Visit our Focus Rooms Evaluation of Implementation Proposals by Dynamics AX R&D Solution Architecture & Industry Experts Gain further insights on Dynamics AX Industry Solution Offerings Resolution Guidance on Solution Roadblocks Networking Focus Topic Highlight Business Intelligence Tuesday 2.15pm – 5.45pm Risso 6C Risso 8A Risso 7B Risso 7A Risso 6C Risso 6A/B

NICE,FRANCE LEARN | INSPIRE | INNOVATE TECHNICAL CONFERENCE 2011

DEEP DIVE INTO MICROSOFT DYNAMICS AX 2012 FINANCIAL FOUNDATIONS MANOJ SWAMINATHANKRISTI WEEKLEY SESSION CODE : BRK237 MICROSOFT DYNAMICS R&D

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Today we will show you… Financial dimensions Account structures Accounting distributions Subledger journals

Components in action today

Pains and challenges Sara, CFO Wants more dynamic measures to provide better financial insight and control to enable her to make more confident decisions Needs an efficient way to define and enforce corporate policies Phyllis, Accounting Manager Needs to easily provide the financial information Sara and Ken require Requires more control to enforce accounting rules without burdening the operational side of the business Minimize the number of month-end adjusting entries through general journals Alicia, Purchasing Manager Would like to enter a document based on operations process rather than dictated by accounting of the document Process a document more quickly Nandita, In-house Developer Creates frequent customizations based on feedback from users Performs the data upgrade between releases, and needs to be informed of and understand upgrade decisions

Concepts: Financial dimension framework & COA Financial dimensions Account structure Advanced rule structure Chart of accounts Ledger Dimension sets Alias Company- specific attributes Main account template DEMO 1: Financial dimensions How to add a new entity to the list of financial dimension entities Calculating balances using financial dimension sets Restricting dimension values to legal entities DEMO 2: Account structures Integration of organizational hierarchy to account structures

When to use the feature Financial dimensions: New install – No out-of-box financial dimensions Evaluate business requirements to determine financial reporting needs Create 0 to many financial dimensions based on financial reporting requirements Use entities within AX to minimize maintenance of dual lists

When to use the feature Financial dimensions: Upgrade – Prior to upgrade, evaluate the dimension values to determine which values/descriptions to ‘bring forward’ 10 Finance 10 Admin 10 Finance – After upgrade, create additional dimensions at any point if business requirements necessitate new dimensions

When to use the feature Account structures: New install Required to have one account structure to define which dimensions are valid for a range of main accounts All: All, then Department, Cost center Balance sheet: 1000–3999, then Department Profit and loss: 4000–9999, then Department, Cost center Optional to use the account structures to define which main account and dimension value combinations are valid If main account , then Department 100; 105 If main account , then Department 101; 102 Don’t reinvent the wheel: Select existing organizational hierarchy when defining account structure

When to use the feature Account structure: Upgrade – Evaluate AX 2009 data prior to upgrade: If budget transactions exist in AX 2009, one account structure is created with the financial dimensions Each dimension hierarchy becomes an advanced rule structure on the account structure The advanced rule structure will be labeled with the dimension hierarchy name in AX 2009

When to use the feature Financial dimension sets – Required for calculation of balances for main account/dimension values

Demo 1: Financial dimensions and Account structures PersonaPain Points and Challenges Nandita Creates frequent customizations based on feedback from users Performs the data upgrade between releases, and needs to be informed of and understand upgrade decisions Needs to easily provide the financial information Sara and Ken require Phyllis Needs to easily provide the financial information Sara and Ken require Requires more control to enforce accounting rules without burdening the operational side of the business Sara Wants more dynamic measures to provide better financial insight and control to enable her to make more confident decisions

demo Financial dimensions and Account structures

Demo 1: Financial dimensions and Account structures PersonaFeatures CoveredResults and Benefits Nandita Financial dimensions – Adding new entity for financial dimensions Any entity with a surrogate and a natural key can be added to the list of entities which can be used as a financial dimension, which will eliminate redundant lists Phyllis Financial dimension values per legal entity Financial dimension sets Allows the user to better determine which combination of main accounts and financial dimensions require a balance to be calculated Greatly improves performance by not calculating balances for every combination Gives user control over when to calculate balances Determine values available for each legal entity through either the account structure or the legal entity–specific settings

Demo 1: Financial dimensions and Account structures PersonaFeatures CoveredResults and Benefits Sara Account structures and organizational hierarchy Not required to maintain two separate hierarchies Faster implementation of the dimension rules through usage of existing rules Financial dimension rules will be updated automatically based on changes to the organizational hierarchy

Operations Concepts: Source document and accounting frameworks Accounting

What Did We Do in this Release? Accounting framework Source document framework

When to use the feature Accounting distributions – If an amount needs to be split across financial dimensions, use the accounting distributions rather than creating more than one line on the document

When to use the feature Level of interaction – Usage of posting profiles and default financial dimensions – How often an amount is split across financial dimensions Financial dimension templates minimize frequency – Whether document results in an accounting entry – Knowledge of person entering the document for how the amount should be split across financial dimensions

When to use the feature Sub-ledger journal – Useful for an approver to validate the accounting entry generated for a document prior to journalizing in the subledger – Created for source documents that always generate a general ledger entry: Vendor invoice Free text invoice Expense report – Created based on accounting rules for the source document: Purchase requisition – If pre-encumbrance process is enabled Purchase order – If encumbrance process is enabled Product receipt – If accruing liability on product receipt

When to use the feature Accounting rules – Values used for summary accounts: Source document: Centralized processing scenario, AX 2009 functionality Accounting distributions: AR/AP to be broken out to the same financial dimension values as the expense/revenue/asset – Batch transfer rules: Batch or asynchronous: Document doesn’t require immediate posting to GL, reduces time for processing Summary: To minimize the quantity of account entries made into general ledger

Demo 2: Vendor invoice using frameworks PersonaPain Points and Challenges Alicia Would like to enter a document based on operations process rather than dictated by accounting of the document Process a document more quickly Phyllis Minimize the number of month-end adjusting entries Poor visibility into the accounting impact of a document prior to journalizing Too much data in general ledger

demo Vendor invoice using frameworks

Demo 2: Vendor invoice using frameworks PersonaFeatures CoveredResults and Benefits Alicia Accounting distributions Templates Batch transfer rules Operations determines how to record a document Automatic split of accounting distributions results in faster data entry Improved responsiveness results in faster data entry Phyllis Subledger journal Batch transfer rules Ability to preview the accounting of a document allows for early validation and reduces coding mistakes Summarized general journal, reduces database size

Top 10 Tips from the Session 1.Add your own entity to the financial dimension list of entities with only 4 lines of code 2.Validate your dimension sets to ensure balances are calculated after upgrading 3.Use the rules defined in the organizational hierarchy for the account structure rather than reinventing the wheel 4.Evaluate your financial dimension values prior to upgrade to see if you need to renumber any values in order to avoid conflicts

Top 10 Tips from the Session 5.Prior to upgrade, weigh the pros/cons of removing the account hierarchy in order to better utilize the account structure in AX Determine whether you want the AR/AP ledger accounts to use financial dimensions from the document header or the accounting distributions (through GL parameters) 7.Change the batch transfer rules to summary if you would like to reduce the quantity of data in GL

Top 10 Tips from the Session 8.Transfer your subledger journal entries to GL using either async or batch to improve the system’s responsiveness when journalizing 9.Leverage financial dimension templates to enter documents more quickly 10.Use the accounting distributions functionality on the PReq or PO to save April time when entering the vendor invoice

Related sessions BRK228: Managing Financials with Microsoft Dynamics BRK239: Budgetary Control and Commitment Accounting CHK205: Financial Data Architecture Q&A CHK207: Financial Distribution Q&A

Q&A

Visit our Focus Rooms Evaluation of Implementation Proposals by Dynamics AX R&D Solution Architecture & Industry Experts Gain further insights on Dynamics AX Industry Solution Offerings Resolution Guidance on Solution Roadblocks Networking Focus Topic Highlight Business Intelligence Tuesday 2.15pm – 5.45pm Risso 6C Risso 8A Risso 7B Risso 7A Risso 6C Risso 6A/B

© 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows 7 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.