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TECHNICAL CONFERENCE 2011
LEARN | INSPIRE | INNOVATE
SESSION CODE : BRK241
MANAGING THE ACCOUNTS RECEIVABLE
PROCESS FROM INVOICING TO PAYMENTS
TO COLLECTIONS
KRISTI WEEKLEY
SENIOR PROGRAM MANAGER
MICROSOFT CORPORATION
DISCLAIMER
©2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks
and/or trademarks in the U.S. and/or other countries. Other names and brands may be claimed as the property of others.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation.
Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and
Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. All pre-release product release dates and
features specified are preliminary based on current expectations, and are subject to change without notice. Microsoft may make changes to
specifications and product descriptions at any time, without notice.
Sample code included in this presentation is made available AS IS. THE ENTIRE RISK OF THE USE OR THE RESULTS FROM THE USE OF THIS CODE
REMAINS WITH THE USER.
MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. NO LICENSE, EXPRESS OR
IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPERTY RIGHTS IS GRANTED BY THIS PRESENTATION. Microsoft products are not
intended for use in medical, life saving, or life sustaining applications.
Today we will show you…
Free text invoice document enhancements
Free text invoice corrections
Recurring free text invoices
Settlement by line and settlement priority
Collections
Components in action today
Pains and challenges
Susan, Sales clerk
• Would like more flexibility to enter quantities and prices on free text invoice lines
• Prefers to distribute revenue on free text invoices to multiple organizational units on the individual line, rather
than requiring multiple lines on the invoice
Arnie, Accounts receivable clerk
• Customers call him to correct and reissue invoices, which is a time consuming, manual process
• Bills customers manually for recurring items like subscriptions and maintenance fees
• Wants more control of the settlement process
Connie, Collections manager
• Struggles to organize all the information needed to manage collections
• Needs to document communications and actions taken with customers
• Spends too much time searching for information
• Needs flexible interest calculations and tools to assess and waive fees
E2E Process : Product Demo (How to Use the Feature)
E2E Name : Order to Cash
DEMO 1: Free text invoice entry
enhancements
•
•
•
•
Quantity and unit price
Accounting distributions
Recurring invoices
Invoice corrections
DEMO 2: Settlement enhancements
• Line level settlement
• Settlement priority
Apply
payments
DEMO 3: Collections
• Collection agents
• Interest charges
• Collections list page and details
When to use this feature
• Quantity/price on Free text invoice line
– More detail is required for free text invoice line
• Accounting distributions
– Necessary to split the revenue across multiple financial dimensions
– No interaction with accounting distributions required if ledger
accounts defaults, split is not required or if using financial
dimension default templates
When to use this feature
• Recurring free text invoices
– Useful for service, fee-based, or subscription invoices required to
send to customers on a recurring basis
• Free text invoice corrections
– Customer wants invoice corrections represented in a new invoice
with correct amounts instead of adding an adjustment invoice
– After invoice is journalized, but possible even after settlement of the
invoice has occurred
Demo 1: Free text invoice enhancements
Persona
Pain Points and Challenges
Susan
Would like more flexibility to enter quantities and prices on free text invoice lines
Prefers to distribute revenue on free text invoices to multiple organizational units
on the individual line, rather than requiring multiple lines on the invoice
Arnie
Customers call him to correct and reissue invoices, which is a time consuming,
manual process
Bill customers manually for recurring items like subscriptions and maintenance
fees
demo
Free text invoice enhancements
Demo 1: Free text invoice enhancements
Persona
Susan
Arnie
Features Covered
Results and Benefits
Quantity and unit price
Accounting distributions
More flexibility to utilize the quantity and unit price on the
free text invoice line, if necessary
Operations now determines how the lines are entered on
the free text invoice rather than the accounting
Recurring invoices
Invoice corrections
Correction of a free text invoice is more automated, which
eliminates errors when making the correction
Maintains audit trail between original, cancelling, and
correcting invoices.
Huge time savings for creating and generating recurring
invoices.
When to use this feature
• Centralized payments
– Added in Microsoft Dynamics AX 2009
– AX 2009 required a virtual company to
define the centralized payments
boundary
– Organization hierarchies replace the
virtual company structure in Microsoft
Dynamics AX 2012
When to use the Feature
• Line-level settlement
– More targeted application of payments
– Customers only pay for lines that are undisputed
• Settlement priority
– Settlement of specific invoice/payment is not required
– Default order of automatic settlements doesn’t meet business
requirements
Demo 2: Settlements
Persona
Arnie
Pain Points and Challenges
Wants more control of the settlement process
demo
Settlements
Demo 2: Settlements
Persona
Arnie
Features Covered
Line-level settlement
Settlement priority
Results and Benefits
Ability to define which invoice line is paid, such
as when the invoice contains large-tickets items
or disputed lines
Ability to customize the settlement priority
based on your business requirements, rather
than the priority determined by the system
Concepts and Definitions
Organize the
collections process
Enable action
Combine CRM and
A/R features
• Bring together customer
information, transactions, and
activities in one place
• Log activities
• View and create activities
• Write off transactions
• Manage agents and assign
pools
• Assign transactions and
activities to cases
• Settle transactions
• Collections form contains
information from 14 forms and
connects to 31 forms
• Attach documents
• Create e-mails to customers
with optional spreadsheets
attached
• View contact information
When to use the Feature
• Customer pools and collection agents
– Useful for organizations that create groups of customers, and have collection
agents responsible for an individual group/groups of customers
– Optional
• Interest code enhancements
– Complex requirements for calculation of interest
• If interest charges change, use date effectivity
• Charges include min/max amounts
Demo 3: Collections
Persona
Connie
Pain Points and Challenges
Struggles to organize all the information needed to manage collections
Needs to document communications and actions taken with customers
Spends too much time searching for information
Needs flexible interest calculations and tools to assess and waive fees
demo
Collections
Demo 3: Collections
Persona
Connie
Features Covered
Customer pools
Collection agents
Interest codes
Collections list page/detail form
Results and Benefits
Having the necessary information at your fingertips rather than wading through complex
navigation
Detailed history of contact with customers, both
for collections and other purposes, within AX
rather than multiple locations (AX, desk, email,
etc)
Minimize time required to collect on outstanding
invoices
Top 10 Tips from the Session
1. The following functionality was added to the free text invoice, but not the
customer invoice:
a) Corrections
b) Recurring invoices
c) Line level settlements
d) Accounting distributions and subledger journal entries
2. If the revenue on a free text invoice is commonly split between the same
financial dimensions, use financial dimension templates to speed up invoice
entry.
Top 10 Tips from the Session
3. Clear the quantity and unit price values from the free text invoice line if they
aren’t required on the printed invoice.
4. Enable the free text invoice corrections through a configuration key and linelevel settlement through an AR parameter.
5. Corrections:
a) Use the free text invoice corrections process to generate a credit memo for
the full amount of the original invoice and a new correct invoice.
b) Use the free text invoice to manually create an invoice for the delta
between the original invoice and the correct invoice amount.
Top 10 Tips from the Session
6. Assign icons to the aging buckets for an ‘at a glance’ review of customer’s
balances.
7. Create customer pools to filter the list of customers for each collection agent.
8. Utilize the collection details form to organize notes, emails, documents, or any
communication with the customer to increase the efficiency of your collection
agent(s).
9. From the collections detail form, view the activities documented through
collections and Sales and marketing to gain a full picture of communications
with customers.
10. Adjust the write off amount for a customer or customer invoice through the
general journal entry that is created for the write off.
Related sessions
• BRK228: Managing Financials with Microsoft Dynamics AX 2012
• BRK237: Deep Dive into Microsoft Dynamics AX 2012 Financial
Foundations
Q&A
Visit our Focus Rooms
Risso 6A/B
Risso 6C
Risso 7A
Risso 7B
Risso 8A
•
Evaluation of Implementation
Proposals by Dynamics AX R&D
Solution Architecture & Industry
Experts
•
Gain further insights on Dynamics
AX Industry Solution Offerings
•
Resolution Guidance on Solution
Roadblocks
•
Networking
© 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows 7 and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions,
it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation.
MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.