microsoft ax-tnl basic flow
TRANSCRIPT
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Costing Methods
Item Model Group Parameters:
We can select costing methods from Item Model Group. Also we can decide Whether or not
Physical value of the item should be included in respective Costing method or not.
Costing Methods:
FIFO LIFO Weighted Average Standard Cost
Include Physical valuemeans include those items cost which are only physically updated
(packing slip Updated), INVOICE yet to be posted. So such items can be included in Costing
methods along with Invoiced transactions.
FIFO and LIFO:
Both Costing methods behave as weighted average till Inventory Closing is not done.
Average cost= Total updated cost of item/Total No. of item Available
After Inventory Closing, Adjustment is done with the Inventory Transactions as per Costing
Model Group. Also for calculating average cost of the item, Physical value Parameter in
Inventory Model plays important role. This parameter is just to ensure whether physical Cost
of items ( ie Cost of item whose only Packing Slip is Posted, Invoice yet to be Posted)
should be consider or not.
Scenario I:
Item No: 000035
Inventory Model Group: Chairx
Costing Method: FIFO
Include Physical Value:UNCHECKED
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Fig 1: Item Model Group: Chairx, FIFO, Include Phy. Value= Unchecked
TRANSACTIONS:
a. Create PO1 of qty=10, Unit price=5, Total amount=50. Only Post Packing Slip.b. Create PO2 of qty=10, Unit price=7, Total amount=70. Post Invoice.c. Create PO3 of qty=10, Unit price=9, Total amount=90. Post Invoice.
At this point Inventory Status is:Physical On-hand= 30
Physical Cost amount= 50 (PO1)
Financial Cost amount= 70+90 =160 (PO2+PO3)
Cost Price = 160/20 = 8/unit (Unless FIFO, Weighted Avg. Method is followed)
Here:Only financial cost amount (160) and number of items associated (20) are
considered, as Include Physical value=UNCHECKED
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d. Raise SO1 of qty=5. Post Invoice.Due to calculated cost price=8/unit. Invoice of 8*5=40 is been posted.
After SO1 Invoiced Transaction:
Physical Cost amount=50 AND Financial Cost amount=120
Now, Check Include Physical value checkbox.
Inventory Model: FIFO
Include Physical Value= CHECKED
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Here: To calculate Cost Price Physical as well as Financial Cost summed up and divided by
total Physical Inventory. Cost Price= (50+120)/25 = 6.80/Unit
e. Raise SO2 of qty=8. Post Invoice.Due to calculated cost price=8/unit. Invoice of 8*6.80= 54.40 is been posted.
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That means, AX calculates cost of each item as Average Cost, depending upon Physical value
parameter in Item model group. Unless Costing Method is FIFO, average item costs get
assigned at the time of Invoicing but not the cost of the first item as per FIFO rule. When we
close Inventory, All respective transaction got settled against Item model group.
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TRANSACTIONS IN PURCHASE ORDER
How purchased items should flow once they have arrived to company is handled with the
help ofItem model group: Physical Update parameters.
Registration Requirements:
When it is ACTIVE, Purchased items must be registered before Updatephysically (Post Packing Slip). Quantities to be Updated physically should be
registered with tracking dimensions like Serial No, Batch No etc.
When it is Disabled, Purchase items can be Update physically successfullyinto inventory without Registration process of items.
Receiving Requirements: When it is ACTIVE, Purchased items must be received into Inventory (Post
Packing Slip) before Invoicing. Here only items those are Physically updated
into inventory can only be Invoiced. So we can check PO Invoice qty against
Quantity actually received.
When it is Disabled, Invoice can be raised for PO items those yet to receiveOR to be updated into Inventory.
Registration Packing Slip Invoicing
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SCENARIO:
Item No: Binbag
Item name: Binbag
Inventory Model Group: Std Chair
Registration Requirements= CHECKED
Receiving Requirements= CHECKED
Fig. Item Model Group Parameter.
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Fig: Item Storage Dimensions AND Tracking DimensionsTRANSACTIONS:
Create PO of qty=20, Unit price=5, Site=2, WH=21 Total amount=100. Confirm PO.
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Fig. Transactions in Various Stages of PO. (*Reference : Pratik-ITTI Mumbai CaseStudy.xls)
Sr.No
1 TryConfirm Confirm Button PO Confirmed 20 qty is ON Order Status
Fill all necessory Information Inventory Transaction is PO is OPEN ORDER STATUS
20 qty ORDERED
2 Try Packing Slip Try to generate Packing slip to ERROR Qty 20 cant received,Registration Required
Before Registration Update Physical Inventory Due to Items should be registered into company before it get
Registration Req=CHECKED updated into Inventory.
Registration Updateline->Registration
3 Process
(Depending on Tracking Enter Batch No. Manually ERROR Batch No should be created before, for specific Item.
Dimensions) Cant directly specify, has to be selected from already created List of Batches
Create Sr. No with Wizard Sr. No and Batch No is created Sr. No is created with given format in Wizard e.g. SrN-BB## (Sr-BB01 TO Sr-BB20)
Select Batch No from dropdown Batch No also assigned to bunch of items.
POST ALL Item got registered with given Inventory Transaction
Sr,No and Batch NO ON hand=Physical A vai lab le 20
Status= Registered
PO is OPEN STATUS
Try Invoi ci ng Bef ore try to update Invoi ce f or PO ERROR Qty cant be Invoi ced cause Inventory trans are not wi th Status= Recei ved
4 Packing Slip Due to Generate Payment only for items which we have received updated into Inventory
Received Req=CHECKED
Try to generate Packing slip
5 Update Physical Inventory
5.1 Enter Receipt No. 20 items got updated into Status= Recieved
Qty updated=20 (ALL) Inventory. PO is Received Status
Receipt Form->Lines->Qty=15 15 qty got updated On hand =20 PO is Open Status
(5 remainder to Deliver yet) Received=15
5.2 Registered=5
Product receipt,Qty=5 5qty got Updated On hand=20 PO is Received
Received=20
6 Cancel Product Reciept Receipt Journal-> Cancel Cancel Successfully All transactions from Product receipt and Regeistrat ion got Deleted
Cancel already received Items Inventory Transaction for 20 qty = On Order Again
PO is OPEN STATUS Again
Again Process From Registration->Product Receipt
PO is recceived Status
7 Invoice Post Invoice Receipt Ledger A/c got updated Inventory Tranactions
with item Cost 20 qty PURCHASED
SO is INVOICED
Post Product Receipt
ALL
PARTIAL
Steps Taken ResultPurpose Explaination
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Packing Slip Before Registration:
Registration Process Screen-shots:
Fig: Registration Form
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Fig: Inventory Status after Registration
Packing Slip Process Screen-shots:
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Fig: Inventory Status after Packing Slip Updated
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TRANSACTIONS IN SALES ORDER
How items should move out of the Inventory once SO confirmed? Set up Item model group:
Physical Update parameters.
Picking Requirements:
When it is ACTIVE, Sales items must be Picked from Inventory beforeUpdate physically (Post Packing Slip). Quantities to be updated physically
should be picked with help of tracking dimensions like Serial No, Batch No
etc.
When it is Disabled, Sales items can be moved out of inventory withoutPicking Process. We can Update Packing slip without Picking of Items.
Deduction Requirements:
When it is ACTIVE, Sales items must be deducted from Inventory (PostPacking Slip) before Invoicing. Here only items those are physically updated
and deducted from inventory can only be Invoiced. So we can check SO
Invoice qty against Quantity actually deducted.
When it is Disabled, Invoice can be raised for SO items those yet to deductOR to be updated out of Inventory.
Picking
Items
Packing
SlipInvoicing
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SCENARIO:
Item No: Binbag
Item name: Binbag On Hand=30 qty
Inventory Model Group: Std Chair
Registration Requirements= CHECKED Receiving Requirements= CHECKED
Reservation Method: AUTO
Fig. Item Model Group Parameter.
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TRANSACTIONS:
Create SO of qty=20, Unit price=5, Site=2, WH=21 Total amount=100. Confirm PO.
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Fig. Transactions in Various Stages of SO. (*Reference : Pratik-ITTI Mumbai CaseStudy.xls)
Sr.No
1 Try Confirm Confirm Button SO Confirmed 20 qty is Reserved Physically
Fill all necessory Information Inventory Transaction is SO is OPEN ORDER STATUS
20 qty Physically Reserved on hand=30 reserved=20 Available=10
2 Try Packing Slip Try to generate Packing slip ERROR Qty 20 cant Dedcted,Picking Required
Before Picking Update Physical Inventory Due to Items should be Picked from the Inventory before it get deducted from Inventory
Picking Req=CHECKED
Picking Updateline->Pick SO is Open Status
3 Process On hand=10
Picked=20
Depending ON Available =10
Picking Route Status in
A/c receivable param Automatically Picking No picking Registration is required.
Route=COMPLETE Item Transaction status=PICKED Automatically
For Physical Picking or manual Have to do picking registration ,Manually
picking. Item Transaction status=ACTIVATED
Route=Activated Enter Qty in Registration form -> Update ALL
Status=PICKED
Try Invoicing Before try to update Invoice for SO Qty cant be Invoiced cause Inventory trans are not with Status= Deducted
4 Packing Slip Due to Generate Payment only for items which have deducted from Inventory
Deduction Req=CHECKED
Try to generate Packing slip to
5 Update Physical Inventory
5.1 Enter Receipt No. 20 items got Deducted From Status= Deducted
Qty updated=20 (ALL) Inventory. SO is Deducted Status
Receipt Form->Li nes->Qty=15 15 qty got updated On hand =10 SO is Open Status
(5 remainder to Deduct yet) Deducted=15
5.2 Picked=5
Packing Slip,Qty=5 5 qty got Updated On hand=10 SO is Deducted
Deducted=20
6 Cancel Packing Slip Receipt Journal-> Cancel Cancel Successfully All transactions from Picking registration and Packing s lip got Deleted
Cancel already Deducted Items Inventory Transaction for 20 qty = Physicaly Reserved Again
SO is OPEN STATUS Again
Again Process From Pi cking Registration->Packing Slip Update
SO is Deducted Status
7 Invoice Post Invoice Receipt Ledge r A/c got updated Inventory Tranactions
with item Cost 20 qty SOLD
SO is INVOICED
ERROR
Post Packing Slip
ALL
PARTIAL
PurSOse Steps Taken Result Explaination
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Registration Process Screen-shots:
Fig: Registration Form
Fig: Inventory Status after Registration
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Packing Slip Process Screen-shots:
Fig: Inventory Status after Packing Slip Updated
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ITEM RESERVATIONS
Manual Auto Ordered Reserve
MANUAL RESERVATION:
Accounts receivable>Acc. Receivable parameter>Reservation>Manual
Here, When SO confirmed, NO items got reserved against PO items. Here SOs issue Status
is Still On Order With this No items is kept reserved for SO items from already received or
items yet to receive PO lot automatically.
You have to reserve items manually. Here you can reserve items of specific Sr. No from
specific Batch.
Select SO>Lines>Inventory Tag> Reservation> Reserve line>Ok
AUTO RESERVATION:
Accounts receivable>Acc. Receivable parameter>Reservation>AUTO
Here, When SO confirmed, items got reserved against PO items. Here SOs issue Status
updated to Reserved from On Order With this items can be reserved for SO items from
already received (Physical Reserved) or items yet to receive(Ordered Reserved)PO lot
automatically.
ORDERED RESERVATION:
We can reserve from the PO items which are yet to receive physically into inventory.When
PO items are at Ordered status (Packing Slip not updated), we can reserve from the ordered
quantity if On-hand inventory=0 (Insufficient in hand).
Here when items got reserved from ordered quantity called Ordered Reserved. Shows no of
items under Ordered reserve column.
To enable Order reservation,
Inv. Warehouse Mgmt>Inv and Warehouse Parameters> Ordered Reserve= CHECKED
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Automatic reservation is dependent on Reservation Parameters set On Item Model Group
Setting.
Date Controlled Backwards from Shipdate
Date Controlled Reservation is act as FIFO for PO items to reserve. Here items those
received first got preference for reservation over those received later.Here oldest PO lines
reserved for latest SO lines.
Backward Shipdate Reservation is act as LIFO for PO items to reserve. Here items those
received latest got preference for reservation over those received first. Here PO of closest
date of receipt considered for latest SO lines.
Scenario:
Physical Available=3 , Oredered=5 , On-order=6
After SO line reservation:
Physical Available=0, ordered=5, Physical reseverd=3, ordered reserved=3, on-order=2
Here, 3 qtys are reserved from available on hand items ie Physical reserve=3 And other 3 are
reserved from Ordered qty (3 out of 6) ie Ordered reserve=3
PO4 Delivery Date: 25 Aug 2013
PO3 Delivery Date: 17 Aug 2013
PO2 Delivery Date: 10 Aug 2013
PO1 Delivery Date: 1 Aug 2013
SO1 15 Aug 2013+4 days
Backward Shipmdate
reservation:
PO3 lines reserved
Received 17 Aug LIFO
Date Controlled
reservation:
PO1 lines reserved
FIFO rule
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Fig. Case studies Order Reservation. (*Reference : Pratik-ITTI Mumbai CaseStudy.xls)
Sr No
Step-1 On hand=96
Step-2 Raise SO1 for qty =96
2.1 Availble Physical qty=96 Are available to reserve , On order qty=96 (Due to Confirm SO1)
2.2 Reserve qty=78 from available Reserved = 78 , Availble Physical qty=18 Are available to reserve , On order qty=18 (Due to Confirm SO1)
(18 qty yet to reserve/pick )
Step-3 Raise SO2 for qty =20
3.1 Reserved = 78 , Availbl e Physical qty=18 Are available to reserve , On order qty=38 ( SO1 qty =18 + So2 qty=20 )
3.2 Picked 18 from available Reserved = 78 , Availble Physical qty=0 Are available to reserve , On order qty=20 ( SO1 qty =18 + So2 qty=2 )
(2 qty yet to reserve/pick )Scenario 1 : Try to Reserve remaining 2 qty ERROR: Qty 2 not available for reservation as 0 is Physical available
[Oredered qty=0, Available=0] We cant reserve qty when there is not qty available physically. Item Model group Not allowed Physical -ve Inventory.
Step-4 Raise PO1 for qty =2 Reserved = 78 , Availble Physical qty=0 Are available to reserve , On order qty=20 ( SO1 qty =18 + So2 qty=2 ) ,Ordered in total = 2 (PO1 qty = 2 )
Step-5 For SO2
Scenario 2 : Try to Reserve remaining 2 qty ON reservation form
[Oredered qty=2, Available=0] Ordered qty = 2 , Availabl e to reserve = 2 , So try to reserve qty=2
reserved qty=78 , Available Physical=0, On order = 18, Ordered i n total=2, Ordered Reserve=2
Here, Items which we have ordered but not yet physically updated , can be reserverd for SO qty. Those were reserved againstordered reserved qty but not in reserved qty.
Scenario: 3 Try to reserve more than ordered
Reserved=20 Physical Availble=0 , ordered=5 Here, We have already ordered 5 qty with raising PO. Now We will try to raise SO for qty=7 and reserve them against ordered qty
SO qty =7 Reserved=20 Physical Availble=0 , ordered=5 , On Order=7
3.1 Ordered=5 , Available to reserve= 5 , Qty to reserve=7 ERROR 5 is available only to reserve
Qty changes to 5 (Maxm qty)
3.2 Reserved=20 Physical Availble=0 , ordered=5 , oredered reserved=5, On Order=2
Instead of Error, We can reserve atmost qty that has Ordered. Reserved against Ordered reserved
ObservationActionScenario
Confirm
Confirm
Confirm
Register All
Confirm
Reserve
Register All
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Bills of Material
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MAXIMUM, MINIMUM ORDER SETTINGS
We can set maximum, minimum quantity of specific item to be purchased or sell from
In Default Order Settings, We can link up default sites that have to link up with specific
Item number for Specific Order type. Also we can control order quantity to be allowed from
selected sites.
In Site Specific Settings, We can link up default Warehouses to site for specific item. Here
also we can control order quantity to be allowed from selected warehouses. We can also
override Default Order settings of particular site.
Scenario: Default Order set up for Purchase Order
Item number: 000035Default Order Site=1 Mandatory
Multiple=2
Minimum Order Qty=2
Maximum Order Qty=10
Standard Order Qty=5
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Actions Input Observation
Create PO, Update line Select item number=00035
on PO line
Site=1 got selected
Qty get updated with qty=6
(Rounded to 6 from Stdqty 5)
Change Site Change site=2 from site=1 ERROR:Transactions must
be for Site=1
(Mandatory Selected)
Change qty to less than
Minimum
Change qty=1 MsgBox :
Minimum Qty=2 Update?
Click YES
Qty to updated=2
MsgBox:Multiple of 3, Update?
Click YES
Qty Updated=3
Actions Input Observation
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Change qty to more than
Maximum
Change qty=13 MsgBox :
Maximum Qty=10 Update?
Click YES
Qty to updated=10
MsgBox:
Multiple of 3, Update?
Click YES
Qty
Updated=12
Click NO
Qty
Updated=15
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Scenario: Site Specific Order Setting for Purchase Order
Item number: 000035
Default Order Site=1 Mandatory
WH=13
Override: Multiple=2
Minimum=4
Maximum=15
Standard=4
Parameters /Actions Input Observation
WH=13
Not Mandatory Select item number=00035
on PO line
Site=1 WH=13 got selected
Qty get updated with qty=6
Change WH=12 from
WH=13
NO ERROR
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Parameters /Actions Input Observation
WH=13
Mandatory
Change WH=12 from
WH=13
ERROR: Transactions must
be for WH 13
Override= Disabled
Check all min, max order
setup
It will take all Default Order
Setting assigned to respective
Site.
Override= Enabled
(Site Specific settings
overrides Default order
Settings)
Select item number=00035
on PO line
Site=1 WH=13 got selected
Qty get updated with qty=4
Change qty less than
minimum
Change qty=3 MsgBox :
Minimum Qty=4 Update?
Click YES
Qty updated=4
Change qty more than
maximum
Change qty=15 MsgBox :
Multiple of 2 Update?
Click YES
Qty updated=16ssss