SOLUTION: Setup Purchase environment | My Assignment Tutor

2-1Enterprise Resource PlanningLab. 2 Setup Purchase (Accounts Payable) environment Create Suppliers Create an Item NumberPayment TermsPayment terms define when invoices need to be paid. Either by our customers or by theorganisation you represent to suppliers.Open form Payment Terms: Accounts Payable -> Setup ->Payment-> Terms OfPaymentEstablish two of the most commonly used payment terms; Net 30 days and CurrentMonth plus 15 Days. Net 30 days indicates that the invoice should be paid 30 days afterthe invoice is generated. Current month plus 15 days indicates the invoice is due 15 daysafter the end of the month that the invoice is created.Enter the following information to enable the system to establish the due date of the Net30 day terms.2-2Use the New button to create another record. Enter the following information.When the payment terms have been established close the Terms of Payment form.Setup Vendor/SuppliersThe system requires suppliers to purchase from. The first thing to do is to establish howthe vendor module will interact with the GL accounts.Vendor Groups2-3The manner in which companies configure accounts differ greatly. For instance we havegrouped our Accounts Payable (Creditors) into Foreign and Australian.73100 ACCONTS PAYABLE AUSTRALIA73200 ACCOUNTS PAYABLE FOREIGNThis enables us to easily see the money that is owed to the company by suppliers withinand outside of Australia. We could have alternatively set-up our creditor GL accounts byproduct range, say processor suppliers, cabinet suppliers etc.73100 ACCONTS PAYABLE PROCESSORS73200 ACCOUNTS PAYABLE CABNETSThe decision we made when setting up the accounts needs to be reflected in the setup ofour Accounts Payable module (when we receive Invoices from our suppliers theAccounts Payable (AP) GL codes will be automatically updated). It is therefore requiredto group Vendors and relate them to GL accounts :- in this instance into Australia andForeign groups.Open form Vendor Groups: Accounts Payable -> Setup ->Vendors-> Vendor GroupsEnter groups Australia and Foreign as shown below. The setup could have more detail inthe AP module than in the GL, for instance groups of WA, NSW, VIC, etc. could beestablished and the system could post all transactions to Accounts Payable Australia.This would allow reporting of purchase information by State whilst maintaining asummarised GL by country.Firstly, establish the Australian group and default Australian vendors to the GST10%group as below.Add the Foreign group to the form.2-4Close the form.Posting ProfilesThe posting profiles identify how GL accounts are updated when invoice and credit notesare generated. A number of profiles can be established but there is generally only one ortwo. There will be two if the accounts are updated differently when creating credit notesand invoices.Use the form Posting Profiles: Accounts Payable -> Setup ->Vendor Posting ProfilesOn the Overview screen enter a Posting Profile name of ProfileStd.Open the Setup area and set the Account Code to Group and the Account/Group toAustralian. These parameters are explained below.The Summary account contains the GL code for the accounts payable account – theCreditor balance account. Enter 73100 which is the code for the Accounts PayableAustralian account and the Settlement accounts 65100 the Bank account.2-5Now create another row for the Foreign group, set the Account Code field to Group, theSummary Account field to 73200. Set the Settle Account to the Bank account 65100.Close the form.Explanation of posting processThe account code field controls the level of detail or granularity that is reported in thegeneral ledger. It can be set to All, Group or Table.2-6The Group option enables supplier posting to be controlled by grouping supplierstogether and posting transactions for that group to the specified GL posting account e.g. areceipt of a supplier invoice for a member of the group creates an update to the G:account identified in the Summary Account field. The Group Australia would beallocated to all Australian suppliers and updates made automatically. This consequenceis that purchasing staff do not need to know the GL account codes to allocate topurchases.The Table option enables posting to be made for each Supplier/Vendor. This might beuseful for a very large supplier or a subsidiary business, as the GL account would containonly transactions for the one supplier.The All option simply identifies that all supplier postings go to the specified accounts.The different profiles can be used simultaneously as the system works by exception. Thatis to say that when automatic postings are made Dynamics AX first checks if the supplierhas a ‘Table’ entry. If there is a Table entry for the supplier the posting is made to theGL code identified. If a Table entry does not exit the Group of the supplier is checked tosee if a posting profile exits at that level. If it does, the posting is controlled at the grouplevel. If it does not the posting will be made to the GL account identified by the Allentry.Purchase Order ParametersAll modules have parameters that enable the fundamental aspects of the application to beconfigured. You will now establish the parameters required for the Accounts PayablemoduleGo to the parameters form in purchasing: Accounts Payable -> setup -> Accountspayable parameters.2-7Select Ledger and GSTNumber SequencesNumber sequences can be maintained automatically or manually. You will set the vendoraccount code (supplier identifier) to manual. This will enable a descriptive vendor code.Select the Number Sequence tab and put the cursor in the Number Sequence Code field.The Number Sequence may have a different number.2-8Right mouse click and select View Details. The View Details command moves control tothe record where the foreign key is established. You can use this function throughout thesystems to view further information about a record or to add a record to a table where anew foreign key is required.Select Edit and Tick the Manual field. This identifies that the “number” will be manuallymaintained. The field is actual alphanumeric.2-9Close the Number sequence form and the Accounts payable parameters form.The Vendor Parameters have been setup in two areas in AX 2012, Accounts Receivableand Procurement and Sourcing.Open the Procurement and Sourcing parameters form-> Procurement and Sourcing->Setup->Procurement and Sourcing Parameters.Set the Purchase Type to Purchase Order. This specifies that when an order is created thetype is set to Purchase Order and not to Journal which would be a requisition requiringapproval..2-10Close the form.Warehouse SetupSites and warehouses need to be established in the application so that materials can bereceived and shipped. The application will have a simple setup of one site and onewarehouse.Open form Sites: Warehouse Management->Setup->Warehouse Setup->SitesSelect new. Enter a site of Joondalup as follows.Close the form..2-11Open the Warehouse form: Warehouse Management->Setup->WarehouseSetup ->WarehousesSelect new. Enter a Warehouse of building 16 as follows.Close the form.Suppliers/VendorsVendors and suppliers are synonymous names for organisations that resources arepurchased from. You now need to setup vendors in the system.Open the All vendors form: Accounts Payable -> Vendors-> All vendorsSelect New.Create supplier of Mirvo Electronics with a currency of Australian Dollars (AUD) andlink the vendor to the Australian Group..2-12If the following form is displayed. Select add new organization and press the Add button..2-13Expand the Purchase order defaults area and add a Site of Joondalup and Warehouse ofBuilding 16. Do this for all Vendors.Select New to commit the Mirvo vendor and create a new record.Create a vendor of Nexus, again relate it to the Australian Group, as well as site Building16 and warehouse Joondalup..2-14Create a supplier of Oshiba Electctronics, link it to the Foreign group and set the currencyto USD..2-15Create a supplier of Oxton Pulse, link it to the Foreign group and set the currency toGBP.Reopen the All Vendors form – Accounts Payable‐> Common‐> All vendorsTo view the Vendors.If you select edit on any of the records you can view an Invoice Account field..2-16Note the invoice account field. This is used to refer transactions from one account toanother. This is useful if an organisation is part of a corporation, as it allows an order tobe placed with a subsidiary but accounts to be controlled at corporate level. This optionis also used when an organisation factors is payments.If you highlight the Invoice Account field and display the list you will notice that theInvoice Account (posting account) can be set to any of the suppliers – do not set theinvoice account as it will make the tracking of transactions problematic.ProductsYou will now create a product to purchase,Item GroupsItems postings, in the same way as supplier postings, can be controlled by groups. Youwill group items by product type, this enables easy reporting of inventory transactionsand can enable GL postings.Go to form Item Groups: Inventory Management -> Setup -> Inventory->ItemGroups.2-17Select New and create the an item group for Components.CreateGroups for mobile phones and laptop computers as shown in the following form.Highlight the Component group and select the Posting button. Select the Purchase Ordertab. Highlight Product Receipt entry (default selection), select Add. Set the receiptaccount to 62200.This identifies that when Components are invoiced (PO invoice is received) the value isposted to the Raw Materials inventory account in the GL.Use the Add button to set the Receipt account to 62400 for Mobiles and 62500 forLaptops. Although we will manufacture these, it is possible that we could buy-in theseproducts if we have insufficient manufacturing capacity..2-18Select the Purchase Inventory Receipt button and set the same values.Set the “Purchase expenditure for product” for “All” to Freight (31000) as follows.Close the formItem Dimension Groups.2-19We need to establish an inventory dimension for our items. This is an important part ofthe system that we will cover later in the unit.Open the number groups form: Inventory Management -> Setup -> Dimensions ->Number GroupsUsing the Add button create a group of Default and do not change other settings.Close the Number Groups form.Inventory Model GroupsThe Item Groups you established early control GL postings. The system also requiresgroups to control the management and financial policies for inventory. This elementswill be reviewed later in the Unit.Open form Item Model Groups: Inventory Management -> Setup -> Inventory ->Item Model Groups.Create the following model groups..2-20Expand the Inventory Model area at the bottom of the form. This is where the controlsare specified. Most important is the Inventory Model field. This identifies if theinventory value is to be controlled as Last In First Out (LIFO), First in First Out (FIFO)or Weighted Average. These options will be discussed during the lectures. LIFO is notallowed in Australia.Expand the Set-up area. The Physical Negative Inventory field allows items to be pickedfrom stock even though the system has a zero or negative quantity of the item. If the fieldis Unticked the system will not allow the transaction to be completed for items that arenot in stock.There are a number of conditions that make the use of this option valuable and it is oftenused when a system is first implemented. This is because it is sometimes necessary tomake the system ‘live’ before a full stock take has occurred and the stock quantities areavailable. The system would initially operate without stock quantities and when stock issold a negative stock figure will be recorded. When the actual stock data is entered thesystem will add the negative stock quantities to the data resulting in the correct stocklevels.Another reason for allowing stock to go negative is because of poor data. This meansthat the data in the system is not accurate and, as organisations may not want the systemto prevent them transacting business, stock quantities are allowed to be negative. Thisgenerally results in impromptu consultancy to explain aspects of the system to auditors –impromptu consultancy is usually time and materials, and this type has a premium!Another important aspect is the Ledger Integration. This identifies when stock isrecognised as an asset – at delivery or upon receipt of invoice. This aspect will bediscussed in the lectures.Close the form..2-21Tracking DimensionsTracking Dimensions enable Batch and Serial numbers to be tracked when a product is manufactured orsold. A default Tracking Dimension is required.Open form Tracking dimension: Product Information…->Setup->Dimensions Groups->TrackingDimensionCreate a Tracking Dimension as Track plus you Company Id.Close the form.Products SetupMost organisations have part numbers rather than part names. However, it takes sometime to become familiar with numbers, therefore, names will be used.Open the Released Products form: Products Information Management -> ReleasedproductsSelect the New button. Select Show More Fields. Add a product of Intel333 plus yourcompany name as below. Use show More Fields..2-22Expand reference groups. Set the Inventory Model Group to Components and theDimension Group to StorgaeDim or Def.When the product has been created. Choose the Purchase tab. Select Setup and Add authorisedvendors as shown in the following..2-23END.