Chapter 6: Financial Features

CHAPTER 6: FINANCIAL FEATURES

Objectives
The objectives are: Create, modify, and delete financial reason codes. Describe how and when to use the Fill utility.

Introduction
This content describes features that you can use across the various financial modules in Microsoft Dynamics AX. This content describes how to set up reason codes, which allow you analyze transaction history by specific reason. This content also describes how to use the Fill utility to update multiple records, similar to find and replace functionality.

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Financial Reason Codes

Financial 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 the following: General Ledger Accounts Payable Accounts Receivable Cash and Bank Management

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 requirements, Cassie establishes internal controls in Microsoft Dynamics AX 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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Create a Financial Reason Code
Use the Financial reasons form in Organization administration to create reason codes for a variety of financial modules, or you can open a reasons form from a specific module to set up reason codes for only that module. You also can specify whether reason codes are required for a module. You specify reason code requirements in the parameters form for most modules. The difference between the two methods is that the Financial reasons form in Organization administration 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 Financial reasons form opens from Accounts Payable, the Account type is set to Vendor automatically, and the reason codes created can only be used with vendor transactions.

FIGURE 6.1 FINANCIAL REASONS

Procedure: Create a Financial Reason Code

Perform the following steps to create a reason code. 1. To access the Financial reasons form, click one of the following: o Organization administration, click Setup, then click Financial reasons o Fixed assets, click Setup, then click Asset reasons o General ledger, click Setup, then click Ledger reasons o Accounts receivable, click Setup, click Customer, then click Customer reasons

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o o Accounts payable, click Setup, click Vendor, then click Vendor reasons Cash and bank management, click setup, then click Bank reasons

2. Click the New button to create a new reason. 3. Enter a unique Reason code as identification. 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 Financial reasons form from Organization administration.

Procedure: Modify a Financial Reason Code

You can modify reason codes at any time. You also can change the Default comment and Account types. 1. To access the Financial reasons form, click one of the following: o Organization administration, click Setup, then click Financial reasons o Fixed assets, click Setup, then click Asset reasons o General ledger, click Setup, then click Ledger reasons o Accounts receivable, click Setup, click Customer, then click Customer reasons o Accounts payable, click Setup, click Vendor, then click Vendor reasons o Cash and bank management, click setup, then click 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.

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Procedure: Delete a Financial Reason Code
Follow these steps to delete a reason code. 1. To access the Reasons form, click one of the following: o Organization administration, click Setup, then click Financial reasons o Fixed assets, click Setup, then click Asset reasons o General ledger, click Setup, then click Ledger reasons o Accounts receivable, click Setup, click Customer, then click Customer reasons o Accounts payable, click Setup, click Vendor, then click Vendor reasons o Cash and bank management, click setup, then click Bank reasons 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 Financial reasons form accessed from the Organization administration menu, ensure that you clear the necessary account types from other modules. 4. Click the delete button. 5. Click Yes in the Confirm deletion dialog box.

Financial Reason Codes

After you have created reason codes, select reasons for transactions or other entries in the following forms. Module General Ledger General Ledger General Ledger General Ledger Fixed Assets Transaction Type General journal Process allocation request Elimination proposal Consolidation, Online Fixed assets 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 Fixed assets > Journals > Fixed assets > Lines button > General tab

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Module Fixed Assets Accounts Receivable Accounts Receivable Bank Transaction Type Inventory to fixed assets journal Cancel payment Free text invoice Payment reversal Invoice journal Check reversals journal Deposit slip payment cancellations journal Path Fixed assets > Journals > Inventory to fixed assets > Lines button > General tab Cash and bank >Common> Deposit slips > Cancel payment button Accounts receivable >Common>Free text Invoices > All Free text invoices>Line details FastTab> Reasons tab Cash and bank management> Common>Checks > Payment reversal button Accounts payable > Journals> Invoice journal > Lines button > General tab Cash and bank management> Journals > Check reversals > Lines button > General tab Cash and bank management >Journals> Deposit slip journals> Lines button> General tab

Accounts Payable Accounts Payable Accounts Payable

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.

Reason Comments
Optional reason comments can be entered on the respective Financial 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 Financial 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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Fill Utility
The Fill utility enables authorized users and/or administrators to mass-update records This is done in a similar manner to the Find and Replace function. 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

Perform the following steps to update multiple records at the same time by using the Fill utility. This feature is available only if the Fill utility License configuration is enabled. NOTE: Make a backup before you perform this process. 1. Open the form where the field that you want to update is displayed. 2. Right-click the field that you want to update and select Record information from the menu. 3. In the Record information form, click the Fill utility button. 4. Specify the query criteria to find the records to update. 5. Click OK. 6. Verify that the list of records to be updated is correct. 7. Click OK. 8. Select the value to change the field to for the list of records. 9. 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 do this navigate to Organization administration, click Inquiries, and then click the Fill utility log.

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The following tables provide descriptions for the fields in this form. Field Name of table Modified field New value Created by Created date and time Query statement 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.

Summary
The Financial Features section described the setup of reason codes and the use of the Fill utility.

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Test Your Knowledge

Test your knowledge with the following questions. 1. What are reason codes?

2. 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 users to create a backup before they use the FillUtility. ( ) The system automatically makes a back up before it uses the Fill utility.

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Quick Interaction: Lessons Learned

Take a moment and write down three key points you have learned from this chapter 1.

2.

3.

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Solutions
1. 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. 2. 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 users to create a backup before they use the FillUtility. ( ) The system automatically makes a back up before it uses the Fill utility.

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