AX2009 Advanced Payments

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Chapter 4: Advanced Payments

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CHAPTER 4: 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 vendorpayments in Microsoft Dynamics AX 2009. These advanced payments includethe following:

Bridging accounts

Electronic payments

Centralized payments

Bills of exchange

Prepayments

Also included are several of the options available when you set up a method ofpayment, and how to use the ledger accrual functionality to defer costs or incomethroughout the year.


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Financials II in Microsoft Dynamics AX 2009

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Bridging Accounts

You can post a vendor payment either:

Directly to the final bank account

By using a bridging account for a two-step posting

In the first step of the two-step posting:

Post the payment to a temporary account or a bridging account. This means thepayment is recorded on the vendor account as usual, but the offset account is thebridging account instead of the bank account.

Posting to a temporary or bridging account makes the reconciliation of the bankaccount less time consuming because the transactions recorded by the companybut not yet recorded by the bank are not included in the reconciliation. Thosetransactions are temporarily posted to the bridging account.

The second step of the two-step posting occurs when a company receivesnotification from the bank that indicates the payment is completed. In it youreverse the posting on the temporary account and post the payment to the bankaccount.

Scenario

Contoso uses bridging accounts for customers who pay by check. They make atemporary posting until the bank confirms the check is valid and the money isposted on the bank account. When Contoso receives the confirmation from thebank, 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:

1. ClickAccounts payable, clickSetup, clickPayment, and then clickMethods of payment.

2. Press CTRL+N to create a new line, and enter an appropriateidentifier, for example, Bridging, in the Method of payment field.

3. In the Period list, select the period when the invoices in automaticpayment proposals are combined:

Invoice - One payment transfer is created for each invoice.

Date - All invoices for a vendor (or customer) with the same duedate are combined.

Week- All invoices for a vendor (or customer) with a due datein the same week are combined.

Total - All invoices for a vendor (or customer) are combinedinto one payment.


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4. In the Description field, enter a name or short description for themethod of payment.

5. In the Days of grace field, if applicable, enter the number of days thecustomer is enabled a cash discount after the specified period.

FIGURE 4.1 METHODS OF PAYMENT FORM

Procedure: Create a Bridging Account Method ofPayment - Posting

Follow these steps to define the posting options for the bridging account methodof payment:

1. From the Methods of payment form, in the Posting area, selectBankin the Account type list.

2. In the Payment account list, select the bank account where theinvoice amount will be deducted from. This account is used in thefinal posting.

3. Select the Bridging posting check box to start bridging accounts.

4. In the Bridging account list, select a ledger account for theintermediate posting. The first posting posts to the General Ledger

and not the bank account.

NOTE: You can use bridging accounts for all vendor payments, both manual and

electronic.


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Procedure: Assign the Bridging Method of Payment to aVendor

After you create a bridging method of payment, you can assign it to a vendor. Or,you can assign it for each transaction.

Follow these steps to assign the bridging method of payment to a vendor:

1. ClickAccounts payable, and then clickVendor Details.

2. Click the Payment tab.

3. In the Method of payment list, select the bridging method ofpayment.

Procedure: Process Step 1 of a Bridging AccountPayment

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 bridgingaccount.

1. ClickAccounts payable, clickJournals, clickPayments, and thenclickPayment journal.

2. Enter a payment to the vendor. Select a vendor with a bridgingmethod of payment or select the bridging method of payment in theJournal voucher form.

3. When you select a bridging method of payment, the offset accountautomatically becomes the designated bridging account, and thejournal then posts as any other journal.

4. Post the payment journal.

Procedure: Process Step 2 of a Bridging AccountPayment

Follow these steps to complete the second step in the two-step process of postingto a bridging account. Reverse the posting on the temporary account and post thepayment to the bank account.

1. ClickGeneral ledger, clickJournals, and then clickGeneraljournal. When you post from the bridging account to the bankaccount, create a new journal or use an existing journal.

2. Click the Lines button. Enter the information.3. Click the Functions button, and then clickSelect Bridged

transactions.


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4. In the Select bridged transactions form, highlight the appropriatetransaction, and then click the Accept button to transfer the bridgedtransactions to the journal lines.

5. Post the journal. The offset account in this transaction is the bridgingaccount instead of a bank account. The posting reverses thetransaction on the bridging account and charges the bank account.

Test Your Knowledge

1. When you use bridging accounts, posting occurs as a two-step process. Whatare the two steps?


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Lab 4.1 - Bridging Accounts

Scenario

Ken, the Controller at Contoso, informs April, the Accounts PayableCoordinator, that vendor 2003, Wingtip Receivers, must be set up to post througha bridging account. He asks April to review the posting setup for the bridgingaccount and the vendor and make any necessary changes.

Challenge Yourself!

Help April with Ken's request.

Need a Little Help?

1. Review the bridging method of payment.

2. Review the posting setup for vendor 2003.

3. Make any necessary adjustments.

Step by Step

Follow these steps to review the bridging method of payment.


2. Click the line for the bridging method of payment.

3. Note the contents of the fields in the Posting area. Verify that the

Bridging posting field is selected and there is an entry in theBridging account field.

4. Close the form.

Follow these steps to review the posting setup for vendor 2003 and assign thebridging method of payment to the vendor.


2. Click the line for vendor 2003, and then click the Payment tab.

3. In the Method of payment field, click the arrow to select thebridging method of payment.

4. Close the form.


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Electronic Vendor Payments

Use electronic vendor payments to electronically direct pay vendors fromMicrosoft Dynamics AX 2009. Paying vendors electronically saves the businessmoney 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 paymentsfor:

Domestic payments

Foreign payments

Payments in multiple business units spread across different countries

When you work with electronic vendor payments, consider the following issues:

How to set up Microsoft Dynamics AX 2009 for electronic vendorpayments

How to process electronic vendor payments

Scenario

Several times Contoso experienced either checks lost in the mail when payingvendors or time-consuming payment handling processes.

To cope with the missing checks and slow payment processing, Contoso decidesto 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 goastray.

Electronic payments are more efficient. Electronic vendor payment isdeposited directly into a bank account. This saves days of processingand 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


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Procedure: Configure Bank Accounts

Before you process any electronic vendor payments, determine which bankaccounts to use for payments.

NOTE: To learn more about how to set up bank accounts, refer to the BankManagement course in the Financials I collection.

Follow these steps to further configure your bank account for electronic vendorpayments:

1. ClickBank, and then clickBank Account Details.

2. Click the bank account to use for electronic vendor payments, andthen click the Setup tab.

3. In the Validate bank account field, select an option for accountnumber validation. The drop-down list shows the different, country-

specific validation methods currently available.

The validation from the banks is set up to prevent people fromentering invalid numbers. For example, Danish banks use modulus11 control which prevents bank account numbers that are too similar,such as 45686 and 45868.

Procedure: Assign Bank Accounts to Vendors

Follow these steps to assign a default bank account to a vendor:



3. In the Bank account list, select a default bank account.

Follow these steps to assign several bank accounts to a vendor:

1. From the Vendors form, click the Setup button, and then clickBankaccounts.

2. Press CTRL+N to create a new record.

3. In the Bank account field, enter the number that identifies thevendor bank account.

4. In the Name field, enter the name that is used to identify this

account.5. Select the Bank group from the list.

6. Enter the number that the bank uses to identify itself in the Routingnumber field.

7. In the Bank account number field enter the bank-assigned accountnumber for the vendor.


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8. Select a validation method in the Validate bank account field.

9. Enter the ESRaccount number.

FIGURE 4.2 VENDOR BANK ACCOUNTS FORM

Procedure: Set Up Methods of Payment

Most of the method of payment setup is necessary for any payment method, notmerely for electronic payments. Therefore, only options that you can usespecifically for electronic payments are explained here. Refer to the Financials Icollection for general method of payment setup information.

Follow these steps to configure methods of payment specifically for electronicpayments:


2. In the Payment status list, select the stage when the payment journalcan post. For electronic payments, the status usually is set toApproved.

3. In the Account type and Payment account lists, select the valuesthat default into the payment journal as an offset account when theparticular method of payment is used.

For electronic payments, the account type must be Bank, or you mustspecify a Bank transaction type that relates to electronic payments tohelp 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.


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Procedure: Set Up Methods of Payment - File Formats

Follow these steps to configure file format options for methods of paymentspecifically for electronic payments:

1. From the Methods of payment form, click the File formats tab.

2. Click the Setup button to locate all the bank file formats currentlyavailable. From the list, select to use Export or Return formats. Somebank file formats support a payment specification. This depends onthe bank.

FIGURE 4.3 FILE FORMATS FOR METHODS OF PAYMENT FORM

Procedure: Set Up Methods of Payment - Payment

SpecificationUse the payment specification when the file format supports different methods ofpayment, for example, domestic transfer, international transfer, and so on. Fileformats are country and bank specific. Follow these steps to enter paymentspecification information for methods of payment specifically for electronicpayments:

1. From the Methods of payment - Vendors form, click the Paymentspecification button.

2. In the Payment specification field enter the code for the paymentmethod. This indicates the payment level that is to follow a money

transfer for a vendor payment. The financial institution that performsthe payment transfer determines which codes are available.


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3. In the Description field, enter a description of the paymentspecification code.

4. In the Export format field, select a file format. The file formats areavailable only for the export and return formats related to the banksthat support payment specifications.

FIGURE 4.4 PAYMENT SPECIFICATION FORM

Process Electronic Vendor Payments Overview

You can divide the processing of electronic vendor payments into the followingsteps:

1. Select vendor invoices for payment.

2. Generate electronic payments.

3. Receive confirmation from the bank.

4. Post payments.


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The following diagram shows a more detailed process.

FIGURE 4.5 ELECTRONIC PAYMENT PROCESS

Procedure: Process Electronic Vendor Payments -Select Vendor Invoice for Payment

Electronic vendor payment starts with selecting the approved invoices forpayment. Follow these steps to select the approved invoices for payment:

1. ClickAccounts payable, clickJournals, clickPayments, and thenclickPayment journal.

2. Press CTRL+N to create a new payment journal.

3. Click the Lines button to create the payment journal lines.

4. Verify that the electronic payment method is selected in the Methodof payment list.Note that the Payment status is currently None. This means it is notyet sent to the bank.


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Procedure: Process Electronic Vendor Payments -Generate Electronic Payments

Now that the invoices are selected for payment, send the payment order to thebank to generate the electronic payment. Follow these steps to generate electronic

payments:

1. From the Journal voucher form, click the Functions button, andthen clickGenerate payments to transfer an electronic payment tothe bank.

2. In the Generate payments form, select the electronic paymentmethod in the Method of payment list.

3. Select an export format in the Export format list.

4. Click the Dialog button and select a file name in the File name field.

5. ClickOKto generate the payment and to print a report for therecords.

FIGURE 4.6 GENERATE PAYMENTS FORM

Now the payment is generated for all the payment lines using electronic payment,and the Payment status on the line in the journal automatically changes to Sent.

Procedure: Process Electronic Vendor Payments -Receive Confirmation from the Bank

When the bank receives a payment file from a company, it processes thepayment. This means that it transfers the money to the vendors and informs thecompany that the payment is completed.

The confirmation from the bank can be either an electronic return file or a printedlist.


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You can receive an electronic return file only from those banks supporting returnfiles and you must set up this option on the payment method in question.

Follow these steps to locate and update generated payments from either theoriginal payment journal or from a special payment transfer journal:

1. ClickAccounts payable, clickJournals, clickPayments, and thenclickPayment transfer.

2. Click the Return file - Vendor button to specify the method ofpayment the return file will be imported for, and then enter thelocation of the file.

FIGURE 4.7 PAYMENT TRANSFER FORM

After importing, the Payment status of the payment lines included in the returnfile updates to Received.

If the bank cannot send an electronic file but instead sends a printed list, you canupdate the payment status manually. From the Payment journal or the Paymenttransfer journal, click the Payment status button, and then clickReceived.

Procedure: Process Electronic Vendor Payments -Receive Rejection from the Bank

Follow these steps if the bank rejects the payment file:

1. From the Payment journal or the Payment transfer journal, clickthe Payment status button.

2. Then click one of the following:

Rejected - For the rejected payment lines, create a new paymentfile and send it to the bank in the same manner files are createdfor new payment lines.

None - This returns those payment transfer lines to the paymentjournal where new electronic payment files can be generated.


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Process Electronic Vendor Payments - Post Payments

You can post electronic payments either from the original payment journal orfrom the Payment transfer journal by using the Journals and then the Postbutton.

When you post payments:

You can post only the payment lines that have the payment statusspecified on the method of payment setup.

o This controls at what stage of the payment process to allow forposting of the payment.

For electronic payments, the status usually is set to Approved.

o Update the status any time from either the Payment transferjournal or the Payment journal by using the Payment status

button.

From the Payment transfer journal:

o Create a new journal for only the approved payments to postinto.

o Post bank charges regarding the payment directly from thisjournal by using the Payment fee tab.

o Set up a default ledger account directly on the method ofpayment to handle any fees.

As with any other posting of vendor payments, you can post the

electronic payments either:o To a bank account, or

o In two steps using the bridging account as long as you completethe correct setup on the specified method of payment.

Test Your Knowledge

1. What three steps are required to set up electronic vendor payments? (Selectall 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


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2. There are four steps required to process electronic vendor payments. Placethe steps in order.

Step:

_____: Select vendor invoices for payment

_____: Generate electronic payments

_____: Post the payments

_____: Receive confirmation from the bank

Electronic Customer Payments

There are two methods to record electronic customer payments:

The bank sends a file that contains customer payments.

Instruct the bank to collect payments from customers according tocertain specifications if an agreement exists with the customer.

Procedure: Set Up Electronic Customer Payments

As with electronic vendor payments, you must set up a method of payment tohandle electronic customer payments.

Although the method of payment is the same for both Accounts Receivable andAccounts Payable, the modules do not share the same method of payment setup.

NOTE: Refer to the Electronic Vendor Payments lesson for more information on

this setup.

Procedure: Receive Electronic Customer Payments

Follow these steps to receive an electronic payment:

1. ClickAccounts receivable, clickJournals, clickPayments, andthen clickPayment journal.

2. Press CTRL+N to create a new journal.

3. Click the Lines button.


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4. After you create the journal, pull in the electronic payments from thefile received.

A dialog box displays to select the method of payment to importthe payments.

The subsequent window contains a select box to identify the file

to import.

5. To confirm the selection of the file, clickOK. The payment linesfrom the file transfer into the journal lines.

6. Validate and post the payment lines as any other customer payment.

Procedure: Create a File for Debt Collection by the Bank

A company might have agreements with some customers instructing its bank tocollect the payments periodically according to its specification. This optionresembles electronic processing of vendor payments.

The company must follow the same steps:

1. Select invoices for payment.

2. Create the payment file and send it to the bank (generate payments).

3. Record the bank confirmation of the payment.

4. Post the payments.

Set up an export file format and a return file format for each method of paymentused for debt collection by the bank.

Test Your Knowledge

1. When you set up customers for electronic payment, are the methods ofpayment shared between Accounts Payable and Accounts Receivable?


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Centralized Payments

Organizations that include multiple companies can create and manage paymentsby using a central company. This eliminates the need to enter the sametransaction in multiple companies and saves time by streamlining the paymentproposal process, the settlement process, open transaction editing, and closedtransaction editing for cross-company payments.

In a centralized-payment organization, each operating company manages its owninvoice information and payments are received or paid by a central company,which is known as the payment company. During the settlement process, theapplicable due-to transactions and due-from transactions generate. For ledgertransactions, users can specify which company within the organization willreceive the realized gain or realized loss transactions, and how cash discounttransactions that are related to a cross-company payment are handled.

Scenario

The following examples show how posting is handled in various scenarios. Thefollowing configuration is assumed for all these examples:

The company accounts are Contoso Entertainment USA (CEU) andContoso Entertainment Europe (CEE).

CEU is the payment company.

The Post cash discount field in the Intercompany accounting formis set to Invoice company.

The Post currency exchange gain or loss field in theIntercompany accounting form is set to Payment company.

The global address book is used to provide the mapping of customersand vendors across multiple companies. Contoso maintains a singleglobal address book record, address book ID 39, for Silver and BlackServices. This global address book record is mapped to a separatecustomer account in each company.

Address

book ID

Customer

account

Name Company

39 8001 Silver and Black Services CEU

39 8001 Silver and Black Services CEE

Scenario - Centralized Payment

CEU receives a payment of 600.00 U.S. dollars (USD) for CEE customeraccount 8001, Silver and Black Services. The payment is settled with an openinvoice for customer account 8001 in CEE.


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Invoice is posted in CEE for customer 8001.

Account Debit amount Credit amount

Accounts receivable (CEE) 600.00

Sales (CEE) 600.00

Payment is received and posted in CEU for customer 8001.


Cash (CEU) 600.00

Accounts receivable (CEU) 600.00

CEU payment is settled with CEE invoice.

CEU posting


Accounts receivable 600.00

Due to CEE 600.00

CEE posting


Due from CEU 600.00


Scenario - Centralized Payment with Cash Discount

CEU receives a payment of 580.00 U.S. dollars (USD) for CEU customer 8001,Silver and Black Services. CEE has an open invoice for customer 8001, Silverand Black Services. The invoice has a 20.00 (USD) cash discount available. Thepayment is settled with the open CEE invoices. The cash discount is posted to theinvoice company, CEE.

Invoice is posted in CEE for CEE customer 8001



Sales 600.00


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Payment is received and posted in CEU for CEU customer 8001


Cash 580.00


CEU payment is settled with CEE invoice

CEU posting



Due to CEE 580.00

CEE posting


Due from CEU 580.00


Cash discount 20.00


Scenario - Centralized Payment with Realized ExchangeRate Gain

CEU receives a payment of 580.00 U.S. dollars (USD) for CEU customer 8001,Silver and Black Services. CEE has an open invoice for customer 8001, Silverand Black Services. The invoice has a 20.00 (USD) cash discount available. Thepayment is settled with the open CEE invoices. The cash discount is posted to theinvoice company, CEE. The realized gain or loss will post to CEU.

Invoice is posted in CEE for CEE customer 4000



Sales 600.00

Payment is received and posted in CEU for CEU customer 4000


Cash 580.00



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CEU posting



Due to CEE 580.00

CEE posting


Due from CEU 580.00


Cash discount 20.00


Scenario - Centralized Payment with Cash Discount andRealized Exchange Rate Gain

CEU posts a payment for CEU customer 8001, Silver and Black Services, for anopen invoice in CEE. The invoice has a cash discount available and a sales taxtransaction is generated. The payment is settled with the open CEE invoice. Acurrency exchange gain transaction is generated during the settlement process.The cash discount is posted to the invoice company (CEE) and the currencyexchange gain 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 a tax transaction is generated in CEE for customer4000.


Accounts receivable 638.22 EUR / 769.82 USD

Sales 600.00 EUR / 723.72 USD

Sales tax 38.22 EUR / 46.10 USD

Payment is received and posted in CEU for customer 4000


Cash 626.22 EUR / 768.81 USD



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CEU posting



Due to CEE 626.22 EUR / 768.81 USD

Due to CEE 0.00 EUR / 13.46 USD

Realized gain 0.00 EUR / 13.46 USD

CEE posting


Due from CEU 626.22 EUR / 768.81 USD



Due from CEU 0.00 EUR / 13.46 USD

Cash discount 12.00 EUR / 14.47 USD


Prerequisites

Before you start to set up Centralized Payments, complete the following setup

procedures:

Create company accounts

Set up General ledger parameters

Set up Accounts receivable parameters

Set up intercompany accounting

Procedure: Set Up a Virtual Company

You must set up a virtual company for centralized payments. Then use the samevirtual company to process centralized vendor payments and centralized

customer payments.

Only the administrator who is creating the virtual company account can beconnected; only one active client connection is allowed.


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Follow these steps to set up a virtual company for centralized payments:

1. ClickAdministration, clickSetup, and then clickVirtual companyaccounts.

2. Create a new virtual company account and save it.

3. Click the Table collections tab.4. In the Remaining table collections list, select Centralized

Payments and move it to the Selected table collections list.

5. Click the Company accounts tab.

6. Select the companies to include in centralized payment processingand move them to the Selected company accounts list.

7. Restart the Microsoft Dynamics AX client.

HINT: In order to map customer or vendors across companies, the Global

Address Book must be set up in a virtual company.

Procedure: Set Up Intercompany Accounting

When you settle payment transactions in the current company with invoices inother companies, appropriate due-to transactions and due-from transactions arecreated automatically for each company. Specify the company where anyapplicable cash discount amounts and any realized gain or loss amounts areposted. Before you start, decide which company will process customer payments.Switch to that company. Follow these steps to set up intercompany accounting:

1. ClickGeneral ledger, clickSetup, clickPosting, and then clickIntercompany accounting.

2. Select an intercompany relationship record for the company toprocess payments on behalf of.

3. Click the Centralized payments tab.

4. In the Centralized customer payments field group, select a post cashdiscount option:

Invoice company: Post cash discounts to the company of theinvoice or other transaction that increases the balance of thecustomer account.

Payment company: Post cash discounts to the company of thepayment or other transaction that decreases the balance of thecustomer account. This selection works together with the Cash-discount administration field in the Accounts receivableparameters form.For overpayments and penny difference tolerances, the setting inthe payment company is used automatically. For underpaymentsand penny difference tolerances, the setting in the invoicecompany is used automatically.


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5. In the Centralized customer payments field group, select a postcurrency exchange gain or loss option:

Invoice company: Post currency exchange gain or loss amountsto the company of the invoice or other transaction that increasesthe balance of the customer account.

Payment company: Post currency exchange gain or lossamounts to the company of the payment or other transaction thatdecreases the balance of the customer account. Repeat steps 2through 5 for the remaining intercompany relationships. Set upintercompany posting information for each combination ofintercompany relationships.

Map Accounts Across Companies

If payments to or from a vendor or customer are paid or received in one companyand invoices for that vendor or customer are in other companies, make sure thatthe corresponding vendor or customer accounts in each company all use the same

address book ID. You can do this in one of the following ways:

Put the vendor or customer accounts in a virtual company.

Use the same address book ID for the vendor or customer account ineach company by setting up the Global Address book in a virtualcompany.

NOTE: If you are using the address book ID to map vendor or customer

accounts across companies, only companies that are included in both the virtual

company for centralized payments and the virtual company for global address

books can be involved in cross-company settlement transactions.

Procedure: Set Up Currency Codes

When a payment is created in one company that settles invoices in othercompanies, the system compares currency codes for the transactions. If thecurrency codes in both companies are the same, they are recognized as the samecurrency. If they are different, currency exchange rate calculations are performedautomatically. To make sure that payments are created correctly, set up acurrency code in each invoice company that corresponds to the companycurrency of the payment company. For example, if the company currency of thepayment company is U.S. dollars (USD), set up a USD currency code in eachinvoice company.

Before you start, make a list of all the invoice companies that will use theselected payment company. Switch to the first invoice company and then followthese steps to set up currency codes:

1. ClickGeneral ledger, clickSetup, and then clickExchange rates.

2. If a currency code that corresponds to the company currency code ofthe payment company already exists, go to step 4. Otherwise, pressCTRL+N and create a new currency code.


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3. Set up exchange rate information for the currency code. Thisinformation is used for exchange rate calculations when cross-company payments are settled, if the payment currency and theinvoice currency are different.

4. Switch to the next invoice company and repeat steps 1 through 3.

If the post cash discount amounts to the payment company option was selected inthe Intercompany accounting form, set up currency codes in the paymentcompany that correspond to all the company currency codes in each invoicecompany. Switch to the payment company, and then follow these steps:

1. ClickGeneral ledger, clickSetup, and then clickExchange rates.

2. Click the Print button to print a list of currency codes that have beendefined for the payment company.

3. Switch to each invoice company and print a list of currency codes foreach.

4. If any currency codes are missing from the payment company,

switch back to the payment company and add them.

Posting Profiles

When a payment in one company settles invoices in other companies, the postingprofile IDs must be the same in both companies. To ensure that payments arecreated correctly, set up a posting profile in each invoice company thatcorresponds to the posting profiles that are used in the payment company.

Methods of Payment

When a payment in one company settles invoices in other companies, the method

of payment IDs must be the same in both companies. To ensure that paymentsare created correctly, set up a method of payment in each invoice company thatcorresponds to the methods of payment that are used in the company that the useris logged in to.

Procedure: Set Up Transaction Text

You can define transaction text for intercompany settlement vouchers. Thetransaction text is included on the due-to transactions and due-from transactionsduring the cross-company settlement process.

Follow these steps to define transaction text:

1. ClickBasic, clickSetup, and then clickTransaction text.

2. Press CTRL+N to create a new row.

3. In the Transaction text column, select Intercompany customersettlement and enter text.

4. Press CTRL+N.

5. Select Intercompany vendor settlement and enter text.


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Settlement

When a customer or vendor payment is entered in one company and is settledwith an invoice that was entered in another company, the applicable settlement,due-to, and due-from transactions are automatically generated for each company.

A settlement record is created for each combination of invoice and payment inthe transaction. Each settlement record is assigned a new voucher number, whichis based on the Payment voucher number sequence series specified in theAccounts receivable parameters form for customers and in the Accountspayable parameters form for vendors.

If additional settlement records are generated for cash discounts, currencyexchange adjustments, penny differences, overpayments, or underpayments, theyare assigned the latest date of the payment, invoice, or settlement. If settlementoccurs after the payment is posted, the settlement records use the settlementposting date that is specified in the Open transaction editing form.

Inquiry

In Accounts receivable, the company accounts field has been added to variousinquiries. The company accounts field displays the company of the specificcustomer. This is useful for centralized payment information.

Similarly, in Accounts payable, the vendor account and company accounts fieldshave been added to various inquiries. The vendor account company accountsfields display the vendor and company of the specific voucher. This is useful forcentralized payment information.

Reports

The following reports contain cross-company settlement information:

Customer payments report

Bill of exchange journal report

Vendor payments report

Promissory note journal report

Free Text Invoice

Payment advice

Payment advices and check stubs


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Test Your Knowledge

1. Which of the following reports will show centralized payment information?(Select all that apply)

( ) Customer payments report

( ) Vendor payments report

( ) Free Text Invoice report

( ) Payment advices report

Prepayments (Deposits)

Accounting practice in many countries or regions requires that prepayments ordeposits from a customer or to a vendor are not posted to the usual summaryaccounts for the customer or vendor.

Instead, these prepayments are posted to special ledger accounts for prepayments.When a sales order or purchase order is made, an invoice is issued to thecustomer or vendor. During payment of the invoice, the prepayment and sales taxprepayment on the prepayment ledger accounts are reversed.

Follow these steps to record prepayments from customers:

1. Set up and post the prepayment to a different ledger account than thesummary account for the customer. This is an accountingrequirement in most countries.

2. Later, when an invoice is issued against this prepayment, allocate theinvoice against the payment directly from the sales order, reversing

the original posting of the prepayment on the prepayment account inthe ledger.

Procedure: Set Up Prepayment for Customers andVendors

Follow these steps to set up prepayments for customers and vendors:

1. ClickAccounts receivable, clickSetup, and then clickPostingprofiles.

2. Create a posting profile for prepayments. Refer to the Finance Icollection for more information about how to set up a posting profile.

3. ClickAccounts receivable, clickSetup, clickParameters, and thenclick the Ledger and sales tax tab.


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4. Select the Salestax on prepayment check box if sales tax iscalculated and posted when you post a prepayment.

5. Enter a posting profile in the Posting profile with prepayment listto indicate the accounts the prepayment and prepayment sales taxespost to. The posting profile selected in this field must include thefollowing:

A summary account for prepayments.

If the Sales tax on prepayment check box is selected, a ledgeraccount for sales tax prepayments.

NOTE: To set up prepayment to vendors, follow the same steps as are outlined in

this topic, but in the Accounts Payable menu.

Procedure: Create the Prepayment

Follow these steps to create and post a prepayment:

1. ClickAccounts receivable, clickJournals, clickPayments andthen clickPayment journal.Create a journal.

2. On the Setup tab of the journal, select the Amount incl. sales taxcheck box to post the prepayment including sales tax.

3. Click the Lines button to create the payment line.


5. Select the Prepayment field. The posting profile changesautomatically to the prepayment posting profile.

NOTE: For vendors, clickAccounts payable, clickJournals, clickPayments,and then clickPayment journal, and follow the same steps.

Post the Prepayment

After the prepayment posts, it is available so you can match it to an open invoiceby using the Open transaction editing functionality from either the Customerform or directly from the sales order to which it pertains.

If it is completed from the open sales order, when that order is invoiced it closesautomatically because the prepayment is allocated against it.

The settlement of the invoice reverses the transactions in the summary accountand in the Sales tax prepayments ledger accounts of the prepayment postingprofile. At the same time, a payment transaction settles the invoice and posts theamounts to the ledger accounts of the standard posting profile for the customer orvendor.


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Lab 4.2 - Prepayments Set Up

Scenario

Contoso (CEU) was awarded a large contract with customer 4001, Internet. Perthe contract agreement, CEU has received a prepayment dated 12/31/08 in theamount of $50,000. Arnie, the Accounts Receivable Administrator, must post aprepayment for the invoice.

Challenge Yourself!

Help Arnie record the prepayment received from customer 4001.

Need a Little Help?

1. Change the Accounts Receivable parameters to ensure that the PREPosting profile is used for Prepayments.

2. Enter the prepayment for $50,000 for customer 4001 in a payment

journal.

Step by Step

Follow these steps to change the accounts receivable parameters to use the PREposting profile for prepayments.

1. ClickAccounts receivable, clickSetup, and then clickParameters.

2. Click the Ledger and Sales tax tab.

3. In the Posting profile with prepayment field click the arrow toselect PRE.

4. Close the form.

Follow these steps to enter the prepayment of $50,000 for customer 4001 in apayment journal.

1. ClickAccounts receivable, clickJournals, clickPayments, andthen clickPayment journal.

2. Press CTRL+N to add a line.

3. In the Name field, select ARPay.


5. In the Date field, enter 12/31/2008.

6. In the Account field, use the arrow to select customer 4001.7. In the Transaction text field, enter Prepayment.

8. In the Credit field, enter 50,000.


10. In the Prepayment field, select the field.

11. In the Posting profile with prepayment field, notice that the PREprofile is selected.


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Bill of Exchange Administration

When a customer pays an invoice in cash, the obligation toward the vendor ismet. However, they may agree on using a means of payment requiring additionalfollow up called a Bill of Exchange.

When you use a Bill of Exchange, the vendor:

Provides the customer a credit that is secured by the Bill ofExchange.

Might cash the Bill of Exchange at its bank before the due date, butits obligation toward the bank regarding the cashed Bill of Exchangeusually lasts until the customer pays its Bill of Exchange.

To use the Bill of Exchange functionality, set up:

A method of payment

Journal names

General Ledger accounts

Posting profiles

Procedure: Set up Journal Names

Follow these steps to set up journals:

1. ClickGeneral ledger, clickSetup, clickJournals, and then clickJournal names.

2. Set up a journal name for each stage:o Draw

o Protest

o Redraw

o Remit

o Settle

FIGURE 4.8 JOURNAL NAMES FORM


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Procedure: Set Accounts Receivable Parameters

Follow these steps to designate posting profiles for a bill of exchange:

1. ClickAccounts receivable, clickSetup, and then clickParameters.

2. Click the Ledger and sales tax tab.

3. Select the posting profiles in the Bill of exchange, Protest bill ofexchange, Remit for collection, and Remit for discount fields.

FIGURE 4.9 ACCOUNTS RECEIVABLE PARAMETERS FORM, LEDGER ANDSALES TAX TAB

Procedure: Create of Bills of Exchange Automatically

In Microsoft Dynamics AX 2009 you can create a bill of exchange automaticallyor manually.

When you post an invoice with the Automatic posting check box selected on themethod of payment being used and bill of exchange selection on file formats,customer transactions are created as usual and immediately settled with a new setof Bill of Exchange transactions. An invoice is posted and a Bill of Exchange iscreated automatically, then the following entries are generated in the GeneralLedger:

Debit Credit

Customer summary account Sales revenue

Customer summary account Sales tax

Bill of Exchange account Customer summary account


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Follow these steps to automatically create bills of exchange:

1. ClickAccounts receivable, clickSetup, clickPayment, and thenclickMethods of payment.

2. Click the File formats tab.

3. Select the Automatic posting check box.

Procedure: Create Bill of Exchange Manually

Follow these steps to create a Bill of Exchange manually:

1. ClickAccounts receivable, clickJournals, clickBill of exchange,and then clickDraw bill of exchange journal.

2. Press CTRL+N to create a journal.


4. In the Account field, select the customer account.

5. Click the Functions button, and then clickSettlement.

6. Select the open transactions, and post the journal line.

If several lines are selected in the Open transaction editing form, inthe field Period group, select invoices by:

Invoice

Date

Week

Total

Journal lines then automatically are created based on your choice.

Demonstration: Bill of Exchange - Invoice a Free TextInvoice

This demonstration uses all the steps involved in the process of manuallydrawing, protesting, redrawing, remitting, and settling a Bill of Exchange.

HINT: Each part of this demonstration depends on completing the previous

parts of the demonstration.

Follow these steps to invoice a free text invoice for customer 1104:

1. ClickAccounts receivable, and then clickFree Text Invoices.

2. Click the Free Text Invoice button.

3. Click the Customer account arrow, and then click1104, DesertWholesales.

4. Enter10/01/2008 in the Date field.

5. Click the Invoice lines tab.


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6. In the Description field, enterSeptember Services.

7. Click the arrow in the Ledger account list, and then click401200.

8. Enter480 in the Amount field.

9. Click the Posting button, and then clickFree text invoice.

10.ClickOK.

11.Close the forms.

An invoice generates the following entries in General Ledger:

Debit Credit

Customer summary account Customer revenue

Demonstration: Bill of Exchange - Draw Bill of Exchangein Journal

The open customer transaction with the transaction type Free Text invoice is the

basis for creating the Bill of Exchange.

Follow these steps to create the bill of exchange in journal.

1. ClickAccounts receivable, clickJournals, clickBill of exchange,and then clickDraw Bill of Exchange journal.

2. Press CTRL+N to create a new journal.

3. Click the Name arrow, and then clickARBOE_D.

4. Click the Linesbutton.


6. Click the Account arrow, and then click1104.

7. Click the Functionsbutton, and then clickSettlement.

8. Click the Markcheck box for the $480.00 invoice createdpreviously.

9. Close the Open transaction editing form.

10.Click the Postbutton, and then clickPost.

11.Close the forms.

A draw process generates the following entries in General Ledger:

Debit Credit

Bill of Exchange summary account Customer summary account


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Demonstration: Bill of Exchange - View Bill of ExchangeJournal Inquiry

Follow these steps to verify that a Bill of Exchange and a related line with astatus of Drawn and Sequence number of 1 is created in the Bill of exchangejournal inquiry:

1. ClickAccounts receivable, clickInquiries, clickBill of exchange,and then clickBill of Exchange Journal.

FIGURE 4.10 BILL OF EXCHANGE JOURNAL INQUIRY


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Demonstration: Bill of Exchange - View Bill of ExchangeStatistics Inquiry

Follow these steps to check that a bill of exchange with the Drawn status iswritten up in the Bill of exchange statistics inquiry:

1. ClickAccounts receivable, clickInquiries, clickBill of exchange,and then clickBill of exchange statistics.

FIGURE 4.11 BILLS OF EXCHANGE STATISTICS INQUIRY


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Demonstration: Bill of Exchange - Protest

If a customer does not accept the Bill of Exchange or does not pay it on time,change the status of the Bill of Exchange from Drawn to Protested. Follow thesesteps to make the changes:

1. ClickAccounts receivable, clickJournals, clickBill of exchange,and then clickProtest bill of exchange journal.


3. Click the Name arrow, and then clickARBOE_P.


5. Enter 10/5/2008 in the Date field.

6. Click the Account arrow, and then click 1104.


8. Click the Markcheck box for the voucher.

9. Close the Open transaction editing form.10.Click the Bill of exchange tab.

11. In the Protest cause field, select Not accepted.

12.Click the Post button, and then clickPost.

13.Close the forms.

A protest generates the following entries in General Ledger:

Debit Credit

Protest Bill of Exchangesummary account

Bill of Exchangesummary account


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Follow these steps to verify that a new line with a status of Protested andSequence number of 2 is created in the Bill of exchange journal inquiry:


FIGURE 4.12 BILL OF EXCHANGE JOURNAL INQUIRY


Follow these steps to verify that a bill of exchange with the Protested status iswritten up in the Bill of exchange statistics inquiry:


FIGURE 4.13 BILLS OF EXCHANGE STATISTICS FORM


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Demonstration: Bill of Exchange - Redraw

You can redraw a protested Bill of Exchange. This feature settles the protestedBill of Exchange with a new transaction with the status Redrawn with regard tothe protested Bill of Exchange. Follow these steps to redraw a protested Bill of

Exchange:

1. ClickAccounts receivable, clickJournals, clickBill of exchange,and then clickRedraw bill of exchange journal.


3. Click the Name arrow, and then clickARBOE_RD.



6. Click the Account arrow, and then click 1104.


8. Select the Markcheck box for the open, protested transaction fromthe invoice, and then close the Open transaction editing form.

9. Click the Post button, and then clickPost.

10.Close the forms.

A redraw process generates the following entries in General Ledger:

Debit Credit

Bill of Exchangesummary account



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Follow these steps to verify that a new line with a status of Redrawn andSequence number of 3 is created in the Bill of exchange journal inquiry:


FIGURE 4.14 BILL OF EXCHANGE JOURNAL FORM


Follow these steps to ensure that a bill of exchange with the Redrawn status iswritten up in the Bill of exchange statistics inquiry:


2. Ensure that bills with a Redrawn status are written up and thecorresponding bills with a Protested status are written down in theinquiry Bill of Exchange statistics.

Demonstration: Bill of Exchange - Remit

Follow these steps to create a remittance.

1. ClickAccounts receivable, clickJournals, clickBill of exchange,

and then clickRemittance journal.2. Press CTRL+N to create a new record.

3. Click the Name arrow, and then clickARBOE_Br.

4. Click the Bill of exchange tab.

5. Click the Remittance type arrow, and then clickCollection.

6. Click the Bank account arrow, and then clickUSA OPER.


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7. Click the Linesbutton. Notice that the Remittance type field on theBill of exchange tab cannot be changed in the journal lines, but theother fields can be edited before posting.


9. Click the Account arrow, and then click1104.

10.Click the Functionsbutton, and then clickSettlement.11.Select the Markcheck box for the open transaction from the invoice,

and then close the Open transaction editing form.

Or, you can click the Payment proposalbutton, and then clickProposal by due date to select the transactions to transfer.

12. If the remittance includes a payment fee, this is displayed or can beselected on the Payment fee tab.

13.Click the Functionsbutton, and then clickGenerate remittance togenerate and print the payment file for the bank. The field Paymentstatus on the journal lines is therefore set to Sent on the generatedtransactions.


Notice that transactions must not be partially settled in remittance journals.

When you post remittances for discount, the following entries are generated inGeneral 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 aregenerated in General Ledger:

Debit Credit

Remit for collection account Bill of Exchange account

NOTE: If several transactions are selected for settlement in the Open

transactions editingform with various due dates, the latest is selected for all

transferred transactions. If several transactions are selected through the

Payment proposalbutton, and thenProposal by due date, the date entered in theDate of paymentfield 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.


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Demonstration: Bill of Exchange - Settle

Follow these steps for the final settlement of the Bill of Exchange to occur in thisjournal:

1. ClickAccounts receivable, clickJournals, clickBill of exchange,

and then clickSettle bill of exchangejournal.


3. Click the Name arrow, and then clickARBOE_S.

4. Click the Bill of exchange tab.

5. Click the Remittance type arrow, and then clickCollection.

6. Click the Bank account arrow, and then clickUSA OPER.


8. Click the Payment proposal button, and then clickProposal byDue date.

9. In the Customer payment proposal form, click the Status arrow,

and then clickRemitted.10.ClickOKto run the payment proposal.

11.Click the Post button, and then clickPost.

Note that you also can settle a Bill of Exchange through the Payment journal.

When a Bill of Exchange remitted for discount is settled, the following entriesare 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 entriesare generated in General Ledger:

Debit Credit

Ledger account for the bank used Remit for collection account

Close Settled Bill of Exchange in Remittance File

Follow these steps to change the status from Honored bills to Honored closedbills in Bill of Exchange statistics:

1. Select the Closed field on the Status tab page in the Remittance filefor customers form.

2. Access the form from the Method of Payments form and theInquiry button on Bank accounts.

Notice that closing an honored Bill of Exchange through the Close button in theBill of Exchange journal does not change the status in Bill of Exchange statisticsfrom Honored bills to Honored closed bills.


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Procedure: Protest a Settled Bill of Exchange

In certain cases you must protest and reopen an honored Bill of Exchange. Dothis in the Protest of Bill of Exchange journal by following these steps:

1. Create a protest Bill of Exchange journal.

2. On the Bill of exchange tab page select the Bank account andRemittance type to use when you settle the Bill of Exchange.

3. Select the Protest settlements field to indicate that honored (settled)bills of exchange should transfer into the journal lines.

4. Click the Lines button. Select the customer account for the invoice,and then click the Functions button, and then Select settled bills ofexchange. Check the honored transaction from the invoice, return tojournal lines, and enter an Offset account.

5. On the Bill of exchange tab page, in the Protest cause field, selectfrom:

o None

o Not Accepted

o Not paid

6. Post the journal.

When a settled Bill of Exchange is protested, the following entries generate inGeneral Ledger:

Debit Credit


Ledger account forthe bank used

The protested Bill of Exchange now completes a new cycle (redrawn, remitted,honored).

Protest Settled and Closed Bill of Exchange

In certain cases you must:

Protest and reopen an honored Bill of Exchange that also is closed inthe 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 writtendown in the inquiry Bill of Exchange statistics.


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Test Your Knowledge

1. Five journal names must be set up to process activity in the Bill of Exchangejournal. What are they?

2. Categorize the following items:

_____ 1. What accounts areupdated when you post a freetext invoice for a customer?

_____ 2. What accounts areupdated when you issue a bill ofexchange at the request of thecustomer?

_____ 3. What accounts areupdated when you sell the bill ofexchange to the bank?

_____ 4. What accounts areupdated when the customerremits the payment to the bank?

a. Debit the cust. summary accnt. thathas posting type of "customerbalance" and credit the "customerrevenue" accnt.

b. Debit the Bill of Exchange Summaryaccnt. and credit the CustomerSummary accnt.

c. Debit the ledger accnt. for the bankused and credit the Remit forCollection accnt.

d. Debit the Remit for Collection accnt.and credit the Bill of ExchangeSummary accnt.

Ledger Accrual

Most common accounting rules require companies to report income when earnedexpenses are incurred. Standard practice is to record and recognize revenues andexpenses in the period they are incurred, because of their significance to the

future income and cash flow of the company.

In Microsoft Dynamics AX 2009, the Accrual schemes feature is implemented todefer the cost or income throughout the year.

Scenario

Contoso decided to defer the cost of the insurance policy throughout the year torecognize the insurance policy costs at the appropriate time.


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Procedure: Create an Accrual Scheme

Ledger Accrual makes it possible to redistribute the costs or revenues of a journalline to be recognized into the appropriate periods.

Follow these steps to create an accrual scheme:

1. ClickGeneral ledger, clickSetup, clickPosting, and then clickAccrual schemes.

2. Press CTRL+N to create a new accrual scheme.

3. Enter an Accrual identification and a Description of accrualscheme.

FIGURE 4.15 ACCRUAL SCHEMES FORM

Procedure: Create an Accrual Scheme - Ledger posting

Follow these steps to define the ledger posting information for an accrualscheme:

1. From the Accrual schemes form, click the General tab.

2. Select an account number in the Debit and Credit fields.

The debit account numbers are used for posting the accrued debitamounts onto an asset account and for posting the accrued creditamounts onto a liability account.


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3. Select a Voucher to indicate if:

Base - The main voucher number should be used for allgenerated transactions.

Single - There is a new voucher number for each transactiondate.

Multiple - There is a new voucher number for all accruedtransactions.

4. IfSingle orMultiple is selected in the Voucher list, select aNumber sequence code for the voucher numbers.

5. Enter a Transaction text that can be used on all the accruedtransactions, for example %1 means Main voucher number. Refer tothe Help for additional clarification. If no text is written in this field,the transaction text from the main voucher is used.

6. In the Posting date list, select when the accrued transactions shouldbe posted: Beginning, Middle, orEnd.

Procedure: Create an Accrual Scheme - Duration andPosting Settings

Follow these steps to define the duration and posting settings for an accrualscheme:

1. From the Accrual schemes form, click the General tab.

2. Select the duration of the accrual in the Calendar type list. TheCalendar type has three overall possibilities: Calendar, Fiscal, andAllocation key.

The duration affects how long the accrual schemes are open.

NOTE: The ledger periods must match the whole duration being defined.

3. Select a Period frequency ofDaily, Monthly, Quarterly, Half-Yearly, orYearly. The period frequency is available only ifCalendar orFiscal is selected in the Calendar type list.

4. Enter the Length to determine how many occasions of the selectedperiod type, for example two years.

NOTE: If Calendar type is the Allocation Key, you cannot edit Length. Select aPeriod key instead.


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5. In the Posting frequency list, select how frequently the postingsshould occur.

6. In the Value posting list, select Even if all months or quartersshould be debited by the same amount, or select Scale if each monthshould be debited based on the number of days measured in relationto 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 31days 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:

1. ClickGeneral ledger, clickJournals, and then clickGeneraljournal.

2. Press CTRL+N to create a new journal or select an existing journal,and then click the Lines button.

3. Enter a ledger account where the accrual will be recorded. Forexample, use ledger account 401400, Accrued Sales (shipped notinvoiced).

4. Click the Functions button, and then clickLedger accruals.

5. In the Accrual identification field, select the accrual scheme toprocess.

6. View or change the amount in the Base amount field. This is theamount from the journal lines minus the sales tax amount, becausesales taxes are not accrued.

7. Enter the Start date for the first accrued transaction. The End datefield is filled in automatically based on the configuration of theaccrual scheme.

8. Select whether the account or the offset account on the journal line isthe account to be accrued. The accounts defined in the accrualscheme are used as offset accounts for the accrual transactions.


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9. Click the Transactions button to view the generated allocationtransactions. The form shows the new transactions with the new dataand the new voucher if the voucher number is set up.

10.ClickOKto accept and return to the journal line.

FIGURE 4.16 LEDGER ACCRUALS FORM

NOTE: The accrual feature posts the whole amount at the same time.


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Lab 4.3 - Ledger Accrual

Scenario

Phyllis, the Accounting Manager at Contoso wants to redistribute the costs of theinsurance 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 amountshould be divided into twelve payments.

At Contoso, verify that the insurance payments are deferred to theactual date of payment.

The accrual entries must start on 08/01/2008 and should be posted toaccount 200110.

Challenge Yourself!

Help Phyllis complete the following:

Set up an Accrual scheme.

Use the Accrual scheme in a journal.

Need a Little Help?

1. Create the Monthly accrual scheme.

2. Create a new journal.

3. Populate the journal.

Step by Step

First, create the Accrual scheme.

1. ClickGeneral ledger, clickSetup, clickPosting, and thenclickAccrual schemes.

2. Press CTRL+N to create a new accrual scheme.

3. Enter Monthly in the Accrual identification field and Monthlyaccrual as the Description.

4. Click the General tab.5. Enter account number 200110 in the Debit and Credit fields.

6. Click the Voucher list arrow, and then clickBase as thevoucher that will be used for all generated transactions.

7. Enter %1 Accrual monthly in the Transaction text field.

8. In the Calendar type field, select Calendar.

9. In the Period frequency field, select Monthly.


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10.In the length field, enter 12 to indicate how many occasions ofthe selected period type.

11.Click the Posting frequency arrow, and then clickMonth.

12.In the Posting date field use the arrow to select End for whenthe accrued transactions should be posted.

13.In the Value posting field, select Even to debit the sameamount in all months.

14.Close the form.

Next, create a new journal.

1. ClickGeneral ledger, clickSetup, clickJournals, and thenclickJournal names.

2. Press CTRL+N to add a line.

3. In the Name field, enter INSUR.

4. In the Description field, enter Insurance Accrual.5. In the Journal type field, select Daily.

6. In the Voucher series field, select Gene_10.

7. Close the form.

Finally, populate the journal.

1. ClickGeneral ledger, clickJournals, and then clickGeneraljournal.


3. In the Name field use the arrow to select INSUR.4. Click the Linesbutton.


6. In the Account field, type 606200.

7. In the Debit field, enter $3,499.

8. Click the Functionsbutton, and then clickLedger accruals.

9. Click the Accrual identification arrow, and then clickMonthly.

10.Accept the values in the Base amount and Start date fields.

11.Click the Transactionsbutton to see the generated allocation

transactions. The form shows the new transactions with thenew data and the new voucher.

12.Close the Ledger accrual transactions form.

13.ClickOK.



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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 2009 offers a variety of functionality to handlecustomer and vendor payments with basic or more advanced functionality.


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Quick Interaction: Lessons Learned

Take a moment and write down three key points you have learned from thischapter

1.

2.

3.


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Solutions

Bridging Accounts

1. When you use bridging accounts, posting occurs as a two-step process. Whatare the two steps?

MODEL ANSWER:

First, the payment posts to a temporary (bridging) account. This means thatinstead of debiting cash, the bridging account is debited. The second step isreversing the activity from the temporary account and posting the payment tothe bank account.

Electronic Vendor Payments

1. What three steps are required to set up electronic vendor payments? (Selectall 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

2. There are four steps required to process electronic vendor payments. Placethe steps in order.

Step:

1 : Select vendor invoices for payment

2 : Generate electronic payments

4 : Post the payments

3 : Receive confirmation from the bank

Electronic Customer Payments

1. 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.


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Centralized Payments

1. Which of the following reports will show centralized payment information?(Select all that apply)

() Customer payments report

() Vendor payments report

() Free Text Invoice report

() Payment advices report

Bill of Exchange Administration

1. Five journal names must be set up to process activity in the Bill of Exchangejournal. What are they?

MODEL ANSWER:

The five journal names are draw, protest, re-draw, remit, and settle.

2. Categorize the following items:

a 1. What accounts areupdated when you post a freetext invoice for a customer?

b 2. What accounts areupdated when you issue a bill ofexchange at the request of thecustomer?

d 3. What accounts are

updated when you sell the bill ofexchange to the bank?

c 4. What accounts areupdated when the customerremits the payment to the bank?

a. Debit the cust. summary accnt. thathas posting type of "customerbalance" and credit the "customerrevenue" accnt.

b. Debit the Bill of Exchange Summaryaccnt. and credit the CustomerSummary accnt.

c. Debit the ledger accnt. for the bank

used and credit the Remit forCollection accnt.

d. Debit the Remit for Collection accnt.and credit the Bill of ExchangeSummary accnt.


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AX2009 Advanced Payments

Documents