Microsoft Dynamics AX is a great ERP solution.

ERP means Enterprise Resource Planning, which helps

companies and organizations to plan their resources. In an organization, there are different
operations such as purchase operations, sales operations, human resources operations, financial
operations. In order to maintain these operations smoothly, we need to have an ERP solution that is
called Microsoft Ax Dynamics. It was originally developed as a collaboration between IBM and Danish
Damagaard Data as IBM Axapta. Axapta was initially release in March 1998 in Danish and US markets.
Later, IBM has returned all his rights on the product to Damagaard Data, then Damagaard merged
with Navision Software A/s in 2000 to form Navision Damagaard, later named as Navision A/S.
Microsoft acquired the combined company in July 2002. In September 2011, Microsoft released
version Ax 2012.

M Ax software comprises four major components

 The Database Server, a database that stores the Microsoft Dynamics AX data
 The File Server, a folder containing the Microsoft Dynamics AX application files (in AX2012
application files are stored in the database)
 The Application Object Server(s) (AOS), a service that controls all aspects of Microsoft
Dynamics AX's operation
 The Client(s), the actual user interface into Microsoft Dynamics AX

1. what are the differences between ax 2009 an ax 2012

Have to refer pdf on desktop

2. what are the different purchase types?

A. When you create a purchase order, you must indicate which type of an order it is. There
are three types of purchase types.

Journal: it is used as a draft, which does not affect stock quantities and does not generate
item transactions.

Purchase order: It is used when the vendor confirms purchase order.

Returned Order: it is used when we returned the good to vendor.

3. What are different sales orders.

When we create a sale order, we much indicate which type of order it is. There are 5 types
of sales order.

Journal: It is used as a draft.

When you want to create a order but do not want to process
it then you can assign order type as "Journal". All the postings (Confirmation,
Picking list, packing slip, invoice) are disabled in this case and can be enabled after
changing the order type from journal to Sales order.
Subscription: It is use for recurring orders. It is used when it is require to sell
same item/service to the same customer repeatedly over a period of time. In this
case, when the sales order is invoiced, the order status again set to Open order.
In the subscription sales order, order status can never be invoiced and can only
be open or delivered.
Sales order: It is a normal order created when customer actually place the order for
goods. It can be processed from creation to invoiced. After posting the invoice for
the order (Full delivery), status of the order changes to "Invoiced". Order once
invoiced cannot be use again and we cannot make any changes in it.
4. Returned order: It is created when customer returns the goods which are sold
due to some specific reason ( Like damage goods, Late delivery etc.).
For more details, Refer: Return order in AX 2012
5. Item requirement: It will get created automatically when you make a sale of
items through project module. Picking list, Picking list registration and packing
slip will get posted through project module only.

You can set up a default purchase order type in the Procurement and sourcing parameters
(form) in the Purchase type field.

Purchase
order type Description

Journal Use as a draft. This type does not affect stock quantities and does not
generate item transactions. The purchase order journal lines are not
included in master scheduling.

Purchase Use when the vendor confirms an order.

order

Returned Use when you return goods to the vendor. The returned item number, this is
order the RMA number, that the vendor gives you must be entered on
the Other tab.

4. what are the different types of sales order

When you create a sales order in AX 2012, you must select type of order that it is.
You can select one of the type from the following:
1. Journal
2. Subscription
3. Sales order
4. Returned order
5. Item requirement

Default setting for sales order type:

You can setup a default value for the sales order type in AX so that when you
create a new sales order, system would automatically take that default value in the
new order.
Path:
Account receivable parameter -->General --> Sales --> Default values --> Order
type

Sales order types

1. Journal: It is use as "Draft". When you want to create a order but do not want
to process it then you can assign order type as "Journal". All the postings
(Confirmation, Picking list, packing slip, invoice) are disabled in this case and can
be enabled after changing the order type from journal to Sales order
/Subscription. As we cannot process the order, it doesn't impact the inventory
stock and does not generate any inventory transactions.
2. Subscription: It is use for recurring orders. It is used when it is require to sell
same item/service to the same customer repeatedly over a period of time. In this
case, when the sales order is invoiced, the order status again set to Open order.
In the subscription sales order, order status can never be invoiced and can only
be open or delivered.
Transactions are recorded in the system after every packing slip and invoice
postings.
3. Sales order: It is a normal order created when customer actually place the order
for goods. It can be processed from creation to invoiced. After posting the invoice
for the order (Full delivery), status of the order changes to "Invoiced". Order once
invoiced cannot be use again and we cannot make any changes in it.
4. Returned order: It is created when customer returns the goods which are sold
due to some specific reason ( Like damage goods, Late delivery etc.).
For more details, Refer: Return order in AX 2012
5. Item requirement: It will get created automatically when you make a sale of
items through project module. Picking list, Picking list registration and packing
slip will get posted through project module only.
Path: Project management and accounting --> Common --> Item tasks --> Item
requirements

a. Click on New to create new line in the item requirement form.

b. Select Project ID of the project for which these items are required.
c. Select item number, site, warehouse, quantity and other details.
d. Once all the details are entered, click on Inquiries -->Sales order

e. You can see sales order is created with the order type as "Item Requirement".
Note: All the items pertaining to same project will come in the single sales order.
f. Click on posting to post the Picking list, Picking list registration and Packing
slip for the sales order.

Note: In this case, we cannot perform the posting through sales order and it can
only happens through project management and accounting module.

Hope!! Everyone would get clear understanding of Sales order types in AX 2012
R3

Please post if any queries and do let me know if any suggestions for improvement.
See you soon with the new topic :-)
For Original post, Refer: Sales order types in AX 2012 R3
Sales Order Dyn365Ops AX7 Sales order types Sales types AX2012R3 dyn365 AX ax2012

5. tell me about parameter setup in each module

Use the following procedures to maintain parameters that apply to all legal entities that are
set up in Microsoft Dynamics AX.

These procedures use the System parameters form. This form can also be opened from the
initialization checklist or partition initialization checklist. Depending on your version of the
program, do one of the following:

 In Microsoft Dynamics AX 2012: Click System

administration > Setup > Checklists > Initialization checklist. Click Initialize
system > Set up system parameters.
  In Microsoft Dynamics AX 2012 R2: Click System
administration > Setup > Checklists > Partition initialization checklist.
Click Partition initialization checklist > Set up system parameters.

If you open the form from the initialization checklist or the partition initialization
checklist, some of the parameters that are listed here might not be available. You can
set up the remaining parameters at any time after you have completed the
initialization or partition initialization.
Set up general system parameters
1. Click System administration > Setup > System parameters.
2. Click General, and then select options for the general system parameters:
 System language – Select the default language to use for text
translations.
 Increment – Enter the increment to use when new line numbers are
assigned to purchase order lines. This increment is used for all purchase
order lines. Line increments are applied for purchase orders only.
 System currency – Select the currency to use. You can define a default
currency for each ledger that you set up in the Ledger form.

This currency is used only to consolidate amounts in General ledger that

have been posted in different currencies from various legal entities.
Note

Currencies will not be available until you set up General ledger parameters
for your legal entity.

 System exchange rate type – Select the exchange rate to use. Define a
default exchange rate type for each legal entity in the Ledger form.
 Chart of accounts delimiter – Select the symbol to use as the separator
between financial dimensions.
Set up parameters for alerts
1. Click System administration > Setup > System parameters.
2. Click Alerts, and then select the options for alerts:
 Batch processing window (days) – Enter a number of days. The number
of days that you enter will be added to the time limit that is set up for
alerts.
 E-mail ID – Select the ID that corresponds to the email template that you
created for alert notifications.
 Drill-down target – Enter the value that corresponds to the database
where the event occurred. The database value is required if you want a
user to be able to drill down to the event from the alert notification.
Set up the parameter for file storage
1. Click System administration > Setup > System parameters.
2. Click File store, and then select the option for file storage:
 Directory – Select a shared network location for file storage. For detailed
information about the purposes of the file storage location, see Set up general
system parameters (form).

Set up number sequences

1. Click System administration > Setup > System parameters.
2. Click Number sequences, and then select the options for number sequences:
 Reference – Select the number sequence for the purposes of generating
workflow configuration ID numbers, workflow instance ID numbers, and
alert rule ID numbers.
 Number sequence code – Select a number sequence code for the
corresponding ID number.

6. number sequence mappings in each module

Number sequences in Microsoft Dynamics AX are used to generate readable, unique

identifiers for master data records and transaction records that require them. A
master data or transaction record that requires an identifier is referred to as a
reference. Before you can create new records for a reference, you must set up a
number sequence and associate it with the reference.

You can set up all required number sequences at the same time by using the Set up
number sequences wizard, or you can create or modify individual number
sequences by using the Number sequences form.
Note

If you are setting up number sequences for a virtual company, you must use
the Number sequences form. Number sequences can be set up for virtual
companies only if you are using Microsoft Dynamics AX 2012 R3 or AX 2012 R2.
Set up all required number sequences by using the
wizard
Use the Set up number sequences wizard to automatically create number
sequences. The wizard generates number sequences for all references in all
organizations for which number sequences are not yet defined. You cannot use the
wizard to generate number sequences for a subset of the areas or references that
require number sequences. You also cannot use the wizard to modify existing
number sequences.
Note

If you are setting up number sequences for a virtual company, you must use
the Number sequences form instead of the wizard. Number sequences can be set
up for virtual companies only if you are using Microsoft Dynamics AX 2012 R3 or AX
2012 R2.

1. Click Organization administration > Common > Number

sequences > Number sequences. Then click Generate.
2. On the Welcome page, click Next >.
3. The Setup page is displayed. On this page, you can modify the identification
code, the lowest value, and the highest value. In addition, you can indicate
whether the number sequence must be continuous.
Important

Do not select the Continuous option if you must preallocate numbers for the
number sequence.

To add a scope segment to the format of a number sequence, select the format
in the list, and then click Include scope in format. To remove a scope segment
from the format of a number sequence, select the format in the list, and then
click Remove scope from format.

To exclude a number sequence from automatic generation, select the number

sequence in the list, and then click Delete.

Click Next >.

4. On the Completed page, verify the information, and then click Finish.
Set up individual number sequences
Use the Number sequences page to create or modify selected number sequences.
Warning

We recommend that you do not modify the format of a continuous number

sequence after numbers from that sequence have been used on documents or
transactions. Changing the format when transactions are in process may cause gaps
in the number sequence and corrupted number sequence data.

1. Click Organization administration > Common > Number

sequences > Number sequences. Click the Number sequence button or
double-click an existing number sequence.
2. On the Identification FastTab, enter an identification code and a name for the
number sequence.
3. On the Scope parameters FastTab, select a scope for the number sequence
and select scope values.

The scope defines which organizations use the number sequence. In addition,
number sequences that have a scope other than Shared can have segments
that correspond to their scope. For example, a number sequence with a scope
of Legal entity can have a legal entity segment.

By default, the following scopes can be used:

Important

The available scopes depend on the reference that you are setting up a number
sequence for.

 Shared – A single number sequence is used for all organizations.

The Shared scope is available only for some references. For more
information about the shared scope, see Number sequence overview.
 Company – A separate number sequence is used for each company.

Use the Company scope when the underlying table includes the
DataAreaId field. For example, use this scope for the number sequence for
the customer account number that is in the Customer table, CustTable.

If you are using Microsoft Dynamics AX 2012 R3 or AX 2012 R2,

the Company scope also includes virtual companies. If a number
sequence has already been set up for a reference in one of the companies
included in the virtual company, you must delete the existing number
sequence before you can set up a number sequence for that reference in
the virtual company.

 Legal entity – A separate number sequence is used for each legal entity.

Use the Legal entity scope when the underlying table does not include
the DataAreaId field and has a foreign key to the legal entity table,
CompanyInfo. For example, use this scope for the number sequence for
the expense report number that is in the expense report table,
TrvExpTable.

 Operating unit – A separate number sequence is used for each operating

unit.
 Company and Fiscal calendar period – A separate number sequence is
used for each company and fiscal calendar period combination.
  Legal entity and Fiscal calendar period – A separate number sequence is
used for each legal entity and fiscal calendar period combination.
 Operating unit type– A separate number sequence is used for each type
of operating unit. For example, you can set up separate number
sequences for cost centers and departments.

This control is not available in versions of Microsoft Dynamics AX 2012

prior to cumulative update 6 for AX 2012 R2.

7. Periodic process: This article describes how to setup and use periodic journal in
Dynamics AX 2012. Periodic journals are sometimes called recurring journals
because the amount, text, and other information are repeated each time that the
journal is posted. When you create the journal, you can specify the period interval
for the recurrence, such as days or months.

You need to create a new journal name to use the periodic journal functionality.

To setup a periodic journal, there are several options : create periodic journal from the
general journal form or from the periodic journal form.

To setup a periodic journal, there are several options : create periodic journal from the
general journal form or from the periodic journal form.

Option A: General journal form

Access: GL > Journals > General journals
 Create a new journal
 Go to the line form an enter all your data (date, accounts, amounts, description, …)

 Click on Period journal > Save Journal

 Select a periodic journal

 Enter a name.
 Click on “OK”

 Go to Periodic > Journals > Periodic journals to update data

3/ Use a periodic journal

Access: GL > Journals > General journal
 Create a general journal
 Go to the Lines form
 Click on Period journal > Retrieve journal
 Enter a “To date”
 If the line in the periodic journal does not have a transaction date, you can select one in
the Empty date field. If you do not select a date in this field, the date in the To date field
becomes the transaction date.
 Select a periodic journal
  Select an option: Copy or Move. (choose Move only if you do not need to use again the
periodic journal)

8. Number sequence mapping

Number sequences in Microsoft Dynamics AX are used to generate readable, unique

identifiers for master data records and transaction records that require identifiers. A
master data record or transaction record that requires an identifier is referred to as a
reference.

Before you can create new records for a reference in Microsoft Dynamics AX, you
must set up a number sequence and associate it with the reference. We recommend
that you use the forms in Organization administration to set up number sequences.
If module-specific settings are required, you can use the parameters form in a
module to specify number sequences for the references in that module. For example,
in Accounts receivable and Accounts payable, you can set up number sequence
groups to allocate specific number sequences to specific customers or vendors.

When you set up a number sequence, you must specify a scope, which defines which
organization uses the number sequence. The scope can be Shared, Company, Legal
entity, or Operating unit. If you are using Microsoft Dynamics AX 2012 R3 or
cumulative update 6 or later for AX 2012 R2, the scope Operating unit type is also
available. Legal entity and company scopes can be combined with Fiscal calendar
period to create even more specific number sequences.

The available scopes depend on the reference that you are setting up a number sequence
for. The Shared scope is available only for some references. To determine whether a
reference can use a shared scope, select the area and reference in the Segment
configuration form. (Click Organization administration > Common > Number
sequences > Segment configuration.) If a scope segment is listed under Segments, the
selected reference cannot use the shared scope.

Number sequences can be continuous or non-continuous. A continuous number

sequence does not skip any numbers, but numbers may not be used sequentially.
Numbers from a non-continuous number sequence are used sequentially, but the
number sequence may skip numbers. For example, if a user cancels a transaction, a
number is generated, but not used. In a continuous number sequence, that number
is recycled later. In a non-continuous number sequence, the number is not used.

Continuous number sequences are typically required for external documents, such as
purchase orders, sales orders, and invoices. However, continuous number sequences
can adversely affect system response times because the system must request a
number from the database every time that a new document or record is created.
 9. How to map maintain charge codes in po

FINANCE

1. Explain about financial dimensions

The financial dimension framework in Microsoft Dynamics AX 2012 supports a flexible

chart of accounts that meet the growing needs of organizations. It provided support to
numerous financial dimensions. This included all reports, forms and data entry in
which financial dimensions were supported.

Use the Financial dimensions page to create financial dimensions that you can use as
account segments for charts of accounts. There are two types of financial dimensions:
custom dimensions and entity-backed dimensions. Custom dimensions are shared across
legal entities, and the values are entered and maintained by users. For entity-backed
dimensions, the values are defined somewhere else in the system, such as in Customers or
Stores entities. Some entity-backed dimensions are shared across legal entities, whereas
other entity-backed dimensions are company-specific.

To help maintain referential integrity of the data, financial dimensions can rarely be
deleted. If you try to delete a financial dimension, the following criteria are evaluated:

 Has the financial dimension been used on any posted or unposted transactions,
or in any type of dimension value combination?
 Is the financial dimension used in any active account structure, advanced rule
structure, or financial dimension set?
 Is the financial dimension part of a default financial dimension integration
format?
 Has the financial dimension been set up as a default dimension?

If any of the criteria are met, you can't delete the financial dimension.

2. Tell me about account structure and purpose: he configure account structures

functionality is used to define valid combinations of main account and financial
dimensions as well as the seizure order from the main account and dimensions.
 Presentation:

When you post a transaction in Dynamics AX, the accounting is done in the main
account, but it can also be done in several financial dimension. The account
structure allows to define valid combinations of main account and financial
dimension. If you don’t need the same information for a balance transaction that for a
purchase transaction, you can create several structure.

For example, I need to have a department dimension for all the main accounts. For
the profit and loss account, I need to have in addition the cost center dimension. And
the last requirement is to be able to follow the budget for all the purchase
transaction.

Setup account structures

Access: GL > Setup > Chart of account > Configure account structure
 Click on “Account structure New”
 Enter the account structure code
 Enter a description
 Select “Add main account” if needed.

3. Advanced rule structure

All of us must be aware that creating and managing many financial dimensions had restrictions
and was not as convenient as it is in AX 2012.AX 2012 now allows to create unlimited number of
financial dimensions in the GL > Setup > Financial dimensions form. But in the account
structures, there is a limitation which allows only “10 dimension segments” to be configured with
the main account node.

In most scenarios, the requirement of having financial dimensions will not exceed 10, but there
can be cases where business may need to have more than 10 financial dimensions to be used.
In such scenarios,we can make use of the “Advanced rules” in the account structures.

Now let us take a look at the steps to configure the “Advanced rules” for an account structure and
then look at how it can enable the 11th dimension.

 For this post, I have configured the initial 10 dimension segments already in CONTOSO as shown
in screen above.
 With only this 10 dimension segments, system will allow to record only 10 dimensions in the
transactions as can be seen in screen below.
 Now let us configure advanced rules for this account structure. Prior to setting up advanced rules,
we need to create the advanced rule structures under GL > Setup > Chart of accounts > Advanced
rule structures.
 Go to GL > Setup > Chart of accounts > Advanced rule structures and click New and key in a
name and description.
Let us say we will add the Worker as the 11th dimension in this case. Click Add segment and
Select worker.

Advanced rule structure-new-add segment-worker

 Note that you can also configure the advanced rules have several combinations just like the
segments in the main account structure. But in this case I will not configure it.
 In this case we will just activate the advanced rule structure. Click Activate button.

 Now, let us go back to the Configure account structure form and set up advanced rules for one the
account structures. Go to GL > Setup > COA > Configure account structres.
 Select the Account structure and click Advanced rule button.
 Click New and key in Rule ID and name and then click OK button.

4. What are the sequence steps/ minimum requirements steps to create Sales Tax codes (Indian
localization, standard process)

ales tax codes are created for every indirect tax or duty that the legal entity is
obligated to calculate, collect, and pay to sales tax authorities.

This task uses the USMF demo company.

1. Go to Tax > Indirect taxes > Sales tax > Sales tax codes.
2. Click New.
3. In the Sales tax code field, type a value.
4. In the Name field, type a value.
5. Select a Settlement period to specify which Sales tax authority and in which
intervals this sales tax needs to be reported and paid.
6. In the list, click the link in the selected row.
7. Select a Ledger posting group to specify the main accounts to post sales tax to
the general ledger.
8. In the list, find and select the desired record.
9. In the list, click the link in the selected row.
10. Expand the Calculation FastTab.
 The Calculation FastTab has multiple fields that control how sales tax
amounts will be calculated.
11. On the Action Pane, click Sales tax code.
12. Click Values.
13. In the list, mark the selected row.
 14. Enter the value for this tax code.
 On the Calculation FastTab, in the Origin field, if Amount per unit is
selected, the value will be multiplied by the quantity on the transaction to
calculate the sales tax amount. If the tax code is not a unit based tax, the
value is a percentage that is applied on the Origin for this tax code to
calculate the sales tax amount.
15. Click Save.
16. Close the page.
17. Click Save.

5. What are the sequence steps/ minimum requirements steps to create Withholding Tax codes

In many countries/regions, a buyer is legally responsible for paying withholding tax.

Withholding tax is tax on non-inventory deliveries, or services, that are delivered by a
supplier who is not an employee of the company. The supplier submits an invoice for
services to the buying company, and then receives payment for this invoice.

The buyer is legally responsible for withholding a certain percentage of the amount
of the invoice at the time of payment. The net amount, which is the amount of the
invoice minus the withholding tax, is paid to the supplier. The tax that is withheld is
posted to a ledger account for withholding tax. This tax is then periodically paid to
the tax authorities.

Withholding tax is a tax on vendors that does not create sales tax transactions. Withholding
tax that is calculated on vendor payments is a liability. Therefore, only balance sheet
accounts or liability accounts are valid accounts for posting withholding tax.

Withholding tax is reported in fixed reports.

1. Click System administration > Setup > Licensing > License configuration.
2. Expand the General ledger node and select the Withholding tax check box.
3. Click General ledger > Setup > Withholding tax > Withholding tax codes.
4. Create withholding tax codes with values and limits.
5. Click General ledger > Setup > Withholding tax > Withholding tax groups.
6. Create withholding tax groups and add the relevant withholding tax codes on
the Setup tab.

6. Step by step process to create Balance Sheet

Use the Balance sheet report to generate and print a balance sheet report for a
specified period. You can specify the layout of the balance sheet report in
the Balance sheet definition form. For more information, see (CZE) Balance sheet
definition (form).

1. Click General ledger > Reports > Transactions > Balance sheet.
2. In the Period start and End of period fields, enter the starting date and ending
date of the period that the report is generated for.
3. In the Declaring amounts field, select how the amounts are rounded and
displayed in the report, from the following options:
 1 – The declared amounts are rounded to the nearest whole number
based on the rounding method that is selected in the Rounding
form field in the Balance sheet definition form. For example, if you
select Normal in the Rounding form field, CZK 1222.34 is rounded down
to CZK 1222, and CZK 122.65 is rounded up to CZK 1223. If you
select Downward in the Rounding form field, CZK 1222.34 is rounded
down to CZK 1222. If you select Rounding-up in the Rounding
form field, CZK 1222.34 is rounded up to CZK 1223.
 1000 – The declared amounts are rounded to the nearest thousand based
on the rounding method that is selected in the Rounding form field in
the Balance sheet definition form. For example, CZK 5471 rounded down
to the nearest thousand is CZK 5000, and CZK 5471 rounded up to the
nearest thousand is CZK 6000.
4. Select the Include opening balance check box to include opening balances in
the report.
5. Click OK to generate the report.
See also
(CZE) Balance sheet report (LedgerBalanceSheet)

7. What is the purpose of Ledger form?

Use General ledger to define and manage the legal entity’s financial records. The
general ledger is a register of debit and credit entries. These entries are classified
using the accounts that are listed in a chart of accounts.

You can allocate, or distribute, monetary amounts to one or more accounts or

account and dimension combinations based on allocation rules. There are two types
of allocations: fixed and variable. You can also settle transactions between ledger
accounts and revalue currency amounts. At the end of a fiscal year, you must
generate closing transactions and prepare your accounts for the next fiscal year.

You can use the consolidation functionality to combine the financial results for
several subsidiary legal entities into results for a single, consolidated organization.
The subsidiaries can be in the same Microsoft Dynamics AX database or in separate
databases.

You can use the tools for forecasting cash flow and currency requirements to
estimate your legal entity’s future cash needs. You can then calculate, view, and print
forecasts of the cash flow. You can also calculate and display currency requirements.

10. what is the method of payments

Retailers can accept various types of payments in exchange for the products and
services that they sell. Although cash is the most common form of payment, retailers
can also receive payment in the form of checks, cards, vouchers, and so on. Each
payment type that the retailer accepts must be configured in Retail when the system
is set up.

The following list describes each payment type that can be set up in Retail:

 Cash – Money in the physical form of currency, such as banknotes and coins.
This currency can be either the company currency or the store's local currency.
 Check – A negotiable instrument that instructs payment of a specific amount of
a specific currency, and that is drawn on a specific bank. A check is typically
valid indefinitely or for six months after the date of issue, unless another period
of validity is specified. This period varies, depending on the bank on which the
check is drawn. There are various kinds of checks, such as order checks, counter
checks, bearer checks, and account payee checks.

You can set up checks as a payment method for each store. The checks can be
accepted in the currency that is defined either at the company level or at the
store level. You must set up checks as a payment method before you can
accept a check as payment in a store.

 Currency – The primary form of payment other than the company's default
currency. Coins and paper money are both forms of currency.

The currency payment method represents all currency that is used in Retail.
Before you can use this payment method, you must set up currencies and
specify retail exchange information for the currencies.
  Card – All the kinds of cards that are used in Retail, such as debit cards and
credit cards. We recommend that, at the organization level, you set up one card
payment method that represents every kind of card. Then, at the store level, set
up a payment method for each card or set of cards that is processed by using
the same settings.

You must set up the manufacturer cards that are available in the market, such
as debit cards and credit cards, before you can accept the cards as payment in a
store.

 Credit memo – Credit memos that are issued or redeemed at the point of sale.
The credit memo can be a credit or a return credit memo that is issued against
a return sale. If credit memos are only partially redeemed, the program issues a
new credit memo for the new balance. The new credit memo has a new
number. A credit memo can be used only one time, and the system keeps a
record of all the numbers that are used. The record can be viewed in the Credit
memo table form. Click Retail > Inquiries > Credit memos. A customer
cannot redeem more than the value of the credit memo.
 Gift Card – Gift cards that are issued and redeemed at the point of sale.
Overpayment is not allowed on gift cards. For more information about how to
set up gift cards, see Set up gift cards.
 Customer account – Payments that can be charged to a customer account at
the register at the time of the sale. You can also use this payment method to
collect sales information or customer-specific discounts when the customer
makes a payment by using another payment method. In this case, you must set
up customer-specific information.

9. What is terms of payment

The problem is in AX2012 CU3 when the Terms of payment has setup for 30 days of the next month.
If we create the Invoice journal in a month, which has 31 days (e.g. August), the Due date is
calculated OK (30th of September). If we create the Invoice journal in a month which has 30 days
(e.g. September) the Due date is calculated incorrect + 2 months (30th of November), but should be
October:

10. Tell me about sales invoice posting mappings

11. Tell me about purchase invoice posting mappings

12. What is 3 way matching and 2 way matching? And Matching Policy?
Accounts payable invoice matching is the process of matching vendor invoice,
purchase order, and product receipt information.

When matching documents, differences among these documents are called

matching discrepancies. Matching discrepancies are compared with the tolerances
that are specified. If a matching discrepancy exceeds the tolerance percentage or
amount, match variance icons are displayed on the Vendor invoice page and on the
Invoice history and matching details page.

For example, you enter a purchase order with one line item for 1,000 batteries at a
price of 1.00 each. The purchase order is approved and submitted to the vendor. The
vendor ships 1,000 batteries, and you enter a product receipt for 1,000 batteries at a
price of 1.00 each. The inventory cost for the batteries is updated with this price.

An invoice arrives for 1,000 batteries at a price of 1.10 each. Your legal entity policy
allows a 5 percent net unit price tolerance for this category of item. A price of 1.05
would be acceptable, but 1.10 is not. When you enter the invoice information, a price
matching discrepancy is identified and you can save the invoice until the discrepancy
is resolved.

You can use the following types of Accounts payable invoice matching:

 Invoice totals matching – Match the total amounts on the invoice to the total
amounts on the purchase order. This type of invoice matching includes the
least amount of detail, so you can use this option to set up controls that
minimize the staff time that is required to review invoice matching
information.
 Two-way matching – Match the price information on the invoice to the price
information on the purchase order.
 Three-way matching – Match the price information on the invoice to the price
information on the purchase order. Also match the quantity information on
the invoice to the quantity information on the product receipts that are
selected for the invoice.
 Charges matching – Match the charges information (amounts) on the invoice
to the charges information (amounts) on the purchase order.
 Net unit price matching – Match price information for two-way matching or
three-way matching by comparing the net unit price for each line on the
invoice with the corresponding net unit price on the purchase order. The net
unit price is determined by the following formula: Net amount of the line /
Quantity of the line
 Price totals matching – Match price information for two-way matching or
three-way matching by comparing the net amount (price total) for each line
on the invoice with the corresponding net amount on the purchase order. The
net amount is determined by the following formula: (Unit price * Line quantity)
 + Line charges - Line discounts. When matching price totals by percentage, the
system compares values using the transaction currency. When matching price
totals by amount, the system compares the values using the accounting
currency.

13. What are different types of Vendor Invoices?

Use the Vendor invoices and View vendor invoice pages to view information about vendor
invoices for a specific vendor or purchase order, or for all vendors. You can view information
such as the invoice currency and line amounts. You can also export invoice information to
Microsoft Excel.

View vendor invoices for a vendor or purchase order

1. Click Procurement on the top link bar, and then click Vendors or Purchase
orders on the Quick Launch.
2. Select one of the following options:
 On the All vendors page, select a vendor. On the Action Pane, on
the Vendor tab, click Invoices.
 On the All purchase orders page, select the purchase order to view
invoices for. On the Action Pane, on the Invoice tab, click Invoice.

You can use the Vendor invoices page to view a list of invoices for the selected
vendor or purchase order.

3. To view the details of an invoice, select an invoice. On the Action Pane, on

the Invoice tab, click View invoice. You can use the View vendor invoice page
to view detailed information about the invoice. This includes the purchase
order, lines, and total amounts.

14. Tell me about Purchase Agreements?

A purchase agreement is a contract that commits an organization to buy a specified quantity

or amount by using multiple purchase orders over time. In exchange for this commitment,
the buyer receives special prices and discounts. The purchase agreement can apply to a
specific quantity of a product, a specific currency amount of a product, or a specific currency
amount of the products in a procurement category. The prices and discounts of the purchase
agreement override the prices and discounts that are specified in any trade agreements that
exist.
In the Purchase agreements form, you can create, apply, and follow up on purchase
agreements that exist between your organization and your vendors. For example,
after you create a purchase agreement, you can order directly from it.

Every purchase agreement has a validity period that is defined by the person who
creates the purchase agreement. The delivery date of a purchase must be in the
effective dates of the validity period.

By default, a purchase agreement is on hold. You must change the status of the
purchase agreement to Effective before you can create a purchase order for the
purchase agreement.
Commitment types
Each line in a purchase agreement is a commitment to buy something. You can use
lines from multiple purchase orders to fulfill the commitment. There are four types of
commitments:

 Product quantity commitment – You purchase a specific quantity of a

product.
 Product value commitment – You purchase a specific currency amount of a
product.
 Product category value commitment – You purchase a specific currency
amount in a procurement category. The amount can be for a catalog item or a
non-catalog item.
 Value commitment – You purchase a specific currency amount of any product
or in any procurement category.

15. Tell me about Sales Agreements?

A sales agreement is a contract that commits the customer to buy a product in a

certain quantity or amount over time in exchange for special prices and discounts.
The prices and discounts of the sales agreement overrule any prices and discounts
that are stated in any trade agreements that might exist.

In the Sales agreements form you can create, apply, and follow up on sales
agreements that exist between your organization and the customer. For example,
after you create a sales agreement, you can order directly from it.

A sales agreement is valid for a period that is defined by the person who creates it.
The Requested ship date of a sale that is specified in the Sales order form should
be in the validity period. By default, a sales agreement is on hold. You can order from
a sales agreement only when it is set to Effective.

Each line in a sales agreement expresses a commitment to sell something. There are
two types of commitments:

 Value agreement – You sell a product or sales category for a specific amount.
 Quantity agreement – You sell a product in a specific quantity.

16. Tell me about aging period definitions

You can use aging period definitions to analyze the maturity of customer accounts
and vendor accounts, based on a date that you enter. Each aging period that you set
up for the aging period definition corresponds to a column on the list page or in the
form or report when the analysis is performed.

In Accounts receivable, aging period definitions are also used to define customer
aging snapshots. For more information, see Set up collections.

1. Click Accounts receivable > Setup > Collections > Aging period definitions.

–or–

Click Accounts payable > Setup > Statistics > Aging period definitions.

2. Enter a name for the aging period definition.

3. On the Periods FastTab, create aging periods. For more information, see Aging
period definitions (form).

17. Tell me about Accrual Schemes?

Accrual schemes are used to set up the deferred revenue and costs, and the same
accrual scheme can be used for both revenue and costs. Ledger accruals redistribute
the costs or revenue of a journal line so that the costs and revenues are recognized
in the appropriate periods. On the Accrual scheme page, you specify the debit and
the credit accounts that will be used when the accrual scheme is applied.

 Debit – The main account that you define will replace the debit main account
on the journal voucher line. This account will also be used for the reversal of the
deferral, based on the ledger accrual transactions.
  Credit – the main account that you define will replace the credit main account
on the journal voucher line. This account will also be used for the reversal of the
deferral, based on the ledger accrual transactions.

After you determine which accounts to use, you can specify how the voucher number
is created when accrual transactions are created. You can also specify how often the
transactions occur, the number of times that the transactions are created, and when
the transactions are posted. After the accrual scheme has been created, you can use
it in some of the journals by using the Ledger accruals function.

Ledger accruals
When you enter a journal, you can click Ledger accruals on the Functions menu.
Then, when you select the accrual scheme, you will see the base amount from the
journal that will be spread over the period, as determined by the accrual scheme. For
example, if you pay an employee's insurance for the whole year in January, and the
amount is 12,000, you must recognize that expense each month. You can select the
start date. You can also specify whether the amount that is accrued is based on the
account or the offset account. After you make your selections, click Transactions to
view all the transactions that have been created based on the accrual scheme. For
example, if you spread the 12,000 in insurance expenses over the year, you will see
1,000 for each month. After you post the journal, you can view the transactions by
using the Voucher transactions inquiry page. If an accrual scheme can't be applied
(for example, when a sales order invoice or purchase order invoice is involved), you
can credit the prepaid amount and debit the expense amount. You can then
select Offset when you apply the accrual scheme.

18. Tell me about ledger allocation rules

This article provides information about ledger allocation rules. It describes the various
components of these allocation rules and the allocation methods that can be used for them.

Ledger allocation rules are used to automatically calculate and generate allocation
journals and account entries for the allocation of ledger balances or fixed amounts.
Allocation methods can be variable or fixed. The following allocation methods can be
used for ledger allocation rules:

 Basis – This variable method is used when the allocation depends on the actual ledger
balance, based on filter criteria. For example, advertising expenses can be allocated
based on each department's sales in proportion to the total departmental sales.
  Fixed percentage and Fixed weight – For these methods, the allocation percentage
or weight is defined directly for the rule. For example, advertising expenses can be
allocated so that Department A receives 70 percent of the advertising expense and
Department B receives 30 percent.
 Equally – This method distributes the amount equally to each defined destination. For
example, if destinations are defined for Department A and Department B, advertising
expenses can be allocated so that both Department A and Department B receive 50
percent of the advertising expense.

If Basis is used as the allocation method for an allocation rule, you must also define
separate ledger allocation basis rules. The "Process allocation request" process lets
users process the ledger allocation rule and preview the resulting allocation journal
entries before they either post or delete the calculated allocations.
Components of ledger allocation rules
Each allocation rule has four components: general, source, destination, and offset. An
additional component, ledger allocation bases rules, is required if Basis is used as the
allocation method. Each component provides a critical piece of the information that
is required in order to process allocations.

 General – This component is where the user specifies options such as the allocation
method, intercompany rule settings, and whether the rule is active.
 Source – This component is where the user specifies the source data for the allocation.
Allocation can be based on ledger balances (Data source = Ledger) or fixed amounts
(Data source = Fixed value). When Data source is set to Ledger, source filter criteria
must be defined for the ledger allocation rule (for example, for the advertising
expenses).
 Destination – This component defines how the result of the allocation calculation
should be distributed and accounted for. For example, there can be one destination
line for each department.
 Offset – This component defines how main accounts and dimensions should be
determined for the offset entries that balance the destination entries. User-defined
options are typically used instead of accounts and dimensions that are based on the
source. When Data source is set to Fixed value, Source can't be used as an option.
 Ledger allocation basis rules – These rules use their own source filter criteria to
determine which ledger balances should be used for allocation (for example, the
revenue per department). Each allocation basis rule can be used with multiple
allocation rules.

19. Tell me about year end process

At the end of a fiscal year, you must prepare your accounts for the next fiscal year
and close the current fiscal year. Requirements for this process differ, based on the
laws and accounting practices of the country/region where your organization is
located.

Use the following information to prepare for a new fiscal year and close the current
fiscal year.

1. Verify the closing options that you have selected in the General ledger
parameters form.
2. If you are using Inventory management, complete the inventory closing
process. For more information, see Inventory close.
3. Complete month-end and other period closings in all modules other than
General ledger. These include foreign currency revaluations on unrealized
transactions. For more information, see Close periods in the general ledger.
4. Complete month-end and other period closings in General ledger and print
financial reports for the month and quarter. For more information, see Close the
general ledger at month end.
5. If your legal entity is a consolidation legal entity, complete steps 1 through 4 for
each subsidiary, and set up the subsidiary accounts to consolidate data. If the
data for the subsidiary legal entities is in a separate database, export the
subsidiary data to use in a trial consolidation.

To close the fiscal year for a subsidiary legal entity, see Prepare a legal entity for
use in the consolidation process and Perform an online consolidation.

6. In all modules other than General ledger, complete year-end closing activities
that might create ledger postings. For example, process year-end depreciations
in Fixed assets.
7. Create the new fiscal year. For more information, see Key tasks: Fiscal calendars,
fiscal years, and periods.
8. In the Ledger calendar form, set the appropriate period status to On hold for
the current fiscal year. For more information, see Ledger calendar (form).
9. Back up your legal entity’s data.
10. Make adjusting entries. Use the Closing sheet form to create and post all
necessary adjustments. (Click General ledger > Periodic > Fiscal year
close > Closing sheet.) These include adjustments to taxes and write-offs.
Note

You can also post adjustments in the General journal form.

11. Print final financial statements. For more information, see Generate, print, and
export a traditional financial statement.
12. Print 1099 statements for vendors who require the statements. For more
information, see (USA) About United States tax 1099.
 13. Transfer opening balances for ledger accounts to a new fiscal year. For more
information, see Transfer opening balances to a new fiscal year.
14. You can reset number sequences. (Click Organization
administration > Common > Number sequences > Number sequences.)
15. Print the final reports for the fiscal year. These include financial statements such
as the operating statement and the balance sheet. Publish the statements as
required by law. For more information, see About traditional financial
statements.

20. What is the process of accounts for automatic transactions

Systems accounts are used for automatic transactions in Dynamics Ax. In the systems account
form we add various automatic accounts on the basis of posting types. The following transaction
types can be posted in case setup is missing.

Path: Dynamics Ax > General Ledger > Setup > Posting > System accounts

21. What is the purpose of free text invoice

In addition, a free text invoice line can be used to sell a quantity of any kind of goods,
services, or rights – providing unit price and quantity information to the customer. It also
helps basic amount calculation, and it helps to better identify and explain charges to
customers.

A free text invoice is an invoice that is not attached to a sales order. A free
text invoice contains a header and one or more lines for items or services
that are not tracked in inventory. Use a free text invoice for sales that do
not require a sales order, packing slip, and customer invoice. For example,
you can use a free text invoice for a consulting fee or services fee, or for a
miscellaneous fee for an event reimbursement.

22. Tell me about budgeting

Use Budgeting to set up, create, and view budgets. Budgeting can include budget
control, which you can use to monitor the budget funds that are available for
planned and actual purchases and expenditures. You can create budget register
entries for the original budget, budget transfers, and budget revisions. You can also
create budget register entries for encumbrances and pre-encumbrances for
purchases and planned expenditures. Budget register entries can be created
automatically when budgets are transferred to the general ledger from other
modules, such as Project management and accounting or Fixed assets.

You can determine which financial dimensions from the chart of accounts are
available for basic budgeting and budget control. When you configure budget
control, you define budget intervals, budget cycle time spans, budget thresholds,
budget managers, budget groups, and the calculation that is used to check for
available budget funds. The available budget funds can be verified when source
documents and accounting journals are entered. You can view the status and history
of budget register entries, budget control statistics, actual versus budgeted amounts,
budget details, and budget funds available.

23. Tell me about budget control process

Budget control is a method of enforcing that sufficient budget funds are available for
planned or actual purchases. The setup of the budget control content a temporary
version and an active version. You need to set up basic budgeting before configuring
budget control.

Check setp up for bud cont process

24. What are the sequence steps/minimum requirements to create a fixed asset

You can set up number sequences for fixed assets based on a default number
sequence, or based on fixed asset groups. You also can set up number sequences to
use for fixed assets with bar codes and for journals that you use to post fixed asset
transactions.
Number sequences for fixed asset numbering
There are two methods to assign number sequences to fixed assets.
Method 1: Automatic numbering of all fixed assets
from one default number sequence
1. Before you create any fixed asset transactions, create at least one number
sequence for fixed asset numbering. (Click Organization
administration > Common > Number sequences > Number sequences.
Click Number sequence and then enter information for the number sequence.)
2. Click Fixed assets > Setup > Fixed assets parameters. Click Number
sequences, and then select a number sequence code for the Fixed asset
number reference.
 When a fixed asset is created, a number from this number sequence is
automatically entered in the Fixed asset number field.

Method 2: Automatic numbering based on fixed

asset group
1. Create a number sequence for fixed asset groups. (Click Organization
administration > Common > Number sequences > Number sequences.
Click Number sequence and then enter information for the number sequence.)
2. Click Fixed assets > Setup > Fixed asset groups.
3. Select a fixed asset group. On the General tab, select the Autonumber fixed
assets check box, and select the appropriate number sequence in the Number
sequence code field. This number sequence is used for all fixed assets that are
assigned to the fixed asset group.

If there is a default number sequence for all fixed assets (see the first method),
the default sequence is used for the automatic numbering of fixed assets that
are assigned to fixed asset groups without group-specific number sequences.

Number sequences for journals

You must create number sequences for the journals that you will use to post fixed
asset transactions and also enter a number sequence in the journal before you create
fixed asset transactions. The journals that are usually used for fixed asset transactions
are Fixed assets, Inventory to fixed assets, General journal, and Fixed asset
budget. Depreciation book journals use the same number sequence that is defined
for the Journal batch number reference in the General ledger parametersform.

25. Tell me different types of fixed asset depreciation methodologies

This article provides an overview of the depreciation conventions and depreciation

methods that are supported by Microsoft Dynamics 365 for Finance and Operations.

You can select various depreciation methods and conventions. The purpose of the
methods is to allocate the depreciable value of the fixed asset into fiscal periods. The
depreciable value of the fixed asset is the acquisition price, reduced by a scrap value,
if any.

If you are using depreciation conventions and you modify the last depreciation run
date for an asset, which then causes some depreciations to be skipped, the
depreciation for the last year might be more than or less than is expected. The
depreciation is adjusted by the number of depreciation periods affected by the
modification of the last depreciation run date.

For example, if you are using the Half year depreciation convention over three years,
depreciation ordinarily occurs over 3 1/2 years. If you change the last depreciation
run date during the 3 1/2 years, the last year of depreciation moves out the number
of periods affected. If you move the date by three months, the last year will have nine
months’ worth of depreciation, when ordinarily there would be six months’ worth of
depreciation.

You can select from the following depreciation conventions.

 Half year
 Full month
 Mid quarter
 Mid month (1st of month)
 Mid month (15th of month)
 Half year (start of year)
 Half year (next year)

You can select from the following depreciation methods.

 Straight line service life

 Reducing balance
 Manual
 Factor
 Consumption
 Straight line life remaining
 200% reducing balance
 175% reducing balance
 150% reducing balance
 125% reducing balance

26. What is the value model and what is the purpose

Value models track the financial value of a fixed asset over time for various purposes, such as
accounting depreciation, tax depreciation, revaluation, and disposal. Each value model
represents an independent financial life cycle, and each fixed asset can have several value
models assigned to it.

Before you set up value models, you must set up depreciation profiles to assign to
the value model. You must also set up a fiscal calendar to assign to the value model.
1. Click Fixed assets > Setup > Value models.
2. Enter a unique identifier in the Value model field, and enter a short description
of the value model in the Description field.
3. If the value model is used for depreciation of the fixed asset, enter values in
the Depreciationfield group.
4. Select the posting layer. The default value is Current, but you can also
select Operations or Tax.
5. Select additional options, as applicable. For more information, see Posting layer.
6. You can attach other existing value models to use at the same time as the new
value model. On the Derived value models FastTab, create a line for each
value model, select the value model, and then specify the transaction type.
7. You can attach existing depreciation books that will be used at the same time
as the new value model. On the Derived depreciation books FastTab, create a
line for each depreciation book, select the depreciation book, and then specify
the transaction type.
8. To attach the new value model to one or more fixed asset groups, click Fixed
asset groups. For more information, see Fixed asset group/value model (form).

27. Tell me different ways to acquire a fixed asset

28. What are cheque types available in ax
29. Tell me about check reversal process and deposit slip cancelation
30. How can you import chart of accounts