Archive for the ‘Dynamics AX Trade and Logistics training’ Category

Good day! Today our Purchase manager calls a Vendor to agree such order details as quantity, delivery date, price, and other purchase order information. He or she then adjusts order information in Microsoft Dynamics AX confirms the order details, and then prints the Confirmation document. The Purchase manager expects to receive the items on the order into the warehouse today.

Open the Purchase order form and find the purchase order created in the previous lesson. It contains the following lines:

Purchase order lines

The Purchase manager calls the vendor and agrees on the following order details: item quantity, delivery date, item price, etc.). In this very case the Purchase manager doesn’t change any details as they are correct.

The Purchase manager prints the Purchase order document. This document confirms that our company and the Vendor agree on the purchase order details.

In the Purchase order upper pane, click Posting -> Purchase order. The Posting purchase order form appears.

Posting purchase order

For detailed information about what different fields in this form are used for, click here.

Select the Print purchase order check box on the Parameters tab. All other fields remain unchanged since all information in the form is automatically filled in from the purchase order.

Click OK. The purchase order posting process starts. The result of this process is a Purchase order document.

The Purchase manager sends the Purchase order document to the vendor via a fax or an e-mail.

The Purchase order document is also saved in Microsoft Dynamics AX. To view this document, clicks Inquiries > Purchase order button.

As the Purchase manager assumes that the Vendor delivers items today, he or she should check the purchase order delivery date.

Go to the Purchase order form. In the lower pane of the form, you can find the Delivery date field. Change the delivery date to the today’s date.

Delivery date field

The Purchase manager will typically receive phone calls from a Truck driver asking for a delivery. The Truck driver can deliver multiple purchase orders at a time. But Microsoft Dynamics AX doesn’t have the ability to group multiple purchase orders delivered by one truck. So the Purchase manager must work with each purchase order separately.

In the Purchase business process lesson, we have learned (we will learn) that the warehouse management system (WMS) evaluates all items on the purchase order and determines what receiving door (inbound dock) will result in the least travel time for a putaway. Axapta doesn’t provide the functionality for warehouse doors, but for locations (inbound docks). Also, Microsoft Dynamics AX doesn’t calculate the best inbound dock.

The inbound dock that will be used as a receipt location is set up on the Warehouse management tab of the Warehouses form (Inventory management > Setup > Inventory breakdown > Warehouses).

Return to the Purchase order form. In the lower pane, click Inventory > Dimension display. The Inventory dimensions form opens. Select the Location check box and click OK. As a result, the purchase order line has the Location field populated.

Location field

Why does Microsoft Dynamics AX populates the Location field with location In_01? Because, as I have earlier said, Microsoft Dynamics AX doesn’t calculate the best inbound dock. An inbound dock is set up for the entire Warehouse. Let’s check what default receipt location belongs to warehouse 22. Go to Inventory management > Setup > Inventory breakdown > Warehouses. In the Warehouse form that opens, find warehouse 22. Click the Warehouse management tab and assure the Default receipt location field displays location In_01 (I use this demo data).

The Truck driver delivers the ordered items to warehouse location In_01.

The Purchase manager physically collects the receiving paperwork from the Truck driver. If the Truck driver’s paperwork and the purchase order have any discrepancy in receiving quantity, volume, or weight, the Purchase manager can’t adjust these. Any discrepancy will be adjusted by the Receiving manager.

The Receiving manager needs a receiving document, pallet tags, and a lumper’s TI-HI report (see the definition here). Pallet tags contain information about store locations. To find a store location, WMS must go through putaway routines to determine where to store each pallet. Microsoft Dynamics AX doesn’t have the functionality to support this process. The receiving document, pallet tags, and the lumper’s TI-HI reports are not printed in this step.

In Microsoft Dynamics AX, the receiving manager works in the Arrival overview form. Go to Inventory management > Periodic > Arrival overview. The Arrival overview form opens.

The form displays all purchase orders that are to be delivered. To view the purchase order that must be delivered today, under the Display options field group select Today in the Setup name field.

Display options

The Receiving manager finds the purchase order under the Receipts field group.

Receipts

The Receiving manager selects the Select for arrival check box and clicks the Start arrival button when he or she starts receiving the items. After this an arrival journal is created and an information message appears. The Receiving manager can select the information message and click the Show button in the Infolog form to view the arrival journal (or manually open it from the main menu: Inventory management > Journals > Item arrival > Item arrival).

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Axapta changes the receipt status of the item from Arrived to Registered. This status means that the item is already in the warehouse.

If we inquire on the on-hand information, we will sew the following results (Inventory > On-hand menu button):

On-hand form

Compare it to the on-hand information for the Bottle item from the previous lesson.

Training Lesson Summary

In this training lesson, we have understood how the Purchase manager, Receiving manager, and the Forklift truck driver work with Axapta. The following areas have been covered:

• Post purchase order document
• Arrival overview form
• Arrival journal
• Pallet transport

In the next training, we will learn and understand what a packing slip is.

Technorati Tags: Arrival journal, Arrival overview form, Pallet transport, purchase order document

In the previous training, the Purchase manager received items into the warehouse. De facto, the items are already company property but the Purchase manager must anyway post a packing slip to guarantee that the company receives items. The Purchase manager receives a vendor packing slip document via a fax or an e-mail. Then He or She posts a packing slip document.

The following are the results of a packing slip posting:

• Packing slip document is printed
• Receipt type in the inventory transaction is updated from Registered to Received
• General ledger transactions are posted

From Wikipedia:
“Packing slip is a shipping document that accompanies delivery packages, usually inside an attached shipping pouch or inside the package itself. It commonly includes an itemized detail of the package contents and does not include pricing. It serves to inform all parties, including transport agencies, government authorities, and customers, about the contents of the package. It helps them deal with the package accordingly.”

The following procedure helps the Purchase manager post a packing slip:

1. Open the Purchase order form (Account payable > Common Forms > Purchase Order Details).
2. Find the purchase order created in lesson Create purchase order.
3. Click Posting > Packing slip. The Posting packing slip form opens.

Posting packing slip

This form contains the purchase order that must be packing slip updated. Since all information is set up by default, the Purchase manager can fill in the Packing slip field (number is taken from the vendor packing slip document) and click OK to post the packing slip.

To understand some fields in this form, we will complicate the task for the Purchase manager. Let’s assume that the Purchase manager should print one copy of a packing slip document in another printer and add a “Happy New Year” text to the document’s footer.

1. The Purchase manager selects the Print packing slip check box. In this case, a copy of the packing slip will be printed.
2. The Purchase manager selects the Use print management destination check box. Doing so enables the print management system.

Print management system

Print management system allows specifying the following options:

• Different printers for different documents (Purchase order, Picking list, Packing slip, or Invoice, etc.)
• Number of copies to be printed
• Footer text

The print management settings are set up in a hierarchy, with each level overriding the one underneath. Level: Module, Vendor, or Purchase order.

To add the “Happy New Year” text as a footer on each packing slip document, the Purchase manager opens and edits the purchase module print management settings:

1. Go to Account payable > Setup > Forms > Form setup > General tab > Print management button.
2. In the left pane of the form, select the packing slip document and type “Happy New Year” in the Footer text field.
   

   Print management setup

If the Purchase manager wants two copies of a packing slip document to be printed in a specific printer for vendor supplying the Bottle item, he or she opens and edits the vendor print management settings:

1. Go to Accounts payable > Common Forms > Vendor Details > Setup menu button > Print management.
2. In the left pane of the form, select the packing slip document. Right-click the Original document node and select Override.
   

   Print management setup (Vendor layer)

3. Type 2 in the Number of copies field.
4. Click the “>” button near the Destination field and select another printer (we will leave the one selected).
   

   Print management setup (Vendor layer)

The Purchase manager can add a new document to be printed when a packing slip for this vendor is posted:

1. Go to Accounts payable > Common Forms > Vendor Details > Setup menu button > Print management.
2. In the left pane of the form, select Packing slip document. Right-click the Purchase order packing slip node and then select New.
3. In the right pane, click in the Name field and type Copy of Packing slip.
4. Type It is just a copy in the Footer text field.
   

   Vendor print management setup. Add new document.

As you understand the Purchase manager can also set up the print management system for a separate Purchase order. She or he can do this in the Print management setup form located under Accounts payable > Common Forms > Purchase Order Details > Setup menu button > Print management.

Print management setup (Purchase order level)

Now we understand what the Use print management destination check box in the Posting packing slip form is used for. And we will see the “Happy New Year” text in the footer of the packing slip document.

The Purchase manager returns to the Posting packing slip form. The Parameters tab has following setup:

Packing slip parameters

The Purchase manager clicks Ok.

The packing slip and the copy of packing slip documents are shown on the screen.

Packing Slip Document

Posting results

Let’s check the posting results:

• We can see the “Happy New Year” text in the packing slip footer.
• Two documents are shown: a packing slip and a copy of a packing slip. The copy of the packing slip document contains the “It is just a copy” text in the footer.
• Inventory transaction’s status has changed from Registered to Received:
  1. Return to the Purchase order form.
  2. Select the purchase order line with the Bottle item.
  3. Click Inventory > Transaction
  4. Find the Receipt field and make sure that the receipt type of the inventory transaction is Received.
     

     Inventory transactions form

• General ledger transactions are created.
  1. A company can use general ledger accounts to track amounts of money before an invoice. It is set up in the inventory model group: Inventory management > Setup > Inventory > Inventory model group > Find the FIFO inventory model group (because the Bottle item uses the FIFO inventory model group) > Setup tab > Ledger integration field group > Post physical inventory check box.
     

     Inventory model groups form

  2. To view general ledger transactions generated from the packing slip, do the following:
  3. In the Purchase order form, click Inquiry > Packing slip. The Packing slip journal form opens.
     

     Packing slip journal form

  4. Click the Voucher button. The Voucher transaction form opens. This form contains the information about general ledger transactions generated from a packing slip.
     

     Voucher transaction form

  5. 46$ will be added to account 142100 – Inventory, Received, un-invoiced because the purchase order lines net amount is 46$ (the asset account increased with a positive value). The same amount will be added to account 211250 – Account payable (the liability account increases with a negative value). To understand a financial transaction, refer to the Accounting training.

Good work!

Next, I will create a separate article where you can learn what the remaining fields in the Posting packing slip from are used for. The Posting packing slip form description.

In the next training lesson we will post an Invoice.

Technorati Tags: Packing slip, Print management system

This is the final step in updating a Purchase order. The Purchase Manager receives a hard copy of an Invoice from the supplier. After the Purchase Manager posts an Invoice, the company must pay for the delivered items to the supplier. An Invoice is a guarantee that the company will pay for delivered items.

The following are the results of an invoice posting:

• Invoice document is printed.
• Receipt type in the inventory transaction is updated from Received to Purchased.
• Vendor transaction is created.
• General ledger accounts are posted.
• Purchase order type changes from Received to Invoiced.

From Wikipedia:

“An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms. The buyer has a maximum amount of days to pay these goods and are sometimes offered a discount if paid before.”

To post an Invoice, the Purchase Manager performs the following steps:

1. Open the Purchase order form (Accounts payable > Common Forms > Purchase Order Details).
2. Find the purchase order created in lesson Create purchase order.
3. Click Posting > Invoice. The Posting invoice form opens.

Posting invoice form

In the Posting invoice form, the Purchase Manager can set up a payment method, currency exchange rate, purchase charges, and discounts.

The Posting invoice form contains a number of fields similar to those of the Posting packing slip form. You can find more information about specific field(s) in the Posting invoice form field guide.

The Purchase Manager can use the Invoice matching functionality. Invoice matching is the process of matching a vendor invoice with a purchase order or a vendor invoice with a packing slip. For example, a Packing slip represents an actual shipment, but an Invoice can be received with another quantity or price. To see the difference in the Posting invoice form, Invoice matching functionality is used. To know more about the Invoice matching functionality, click here.

The Purchase Manager fills in the Invoice field with the number from the vendor Invoice, checks the lines’ details, selects the Print Invoice check box, and then clicks OK. The Invoice is now posted.

Posting results

Let’s check the posting results:

• The Invoice document is printed.
• Inventory transaction status has changed from Received to Purchased.
  1. Return to the Purchase order form.
  2. Select the purchase order line for the Bottle item.
  3. Click Inventory > Transaction.
  4. Find the Receipt field and make sure that the receipt type of the inventory transaction is Purchased.
     

     Transactions form

• The vendor transaction is created. To view the vendor transaction, go here Accounts payable > Common Forms > Vendor Details > Find the Big Bottle vendor > Click the Transactions button.
• General ledger transactions are created.

To view general ledger transactions generated from the invoice, do the following:

1. In the Purchase order form, click Inquiry > Invoice. The Invoice journal form opens.
   

   Invoice Journal form

2. Click the Voucher button. The Voucher transactions form opens. This form contains the information about general ledger transactions generated from an invoice.
   

   Voucher transactions form

3. 46$ will be added to account 141020 – Inventory, Receipt because the purchase order lines’ net amount is 46$ (the asset account increased with a positive value). The same amount will be added to account 211100 – Account payable (the liability account increases with a negative value). Also the system reverses transactions generated during the posting of the Packing slip (refer to previous training and find what transactions are generated).

Purchase order financial posting

The Purchase Manager finishes work with the purchase order. But let’s try to investigate how an Invoice is posted to general ledger accounts.

After the Purchase Manager has posted an Invoice, the following happens:

1. He or She agrees to pay the vendor for the received items. A vendor transaction is generated. A vendor transaction contains the information that the Big Bottle vendor must be paid 46$. To view the vendor transaction, go here Accounts payable > Common Forms > Vendor Details > Find the Big Bottle vendor > Click the Transactions button.
   

   Vendor transactions form

2. When the Purchase Manager posts an Invoice, inventory transaction type changes to Purchased (inventory transactions are generated when the purchase order is created). Inventory transactions contain the information that 5,000 Bottles Red 0.5 items are purchased and 3,000 Cans Standard Black items are also purchased. To view Inventory transactions for a certain item, go here: Inventory management > Common Forms > Item Details > Find the Bottle item > Click the Transactions button.
   

   Transactions on item form

Note that from the vendor transaction we can’t find for what items the company must pay to this vendor. The vendor transaction contains only the amount of money that must be paid. Also, inventory transactions contain information only about an item (Still, we can find out from whom we purchase items because this information can be used in supply chain management).

All company transactions (vendor transactions, inventory transactions, customer transactions, production transactions, etc.) are reflected in general ledger transactions. In our case, a vendor transaction and an inventory transaction with the status Purchased, are reflected in the general ledger accounts. General ledger accounts contain the information only about the amount of money.

The Accountant sets up the correspondence between a vendor transaction and a general ledger account. When a vendor transaction is generated, a corresponding general ledger transaction is generated for the general ledger account. The correspondence is set up in the vendor posting profile that is located under Accounts payable > Setup > Posting profiles > Setup tab.

Vendor posting profiles form

Only one vendor posting profile can be active at a time. An active vendor posting profile is set up under Accounts payable > Setup > Parameters > Ledger and sales tax tab > Posting profile field. For a prepayment, separate vendor posting accounts can be used. These are located under Accounts payable > Setup > Parameters > Ledger and sales tax tab > Posting profile with prepayment field.

The Accountant sets up the correspondence between inventory transactions and general ledger accounts. When an inventory transaction is generated, a corresponding ledger transaction is also generated. To set up the correspondence between inventory transactions and a general ledger account, go to Inventory management > Setup > Posting > Posting.

Inventory posting form

When an Invoice is posted, all generated general ledger transactions are grouped in a Voucher.

Let’ check what general ledger transactions are generated for the Invoice.

1. Click Accounts payable > Common Forms > Vendor Details > Find the Big Bottle vendor > Click the Transactions button.
2. In the Vendor transactions form, click the Voucher button. The Voucher transactions form opens. Since a Voucher groups all general ledger transactions from one Invoice there are several lines exist. A Voucher can be accessed from the Purchase order and Item transactions form also (Purchase order form > Inquiry button > Invoice button> Voucher button; Item form > Transactions button > Ledger button > Financial voucher button).
   

   Voucher transactions form

First, general ledger transactions are generated to reverse the general ledger transactions generated during the posting of the Packing slip. We can check what transactions are generated during the posting of the Packing slip here: Purchase order form > Inquiry button > Packing slip button> Voucher button. It’s are transactions for 211250 and 142100 general ledger accounts.

Then, a general ledger transaction is generated for the 211100 account. I know that this transaction is generated from the vendor transaction because the Posting type field (on the Voucher transactions form) contains the Vendor balance value.

Let’s check:

1. Find out what vendor posting profile is active (Accounts payable > Setup > Parameters > Ledger and sales tax tab > Posting profile field. In my case, this is the GEN posting profile.
2. Go to the Vendor posting profiles form (Accounts payable > Setup > Posting profiles). Find GEN and go to the Setup tab.
   

   Vendor posting profiles form, Setup tab

The Big Bottle vendor doesn’t belong to the 90 vendor group. The Summary account field contains a general ledger account that will be used when a transaction for the Big Bottle vendor is generated. This field contains the 211100 general ledger account just like in the Voucher.

Then, a general ledger transaction is generated for the 141020 account. This transaction is generated from the inventory transaction.

Let’s check:

1. Go to Inventory management > Setup > Posting > Posting.
2. Go to the Purchase order tab.
3. Click the Receipt option button.
   Inventory transactions are generated for the Bottle and Can items. These items belong to Packaging item group (Inventory management > Common Forms > Item details form > Find the Bottle item > Item group field). Find the record where Item code = Group and Item Relation = Packaging. For this combination, the corresponding general ledger account is 141020.
   

   Inventory posting form, Purchase order tab

Note: Since two inventory transactions are reflected to one general ledger account, they have been summarized during the posting of an invoice and only one general ledger transaction has been generated.

As we discussed earlier, general ledger accounts are used to define the following:

• If the company receives profit or loss during a period of time
• Different balances (payable, receivable, inventory)

I recommend you go through the Accounting training, or at least read articles from the site. I also study Accounting from this site.

Now we have finished the purchase business process.

Training summary

In this training, we have done the following:

1. Set up a vendor, a warehouse, and equipment
2. Created a purchase order
3. Went through the item arrival and registration
4. Posted a Packing slip
5. Posted an Invoice

Thank you for your attention and enjoy your work with Microsoft Dynamics AX.

Technorati Tags: Post an Invoice, Voucher

Hi Axapta mate! In this training lesson we examine the sale flow.

The following roles are involved in the sales process:

• Sales Manager
• Shipment Manager
• Warehouse Worker
• Truck Driver
• Customer

First of all, the Sales Manager needs to find customers. For this purpose, the Sales Manager uses different techniques such as searching in targeted magazines and blogs, using telemarketing, direct marketing, taking part in job fairs, etc and noting, noting, and noting contacts of potential customers. All notes are recorded in the Customer Relationship Management system (CRM). Microsoft Dynamics AX also has the CRM module. In it, can find Business relations, Contacts, Leads, Opportunity, and Sales quotations. All these forms are used to manage the process of finding clients. We don’t go deep inside the customer search process, we just take this into account in order to understand that it is also an interesting flow. If we decide to create training for the CRM module, we will consider this flow together =).

Let’s assume that the Sales Manager has found a Customer. The Customer wants 1,000 items Bottle Red 0.5 and 200 items Can Standard Black.

The Sales Manage creates a sales order with two lines. The Sales Manager calls the Customer and agrees order details. Then, the Sales Manager prints the confirmation document. This document contains the information about items, item quantities, and prices. After that the Sales Manager sends this document to the Customer via fax or e-mail. The confirmation document is a guarantee that the Sales Manager and the Customer have cut a deal.

The Sales Manager creates warehouse orders (or posts a picking list). A warehouse order contains the information about the items to pick. A picking list contains warehouse orders.

At the same time, an empty truck stops near the warehouse door and is ready for loading the items.

The Shipment Manager registers the truck information in the system; this includes truck capacity, truck type, warehouse door, etc. Then, the Shipment Manager assigns warehouse orders that must be loaded into the truck.

After this the Shipment Manager run a specific program that takes into accounts all assigned warehouse orders and determines where an item from the warehouse order must be picked from. Then, he or she generates picking routes.

Picking routes are used by the Warehouse Worker and contain the information about an item, its quantity, its picking and destination location.

The Warehouse Worker selects and reads the information from the picking route and performs following steps:

1. Goes to the picking location.
2. Picks items.
3. Moves items to the destinations location.
4. Loads items into the truck.

When all warehouse orders are processed, i.e. loaded by warehouse workers into the truck, the Shipment Manager prints the Shipment list.

From Wikipedia:

“The Shipment list is a shipping document that accompanies delivery packages, usually inside an attached shipping pouch or inside the package itself. It commonly includes an itemized detail of the package contents and does not include customer pricing. It serves to inform all parties, including transport agencies, government authorities, and customers, about the contents of the package. It helps them deal with the package accordingly.”

Then, the Shipment Manager prints the Bill of lading and gives it to the Truck Driver to  sign (we assume that the items will be delivered by the carrier company and the Truck Driver works in this company). The Truck Driver returns the signed Bill of lading to the Shipment Manager. The Shipment Manager releases the truck.

From Wikipedia:

“The Bill of lading is a document issued by a carrier to a shipper, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified. It is evidence of contract between carrier and shipper.”

In our case, a bill of lading is document that guarantees that 1000 Bottles and 200 Cans are received on board and will be delivered to the Customer. At the same time, our company should pay a specific amount of money to the carrier company.

When items are delivered, the Sales Manager posts, prints, and sends the Packing slip document to the Customer. The Packing slip document is a guarantee that the Customer receives items.

Finally, the Sales Manager posts, prints, and sends an invoice document to the Customer. This document confirms that the Customer must pay some amount of money to the company. This process creates a ledger transaction – the Inventory account is credited (decreased), the Accounts Receivable account is debited (increased).

Just the same as in the purchase business process, there is still one more step. It is the payment process. But it does not belong to the sales business process. Even more, the payment is out of the Trade and Logistics scope. Payment will be studied in the Microsoft Dynamics AX (Axapta) Financial training.

Training Lesson Summary

In this training lesson, we have learnt the sales business process. Let’s review the key personas and what they do:

• Sales Manager
  • Finds a Customer
  • Creates a Sales order
  • Confirms a sales order (a guarantee that the Customer agrees the order details)
  • Creates warehouse orders
• Tuck Driver
  • Drives the truck to a specific warehouse door
• Shipment Manager
  • Registers the truck
  • Determines picking locations for warehouse orders
  • Creates picking routes
• Warehouse Worker
  • Reads the picking routes
  • Goes to the picking location
  • Picks the items from the picking location
  • Moves the items to the destination location
  • Loads the items into the truck
• Shipment Manager
  • Prints the Shipment list
  • Prints the Bill of lading (a guarantee that the carrier has received the items)
• Truck Driver
  • Signs and returns the Bill of lading
  • Leaves the warehouse (with the items and the Shipment list)
• Sales Manager
  • Posts the Packing slip document (a guarantee that the items are received by the Customer)
  • Posts the Invoice document (a guarantee that the Customer must pay)

In the next training lessons, we will understand how the sales process is implemented in Microsoft Dynamics AX.

Technorati Tags: bill of lading, picking list, Picking routes, Sales business process, Shipment list, warehouse orders

In this training lesson, we are going to create a Customer and a Sales order.

From the previous lesson, we have the following information:

• The Sales Manager has found a Customer
• The Customer wants to purchase 1,000 items Bottle Red 0.5 and 200 items Can Standard Black

The Sales Manager creates a record for the Customer in the system:

1. Go to Accounts receivable > Common Forms > Customer Details. The Customers form opens.
2. Create a new line by pressing CTRL + N and fill in the Customer information. (We assume that the Sales Manager has already acquired the necessary information from the Customer). All the other fields remain filled in by default.
3. Click the Overview tab and fill in the following fields:
   • Customer account = 1000
   • Name = Natural Juice
   • Customer group = 20 (Major customers). Customer group is used to group customers that have common properties, such as terms of payment, settle period, ledger posting table for inventory transactions. You can read about the ledger posting table for inventory transactions here (the article describes a vendor group).
4. On the Setup tab, enter the following information:
   • Delivery terms = FOB_DS (FOB destination). Delivery terms answer the following questions: which party (a buyer or a seller) pays for which shipment and loading costs and which party takes the responsibility for the goods. FOB (from wikipedia) – Free on board means that the seller delivers when the goods pass the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that point. If we go to the FOB_DS parameters (Accounts receivable > Setup > Distribution > Terms of delivery > find FOB_DS record > Setup tab), we can find that the Freight charge terms field contains N/A (not available). It means that delivery charges are not included in an invoice and all delivery charges must be paid by the Customer himself/herself.
   • Mode of delivery = 10 (Truck)
   • Receipt calendar = Standard. Receipt calendar is used to specify days of week when the Customer can receive the items.
5. Click the Sales order tab (we assume that the items for this Customer will be taken from the warehouse 11).
   • Site = 2
   • Warehouse = 21
6. On the Address tab, fill in the following information:
   • Name = Main
   • Address type = Delivery
   • Street name = 678 Central Avenue
   • ZIP/Postal Code = 30005
   • City = Alpharetta
   • County = FULTON
   • State = GA
   • Country/region = US

Now, the Sales Manager can proceed to create a Sales order.

Go to Accounts receivable > Common Forms > Sales order details. The Sales order form opens.

Create a new line by pressing CTRL + N. The Create sales order form opens.

Create sales order form

Select 1000 in the Customer account field.

If the Prompt for customer information check box is selected (Accounts receivable > Setup > Parameters > General tab > Setup field group > Prompt for customer information check box), the following dialog box appears:

Dialog box: Transfer customer information

Click Yes.

All customer information will be transferred to the Sales order. Note that the Sales order information will be transferred to a sales line when it will be created.

Prior to clicking the OK button in the Create sales order form, let us discuss several fields.

The Delivery date control field is used to define the algorithm of calculating the available receipt date. Delivery date control function is used to primarily give realistic and complete delivery promises to a customer during a sales order entry and shorten the sales order entry time.

For example, the Customer asks to deliver items today. The Sales Manager enters the current date in the Requested receipt date field. As a result, the Available ship and receipt dates form opens. This form contains the information that the entered date is not valid. The form grid contains the information about the available dates.

Available ship and receipt dates form

The Sales Manager informs the Customer that the items can be delivered only on May, 14. If the Customer agrees, the Sales Manager sets the cursor in the 5/14/2010 line and clicks the Transfer to requested button.

Why are the records for Tuesday, Wednesday and Thursday not available? Axapta has two types of delivery date control – Sales lead time and Available to Promise (ATP). Sales lead time calculates the first available date in the following manner: current date + sales lead time. The following parameters are taken into account: coverage calendar, order entry deadline, customer receipt calendar, transport time, and transport calendar. We will discuss all these parameter later in this training. Our demo data already contains setup for sales lead time: Accounts receivable > Setup > Parameters > Shipments tab > Delivery control field group > Sales lead time field. Sales lead time is 3 days.

For example, the company knows that ALL items for the sales order can be purchased, received into the warehouse, and shipped to the Customer within 3 days. In this case, the Sales Manager enters 3 in the Sales lead time field for the sales order.

The sales lead time can be set up under the following path:

• For a sales order: Accounts receivable > Setup > Parameters > Shipments tab > Delivery control field group > Sales lead time field.
• For an individual item: Inventory management > Common Forms > Item details > select necessary item > Setup button > Site specific order settings > Sales order tab > select the Override check box > Sales lead time field.
• For an individual item and a Customer: Inventory management > Common Forms > Item details > select necessary item > Trade agrmt. button > Sales price button > Delivery field group > Lead time field.

Note: When an item is added to the Sales order, the requested receipt date is verified (if verification is not successful, the Available ship and receipt dates form opens).

ATP (Available to promise) is a more interesting method. ATP provides a response to the customer’s order enquiries based on resource availability. It generates available quantities of the requested product and delivery due dates. ATP supports order promising and fulfillment aiming to manage the demand and match it to production plans. This method does not use the Sales lead time and calculates the available date base on the following:

• Issues and receipts (only primary stocking is considered)
• Issues and receipts from the planned orders

Like the Sales lead time method, this one also takes into account the following parameters:

• Coverage calendar
• Order entry deadline
• Transport time
• Transport calendar
• Customer receipt calendar

If we select ATP in the Delivery date control field, the Requested receipt date is changed to the current date. When we click the Simulate delivery dates button, the following information is shown in the Available ship and receipt dates form.

Available ship and receipt dates form. ATP method.

We can see that all dates from today are available. This happens because we have not set the time fence for the ATP calculation. (If we, for example, set the time fence for 10 days, all days remain available because the sales lead time is not used and no sales order line exists.) When we create a first sales order line, the system recalculates the available receipt date based on the item availability. So we will discuss the ATP method a little later when creating a sales order line.

Having returned to the Create sales order form, the Sales Manager selects ATP in the Delivery date control field.

The Delivery address field group contains the Customer address. The Information is transferred from the Customer form.

The Shipping field group contains the information about delivery terms. The Information is transferred from the Customer form as well.

The Administration field group contains the information about the Recipient (is taken from Administration > Users > select current user > User relations button > General tab > Employee field) and the Sales responsible (this employee receives commission for a sale).

The Sales Manager clicks the OK button. A Sales order with no lines is created.

Sales order form

Now, the Sales Manager can proceed to create sales order lines:

1. In the line area, select the Bottle item in the Item number field.
2. Select 0.5 in the Size field.
3. Select Red in the Color field.
4. The Site field is filled in from the sales order with the value 2.
5. The Warehouse field is also filled in from the sales order with the value 21.
6. Fill in 1000 in the Quantity field.
7. Unit price is automatically filled in from the Item form. (Remember that we have set up a sales price for an item in this training).
8. Save the line by pressing CTRL +S.

We may note that the Requested receipt date for the line is the current date + 1. Let’s now analyze how the ATP works.

Available to promise (ATP)

As we said earlier, ATP provides an available receipt date to the customer’s order enquiries based on resource availability.

The following parameters are taken into account:

• ATP time fence – it is the number of days that will be considered. Let’s set the ATP time fence to 10 days. Go to Accounts receivable > Setup > Parameters > Shipments tab > Delivery control field group > ATP time fence field and type 10. Note: The ATP time fence can be set up for an individual item under Inventory management > select necessary item > Setup button > Site specific order settings > Sales order tab > select the Override check box > ATP field group > ATP time fence field.
• Issues and receipts (only primary stocking is considered). Find the primary stocking dimensions for the Bottle items:
  • Go to Inventory management > Common Forms > Item details. The Item form opens.
  • Find the Bottle item and locate its dimension group (Item form > General tab > Groups field group > Dimension group field).
  • It is the CS-WLP dimension group. We have set up this group in this training lesson.
  • Right-click in the Dimension group field and select Go to the Main Table Form. The Inventory dimensions form opens. This form contains the dimension setup. Find the dimensions with the Primary stocking check box selected. These are Size, Color, Site, and Warehouse, so this dimension is a primary stocking.

  Let’s check the issue and receipt.

  1. Go to Inventory management > Common Forms > Item details. The Item form opens.
  2. Find the Bottle item and then click the Transactions button.
  3. In the Transactions form, click the Inventory > Dimension display button, select all dimensions, and then click OK.
  4. Now, among all transactions, find the transactions with primary stocking dimensions same as those of the sales order line dimension. No receipt transaction exists, because in the previous lessons we received the purchased item to warehouse 22. Warehouse 21 doesn’t contain the required item. No issue transaction also exists, because it is our first sale.

  Since there are no items in warehouse 21, we can’t promise any receipt date for the Customer. Check if we have correctly reflected on the issue. Return to the Sales order form, in the line area, go to the Delivery tab and click the Simulate delivery dates button. The following form opens.

  

  Available ship and receipt dates form. ATP time fence = 10 days.

  Since the ATP time fence is 10 days, the item can’t be delivered to the Customer during this period because the on-hand values are zero. The Sales Manager can’t promise anything.
  The Sales Manager decides to take the item from warehouse 22. The Sales Manager returns to the Sales order line and fills in 22 in the Warehouse field. Then, the Sales Manager opens the Available ship and receipt dates form again and finds the following results.

  

  Available ship and receipt dates form. 22 warehouse.

  Now, the Sales Manager can select any date because the item is available in the warehouse.

• Issues and receipts from the planned orders. This parameter is only taken into account if the ATP incl. planned orders check box is selected
  • Global setup: Accounts receivable > Setup > Parameters > Shipments tab > Delivery control field group > ATP incl. planned orders field.
  • Per item: Inventory management > Common Forms> Item details > select necessary item > Setup button > Site specific order settings > Sales order tab > select the Override check box > ATP incl. planned orders field.
• Coverage calendar is used to specify the dates when a warehouse works i.e. items can be shipped from the warehouse. The coverage calendar for the warehouse is set up under Inventory management > Setup > Inventory breakdown > Warehouses > Master planning tab > Item coverage field group > Calendar field. In the coverage calendar, you can set up open and closed days for the warehouse. If the requested shipping date falls on a closed day, then the next open day is used for the requested shipping date. If you do not set up a coverage calendar, the open and closed days defined in the company shipping calendar are used (Basic > Company information > Other tab > Shipping field group > Shipping calendar field).
  In our case, Coverage calendar = Whse. Let’s look what information is in this calendar: Go to Basic > Calendar > find the Whse calendar > click the Working times button. The Working times form opens.
  

  Working times form. Whse calendar.

  Calendar days’ controls are taken from the BaseCtrl base calendar. If we open the Working times form for the BaseCtrl calendar, we can see that on Monday the warehouse works 24 hours from 12:00 AM to 24:00. If we set the cursor to Saturday or Sunday, we can see that the warehouse doesn’t work. i.e. the warehouse works 5 days except Saturday and Sunday. Let’s assume that the warehouse doesn’t work on 5/26/2010. Find this date in the Working times form and select Closed in the Control field.

  

  Working times form. 5/26/2010 is closed.

  Now, we will check the result. Return to the Delivery tab of the sales order line and click the Simulate delivery date button.

  

  Available ship and receipt dates form. Coverage calendar.

  We can see that there is no 5/26/2010 date in the form.
  Make the 5/26/2010 date available by yourself

• Order entry deadline determines the cut-off time after which orders are shipped one day later. It is possible to set up an individual order entry deadline for a site (a group of sites) and a customer (a group of customers).
  Each customer can be assigned to an order entry deadline group under Accounts receivable > Common Forms > Customer details > Sales order tab > Sales order field group > Order entry deadline group field. A site is assigned to an order entry deadline group under Inventory management > Setup > Inventory breakdown > Sites > General tab > Order entry field group > Order entry deadline group field.
  Let’s assume that in our company the order entry deadline is set to 14.00 for all customers and all sites. Go to Inventory management > Setup > Distribution > Order entry deadlines. The Order entry deadlines form opens.
  

  Order entry deadlines form

  As we can see, our demo data already contains the record with required values. I mean the first record which shows that for all sites and all customers the order entry deadline is set to 14.00 during 5 working days.
  Let’s check how it works. Return to the sales order line, go to the Delivery tab, and then click the Simulate delivery dates button. Let’s check the Available ship and receipt dates form more attentively.

  

  Available ship and receipt dates form. My time.

  Now, my time is set to 17:22, we set up the order entry deadline to 14:00, but the system allows using the 5/19/2010 date as a receipt date. Why doesn’t the system shift the available receipt and ship date to one date? This happens because that order entry deadline is set up for a warehouse. But, a warehouse can be situated in one place and the Sales Manager in another place. Let’s check if I am the Sales Manager and I sit in Kyiv, Ukraine. My time is 17:22 and the Time zone is GMT +2. Where is the Warehouse situated? Go to Inventory management > Setup > Inventory breakdown > Warehouses > find warehouse 22. This warehouse belongs to  site 2. Go to the site parameters under  Inventory management > Setup > Inventory breakdown > Sites > find  site 2 > General tab > Order entry field group > Time zone field.

  

  Sites form. Order entry field group.

  We see that the warehouse is situated in the GMT -05 time zone. Since the order entry deadline is set up for warehouse other than the order entry deadline for the Sales Manager who is located in Kyiv, the time will be calculated as follows 14:00 + (2:00 – (-5:00)) = 21:00. We can find this information in the Available ship and receipt date form (Order entry deadline field group > My time field). The available receipt (ship) date will be one day shifted only if the Sales Manager will find available dates after 21:00. You can check this if you temporarily set the time on your computer to 21:00. I set it and click the Simulate delivery dates button in the sales order line. The following result appears:

  

  Available ship and receipt dates form. Order entry deadline.

  It is the expected result. Unfortunately, we can’t click the warning icon and get detailed description about the reason. Let us hope this will be possible the future version…
  Don’t forget to set the right time on your computer

• Transport time. Set up the transport time between a warehouse in your company and a customer address in the Transport form. This form is opened by clicking Inventory management > Setup > Distribution > Transport.
  

  Transport form.

  Let’s assume that the transport time between warehouse 22 and the Customer 1000 (Natural Juice) is 3 days by truck. And now, check how the result in the Available ship and receipt date form is changed.

  1. Open the Transport form by clicking Inventory management > Setup > Distribution > Transport.
  2. Fill in 30005 in the ZIP/postal Code field under Filter field group > Receiving point field group (30005 is the Customer’s ZIP/Postal code).
  3. Create a new record by pressing CTRL + N.
  4. Select 22 in the Shipping warehouse field.
  5. Save the line.
  6. Create a new line in the lower part of the form.
  7. Select the Truck mode of delivery (fill in 10 in the Mode of delivery field).
  8. Fill in 3 in the Transport days field.
  9. Save the line.

  Check the result in the Available ship and receipt date form. Go to the line area, click the Delivery tab, and then click the Simulate delivery dates button. The following result shows:

  

  Available ship and receipt dates form. Transport days.

  We can see that the available receipt date is changed, because the transport days value is set to 3. Is it interesting to know what happens if the Sales Manager requests available dates after 21:00 (the order entry deadline)? The available date is shifted to one day (to May, 25). You can check this yourself. One note: If a sales order line contains only a site (without a warehouse), the transport time in the Transport form is searched for a fallback warehouse. This is set up under Inventory management > Setup > Distribution > Fallback warehouse for site.

• Transport calendar is used to set up open days for the transport. Transport calendar can be set up per mode of delivery or per mode of delivery in a specific warehouse. Transport calendar is set up under Accounts receivable > Setup > Distribution > Modes of delivery > select Truck mode > Transport calendar button > find warehouse 22. We can find the Transport1 calendar under Basic > Calendar. If we click the Working times button, we can see that 5 working days are open in the transport calendar (see the 24Hours base calendar).
• Customer receipt calendar is used to specify open days for the Customer. If no receipt calendar is specified for the customer, all days are open days for the Customer.You can specify the customer receipt calendar under Accounts receivable > Customer details > Setup tab > Delivery field group > Receipt calendar field.For Customer 1000, the Receipt calendar field contains the Standard value. If we go to Basic > Calendar, we can find that the open days for the customer are from Monday to Friday (see the BaseCtrl calendar since this is a base calendar).

Training lesson summary

We have studied how available dates are calculated.

All these parameters are taken into account by the system. The only thing that the Sales Manager must do is to enter a sales order line, click the Simulate delivery dates button, select the first available date, click the Transfer to requested button, and then tell the available date to the Customer.

The Sales Manager performs all these steps and as a result, the Requested receipt date field contains 5/24/2010 the Requested ship date 5/19/2010.

Sales order form. Delivery tab.

The Sales Manager enters another sales line for 200 items Can Standard Black. And, also provides the Customer with the information about the receipt date. Create a sales line yourself.

In the next training lesson, we will study the shipment process.

Technorati Tags: ATP, ATP time fence, Available to promise, Coverage calendar, Create Sales order, Customer receipt calendar, Order entry deadline, Sales lead time, Transport calendar, Transport time

Hello! Today the Sales Manager confirms the sales order and starts the shipment process.

As you may remember, in the previous training lesson, we have created the sales order with two lines.

Confirmation

The Sales Manager calls the Customer and agrees the order details. Since all order details are correct, the Sales Manager prints the Confirmation document.

The Sales Manager goes to Accounts receivable > Common Forms > Sales order details. The Sales order form opens. The Sales Manager clicks Posting > Confirmation menu button. The Posting confirmation form opens. Then, the Sales Manager selects the Print confirmation check box and clicks the OK button. The Confirmation document is printed.

Confirmation document

The Sales Manager sends this document to the Customer. This document is a guarantee that the Sales Manager and the Customer have cut a deal.

Before starting the shipment process, let’s check what inventory transaction is generated when a sales order line is created.

In the line area of the Sales order form, click the Inventory > Transactions menu button. The Transactions form opens.

Inventory transactions. Issue status is OnOrder

The Transactions form contains a lot of information, but we will keep track of the quantity, dimension, and status of transactions.

The On order issue status means that the item is ordered for pick.

Let’s view all dimensions in the Transactions form. Click Inventory > Dimensions display > select all check boxes (the Save setup check box also) > click OK.

The following information appears:

Inventory transactions

The Location dimension is set to Out_01. That is because when we create a sales line, default values are taken from the warehouse setup: Inventory management > Setup > Inventory breakdown > Warehouses > set cursor to warehouse 22 > click Warehouse management tab > Default issue location field.

Default issue location can be set up for each item under Inventory management > Common Forms > Item details > find the Bottle item > Setup button > Warehouse items button > Locations tab > Default issue location field.

Create Output Order

First of all the Sales Manager creates warehouse orders. Warehouse orders are created from sales lines. In Axapta, a warehouse order has the following types: output order, transport order, and a pick order. For the shipment process, the output order is required. Remember that an output order is a kind of a warehouse order.

To create an output order, the Sales Manager performs the following steps:

1. In the Sales order form, the Sales Manager selects the first line and clicks Inventory > Output orders button.
   

   Sales order form, Output orders button

2. The Create inventory order form appears. The Sales Manager clicks OK.
   

   Create inventory order form

3. The Output order form appears. This form contains an output order that has been generated.
   

   Output order form

The Transactions button shows the output order lines. For example, order lines can contain the following information – 400 bottles loaded, 300 bottles picked,… etc. If we click this button, the empty Inventory order transaction form opens.

If we look at the inventory transaction (clicking Inventory > Transactions), we will find that nothing is changed – Issue status is On order.

Create the output order for the Can item yourselves.

Now, the Sales Manager finishes his or her work.

Create shipment

The Shipment Manager must register an empty truck in the system. But, unfortunately Axapta doesn’t have the ability to manage trucks. Instead of this the shipment is used.

The Shipment Manager creates one shipment:

1. Go to Inventory management > Shipments. The Shipment form opens.
2. Create a new line by pressing CTRL + N.
3. The Create shipment wizard opens. Click the Next button.
4. On the following Identification page, select the shipment template. In our demo data, we have only one shipment template “100_all”. Select it. A shipment template can be set up under Inventory management > Setup > Distribution > Shipment templates. A shipment template contains the following major information: outbound dock (only an output order moved to this dock is taken into account), reservation principle (how an item will be reserved before a pick-up process).
5. Click Next.
6. On the Configuration page, all the information is filled in by default. Click Next.
7. The Inventory order page contains the information about orders that can be assigned to the shipment. The Shipment Manager can delete an order form the grid.
   

   Create shipment wizard

   Click Next.

8. On the Ready page, the Shipment Manager clicks the Finish button.

The new shipment is created and the two output orders generated from our sales order are assigned to this shipment

Shipment form. Registered status.

If we click the Show lines button, the output order lines will be shown. Be aware that it is not the output order but the output order lines. These lines were generated during the shipment creation process.

We can return to the Sales order form and click Inventory > Output orders > Transactions. The Inventory order transaction form now contains the following information:

Inventory order transaction form. Handling status is Registered

We will look at the Handling status field. The Registered status means that the output order line is created and assigned to the shipment.

The inventory transaction status remains OnOrdered.

Prepare for Picking. Reservation

The Warehouse Worker will transfer the items to the outbound location on the pallet, so the requested output order quantity is divided to parts that will fit the pallet capacity.

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The Shipment form has following view:

Shipment form. Sent status.

We can see that the shipment status is changed from Loaded to Sent. It means that the shipment is finished and the truck is released.

The shipment lines handling status is now Completed.

The Inventory transactions issue status remains Picked.

The Shipment Manager releases the truck.

Summary

In this training, we have gone through the shipment process. The following steps have been discussed:

1. The Sales Manager confirms the sales order.
2. The Sales Manager creates output orders.
3. The Shipment Manager creates a shipment.
4. The Shipment Manager runs the Reservation program. As a result, the picking route and the refill transport are created.
5. The Shipment Manager activates the shipment.
6. The First Warehouse Worker picks the Can items from the picking locations.
7. The Second Warehouse Worker refills the picking location with the Bottle items.
8. The First Warehouse Worker picks the Bottle items from picking locations.
9. The First Warehouse Worker delivers the picked items to the destination location.
10. The Warehouse Workers loads the truck.
11. The Shipment Manager prints the Shipment list and releases the truck.

In the next training lesson, we will discuss what a Packing slip is.

Technorati Tags: Confirmation document, delivers the picked items, direct picking, load, loading, output order, output transport, Picking, picking route, refill, refill transport, release shipment, shipment, shipment reservation combinations, warehouse order

Hi! In this training lesson, we are going through the packing slip posting process.

The following are the results of the packing slip posting process:

1. Packing slip document is printed.
2. Item is taken from the warehouse.
3. If the company uses general ledger accounts to track customer’s un-invoiced (packing slip) balance, ledger transactions are created. One general ledger transaction relates to the Customer’s transaction and another one relates to inventory transactions.

Flow description

Before leaving the warehouse, the truck driver goes to the Sales Manager and takes the Packing slip document. This document is sent to the Customer with the items. When the Customer receives items, he or she signs the packing slip document. The Packing slip is a guarantee that the Customer receives items.

To post the packing slip, the Sales Manager performs the following operations:

1. Open the Sales order form and find the created sales order (Accounts receivable > Common Forms > Sales order details).
2. Click the Posting > Packing slip menu button. The Posting packing slip form opens.

Note that under the Posting menu button, the Posting picking list registration menu button is available. Microsoft Dynamics AX has another flow for picking items from the warehouse with the help of the Posting picking list and Posting picking list registration forms. But, we have studied a more complex flow in the shipment training lesson.

The Posting packing slip form has the following view:

Posting packing slip form

In the field guide, you can find detailed field description almost about all fields from the Posting packing slip form. Note that, in the field guide, the Posting packing slip form from the Accounts payable module is described.

All information in the form is filled in by default. The Quantity field contains the Picked value. You can check that the Lines tab contains two lines and the line quantity is correct. To post and print the packing slip, the Sales Manager selects the Print packing slip check box and clicks the OK button. (Don’t do this right now). We will complicate the task. Close the Packing slip form.

Shipping carrier interface

Let’s assume that our Company uses a carrier to ship items to the Customer. The Carrier is an independent company. The Carrier has the price list that contains prices for shipping different types of goods and weights. Each time items are shipped to the Customer, we must pay specific amount of money for the carrier service (according to the price list). Our company charges the Customer with the amount of money for the Carrier’s service. In other words, we include it into the Invoice. And when we receive payment for the invoice amount, we send the money to the Carrier.

Our company selects the UPS shipping company to perform carrier functions. When the Sales Manager posts the Packing slip, the information about the items to be shipped is transferred to the UPS. UPS calculates the price and sends it back to our Company. The interaction between the Company and the UPS is performed via the Web service. The charges are stored in Microsoft Dynamics AX. When the Sales Manager posts the Invoice, the carrier charges are included into the total invoice amount as miscellaneous charges.

Set Up Carrier

To set up a Carrier, we must fill in the information in the Carrier interface, Carrier company, and Carrier forms. Let’s understand what these forms are used for.

Carrier Interface form. The Carrier interface form allows you to activate/deactivate a carrier.

1. Go to Inventory management > Setup > Shipping carrier > Carrier interface. The Carrier interface form opens.
   

   Carrier interface form

   In Microsoft Dynamics AX 2009, it is impossible to add a new carrier interface, but it seems that we already have the UPS interface in the grid.

2. Select the Test mode check box for the UPS WorldShip interface since we don’t have an account on the https://www.ups.com site. We will enter charges for the carrier service manually when posting the packing slip.

Carrier Company form. The Carrier Company form is used to define additional setup options for the carrier interface in your company.

1. Go to Inventory management > Setup > Shipping carrier > Carrier company. The Carrier company form opens.
   

   Carrier company form

2. Our demo data already contains additional setup for the UPS Company. Since we use the Test mode, only the miscellaneous charges accounts from the General tab will be taken into account.
   

   Carrier company form, Miscellaneous charges

   We can see that all charges are specified for the UPS carrier.

Carrier form. The Carrier form is used to associate the Carrier company with the Carrier interface.

1. Go to Inventory management > Setup > Shipping carrier > Carrier IDs. The Carrier form opens.
   

   Carrier form

2. We will use the U11 carrier ID.

We have set up the Carrier. What will be next? How is the Carrier associated with the Sales order? The Carrier is associated with the Sales order via the mode of delivery. Remember that in this training lesson we have set up the 10 (Truck) mode of delivery.

Let’s check the 10 (Truck) mode of delivery settings:

1. Go to Accounts receivable > Setup > Distribution > Modes of delivery. The Modes of delivery form opens.
2. Find mode of delivery 10.
3. Click the Setup tab.
   

   Modes of delivery form, Setup tab. "10" mode of delivery.

4. We can see that the Carrier ID field is empty and not editable. The Carrier ID field is editable when the Service type is either Ground or Air.

Our demo data already contains a delivery mode that is assigned to the U11 carrier. It is the 11 (UPS Ground) mode of delivery.

Modes of delivery form, Setup tab. "11" mode of delivery.

Set New Delivery Mode

Set up the 11 delivery mode on the sales order lines:

1. Go to Accounts receivable > Common Forms > Sales order details. The Sales order form opens.
2. Find our sales order.
3. In the line area, click the Delivery tab and locate the Misc. delivery info field group.
4. Select 11 in the Mode of delivery field.
5. Note that the Carrier information is filled in automatically.
   

   Sales order form. Carrier info

6. Save the order information by pressing CTRL + S.
7. If you created the Sales order one week ago, the “Delivery date control is disregarded because the receipt date 5/17/2010 is before today” message appears. Just close this infolog.

Perform the same steps for the Can item.

Set New Term of Delivery

We have already set up the new mode of delivery. According to this mode of delivery, UPS is our carrier and the following charges will be calculated:

• Core charges
• Ancillary charges
• Handling charges
• Fuel surcharges

We haven’t set up our Company to pay these charges. And, UPS can take charges either from our Company or from the Customer.

If our Company pays the charges, the Company can negotiate with the UPS shipping company what charges will be paid. For example, for some reason the company doesn’t pay the handling charges.

All these requirements are set up in the Terms of delivery form.

Remember that in the previous training lesson, we set up the FOB_DS delivery term for the Sales order.

Let’s check the FOB_DS parameters (what charges our company will pay). Go to Accounts receivable > Setup > Distribution > Terms of delivery > find the FOB_DS delivery term > Setup tab > Freight charge terms field.

Terms of delivery, FOB_DS

We can see that the company doesn’t pay any charges. It means that the company doesn’t care about the carrier charges at all. It becomes possible when the Customer pays for the carrier service himself or herself. Or when the Company doesn’t use the carrier and the Customer uses her or his own transport to deliver the items or the Company delivers the items but includes the delivery cost in the item price.

Since we assume that the Company pays all carrier charges, this term of delivery is not relevant for our situation. Our demo data already contains relevant terms of delivery – CIF.

The CIF term of delivery has the following setup:

Terms of delivery, CIF

According to this setup, our Company will pay the core, ancillary, and handling charges to the carrier. The fuel surcharge is set up directly in the Sales order form (Sales order form > Delivery tab > Charge fuel surcharge check box).

The Company can pay its own money as charges or include the charges into the invoice total amount. The Company can negotiate it with each Customer separately. We assume that the Company will include the charges into the invoice total amount.

The charge accounts answer the questions about the money source – the Customer or the Company.

The Carrier company form contains the setup of the carrier charge accounts. (Inventory management > Setup > Shipping carrier > Carrier company > General tab > Miscellaneous charges field group).

Let’s open the 01 charge account:

1. Go to Accounts receivable > Setup > Misc. charges > Misc. charges code. The Misc. charges code form opens.
2. Select the 01 charge and go to the Posting tab.
   

   Misc. charges code, Posting tab

The Debit type field is the “source” of money, the Credit type field is the “destination”. In the previous form, we can see that the source is the Customer and the destination is the general ledger account. The general ledger account is used to track the income from the customer that must be paid to the Carrier (i.e. to track the charge amount paid by the Customer).

Other charge accounts from the UPS shipping company also have the Debit type field set to Customer/Vendor.

So our Company collects charges from the Customer and pays them to the Carrier. That is exactly what is required.

Let’s set up the new CIF term of delivery for the Sales order:

1. Open the Sales order form. Find our sales order.
2. Go to the Delivery tab.
3. Under the Misc. delivery info field group, find the Delivery terms field.
4. Change the value from FOB_DS to CIF.
5. Save the sales order.

Post Packing Slip

After setting up the Shipping carrier interface, we can post the packing slip.

We don’t set up weigh and volume for the Bottle/Can item. So, our package has zero volume and weight. The item setup is located under Inventory management > Common Forms > Item details > find the Bottle/Can item > Setup tab > Item data and Physical dimensions field groups.

But, since we work in the test mode, we can set any charges even for the zero weight package:

1. Open the Sales order form and find our sales order.
2. Click Posting > Packing slip menu button in the Sales order form. The Posting packing slip form opens.
3. Select Picked in the Quantity field under the Parameter field group.
4. Select the Print packing slip check box.
5. Make sure that two lines are available on the Lines tab and the Quantity field contains the correct value (1000 for the Bottle item and 200 for the Can item).
6. Post the packing slip. Click the OK button.
7. Since the Test mode is used, the Test mode form opens.
   

   Test mode form

8. Enter 400 in the Publish rate field. These are the Core charges.
9. Enter 30 in the Handling charges field.
10. Enter 270 in the Fuel charges field.
11. Enter 105 in the Other charges field. These are the ancillary charges.
12. Click the OK button.

The information entered in the Test mode form will be used during invoicing. The Test mode form simulates the charges received from the Carrier web service.

Analyze Result

Now, we will check the result of the packing slip posting process:

• Packing slip document is printed. This document will be sent to the Customer with the items.
  

  Packing slip document

• The item is deducted from inventory. The item issue status is changed from Picked to Deducted.
  1. In the line area of the Sales order form, click Inventory > Transactions menu button. The Transactions form opens.
  2. Make sure that the Issue field contains the Deducted value.
• General ledger transactions are generated because the Bottle/Can item belongs to the FIFO inventory model group. This inventory model group requires posting packing slip transactions to the general ledger accounts (Inventory management > Setup > Inventory > Inventory model groups > select the FIFO record > Setup tab > Post physical inventory check box). General ledger accounts are taken from the item group (Inventory management > Setup > Item groups > select Packaging item group (because the Bottle and Can items belong to it) > Sales order tab > Packing slip and Packing slip offset fields).
  

  Item group form, Sales order tab

  Let’s check:

  1. In the header area of the Sales order form, click Inquiries > Packing slip. The Packing slip journal form opens.
  2. Click the Voucher button. The Voucher transactions form opens. This form contains transactions generated during the packing slip update process.
     

     Voucher transactions form, Packing slip transactions.

• Carrier charges are recorded in the system:
  1. In the header of the Sales order form, click Inquiries > Packing slip. The Packing slip journal form opens.
  2. Go to the Order tracking tab and find the necessary information.
     

     Packing slip journal form, Order tracking tab

Summary

In this training lesson we have performed the following:

• Have gone through the steps required to post the packing slip
• Have set up the shipping carrier interface
• Have posted the packing slip
• Have analyzed the results

I recommend that you read the white paper about the Shipping carrier interface.

In the next training lesson, we will post the Invoice and analyze the results. We will see that carrier charges are added to the invoice as miscellaneous charges.

Technorati Tags: Carrier company form, Carrier form, Carrier Interface form, charges, Freight charge terms, Misc. charges code, Modes of delivery, Shipping carrier interface, Term of delivery

Hi, in this training lesson, we will finalize the work with the sales order. The last step in the sales order processing is posting and printing a Sales order invoice.

We go through the main steps of the process, understand sales order financial posting, and analyze the results (include the shipping carrier charges).

Overview

The Sales Manager posts an Invoice to record in the system that the items are sold. During this process, an Invoice document is printed. The Invoice document is a guarantee that the items are sold to the Customer and the Customer must pay for them during a certain period. This document is sent via a fax or an e-mail to the Customer for sign.

The results of the invoice posting process are as follows:

1. The Invoice document is printed.
2. General ledger transactions are generated: inventory account is decreased, cost of goods sold is increased, Customer account is increased, Sales account is decreased.
3. Inventory transactions issue status is changed from Deducted to Sold

Post an Invoice Workflow

The Sales Manager performs the following actions:

1. Open the Sales order form and find an appropriate sales order.
2. Click the Posting > Invoice menu button. The Posting invoice form opens.
   

   Posting invoice form

3. The Sales Manager verifies the line quantities and prices.
4. Select the Print invoice check box.
5. Click the OK button (don’t do this right now).

Let’s complicate the task. The Sales Manager wants to set up sales taxes for sales order lines. Let’s assume that the company is in California. So, the Sales Manager must set up 8.5% sales tax for the sales order.

Sales Taxes

Sales taxes of different kinds are applied in every country. Sales taxes have a lot of types (see here ). Each country (even a district) has a lot of different taxes; see for example sales taxes in the United States.

To set up a Sales tax for the Sales order, the Sales Manager takes the following steps:

1. Open the Sales order form.
2. Find an appropriate sales order.
3. In the lines area, go to the Setup tab.
4. Under the Sales tax field group, fill in the Item sales tax group and Sales tax group fields.

Item sales tax group and sales tax group contain sales tax codes. Sales tax codes included into both groups are applied to the sales order line.

The Sales tax code contains the rules on how the tax will be included into an invoice.

Sales tax codes are set up under General ledger > Setup > Sales tax > Sales tax codes.

Sales tax codes form

We don’t need to create a new sales tax code because our demo data already contains an appropriate one. It is the AV_CAST sales tax code. This code contains the following setup: 7.25 (Percentage/Amount field) percent will be calculated from the net invoice amount (Origin field) and must be paid as a sales tax to California Authorities in the end of the quarter (Settlement period field). We see that the sales tax code from our demo data contains 7.25%, but currently the sales tax for California is 8.25%. That is because California governor Arnold Schwarzenegger increased the sales tax by 1% in year 2009. You can read about California budget crisis in Wikipedia.

To set up 8.25%, click the Values button in the Sales tax codes form. In the Values form, enter 8.25 in the Value field. Close the form.

As you understand, each sales tax code belongs to the Settlement period which is set up under General ledger > Setup > Sales tax > Sales tax settlement periods.

Sales tax settlement periods form

The Settlement period form contains the information about the authority and the period.

Authorities are created and set up under General ledger > Setup > Sales tax > Sales tax authorities.

Authority form

An authority contains different information but the major one is the Vendor account. The vendor account will be used to track amounts of money that must be paid and that were paid by the Company to the California authority.

In other words, the Authority is vendor. Our company buys nothing from this vendor and pays money =).

The AV_CAST sales tax code will be paid to the CAA authority which is 7001 Vendor.

When the invoice is posted, the vendor transaction is created.

Also, the general ledger transaction is created. Each sales tax code belongs to the ledger posting group (General ledger > Setup > Sales tax > Sales tax codes form > Overview tab > Ledger posting group field). This group contains the information about general ledger accounts that will be used for different types of sales tax during invoice posting.

Let’s find out what general ledger account will be used for tracking the authority (vendor) transactions:

1. Go to General ledger > Setup > Sales tax > Ledger posting groups. The Account group form opens.
2. Find the CAST ledger posting group (the AV_CAST sales tax code belongs to it).
   

   Account group form

3. The Sales tax payable field contains the general ledger account that will be used during invoice posting.

We can see that it is the 220110 general ledger account. Remember this account because when we post an invoice, we make sure that 8.25% tax amount on net invoice amount is recorded onto this account.

We already know that in the sales order lines, only the sales tax group and the item sales tax group are set up. So, we should find or create a sales tax group that contains the AV_CAST sales tax code and find or create an item sales tax group that contains the AV_CAST sales tax code.

Sales tax groups are set up under General ledger > Setup > Sales tax > Sales tax groups. The Sales tax groups form already contains the CA (California) sales tax group. Click the Setup tab to make sure that the AV_CAST sales tax code belongs to this group.

Sales tax groups form

We can see that the CA sales tax group contains three sales tax codes.

We have discussed earlier that sales tax codes included into both groups (sales tax and item sales tax) are applied to the sales order line. So, the Item sales tax group must exclude the HR_CAST and SP_CAST sales tax codes and include the AV_CAST sales tax code.

The item sales tax group is set up under General ledger > Setup > Sales tax > Item sales tax groups.

We don’t need to create new item sales tax groups, because our demo data already contains a relevant item sales tax group. This is the AU/VI item sales tax group. Let’s check that the AV_CAST sales tax code belongs to this group and HR_CAST and SP_CAST do not belong. In the Item sales tax groups form, go to the Setup tab.

Item sales tax groups form

We can see that this group contains the AV_CAST sales tax code and other sales tax codes, but they are not included into the CA sales tax group.

Good. Now, let’s set up the CA sales tax group and the AU/VI item sales tax group in the sales order line:

1. Open the Sale order form. Find an appropriate sales order.
2. In the sales order line area, go to the Setup tab.
3. Fill in AU/VI in the Item sales tax group field.
4. Fill in CA in the Sales tax group field.
5. Save the line. The “Delivery date control is disregarded because the receipt date 6/10/2010 is before today” message will be shown. Ignore it.

Perform the same steps for the second line.

We can now check the sales tax amount:

In the header of the Sales order form, click the Setup > Sales tax menu button.

The Temporary sales tax transactions form shows.

Temporary sales tax transactions form

We cans see that the total sales tax amount is 940.5 (9000*8.25 + 2400*8.25 = 940.5).

In our case, the Sales Manager sets up the item sales tax group and sales tax group manually. In real life, they are filled in by default.

Item sales tax group is set up per item under the following path Inventory management > Common Forms > Item Details > References tab > Sales order field group > Item sales tax group field.

Sales tax group is set up per customer under Accounts receivable > Common Forms > Customer Details > Setup tab > Sales tax field group > Sales tax group field.

Commissions

Let’s assume that the Sales Manager must receive a 10% commission for each sale.

The Sales Manager has an employee account. An employee account is set up per Microsoft Dynamics AX User under Administration > Common Forms > Users > User relations button > General tab > Internal user field group > Employee field.

So, when you log on to Microsoft Dynamics AX, the system finds your employee account.

Link your User to employee account 7210 by following the steps:

1. Go to Administration > Common Forms > Users.
2. Find you account in the Users form (You can get the information about you account under Administration > Common Forms > Online users).
3. Click the User relations button. The User relations form opens.
4. Go to the General tab.
5. Fill in 7210 in the Employee field.
   

   User relations form

6. Close the form.

Let’s understand how commission is calculated. I have retyped a paragraph from the Microsoft Official Training Materials for Microsoft Dynamics: “Microsoft Dynamics® AX2009 calculates sales commissions at the sales line level upon invoicing a sales order. When calculating the commission of a sales line, Microsoft Dynamics AX 2009 searches for the related sales representative, item, and customer combination set up in the Commission calculation form. In this form, relationships are set up between the combinations of items, customers, and sales representatives to define the commission rate an employee is paid from a sale“. The sales representative is the Employee account that is associated with the User ID.

To open the Commission calculation form, go to Accounts receivable > Setup > Commission > Commission calculation.

Commission calculation form

Let’s analyze the form and find what commission will be calculated for our sales order.

We can see that the commission is set up only per a commission item group, because the item code = Group for all lines.

Find the commission group that the Bottle item belongs to:

1. Go to Inventory management > Common Forms > Item details. The Item form opens.
2. Find the Bottle item.
3. Go to the General tab > Groups field group > Commission group field.

The Commission group field for the Bottle (and Can) item is empty. So, the commission calculation for these items is not set up in the Commission calculation form, because this form contains the setup only for the item commission group.

Create a new commission calculation:

1. Create a new line in the Commission calculation form.
2. Select Table in the Item code field.
3. Fill in 1 (Bottle) in the Item relation code field.
4. Setup Customer:
   • If we want the Sales Manager to receive commission when invoicing any customer, select All in the Customer code field.
   • It is possible to set up specific customer commission group. In this case, select Group in the Customer code field. The Customer commission group is created under Accounts receivable > Setup > Commission > Customer groups for commission. A Customer is assigned to a Customer commission group under Accounts receivable > Common Forms > Customer details > Sales order tab > Sales order field group > Commission customer group field.
   • It is possible to set up specific Customer. In this case, select Table in the Customer code field.

   We assume that the Sales Manager must receive commission when he or she invoices only the 1000 (Natural Juice) Customer.

5. Select Table in the Customer code field.
6. Fill in 1000 (Natural Juice) in the Customer relation field.
7. Perform settings for the Sales Manager:
   • If we want all Sales Managers to receive commission when invoicing the Natural Juice Customer buying the Bottle item, we must select All in the Sales rep. code field.
   • If only a certain sales team must receive commission, we must select Group in the Sales rep. code field and fill in the necessary group in the Sales rep. relation field. The Sales team belongs to the sales commission group. The sales commission group is set up under Accounts receivable > Setup > Commission > Sales groups. (The Commission sales group form opens.) We can assign a new Sales Manager to the sales team in the Commission sales group form > Sales rep. button > create new record. Or under Basic > Common Forms > Employee details > Commission menu button > Sales groups button> create new record.

     If the Sales Manager belongs to the sales team, the commission is received by each member of the team as it is divided between all members according to the percent parameter. The percent is set up in the Sales rep. form (click the Sales rep. button in the form).

   

   Sales rep. form

   Only two choices are available (All sales managers or sales team). We assume that only the sales team that our Sales manager belongs to must receive the commission. So let’s find the Sales commission group that includes employee 7210:

   1. Go to Basic > Common Forms > Employee details. The Employee form opens.
   2. Find the employee account that is associated with our User ID (It is employee account 7210).
   3. Click the Commission > Sales groups menu button. The Commission shares form opens.
   

   Commission shares form

   We can see that the Sales Manager belongs to sales teams 20 and 30. The Sales Manager receives 45% of all commission earned by sales team 20 and 20% of that earned by sales team 30.

   Let’s assume that the Sales Managers included into sales commission group 20 can receive commission.

8. Select Group in the Sales rep. code field.
9. Fill in 20 in the Sales rep. relation field.
10. Fill in 10 in the Origin field. Note: all sales team will receive 10% commission; our Sales manager will receive 45% of this commission (4.5%). So, it is less that we assume.

Our new record looks as follows:

Commission calculation form

Create the same record for the Can item.

During posting of an Invoice, the commission amount will be recorded to special general ledger accounts.

The Commission posting form is used to link General ledger accounts to a commission transaction. When a sales order is invoice-updated, the commission amount on the posted sales line is:

• Debited to the Commission account.
• Credited to the Commission offset account.

To access the Commission posting form, go to Accounts receivable > Setup > Commission > Commission posting.

Commission posting form

Remember general ledger account 602140. This account belongs to the Expenses group. Also, remember general ledger account 211500. This account is used to store amounts of money that must be paid to Sales Managers. This account belongs to the Vendor group. So, from the Company’s point of view, the Sales Manager is the vendor who delivers order invoices.

We can’t see the commission amount on the sales order until we post an invoice.

If we want the commission to be taken into account during invoice posting, we must set up a commission sales group on the sales order line (in the line area of the Sales order form, go to the Setup tab and fill in the Sales group field group with 20. Make the same setup for the second line. (When we save the line, the “Delivery date control is disregarded because the receipt date 6/10/2010 is before today” message appears; just close it).

Posting

The Sales Manager sets up sales taxes and commission, reviews the charges for the carrier. Now, it is time to post the Invoice.

The Sales Manager goes to the Sales order form, finds an appropriate sales order, and clicks the Posting > Invoice menu button. The Posting invoice form opens. The Sales Manager selects Packing slip in the Quantity field of the Parameter field group. Go to the Lines tab and make sure that the quantities and other parameters are correct. Select the Print invoice check box. And finally, he or she clicks the OK button.

The result of the posting process is as follows:

1. The Invoice document is printed.
   

   Invoice document

   In the Invoice document, we can find the information about the invoice total amount (12,875), sales tax amount (940.50), and carrier charges included in the misc. charges (535). The Invoice total amount is calculated as item price + misc charges + sales tax, i.e. 12,875 = 11,400 + 535 + 940.50.

   Check the sales tax. In this training lesson, we have set up 8.25 % sales tax. The sales price is 11,400, so the sales tax is 11,400 * 0.0825 = 940.50. Good, it is just like in the invoice.

   Check the carrier charges. Remember that in the previous training, we set up the following charges – core charges = 400, handling charges = 30, fuel surcharge = 270, and ancillary charges = 105. The total charge amount is 400 + 30 + 270 + 105 = 805. In the Invoice document, the misc. charges value is 535. Why is there such difference (805 – 535 = 270)? That is because we have forgotten to select the Charge fuel surcharge check box in the Sales order form (Sales order form > Header area > Delivery tab > Carrier information field group > Charge fuel surcharge check box). So, the fuel surcharge is not included in the Invoice total amount.

   Commission amount is not printed in the Invoice document.

2. Issue status on inventory transactions is changed from Deduct to Sold. To check this, in the lines area of the Sales order form, click the Inventory > Transactions menu button. The Transactions
   form opens.
   

   Transactions form. Sold status.

3. General ledger transactions are generated. Let’s check the general ledger transactions that are created during posting of an invoice document. All information about the invoice can be viewed under Sales order form > Header area > Inquiry button > Invoice menu button. The Invoice journal form opens.
   

   Invoice journal form

   Before we check the general ledger transactions, let’s recall the sales tax, carrier charges, and commission amounts.

   To find the posted sales tax amount, click the Posted sales tax button in the Invoice journal form. The Sales tax transactions form opens.

   

   Sales tax transactions form

   The total posted sales tax amount is 940.50.

   To find the carrier charges included into the invoice, click the Misc. charges button in the Invoice journal form. The Misc. charges transactions form opens.

   

   Misc. charges transactions form

   The total carrier charge is 400 + 105 + 30 = 535.

   To find the commission amount, click the Commission > Commission transactions menu button. The Commission transactions form opens.

   

   Commission transactions form

   Since the commission is received by the sales team, we can see that our Sales Manager (employee account 7210) will receive the 405$ commission for selling Bottle items and the 108$ commission for selling the Can items. The total commission amount is (10% * 11,400) / 100% = 1,140. (If we sum all employee commissions, we receive the same amount – 1,140).

   So, again (all amounts are in one place):

   • Total invoice amount is 12,875.50.
   • Sales tax is 940.50.
   • Carrier charges amount is 535 (Core charges = 400, Ancillary charges = 105, Handling charges = 30).
   • Commission is 1,140.
   • Items sales price is 11,400.

   Let’s check the general ledger transactions. In the Invoice Journal form, click the Voucher button. The Voucher transactions form opens. This form contains general ledger transactions generated during the invoice positing process.

   

   Voucher transactions form

   Analyze the voucher transactions (i.e. general ledger transactions):

   • Total invoice amount is 12,875.50. This amount is recorded to account 130100. So, this account is used to track Customers’ balances (the amount of money that must be paid to our Company from customers).
     This general ledger account is taken from the default posting profile that is set up in the Account receivable parameters form located under Accounts receivable > Setup > Parameters > Ledger and sales tax tab > Posting field group > Posting profile field. Our demo data contains GEN in the Posting profile field. To find the posting profile setup, go to Accounts receivable > Setup > Posting profiles > find GEN posting profile > Setup tab.
     

     Customer posting profile form

     The Natural Juice customer belongs to customer group 20 (Major Customers). So, only the last record is right one for our Customer. The summary account for this record is 130100.

   • Sales tax is 940.50. This amount is recorded to general ledger account 220110. So this account is used to track the Authority balance (the amount of money that must be paid to the Authority).

     The 220110 account is taken from the ledger posting group that is set up on the sales tax codes. We have already studied how a general ledger account is set up for the sales tax in the Sales taxes chapter of this training lesson.

   • Carrier charge is 535. In the previous training lesson, we analyzed that the carrier charges are taken from the Customer and stored in special general ledger accounts. This is set up in the Misc. charges code form located under Accounts receivable > Setup > Misc. charges > Misc. charges code > Posting tab > Credit account field.

     In our demo data, for the Core or Freight charges,  general ledger account 403500 is used, for the Handling charges, it is the 403150 general ledger account, for the Ancillary charges, it is also the 403500 general ledger account.

     So, in the Voucher transactions form, we can see that 400 + 105 = 505$ is recorded to account 403500, and 30 is recorded to account 403150.

   • Commission is 1,140$. This amount is recorded to accounts 211500 and 602140. Account 211500 is used to track commission (the amount of money that must be paid to sales persons). Since the commission is included into the invoice amount, we must record that the commission is an expense (net profit must exclude the commission). This amount is recorded to account 602140. These general ledger accounts are taken from the Commission posting form located under Accounts receivable > Setup > Commission > Commission posting.

     We have already studied how general ledger accounts are set up for the commission in the Commissions chapter of this training lesson.

   • Item sales price (or revenue) is 11,400. This amount is recorded to account 401190. So, this account is used to track the revenue (the amount of money that must be paid for sales items).

     This general ledger account is taken from the item group. The Bottle and Can items belong to the Packaging item group.

     Go to Inventory management > Setup > Item groups. The Item group form opens.

     Go to the Sales order tab.

     

     Item group form

     The Revenue field contains the general ledger account that will be used to track the revenue amount. We can see that this field contains general ledger account 401190.

   • Inventory transaction. Inventory transaction is also reflected in the general ledger accounts. When the items are sold, the cost amount must be excluded from inventory value and included as cost of goods sold. Remember that in this training lesson, we set up the Bottle item cost to be 5 and the Can item cost to be 7. So, the total cost amount is 1000*5 + 200*7 = 6,400$. This amount is recorded to accounts 510190, 142300, 141050, and 130300.

     Account 510190 is used to track the cost of goods sold. Account 141050 is used to track the inventory value (cost of items in the warehouse). These accounts are set up in the Item group form > Sales order tab > Invoice field group > Issue and Consumption fields (see the previous picture).

     When we post the packing slip, general ledger transactions are generated for  accounts 142300 and 130300. Find these transactions in this training lesson (the “Voucher transactions form, Packing slip transactions” image). During posting of an invoice, these general ledger transactions must be reversed.

   • Penny difference. Sometimes it happens that the amount in the general ledger account and the amount in the offset account(s) are not equal because of rounding. If we sum all general ledger amounts, we must receive zero. Because nothing disappears but only changes its form. In our case, if we sum all amounts in the secondary currency (the Amount secondary currency fields), we receive -0.01. So, Microsoft Dynamics AX generates additional general ledger transactions for amount 0.01. This amount is recorded to account 999999. This general ledger account is set up under General ledger > Setup > Posting > System accounts.
     

     System accounts form

Note: If you do not feel confident in finance I recommend that you go through this financial training. When I was learning finance in Microsoft Dynamics AX, it was an essential source of knowledge.

Training lesson summary

In this training lesson we have done the following:

1. Set up sales tax.
2. Set up commission.
3. Post an invoice.
4. Analyze results of invoice posting process (invoice document, inventory transactions, and general ledger transactions).

This is the last lesson in the Trade and Logistics training. I hope this training will help you understand the Microsoft Dynamics AX Trade and Logistics module.

The following issues have been covered during the Trade and logistics training:

1. How to create an Item
2. What an item group, an inventory model group, and an inventory dimension group are
3. Purchase business process
4. How to create a Vendor
5. Warehouses, aisles, racks, shelves, bins, store zones, store areas, and locations
6. Forklifts and pallet types
7. How to create a Purchase order
8. Item arrival and registration process in Microsoft Dynamics AX
9. Print management system
10. Purchase order posting: Packing slip and Invoice
11. Sales business process
12. How to create a Sales order
13. Available to promise
14. Shipment process in Microsoft Dynamics AX
15. Shipping carrier interface
16. Miscellaneous charges, sales tax, and commissions
17. Sales order posting: Packing slip and Invoice

The following issues are not included into the training:

1. Serial and batch numbers
2. Quarantine management
3. Vendor returns
4. Customer returns
5. Over/Under Delivery
6. Customer and Vendor Trade Agreements
7. Request For Quote
8. Purchase Requisitions
9. Sales Quotation
10. Quality Management
11. Transfer Orders
12. Inventory Journals
13. Inventory Reporting and Statistics

I am planning to create a video training to be paid for the Trade and Logistics module that will cover all these areas. You can follow me on Facebook or Twitter and be informed about the status and the progress of this training.

Thank you all for nice words. You really support me!

Technorati Tags: Commission, Commission calculation form, Commission posting, Commission sales group, Commission shares form, Commission transactions, Consumption account, Customer posting profile, Invoice (Sales), Invoice journal form, Issue account, Item sales tax groups, Ledger posting group (Sales tax), Misc. charges transactions, Penny difference, Revenue account, Revenue field, Sales rep. form, Sales tax, Sales tax authorities, Sales tax codes, Sales tax groups, Sales tax payable, Sales tax posting, Sales tax settlement periods, sales tax transactions, Sold, System accounts

Hi! In this training lesson, we will study the Quarantine Management functionality in Microsoft Dynamics AX.

Introduction

The quarantine management is used to manage items that must be quality controlled (quarantine items). For example, the Fans Company purchases fans and sells them. Customers often return a lot of fans because they don’t work. The Fans Company decides to check the purchased fans. As a result, the company creates a special place in the warehouse. All fans which arrive to the warehouse are transported to this place for quality control. The Quality Manager will randomly pick fans from each case and will check how they work. If a selected fan works, whole case is marked as checked. Then, the checked cases will be transported to the destination location.

Microsoft Dynamics AX uses a quarantine order to control quarantine items. Let’s check how this works in the application.

Create and Set Up an Item

We will work with this demo data. Let’s create the Fan item. We have already studied how to create an item in this training lesson, so you need to create an item with the following values:

1. Item number = 101
2. Item name = Fan
3. Item group = Packaging
4. Inventory model group = FRP_QUAR
5. Dimension group = N-WLP

There are two groups attached to an item which affect whether an item can be used in quarantine management:

1. Inventory model group. An inventory model group can be accessed from Inventory Management > Setup > Inventory > Inventory model groups. The Quarantine management check box on the Setup tab must be selected. We have set up the FRP_QUAR inventory model group for the Fan item, this group has the following setup:
   

   Inventory model groups form

2. Dimension group. This group determines what parameters are required to store an item. The minimum setup is Site and Warehouse. The Dimension groups form can be accessed from Inventory Management > Setup > Dimensions > Dimensions groups. We have set up the N-WLP dimension group for the Fan item, this group has the following setup:
   

   Inventory dimensions form

Let’s set up additional parameters for the Fan item. We suppose that:

1. The Fan item will be transported on the 42*42 pallet. In the Item form, go to the Setup tab > Warehouse management field group, and fill in 42″X42″ in the Pallet type field. Save the line (CTRL + S).
2. The default pallet quantity is 12. In the Warehouse management field group, find the Pallet quantity field and fill in 12. Save the line.
3. There will be three levels of items stored on the pallet, each level containing four pieces.. In the Warehouse management field group, find the Quantity per layer field and fill in 4. Save the line.
4. We suppose that the purchase price for the Fan item will be 5$. In the item form, go to the Price/Discount tab > Base purchase price field group and fill in 5 in the Price field. Save the line.
5. The default purchase order quantity will be 100. In the Item form, click the Setup > Default order setting menu button. The Default order settings form opens. On the Purchase order tab > Purchase quantity field group fill in 100 in the Standard order quantity field. Save the line.

Set Up a Warehouse

In introduction, we have mentioned about a special place in a warehouse where the item will be placed in order to verify its quality (a quarantine place). Let’s understand how we can set up quarantine places in Microsoft Dynamics AX.

If we go to the Locations form (Inventory Management > Setup > Inventory breakdown > Locations) and look through the location types we will not find the quarantine type. We can’t set up a separate location as a quarantine one. Microsoft Dynamics AX allows creating only a quarantine warehouse. So, if the company uses one warehouse for storing and controlling the quality of items, the space in the warehouse must be divided into two logical parts – a warehouse and a quarantine warehouse. A quarantine warehouse can have the same types of locations as the general warehouse has (i.e. bulk locations, picking locations, outbound and inbound docks).

Since the company can have several quarantine warehouses, each quarantine warehouse is assigned to a warehouse.

We assume that the Fan company receives fans to the  warehouse 22, and the identification of the quarantine warehouse is 28.

I use the demo data, so  the warehouse 22 already exists, let’s check its setup:

1. Go to Inventory Management > Setup > Inventory breakdown > Warehouses. The Warehouses form opens.
2. Find the  warehouse 22 and go to the General tab. Make sure that the Quarantine warehouse field is filled in with the value 28.

Warehouses form

If an item will be received to a warehouse that doesn’t have the quarantine warehouse set up and the item must be quarantine controlled, the receival process will be stopped and an error message will be shown.

Order Items

We assume that the Purchase Manager orders 100 Fans from the 1001 the Earth Televisions vendor.

Create a purchase order:

1. Go to the Accounts Receivable > Common Forms > Purchase Order Details. The Purchase order form opens.
2. Create a new line. The Create purchase order form opens. Select the 1001 vendor.
3. In the lines area, create a new line with the following values:
   • Item number = 101
   • Site = 2
   • Warehouse = 22
4. Save the line. Note that the Quantity field is automatically filled in with 100 and the Unit price field is filled in with the value 5.

We assume that the vendor packs the items and delivers them to the Fan company the same day. Check that the Delivery date field contains the current date (displayed in the lower part of the Purchase order form).

Let’s check the inventory transactions:

1. Open the Items form and find the 101 item.
2. Click the Transactions button. The Transactions on item form opens.
3. Add the Location and Pallet dimension in the form: click the Inventory > Dimensions display button. In the Inventory dimensions form, select the Location and Pallet id check boxes and click OK. The Transactions on item form will have the following view:
   

   Transactions on item form, Ordered

Item Arrival and Registration

For more information, see the Item arrival and registration training lesson.

When the truck with the Fan items arrives to the  warehouse 22, the Purchase Manager starts the arrival and registration process:

1. Go to the Inventory Management > Periodic > Arrival overview. The Arrival overview form opens.
2. Find the created purchase order and select the Select for arrival check box.
3. Click the Start arrival button.
4. The Infolog with the information about the created arrival journal ID will be shown.
5. Click the Show button in the Infolog dialog box or go to Inventory Management > Journals > Item arrival > Item arrival. The Location journal form opens. Find the last journal.
6. Click the Lines button in the Location journal form. The Journal lines form opens.
   

   Journal lines form

   We can see that one purchase order line with 100 fans is divided into 9 separate arrival journal lines with 12 fans. This is because we store items on pallets and the default pallet quantity for the Fan item is 12 (Item form > Setup tab > Warehouse management field group > Pallet quantity field). Each pallet will be transported to an individual place (location) in the warehouse. The items are received from the truck and placed onto pallets with the help of a Lumper. For more information, see the Purchase business process lesson.

7. The Purchase Manager examines received pallets and generates pallet numbers for them. Pallet numbers are required because the Fan item uses the N-WLP inventory dimension group (i.e. when fan items are registered in the warehouse, they must be stored on pallets in a specific location). For each journal line, click the Functions > Pallet id menu button in the Journal lines form.
8. Now, the Purchase Manager creates tasks for the forklift driver to transport pallets from an inbound dock to the destination location. A pallet transport task will be created during the posting process if the Pallet transport check box is selected for the journal line. In the Journal lines form go to the General tab > Mode of handling field group and make sure that the Pallet transport check box is selected for each journal line. The destination location will be searched during the posting process. The quarantine location will be searched only if the Quarantine management check box is selected for the journal line. In the Journal lines form, go to the General tab > Mode of handling field group and make sure that the Quarantine management check box is selected for each journal line. Note that the Pallet transport check box is selected by default if the item dimension group has the Pallet ID dimension active. Note that the Quarantine management check box is selected by default on the journal line if item inventory model group has the Quarantine management check box selected.
   

   Journal lines form, General tab

The Purchase Manager clicks the Post button in the Journal lines form.

9. The “Item 101, dimensions: Warehouse=28, has no picking location in warehouse 28” error message will appear.

How is the destination location for the pallet searched? The Microsoft Dynamics AX has several parameters to control the process of destination location searching.

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Let’s check inventory transactions. Open the Items form and find the 101 item. Click the Transactions button. The Transactions on item form opens. Filter the result for the 00000095_114 pallet. The Transactions on item form will have the following view:

Transactions on item form

We can see that

• The pallet is sold (deducted financially) from the In_01 inbound location.
• The pallet is sold (deducted financially) from the 01-01-0-0 quarantine location.
• The pallet is purchased (received financially) to the 01-01-01-1 destination location.

Also, we can check the on-hand quantity for all mentioned locations:

1. Go to Inventory Management > Setup > Inventory breakdown > Locations. The Locations form opens.
2. Find the In_01 location (22 warehouse) and click the Inquiries > On-hand menu button. The empty On-hand form is shown.
3. Find the 01-01-0-0 location and open the On-hand form. The empty On-hand form is shown.
4. Find the 01-01-01-1 location. Open the On-hand form. The following form is shown:
   

   On-hand form

Training Lesson Summary

In this training lesson, we go through all steps of receiving quarantine items. The topic studied uses the warehouse management functionality. Note that the number of steps can be decreased if an item doesn’t use the warehouse management (a pallet, location dimensions are inactive).

We have studied the followings:

1. Created a quarantine item.
2. Set up a quarantine warehouse.
3. Ordered items.
4. Received items to the inbound dock.
5. Transferred items to the quarantine locations.
6. Used Quarantine management.
7. Transferred items to the destination locations.

All the best

Technorati Tags: Quarantine management

Introduction

Hi there! In this training lesson, we will study what the Quality order and Nonconformance document are and how to work with them.

Let’s begin. As you may have noticed, the name of the current training lesson is Quality Management. Quality management allows the following:

• Set up quality tests
• Track items that must be quality controlled

When an item must be verified, a Quality order is created. A Quality order contains information about an item, the quantity to verify, and test instructions. Quality order does not generate inventory transactions, because all quality tests are performed in one place. But, if the item is destructed during the quality test, an inventory transaction must be generated.

Optionally, if the item does not pass the quality tests, a Non conformance is created. A Non conformance document contains information about non conforming items and allows managing these. A Non conformance can be created not only from a quality order, but also for example, based upon the customer’s complaints against the returned item.

If a Quality order is created automatically as part of the business process (when purchasing, selling, or producing an item), it is not possible to move to the next business process step until the quality order is validated and closed.

The result of the quality verification is the certification of analysis.

In Microsoft Dynamics AX, we can find two terms – quality control and quality management.

From the Microsoft official documents:

• “The quality control component is used to set up and manage the quality testing requirements for a company.”
• “The quality management component is used to manage non conforming products and items, such as damaged or defective goods, and to track and resolve customer or vendor problems, such as product complaints or performance issues.”

Let’s assume that a company resells speakers and the Quality team decides to test these items during the purchase.

Set Up Initial Data

To enable the Quality Management functionality in Microsoft Dynamics AX, locate the Quality management tab of the Parameters form in the Inventory management module. (Inventory management > Setup > Parameters) and select the Use quality management check box.

Inventory parameters

When the Use quality management check box is cleared, the fields related to quality management will not appear in the forms throughout Microsoft Dynamics AX 2009, and quality orders cannot be created.

Set Up Test Area

Test area is the name of the places where tests are performed. In Microsoft Dynamics AX 2009, the test area is only used for grouping the instruments. That is because different test areas can contain different sets of instruments. But, this information is not used in the system, only for informative purpose.

The following image provides test areas which are available in my demo data (Inventory management > Setup > Quality control > Test areas).

Test areas form

Set Up Test Instruments

The instruments that can be used to carry out tests are set up in the Test instruments form (Inventory management > Setup > Quality control > Test instruments).

The following image displays the test instrument available in my demo data.

Test instruments form

On the General tab, there is the Precision field which is not used in the system. The main purpose of the test instrument is to assign a unit of measure to the quality test.

Change the value in the Unit field from Option to Mm (Millimeters).

Set Up Tests

Tests are used to determine whether quality processes meet predefined specifications and standards.

A test can be quantitative (with specifications and test results expressed as values for a specified unit of measure) or qualitative (with specifications and test results expressed as user-defined outcomes that reflect pass or fail).

Microsoft Dynamics AX 2009 has the following test result types:

• Fraction
• Integer
• Option

The first two relate to quantitative tests and the last one relates to qualitative tests.

The tests are set up in the Tests form (Inventory management > Setup > Quality control > Tests).

The following image displays qualitative test available in my demo data.

Tests form

Let’s change the Enclosure measuring test type from Option (qualitative test) to Fraction (quantitative test). Click Functions > Change quality test type. In the form that opens, select the Fraction value in the New type field and then click OK.

Create a new Sound quality test with the following values:

• Test = Sound quality
• Description = Sound quality
• Type = Option

Tests form

Set Up Test Variables

In Microsoft Dynamics AX 2009, the qualitative tests use test variables as a test result. Each test variable contains acceptable and unacceptable test results.

Let’s create a new Sound test variable with two possible outcomes – No acoustic noise and Acoustic noise. If there is acoustic noise in a speaker, the test result is failed.

1. Open the Test variables form (Inventory management > Setup > Quality control >Test variables).
2. Create a new Sound variable.
3. Click the Outcomes button. The Test variable outcomes form opens.
4. Create a new outcome with the following data:
   • Outcome = No acoustic noise
   • Outcome status = Pass
5. Create one more outcome:
   • Outcome = Acoustic noise
   • Outcome status = Failed

Test variables form

Set Up Item Sampling

The quantity of sample items to be tested is set up manually. Go to Inventory management > Setup > Quality control > Item sampling.

In my demo data, I have the item samplings displayed in the following screenshot.

Item sampling

The quantity specified can be either a fixed or a percentage amount.

Set Up Test Groups

The test group contains the tests that must be performed for an item, item sampling parameter, and an acceptable quality level parameter. Note that a quality order is created on the basis of the test group.

Let’s create the Acoustic test group:

1. Go to Inventory management > Setup > Quality control > Test groups. The Test groups form opens.
2. Create a new line with the following parameters:
   • Test group = Acoustic
   • Acceptable quality level = 50. This means that 50% of tests must be passed.
   • Item sampling = “1 %”. This means that we will test only 1% of delivered for testing items.
   • Destructive test is cleared. It means that after the testing, the item will be returned back to the group of items delivered for testing.
3. In the bottom grid, we will add tests that will be performed in this test group.
4. First, a speaker will be measured. Let’s assume that all speakers must be no more or less than 50 mm length. In the bottom grid, create a new line with the following parameters:
   • Sequence = 1
   • Test = Enclosure measuring
   • On the Test tab, fill in the standard (acceptable) value for this test. Fill in 70 in the Standard field.
   • Note that the Min field contains the 0 and the Max field contains the 140 values. This means that all values from 0 to 140 are acceptable. In our case, it is not true. So, fill in 70 in the Min and Max fields.
   • Note that on the Test tab, the Test instrument field is automatically filled in with the Measuring tape value from the Test form. On the General tab, the Certificate of analysis report field is selected and the Acceptable quality level field is set to 100 by default.
5. Second, a speaker will be checked for the sound quality. In the bottom grid, create a new line with the following parameters:
   • Sequence = 2
   • Test = Sound quality
   • For the qualitative test, a test variable must be set up. Go to the Test tab.
   • Variable = Sound
   • Default outcome = No acoustic noise

The Test groups form will have the following view:

Test groups form

Set Up Automatic Quality Order Generation

Let’s assume that the Company decides to check the quality of purchased speakers from all vendors. The Quality Manager sets up the automatic generation of a quality order during the purchase process. A quality order will be generated after a packing slip is received.

This requirement is set up in the Quality associations form as follows:

1. Go to Inventory management > Setup > Quality control > Quality associations. The Quality associations form opens.
2. Create a new line with the following values:
   • Site = 2
   • Reference type = Purchase order
   • Item code = Table
   • Item = 1101
   • Account cod = All (all vendors)
   • Test group = Acoustic
   • Document type = Packing slip
   • Execution = After

The Quality associations form will have the following view:

Quality associations form

To set up quality association for a group of items, a quality group containing these items must be created.

A quality group is created under Inventory management > Setup > Quality control > Quality groups. To add a new item, click Setup > Add items in the Quality groups form. You can view the grouped items in the Item quality groups form.

Quality Order

Now, we will purchase speakers and check whether a quality order is automatically generated.

Create a purchase order with the following values under Accounts payable > Common Forms > Purchase order details:

• Vendor = 1001
• Item number = 1101
• Site = 2
• Warehouse = 21
• Quantity = 400

Let’s assume that the items were already delivered and now are stored in the warehouse.

To reflect this in the system, the Purchase Manager clicks Posting > Packing slip in the Purchase order form. The Posting packing slip form opens. Fill in any value in the Packing slip field. Click OK.

The packing slip is posted. You can find more information about what a packing slip is in this training lesson. After the posting, the following Infolog appears:

Infolog

A quality order containing 4 speakers is created (because of the sampling items parameter set on the test group). We can open the quality order by double-clicking on the Infolog line or going to Inventory management > Periodic > Quality management > Quality orders.

Quality orders form

We can see that the Quality orders form is very similar to the Test groups form. The quality order contains only test instructions. Note that when a quality order is created, the verified items are not transferred to a special location in the warehouse. For example, the quality order is created for the purchase order. The Quality Manager prints the quality order and goes to the place where the purchase order items are stored. This is not acceptable for companies with big warehouses. For big warehouses, the Quarantine management must be used. Received items will be transferred to a quarantine location. Quality orders will be generated based on a quarantine order. And the Quality Manager will check the received items in the quarantine location instead of finding them in the warehouse.

In our case, we assume that the Quality Manager easily finds the received items in the warehouse.

Let’s try to post an invoice for the purchase order. Since the quality order isn’t closed, we expect that an invoice isn’t posted. Let us return to the Purchase order form. Note that the Quality order status field is filled in. Click Posting > Invoice. Fill in any invoice number and then click OK. The invoice is posted! But from the official documentation we can read that “An infolog can warn that the quality order failed or is not yet closed when performing the next step in the business process.”. But this works only if the quality order is automatically generated before the document (see what we set up in the “Set Up Automatic Quality Order Generation” chapter).

The Quality Manager finds the stored items and starts testing themes. The Quality Manager can write testing results on the paper and then enter these in the system. Unfortunately, in Microsoft Dynamics AX 2009, it is impossible to print a quality order with test instructions for the Quality Manager.

We assume that the Quality Manager receives the following testing results:

1. Enclosure measuring test results:
   • 3 speakers have the 70mm length
   • 1 speaker has the 72 mm length
2. Sound quality:
   • 4 speakers do not have acoustic noise

The Quality Manager returns to the working place and enters these results in the system:

1. Open the Quality orders form (Inventory management > Periodic > Quality management > Quality orders) and find the necessary order.
2. Select the Enclosure measuring test and click Results in the lower pane. The Quality order line results form opens.
3. Enter the test result:
   • Result quantity = 3, Test result = 70
   • Result quantity = 1, Test result = 72
   

   The Quality order line results form

   Close the form.

4. Select the Sound quality test and click Results. In the Quality order line results form, enter the test result:
   • Result quantity = 4, Outcome = No acoustic noise
   

   The Quality order line results form

   Close the form.

5. After entering the test results, the Quality Manager validates the entire quality order according to the acceptable quality level parameter. Click the Validate button in the Quality order form.
6. Select employee ID in the Validate by field and then click OK.
7. The Quality orders form will have the following view:
   

   Quality orders form

All tests for the quality order successfully passed and nothing is changed in the inventory and finance areas. So, the main purpose of the quality order is storing test results. In the end, the Quality Manager can create and print a certificate of analysis for a quality order. A certificate of analysis certifies that materials or products are tested and found to comply with redefined specifications or standards (from official manuals).

To create and print the certificate of analysis, the Quality Manager performs the following steps:

1. Click the Inquires > Certificate of analysis button in the Quality orders form. The Certificate of analysis form opens.
2. Create a new line.
3. Save the record.
4. Click the Print button to print the certificate.

In our case, the certificate of analysis will have the following view:

Certificate of analysis

In the next chapter, we will study how to handle the damaged or defective items that have been found during the testing.

Non Conformance

If the Quality Manager finds damaged or defective items, he or she will create a non conformance. A non conformance document describes the products and items that do not comply with the predefined performance or the quality standards and the problem source.

The problem source is defined as a non conformance type (Internal, Customer, Vendor, Service request, Production).

In Microsoft Dynamics AX 2009, the only thing that we can do with the damaged or defective item is printing and attaching a non conformance tag. Any scrap, movement, or returns are not available now. Also, non conformance doesn’t affect the quality order and vise versa. It means that if all tests for the quality order passed, the non conformance can be created.

The Quality Manager wants to print a special label for the damaged item. To do this, he or she performs the following steps:

1. Prerequisite: set up a problem type
   1. Inventory management > Setup > Quality management > Problem types. The Problem types form opens.
   2. Create a new line with the following value: Problem type = Size.
   3. Click the Non conformance types button. The Problem/Non conformance types validation form opens.
   4. Create a new line with the following value: Vendor
2. In the Quality orders form, click Inquiries > Non conformances. The Non conformance form opens.
3. Create a new line with the following values:
   • Problem type = Size
   • Defective = 1
     

     Non conformance form

4. Click Functions > Approve non conformance.
5. The Quality Manager can add the following information for the approved non conformance:
   • operations with cost amount
   • diagnostics

   But this information is not used in the system it is only for the informational purpose.

6. The Quality Manager closes the non conformance: click the Functions > Close non conformance button.
7. Print a special tag for the item: Print > Non conformance tag. In our case, the non conformance tag will have the following view:
   

   Non conformance tag

Training Lesson Summary

In this training lesson, we have studied the Quality Management functionality:

1. Set up a test group.
2. Automatically generate the quality order.
3. Work with a quality order.
4. Handle the damaged or defective items.

The following conclusion has been created:

1. The quality order doesn’t allow going to the next business process step if it is generated before the document.
2. The quality order doesn’t generate any inventory or general ledger transactions. The quality order stores test results only.
3. The result of quality verification is printing the certificate of analysis document. It is printed from the quality order.
4. For damaged or defective items, the non conformances are created. Non conformance doesn’t generate any inventory or general ledger transaction. It only stores the information about damaged or defective items. The only thing that can be done with these items is attaching a non conformance tag to them.

Technorati Tags: Certificate of analysis, Non conformance, Non conformance tag, Quality associations form, quality order