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Dynamics 365FO/AX Finance & Controlling

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Monthly Archives: October 2015

Freight cost allocation based on weight / volume

21 Wednesday Oct 2015

Posted by Ludwig Reinhard in Accounts Payable

≈ 6 Comments

Tags

Dynamics AX, Freight allocation, volume, weight

Recently, a colleague asked me whether it is possible allocating freight charges based on the weight or volume of the products ordered. To check this, I setup a new purchase order with different items …
EN_68_0005
… entered a freight charge of $100 …
EN_68_0010
… and tried to allocate those charges to the different purchase order lines based on the weight of the products ordered. Unfortunately, I noticed that the standard application does not offer the possibility allocating freight charges based on the weight of products.
EN_68_0015

As I could not believe myself and the standard AX behavior, I had a look at the Enum that stands behind the charge allocation field (“MarkupAllocateAfter”) and noticed that AX seems to have a feature for allocating freight charges based on weight and volume for companies operating in Russia.
EN_68_0020
Eager to identify whether this feature can also be used in other countries, I simply added the CountryRegionCode configuration and added additional countries. In addition, I checked the MarkupAllocation class for the region “#isoRU” …
EN_68_0025
… and added the countries I required. Example:
EN_68_0030

Equipped with this setup, I recorded a new purchase order for the same items as before. The quantities ordered, the product weights and the expected freight allocation are shown in the next table.
EN_68_0040
After allocating my total freight charges by using the standard charge allocation functionality …
EN_68_0045
… I noticed that this little change does the job. The next screenshot shows you exemplary the freight that has been allocated to the third line.
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I also tested the freight allocation based on product volume successfully but did not include it here for reasons of brevity and leave testing the freight allocation based on volume to you.

Hope that you found this information useful and look forward to seeing you in the next post.

Have a break, have a …

17 Saturday Oct 2015

Posted by Ludwig Reinhard in Miscellaneous

≈ Comments Off on Have a break, have a …

Tags

Dynamics AX

After going through all the previous blog posts on inventory reconciliation you might want to have a break. Interestingly, Dynamics AX offers some interesting things that you can do while having a break…

Just have a look at the AOT forms and search for “tutorial” and you might find “Memory”, “HorseRace” or “Tetris”. Please see the next screenshot.
EN_34_0010
You can either play those games yourself simply by opening the form or make them available for all you colleagues by following the next steps:

Step 1: Drag & drop the forms into the AOT menu item section
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Step 2: Drag & drop the newly created menu items into the Dynamics AX GlobalToolsMenu
EN_34_0020

Result: You can open the various Games directly from the Dynamics AX File Menu and have some fun during your break 🙂EN_34_0025 EN_34_0030

12 best practice tips to avoid problems with inventory reconciliation

10 Saturday Oct 2015

Posted by Ludwig Reinhard in General Ledger, Inventory

≈ Comments Off on 12 best practice tips to avoid problems with inventory reconciliation

Tags

best practice, Dynamics AX, Inventory reconciliation

Within this blog post I will summarize some of the most important tips and tricks that you should take into consideration when setting up Dynamics AX to avoid reconciliation problems between the finance and inventory data.


Tip 1: Inventory posting setup
Don’t setup inventory posting accounts more than once. That is, don’t use the same ledger account for more than a single line in the inventory posting form and try to avoid a setup that is valid for all combinations of items and accounts as illustrated in the following screenshot.
EN_31_0010
Please also try to avoid setting up the same ledger accounts for different inventory posting types. As an example, if you compare the inventory posting setup for sales order issue transactions in the next screenshot with the posting setup for packing slip transactions in the previous screenshot you can identify the same ledger accounts. This is something that should possibly avoided to make inventory reconciliation less complex.
EN_31_0015


Tip 2: Main account setup
Lock all ledger accounts that have been setup in the inventory posting form for manual entries as shown in the next screenshot.
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Note:
Make sure that only a limited number of people – ideally those who are not involved in the operating accounting process – can activate and deactivate the manual entry parameter.
If manual inventory value adjustments are required in General Ledger, please setup and use separate sub-ledger accounts.


Tip 3: Item setup (1)
Setup items with their own item financial dimension value as this can considerably reduce the time required for identifying and analyzing differences between General Ledger and inventory.
EN_31_0020
Please note that this setup requires a small system adjustment to that was illustrated in an earlier blog post.


Tip 4: Item setup (2)
Once an item has been setup and used, do not allow anybody to make changes to…

  • the item model group setup, and …
    EN_31_0025
  • the item group setup
    EN_31_0030


Tip 5: Data Quality
Do not make compromises on the quality of your item data that you migrate to your new ERP system, hoping that those issues get fixed by themselves over time.


Tip 6: Use templates
Use item templates or other features/processes that ensure a consistent and straightforward way of setting up new items. The underlying idea here is to make sure that items are correctly setup right from the beginning to avoid later changes.


Tip 7: Special inventory team
Specify a small team of people who are allowed to

  • setup/change items,
  • setup/change item groups,
  • setup/change item model groups,
  • setup/change the inventory posting setup.

Do not allow each user – especially operating accountants – setting up new items.


Tip 8: Database log
Setup the database log to track (at a minimum) changes of the …

  • item setup
  • item group setup
  • item model group setup
  • inventory posting setup


Tip 9: Test inventory reconciliation before Go Live
Test the inventory reconciliation before Go Live. Once you are working with your new system, there won’t be much time for testing what to do if you identify problems with reconciling inventory and ledger balances. So, test it before just to be ready.


Tip 10: Inventory & warehouse processes
Setup your inventory & warehouse processes in a way that transactions are not backdated and ensure that the time lags between registering receipts and posting receipt packing slips is small. Otherwise you run the risk that Dynamics AX shows you a negative physical and/or financial inventory value.

Please note that the setup of registration and receiving requirements in the item model group window do not ensure that you will see negative physical and/or financial inventory values. That is because items can be sold as soon as they are registered in the system.
EN_31_0035


Tip 11: Service items
Put much consideration in whether and how you want to setup service items (e.g. for subcontracting or other purposes) as those items are generally excluded from the inventory value report and might thus result in reconciliation issues.

 

Tip 12: Scheduled batch transfers from subledgers
EN_31_0040
If you setup your General Ledger parameters in a way that subledger transactions are transferred in batch mode to General Ledger, ensure that the “subledger journal entries not yet transferred” form in the General Ledger does not include pending inventory related transactions as illustrated in the next screenshot. EN_31_0045
The underlying reason is that pending transactions might result in reconciliation problems, that is, differences between the ledger and inventory balances.

 

I hope that you enjoyed the last series of inventory reconciliation blog posts and look forward to seeing you in the next posts.

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