UBAX04 – Month/Year End Closing in Microsoft Dynamics AX (AX2009/AX2012) - How2 Presenter: Richard Draper AX Solution Architect

Presentation overview Month End processing – AX2009/AX2012 steps and procedures Year End processing - AX2009/AX2012 steps and procedures Typical issues and how to reduce processing times using standard features. Includes new AX2012 features

Month End Closing There is no magic month end “button” (consider using AX menu favorites/AX2012 case management/workflows) Month end processes are module specific: General Ledger Tax Bank Fixed Assets Accounts Payable Accounts Receivable Inventory Management Projects (invoicing &WIP posting) Production WIP reports – projects, production)

Month End Closing – “Checklist” Mandatory “STOP” month for all users except finance. Now “On Hold” in AX2012 G/L - Post all open journals Fixed Assets – Depreciations/acquisitions/disposals/bonus depreciations… A/R and A/P - post pre-payments & accruals. Inventory - close & adjust Run reconciliation reports – General ledger to ALL modules Reconcile between GRNI and GL Reconcile inventory module and GL Bank reconciliation & bank reconciliation report A/R & A/P aging reports Print and review trial balance Print and review financial statements Finally -“STOP” month for all users (ONLY close when financial statement is closed – no more transactions!! – Cannot undo!! Optional G/L or A/R and A/P - Run exchange adjustments Tax reports/payment EU Sales list & Intra-stat reports Consolidations & Eliminations Run Interest calculation Produce collection notes Update exchange rates Update tax exchange rate (E.Europe only) A/P Accrued purchases report A/R Shipped not invoiced Budget analysis reporting Expense and invoice processing Note “new” inventory reporting framework - report and reconcile Inventory and WIP values on one report. Replaces the SIX individual reports and manual adjustments, which were required in previous versions (pre April 2010)

Year End Closing – “Checklist” Pre-requisites Complete ALL month ends Carry out year end activities Fixed Asset depreciations Tax reporting/payment Run Inventory Close and Adjust to end of year Run Year End Backup data Create new fiscal year Run AX2009 year end Create B/S closing/opening transactions Calculate BS retained earnings from P&L Reset P&L balances to zero. Produce year end financial statements Send statements to Auditor Adjust ledger if required by Auditor Consider Posting layers – current tax/operations or 13th period Rerun Year end Set ALL periods to “Closed” (Be aware Close means Close. Only close when your financial statement is closed!!) Optional Rerun consolidations & Eliminations Run 1099 reporting (US) Reset number sequences if required

Year End Closing process G/L Parameters G/L  Periodic  Fiscal Year End Close  Opening Transactions

Reduce month end processing times Take time to review and implement STANDARD AX2009/AX2012 features within: Chart of accounts/Main accounts setup Journal Names Journal approval Intercompany journal posting Journal control Journal posting restrictions Dimension Set Rules/Account structures (advanced rules) Allocation and allocation rules Accrual Schemes Consolidations Eliminations

Reduce month end processing times Chart of accounts/main accounts setup Locked in journal Ledger account db/cr setup Closed for posting Offset account Validation options Mandatory Reference

Reduce month end processing times Journal Names including: Journal Approval Ready/Approved/Rejected Intercompany journals Journal Control Posting Restrictions Reduce month end processing times

Reduce month end processing times – Journal control/Posting restrictions

Reduce month end processing times Also consider: Dimension set rules & hierarchies Allocations and allocation rules Accrual Schemes Consolidations Eliminations

Reduce month end processing times AX2012 “dimension hierarchy control” - via Account Structures and Advanced Rules

AX2009/AX2012 New inventory value (reconciliation) report Note “new” inventory reporting framework - report and reconcile Inventory and WIP values on one report. Replaces the six individual reports and manual adjustments, which were required in previous versions (April 2010)

Time saving features in AX2012 Account structures and advanced rules Shared currencies and COA’s Unlimited dimensions and auto populated dimension values Distribution Templates Pre-posting validation of sub-ledger posting Ledger account alias Pre-payments in AP Workflows 2/3 way matching - improved

UBAX04 - Month and Year End Closing in Microsoft Dynamics AX - How2 Any questions? Richard Draper - AX Solution Architect RDR@AXmentor.com