to 6/30/2008. Review the tax calculation in the journal.
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Need a Little Help?
For a visual representation of the sales tax setup process, refer to the figure found in the lesson titled Sales Tax Overview- Suggested steps. Note that Sales tax jurisdictions will not be used in this lab example. 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: 1. On the Navigation Pane, click Accounts payable, then click Vendors. 2. Press CTRL+N to add a line. In CEU, the next available vendor number is assigned automatically based on setups in the sample data. 3. In the Name field, enter Blue Yonder Airlines. 4. In the Search name field, enter Blue Yonder. 5. In the Group field, click the arrow to select 10. 6. Click the Address tab. Click CTRL+N to create a new address. 7. In the Zip code field, enter 72205. 8. Verify that the tab entries are correct; these values were populated automatically based on setups in the sample data. 9. Click the Payment tab. 10. In the Term of payment field, use the arrow to select N030. 11. In the Method of payment field, use the arrow to select USAUSD_CHK. 12. Click the Save icon on the toolbar. Set up the Arkansas Department of Revenue as a vendor: 1. Click the Overview tab. 2. Press CTRL+N to add a line. The next available vendor number is assigned automatically. 3. In the Name field, enter The Arkansas Department of Revenue. 4. In the Search name field, enter AR tax. 5. In the Group field, click the arrow to select 70. 6. Click the Payment tab. 7. In the Term of payment field, use the arrow to select M15. 8. In the Method of payment field, use the arrow to select USAUSD_CHK. 9. Close the Vendor form.
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Set up accounts in the Chart of accounts account for sales tax payable: 1. On the Navigation Pane, click General ledger, then click Chart of account details. 2. Press CTRL+N to add a line. 3. In the Ledger account field, enter 220107. 4. In the Account name field, enter Arkansas state sales tax payable. 5. In the Search name field, enter AR sales tax pay. 6. In the Account type field, click the arrow to select Balance. 7. Click the Setup tab. 8. In the Posting type field, click the arrow to select Sales tax. 9. Click the Overview tab. 10. Repeat steps 2 through 8, adding an account 220245 for Little Rock city sales tax payable. 11. Close the Chart of accounts form. Set up ledger posting groups: 1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, then click Ledger posting groups, then click the Overview tab. 2. Press CTRL+N to add a line. 3. In the Ledger posting group field, enter ARST. 4. In the Description field, enter Arkansas State Tax. 5. In the Sales tax payable field, click the arrow to select account 220107. 6. In the Settlement account field, click the arrow to select account 220107. 7. Repeat steps 2 through 6, adding a ledger posting group for Little Rock. 8. Close the Account group form. Set up a sales tax authority for Arkansas: 1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax authorities. 2. Press CTRL+N to add a new line. 3. In the Authority field, enter ARA. 4. In the Name field, enter Arkansas Authorities. 5. In the Vendor account field, click the arrow to select The Arkansas Department of Revenue. 6. In the Report layout field, click the arrow to select U.S. report layout. 7. Click the General tab. 8. In the Rounding form field, click the arrow to select Normal.
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9. 10. 11. 12. In the Round-off field, enter .01. In the Account gain field, enter 618160. In the Account loss field, enter 618160. Close the Authority form.
Set up a sales tax settlement periods: 1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax settlement periods. 2. Press CTRL+N to insert a line. 3. In the Settlement period field, enter AR. 4. In the Description field, enter Arkansas Monthly. 5. In the Authority field, click the arrow to select ARA-Arkansas Authority. 6. In the Terms of payment field, use the arrow to select M15. 7. Click the General tab. 8. In the Period interval field, use the arrow to select Months. 9. In the Number of units field, enter 1. 10. Click the Periods tab. 11. If a new line is not available, press CTRL+N to add a line. 12. In the From date field, enter 06/01/2008. 13. In the To date field, enter 06/30/2008. 14. Click the New period button twice to create two additional months. 15. Close the Sales tax settlement periods form. Set up sales tax codes and sales tax code intervals for Arkansas and Little Rock: 1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax codes. 2. Press CTRL+N to add a line. 3. In the Sales tax code field, enter ALL_ARST. 4. In the Name field, enter Arkansas State - All. 5. In the Settlement period field, click the arrow to select AR. 6. In the Ledger posting group field, click the arrow to select ARST. 7. Click the Values button. 8. Edit the existing line. 9. In the Minimum limit field, enter 0.00. 10. In the Upper limit field, enter 0.00. 11. In the Value field, enter 2.00 for the percentage. 12. Close the Values form. 13. Repeat steps 2 through 6 for Little Rock and enter ALL_LRCITY. 14. Click the Values button. 15. Edit the existing line.
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16. 17. 18. 19. 20. 21. 22. 23. 24. In the Minimum limit field, enter 0.00. In the Upper limit field, enter 0.00. In the Value field, enter 3.00 for the percentage. Close the Values form. Click the Limits button. Edit the existing line. In the Minimum sales tax field, enter 0.00 In the Maximum sales tax field, enter 1000.00 Close the Limits form.
25. Close the Sales tax codes form. Set up a sales tax group: 1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax groups. 2. Press CTRL+N to add a line. 3. In the Sales tax group field, enter ARLRA. 4. In the Description field, enter Arkansas and Little Rock. 5. In the Sales tax group setup field, select Sales tax codes. 6. In the Rounding by field, select Sales tax codes. 7. Click the Setup tab. 8. In the Sales tax code field, select ALL_ARST. 9. Press CTRL+N to add a line. 10. In the Sales tax code field, select ALL_LRCITY. 11. Close the Sales tax group form. 12. On the Navigation Pane, click General ledger, click Setup, click Sales tax, and then click Item sales tax groups. 13. On the Overview tab, click the line. 14. Click the Setup tab. 15. Press CTRL+N to add a line. 16. In the Sales tax code field, use the arrow to select ALL_ARST. 17. Press CTRL+N to add a line. 18. In the Sales tax code field, use the arrow to select ALL_LRCITY. 19. Close the form. Record the invoice in an accounts payable invoice journal: 1. Click Accounts payable, click Journals, click Invoices, and click Invoice journal. 2. Press CTRL+N to add a line. 3. Click the Name field, and select APInv. 4. Click the Setup tab, and make sure that the Amount incl. sales tax check box is not selected.
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5. Click the Lines button. 6. Enter 06/30/2008 in the Date field. Accept the Voucher number and Vendor Account type. 7. Select Blue Yonder Airlines in the Account field. 8. In the Invoice field, enter COMPLAB. 9. Enter 50,000 in the Credit field. 10. Enter 618900 in the Offset account field. 11. In the Sales tax group field, select ARLRA. 12. In the Item sales tax group field, select ALL. 13. Click the Inquiries button, then click Sales tax totals. Verify the correct calculation of sales tax: a. For Arkansas, two percent of 50,000 is 1,000. b. For Little Rock, three percent of 50,000 is 1,500; however, the maximum tax should be 1,000. c. Total tax should be 2,000. 14. Close all forms.
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Lab 6.7 - Including Sales Tax in Journal Amounts

This lab demonstrates how to set up sales tax in journal amounts. 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.
Challenge Yourself!
Help Ken find the two forms within Microsoft Dynamics AX 2009 that can specify whether the journal amounts include sales tax.
Need a Little Help?

Check the General ledger parameters and the Journal names form.
Step by Step
Follow these steps: 1. On the Navigation Pane, click General ledger, then click Setup, and then click Parameters. 2. Click the Sales tax tab. 3. In the Amount incl. sales tax field, select the field. 4. Close the form. 5. On the Navigation Pane, click General ledger, then click Setup, then click Journals, and then click Journal names. 6. Click the General tab. 7. In the Amount incl. sales tax field, select the field. 8. Use the GenJrn journal. 9. Close the form.
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Sales Tax Transactions

Sales tax transactions are important in every business. In Microsoft Dynamics AX 2009, you can: Run a sales tax payment report Revise the sales tax amount on a transaction before posting Post sales tax on prepayments Create transactions with conditional sales tax Import a sales tax
Procedure: Run a Sales Tax Payment Report

Follow these steps to run a sales tax payments report to calculate the sales tax that is due for a given period:
FIGURE 6.11 SALES TAX PAYMENT FORM
1. Click General ledger, then click Periodic, then click Sales tax payment, then click Sales tax payment. 2. In the Settlement period list, select the settlement period for when the sales tax payment is being calculated. 3. In the From date field, enter the first day of the sales tax settlement period to be calculated. This corresponds to the date in the From date field on the Sales tax settlements period form. 4. In the Transactions date field, enter the date for when the sales tax report is calculated. The default value is the system date. However, you can change this date. For example, if you enter the end date of the settlement period, the sales tax payment calculates for all transactions that are posted in the settlement period.
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Procedure: Run a Sales Tax Payment Report - Sales Tax Payment Version Options
Follow these steps to select the kind of transactions to include in the Sales Tax Payment Report, when clicking the Sales Tax Payment Version field: 1. Select Original to select sales tax transactions on the first posted settlement calculation for the period interval. 2. Select Corrections to select sales tax transactions that are not included in the first posted settlement calculation for the period interval. The report includes all subsequent payments that are posted for the settlement period. 3. Select Latest corrections to select sales tax transactions that are included in the most recent settlement calculation made for the period. If you select the Update check box and this option, the settlement calculation of the current job becomes the most recent settlement calculation. 4. Select Total list to select all sales tax transactions to settle in the current period. NOTE: This field is not available if you select the Include corrections check box on the Sales tax tab of the General ledger parameters form.
Procedure: Run a Sales Tax Payment Report- Using the Update Check Box
The settlement calculation only includes the sales tax that you have not yet paid to the sales tax authority. You can make several payments for a single period. Follow these steps to enter additional information when you run a Sales Tax Payment Report: 1. To post the settlement automatically, specify a number sequence for the sales tax payment voucher on the Number sequences tab in the General ledger parameters form. 2. If you create a vendor account for the sales tax authority on the settlement period, a vendor transaction is created automatically when you select the Update check box and then click OK. If you do not specify a vendor account, you must create a payment to the sales tax authority manually to pay the sales tax you owe for the settlement period. 3. To run the Sales tax payment report without posting it to check the status of the outstanding sales taxes, run the report with the Update option deselected. 4. Click OK to run the report.
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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 > Periodic > Sales tax list to print a report about sales tax postings that you have not yet updated.
Procedure: Revise the Sales Tax Amount on a Transaction Before Posting

In Microsoft Dynamics AX 2009, most of the sales tax posting and calculation occurs automatically. However, occasionally a company may receive several invoices on which the sales tax amount differs from what Microsoft Dynamics AX 2009 calculates automatically. To make the sales tax amounts match the invoices, the user may have to change the sales tax amount on a transaction before posting. Follow these 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 Sales tax to open the Temporary sales tax transactions form. NOTE: If you are working on purchase order or sales order lines, you must first click Setup and then click Sales tax to open the Temporary Sales tax transaction form.
Procedure: Revise the Sales Tax Amount on a Transaction Before Posting - Select Revision Type
Follow these steps to revise the sales tax amount: 1. Select one of the three types of revisions: o Enter a correction of the sales tax amount in the Adjusted amount field for a selected sales tax code line on the Adjustment tab. This amount appears in the Adjusted amount in total field at the top of the form. o Enter an adjustment amount in the Adjusted amount in total field if the transaction has several sales tax code lines. This amount distributes among the sales tax code lines that appear in the Temporary sales tax transactions form. o Enter adjustments to the use tax amount in the Adjusted sales tax charge field if the sales tax code line applies to use taxes on the Adjustment tab. View the original use tax for the sales tax code line in the Sales tax charge field.
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2. Click Apply to close the form and to save the changes or click Reset to cancel changes. 3. Press ESC to close the Temporary sales tax transactions form and return to the journal lines or order lines.
Procedure: Post Sales Tax on Prepayments

A tax authority can require a company to record sales taxes on prepayments from customers, although a sale is not made. Follow these steps to set up sales tax on prepayments: 1. Click Accounts receivable, then click Setup, then click Parameters. 2. Select the Sales tax on prepayments check box on the Ledger and sales tax tab. Sales tax calculates and posts whenever you post a prepayment. 3. Select a posting profile in the Posting profile with prepayments list that defines the ledger account where the sales tax transactions on prepayments post temporarily.
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. 4. Select the Prepayment check box on the Payment tab when you post a prepayment through a journal. If you omit this step, the sales tax posts incorrectly. 5. 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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Transactions with Conditional Sales Tax
Users generally report sales taxes in the period when they create the invoice. When they use conditional sales tax, users must only report the sales tax and base amount to the sales tax authorities when they pay the invoice. If they do not settle the invoice in full with a single payment, the sales taxes automatically are reported proportionally to the actual amount paid on the invoice. EXAMPLE: On June 10 Contoso creates an invoice of EUR 10,000 plus EUR 2,500 in sales tax. 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.
Procedure: Create Transactions with Conditional Sales Tax

Follow these steps to set up conditional sales tax on a transaction: 1. Create a separate ledger account(s) for posting sales taxes for invoices awaiting settlement (Optional). This step is optional, because you can choose to post the conditional tax on the same account as the ordinary sales tax. However, many countries legally require separation of these postings. 2. Create a separate ledger posting group for posting the conditional tax to the separate ledger accounts (Optional). If you post the conditional tax to a separate ledger account, you must create a separate ledger posting group to control the postings. 3. Create two settlement periods: one to control conditional tax and one to report sales taxes to the authorities. A separate settlement period for the conditional tax has the following advantages: o It prevents the conditional sales tax from being reported incorrectly o It allows you to generate a report that displays undeclared conditional sales tax amounts
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Follow these steps to continue to set up conditional sales tax on a transaction: 1. Create two sales tax codes for: o the conditional tax o the sales taxes that you must report 2. When you create the sales tax code for the conditional sales tax, select the General tab. 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. 4. Set up sales tax groups and item sales tax groups. 5. Select the Conditional tax check box in the General ledger parameters form on the Sales tax tab. This parameter ensures the sales tax amount transfers from the ledger account for temporary posting of conditional taxes to the real sales tax account.
Sales Tax Import

If you must recode the import of sales tax, you may need to post a document with the whole amount treated as sales tax. This is necessary when you receive an invoice from the tax authorities for imported goods, and no base exists, and the tax amount is posted directly.
Scenario: Sales Tax Import

A European subsidiary of Contoso purchased goods from a vendor that is located in a non-EU country. The vendor did not charge sales tax on the invoice. The customs office sends an invoice to claim tax because the goods crossed the border and the company declared them at customs.
Procedure: Sales Tax Import

Direct Posting of Sales Tax Import Direct posting of sales tax codes is the only situation in which the sales tax code manually is entered in the invoice journal on the General tab. Follow these steps to make a direct posting of sales tax import: 1. Create a ledger account for sales tax import. 2. Create a sales tax code for import sales tax. 3. Create a ledger posting group for sales tax import and attach the ledger posting group to the import sales tax code.
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4. Open an invoice journal by clicking Accounts payable, then click Journals, then click Invoices, then click Invoice journals, and then click Invoice journal lines. 5. Select the import sales tax code on the General tab in the Sales tax code list. 6. Enter the invoice amount and select the import sales ledger account in the Offset account on the Overview tab. The invoice amount also is listed in the Sales tax amount field. 7. Click Post to post the journal. The sales tax amount is registered in the import sales tax ledger account automatically.
Test Your Knowledge

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. ( ) True ( ) False
Sales Tax Exemption

Certain countries or regions, for example the European Union, require companies to record justification for sales tax exemption. If no sales tax applies to trade documents, you must report why the sales order is sales tax exempted. To report sales tax exemption, you must associate a sales tax exempt description in trade documents. The sales tax exempt description is saved on sales tax transactions for history and reprinting. When you post sales orders in Microsoft Dynamics AX 2009: 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.
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Procedure: Create a Sales Tax Exempt Code
Follow these steps to provide justification to sales tax exemption:
FIGURE 6.12 SALES TAX EXEMPT CODES FORM
1. Click General ledger, then click Setup, then click Sales tax, then click Sales tax exempt codes. 2. Press CTRL+N 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, then click Setup, then click Sales tax, and 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. 4. Open General ledger, then click Setup, then click Sales tax, and then click Sales tax code. 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 tab 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.
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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 tabs.
NOTE: You can set up tax exempt numbers for customers and vendors in the Customers or Vendors form on the Setup tab.
Test Your Knowledge

If the invoice has sales tax exemptions, it groups the transactions according to sales code descriptions. ( ) True ( ) False
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Lab 6.8 - EU 115 Sales Tax Directive

This is a lab on the EU 115 Sales Tax Directive. 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.
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. Use the following data: Field Settlement period Ledger posting group Sales tax group Customer Item number Exempt code Description Data value CA CAST CA 9100 1000 Subsidiary Sales to Subsidiary
Need a Little Help?

Use the tax information that already is set up for California sales tax codes.
Step by Step
Follow these steps: 1. Click General ledger, then click Setup, then click Sales tax, then click Sales tax exempt codes. 2. Press CTRL+N 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.
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3. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, then click Sales tax codes. 4. Press CTRL+N to add a line. 5. In the Sales tax code field, enter Exempt. 6. In the Description 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. Click the General tab. 10. In the Print field, click the arrow to select Print code. This will print the sales tax exemption description. 11. Close the Sales tax code form. 12. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax groups. 13. Select the CA sales tax group in the Sales tax group form. 14. Click the Setup tab. 15. Delete all the sales tax codes by highlighting the rows and then by using the delete icon on the toolbar. Accept the warning message by clicking Yes. 16. Press CTRL+N to insert a line on the Setup tab. 17. In the Sales tax code list, use the arrow to select the Exempt sales tax code that you just created. 18. Click to select the Exempt check box. 19. Click the Exempt code field, and select Subsidiary. 20. Close the form. 21. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, then click Item sales tax groups. 22. Click the line. 23. Click the Setup tab. 24. Press CTRL+N to add a line. 25. In the Sales tax code field, click the arrow to select Exempt. 26. Close the form. 27. On the Navigation Pane, click Accounts receivable, then click Sales order details. 28. Click the Advanced button, if that button is visible. 29. Press CTRL+N to add a new order. 30. In the Customer account field, use the arrow to select customer 9100. 31. Click Yes to transfer the customer information, if prompted to do so. 32. Click OK to close the Create sales order form. 33. Click OK to close the Infolog form. 34. Click the Item number field in the lower pane. 35. In the Item number field, enter 1000. 36. In the Quantity field, enter 10.
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37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. Click the Setup tab in the lower pane. In the Item sales tax group field, use the arrow to select ALL. In the Sales tax group field, use the arrow to select CA. Click the Posting button in the header. Click the Invoice option. Close the Infolog form if necessary. In the Quantity field on the Parameters form, use the arrow to select All. This may already be selected for you. In the Print invoice field, select the field. This may already be selected for you. Click the OK button in the Posting confirmation form. Click Yes in the warning window. The invoice displays to the screen. Verify that the sales tax exempt description is on the invoice. Close the Invoice report. Close the Sales order form.
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Withholding Sales Tax

In some countries, the buyer is legally responsible for paying withholding tax. Withholding tax is due on non-inventory deliveries, frequently services, that a supplier, who is not an employee of the company, delivers. The buyer is legally responsible for withholding a certain percentage of the invoice amount at the time of payment. 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: Is a tax on vendors, that does not create sales tax transactions. Is a liability if it is calculated on vendor payments. Therefore, only balance sheet accounts or liability accounts are valid accounts for posting withholding tax. Is reported in fixed reports.
Procedure: Set Up Withholding Tax in Administration and General Ledger

Follow these steps to set up withholding tax in Administration and General Ledger: 1. Click Administration, then click Setup, then click System, and then click Configuration. 2. Expand the General ledger node and select the Withholding tax check box. 3. Click General ledger, then click Setup, then click Withholding tax, and then click Withholding tax codes. 4. Enter withholding tax codes with values and limits. 5. Click General ledger, then click Setup, then click Withholding tax, and then click Withholding tax groups. 6. Enter withholding tax groups and attach the relevant withholding tax codes on the Setup tab.
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Procedure: Set Up Withholding Tax in Accounts Payable
Because withholding tax applies only to vendor invoices, you must complete the setup in the Accounts payable section. Setting up withholding tax makes it more efficient to: Start the calculation of withholding tax when you pay a vendor invoice. Keep basis data about the vendor for reporting. Allow for the journal to propose this setup by default when you enter a payment into a journal for a vendor who is set up for withholding tax. However, you also can edit the calculated amounts, select a different withholding tax, or deactivate the withholding tax calculation for this particular payment.
Follow these steps to set up withholding tax in Accounts Payable and General Ledger: 1. Click Accounts Payable, and then click Vendors. 2. Select the Calculate withholding tax check box and a withholding tax group to start the calculation when you enter a payment in a journal on the Setup tab.
Procedure: Calculate and Post Withholding Tax

Calculate and post withholding tax in the Payment journal form in the Accounts payable section, or in the General journal form in the General ledger section. The default withholding tax group of the vendor displays in the withholding tax group list. Follow these steps to calculate and post withholding tax: 1. Click Accounts Payable, then click Journals, then click Payments, and then click Payment journal. 2. Click CTRL-N to create a new journal and then click Lines. 3. Enter a payment date and select the vendor account that is set up to calculate withholding tax. 4. Replace the default group with another group or delete it to avoid calculating withholding tax for the line. By default, the withholding tax group list contains the vendor's withholding tax group. 5. Click Functions, then click Settlement and select the Mark check box on the open invoice or invoices to pay. 6. Verify the Infolog form's information about the calculated withholding tax.
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This is a continuation of the procedure to calculate and post Withholding Tax. Follow these steps to continue: 1. Close the Infolog form, and optionally click the Withholding tax tab for each selected line to edit or delete the calculated withholding tax, or create new lines and enter the information. 2. Close the Settlements form. The payment amount on the journal line is reduced by the withholding tax amount automatically. 3. Validate and post the payment journal. NOTE: In the Payment journal lines form, all transactions are considered as payments and the withholding tax setup always is handled as described in the previous steps. In the General journal lines form, withholding tax is calculated automatically when the following conditions are true: You select a vendor account set up to calculate withholding tax on the journal line You see no entry in the Invoice field on the journal line's Invoice tab
Procedure: Withholding Sales Tax Reports and Inquiry

Follow these steps to create withholding sales tax reports and an inquiry: 1. Click General ledger, then click Reports, then click Transactions, and then click Withholding sales tax transactions to view a report about posted transactions with withheld sales tax. 2. Use the Monthly report to report withholding tax to tax authorities once a month. To run the report, click General ledger, then click Reports, then click External, and then click Withholding tax monthly report. 3. Use the Yearly report to report withholding tax to tax authorities once a year. To run the report, click General ledger, then click Reports, then click External, and then click Withholding tax yearly report. 4. Send the Certification report, which is in the form of a letter, to the supplier. It contains the withholding tax data grouped by withholding tax source. To run this report, click General ledger, then click Reports, then click External, and then click Withholding tax certification report. 5. Click General ledger, then click Inquiries, then click Tax, and then click Posted withholding tax to view withholding tax transactions with the possibility to view the ledger transactions for each withholding tax entry.
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Test Your Knowledge
What is a withholding tax? (Select all that apply.) ( ) Is calculated on a vendor payment, which is a liability. Therefore, only balance sheet accounts or liability accounts are valid accounts for posting withholding tax. ( ) Is recorded on the transaction. ( ) Is a tax on vendors, which does not create sales tax transactions. ( ) Is reported in fixed reports.
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 2009, 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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2.
3.
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Solutions
Ledger Posting Groups
Test Your Knowledge
Each ledger account can use several tax codes. True or False? () True ( ) False 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 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
Sales Tax Authorities

Test Your Knowledge
Tax authorities can be ______. (Select all that apply.) () Countries () States () Regions () Cities
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Sales tax can be paid by the AX system to _____ ? (Select all that apply.) ( ) A client ( ) An employee () A vendor () A sales tax authority
Sales Tax Settlement Periods

Test Your Knowledge
You use settlement periods to create and manage the periods the company uses to report sales tax. () True ( ) False Sales tax settlement periods specify at what intervals the company reports taxes. () True ( ) False
Sales Tax Codes

Test Your Knowledge
A sales tax code includes information about which of the following? (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
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Sales Tax Codes Intervals
Test Your Knowledge
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 Task: Specify the origin for the sales tax limits in the Marginal base list. Match the options to the answers. e 1: Net amount for each line c 2: Net amount for each unit b 3: Net amount of invoice balance f 4: Gross amount for each line a 5: Gross amount for each unit d 6: Invoice total incl. other sales tax amounts a. Value of the unit, including any other taxes b. The total value for the invoice, excluding any other taxes c. Value of the unit, excluding any other taxes d. The total value for the invoice, including any other taxes e. Value of the line, excluding any other taxes f. Value of the line, including any other taxes
Sales Tax Groups

Test Your Knowledge
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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Item Sales Tax Groups
Test Your Knowledge
You cannot change any default item sales tax group that appears automatically on a journal line before you post the transaction. ( ) True () False

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. () True ( ) False
Sales Tax Exemption

Test Your Knowledge
If the invoice has sales tax exemptions, it groups the transactions according to sales code descriptions. ( ) True () False
Withholding Sales Tax

Test Your Knowledge
What is a withholding tax? (Select all that apply.) () Is calculated on a vendor payment, which is a liability. Therefore, only balance sheet accounts or liability accounts are valid accounts for posting withholding tax. ( ) Is recorded on the transaction. () Is a tax on vendors, which does not create sales tax transactions. () Is reported in fixed reports.
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CHAPTER 7: BANK MANAGEMENT SETUP

Objectives
The objectives are: Set up bank transaction types Set up bank transaction groups Set up bank parameters Set up payment purpose codes Set up bank groups Create a bank account Define the check layout for a bank account
Introduction
In Microsoft Dynamics AX 2009, companies use the 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: Registration number and account number Address Other contact information Currency Check set up Ledger account for posting
The application uses this information to process all bank transactions, such as payments and deposits. To use the Bank Management module, set up the following: Bank transaction types Bank transaction groups Bank groups Bank parameters Bank accounts Checks
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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 kinds 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 purchase 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.
Bank Transaction Types

Use bank transaction types to set up the types of transactions to be made in company bank accounts, such as deposit slips, fees, and interest charges. If the bank reports transactions on its account statements, companies can use a summation of the transaction types for summary reconciliation. 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.
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Procedure: Create Bank Transaction Types
Follow these steps to create bank transaction types.
FIGURE 7.1 BANK TRANSACTION TYPE FORM
Click Bank, click Setup, and then click Bank transaction type. Press CTRL+N to create a new record. Enter a unique code in the Bank transaction type field. Enter the name of the transaction type in the Name field. Click the Ledger 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. NOTE: Only one bank transaction type can be marked as NSF.
1. 2. 3. 4. 5.
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Bank Transaction Groups

Use bank transaction groups to set up groups of different bank transaction types. In the bank statement reconciliation, calculate totals for each bank transaction group and for each bank transaction type. For example, a group of transfers may include the bank transaction types of transfer and wire transfer.
FIGURE 7.2 BANK TRANSACTION GROUPS FORM
Procedure: Create Bank Transaction Groups

Follow these steps to set up bank transaction groups. 1. Click Bank, click Setup, and then click Bank transaction groups. 2. Press CTRL+N 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 Microsoft Dynamics AX 2009 tables. The bank transaction group is an alphanumeric string of up to 10 characters. 4. Enter a short description in the Description field. 5. Select a Bank transaction group to associate with a bank transaction type. 6. Click the Type tab. 7. 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.
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Test Your Knowledge
What is a Bank Transaction Group?
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Lab 7.1 - Create Bank Transaction Types and Bank Transaction Groups
Scenario 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.
Need a Little Help?

1. Create a bank transaction type for cash withdrawals. 2. Create a bank transaction group for bank charges. 3. Associate the new bank transaction group with fees and interest charges.
Step by Step
Create a bank transaction type for cash withdrawals. 1. 2. 3. 4. 5. 6. Click Bank, click Setup, and then click Bank transaction type. Press CTRL+N to insert a new record. In the Bank transaction type field, enter 20. Enter the name Cash Withdrawal in the Name field. Leave the Ledger account field blank. Close the Bank transaction type form.
Create a bank transaction group for bank charges. 1. 2. 3. 4. Click Bank, click Setup, and then click Bank transaction groups. Press CTRL+N to insert a new record. In the Bank transaction groups field, enter 80. Enter Bank Charges in the Description field.
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Associate the new bank transaction group with fees and interest. 1. From the Bank transaction groups form click the Type tab. 2. 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. 3. Press CTRL+N to insert a new record. 4. 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.
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Bank Management Parameters

Use the Bank parameters form to define rules for checks and to indicate the number sequences for the various kinds of transactions within Microsoft Dynamics AX 2009.
FIGURE 7.3 BANK PARAMETERS FORM
Procedure: Define Bank Parameters

Follow these steps to set up Bank parameters. 1. Click Bank, click Setup, and then click Parameters. 2. 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. 3. 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. 4. 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. 5. To require reason codes for bank transactions, select one or more of the following check boxes in the Reason code requirements area: o Require reasons for payment reversals o Require reasons for deposit slip payment cancellations
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6. Click the Number sequences tab. 7. Select a number sequence to associate with each reference from the Number sequence code list. NOTE: To define number sequence codes, click Basic, click Setup, click Number sequences, and then click Number sequences.
Payment Purpose Codes

Use the Payment purpose codes form to create payment purpose codes for the central bank, if it is required. The central bank is the official bank of a country or region.
FIGURE 7.4 PAYMENT PURPOSE CODES FORM
Procedure: Create Payment Purpose Codes

Follow these steps to set up payment purpose codes. 1. Click Bank, click Setup, and then click Payment purpose codes. 2. In the Central Bank Purpose Code field, enter the code used when reporting to the central bank. 3. Enter the name of the payment purpose code in the Name field. 4. Click the General tab. 5. Enter a description of the payment purpose code in the Purpose text field. 6. Enter any additional information about the payment purpose code in the Text field.
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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.
Procedure: Create Bank Groups

Follow these steps to create bank groups. Click Bank, click Setup, and then click Bank groups. Press CTRL+N to create a new record. Enter a unique code in the Bank groups field 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 a Bank group and then click the General tab. 7. On the General tab, enter any additional information for this account, such as the following: o Currency: Currency code for the bank group. o Validate bank account: Validation method that is used to validate bank account numbers. o Post account: Also known as PTT. This is an account that is used in European countries for electronic banking. It is a combined postal, telephone, and telegraph ID. o Days: Time limit, in days, for feedback from the bank on payments. o Suffix: Suffix of the bank. o Drawer: Code of the drawer. The bank provides this code. 8. Click the Address tab and enter the address for the bank. 9. Click the Contact Information tab and enter the information for the bank group's contact person. 1. 2. 3. 4.
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Test Your Knowledge
What is a Bank Group?
Bank Accounts
Enter and maintain all information for the company bank accounts in the Bank accounts form. Use the buttons on the form to view the details for each bank account, such as transactions, current balance, and checks that have been created.
FIGURE 7.5 BANK ACCOUNTS FORM
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Procedure: Create Bank Accounts - Overview
Follow these steps to create a new bank account. 1. To access the Bank accounts form, click Bank, and then click Bank Account details. 2. Press CTRL+N to create a new record. 3. In the Bank account field, enter a unique ID number to identify the bank account. You cannot modify the bank account value for existing bank accounts. 4. In the Name field, enter a name that is used to identify this account on printed reports and other areas. NOTE: Name accounts so that they can be easily identified. In Microsoft Dynamics AX 2009, bank accounts are identified by name and account number. 5. Select the group to which this bank belongs, if applicable, from the Bank groups list. 6. If the bank does not belong to a bank group, enter the Routing number that is provided by the bank. If a Bank group is selected, the Routing number field will be populated automatically based on the bank group setup. 7. Enter the bank-assigned account number in the Bank account number field. 8. Select a ledger account from the Ledger account to post records from the bank account. When you enter a transaction in the daily journal, it is posted to the ledger account when the record is entered in the bank account. If you enter the transaction directly in the bank account, it is posted in the Ledger when the account is reconciled. You can reconcile accounts by using reconcile account. 9. Select the currency code from the Currency list.
Procedure: Create Bank Accounts - General

Follow these steps to enter additional details on the bank account. 1. From the Bank accounts form, click the General tab. 2. Select the kind of bank account routing number from the Routing number type list. If your company makes international payments, you must make a selection in this field. 3. In the SWIFT code field, enter the Society for Worldwide Interbank Financial Telecommunication code, also known as the Bank Identifier Code (BIC).
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4. Enter the International Bank Account Number (IBAN) in the IBAN field. 5. Enter the bank or postal identification of the company in the Company ID and Division fields.
FIGURE 7.6 BANK ACCOUNTS FORM, GENERAL TAB
Procedure: Create Bank Accounts - Setup

Follow these steps to enter more information for the bank account.
FIGURE 7.7 BANK ACCOUNTS FORM, SETUP TAB
1. From the Bank accounts form, click the Setup tab. 2. Select the More currencies check box to enable posting in more than one currency for this bank account. When you generate deposit slips, one deposit slip is generated for each currency.
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3. In the Payment management area, in the Discounting maximum field, enter an amount for the maximum remittance for discount amount granted for the current bank. The amount is displayed on the Bank Remittance form on the Inquiries button in the Remittance journal. 4. Enter a maximum number of days for the bank to return a paymentrelated message in the Days field. The value determines the date in the Deadline field on the Open transaction editing form. 5. Enter the bank suffix in the Suffix field. 6. Enter the bank-issued drawer code in the Drawer field. 7. Select the Keep check box to keep the bank account number of the payment transaction if the transaction is removed from a remittance batch. 8. In the Setup area, select the validation method that is used to validate bank account numbers from the Validate bank account list. 9. Enter the code stated by the Banks Automated Clearing System (BACS) in the Sort code field. This code is used for electronic bank payments for BACS. 10. Enter the post, telegraph, and telephone (PTT) account number in the Post account field. 11. Enter the customer number of the company for debit direct in the Debit Direct ID field. 12. Enter the bank's control code in the Clearing field. NOTE: The values in the Days, Suffix, Drawer, Validate bank account, and Post account fields all default from the Bank group, if defined.
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Procedure: Create Bank Accounts - Other
Follow these steps to complete the remaining bank account setup.
FIGURE 7.8 BANK ACCOUNTS FORM, NEGOTIABLE INSTRUMENT TAB
1. From the Bank accounts form, click the Negotiable instrument tab. 2. Select the journal to hold the generated remittance fees from the Fee journal list. 3. Enter any additional information about fees and the ledger accounts to which the application posts the fees as required by the company in the remaining fields on the Negotiable instrument tab. 4. Click the Address tab and enter the address for the bank. 5. Click the Contact Information tab and enter the information for the bank group's contact person.
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Create a Bank Group and Bank Account

Scenario 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 2009 for this bank. Annie does not have address information for the bank account, but she does have the following specifications: For the bank group: o o The bank group name is CHTB for Chinese Trade Bank. The bank group routing number is 9876.
For the bank account: o o o o The bank account name is Bank Account - CNY. The bank account is part of the Chinese Trade Bank group. The bank account number is 433090321489. Postings should use a new balance account called Bank account CNY.
Challenge Yourself!
Create the new bank group. Create the new bank account.
Need a Little Help?

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. 1. 2. 3. 4. 5. 6. Click General ledger, and then click Chart of Account Details. Press CTRL+N to insert a new record. In the Ledger account field, enter 110115. In the Account name field, enter Bank Account CNY. In the Search name field, enter Bank Account CNY. Click the Account type arrow and select Balance.
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7. 8. 9. 10. Select the Locked in journal check box. Click the Setup tab. Click the arrow in the Currency field and select CNY. Close the Chart of accounts form.
Create the new bank group and assign the Chinese Yuan (CNY) to it. 1. 2. 3. 4. 5. 6. 7. 8. Click Bank, click Setup, and then click Bank groups. Press CTRL+N to insert a new record. In the Bank groups field, enter CHTB. Enter 9876 in the Routing number field. In the Description field, enter Chinese Trading Bank. Click the General tab. From the Currency list select CNY. Close the Bank groups form.
Create the new bank account that is part of the CHTB bank group. 1. From the Navigation pane, click Bank, and then click Bank Account Details. 2. Press CTRL+N 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 Ledger account field arrow and select 110115. 9. The Currency field automatically displays CNY, which defaults from the bank group. 10. Click the Setup tab. In the More currencies field, select the check box to enable posting in more than one currency for this bank account. 11. Close the Bank account 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.
FIGURE 7.9 CHECK LAYOUT FORM
Procedure: Define the Check Number

Follow these steps to define the check numbering. 1. To access the Check layout form, first access the Bank accounts form by clicking Bank and then clicking Bank account details. 2. From the Bank accounts form, select a bank account, click the Setup button, and then click Check layout. 3. Select the method to use for generating check numbers from the Check number method list. Select either method: o Fixed: Select when pre-printed checks exist. Before you use checks for payment, you must create them by clicking the Create checks button in the Bank account form. o Free: Select when pre-printed checks do not exist. Microsoft Dynamics AX 2009 automatically proposes check numbers when you are using checks for payment.
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Procedure: Define Check format
To define the check format, follow these steps: 1. In the Check layout form, click the General tab. 2. Select a layout for the check in the Check form field. 3. Enter the length of the paper on which the check is printing in the Paper length field. 4. Select the unit in which the paper size is measured from the Paper length unit list 5. Enter the starting position on the paper where the check must be printed in the Check start position field. 6. 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. 7. Enter either 1 or 2 to indicate whether to print one or two slip text copies in the Number of slip copies field. Even if you enter a number larger than two, no more than two copies can be printed at the same time. 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 Inch: shows the ruler in inches.
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Procedure: Select the Fields to Print on the Check
Follow these steps to select the fields that print on the check.
FIGURE 7.10 CHECK LAYOUT FORM, SETUP TAB
1. From the Check layout form, click the Setup tab. 2. Select from the following list of check boxes for every field to be printed on the check. o Bank account o Bank name o Bank number o Company name o Company logo 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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Procedure: Define MICR Options
Follow these steps to define MICR options.
FIGURE 7.11 CHECK LAYOUT FORM, CODES TAB
1. From the Check layout form, click the Codes tab. 2. Select the Print MICR line check box to print the MICR line on the check. 3. Enter the following information: o Leading zeros: Indicate whether the MICR line contains leading zeros. o Length of check number: Indicate the number of characters entered in the MICR line for the check number. o MICR-line: Enter the complete MICR line, which includes the delimiters. The check number cannot be entered because it is unique to each check. Designate the place for the check number in the MICR line with the character sequence %1. NOTE: The MICR line can be included only if the check is being printed on blank paper without preprinted information, such as watermarks.
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Procedure: Define Signatures
Follow these steps to define signatures.
FIGURE 7.12 CHECK LAYOUT FORM, SIGNATURE TAB
1. From the Check layout form, click the Signatures tab. 2. Select the check box for Print first signature or Print second signature to print signatures on the check. 3. Enter the highest amount that each signature is allowed in the First amount limit and Second amount limit fields. 4. If the Print first signature or Print second signature check boxes are selected, click the Signature button to select the signatures to print on the checks. 5. For each selected signature, click the Change button to select the file that contains the signature.
Procedure: Print a Test Check

When the check layout is complete, click the Print test button to preview the check layout.
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Test Your Knowledge
If you are using pre-printed checks, what method do you select in the Check number method field? ( ) Variable ( ) Fixed ( ) Print ( ) Original
Multiple Answer Question

How many signatures can the application print on a check? (Select all that apply.) ()1 ()2 ()3 ()4
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Lab 7.2 - Define a Check Layout

Scenario Set up the check layout for the new bank account that you created in the previous lab. Use these check layout requirements. Pre-printed checks cannot be used for this account. Checks must be printed in the U.S. format. The paper must be 8.5 inches long. The checks must print two inches under the top of the page. Two slip copies are required for each check. Before the check amount, the letters CHY must be displayed. The bank account, name, and number must be printed on the check.
Challenge Yourself!
Define the check layout for CNYBANK. Preview the check layout.
Need a Little Help?

1. 2. 3. 4. From the Bank accounts form, select CNYBANK. Open the Check layout form. On the General and Setup tabs, enter the specified information. Print a preview of the check layout.
Step by Step
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Click Bank, and then click Bank Account Details. Click the line for CNYBANK. Click the Setup button, and then select Check layout. In the Check number method field, select Free, because pre-printed checks are not used. In the Check form field, select U.S. check format. In the Paper length field, enter 8.5. In the Paper length unit field, select Inch. In the Check start position field, enter 2. In the Unit for the start position of the check field, select Inch. In the Number of slip copies field, enter 2.
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11. In the Prefix field, enter CHY. 12. Click the Setup tab. Select the check boxes for: o Bank account o Bank name o Bank number 13. Click the Print test button to preview the check layout.
Summary
This course focused on how banking functions are structured in Microsoft Dynamics AX 2009. 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 2009, 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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Test Your Knowledge

Test your knowledge with the following questions. 1. Task: Put the following steps in order to create an account for checks that are returned from the bank because the company lacks sufficient funds. Step _____ : Create a Bank Transaction Type of NSF. Step _____ : In the Bank Parameters form, in the NSF field, select the NSF Bank transaction type.
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2.
3.
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Solutions
Bank Transaction Groups
Test Your Knowledge
What is a Bank Transaction Group? MODEL ANSWER - A bank transaction group is used to set up groups of different bank transaction types. In the bank statement reconciliation, totals can be calculated for each bank transaction group and for each bank transaction type.
Bank Groups
Test Your Knowledge
What is a Bank Group? MODEL ANSWER - A bank group is used when several bank accounts share the same address information. When you create a new bank account and enter the bank group, the bank group information is copied to the account.
Check Layout
Test Your Knowledge
If you are using pre-printed checks, what method do you select in the Check number method field? ( ) Variable () Fixed ( ) Print ( ) Original
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Multiple Answer Question
How many signatures can the application print on a check? (Select all that apply.) () 1 () 2 ()3 ()4
Test Your Knowledge

1. Task: Put the following steps in order to create an account for checks that are returned from the bank because the company lacks sufficient funds. Step 1 : Create a Bank Transaction Type of NSF. Step 2 : In the Bank Parameters form, in the NSF field, select the NSF Bank transaction type.
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CHAPTER 8: ACCOUNTS PAYABLE SETUP

Objectives
The objectives are: Create a payment schedule Create terms of payment Create a payment day Set up a cash discount Create a payment fee Create a method of payment Set up vendor groups Set up posting profiles Create a new vendor
Introduction
This course describes the different Accounts Payable setup options in Microsoft Dynamics AX 2009. 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. Microsoft Dynamics AX 2009 offers extensive functionality to set up different vendor payment options. These global payment options are used in both the Accounts Payable and Accounts Receivable modules, and include the following: Payment schedules Payment days Terms of payment Cash discounts Methods of payment Payment fees
This course also explains the vendor setup to help you manage vendors and vendor transactions quickly and efficiently.
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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 payment schedule consists of consecutive payments in set time intervals. The payments can be a: Set amount Specified number of payments in which the amount owed is divided into 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 as long as the scheduled payments are made on time. This is also known as a finance plan, or contract payments.
Procedure: Create a Payment Schedule

Follow these steps to create a payment schedule. 1. To access the Payment schedules form, click Accounts payable, click Setup, click Payment, and then click Payment schedules. 2. On the Overview tab, enter a name to be used as identification of the payment schedule in the Payment Schedule field. 3. Enter a description in the Description field. 4. Click the General tab. 5. In the Allocation list, select an allocation method: o Total - Total amount outstanding on the invoice due. o Fixed amount - A specific, fixed amount is due for each payment on the specified payment dates.
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o o Fixed quantity - Payment of the total amount is divided into a fixed quantity of payments. Specified - A specified amount is due on each specified payment date. If Specified is selected, the payment schedules and amounts must be defined on the Payment lines tab.
FIGURE 8.1 PAYMENT SCHEDULES FORM, GENERAL TAB
Depending on the value selected in the Allocation list, different fields are enabled on the General and Payment lines tabs.
Procedure: Create a Total Payment Schedule

If Total is selected in the Allocation list, no other fields are enabled on the General tab.
Procedure: Create a Specified Payment Schedule

If the Specified option is selected in the Allocation list, follow these steps to complete the payment schedule setup. 1. From the Payment schedules form, General tab, in the Payment per list, select the date interval in Days, Months, or Years. The system uses this information when it calculates the due date of each installment. 2. Use the Sales tax allocation list to distribute the sales tax amount to the payment schedule installments.
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3. Click the Payment Lines tab to define the line information for the payment schedule, to designate how many different payments there should be, and to divide how much of the total should be paid in each payment. 4. Enter the time interval for each installment in the Quantity field. 5. Enter the value of the installment in the Amount currency field. Enter either the value of the installment as a percentage of the amount invoiced or as an absolute amount, depending on the value in the Percentage/Amount field. 6. Select whether the value entered is a percent or an absolute amount in the Percentage/Amount list.
Procedure: Create a Fixed Amount or Quantity Payment Schedule

If Fixed amount or Fixed quantity is selected in the Allocation list, follow these steps to complete the payment schedule setup. 1. From the Payment schedules form, General tab, in the Payment per list, select the date interval in Days, Months, or Years. The system uses this information when it calculates the due date of each installment. 2. In the Change field, enter the number of units related to the payment per value between the due dates of each installment. 3. If the Allocation field is set to fixed quantity, enter the fixed number of installments in the Number of payments field. 4. If the Allocation field is set to fixed amount, enter the fixed amount in the Amount currency field. 5. In the Minimum field, enter the minimum installment amount. Minimum amounts override calculated payment amounts.
Procedure: Apply or Change a Payment Schedule

You can apply the payment schedule to vendors or purchase orders. Follow these steps to apply the payment schedule to a purchase order. 1. Click Accounts payable, and then click Purchase Order Details. 2. Click the Advanced button. 3. Click the Price/discount tab. Select a payment schedule in the Payment schedule list.
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Follow these steps to change the payment schedule. 1. From the Purchase order form, click the Setup button, and then click Payment schedule. 2. Click the Payment lines tab. The payment plan is expanded into a worksheet for the purchase order. 3. Change the values in the Due date, Value, Disc. date, or Discount amount fields. Payment schedules also can be attached to terms of payment. The terms of payment determine the due date of the first installment. The due date of the following installments is calculated based on the information set up in the Payment schedules form.
Test Your Knowledge

A payment schedule consists of _____________. ( ) payments ( ) consecutive time intervals ( ) consecutive payments ( ) consecutive payments in set time intervals 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
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. Specify terms of payment for each: Vendor in the Vendors form. Customer in the Customers form. Purchase order in the Purchase order form. Sales order in the Sales order form.
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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, 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.
Procedure: Create Terms of Payment

Follow these steps to create a term of payment.
FIGURE 8.2 TERMS OF PAYMENT FORM
1. Click Accounts payable, click Setup, click Payment, and then click Terms of payment. 2. Press CTRL+N to create a new record. 3. On the Overview tab, 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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Procedure: Create Terms of Payment - Setup
Follow these steps to define the setup information for a term of payment. 1. From the Terms of payment form click the Setup tab. 2. Select the method that is used to calculate the due date in the Payment method list. o Net o Curr. Mth o Curr. Qtr. o Curr. Year o Curr. Week o C.O.D. 3. Enter the number of months to add to the payment method to calculate the due date in the Months field. 4. Enter the number of days to add to the payment method to calculate the due date in the Days field. For example, select Net and enter 20 in the Days field to pay a vendor 20 days after the invoice date. Or, select Curr. Mth. to pay the vendor invoice during the month of the invoice date. To extend the period add days to the Days field. 5. Link a Payment schedule to the term of payment in the Payment schedule list. The payment schedule defines how an invoiced amount is split into installments that must be paid in specific intervals. NOTE: If a term of payment is linked to a payment schedule, the rules set up in the term of payment are used to calculate the due date of the first installment. The rules set up in the payment schedule are used to calculate the due date of the following installments. 6. Select a payment day used for calculation of 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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Procedure: Create Terms of Payment - Language
Follow these steps to define additional language options for the terms of payment. 1. From the Terms of payment form, click the Language text 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 vendors that are set up with French as the language.
Procedure: Create Terms of Payment - C.O.D.

If the C.O.D. (Cash on delivery) payment method is selected, follow these steps, to complete the term of payment setup. 1. Select the Cash payment check box to indicate if payments should be made in cash and not by check. 2. In the Ledger posting area from the Cash list, select a ledger account for settlement of invoices that will be used for cash payment.
Procedure: Attach a Payment Term

You can attach the terms of payment to purchase orders or vendors. To attach a term of payment to a purchase order click Accounts payable, and then click Purchase Order Details. On the Price/discount tab, select the terms of payment in the Terms of payment list.
Test Your Knowledge

Task: Outline the steps to setting up a term of payment. Place the following steps in order. Step _____ : Create a new record. Step _____ : Type a terms of payment identifier. Step _____ : Specify the days (or other time unit). Step _____ : Select the payment method. Step _____ : Access the Terms of payment form in Accounts Payable. Step _____ : Type a description.
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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. Payment day can be specified for a specific: Day in the week Day in the month
Procedure: Create a Payment Day

Follow these steps to create a payment day.
FIGURE 8.3 PAYMENT DAYS FORM
1. Click Accounts payable, click Setup, click Payment, and then click Payment Days. 2. Press CTRL+N 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, on the Overview tab. 4. On the Payment day lines tab, select between Week and Month in the Week/Month list. If Week is selected, select a value from the Weekday list, and if Month is selected, enter in the Day field a value between 1 and 31.
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Set up the payment day in the Terms of Payment form on the Setup tab to define the payment date used for calculation of the due date.
Test Your Knowledge

The payment day can be specified in what interval? (Select all that apply.) ( ) Specific day in a week ( ) Specific date in a month ( ) Specific day in a year ( ) Specific day in a quarter
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Lab 8.1 - Terms of Payment

Scenario 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. Press CTRL+N. 3. In the Terms of payment field, type N012. 4. In the Description field, type Net 12 days. 5. Click the Setup tab. 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. 1. 2. 3. 4. Click Accounts Payable, and then click Vendor Details. Click the record for vendor 8004 (Southbridge Insurance Co.). Click the Payment tab. In the Terms of payment list, select the newly created term of payment N012.
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Cash Discount
Cash discounts are: Earned if a company meets the vendor payment terms on time, or are given to customers when they pay their invoices in a specified period. Linked to the Customer tables and Vendor tables. Posted to the ledger account specified for the cash discount automatically if an invoice is settled on time.
Scenario
Contoso obtains a cash discount if it pays vendor invoices within certain dates. Contoso has set up the following codes: 5D10% - Cash discount of 10 percent when the amount is paid within five days. 10D5% - Cash discount of 5 percent when the amount is paid within ten days. 14D2% - Cash discount of 2 percent when the amount is paid within 14 days.
The three cash discounts follow one another as the cash discount date nears. However, only one cash discount is granted. To specify the cash discounts following one another 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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Procedure: Set Up Cash Discounts
Follow these steps to set up cash discounts.
FIGURE 8.4 CASH DISCOUNTS FORM
1. Click Accounts payable, click Setup, click Payment, and then click Cash discounts. 2. 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. 3. Enter a brief description for the cash discount in the Description field. For example, enter 7 days - 4% Discount for the discount code 7D4. 4. Select the cash discount code used when the criteria for obtaining the current cash discount is exceeded in the Next discount code list. This selection lets you to define a set of cash discounts that follow one another.
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Procedure: Set Up Cash Discounts - Setup
Follow these steps to define setup options for cash discounts.
FIGURE 8.5 CASH DISCOUNTS FORM, SETUP TAB
1. From the Cash discounts form click the Setup tab. 2. Select the method applicable for the cash discount from the Net/Current list. The method specified, together with the value given in the Days field and/or Months field, is used to calculate the last date that you can make a payment and receive any available cash discount. 3. Enter the number of months during the period when the cash discount is applicable in the Months field. 4. Enter the number of days during the period when the cash discount is applicable in the Days field. 5. Enter the cash discount as a percentage of the invoiced amount in the Discount pct. field. 6. Select the ledger account for posting cash discounts received from vendors in the Account received list. NOTE: Assign cash discounts to vendors, journals, or purchase orders.
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Procedure: Define Accounts Payable Parameters
Follow these steps to specify accounts payable parameter values that affect the cash discount calculation.
FIGURE 8.6 ACCOUNTS PAYABLE PARAMETERS, SETTLEMENT TAB
1. To access the Accounts payable parameters form, click Accounts payable, click Setup, and then click Parameters. 2. Click the Settlement tab. 3. In the Cash-discount administration list what to do with an overpayment or underpayment when a cash discount is not deducted correctly when the invoice is settled. Select from the following values: o Unspecific - The underpayment amount is posted to the vendor cash discount account. If the applicable cash discount was posted in the same company as the overpayment, the system will adjust the cash discount. If the applicable cash discount was not posted in the same company as the overpayment, it is posted to the system cash discount account. If there are multiple cash discounts so that an overpayment was settled against multiple invoices, the adjustment to the discount is from the last invoice to the first discount.
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o Specific - The overpayment or underpayment amount is posted to the vendor cash discount account. For example, a vendor's invoice total is 105.00 USD, and the obtainable cash discount is 10.50 USD. Considering the cash discount, the vendor will be paid 94.50 USD (105-10.50). However the amount actually paid to the vendor is 95.00 USD. If the Cash-discount administration parameter is set to Unspecific, the invoice is settled, and the difference of 0.50 is posted to the ledger account specified for cash discount differences. If the Cash-discount administration parameter is set to Specific, the invoice is settled, and the difference of 0.50 is posted to the vendor's cash discount account.
Procedure: Define General Ledger Parameters

Follow these steps to specify general ledger parameter values that affect the cash discount calculation.
FIGURE 8.7 GENERAL LEDGER PARAMETERS FORM, SALES TAX TAB
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1. To access the General ledger parameters form, click General ledger, click Setup, and then click Parameters. 2. Click the Sales tax tab. 3. Select the Cash discount is calculated on amount incl. sales tax check box in the Vendor cash discount area to specify that the cash discount is calculated based on the amount plus sales tax.
Test Your Knowledge

Cash discounts are linked to what tables? ( ) Sales and Purchase Order ( ) Payment Days and Payment Fees ( ) Terms of Payment and Payment Days ( ) Customer and Vendor
Payment Fee
Use payment fees to: Specify if any additional charges are added to the vendor invoice. For example, a vendor might add a fee for issuing a promissory note or a company might be charged a vendor bank remittance fee. Define fee identifications, specify bank relations, and identify how to generate fees.
Scenario
Contoso electronically transfers vendor-due invoice amounts to its bank and the bank then transfers the money directly into a vendor's designated banking account. After the invoice amount is transferred, a paper remittance advice is sent automatically to each vendor explaining the specific account the payment is posted to and also the amount of the payment issued. To manage the payment fees from the bank, Contoso decides to set up payment fees for vendor invoices.
Procedure: Create a Payment Fee

Follow these steps to create a payment fee. 1. Click Accounts payable, click Setup, click Payment, and then click Payment fee. 2. Enter an identification in the Fee ID field. 3. Enter a brief description in the Description field. 4. Enter a text that is used in reports and inquiries in the Transaction text field.
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5. Select whether to charge the Vendor or Ledger to use a financial cost for the fee in the Charge list. If Ledger is selected, select an account number in the Ledger account list for posting in the ledger. 6. Click the General tab. 7. Select the journal type for which the fee is valid for in the Journal type list. This journal type is typically vendor bank remittance.
FIGURE 8.8 PAYMENT FEE FORM
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Procedure: Define Payment Fee Setup
You can define a payment fee to set up lines for each fee used for different banks, methods of payment, remittance types, payment specifications, currencies, time periods, and amount intervals. Follow these steps to set up a payment fee.
FIGURE 8.9 PAYMENT FEE SETUP FORM
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 list. 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 3. Select a bank relation from the Bank relation list if: o A bank account - Table is selected in the Grouping list o Bank groups - Group is selected in the Grouping list o Skip - All is selected in the Grouping list
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4. Select a method of payment used for the actual payment fee in the Method of payment list. 5. If the company agrees with the bank to specify the payment, select the payment specifications in the Payment specification list. 6. Select the currency that enables the fee in the Currency list. Only transactions with this currency can enable the fee. If you leave this field blank, all currencies enable 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 list.
Procedure: Define Payment Fee Setup - General

Follow these steps to define additional options for the Payment Fee Setup.
FIGURE 8.10 PAYMENT FEE SETUP FORM, GENERAL TAB
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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.
Procedure: Define Payment Fee Setup - Interval

You can enter fees for the selected payment fee setup line that depend on the interval between the remittance and due dates.
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Follow these steps to define an interval payment fee setup.
FIGURE 8.11 PAYMENT FEE SETUP FORM, INTERVAL TAB
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.
FIGURE 8.12 METHODS OF PAYMENT - VENDORS FORM
Methods of payment can be assigned to: Vendors Journals Purchase orders
Procedure: Create a Method of Payment

Follow these steps to create a method of payment. 1. Click Accounts payable, click Setup, click Payment, and then click Methods of payment. 2. Press CTRL+N to create a new record. 3. Enter a name for the new method of payment in the Method of payment field. 4. Select whether Microsoft Dynamics AX 2009 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
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o o Week - combines all invoices for vendors with a due date within the same week Total - combines all invoices from vendors for the same payment
5. Enter a description of the method of payment in the Description field. 6. Enter the number of days the vendor gives to make the payment after the specified method of discount, and still give a cash discount in the Days of grace field. 7. Select the payment status that is required to post a payment with this method of payment in the Payment status list. 8. In the Posting area in the Account type list, select the kind of offset account that is used for payments. The most common account type is Bank. 9. Select the liquidity account for payment in the Payment account list. 10. Enter the transaction type for a bank account in the Bank transaction type list. The transaction type is marked on every transaction generated in the payment proposal. This field is active only when the account type is Bank.
Procedure: Create a Method of Payment - File Formats

Follow these steps to specify the file format.
FIGURE 8.13 METHODS OF PAYMENT - VENDORS FORM, FILE FORMATS TAB
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1. From the Methods of payment - Vendors form click the File formats tab. 2. Specify the file formats to use with this Method of Payment by using the following table to complete the File formats tab:
Format Export format
Return format Remittance format
Action Specify the format to export payment, for example, a promissory note or a check format. The export format tells Microsoft Dynamics AX 2009 how to communicate with the bank. Enter a format to return a message from the export format, if the bank supports an electronic return file. Enter a format for remittance to a specific bank.
NOTE: If the format list is empty, click the Setup button and select from the available formats.
Procedure: Create a Method of Payment - Payment control

Follow these steps to select the validation for the method of payment.
FIGURE 8.14 METHODS OF PAYMENT - VENDORS FORM, PAYMENT CONTROL TAB
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1. From the Methods of payment - Vendors form click the Payment control tab. 2. Select the validation for the method of payment. Validation is executed during posting if a method of payment is selected on a journal. Select one or more of the following validation methods: o Payment reference is mandatory - Verifies that a payment reference is entered o Payment note is mandatory - Verifies that a note follows the payment o Payment ID is mandatory - Verifies that a payment identification is filled in o Payment specification is mandatory - Verifies that the payment method's specification is entered o Check number is mandatory - Verifies that the check number is entered 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
Test Your Knowledge

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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Lab 8.2 - Method of Payment, Terms of Payment, and Cash Discount

Scenario 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 2 percent cash discount if the invoice is paid within seven days and net payment due in 14 days. These are the other details: Field Payment status Account type Payment account Bank transaction type Fee account Export Return Value None Bank EUR OPER 03 618190 Format 1 (Test) 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.
Need a Little Help?

Create a new method of payment and name it SCD, Special Cash Discount. 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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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. Press CTRL+N 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. 5. In the Description field, type Special Cash Discount. 6. In the Days of grace field, type 0. 7. Click the Payment status field, and then click None. 8. Click the Account type arrow, and then click Bank. 9. Click the Payment account arrow, and then click EUR OPER. 10. Click the Bank transaction type arrow, and then click 03 (ChecksPrinted). 11. Click the Fee account arrow, and then click 618190. 12. Click the File formats tab. 13. Click the Export format arrow, and then click Format 1 (Test). 14. Click the Return format arrow, and then click Retur format 1 pr. payment. 15. Close all the forms. 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. 1. 2. 3. 4. 5. 6. Click Accounts payable, and then click Vendor Details. Click Vendor account 4103. Click the Payment tab. Click the Terms of payment arrow, and then click N014. Click the Method of payment arrow, and then click SCD. Click the Cash discount arrow, and then click 2%D07.
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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: Specify ledger posting per vendor group - to specify accounts for each vendor group. You can specify accounts, that is, for vendor debts, an arrival account for a vendor with a corresponding offset account, a receipt account, item consumption account and account for vendor line discounts. Record sales budgets per vendor group -find additional information about how to set up budgets for each vendor group in Financials II training material. Generate trade statistics per vendor group - to generate sales statistics that, for example, show monthly consumption for each vendor group.
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Procedure: Create a Vendor Group
Follow these steps to create a new vendor group.
FIGURE 8.15 VENDOR GROUPS FORM
1. Click Accounts payable, click Setup, and then click Vendor groups. 2. Press CTRL+N to create a new record. 3. Enter a short name for the vendor group in the Vendor group field. Use this name for the vendor group anywhere in Microsoft Dynamics AX 2009, wherever you must specify a vendor group. 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 list. Use the Terms of payment list for cash flow forecasting. 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.
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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 list. Use the payment terms with vendor payment coverage based on one purchase budget for each vendor group. Use the Settle period list in cash flow calculations. 7. Enter or select the default tax group for the selected vendor group in the Default tax group field.
Procedure: Define Inventory Posting

Follow these steps to set up automatic postings to General ledger accounts for a vendor group. 1. From the Vendor groups form, click the Setup button, and then click Inventory posting. 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. 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.
FIGURE 8.16 INVENTORY POSTING FORM
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.
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Procedure: Set Parameter Values
Follow these steps to define parameter values.
FIGURE 8.17 ACCOUNTS PAYABLE PARAMETERS FORM, LEDGER AND SALES TAX TAB
1. To access the Accounts payable parameters form, click Accounts payable, click Setup, and then click Parameters. 2. Click the Ledger and sales tax tab. 3. In the Posting area, select whether the primary posting should be assigned to Item or Vendor in the Primary receipt posting field. 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, Microsoft Dynamics AX 2009 posts the transaction to account number 510120, because the item relation is more specific than the account relation. Item code All All Table B-R14 Item relation Account code All Group All 50 Account relation Account number 510100 510800 510120
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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. Item code All Table B-R14 Item relation Account code Table All Account relation 3000 Account number 510100 510120
Test Your Knowledge

How many vendor groups must be set up? ( ) none ( ) one ( ) two ( ) ten
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Lab 8.3 - Create a Vendor Group

Scenario 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.
Need a Little Help?

Create a new vendor group, which is titled 83 for cash vendors. Assign the terms of payment as cash and the settle periods as COD.
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, and then click Vendor groups. 2. Press CTRL+N 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. Assign the automatic posting to the new vendor group. 1. From the Vendor groups form, click the Setup button, and then click Inventory posting. 2. Select Receipt. 3. Click the Item code arrow, and then click All. 4. Confirm that the Account code field is set to Group. 5. In the Account relation field, type 80 Other vendors. 6. In the Account number field, type 141250.
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Accounts Payable Posting Profiles

Posting profiles are common throughout all modules in Microsoft Dynamics AX 2009. In Accounts Payable posting profiles, the summary accounts are defined for vendors. Summary accounts are temporary accounts where all invoices are posted to and offset when the vendor is paid. Assign posting profiles to: All vendors Groups of vendors Single vendor
When you post a vendor transaction automatically, the system searches for the ledger accounts that are shown in the previous order. For example, if: 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.
Procedure: Create a Posting Profile

Follow these steps to create a posting profile.
FIGURE 8.18 VENDOR POSTING PROFILES FORM
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1. Click Accounts payable, click Setup, and then click Posting profiles. 2. Enter a code or a short name for the posting profile in the Posting profile field. 3. Enter a description of the posting profile in the Description field. 4. Click the Table restrictions tab. 5. Select the Settlement check box to indicate whether entries should be created by using this posting profile for automatic settlement or the settlement must be manual and use open-transaction editing. 6. Select the Cancel check box to indicate whether you want to be able to cancel transactions created that have this posting profile. 7. 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.
Procedure: Create a Posting Profile - Setup

Follow these steps to set up the ledger accounts that are posted to when you post transactions in Accounts payable.
FIGURE 8.19 VENDOR POSTING PROFILES FORM, SETUP TAB
1. From the Vendor posting profiles form, click the Setup tab. 2. Select an Account code: o Table o Group o All
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3. Specify which vendors belong to the current posting profile in the Account/Group number list. o If Table is selected in the Account code field, enter the account number of the vendor to whom the posting profile relates. o If Group is selected in the Account code field, enter the vendor group to which the posting profile relates. o If All is selected in the Account code field, do not fill in the field. 4. 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 list. 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. 5. Select the liquidity ledger account that is used for cash flow forecast. Cash flow forecast in the Settle account list. You can learn more about Cash flow forecast in the Microsoft Dynamics AX 2009 Financials II course. 6. 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. 7. 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.

Follow these steps to define parameter values. 1. To set up default values for posting click Accounts payable, click Setup, and then click Parameters. 2. Click the Ledger and Sales tax tab. 3. In the Posting profile list, select a standard vendor posting profile. Use the standard posting profile if no other posting profile is specified. A posting profile must be specified for every update of a vendor transaction. The standard posting profile must be created in the Vendor posting profiles form.
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Lab 8.4 - Vendor Posting Profile

Scenario 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. These are the details: Field Posting Profile Description Account Code Account/Group Number Summary Account Settle Account Arrival Offset Account Value COD Cash on Delivery Profile Group 80 - Other Vendors 211100 110180 211310 211320
Challenge Yourself!
Help April create the new vendor posting profile for group 80.
Need a Little Help?

You can find the automatic settlement and cancel check boxes on the Table restrictions tab.
Step by Step
1. Click Accounts payable, click Setup, and then click Posting profiles. 2. Press CTRL+N to create a new profile. 3. In the Posting profile field, type COD. 4. In the Description field, type Cash on delivery profile. 5. Click the Table restrictions tab. 6. Verify the Settlement check box is selected. 7. Verify the Cancel check box is selected. 8. Click the Setup tab. 9. Click the Account code arrow, and then select Group.
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10. 11. 12. 13. 14. 15. In the Account/Group number, type 80. In the Summary account field, type 211100. In the Settle account field, type 110180. In the Arrival account field, type 211310. In the Offset account field, type 211320. Close the form.
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Accounts Payable Vendors

A company purchases goods and services from vendors. Each accounts payable transaction must be associated with a vendor. Use the Vendors form to create, maintain and inquire about vendors. Enter as much data as possible when you set up Microsoft Dynamics AX 2009 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. Default information always can be changed.
Procedure: Create a Vendor

Follow these steps to create a new vendor.
FIGURE 8.20 VENDORS FORM
1. Click Accounts payable, and then click Vendor Details. 2. Press CTRL+N to create a new record.
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3. Enter a Vendor ID with up to 10 characters in the Vendor Account field, and a vendor name with up to 30 characters in the Name field. The Vendor account is generated automatically if the vendor account number sequence is specified in the Accounts payable parameters form on the Number sequences tab. Some companies prefer to enter the number sequences manually. To do this, select the Manual check box on the General tab in the Number sequences form. Avoid using numbers that can be changed, such as telephone numbers. 4. Enter the name to use when you search for the vendor in the Search name field. If it is not entered, the Name field is used by default. 5. Select a vendor account for invoicing in the Invoice account list. For example, the invoice account is where the invoice amount is credited if: o you are linking several vendors to one invoice account o more than one vendor has the same payment address o the vendor is paid through a third-party. If the vendor account is left blank, the vendor account number is used by default. 6. Select the vendor group to which the vendor belongs in the Group list. 7. Select the currency used for vendor invoices in the Currency list. NOTE: Currency codes and exchange rates are created and maintained in the Exchange rates form. You can change the vendor's invoice currency in the invoice header before you enter purchase order lines.
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Procedure: Create a Vendor - General
Follow these steps to set additional vendor options.
FIGURE 8.21 VENDORS FORM, GENERAL TAB
1. From the Vendors form, click the General tab. 2. Select the language that is used for all external documents, such as purchase orders in the Language list. The language code is mandatory. The language value defaults from the Other tab of the Company information form. This is a very important feature that lets you set up the terms of payment in a language other than the company language to accommodate the vendor. 3. Enter the vendor credit rating in the Credit rating field. It is used for statistical purposes only. 4. Enter the maximum outstanding amount allowed in the balance of the vendor's account in the Credit limit field. This amount always is stated in the default currency. 5. As part of updating purchase orders or invoices, set up the system to verify whether an account is over its credit limit on the Credit rating tab of the Accounts payable parameters form. If an account is beyond the credit limit specified, the update is stopped. 6. Block a vendor account manually in the Stopped list by selecting one of the following: o No - all forms of transaction are possible because there is no blocking o Invoice - the account is blocked for invoice postings
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o All - all transactions are blocked 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.
7. Select a customer account number if vendor is also a customer and the reimbursement feature is used in the Customer account list.
Procedure: Create a Vendor - Define Vendor Attributes

Vendor attributes allow organizations to track specific details about vendors. Follow these steps to define vendor attributes.
FIGURE 8.22 VENDORS FORM, DETAILS TAB
From the Vendors form, click the Details tab. Enter the worker count in the Number of employees field. Enter the vendor's Organization number. Select an ABC code filter in the Category list. Select the Bid only check box if the vendor has submitted quotes or proposals but has not yet been approved for purchases. You can use this indicator to associate bids and other documentation with the vendor account. 6. Select the Locally owned check box if the vendor meets your guidelines for being a locally owned business. Collecting this data allows local businesses to have priority on certain contracts.
1. 2. 3. 4. 5.
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7. Select the Minority owned check box if the vendor is owned by a minority group. This field is used for statistical purposes only. 8. Select the One-time supplier check box if the vendor is a one-time supplier. If the One-time supplier check box is selected when a purchase order is created, the distinction is indicated here. 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 on the Number sequence tab. On the General tab in the Accounts payable parameters form, select a vendor's account number that can serve as the default template for onetime suppliers. Information is copied automatically when you create a one-time supplier in the Vendors form. Microsoft Dynamics AX 2009 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 that is 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. 9. Select the Small business check box if the vendor meets your guidelines for being a small business. You can collecting this data to generate reports about this information. 10. Select the Woman owner check box if the vendor is owned by a woman. This field is used for statistical purposes only.
Procedure: Create a Vendor - Setup

Follow these steps to further define setup information for a vendor.
FIGURE 8.23 VENDORS FORM, SETUP TAB
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1. From the Vendors form, click the Setup tab. 2. Select the invoice account, if any, to which the vendor is linked in the Invoice account list. The invoice account is the account to which the invoice amount is credited when you create a vendor invoice from a purchase order. If you do not enter an invoice account, the vendor account is used as the invoice account. Use invoice accounts if you have more than one vendor with the same billing address, or if the vendor is invoiced through a third party. 3. Select number sequence for internal numbers on purchase invoice and purchase order credit note in the Number sequence group list. If the field is empty, the purchase order number is used automatically. 4. Specify whether tax should be calculated on the invoice in the Sales tax group list. 5. Select the Prices incl. sales tax check box to include sales tax when you inform vendors about purchase prices. 6. View the account type and offset account where you offset the vendor transactions in the Account type and Offset account lists. These values are inherited from the vendor group setup.
Procedure: Create a Vendor - Other

Follow these steps to complete the vendor setup.
FIGURE 8.24 VENDORS FORM, ADDRESSES TAB
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1. From the Vendors form, enter the vendor's address and contact details on the Addresses and Contact information tabs. 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 Setup button and then Address from the Vendors form. 3. Additionally, enter address, contact information, and parameters for access from the Internet for external contact persons who associate with vendors by clicking the Setup button and then Contact Details from the Vendors form. NOTE: If alternative delivery addresses are in different states or countries, ensure that you enter the appropriate tax group for each alternative address. You must associate tax groups with a delivery address. 4. Enter information about how to manage payments on the invoices entered in Accounts Payable in the Vendors form, on the Payment tab. 5. Set up specific dimensions for a vendor on the Dimensions tab. Throughout Microsoft Dynamics AX 2009, you can use dimensions to group data in different ways. If you designate dimensions for a vendor, those dimensions automatically default for transactions made that use that vendor. You can change these defaulted values when you enter the transaction.
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Lab 8.5 - Vendors

Scenario Contoso has begun working with a new vendor, Dakota Travel. April, the Accounts Payable Clerk, must set up this new vendor. She wants to enable automatic vendor numbering. These are the details: Field Vendor group Credit limit Method of payment Cash discount Terms of payment Value 80 - other vendors 10,000 Check payment - USD 4%D10 N015
Challenge Yourself!
Help April create a new vendor.
Step by Step
Enable automatic vendor numbering. 1. Click Accounts payable, click Setup, and then click Parameters. 2. Click the Number sequences tab. 3. Notice that the number sequence code of AP_001 has been selected. Right-click the value in the Number sequence code, and then click Go to the Main Table Form. 4. From the Number sequences form, click the General tab. 5. Click the Manual check box to clear it. 6. Close the forms. Create the new vendor. 1. Click Accounts payable, and then click Vendor details. 2. Press CTRL+N to create a new vendor. A new vendor account number will be assigned automatically. 3. In the Name field, type Dakota Travel. 4. Tab to the Group field and type 80. 5. Click the General tab. 6. In the Credit Limit field, type 10,000.
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7. Click the Payment tab. 8. Click the Terms of payment arrow, and then click N015. 9. Click the Method of Payment arrow, and then click USAUSD_CHK. 10. Click the Cash discount arrow, and then click 4%D10.
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Summary
Payment options in Microsoft Dynamics AX 2009 are flexible to accommodate different business processes. You can: Define terms based on the number of months and/or days, based on a current period (for example, current month or current quarter), and with or without additional months or days. 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 o o Percentage allocation of the actual invoice amount Allocation based on a fixed number of installments Combined amounts and percentages of the invoice amount
Set up cash discounts similar to the terms of payment, based on: o o The current period The number of net days
Set up the cash discounts as multiple (for example, ten days 3 percent and 30 days 1 percent). You can decide whether you want special ledger accounts to post. Set up Microsoft Dynamics AX 2009 to manage the cash discount with or without sales tax to comply with the tax legislation in various countries.
You also can group vendors to categorize information so that it is meaningful. You can: Set up automatic posting rules for vendor transactions to ensure that the transactions affect the correct accounts. Become aware of situations and trends more quickly by grouping vendors with a common identifier to view and analyze financial causes in more detail. For example, you can group vendors by the kinds of products you purchase from them or by the dollar volume of purchases.
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2.
3.
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Solutions
Payment Schedule
Test Your Knowledge
A payment schedule consists of _____________. ( ) payments ( ) consecutive time intervals ( ) consecutive payments () consecutive payments in set time intervals 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
Terms of Payment
Test Your Knowledge
Task: Outline the steps to setting up a term of payment. Place the following steps in order. Step 2 : Create a new record. Step 3 : Type a terms of payment identifier. Step 6 : Specify the days (or other time unit). Step 5 : Select the payment method. Step 1 : Access the Terms of payment form in Accounts Payable. Step 4 : Type a description.
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Payment Days
Test Your Knowledge
The payment day can be specified in what interval? (Select all that apply.) () Specific day in a week () Specific date in a month ( ) Specific day in a year ( ) Specific day in a quarter
Cash Discount
Test Your Knowledge
Cash discounts are linked to what tables? ( ) Sales and Purchase Order ( ) Payment Days and Payment Fees ( ) Terms of Payment and Payment Days () Customer and Vendor
Methods of Payment
Test Your Knowledge
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
Vendor Groups
Test Your Knowledge
How many vendor groups must be set up? ( ) none () one ( ) two ( ) ten
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CHAPTER 9: ACCOUNTS PAYABLE DAILY PROCEDURES

Objectives
The objectives are: Explain the different invoice journals Register an invoice journal Approve an invoice register journal Create an invoice excluding posting Create an invoice journal Use a voucher template to create vouchers Create a payment proposal Run a payment proposal for a marked settlement Create a payment journal Generate a payment Describe invoice matching. Edit open transactions Reverse a closed transaction Define print management settings
Introduction
This chapter discusses the various Invoice Journals in the Accounts Payable module of Microsoft Dynamics AX 2009. It describes what to use each Invoice Journal for and how to enter transactions into each journal. Purchasing goods for resale or as materials for manufacturing or services is a large responsibility. Tracking those purchases and paying the vendors that supply the goods is just as challenging. Companies must monitor Accounts Payable closely and implement procedures to enable management to easily obtain the financial information that they must have to stay informed about changes in the costs of goods. To give an accurate view of the financial condition of the business, all the expenses that affect the net profit are included in Accounts Payable.
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Invoice Journals in Accounts Payable

The procedure for handling invoices varies from company to company, depending on the company's size, structure and organization. Typically the invoices are: Registered Approved Paid
Microsoft Dynamics AX 2009: Supports several methods of managing incoming invoices to cater to different company procedures Has a different invoice journal depending on the need of the company
The different invoices available are: 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: 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 await the manual approval and reclassification by the person specified in the journal line.
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Procedure: Register an Invoice
Follow these steps to register an invoice for approval. 1. Click Accounts payable, click Journals, click Invoices, and then click Invoice register. 2. In the Show field, select to view Open, Posted, or All journals. The default view is Open journals. 3. Press CTRL+N to create a new journal. 4. Enter the name of the journal in the Name field or select the name from the selection list that contains journal names with the relevant journal type. If only one journal name is defined for this kind of journal, information in the Name field is entered automatically. 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. 5. The number and description are entered automatically in the Journal number and Description fields. These values default from the Journal names form, but you can overwrite them. All subsequent ledger transactions created in this journal contain the same journal number. This feature enables you to print a list of ledger transactions created in a specific journal. Journal numbering is controlled by a number sequence.
FIGURE 9.1 JOURNAL FORM
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Procedure: Register an Invoice - General
Most of the fields on the General tab inherit data from the Journal names form. Follow these steps to view or define additional posting parameters for the journal. 1. From the Journal form click the General tab. In the Identification and Journal areas, you can view information that was defined on the Overview tab. 2. The kind of transactions that you can post in this journal display in the Posting layer field. 3. Select the summation level from the Detail level list. Select from the following: o Details - to post every instance of an account number in the journal lines as a separate account transaction o Summary - to combine the journal lines into one transaction during posting if vouchers have the same date, account number, dimension, and currency code values, and the Payment reference field is blank. 4. Select to delete journal lines when posting is completed by selecting the Delete lines after posting check box. When you delete journal lines, however, you also lose the ability to inquire into journal lines later. 5. Enter the maximum number of lines in a journal in the Lines limit field. If this number is exceeded, the posting process distributes the lines into several smaller journals. This value defaults from the Journal names form but you can overwrite it.
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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 Exchange rate form. Explanations of these fields are available in the topic about journal names and exchange rates.
FIGURE 9.2 JOURNAL FORM, GENERAL TAB
Prcoedure: Register an Invoice - Setup

Most of the fields on the Setup tab inherit data from the Journal names form and Exchange rates form, but you can overwrite them. Follow these steps to view or change posting parameters for the journal. 1. From the Journal form, click the Setup tab. 2. View the account type that the journal uses as the default offset account type in the Account type field. 3. View the default offset account that copies automatically to all lines in the journal in the Offset account field. 4. Enter the number of the external document in the Document field. The number copies to the journal lines. 5. View the voucher number allocation in journals at the time of posting in the Number allocation at posting field. 6. Enter the currency code in the Currency field. The code appears in the Currency field in the journal lines. If you leave the field blank, the default currency is inserted in the journal lines.
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7. Select the Forced rate check box to use an exchange rate other than the rate that you usually would use according to the posting date for the selected currency code. 8. Select the Triangulation check box to include the exchange rate in triangulation. 9. 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 Express exchange rate field on the Ledger tab in the General ledger parameters form. 10. Enter the secondary exchange rate in the Secondary exchange rate field. 11. Select the Amount incl. sales tax check box if the amount in the journal line includes sales tax. 12. Select the default bank account for the journal lines in the Bank account field.
FIGURE 9.3 JOURNAL FORM, SETUP TAB
Procedure: Register an Invoice - Blocking

Follow these steps to enter and view parameters that indicate how the selected journal can be blocked by the system for use. 1. From the Journal form, click the Blocking tab. 2. View the name of the user who is using the journal currently in the Used by user field.
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3. If the system has blocked the journal, the Locked by system check box is selected, and you cannot post in the journal. You also can select this check box manually. To release a blocked journal, clear this check box. 4. To exclude users or user groups from the journal, select the Private check box. NOTE: For security reasons, only one user at a time can enter lines in a particular journal. 5. If you select the Private check box, the Private for user field contains your user identification. 6. 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.
FIGURE 9.4 JOURNAL FORM, BLOCKING TAB
Procedure: Register an Invoice - Dimension

Follow these steps to select dimension values to propose on the journal lines for the selected journal. 1. From the Journal form, click the Dimension tab. 2. Select a dimension value in any of the dimension fields. These values display on the journal lines but you can change them.
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Procedure: Register an Invoice - History
View details about the approval procedure, if any, for the selected journal on the History tab.
Procedure: Register Invoice Lines

Follow these steps to create journal vouchers to validate, print, and post. 1. From the Journal form, click the Lines button. 2. Enter the posting date in the Date field. The system date displays, but you can change it. 3. The Voucher series is entered automatically, because it is attached to the journal name in the Voucher series field in the Journal names form. If you set the number sequence code with the Continuous option selected and no user changes are enabled, the field is skipped. 4. Select the vendor to register the invoice by in the Account field. 5. Enter the invoice number in the Invoice field. You cannot post the invoice register, if you do not specify an invoice number. 6. Select the text regarding the transaction in the Transaction text list. When you specify an offset account, the system uses the same text, until you specify offset transaction text. 7. Enter the appropriate amount in the given currency in the Debit or Credit fields. Enter an amount in the Credit field if you are entering an invoice. Enter an amount in the Debit field if you are entering a credit note. 8. In the Offset account type list, specify the account type as one of the following: o Ledger o Customer o Vendor o Project o Fixed assets o Bank
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Use Ledger, Customer, and Vendor when you post the transaction in the respective account. When, for example, you record a vendor invoice and specify Vendor in account type, posting occurs in the current vendor account. At the same time, posting automatically occurs in the vendor summary account in General Ledger. Use Project and Fixed assets to post to a specific project number or asset number. Use Bank if a bank account transaction is involved, and the transaction is used later for reconciliation in the Bank management module.
Procedure: Register Invoice Lines - Sales Tax

Follow these steps to view or edit sales tax information for the journal vouchers. 1. In the Journal voucher form, select a sales tax group for the transaction in the Sales tax group list. The value defaults from the Sales tax group field on the Setup tab of the Vendors 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 Chart of Accounts form. If this field is empty, the system retrieves the group from the Item sales tax group field on the Sales tax tab in the General ledger parameters form. View the sales tax amount that calculates on the invoice in the Sales tax amount field. NOTE: If the Exempt field in the Chart of Accounts is selected, the field is always empty, but you can enter a value manually.
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3. To view, edit, or enter additional sales tax to the transaction, click the Sales tax button. Edit or view the calculated taxes for the current line. 4. To edit the sales tax, enter either an adjusted amount in the Adjusted amount field or open the Adjustment tab and enter the corrections. 5. To save the changes, click the Apply button. To cancel the changes, click the Reset button. 6. Close the window to return to the journal.
Procedure: Register Invoice Lines - Invoice

Follow these steps to view or edit invoice information for the journal vouchers. 1. In the Invoice area of the Journal voucher form, specify in the Approved by list which employee approves the transaction. Restrict the approval function to a specific User group in the Approve field on the Setup tab of the Journal names form. 2. Enter the terms of payment for the current invoice in the Terms of payment list. 3. Enter the due date for the invoice in the Due date field. The due date calculates by the terms of payment, but you can change it manually. The calculation of the due date only occurs if an invoice number appears in the Invoice field. 4. Enter the payment identification used upon payment in the Payment ID field. If a payment proposal is used, the system suggests the payment ID from the invoice or credit note, but you can change it. 5. Specify the purchase order numbers regarding this invoice in the Purchase order list. This field is informational only.
Procedure: Register Invoice Lines - Payment

Follow these steps to view or edit payment information for the journal vouchers. 1. In the Payment area of the Journal voucher form, select the payment method to use on the current payment, invoice, or credit note in the Method of payment list. 2. Specify the payment specification, if any, for the current method of payment in the Payment specification list.
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Procedure: Register Invoice Lines - Currency
Follow these steps to view or edit currency information for the journal vouchers. 1. In the Currency area of the Journal voucher form, specify the currency to use in the Currency list. By default the system populates this field from the currency defined in the order listed from the following forms: o Chart of accounts o Vendors o Journal names o Company information 2. If the currency code is included in triangulation, select the Triangulation check box. 3. The currency exchange rate that applies to the transaction displays in the Exchange rate field. The rate defaults from the set up in the Exchange rates form. The exchange rate displays as the number of units of the foreign (non-company) currency that is indicated in the Express exchange rate field on the Ledger tab in the General ledger parameters form. 4. View the secondary exchange rate in the Secondary exchange rate field. 5. View the cross rate for the two exchange rates in the Cross rate field. 6. 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.
Procedure: Register Invoice Lines - Cash Discount and Bank

Follow these steps to view or edit cash discount information for the journal vouchers. 1. In the Cash discount area of the Journal voucher form select the code for the cash discount in the Cash discount list. 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.
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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. You also can set up the cash discount information on the Cash discount tab. 4. Identify the bank account in the Account identification list. NOTE: Create the vendor's bank account in the Bank accounts form, which can be accessed by clicking Accounts payable > Vendors > Setup > Bank accounts.
Procedure: Register Invoice Lines - General

Follow these steps to enter additional information for the journal vouchers. 1. From the Journal voucher form click the General tab. 2. Select the posting profile for the transaction in the Posting profile list. The posting profile defaults from the setup for the vendor. 3. Select the account number for the current offset account transaction type in the Offset account list. NOTE: In the Chart of Accounts form, you can set up a default offset account that appears automatically in the Offset account field. 4. Select an offset transaction text in the Offset-transaction text list. 5. Enter the number or name of the document that is the basis of the transaction in the Document field. 6. Enter a date for the document in the Document date field. 7. Enter or view the amount to report on the 1099 form in the 1099 amount field. 8. Select the location on the 1099 form where you want to print the 1099 amount in the 1099 box list. 9. Specify the state for the delivery in the State field. 10. Enter the amount to report in the 1099 form in the 1099 state amount field.
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Procedure: Register Invoice Lines - Dimension
On the Dimension tab, set up the dimensions for the invoice register transaction. If you designate dimensions in the Journal form, they default on each transaction. Override any of those defaults now or enter dimensions if no defaults are set up in the Journal form.
Procedure: Delete an Invoice

To delete an unposted journal line, highlight the line and either click the Delete button from the Toolbar or click the Functions button and select Delete journal lines.
Procedure: Post an Invoice

After you enter all the invoice journal lines, click the Post button to post the invoice journal. The lines posted in the invoice register transfer to the invoice pool and the physical invoices are given to the person who must approve them. The person approves with a signature or a stamp and returns the invoices to the Accounting Department. When invoices return, the accountant registers the approvals in the invoice approval journal and posts them. After that, the invoice is ready to be paid, and the amounts post to the real cost accounts. 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. When the invoice is registered, the tax authorities can refund the tax as long as the invoice is registered. This means the tax handling associates with the invoice and not the actual payment. This is relevant for non-U.S. tax handling.
Invoice Approval Journal

After you post the lines of the invoice register, the postings display in the invoice pool.
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. Now the invoice is ready to be paid.
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Invoice Pool
To view the postings in the invoice pool click Accounts Payable, click Inquiries, and then click Invoice pool. When you work with the 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.
NOTE: All tabs and fields in the Invoice pool form are discussed in the Invoice Register lesson.
FIGURE 9.6 INVOICE POOL FORM
Procedure: Print Invoices Not Approved

The Invoices not approved report displays a list of invoices awaiting approval. For example, you may want to run this report by employee, and then give the report to the relevant people. The report reminds them to approve the invoices.
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Follow these 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 3. Click the OK button.
Procedure: Approve an Invoice Register Journal - Fetch Vouchers

Follow these steps to create an approval journal. 1. Click Accounts Payable, click Journals, click Invoices, and then click Invoice approval journal. 2. Press CTRL+N to create a record. 3. Select the approval journal in the Name list. 4. Enter in the other relevant information. Refer to the Invoice Register lesson to view the field explanations. 5. Click the Lines button to open the Journal voucher form. 6. To transfer the voucher to the journal for approval, click the Fetch vouchers button. 7. Select the approved invoice vouchers, and then click the Select button to move them to the lower pane. To select all the vouchers, click the Select all button. HINT: If a voucher incorrectly displays in the Vouchers to be fetched area of the Fetch vouchers form, click the Remove button to move the voucher(s) from the Vouchers to be fetched area to the Vouchers available for fetching area. 8. With the correct vouchers appearing in the Vouchers to be fetched area, click the OK button.
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Procedure: Approve an Invoice Register Journal
After the vouchers have been fetched, follow these steps to continue to process the invoice register. 1. In the Journal voucher form, select one of the vouchers in the upper pane. In the lower pane, view the transaction lines that are created when the voucher posts. Ledger accounts from the temporary posting are selected already for these lines, but you must select the appropriate ledger account for the open line. 2. Click the Validate button, and then click Validate voucher only to run a check to verify that the invoice in the upper pane is ready for posting. 3. Select the next invoice in the upper pane, and enter the account information in the lower pane. 4. Repeat steps 1-3 until you have entered and validated account information for all the invoices. HINT: Instead of validating each line, click the Validate button, and then click Validate when the account information is complete for all the invoices. 5. Click the Post button, and then click Post. You can now settle the posted invoices in the Payment journal.
Test Your Knowledge

After you post the lines of the invoice register, the postings display in the payment proposal. ( ) True ( ) False
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Lab 9.1 - Register an Invoice

Scenario 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. These are the details: Field Invoice register Vendor account Invoice number Transaction text Credit Approved by Terms of payment Cash discount Invoice approval Invoice approval description Invoice offset account Value Inv_R 3002 INV123 Invoice 150 BKD D30 7D4 Inv_A Invoice approval 601500
Challenge Yourself!
Use the invoice register, invoice pool, and invoice approval journal to complete the workflow outlined in the scenario.
Need a Little Help?

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
Follow these steps to pre-register the invoice and transfer it to an invoice pool. 1. Click Accounts payable, click Journals, click Invoices, and then click Invoice register. 2. Press CTRL+N to create a new register. 3. Click the Name arrow, and then click APInvReg. 4. Click Lines. 5. Click the Account arrow, and then click 3002. 6. In the Invoice field, type INV123. 7. Click the Transaction text arrow, and then click Invoice. 8. In the Credit field, type 150. 9. Tab off the lines. 10. Click the Approved by arrow, and then click BKD. 11. Click the Terms of payment arrow, and then click D30. 12. Click the Cash discount arrow, and then click 7D4. 13. Click the Post button, and then click Post. 14. Close the form Follow these steps to view the invoice in the invoice pool. 1. Click Accounts payable, click Inquiries, and then click Invoice pool. 2. Locate the line for the invoice previously created. 3. Close the form. Follow these steps to create and post an invoice approval journal. 1. Click Accounts payable, click Journals, click Invoices, and then click Invoice approval journal. 2. Press CTRL+N to create a new invoice approval journal. 3. Click the Name arrow, and then click APInvApp. 4. Click the Lines button. 5. Click the Fetch vouchers button. 6. Click the voucher for INV123. 7. Click the Select button. The voucher appears in the Vouchers to be fetched area. 8. Click the OK button. 9. In the Journal voucher form, click the Account arrow, and then click 601500. 10. Click the Post button, and then click Post. 11. Click Close to close the Infolog. 12. Close all the forms
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Invoice Pool Excluding Posting

Invoice pools excluding posting have the following characteristics: The invoice register excl. posting is another kind of journal available in the Accounts Payable module. Using the invoice journal represents another procedure for handling incoming invoices, although it is similar to the invoice register with posting. The difference is that you cannot post the lines. They go directly into the invoice pool. To post the lines, create a new invoice journal, and then click Functions. Then select Invoice pool and accept the individual invoices in the pool after you approve them. If you activate the invoice pool by accessing the invoice pool excl. posting item in the Accounts Payable menu, the invoices shown on the window are registered, unapproved invoices. Although the invoices are unposted, they are registered in the system. Use the invoice journal to transfer the invoices for approval and posting.
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 fetch the invoice from the invoice pool, and posts the journal. Now the invoice is ready to be paid.
Procedure: Create an Invoice Excluding Posting

Follow these steps to create an invoice without posting it. 1. Click Accounts payable, click Journals, click Invoices, and then click Invoice Pool Excl. Posting. 2. Enter the information necessary to create an invoice excluding posting. The fields are the same as described in the invoice register lesson.
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Procedure: Approve and Post an Invoice Excluding Posting
Follow these steps to approve and post the invoice excluding posting journal. 1. Click Accounts payable, click Journals, click Invoices, click Invoice journal to open the Journal form. 2. Press CTRL+N to create a new journal. Refer to the topic Procedure: Approve an Invoice Register Journal for more information. 3. Click the Lines button to open the Journal voucher form to transfer the invoice pool excluding posting record for approval and posting. 4. To fetch the invoice from the invoice pool excluding posting form, click the Functions button, and then click Invoice pool excl. posting. 5. Select one or more invoices in the Invoice pool excl. posting form, and then click the Accept button to transfer the invoices to the Journal voucher form. 6. To post the transactions click the Post button, and then click Post. After the invoice posts, it is ready to be paid.
Test Your Knowledge

You can use the invoice pool to view registered invoices that are ready for posting. ( ) True ( ) False
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Lab 9.2 - Invoice Pool Excl. Posting

Scenario 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. These are the details: Field Vendor account Transaction text Credit Invoice number Invoice journal name Invoice journal description Approver Offset account Value 3002 Invoice 1000 INV777 Vend_I Vendor invoice BKD 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.
Need a Little Help?

1. Designate an approver from the Invoice pool excl. posting form. 2. Approve the invoice from the invoice journal.
Step by Step
1. Click Accounts payable, click Journals, click Invoices, and then click Invoice pool excl. posting. 2. Press CTRL+N to create a new journal. 3. In the Date field, type todays date. 4. Click the Vendor account arrow, and then click 3002. 5. Click the Transaction text arrow, and then click Invoice. 6. In the Credit field, type 1000. 7. In the Invoice field, type INV777. 8. Click the History tab.
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9. Click the Approved by arrow, and then click BKD. 10. Close the form. 11. Click Accounts payable, click Journals, click Invoices, and then click Invoice journal. 12. Press CTRL+N to create a new journal. 13. In the Name field, type Vend_I. 14. In the Description field, type Vendor invoice. 15. Click Lines. 16. Click the Functions button, and then click Invoice pool excl. posting. 17. Click the line for INV777. 18. Click Accept. 19. Click the Invoice tab. 20. Select the Approved check box. 21. In the Offset account field that is to the far right of the form on the Overview tab, enter 601500. 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.
Procedure: Create an Invoice Journal

Follow these steps to create an invoice journal. 1. Click Accounts payable, click Journals, click Invoices, and then click Invoice journal. 2. Press CTRL+N to create a new invoice journal. 3. Select a journal name in the Name list. 4. Enter the other relevant information. Refer to the Invoice Register lesson for field explanations.
Procedure: Create Invoice Journal Lines

Follow these steps to add invoice journal lines. 1. From the Journal form, click the Lines button. 2. Enter any other relevant information. Refer to the Invoice Register lesson for field explanations.
Procedure: Validate a Journal

After you enter transactions into Microsoft Dynamics AX 2009, you must post them to update the vendor's balance in the subsidiary ledger and the general ledger account balances. You can validate and post from two forms, and 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 validate 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 The journal is correct The journal is incorrect Then A window appears with the message: Journal is OK. A window appears with details of what is incorrect. If a journal does not validate correctly, it cannot be posted.
Procedure: Post a Journal

After you validate the journal, it is ready to be posted. To post the journal, click the Post button from either of the previous windows. There are two options to select from: Post - Posts the journal (provided it has no errors). Post and transfer - Posts all correct vouchers in the journal and transfers the lines with errors to a separate journal.
Test Your Knowledge

You must validate the journal before you post. ( ) True ( ) False
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Lab 9.3: Invoice Journal

Scenario 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. These are the details: Field Invoice journal name Vendor account Invoice number Credit Offset account type Offset account Value APInv 3002 INV879 1300 Ledger 211320
Challenge Yourself!
Help April enter, validate, and post a journal.
Step by Step
1. Click Accounts payable, click Journals, click Invoices, and then click Invoice journal. 2. Press CTRL+N to create a new journal. 3. Click the Name arrow, and then click APInv. 4. Click the Lines button. 5. Click the Account arrow, and then click 3002. 6. In the Invoice field, type INV879. 7. In the Credit field, type 1300. 8. Click the Offset account arrow, and then click 211320. 9. Click the Validate button, and then click Validate. 10. Click Close to close the Infolog. 11. Click the Post button, and then click Post. 12. Click Close to close the Infolog.
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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.
Scenario
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). Account Telephone Expense Sales Telephone Expense Accounting Telephone Expense Production Telephone Expense Administration Accounts Payable Debit amount 150 USD 150 USD 150 USD 150 USD 600 USD Credit amount
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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Procedure: Create a Voucher Template
Follow these steps to create a voucher template. 1. Enter a transaction through the Invoice journal lines form as described in the Invoice Journal lesson. 2. Click the Functions button, and then click Save voucher template. 3. From the Template type list, select one of the following: o Percent - Uses the percentage of the original voucher total represented by each voucher line. o Amount - Uses the original voucher total and line amounts. 4. Click OK.
Procedure: Use a Voucher Template

After you create a voucher template, follow these steps to use a voucher template to create a new accounts payable invoice journal. 1. Click Accounts payable, click Journals, click Invoices, and then click Invoice journal. 2. Press CTRL+N to create a new journal. Refer to the Invoice Journal lesson for more field information. 3. Click the Lines button. 4. Click the Functions button, and then click Select voucher template. 5. In the Voucher templates form, select the correct template. 6. Click OK. 7. If a percent voucher template is selected, enter the Amount of the new transaction. When you create a new voucher based on a percenttype voucher template, the percentage calculated for each new line is applied automatically to the value in the Voucher amounts dialog. The percentage determines the amount for the new voucher line.
Test Your Knowledge

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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Payment Journals
After you register, approve, and post the invoice, it is time to pay the invoice. Payment journals have the following characteristcs: You can create payments through the payment journal. Use the payment journal to enter and post payments. Make payments and enter them into Microsoft Dynamics AX 2009 according to the terms of payment established with the vendors. In the payment journal there are several ways to create payment lines: o o o Click Payment proposal. Click Functions and select Settlement. Create a journal line and enter the payment details manually.
There are two methods for selecting the invoices to pay through the payment journal. o o The Payment proposal option searches for invoice lines that meet selected search criteria. Use the Settlements option to select the specific invoice lines to pay.
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 Microsoft Dynamics AX 2009 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 in the search only transactions with either a due date or a cash discount date. As soon as the payment lines generate, edit them in the payment journal.
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Procedure: Create a Payment Proposal
Follow these steps to create a payment proposal. 1. Click Accounts payable, click Journals, click Payments, and then click Payment journal. 2. Press CTRL+N to create a new journal. Enter the additional information as necessary. Refer to the Invoice Register lesson for more information about the fields. 3. Click the Lines button. 4. Click the Payment proposal button, and then click Create payment proposal.
FIGURE 9.7 VENDOR PAYMENT PROPOSAL FORM
Procedure: Create a Payment Proposal - Options

Follow these steps to designate options for vendor payment proposal. 1. In the Vendor payment proposal form select the kind of payment proposal to create in the Proposal type field. Select from the following options: o Per due date - transfers the set of vendor payments for due invoices
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o o By cash discount - transfers the set of vendor payments that fulfills the criteria for obtaining a cash discount Due date & cash discount - transfers the set of vendor payments that fulfills the criteria for obtaining a cash discount and after that, transfers vendor transactions proposed after the due date
2. Click the Select button to select specific vendors or a range of vendors. 3. Select the Generate check box to open the Edit payment suggestions form that displays invoices to be paid. 4. Enter the total amount to selected for payment in the Amount limit field. 5. Enter the maximum lines to pay in the Transaction limit field. 6. Enter the period for the customer transactions to include in the payment proposal in the From date and To date fields. 7. Enter the lowest date for the payment in the Minimum date field. 8. Enter the date the payment is due in the Total payment date field. 9. Add other criteria as appropriate in the other fields on the Vendor payment proposal form, and then click the OK button.
Procedure: Create a Payment Proposal - Payment Proposal Lines

After you select options and then click the OK button in the Vendor payment proposal form, the form will display the following information for you to verify: 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 press ALT+F9. 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 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 paymet suggestions, the system updates open transactions.
FIGURE 9.8 VENDOR PAYMENT PROPOSAL FORM
Procedure: Create a Payment Proposal - Transfer, Validate, and Post

Follow these steps after you are satisfied with the results in the Vendor payment proposal form and are ready to transfer the proposal lines to the payment journal. 1. After you inspect all the proposed lines click the Transfer button to move the proposal lines to the payment journal when. 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.
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Procedure: Mark Settlements
Use the settlement option as a second option for selecting invoice lines to pay. Follow these steps to run a payment proposal for a marked settlement. 1. Click Accounts payable, click Journals, click Payments, and then click Payment journal. 2. Press CTRL+N to create a new journal. Enter the additional information as necessary. Refer to the Invoice Register lesson for more information about the fields. 3. Click the Lines button. 4. Select a vendor account in the Account field. 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 Open transaction editing form.
FIGURE 9.9 OPEN TRANSACTION EDITING FORM
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Procedure: Mark Settlements - Open Transaction Editing
Follow these steps to mark invoices for settlement. 1. From the Open transaction editing form select the Mark check box to transfer the invoice to the Vendor payment proposal form. Mark one or several invoices for settlement. NOTE: A red mark displays in the Is marked field if a transaction already is marked for settlement. 2. Select the Payment proposal check box. 3. Close the form after you mark the invoices for payment. When you close the Open transaction editing form, the Vendor payment proposal form opens and shows the payment proposal and the open transactions.
Procedure: Mark Settlements - Transfer, Validate, and Post

Follow these steps after you are satisfied with the results in the Vendor payment proposal form and are ready to transfer the proposal lines to the payment journal. 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.
Procedure: Create a Manual Payment Journal

You can create a payment journal by entering the invoice information. Follow these steps to create a manual payment journal. 1. Click Accounts payable, click Journals, click Payments, and then click Payment journal. 2. Press CTRL+N to create a new journal. Enter the additional information as necessary. Refer to the Invoice Register lesson for more information about the fields. 3. Click the Lines button.
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4. Enter values in the relevant fields in the first line on the Overview tab of the Journal voucher form. Some fields may be entered automatically with values from fields in the Journal form. Make entries in the following fields: o Account o Transaction Text (This is optional, but it eases the entry of lines in the journal because the pointer automatically goes to the appropriate Debit or Credit field.) o Enter an appropriate amount in the Debit or Credit field. o Select an Offset Account Type in the Offset account type list. o Select an offset account in the Offset Account list. o Press the down arrow key to create a new line, and then enter information about the next voucher.
Procedure: Create a Manual Payment Journal - Validate and Post

Follow these steps to check the entry and post the payment. 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.
Procedure: Generate Payments

After you create the payment journal, it is ready to be paid. The procedure on how to generate payments is the same for: Payment proposals Settlements Manual payment journals
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Follow these steps to generate a payment. 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.
Procedure: Generate Payments - Print Checks

Follow these steps to print checks. 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. 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.
Procedure: Generate Payments - Post

Follow these steps to post the payment. 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.
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Lab 9.4 - Payment Journals

Scenario 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 in Microsoft Dynamics AX 2009, each in a separate journal. She must then validate and post each journal. These are the details: Airfare for trip to Convergence Option Date Invoice number Amount Approver Hotel for trip to Convergence Option Date Invoice number Amount Approver Value 4/1/2008 1001 600 USD Ezio Alboni Value 4/1/2008 1000 550 USD Ezio Alboni
Car Rental for trip to Convergence Option Date Invoice number Amount Approver Value 4/1/2008 1002 150 USD Ezio Alboni
Challenge Yourself!
Help April with the following tasks: 1. Register the invoices. 2. Post the approvals for all three of these transactions in one journal.
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3. Enter the expense accounts to balance each line item: o For the Airfare line, use account 601500 o For the Hotel line, use account 601500 o For the Car Rental line, use account 601500 4. 5. 6. 7. 8. After you complete the required steps, validate and post this journal. Make the appropriate edits and validate the journal again. Post the journal. Generate the payment(s) for this invoice. Print, validate, and post the payments.
Step by Step
Follow these steps to enter invoices in Accounts Payable. Airfare Invoice 1. To register the invoice, use the Invoice Register. Click Accounts payable, click Journals, click Invoices, and then click Invoice register. 2. Press CTRL+N to create a new journal. 3. Click the Name arrow, and then click APInvReg. 4. Click the Lines button. 5. Enter 4/1/08 for the date. 6. In the Account field select 8005 - Margie's Travel. 7. In the Invoice field enter 1000. 8. In the Transaction text field enter Airfare for Convergence. 9. Enter $550 in the Credit field. 10. Click the Approved by arrow, and then click 2100 - Brooke Drynan. 11. Click the Validate button, and then click Validate. 12. In the Infolog click the Close button. 13. Click the Post button, and then click Post. 14. In the Infolog click the Close button. 15. Close the Journal voucher form. Hotel Invoice 1. 2. 3. 4. 5. 6. 7. From the Journal form, press CTRL+N to create a new journal. Click the Name arrow, and then click APInvReg. Click the Lines button. Enter 4/1/08 for the date. In the Account field select 8005 - Margie's Travel. In the Invoice field enter 1001. In the Transaction text field enter Hotel for Convergence.
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8. 9. 10. 11. 12. 13. 14. Enter $600 in the Credit field. Click the Approved by arrow, and then click 2100 - Brooke Drynan. Click the Validate button, and then click Validate. In the Infolog click the Close button. Click the Post button, and then click Post. In the Infolog click the Close button. Close the Journal voucher form.
Car Rental Invoice 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. From the Journal form, press CTRL+N to create a new journal. Click the Name arrow, and then click APInvReg. Click the Lines button. Enter 4/1/08 for the date. In the Account field select 8005 - Margie's Travel. In the Invoice field enter 1002. In the Transaction text field enter Car Rental for Convergence. Enter $150 in the Credit field. Click the Approved by arrow, and then click 2100 - Brooke Drynan. Click the Validate button, and then click Validate. In the Infolog click the Close button. Click the Post button, and then click Post. In the Infolog click the Close button. Close the Journal voucher form. Close the Journal form.
Follow these steps to use the invoice approval journal. 1. Click Accounts payable, click Journals, click Invoices, and then click Invoice approval journal. 2. Press CTRL+N to create a new journal. 3. Click the Name arrow, and then click APInvApp. 4. Click the Lines button. 5. Click the Fetch Vouchers button. 6. To select all three vouchers, click theSelect All button, and then click OK. 7. With the Airfare line is highlighted, go to thelower section of the screen. Enter 601500 in the Account field. 8. Highlight the Hotel line in the upper section and add a new line item in the lower section of the screen. 9. Enter Account 601500. 10. Highlight the Car Rental line in the upper section and add a new line item in the lower section of the screen. 11. Enter Account 601500.
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12. 13. 14. 15. 16. Click the Validate button, and then click Validate. In the Infolog click the Close button. Click the Post button, and then click Post. In the Infolog click the Close button. Close the forms.
Follow these steps to make payments for the invoices. 1. Click Accounts payable, click Journals, click Payments, and then click Payment journal. 2. Press CTRL+N to create a new journal. 3. Click the Name arrow, and then click APPay. 4. Click the Lines button. 5. Click the Payment proposal button, and then click Create Payment Proposal. 6. In the Proposal type list, select Due date & cash discount. 7. Click the Select button. 8. Enter 8005 (Margie's Travel) in the Criteria field for the Vendor account, and then click OK. 9. Enter 5/15/08 in the To Date field. 10. Click OK. 11. In the Vendor Payment Proposal form, click the Transfer button. 12. Click OK. 13. Click the Functions button, and then click Generate payments. 14. Select the Method of Payment of USAUSD_CHK, and then click OK.
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Invoice Matching
Accounts payable invoice matching is the process of matching the vendor invoice, purchase order, and packing slip information. Vendor invoices frequently are based on packing slips 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: Create an accounts payable invoice based on packing slips. Packing slips automatically are suggested for invoicing, and you can select which packing slips to use. You also can select specific packing slip line items from multiple purchase orders, if necessary. Enter and save an invoice before a shipment arrives. After the packing slip that represents the shipment arrives, you can match the appropriate packing slip lines to the invoice lines. View and approve quantity differences between the invoiced quantity on the invoice and the received quantity on the packing slip. If there is a difference, you can save the invoice and later match it to a different packing slip or change the invoice quantity to match the received quantity. Enter invoice amounts that were not included on the original purchase order so that the invoice information matches the invoice that you received from your vendor. You can compare the miscellaneous charges for purchase orders with the miscellaneous charges for invoices. If necessary, you can add miscellaneous charges to invoices and allocate them to invoice lines. View and approve price match discrepancies between the invoice net unit price and the purchase order net unit price. You can set up price tolerance percentages for companies, vendors, and items. If the vendor invoice line price is not within the acceptable price tolerance, you can save the invoice until it is approved for posting, or until you receive a correction from the vendor.
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 packing slip for 30 bulbs.
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April, the Purchasing Agent, 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 packing slip quantity currently posted in the system.
Procedure: Define Parameters

Invoice Matching enables the set up of price tolerance percentages that you can use to identify discrepancies among purchase order line prices, packing slip line quantities, and invoice line prices and quantities. Follow these steps to enable invoice matching. 1. 2. 3. 4. Click Accounts Payable, click Setup, and then click Parameters. Select the Updates tab. Select the Use invoice matching for this company check box. In the Post invoice match discrepancies field, select from the list to require approval before posting an invoice that contains invoice matching discrepancies by selecting one of the following options: o Allow with warning o Require approval
5. In the Display price match icon field, select from the list to display an icon: o If line prices are greater than allowed tolerance o If line prices are greater than or less than allowed tolerances For example, if the tolerance is five percent and the purchase order unit price is 10.00 U.S. dollars, a price match icon is shown if the invoice unit price exceeds 10.50 U.S. dollars. If the Display price match icon field is set to If line prices are greater than or less than allowed tolerances, an icon displays if the invoice unit price is less than 9.50 U.S. dollars. NOTE: These fields are available only if the Invoice matching configuration key is selected.
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Procedure: Modify an Inventory Model Group for Invoice Matching
Price discrepancies between the price of an item on a packing slip and the price on a corresponding invoice may affect the recorded inventory cost of the item. To help ensure that users record inventory costs correctly, require that packing slip information be posted before invoice information can post. 1. Click Inventory management, click Setup, click Inventory, and then click Inventory model groups. 2. Select an inventory model group. 3. On the Setup tab, select the Receiving requirements check box to designate that users must update item receipts physically before they can update the receipts financially. Users must enter and post a packing slip before they can post the corresponding vendor invoice. If there is a difference between the received quantity on the packing slip and the invoiced quantity on the invoice, an icon displays in the Packing slip quantity match column in the Posting invoice form. 4. Select the Deduction requirements check box. When selected, users must update item deductions physically before they update them financially. Users must enter and post a packing slip before they post a corresponding vendor invoice. If there is a difference between the deducted quantity on the packing slip and the negative invoiced quantity on the invoice, an icon displays in the Packing slip quantity match column in the Posting invoice form. 5. Repeat steps 2 through 4 for the inventory model groups for which you want to use invoice matching.
Procedure: Create Item Price Tolerance Groups

You can set up price tolerance information for all items in your company, for item price tolerance groups, or for individual items. To set up item price tolerances by group, first create item price tolerance groups and then assign each item to the appropriate group. For example, you might set up three item price tolerance groups: High, Medium, and Low. Follow these steps to set up price tolerance information. 1. Click Inventory management, click Setup, click Price/Discount, and then click Item price tolerance groups. 2. Press CTRL+N to create a new item price tolerance group. 3. Enter an identifier for the item price tolerance group and a name. 4. Repeat steps 2 and 3 for the remaining item price tolerance groups. 5. Click Inventory management, and then click Item details.
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6. Select an item. 7. On the General tab, select an item price tolerance group. 8. Repeat steps 6 and 7 for the remaining items.
Procedure: Create Vendor Price Tolerance Groups

Set up price tolerance information for all vendors in your company, for vendor price tolerance groups, or for individual vendors. To set up vendor price tolerances by group, first create vendor price tolerance groups and then assign each vendor to the appropriate group. For example, set up two vendor price tolerance groups: 10 percent and 5 percent. Follow these steps to set up price tolerance information for vendors. 1. Click Accounts payable, click Setup, click Price/Discount, and then click Vendor price tolerance groups. 2. Press CTRL+N 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, and then click Vendor Details. 6. Select a vendor. 7. On the Setup tab, select a Vendor price tolerance group. 8. Repeat steps 6 and 7 for the remaining vendors.
Price Tolerance Setup

Set up price tolerance percentages for your company, items, and vendors. When the system compares vendor invoices with purchase order information, it searches for the applicable price tolerance percentage in the following order. Item code Table Table Table Group Group Group All All All Account code Table Group All Table Group All Table Group All
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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. Item code All Item relation Account code All Account relation Price tolerance percentage 1% Notes
This percentage applies to all items and all vendors, unless one of the other scenarios applies. This is the company price tolerance percentage. This percentage applies to the Battery item from all vendors. This percentage applies to all items whose item value model group has the Low item price tolerance group assigned to their item value model groups, and all vendors.
Table
Battery
All
1%
Group
Low
All
2%
Group
Medium
All
6%
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Item code Group All All
Item relation High
Account code All Group Group
Account relation
Price tolerance percentage 15%
Notes
5 percent 10 percent
5% 10% This percentage applies to vendors who are assigned to the 10 percent group, and All items.
Procedure: Set Up Price Tolerance

Follow these steps to set up price tolerance. 1. Click Accounts payable, click Setup, click Price/Discount, and then click Price tolerance setup. 2. In the first row, you can change the default company price tolerance. 3. Press CTRL+N to create a new price tolerance percentage. 4. Enter information about the item and vendor combination that the price tolerance applies to, and the price tolerance percentage. 5. Repeat steps 3 and 4 for the remaining price tolerance percentages. NOTE: You cannot enter negative price tolerance percentages. By default, Microsoft Dynamics AX 2009 allows negative price discrepancies. To track negative price tolerance percentages, select If line prices are greater than or less than allowed tolerance in the Display price match icon field in the Accounts payable parameters form.
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Test Your Knowledge
Invoice matching is the process of matching information from what documents? (Select all that apply.) ( ) Purchase Order ( ) Vendor Invoice ( ) Packing Slip ( ) Vendor Checks
Edit Open Transactions

Use the Open transactions editing form to make changes in transactions for vendors or customers. Only unapplied transactions are available for editing. Use the Open transaction editing form, for example, to settle invoices and payments that are unsettled in the payment journal. When you settle invoices and payments: If The amount paid is greater than the amount due Then The invoice is settled and a payment transaction is created for the amount by which the payment exceeded the amount due The payment is subtracted from the amount due and the invoice remains open A payment transaction is generated for the payment amount, and the transaction is closed.
The amount paid is less than the amount due The amount paid equals the amount due
Procedure: Settle Invoices and Payments

Follow these steps to settle invoices against payments or make corrections to open transactions. 1. Click Vendor Details. 2. Select a vendor record. 3. Click the Functions button, and then click Open transaction editing. 4. Select the relevant postings to settle.
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NOTE: In the Is marked field, a red icon appears if a transaction is already selected for settlement.
When the transactions are settled they disappear from this form and can be found on the Closed-transaction editing form. 5. Place the pointer on the primary payment line, if any, and select the Primary payment check box. The purpose of a primary payment is to get a more correct history or select the basis currency used for cross rate. 6. Click Update. The selected vouchers offset each other. If a voucher is not settled in full, it is recorded as Open.
Procedure: Enable Automatic Settlement

In some cases, it is more convenient to use automatic settlement of invoices and payments, for example, if a company must handle many small vendors with few payments. Follow these steps to enable automatic settlement. 1. Click Accounts payable, click Setup, and then click Posting profiles. 2. Select the relevant vendor posting profile. 3. Click the Table restrictions tab. 4. Select the Settlement check box.
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Test Your Knowledge
In the Is marked field, a red icon appears if a transaction already is selected for settlement. ( ) True ( ) False
Reverse a Closed Transaction

When you work with reverse settlements: Use the Closed-transaction editing form to edit fully applied or settled transactions that are in history. Use reverse settlements if the bank does not honor a payment or if you use the wrong date or settlement amount. Note that a settlement is not a transaction, but it is a link between the payment and the invoice. Note that the system considers an unsettled invoice unpaid.
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.
Procedure: Reverse a Closed Transaction

Follow these steps to reverse a closed transaction. 1. Click Accounts payable, and then click Vendor Details. 2. Select a vendor record. 3. Click the Functions button, and then click Closed-transaction editing. 4. Select the Mark check box to reverse the invoice or payment that is associated with the settlement. The Mark field of the transaction that offsets the transaction marked is selected automatically.
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5. Click the Reverse button. The system changes the settlement amount, makes corrections, and changes the status. History displays an overview of settlements for the current voucher.
FIGURE 9.11 CLOSED TRANSACTION EDITING FORM
Test Your Knowledge

For what is the closed transactions editing functionality used?(Select all that apply.) ( ) Editing settlements ( ) Reversing settlements not honored by the bank ( ) Reversing settlements with incorrect information, such as dates ( ) Editing fully applied or settled transactions
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Lab 9.5 - Reverse a Closed Transaction

Scenario 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.
Need a Little Help?

You can reverse closed transactions by using the closed transaction editing function.
Step by Step
1. Click Accounts payable, and then click Vendor Details. 2. Click Vendor account 5001. 3. Click the Functions button, and then click Closed transaction editing. 4. Click the last line in the form. 5. Select the Marked check box. 6. Click the Reverse button. 7. Click the Inquiry button, and then click History to view the reversed transactions.
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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: Number of copies to produce Multilingual document footer text Print destination
How Print Management Works

When you are printing documents such as invoices or packing lists, use defined settings for the original or copy records in print management. The effective records are the records established in Print management that control the printed output of original and copy records. An original or copy record contains the information that print management uses to print the document. The record that is used to print a document determines the footer text for the document, the printer to use, and how many copies to print. For example, to print three copies of the sales order packing slip, each with different footer text, set up an original record and two copy records. 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. When a document generates, it prints according to the effective original record and effective copy records. An effective record can inherit information from a higher level in the hierarchy or create a new record for the current level in the hierarchy, or it can override an inherited record that has the same name. 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. Each original record or copy record can have up to 19 conditional settings associated with it. Each conditional setting has a related query. For example, you can create a query to print footer text in a different language for a specific vendor. When the document generates during posting, the queries that associate with the conditional settings are evaluated automatically in the order in which the settings appear in the Print Management setup form. The setting that associates with the first successful query is used to print the document.
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Procedure: Print Management at the Module Level
You can define print management settings for each module, account, transaction, or any combination of these three. You can create up to 99 original or copy records for every document type. You can create up to 19 conditional settings for each original or copy record, in addition to the default setting. 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.
Procedure: Set Up Print Management

Follow these steps to set up print management at the module level. 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. 5. If you are creating a copy, enter a name in the Name field. 6. If the Do not print check box is selected, the original or copy will not print. If there is an override of an original or copy record from a higher level in the print management hierarchy, use this option to stop a document from printing instead of only changing the destination, number of copies, or footer text. 7. If the Default setting check box is selected, the original or copy prints even if the queries for any applicable conditional settings do not return any results. The original or copy is denoted in the hierarchical list by the word Default.
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8. By default, the document goes to the printer destination that you specify by clicking Printer setup from the posting form for the document. To change the printer destination, click the Destination field's lookup button > Printer setup and select a destination. 9. When you finish making changes, click OK to return to the Print management setup form. 10. In the Number of copies field, enter the number of identical copies to print, up to 99 copies. 11. In the Footer text field, enter up to 50 characters to include at the bottom of the document. To print footer text in other languages, click the Footer text lookup button and set up footer text for the additional languages.
FIGURE 9.12 PRINT MANAGEMENT SETUP FORM
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. To speed up establishing an open account with the vendor, Alicia sets up a document copy for the purchase order. She enters New Vendor - need credit established as the footer and sets the print destination to the printer that belongs to Connie, the Credit and Collections Manager. She also enters a note that will print on Connie's copy explaining how much business they plan on doing with the vendor. This information will help Connie determine how much credit to request from the vendor. Alicia posts and prints the purchase order which prints a copy to Connie's printer.
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Procedure: Set Up Print Management for an Account
Follow these steps to set up print management for a specific vendor account. 1. 2. 3. 4. Click Accounts payable, and then click Vendors. Select an account. Click Setup, and then click Print management. In the left pane, expand the list for a document that is listed under the customer or vendor account. Any original or copy records display. An icon with a blue arrow indicates that the original or copy record inherits information from the module level of the hierarchy. This print management information is used for the customer or vendor, unless you perform an override to make changes at the account level. 5. Review the original or copy record information. If changes are necessary, override the inherited record, copy an inherited record, create a new record, or create a new setting. o To override, right-click an original or copy record and select Override. The icon changes to display a red X to indicate that the record is now an override record. o To copy, right-click an original or copy record and select Copy. A copy displays in the list. The copy must have a new name. o To create a new original or copy record, right-click a document type in the list and select New. A new record displays in the list. o To create a new conditional setting, right-click an original or copy record and select New. A new conditional setting displays in the list. The conditional setting must have a description and select query information.
Procedure: Set Up Print Management for a Transaction

Set up print management original or copy records and conditional settings for a transaction, such as a purchase order. This may be necessary if you use a different printer for a specific transaction. Refer to the following table for the complete list of documents supported in Accounts Payable and the path that gives access to the print management setup for each document. Document Purchase order Purchase order invoice Purchase order packing slip Purchase order receipts list Request for quote Path Accounts payable > Purchase order > Advanced > Setup > Print management
Accounts payable > Request for Quote > Setup > Print management
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Document Request for quote - Accept Request for quote - Reject Request for quote - Return
Path Accounts payable > Periodic > Request for Quote > RFQ reply > Setup > Print management
1. In the left pane of the Print management setup form, expand the list of documents. Any original or copy records display. 2. Review the original or copy record information. If changes are necessary, override or copy an inherited record, or create a new record or a new conditional setting. o To override, right-click an original or copy record and select Override. The icon changes to display a red X to indicate that the record is now an override record. o To copy, right-click an original or copy record and select Copy. A copy displays in the list. The copy must have a new name. o To create a new original or copy record, right-click a document in the list and select New. A new record displays in the list. o To create a new conditional setting, right-click an original or copy record in the list and select New. A new conditional setting displays in the list. The conditional setting must have a description, and you must select query information.
Conditional Print Management Settings

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.
Procedure: Set Up Conditional Print Management Settings

Follow these steps to create a conditional print management setting. 1. In the left pane of the Print management setup form, right-click an original or copy record and select New. 2. Enter a Description for a conditional setting. 3. Click the Select button. 4. In the Query - Setting form, enter query information in the Criteria field. 5. When the query is complete, click OK.
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Test Your Knowledge
1. How are print management settings defined? ( ) for each module ( ) for each account ( ) for each transaction ( ) for each module, account, transaction, or any combination of these three. 2. Which of the following activities are uncontrollable with print management settings? ( ) Number of copies to produce ( ) Page orientation ( ) Multilingual document footer text ( ) Print destination
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Summary
Microsoft Dynamics AX 2009 offers several important features for managing Accounts Payable. For example: Several options for recording vendor invoices including a two-step posting for separate handling of approved and unapproved invoices, and the option to match vendor invoices to physical deliveries of goods. Payment proposals.
Microsoft Dynamics AX 2009 enhances the preferred procedures for handling financial interactions with both simple and advanced options. If you record invoices for every date, do so in the invoice pools. Record approved invoices directly in the invoice journal.
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Test Your Knowledge

Test your knowledge with the following questions. 1. What are the different invoices available in Microsoft Dynamics AX 2009? (Select all that apply.) ( ) Invoice register ( ) Invoice approval journal ( ) Invoice journal ( ) Invoice pool excluding posting 2. What does validation do? (Select all that apply.) ( ) Ensures that everything is correct prior to posting. ( ) Ensures that you have selected the correct vendor. ( ) Verifies that the journal balances. ( ) Verifies that all mandatory fields are filled in. 3. 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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2.
3.
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Solutions
Invoice Approval Journal
Test Your Knowledge
After you post the lines of the invoice register, the postings display in the payment proposal. ( ) True () False
Invoice Pool Excluding Posting

Test Your Knowledge
You can use the invoice pool to view registered invoices that are ready for posting. () True ( ) False
Invoice Journal
Test Your Knowledge
You must validate the journal before you post. ( ) True () False
Voucher Template
Test Your Knowledge
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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Invoice Matching
Test Your Knowledge
Invoice matching is the process of matching information from what documents? (Select all that apply.) () Purchase Order () Vendor Invoice () Packing Slip ( ) Vendor Checks

Test Your Knowledge
In the Is marked field, a red icon appears if a transaction already is selected for settlement. () True ( ) False
Reverse a Closed Transaction

Test Your Knowledge
For what is the closed transactions editing functionality used? (Select all that apply.) ( ) Editing settlements () Reversing settlements not honored by the bank () Reversing settlements with incorrect information, such as dates () Editing fully applied or settled transactions
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Print Management
Test Your Knowledge
How are print management settings defined? ( ) for each module ( ) for each account ( ) for each transaction () for each module, account, transaction, or any combination of these three. Which of the following activities are uncontrollable with print management settings? ( ) Number of copies to produce () Page orientation ( ) Multilingual document footer text ( ) Print destination
Test Your Knowledge

1. What are the different invoices available in Microsoft Dynamics AX 2009? (Select all that apply.) () Invoice register () Invoice approval journal () Invoice journal () Invoice pool excluding posting 2. What does validation do? (Select all that apply.) () Ensures that everything is correct prior to posting. ( ) Ensures that you have selected the correct vendor. () Verifies that the journal balances. () Verifies that all mandatory fields are filled in. 3. 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 10: ACCOUNTS RECEIVABLE SETUP

Objectives
The objectives are: Create a payment schedule Create terms of payment Create a payment day Set up a cash discount Create a payment fee Create a method of payment Set up customer groups Set up posting profiles Create a new customer
Introduction
There are different Accounts Receivable setup options in Microsoft Dynamics AX 2009. This course introduces the setup procedures and defaults you can use throughout the Accounts Receivable module. Microsoft Dynamics AX 2009 offers extensive functionality to set up different customer payment options. This includes the following: 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
A payment schedule consists of consecutive payments in set time intervals. The payments can be a: Set amount Specified number of payments wherein the amount owed is divided to create equal payments
For example, an invoice of 10,000 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.
Procedure: Create a Payment Schedule

Follow these steps to create a payment schedule. 1. To access the Payment schedules form, click Accounts receivable, click Setup, click Payment, and then click Payment schedules. 2. Enter a name as identification of the payment schedule in the Payment schedule field. 3. Enter a description in the Description field. 4. Click the General tab. 5. Select an allocation method in the Allocation list: o Total - The total amount outstanding on the invoice is due. o Fixed amount - A specific, fixed amount is due for each payment on the specified payment dates. o Fixed quantity - Payment of the total amount is divided into a fixed quantity of payments. o Specified - A specified amount is due on each specified date. If Specified is selected, the payment schedules and amounts must be defined on the Payment lines tab.
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Depending on the value you select in the Allocation list, the General and Payment lines tabs enable different fields.
FIGURE 10.1 PAYMENT SCHEDULES FORM
Procedure: Create a Total Payment Schedule

If Total is selected in the Allocation list, no other fields are enabled on the General tab.
Procedure: Create a Specified Payment Schedule

If you select Specified in the Allocation list, follow these steps to complete the Payment schedule setup. 1. From the Payment schedules form, General tab, in the Payment per list, select the date interval in Days, Months, or Years. The system uses this information when it calculates the due date of each installment. 2. Use the Sales tax allocation list to distribute the sales tax amount on a bill of exchange to the payment schedule installments. 3. Click the Payment Lines tab to define the line information for the payment schedule, designate the number of different payments, and divide the percent of the total that is due in each payment. 4. In the Quantity field, enter the time interval for each installment.
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5. In the Amount currency field, enter the value of the installment as a percentage of the amount invoiced or as an absolute amount, depending on the value you select in the Percentage/Amount field. 6. In the Percentage/Amount list, select whether the value entered is a percent or an absolute amount.
Procedure: Create a Fixed Amount or Quantity Payment Schedule

If Fixed amount or Fixed quantity is selected in the Allocation list, follow these steps to complete the payment schedule setup. 1. From the Payment schedules form, General tab, in the Payment per list, select the date interval in Days, Months, or Years. The system uses this information when it calculates the due date of each installment. 2. In the Change field, enter the number of units related to the value in the Payment per field between the due dates of each installment. 3. If the Allocation field is set to Fixed quantity, enter the fixed number of installments in the Number of payments field. 4. If the Allocation field is set to Fixed amount, enter the fixed amount in the Amount currency field. 5. Enter the minimum installment in the Minimum field. Minimum amounts override calculated payment amounts.
FIGURE 10.2 PAYMENT SCHEDULES FORM, GENERAL TAB
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Procedure: Apply or Change a Payment Schedule
You can apply the payment schedule to customers, sales orders, or free-text invoices. Follow these steps to apply the payment schedule to a sales order. 1. Click Accounts receivable, and then click Sales order Details. 2. Click the Advanced button. 3. Click the Price/discount tab. Select a payment schedule in the Payment schedule list. Follow these steps to change the payment schedule. 1. From the Sales order form, click the Setup button, and then click Payment schedule. 2. Click the Payment lines tab. The payment plan expands into a worksheet for the sales order. 3. Change the values in the Due date, Invoice amount, Disc. date, or Discount amount fields.
Test Your Knowledge

To set up a payment schedule, define the following. (Select all that apply.) ( ) Number of schedules ( ) Number of installments ( ) Amount of each installment ( ) Due date of each installment
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. Specify terms of payment for each: Vendor in the Vendors form. Customer in the Customers form. Purchase order in the Purchase order form. Sales order in the Sales order form.
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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.
Procedure: Create Terms of Payment

Follow these steps to create a term of payment. 1. Click Accounts receivable, click Setup, click Payment, and then click Terms of payment. 2. Press CTRL+N to create a new record. 3. On the Overview tab, in the Terms of payment field, enter a code or a short name for the term of payment, and then enter a descriptive name for the current terms of payment in the Description field.
Procedure: Create Terms of Payment - Setup

Follow these steps to enter setup information for a term of payment. 1. From the Terms of payment form, click the Setup tab. 2. In the Payment method list, select the method to calculate the due date: o Net o Curr. Mth. o Curr. Qtr. o Curr. Year o Curr. Week o C.O.D. 3. Enter the number of months to add to the payment method to calculate the due date in the Months field. 4. Enter the number of days to add to the payment method to calculate the due date in the Days field. 5. In the Payment schedule list, link a payment schedule to the term of payment. The payment schedule defines how an invoiced amount is split up into installments that must be paid in specific intervals.
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NOTE: If a term of payment is linked to a payment schedule, the rules set up in the term of payment are used to calculate the due date of the first installment. The rules set up in the payment schedule are used to calculate the due date of the following installments. 6. In the Payment day list, select a payment day used for calculation of due date. 7. Use the Language text 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.
FIGURE 10.3 TERMS OF PAYMENT FORM, SETUP TAB
Procedure: Create Terms of Payment - C.O.D.

If the C.O.D. (Cash on delivery) payment method is selected, follow these steps to complete the term of payment setup. 1. Select the Cash payment check box to indicate whether customers must make payments in cash and not by check. 2. In the Ledger posting area from the Cash list, select a ledger account for settlement of invoices that the system will use for cash payment.
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Procedure: Attach a Payment Term
You can attach the terms of payment to sales orders, free text invoices, or customers. For example, click Accounts receivable, and then click Free text invoice. On the Payments tab, select the terms of payment in the Terms of payment list.
Test Your Knowledge

Which of the following can be selected in the Payment method list to calculate the due date? (Select all that apply.) ( ) Net ( ) Curr. Week ( ) Curr. Year ( ) C.O.D.
Payment Days
Use payment days to define the payment day to use for calculating the due date. The due date always is rounded up to the nearest specified date automatically. You can specify the payment day for: A specific day in the week A specific date in the month
Procedure: Create a Payment Day

Follow these steps to create a payment day. 1. Click Accounts receivable, click Setup, click Payment, and then click Payment Days. 2. Press CTRL+N to create a new record. 3. Enter a short identification of the payment day in the Payment day field and then enter a description of the payment day identification in the Description field, on the Overview tab. 4. On the Payment day lines tab, select between Week and Month in the Week/Month list. If you select Week, select a value from the Weekday list, and if you select Month, enter a value between one and 31 in the Day field.
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Set up the payment day in the Terms of Payment form on the Setup tab to define the payment date to use to calculate the due date.
FIGURE 10.4 PAYMENT DAYS FORM
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Lab 10.1 - Terms of Payment

Scenario 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.
Need a Little Help?

The term of payment is assigned to the customer on the Payment tab of the Customers form.
Step by Step
Follow these steps to create a new term of payment. 1. Click Accounts receivable, click Setup, click Payment, and then click Terms of payment. 2. Click the New button or press CTRL+N. 3. In the Terms of Payment ID field, enter N018. 4. In the Description field, enter Net 18 days. 5. On the Setup tab, in the Payment Method field, select Net. 6. In the Days field, type 18. 7. Close the window. Follow these steps to assign a new term of payment to Desk World. 1. 2. 3. 4. Click Accounts receivable, and then click Customer Details. Select 1103, Cave Wholesales as the customer. Click the Payment tab. In the Terms of payment field, select N018.
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Cash Discount
Cash discounts are: Earned if a customer pays the invoices within a specified period. Linked to the Customer tables and Vendor tables. Posted to the ledger account specified for the cash discount when an invoice is settled in time to obtain a cash discount.
Scenario
Contoso's customers receive a cash discount if they pay invoices due within certain dates. Contoso has set up the following codes: 5D10% - Cash discount of 10 percent when the amount is paid within five days. 10D5% - Cash discount of 5 percent when the amount is paid within ten days. 14D2% - Cash discount of 2 percent when the amount is paid within 14 days.
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.
Procedure: Set Up Cash Discounts

Follow these steps to set up cash discounts. 1. Click Accounts receivable, click Setup, click Payment, and then click Cash discounts. 2. Enter an alphanumeric code for the cash discount in the Cash discount field. For example, enter 10D2% to indicate the customer receives a two percent discount if payment is made ten days before the due date. 3. Enter a brief description for the cash discount in the Description field. For example, enter 10 days/2% for the discount code 10D2%. 4. Select the cash discount code used when the criteria for obtaining the current cash discount is exceeded in the Next discount code list. This selection allows you to define a set of cash discounts that follow one another.
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Procedure: Set Up Cash Discounts - Setup
Follow these steps to define setup information for cash discounts. 1. From the Cash discounts form, click the Setup tab. 2. Select the method applicable for the cash discount from the Net/Current list. The method specified, together with the value given in the Days field and/or Months field, is used to calculate the last date the customer can make a payment and receive any available cash discounts. 3. Enter the number of months during the period when the cash discount is applicable in the Months field. 4. Enter the number of days during the period when the cash discount is applicable in the Days field. 5. Enter the cash discount as a percentage of the invoiced amount in the Discount pct. field. 6. Select the ledger account for debiting the cash discounts given to a customer in the Account allowed list. NOTE: Assign cash discounts to customers, journals, or sales orders.
FIGURE 10.5 CASH DISCOUNTS FORM, SETUP TAB
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Procedure: Define Accounts Receivable Parameters
Follow these steps to specify accounts receivable parameter values that affect the cash discount calculation. 1. To access the Accounts receivable parameters form, click Accounts receivable, click Setup, and then click Parameters. 2. Click the Settlement tab. 3. In the Cash-discount administration list select what to do with an overpayment or underpayment when a cash discount is not deducted correctly when the invoice is settled. Select from the following values: o Unspecific - The underpayment amount is posted to the customer cash discount account. If the applicable cash discount was posted in the same company as the overpayment, the system will adjust the cash discount. If the applicable cash discount was not posted in the same company as the overpayment, it is posted to the system cash discount account. If there are multiple cash discounts so that an overpayment was settled against multiple invoices, the adjustment to the discount is from the last invoice to the first discount. Specific - The overpayment or underpayment amount is posted to the customer cash discount account. For example, a customer's invoice total is 105.00 USD and the obtainable cash discount is 10.50 USD. Considering the cash discount, the customer should pay 94.50 USD ($105-10.50). However the amount actually paid by the customer is 95.00 USD. If the Cash-discount administration parameter is set to Unspecific, the invoice is settled and the difference of 0.50 is posted to the ledger account specified for cash discount differences automatically. If the Cash-discount administration parameter is set to Specific, the invoice is settled, and the difference of 0.50 is posted to the customer's cash discount account.
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Procedure: Define General Ledger Parameters
Follow these steps to specify general ledger parameter values that affect the cash discount calculation. 1. To access the General ledger parameters form, click General ledger, click Setup, and then click Parameters. 2. Click the Sales tax tab. 3. Select the Customer Cash Discount: Cash discount is calculated on amount incl. sales tax check box to specify that the cash discount is calculated based on the amount plus sales tax.
Test Your Knowledge

Customers earn cash discounts by paying an invoice within a specified period. ( ) True ( ) False
Payment Fee
Use payment fees to: Specify if any additional charges are added to the customer invoice. Define fee identifications, specify bank relations, and identify how to generate fees.
Scenario
Contoso defined guidelines on how to handle late payments: If a customer does not pay an invoice within the due date, it is subject to late payment fees. Contoso assesses most invoices late payment fees 30 days after the invoice date.
Procedure: Create a Payment Fee

Follow these steps to create a payment fee. 1. Click Accounts receivable, click Setup, click Payment, and then click Payment fee. 2. Enter an identification in the Fee ID field. 3. Enter a brief description in the Description field. 4. Enter a text that is used in reports and inquiries in the Transaction text field.
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5. Select whether to charge the Customer or Ledger to use a financial cost for the fee in the Charge list. If Ledger is selected, select an account number in the Ledger account list for posting in the ledger. 6. Click the General tab. 7. Select the journal type for which the fee is valid in the Journal type list.
FIGURE 10.6 PAYMENT FEE FORM
Procedure: Define Payment Fee Setup

You can define a payment fee to set up lines for each fee used for different banks, methods of payment, remittance types, payment specifications, currencies, time periods, and amount intervals. Follow these steps to set up a payment fee. 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 list. 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 3. Select a bank relation from the Bank relation list if: o A bank account - Table is selected in the Grouping list o Bank groups - Group is selected in the Grouping list o Skip - All is selected in the Grouping list 4. Select a method of payment used for the actual payment fee in the Method of payment list. 5. If the company agrees with the bank to specify the payment, select the payment specifications in the Payment specification list.
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6. Select the currency that activates the fee in the Currency list. 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 list.
FIGURE 10.7 PAYMENT FEE SETUP FORM
Procedure: Define Payment Fee Setup - General

Follow these steps to define additional options for the payment fee setup. 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.
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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. 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.
FIGURE 10.8 PAYMENT FEE SETUP FORM, GENERAL TAB
Procedure: Define Payment Fee Setup - Interval

You can enter fees for the selected payment fee setup line that depend on the interval between the remittance and due dates. Follow these steps to define an interval payment fee setup. 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.
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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
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. Methods of payment can be assigned to: Customers Journals Sales orders
Procedure: Create a Method of Payment

Follow these steps to create a method of payment. 1. Click Accounts receivable, click Setup, click Payment, and then click Methods of payment. 2. Press CTRL+N to create a new record. 3. Enter a name for the new method of payment in the Method of payment field. 4. Select whether Microsoft Dynamics AX 2009 should total the invoices in an automatic payment proposal in the Period list. Select from the following options: o Invoice - creates one payment transfer for each invoice o Date - combines all invoices for customers who have the same due date o Week - combines all invoices for customers who have a due date within the same week o Total - combines all invoices from customers for the same payment 5. Enter a description of the method of payment in the Description field.
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6. Enter the number of days the customer can make the payment after the specified method of discount, and still receive a cash discount in the Days of grace field. 7. Select the payment status required to post a payment with this method of payment in the Payment status list. 8. 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. 9. Select the liquidity account for payment in the Payment account list. 10. Enter the transaction type for a bank account in the Bank transaction type list. The transaction type is marked on every transaction generated in the payment proposal. This field is only active when the account type is bank.
FIGURE 10.9 METHODS OF PAYMENT - CUSTOMERS FORM
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Procedure: Create a Method of Payment - File Formats
Follow these steps to specify the file format. 1. Click the File formats tab. 2. Specify the file formats to use with this Method of Payment by using the following table to complete the File formats tab: Format Export format Import format Action Specify the format to export electronic payment. Specify the file format for the bank report about payments from customers. Specify a format to return a message from the export format if the bank supports an electronic return file. Specify the file format for remittances to a specific bank.
Return format
Remittance format
NOTE: If the format list is empty, click the Setup button and select from the available formats.
Procedure: Create a Method of Payment - Payment Control

Follow these steps to select the validation for the method of payment. 1. From the Methods of payment - Customers form click the Payment control tab. 2. Select the validation for the method of payment. Validation is executed in the journals upon posting when the payment method is used. Select one or more of the following validation methods: o Check number is mandatory - verifies that the check number is entered o Payment reference is mandatory - verifies that a payment reference is entered o Use deposit slip must be checked - indicates that the option to use a deposit slip must be selected 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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Test Your Knowledge
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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Lab 10.2 - Set up a Method of Payment

Scenario 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. Here are the details for the method of payment: Field Period Days of grace Payment status Account type Payment account Bank transaction type Value Total 2 None Bank EUR OPER 02
Challenge Yourself!
Set up a new method of payment for European cash payments with a two-day grace period.
Step by Step
1. Click Accounts receivable, click Setup, click Payments, and then click Methods of payment. 2. Press CTRL+N to create a new method of payment. 3. In the Method of payment field, type in CASH_EUR. 4. Click the Period arrow, and then click Total. 5. In the Description field, type Cash - Euro. 6. In the Days of grace field, type 2. 7. Click the Payment status field, and then click None. 8. Click the Account type arrow, and then click Bank. 9. Click the Payment account arrow, and then click EUR OPER. 10. Click the Bank transaction type arrow, and then click 02.
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Customer Groups
Using customer groups: Use Customer groups to set up certain information that always defaults when entering a new customer. For example, use the customer groups to set up automatic posting to General Ledger accounts for revenue generated by customers. Also, set up ledger accounts for the automatic transactions generated in connection with receipt and issues of inventory. In the Customer group form, set up any number of customer groups. At least one customer group must be set up, because a customer group must be specified when you set up a new customer.
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.
Procedure: Create a Customer Group

Follow these steps to create a new customer group. 1. Click Accounts receivable, click Setup, and then click Customer groups. 2. Press CTRL+N to create a new record. 3. Enter a short name for the customer group in the Customer group field. Use this name for the customer group anywhere in Microsoft Dynamics AX 2009, whenever required to specify a customer group. 4. Enter the full name of the customer group in the Description field. The name acts as additional specification of the customers included in the customer group. To view the name of the customer in all dialog boxes in which customer group is shown point the mouse at the customer group and wait until the name is displayed.
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5. Specify a payment term that corresponds to the default time interval between the sale of an item and the due date on the invoice in the Terms of payment list. Use the payment term in connection with coverage of customer payments based on one sales budget per customer group. For example, a sales budget is set up for customer group X. Then a sale of $10,000.00 is budgeted for June 15. A payment term is then specified that corresponds to the current month + 30 days. On this basis, coverage is arranged so that the budgeted item sale of $10,000.00 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 date in the Settle period list. Use the payment terms with coverage of customer payments based on one sales budget for each customer group.
FIGURE 10.10 CUSTOMER GROUP FORM
Procedure: Define Inventory Posting

Follow these steps to set up automatic postings to General ledger accounts for a customer group. 1. From the Customer groups form, click the Setup button, and then click Inventory 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.
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o o Group: The posting in the ledger only applies to a particular Item group. 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 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.
FIGURE 10.11 INVENTORY POSTING FORM

Follow these steps to define parameter values.
FIGURE 10.12 ACCOUNTS RECEIVABLE PARAMETERS FORM, LEDGER AND SALES TAX TAB
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1. To access the Accounts receivable parameters form, click Accounts receivable, click Setup, and then click Parameters. 2. Click the Ledger and sales tax tab. 3. In the Posting area, select in the Primary sales posting, Primary consumption transaction, and Primary discount posting fields to indicate whether the primary posting should be assigned to Item or Customer. 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, Microsoft Dynamics AX 2009 posts the transaction to account number 401130, because the item relation is more specific than the account relation. Item code All All Table B-R14 Item relation Account code All Group All 40 Account relation Account number 401100 401120 401130
If you have set up the posting as illustrated in the following table, and you set the Primary sales posting list 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. Item code All Table B-R14 Item relation Account code Table All Account relation 4000 Account number 401100 401130
Test Your Knowledge

How many customer groups must you create in Microsoft Dynamics AX 2009? ( ) At least one ( ) At least two ( ) At least three ( ) At least four
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Lab 10.3 - Create a Customer Group

Scenario 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 Account number 142300.
Challenge Yourself!
Create the new customer group with the correct setup options.
Need a Little Help?

1. Create the new Customer Group 60, Travel Agencies. 2. Define automatic posting for the new group.
Step by Step
Create the new Customer Group 60, Travel Agencies. 1. Click Accounts receivable, click Setup, and then click Customer groups. 2. Press CTRL+N to create a new group. 3. In the Customer group field, type 60. 4. In the Description field, type Travel Agencies. 5. Click the Terms of payment arrow, and then click M15. 6. Click the Settle period arrow, and then click N014. For the new group, define automatic posting. 1. From the Customer groups form, click the Setup button, and then click Inventory posting. 2. Verify that inventory posting has been set for the All Item code and All Account code to Account number 142300.
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Accounts Receivable Posting Profiles

Posting Profiles are common throughout all modules in Microsoft Dynamics AX 2009. In Accounts Receivable posting profiles, the summary accounts are defined for customers. Summary accounts are temporary accounts where all invoices are posted to and offset when the customer pays. Assign posting profiles to: 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: a posting profile line for the customer, this line is used. no posting profile line exists for the customer, the line specified for the customer group that the customer is attached to is used. neither of these exists, the posting profile line for all customers is used.
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.
Procedure: Create a Customer Posting Profile

Follow these steps to set up a customer posting profile. 1. Click Accounts receivable, click Setup, and then click Posting profiles. 2. Enter in the Posting profile field, a code or a short name in the posting profile and a description of the posting profile in the Description field. 3. Click the Table restrictions tab. 4. Select the Settlement check box to indicate whether entries should be created by using this posting profile for automatic settlement, or whether settlement must be manual by using open-transaction editing. 5. Select the Interest check box to indicate that the application should calculate interest on outstanding balances for customers who have this profile. If this check box is cleared, interest will not be calculated for customers who have this profile.
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6. Select the Collection letter check box if a collection letter may be issued for customers who have this profile. 7. Select from the Close list, the name of any other posting profile to change to when transactions with this posting profile are closed. A transaction is regarded as closed when it is settled in full.
FIGURE 10.13 CUSTOMER POSTING PROFILE FORM
Procedure: Create a Customer Posting Profile - Setup

Follow these steps to set up the ledger accounts that the system posts to when you post transactions in Accounts Receivable. 1. From the Customer posting profiles form, click the Setup tab. 2. Select an Account code: o Table o Group o All 3. Specify which customers belong to the current posting profile in the Account/Group number list. o If Table is selected in the Account code field, enter the account number of the customer to whom the posting profile relates. o If Group is selected in the Account code field, enter the customer group to which the posting profile relates. o If All is selected in the Account code field, do not fill in the field. 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 list.
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5. Select the liquidity ledger account that is used for cash flow forecast in the Settle account list. You can learn more about Cash flow forecast in the Microsoft Dynamics AX 2009 Financials II course. 6. Select a ledger account number to use for sales tax payments you receive in advance in the Sales tax prepayments list. 7. Enter the identification of the collection letter sequence in the Collection letter sequence field. 8. Select the code used for calculation in the Interest code field.
FIGURE 10.14 CUSTOMER POSTING PROFILE FORM, SETUP TAB
Procedure: Define Parameters

Follow these steps to specify accounts receivable parameter values related to posting profiles. 1. To access the Accounts receivable parameters form, click Accounts payable, click Setup, and then click Parameters. 2. Click the Ledger and Sales tax tab. 3. Select a standard customer posting profile in the Posting profile list. The standard posting profile is used if no other posting profile is specified.
Test Your Knowledge

Assign posting profiles to: (Select all that apply.) ( ) All customers ( ) All employees ( ) Groups of customers ( ) Single customers
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Lab10.4 - Set Up a Customer Posting Profile

Scenario 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. Select the appropriate options to ensure the following: Entries should be created by using this profile for automatic settlement. The application should calculate interest on outstanding balances for customers who have this profile. A collection letter may be issued for customers who have this profile. When transactions are settled in full, the transactions should not change to another posting profile. Transactions for the retail customers group should post to the summary account 130100 and settle account 110110.
The following information is for the new customer posting profile: Field Posting Profile Description Account Code Collection letter sequence Value Prom Promotion Group High
Challenge Yourself!
Help Arnie create the new customer posting profile.
Step by Step
1. Click Accounts receivable, click Setup, and then click Posting profiles. 2. Click the New button or press CTRL+N. 3. On the Overview tab, in the Posting Profile field, type Prom. 4. In the Description field, type Promotion. 5. On the Table restrictions tab, make sure that the following check boxes are selected: o Settlement o Interest o Collection letter
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6. 7. 8. 9. 10. 11. 12. Verify that the Close field is blank. On the Setup tab, in the Account code field, select group. In the Account\Group Number field, select 30 Retail Customers. In the Summary account field, select 130100. In the Settle account field, select 110110. In the Collection letter sequence field, select High. Close the form.
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Accounts Receivable Customers

Each Accounts Receivable transaction must be associated with a customer. Use the Customer form to create, maintain and inquire about customers. Enter as much data as possible in advance, because the data is used throughout Microsoft Dynamics AX 2009 for: Invoicing Payments Reports
The base data automatically is displayed as the default for all transactions that involve the customer. You can change default information at any time.
Procedure: Create a Customer

Follow these steps to create a new customer. 1. Click Accounts receivable, and then click Customer Details. 2. Press CTRL+N to create a new record. 3. Enter a Customer ID with up to ten characters in the Customer Account field, and then enter a customer name with up to 30 characters in the Name field. The system automatically generates the Customer account if the customer account number sequence is specified in the Accounts receivable parameters form on the Number sequences tab. 4. Enter the name to use when you search for the customer in the Search name field. If you do not enter a name, the system will default and uses the Name field. 5. Select a customer account for invoicing in the Invoice account list. For example, if you are linking several customers to one invoice account, if there is more than one customer who has the same payment address, or if the customer's account is paid through a third-party, then the invoice account is where the invoice amount is credited. If you leave the field blank, the system uses the customer account number by default. 6. Select the customer group to which the customer belongs in the Customer group list. 7. Select the currency used for customer invoices in the Currency list.
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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 you enter sales order lines.
FIGURE 10.15 CUSTOMERS FORM
Procedure: Create a Customer - General

Follow these steps to set additional customer options. 1. From the Customers form, click the General tab. 2. Select in the Language list, the language that is used for all external documents such as sales orders. The language code is mandatory. The language value defaults from the Other tab of the Company information form. 3. Select the Mandatory credit limit check box to check for exceeded credit limits and, if found, to display an error message. 4. Enter in the Credit rating field, the credit rating of the customer. It is used only for statistical purposes. 5. Enter in the Credit limit field, the maximum outstanding amount allowed in the balance of the customer's account. This amount is always stated in the default currency.
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NOTE: Configure the system to check whether an account is over its credit limit on the Credit rating tab of the Accounts receivable parameters form. 6. Depending upon the selection in the Address book type field on the Overview tab, in the Government identification area you may enter values in the ID number, License number, Country/region, or State fields. These government-established data values are commonly used to protect companies against financial loss due to delinquent accounts. NOTE: Configure the system to require identification on the Credit rating tab of the Accounts receivable parameters form. 7. Block a customer account manually in the Stopped list, by selecting one of the following: o No - No blocking. All forms of transaction are possible. o Invoice - The account is blocked for everything before Invoice. Money can still be received, and an invoice can be sent on goods delivered before the blocking. o All - All transactions are blocked.
FIGURE 10.16 CUSTOMERS FORM, GENERAL TAB
8. Select the One-time customer check box to indicate if the company only deals with this customer one time.
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NOTE: If you are using one-time customers, you must set up a number sequence in the Accounts receivable parameters form on the Number sequence tab. On the General tab in 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. Microsoft Dynamics AX 2009 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. 9. Select a statistical group in the Statistics group list to make reports and statistics about this customer. 10. Specify the frequency of when you send the customer an account statement by using the Account statement list. Select from the following options: o Always - Monthly o Quarter - Every three months o Biannually - Every six months o Annually - One Time per year o Never - Not printed 11. Select a vendor account number in the Vendor account list if the customer is also a vendor. Use the vendor account for reimbursement. If a customer has a credit amount because of overpayment or a credit note, you can transfer the amount to the vendor account.
Procedure: Create a Customer - Setup

Follow these steps to further define setup information for a customer. 1. From the Customers form, click the Setup tab. 2. Select a number sequence for internal numbers on sales invoices and sales order credit notes in the Number sequence group list. If the field is empty, the system uses the sales order number.
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3. Specify whether tax should be calculated on the invoice in the Sales tax group list. Select the Prices incl. sales tax check box to ensure that you include sales tax when you inform customers about sales prices.
FIGURE 10.17 CUSTOMERS FORM, SETUP TAB
Procedure: Create a Customer - Other

Follow these steps to define further setup information for a customer. 1. From the Customers form, enter on the Addresses and Contact information tabs, the customer address and contact details. 2. If a customer has more than one address, such as invoice, delivery, purchase, or alternative delivery address, enter additional addresses by clicking the Setup button and then Address from the Customers form. 3. Enter address, contact information, and parameters for access from the Internet for external contact persons who associate with customers by clicking the Setup button and then Contact Details from the Customers form. NOTE: If alternative delivery addresses are in different states or countries, ensure that you enter the appropriate tax group for each alternative address. You must associate tax groups with a delivery address.
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4. Enter information about how to manage payments on the invoices entered in Accounts Receivable in the Customer form, on the Payment tab. Enter the following payment information: o Terms of payment o Method of payment o Payment specification o Payment schedule o Payment day o Cash discount 5. Set up specific dimensions for a customer on the Dimensions tab. Throughout Microsoft Dynamics AX 2009, you can use dimensions to group data in different ways. If you designate dimensions for a customer, those dimensions automatically default for transactions for that customer. You can change these defaulted values when you enter the transaction.
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Lab 10.5 - Create a Customer

Scenario Contoso has begun working with a new customer, Adventure Works. Arnie, the Accounts Receivable Clerk, must set up this new customer. These are the details: Option Customer group Credit limit Mode of delivery Sales tax group Terms of payment Method of payment Value Retail 10,000 USD Air Illinois Net 30 days CHCK
Challenge Yourself!
Create a new customer.
Step by Step
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Click Accounts receivable, and then click Customer details. Press CTRL+N to create a new customer. In the Customer account field, type 3000. In the Address book type field, select Organization. In the Customer name field, type Adventure Works. In the Address book with Adventure Works selected, click the Select button In the Customer group field, select customer group 20. Click the General tab. In the Credit limit field, enter 10000. Click the Setup tab. In the Mode of delivery field, select 20, Air. In the Sales tax group field, select IL. Click the Payment tab. In the Terms of payment field, select N030. In the Method of payment field, select CHCK.
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Summary
Payment options in Microsoft Dynamics AX 2009 are flexible to accommodate different business processes. You can: Define terms based on: o o The number of months or days A current period (for example, current month or current quarter), and with or without additional months or days
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 o o Percentage allocation of the actual invoice amount Allocation based on a fixed number of installments Combined amounts and percentages of the invoice amount
Set up cash discounts based on a current period or a number of net days. If you require cash discounts, you can be set them up as multiple (for example, ten days 3 percent and 30 days 1 percent). Decide whether you need special ledger accounts to post Set up Microsoft Dynamics AX 2009 to manage the cash discount with or without sales tax to comply with the tax legislation in various countries
You can also group customers to categorize information so that it is meaningful. You can: Set up automatic posting rules for customer transactions to ensure that the transactions affect the correct accounts Become aware of situations and trends more quickly by grouping customers who have a common identifier to view and analyze financial results in more detail. For example, you can group customers by the types of products you sell them or by the dollar volume of sales
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Test Your Knowledge

Test your knowledge with the following questions. 1. Use ____________ to pay invoices in installments. ( ) Method of payment ( ) Customer groups ( ) Payment schedules ( ) Payment fee
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2.
3.
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Solutions
Payment Schedule
Test Your Knowledge
To set up a payment schedule, define the following. (Select all that apply.) ( ) Number of schedules () Number of installments () Amount of each installment () Due date of each installment
Terms of Payment
Test Your Knowledge
Which of the following can be selected in the Payment method list to calculate the due date? (Select all that apply.) () Net () Curr. Week () Curr. Year () C.O.D.
Cash Discount
Test Your Knowledge
Customers earn cash discounts by paying an invoice within a specified period. () True ( ) False
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Methods of Payment
Test Your Knowledge
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
Customer Groups
Test Your Knowledge
How many customer groups must you create in Microsoft Dynamics AX 2009? () At least one ( ) At least two ( ) At least three ( ) At least four
Accounts Receivable Posting Profiles

Test Your Knowledge
Assign posting profiles to: (Select all that apply.) () All customers ( ) All employees () Groups of customers () Single customers
Test Your Knowledge

1. Use ____________ to pay invoices in installments. ( ) Method of payment ( ) Customer groups () Payment schedules ( ) Payment fee
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CHAPTER 11: ACCOUNTS RECEIVABLE DAILY PROCEDURES

Objectives
The objectives are: Create a Free Text Invoice Edit an Open Free Text Invoice Create a Payment Proposal Mark customer transactions for Settlement Create a Payment Journal Edit Open Transactions Place an Accounts Receivable transaction on hold Reverse a Settlement Reimburse a Customer Describe Reason codes in Accounts receivable List the activities that you can control with print management settings Examine print management setup
Introduction
This course discusses the free text invoice and the payment journal. The course also explains various Accounts Receivable transactions that you may use in daily procedures in the Accounts Receivable module of Microsoft Dynamics AX 2009.
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Free Text Invoice - Description and Usage

Use free text invoices to create a sales invoice with order lines that include the following: 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. NOTE: After you post a free-text invoice, the program automatically saves a copy; however, you can no longer make changes to it.
Differences Between a Free Text and an Ordinary Invoice

The difference between a free text invoice and an ordinary invoice is as follows: On an ordinary invoice: o o The user specifies the item number, and the system posts the item-related transactions in the ledger. 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.
On a free text invoice: o o No item numbers are specified by the user. A ledger account for the sale is selected by the user and is displayed on each order line. The system posts the customer balance to the summary ledger account for the posting profile inherited from the customer, unless the user specifies a different posting profile on the free text invoice.
Free Text Invoice - Typical Usage Scenario

Scenario - Using Free Text Invoices 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.
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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.
Procedure: Create a Free Text Invoice - Overview Tab

Follow these steps to create a free text invoice in the Overview tab.
FIGURE 11.1 THE FREE TEXT INVOICE FORM
1. Configure the following setup before you issue a free text invoice. Click Accounts receivable, click Setup, then click Parameters on the Number sequences tab, and set up the free text invoice number sequence for these references: o Free text invoice o Free text credit note o Free text invoice voucher o Free text invoice credit note voucher 2. Open the Free text invoice form by clicking Accounts receivable and then clicking Free text invoice details.
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3. Select the desired customer from the Customer account list. This selection identifies the customer to which the transaction will post. However, if the one time customer check box is enabled before you select the customer, then the customer number will be created automatically from the next number in the one-time customer number sequence. 4. Select the account number to invoice in the Invoice account list if it differs from what is set up in the Customers form. 5. Select the One-time customer check box to create a one-time customer by using the one-time customer number sequence. 6. Change the date and currency, if necessary. The date and currency are entered automatically when you select a customer account. NOTE: The Invoice field is entered automatically when the invoice posts.
Procedure: Create a Free Text Invoice - Invoice Tab

Follow these steps to create a free text invoice in the Invoice tab. 1. On the Invoice tab, in the Recipient field, select the employee who received the order. This field is optional. 2. Change the language, if necessary, in the Language field. The language is set automatically to the default language code set up by clicking Basic, clicking Setup, and then clicking Company information. 3. Change the Posting profile, if necessary. The Posting profile is inherited from the value contained in the customer record of the customer you select. The Posting profile is one source of receivables ledger accounts. 4. Enter a number sequence group in the Number sequence group list. Number sequence groups are collections of number sequences that are grouped and assigned with one common heading to ease administration. This field is optional. 5. Do not enter information in the Date field. The Date field is populated automatically from the Overview tab. The Due date and the Discount date fields are populated automatically depending on the payment terms specified on the Payment tab. A Release date may be entered. 6. Change the Sales tax field group values, if necessary. The Sales tax field group values default from the Customers form. All fields are optional. 7. In the References area, enter customer information such as a contact person, a customer reference, or the number of the service or product that the customer requested. All fields are optional. 8. Optionally, enter Document date and Foreign trade information.
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Procedure: Create a Free Text Invoice - Other Tabs
Follow these steps to create a free text invoice in the Address, Payment, and Dimension tabs. 1. Enter or change customer address information on the Address tab, if necessary. 2. Enter or change customer payment information on the Payment tab, if necessary. This tab is explained in detail in the Accounts Receivable Setup course. 3. Enter or change customer dimensions on the Dimension tab, if necessary, or apply dimensions for specific invoice lines on the Dimension invoice line tab.
Procedure: Create a Free Text Invoice - Invoice Line Tab

Follow these steps to create a free text invoice in the Invoice Line tab. 1. On the Invoice lines tab, in the Description field, enter a short description of the item or service. The way the invoice is set up determines the amount of text that appears on the invoice printout. You cannot edit the text after you update an invoice.Optionally, enter an extended description in the Invoice text field. If you enter text in this field, the system uses these words instead of the text in the Description field when the invoice prints. 2. In the Ledger account list, select a ledger account to which the line will post. This account is typically a revenue account, to which the sales amount post in General Ledger. The total invoice amount posts, as an offset account transaction, to the Summary account that is specified in the Posting profile field on the invoice tab. 3. Change the Sales tax group information in the Sales tax group and Item sales tax group lists if necessary. 4. In the Amount field, enter the invoice line amount, excluding sales tax, in invoice currency. Optional fields allow you to associate text, a fixed asset number, or value model to the invoice line You also can enter Reason codes. Note that the use of Reason codes may be mandatory elsewhere in the system. Additionally, you can enter more detailed information about foreign trade.
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Procedure: Create a Free Text Invoice - Posting
Click the Setup or Posting buttons, and follow these steps to post the Free text invoice. 1. Optionally, before you post, click the Setup button to change or add miscellaneous charges, sales tax, payment schedules, or delivery address. 2. To post the invoice, click the Posting button, then click Free text invoice after you have entered all the necessary information. Posting creates the ledger entries for the free text invoice. Optionally, you can print the invoice. 3. To view the posted invoice after posting, click the Inquiries button, and then click Invoice. You can reprint the invoice by clicking the Preview/Print button, and then selecting one of the print options. 4. To view the posted voucher and ledger entries, go to the Free text invoice form, and then click the Inquiries button, click Invoice, and click the Voucher button.
Procedure: Free Text Invoice - Edit Open Transactions

Follow these steps to edit open transactions on a free text invoice. Click Accounts receivable, click Free text invoice details, click Functions, then click Open transaction editing to edit an open free text invoice transaction. Use the open transaction editing functionality 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. You can perform a more thorough edit of unposted and posted receivable transactions by clicking Accounts receivable, clicking Customer details, clicking the Functions button, and then clicking Open transaction editing.
Free Text Print Enhancements

In Microsoft Dynamics AX 2009, several sections have a form tab that relates to Free text invoices: The Form setup form to open, click Accounts receivable, then click Setup, click Forms, and finally click Form setup. The Form sorting parameters form to open, click Accounts receivable, then click Setup, click Forms, and finally click Form sorting.
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In addition, you can use two types of form notes specifically for Free text invoices: Customer free text invoice Customer free text invoice credit note
To open these form notes, click Accounts receivable, then click Setup, click Forms, and finally click Form notes. Use print management functionality for Free text invoices on the Free text invoice form, by clicking the Setup button, and then clicking Print management.
Test Your Knowledge

You can create inventory transactions that use item numbers by using Free text invoices. ( ) True ( ) False An ordinary invoice consists of _____. (Select all that apply.) ( ) The companys bank accounts ( ) A ledger account for the sale is indicated on each order line, and the customer balance is posted for each customer group, unless specified otherwise ( ) A sales order that makes the inventory transactions ( ) The item number that specifies and posts in the ledger
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Lab 11.1 - Create Free Text Invoices

This lab provides practice for you to create and post a free text invoice. 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. Customer Account Invoice Account Date Forest Wholesales (1101) Forest Wholesales (1101) System date
Enter the line for the invoice. Use the following information to create line information: Description Ledger Account Sales Tax Item Sales Tax Amount Invoice for Consulting Design 401190 Accept the default Accept the default $1450.00
Challenge Yourself!
Use any of the methods described in this section to create and post the free text invoice.
Need a Little Help?

1. Create a free text invoice. 2. Use the invoice register to register and post the invoice.
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Step by Step
Follow these steps to complete the exercise and set up the Accounts Receivable Free Text Invoice. 1. To enter the free text invoice, go to Accounts receivable and then click Free text invoice details. 2. Press CTRL+N to create a new record. 3. In the Customer Account field, click the drop down arrow, and select customer 1101 (Forest Wholesales). 4. In the Invoice Account field, enter 1101 (Forest Wholesales). 5. In the Date field, enter System date. 6. To enter the line for the invoice, click the Invoice lines tab. 7. In the Description field, enter Invoice for Consulting Design. 8. In the Ledger Account field, enter 401190. 9. In the Sales Tax field, enter Accept the default. 10. In the Item Sales Tax field, enter Accept the default. 11. In the Amount field, enter $1450.00. 12. To post the invoice, select Free text invoice under the Posting button. 13. Click OK to post the invoice. 14. Close the Infolog form. 15. Close the Free text invoice form.
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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. For information on the Centralized payments functionality, please refer to the Financials II in Microsoft Dynamics AX 2009 collection. You can use payment journals to: Enter and post payments. Make and enter payments into Microsoft Dynamics AX 2009 according to the terms of payment established with the customers. In the Payment journal, you can select the customer invoices to which payments will be recorded by creating the journal's payment lines: o Use a Payment proposal to search for invoice lines that meet certain selected search criteria. For example, you must generate payment lines based on payment due dates. Use the Settlements option to select the specific invoice lines to settle, and to which to record payments. Create a Payment journal line manually to enter the payment details manually.
o o
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: 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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Procedure: Create a Payment Proposal - General Process
Follow these steps to create a payment proposal.
FIGURE 11.2 PAYMENT PROPOSAL
1. Open the Payment proposal form by clicking Accounts receivable in the Navigation pane, and then clicking Journals. Then click Payments and click Payment journal. After the basic journal information is created, click the Lines button. Finally, click the Payment proposal button, and then click Create payment proposal. 2. In the Customer payment proposal form, select the type of payment proposal to create in the Proposal type field. Create the proposal by due date, cash discount date, or by both due date and cash discount date. a. Select Per due date to transfer the set of customer payments that are due. b. Select By cash discount to transfer the set of customer payments that fulfills the criteria for obtaining a cash discount. c. Select Due date & cash discount to transfer the set of customer payments that fulfills the criteria for obtaining a cash discount and after that to transfer customer transactions proposed after the due date.
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3. Click the Select button to select specific customers or a range of customers. 4. Select the Generate check box to indicate that you want to generate the payment proposal transactions.
Procedure: Create a Payment Proposal - Refining Selections and Creating the Proposal
Follow these steps to further refine the criteria for selecting the transactions that appear in the Payment proposal. 1. Enter the total amount to be selected for payment in the Amount limit field. 2. Enter the maximum lines to be paid in the Transaction limit field. 3. Enter the period for the customer transactions to be included in the payment proposal in the From date and To date fields. 4. If the customer transaction has a Method of payment whose period is set to the Total type, the payment proposal uses the date entered in the Total payment date field to aggregate the transactions. Enter the payment date that you want to use in the Total payment date field. 5. Add other criteria as appropriate in the other fields on the Customer payment proposal selection form, and then click OK. This will open a Customer payment proposal edit form, which has the following panes: a. The Open transactions pane of the form shows the open invoice transactions for the selected payment proposal line. b. The Payment proposal pane of the form shows the payment proposal lines, which includes transactions from all customers based upon the criteria selected.
Procedure: Working With Open Transactions in Payment Proposals

Follow this procedure to modify the Payment proposal lines in the edit form. 1. Inspect each proposal line and the associated open transactions to ensure that they are ready for settlement. For example, you can review if you want to delete one or more of the open invoice transactions from the Open transactions lines in the Open transactions pane, if payment of these items is unacceptable or unwanted. 2. To delete a line, put the cursor on the line and press ALT+F9. 3. To change certain fields on several lines in one operation, select the lines, click the Multiple change button, and enter the values to implement.
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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.
Procedure: Create a Payment Proposal - Move Selected Lines into Payment Journal and Post
Follow this procedure to transfer the selected lines from the Payment proposal into the Payment journal. 1. Continue in the Customer payment proposal form to edit the lines if necessary. 2. Verify the balances of company bank accounts to ensure that you can make the payments. To view the balances, click the Balance control button. 3. Click Transfer to move the proposal lines to the Payment journal after you have reviewed them and made any changes. 4. Click Validate to validate the payment lines. 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: Sometimes, 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.
Procedure: Create a Payment Proposal - Mark for Settlements Method

You can use the Settlement option to select invoice lines to pay instead of using the payment proposal option. Follow these steps to create a payment proposal for a marked settlement. 1. Open the Payment journal form by clicking Accounts receivable in the Navigation pane, and then clicking Journals. Then click Payments, click Payment journal. After you create the basic journal information, click the Lines button. 2. Select a customer account in the Account field.
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3. Click the Functions button, then click Settlement to open the Open transaction editing form.
FIGURE 11.3 OPEN TRANSACTION EDITING FORM- SETTLEMENTS
4. Select the Mark check box to select the invoices to transfer to the Customer payment proposal form. Mark one or several invoices for settlement. NOTE: A red mark shows in the Is marked field if a transaction already is marked for settlement.
NOTE: You must enter a Customer account and Currency to use the Settlements option.
Procedure: Transfer Marked Settlements to Payment Proposal and Payment Journal

Follow these steps to transfer the marked settlements to the Payment proposal and Payment journal. 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 will open. Click OK to confirm and continue.
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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: Sometimes, 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.
Procedure: Manually Create a Payment Journal - Create the Journal

You also can create a Payment journal manually by entering the invoice information into the journal. Follow these steps to manually create a Payment journal. 1. Open Accounts receivable, and then click Journals, click Payments, and then click Payment journal. 2. Click CTRL + N to create a new journal. 3. Select a payment journal in the Name field. 4. Enter information in other fields, such as the Description field, as appropriate and then click Lines. NOTE: Some fields in the journal contain default values that the Journal names form assigns to the journal, and these fields usually are not edited by the user.
NOTE: Some journals are more limited, such as the Invoice register form, and not all fields listed in the example are available.
Payment Journal Fields

After you click the Lines button, these fields display in the Journal voucher form: Field name Date Description View or enter the posting date. The system date (today's date) is entered automatically, but you can select another date as appropriate. Select the company to associate with the customer for this transaction.
Company accounts
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Field name Account
Description Enter or view the account number for the account type that is selected in the Account type field. Enter or select the invoice number that relates to the payment. For example, if you received a payment receipt from your bank, enter the invoice number. Information about the customer displays. If multiple invoices are related to the payment, use the Open transaction editing form to select the invoices, instead. If an asterisk (*) displays, it indicates that multiple invoices or transactions other than invoices are assigned to the payment. Enter descriptive text about the transaction. Alternatively, enter the code for the standard journal text created in the Journal texts form. Enter a debit amount in the currency selected for the journal line. This could be, for example, used for customer refunds. Enter a credit amount in the currency selected for the journal line. Users typically (but not always) enter customer payment amounts in this field. Select this check box to indicate that the amount must be deposited with a deposit slip. Select the account type for the offset transaction to the customer payment. This is typically the bank account type for customer payment journal lines. Enter or view the account number for the offset account type that is selected in the Offset account type list.
Invoice
Transaction text
Debit
Credit
Use a deposit slip Offset account type
Offset account
Procedure: Payment Journal Lines - Invoice Number Known

After you create the Payment journal and click the Lines button, use this procedure if you know which invoice number the payment is for. Follow these steps to create a payment journal line with a known invoice number. 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.
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Procedure: Payment Journal Lines - Customer Known or Multiple Invoices
After you create the Payment journal and click the Lines button, use this procedure in the Journal voucher form, if you know which customer account the payment is for, or if you intend to use the payment to settle multiple invoices. Follow these steps to create a payment journal line for multiple invoices. 1. In the Account field, enter the customer account that you have received a payment for. 2. TAB to the Invoice field and click the arrow. All open invoices for the customer will display. 3. For a known customer and a single invoice, select the invoice that you want and skip to step 8, or alternatively proceed to step 4 for multiple invoices. 4. Click Functions, and click Settlement. 5. In the Open transaction editing form, select the Mark field on the line for the customer invoice that corresponds to the received payment. 6. If the customer has sent a payment that applies to several invoices, select the Mark field on each relevant invoice line. To see if the payment results in a discount for the customer for a specific invoice, place your cursor on the invoice line and click the Cash discount tab. If a discount applies, it will be subtracted from the original invoice amount automatically when you create the payment line in the next step. 7. Close the Open transaction editing form. The payment line or lines appear in the Journal voucher form with the correct invoice information. 8. Click Validate to validate the payment line or lines, and then click Post, and click Post again.
Payment Journal - Notes on Generating Payments

Sometimes, customers allow the company to withdraw the payment directly from their bank accounts. In such a case, use the generate payment functionality to withdraw the payment from the account. In these cases, when you create the payment journal, it is ready to be paid. The procedure on how to generate payments is the same for payment proposals, settlements, and manual payment journals.
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Enter Customer Payments Form
In AX2009, an alternative to manual creation of Payment journal lines is the use of the Enter customer payments functionality. Use this form to enter, settle, and save customer payments. You can select Transactions based on a variety of lookup fields, including: Customer account information Customer invoice information, including: o o o Open invoice Credit note Collection letter
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.
Procedure: Enter Customer Payments Form

Follow these steps to enter customer payments using the Enter customer payments form. 1. Click on Accounts Receivable, then click Journals, and click Payment journal. 2. Create a new Payment journal by clicking CTRL+N, or alternatively use an existing Payment journal. 3. Click the Enter customer payments button. 4. If you know the invoice, interest note, collection letter, or other transaction identifier, enter the identifier and click the lookup button in the Search for customer transactions field group. Select a document and skip to step 6. 5. If you do not know the identifier, enter the information about the payment in the Customer payment information field group. 6. In the Select to pay field group, select the invoices or other documents to settle with the payment. 7. Click Save in journal. 8. Repeat steps 3 through 6 for the remaining payments. 9. Click Close. 10. In the Journal form, click Validate to validate the payment line or lines, and then click Post, and click Post again.
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Procedure: Enter Customer Payments Form - Select by Customer
Follow these steps to view and select transactions for a specific customer. 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.
Enter Customer Payments Form - Notes and Hints

If the amount in the Amount field of the Enter customer payment form does not equal the total of the marked transactions, then the form will display a warning that The payment is not fully settled. Adjust the marked transactions or amount accordingly if you want to; if you do transfer payment to the journal without adjustment, normal overpayment or underpayment posting rules will apply. 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.
NOTE: If the selected transaction is not an invoice transaction or credit note transaction, then an asterisk will appear in the Invoice field of the created payment line.
Procedure: Edit Customer Payments Form

The Edit customer payments form works similarly to the Enter customer payments form. It does not contain the Search for customer transactions functionality and it also does not contain the Clear and Save in journal buttons.
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Follow these steps to use the Edit customer payments form. 1. Click on Accounts receivable, then click Journals, click Payments, and then click Payment journal. 2. Select or create the payment journal record, and then click the Lines button. You also can use the Enter customer payments function prior to clicking Lines. 3. If you have not used the Enter customer payments function to create the payment line, create the payment line manually. If the Enter customer payments function was used, the created lines display in the journal. 4. Select the line to edit, and click the Edit customer payments button. This button is inactive unless you have created and saved a payment line, although you do not have to specify all fields in that line. 5. If you entered either a customer transaction or a customer account on the payment journal line, then all open invoices for the entered customer will appear in the Select to pay pane of the Edit customer payments form. The Mark check box for the transaction selected in the payment line already will be selected. You can continue to mark other customer transactions by clicking Mark. If you entered neither an invoice or customer payment on the payment line, the edit form will not show transactions, and you may proceed to select a customer and mark transactions. 6. To select additional customer transactions, repeat steps 1 to 6. 7. Click the Close button to exit the form and return to the Payment journal. Post the journal as you normally would.
Test Your Knowledge

When the invoice is registered and approved, the customer must pay for the invoice. ( ) True ( ) False What does the payment proposal function do? (Select all that apply.) ( ) Searches for due payment lines ( ) Searches for vendors ( ) Searches for payment lines that have a maximum date for receiving a cash discount ( ) Checks open and approved customer transactions
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Lab 11.2 - Settlements - Entering an Accounts Receivable Payment Journal (Cash Receipt)
This lab enables you to practice settling an invoice. Scenario Contoso has received a payment from Sunflower Shopping Mall. Use the following information to create a settlement for the invoice in Accounts Receivable. Date Account Credit Offset Account Use the system date Sunflower Shopping Mall 2,499.00 110180
Challenge Yourself!
1. Create a payment journal. 2. Use open transaction editing to apply this payment to the correct invoice.
Need a Little Help?

1. Post the Payment journal. 2. Apply this payment to the original invoice by using Open transaction editing to apply this payment. 3. Mark the invoice for settlement.
Step by Step
Follow these steps to create a payment journal and use open transaction editing to apply this payment to the correct invoice. Create the Payment journal: 1. Click Accounts receivable, then click Journals, click Payments, and then click Payment journals. 2. Press CTRL+N to create a new journal. 3. Select ARPay in the Name field.
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4. Click the Lines button and enter the information specified in the example for the payment. o Use customer number 2112, Sunflower Shopping Mall o Enter the amount of 2,499 o Use offset account 110180 5. 6. 7. 8. 9. Click the Post button. Click Post to post the invoice. Close the Infolog form. Close the Payment journal form. Close the Journal form.
Perform Open transaction editing in the Customer form: 1. Apply the payment to the original invoice of the same amount, by using the Open transaction editing function in the Customer form. To do this, click Accounts receivable, then click Customer details, and then select the customer Sunflower Shopping Mall. Next, click Functions, and then click Open transaction editing. 2. Select the Mark check box for both the payment and the invoice and then click the Update button to apply the payment to the invoice. 3. Close the Open transaction editing form. 4. Close the Customers form.
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Use the Open transactions editing form to make changes in transactions for customers. Only unapplied transactions are available for editing. The following procedures explain how to: Settle invoices and payments Specify a cross rate between invoices and payments Reorganize transactions with new due dates
Settling Invoices and Payments

You can settle invoices and payments in the Edit open transaction form, if, for example, the invoice and payment are not settled when you create the payment. When you settle invoices and payments: If The amount paid is more than the amount due The payment amount is less than the amount due The amount paid equals the amount due Then The system settles the invoice and the payment transaction remains open for the amount by which the payment exceeded the amount due The system subtracts the payment from the amount due and the invoice remains open The system generates a payment transaction for the payment amount, and then closes the transaction
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Procedure: Settle Invoices and Payments
Follow these steps to settle invoices against payments or make corrections to open transactions.
1. Click Accounts receivable, then click Customer details, then click the Functions button, and then click Open transaction editing. 2. Select the relevant postings to settle by selecting the Mark check box or click the Mark payment button, if this transaction is to be the Primary payment. The purpose of a primary payment is to obtain a more correct history (since all the other transactions marked for settlement will then be settled against the primary payment), or to select the basis currency used for cross rate. 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. 3. Click Update. The selected vouchers offset one another. If you do not settle a voucher is in full, the system records it with a status of Open.
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4. To enable automatic settlements, click Accounts receivable, then click Setup, then click Posting profiles. Select the relevant customer posting profile, and on the Table tab select the Settlement check box. In some cases, it is convenient to allow for an automatic settlement of invoices and payments. For example, if a company has to handle numerous small customers who have few payments, such as subscribers to magazines, this can be an efficient solution to posting payments.
Procedure: Specify the Cross Rate in Open Transaction Editing

You can use a cross rate when you settle a payment with an invoice, and the payment and invoice lines are in different currencies. When you select an invoice and a primary payment, you can enter a cross rate for the invoice line. The cross rate is the exchange rate between the currencies for those transactions as of the settlement date. Follow these procedures. 1. 2. 3. 4. Click Accounts receivable, then click Customers. Select the customer whose open transactions you are settling. Click Functions, then click Open transaction editing. Select the transaction that is the primary payment, and click the Mark payment button. The check box in the Mark column is selected, and an information icon is shown in Primary payment column. 5. In the Cross rate field, enter the exchange rate multiplier between the invoice currency and the payment currency, as of the settlement date.
Reorganizing Open Transactions

You or a customer might pay one invoice on multiple dates or might use multiple payment methods, such as a check and cash. When this happens, you can reorganize an invoice into several parts and assign a separate payment method to each part. After you reorganize the invoice, you can settle each new invoice line with a separate payment. You can refer to the following information to reorganize customer transactions in accounts receivable journals and vendor transactions in accounts payable journals. NOTE: You also can reorganize transactions in the general journal and in payment journals.
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Procedure: Reorganizing Open Transactions
Follow these steps to reorganize payments. 1. 2. 3. 4. 5. 6. 7. Click Accounts receivable > Customer details. Select an account. Click Functions, then click Open transaction editing. On the Overview tab, select the Mark check box for an invoice. Click Transaction reorganizing. Select whether to reorganize the transaction by percentage or by amount. On the Overview tab, create a new line for each new due date. For each due date, enter the percentage or amount of the original transaction that is due on that date. To reorganize the original transaction by method of payment, you can enter the same due date for each line. You will select the method of payment in step 12. Verify that the percentage or amount shown in the Remainder field is 0. Click Accept to transfer the reorganized transactions to the Open transaction editing form. Select a new transaction. Select the Payment tab and select a method of payment and a payment specification. Repeat steps 11 and 12 for the remaining new transactions.
8.
9. 10. 11. 12. 13.
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.
Test Your Knowledge

In open transactions, you can: ( ) Edit unapplied transactions ( ) Make changes in transactions for customers In open transactions, you can: (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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What is the cross rate functionality used for? ( ) When the payment and the invoices are in different currencies ( ) When the payment and the invoices are in the same currencies ( ) When the customer and the invoices are in the same currencies ( ) When the customer needs to be reimbursed 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 Edit open transactions form ( ) In the Reverse settlements function It is possible to split open transactions. ( ) True ( ) False
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Lab 11.3 - Edit Open Transactions

You can practice editing open transactions in this lab. Scenario You are an Accounts Receivable Coordinator at Contoso. Whale Wholesales (Customer account 1301) has purchased some design consultancy from Contoso. You need to create a free text invoice because the sale is not an inventory transaction. The price agreed on for consulting $99.00 plus tax. Two weeks later, a check for $108.90 arrives from the customer, so you then must 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 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!
1. Create the Free Text Invoice. Use ledger account 401200. 2. Record the payment and apply the payment to the correct invoice by using Open transaction editing.
Need a Little Help?

1. Create a Free text invoice. 2. Create and post a Payment journal. 3. Use the Open transactions editing functionality to mark the transactions. 4. Use the Closed transactions editing functionality to view the transactions.
Step by Step
Create the invoice: 1. From the Navigation pane, click Accounts receivable, then click Free text invoice details. 2. Press CTRL+N to create a new invoice. 3. In the Customer account field, type 1301. 4. Click the Invoice lines tab. 5. In the Description field, type Design consultancy. 6. Click the Account arrow, and then click 401200.
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7. 8. 9. 10. 11. 12. TAB to the Amount field, and type 99.00. Click the Posting button, then click Free text invoice. Click OK. Close the Infolog form. Close the Free text invoice form. Close the Print form.
Create and post the Payment journal: 1. Click Accounts receivable, then click Journals, click Payments, and then click Payment journal. 2. Press CTRL+N to create a new journal. 3. In the Name field, select ArPay. 4. Click Lines. 5. In the Account field, type 1301. 6. Click the Transaction text arrow, type Pay, and TAB to the next field. 7. In the Credit field, type 108.90. 8. Click the Post button, and then click Post. 9. Click OK to close the Infolog dialog box. 10. Close the form. Settle the invoice: 1. 2. 3. 4. 5. 6. 7. Click Accounts receivable, then click Customer details. Click Customer account 1301. Click the Functions button, then click Open transaction editing. Select the Mark check box for the invoice line just created. Select the Mark check box for the payment line just created. Click Update. Close the form.
Verify the settlement: 1. 2. 3. 4. 5. Remain in the Customer details form. Click Customer account 1301 if needed. Click the Functions button, then click Closed transaction editing. View the transactions in this form. Close all the forms.
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Placing an Accounts Receivable Transaction on Hold

To make data entry more flexible, you can enter a transaction on one date, and then put it on hold to prevent users from posting it until a specified date. This functionality is useful if you have an agreement with a customer about when a transaction can be posted. To prevent a transaction from being posted until a specified date, enter a release date, until which the transaction is on hold. You can edit and save transactions that are on hold, but you cannot post them unless you first remove the hold.
Procedure: Place an Accounts Receivable Transaction on Hold

You can place an accounts receivable transaction on hold by using one of the following paths: Click Accounts receivable, then click Free Text Invoice Details Click Accounts receivable, then click Journals, click Payments, click Payment journal, and then click Lines Click Accounts receivable, click Journals, click Payments, and then click Payment transfer Click Accounts receivable, click Journals, and then click Bill of exchange. Open any Bill of Exchange journal, and then click Lines
Follow these steps to place an accounts receivable transaction on 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. 3. Press CTRL+S to save the transaction.
About Release Date for Held Transactions in Different Time Zones

If your organization includes users who work across multiple time zones, the date and time when a transaction is released from a hold is based on the time zone of the user who most recently modified the Release date value. Because the transactions release at midnight on the specified date in that user's time zone, the actual date and time of the release adjust accordingly for users in other time zones. For example, on December 31 in New York, a user puts a transaction on hold at noon Eastern Time, and enters a release date of January 1 (the next day). The user sets up the transaction to be on hold until midnight Eastern Time, so the user must wait 12 hours for the transaction to be released.
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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: Use the Closed-transaction editing window to edit fully applied or settled transactions that are in history. Use reverse settlements if the bank does not honor a payment, or if you used the wrong date or settlement amount. An unsettled invoice is considered unpaid and is handled together with collection letters.
Scenario - Reversing Settlements 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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Procedure: Reverse Settlements
Follow these steps to reverse a closed transaction.
FIGURE 11.5 CLOSED TRANSACTION EDITING FORM
1. Click Accounts receivable, then click Customer details, then click the Functions button, and then click Closed transaction editing. 2. Put the cursor on the line that contains the settlement to reverse. 3. Select the Mark field to reverse the invoice or payment to associate with the settlement. The Mark field of the transaction that offsets the transaction marked is selected automatically. 4. Click Reverse. 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.
Test Your Knowledge

You can reverse a settlement if the bank does not honor a payment. ( ) True ( ) False
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Lab 11.4 - Reverse a Settlement

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.
Need a Little Help?

Use the Functions button, and then click Closed transaction editing, to reverse the payment posting error.
Step by Step
1. From the Navigation pane, click Accounts receivable, then click Customer details. 2. Click customer account 1301. 3. Click the Functions button, then click Closed transaction editing. 4. Click the transaction line that recorded a payment for 108.90. 5. Select the Mark check box. 6. Click the Reverse button. 7. Close all the forms.
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Reimburse a Customer
When you work with the reimbursement feature: Use it to repay customers who have credit amounts because of overpayment or credit notes. It transfers the balance to a vendor account. The vendor account is set up in the Customer form, otherwise a onetime vendor account is created automatically. The Accounts Payable Coordinator can create an ordinary payment when the balance amount transfers to a vendor account.
Scenario - Reimbursing Customers

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.
Procedure: Reimburse a Customer

Follow these steps to reimburse a customer. 1. Click Accounts receivable, click Setup, and then click Parameters. 2. On the General tab, in the Minimum Reimbursement field, enter a minimum amount for reimbursement of customer overpayments. If the reimbursement amount is equal to or greater than the value in the Minimum Reimbursement field, the balance transfers to the vendor account. 3. Close the Parameters form. 4. Click Accounts receivable, click Periodic, and then click Reimbursement.
FIGURE 11.6 THE REIMBURSEMENT DIALOG
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5. Click Select to reimburse specific customer accounts, and to specify the customer accounts in the CustOverPayment query form. To reimburse all customer accounts, click OK. 6. The credit amounts transfer to the vendor accounts of the customers and are processed automatically as ordinary payments. 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 clicking Customer details, selecting the desired customer, and then clicking the General tab. The Vendor account field is located on that tab. 7. Click Accounts receivable, then click Reports, click Transactions, click Payment management, and then click Reimbursement to view the reimbursement transactions created.
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Lab 11.5 - Reimburse a Customer

This lab demonstrates how to use customer reimbursements. Scenario Whale Wholesales purchases additional design consultancy services with the same price as before - $99.00, plus tax. As the Accounts Receivable Administrator, you create a free text invoice for this order. The Accounts Payable Coordinator at Whale Wholesales sends a check for $120.00 immediately because he could not remember the exact amount of the consulting order, but thought that the last order was for about $120.00. 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!
Create the invoice for Whale Wholesales, post the payment, and generate the reimbursement for the overpayment.
Need a Little Help?

1. Change the Minimum reimbursement field for Accounts receivable parameters to 5.00. 2. Create and post a Free text invoice for the sale. Use ledger account 401200. 3. Create and post a Payment journal for the payment. 4. Edit the open transactions. 5. Generate the reimbursements.
Step by Step
Set the Minimum reimbursement value: 1. From the Navigation pane, click Accounts receivable, click Setup, and then click Parameters. 2. In the Minimum reimbursement field, type 5.00. 3. Close the form. Create the Free text invoice: 1. Click Accounts receivable, then click Free text invoice details. 2. Press CTRL+N to create a new invoice.
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3. 4. 5. 6. 7. 8. 9. 10. In the Customer account field, type 1301. Click the Invoice lines tab. In the Description field, type Consulting. Click the Ledger Account arrow, and then type 401200. TAB to the Amount field, and then type 99.00. Click the Posting button, and then click Free text invoice. Click OK. Close the print form., and all other forms.
Create and post the Payment journal: 1. Click Accounts receivable, then click Journals, click Payments, and then click Payment journal. 2. Press CTRL+N to create a new journal. 3. In the Name field, type ARPay. 4. Click the Lines button. 5. In the Account field, type 1301. 6. Click the Transaction text arrow, enter Pay, and then TAB to the next field. 7. In the Credit field, type 120. 8. Click the Post button, then click Post. 9. Click OK to close the dialog box. 10. Close all the forms. Settle the invoice and the payment: 1. 2. 3. 4. 5. 6. 7. Click Accounts receivable, then click Customer details. Click customer account 1301. Click the Functions button, then click Open transaction editing. Select the Mark check box for the invoice line just created. Select the Mark check box for the payment line just created. Click the Update button. Close all the forms.
Record the reimbursement: 1. C lick Accounts receivable, click Periodic, and then click Reimbursement. 2. Click the Select button. 3. In the Criteria field on the Customer account line, type 1301. 4. Click OK and click OK again. 5. Click Close to close the dialog box. 6. Close all the forms.
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Reason Codes
Reason codes are standardized 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 with the ability to analyze transaction history by specific reason. Reason codes can be used with: Fixed assets General ledger Accounts payable Accounts receivable Bank
Require Reason Codes in Accounts Receivable

In Accounts receivable, you can set up parameters to require reason codes when transactions are reversed or canceled, or when return orders are posted. You can view historical reasons in the Customer transactions and Voucher transactions forms. 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: Require reasons for payment cancellations Require reasons for return orders Require reasons for transaction reversals
Reason Codes in Accounts Receivable Transactions

After you have created reason codes, select reasons for transactions or other entries in the following forms in the Accounts receivable module: Cancel payment form Free text invoice form Transaction reversal form
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.
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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.
View Reason Codes in Accounts Receivable

View reasons for transactions in journals in the following areas: Type Free text invoice details To open the form Accounts receivable > Common Forms > Free Text Invoice Details
View reasons for transactions in history: Type Customer transactions Voucher transactions To open the form Accounts receivable > Common Forms > Customer Details > Transactions Accounts receivable > Common Forms > Customer Details > Transactions > Voucher
Print Management - AR
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: Number of copies to produce Multilingual document footer text Print destination
How Print Management Works

When you print documents such as invoices or packing lists, use defined settings for the original or copy records in print management. The effective records are the records established in Print management that control the printed output of original and copy records. An original or copy record contains the information that print management uses to print the document. The record that is used to print a document determines the footer text for the document, which printer to use, and the number of copies to print. For example, to print three copies of the sales order packing slip, each with different footer text, set up an original record and two copy records.
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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. Each original record or copy record can have up to 19 conditional settings associated with it. Each conditional setting has a related query. For example, you can create a query to print footer text in a different language for a specific customer. When you generate the document during posting, the queries that are associated with the conditional settings are evaluated automatically in the order in which the settings appear in the Print Management setup form. The setting that is associated with the first successful query is used to print the document.
Set Up Print Management at the Module Level

You can define print management settings for each module, account, transaction, or any combination of these three. You can create up to 99 original or copy records for every document type. You can create up to 19 conditional settings for each original or copy record, in addition to the default setting. 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.
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.
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Contoso requires five copies. Simon enters the footer information for each copy, which is as follows: Customer for the first and second copy Remittance Copy for the third copy Customer File for the fourth copy, which is filed by Customer name Numeric File for the fifth copy, which is filed in a numeric invoice file
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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Procedure: Set Up Print Management
Follow these steps to set up print management at the module level. 1. Click Accounts Receivable, click Setup, click Forms, click Form Setup, and click 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 display the options that you can specify for each type of record. The displayed fields vary, depending on the selected record. When you expand the hierarchy list, a plus (+) icon in front of the document type indicates that a setup record exists. 2. 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. 3. In the right pane in the Original/copy field, make a selection to create either 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. 4. If you are creating a copy, enter a name in the Name field. 5. To set up the original or copy so that it does not print, select the Do not print check box. If there is an override of an original or copy record from a higher level in the print management hierarchy, use this option to stop a document from printing instead of only changing the destination, number of copies, or footer text. This is a continuation of setting up Print management. Follow these steps to continue. 1. Click Accounts Receivable, click Setup, click Forms, click Form Setup, and click Print management button. 2. If the Default setting check box is selected, the original or copy prints even if the queries for any applicable conditional settings do not return any results. The original or copy is denoted in the hierarchical list by the word Default. 3. By default, the document prints at the specified printer destination when you click Printer setup from the posting form for the document. To change the printer destination, click the Destination field's lookup button and then click Printer setup to select a destination. After you make changes, click OK to return to the Print management setup form. 4. In the Number of copies field, enter the number of identical copies to print, up to 99 copies. 5. In the Footer text field, enter up to 50 characters to include at the bottom of the document. To print footer text in other languages, click the Footer text lookup button and set up footer text for the additional languages.
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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. To speed up establishing an open account with the customer, Arnie sets up a document copy for the sales order. He enters New Customer- need credit established as the footer and sets the print destination to the printer that belongs to Connie, the Credit and Collections Manager. He also enters a note that will print on Connie's copy that explains how much business they plan to conduct with the customer. This information will help Connie determine how much credit to grant to the customer. Arnie posts and prints the sales order, which prints a copy to Connie's printer.
Procedure: Set Up Print Management for an Account

Follow these steps to set up print management for a specific customer, prospect, or vendor account. 1. 2. 3. 4. Click Accounts receivable, and click Customer details. Select an account. Click Setup and then click Print management. In the left pane, expand the list for a document that is listed under the customer or vendor account. Any original or copy records are displayed. An icon with a blue arrow indicates that the original or copy record is inherited from the module level of the hierarchy. This is the print management information to use for the customer or vendor, unless you perform an override to make changes at the account level. 5. Review the original or copy record information. If changes are necessary, override the inherited record, copy an inherited record, create a new record, or create a new setting. o To override, right-click an original or copy record and select Override. The icon changes to display a red X to indicate that the record is now an override record. o To copy, right-click an original or copy record and select Copy. A copy is displayed in the list. Give the copy a new name.
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o o To create a new original or copy record, right-click a document type in the list and select New. A new record displays in the list. To create a new conditional setting, right-click an original or copy record and select New. A new conditional setting displays in the list. The conditional setting must have a description, and you must select query information.
6. Refer to the Set up Print Management procedure for more information about the fields available in the Print Management setup form.
Set Up Print Management for a Transaction

Set up print management original or copy records and conditional settings for a transaction, such as a sales order. This may be necessary if you use a different printer for a specific transaction. Refer to the following table for the complete list of documents supported in Accounts receivable, and the path that gives access to the print management setup for each document. Module Accounts receivable Documents Free text invoice Path Accounts receivable > Free text invoice > Setup > Print management Accounts receivable > Sales quotation > Setup > Print management Accounts receivable > Sales order > Advanced > Setup > Print management
Accounts receivable
Quotation
Accounts receivable
Sales order confirmation Sales order invoice Sales order packing slip Sales order picking list
1. In the left pane of the Print management setup form, expand the list of documents. Any original or copy records display. 2. Review the original or copy record information. If changes are necessary, override an inherited record, copy an inherited record, create a new record, or create a new conditional setting. o To override, right-click an original or copy record and select Override. The icon changes to display a red X to indicate that the record is now an override record. o To copy, right-click an original or copy record and select Copy. A copy displays in the list. The copy must have a new name.
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o o To create a new original or copy record, right-click a document in the list and select New. A new record displays in the list. To create a new conditional setting, right-click an original or copy record in the list and select New. A new conditional setting displays in the list. You must enter a description for the conditional setting and you must select query information.
3. Refer to the Set up Print Management procedure for more information about the fields available in the Print Management setup form.
Example: Conditional Print Management Settings

You can customize the document output by using conditional settings that apply based on the results of a query. For example, one copy might be sufficient for most customers, but an extra customer copy may be necessary for a certain set of customers. Set up an additional copy record and a conditional setting with an associated query for the customer accounts that must have the additional copy printed, such as customer accounts 1101 through 1103, and then define Customer copy 2 as the footer text for the extra copy. 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. Customer Customer 1102 Documents that print Original Customer copy Customer copy 2 (because the customer account falls within the query results for the setting) Warehouse copy Original Customer copy Warehouse copy
Customer 1104
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NOTE: Although conditional settings and queries provide flexibility in the print management settings, complex queries or numerous conditional settings can affect posting performance.
Procedure: Set Up Conditional Print Management Settings

Follow these steps to create a conditional print management setting. 1. In the left pane of the Print management setup form, right-click an original or copy record and select New. 2. Enter a Description for a conditional setting. 3. Click the Select button. 4. In the Query - Setting form, enter query information in the Criteria field. 5. When the query is complete, click OK. 6. Refer to the Set up Print Management for more information about available fields in the Print Management setup form.
Test Your Knowledge

How are print management settings defined? ( ) For each module ( ) For each account ( ) For each transaction ( ) For each module, account, transaction, or any combination of these three Which of the following activities can you not control with print management settings? ( ) Number of copies to produce ( ) Page orientation ( ) Multilingual document footer text ( ) Print destination
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Summary
For efficient management of Accounts Receivable, Microsoft Dynamics AX 2009 offers many advanced options, including: Extensive options for credit assessment and credit control Flexible terms of payment and cash discount
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. Microsoft Dynamics AX 2009 offers extensive options for editing open transactions, reopening closed transactions, and entering renegotiated payment schedules directly into the system. You can view the customer invoice and print a copy of it directly from the customer account.
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2.
3.
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Solutions
Free Text Invoice - Description and Usage
Test Your Knowledge
You can create inventory transactions that use item numbers by using Free text invoices. ( ) True () False An ordinary invoice consists of _____. (Select all that apply.) ( ) The companys bank accounts ( ) A ledger account for the sale is indicated on each order line, and the customer balance is posted for each customer group, unless specified otherwise () A sales order that makes the inventory transactions () The item number that specifies and posts in the ledger
Payment Journals
Test Your Knowledge
When the invoice is registered and approved, the customer must pay for the invoice. ( ) True () False What does the payment proposal function do? (Select all that apply.) () Searches for due payment lines ( ) Searches for vendors () Searches for payment lines that have a maximum date for receiving a cash discount () Checks open and approved customer transactions
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Test Your Knowledge
In open transactions, you can: ( ) Edit unapplied transactions () Make changes in transactions for customers In open transactions, you can: (Select all that apply.) ( ) Create a payment proposal () Edit unapplied transactions ( ) Create a free text invoice () Make changes in transactions for customers What is the cross rate functionality used for? () When the payment and the invoices are in different currencies ( ) When the payment and the invoices are in the same currencies ( ) When the customer and the invoices are in the same currencies ( ) When the customer needs to be reimbursed 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 Edit open transactions form ( ) In the Reverse settlements function It is possible to split open transactions. () True ( ) False
Reverse Settlements
Test Your Knowledge
You can reverse a settlement if the bank does not honor a payment. () True ( ) False
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Print Management - AR
Test Your Knowledge
How are print management settings defined? ( ) For each module ( ) For each account ( ) For each transaction () For each module, account, transaction, or any combination of these three Which of the following activities can you not control with print management settings? ( ) Number of copies to produce () Page orientation ( ) Multilingual document footer text ( ) Print destination
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CHAPTER 12: BANK MANAGEMENT DAILY PROCEDURES

Objectives
The objectives are: Create checks Delete checks Create a bank deposit entry Void checks Create a refund that prints out a check Use bank remittances Reverse a posted check payment Reconcile bank statements
Introduction
Within the Bank Management module, users manage the financial transactions between the company and its bank accounts. These transactions include the following: Processing payments to bank and ledger accounts Processing payments from bank and ledger accounts Reconciling the records of financial transactions from banks with the records in the Microsoft Dynamics AX 2009
This section discusses the various processes available to manage bank transactions in Microsoft Dynamics AX 2009.
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Scenario
At Contoso Annie is the Bookkeeper and she 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 2009, the Check form provides access both to view existing check transactions and to create new checks. Access the Check form in one of two ways: Through the Bank accounts form. Users must select a bank account from the list and then click the Checks button. The application only displays the checks for the selected bank account. From the Bank menu which provides a view of check transactions for all bank accounts.
FIGURE 12.1 CHECK FORM
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Procedure: Create Checks
Follow these steps to create checks. Click Bank, and then click Bank Account Details. Select the bank account from which you will write the checks. Click the Checks button. From the Check form, click the Create checks button. In the Creation of check form, the selected bank account is displayed in the Bank account field. 5. In the From field, enter the check number for the first check to be created. 6. In the Quantity field, enter the number of checks to be created. 7. Click OK. EXAMPLE: For Microsoft Dynamics AX 2009 to start with check number 2000 and to create 1250 checks, in the From field, type 2000, and in the Quantity field, type 1250. Microsoft Dynamics AX 2009 will create checks numbered 2000 to 3249. 1. 2. 3. 4.
NOTE: As soon as created checks are available, checks generate through the Accounts Payable payment journal. Generate a check on a bank account by selecting the Account type of Vendor and the Offset account type of Bank. Generate a check on a ledger account by selecting the Account type of Vendor and the Offset account type of Ledger.
Test Your Knowledge

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
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Delete a Check
After users create a check in Microsoft Dynamics AX 2009, they can delete the check as long as it has not been used. Checks that you create but do not use have the status of Created in the Status field.
Procedure: Delete a Check

Follow these steps to delete a check. 1. 2. 3. 4. 5. 6. 7. Click Bank, and then click Bank Account Details. Select the bank account from which to delete a check. Click the Checks button. Click the Delete checks button. In the From field, enter the number of the first check to delete. In the To field, enter the number of the last check to delete. To verify the deletion, type Delete in the Type Delete if you want to delete field, and then click OK.
FIGURE 12.2 DELETE CHECKS FORM
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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Test Your Knowledge
What status must a check have for you to delete it? ( ) Void ( ) Processed ( ) Created ( ) Invoiced
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Lab 12.1 - Create and Delete a Check

Scenario 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.
Need a Little Help?

Create 15 checks for the EUR OPER bank account, starting with check number 101. Delete the final three checks.
Step by Step
Create 15 checks for the EUR OPER bank account, starting with check number 101. 1. 2. 3. 4. 5. 6. 7. 8. Click Bank, and then click Bank Account Details. Select the line for the EUR OPER bank account. Click the Checks button. Click the Create checks button. In the From field, type 101. In the Quantity field, type 15. Click OK. Click the Close button in the Infolog.
Delete the final three checks. From the Check form, click the Delete checks button. In the From field, type 113. In the To field, type 115. Type Delete in the Type Delete if you want to delete field, and then click OK. 5. Click the Close button in the Infolog. 1. 2. 3. 4.
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Deposit Slips
A deposit slip is a document that you can use 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. Access deposit slips in the following ways: Click Bank, Bank Account Details, select a Bank account, click the Inquiry button, and then click Deposit slip to view only the deposit slips for the selected bank account. Click Bank, and then click Deposit slip to view all deposit slips, organized by bank account.
FIGURE 12.3 DELETE CHECKS FORM
Procedure: Create a Deposit Slip

Follow these steps to create a deposit slip. 1. Click Accounts receivable, click Journals, click Payments, and then click Payment journal. 2. Press CTRL+N to create a new record. 3. Select a journal name from the Name list. 4. Click the Lines button to access the Journal voucher form. Or, click the Enter customer payments button to enter the payment in the Enter customer payments form. 5. From the Journal voucher form, in the Account field, select the account of the customer who made the deposit. 6. Select a Transaction text to attach a note about the transaction to the deposit. 7. In the Credit field, type the deposit amount.
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8. Select the Use a deposit slip check box. 9. In the Offset account type field, select Bank. 10. In the Offset account field, select the bank account in which to make the deposit. 11. In the Currency field, enter the currency code of the bank account in which to make the deposit. 12. In the Payment reference field, enter a reference for the payment if applicable. 13. On the Dimension, Payment, Payment Fee, and Bank tabs, enter any applicable information. 14. Click the Post button, and then click Post. 15. Click Functions, and then click Deposit slip. 16. In the dialog box, enter the date in the Bank account statement date field, and then click OK to view the deposit slip.
Procedure: Cancel a Deposit Slip Payment

You might cancel a deposit slip payment if a customer payment is invalid. If you already have reconciled the deposit slip in the bank statement, you cannot cancel the payment. Follow these steps to cancel a deposit slip. 1. Click Bank, and then click Deposit slip. 2. Select the line with the deposit slip to cancel. When you cancel a deposit slip payment, the single payment is canceled, not the whole deposit slip. Other deposit lines remain unchanged. 3. Click the Cancel payment button. 4. In the Cancel payment form, select a reason for cancellation from the Reason code list. NOTE: The system may require a Reason code if the Require reasons for deposit slip payment cancellations check box is selected on the General tab of the Bank parameters form. 5. Accept the default value or modify the value in the Reason comment field. 6. Depending on which method your organization prefers and whether the Use review process for deposit slip payment cancellations check box is selected on the General tab of the Bank parameters form, do one of the following: o Click the OK button to post the cancellation. o Enter a Journal name, and then click the OK button to send the cancellation for review.
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Procedure: Review a Deposit Slip Payment Cancellation
You can submit a deposit slip payment cancellation for review. The system requires a review if the Use review process for deposit slip payment cancellations check box is selected on the General tab of the Bank parameters form. During review, you can either approve and post the journal, or reject the cancellation. Follow these steps to review cancellations. 1. Click Bank, 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 Record icon on the toolbar.
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Procedure: Verify a Deposit Slip Payment Cancellations
Follow these steps to verify that the system has canceled the deposit. 1. Select the line for the canceled deposit slip in the Deposit slip form, and then click the General tab. 2. Verify that a check mark is in the Canceled field.
FIGURE 12.5 DEPOSIT SLIP FORM
Test Your Knowledge

How can you tell if a deposit slip is canceled?
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Lab 12.2 - Create a Deposit Slip

Scenario 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: Create a customer payment journal View the deposit slip to verify it exists Cancel the deposit slip Verify that the system canceled the deposit slip
Need a Little Help?

Select the Use a deposit slip check box in the Customer payment journal. Click the Cancel payment button from the Deposit slip form to cancel the deposit slip.
Step by Step
Create a customer payment journal: 1. Click Accounts receivable, click Journals, click Payments, and then click Payment journal. 2. Press CTRL+N to create a new record. 3. Select ARPay in the Name list. 4. Click the Lines button. 5. In the Account field, select customer account 2022. 6. In the Credit field, type 1000. 7. Select the Use a deposit slip check box. 8. Make sure that the Offset account field contains USA OPER. 9. Make sure that the Currency field contains USD. 10. In the Payment reference field, type 1987. 11. Click the Post button, and then click Post. 12. Click the Close button in the Infolog.
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Verify that the deposit slip is created by viewing it: 1. Click the Functions button, and then click Deposit slip. 2. In the Deposit slip form, accept the default date, and then click OK. 3. Click OK again to view the deposit slip. Cancel the deposit slip: 1. 2. 3. 4. 5. 6. 7. Click Bank, and then click Deposit slip. Select the line that contains the deposit slip to cancel. Click the Cancel payment button. Select ERROR in the Reason code field. Select BA_Dep_Rev in the Journal name field. Click OK. Click the Close button in the Infolog.
Verify that the system canceled the deposit slip: 1. Select the line for the canceled deposit slip in the Deposit Slip form, and then click the General tab. 2. Verify that a check mark is in the Pending Cancellation field.
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Void Unposted Checks

After printing or trying to print checks, you may be unable to use them. For example, if a check is damaged while it is printed, you must void the unused checks.
Procedure: Void Unposted Checks

Follow these steps to void a check. 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 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.
Procedure: Verify Checks Are Void

Follow these steps to verify the checks are voided. 1. Click Bank, and then click Bank Account Details. 2. Select the relevant bank account, and then click the Checks button. 3. In the Status field, look for checks with the value Void.
FIGURE 12.6 CHECK FORM
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Lab12.3 - Void Unposted Checks

Scenario April is the Accounts Payable Clerk at Contoso. One of her regular tasks is to create checks. Yesterday, April created a check from the Bank of USA Operating Account for Topaz Electronics for 385 USD, and left before posting the check. Today, April opened the payment journal she created last night, only to see that she had made an error. She had created the check for $385, but should have created it for $3850.
Challenge Yourself!
Help April complete the following steps: 1. Create a payment journal and generate a check payment. Do not post the payment. 2. Use the Payment Status button to void the checks. 3. View the checks for the Bank of USA Operating Account to verify the check numbers is voided.
Need a Little Help?

Create a payment journal and generate a check payment, but do not post the payment: 1. In the Journal form, create a new journal. 2. In the Journal voucher form, enter the payment information for Topaz Electronics for 385 USD. The Method of Payment is USAUSD_CHK. 3. Use the Functions button to generate the check. 4. Use the USA OPER Bank account. Use the Payment Status button to void the checks: 1. In the Journal form, highlight the payment journal created previously, and then click the Lines button. 2. Use the Payment Status button to change the Payment status to Rejected. View the checks for the Bank of USA Operating Account to verify that the check numbers are voided.
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Step by Step
Create a payment journal and generate a check payment, but do not post the payment: 1. Click Accounts payable, click Journals, click Payments, and then click Payment journal. 2. Press CTRL+N to create a new journal. 3. Select APPay in the Name list. 4. Click the Lines button. 5. In the Account list, select 1201 for Topaz Electronics. 6. In the Debit field, enter 385. 7. Verify that USAUSD_CHK is selected in the Method of Payment field. 8. Click the Functions button, and then click Generate payments. 9. Select the Method of Payment of USAUSD_CHK. 10. In the Bank account list, select USA OPER, and then click OK. Use the Payment Status button to void the checks. 1. Notice that the Payment status field currently displays Sent. To change the value of the Payment status field, click the Payment status button, and then click Rejected. 2. In the Void check dialog box, select Yes to confirm the void. View the checks for the Bank of USA Operating Account to verify the check numbers are voided: 1. 2. 3. 4. Click Bank, and then click Bank Account Details. Select the USA OPER bank account. Click the Checks button. In the Status field, verify that the check's Status is Voided.
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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 2009 users can create a check refund that prints out a check. The refunding feature is implemented in payment journals for customers.
Procedure: Create a Check Refund

Follow these steps to create a check refund for a customer: 1. Create a customer payment journal line with a negative amount. To access the customer payment journal click Accounts receivable, click Journals, click Payments, and then click Payment journal. 2. Press CTRL+N to create a new record, and then name the journal. 3. Click the Lines button to access the Journal voucher form. 4. From the Journal voucher form, in the Account field, select the account of the customer who will receive the refund. 5. Select a Transaction text to attach note about the transaction to the check refund. 6. In the Credit field, type a negative amount for the refund amount. 7. In the Offset account type field, select Bank. 8. In the Offset account field, select the bank account from which to draw the refund. 9. In the Currency field, enter the currency code of the bank account from which to draw the refund. 10. On the Dimension, Payment, Payment Fee, and Bank tabs, enter any applicable information. 11. Modify the Method of payment to Refund. 12. Click the Functions button, and then click Generate payments. 13. In the Method of payment field, select Refund. 14. Select the Bank account from which to draw the refund. 15. Click OK to generate the check. 16. Click the Post button, and then click Post.
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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.
Test Your Knowledge

Task: Create a check refund by placing the following steps in order: Step _____ : Create a customer payment journal line with a negative amount. Step _____ : Post the payment journal. Step _____ : Generate the refund check. Step _____ : Modify the method of payment to Check Refund on the negative payment journal line.
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Lab 12.4 - Check Refund

Scenario Contoso received an overpayment on account from Triangle Headquarters. Annie, the Bookkeeper, must issue a refund check to Triangle Headquarters for 396 USD. The system should draw the refund from the US Operating Bank Account.
Challenge Yourself!
Help Annie create a refund check to pay Triangle Headquarters the overpayment amount of 396 USD.
Need a Little Help?

1. From the customer payment journal, create a new journal. 2. Create in the Journal voucher form, a line for Triangle Headquarters for the refund amount of 396 USD. 3. Enter the amount as a negative value to indicate that it is a refund. 4. Change the Method of payment to Refund. 5. Use the Functions button to create the check. 6. Post the refund amount.
Step by Step
1. To access the customer payment journal click Accounts receivable, click Journals, click Payments, and then click Payment journal. 2. Press CTRL+N to create a new record. 3. In the Name field, select ARPay. 4. Click the Lines button to access the Journal voucher form. 5. From the Journal voucher form, in the Account field, select 2022, Triangle Headquarters. 6. In the Credit field, type -396. 7. Verify that Bank is selected in the Offset account type field and USA OPER display in the Offset account field. 8. From the Method of payment list, select Refund. 9. Click the Functions button, and then click Generate payments. 10. In the Method of payment field, verify that Refund is selected. 11. In the Bank account field, verify that USA OPER is selected 12. Click OK to generate the check. 13. Click the Post button, and then click Post again.
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Bank Remittance
Use the Remittance form to view the remittances that are made to company bank accounts.
Procedure: Create a Bank Remittance

Follow these steps to create a bank remittance entry. 1. Click Accounts receivable, click Journals, click Payment management, and then click Remittance. 2. Press CTRL+N to insert a new record. 3. In the Method of payment field, select the method of payment to use for this payment. 4. In the Bank account field, select the bank account for this remittance. 5. The Printed field displays the date in the printed payment advice. 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.
7. Click the General tab. 8. In the Payment step identification field, select the step associated with the payment. 9. In the Currency field, verify that the currency code used for the payment is displayed. 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.
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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 2009 provides a function to reverse posted check payments.
Procedure: Reverse a Payment

Follow these steps to reverse a posted check. 1. 2. 3. 4. Click Bank, and then click Bank Account Details. Select the bank account that has a check to cancel. Click the Checks button. Select the line with the check number to cancel.
FIGURE 12.7 PAYMENT REVERSAL FORM
NOTE: To reverse a check after it is posted, the check must have the status of Paid. 5. Click the Payment reversal button. 6. In the Payment reversal form, enter the date. 7. Select a reason for the reversal from the Reason code list. NOTE: A Reason code may be required, if the Require reasons for payment reversals check box is selected on the General tab of the Bank parameters form.
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8. Accept the default value or modify the value in the Reason comment field. 9. Depending on which method your organization prefers and whether the Use review process for payment reversals check box is selected on the General tab of the Bank parameters form, do one of the following: o Click the OK button to post the cancellation. o Enter a Journal name, and then click the OK button to send the cancellation for review.
Procedure: Review a Payment Reversal

You can submit a payment reversal for review. The system requires a review if the Use review process for payment reversals check box is selected on the General tab of the Bank parameters form. During review, you can either approve and post the journal, or reject the reversal. Follow these steps to review reversals. 1. Click Bank, click Journals, and then click Check reversals. 2. Select the reversal journal to review and then click the Lines button. 3. Review the reversal and select one of the following approval options: o To approve and post the reversal journal, click the Post button, and then click Post or Post and transfer. o To reject the cancellation, click the Delete Record icon on the toolbar.
Reconcile a Bank Account

Bank Reconciliation is an important component of the Microsoft Dynamics AX 2009 financial management system. Bank Reconciliation contains the features that: Manage cash receipts and disbursements Enter additional transactions that affect balances Automate the reconciliation process
Procedure: Begin a Bank Account Reconciliation

Follow these steps to reconcile a bank account. 1. Click Bank, and then click Bank Account Details. 2. Select the bank account to reconcile, click the Functions button, and then click Account reconciliation. 3. Press CTRL+N to insert a new record. 4. In the Bank Account Statement Date field, enter the date from the bank account statement.
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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. 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.
FIGURE 12.8 BANK ACCOUNT STATEMENT FORM
Procedure: Reconcile Transactions

As soon as you have entered information about the bank reconciliation, you can start to review the transactions in the bank account instead of the transactions on the bank statement. Follow these steps to review transactions. 1. From the Bank account statement form, click the Transactions button. 2. Select the transactions to include in the reconciliation by selecting the Cleared check box. 3. To select a check interval to clear for reconciliation, click the Mark check interval for reconciliation button. In the Mark check interval form, enter the range of cleared check numbers in the From and To fields.
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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.
FIGURE 12.9 ACCOUNT RECONCILIATION FORM
Procedure: Enter Missing Transactions

Sometimes transactions that have not been recorded in the system appear on the bank statement. Follow these steps to create transactions that have not been recorded in the account. 1. Select the correct transaction type in the Bank Transaction Type list. 2. Enter the date of the transaction in the Date field. 3. If you used a check for the transaction, enter the check number in the Check Number field. Click the Checks button to view a list of the checks for this account.
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4. In the Deposit Slip field, enter the number for the deposit slip that a payment should be associated with, if applicable to the transaction. Click the Deposit Slip button to view a list of the deposits for this account. 5. In the Amount Currency field, enter the transaction amount in the specified currency. 6. In the Ledger Account field, indicate which ledger account the system should offset when you create the new transactions during reconciliation. The corrections post when you update the reconciliation. 7. In the Transaction Text field, enter text that describes the transaction. 8. On the Dimension tab, enter any required dimensions for the transaction. NOTE: When you create transactions manually during reconciliation, the application automatically will assign a voucher number, from the number sequence and will mark it Bank-account reconciled. The voucher number is displayed on the General tab.
Procedure: Complete a Bank Account Reconciliation

As soon as you have reconciled the transactions, click the Reconcile account button to perform the reconciliation of the Bank Account.
Procedure: Print Reconciliation Reports

Follow these steps to print reconciliation reports. 1. Click the Print button, and then click Reconciliation summary to print a bank reconciliation report. In the Bank reconciliation form, select the fields to include in the report: o Reconciliation summary o Cleared transaction detail o Uncleared transaction detail 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 reconciliation date.
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Test Your Knowledge
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
Summary
This course covered the main procedures in the Bank Management module in Microsoft Dynamics AX 2009. The application provides functionality to manage check payments, as well as procedures for resolving special situations with checks. Therefore, 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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Test Your Knowledge

Test your knowledge with the following questions. Explain the circumstances in which you would delete, void, or reverse a check.
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Solutions
Create Checks
Test Your Knowledge
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
Delete a Check
Test Your Knowledge
What status must a check have for you to delete it? ( ) Void ( ) Processed () Created ( ) Invoiced
Deposit Slips
Test Your Knowledge
How can you tell if a deposit slip is canceled? MODEL ANSWER - On the Deposit slip form, on the General tab, the Canceled check box is selected.
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Refund Checks
Test Your Knowledge
Task: Create a check refund by placing the following steps in order: Step 1 : Create a customer payment journal line with a negative amount. Step 4 : Post the payment journal. Step 3 : Generate the refund check. Step 2 : Modify the method of payment to Check Refund on the negative payment journal line.
Reconcile a Bank Account

Test Your Knowledge
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
Test Your Knowledge

1. Explain the circumstances in which you would delete, void, or reverse a check. 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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APPENDIX A: REPORTS AND INQUIRIES

Sales Tax Reports
Sales Tax Codes
The Sales tax codes report prints the sales tax codes with information about sales tax details and limits. General ledger > Reports > Base data > Sales tax codes
FIGURE 1.1 SALES TAX CODES REPORT
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The Sales tax transactions report prints a list of posted sales taxes. General ledger > Reports > Transactions > Sales tax transactions
FIGURE 1.2 SALES TAX TRANSACTIONS REPORT
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Sales Tax List
The Sales tax list report prints a list of sales tax postings not yet updated. General ledger > Reports > Transactions > Periodic > Sales tax list
FIGURE 1.3 SALES TAX LIST REPORT
Sales Tax Transactions - Details

The Sales tax transactions - Details report prints a list of posted tax transactions within a given time and sales tax code interval. This report shows where the tax base amount to each tax transaction is posted in the ledger.
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General ledger > Reports > Transactions > Groupings > Sales tax transactions - Details
FIGURE 1.4 SALES TAX TRANSACTIONS - DETAILS REPORT
Sales Tax Specification by Ledger Transaction

The Sales tax specification by ledger transaction report prints ledger transactions on which sales tax is calculated. For every ledger transaction, all sales tax codes together with the calculated sales tax amounts for the transaction are printed. All amounts are summed by ledger account.
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General ledger > Reports > Transactions > Groupings > Sales tax specification by ledger transaction
FIGURE 1.5 SALES TAX SPECIFICATION BY LEDGER TRANSACTION REPORT
Reconciliation Sales Tax/Ledger

The Reconciliation sales tax/ledger report helps reconcile the balances of sales tax and ledger accounts. The sum of all sales tax transactions is compared with the sum of all the ledger transactions posted on the related sales tax summary accounts. Click General ledger, click Reports, click Reconciliation, click Sales tax, and then click Sales tax to reconcile sales tax and ledger accounts. In the Reconciliation sales tax/ledger form, specify intervals for dates, vouchers and ledger accounts. If the Ledger account fields are empty, only the summary accounts that are defined in the Ledger posting form are shown in the report.
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NOTE: If clearing the Specification check box and selecting the Differences only check box, the report presents lines with balance differences that includes the transaction date, voucher number, tax balance, ledger balance, and the balance difference. If converting the company currency by running the job in the Company currency conversion form, penny differences may occur and are ignored in this report.
FIGURE 1.6 RECONCILIATION SALES TAX/LEDGER REPORT
Accounts Payable Reports

Vendor Base Data
Use the Vendor Base Data report to receive a list of vendor base data for all vendors that contain the default settings specified in the Vendors form in Microsoft Dynamics AX. To specify a specific vendor click Select in the Vendor base data form. There is also the capability to print a list with certain information such as vendors invoicing in a certain currency or using a specific term of payment.
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Accounts payable > Reports > Base data > Vendor base data
FIGURE 1.7 VENDOR BASE DATA REPORT
The vendor base data report prints a list of vendors and all their base data. To print a more simple report that has vendor contact details click Accounts payable, click Reports, click Base data, and then click Vendors.
Vendor Phone List

The Vendor phone list report prints a list of vendors and their contact information. There is also the capability to print a phone list of vendors with specific information such as terms of payment, currency, and so on.
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Accounts payable > Reports > Base data > Vendor phone list
FIGURE 1.8 VENDOR PHONE LIST REPORT
Open Invoice Transactions

Use the Open invoice transactions report to view all open invoices per vendor together with additional invoice information to check all invoices not yet paid.
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Accounts payable > Reports > Transactions > Invoice > Open invoice transactions
FIGURE 1.9 OPEN INVOICE TRANSACTIONS REPORT
Invoice Specification
The Invoice specification report prints a detailed breakdown of each invoice in the system. Use this report to print a list of all invoices with detailed information such as what items or services are purchased.
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Accounts payable > Reports > Transactions > Invoice > Invoice specification
FIGURE 1.10 INVOICE SPECIFICATION REPORT
Vendor Account Statement

Use the Vendor account statement report to print account statements per vendor. It includes: Base information, such as vendor name, address, and terms of payment. Transaction information, such as transaction date, voucher number, invoice number, due date, and amounts based on instructions.
To print a vendor account statement report, select from the following options: 1. Click Accounts payable, click Reports, click Transactions, click Vendor, and then click Account statement. 2. Select in the From date and To date field, the date for the balance at the end of the period. 3. Specify in the Assessment date field, the date of assessment of open transactions. If a date is not specified, assessment is made based on the dates defined in the From date and To date fields. 4. Select Discount in the Details list, to show transactions with a cash discount or select currency to show amounts in both registered currency and domestic currency. 5. Select the Only open check box,if it is selected the account statement only includes open transactions. If the Only open check box is not selected, all transactions are included.
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6. Select the Show payment schedule, toprint the Payment schedule at the time of invoice in detail. 7. Select the Without transactions check box to only print the account statement if it contains at least one transaction. If Without transactions is not selected, all account statements selected are printed, even if they do not contain any transactions. 8. Select the New page check box, to make a page break before printing a new account statement. If New page is not selected, the account statements are printed one after the other, and only when the page is full printing continues on a new page.
FIGURE 1.11 VENDOR ACCOUNT STATEMENT REPORT
Vendor Transactions
Use the Vendor transactions report to print all transactions for specific or all vendors. For example, print a report to receive a list of invoiced vendor transactions to view the amount in different currencies.
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Accounts payable > Reports > Transactions > Vendor > Transactions Three options can be selected when generating this report: Field Only open Include reversed Description If Only open is selected, transactions that are settled are not shown. Select the Include reversed check box to include transactions that are reversed using the Transaction reversal functionality. Select between Invoice date and Adjustment date.
Exchange rates
FIGURE 1.12 VENDOR TRANSACTIONS REPORT
History by Transaction
The History by transaction report documents the connection between the vendor accounts and the ledger accounts. Use this report to check the postings set up of vendors. Select the Totals per ledger account only check box if only a total is relevant per ledger account. The report then displays the total for all vendor transactions of the selected ledger accounts within the selected period. The date, the voucher number and the invoice number do not display.
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Accounts payable > Reports > Transactions > Vendor > History by transaction
FIGURE 1.13 HISTORY BY TRANSACTION REPORT
Vendor Aging
The Vendor aging report prints an aging report for vendor account balances. Use this report to know when the open invoices are due. Several different options can be selected when printing this report. Functionality is described as follows: Field Balance as on Start date Criteria Aging buckets Description Enter the balance as of date. Select the date for calculation of columns. Select if the report is made per due date or per invoice date. Select an aging bucket. The aging bucket is set up in the Aging buckets form in Accounts payable > Setup > Statistics > Aging buckets. The interval is overruled if an aging bucket is selected. Select Yes to print a description of the aging bucket.
Print aging bucket description
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Field Interval Day/Mth. Printing direction Details Negative balance Payment positioning
Description Number of units in each period, day, or month. Choose between day and month. This field works with the Interval field. Select directions for printing (future or past). If selected, all transactions are included. If selected, negative balances are included. Payment without settlement appears in the first column, when this field is selected.
As soon as the options desired are selected, this shows an Aging breakdown of Customer balances based on those options. Accounts payable > Reports > Status > Vendor aging report
FIGURE 1.14 VENDOR AGING REPORT
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Vendor Balance List
Use the Vendor balance list report to show side by side, how the vendor balances change during a defined sub period, for example, last month, and a defined period, for example, current year. The report shows credit totals. This often represent the amounts invoiced, and debit totals, usually amounts paid. Therefore, the report can be used for fast analysis of development in Accounts Payable. Field From date Report period start date To date Description This is the date for the opening balance column. This is the start date for the report period displayed in the debit and credit columns. This is the end date for the report period displayed in the debit and credit columns, and date for the closing balance column. None Prints accounts regardless of transactions or balance in the period. Opening balance Prints accounts that have opening balance on From date. Transactions Prints accounts that have transactions in the period between From date and To date. Closing balance Prints accounts that have closing balance on To date, which means accounts with transactions in the period between From date and To date or with an opening balance.
Criteria
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Accounts payable > Reports > Status > Vendor balance list
FIGURE 1.15 VENDOR BALANCE LIST REPORT
Vendor Invoice Turnover

Use the Vendor invoice turnover report to print the earnings for vendor invoices. Follow these steps to print this report. 1. Select in the Grouping by list, to group the report by Account number, or by Tax exempt number. 2. The Time interval is proposed as the current year to the system date, as the report is annual. 3. Enter in the Minimum amount field,a minimum transaction amount in the default currency. 4. Click Select for additional criteria, and then click OK (this is optional).
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Accounts payable > Reports > Statistics > Invoice > Invoice turnover report
FIGURE 1.16 VENDOR INVOICE TURNOVER REPORT
Vendor Invoice Journal

The Vendor invoice journal report prints a list of vendor invoices with the ability to set up criteria for a Misc. charges code and a Sales tax code. To sort the vendor information additional click Select.
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Accounts payable > Reports > Statistics > Invoice > Invoice journal
FIGURE 1.17 VENDOR INVOICE JOURNAL REPORT
Accounts Receivable Inquiries

Customer Transactions
Use the Customer transactions form to display an overview of all transactions that are posted or updated for the selected customer, including: Invoices Payments Interest Collection letters
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Accounts receivable > Customer Details > Transactions button
FIGURE 1.18 CUSTOMER TRANSACTIONS FORM
Customer Balance
Use the Customer balance form to view the current balance for the selected customer. It shows both the: Default customer currency balance The balance for any transactions entered in a different currency
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Accounts receivable > Customer Details > Balance button
FIGURE 1.19 CUSTOMER BALANCE FORM
Accounts Receivable Reports

Customer
Use the Customer report for a list of customer base data for all customers that contains the default settings specified in the Customers form in Microsoft Dynamics AX 4.0. To specify a specific customer click Select in the Customer base data form, for example, print a list with certain information such as vendors invoicing in a certain currency or using a specific term of payment.
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Accounts receivable > Reports > Base data > Customer base data
FIGURE 1.20 CUSTOMER REPORT
The Customer base data report prints a list of customers and all their base data. To print a more simple report that has customer contact details click Accounts receivable, click Reports, click Base data, and then click Customer.
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Customer Phone List
The Customer phone list report prints a list of customers and their contact information, for example print a phone list of customers who have specific information such as terms of payment, currency, and so on. Accounts receivable > Reports > Base data > Customer phone list
FIGURE 1.21 CUSTOMER PHONE LIST REPORT
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Invoice Journal
The Invoice journal report displays a list of all invoices for a selected customer and date. Accounts receivable > Reports > Transactions > Invoice > Invoice journal
FIGURE 1.22 INVOICE JOURNAL REPORT
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Customer Transactions
The Customer transactions report lists all transactions for a customer. Accounts receivable > Reports > Transactions > Customer > Transactions
FIGURE 1.23 CUSTOMER TRANSACTIONS REPORT
Customer Aging
The Customer aging report shows a balance due per customer per given period. Field Balance as on Start date Criteria Aging buckets Print aging bucket description Description Enter the balance as of date. Select the date for the calculation of columns. Select if the report is made per due date or per invoice date. Select an aging bucket. The Interval field is overruled if an aging bucket is selected. Select yes if the report should print a description of the aging bucket as defined in the Aging buckets form in Accounts receivable > Setup > Statistics > Aging buckets.
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Field Interval Day/Mth. Printing direction Details Negative balance Payment positioning
Description Select the number of units in each period, day or month. Choose between day and month. This field works with the preceding field. Select directions for printing (future or past). If selected all transactions are included. If selected negative balances are included. Payment without settlement appears in the first column, when this field is selected.
Accounts receivable > Reports > Status > Customer aging report
FIGURE 1.24 CUSTOMER AGING REPORT
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Detailed Due Day List
The Detailed due day list report prints a detailed list of due customers. Accounts receivable > Reports > Status > Detailed due day list
FIGURE 1.25 DETAILED DUE DAY LIST REPORT
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Customer Balance List
The Customer balance list report shows the balance for each customer in local currency based on the value according to the latest exchange adjustment. Accounts receivable > Reports > Status > Customer balance list
FIGURE 1.26 CUSTOMER BALANCE LIST REPORT
Customer Top 100

The Customer top 100 report prints a list of the top customers based on: Account Revenue Margin Quantity
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Accounts receivable > Reports > Statistics > Customer > Top 100
FIGURE 1.27 CUSTOMER TOP 100 REPORT
Bank Management Inquiries

Bank Transactions
The Bank Transactions form provides an overview of the bank transactions with information about the: Voucher Date Check number Deposit slip number Transaction history
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Bank > Inquiries > Bank transactions
FIGURE 1.28 BANK TRANSACTIONS FORM
Select from the buttons on the right of the window to view additional inquiries. The options are: Inquiry Voucher Description Select from the buttons on the right of the window to view additional inquiries. The options are: Displays a list of existing checks that are associated with the selected bank account. Use this function to inquire about the status of previously created checks. Provides an overview of existing deposit slips. The deposit slip is a document used to deposit checks, credit card notes and cash into a bank account. Displays the origin of the transaction.
Checks
Deposit Slips
Original Document
NOTE: The Bank Transactions form can also be accessed from Bank > Bank accounts > View > Transactions.
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Balance Control
The Balance control form displays the: Current balance for all bank accounts. Current balance for the ledger accounts set up for control in Balance control under Setup. Amount of transactions in the current journal and other journals. Balance after posting of the current and other journals.
All amounts are in the default currency. Bank > Inquiries > Balance control
FIGURE 1.29 BALANCE CONTROL FORM
NOTE: The Balance Control inquiry window can also be accessed from Bank > Bank accounts > Balance control.
NOTE: For a quick view of balance and remittance information for an individual bank account, clickBank > Bank accounts > Balance button.
Bank Management Reports

Bank Statement
The Bank statement report displays all transactions in a bank account for a given period.
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Follow these steps to create a bank statement report. 1. Click Bank, click Reports, click Transactions, and then click Bank account statement. 2. In the Period field, enter the Opening and the Closingdates. 3. To select a particular bank account, click Select. 4. In the Criteria field, select the bank account and then click OK. 5. Click OK to display the report.
FIGURE 1.30 BANK STATEMENT REPORT
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Payment Summary by Date
The Payment summary by date report displays all transactions for a bank account for any date. Bank > Reports > Statistics > Payment summary by date
FIGURE 1.31 PAYMENT SUMMARY BY DATE REPORT
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Deposit Summary by Date
The Deposit summary by date report displays the deposits made for a selected interval of bank accounts and date. Bank > Reports > Statistics > Deposit summary by date
FIGURE 1.32 DEPOSIT SUMMARY BY DATE REPORT
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Bank Payment Summary by Vendor
The Bank Payment summary by vendor report prints the payments made to vendors. Bank > Reports > Statistics > Bank payment summary by vendor
FIGURE 1.33 BANK PAYMENT SUMMARY BY VENDOR REPORT
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Deposit Summary by Customer
The Deposit summary by customer report prints the deposits made by customers. Bank > Reports > Statistics > Deposit summary by customer
FIGURE 1.34 DEPOSIT SUMMARY BY CUSTOMER REPORT
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Payment Advice
The Payment advice report prints a remittance advice. Bank > Reports > External > Payment advice
FIGURE 1.35 PAYMENT ADVICE REPORT
NOTE: The Automatic payment advice can be printed automatically when printing a check. This is set up in Accounts payable > Setup > Payment > Methods of payment by selecting the Automatic payment advice check box.
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Deposit Slips
The Deposit slip report prints a report of the generated deposit slips. The report prints for a selected deposit slip number interval. Bank > Reports > External > Deposit slip
FIGURE 1.36 DEPOSIT SLIP REPORT
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Unreconciled Bank Transactions
The Unreconciled bank transactions report prints a list of unreconciled bank transactions. Bank > Reports > Reconciliation > Unreconciled bank transactions
FIGURE 1.37 UNRECONCILED BANK TRANSACTIONS REPORT
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AX2009 Financials - 1

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MICROSOFT DYNAMICS AX 2009

COURSE 80016: FINANCIALS I

Table of Contents Introduction to Financials I in Microsoft Dynamics AX 2009 0-1

Chapter 1: General Ledger Setup

Chapter 2: Chart of Accounts Setup

Chapter 3: Journal Setup

Chapter 4: Financial Features

Objectives ........................................................................................................... 4-1

Financials I in Microsoft Dynamics AX 2009

Chapter 5: General Ledger Daily Procedures

Chapter 6: Sales Tax Setup

Chapter 7: Bank Management Setup

Chapter 8: Accounts Payable Setup

Chapter 9: Accounts Payable Daily Procedures

Financials I in Microsoft Dynamics AX 2009

Chapter 10: Accounts Receivable Setup

Chapter 11: Accounts Receivable Daily Procedures

Chapter 12: Bank Management Daily Procedures

Appendix A: Reports and Inquiries

Financials I in Microsoft Dynamics AX 2009

INTRODUCTION TO FINANCIALS I IN MICROSOFT DYNAMICS AX 2009

Microsoft Dynamics Courseware

Financials I in Microsoft Dynamics AX 2009

Microsoft Dynamics Courseware Contents

Need a Little Help?

Quick Interaction: Lessons Learned

Financials I in Microsoft Dynamics AX 2009

Chapter 1: General Ledger Setup

CHAPTER 1: GENERAL LEDGER SETUP

Financials I in Microsoft Dynamics AX 2009

Currency and Exchange Rate Setup

FIGURE 1.1 EXCHANGE RATES FORM

Chapter 1: General Ledger Setup

Procedure: Select the Default Company Currency

Financials I in Microsoft Dynamics AX 2009

FIGURE 1.2 COMPANY INFORMATION FORM, OTHER TAB

Procedure: Select Exchange Rate Units

Chapter 1: General Ledger Setup

FIGURE 1.3 GENERAL LEDGER PARAMETERS FORM

Procedure: Create Additional Currencies and Exchange Rates

Financials I in Microsoft Dynamics AX 2009

Procedure: Set Rounding Options

Chapter 1: General Ledger Setup

Procedure: Enable a Currency for Currency Conversion

Procedure: Change the Display Currency

Financials I in Microsoft Dynamics AX 2009

Test Your Knowledge

Chapter 1: General Ledger Setup

Financials I in Microsoft Dynamics AX 2009

Lab 1.1- Enter a Currency and Print the Currencies

Need a Little Help?

Chapter 1: General Ledger Setup

Financials I in Microsoft Dynamics AX 2009

Periods and Fiscal Year Setup

Set Up Periods and Fiscal Year

Chapter 1: General Ledger Setup

Procedure: Create Periods in a New Fiscal Year

Financials I in Microsoft Dynamics AX 2009

FIGURE 1.4 CREATE NEW FISCAL YEAR FORM

Review New Periods

FIGURE 1.5 PERIODS FORM

Chapter 1: General Ledger Setup

NOTE: A stopped period can be opened. A closed period cannot be opened.