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Inbound and Outbound Shipping Processes in Microsoft Dynamics AX 2012

August 7th, 2014 Ashley Harbaugh No comments

A company’s inbound and outbound shipping processes are crucial points in the supply chain management process.

Without accurate and timely inbound shipping, a company cannot receive the parts and materials needed for customer orders, and thus cannot effectively fulfill those orders – which lead to unhappy customers.

Similarly, without accurate outbound shipping, a company cannot deliver the parts and materials that a customer orders in a timely manner, and thus cannot effectively fulfill those orders – which again lead to unhappy customers. 

With Microsoft Dynamics AX 2012, companies are able to track inbound and outbound logistics from the beginning to the end of the cycle, ensuring that goods and materials flow efficiently in and out, with companies able to track the progression of each step in the process.

Inbound Shipping

With Microsoft Dynamics AX, companies are able to get an arrivals overview and view all inbound shipments, including purchase orders, warehouse transfers and customer returns.

Inbound Shipping with Microsoft Dynamics AX

Microsoft Dynamics allows you to see all the purchase orders set for arrival.

Inbound Shipping with Microsoft Dynamics AX

With Microsoft Dynamics AX, companies are able to start the arrivals process per line on a PO, helping to keep arrivals visible and shipping arrival tracking accurate. 

With Microsoft Dynamics AX, a company can easily start the arrival process on items that come into the warehouse, and can see all the lines within a PO that is set to arrive. With this procedure, companies gain more insight into the inbound merchandise that arrives, and can store it accordingly.

A company can start an arrival on a PO, and they can also auto-create arrival lines based on pallet capacity. The system can also perform directed put away; in other words, you are able to make the system auto-select pallets and recommended locations according to specific parameters – for example, if certain items should be received and stored in a refrigerated part of the warehouse, etc. 

After transport from the inbound dock to the destination (whether it was done through bulk or picking), a warehouse user can log into Microsoft Dynamics AX to verify that the PO has been received and the inventory updated.

Outbound Shipping

With Microsoft Dynamics AX, shipping templates allow for quick and easy new shipment creation – which means faster conversion from order to fulfillment, and thus greater customer satisfaction. Shipping templates can be automatically created, or Wizard-driven, or even created manually. For example, shipments can be defined by:

  • A mode of transportation (if certain items should be transported by truck, etc.). 
  • Time and location (e.g., all US shipments should be shipped out in the morning).
  • The materials being shipped (e.g., hazardous materials only shipped at certain times or by certain modes of transportation).
  • Customer addresses (grouping orders to customers in the same city, state or zip code).
  • When a shipment can be filled (based on availability of the order lines). 

After the shipment is created in Microsoft Dynamics AX, you can group orders by customer (such as if you have multiple orders from the same customer that will be shipped out), and can transport orders from picking location to the outbound dock.

After shipment is staged for loading and sent, Microsoft Dynamics AX can then create the bill of lading as well as the packing slip.

Outbound Shipping with Microsoft Dynamics AX

When transporting orders from the picking location to the outbound dock, you have control and visibility over all aspects of the transportation process, including the ability to assign a specific forklift to move the order.

After the shipment is sent out, you can then verify on the sales order if the order was delivered to the customer.

Outbound Shipping with Microsoft Dynamics AX

Microsoft Dynamics AX provides full transparency into the order shipment process, from the first stages to the end delivery.

Microsoft Dynamics AX provides a powerful warehouse management system that helps you receive and deliver products with pinpoint accuracy. For more information on how Microsoft Dynamics AX can improve your warehouse operations, please email us at dynamics@ignify.com.

Ashley Harbaugh is a Marketing Coordinator at Ignify. Ignify is a technology provider of ERP, CRM, eCommerce, and Point of Sale software solutions to organizations. Ignify is winner/finalist of the worldwide Microsoft Partner of the Year Award in 2014, 2013, 2012, 2011 and 2010. Ignify has been included as the fastest growing businesses for seven years in a row by Deloitte, Inc Magazine and Entrepreneur Magazine from 2007 to 2013.

Manufacturer Sponsored Rebate (MSR) Module in Microsoft Dynamics AX 2012

November 1st, 2013 Michael Gabriel No comments

We recently completed a large supply chain implementation that had complex requirements to calculate manufacturers’ rebates and claims. These rebates and claims were important because they had an impact on customer pricing and salesperson commissions.   

To meet these requirements, Ignify developed a module that is tightly integrated with the other modules of Microsoft Dynamics AX 2012 for configuring rebates given by the manufacturers to their resellers. This module is designed to calculate and claim rebates from the manufacturers, with rebates calculated at the time of sales order creation, thus helping the sales representative to quote the competitive price to the customer.  

A service hosted by this module can be also used in a third party application used for creating sales orders. The rebates are stored as claims to the vendor or manufacturer in the MSR module. They are claimed to the manufacturer and are also reconciled back to approved or rejected claims.

Characteristics:

  • The rebates can be configured for a Manufacturer or a Group of Manufacturers. Manufacturer is the vendor entity in Microsoft Dynamics AX 2012.
  • The rebates can be configured for individual item, group of items, partial string matching an item, and by a category under which many items fall.
  • Rebates can be configured by the financial dimensions that match the dimensions on the sales line.
  • Rebates are date controlled by having effective start and end period. The sales orders shipped during the active life of the rebate program are eligible for rebates.
  • The rebates can have constraint based setup such as an allowed maximum quantity and allowed maximum amount. Once the maximum amount or quantity is claimed, the rebate is no longer active. It also has minimum constraints for quantity that is needed for it to qualify.

Rebate Types:

There are primarily four types of rebates as described below:

  1. Individual Item Type: Line or Bids.

This rebate has a specific bid price or calculation rule based on the price or bid of an item. The calculation rules can be based on percentage of price, or percentage of bid price provided by the manufacturer. Usually a bid file is integrated from the manufacturer that contains the latest bids and prices.

  1. Combination

Get a rebate on selling two or more items, forming a bundle.
E.g. A laptop with an external disk combo is eligible for $10. In this case, the amount would be split equally for both the products – i.e. $5 each.

  1. Mix and Match:

One item from every group must be sold to get the rebate.
E.g. If the setup of items is as below:

Mix and Match Group Items
A iPod
A Headphones
B Laptop

A laptop can be combined with either an iPod or headphones to be eligible for a rebate.  At least one item from group A and B must be present to qualify for a rebate.

  1. Buy X, Get Y Free:

Get item Y free with selling item X. Rebate is the cost price of Y.

Rebate Stacking:

Sometimes more than one promotion is given by manufacturers to promote their products during a holiday or through web promotions. This can be set up in the rebate module as a stack. Stacked rebates mean that more than one rebate can be applied to the product during a period of time. For instance, a web promotion that gives an additional 10% discount to the original bid price.

Optimistic Algorithm:

The rebates are always calculated based on the best combination to give the best price to the customers. A customer may place many items in a sales order and the rebates are calculated based on a single order. Some rebates are also configured to look at the past sales to that customer and then the price is decided accordingly. These are called tiers – where you can have promotions that have a minimum and maximum quantity to qualify. For example, a customer gets a 10% discount for the first 100 quantities, and after that 15% for the next 1,000 quantities. The calculation, when considered with the stacking and tiers, gives the best result to the customer.

The calculation is based on best fit algorithm. To understand this, let us use a scenario. The items on the sales order consist of Apple products, as shown below. There are two active rebates, R1 and R2, configured individually and in combination, respectively. R1 gives rebates to individual items, and R2 gives rebates for a combination of items if sold in combination.

Items master
Iphone4S
Iphone4G
IPad32
Sales Order
Items master Qty
Iphone4S 10
Iphone4G 20
IPad32 10
Rebate :R1 Line Type (individual based)
Items Amount
Iphone4S 10
Iphone4G 20
IPad32 10
Rebate :R2 Combo Type (bundles)
Items Amount
Iphone4S  
IPad32  

 

Bundled Rebate: 120
Sales Order
Item Qty Rebate Rebate Amt
Iphone4S 10 R2 600
IPad32 10 R2 600
Iphone4G 10 R1 200
IPad32 10 R1 300
Total rebate 1700

The best way to allocate the rebate to get the highest rebate would be allocating as many combinations as possible on the SO. Note that only 10 combination rebates can be reserved against the order as the IPAD32 is only 10 pieces on the SO. The remaining 10 pieces of IPAD32 can be given a rebate from R1 at $30 per piece.  Thus the above table shows how R1 and R2 are combined to fulfill the rebate of the sales order.

Now let’s make it more complex by making R1 and R2 stacked rebates. Say that R1 is a web promotion for a limited period. If the above sales order was to calculate based on stacking, the allocation would look like:

Sales Order
Item Qty Rebate Rebate Amt
Iphone4S 10 R2 600
IPad32 10 R2 600
Iphone4G 10 R1 200
IPad32 20 R1 600

Note that the IPad32 would fully use promotion R1 and overlap the promotion R2 as they are stacked. Thus the stacked rebate amount would be $2,000 and this is the best among both calculations, so this is allocated to the sales order.

EDI Support:

The rebates can be updated by EDI files. There are two types of files for each manufacturer: the bid file and the price file. The bid file contains the bid information for all the items to various customers, and the price file contains the net and list price of the items. These files are loaded periodically through the EDI feeds and are used as the basis of rebate programs. EDI staging tables and services are hosted by this module.

Estimate on a Sales Order:

The estimates of rebates are shown on the sales order through a service call. They can also be obtained in a third party application through a live web service hosted from Microsoft Dynamics AX. If the item is a type of bill-of-materials (BOM), the estimates of all its components are also shown, even if it has not been exploded.

Calculating and Processing the Claims:

The rebate claims can be calculated for shipments for a defined period. They can be recalculated if better known rebates are available. If the items are returned, this module will adjust the transaction and finally the vendor account.

The claims transactions can be reviewed and adjusted before submitting to the vendor. When the claims are ready for submitting to the manufacturer, a claim journal is created for all the claims that are ready. The amount is posted in a GL transaction to debit the vendor (AR linked customer) balance. The claims are extracted into a file at a claim location and shared with the manufacturer. Receivable and P&L postings are set up for review and posting when a claim is submitted. Offset to AR posing is user definable in the rebate module parameters. An AR customer is determined by an address book relationship to the manufacturer AP vendor form. There is full traceability from the financial journal to claim transactions and back.

Settlement:

The manufacturer gets the claim file and usually makes the payment that is captured in the payment journal. The claims can either be fully paid, partially paid, or rejected. They are reconciled based on input from the manufacturer. The manufacturer pays the claim either through AP credit or direct AR funding.

Payment per claim transaction information is imported from Excel and reconciled to claims submitted.  Short pays or denied claims can be written off by creating a write off journal.  Over pay can be written on by creating a write on journal to credit the vendor (AR customer). Short or denied claims can be marked to adjust the salesperson’s commission calculation accordingly.

If you have any questions on rebate functionality in Microsoft Dynamics AX, please email us at dynamics@ignify.com.

Parthav Patel is a Sr. Technical Analyst of Microsoft Dynamics AX and Michael Gabriel is a Sr. Solutions Architect of Microsoft Dynamics AX at Ignify. Ignify is a technology provider of ERPCRMeCommerce and Point of Sale software solutions to organizations. Ignify has won the worldwide Microsoft Partner of the Year Award in 2013, 2012 and 2011. Ignify has been included as the fastest growing business in North America for 7 years in a row by Deloitte, Inc Magazine and Entrepreneur Magazine from 2007 to 2013.

Make Your Pricing Strategy Competitive with Smart Rounding in Microsoft Dynamics AX 2012

Human psychology plays a vital role in people’s buying habits, and the price tag is the most important psychological barrier that prevents people from buying. Psychological pricing is a marketing/business concept which is used to influence the consumer’s buying power – customers respond better to certain type of prices, and they are more likely to buy with certain price levels. For example, psychological prices often end with a “9” – such as 99.99, 9999.99, 99,999.99, etc.

This pricing naturally does not have any real effect on the money that we are going to pay – if an item is $999.99, we are  essentially paying $1,000.00. But this kind of pricing affects the consumer’s buying behaviour in that it gives the consumer a different mind-set at first sight. When the customer sees an item priced at $10,000, it seems like quite a large amount; but seeing that item at $9,999.99 makes it feel less, or like we’re getting a bargain. That one penny difference can be a major determining factor in getting a customer to purchase.

Wherever we go, we see this psychological pricing: at clothing stores, grocery stores, electronics shops, etc. In fact, it is so common and widespread that most people don’t think twice about purchasing at these pricing levels.

The smart rounding concept in Microsoft Dynamics AX 2012 supports psychological pricing by allowing businesses to round sales prices of items by whatever specification they create. You can apply smart rounding after a bulk adjustment of trade agreements, or automatically apply it after a unit price is calculated, based on a generic currency and an exchange rate. By using smart rounding, you can make the market more ready to buy your products.

Set Up Smart Rounding

The smart rounding rules are static and rarely change; they are also currency dependent. This means that one currency can follow one set of rules and another currency can follow another set of rules. For example, all products for US Dollars (USD) end with 99 cents, and all products for Pound Sterling (GBP) end with 95 pence.

To set up smart rounding, follow these steps:

  1. Open Sales and marketing > Setup > Price/discount > Smart rounding.

    Navigation path for Smart Rounding

    Fig 1: Navigation path for Smart Rounding

  2. Click New.

    Click “New” to create a new Smart Rounding Rule

    Fig 2: Click “New” to create a new Smart Rounding Rule

  3. Type the Rounding version and Name into the appropriate fields.

    Enter the Rounding version and Name for the Smart Rounding Rule

    Fig 3: Enter the Rounding version and Name for the Smart Rounding Rule

  4. Click Add to create a new Smart Rounding Rule.

    Click “Add” to create a new Smart Rounding Rule

    Fig 4: Click “Add” to create a new Smart Rounding Rule

  5. Type the from and to price in the Unit Price From and Unit Price To fields.
  6. Type the syntax to be used for the smart rounding in the Syntax field.
  7. Enter the rounding limit points. Type the lower limit for rounding down in the Lower Limit field and type the upper limit for rounding up in the Upper Limit field.

    Enter different criteria for the Smart Rounding Rule

    Fig 5: Enter different criteria for the Smart Rounding Rule

  8. Repeat steps 4 through 7 to add more lines to the rounding rule.

    Enter separate lines for entering criteria for the Smart Rounding Rule

    Fig 6: Enter separate lines for entering criteria for the Smart Rounding Rule

  9. In the Rounding Version Members FastTab, click Add

    Click “Add” to select currencies for which the Smart Rounding Rule is applicable

    Fig 7: Click “Add” to select currencies for which the Smart Rounding Rule is applicable

  10. Click the Currency drop-down box and select the currency in which the smart rounding should apply.

    Add currencies for which the Smart Rounding Rule is applicable

    Fig 8: Add currencies for which the Smart Rounding Rule is applicable

Create Multiple Smart Rounding Rules

You can create multiple Smart Rounding Rules and select the multiple currencies in which the smart rounding should apply using the above steps.

Multiple Smart Rounding Rules

Fig 9: Multiple Smart Rounding Rules

Currencies for Multiple Smart Rounding Rules

Fig 10: Currencies for Multiple Smart Rounding Rules

Check Price with Smart Rounding Rule Simulation

You can check the price after rounding by entering a price in the Price Example Before Rounding field. You can view the rounding off price as per the Smart Rounding Rule in Price Example After Rounding field.

For example, I have entered the value 145.20 in the Price Example Before Rounding field, and the value according to the rounding rule is showing 149.99 in the Price Example After Rounding field.

Check price simulation with the created Smart Rounding Rule

Fig 11: Check price simulation with the created Smart Rounding Rule

Apply Smart Rounding Automatically

To apply smart rounding automatically after currency conversion, select the “Apply smart rounding after currency conversion” option. Find this option on the Prices tab in the Accounts receivable parameters form.

Select the “Apply smart rounding after currency conversion” option to apply smart rounding automatically

Fig 12: Select the “Apply smart rounding after currency conversion” option to apply smart rounding automatically

Apply Smart Rounding Manually

To apply smart rounding manually to a trade agreement, click Adjustment, and then Apply Smart Rounding on the journal lines, price/discount agreement form.

Apply smart rounding manually to a trade agreement

Fig 13: Apply smart rounding manually to a trade agreement

Example of Manual Smart rounding

Create a price/discount agreement journal in Sales and Marketing. In the journal lines, enter the value 145.20. Click Adjustment, and then Apply Smart Rounding on the journal lines.

Enter the trade agreement price in the journal lines and apply smart rounding manually

Fig 14: Enter the trade agreement price in the journal lines and apply smart rounding manually

The Smart Rounding Rule version NinetyNine (Unit price ending with .99) covers this, and when you apply smart rounding the price changes.

Price changes as per the Smart Rounding Rule when applied manually

Fig 15: Price changes as per the Smart Rounding Rule when applied manually

When you create a sales order with the item, the sales order line also populates with the smart rounded amount.

A sales order line populates with the smart rounded amount for an item

Fig. 16: A sales order line populates with the smart rounded amount for an item

Conclusion

Now you can use the smart rounding functionality in Microsoft Dynamics AX 2012 to break the psychological price barrier between your customers and your products, and make them eager to buy.

If you have any questions about how Microsoft Dynamics AX 2012 can help with your pricing processes, 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.

Check out Ignify Customers’ Microsoft Dynamics AX and Retail Sessions at Convergence

March 18th, 2013 Ashley Harbaugh No comments

With New Orleans being the headquarters of Microsoft Convergence this year, we knew the conference would kick off in style – and we were right! So many great speakers, exciting learning opportunities, and in-depth educational seminars – it’s hard to choose just one at a time.

If you’re having a hard time deciding which session to attend, we encourage you to check out some Ignify customer speaking sessions to get more insight into how our clients are using Microsoft Dynamics technology.

Microsoft Dynamics for Retail: Customer Panel

Date: Tuesday, March 19th, 2013
Time: 5:00 pm – 6:00 pm
Location: Ernest N. Morial Convention Center, Room 286
Ignify Customer Speaking: Lynda Barr, CFO of Edwin Watts Golf
Description:
Attend this interactive discussion to learn from dynamic retailers who are leveraging our solution for store systems, omni-channel, order management and more. We'll discuss their experiences and their vision for the future of retail.

Microsoft Dynamics for Retail: Delivering the Future of Retail Today – Strategy, Solution Overview, Next Generation Investments, & Customer Insights

Date: Wednesday, March 20th, 2013
Time: 9:00 a.m. – 10:30 a.m.
Location: Ernest N. Morial Convention Center, Auditorium B
Ignify Customer Speaking: Lynda Barr, CFO of Edwin Watts Golf
Description:
Microsoft Dynamics for Retail is the most widely available retail solution in the world today with complete omni-channel, store management, and mobility offerings. Come and learn our vision, investment priorities and roadmap. In addition, we’ll provide a preview of our investments on mobility and related client experiences, retail server and commerce runtime. 

Upgrading to Microsoft Dynamics AX 2012

Date: Wednesday, March 20th, 2013
Time: 9:00 a.m. – 10:30 a.m.
Location: Ernest N. Morial Convention Center, Room 293
Ignify Customer Speaking: Andre Vargas, IT Executive at Creative Artists Agency
Description:
Join us to learn more about upgrading to Microsoft Dynamics AX 2012. We'll walk through a model for planning and executing your Microsoft Dynamics AX 2012 data and code upgrade and we'll discuss the latest recommendations, features, tips and best practices for your data and code upgrade.

Microsoft Dynamics AX for Service Industries: Behind the Success Stories, Lessons Learned & Partnerships Formed

Date: Wednesday, March 20th, 2013
Time: 3:30 p.m. – 4:30 p.m.
Location: Ernest N. Morial Convention Center, Room 286
Ignify Customer Speaking: David Freedman, Director of IT at Creative Artists Agency
Description:
Implementation of new business applications is an inherently disruptive activity because they touch upon so many day-to-day user activities. Behind every success story are moments of uncertainty and stumbling blocks encountered–learning experiences that stakeholders may have been happy to do without. Join us for peer-to-peer sharing of insights earned the old fashioned way–on the job–with an emphasis on situations specific to professional services, AEC and media & entertainment industries.

Ashley Harbaugh is a Product Marketing Specialist at Ignify. Ignify is a technology provider of ERP, CRM, and eCommerce software solutions to businesses and public sector organizations. Ignify has been included as the fastest growing business in North America for 5 years in a row by Deloitte, Inc Magazine and Entrepreneur Magazine and ranked as one of 100 most innovative companies in the world in the Red Herring Global 100 in 2011.

Make Regulatory Compliance Easy for Process Manufacturing with Microsoft Dynamics AX 2012

January 30th, 2013 Partha Chattopadhyay No comments

Businesses in the process manufacturing industry are generally subject to varying degrees of regulation by regional, national, and global organizations, given the nature of the products they offer. Process manufacturing handles raw materials and finished product transactions that must be in compliance with each country's statutory and regulatory requirements. Additionally, transactions for certain products can be restricted in some states within a country.

When a sales order or purchase order is created, a user should secure the necessary compliance information for the product. For example, chemical and pharmaceutical manufacturers have a product safety data sheet (PSDS) for all raw materials and finished products. When the product data sheet expires or undergoes a revision, process manufacturers are responsible for updating it immediately, with the vendor and the customer.

Process Manufacturing in Microsoft Dynamics AX 2012 provides a rich toolset for food, drug and chemical manufacturers to manage products that must adhere to restricted and regulated environments.

This article describes how you can use Compliance Management features in Microsoft Dynamics AX 2012 to follow the necessary statutory requirements.

Definitions in Product Compliance

The following terms are used in product compliance:

Regulated product: An item is a regulated product if it is regulated by a government authority of a country and requires compliance and audit reporting compulsorily on a continuous basis. For example, if an Active Pharmaceutical Ingredient (API) manufacturer wants to sell Cefuroxime Axetil Amorphous in the United States, the manufacturer must obtain an approval from the United States Food and Drug Administration (USFDA) authorities.

Restricted product: A product is a restricted product if its distribution is limited or constrained by a government authority. For example, certain pharmaceutical drug products are prohibited in certain countries and could lead to disciplinary actions against the manufacturers.

Reported product: A reported product is a product that is regulated by the local and regional authorities. The manufacturer of reported products must agree to provide usage data for the product.

Product safety data sheet: A product safety data sheet (PSDS) is a brochure that contains handling, emergency and other related information about the product – for example, the flash point, or boiling point, of a substance.

Product Compliance Configuration Key

The prerequisite of product compliance functionality is the license for Process Manufacturing & Distribution.

Once you have adequate license, you must enable the product compliance key under Process Distribution from System administration > Set up > Licensing > License Configuration.

Configuration key for product compliance

Fig 1: Configuration key for product compliance

Setting Up for Product Compliance

The prerequisite setups for product compliance include the following:

Inventory and warehouse management > Setup > Inventory and warehouse management parameters > Product compliance

Product compliance set up in the Inventory and Warehouse Management parameters form

Fig 2: Product compliance set up in the Inventory and Warehouse Management parameters form

Parameters can be set up to receive warnings during following processes:

  • Purchase order entry
  • Sales order entry
  • Sales packing slip posting
  • Sales invoice posting

Parameters can also be set up to print the product safety data sheet.

Setup for Restricted Products by Regional Lists

Restricted products by regional lists need to be set up in Inventory and warehouse Management > Setup > Product compliance >Restricted products regional lists.

Restricted Products Regional lists form

Fig 3: Restricted Products Regional lists form

NOTE: If the number of regions in which the product is allowed is greater than
the number in which it is not allowed, set up an inclusion list for the country and
an exclusion list for provinces where it is not allowed. If the product and excluded region appear together on a sales order line, Microsoft Dynamics AX will produce a warning and prevent the sale.

Adding Restricted Products Regional lists form

Fig 4: Adding Restricted Products Regional lists form

Setup for Regulated Products by Regional Lists

Regulated products by regional lists need to be set up in Inventory and warehouse Management > Setup > Product compliance > Regulated products regional lists.

Material Reporting lists form

Fig 5: Material Reporting lists form

Adding Item in Material Reporting lists form

Fig 6: Adding Item in Material Reporting lists form

NOTE: If the product is only regulated in a country or region then it does not have to be marked as reported. However, if the usage data of a product needs to be reported, then it also needs to exist on a reporting list.

Setup for Product Safety Data Sheet (PSDS)

The default parameters, such as the validity interval and the expiry advice interval for product safety data sheets, can be set up in the Product Safety Data sheet form.

The product safety data sheet needs to be set up in Inventory and warehouse Management > Set Up > Product compliance > Product safety data sheet

Product safety data sheet form

Fig 7: Product safety data sheet form

NOTE: The number for the expiry advice days should be less than the number
for the validity in days.

Setup Archive Directory for Document Handling

The Archive Directory for document handling needs to be set up in Organization administration > Document management > Document management parameters. Select the location in Archive directory field of General tab.

Set up Archive Directory for document handling

Fig 8: Set up Archive Directory for document handling

Associate Product Compliance to Released Products

Associating product compliance to the released products consists of regulated products, the product safety data sheet, restricted products and reporting details.

A) Regulated Products in the Released Products Form

Entering and viewing the countries that require item reporting from can be set up in Product information management > Common > Released products> Manage inventory Action Pane > Compliance > Regulated products.

Countries that require an Item Reporting form

Fig 9: Countries that require an Item Reporting form

B) Regulated Products in the Released Products Form
Entering and viewing the product safety data sheet can be set up in Product information management > Common > Released products> Manage inventory Action Pane > Compliance > Safety data sheet.

Product safety data sheet form

Fig 10: Product safety data sheet form

Product safety data sheet attached from Document Handling

Fig 11: Product safety data sheet attached from Document Handling

C) Restricted Products in the Released Products Form
Entering and viewing the list of countries that are restricted for the item from can be set up in Product information management > Common > Released products> Manage inventory Action Pane > Compliance > Restricted products.

Restricted Products form

Fig 12: Restricted Products form

D) Reporting Details from Released Products Form
Additional information that is required by local or external regulatory authorities can be set up by printing the documents or sending the documents through email. If an item name that is defined by a regulatory body is referred from an external system, then all the product related information attached to such a name can be retrieved.

Product information management > Common > Released products> Manage inventory Action pane > Compliance > Reporting details.

Reporting Details form

Fig 13: Reporting Details form

The following list describes the terms and abbreviations used in the Reporting details form:

  • EPCRA: Emergency, Planning and Community Right-To-Know Act
  • CERCLA: Comprehensive Environmental Response, Compensation, and Liability Act
  • TSCA: Toxic Substances Control Act
  • TRI: Toxics release Inventory from United States Environmental Protection Agency
  • OSHA: Occupational Health and Safety Administration
  • EHS: Extremely Hazardous Substances

The following table describes the fields located in the Reporting Details form:

Field

Description

Item number

The identifier for the selected regulated item.

EPCRA name

Enter the product name to report under the Emergency Planning and Community Right to Know Act (EPCRA).

TSCA name

Enter the product name to report under the Toxic Substances Control Act (TSCA).

CERCLA name

Compensation, and Liability Act (CERCLA).

CERCLA reportable quantity

Enter the CERCLA quantity at which reporting is required.

TRI threshold

Enter the Toxic Release Inventory (TRI) threshold at which reporting is required under EPCRA.

Release determination

Enter free-form text that describes the release of TRI.

Usage

Enter free-form text that describes the use of TRI.

OSHA product name

Enter the product name to report under the Occupational Safety and Health Administration (OSHA).

OSHA threshold quantity

Enter the OSHA threshold at which reporting is required.

EHS reportable quantity

Enter the Environmental Health and Safety (EHS) quantity at which reporting is required under EPCRA.

EHS threshold planning quantity

Enter the EHS threshold planning quantity at which an emergency plan must be prepared under EPCRA.

On-hand quantity

The on-hand quantity for the item.

Yearly quantity

The item quantity that is manufactured or processed

produced

annually. The period used to calculate the quantity is based on the Start and End date parameters set up on the Product Compliance tab in the Inventory and warehouse management parameters form.

Yearly quantity used

The item quantity that was used annually. The period used to calculate the quantity is based on the Start and End date parameters set up on the Product Compliance tab in the Inventory and warehouse management parameters form.

Yearly production volume

The annual production volume for the item.

Item CAS Relations in Reporting Details Form

The Item CAS relations form is to record the chemical composition of regulated items that are stored under Chemical Abstract Service (CAS) numbers. For safety reasons, it is mandatory to create and maintain CAS item relationships to identify the active ingredients of certain chemicals to ensure proper first aid, storing and handling. Several safety related legal reports require the reference of CAS numbers for each item.

CAS number for an individual item in the Item CAS relations form from Product information management > Common > Released products> Manage inventory Action Pane > Compliance > Reporting details > Item CAS relations.

Item CAS Relations form

Fig 14: Item CAS Relations form

Validate the Product Safety Data Sheet Information in Purchase and Sales Orders

While working in process manufacturing, the product safety data sheets for all regulated products must be tracked. Checking the availability and validity of the product safety data sheet information is mandatory for the purchase and sales order of each item. Warning messages might be generated on the non-availability and expiration of the product safety data sheets in the purchase and sales order.

Procedure: Validate Product Safety Data Sheet Information in Purchase Order

To validate the compliance of the product safety data sheet in the purchase order, follow these steps:

  1. On the Navigation Pane, click Procurement and sourcing, go to Common, click Purchase orders and then click All purchase orders.
  2. Click the Purchase order button to create a new purchase order
  3. Select the vendor account.
  4. On the Purchase order lines select the item from the drop-down list, which is a regulated product.
  5. Press Ctrl+S to save the record. If the product safety data sheet is expired for the regulated product, the following warning message will be displayed: "Product safety data sheet is either not on file or has expired. Request a product safety data sheet for the product from the vendor".

    Warning message in purchase order form

    Fig 15: Warning message in purchase order form

    Product safety data expired

    Fig 16: Product safety data expired

  6. Create a new product safety data sheet in the Product safety data sheet form for the item and make it active.

     

    New Active Product Safety Data

    Fig 17: New Active Product Safety Data

  7. Click the Purchase Action Pane and then select Confirm to confirm the purchase order.
  8. Go to the Receive Action Pane, and then click Product receipt.
  9. Under the Parameters field group enter the ordered quantity as the Quantity.
  10. Enter the Product receipt number and then click OK.

A warning message can be generated that will ask for a product safety data sheet from the vendors, by setting up the necessary parameter in the Inventory and warehouse management parameters form. A warning message can be generated for the expiry advice internal and the expiry of the product safety data sheet for each item.

Procurement and sourcing > Common > Purchase orders > All purchase orders > Purchase orders lines > Inventory > Product safety sheet log

Product safety sheet log

Fig 18: Product safety sheet log

Procedure: Validate Product Safety Data Sheet Information the Sales order

To validate the compliance of the product safety data sheet in the sales order,
follow these steps:

  1. On the Navigation Pane, click Sales and marketing, go to common, click Sales orders and then click All sales orders.
  2. Press the New button to create a new sales order record.
  3. Select the customer account
  4. On the Lines tab enter the Item number that is a regulated product.
  5. Press Ctrl + S to save the sales order line. NOTE: Because this is a regulated product, the following Infolog message will display “Please deliver the latest product safety data sheet to the customer.”

     

    Warning message in a sales order line for the regulated product

    Fig 19: Warning message in a sales order line for the regulated product

  6. Click the Inventory button and select the product safety data sheet. If required, create a new product safety data sheet and attach it to the document.
  7. Close the Product Safety Data Sheet (PSDS) form.
  8. Click the Pick and pack Action Pane and select Packing slip.
  9. Under the Parameters field group, enter All as the Quantity.
  10. Select the Print product safety data sheet check box to print the product safety data sheet with the packing slip. Click OK. This should print the PSDS document only the first time this item is shipped to this customer for an active document. Proper setup of print functionality and document handling is required.
  11. Click the Posting button and select Invoice.
  12. Under the Parameters field group enter the Packing slip as the Quantity.
  13. Click OK.
  14. Click Inventory and select the product safety data sheet log. The correct document shows in the log and the last sent date is updated.

     

    Product safety sheet log

    Fig 20: Product safety sheet log

  15. Close the Infolog and close the Sales order form.

Procedure: Control delivery of restricted Items in restricted regions

To validate control delivery of restricted items in restricted regions through the sales order, follow these steps:

  1. On the Navigation Pane, click Sales and marketing, go to common, click Sales orders and then click All sales orders.
  2. Press the New button to create a new sales order record.
  3. Select the customer account.
  4. On the Lines tab enter the Item number that is a restricted to the Delivery address of the Customer selected.
  5. Press Ctrl + S to save the sales order line. A warning message popped up saying, “Product ####' is restricted for sale to the delivery address on the sales line. Change the address or the product”.

    Warning message showing Item is restricted in Delivery address

    Fig 21: Warning message showing Item is restricted in Delivery address

    Set up for Restricted Products in released product form

    Fig 21: Set up for Restricted Products in released product form

Conclusion

By using Microsoft Dynamics AX 2012 to configure regulated and restricted products, process manufacturers can now easily meet product compliance regulations. Manufacturers should also note that it helps to maintain the validations required to update the product safety data sheet information, while performing purchase and sales order entries.

Most uniquely, Microsoft Dynamics AX 2012 controls delivery of restricted items in restricted regions automatically, saving companies on time and resources, and also preventing delivery issues from occurring.

If you have questions about how Microsoft Dynamics AX 2012 can help your process manufacturing practice, 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.