Wednesday, 15 November 2017

Difference between Disposition codes and return reason codes in AX7 / AX2012 R3

Hello Readers, Hope you all are well. Really happy to see good responses on the topics I have posted previously. It really encourages me to share my understanding with you all.

Today I am going to write on the difference between disposition codes and return reason codes. I often used to get confused between disposition codes and return reason codes.

What is it actually? Are they same? What are the significance of these two in the order? 

These and all other kinds of questions I often used to get. I know many of you guys must also be facing similar doubts so it is really important to share the difference between these two.

Disposition codes
It is used to specify what actions to perform on the item returned by the customer. There are various disposition actions specified in AX. We can defined disposition codes in the system and assigned disposition action to each code. Following disposition actions are available:
  • Credit
  • Credit only
  • Returned to customer
  • Scrap
  • Replace and scrap
  • Replace and credit

With each disposition action, there are certain processes predefined in order to get the desired outcome while processing the return.

You can setup charges for a specific disposition code and those charges will then be applied to return order upon selection of specific disposition code in the order.

Disposition codes are mandatory and must be specified during return.

We can utilized these disposition codes for reporting purpose as well to get the information for analysis purpose.

To get more details about disposition codes, refer THIS LINK

Return reason codes
It is nothing but reasons defined in system to know why products are returned by the customer. These reason codes are user defined and there are no return actions unlike disposition actions to specify certain processes for desired outcome.

You can setup charges against each return reason code and those charges are applied to return order upon selection of specific return reason code in the order.

Return reason codes can be mandatory or non mandatory. It is solely depend of company's business process. We can make return reason code mandatory through 'Required reason for return order' checkbox in account receivable parameter.

Account receivable --> Setup --> Account receivable parameter --> General --> Reason code requirements --> Require reason for return order checkbox.

We can utilized these return reason codes for reporting purpose to get the information for analysis purpose.


Keep Daxing !!







Friday, 11 August 2017

Disposition codes in AX 7 / 2012

Hello Readers, It's been a long time since my last post. Hope you all are well !

Today's topic is disposition code in AX 7 / 2012. This is a simple yet very important functionality of AX.

Disposition code is used to specify what action to perform for an item that is returned by the customer. It is assigned during the inspection of an item or at the time of item registration.

There are following disposition actions defined in AX

1. Credit: It is used when we are taking items back from the customer and crediting the customer account with the amount of returned items.

2. Credit only: It is used when we are not taking items back from the customer and only crediting the customer account.

E.g: It is used for low value items where item return is costlier compare to the actual cost of an item or when item is fully damaged so there is no point in taking it back.

3. Returned to customer: It is used when we reject the returned item and return it to the customer

E.g: During inspection, item passed all the required quality standards agreed with the customer.

4. Scrap: Scrap the returned item and credit the customer account

E.g: It is when damaged item is not worth repairing for or can't be repaired.

5. Replace and scrap: Scrap the returned item & replace it with new item and credit the customer account.

6. Replace and credit: Replace the returned item with new item and credit the customer account.


Each disposition code has specific actions which defines the progress of an item once it is returned by the customer.

This blog post explains the system behavior for each disposition action during item return. Click to know more about Item return

Disposition codes

1. Go to Sales and Marketing --> Setup --> Sales order --> Return --> Disposition codes
2. Press New or press Ctrl + N to create new disposition code
3. Add unique code and description
4. Specify the action for disposition code
5. If you want to associate any charges to the specific disposition code then click on Charge Button.

Eg: While returning the item to the customer, if company wants to incur any charges such as Labor charges, handling charges etc. then they can do so by assigning the charges to the disposition code. When the same disposition code use in the transaction, those charges will be applicable to the customer though customer invoice.













How to use disposition codes in the transactions?

1. Go to Sales and marketing --> Sales return --> All Return orders
2. Click on New
3. Select customer account for which we are initializing the return




















4. Click ok.



5. Click on Find Sales order.
6. Select sales order, specific sales order line/s and quantity to return
7. Click ok to get the line/s in the return order.
8. Now it is a time for item registration ( It means item arrives at company's /Warehouse's premises but not yet received). This can also be done through Arrival overview.
9. Click on Update line --> Registration














10. That's when system prompt you to select the disposition code.



11. Point to be noted here is that you can see all the disposition codes in the dropdown list except one i.e. Credit only

12. The reason is registration happens for the order only when item arrives at the company's /Warehouse's premises. In case of Credit only, item doesn't come to company's /Warehouse's premises so it won't be available in the list during registration.

13. We can select Credit only disposition code for the return order line from line details --> General tab--> Disposition code

14. Now perform the registration with the selected disposition code

14. All the steps are common till this point. Now depending on the deposition code, system performs various actions.


A. If Credit action is selected in the disposition code:
      a. As soon as registration is done, system creates a return sales order to facilitate the return of the item.
      b. Perform the quality testing if enabled in the system
      c. Once item goes though quality testing. Posting of packing slip facilitates the actual receipt of the item.
      d. We can post the packing slip either from RMA or from Return sales order
      e. Now last step is to credit the customer and this can be done by posting the invoice for the Return sales order.

B. If Credit only action is selected in the disposition code:
      a. We can go to RMA line details --> General tab to attached the disposition code for the line.
      b. After selection, registration is no longer available for the line as we are not taking an item back from the customer so it doesn't come to company's /Warehouse's premises. Registration button is disabled in this case.
      c. Return sales order is created as soon as we select deposition code.
      c. In this case we post the invoice directly from the return sales order to directly credit the customer.

C. If Return to customer action is selected in the disposition code:
      a. Once registration is done with the disposition code Return to customer for the negative line , system creates another line with positive quantity to nullify the impact.
      b. It is like we are taking an item back from the customer through negative line and returning the same item to the same customer with positive line.
     c. After this we can post the packing slip and invoice.

D.  If Scrap action is selected in the disposition code:
       a. Once registration is done with the disposition code Scrap, post the packing slip to facilitates the actual receipt of the items.
       b. Now post the invoice in order to credit the customer.
       c. As we have selected Scrap disposition code, system makes the adjustment to scrap the inventory so there will be no change to on hand inventory after the invoice posting.

E. If Replace and scrap action is selected in the disposition code:
      a. Once registration is done with the disposition code Replace and Scrap, system generates return sales order in order to manage scrap of the returned items. The steps to process return sales order will be same as defined above (Section D)
      b. Now we required to select the item for replacement to the customer ( RMA --> Return line --> Replacement item)
     c. To know more about the replacement, go to Replacement order in AX 2012.
     d. Now post the packing slip for the return sales order. As soon as we post the packing slip for the return sales order, new sales order gets created with positive quantity to facilitates the replacement.
     e. Now we can post the invoice for return sales order so that system can manage the scraping of items so there will not be any on hand inventory impact.
     f. Next you can process the replacement sales order to facilitates the replacement for the customer.

F. If Replace and credit action is selected in the disposition code:
       a. Once registration is done with the disposition code Replace and Credit, system generates the return sales order in order to manage the returned items.
      b. Now we require to select the item for replacement to the customer ( RMA --> Return line --> Replacement item)
     c. To know more about the replacement, go to Replacement order in AX 2012.
     d. Now post the packing slip for the return sales order. As soon as we post the packing slip for the return sales order, new sales order gets created with positive quantity to facilitates the replacement.
     e. Now we can post the invoice for return sales order.
     f. Next you can process the replacement sales order to facilitates the replacement for the customer.


The good thing about disposition codes is there are actions defined in the system for each disposition codes and based on those actions, system manages the return.

Keep Sharing... Happy Daxing..













Wednesday, 5 April 2017

Transfer journal in AX 2012 R3

Hello Friends, here is yet another learning from my side and this time I am going to shed some light on Transfer journal functionality of AX.

Transfer journal serves various purposes in AX

1. It is used for short distance transfer where there is no shipment involve.

2. It is used to transfer the inventory between one storage dimension(Site/Warehouse/Location) to other storage dimension(Site/Warehouse/Location)

3. It is used to change the tracking dimensions of the item i.e. Batch/serial number (Eg: to rectify the batch/serial number wrongly updated in the system)

4. It is also used to change the item's product dimensions. (Eg: if the item is registered with color 'Red' and you want to change it to color 'Blue')
Steps to create and Post transfer journal:
1.Go to inventory management --> Journals --> Item transactions --> Transfer
2. Add journal name --> Click on Lines



3. Add Item number
4. Add From and To Product dimensions if you want to change the dimensions ( Configuration, Size, Color, Style) for the item.
5. Add From and To Storage dimensions (Site/warehouse/Location) if the transfer is happening between Sites/Warehouses/Locations 
6.Add From and To Tracking dimensions (Batch/Serial number) if you want to change the Batch/Serial number for the item.

7. Here in this journal, we are transferring the item D0003 between Site1/Warehouse 12 to Site2/Warehouse 21 so,

 a. Item Number: D0003
 b. From Site:1 / From Warehouse: 12, 
 c. To Site: 2 / To Warehouse: 21
 d. Quantity: -10.
 d. Other dimensions (From and To configuration, Size, color etc) will be as it is.


Note: Before the transfer, the On-hand inventory for the item D0003 at the Site1/Warehouse 12 was 10.


7. Now Validate and Post the Journal.

8. Check the On-hand inventory, you can see 10 quantity is transferred from Site1/Warehouse 12 to Site2/Warehouse 21


9. Check the Inventory transactions (Transaction status is 'Sold' for Site1/Warehouse 12 and 'Purchased' for Site2/Warehouse 21)



10. Ledger postings happen between the following accounts:
      Inventory issue
      Inventory Receipt
      Inter-unit payable
      Inter-unit receivable
      
Note: There might be different set of accounts depending on the transaction in the transfer journal.


In this way, you can utilize transfer journal to carry out various business operations.

Happy Daxing!!!

--------------------------------------------------------------------------------------------------------------------------
Abhijeet Hele |  Dynamics AX Enthusiast | My Profile 
The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.

Monday, 27 March 2017

Bills of materials Journal in AX 2012 R3

Hello Friends, Hope you all are well. Its been long time since I haven't share my learning due to my other priority tasks.

Today I am going to share a very simple yet important topic of AX i.e. "Bill of material journal". This journal is used during production to add finished goods in the inventory, once it is ready and to reduce the components (as components are consumed while producing finished goods) from the inventory. In other word, BOM journal is used for inventory receipt of the BOM (Finished) item and Inventory issue of its components (Which represents BOM).

It is used when you have basic production process in place and you don't want to utilize AX Production control module to its extent.

It is also used in the Kitting process by some organization.




Prerequisites:
1. Create item with the production type "BOM".
2. Create Bill of material for the item ( In the Release item details -->Engineer Fast tab --> BOM section -->Lines --> Create BOM).
3. Approve and Activate BOM.

Steps to create and post BOM journal
1.Go to inventory management --> Journals --> Item transactions -->Bills of Materials

2. Click on New --> Select Journal name --> Click on Lines



3.Click on BOM --> Report as finished

5. Click on New


6. Add Item number, storage dimensions, Quantity.
7. Select the BOM number (in case of multiple BOM for the item)
8. Select the type of Explosion:
    a. Never: Bill of materials are not exploded if there is material shortage.
    b. Always: Bill of materials are fully exploded
    c. Shortage: Bill of materials are exploded only when required quantity of materials are not available. If Materials are partially available then explosion happens for remaining items which are not available.

9. Post now:If this is checked then as soon as Report as finished lines are transferred to BOM journal lines, the journal gets posted.


10.Click Ok to transfer Report as finished lines to BOM journal lines.

11. You can see BOM item along with the components get copied in the BOM journal



12. Also BOM item quantity gets increased and its components quantity get decrease as it is consumed during the production of BOM item.

13. As we have checked Post now checkbox in report as finished lines, journal got posted automatically after the transfer of these lines.

14. You can check the on hand quantity for BOM item and components to know the impact of the posting.


In this way, you can create and post BOM journal in AX.

Keep Daxing!! Keep Sharing!!

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Abhijeet Hele |  Dynamics AX Enthusiast | My Profile 
The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.


Monday, 9 January 2017

Adding multiple lines in Sales order using "Add Products" feature in AX 2012

Hi All,
Today, I am going to explain easy but very important feature of AX, "Add Products" feature. This feature always play important role when dealing with large pool of orders having multiple lines in day to day business. 

Example: Let's assume Customer placed an order for 100 Products with its specific quantity. Now customer service team has to record this order in the system. Entering 100 products in the sales order is very time consuming task and when there are multiple orders waiting to enter in the system, it can lead to lots of frustration for the guy entering those orders. Keeping this in view, AX provides "Add Products" feature which facilitates the addition of multiple lines (Product and Product variant) quickly in the order.

Videographic representation of "Add Products" feature.


Steps:
  • Create a sales order for the customer who has placed an order.
  • Now instead of clicking on Add line or Add lines, click on Add Products.
  • It will redirect you to Add Products form.
  • It has three sections, 
                1. Product categories, 
                2. The products pertaining to category selected in the first section.
                3. In the third section, selected products which will come in the sales order

  • Now select the products/Product variant --> click on Add 
  • After clicking on Add, it will take products in the Selected product section (Third section).
  • Now for all the products that we have selected, we need to enter the quantity and product dimensions( Configuration, size, color and style) 

Note: Default dimensions will flow automatically against the product


  • Now click ok to get the lines in the order
  • Now go to sales order, you can see items will appear in the order with specific dimensions and quantity.
In this way you can enter multiple line quickly in the order.

Kindly revert with any suggestions or questions pertaining to this topic

Keep Daxing !!!

------------------------------------------------------------------------------------------------------------------------------------
Abhijeet Hele |  Dynamics AX Enthusiast | My Profile 
The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.

Sunday, 7 August 2016

Free Text Invoice correction in Microsoft Dynamics AX 2012

Hello everyone, Here is another learning from my side. In this post, I will walk you all through Free text invoice correction feature. This is newly added feature in Microsoft Dynamics AX 2012. Before you go through this topic, it is important that you know about Free text invoice functionality in Microsoft Dynamics AX 2012. Please refer link to know more: Free text invoice in AX 2012  

Introduction
This feature is newly added in Microsoft Dynamics AX 2012 for correcting the free text invoice that has been posted.
When you post the corrected invoice, the cancelling free text invoice is posted automatically. The cancelling free text invoice nullifies with the original free text invoice i.e. the combined balance of original invoice and cancelling invoice is zero amount.

Example
Account receivable clerk posted the free text invoice of amount 1500. Now AR clerk realized that the amount posted in the free text invoice is wrong hence requires correction. He decided to uses the correction feature of free text invoice. The correction invoice is created from the original invoice and necessary changes are being made to it. After making the necessary changes to the invoice, the corrected free text invoice is posted. Once corrected invoice is posted, the cancelling invoice is created and posted automatically by the system with the amount of -1500, thus nullifying the amount of original invoice i.e. combine balance of original invoice and cancelling invoice is 0.00.

Configuration key
In order to use correction feature of Free text invoice, you need to enable the Free text invoice correction configuration key in license configuration in AX.


Steps to correct Free Text Invoice
1. Account receivable > Common > Free text invoices > All free text invoices.
2. Select posted free text invoice which requires correction

3. "Correct invoice" button is enabled for posted invoices as Free text invoice correction configuration key is enabled in license configuration.
4. Enter Reason code, comments and Canceling invoice date for correction.
5. Click Create corrected invoice button.
6. Make the necessary correction to the invoice


Note: You can also create a workflow in AX to approve this correction, so when the corrected invoice is approved, you can process it further.

7. Now post the free text invoice.
8. Once you post the corrected invoice, the cancelling invoice is posted automatically to cancel the original invoice.

9. Now go to Free text invoice list page > Cancel group > View > Invoice correction to view the following invoice correction details.

Original invoice: It is the invoice which was posted earlier and required correction. 
Cancelling invoice: It is the credit invoice posted by the system to nullify/ Cancel the original invoice once the corrected invoice is posted.
Corrected invoice: It is the invoice posted after making the necessary correction upon the original invoice.

The Free text invoice correction feature works in such a way that system itself takes care of cancelling the original invoice by posting the cancelling invoice/Credit invoice. All the postings and other impacts of original invoice cancelled automatically and corrected invoice is posted with all necessary changes.

This is all I have for Free text invoice correction.

Kindly revert with any suggestions or questions pertaining to this topic

Keep Daxing !!!

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Abhijeet Hele |  Dynamics AX Enthusiast | My Profile 
The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.

Sunday, 17 July 2016

Free Text invoice in Microsoft dynamics AX 2012


Hello Readers,
Happy to see good responses on my earlier posts, it really motivates me to share my learning with you all.

Today I am going write about Free text invoice.

Free text invoice is basically the invoice without sales order. Free text invoice is for sales but it doesn't require any sales order. Also there is no inventory tracking involve, so there is no picking and packing require in free text invoice.

Free text invoice can be used for service fee or consulting fee or miscellaneous fee for any kind of reimbursement

Path to create Free text invoice
Account receivable --> Common --> Free text invoices --> All free text invoices

Example:
Go to AR --> Common --> Free text invoice --> All Free text invoice










Click on Free text invoice button to create new free text invoice.


You can see customer account is mandatory as here we are generating the invoice so it has to be for customer.
Select customer account from the drop down list in the free text invoice header.













Note: Once you select customer account, the invoice account and currency field values comes automatically as those are setup in the customer master. User has the liberty to override those values in the free text invoice form,

Now go to Invoice lines --> Click on Add line

Enter short description which provides information about free text invoice. This description is then printed on the invoice.

Select main account- it should be a revenue account as free text invoice is an invoice for customer against which we will earn revenue and that revenue need to be updated in the ledger.

Sales tax group: it flows automatically if it is setup in the customer master.
Item sales tax group: select item sales tax group from the drop down list in invoice lines.

Select quantity (in case of service, it is the number of times, the service is rendered to a customer)

Unit price: Enter the per unit price.









We can add charges if any in the free text invoice,





















Click on Total to see all the required details of the Free text invoice i.e. Subtotal amount, Total sales tax calculated, Total charges applied, Total discount if any, cash discount and invoice amount.



















Post free text invoice

Click on Post button to post free text invoice.





















Note: Make sure Posting checkbox should be ticked.

Click OK to post the invoice.























Go to invoice journal


















Click on Voucher









You can see customer posting profile account (Customer balance) get debited and Customer revenue account (main account tag in the FTI) get credited.

Note:
Charges and sales tax are incurred on customer hence it will get credited (separately from customer revenue) and this will get debited with the customer balance ( i.e. customer will bare both charges and sales tax ). It is depending on the mutual agreement between customer and company on bearing of the charges and accordingly setup will be done in AX.

Note:
Proforma invoice: if you wish to print proforma invoice then make sure to clear posting checkbox and select print invoice checkbox.












Payment journal
In order to settle the free text open transactions, AX facilitates the creation and posting of payment journal directly from free text invoice form.









In this way, you can create and post Free Text Invoice in AX.

Hope! this post provide you with the understanding of Free text invoice in AX 2012 R3.

Please post if any queries or suggestions pertaining to this topic.

Happy Daxing!!!

"Knowledge has no value unless you use and share it." Keep sharing !!!

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Abhijeet Hele |  Dynamics AX Enthusiast | My Profile 

The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.

Thursday, 17 September 2015

Auto charges for sales order in Microsoft dynamics AX 2012 R3

Hello Readers,
Hope !! you are all well :-)

After a gap of almost three months, here I am ready to post the new topic of AX.

I hope you will find this post interesting.

In this topic, I will walk you through the setup of automatic charges in AX 2012 and its use.

Before you read the below post, if you would like to know about what is meant by charges and their importance in business. Please refer: Sales order Charges

Auto charges are used to define the automatic charges for the customers, vendors, items and for the mode of delivery as well.

These charges are applied automatically when you create sales order or purchase order.

There are few setups which needs to be done in the auto charges form in order to get these charges in the sales order or purchase order.

You can define the Automatic charges for :
                                                        1. Single customer, vendor , Item and mode of delivery
                                                        2, Group of customers, vendors , Items and mode of deliveries
                                                        3. All customers, vendors , Items and mode of deliveries

Note: Point to be noted here is that mode of delivery charges can only be define when defining the auto charges for the sale order.

Path:

a. Account receivable Setup  Charges  Auto charges

b. Retail  Setup  Charges  Auto charges

Steps to setup Auto charges

1. Go to above path and click on Auto changes
2. Select level to apply auto charges in the sales order.
    a. Main: Select main to apply charges at order header
    b. Line: Select line to apply charges at order lines.


3. Click on New to define a new auto charge.

4. Select Account code :
    a. Table: define charges for a specific customer.
        - Customer relation: if you select Table in account code then select a customer account to define the charges.

    b. Group: define charges for specific customer charge group
        - Customer relation: if you select Group in account code then select customer charge group code to define the charges.

    c. All: define charges for all the customers
       - Customer relation: if you select All in account code then customer relation field gets disabled as you don't have to specify anything as charges applies to all the customer.

5. Select Item code:
    If level "Main" is selected then item code is by default selected as All & item relation field is disabled as charges then applied to sales order header level.

   If level "Line" is selected then you can select the specific item code among Table, Group and All.

    a. Table: define charges for specific item.
       - Item relation:if you select Table in Item code then select item number to define the charges for.

    b. Group: define charges for item charge group
       - Item relation:if you select Group in the Item code then select item charge group to define the charges for.

    c. All: define charges for all items.
      - Item relation:if you select All in Item code then item relation field is disabled as charges are applied to all the items.


6. Select Mode of delivery code
    a.Table: define charges for a specific mode of delivery.
       - Mode of delivery relation: if you select Table in mode of delivery code then select a mode of delivery to define the charges for.

    b. Group: Define charges for delivery charges group
      - Mode of delivery relation: if you select Group in mode of delivery code then select a specific delivery charge group to define the charges for.

    c. All: Define charges for all the mode of delivery
       -Mode of delivery relation: if you select All in mode of delivery code then mode of delivery relation field is disabled as charges are applied to all mode of deliveries.


7. Now expand the Lines fast tab to add charges and other details for the auto charges.

8. Select Currency so that the charges will get calculated in that currency.

9. Charge code: select specific charge code from the drop down menu.

 Note: Charge code needs to be defined before defining the Auto charge. To know more about creating the charge code refer Sales order charges

10. Category: specify the category to define how to calculate the charges. Categories are of the following:
      a. Fixed
      b. Percent
      c. Pcs.
      d. Inter company percentage
      e. External

11. Charge value: enter the value based on the category define for the charge.

12. Charge currency code: select currency for the charge. It is different from the one specified in the currency field. Charge value will get define in this currency but the charge will get calculated in the currency defined above.

13: From amount and To amount : enter the starting and ending amount in these fields to apply auto charges. This is optional.

14: Sales tax group: specify the sales tax group to calculate the tax for the charge amount. This is optional.

15: Keep: It keeps the charge transactions after invoicing so that charge is applied every time we post the invoice for the specific customer account.


16. Once we set all the necessary information in the auto charge form, create sales order in AX.


17. If the sales order meets the criteria specified for the Auto charge, the charge will get calculated automatically for the sales order.

To view the charges:
 
Go to Sales order → Sell fast tab → Click on Charges 


18: we can also see the total charges calculated for the order.

In this way, you can setup automatic charges for the sales order in ax 2012 R3.

See you soon with the new topic. Keep Daxing :-)

"Knowledge has no value unless you use and share it."


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Abhijeet Hele |  Dynamics AX Enthusiast | My Profile 

The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.