Monday, December 1, 2014

Royalties Management for Microsoft Dynamics AX 2012 R3

I'm going to explain the Dynamics AX 2012 R3 Royalty Management that how to set up a Royalty Agreement that specifies the royalty that a person will receives against the sale of item for it's goodwill. Let’s have a look that what is meant by term Royalty? A Royalty is a fee that one party (the licensee) pays to another party (the licensor) for the use of intellectual property, including logos or copyrights. Normally, the original owner of a product sells their product against a certain share of future revenues.
Let's start with the parameter settings, Navigate to Accounts Payable > Setup > Accounts payable parameters
  • Select the starting day of the week 
  • In the Accrual journal name field, select the journal to which to post royalty accrual amounts when the royalty is approved.  
  • In the Accrual journal name field, select the journal to which to post royalty accrual amounts when the royalty is approved.  
  • In the Accrual account field, select the account to which to post interim royalty liabilities that will be the liability account in which the royalty liabilities would be credited. 
  • In the Expense account field, select the account to which to post interim royalty expenses that will be the charge account where the royalties would be charged. 
  • Procurement category is used for vendor invoice creation to pay the royalty liabilities. 
Note: If you calculate royalties on a weekly basis, in the Royalties field group, in the Starting day of week field, select the day of the week on which to calculate royalties.
Once the parameter setups is done now we can create Royalties agreement. To setup royalties agreement use the following procedure.  
Navigate to Accounts Payable > Common > Royalties > Royalty agreements
  • In the Royalties Agreement form click New to create new Royalties Agreement in the upper pane.   
  • In the Royalty contract field enter the identifier for the royalty agreement. 
  • Select the vendor account number for the Royalty contract in the Vendor Account field.   
  • Enter the description of the Royalty agreement.  
  • Select the unit of measure for the royalty quantity.  
  • Select or view the royalty agreement unit type. The values are Inventory unit and Catch weight unit.  
  • Select the unit of measure royalty option for the royalty agreement. This option identifies the unit of measure for the royalty line. If you use the Exact match option, the unit of measure for the royalty line must exactly match the unit of measure specified in the sales order. If not, the royalty does not qualify. If you use the Convert option, the unit of measure for the royalty line is the same as the unit of measure for the royalty agreement. The royalty unit of measure is converted to the sales order unit of measure, or the catch weight unit of measure, based on the option selected in the Unit type field.  
  • Select the calculation date type as Created, Requested receipt date, Requested ship date according to the need. 
  • Enter the Start date of the Royalty agreement on which the agreement becomes effective
  • Enter the end date  on which royalty will no longer be created based on this agreement. If the agreement does not end, leave the field blank.
In the middle pane of the Royalty Agreement form we can enter the following information,
  • In the Cumulate sales by field, select whether to cumulate royalties by invoice or by a time period, such as weekly or monthly.  
  • In the Taken from field, select whether the royalty value is taken from the net price, or gross price of the item.  
  • In the Accrual account and Expense account fields, select the accounts used for interim liability postings and interim expense postings, respectively.  
  • Verify that the correct currency is selected and then, if a royalty must be approved before accrual or payment, select the Approval required check box.  
  • In the Calculate by field, select whether the royalty break is based on the item quantity on the line item or the amount of the line item.
In the Lower pane of the Royalty Agreement form, we can define the royalties calculation method  and items  on which royalty has to be calculated. using the following steps,
  • Click on Add new button on the lower pane of the royalty agreement form 
  • all the royalty agreement generic information will be populated from the header except, 
  • select the Currency code which determines the currency in which royalty is remitted. You can specify a generic currency, which is converted on the order, or you can specify a specific currency for the royalty. 
  • select the amount type as Amount per unit of amount per sold unit, Fixed amount or Percentage of the net amount sold.  
  • Enter the Start date of the Royalty agreement on which the agreements becomes effective 
  • Enter the end date  on which royalty will no longer be created based on this agreement. If the agreement does not end, leave the field blank.
Now move to selection tab in order to select the specific item for agreement,
  • Click on add button to create a new line 
  • Select the item number 
  • Select the product dimension i.e. Size, Color, Configuration etc. 
  • Select the item storage dimensions i.e. Site, Warehouse, Location etc. 
Now move to Royalty amount tab,
  • Enter the From quantity/amount in which a royalty has to be calculated or leave it blank 
  • Enter the To quantity/amount in which a royalty has to be calculated or leave it blank 
  • Enter the value of the royalty.
Validate the Contract by clicking on Validate button on the upper pane of the royalty contract.
Now once the agreement is validated in the Royalty agreement form, we can use the royalty agreement as per the terms in the agreement on the sales order line. To view the royalty amount generated for the sales order transactions, create a sales order for the item and the customer as specified in the royalty agreement.
Navigate to Accounts Receivable Common Sales Order > All Sales order 
On the sales order for royalty agreement, use the following steps:
  • Click on the Sales Order Line button  
  • Click on the Price details button in the view group

After the sales order is invoiced, we can see the royalty claims created by the systems according to the agreement. 
Navigate to Accounts Payable > Common > Royalties > Royalty Claims
Open the Royalty Claim, by clicking on edit button to view the details of the royalty claim,
Note: As you can see the status of the royalty claim is 'Calculated'. It will be only done, if the 'Approval' check box is selected on royalty agreement in middle pane of the agreement. If this is cleared then systems will auto post the Royalty claims to the ledger accounts defined in the agreement and the Status of the Claim will be auto set to the 'Completed'. 
 
Once the Claim is reviewed, we need to approve this for further posting,
  • Click on Approve button on the action pane of the Claim grid.
Once the royalties are approved, click on 'Process' button to process the Royalty claim for payments.
  • Click on 'Ok' button to process the royalty claim.

Now an invoice for the Royalty claim has been created for the vendor.
Navigate to Accounts Payable > Common > Vendor

We can process the vendor settlements through the 'Payment Journal' against this invoice in accounts payable module for royalty Claim payments.

Enjoy DAXING !!!!

Saturday, November 29, 2014

Broker Contract Management for Dynamics AX2012 R3


I'm going to explain the Dynamics AX 2012 R3 Broker Contract Management that  how to set up a broker contract that specifies the commission that a broker vendor receives for the sale of items or groups of items. For example, you might have a contract with a broker that states that every time a specific model of television is sold, the broker receives a percentage of the sales price. Commissions can be calculated based on a fixed amount, a percentage, or an amount per unit.  
This functionality will help in managing payment of fees to brokers for the service of facilitating sales with broker contract management. This will reduce the administrative burden of broker payments. 

Let start with the parameter settings, Navigate to Accounts Payable > Setup > Accounts payable parameters
  • In the Accounts payable parameters form, in the left pane, click Broker and royalty.   
  • Enter the Journal name used to create the vendor liability in the Invoice journal name field.  
  • In the Differential journal name field enter the journal name used to post the Cancelled brokerage amount.  
  • In the Expense journal name field, enter the journal name used to post to the broker expense account.  
  • Select the account which will be used for expenses related to brokerage in the Expense Account field.  
  • You can check or uncheck the Manual Posting checkbox to define whether the journal should be posted automatically or manually.  
  • In the Accounts Payable Parameters form in the Number Sequences select the number sequence in the Broker Claim Invoice field.
After the parameters are setup, we need to perform the following two setups:
1- Create the differential Reason Code and attach accounts for posting the differentials, in case of any differential exists for Broker commission.
Navigate to Accounts Payable > Setup > Broker > Differential reasons
  • Click on new button 
  • Enter the differential code 
  • Enter the description 
  • Select the ledger account for differential posting
2- Create the Charges Code for broker contracts and its posting. Select the Prorate check-box on this form and select the options for posting under the Debit and Credit on Charges Code form.
Navigate to Accounts Receivables > Setup > Charges > Charges Code
  • Click on new button 
  • Enter the differential code 
  • Enter the description 
  • Select the ledger account for differential posting
Once all these setups are done now we can create Broker Contracts now. To setup broker contracts use the following procedure. 
Navigate to Accounts Payable > Common > Broker > Broker Contracts

  • In the Broker Contracts form click New to create new Broker Contract in the upper pane. 
  • In the Status field select the status as Planning and enter the id in the Broker Contract ID field for the broker transaction. 
  • Select the vendor account number for the broker in the Broker Account Number field. 
  • Select the dates in the From Date and To Date fields. Select the charges code in the Charges Code field. 
  • In the Category field select one of the options (pcs, percent, fixed) to determine how the value will be used to calculate the broker fee and enter the value accordingly in the Charges Value field and also select the currency in the  Charges Currency Code field.
In the lower pane of the Broker Contracts form we can enter the contract details applicable to the contract and specify the Item code, Item relation and customers or customer groups to which this contract is applicable.
  • To enter the contract details go to Accounts Payable > Common > Broker > Broker Contracts. 
  • In the Broker Contracts form, in the lower pane click Add Line to add line to specify the contract details created in the upper pane. 
  • In the Item Code field select Table, Group or All for the contract. 
  • In the Item relation field select the item number, item group or item discount group as per the selection in the item code field. 
  • Select Table, Group or All in the Account Code field to select to which customer this statement applies. 
  • Select the Account Number or Customer Group in the Account Selection field. 
  • In the Break type field select either quantity or amount which determines the basis for evaluation of brokerage amount. 
  • In the Break field, we can specify the break value for the quantity or amount as selected in the Break Type field. 
  • Other fields such as Category, Charges Code, Charges Value, and Charges Currency Code it will automatically populate from the Broker Contract line.
 
We can set the status of the broker contract to the following stage's: 
  • Planning: Default Status of the Contract when created. The contract line and the contract details can be edited only when the status of the contract is ‘Planning’.  
  • Approved: Unless the status of the contract changes to Approved, the contract terms and broker fees are not applicable on the sales transactions. 
  • Cancelled: The status of the broker contract should be changed to Cancelled to cancel the contract terms. 
  • Closed: The status of the contract is Closed when the broker contract is closed.
Note: We cannot use the broker contract on the sales order Until the Status of the contract processing in the Broker Contract form is changed to Approved from Planning, the contract terms are not applied on the sales orders. 
 
Now once the contract status is changed to Approved in the Broker Contract form, we can see the broker commission is generated as per the terms in the broker contract on the sales order line. To view the broker fee generated for the sales order transactions, create a sales order for the item and the customer as specified in the broker contract.
Navigate to Accounts Receivable Common Sales Order > All Sales order
  • Create a New sale order 
  • Select item and its relevant information on sale order fast tab 
  • Click on the Sales Order Line button 
  • Click on the broker commissions in the view group.  
In the Broker Commission form we can see the broker vendor account, broker contract id for the transaction and the applied value for the contract.
In the above example as you can see we have the broker contract for the customer US-003 with item T0020 at 5 % on the net amount of the sales order. The results are 
Net Amount25,000 
Broker Commission:  25,000 * 5 % = 1,250 
 
After the sales order is invoiced, we can see the lines created for the Broker payments in the Broker Claims form with open status where we can view all the broker claims filtered based on different parameters and also Approve or Close the broker claims and make the broker payments.
Navigate to Accounts Payable Common > Broker > Broker Claim
Once the claim is reviewed, we can approve or close the Claim. In order to approve the broker commission claim, enter the approving amount in broker lines under 'Approving' field.
Click on 'Approve' button to approve the claim, system will automatically post the claim and expense journals in General journal GL module.
Note: If the Manual check-box is not marked in the Accounts Payable Parameters > Broker and Royalty the journals will be posted automatically to post the amount in the respective accounts as mentioned in the initial setup.
We can process the Vendor through the Accounts payable module using the payment journal under the Journal section as standard Dynamics AX vendor payment works.
 
We can also 'Close' the broker claim after approving it using the following procedure:
Navigate to Accounts Payable Common > Broker > Broker Claim
Select the Claim 
Click on Close button
Note: Once the status is Closed you cannot edit the Broker Claim.

Enjoy the DAXING !!!!