AX2012 ENUS FINII 06

Chapter 6: Advanced Payments CHAPTER 6: ADVANCED PAYMENTS Objectives The objectives are: • Create and process a bridging account method of payment • Set up and process electronic vendor payments • Set up and process electronic customer payments • Set up and process centralized payments • Set up and process prepayments • Set up and process bills of exchange • Set up and apply ledger accruals Introduction This course describes the processing and setup of advanced customer and vendor payments in Microsoft Dynamics® AX These advanced payments include the following: • Bridging accounts • Electronic payments • Centralized payments • Bills of exchange • Prepayments Also included are several of the options that available when you set up a method of payment, and how to use the ledger accrual functionality to defer costs or income throughout the year Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 6-1 Financials II in Microsoft Dynamics® AX 2012 Bridging Accounts Post a vendor payment either: • Directly to the final bank account • Using a bridging account for a two-step posting In the first step of the two-step posting you should the following: Post the payment to a temporary account or a bridging account This means the payment is recorded on the vendor account as usual, but the offset account is the bridging account instead of the bank account Posting to a temporary or bridging account makes the reconciliation of the bank account less time-consuming because the transactions recorded by the company but not yet recorded by the bank are not included in the reconciliation Those transactions are temporarily posted to the bridging account The second step of the two-step posting occurs when a company receives notification from the bank that indicates the payment is completed In the second step, reverse the posting on the temporary account and post the payment to the bank account Scenario Contoso uses bridging accounts for customers who pay by check They make a temporary posting until the bank confirms the check is valid and the money is posted on the bank account When Contoso receives confirmation from the bank, Contoso makes the final postings and reverse the postings to the bridging account Procedure: Create a Bridging Account Method of Payment Follow these steps to create a method of payment for bridging accounts: Click Accounts payable, click Setup, click Payment, and then click Methods of payment Click the New button to create a new line, and enter an appropriate identifier, for example, Bridging, in the Method of payment field In the Period list, select the period when the invoices in automatic payment proposals are combined: o Invoice - One payment transfer is created for each invoice o Date - All invoices for a vendor (or customer) with the same due date are combined o Week - All invoices for a vendor (or customer) with a due date in the same week are combined o Total - All invoices for a vendor (or customer) are combined into one payment 6-2 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 6: Advanced Payments In the Description field, enter a name or short description for the method of payment In the Grace period field, if applicable, enter the number of days the customer is enabled a cash discount after the specified period In the Payment status field, enter a payment status that is required to post this with this method of payment An example would be approved FIGURE 6.1 METHODS OF PAYMENT FORM Procedure: Assign a Payment Type In the Payment type field select one of the following payment types: • None - This method of payment is none of the other choices or is not yet assigned This is the default value • Check - The method of payment is a check • Electronic payment - The method of payment is electronic, such as electronic funds transfer (EFT) When this payment type is used, the system performs bank validations that are skipped if you use other payment types • Promissory note - The method of payment is a promissory note Procedure: Allow Copies of Payments Select the Allow Copies check box to allow users to print non-negotiable copies of payments for the selected method of payment Users might need to print copies of payments to resolve payment disputes, or to let vendors know which invoices were paid on a particular date Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 6-3 Financials II in Microsoft Dynamics® AX 2012 File Tracking On the General tab, the File tracking fields allow the user to track the number of the last file that was sent, the number of the last file that was sent on the system date (usually today's date), and the date of the last count of file numbers Procedure: Create a Bridging Account Method of Payment - Posting Follow these steps to define the posting options for the bridging account method of payment: From the Methods of payment form, in the Posting area, select Bank in the Account type list In the Payment account list, select the bank account where the invoice amount will be deducted from This account is used in the final posting Select the Bridging posting check box to start bridging accounts In the Bridging account list, select a ledger account for the intermediate posting The first posting will post to the General Ledger and not the bank account NOTE: You can use bridging accounts for all vendor payments, both manual and electronic Procedure: Assign the Bridging Method of Payment to a Vendor After you create a bridging method of payment, you can assign it to a vendor Alternatively, you can assign it for each transaction Follow these steps to assign the bridging method of payment to a vendor: Click Accounts payable, click Common, and then click All vendors Double-click on the vendor line to open the vendor account form Click the Payment FastTab In the Method of payment list, select the bridging method of payment 6-4 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 6: Advanced Payments Procedure: Process Step of a Bridging Account Payment Follow these steps to complete the first step in the two-step process of posting to a bridging account Post the payment to a temporary account or a bridging account Click Accounts payable, click Journals, click Payments, and then click Payment journal Enter a payment to the vendor Select a vendor with a bridging method of payment or select the bridging method of payment in the Journal voucher form When you select a bridging method of payment, the offset account automatically becomes the designated bridging account, and the journal then posts as any other journal Post the payment journal Procedure: Process Step of a Bridging Account Payment Follow these steps to complete the second step in the two-step process of posting to a bridging account Reverse the posting on the temporary account and post the payment to the bank account Click General ledger, click Journals, and then click General journal When you post from the bridging account to the bank account, create a new journal or use an existing journal Click the Lines button Enter the information Click the Functions button, and then click Select Bridged transactions In the Select bridged transactions form, highlight the appropriate transaction, and then click the Accept button to transfer the bridged transactions to the journal lines Post the journal The offset account in this transaction is the bridging account instead of a bank account The posting reverses the transaction on the bridging account and charges the bank account Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 6-5 Financials II in Microsoft Dynamics® AX 2012 Lab 6.1 - Bridging Accounts During this lab you will review bridging accounts setup Scenario Ken, the Controller at Contoso, informs April, the Accounts Payable Coordinator, that vendor 2003, Wingtip Receivers, must be set up to post through a bridging account He asks April to review the posting setup for the bridging account and the vendor and make any necessary changes Challenge Yourself! Help April with Ken's request Need a Little Help? • Review the bridging method of payment • Review the posting setup for vendor 2003 • Make any necessary adjustments Step by Step Follow these steps to review the bridging method of payment Click Accounts payable, click Setup, click Payment, and then click Methods of payment Click the line for the bridging method of payment Expand the General FastTab Note the contents of the fields in the Posting area Verify that the Bridging posting field is selected and there is an entry in the Bridging account field Close the form Follow these steps to review the posting setup for vendor 2003 and assign the bridging method of payment to the vendor Click Accounts payable, click Common, click Vendors, and then click All Vendors Double - click the line for vendor 2003, and then expand the Payment FastTab Click the Edit button on the Action Pane In the Method of payment field, click the arrow to select the BRIDGING Method of payment Close the form 6-6 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 6: Advanced Payments Electronic Vendor Payments Use electronic vendor payments to electronically direct pay vendors from Microsoft Dynamics AX Paying vendors electronically saves the business money for each payment when you compare it to printing checks, and it is a fast and efficient way to handle payments You can use electronic vendor payments for the following: • Domestic payments • Foreign payments • Payments in multiple business units that are spread across different countries When you work with electronic vendor payments, consider the following issues: • How to set up Microsoft Dynamics AX for electronic vendor payments • How to process electronic vendor payments Scenario Several times Contoso experienced either checks lost in the mail when paying vendors or time-consuming payment handling processes To cope with the missing checks and slow payment processing, Contoso decides to implement electronic payments to vendors The advantages are as follows: • Electronic payments help promote a more secure payment method Paper checks can be lost, stolen, or delivered to the wrong address When money is electronically paid to the account, it cannot go astray • Electronic payments are more efficient and, electronic vendor payment is deposited directly into a bank account This saves days of processing and delivery time Electronic Vendor Payments Setup Overview The following setup steps are necessary for electronic vendor payments: • Set up of bank accounts in the Bank Management module • Set up of vendor bank accounts • Set up of methods of payment in the Accounts Payable module Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 6-7 Financials II in Microsoft Dynamics® AX 2012 Procedure: Configure Bank Accounts Before you process any electronic vendor payments, determine which bank accounts to use for payments NOTE: To learn more about how to set up bank accounts, refer to the "Cash and Bank Management" courseware Follow these steps to further configure your bank account for electronic vendor payments: Click Cash and Bank Management, click Common, and then click Bank accounts Click the bank account to use for electronic vendor payments and set up the appropriate detail using bank account details FIGURE 6.2 BANK ACCOUNTS FORM Procedure: Assign Bank Accounts to Vendors Follow these steps to assign a default bank account to a vendor: Click Accounts payable, click Common, and then click All Vendors Double- click on a vendor line Click the Payment FastTab In the Bank account list, select a default bank account Follow these steps to assign several bank accounts to a vendor: From the Vendors account form, click the Setup Bank accounts button Click the New button to create a new record 6-8 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 6: Advanced Payments In the Bank account field, enter the number that identifies the vendor bank account In the Name field, enter the name that is used to identify this account Select the Bank group from the list Enter the number that the bank uses to identify itself in the Routing number field In the Bank account number field enter the bank-assigned account number for the vendor Procedure: Set Up Methods of Payment Most of the method of payment setup is necessary for any payment method, not merely for electronic payments Therefore, only options that you can use specifically for electronic payments are explained here Refer to the Financials I courseware for general method of payment setup information Follow these steps to configure methods of payment specifically for electronic payments: Click Accounts payable, click Setup, click Payment, and then click Methods of payment In the Payment status list, select the stage when the payment journal can post For electronic payments, the status usually is set to Approved In the Account type and Payment account lists, select the values that default into the payment journal as an offset account when the particular method of payment is used For electronic payments, the account type must be Bank, or you must specify a Bank transaction type that relates to electronic payments to help with reconciliations NOTE: The fields in the File area are updated automatically They record all the export files that are created for this method of payment Procedure: Set Up Methods of Payment - File Formats Follow these steps to configure file format options for methods of payment specifically for electronic payments: From the Methods of payment form, click the File formats FastTab Click the Setup button to locate all the bank file formats currently available From the list, select to use Export or Return formats Some bank file formats support a payment specification This depends on the bank Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 6-9 Financials II in Microsoft Dynamics® AX 2012 Procedure: Set Up Methods of Payment - Payment Specification Use the payment specification when the file format supports different methods of payment, for example, domestic transfer, international transfer, and so on File formats are country and bank specific Follow these steps to enter payment specification information for methods of payment specifically for electronic payments: From the Methods of payment - Vendors form, click the Payment specification button In the Payment specification field enter the code for the payment method This indicates the payment level that is to follow a money transfer for a vendor payment The financial institution that performs the payment transfer determines which codes are available In the Description field, enter a description of the payment specification code In the Export format field, select a file format The file formats are available only for the export and return formats related to the banks that support payment specifications Process Electronic Vendor Payments Overview You can divide the processing of electronic vendor payments into the following steps: 6-10 Select vendor invoices for payment Generate electronic payments Receive confirmation from the bank Post payments Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Financials II in Microsoft Dynamics® AX 2012 11 Select the Mark check box for the open transaction from the invoice, and then close form Or, you can click the Payment proposal button on the tool bar (expand options), and then click Proposal by due date to select the transactions to transfer 12 If the remittance includes a payment fee, this is displayed or can be selected on the Payment fee tab 13 Click the Functions button, and then click Generate remittance to generate and print the payment file for the bank The field Payment status on the journal lines is therefore set to Sent on the generated transactions It is also possible to manually set the status to Sent by clicking the Payment Status button and selecting Mark the payment as sent 14 Click the Post button, and then click Post the remittance bill of exchange journal Notice that transactions must not be partially settled in remittance journals When you post remittances for discount, the following entries are generated in General Ledger: Debit Credit Remit for discount account Bill of Exchange account Ledger account for bank used Liabilities for discount account Note that when remittance for collection posts, the following entries are generated in General Ledger: Debit Credit Remit for collection account Bill of Exchange account NOTE: If several transactions are selected for settlement in the Settle open transactions form with various due dates, the latest is selected for all transferred transactions If several transactions are selected through the Payment proposal button, and then Proposal by due date, the date entered in the Date of payment field is selected for all transferred transactions and overrules due date If several transactions are selected for settlement with various methods of payment, all marks are removed 6-36 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 6: Advanced Payments Procedure: Bill of Exchange - Settle Follow these steps for the final settlement of the Bill of Exchange to occur in this journal: Click Accounts receivable, click Journals, click Bill of exchange, and then click Settle bill of exchange journal Click the New button to create a new record Click the Name arrow, and then click ARBOE_S Click the Bill of exchange tab Click the Remittance type arrow, and then click Collection Click the Bank account arrow, and then click USA OPER Click the Lines button Click the Payment proposal button, and then click Proposal by Due date In the Customer payment proposal form, click the Status arrow, and then click Remitted 10 Click OK to run the payment proposal 11 Click the Post button, and then click Post settle bill of exchange journal When a Bill of Exchange remitted for discount is settled, the following entries are generated in General Ledger: Debit Credit Liabilities for discount account Remit for discount account When a Bill of Exchange remitted for collection is settled, the following entries are generated in General Ledger: Debit Credit Ledger account for the bank used Remit for collection account Procedure: Close Settled Bill of Exchange in Remittance File Follow these steps to change the status from Honored bills to Honored closed bills in Bill of Exchange statistics: Click Accounts Receivable, click Setup, click Payment, and then click Methods of payment Select the Remittance files for customers button Click the Status tab Select the Closed field Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 6-37 Financials II in Microsoft Dynamics® AX 2012 Procedure: Protest a Settled Bill of Exchange In certain cases you must protest and reopen an honored Bill of Exchange Do this in the Protest of Bill of Exchange journal by following these steps: Click Accounts receivable, click Journals, click Bill of exchange, and then click Protest bill of exchange journal Click the New button to create a new journal Click the Bill of exchange tab Select either Discount or Collection for the Remittance type, and then select the Bank account that was used when settling the bill of exchange Select the Protest settlements check box to transfer settled bills of exchange to the journal lines Select whether to create the new lines as open payments or as invoices Click Lines Select the customer Account for the invoice that corresponds to the bill of exchange that is being protested Click Functions, select settled bills of exchange to open the Protest settled bills of exchange form On the Overview tab, select a transaction, and then close the form 10 On the Overview tab in the Journal voucher form, enter an offset account 11 Click the Bill of exchange tab 12 In the Protest cause field, select the reason for protesting the bill of exchange 13 Click Post, and then click Post the protest bill of exchange The protested bill of exchange and a related line with a status of Protested and a sequence number of or greater is shown in the Bill of exchange journal inquiry form In the Show document inquiry form, the number in the Protested bills is increased, and the number in the Honored bills row is decreased When a settled Bill of Exchange is protested, the following entries generate in General Ledger 6-38 Debit Credit Protest Bill of Exchange summary account Ledger account for the bank used Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 6: Advanced Payments Protest Settled and Closed Bill of Exchange In certain cases you must: • Protest and reopen an honored Bill of Exchange that also is closed in the remittance file Do this in the Protest Bill of Exchange journal • Verify that the closed bills with a Protested status are written up and the corresponding closed bills with an Honored status are written down in the inquiry Bill of Exchange statistics Ledger Accrual Most common accounting rules require companies to report income when earned expenses are incurred Standard practice is to record and recognize revenues and expenses in the period they are incurred, because of their significance to the future income and cash flow of the company In Microsoft Dynamics AX, the Accrual schemes feature is implemented to defer the cost or income throughout the year Scenario Contoso decided to defer the cost of the insurance policy throughout the year to recognize the insurance policy costs at the appropriate time Procedure: Create an Accrual Scheme Ledger Accrual makes it possible to redistribute the costs or revenues of a journal line to be recognized into the appropriate periods Follow these steps to create an accrual scheme: Click General ledger, click Setup, click Posting, and then click Accrual schemes Click the New button to create a new accrual scheme Enter an Accrual identification and a Description of accrual scheme Procedure: Create an Accrual Scheme - Ledger Posting Follow these steps to define the ledger posting information for an accrual scheme: From the Accrual schemes form, click the General FastTab Select an account number in the Debit and Credit fields The debit account numbers are used for posting the accrued debit amounts onto an asset account and for posting the accrued credit amounts onto a liability account Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 6-39 Financials II in Microsoft Dynamics® AX 2012 Select a Voucher to indicate how the voucher number should be used: o Base - The main voucher number should be used for all generated transactions o Single - There is a new voucher number for each transaction date o Multiple - There is a new voucher number for all accrued transactions If Single or Multiple is selected in the Voucher list, select a Number sequence code in the Reference field for the voucher numbers Enter a transaction Description that can be used on all the accrued transactions, for example %1 means Main voucher number Refer to the Help for additional clarification If no text is written in this field, the transaction text from the main voucher is used In the Posting date list, select when the accrued transactions should be posted: Beginning, Middle, or End Procedure: Create an Accrual Scheme - Duration and Posting Settings Follow these steps to define the duration and posting settings for an accrual scheme: From the Accrual schemes form, click the General FastTab Select the duration of the accrual in the Calendar type list The Calendar type has three overall possibilities: Calendar, Fiscal, and Allocation key The duration affects how long the accrual schemes are open NOTE: The ledger periods must match the whole duration being defined Select a Period frequency of Daily, Monthly, Quarterly, HalfYearly, or Yearly The period frequency is available only if Calendar or Fiscal is selected in the Calendar type list Enter the Length to determine how many occasions of the selected period type, for example two years 6-40 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 6: Advanced Payments NOTE: If Calendar type is the Allocation Key, you cannot edit Length Select a Period key instead In the Posting frequency list, select how frequently the postings should occur In the Value posting list, select Even if all months or quarters should be debited by the same amount, or select Scale if each month should be debited based on the number of days measured in relation to the total numbers of days For example, Even is 1/12 of the amount being accrued if monthly, and Scale is based on the number of days in a period, for example 31 days out of 365 in August with a monthly period frequency Procedure: Apply an Accrual Scheme in a Journal Follow these steps to start period accruals when you enter general journal lines: Click General ledger, click Journals, and then click General journal Click the New button to create a new journal or select an existing journal, and then click the Lines button Enter a ledger Account where the accrual will be recorded For example, use ledger account 401400, Accrued Sales (shipped not invoiced) Click the Functions button, and then click Ledger accruals In the Accrual identification field, select the accrual scheme to process View or change the amount in the Base amount field This is the amount from the journal lines minus the sales tax amount, because sales taxes are not accrued Enter the Start date for the first accrued transaction The End date field is filled in automatically based on the configuration of the accrual scheme Select whether the account or the offset account on the journal line is the account to be accrued The accounts defined in the accrual scheme are used as offset accounts for the accrual transactions Click the Transactions button to view the generated allocation transactions The form shows the new transactions with the new data and the new voucher if the voucher number is set up 10 Click OK to accept and return to the journal line NOTE: The accrual feature posts the whole amount at the same time Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 6-41 Financials II in Microsoft Dynamics® AX 2012 Lab 6.3 - Ledger Accrual During this lab you will set up a ledger accrual Scenario Phyllis, the Accounting Manager at Contoso wants to redistribute the costs of the insurance policy throughout the year The cost of the insurance policy is $3,499 Use the following information to set up a ledger accrual for the insurance policy: • The insurance policy should be paid monthly and the invoice amount should be divided into twelve payments • At Contoso, verify that the insurance payments are deferred to the actual date of payment • The accrual entries must start on 08/01/2010 and should be posted to account 200110 Challenge Yourself! Help Phyllis complete the following: Set up an Accrual scheme Use the Accrual scheme in a journal Need a Little Help? • Create the Monthly accrual scheme • Create a new journal • Populate the journal Step by Step Create an Accrual Scheme: Click General ledger, click Setup, click Posting, and then click Accrual schemes Click the New button to create a new accrual scheme Enter an M_Ins in Accrual identification and a Monthly Insurance in the Description of accrual scheme From the Accrual schemes form, expand the General FastTab Enter the account number 211350 as the account number for the Debit and Credit fields Select Base as a Voucher Select the duration of Calendar in the Calendar type list Select Monthly as the Period frequency 6-42 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 6: Advanced Payments Enter 12 as the Length 10 Enter Month as the Posting frequency 11 Close the form Apply Accrual Scheme in a Journal: Click General ledger, click Journals, and then click General journal Click the New button to create a new journal and select GenJrn in the Name field Click the Lines button Enter 08/01/2010 in the Date field Enter 200110 in the Account field Click the Functions button, and then click Ledger accruals In the Accrual identification field, select M_Ins Enter 3,499.00 in the Base amount field Click OK to accept and return to the journal line 10 Close forms Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 6-43 Financials II in Microsoft Dynamics® AX 2012 Summary This course describes how to: • Create and process a bridging account method of payment • Set up electronic vendor payments • Process electronic vendor payments • Set up electronic customer payments • Receive electronic customer payments • Create a file for debt collection by the bank • Set up prepayments for customers and vendors • Create the prepayment • Post the prepayment • Set up a bill of exchange • Process the bill of exchange • Create a bill of exchange • Create and apply accrual schemes Microsoft Dynamics AX offers a variety of functionality to handle customer and vendor payments with basic or more advanced functionality 6-44 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 6: Advanced Payments Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 6-45 Financials II in Microsoft Dynamics® AX 2012 Test Your Knowledge Test your knowledge with the following questions When you use bridging accounts, posting occurs as a two-step process What are the two steps? What three steps are required to set up electronic vendor payments? (Select all that apply) ( ) Set up bank accounts in Bank Management ( ) Set up vendor bank accounts ( ) Set up methods of payment in Accounts Payable ( ) Set up methods of payment in Accounts Receivable There are four steps required to process electronic vendor payments Place the steps in order Step: _: Generate electronic payments _: Post the payments _: Receive confirmation from the bank _: Select vendor invoices for payment 6-46 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 6: Advanced Payments When you set up customers for electronic payment, are the methods of payment shared between Accounts Payable and Accounts Receivable? Five journal names must be set up to process activity in the Bill of Exchange journal What are they? Categorize the following items: _ What accounts are updated when you post a free text invoice for a customer? _ What accounts are updated when you issue a bill of exchange at the request of the customer? _ What accounts are updated when you sell the bill of exchange to the bank? _ What accounts are updated when the customer remits the payment to the bank? a Debit the ledger account for the bank used and credit the Remit for Collection account b Debit the Bill of Exchange Summary account and credit the Customer Summary account c Debit the customer summary account that has posting type of "customer balance" and credit the "customer revenue" account d Debit the Remit for Collection account and credit the Bill of Exchange Summary account Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 6-47 Financials II in Microsoft Dynamics® AX 2012 Solutions Test Your Knowledge When you use bridging accounts, posting occurs as a two-step process What are the two steps? MODEL ANSWER: First, the payment posts to a temporary (bridging) account This means that instead of debiting cash, the bridging account is debited The second step is reversing the activity from the temporary account and posting the payment to the bank account What three steps are required to set up electronic vendor payments? (Select all that apply) (√) Set up bank accounts in Bank Management (√) Set up vendor bank accounts (√) Set up methods of payment in Accounts Payable ( ) Set up methods of payment in Accounts Receivable There are four steps required to process electronic vendor payments Place the steps in order Step: : Generate electronic payments : Post the payments : Receive confirmation from the bank : Select vendor invoices for payment When you set up customers for electronic payment, are the methods of payment shared between Accounts Payable and Accounts Receivable? MODEL ANSWER: No, the methods of payment are not shared between the modules 6-48 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 6: Advanced Payments Five journal names must be set up to process activity in the Bill of Exchange journal What are they? MODEL ANSWER: The five journal names are draw, protest, re-draw, remit, and settle Categorize the following items: c What accounts are updated when you post a free text invoice for a customer? b What accounts are updated when you issue a bill of exchange at the request of the customer? d What accounts are updated when you sell the bill of exchange to the bank? a What accounts are updated when the customer remits the payment to the bank? a Debit the ledger account for the bank used and credit the Remit for Collection account b Debit the Bill of Exchange Summary account and credit the Customer Summary account c Debit the customer summary account that has posting type of "customer balance" and credit the "customer revenue" account d Debit the Remit for Collection account and credit the Bill of Exchange Summary account Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 6-49 Financials II in Microsoft Dynamics® AX 2012 6-50 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement ... is posted to the payment company (CEU) Exchange rate for EUR to USD as of the invoice date: 1. 2062 Exchange rate for EUR to USD as of the payment date: 1.2277 Free text invoice is posted and