1. 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

2. DISCLAIMER ©2011 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. Other names and brands may be claimed as the property of others. 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. All pre-release product release dates and features specified are preliminary based on current expectations, and are subject to change without notice. Microsoft may make changes to specifications and product descriptions at any time, without notice. Sample code included in this presentation is made available AS IS. THE ENTIRE RISK OF THE USE OR THE RESULTS FROM THE USE OF THIS CODE REMAINS WITH THE USER. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPERTY RIGHTS IS GRANTED BY THIS PRESENTATION. Microsoft products are not intended for use in medical, life saving, or life sustaining applications.

3. NICE,FRANCE LEARN | INSPIRE | INNOVATE TECHNICAL CONFERENCE 2011

4. BUDGET CONTROL AND COMMITMENT ACCOUNTING HEIDI MINZNER SESSION CODE : BRK239 PRINCIPAL PROGRAM MANAGER LEAD MICROSOFT CORPORATION

5. Today we will show you… Defining budget dimensions Creating a budget Configuring budget control Controlling expenditures against budget Differences between budget control and commitment accounting

6. Components in action today

7. Pains and challenges Budget manager/Analyst Monitoring expenditures against planned budget is manual and reactive No review process for budget updates or amendments Little flexibility in how budgets are developed Controller Monitoring expenditures against planned budget is manual and reactive No review process for budget updates or amendments Little flexibility in how budgets are developed Department manager (ex. Sales manager) My department is continuously going over budget, and I need access to data to make informed purchasing decisions

8. Concepts & Definitions Budget control – A practice of authorizing expenditure only when budget funds can be reserved to meet future payment commitments Commitment accounting – A practice of recording budget fund reservation business events in pre-encumbrance and encumbrance journal accounts for financial and management reporting and analysis Budget control dimensions – A combination of active financial dimension values used to allocate budget funds to pay for planned activities

9. When to use the Feature Budgeting Allows for greater audit trail over changes and adjustments to budget amounts through the use of budget codes and types Budget workflows allow for review and approval prior to impacting the budget balance Provides flexibility in determining the financial dimensions for which budget amounts are established through the use of budget dimensions Budget service allows for integrating budget amounts from applications external to Dynamics AX Budget control Flexible configuration options to meet the needs of any organization Provides real-time budget funds available calculation to ensure planned expenditures do not exceed budget allocations Allows for pooling of budget funds across a collection of financial dimension values Commitment accounting Satisfies financial reporting requirements for key industries by recording commitments and obligations of budget funds in the ledger

10. E2E Process : Product Demo (How to Use the Feature) E2E Name : Procurement process with budget control DEMO 1: Configuring budgeting Defining budget dimensions Defining budget codes Defining budget transfer rules DEMO 2: Budget control configuration Configuring budget control dimensions Defining budget control calculation Defining budget cycles DEMO 3: Developing a budget Budget register entry DEMO 4: Controlling expenditures against budget Budget control

11. Demo 1 : Configuring budgeting PersonaPain Points and ChallengesFeatures CoveredResults and Benefits Budget manager I need to track budgets at the department level Budget dimensionsProvides flexibility to determine the financial dimensions for which budget amounts are allocated Budget manager I need to prevent transfers of budget amounts between departments Budget transfer rulesProvides the ability to prevent transfer of budget funds between financial dimension values without approval

12. Demo 2 : Configuring budget control PersonaPain Points and ChallengesFeatures CoveredResults and Benefits Budget manager I need to control budget spend at the department/ cost center level Budget control dimensions Budget control rules Provides flexibility to determine the financial dimensions that budget control is enforced for Budget manager I want to determine the amounts impacting budget funds available and the documents for which budget control is enforced Budget control configuration Easily configure budget control to meet the needs of the organization

13. Demo 3 : Developing a budget PersonaPain Points and ChallengesFeatures CoveredResults and Benefits Budget manager Difficult to trace budget adjustments Budget codes Budget types Traceability of budget amounts Budget manager I need the ability to review and approve updates to budgets Budget workflows Budget register entry Budget adjustments can be reviewed and approved prior to effecting budget balances Budget manager I want to use Excel for budgeting Dynamics AX Add-ins for Office Budget service Users are able to use their tool of choice for budgeting

14. Demo 4 : Controlling expenditures against budget PersonaPain Points and ChallengesFeatures CoveredResults and Benefits Department manager I am responsible for my departmental budget and can only track manually Budget control Budget groups Budget is checked prior to purchase commitment Budget manager Managing spend against budget is reactive, looking at budget versus actual – which is too late! Budget control Budget control statistics Prevents overspending of funds

15. Commitment Accounting Budget account entry for 602190-Dept-CC: 1000.00 Budget funds available for Dept-CC: 1000.00 Purchase requisition line for training Purchase order line for training Vendor invoice line for training 602190-Dept-CC: 400.00 602190-Dept-CC: 410.00 DR: 371100-Dept-CC: 400.00 CR: 363000-Dept-CC: 400.00 DR: 602190-Dept-CC: 410.00 CR: 212500-Dept-CC: 410.00 DR: 371100-Dept-CC: 400.00 CR: 363000-Dept-CC: 400.00 DR: 602190-Dept-CC: 410.00 CR: 212500-Dept-CC: 410.00 Budget funds available for Dept-CC: 600.00 Budget reservation for pre- encumbrance for Dept-CC: 400.00 Budget funds available for Dept-CC: 600.00 Budget reservation for encumbrance for Dept-CC: 400.00 Budget funds available for Dept-CC: 590.00 Budget reservation for actual expense for Dept-CC: 410.00 DR: 363100-Dept-CC: 400.00 CR: 371000-Dept-CC: 400.00 DR: 363000-Dept-CC: 410.00 CR: 371100-Dept-CC: 410.00 DR: 363100-Dept-CC: 400.00 CR: 371000-Dept-CC: 400.00 DR: 363000-Dept-CC: 410.00 CR: 371100-Dept-CC: 410.00 DR: 371000-Dept-CC: 400.00 CR: 363100-Dept-CC: 400.00 DR: 371000-Dept-CC: 400.00 CR: 363100-Dept-CC: 400.00 DR: 371100-Dept-CC: 400.00 CR: 363000-Dept-CC: 400.00 DR: 602190-Dept-CC: 410.00 CR: 212500-Dept-CC: 410.00 DR: 371100-Dept-CC: 400.00 CR: 363000-Dept-CC: 400.00 DR: 602190-Dept-CC: 410.00 CR: 212500-Dept-CC: 410.00 DR: 363100-Dept-CC: 400.00 CR: 371000-Dept-CC: 400.00 DR: 363000-Dept-CC: 410.00 CR: 371100-Dept-CC: 410.00 DR: 363100-Dept-CC: 400.00 CR: 371000-Dept-CC: 400.00 DR: 363000-Dept-CC: 410.00 CR: 371100-Dept-CC: 410.00 DR: 371000-Dept-CC: 400.00 CR: 363100-Dept-CC: 400.00 DR: 371000-Dept-CC: 400.00 CR: 363100-Dept-CC: 400.00 Relieves

16. Architecture – Budget Control BudgetControlProcessor +addBudgetCheckRequestToProcessAtCommit (budgetControlCheckRequest) +addBudgetSourceToRemoveAtCommit(savedBudgetSourceId) +addBudgetSourceToReturnRemainingAtCommit(savedBudgetSourceId,CurUser,Date) BudgetControlProcessor +addBudgetCheckRequestToProcessAtCommit (budgetControlCheckRequest) +addBudgetSourceToRemoveAtCommit(savedBudgetSourceId) +addBudgetSourceToReturnRemainingAtCommit(savedBudgetSourceId,CurUser,Date) BudgetControlAccountingJournalProcessor BudgetControlSourceDocumentProcessor BudgetControlBudgetTransactionProcessor ISV extensions

17. Top Tips from the Session Ensure the dimensions that you want to budget against are contained within the account structures for the COA – This does not include advanced rules Ensure that, if you plan to use budget control, budget control is configured and enabled prior to entering budget amounts. The API is only called when budget control is enabled If you want to check budget funds available during the procurement process, this only requires budget control and not commitment accounting. Commitment accounting is used to record the reservation of funds in the form of general journal entries and is typically only required for specific industries and geographies Budget control allows for a draft and active configuration, allowing you to make changes while the continuing to check budget funds available based on the active configuration

18. Top Tips from the Session Turning budget control off will result in deletion of draft reservations and prevent budget reservations from being relieved. Do not turn budget control off unless you intend to stop using it You can control budget at a group level, such as department or cost center, by using budget groups You can check budget on draft documents without making a formal reservation by excluding draft encumbrances/pre-encumbrances from the budget control calculation Budget intervals determine the fiscal period balances that are aggregated for budget checks. For example, if you want to only allow budget for the quarter to be consumed, set the budget interval to Quarter

19. Related sessions BRK228: Managing Financials with Microsoft Dynamics BRK237: Deep Dive into Microsoft Dynamics AX 2012 Financial Foundations BRK258: Public Sector Industry Solution CHK205: Financial Data Architecture Q&A

20. 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

21. Q&A

22. © 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.