1. Visit our Focus Rooms Evaluation of Implementation Proposals by Dynamics AX R&D Solution Architecture & Industry Experts Gain further insights on Dynamics AX Industry Solution Offerings Resolution Guidance on Solution Roadblocks Networking Risso 8A Risso 7B Risso 7A Risso 6C Risso 6A/B

2. NICE,FRANCE LEARN | INSPIRE | INNOVATE TECHNICAL CONFERENCE 2011

3. SIMPLIFY COMPLIANCE WITH MICROSOFT DYNAMICS AX KIM NELSONHEIDI MINZNER SESSION CODE : BRK238 SENIOR PROGRAM MANAGERPRINCIPLE PROGRAM MANAGER LEAD

4. DISCLAIMER ©2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. Other names and brands may be claimed as the property of others. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. All pre-release product release dates and features specified are preliminary based on current expectations, and are subject to change without notice. Microsoft may make changes to specifications and product descriptions at any time, without notice. Sample code included in this presentation is made available AS IS. THE ENTIRE RISK OF THE USE OR THE RESULTS FROM THE USE OF THIS CODE REMAINS WITH THE USER. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPERTY RIGHTS IS GRANTED BY THIS PRESENTATION. Microsoft products are not intended for use in medical, life saving, or life sustaining applications.

5. Today we will show you… Producing IFRS Financial statements Establishing proactive audit controls Utilizing Compliance Center to document compliance initiatives

6. Components in action today

7. Pains and challenges Ken (Controller) Needs a comparative format for financial data Wants to reduce additional work on preparing financial statements

8. Concepts & Definitions Posting layers: The Dynamics AX representation of a ledger or an accounting book. Dynamics AX provides 3 posting layers out of the box: – Current posting layer: Where most the accounting entries are journalized from the subsystems – Tax Posting layer: Used when the representation of taxable figures is different from the one in the default layer – e.g., specific tax depreciation allowance – Operations posting layer: Used when an additional representation of the accounting is necessary – i.e., IFRS, Tax, and USGAAP Analysis cube: Delivered analysis data cubes that can be reused in Excel to create Pivot tables and analysis

9. IFRS: The Microsoft Dynamics AX Integrated Approach GL consolidation and elimination GAAP Measurement of transactions Accruals accounting FX valuation for realized and unrealized gain or loss Multi-GAAP support (posting layers) GAAP Adjustments Journals Shared COA, Calendars Local Financial Statements Subledger/Source Systems ● Fixed Asset ● Project Accounting ● Treasury ● Procurement / Payables ● HR/Payroll ● Inventory Mgt. ● Sales/Revenue Mgt. ● Expenses Varies by industry, size, accounting complexity, country Report Consolidate Book Measure GL Analysis cubes Microsoft Dynamics AX Financial Report builder Integration to Management Reporter

10. Multiple Accounting Representations using “Posting Layers” at the GL and Consolidation Level Fixed Asset Subledger General Ledger Consolidation * Except for Fixed Asset which is captured in Full FULL FULL for Fixed Asset Acquisition and DELTA for Other GL Accounts FULL DELTA Global Company Consolidation (CORP) EUR Global Company Consolidation (CORP) EUR USA Company (SUB1) in USD USA Company (SUB1) in USD Europe Company (SUB2) in EUR Current + Operations External reporting (IFRS) Posting layer Current + Operations + Tax Internal reporting Current+ Operations Current+ Operations External reporting (IFRS) Posting layer Current + Operations Group External Reporting(IFRS) Current Local GAAP … Posting layer Current US GAAP Posting layer Current + Operations + Tax Internal reporting Posting layer

11. Demo 1 : Account and report for multi-GAAP requirements PersonaPain Points and ChallengesFeatures CoveredResults and Benefits Ken Controller Needs a comparative format for financial data to relate to competitors Wants to reduce additional work on consolidated financial statements Wants to quickly check the figures after adjustments are booked Wants to prepare the GAAP comparison Financial reporting automatically Posting layers Analysis cubes Consolidations Lower the cost of multi- GAAP support Single source of the truth Export to Excel with multidimensional (Pivot table) capabilities Minimal manual work for multi-GAAP adjustments

12. Status of IFRS Adoption Worldwide FASB/IASB convergence (IFRS adoption TBD) IFRS as published by the IASB IFRS as adopted locally No plan for IFRS adoption IFRS as adopted by the EU Convergence approach IFRS into local standards IFRS as published by IASB (with restriction/limitation) IFRS as adopted by the Financial Services Agency (local)

13. IFRS Updates for Microsoft Dynamics AX

14. Audits can feel like this

15. What if audits felt more like this?

16. Audit Automation Process

17. Audit examples Random sample of purchase orders higher than €10,000 “Monitored” list of employees with previous violations

18. Demo 2 : Managing Audit with Audit Workbench PersonaPain Points and ChallengesFeatures CoveredResults and Benefits Cassie Manual queries are time consuming and expensive Wants automated and repeatable controls Audit Workbench Create automated audit policies removing the expensive, tedious, and time-consuming aspects of audit

19. Extending Audit Out of the box, Microsoft Dynamics AX supports auditing: – Expense reports – Purchase orders – Vendor invoices Audit framework can be extended to other source documents, such as: – Purchase requisitions – Travel requisitions – Free text invoices

20. Compliance Center Provides a central location where important compliance-related info can be viewed and monitored Document all internal controls and assign ownership Monitor internal controls and be notified of any violations/exceptions Provides the ability to document business processes to meet compliance objectives and share them easily

21. Demo 3 : Documenting Internal Controls with Compliance Center PersonaPain Points and ChallengesFeatures CoveredResults and Benefits Cassie Needs central location to manage compliance information Compliance Center Central repository for collaborating on compliance initiatives and documenting control effectiveness

22. Top Tips from the Session Utilize the posting layers when more than one accounting representation is required for Financial reporting – multi-GAAP. Posting layer assignment can be set up in General ledger > Setup > Journal names The delta adjustments for general ledger are entered through general journals using posting layer Tax or Operations Fixed assets is always full representation across posting layers using Value Models; when reporting in consolidation company, select only single layer for asset accounts but multiple posting layers for other accounts Assign the account type and account category according to your financial statements structure for external reporting to take advantage of the delivered GL Analysis cube

23. Top Tips from the Session Take advantage of the Audit Workbench for Expense Reports, Purchase Orders, and Vendor Invoices Audit polices can be extended to other source documents (Dev license required) Define audit policies based on company-specific or document-specific criteria Use Compliance Center to document internal controls for compliance initiatives to collaborate internally on those controls and provide evidence to auditors of control effectiveness Templates are available for documenting default internal controls

24. Related sessions BRK242: Dynamics AX Financial Reporting Options including Management Reporter BRK228: Managing Financials with Microsoft Dynamics BRK237: Deep Dive into Microsoft Dynamics AX 2012 Financial Foundations BRK223: A Developer’s Guide to Role-based Security (RBS) and eXtensible Data Security (XDS)

25. Visit our Focus Rooms Evaluation of Implementation Proposals by Dynamics AX R&D Solution Architecture & Industry Experts Gain further insights on Dynamics AX Industry Solution Offerings Resolution Guidance on Solution Roadblocks Networking Risso 8A Risso 7B Risso 7A Risso 6C Risso 6A/B

26. © 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows 7 and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.