Prevent Shipping Short-Dated Products to Your Customers with Microsoft Dynamics AX 2012 R2-

In pharmaceutical and food & beverage industries, it is critical to avoid shipping short-dated products to customers. This helps to improve customer satisfaction and avoid unnecessary credit returns and waste throughout the whole supply chain, starting from manufacturers, distributors, retail stores and all the way to end users.
Customers of food and drug industries always expect products to be shipped to them with newer Expiry date or Best Before date. Specifically some customers will even provide their suppliers a Sellable Days defined as the number of days between customer receipt and batch expiration or best before date for the shelf life products. Microsoft Dynamics AX 2012 for process manufacturing supports the definition of Customer Sellable Days and incorporates the feature with sales order reservation as well as MRP.
Defining Customer Sellable Days
Customer Sellable Days can be defined on a customer record for a specific product, a group of products or all products.


Batch Reservation on Sales Order Lines
Batches can be reserved on sales order lines manually, or automatically follow the predefined reservation rules. Depending on the Pick Criteria specified on the Item Model Group, Microsoft Dynamics AX will compare the Expiry Date or Best Before Date of the batch with the Sellable Date.  Sellable Date = Requested Receipt Date (or Confirmed Receipt Date if specified) + Customer Sellable Days. A batch with an Expiry Date or Best Before Date before the Sellable Date cannot be reserved.
The batch reservation will fail and provide an error message prompt as shown below.


Master Planning of Batches with Customer Sellable Days
Master plan can be configured to Consider Shelf Life. Then the Customer Sellable Days will be considered by MRP along with Expiry Date or Best Before Date when MRP is run.


For example, the inventory on hand in a batch is enough to cover a sales order demand. But the Expiry date is before the Customer Sellable Date of the product for the customer of the sales order.

After running MRP, AX will recommend a planned production order for the sales order and ignores the on hand batch because it expires during the customer sellable days.

How Sub Ledger Journal Entries Transfer works in Dynamics AX?

How Sub Ledger Journal Entries Transfer works in Dynamics AX?

Sub Ledger Journal Entries Transfer
Subledger journal entries transfer means that additional performance optimization and summarization rules can be defined for the transfer of subledger journal entries to General ledger. The transfer process can be defined so that it occurs synchronously or asynchronously. During the transfer process, a user has the option to summarize the subledger journal entries for similar source documents to reduce the amount of data in General ledger. User also has the option to select particular source documents like Free text invoices, Purchase Orders, Purchase requisitions, Vendor Invoices etc. to reduce the amount of data in General ledger.
The path of the form is General ledger > Setup > General ledger parameters

There are two rule type on which Batch transfer rules can be applied:
Document
Company

By selecting Company rule type then it applies to all the source documents that are linked to the particular legal entity and by selecting Document then it applies to the specific source documents.

There are three types of transfer mode:
Scheduled batch
Synchronous
Asynchronous

Scheduled batch:
It will run within the batch jobs with a scheduled interval: E.g. every 10 minutes or once a day or perhaps once a week.
Synchronous:
It will execute from within the posting process started by the user itself. For example: when an invoice is posted, the posting logic will also execute posting the subledger lines. This is from within the post task the user started.
Ascynchronous:
Posting process will only create the document and subledger lines from the client process. Then after it is finished the server thread will pick it up as soon as possible.
The asynchronous method is a thread on the server which will pick up immediately after creating the subledger entries.
Advantage: Client machine will be earlier ready and the user can continue with other tasks.

Summarized entries can only be applied for Scheduled batch and Asynchronous batch transfer mode because in synchronous transfer mode, transactions cannot be posted in summary or detail whereas in Scheduled batch and Asynchronous, transactions can be posted in summary or detail.

How to transfer Purchase orders to a new fiscal year?

How to transfer Purchase orders to a new fiscal year?

In this post, i am going to describe how to transfer Purchase orders to a new fiscal year.
I am using COM data set here.
I am transferring the Purchase order created on Fiscal year 2014 to the next fiscal year 2015

Go to Accounts Payable > Common > Purchase Orders > All Purchase Orders

Click New > Purchase Order button on action pane

Set Vendor Account = PVND000001

Click Yes on AX message box

Click OK button

Click Add line button

Set Procurement Category = APPAREL AND LUGGAGE AND PERSONAL CARE PRODUCTS

Set Quantity = 1

Set Unit = Ea

Set Unit price = 10

Click Financials > Distribute amounts button

Set Ledger Account = 999-64500-120-101 [Set ledger dimension for which Budget Register Entries are already created. I will discuss Budget Register Entries in my next posts. This is the ledger dimension of Expense Account Structure as we are doing expense transaction (Purchase Order)]

Click Purchase tab on the top
Click Confirm button under Generate section

Go to General Ledger > Periodic > Fiscal year close > Purchase order year -end process

Users can select one of the two year -end options depending on their needs:
Process and carry forward budget
Process and do not carry forward budget

Process and carry forward budget:
Process and carry forward budget means that Purchase order is transferred to the next fiscal year as well as Carry forward budget is also created against that particular Purchase order.
Process and do not carry forward budget:
Process and carry forward budget means that Purchase order is transferred to the next fiscal year but no Carry forward budget will be created. So, in order to consume the budget against that particular Purchase order therefore user will have to create the Budget register entries separately otherwise Purchase order cannot be confirmed if Budget Control configuration is turned on and activated.

I am selecting Process and carry forward budget for now.
Set Fiscal year to 2014 as i have done Purchase order transaction on the fiscal year 2014 as stated above.
Accounting date is populated as 12/31/2014 because we are doing Purchase order year -end process to close the current year end Purchase order transaction and open that particular Purchase order transaction on the next year that's why Accounting date is populated as 1/1/2015. We cannot change these parameters as all Closing and Opening parameters are totally dependent on the Fiscal year set on Calendar parameter.
Click Retrieve purchase orders button

Click OK button
Select the Purchase order that was created above.

Click Process
Click OK

Click OK
An info log message as shown in the screenshot below should be displayed

You can see in the above screenshot that Budget register entries are also created for the next fiscal year as well as current year Budget register entries are also updated.
Source document Purchase Order is also linked to both the Carry forward budget register entries as well as Original budget register entries as Purchase order consumes the budget register entries.

Next year Carry forward budget screenshot:

Current year Original budget screenshot

Carry forward budget on the accounting date of 1/1/2015 with 100 expense amount is created because i created Purchase order of 100 and then ran Purchase order year end process for that Purchase order.
Original budget was fully consumed of the current fiscal year with the -100 expense amount in order to balance the expense budget amount of Carry forward budget with the Original budget. So, the net expense amount of sum of expense amounts of Carry forward budget and the Original budget will be zero as we have fully consumed the budget.
PO year end process closed out the current fiscal year Budget register entry on the accounting date 12/31/2014 which is a closing period and opened Carry forward budget register entry on the next fiscal year's first period on the accounting date 1/1/2015

Cash discount handling for over payments [AX 2012 R3]

Hi All,

I hope all are doing well with Smile...

Today i am going to demonstrate Hoe to define Cash discount in  MS Dynamics Ax 2012 R3.

To specify how an obtainable cash discount difference is treated when an invoice is over paid, use the Cash discount administration andMaximum overpayment or underpayment fields in the Accounts receivable parameters form. An invoice is considered over paid when the payment amount is greater than the invoice amount less the cash discount.

In the following example, the customer has overpaid the invoice by 0.50.

Invoice total	Cash discount available	Amount to be paid, which includes the cash discount	Amount the customer actually pays
105.00	10.50	94.50	95.00

Cash discount administration option: Specific

The full cash discount is taken when the Specific field is selected in the Accounts for automatic transactions form. The overpayment amount is either posted to a cash discount difference ledger account or remains a balance on the customer’s account. This is determined by whether the overpayment amount is between 0.00 and the amount that is entered in the Maximum overpayment or underpayment field or if the overpayment amount is over the Maximum overpayment or underpayment amount.

Scenario 1: Overpayment amount is between 0.00 and the maximum overpayment or underpayment. An invoice is entered for 105.00 with a cash discount available if the invoice is paid within seven days.

Invoice total	Cash discount available	Amount to be paid, which includes the cash discount
105.00	10.50	94.50

The customer submits a payment for 95.00. The payment is settled against the invoice for 105.00. After the invoice and payment are settled, the following transactions will be created in Account receivable for the customer.

Transaction	Amount	Balance
Invoice	105.00	0.00
Payment	-95.00	0.00
Cash discount	-10.50	0.00

The following accounting entries are generated for the payment and settlement.

Payment

Account	Debit amount	Credit amount
Cash	95.00
Accounts receivable		95.00

Settlement

Account	Debit amount	Credit amount
The account that is specified in the Main account for customer discounts field in the Cash discounts form	10.50
Accounts receivable		10.50
The account that is specified in the Customer cash discount field in the Account for automatic transactions form		0.50
Accounts receivable	0.50

Scenario 2: The overpayment amount exceeds the maximum overpayment or underpayment amount. An invoice is entered for 105.00, with a cash discount available if the invoice is paid within seven days.

Invoice total	Cash discount available	Amount to be paid, which includes the cash discount
105.00	10.50	94.50

The customer submits a payment for 95.00. The payment is settled against the invoice for 105.00. After the invoice and payment are settled, the following transactions will be created in Account receivable for the customer.

Transaction	Amount	Balance
Invoice	105.00	0.00
Payment	-95.00	-0.50
Cash discount	-10.50	0.00

The overpayment amount of 0.50 will remain as an open balance on the payment and can be settled against another invoice.

The following accounting entries are generated for the payment and settlement.

Payment

Account	Debit amount	Credit amount
Cash	95.00
Accounts receivable		95.00

Settlement

Account	Debit amount	Credit amount
The account that is specified in the Main account for customer discounts field in the Cash discounts form	10.50
Accounts receivable		10.50

Cash discount administration option: Unspecific

In the Accounts for automatic transactions form, when Unspecific is selected in the Cash discount administration field, the cash discount amount is reduced by the overpayment amount. This is true regardless if the overpayment amount is over or under the amount entered in the Maximum overpayment or underpayment field.

Scenario 3: An invoice is entered for 105.00, with a cash discount available if paid within seven days.

Invoice total	Cash discount available	Amount to be paid, which includes the cash discount
105.00	10.50	94.50

The customer submits a payment for 95.00. The payment is settled against the invoice for 105.00. After the invoice and payment are settled, the following transactions will be created in Account receivable for the customer.

Transaction	Amount	Balance
Invoice	105.00	0.00
Payment	-95.00	-0.00
Cash discount	-10.00	0.00

The cash discount amount is reduced from 10.50 to 10.00. The payment and invoice are considered settled.

Payment

Account	Debit amount	Credit amount
Cash	95.00
Accounts receivable		95.00

Settlement

Account	Debit amount	Credit amount
The account that is specified in the Main account for customer discounts field in the Cash discounts form	10.50
Accounts receivable		10.50

                                     Thank You-Subrat Kumar

Vendor payment journals-

This article describes how to use the payment journal in the accounts payable module of Dynamics AX 2012. There are several options to do the payment flow:

• Option A – payment journal and settlement function: to create payments for one vendor
• Option B – payment journal and payment proposal: to create payments for several vendors in one journal

Option A: payment journal and settlement function

Access: AP > Journal > Payments > Payment journal

• Create a new journal : click on new.
• Select a journal name.

• Click on “Lines”
• In the field “Account’ select the vendor account.
• Click on Function> Settlement

• Select invoices to pay
• Invoices with a exclamation mark symbol are already selected for an other payment.
• Discount amount are automatically calculated.
• And close the form.

• Information about invoices are filled.
• Enter a description,
• And the offset account (bank account)
• Complete other information if needed: payment reference, …

• Depending of the method of payment, generate the payment.
• Click Function > Generate payment

• Update parameter of the payment
• Click OK

• And post the journal.

From the vendor transaction form, you can retrieve the invoices settled with the payment:

Access: AP > Common > Vendors > All vendors > Click Transactions

• Select the transaction
• Click History

Option B: payment journal and payment proposal.

This option is useful when we need to create payments for several vendors in one journal. For example, all payments at due date pay by EFT, …

Access: AP > Journal > Payments > Payment journal

• Create a new journal : click on new.
• Select a journal name.

• Click on “Lines”
• Go to Payment proposal > Create a payment proposal

• Select options of you search: proposal type, due date, currency, methods of payment, …
• Click on Payment to print a report.

Use the Period field in the Methods of payment – vendors form to indicate whether the invoices should be combined in an automatic payment proposal. Select from the following options:

• Invoice: Create one payment transfer for each invoice.
• Date: Create one payment for all invoices that have the same due date.
• Week: Create one payment for all invoices that have a due date in the same week.
• Total: Create one payment for all invoices.

• In the vendor payment proposal form, check the invoices to pay.
• Unselect invoices or customer if needed.
• If you need to update an information for several lines (method of payment for example),
• Select invoices to update.
• Click on “Multiple change”.
• Enter the new method of payment (or other).
• And click on “OK”.

• The information in the top screen are the details of the lines in the bottom of the screen (if the field Link is selected).
• Click to “Transfer” to transfer all the information in the journal lines.

• Complete information in the journal lines if needed
• Generate the payment
• Post the journal