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Posts Tagged ‘Accounts Receivable in Dynamics AX 2012’

Get Better Invoice Visibility with Microsoft Dynamics AX 2012

November 8th, 2012 Partha Chattopadhyay No comments

In business, sometimes processes require that items are sold which are not directly purchased. By using Microsoft Dynamics AX 2012, you are able to sell an item using free text invoice, as well as enter the unit price and quantity for better visibility.

One of the many improvements introduced to free text invoices in Microsoft Dynamics AX 2012 includes the ability to enter quantities and unit prices on free text invoice lines – since the option to input price and quantity in free text invoice was not available in earlier versions of Microsoft Dynamics AX.

With Microsoft Dynamics AX 2012, 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.

This article will describe how you can use unit price and quantities in free text invoice of Microsoft Dynamics AX 2012.

What is changed in Microsoft Dynamics AX 2012?

In Microsoft Dynamics AX 2009, there is no scope of entering unit price and quantities in free text invoice.

In Microsoft Dynamics AX 2012, improvement has been done to include unit price and quantities in free text invoice.

The Process

Let’s use ABC Company as an example – ABC Company wants to sell the surplus goods that are left over from a large project recently completed. The goods were not purchased through the inventory system; therefore, they cannot be sold through a sales order.

Instead, they must be sold through a simple free text invoice transaction. A subcontractor has requested to purchase 15 pieces and ABC Company agreed to sell all 15 for USD $50.

To create a free text invoice with quantities and amounts, follow these steps:

  1. Click Accounts receivable > Common > Free text invoice > All free text invoices.

    Navigation path for a free text invoice

    Fig 1: Navigation path for a free text invoice

  2. Click New > Free text invoice to create a new free text invoice.

    Click New to create a new free text invoice7

    Fig 2: Click New to create a new free text invoice

  3. Select a customer in the Customer field, and enter any additional information.

    Select Customer and other information in the Free Text Invoice Header

    Fig 3: Select Customer and other information in the Free Text Invoice Header

  4. Click Add Lines in the Invoice Lines grid.

     Click Add Lines in the Invoice Lines grid to create a free text invoice line

    Fig 4: Click Add Lines in the Invoice Lines grid to create a free text invoice line

  5. In the Description field, type a description for the invoice line.
  6. In the Main Account field, select the ledger account to be used for posting.
  7. Select Sales Tax Group and Item Sales Tax Group.
  8. In the Quantity field, type 15 as a number for the quantity.
  9. In the Unit price field, type 50 as an amount for each quantity in the invoice line. Notice the Amount field is updated with the extended amount.

    Add details of Quantity and Unit Price in a free text invoice line

    Fig 5: Add details of Quantity and Unit Price in a free text invoice line

  10. Click Charges and add charges if required.

    Click Charges in the Action pane and add Charges in the free text invoice line

    Fig 6: Click Charges in the Action pane and add Charges in the free text invoice line

  11. Click the Total option in the Action pane to check the Total. Check that the Subtotal Amount, Sales Tax, Charges and Invoice Total are correctly calculated.

    Click the Total option in the Action pane to check the Total

  12. Post the free text Invoice.

Exceptions: Free Text Invoices without Quantities

When a quantity or unit price is not available for the free text invoice line, the fields can be left blank.

For example, if you do not have a unit price and quantity for the line, only a total amount for the line, you can ignore the Unit Price and Quantity fields and then enter an amount for the line. The system will display the amount entered, and the Unit Price and Quantity fields will remain blank.

You can also enter a Quantity and enter an Amount, leaving the Unit Price field blank.

Conclusion

As you can see, by using the enhanced free text functionality in Microsoft Dynamics AX 2012, you can easily enter the unit price and quantity of products to give better transparency to your customers. If you have any questions about free text functionality or about Microsoft Dynamics AX 2012, please email us at dynamics@ignify.com.

Partha Chattopadhyay is a Manager in the Microsoft Dynamics AX practice at Ignify. Ignify is a leading provider of Microsoft Dynamics ERP solutions to mid-market and Enterprise businesses. Ignify has been ranked as Microsoft Partner of the Year Winner in 2012, 2011 and 2010, and in the Microsoft Dynamics Inner Circle, Microsoft Dynamics Presidents Club in 2009. Ignify has offices and team members in Southern California, Northern California, Arizona, Tennessee, Illinois, Washington, Canada, Singapore, Malaysia, India, Philippines, and Jakarta.

Correct Invoice Errors with New Invoice Correction Process in Microsoft Dynamics AX 2012

October 8th, 2012 Partha Chattopadhyay No comments

Making mistakes is a very common thing to happen for human beings. One such thing that can sometimes happen is making a mistake on a free text invoice posted for a customer. After realizing the mistake, you of course want to correct it, but you may be worried that you don’t know how to do it – or that the system can’t make the correction.

Don’t worry – with the customer invoice correction process you can easily correct your posted free text invoice.

What is changed in Microsoft Dynamics AX 2012?

In Microsoft Dynamics AX 2009, correcting a free text invoice involved issuing a credit note against the incorrect customer invoice and creating a new customer invoice. In addition, you could not link the new customer invoice, corrected customer invoice, and customer credit note to one another.

In Microsoft Dynamics AX 2012, a new Correct Invoice button is added to the free text invoice details form and the free text invoice list page. After clicking the button, a new form will open where the user can adjust the necessary information and then post the correction.

Required System Configuration

Since the invoice correction feature is not enabled by default, you must enable it by going to the General ledger > Free text invoice correction configuration key in the License configuration form under System administration.

System configuration is required for free text invoice correction

Fig 1: System configuration is required for free text invoice correction.

Free Text Invoice Correction Process

Let us start with an example where you posted a free text invoice amount for USD $2,500 to Customer 1301-Whale Wholesales – but the amount should really be USD $3,000. You realize your mistake, and you want to quickly correct the free text invoice.

Posted free text Invoice with the wrong amount

Fig 2: Posted free text Invoice with the wrong amount.

The process for correcting a free text invoice involves the following steps:

  1. The user clicks Correct on the Free text invoice form.

    To correct a free text invoice, first click Correct Invoice

    Fig 3: To correct a free text invoice, first click Correct Invoice.

  2. Select the error code as “ERROR”, enter the invoice cancelling date and then click Create Corrected Invoice.

    Enter a reason code and a cancelling Invoice date to create  a corrected free text invoice

    Fig 4: Enter a reason code and a cancelling Invoice date to create a corrected free text invoice.

  3. The system then creates a copy of the original free text invoice.

    Created copy of the free text invoice after entering a reason code and a cancelling invoice date

    Fig 5: Created copy of the free text invoice after entering a reason code and a cancelling invoice date.

  4. Make the desired changes to the copied free text invoice.

    Make changes in the free text invoice copy

    Fig 6: Make changes in the free text invoice copy.

  5. Post the changed free text invoice.

    Post the changed free text invoice

    Fig 7: Post the changed free text invoice

  6. The system creates a credit note and all the original settlements are reversed and reapplied to the new credit note. An Infolog appears to show the successful completion of the process.

    Infolog showing the successful completion of the process

    Fig 8: Infolog showing the successful completion of the process

  7. The system creates a link between the Corrected, Credited (Canceling), and Original customer invoice for a clear audit trail.

    The previous free text invoice, credit note, and the corrected invoice are created during the process

    Fig 9: The previous free text invoice, credit note, and the corrected invoice are created during the process.

    Invoice corrections created during the process

    Fig 10: Invoice corrections created during the process.

    The original free text invoice that was corrected

    Fig 11: The original free text invoice that was corrected.

    The credit note automatically created during the correction process

    Fig 12: The credit note automatically created during the correction process.

    The new free text invoice created during the correction process

    Fig 13: The new free text invoice created during the correction process.

NOTE: You can also use the new free text invoice workflow configuration to approve the change.

Conclusion

As you can see, you are now able to easily correct any free text invoice which was posted with the wrong amount. After going through the correction process, the system cancels the incorrect one and posts a new one linked with the old one to meet the audit requirements.

If you have any questions about correcting free text invoices, or would like more information about Microsoft Dynamics AX 2012, please email us at dynamics@ignify.com.

Partha Chattopadhyay is a Manager in the Microsoft Dynamics AX practice at Ignify. Ignify is a leading provider of Microsoft Dynamics ERP solutions to mid-market and Enterprise businesses. Ignify has been ranked as Microsoft Partner of the Year Winner in 2012, 2011 and 2010, and in the Microsoft Dynamics Inner Circle, Microsoft Dynamics Presidents Club in 2009. Ignify has offices and team members in Southern California, Northern California, Arizona, Tennessee, Illinois, Washington, Canada, Singapore, Malaysia, India, Philippines, and Jakarta.

Automate Periodic Invoices with Microsoft Dynamics AX 2012

September 16th, 2012 Partha Chattopadhyay No comments

As any business owner knows, running a business efficiently is not easy. Apart from needing to manage your daily purchases and sales, you need to take care of periodic invoices as well – which may occur monthly, quarterly, or yearly. With purchasing and sales taking up your time and attention, sometimes you may forget to post those invoices on time, leading to late payments and financial losses to the organization. With the stress of always having to oversee the posting and payment of these periodic invoices, you may often think it would be a good thing to have a system that takes care of all these invoices for you.

Cheers! Your dream has come true – Microsoft Dynamics AX 2012 has a new feature that enables you to set up a customer to be billed on a recurring basis, essentially handling all of your periodic invoices for you.

Let’s start with this example: you have a customer who uses one of your warehouses, and he abides by a rent agreement of $30,000 USD month for the next three years. To receive payment from your customer, you need to send a free text invoice every month for the rent amount.

With a free text invoice, you have a recurring process for sending your customer an invoice every month for the next three years. The new recurring free text invoice functionality in Microsoft Dynamics AX 2012 allows you to completely automate this process.

The new feature involves a three step process for enrolling a customer for a recurring free text invoice:

  1. Create a free text invoice template
  2. Assign the template to a customer
  3. Generate and post the recurring invoice

Let us discuss the above steps in detail.

Create a free text invoice template

As a first step, you need to create a free text invoice template. One template can be used for multiple customers.

To create a free text invoice template, you first need to go to Accounts receivable > Setup > Free text invoice templates (please see Figure 1).

Navigation path for free text invoice templates.

Fig 1: Navigation path for free text invoice templates.

After getting to the free text invoice templates, click New, and then enter a template name and description.

In the Invoice Line section, enter a description, a main account, and a unit price.

You need to enter a description, main account, and unit price when completing the Invoice Line section of a free text invoice template.

Fig 2: You need to enter a description, main account, and unit price when completing the Invoice Line section of a free text invoice template.

Assign the template to a customer

This step allows you to select the customer you wish to receive the recurring invoices. With the invoice functionality in Microsoft Dynamics AX 2012, each customer can have multiple templates.

To assign a template to a customer, go to Accounts receivable > Common > Customers > All customers > Invoice tab > Recurring invoices button.

Assign a free text invoice template to a customer.

Fig 3: Assign a free text invoice template to a customer.

After you select a template for the customer, you then select a start date and end date of the invoice, as well as the recurrence you want to set the invoice communications (such as if you want the customer to receive their invoice weekly, monthly, etc.) After filling in the appropriate information, click Save and close the form.

 

Additional parameters are set up for a customer with recurring free text invoices – such as the start and end date of the invoice messages, the time frame that the recurrence should be set, etc.

Fig 4: Additional parameters are set up for a customer with recurring free text invoices – such as the start and end date of the invoice messages, the time frame that the recurrence should be set, etc.

Generate and post the recurring invoice

To generate the recurring free text invoice, go to Accounts Receivable > Periodic > Generate recurring Invoices.

Navigation path for generating recurring free text invoices.

Fig 5: Navigation path for generating recurring free text invoices.

On the opened form, enter the parameters needed to generate the recurring invoice – such as the Customer Account, the invoice date, template, and the invoice generation date. Once the parameters are completed, click OK to generate the invoice.

Parameter selection for generating recurring free text invoices for a customer.

Fig 6: Parameter selection for generating recurring free text invoices for a customer.

After clicking OK, the following Infolog will pop up to show that the recurring invoice has been generated successfully (please see Figure 7).

Infolog showing the successful creation of a recurring free text invoice.

Fig 7: Infolog showing the successful creation of a recurring free text invoice.

After the recurring free text invoice has been created and generated, the next step is to post the invoice. To post a recurring free text invoice, go to Accounts Receivable > Periodic > Post recurring Invoices.

Navigation path for posting recurring free text invoices.

Fig 8: Navigation path for posting recurring free text invoices.

After selection the “Post recurring invoices”, the following form will open to show the generated recurring invoice header.

Generated free text invoice header.

Fig 9: Generated free text invoice header.

On the opened form, click the lines to check the customer name, date, and amount.

A generated free text invoice line.

Fig 10: A generated free text invoice line.

After checking that all the information in the invoice is correct, click the Post button to post the invoice.

Once you click to post the invoice, the following Infolog will pop up to show that the recurring invoice has been posted successfully (please see Figure 11).

Infolog showing the successful posting of a recurring free text invoice

Fig 11: Infolog showing the successful posting of a recurring free text invoice

The posted free text invoice can then be viewed on Account Receivable > Common > Free Text Invoice > All Free Text Invoice.

 A posted free text invoice as shown in the Accounts Receivable common form

Fig 12: A posted free text invoice as shown in the Accounts Receivable common form

Advantages

There are several advantages of using the above process to take care of the recurring invoices you send out to customers:

  1. You can run the automatic invoice generation in a batch process. The batch will run as per the recurrence set by you to generate automatic invoice ready for posting.
  2. System validation will prevent you from generating a duplicate invoice. So for example, if you are running the invoice generation manually and tried to generate the same invoice more than once a month (if it’s a monthly recurring invoice), then the system will prevent this from occurring.
  3. The system will automatically validate pending invoice generation and create the previous invoice. For example, say you are running the invoice generation manually and have forgotten to run the invoice generation process for one month. When you try to run the invoice generation process in the subsequent month, the system will automatically validate the pending invoice generation and create the previous month’s invoice also.
  4. You can edit the invoice amount before posting the invoice.

Conclusion

So with the powerful recurring free text invoice functionality available in Microsoft Dynamics AX 2012, you can easily automate your free text invoice process according to your business requirements and preferences. If you have questions about performing free text invoice processes in Microsoft Dynamics AX 2012, or would like more information, please email us at dynamics@ignify.com.

Partha Chattopadhyay is a Manager in the Microsoft Dynamics AX practice at Ignify. Ignify is a leading provider of Microsoft Dynamics ERP solutions to mid-market and Enterprise businesses. Ignify has been ranked as Microsoft Partner of the Year Winner in 2012, 2011 and 2010, and in the Microsoft Dynamics Inner Circle, Microsoft Dynamics Presidents Club in 2009. Ignify has offices and team members in Southern California, Northern California, Arizona, Tennessee, Illinois, Washington, Canada, Singapore, Malaysia, India, Philippines, and Jakarta.