Download - Microsoft AX-TNL Basic Flow

8/22/2019 Microsoft AX-TNL Basic Flow

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Costing Methods

Item Model Group Parameters:

We can select costing methods from Item Model Group. Also we can decide Whether or not

Physical value of the item should be included in respective Costing method or not.

Costing Methods:

FIFO LIFO Weighted Average Standard Cost

Include Physical valuemeans include those items cost which are only physically updated

(packing slip Updated), INVOICE yet to be posted. So such items can be included in Costing

methods along with Invoiced transactions.

FIFO and LIFO:

Both Costing methods behave as weighted average till Inventory Closing is not done.

Average cost= Total updated cost of item/Total No. of item Available

After Inventory Closing, Adjustment is done with the Inventory Transactions as per Costing

Model Group. Also for calculating average cost of the item, Physical value Parameter in

Inventory Model plays important role. This parameter is just to ensure whether physical Cost

of items ( ie Cost of item whose only Packing Slip is Posted, Invoice yet to be Posted)

should be consider or not.

Scenario I:

Item No: 000035

Inventory Model Group: Chairx

Costing Method: FIFO

Include Physical Value:UNCHECKED


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Fig 1: Item Model Group: Chairx, FIFO, Include Phy. Value= Unchecked

TRANSACTIONS:

a. Create PO1 of qty=10, Unit price=5, Total amount=50. Only Post Packing Slip.b. Create PO2 of qty=10, Unit price=7, Total amount=70. Post Invoice.c. Create PO3 of qty=10, Unit price=9, Total amount=90. Post Invoice.

At this point Inventory Status is:Physical On-hand= 30

Physical Cost amount= 50 (PO1)

Financial Cost amount= 70+90 =160 (PO2+PO3)

Cost Price = 160/20 = 8/unit (Unless FIFO, Weighted Avg. Method is followed)

Here:Only financial cost amount (160) and number of items associated (20) are

considered, as Include Physical value=UNCHECKED


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d. Raise SO1 of qty=5. Post Invoice.Due to calculated cost price=8/unit. Invoice of 8*5=40 is been posted.

After SO1 Invoiced Transaction:

Physical Cost amount=50 AND Financial Cost amount=120

Now, Check Include Physical value checkbox.

Inventory Model: FIFO

Include Physical Value= CHECKED


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Here: To calculate Cost Price Physical as well as Financial Cost summed up and divided by

total Physical Inventory. Cost Price= (50+120)/25 = 6.80/Unit

e. Raise SO2 of qty=8. Post Invoice.Due to calculated cost price=8/unit. Invoice of 8*6.80= 54.40 is been posted.


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That means, AX calculates cost of each item as Average Cost, depending upon Physical value

parameter in Item model group. Unless Costing Method is FIFO, average item costs get

assigned at the time of Invoicing but not the cost of the first item as per FIFO rule. When we

close Inventory, All respective transaction got settled against Item model group.


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TRANSACTIONS IN PURCHASE ORDER

How purchased items should flow once they have arrived to company is handled with the

help ofItem model group: Physical Update parameters.

Registration Requirements:

When it is ACTIVE, Purchased items must be registered before Updatephysically (Post Packing Slip). Quantities to be Updated physically should be

registered with tracking dimensions like Serial No, Batch No etc.

When it is Disabled, Purchase items can be Update physically successfullyinto inventory without Registration process of items.

Receiving Requirements: When it is ACTIVE, Purchased items must be received into Inventory (Post

Packing Slip) before Invoicing. Here only items those are Physically updated

into inventory can only be Invoiced. So we can check PO Invoice qty against

Quantity actually received.

When it is Disabled, Invoice can be raised for PO items those yet to receiveOR to be updated into Inventory.

Registration Packing Slip Invoicing


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SCENARIO:

Item No: Binbag

Item name: Binbag

Inventory Model Group: Std Chair

Registration Requirements= CHECKED

Receiving Requirements= CHECKED

Fig. Item Model Group Parameter.


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Fig: Item Storage Dimensions AND Tracking DimensionsTRANSACTIONS:

Create PO of qty=20, Unit price=5, Site=2, WH=21 Total amount=100. Confirm PO.


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Fig. Transactions in Various Stages of PO. (*Reference : Pratik-ITTI Mumbai CaseStudy.xls)

Sr.No

1 TryConfirm Confirm Button PO Confirmed 20 qty is ON Order Status

Fill all necessory Information Inventory Transaction is PO is OPEN ORDER STATUS

20 qty ORDERED

2 Try Packing Slip Try to generate Packing slip to ERROR Qty 20 cant received,Registration Required

Before Registration Update Physical Inventory Due to Items should be registered into company before it get

Registration Req=CHECKED updated into Inventory.

Registration Updateline->Registration

3 Process

(Depending on Tracking Enter Batch No. Manually ERROR Batch No should be created before, for specific Item.

Dimensions) Cant directly specify, has to be selected from already created List of Batches

Create Sr. No with Wizard Sr. No and Batch No is created Sr. No is created with given format in Wizard e.g. SrN-BB## (Sr-BB01 TO Sr-BB20)

Select Batch No from dropdown Batch No also assigned to bunch of items.

POST ALL Item got registered with given Inventory Transaction

Sr,No and Batch NO ON hand=Physical A vai lab le 20

Status= Registered

PO is OPEN STATUS

Try Invoi ci ng Bef ore try to update Invoi ce f or PO ERROR Qty cant be Invoi ced cause Inventory trans are not wi th Status= Recei ved

4 Packing Slip Due to Generate Payment only for items which we have received updated into Inventory

Received Req=CHECKED

Try to generate Packing slip

5 Update Physical Inventory

5.1 Enter Receipt No. 20 items got updated into Status= Recieved

Qty updated=20 (ALL) Inventory. PO is Received Status

Receipt Form->Lines->Qty=15 15 qty got updated On hand =20 PO is Open Status

(5 remainder to Deliver yet) Received=15

5.2 Registered=5

Product receipt,Qty=5 5qty got Updated On hand=20 PO is Received

Received=20

6 Cancel Product Reciept Receipt Journal-> Cancel Cancel Successfully All transactions from Product receipt and Regeistrat ion got Deleted

Cancel already received Items Inventory Transaction for 20 qty = On Order Again

PO is OPEN STATUS Again

Again Process From Registration->Product Receipt

PO is recceived Status

7 Invoice Post Invoice Receipt Ledger A/c got updated Inventory Tranactions

with item Cost 20 qty PURCHASED

SO is INVOICED

Post Product Receipt

ALL

PARTIAL

Steps Taken ResultPurpose Explaination


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Packing Slip Before Registration:

Registration Process Screen-shots:

Fig: Registration Form


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Fig: Inventory Status after Registration

Packing Slip Process Screen-shots:


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Fig: Inventory Status after Packing Slip Updated


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TRANSACTIONS IN SALES ORDER

How items should move out of the Inventory once SO confirmed? Set up Item model group:

Physical Update parameters.

Picking Requirements:

When it is ACTIVE, Sales items must be Picked from Inventory beforeUpdate physically (Post Packing Slip). Quantities to be updated physically

should be picked with help of tracking dimensions like Serial No, Batch No

etc.

When it is Disabled, Sales items can be moved out of inventory withoutPicking Process. We can Update Packing slip without Picking of Items.

Deduction Requirements:

When it is ACTIVE, Sales items must be deducted from Inventory (PostPacking Slip) before Invoicing. Here only items those are physically updated

and deducted from inventory can only be Invoiced. So we can check SO

Invoice qty against Quantity actually deducted.

When it is Disabled, Invoice can be raised for SO items those yet to deductOR to be updated out of Inventory.

Picking

Items

Packing

SlipInvoicing


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SCENARIO:

Item No: Binbag

Item name: Binbag On Hand=30 qty

Inventory Model Group: Std Chair

Registration Requirements= CHECKED Receiving Requirements= CHECKED

Reservation Method: AUTO

Fig. Item Model Group Parameter.


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TRANSACTIONS:

Create SO of qty=20, Unit price=5, Site=2, WH=21 Total amount=100. Confirm PO.


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Fig. Transactions in Various Stages of SO. (*Reference : Pratik-ITTI Mumbai CaseStudy.xls)

Sr.No

1 Try Confirm Confirm Button SO Confirmed 20 qty is Reserved Physically

Fill all necessory Information Inventory Transaction is SO is OPEN ORDER STATUS

20 qty Physically Reserved on hand=30 reserved=20 Available=10

2 Try Packing Slip Try to generate Packing slip ERROR Qty 20 cant Dedcted,Picking Required

Before Picking Update Physical Inventory Due to Items should be Picked from the Inventory before it get deducted from Inventory

Picking Req=CHECKED

Picking Updateline->Pick SO is Open Status

3 Process On hand=10

Picked=20

Depending ON Available =10

Picking Route Status in

A/c receivable param Automatically Picking No picking Registration is required.

Route=COMPLETE Item Transaction status=PICKED Automatically

For Physical Picking or manual Have to do picking registration ,Manually

picking. Item Transaction status=ACTIVATED

Route=Activated Enter Qty in Registration form -> Update ALL

Status=PICKED

Try Invoicing Before try to update Invoice for SO Qty cant be Invoiced cause Inventory trans are not with Status= Deducted

4 Packing Slip Due to Generate Payment only for items which have deducted from Inventory

Deduction Req=CHECKED

Try to generate Packing slip to

5 Update Physical Inventory

5.1 Enter Receipt No. 20 items got Deducted From Status= Deducted

Qty updated=20 (ALL) Inventory. SO is Deducted Status

Receipt Form->Li nes->Qty=15 15 qty got updated On hand =10 SO is Open Status

(5 remainder to Deduct yet) Deducted=15

5.2 Picked=5

Packing Slip,Qty=5 5 qty got Updated On hand=10 SO is Deducted

Deducted=20

6 Cancel Packing Slip Receipt Journal-> Cancel Cancel Successfully All transactions from Picking registration and Packing s lip got Deleted

Cancel already Deducted Items Inventory Transaction for 20 qty = Physicaly Reserved Again

SO is OPEN STATUS Again

Again Process From Pi cking Registration->Packing Slip Update

SO is Deducted Status

7 Invoice Post Invoice Receipt Ledge r A/c got updated Inventory Tranactions

with item Cost 20 qty SOLD

SO is INVOICED

ERROR

Post Packing Slip

ALL

PARTIAL

PurSOse Steps Taken Result Explaination


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Registration Process Screen-shots:

Fig: Registration Form

Fig: Inventory Status after Registration


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Packing Slip Process Screen-shots:

Fig: Inventory Status after Packing Slip Updated


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ITEM RESERVATIONS

Manual Auto Ordered Reserve

MANUAL RESERVATION:

Accounts receivable>Acc. Receivable parameter>Reservation>Manual

Here, When SO confirmed, NO items got reserved against PO items. Here SOs issue Status

is Still On Order With this No items is kept reserved for SO items from already received or

items yet to receive PO lot automatically.

You have to reserve items manually. Here you can reserve items of specific Sr. No from

specific Batch.

Select SO>Lines>Inventory Tag> Reservation> Reserve line>Ok

AUTO RESERVATION:

Accounts receivable>Acc. Receivable parameter>Reservation>AUTO

Here, When SO confirmed, items got reserved against PO items. Here SOs issue Status

updated to Reserved from On Order With this items can be reserved for SO items from

already received (Physical Reserved) or items yet to receive(Ordered Reserved)PO lot

automatically.

ORDERED RESERVATION:

We can reserve from the PO items which are yet to receive physically into inventory.When

PO items are at Ordered status (Packing Slip not updated), we can reserve from the ordered

quantity if On-hand inventory=0 (Insufficient in hand).

Here when items got reserved from ordered quantity called Ordered Reserved. Shows no of

items under Ordered reserve column.

To enable Order reservation,

Inv. Warehouse Mgmt>Inv and Warehouse Parameters> Ordered Reserve= CHECKED


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Automatic reservation is dependent on Reservation Parameters set On Item Model Group

Setting.

Date Controlled Backwards from Shipdate

Date Controlled Reservation is act as FIFO for PO items to reserve. Here items those

received first got preference for reservation over those received later.Here oldest PO lines

reserved for latest SO lines.

Backward Shipdate Reservation is act as LIFO for PO items to reserve. Here items those

received latest got preference for reservation over those received first. Here PO of closest

date of receipt considered for latest SO lines.

Scenario:

Physical Available=3 , Oredered=5 , On-order=6

After SO line reservation:

Physical Available=0, ordered=5, Physical reseverd=3, ordered reserved=3, on-order=2

Here, 3 qtys are reserved from available on hand items ie Physical reserve=3 And other 3 are

reserved from Ordered qty (3 out of 6) ie Ordered reserve=3

PO4 Delivery Date: 25 Aug 2013




SO1 15 Aug 2013+4 days

Backward Shipmdate

reservation:

PO3 lines reserved

Received 17 Aug LIFO

Date Controlled

reservation:

PO1 lines reserved

FIFO rule


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Fig. Case studies Order Reservation. (*Reference : Pratik-ITTI Mumbai CaseStudy.xls)

Sr No

Step-1 On hand=96

Step-2 Raise SO1 for qty =96

2.1 Availble Physical qty=96 Are available to reserve , On order qty=96 (Due to Confirm SO1)

2.2 Reserve qty=78 from available Reserved = 78 , Availble Physical qty=18 Are available to reserve , On order qty=18 (Due to Confirm SO1)

(18 qty yet to reserve/pick )

Step-3 Raise SO2 for qty =20

3.1 Reserved = 78 , Availbl e Physical qty=18 Are available to reserve , On order qty=38 ( SO1 qty =18 + So2 qty=20 )

3.2 Picked 18 from available Reserved = 78 , Availble Physical qty=0 Are available to reserve , On order qty=20 ( SO1 qty =18 + So2 qty=2 )

(2 qty yet to reserve/pick )Scenario 1 : Try to Reserve remaining 2 qty ERROR: Qty 2 not available for reservation as 0 is Physical available

[Oredered qty=0, Available=0] We cant reserve qty when there is not qty available physically. Item Model group Not allowed Physical -ve Inventory.

Step-4 Raise PO1 for qty =2 Reserved = 78 , Availble Physical qty=0 Are available to reserve , On order qty=20 ( SO1 qty =18 + So2 qty=2 ) ,Ordered in total = 2 (PO1 qty = 2 )

Step-5 For SO2

Scenario 2 : Try to Reserve remaining 2 qty ON reservation form

[Oredered qty=2, Available=0] Ordered qty = 2 , Availabl e to reserve = 2 , So try to reserve qty=2

reserved qty=78 , Available Physical=0, On order = 18, Ordered i n total=2, Ordered Reserve=2

Here, Items which we have ordered but not yet physically updated , can be reserverd for SO qty. Those were reserved againstordered reserved qty but not in reserved qty.

Scenario: 3 Try to reserve more than ordered

Reserved=20 Physical Availble=0 , ordered=5 Here, We have already ordered 5 qty with raising PO. Now We will try to raise SO for qty=7 and reserve them against ordered qty

SO qty =7 Reserved=20 Physical Availble=0 , ordered=5 , On Order=7

3.1 Ordered=5 , Available to reserve= 5 , Qty to reserve=7 ERROR 5 is available only to reserve

Qty changes to 5 (Maxm qty)

3.2 Reserved=20 Physical Availble=0 , ordered=5 , oredered reserved=5, On Order=2

Instead of Error, We can reserve atmost qty that has Ordered. Reserved against Ordered reserved

ObservationActionScenario

Confirm

Confirm

Confirm

Register All

Confirm

Reserve

Register All


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Bills of Material


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MAXIMUM, MINIMUM ORDER SETTINGS

We can set maximum, minimum quantity of specific item to be purchased or sell from

In Default Order Settings, We can link up default sites that have to link up with specific

Item number for Specific Order type. Also we can control order quantity to be allowed from

selected sites.

In Site Specific Settings, We can link up default Warehouses to site for specific item. Here

also we can control order quantity to be allowed from selected warehouses. We can also

override Default Order settings of particular site.

Scenario: Default Order set up for Purchase Order

Item number: 000035Default Order Site=1 Mandatory

Multiple=2

Minimum Order Qty=2

Maximum Order Qty=10

Standard Order Qty=5


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Actions Input Observation

Create PO, Update line Select item number=00035

on PO line

Site=1 got selected

Qty get updated with qty=6

(Rounded to 6 from Stdqty 5)

Change Site Change site=2 from site=1 ERROR:Transactions must

be for Site=1

(Mandatory Selected)

Change qty to less than

Minimum

Change qty=1 MsgBox :

Minimum Qty=2 Update?

Click YES

Qty to updated=2

MsgBox:Multiple of 3, Update?

Click YES

Qty Updated=3

Actions Input Observation


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Change qty to more than

Maximum


Maximum Qty=10 Update?

Click YES

Qty to updated=10

MsgBox:

Multiple of 3, Update?

Click YES

Qty

Updated=12

Click NO

Qty

Updated=15


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Scenario: Site Specific Order Setting for Purchase Order

Item number: 000035

Default Order Site=1 Mandatory

WH=13

Override: Multiple=2

Minimum=4

Maximum=15

Standard=4

Parameters /Actions Input Observation

WH=13

Not Mandatory Select item number=00035

on PO line

Site=1 WH=13 got selected


Change WH=12 from

WH=13

NO ERROR


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Parameters /Actions Input Observation

WH=13

Mandatory

Change WH=12 from

WH=13

ERROR: Transactions must

be for WH 13

Override= Disabled

Check all min, max order

setup

It will take all Default Order

Setting assigned to respective

Site.

Override= Enabled

(Site Specific settings

overrides Default order

Settings)

Select item number=00035

on PO line

Site=1 WH=13 got selected


Change qty less than

minimum


Minimum Qty=4 Update?

Click YES

Qty updated=4

Change qty more than

maximum


Multiple of 2 Update?

Click YES

Qty updated=16ssss