financial and managerial accounting in erp system ms dynamics ax 2012 r3
TRANSCRIPT
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MANAGER’S TOOLKIT Your Mentor & Guide
to Doing Business Effectively
Original work copyright © 2016
SPECIAL SUBJECT: FINANCIAL ACCOUNTING FOR MERCHANDISING BUSINESSES
VOLUME 1
ACCOUNTING EXPLANATION & HOW TO USE
MS DYNAMICS AX 2012 R3
FINANCIAL AND MANAGERIAL
ACCOUNTING IN ERP SYSTEM
MS DYNAMICS AX 2012 R3
2016®
FINANCIAL AND MANAGERIAL ACCOUNTING
IN ERP SYSTEM MICROSOFT DYNAMICS AX 2012 R3
SPECIAL SUBJECT: FINANCIAL ACCOUNTING FOR
MERCHANDISING BUSINESSES
VOLUME I
ACCOUNTING EXPLANATION & HOW TO USE MS DYNAMICS AX 2012 R3
WRITTEN BY
KHANH LE Master of International Business Administration (MIBA) from University of Applied Sciences Worms, Germany
NGHI LE ERP Specialist International Software Engineer from NIIT Institute, India
ABOUT THIS BOOK The content of this book focuses on explaining and clarifying the financial accounting functions of an accounting information system on ERP Microsoft Dynamics AX 2012 R3. It includes many practical examples of detailed accounting entries, from simple to complex.
Feedback to Rathausstraße 21, 10178 Berlin, Germany. Email: [email protected]; [email protected] Phone: +4915759478413
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CONTENTS
FOREWORD 7
ERP Application Trends of Enterprises 8
Difficulties in Application of ERP 9
INTRODUCTION 10
Preface 11
Assumptions 12
The Importance of Finance & Accounting in ERP 13
The History of Microsoft Dynamics AX 14
Introduction of Microsoft Dynamics AX 15
Advantages and Benefits of Microsoft Dynamics AX 16
Overview of the General Functions of Microsoft Dynamics AX 17
CHAPTER I: THE BASIC ACCOUNTING INFORMATION SYSTEM 21
1. Required Accounting Information System 22
Introduction to Accounting Information System 23
A General Description of Accounting System on Software 24
Overview of Flows of Processing Source Documents to Ledger 25
Accounting Parameters and Automatic Account Postings 27
2. Basic Accounting Functionality 28
Introduction to Basic Accounting Functionality 29
Accounting Currency and Reporting Currency 30
Periods, Financial Years and Fiscal Calendar 32
Accounting Exchange Rate and Reporting Exchange Rate 33
Chart of Accounts in Dynamics AX 35
Accounts for Automatic Transactions 39
Financial Dimensions for Reporting 40
Examples of Financial Dimensions for Merchandising Business 42
The Connection between Financial Dimensions and Ledger Accounts 43
Financial Dimension Advanced Rules 44
Accounting Journals 45
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CHAPTER II: ACCOUNTS PAYABLE 48
3. Accounts Payable Functionality and Explanation 49
Introduction to Accounts Payable 50
Introduction to Accounts Payable Parameters 51
Accounts Payable Parameters Setups 52
About Prepayments and Prepayment Journal Vouchers 55
Introduction to Accounts Payable Posting Profiles 56
Examples of Posting Profiles and Accounting Entry for Normal Cases 57
Examples of Posting Profiles and Accounting Entry for Prepayment 58
Examples of Posting Profiles and Accounting Entry for Promissory Notes 60
CHAPTER III: INVENTORY ACCOUNTING 65
4. Inventory Accounting 66
Inventory System and Costing Model 67
Understanding Dynamics AX Accounting Framework 71
5. Inventory Posting – Purchase Order 83
Inventory Posting to Purchase Order 84
Examples of Posting Definitions and Accounting Entry for Product Receipt 85
Examples of Posting Definitions and Accounting Entry for Purchase Expenditure, Un-invoiced 86
Examples of Posting Definitions and Accounting Entry for Purchase Accrual 87
Examples of Posting Definitions and Accounting Entry for Inventory Receipt 88
Examples of Posting Definitions and Accounting Entry for Purchase Expenditure for Product 89
Examples of Posting Definitions and Accounting Entry for Prepayment 90
6. Inventory Posting – Inventory 91
Inventory Posting to Inventory 92
Examples of Posting Definitions and Accounting Entry for Issue and Receipt 93
Examples of Posting Definitions and Accounting Entry for Profit and Loss 94
7. Inventory Posting – Sales Order 95
Inventory Posting to Sales Order 96
Examples of Posting Definitions and Accounting Entry for Packing Slip 97
Examples of Posting Definitions and Accounting Entry for Packing Slip Offset 98
Examples of Posting Definitions and Accounting Entry for Deferred Revenue on Delivery 99
Examples of Posting Definitions and Accounting Entry for Deferred Revenue Offset on Delivery 100
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Examples of Posting Definitions and Accounting Entry for Issue 101
Examples of Posting Definitions and Accounting Entry for Consumption 102 Examples of Posting Definitions and Accounting Entry for Revenue 103
Examples of Posting Definitions and Accounting Entry for Commission 104
Examples of Posting Definitions and Accounting Entry for Commission Offset 105
Examples of Posting Definitions and Accounting Entry for Discount 106
CHAPTER IV: ACCOUNTS RECEIVABLE 107
8. Accounts Receivable Functionality and Explanation 108
Introduction to Accounts Receivable 109
Introduction to Accounts Receivable Parameters 110
Accounts Receivable Parameters Setups 111
Introduction to Accounts Receivable Posting Profiles 113
Examples of Posting Profiles and Accounting Entry for Normal Cases 114
Examples of Posting Profiles and Accounting Entry for Notes Receivable 115
Examples of Posting Profiles and Accounting Entry for Customer Prepayment 116
Examples of Posting Profiles and Accounting Entry for Bill of exchange 117
CHAPTER V: CASH AND BANK MANAGEMENT 126
9. Cash and Bank Management Functionality and Explanation 127
Introduction to Cash and Bank Management 128
Cash Account and Bank Account Setups 129
Cash and Bank Transactions Reconciliation 131
CHAPTER VI: SALES TAX ACCOUNTING 132
10. Sales Tax Accounting Functionality and Explanation 133
Introduction to Sales Tax Accounting 134
Analysis of Requirements of Processing Tax Related Accounting Entry 136
Sales Tax Accounting Setups 140
Sales Tax Accounting Entry Explanation 147
CHAPTER VII: FIXED ASSETS ACCOUNTING 158
11. Fixed Assets Accounting Functionality and Explanation 159
Introduction to Fixed Assets Accounting 160
Important Fixed Assets Accounting Setups 161
Fixed Asset Posting Profiles 172
Cost Model and Revaluation Model 174
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Fixed Assets Posting Profiles in Revaluation Model 176
Examples of Posting Profiles and Accounting Entry for Acquisition & Acquisition Adjustment 177
Examples of Posting Profiles and Accounting Entry for Depreciation & Depreciation Adjustment 178
Examples of Posting Profiles and Accounting Entry for Revaluation 179
Examples of Posting Profiles and Accounting Entry for Write up Adjustment 180
Examples of Posting Profiles and Accounting Entry for Write down Adjustment 181
Examples of Posting Profiles and Accounting Entry for Disposal Sale & Disposal Scrap 182
Fixed Assets Managerial Mixing – Guideline 183
CHAPTER VIII: PAYROLL ACCOUNTING 184
12. Payroll Accounting Functionality and Explanation 185
Introduction to Payroll Accounting 186
Important Payroll Accounting Setups 190
Payroll Posting Definitions 246
Payroll Processing 251
Payroll Calculation Explanation 265
Payroll Accounting Entry Explanation 272
APPENDIX: Example of Chart of Accounts 278
RARE PRACTICAL EXAMPLES RARE EXAMPLE 1: INVENTORY COSTING AND ACCOUNTING ENTRY EXPLANATION 73 RARE EXAMPLE 2: SALES TAX ACCOUNTING ENTRY EXPLANATION 147 RARE EXAMPLE 3: PAYROLL CALCULATION AND ACCOUNTING ENTRY EXPLANATION 266
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