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Microsoft has launched the Microsoft Dynamics AX for Retail Point of Sale solution . When I visited the Microsoft Convergence show in 2009, I saw the solution in action under its prior owner and was very impressed with it. The thought that crossed my mind then was ‘I wish Microsoft would buy this solution’ – and they did. Today that solution has been re-launched with improvements as the Dynamics AX for Retail Point of Sale Solution.

We’ve had quite a bit of experience with the product today by dint of being a Microsoft premier partner – in the last few months, we have integrated the AX for Retail with Ignify eCommerce, demonstrated it to a few customers and done some configurations for a demonstration store we plan to launch early next year. In this time, we have gotten to know the solution very well.

Most Point of sales do a basic set of functions and then some do more advanced functions. Microsoft Dynamics AX for Retail has the basic functions covered very well but has some incredible advanced functionality. In this blog, I plan to cover primarily the basic functions and in my part-II talk about the advanced functions.

User Interface: First off – the interface is extremely slick. This is what caught my eye. An example lay out is below. But what’s attractive is not that it is a cool-looking lay out but that you can make changes to this in a snap. For example, I can right click a button and not only re-label it but also trigger a completely different function. For example – I can make the Edit Line Item button be my Void Transaction button. I can also decide how many buttons I want and how many rows and columns and what colors they should be. For example – I can have my top selling items each be a separate button – or my top selling category each be a button e.g. Men’s Shoes, Men’s Hats, Women’s Shoes, Women’s Hats etc. But then I can also color code all the Men categories in blue and the Women product categories in Pink for example. Now you will likely not have a sales clerk do these changes – but someone like a store manager or IT do them. But you can create multiple POS layouts and based on the user or role you can assign the layout and when the person logs in they see the lay out assigned to them. For example I can have the same machine show a lay out for customer service supervisor that has returns, credits, returns, warranties, exchanges while for a sales clerk the focus may be on the sale, checkout like the one below. I don’t need to setup a machine specifically for customer service and another one specifically for checkout. Any machine can be used for any role and adjusts to who logs in. Additionally the user interface is built to work with a touch screen so it will natively support a self-service Kiosk touch pad. I’ve put this in my basic blog feature description but frankly most point of sale products in the market don’t offer this flexibility. California law (and some other states) requires retailers offer a dual screen where not only the cashier can see what is being transacted but so can the customer. Dynamics AX for retail offers this dual screen capability natively.

Figure 1.Dynamics AX for Retail POS has the capability to automatically apply discounts

Upsell: Items can be configured to do up sell. For example when I rang up the HP 22 inch LCD monitor in the transaction shown above the system automatically prompted me to check if the customer wants extended warranty with it. This was a pretty simple up sell but you can do much more e.g. have multiple options for extended warranty or have a bundled item. The upsell screen can be configured in many ways – it can be a pop-up or another screen or just show up as a reminder. In this case I set it to be a pop-up where the cashier has to select an option thus increasing my average order amount.

Figure 2.Example of Upsell in Dynamics AX for Retail

System Interfaces: Dynamics AX for Retail provides out of the box interface for the cash drawer for opening the drawer for cash out to the customer, or for accepting cash and interfaces with credit card swipe but also an interface with the credit card payment providers through Dynamics payment services. This interface is at no charge.

Figure 3.Native Credit Card capability in Dynamics AX for Retail POS

Promotions: Dynamics AX for Retail has rich promotion capability to support item discounts, quantity discounts, mix and match, multi-buys etc. For example, the screen below shows a promotion of 10% running in August starting August 1st 2010 and expiring on August 31st, 2010 on all of my HP LCD monitors. Promotional offers can be a discount amount, a discount percentage or just a flat offer price, or an offer price including tax (the last is more common in places like UK)

Figure 4. Dynamics AX for Retail Headquarters with Promotions

Technology: Finally the platform is built entirely on Microsoft Technology written in C# and the .NET framework. The database behind this is SQL Server. A local database is available through SQL Server Express that can maintain a local copy in case connectivity in the store is an issue. I will talk more about the architecture in the next blog. In addition, the product natively interfaces with the Microsoft Dynamics AX ERP for financials, end of day reconciliation, refunds, credit card settlements, Item Master, Pricing etc. The entire AX for Retail Headquarters is natively integrated into the Dynamics AX ERP

All in – I am very excited of the future of Microsoft Dynamics in Retail. Microsoft is too – their Microsoft Stores run the Microsoft Dynamics AX for Retail Point of Sale. Kevin Turner – the Chief Operating Officer comes from a Retail background having been the CEO of Sam's Club and the CIO of Wal-Mart. He has definitely taken Microsoft into Retail with great results.

Figure 5.Microsoft Stores run the Dynamics AX for Retail Point of Sale

Here is a great video for you that gives an overview of the product.

If you have specific questions on Dynamics AX for Retail Point of Sale – email us at dynamics@ignify.com and we'd be happy to answer them.

Sandeep Walia is the Chief Executive Officer of Ignify. Ignify is a technology provider of ERP, POS, CRM, and eCommerce software solutions to mid-market and enterprise businesses and public sector organizations. Ignify is a Top-tier Microsoft Gold Certified partner ranked in the Microsoft Partner of the Year for Retail in 2010 and both the Microsoft Dynamics Inner Circle and the Microsoft Dynamics Presidents Club in 2009 . Ignify offers Microsoft Dynamics AX, Dynamics AX for Retail POS and the Dynamics CRM Loyalty Management solution for retailers and to several other businesses. Ignify has been included as the fastest growing business in North America for 3 years in a row by Deloitte, Inc Magazine and Entrepreneur Magazine. Sandeep was ranked in 2010 in the Microsoft Dynamics Top 100 Most Influential People List by DynamicsWorld. Ignify has offices in Los Angeles, Silicon Valley, Nashville, Chicago, Toronto, Manila, Pune and Bangalore.

Ignify has a phrase we live by in our consulting practice: "Effectiveness with Efficiency for our most valued asset, our clients."  Effectiveness means being experts in our field and doing things right. Efficiency means being frugal with our clients' consulting dollars on the hours it takes to implement. This is why Ignify developed RAPID: Ready-to-use And Proven Implementation Deliverables.

RAPID leverages the already proven Microsoft Sure Step Implementation Methodology by adding additional value. The basic premise behind RAPID is that every implementation has some Deliverables, both in configuration and documentation, that are similar. RAPID has taken these Deliverables and pre-built these to save as much as 30-40% in consulting fees on every implementation Ignify does.

For example, every Retail Industry implementation needs to have zip codes imported. Ignify has taken this process and automated it so they can deliver it ready to use in a matter of minutes. The point being, "Why should our clients pay for repetitive deliverables as if we are recreating the wheel with each implementation?" Believe it or not, that is the approach most other consulting practices take: billing every client the same amount for these Deliverables simply because they have not automated the processes. They literally are "recreating the wheel" with each implementation.

How do I know this? Because I have done Project Management or Management Consulting for most of the Microsoft Dynamics AX Partners when I was a freelance agent. I was also intimately involved in the development, training, and delivery of Microsoft Sure Step when version 2.0 came out. I trained the MCTs (Microsoft Certified Trainers) on how to teach the Sure Step class, and I co-authored the first day's training material. So I had the opportunity to see nearly all the Microsoft Dynamics AX Partners out there, up close and personal.

That is why Ignify caught my eye. They were different. During the recession they were growing and profitable! This intrigued me; I wanted to find out how they were doing it. The answer is simple-Ignify is doing what other Partners only talk about, which is seeing an implementation from the client's viewpoint and asking key questions: "How can we bring more value? How can we save our client's money on implementations?"

Thus, RAPID was developed, demonstrating genius in its cost savings for Ignify's clients. I was so impressed, I joined Ignify after years of owning my own businesses (17 years of building Microsoft practices and selling them or doing freelance consulting). Ignify had what I was looking for: great core values and a focus on delivering to their clients. Now, with RAPID, I am sold. Ignify is going places, and I am going with them. It's good to be part of something special. Something you believe in.

In future blog posts I'll be sharing more about RAPID. Stay tuned!

Scott Mertes is a Senior Project Manager in the Microsoft Dynamics ERP practice at Ignify. Ignify is a Global Microsoft Dynamics Inner Circle Partner headquartered in California specializing in Dynamics AX for Retail, Distribution, Manufacturing, Sea Port and Chemicals verticals. For help on Microsoft Dynamics ERP email us at dynamics@ignify.com

Microsoft has released the Management Reporter for Microsoft Dynamics ERP. However, not many are clear on what the new reporting tool brings to them and what it can and cannot do. I spent some time to understand the tool better and have listed down my analysis of the features the tool provides as well as what it does well and what it could do better.

Features

Management Reporter provides a tool that natively connects with the Microsoft Dynamics ERP General Ledger and allows business users to create reports without any IT intervention. The tool will replace the two reporting solutions in place FRx which is used for financial reports and Enterprise Reporting which is also used for financial reports but typically when you need multi-company consolidation. In essence what Management Reporter does is provide a single solution for both Management Reporting and Consolidation. That certainly is a step up from where things are today.

The core components of the solution include the following

1. Management Reporter Designer:

   A power user tool where you can define the report elements and what the report will look like and how it will work. The report designer provides for Report Definitions, Row and Column definitions, support formulas and financial dimensions and allows you to format the report elements. For example, the figure below shows a Row definition for an Income Statement Report. Notice that in the drop down you can include the type of Row e.g. TOT is a Total of other Rows, CAL is a complex calculation, DES is a Description such as the Row Code 130 called Revenue here etc. Column J here lists the link to financial dimensions which can include the GL Account or other dimensions such as Department, Cost Center, Division, Line of Business etc. There is native support for wild cards. For example my Sales Row in this example is the sum of All my GL accounts that start with 41 minus 4109. So the formula is written as +Natural=[41??]-Natural=[4109]. The ?? are the wild cards so any GL account that starts with 41 will be included in this calculation. The Natural reflects that I am referring to the Natural GL Account. If I was referring to another Dimension say DEPARTMENT then I would use that instead.

   

   Figure 1. Microsoft Dynamics Management Reporter Row Definitions for an Income Statement Report

   These Row definitions can be used across Multiple Report Definitions so once I define an Income Statement Row Definition I can use it in several reports such as Divisional Income Statements, Income Statement Month by Month, Income Statement Rolling Quarter etc. I do not need to create the same Row definition again. All I would do is change the column definition I use for these reports (provided I am showing the same row lines as on this report).

   This combination of which Report uses which Row and Column Definition is defined in a Report Definition. For example, the screen below shows multiple Report definitions in the left navigation bar for Balance Sheet Reports, Cash Flow Reports, Consolidation Reports, Trial Balance Reports and Income Statement Reports.

   

   Figure 2 Report Definition Folders for different types of reports

   Expanding the Income Statement Reports shows several Income Statements (IS) such as a Consolidated Side by Side comparing two divisions, Income Statement, Income Statement 12 month Period Trend etc. The report definition open is an Income Statement Rolling Quarter by Department that combines the Row Definition that we had above – Income Statement Detail with the Column Definition that supports a the rolling quarter format. This Row Definition is also used in the IS 12 month Period trend report and in the Income Statement Side by Side that compares two departments.

   

   Figure 3. Dynamics Report Definition of an Income Statement Rolling Quarter by Department

2. Report Library:

   Quite simply, this is a library of all the reports that users can view. However it is a lot more than that. Reports can be setup with a Reporting Tree that I touched upon in the Management Report Designer section. As an example, the report below is an Income Statement that I can see at a company level, or a Region level or a Division within that region level. For example the report shows Fabrikam Works at the company level, San Francisco Region and Denver Region below that and then the respective Sales and Service Divisions below it .e.g. San Francisco Sales Division and San Francisco Service Division. I also have a node in this tree that takes it one level further which is the Retail and Wholesale within Sales and similarly Lab and Studio within Service. The first question that comes to mind is whether the hierarchy has to be straight jacketed with one definition. Fortunately, it doesn't you can pull reports via multiple hierarchies and reporting trees. The level of flexibility if quite good and the product team has definitely done good work in putting this together.

   

   Figure 4. Reporting Tree in Management Reporter showing 4 levels of Company, Region, Division and Sub-division

   I've also included some sample additional reports here just to show what all else is possible. Below is an example of an Income statement using the row definition you saw in the Report designer section of this blow with a column definition that supports a monthly trend.

   

   Figure 5. Income Statement from Microsoft Dynamics ERP showing a Monthly Trend using the Row definition from Figure 1

   This row definition is again used in the report below but this time shows a 12 month Income statement with Actual Vs. Budget and highlighting whether it is a favorable change Vs. Unfavorable change. I thought that last piece was really cool because most reporting tools can show a net change and the percentage change but Management reporter goes one step further to actually color code it as favorable or unfavorable. For example, Sales were higher than budget so the change is shown as favorable but Sales returns are also higher than budget but this is shown as unfavorable. So the tool is more than a report writer – it also has a certain amount of Business Intelligence (BI) capability built in it. This is quite simply done by marking whether the typical entry is a Credit and Debit. It's quite simple but I've seen other ERP and reporting systems stumble on this so it is refreshing to see Microsoft get this right.

   

   Figure 6. Example of an Actual Vs. Budget Income Statement in the Management Reporter using the Row definition from Figure 1

   Another report output example is a Detailed Trial Balance report showing both the YTD and the numbers for the relevant period.

   

   Figure 7. Example of a Trial Balance Report in the Management Reporter for Microsoft Dynamics

   Finally – this report takes the cake. Management Reporter brings true consolidation capability. This report shows USA and Canada and then the Consolidated numbers. From what I understand the one limitation right now is that the multi-currency conversion is not yet there but will be there in the next version. Dynamics AX handles this through the consolidation company so it should not be an issue for someone using Dynamics AX but could be users of other ERP systems till the next version of Management Reporter comes out (which is not far away).

   

   Figure 8. Native Consolidation Capability in Management Reporter for Microsoft Dynamics

3. Security Framework:

   The security framework in Management Report is built in a very similar fashion to the Dynamics AX ERP. Authentication is supported by Windows Authentication so there is native integration with Active Directory. Authorization is supported within the tool. Security can be defined at a report level, folder level or the tree/node level. Security is defined in the Management Report Designer and you can differentiate which users need Report Library access (view access) as opposed to those that need Report Designer access (design access). The screen shot below shows how permissions can be assigned at a folder or node level or you can expand that to assign permissions at the individual report level. Permissions can be inherited from top level folders.

   

   Figure 9. Reporting Permissions can be set up at a folder, node or Report level in Management Reporter

Why choose Management Reporter?

So a natural question is why choose Management Reporter. Other than Microsoft stating that it is the reporting roadmap for Microsoft Dynamics and is putting its dollars for reporting in the Management Reporter – there are several reasons too. I've listed my top 10 with the most valuable at the end.

1. Easy to use: Management Reports works and looks a lot like FRx – so for those that are used to FRx will not have a tough time using the tool. Finally like the rest of Microsoft Dynamics, it uses the look and feel of Microsoft Outlook with a left navigation bar (the "magic bar") and a point and click that is easy to understand work with.
2. Multi-lingual support: Management Reporter supports multiple languages. Not a biggie for us folks in the USA but I can see it being big in French speaking Canada our neighbors further south and certainly in most of Europe.
3. Architecture: The product was not a Band-Aid from a legacy product but was completely rewritten using .NET and C#. This provides a very high degree of flexibility and the tool can scale for your data as your organization grows.
4. 64-bit compatibility: Anyone that has tried to install FRx on a 64-bit OS will know why this is important. Today's server OS have moved to 64-bit but today's reporting tools have not. Management reporter glides on 64-bit and is built for it. It dances and sings on a 64-bit OS. I saw at least about a 30% improvement in performance of reports if not more over FRx – that's significant!
5. Report Customizability: I really liked the amount of flexibility that the Management Reporter offers. It allows you to gain total control and generate report in minutes as well as personalize reports for things like company logo, set column and page breaks and apply format over-rides. Page breaks – yes! So basic yet missing in so many reporting tools but it's there here and again well implemented
6. Out of the box integration with Microsoft Dynamics: Pre-defined financial logic to tie to the GL filters for Microsoft Dynamics ERP.
7. Integration with Dimensions: Yes! Dimension filters – can use a range or set of dimensions to support things like divisional reporting. A big deal for Dynamics AX users.
    
8. Native XBRL Support: Why is this a big deal you ask? See this link on the SEC website to understand the adoption of XBRL in the financial community for filings and to see a preview of XBRL in action. Management Reporter provides native XBRL support with tagging for XBRL prior to report generation – note the word prior here. You do NOT need to generate the report before you can do the XBRL tagging. Seems such a simple requirement yet 95% of the reporting tools that do support XBRL (most don't even support that) ask for the XBRL tagging after the report is generated – which means you have to tag the report every time you generate it. Management Reporter lets you do the tagging before and get done with it. If you are a public company paying or planning to pay a lot of money to an outside service like Bowne this will hit home. Also the recent initiatives suggest while XBRL is voluntary – in a few years this may become mandatory for public companies. So you want a solution that can support this natively.
9. Active Directory Integration: I always found the additional login for FRx inconvenient. Just like Microsoft Dynamics AX Management Reporter integrates natively with Active directory allowing you to open the reports without an additional login (some of the other ERPs are not integrated to Active Directory that is why I call AX out)
10.   Native Multi-company and Multi-source Consolidation: Yes – this is the big one. Having native multi-company consolidation is very nice. While it was never a big issue for Microsoft Dynamics AX users due to the inbuilt consolidation company – it is an issue for the rest of the Microsoft Dynamics ERP products. Even for Dynamics AX it is a step up because the Consolidation company does consolidate the data – which means your size of the database increases every time you run consolidation. So ad-hoc consolidation will be a nice win. Also Management Reporter provides multisource consolidation with flexible top down analysis so if you are one of those organizations that use multiple ERP systems for some reasons this will be a great tool for you to get rid of the excel consolidation.

Finally, I believe Management Reporter can save you some license dollars. If you are running reports in the ERP you can have your financial users use the Management Reporter tool and only require the light license as opposed to the full ERP license. That's always a nice thing! Sandeep Walia is the President & CEO of Ignify. Ignify is a technology provider of ERP, CRM, and eCommerce software solutions to businesses and public sector organizations. Ignify is a Microsoft Dynamics Inner Circle Partner and ranked in the top 18 Microsoft Dynamics partners. Ignify has been included as the fastest growing business in North America for 3 years in a row by Deloitte, Inc Magazine and Entrepreneur Magazine. Sandeep was ranked in 2010 in the Microsoft Dynamics Top 100 Most Influential People List by DynamicsWorld.

Retail, Distribution and Manufacturing organizations can differentiate themselves from their competition by providing exceptional customer service by ensuring they have the right items in stock and that they can fulfill orders accurately and on time. For any organization to achieve this goal, it is vital to have a warehouse management system that will promote a high level of inventory record accuracy and optimization of inventory.

Dynamics AX provides advanced Warehouse Management capabilities that can accommodate the organization’s financial goals by reducing inventory and still maintain a high standard of customer service. Dynamics AX Warehouse management comes in two flavors – Standard and Advanced.

Standard & Advanced Warehouse Applications Differences

The main differences between the standard Dynamics AX Warehouse functionality and Advanced Warehouse Management Applications are:

In the standard warehouse management application, the organization can breakdown their warehouse at the aisle and location level. Due to this level of segregation, the organization is able to gain efficient inventory control and accuracy. In addition to these features, the Dynamics AX Advanced Warehouse Management Application will provide the user with the ability to segregate their inventory at the “Storage Area” and “Zone” levels. This feature will also inform the user where the item should be stored upon receipt, and if the item is readily available for shipment. Pallet Control is also available within the Advanced Warehouse Management Application. With “Pallet Control” the organization can achieve detailed inventory control, and traceability of their on-hand and consigned inventories

Summary of Functionalities

The purpose of the “Store Area” is to provide the organization the ability to define the physical layout of their warehouses. Once the warehouse storage areas are defined, the organization will be able to achieve optimal efficiencies for inventory transactions such as material put away, good housekeeping, picking and quarantine management.

Figure 1 Store Area in Dynamics AX helps define the layout of warehouses

The “Store Area” form (shown above), is integrated with the Dynamics AX “Location”. Within the “Location”, the organization can setup the location type (picking, bulk etc), view the maximum number of pallets that can be stored at a specific location, the number of pallets that are placed at the location, and the number of pallets that are available to satisfy the customer’s demand (shown below).

Figure 2. Dynamics AX Warehouse Locations record the type of location and the pallets in the location

The location file will also contain the “Pallet Type Group” parameter. This parameter dictates the “Pallet Types” that can be stored at any given location.

Figure 3. Pallet Type Groups in Dynamics AX Warehouse

It is within the “Pallet Type Group” and “Pallet Type” files, the organization can become very creative in maintaining their inventory flows. As an example, a “Pallet Type Group” can be created for items that have outside processed operations. Once the pallet identification number is created (Pallet ID) and the items are staged in the “Outbound” location, the “Pallet Transport Handling” program will transfer the items to the Outside Process warehouse.

Figure 4 Dynamics Ax supports Pallets of different sizes

Within the contents of this program, the organization will have the ability to view their inventory levels, and the transactions that occurred. By having this stock status information readily available, the organization will be in a better position to plan their material requirements in a timely and accurate manner.

System Integration

Dynamics AX integrates the Warehouse management module with the following applications:

• Accounts payable application
• Accounts receivable application
• Inventory management application
• Master planning application

When creating a purchase order line in the Accounts payable module, the user can register the receipt of the items in the Warehouse management module and attached the receipt to a specific purchase. When production orders are finished, the items are stored in the warehouse using the Warehouse Management Application. The Accounts receivable application handles the picking and shipping of items to satisfy customer demand. Once the items are picked and shipped, the reduction of the inventory level is recorded in the Inventory Management Application. All of these transactions are utilized to create the material plan of the organization.

Conclusion

The Warehouse Management Application can significantly help your organization to optimize your inventory flow, optimize inventory levels and ensure accuracy. Through the Dynamics AX Advanced Warehouse Management Application, the organization will be able to view the current position of their inventory levels, and to make sound business decisions which will lead to improved financial performance while maintaining a high degree of customer service.

This post is written by Richard Baginski. Richard is a Senior Business Analyst in the Microsoft Dynamics AX Practice at Ignify . Ignify is a Global Microsoft Dynamics Inner Circle Partner specializing in Dynamics AX for Retail, Distribution, Manufacturing and Chemicals verticals. For help on Microsoft Dynamics ERP email us at dynamics@ignify.com

Very often customers need to record a cash sale where you don’t want the customer balance to increase when you post the sale as you are recording both the sale and the payment at the same time. Microsoft Dynamics AX ERP has a very elegant but not-so-well-known solution for this. When you post a sales invoice, Dynamics AX can automatically also post the payment and settle it against the invoice. Therefore, two transactions the invoice and the payment are posted when you post the invoice. Below are the detailed steps to do this in Dynamics AX.

“Cash” sales may be created in both Free Text and Sales Order. This method bypasses the second step of creating a payment journal and settling it against the original invoice. With a cash sale, AX automatically creates the payment journal and settles it against the invoice.

Here are the steps to setup and use cash sales in AX:

1. Setup a method of payment as “Cash”

   

   Figure 1 Method of payment form

   • Set the Posting Account Type as Bank and select the bank account

     

     Figure 2 Assign a Payment Journal ID to the Method of payment

   • Select the Payment journal name on the File formats tab.
2. Create a Free Text Invoice

   

   Figure 3 Free Text Invoice

   

   Figure 4 Set the Method of payment to ‘Cash’ on the Free Text invoice

   • Set the Method of Payment as Cash on the payment tab

     

     Figure 5 Enter the Free text line details

   • Add the line detail information and post the invoice
3. Invoice and Payment are generated together during posting

   

   Figure 6 Posting creates the payment journal

4. View the Customer transactions to view the settled invoice and payment

   

   Figure 7 Customer transactions showing invoice and payment journal as settled

This also works for Sales orders

1. Create a sales order

   

   Figure 8 Sales order form

2. Set the Method of payment as cash on the Prices discount tab

   

3. Set the item and post the invoice

   

   Figure 9 Adding Method of payment to the Sales order

   

   Figure 10 Invoice Posting message

4. View the customer transactions

   

   Figure 11 Customer transactions showing invoice and payment journal as settled

This post is written by Craig Griffith. Craig is a Senior Manager in the Microsoft Dynamics AX Practice at Ignify . Ignify is a Global Microsoft Dynamics Inner Circle Partner specializing in Dynamics AX for Retail, Distribution, Manufacturing and Chemicals verticals. For help on Microsoft Dynamics ERP email us at dynamics@ignify.com