March 18-21, 2013New Orleans

#conv13

Financials frameworks in Microsoft Dynamics® AX 2012 R2Pär Åkerblom, Senior program managerVictor Stehmann, Senior program managerMicrosoft®

DDAX08

A quiz to startWhat is the second most traded commodity after oil worldwide?

Where is the world’s largest coffee roasting plant located?

What has less caffeine? Espresso or ordinary drip coffee?

Contoso Coffee

LocationProduct group

New Orleans

Indonesian Hawaiian

Seattle

New York

Agenda

Accounting distributions Financial dimensions

Direction for financials frameworks

Subledger accounting

Source document

Demo 1

Alicia orders an organic coffee certification and splits expense across 3 locations

What we have seen?• Split of accounting distributions• Setup and use of dimension templates

Why accounting distributions?• Internal representation of accountability• Keep external documentation intact• Source for budget and project funding control

Accounting distributions

Financials frameworks• Source document • Accounting• Financial dimension

Why frameworks?• Consistent user experience• Promote high level of reuse• Rule-driven business logic

Frameworks

Demo 2

Alicia orders coffee from Indonesia including a charge and discount

What we have seen?• Defaulting of dimension values• Parent / child relationship between accounting

distributions• Amount types

Source document framework• Abstraction of documents• Accounting distributions• State machine

Source document

SourceDocument Header

PurchTable

PurchLine

SourceDocument Line

Accounting Distribution

Accounting distributions

Financial dimension defaulting

Purchase requisitionPurchase orderProduct receiptVendor invoiceFree text invoiceTravel requisitionExpense reportProject revenueKanban

Source documents in Microsoft Dynamics AX 2012 R2

Additional country/industry specific documents

Project timesheetPay statementEarning statementProject intercompany costBank statement

Demo 3

Alicia corrects the purchase order and previews the consequences

What we have seen?• Preview• Accounting event status• Correction

Why subledger journal?• Accounting life cycle for documented events• Source for general ledger accounting

Subledger journal

Demo 4

Sammy receives the shipment of coffee beansPhyllis analyzes purchase accrual

What we have seen?• One event (product receipt)• Two accounting processes• Accounting framework• Ledger voucher

• Traceability experience

Modifications since first release of AX 2012• Posting type displayed in Ledger transaction list/Ledger transaction list

by date • Both vouchers displayed in Vendor transaction

Voucher transactions

Demo 5

Phyllis analyzes encumbrance and needs April to post the invoice for certification

What we have seen?• Subledger journal entries not yet transferred• Relieving of encumbrance• Batch transfer rules

Transfer and summarization• Control when and how general ledger is updated

Batch transfer rules

Demo 6

Phyllis explores accounting rules

What we have seen?• Dimension values used for summary account

Segmented reporting• Both Posting definitions and the Accounting distributions option,

generates balanced accounting entries

Accounting rules

Summary account entries

Posting definitionsPosting profiles and accounting distributions

Posting profiles and source document

Accounting distributions• Posting profiles• Manual entry

Primary account in subledger journal• Accounting distributions• Posting profiles (purchase accrual)• Posting definitions (encumbrance)

Offset or summary account in subledger journal• Posting profiles• Posting definitions

Main account derivation

Demo 7

Nadita provides a new financial dimension for ports requested by Sara

What we have seen?• Add a new dimension based on a backing entity• Use a view which automatically is integrated by the framework

Framework principles• Open for extensions• Closed for modifications

Extensions

Summary and outlook

White paperViewing voucher numbers and journal numbers when summarizing accounting entrieshttp://www.microsoft.com/en-us/download/details.aspx?id=35815

Implementing the Account and Financial Dimensions Framework for Microsoft Dynamics AX 2012 Applicationshttp://www.microsoft.com/en-us/download/details.aspx?id=20864

Accounting for Stocked Items on Product Receipts and Vendor Invoiceshttp://www.microsoft.com/en-in/download/details.aspx?id=28019

BlogGlobal Financial Management (GFM) frameworkshttp://blogs.msdn.com/b/ax_gfm_framework_team_blog/

References

Interactive discussionIDAX19 - Microsoft Dynamics AX 2012 Chart of Accounts Unleashed

Concurrent sessionCSAX43 - Microsoft Dynamics AX Localization – Deploying in BrazilCSAX45 - Microsoft Dynamics AX Localization – Deploying in APAC MarketsCSAX44 - Microsoft Dynamics AX Localization – Deploying in Russia & Eastern Europe

Related sessions

Key takeaways

Take advantage of financial dimension defaulting

Gain insight through complete traceability

Leverage accounting rules

Distribute, preview, transfer, and summarize

Track document life cycle information

OutlookConsistencyComplete the uptake of all frameworks

Empower usersModel- and data-driven extensions based on rules

ComplianceParallel accounting representations

AssuranceMaximize performance, and scalability

Accuracy and certaintySingle operational source for contract terms, fulfillments, and accounting

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Use coffee to boost your mornings

Use the financials frameworks to boost your business

© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.