How to transfer Purchase orders to a new fiscal year?

In this post, i am going to describe how to transfer Purchase orders to a new fiscal year.
I am using COM data set here.
I am transferring the Purchase order created on Fiscal year 2014 to the next fiscal year 2015

Go to Accounts Payable > Common > Purchase Orders > All Purchase Orders

Click New > Purchase Order button on action pane

Set Vendor Account = PVND000001

Click Yes on AX message box

Click OK button

Click Add line button

Set Procurement Category = APPAREL AND LUGGAGE AND PERSONAL CARE PRODUCTS

Set Quantity = 1

Set Unit = Ea

Set Unit price = 10

Click Financials > Distribute amounts button

Set Ledger Account = 999-64500-120-101 [Set ledger dimension for which Budget Register Entries are already created. I will discuss Budget Register Entries in my next posts. This is the ledger dimension of Expense Account Structure as we are doing expense transaction (Purchase Order)]

Click Purchase tab on the top
Click Confirm button under Generate section

Go to General Ledger > Periodic > Fiscal year close > Purchase order year -end process

Users can select one of the two year -end options depending on their needs:
Process and carry forward budget
Process and do not carry forward budget

Process and carry forward budget:
Process and carry forward budget means that Purchase order is transferred to the next fiscal year as well as Carry forward budget is also created against that particular Purchase order.
Process and do not carry forward budget:
Process and carry forward budget means that Purchase order is transferred to the next fiscal year but no Carry forward budget will be created. So, in order to consume the budget against that particular Purchase order therefore user will have to create the Budget register entries separately otherwise Purchase order cannot be confirmed if Budget Control configuration is turned on and activated.

I am selecting Process and carry forward budget for now.
Set Fiscal year to 2014 as i have done Purchase order transaction on the fiscal year 2014 as stated above.
Accounting date is populated as 12/31/2014 because we are doing Purchase order year -end process to close the current year end Purchase order transaction and open that particular Purchase order transaction on the next year that's why Accounting date is populated as 1/1/2015. We cannot change these parameters as all Closing and Opening parameters are totally dependent on the Fiscal year set on Calendar parameter.
Click Retrieve purchase orders button

Click OK button
Select the Purchase order that was created above.

Click Process
Click OK

Click OK
An info log message as shown in the screenshot below should be displayed

You can see in the above screenshot that Budget register entries are also created for the next fiscal year as well as current year Budget register entries are also updated.
Source document Purchase Order is also linked to both the Carry forward budget register entries as well as Original budget register entries as Purchase order consumes the budget register entries.

Next year Carry forward budget screenshot:

Current year Original budget screenshot

Carry forward budget on the accounting date of 1/1/2015 with 100 expense amount is created because i created Purchase order of 100 and then ran Purchase order year end process for that Purchase order.
Original budget was fully consumed of the current fiscal year with the -100 expense amount in order to balance the expense budget amount of Carry forward budget with the Original budget. So, the net expense amount of sum of expense amounts of Carry forward budget and the Original budget will be zero as we have fully consumed the budget.
PO year end process closed out the current fiscal year Budget register entry on the accounting date 12/31/2014 which is a closing period and opened Carry forward budget register entry on the next fiscal year's first period on the accounting date 1/1/2015

Happy Daxing!

How Sub Ledger Journal Entries Transfer works in Dynamics AX?

Sub Ledger Journal Entries Transfer
Subledger journal entries transfer means that additional performance optimization and summarization rules can be defined for the transfer of subledger journal entries to General ledger. The transfer process can be defined so that it occurs synchronously or asynchronously. During the transfer process, a user has the option to summarize the subledger journal entries for similar source documents to reduce the amount of data in General ledger. User also has the option to select particular source documents like Free text invoices, Purchase Orders, Purchase requisitions, Vendor Invoices etc. to reduce the amount of data in General ledger.
The path of the form is General ledger > Setup > General ledger parameters

There are two rule type on which Batch transfer rules can be applied:
Document
Company

By selecting Company rule type then it applies to all the source documents that are linked to the particular legal entity and by selecting Document then it applies to the specific source documents.

There are three types of transfer mode:
Scheduled batch
Synchronous
Asynchronous

Scheduled batch:
It will run within the batch jobs with a scheduled interval: E.g. every 10 minutes or once a day or perhaps once a week.
Synchronous:
It will execute from within the posting process started by the user itself. For example: when an invoice is posted, the posting logic will also execute posting the subledger lines. This is from within the post task the user started.
Ascynchronous:
Posting process will only create the document and subledger lines from the client process. Then after it is finished the server thread will pick it up as soon as possible.
The asynchronous method is a thread on the server which will pick up immediately after creating the subledger entries.
Advantage: Client machine will be earlier ready and the user can continue with other tasks.

Summarized entries can only be applied for Scheduled batch and Asynchronous batch transfer mode because in synchronous transfer mode, transactions cannot be posted in summary or detail whereas in Scheduled batch and Asynchronous, transactions can be posted in summary or detail.

How Trial balance works in Dynamics AX?

What is Trial Balance?
The list of ledger accounts and their balances at a given time.
Typically generated at the end of an accounting period.
Debits must equal credits.
Does not prove that all transactions have been recorded or that the general ledger is correct.

Trial balance list page screenshot of Dynamics AX
General Ledger > Common > Trial balance

Debit: 
Debits are recorded against the particular account on the trial balance list page when there is debit transaction done against the particular account.
Transactions can be done from General Journal form etc
Entries to the left side of the account.
Amounts that are owned by you or belongs to you.
Typically increases assets and expenses.
Credit:
Credits are recorded against the particular account on the trial balance list page when there is credit transaction done against the particular account.
Transactions can be done from General Journal form etc
Entries to the right side of the account
Amounts that are owed to others or belongs to others
Typically increases liabilities, equity and revenues

Opening balance:

Closing balance of the previous day.

Formula: 

Opening balance = Beginning balance of  today's date - 1

Closing balance:

Closing balance is the ending balance of the current day.

Formula:

Closing balance = Beginning balance + (Debit - Credit) 

Happy Daxing !

How to create Purchase Order from Purchase requisition?

In this post, i am going to describe how to create Purchase Order from Purchase Requisition
I am using COM data set here.

Go to Procurement and Sourcing > Common > Purchase Requisitions > All purchase requisitions
Click New > Purchase requisition button on action pane
Set Name = Test PR
Click OK button
Click Add line button
Set Procurement category = APPAREL AND LUGGAGE AND PERSONAL CARE PRODUCTS
Set Product = Test Product
Set Quantity = 1
Set Unit = Ea
Set Unit price = 100
Click Financials > Distribute amounts button
Set Ledger Account = 999-61100-120-101 [Set ledger dimension for which Budget Register Entries are already created. I will discuss Budget Register Entries in my next posts. This is the ledger dimension of Expense Account Structure as we are doing expense transaction (Purchase Requisition)]
Close the form
Refresh the list page
Click the submit button on the yellow bar above the grid

Make sure that Purchase requisition workflow is properly setup and configured. I will discuss workflows in detail in my next posts.
Press CTRL + D to open AOT
Go to Forms > Tutorial_WorkflowProcessor
Right click on Tutorial_WorkflowProcessor
Click Open
Click Start

Wait until workflow process changes from "1 records is currently in queue" to "0 records is currently in queue".
Click Actions > Approve button on the yellow bar.

Make sure that workflow process is in running state.
Wait until workflow process changes from "1 records is currently in queue" to "0 records is currently in queue".
Make sure that the workflow status should be "Approved" and Budget check should be displayed on the first column of the grid. See the screenshot below for more clarification.

Go to Procurement and Sourcing > Common > Purchase Requisitions > Release approved purchase requisitions
Select the Purchase requisition created above.
Click New > Purchase order button

Set Vendor account = PVND000001
Click OK button
Purchase order should be created successfully
An infolog message should be displayed for the successful creation of Purchase order

Happy Daxing !

How to create Request for quotation from Purchase Requisition?

In this post, i am going to describe how to create Request for quotation from Purchase Requisition
I am using COM data set here.

Go to Procurement and Sourcing > Common > Purchase Requisitions > All purchase requisitions
Click New > Purchase requisition button on action pane
Set Name = Test PR
Click OK button
Click Add line button
Set Procurement category = APPAREL AND LUGGAGE AND PERSONAL CARE PRODUCTS
Set Product = Test Product
Set Quantity = 1
Set Unit = Ea
Set Unit price = 100
Click Financials > Distribute amounts button
Set Ledger Account = 999-61100-120-101 [Set ledger dimension for which Budget Register Entries are already created. I will discuss Budget Register Entries in my next posts. This is the ledger dimension of Expense Account Structure as we are doing expense transaction (Purchase Requisition)]
Close the form
Refresh the list page
Click the submit button on the yellow bar above the grid

Make sure that Purchase requisition workflow is properly setup and configured. I will discuss workflows in detail in my next posts.
Press CTRL + D to open AOT
Go to Forms > Tutorial_WorkflowProcessor
Right click on Tutorial_WorkflowProcessor
Click Open
Click Start

Wait until workflow process changes from "1 records is currently in queue" to "0 records is currently in queue".
Make sure that Workflow status should be submitted because Request for Quotation button on the action becomes enable only when Purchase requisition workflow status will be submitted.
Request for quotations can only be created for Submitted PR.

Click Create Request for quotation button under actions section on action pane
Set Buying legal entity = COM
Select the Purchase requisition line
Click OK button
Request for quotation will be created
Infolog of successful creation of RFQ should be displayed

Happy Daxing !

How accounting entries are recorded on Subledger Journals of Purchase Orders?

In this post, i am going to describe how debit and credit entries are recorded on Subledger journals of Purchase Orders.
I am using COM data set here.

Go to Accounts Payable > Common > Purchase Orders > All Purchase Orders

Click New > Purchase Order button on action pane

Set Vendor Account = PVND000001

Click Yes on AX message box

Click OK button

Click Add line button

Set Procurement Category = APPAREL AND LUGGAGE AND PERSONAL CARE PRODUCTS

Set Quantity = 1

Set Unit = Ea

Set Unit price = 10

Click Financials > Distribute amounts button

Set Ledger Account = 999-61100-120-101 [Set ledger dimension for which Budget Register Entries are already created. I will discuss Budget Register Entries in my next posts. This is the ledger dimension of Expense Account Structure as we are doing expense transaction (Purchase Order)]

Click Purchase tab on the top

Click Subledger journal button under Accounting section

Subledger journal entries: 

36360 entry is picked up from Posting defintions form.

36360 is the debit entry because we are doing Accounts Payable transaction and All Accounts Payable transactions are expense transactions and debit entry is recorded against expense transactions.
37130 is the balancing entry.

Go to Accounts Payable > Common > Vendors > All Vendors
Select Vendor PVND000001
Click Edit
Expand Financial dimensions fast tab
999 is set on Fund financial dimension that's why it is appearing on first attribute of ledger dimenions of two Subledger journal entries above.

Go to General Ledger > Setup > Posting > Posting definitions
There is no matching account number specified for Matching criteria on Posting defintions form that's why for every expense account, debit entry should be generated. We set one generated entry as "Same" and the other generated entry as "Balancing" on Generated debit/credit drop down.
"Same" means that if there is any transaction is credit against the account i.e. specified on the Matching criteria then generated entry will be credit and if the transaction is debit against the account i.e. specified on the Matching criteria then generated entry will be debit. In this case, 36360 is generated entry as a result of expense account transaction (Purchase Order transaction) define on Purchase Order line distribute amounts form. 36360 is debit because we set "Same" in Generated debit/credit drop down and as already discussed above all expense transactions are debit transactions.
"Balancing" means that if the other entry is debit then the balancing entry will be credit. So in this case, 37130 is the balancing entry of 36360 that's why 37130 is recorded as credit entry on Subledger journals. 

Go to General Ledger > Setup > Posting > Transaction posting definitions
Posting defintion PREnc was set on Transaction posting definitions form that's why "PREnc" posting definition was active and Subledger entries are generated according to this posting definition.

Happy Daxing !