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TECHNICAL CONFERENCE 2011
LEARN | INSPIRE | INNOVATE
SESSION CODE : BRK237
DEEP DIVE INTO MICROSOFT
DYNAMICS AX 2012 FINANCIAL
FOUNDATIONS
MANOJ SWAMINATHAN
KRISTI WEEKLEY
MICROSOFT DYNAMICS R&D
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…
Financial dimensions
Account structures
Accounting distributions
Subledger journals
Components in action today
Pains and challenges
Sara, CFO
• Wants more dynamic measures to provide better financial insight and control to enable her to make more
confident decisions
• Needs an efficient way to define and enforce corporate policies
Phyllis, Accounting Manager
• Needs to easily provide the financial information Sara and Ken require
• Requires more control to enforce accounting rules without burdening the operational side of the business
• Minimize the number of month-end adjusting entries through general journals
Alicia, Purchasing Manager
• Would like to enter a document based on operations process rather than dictated by accounting of the
document
• Process a document more quickly
Nandita, In-house Developer
• Creates frequent customizations based on feedback from users
• Performs the data upgrade between releases, and needs to be informed of and understand upgrade
decisions
Concepts: Financial dimension framework & COA
DEMO 1: Financial dimensions
Main account
template
Financial
dimensions
Account
structure
Chart of
accounts
Ledger
• How to add a new entity to the list of financial
dimension entities
• Calculating balances using financial dimension
sets
• Restricting dimension values to legal entities
DEMO 2: Account structures
• Integration of organizational hierarchy to
account structures
Advanced
rule structure
Companyspecific
attributes
Dimension
sets
Alias
When to use the feature
• Financial dimensions: New install
– No out-of-box financial dimensions
• Evaluate business requirements to determine financial reporting needs
• Create 0 to many financial dimensions based on financial reporting
requirements
• Use entities within AX to minimize maintenance of dual lists
When to use the feature
• Financial dimensions: Upgrade
– Prior to upgrade, evaluate the dimension values to determine which
values/descriptions to ‘bring forward’
• 10 Finance
• 10 Admin
• 10 Finance
– After upgrade, create additional dimensions at any point if business
requirements necessitate new dimensions
When to use the feature
• Account structures: New install
• Required to have one account structure to define which dimensions are valid
for a range of main accounts
• All: All, then Department, Cost center
• Balance sheet: 1000–3999, then Department
• Profit and loss: 4000–9999, then Department, Cost center
• Optional to use the account structures to define which main account and
dimension value combinations are valid
• If main account 606300, then Department 100; 105
• If main account 606400, then Department 101; 102
• Don’t reinvent the wheel: Select existing organizational hierarchy when
defining account structure
When to use the feature
• Account structure: Upgrade
– Evaluate AX 2009 data prior to upgrade:
• If budget transactions exist in AX 2009, one account structure is created
with the financial dimensions
• Each dimension hierarchy becomes an advanced rule structure on the
account structure
• The advanced rule structure will be labeled with the dimension hierarchy
name in AX 2009
When to use the feature
• Financial dimension sets
– Required for calculation of balances for main account/dimension values
Demo 1: Financial dimensions and Account structures
Persona
Nandita
Phyllis
Sara
Pain Points and Challenges
Creates frequent customizations based on feedback from users
Performs the data upgrade between releases, and needs to be informed of and
understand upgrade decisions
Needs to easily provide the financial information Sara and Ken require
Needs to easily provide the financial information Sara and Ken require
Requires more control to enforce accounting rules without burdening the
operational side of the business
Wants more dynamic measures to provide better financial insight and control to
enable her to make more confident decisions
demo
Financial dimensions and
Account structures
Demo 1: Financial dimensions and Account structures
Persona
Nandita
Phyllis
Features Covered
Results and Benefits
Financial dimensions –
Adding new entity for
financial dimensions
Any entity with a surrogate and a natural key can be added to
the list of entities which can be used as a financial dimension,
which will eliminate redundant lists
Financial dimension
values per legal entity
Financial dimension sets
Allows the user to better determine which combination of
main accounts and financial dimensions require a balance to
be calculated
Greatly improves performance by not calculating balances for
every combination
Gives user control over when to calculate balances
Determine values available for each legal entity through either
the account structure or the legal entity–specific settings
Demo 1: Financial dimensions and Account structures
Persona
Sara
Features Covered
Account structures and
organizational
hierarchy
Results and Benefits
Not required to maintain two separate hierarchies
Faster implementation of the dimension rules through
usage of existing rules
Financial dimension rules will be updated automatically
based on changes to the organizational hierarchy
Concepts: Source document and accounting frameworks
Operations
Accounting
What Did We Do in this Release?
Source document
framework
Accounting framework
When to use the feature
• Accounting distributions
– If an amount needs to be split across financial dimensions, use the accounting
distributions rather than creating more than one line on the document
When to use the feature
• Level of interaction
– Usage of posting profiles and default financial dimensions
– How often an amount is split across financial dimensions
• Financial dimension templates minimize frequency
– Whether document results in an accounting entry
– Knowledge of person entering the document for how the amount should be
split across financial dimensions
When to use the feature
• Sub-ledger journal
– Useful for an approver to validate the accounting entry generated for a document prior to
journalizing in the subledger
– Created for source documents that always generate a general ledger entry:
• Vendor invoice
• Free text invoice
• Expense report
– Created based on accounting rules for the source document:
• Purchase requisition – If pre-encumbrance process is enabled
• Purchase order – If encumbrance process is enabled
• Product receipt – If accruing liability on product receipt
When to use the feature
• Accounting rules
– Values used for summary accounts:
• Source document: Centralized processing scenario, AX 2009 functionality
• Accounting distributions: AR/AP to be broken out to the same financial
dimension values as the expense/revenue/asset
– Batch transfer rules:
• Batch or asynchronous: Document doesn’t require immediate posting to GL,
reduces time for processing
• Summary: To minimize the quantity of account entries made into general
ledger
Demo 2: Vendor invoice using frameworks
Persona
Alicia
Phyllis
Pain Points and Challenges
Would like to enter a document based on operations process rather
than dictated by accounting of the document
Process a document more quickly
Minimize the number of month-end adjusting entries
Poor visibility into the accounting impact of a document prior to
journalizing
Too much data in general ledger
demo
Vendor invoice
using frameworks
Demo 2: Vendor invoice using frameworks
Persona
Alicia
Phyllis
Features Covered
Results and Benefits
Accounting
distributions
Templates
Batch transfer rules
Operations determines how to record a document
Automatic split of accounting distributions results in
faster data entry
Improved responsiveness results in faster data entry
Subledger journal
Batch transfer rules
Ability to preview the accounting of a document allows
for early validation and reduces coding mistakes
Summarized general journal, reduces database size
Top 10 Tips from the Session
1. Add your own entity to the financial dimension list of entities with only 4 lines of
code
2. Validate your dimension sets to ensure balances are calculated after upgrading
3. Use the rules defined in the organizational hierarchy for the account structure
rather than reinventing the wheel
4. Evaluate your financial dimension values prior to upgrade to see if you need to
renumber any values in order to avoid conflicts
Top 10 Tips from the Session
5. Prior to upgrade, weigh the pros/cons of removing the account hierarchy in
order to better utilize the account structure in AX 2012
6. Determine whether you want the AR/AP ledger accounts to use financial
dimensions from the document header or the accounting distributions (through
GL parameters)
7. Change the batch transfer rules to summary if you would like to reduce the
quantity of data in GL
Top 10 Tips from the Session
8. Transfer your subledger journal entries to GL using either async or batch to
improve the system’s responsiveness when journalizing
9. Leverage financial dimension templates to enter documents more quickly
10. Use the accounting distributions functionality on the PReq or PO to save April
time when entering the vendor invoice
Related sessions
• BRK228: Managing Financials with Microsoft Dynamics
• BRK239: Budgetary Control and Commitment Accounting
• CHK205: Financial Data Architecture Q&A
• CHK207: Financial Distribution Q&A
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
Focus Topic Highlight
Business Intelligence
Tuesday 2.15pm – 5.45pm
Risso 6C
© 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.