Andreas Luszczak Using Microsoft Dynamics AX The New Dynamics ‘AX 7’ 5th Edition Using Microsoft Dynamics AX Andreas Luszczak Using Microsoft Dynamics AX The New Dynamics ‘AX 7’ 5th Edition Andreas Luszczak Vienna, Austria ISBN 978-3-658-13621-5 DOI 10.1007/978-3-658-13622-2 ISBN 978-3-658-13622-2 (eBook) Library of Congress Control Number: 2016944400 Springer Vieweg © Springer Fachmedien Wiesbaden 2009, 2012, 2013, 2015, 2016 The 4th edition of the book was published with the title „Using Microsoft Dynamics AX 2012“ This work is subject to copyright All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made Printed on acid-free paper Springer Vieweg is a brand of Springer Nature The registered company is Springer Fachmedien Wiesbaden GmbH Preface Reading this Book The primary purpose of this book is to provide you with a good knowledge of the standard application concept and functionality, enabling you to run business processes in Microsoft Dynamics AX This book is primarily designed for end users, students, and consultants interested in learning how to use Dynamics AX Going beyond the operations on the user interface, you will learn how the different parts of the application work together As a result, you will also take advantage from learning the end-to-end application concept if you are a system administrator, developer, IT executive, or experienced consultant not knowing the complete application already Actually working in an application is the best way to learn it This book therefore includes exercises building up on each other in a comprehensive case study If you need support with the exercises, a free download of sample solutions is available Dynamics AX is a very comprehensive business solution, making it impossible to cover all parts of the application in a single book In order to provide a profound understanding of the core application, this book addresses the primary functionality in supply chain (including trade and logistics, and production control) and in finance management It shows the application, but does not cover tasks in system administration and development Microsoft Dynamics AX Version This book is based on Microsoft Dynamics AX released in March 2016 and updated in May 2016 It is an update of my previous book editions on Dynamics AX 2012 Microsoft Dynamics AX in the current release officially hasn’t got a version number, it is just called “Microsoft Dynamics AX” without version The internal build version of this release is 7.0 Since the label “Dynamics AX” does not always make clear if an instruction refers to the latest release or generally applies to all releases, descriptions in this book use the name ‘AX 7’ when pointing out specific items of the latest release Applicable Settings In Dynamics AX, you can individually choose the language of your user interface Descriptions and illustrations in this book refer to the language “EN-US” (United States English) Whereas it is obvious that the Dynamics AX client displays different labels when choosing languages like Spanish or Russian, there are also VI Preface differences when selecting British English For example, the label for the field “Sales tax” is “VAT” in British English Other differences between your application and the descriptions in the book are possibly caused by permission settings, by local features, or by specific modifications and features in your application In order to benefit from the explanations, it is recommended to access a working environment of Dynamics AX A separate test application, where you can execute the exercises, is required to avoid an impact on actual company data For the screenshots in this book, the color theme “High contrast” and a small element size has been selected in the visual preferences of the user options The illustrations refer to a sample company “Anso Technologies Ltd.”, which includes a simple setup limited to the described functionality In order to grant a flexible choice of the training environment, the tasks in the exercises are specified in a way that you can use the Microsoft standard demo environment (“Contoso Entertainment System USA”) or any other test environment Available Support In order to download the exercise guide, which refers to the exercises in this book, and other applicable resources, please access the online service of the publisher or my web site: http://axbook.addyn.com If you have comments or questions regarding the book or the exercises, please contact me through this web site or via e-mail to lua@addyn.com Acknowledgements Many people have been involved in finalizing this book, directly and indirectly, from the first to the current edition I want to thank all of them In particular, I would like to mention Ingo Maresch (Solutions Factory Consulting), Natalija Dajcman (Informio Software), and Finn Nielsen-Friis (AXcademy) Thank you also to the editor, Sabine Kathke And finally, my special thanks go to my family – Sonja, Felix and Caroline Andreas Luszczak Table of Contents What is Microsoft Dynamics AX? 1.1 Axapta and the History of Dynamics AX 1.2 Dynamics AX Product Overview 1.2.1 1.2.2 1.2.3 1.2.4 Functional Capabilities Implementation Data Structure Voucher Principle Getting Started: Navigation and General Options 2.1 User Interface and Common Tasks 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 2.1.7 2.2 Logon and Authentication Navigation Elements of the User Interface Working with Records 17 Filtering and Sorting 22 Help System 27 Case Study Exercises 28 Printing and Reporting 30 2.2.1 Printing of Documents 30 2.2.2 Microsoft Office Integration 34 2.2.3 Case Study Exercise 36 2.3 Advanced Options 37 2.3.1 User Options and Personalization 37 2.3.2 Record Information and Templates 39 2.3.3 Case Study Exercises 42 2.4 Global Address Book 43 2.4.1 Party and Address 43 2.4.2 Address Book 45 2.4.3 Case Study Exercise 46 Purchase Management 47 3.1 Business Processes in Purchasing 47 3.1.1 Basic Approach 47 3.1.2 At a Glance: Purchase Order Processing 50 VIII Table of Contents 3.2 Vendor Management 52 3.2.1 3.2.2 3.2.3 3.2.4 3.3 Product Management in Purchasing 61 3.3.1 3.3.2 3.3.3 3.3.4 3.4 Basics of Item Receipts 89 Receipts List 90 Inventory Registration 90 Product Receipt 94 Partial Delivery and Over/Under Delivery 96 Order Status and Inquiries 98 Case Study Exercises 101 Invoice Receipt 102 3.6.1 3.6.2 3.6.3 3.6.4 3.7 Basics of Purchase Order Processing 73 Purchase Order Registration 75 Change Management and Purchase Order Approval 82 Canceling and Deleting Purchase Orders 84 Purchase Inquiry and Order Confirmation 85 Case Study Exercises 88 Item Receipt 89 3.5.1 3.5.2 3.5.3 3.5.4 3.5.5 3.5.6 3.5.7 3.6 Procurement Category 61 Basic Product Data 63 Purchase Price Setup 68 Case Study Exercises 72 Purchase Order Management 72 3.4.1 3.4.2 3.4.3 3.4.4 3.4.5 3.4.6 3.5 Vendor Record 52 Payment Terms and Cash Discount 57 Ledger Integration 59 Case Study Exercises 61 Ways for Processing Vendor Invoices 102 Vendor Invoice Posting 103 Order Status and Inquiries 108 Case Study Exercises 110 Credit Note and Item Return in Purchasing 111 3.7.1 Crediting Purchase Orders 112 3.7.2 Inventory Valuation with Separate Credit Notes 114 3.7.3 Case Study Exercise 114 3.8 Purchase Agreement, Requisition, and Quotation Request 115 3.8.1 3.8.2 3.8.3 3.8.4 Purchase Agreement 115 Purchase Requisition 116 Request for Quotation 118 Case Study Exercise 120 Table of Contents IX Sales and Distribution 121 4.1 Business Processes in Sales and Distribution 121 4.1.1 Basic Approach 121 4.1.2 At a Glance: Sales Order Processing 124 4.2 Customer Management 126 4.2.1 Core Data and Comparison to Vendor Records 126 4.2.2 Case Study Exercises 129 4.3 Product Management in Sales 130 4.3.1 Product Data and Sales Category 130 4.3.2 Sales Price and Discount Setup 131 4.3.3 Case Study Exercises 136 4.4 Sales Order Management 136 4.4.1 4.4.2 4.4.3 4.4.4 4.4.5 4.4.6 4.4.7 4.5 Delivery Management 152 4.5.1 4.5.2 4.5.3 4.5.4 4.5.5 4.6 Basics of Picking and Shipping 152 Pick Form and Picking List 153 Picking Workbench 157 Packing Slip 159 Case Study Exercises 160 Sales Invoice 161 4.6.1 4.6.2 4.6.3 4.6.4 4.7 Basics of Sales Order Processing 136 Sales Quotation 138 Sales Order Registration 139 Order Price and Discount 146 Surcharge Management 148 Sales Order Confirmation 150 Case Study Exercises 151 Sales Order Invoice 161 Collective Invoice 164 Free Text Invoice 165 Case Study Exercises 167 Sales Credit Note and Item Return 168 4.7.1 Return Order Management 168 4.7.2 Simple Credit Note 171 4.7.3 Case Study Exercise 172 4.8 Direct Delivery 172 4.8.1 Processing Direct Deliveries 172 4.8.2 Case Study Exercise 174 4.9 Trade Allowance and Incentive Management 175 X Table of Contents 4.9.1 4.9.2 4.9.3 4.9.4 Trade Allowance 175 Vendor Rebate 181 Broker Contract 181 Royalty Agreement 182 Production Control 183 5.1 Business Processes in Manufacturing 183 5.1.1 Basic Approach 183 5.1.2 At a Glance: Production Order Processing 186 5.2 Product Management and Bill of Materials 188 5.2.1 Product Data in Manufacturing 188 5.2.2 Bill of Materials (BOM) 190 5.2.3 Case Study Exercises 196 5.3 Resource and Route Management 197 5.3.1 5.3.2 5.3.3 5.3.4 5.4 Production Order Management 213 5.4.1 5.4.2 5.4.3 5.4.4 5.5 Basics of Production Order Processing 213 Production Order Registration 214 Processing Production Orders 217 Case Study Exercises 221 Production Journal Transactions 221 5.5.1 5.5.2 5.5.3 5.5.4 5.6 Production Unit and Resource Group 198 Resource and Capability 201 Route and Operation 204 Case Study Exercises 212 Journal Transaction and Ledger Integration 222 Picking List 223 Consumption of Resources 225 Case Study Exercises 226 Reporting as Finished and Ending Production 226 5.6.1 Reporting as Finished 226 5.6.2 Ending and Costing 228 5.6.3 Case Study Exercise 230 5.7 Subcontracting 231 5.7.1 Outsourced Operation 231 5.7.2 Purchased Service 231 5.8 Formula and Batch Production Order 234 5.8.1 Formula Management 234 5.8.2 Batch Production Order 236 .. .Using Microsoft Dynamics AX Andreas Luszczak Using Microsoft Dynamics AX The New Dynamics AX 7’ 5th Edition Andreas Luszczak Vienna, Austria ISBN... company in the lookup, Dynamics AX immediately switches to the other company Figure 2-4: Switching the current company 2.1.2.7 New in Dynamics AX 7’ With the browser-based interface replacing the Windows... state-of -the- art architecture, Dynamics AX shows comprehensive functionality while ensuring high usability at the same time The latest version Dynamics AX 7’ (officially labeled as Dynamics AX