Using Microsoft Dynamics AX: The New Dynamics ‘AX 7‘

453 Pages·2016·15.461 MB·English

by  Andreas Luszczak

Andreas Luszczak
Using Microsoft
Dynamics AX
The New Dynamics ‘AX 7’
5th Edition
Using Microsoft Dynamics AX
Andreas Luszczak
Using Microsoft Dynamics AX
The New Dynamics ‘AX 7’
5th Edition
Andreas Luszczak
Vienna, Austria
ISBN 978-3-658-13621-5 ISBN 978-3-658-13622-2 (eBook)
DOI 10.1007/978-3-658-13622-2
Library of Congress Control Number: 2016944400
Springer Vieweg
© Springer Fachmedien Wiesbaden 2009, 2012, 2013, 2015, 2016
The 4th edition of the book was published with the title „Using Microsoft Dynamics AX 2012“.
This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the mate-
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not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective
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The publisher, the authors and the editors are safe to assume that the advice and information in this book are
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Preface
Reading this Book
The primary purpose of this book is to provide you with a good knowledge of the
standard application concept and functionality, enabling you to run business
processes in Microsoft Dynamics AX. This book is primarily designed for end
users, students, and consultants interested in learning how to use Dynamics AX.
Going beyond the operations on the user interface, you will learn how the different
parts of the application work together. As a result, you will also take advantage
from learning the end-to-end application concept if you are a system
administrator, developer, IT executive, or experienced consultant not knowing the
complete application already.
Actually working in an application is the best way to learn it. This book therefore
includes exercises building up on each other in a comprehensive case study. If you
need support with the exercises, a free download of sample solutions is available.
Dynamics AX is a very comprehensive business solution, making it impossible to
cover all parts of the application in a single book. In order to provide a profound
understanding of the core application, this book addresses the primary
functionality in supply chain (including trade and logistics, and production
control) and in finance management. It shows the application, but does not cover
tasks in system administration and development.
Microsoft Dynamics AX Version
This book is based on Microsoft Dynamics AX released in March 2016 and updated
in May 2016. It is an update of my previous book editions on Dynamics AX 2012.
Microsoft Dynamics AX in the current release officially hasn’t got a version
number, it is just called “Microsoft Dynamics AX” without version. The internal
build version of this release is 7.0. Since the label “Dynamics AX” does not always
make clear if an instruction refers to the latest release or generally applies to all
releases, descriptions in this book use the name ‘AX 7’ when pointing out specific
items of the latest release.
Applicable Settings
In Dynamics AX, you can individually choose the language of your user interface.
Descriptions and illustrations in this book refer to the language “EN-US” (United
States English). Whereas it is obvious that the Dynamics AX client displays
different labels when choosing languages like Spanish or Russian, there are also
VI Preface
differences when selecting British English. For example, the label for the field
“Sales tax” is “VAT” in British English. Other differences between your application
and the descriptions in the book are possibly caused by permission settings, by
local features, or by specific modifications and features in your application.
In order to benefit from the explanations, it is recommended to access a working
environment of Dynamics AX. A separate test application, where you can execute
the exercises, is required to avoid an impact on actual company data.
For the screenshots in this book, the color theme “High contrast” and a small
element size has been selected in the visual preferences of the user options. The
illustrations refer to a sample company “Anso Technologies Ltd.”, which includes
a simple setup limited to the described functionality. In order to grant a flexible
choice of the training environment, the tasks in the exercises are specified in a way
that you can use the Microsoft standard demo environment (“Contoso
Entertainment System USA”) or any other test environment.
Available Support
In order to download the exercise guide, which refers to the exercises in this book,
and other applicable resources, please access the online service of the publisher or
my web site:
http://axbook.addyn.com
If you have comments or questions regarding the book or the exercises, please
contact me through this web site or via e-mail to [email protected].
Acknowledgements
Many people have been involved in finalizing this book, directly and indirectly,
from the first to the current edition. I want to thank all of them. In particular, I
would like to mention Ingo Maresch (Solutions Factory Consulting), Natalija
Dajcman (Informio Software), and Finn Nielsen-Friis (AXcademy).
Thank you also to the editor, Sabine Kathke. And finally, my special thanks go to
my family – Sonja, Felix and Caroline.

Andreas Luszczak
Table of Contents
1 What is Microsoft Dynamics AX? ............................................................................ 1
1.1 Axapta and the History of Dynamics AX ..................................................... 1
1.2 Dynamics AX Product Overview .................................................................. 2
1.2.1 Functional Capabilities ........................................................................ 2
1.2.2 Implementation ..................................................................................... 3
1.2.3 Data Structure ....................................................................................... 3
1.2.4 Voucher Principle ................................................................................. 4
2 Getting Started: Navigation and General Options ................................................ 5
2.1 User Interface and Common Tasks ............................................................... 5
2.1.1 Logon and Authentication ................................................................... 5
2.1.2 Navigation ............................................................................................. 5
2.1.3 Elements of the User Interface ............................................................ 9
2.1.4 Working with Records ....................................................................... 17
2.1.5 Filtering and Sorting ........................................................................... 22
2.1.6 Help System ......................................................................................... 27
2.1.7 Case Study Exercises .......................................................................... 28
2.2 Printing and Reporting.................................................................................. 30
2.2.1 Printing of Documents ....................................................................... 30
2.2.2 Microsoft Office Integration .............................................................. 34
2.2.3 Case Study Exercise ............................................................................ 36
2.3 Advanced Options ......................................................................................... 37
2.3.1 User Options and Personalization .................................................... 37
2.3.2 Record Information and Templates ................................................. 39
2.3.3 Case Study Exercises .......................................................................... 42
2.4 Global Address Book ..................................................................................... 43
2.4.1 Party and Address .............................................................................. 43
2.4.2 Address Book ...................................................................................... 45
2.4.3 Case Study Exercise ............................................................................ 46
3 Purchase Management ............................................................................................ 47
3.1 Business Processes in Purchasing ................................................................ 47
3.1.1 Basic Approach ................................................................................... 47
3.1.2 At a Glance: Purchase Order Processing ......................................... 50
VIII Table of Contents
3.2 Vendor Management .................................................................................... 52
3.2.1 Vendor Record .................................................................................... 52
3.2.2 Payment Terms and Cash Discount ................................................ 57
3.2.3 Ledger Integration ............................................................................. 59
3.2.4 Case Study Exercises ......................................................................... 61
3.3 Product Management in Purchasing .......................................................... 61
3.3.1 Procurement Category ...................................................................... 61
3.3.2 Basic Product Data ............................................................................. 63
3.3.3 Purchase Price Setup ......................................................................... 68
3.3.4 Case Study Exercises ......................................................................... 72
3.4 Purchase Order Management ...................................................................... 72
3.4.1 Basics of Purchase Order Processing ............................................... 73
3.4.2 Purchase Order Registration ............................................................ 75
3.4.3 Change Management and Purchase Order Approval .................. 82
3.4.4 Canceling and Deleting Purchase Orders ....................................... 84
3.4.5 Purchase Inquiry and Order Confirmation .................................... 85
3.4.6 Case Study Exercises ......................................................................... 88
3.5 Item Receipt ................................................................................................... 89
3.5.1 Basics of Item Receipts ...................................................................... 89
3.5.2 Receipts List ........................................................................................ 90
3.5.3 Inventory Registration ....................................................................... 90
3.5.4 Product Receipt .................................................................................. 94
3.5.5 Partial Delivery and Over/Under Delivery .................................... 96
3.5.6 Order Status and Inquiries ................................................................ 98
3.5.7 Case Study Exercises ....................................................................... 101
3.6 Invoice Receipt ............................................................................................. 102
3.6.1 Ways for Processing Vendor Invoices ........................................... 102
3.6.2 Vendor Invoice Posting ................................................................... 103
3.6.3 Order Status and Inquiries .............................................................. 108
3.6.4 Case Study Exercises ....................................................................... 110
3.7 Credit Note and Item Return in Purchasing ............................................ 111
3.7.1 Crediting Purchase Orders ............................................................. 112
3.7.2 Inventory Valuation with Separate Credit Notes ........................ 114
3.7.3 Case Study Exercise ......................................................................... 114
3.8 Purchase Agreement, Requisition, and Quotation Request .................. 115
3.8.1 Purchase Agreement ........................................................................ 115
3.8.2 Purchase Requisition ....................................................................... 116
3.8.3 Request for Quotation ..................................................................... 118
3.8.4 Case Study Exercise ......................................................................... 120
Table of Contents IX
4 Sales and Distribution ............................................................................................ 121
4.1 Business Processes in Sales and Distribution ........................................... 121
4.1.1 Basic Approach ................................................................................. 121
4.1.2 At a Glance: Sales Order Processing .............................................. 124
4.2 Customer Management ............................................................................... 126
4.2.1 Core Data and Comparison to Vendor Records ........................... 126
4.2.2 Case Study Exercises ........................................................................ 129
4.3 Product Management in Sales .................................................................... 130
4.3.1 Product Data and Sales Category ................................................... 130
4.3.2 Sales Price and Discount Setup ....................................................... 131
4.3.3 Case Study Exercises ........................................................................ 136
4.4 Sales Order Management ............................................................................ 136
4.4.1 Basics of Sales Order Processing ..................................................... 136
4.4.2 Sales Quotation ................................................................................. 138
4.4.3 Sales Order Registration .................................................................. 139
4.4.4 Order Price and Discount ................................................................ 146
4.4.5 Surcharge Management ................................................................... 148
4.4.6 Sales Order Confirmation ................................................................ 150
4.4.7 Case Study Exercises ........................................................................ 151
4.5 Delivery Management ................................................................................. 152
4.5.1 Basics of Picking and Shipping ....................................................... 152
4.5.2 Pick Form and Picking List .............................................................. 153
4.5.3 Picking Workbench .......................................................................... 157
4.5.4 Packing Slip ....................................................................................... 159
4.5.5 Case Study Exercises ........................................................................ 160
4.6 Sales Invoice .................................................................................................. 161
4.6.1 Sales Order Invoice ........................................................................... 161
4.6.2 Collective Invoice .............................................................................. 164
4.6.3 Free Text Invoice ............................................................................... 165
4.6.4 Case Study Exercises ........................................................................ 167
4.7 Sales Credit Note and Item Return ............................................................ 168
4.7.1 Return Order Management ............................................................. 168
4.7.2 Simple Credit Note ........................................................................... 171
4.7.3 Case Study Exercise .......................................................................... 172
4.8 Direct Delivery ............................................................................................. 172
4.8.1 Processing Direct Deliveries ............................................................ 172
4.8.2 Case Study Exercise .......................................................................... 174
4.9 Trade Allowance and Incentive Management ......................................... 175
X Table of Contents
4.9.1 Trade Allowance .............................................................................. 175
4.9.2 Vendor Rebate .................................................................................. 181
4.9.3 Broker Contract ................................................................................ 181
4.9.4 Royalty Agreement .......................................................................... 182
5 Production Control ................................................................................................ 183
5.1 Business Processes in Manufacturing ....................................................... 183
5.1.1 Basic Approach ................................................................................. 183
5.1.2 At a Glance: Production Order Processing ................................... 186
5.2 Product Management and Bill of Materials ............................................. 188
5.2.1 Product Data in Manufacturing ..................................................... 188
5.2.2 Bill of Materials (BOM) ................................................................... 190
5.2.3 Case Study Exercises ....................................................................... 196
5.3 Resource and Route Management ............................................................ 197
5.3.1 Production Unit and Resource Group........................................... 198
5.3.2 Resource and Capability ................................................................. 201
5.3.3 Route and Operation ....................................................................... 204
5.3.4 Case Study Exercises ....................................................................... 212
5.4 Production Order Management ................................................................ 213
5.4.1 Basics of Production Order Processing ......................................... 213
5.4.2 Production Order Registration ....................................................... 214
5.4.3 Processing Production Orders ........................................................ 217
5.4.4 Case Study Exercises ....................................................................... 221
5.5 Production Journal Transactions ............................................................... 221
5.5.1 Journal Transaction and Ledger Integration ................................ 222
5.5.2 Picking List........................................................................................ 223
5.5.3 Consumption of Resources ............................................................. 225
5.5.4 Case Study Exercises ....................................................................... 226
5.6 Reporting as Finished and Ending Production ....................................... 226
5.6.1 Reporting as Finished ...................................................................... 226
5.6.2 Ending and Costing ......................................................................... 228
5.6.3 Case Study Exercise ......................................................................... 230
5.7 Subcontracting ............................................................................................. 231
5.7.1 Outsourced Operation ..................................................................... 231
5.7.2 Purchased Service ............................................................................ 231
5.8 Formula and Batch Production Order ...................................................... 234
5.8.1 Formula Management ..................................................................... 234
5.8.2 Batch Production Order .................................................................. 236