APPENDIX A: MICROSOFT DYNAMICS AX FUNCTIONALITY

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1 Appendix A: Microsoft Dynamics AX Functionality APPENDIX A: MICROSOFT DYNAMICS AX FUNCTIONALITY Objectives Introduction The objectives are: Identify the key features and benefits of Microsoft Dynamics AX in financial areas. Identify the key features and benefits of Microsoft Dynamics AX in supply chain management areas. Identify the key features and benefits of Microsoft Dynamics AX in customer relationship management and human resource management areas. Microsoft Dynamics AX 2012 is Microsoft's Enterprise Resource Planning (ERP) solution for large and midsize enterprises that empowers your people to anticipate and embrace change, enabling your business to thrive. This appendix provides an overview of the various modules of the Microsoft Dynamics AX. Modules discussed in this appendix include the following: Financial Management Supply Chain Management Trade and Logistics Master Planning Project Accounting Customer Relationship Management Human Resource Management 1

2 Introduction to Microsoft Dynamics AX 2012 Financials The Microsoft Dynamics AX Financial Management module provides fast, reliable, and comprehensive accounting, financial reporting, and analysis. It also provides all the functionality that is required to update accounts efficiently and comply with reporting requirements. Basic capabilities of the Financial Management module include the following: General Ledger Liquidity Management (Bank Management) Accounts Receivable Collections Accounts Payable Fixed Assets Expense Management Dimensions are used across the various modules in Microsoft Dynamics AX. They can be used for tracking profit, cost centers, departments, value streams, product lines, or any other reporting units. The ability to update the general ledger online provides fast and accurate financial reporting. Financial dimension features also include the following: An advanced control feature that enables the driving of contextual value restrictions on financial dimensions. Financial controllers can specifically restrict authorized values or value combinations at the entry point on chosen table collections or journal names, or upon posting to chosen ledger accounts. Dimension sets that combine dimension types can be built to drive and control the dimension value dependencies. Data reliability is increased regarding financial dimensions across the company and according to specific corporate needs or policies. Because all the Microsoft Dynamics AX modules are part of one system, a transaction in one module automatically updates corresponding accounts in the general ledger. Financial Management Business Analysis Decision makers in a global marketplace face the following questions everyday: Is the business healthy? Who are my best customers? Which supplier do I select? 2

3 Appendix A: Microsoft Dynamics AX Functionality Microsoft Dynamics AX enables accurate and timely analysis to provide companies with the edge they must have to successfully compete. Starting with a larger overview and drilling down to the details, Microsoft Dynamics AX helps companies learn from historical data, investigate opportunities, and to quickly target markets and customers with pinpoint accuracy. Analysis in Microsoft Dynamics AX is based on Online Analytical Processing technology (OLAP). This enables multidimensional analysis by using the Microsoft SQL Server Analysis Services. With Microsoft Dynamics AX, the OLAP functionality and the ERP system are integrated so that all mappings occur directly in Microsoft Dynamics AX, taking full advantage of business information and making the most of relationships between tables, extended data types, and enum labels. There are a variety of dimensions to explore that include time, products, geographical regions, or sales channels. CEOs, CFOs, managers, controllers, accountants, and sales and marketing staff can create, view, and understand reports that previously were complex, expensive, or time-consuming. The data used for analysis is regularly updated because it includes changes as they occur in Microsoft Dynamics AX or subsequent data sources. Financial Management Financial Reporting The Financial Statement feature enables the building of a custom reporting structure and mapping ledger accounts or dimensions to the reporting structures. In financial statements, users can map: Ledger accounts Financial dimensions Combinations of the two The Financial Statement feature is a powerful reporting tool that explores financial figures depicted in a company context and from a business perspective. For example, financial row structures can be created to focus on cost accounts and the cost accounts can be drilled by: Cost centers Departments Combinations of the two With the financial statement reporting feature, users can create many different financial reports to comply with legal requirements and international accounting standards such as the following: Balance sheet Income statement Cash flow statement 3

4 Introduction to Microsoft Dynamics AX 2012 Financial statements are fully compatible with Extensible Business Reporting Language (XBRL). The taxonomies can be converted into row definitions ready to map. This enables the generation of XBRL output from the financial statement. Because of integrated workflow capabilities, users can define approval authorities based on employee hierarchies, user groups, users, or rules. Submitters and approvers can also be alerted to various activities during the approval process. Expense Management provides defined rules, expense policies, which employees must follow when entering, submitting, or approving expense reports. Implementing expense policies can help companies manage expenses effectively and monitor travel and entertainment expenses. Expense Management provides the following actions to be taken if expenses are exceeded: Flag the transaction and display a message to submitter and approver, but enable submittal and approval. Flag the transaction and display a message to submitter and approver, but do not enable submittal. Financial Management Multicurrency When transactions are made in several currencies, it can be a time-consuming and error-prone task to reconcile fluctuations in relative currency value. Microsoft Dynamics AX manages the following three currencies: Transaction currency Base currency Secondary reporting currency Microsoft Dynamics AX makes it possible to track all transactions in all currencies and automatically calculate and update realized and unrealized gains and losses. The detailed currency information is stored in the subsidiary ledgers in addition to the general ledger. Financial Management Printing Documents When printing documents such as invoices or packing lists, you can use defined settings for the original or copy records in print management. These settings include the following: Number of copies to produce Multilingual document footer text Print destination 4

5 Appendix A: Microsoft Dynamics AX Functionality An original or copy record contains the information that is used by print management to print the document. The record that is used to print a document determines: The footer text for the document The printer to use How many copies to print For example, to print three copies of the sales order packing slip, each with different footer text, you need to set up an original record and two copy records. The print management setup information for each document type is defined in a hierarchical list and that consists of the following: Modules Accounts Transactions Combination of these three When a document is generated, it is printed according to the effective original record and effective copy records. An effective record can be inherited from a higher level in the hierarchy or created as a new record for the current level in the hierarchy, or it can override an inherited record that has the same name. Financial Management Key Features and Benefits Financial Management provides the following key benefits: User-friendly, timesaving accounting Fast and efficient reporting and analysis Financial Management offers the following key features: Intuitive and adjustable layout Dimensions Financial statements Multi- and second-currency management Transaction validation and transaction approval Intercompany accounting and consolidation Multiple budgets Fixed assets Credit assessment and credit control Electronic payment Handling of drafts/promissory notes 5

6 Introduction to Microsoft Dynamics AX 2012 Collection letters and interest calculation Report generator Audit trail Print management Fill in the Blanks Fill in the blanks to test your knowledge of this section. 1. can be used for tracking profit, cost centers, departments, and regions. 2. transactions posted to one subsidiary are automatically posted in the other subsidiary. 3. Financial analysis in Microsoft Dynamics AX 2012 is based on technology. 4. Detailed currency information is stored in the ledgers in addition to the general ledger. Expense Management Overview Microsoft Dynamics AX Expense Management helps companies manage, track, and reimburse travel and entertainment expenses. Expense Management has a strong value proposition for organizations with discretionary spending. Travel and entertainment expenses are generally a company's second largest controllable expense. To help curb these costs, Expense Management provides a mechanism to define and apply expense policies, in addition to flagging and reporting abusers of the policies. Additionally, automating the entry and reimbursement of travel and entertainment expenses reduces processing costs versus manual entry. Expense Management is tightly integrated with other Microsoft Dynamics AX modules, such as Project accounting, Accounts payable, and General ledger. A per diem is a daily allowance provided to an employee who is traveling for business. Expense Management enables you to define the per diem amount for hotel, meals, and other incidental expenses for each location. The location that is specified can be as general or specific as wanted and can reference a city, county, region, or country. Users can easily access Expense Management functionality from Enterprise Portal. This provides a robust user interface that is available to all employees, not only those who use the Microsoft Dynamics AX client. Users can create, delete, or modify expense reports and cash advance requests online from any point of the world; or even define other users to enter expense reports on another's behalf. 6

7 Appendix A: Microsoft Dynamics AX Functionality Expense Management Key Benefits Expense Management provides the following key benefits: Analyzes and tracks a company's travel and entertainment expenses Plans and calculates future expenses and reimbursement amounts for various locations Creates multiple expense reports online Defines delegates for generating expense reports and managing relative delegate information Expense Management Key Features Expense Management has the following key features: Setup of various payment methods for travel and entertainment expenses Categories for tracking specific types of expense transactions Record track of the per diem rates, mileage rates, and corporate card numbers by employee Workflow configurations Alerts to submitters and approvers about various activities during the approval process Definition of expense reasons for generating reports Expense policy system Import of credit card transaction files Allocation of per diem amounts Statistic groups to combine various expense categories for reporting Online printing of expense reports and cash advances Multiple Choice The Microsoft Dynamics AX 2012 Expense Management module helps companies manage, track, and reimburse expenses. ( ) revenue and customs ( ) travel and entertainment ( ) medical and recreation ( ) general and administrative 7

8 Introduction to Microsoft Dynamics AX 2012 Multiple Answer What Microsoft Dynamics AX 2012 modules are Expense Management tightly integrated with? Mark all that apply. (Select all that apply) ( ) Project accounting ( ) Accounts receivable ( ) Accounts payable ( ) General ledger Supply Chain Management SCM involves a highly interactive process of controlling, planning, and implementing all the activities associated with moving goods from the raw material stage through to the end-user stage, with the lowest cost and the highest quality. Regardless of whether a company operates with a single production/distribution site, or multiple sites in different geographical locations, the system must capture and reflect the elements which will enable optimal and appropriate decision-making and monitoring throughout. The multisite functionality introduced in Microsoft Dynamics AX enables you to work with multiple sites in a single legal entity. Before activating multisite functionality, customers must first analyze their business requirements and determine how to use the multisite functionality. Make sure that you create a reliable working model of the company's operational sites and processes before implementing this feature. For example, there is a company with three operational sites, located in different states in the United States. The relationships of the sites to each other, the flow of goods, the various work centers, warehouses, and so on, must be thoroughly understood before multisite is activated. By using information that is stored in Microsoft Dynamics AX, users can do the following: Analyze the relationship between costs and sales, including specific details, such as sales on: o Different item groups o Individual items o Customer groups o Individual customers 8

9 Appendix A: Microsoft Dynamics AX Functionality Accurately monitor revenue across the company, based on factors such as the following: o Country o Region o Customer group o Time period Supply Chain Management Key Benefits Supply Chain Management provides the following key benefits: Multisite inventory storage and tracking Synchronized, real-time product movement Improved order fulfillment and accuracy Reduced process inefficiencies and excess inventory Enhanced workload balancing and planning Compliance with industry standards Reduced transportation costs Supply Chain Management Key Features Supply Chain Management offers the following key features: Multisite Functionality - Associates all inventory transactions to the relevant sites in different geographical locations in a single company. Optimized Multichannel Fulfillment - Causes maximized inventory utilization and real-time order management. Cross-Docking Capabilities - Enables same-day order fulfillment and reduces costs. Business Process Synchronization - Enables immediate, online transfer of documents between suppliers, logistics operations, transporters, customers, and the manufacturer. Facility and Labor Optimization - Maximizes space usage and reduces order cycle time, product damage, and replenishment costs. Provides data to monitor and measure results. Performance Management - Enables measurement and action on key performance indicators. RFID Functionality - Increases efficiency from receiving through put-away, and enables creation of RFID-enabled tags at the pallet, case, or item level. Constant Replenishment - Supports min/max inventory levels on a constant basis, therefore accommodating smaller orders. 9

10 Introduction to Microsoft Dynamics AX 2012 Integrated Transportation Functionality - Considers multimode and multiroute shipment options. This causes more efficient movement through the whole supply chain. Quality Control - Monitors the quality testing requirements; manages non-conforming products and items and tracks and resolves customer or vendor problems. Enhanced Costing and Inventory Valuation - Improves the performance and accuracy of costing and inventory valuations. Multiple Answer What are the goals of the Microsoft Dynamics AX Supply Chain Management module? (Select all that apply) ( ) Increase revenues ( ) Reduce inventory ( ) Lower costs ( ) Improve time to market Warehouse Management Overview Warehouse Management provides all the functionality that is required to guarantee the warehouse is operating effectively and efficiently. Warehouse management includes capabilities for the following: Receiving items from both external suppliers and internal sources Structuring item storage Picking items before shipping Packing items for shipment or transfer Dividing warehouses into zones with different storage purposes Associating one or more warehouses to different sites Warehouse Management is completely integrated with other areas of functionality in Microsoft Dynamics AX, including Logistics, Inventory Management, and Production. Warehouse Management Key Features and Benefits Warehouse Management provides the following key benefits: Facilitates efficient internal and external transfers Optimizes warehouse storage area Reduces operational costs such as warehouse size and labor Responds quickly to customer demands 10

11 Appendix A: Microsoft Dynamics AX Functionality Warehouse Management offers the following key features: Serial number and batch number control Item registration and placement Multiple inventory dimensions Location control Arrival overview Shipment reservation Consolidated picking and delivery Staging Pallet transport Warehouse zones and hierarchy system Trade and Logistics Overview Trade and Logistics provides universal sales and purchasing functionality in addition to inventory management tools. These operations are fully integrated with other Microsoft Dynamics AX modules and support other Supply Chain Management and Production functionality. Trade and Logistics encompasses sales order processing, purchase order processing, and inventory management, in addition to elements of distribution and warehouse management. The Intercompany functionality saves time and money because it enables several subsidiaries or distribution centers to trade internally within one Microsoft Dynamics AX installation. When you use Intercompany functionality, you do not have to create manual sales or purchase orders, and you have more control and visibility regarding transfers. Trade and Logistics Sales Order Processing Selling, delivering, and invoicing products are necessary for every business. Microsoft Dynamics AX automates these processes. Companies can use the sales order to deliver and invoice goods to the customer, to print quotations, order confirmations, picking lists, packing slips, and invoices. As part of this process, Microsoft Dynamics AX does the following: Calculates applicable taxes and fees Checks stock Verifies credit for the customer Identifies and highlights obstacles 11

12 Introduction to Microsoft Dynamics AX 2012 The system guarantees that the customer obtains the appropriate price based on trade agreements, quantity discounts, and specials. If items are out-of-stock, onscreen messages offer suggestions and shipment information. Products can be reallocated from other orders for special customers. The system tracks items that are back-ordered, and then initiates shipment when items arrive from production or from the supplier. Throughout the sales order process, Microsoft Dynamics AX captures all the information needed for statistical analysis and commission payment. Sales Order Processing functionality supports tasks related to the following: Quotations Orders, including: o Multiple Ship To o Direct vendor-to-customer shipping o Enhanced delivery date control Returns Subscriptions Confirmations Picking lists Packing slips Invoices Credit notes Backorders Cash on delivery Commissions and taxes Statistics and reports Credit card processing Sales price agreements Throughout the system, sales orders can be entered in foreign currency. All posted transactions are transferred to domestic currency and hold information about the amounts in both domestic and foreign currency. Trade and Logistics Purchase Order Processing Purchase Order Processing tracks products being ordered and maintains vendor information. It updates inventory and the appropriate financial accounts when purchases are ordered, received, and invoiced. In addition, because of the recent enhancements, a company can invite suppliers to bid on specific products or services and issue a request for proposal (RFQ) to multiple vendors. The RFQ replies can then be recorded and transferred to specific purchase orders. 12

13 Appendix A: Microsoft Dynamics AX Functionality Purchase Order Processing supports the following purchase related tasks: Issuing requests for proposal (RFQ) Creating the purchase order Entering vendor and order information Entering items or services to be purchased Posting the purchase order, packing slip, receipts list, and invoice As part of this process, the system does the following: Calculates applicable taxes, fees and charges Updates stock values Verifies credit for the vendor Identifies and highlights obstacles Updates Accounts payable and General ledger Guarantees that prices are calculated using trade agreements, quantity discounts, and specials Generally, Purchase Order Processing supports tasks related to the following: Purchase requisitions Orders, with direct vendor-to-customer shipping Returns Requests Subscriptions Packing slips Receipt lists Invoices Backorders Supplier schedules Taxes Statistics Reports Throughout the system, purchase orders can be entered in foreign currency. All posted transactions are transferred to domestic currency and hold information about the amounts in both domestic and foreign currency. 13

14 Introduction to Microsoft Dynamics AX 2012 Trade and Logistics Inventory Management Inventory Management is central to Microsoft Dynamics AX Trade and Logistics functionality. Inventory information is linked to the following areas in Microsoft Dynamics AX: General ledger Accounts receivable Accounts payable Materials and Manufacturing resource planning (MRP) Human Resources Projects management Inventory Management manages the cost and quantities of items purchased and sold. This functionality supports retail businesses with merchandise inventory and manufacturing companies with finished goods, materials, and work-inprogress from the physical and financial standpoint. The system tracks inventory movement and enables computation of costs of goods sold. Multiple units of measure can be used for purchasing, selling, stocking, and pricing items. Inventory movements are tracked with quantities and costs. This causes controlled inventory. Note that with the multisite functionality activated, you can set up a preferred vendor for every item and use site specific prices for items. When processing a sales order, Microsoft Dynamics AX does the following: Calculates what is that is required to fill the order. Checks physical inventory. Produces necessary production, purchase, or transfer orders automatically. Calculates statistics on sales and purchases. As part of managing physical inventory, Inventory Management performs the following actions: Inventory tracking - Tracks any item in inventory through inventory dimensions, configuration specifications, and lot ID. Master Planning - Sets up the system to determine what is required to fill an order when it is received. Automated orders - Creates necessary production and purchase orders to satisfy customer orders. 14

15 Appendix A: Microsoft Dynamics AX Functionality Reservations - Reserve material to guarantee its availability for a specific order. Sales orders and purchases - As they affect inventory, they are reflected in inventory. Trade and Logistics Financial Analysis Also, as part of the inventory management process, Microsoft Dynamics AX supports these financial statistics: Inventory values can be calculated at any time. Inventory turnover amounts and rates can be calculated at any time. Quantity of items sold can be calculated at any time. ABC classifications enable analysis of which items are most profitable from a sales perspective, and the cost of carrying the item in inventory. Sales and purchasing forecasts can be produced by using quantities sold and planning estimates. Budgets can be calculated using purchasing trends. Trade and Logistics Key Features and Benefits Trade and Logistics provides the following key benefits: Sales, purchase, and inventory functionality is fully integrated with other elements of Microsoft Dynamics AX modules. Reserving inventory functionality is linked to sales and production orders. Financial data and statistics related to sales, purchasing, and inventory are current and available. Picking lists functionality creates picking lists only for available items, and at the same time considers customer service priorities. Direct shipping from vendor to customer expedites delivery. Trade and Logistics offers the following key features: Integrated sales processes and purchase processes. Master planning is integrated with purchase, production, and transfer order processes. In sales order processing, if items are out-of-stock, on-screen. messages offer suggestions and shipment information. Sales and purchase orders can be entered in foreign currencies. Multisite functionality. 15

16 Introduction to Microsoft Dynamics AX 2012 Matching Activity Categorize the following items: 1. Can be for both products and services. 2. In Sales Order Processing, this can be converted to a sales order. 3. Creates picking lists only for available items. 4. Sets up the system to determine what is required to fill an order when it is received. 5. Puts items on hold for production or sale, guaranteeing their availability for a specific order. 6. Determines which items are most profitable from a sales perspective, and the cost of carrying the item in inventory. 7. Can be calculated using purchasing trends. 8. Can be used for purchasing, selling, stocking, and pricing items. a. Purchase orders b. Release sales order picking c. Multiple units of measure d. Master Planning e. Quotation f. Budgets g. Reservations h. ABC analysis Master Planning Overview Master Planning uses data provided by the Microsoft Dynamics AX Trade and Logistics, Projects, Work Centers, and Production Series to do the following: Minimize inventory carrying costs Optimize product flow from suppliers through production to customers Run intercompany transactions Satisfy customer demands Improve overall business performance The finite and infinite capacity and material planning helps companies do the following: Project long-term needs Foresee fluctuations in demand Adjust their plans accordingly The shop floor can be managed more efficiently by reducing manual entry and web-enabling employee information such as time registration. By collecting and analyzing production-related information, such as work hours and production activities, companies can improve cost control. 16

17 Appendix A: Microsoft Dynamics AX Functionality Gantt charts are available in Master Planning to provide graphical illustrations of schedules related to a project for: Planning tasks Coordinating tasks Tracking tasks Gantt charts can be used, for example, to assess the consequences of staff rotations visually, through the graphic tool in a simple manner. Gantt plans can be defined to help envision the production flow from one computer to another. Master Planning Planning Across Multiple Sites Master Planning Forecast and Master Scheduling The Forecast Scheduling feature in Master Planning uses product forecasts to project long-term needs for materials and capacity. With Forecast Scheduling, companies can do the following: Foresee fluctuations in demand and adjust their plans accordingly. Simulate different product sales scenarios to obtain reliable pictures of gross demand. This provides a basis for negotiating better agreements with subcontractors and for fine-tuning production capacity. Forecast more accurate production plans to eliminate stockpiling inventory and still meeting customer delivery demands. The Master Scheduling feature provides an overview of short-term purchase, production, and resource requirements based on existing orders, forecast scheduling, or both. This process streamlines the whole production process. Master scheduling causes planned production, purchase, transfer of intercompany orders, and net requirements. Master Planning Intercompany Planning Companies that need a quick overview of demands and supply in the chain of internal companies can benefit from using Master Scheduling to create a crosscompany coverage plan. Master Scheduling between multiple companies is possible in Microsoft Dynamics AX under the condition that all companies are running in the same database. This functionality enables the chain of companies to do the following: React to a demand from the selling company Transfer to a purchase order Change the purchase order into a sales order in the related company Transfer the sales order into a purchase order in another related internal company Order line explosions and planned order functionality are fully functional between internal companies and part of the process can be automated to make transfers and scheduling easy and quick. 17

18 Introduction to Microsoft Dynamics AX 2012 Master Planning Key Features and Benefits Master Planning provides the following key benefits: Minimizes lead times, controls processing costs, and guarantees maximum on-time deliveries. Provides a detailed overview of inventory which assists in purchasing or producing the appropriate products at the appropriate time. Provides continual tracking, evaluating, and re-planning based on changing demand for materials and capacity. Master Planning offers the following key features: Forecast scheduling using product forecasts Finite/infinite scheduling Sales order explosion Futures and action messaging Support of multiple plans for forecast and master scheduling Support of master scheduling for intercompany Support of master scheduling across multiple sites Multiple Choice In what form does Microsoft Dynamics AX provide graphical illustrations of schedules related to a project? ( ) Microsoft Excel spreadsheets ( ) Microsoft Visio diagram ( ) Microsoft Project ( ) Gantt chart Multiple Choice Master Scheduling between multiple companies is possible in Microsoft Dynamics AX under what condition? ( ) All companies are running database servers in the same domain ( ) All companies share the same database of items, bills of material, routings, and so on ( ) Cross-company security roles must be created to provide access to each company's database ( ) All companies are running in the same database 18

19 Appendix A: Microsoft Dynamics AX Functionality Production Overview When selecting an ERP system, manufacturers are faced with a dilemma, where they can do one of the following: Select a solution that has strong manufacturing functionality at the expense of general business functionality Purchase a separate system, such as financial management, and integrate the two Microsoft Dynamics AX offers a solution with the full range of functionality in one system. By using Microsoft Dynamics AX, manufacturers can do the following: Manage the whole production process from availability of raw materials to the shipment of finished goods to customers. Maintain multiple production sites over different geographic locations and run them by a single Microsoft Dynamics AX company. Use the full benefit of a comprehensive production management solution, when combined with the Work Center functionality. Expand on the foundation of the Microsoft Dynamics AX Financials, Trade and Logistics, and Master Planning functionality. Extract data from anywhere in the whole production system. This enables immediate important managerial decision-making information. View a simplified overview of even the most complex production processes. This provides high-level information that is easy to access. Production Across Multiple Sites Production includes features that support a company's ability to maintain a variety of production sites distributed over different geographic locations. The production sites must be contained in a single legal unit, that is, they must be run by the same defined Microsoft Dynamics AX company. With a new dimension, the production unit, companies can now structure and assemble all their resources and data in groupings that are relevant to each site or company. The production unit provides the following: Reflects the physical layout of resources and data particular to each site or company. Is unique for each site or for each company. Simplifies BOM maintenance and identification of resources at each site or company. 19

20 Introduction to Microsoft Dynamics AX 2012 Is used to filter information (in key forms), to enable the user to print documents or view analytical data for each site or company. Is not stamped on any inventory transactions. The following illustrates one site that has two production units. Production Key Benefits Production provides the following key benefits: Real-time insight into manufacturing processes Manages stock more effectively Manages production more efficiently and profitably, and at the same time reduces overall costs Supports production at multiple sites Centralizes information about productions Customizes your production plans as situations occur Determines the best fit between a work center and a specific operation Saves valuable time by selecting the next best alternative resource for a production Gets an overview of all productions Selects the best route for an operation on a given day Controls resource use; makes sure a resource is available when needed Obtains a complete overview of the current status in your production environment Production Key Features Production offers these key features: Real-time monitoring of work-in-progress (WIP) Master Scheduling Multisite production support Real-time information and instant calculations Creates production order directly from a sales order line, with automatic selection in the valid date and quantity ranges Subcontracting Phantom BOM Configurable BOMs, selected by relevant date and quantity Advanced, flexible, and detailed scheduling Bottleneck scheduling 20

21 Appendix A: Microsoft Dynamics AX Functionality Available-to-promise (ATP) functionality Gantt planning functionality with ability to do drag-and-drop rescheduling Calculation of route scrap during production estimation Uses alternative resources for an operation in a scheduling conflict Ability to track the setup job or the process job per operation Flexible routing with simple or complex routes Manage primary and secondary operations Production progress and overview Forward and backward scheduling from various dates Detailed tracking of cost related to resources and throughput Lean manufacturing Use of kanbans to control production Uses mandatory combination of the date interval and the quantity interval in selecting the active versions of the BOM and routing Suggestion of changes to BOMs and Routings based on quantity (quantity-depending BOMs and route versions) BOM and route planning in the multisite environment Service Management Overview Service Management is designed for companies that want to manage their service operations as a business. Service Management provides capabilities best suited for: Business-to-business service instead of business-to-end user service Complex service arrangements that consist of repetitive and nonrepetitive service tasks on manufactured objects, instead of simpler routine services such as cleaning or security Service Management has a high degree of integration to the existing functionality in the Project accounting module. This integration enables service managers to track the exact costs of performing a service with regard to hour, expense and item consumption, and how much revenue is earned from a particular service transaction. By tracking these costs, managers can optimize service levels and the revenue stream the company gains from performing services. Based on the recent enhancements, Service Management can now use the information residing in the Supply Chain Management (SCM) modules. This enables faster work flow for users of Service Management, a better understanding of where the service customer is today, and a deeper registration of Sales related data into the Service Management module. 21

22 Introduction to Microsoft Dynamics AX 2012 Service Management Through Web Service Management provides a dynamic management of service orders and service agreements both for customers and service companies. With Technician Portal and Customer Portal, both service companies and customers can manage and oversee service orders, service agreements, and more through a web portal. Through the Technician Portal, the service technician and service company can handle daily operations and communication without relying on physical nearness. The Technician Portal enables you to do the following: View the data relevant for the technicians execution of service Connect to the service company to provide a record of the service made By using the Customer Portal, the customer can seek information about both past, current, and future service agreements and service orders through the Web. Through the Customer Portal the customer can also create new service orders. The Customer Portal enables the Service customer to do the following: View the data relevant for the service operation done on service items Connect to the service company to initiate a service request Service Management Key Benefits Service Management provides the following key benefits: Manages daily operations and communication without relying on physical nearness of the service technician and service company. Creates service agreements; service orders are generated periodically as specified in the agreement. Creates service level agreements; service level agreements enable to track service ordering and evaluate the Service department performance. Creates ad hoc repair orders. Tracks changes made to service objects that use BOM versions. Tracks repairs, and gathers statistics on repair items and costs. Creates repair BOMs, and subsequently modifies these BOMs. Creates service subscriptions and accrues revenue from these subscriptions appropriately. 22

23 Appendix A: Microsoft Dynamics AX Functionality Service Management Key Features Service Management offers the following key features: Service subscriptions, including revenue accrual BOM versioning Service agreements Service level agreements Service orders Repair Customer Portal Technician Portal Web service orders Sales to service integration Service dispatcher Matching Activity Match the Service Management Portals to the functionality they provide in Microsoft Dynamics AX 2012: 1. Technician Portal 2. Customer Portal 3. Technician Portal 4. Customer Portal a. Connect to the service company to initiate a service request. b. View the data relevant for the service operation done on service items. c. Connect to the service company to provide a record of the service made. d. View the data relevant to execution of service. Project Accounting As the demand for faster and better service increases, so does the pressure to automate processes and balance costs associated with projects and service requests. For the growing number of companies that provide services to customers, either as their core business or in addition to their products, the challenge is to effectively manage knowledge, opportunities and resources. Project Accounting provides a strong platform to help companies effectively administer projects and achieve the results that they want. 23

24 Introduction to Microsoft Dynamics AX 2012 With Microsoft Dynamics AX, companies have the tools to facilitate: Registration Invoicing Analysis Project Accounting provides a strong platform to help companies plan, monitor, and follow up on projects. The module supports a variety of functions including managing time and materials in projects and advanced fixed price projects. Because of integration with Microsoft Office Project Server TM 2007 and the Microsoft Dynamics AX Project and Supply Chain Management modules, companies now have even more options for managing their projects effectively. Project Accounting Analyzing Projects With Project Accounting, companies have many ways to analyze their projects. This includes the following: Work Breakdown Structure (WBS) which enables an activity hierarchy and provides an overview of activity deliverables. Flexible project hierarchy structure that includes a graphical overview, and details fixed priced projects. Statistics provide the necessary overview of the financial status of a project. An easy way to view both invoiced and non-invoiced transactions using Invoice Control. Committed cost (any cost that will be charged to a project but has not been charged yet) is tracked against projects and enables project costs to be controlled more efficiently. An easy way to view the efficiency rates of employees and billable hours being charged to a project using Hour Utilization. View and forecast the cash flowing in from project invoices, sales orders, subscriptions, and fees, and cash flowing out from project purchase orders, item requirements, expenses, and hours using Cash Flow. With the trade agreement functionality implemented, sales prices and discounts can be set up and applied to groups of projects. Project data can be easily exported to Microsoft Excel and presented in pivot tables. Many reports are available to show actual versus budget reporting. 24

25 Appendix A: Microsoft Dynamics AX Functionality Project Accounting Internal Projects Both internal and external project types are supported in Project Accounting. For internal projects, the following three configurations are available: Time - gathers hours without ledger postings, for example, holidays and training. Cost - posts all costs of hours, expenses, and items to the Profit & Loss (P&L) statement and cannot be capitalized. Investment - uses the estimate system to capitalize the costs of hours, expenses, and items during the project. On elimination, the work-in-progress (WIP) value can be posted to a: o Fixed assets account o Ledger account o New project as an expense transaction The main characteristics of internal projects are as follows: They do not have customers and cannot be invoiced. On-account transactions are not allowed. Project Accounting External Projects For external project types, two billing methods are available: Time and Material Fixed Price The flexible project hierarchy structure for external projects enables companies to work with parent/child projects. The parent/child project combinations can consist of any of the external project types. This enables the combination of, for example, a parent project of the type Fixed Price with a child project of the type Time and Material. This flexibility enables companies to invoice costs to the customer who are not a part of the fixed price project. Project Accounting enables efficient project management with full financial overview and control. Project Accounting Key Features and Benefits Project Accounting provides the following key benefits: Efficiently establishes and manages internal and external projects Closely manages the financial aspects of projects 25

26 Introduction to Microsoft Dynamics AX 2012 CRM and HRM Manages and monitors multiple projects Monitors activity deliverables and creates tasks for project activities Project Accounting offers the following key features: Work Breakdown Structure (WBS) Project hierarchy structure Registration of hours, costs, and item consumption Registration of additional revenue and committed costs Converts project quotation lines into project forecasts Creates production orders directly from a project and automatically creates and posts project transactions Trade agreements Easy viewing of invoiced and non-invoiced transactions Invoicing of hours, costs, revenue, and items Compares the project economics to the budgeted amount Consultant self-service web sites Multiple Choice Internal projects can be invoiced. ( ) True ( ) False Customer Relationship Management (CRM) may mean many things to many people. CRM is actually a plethora of concepts, ideas, and strategies offered by a large array of CRM specialists. The essence of CRM usually includes the following three disciplines: Know your customer Act on what you know Learn about what you know Therefore, the main objective of Customer Relationship Management is to keep and grow customers. Microsoft Dynamics AX can offer many new features in the CRM module that enable a clearer view of a company's sales processes and helps companies to do the following: Better manage and conduct their sales processes Better document processes and procedures for future use 26

27 Appendix A: Microsoft Dynamics AX Functionality The Sales and Marketing functionality in the CRM module emphasizes the salesperson and the sales organization. It gathers all a company's business information and keeps it structured and easily available for use in supporting the sales and marketing efforts of the company. This helps companies gain insight that is required to identify their customers' demands, and to make optimal sales and marketing decisions. CRM Centralized Customer Information Business relationships can be managed more effectively with all business information that is stored centrally in one database. The sales force can plan and evaluate activities and easily spot new opportunities because of the structured and available information. By using this detailed information, they can create, administer, and distribute campaigns directly from Microsoft Dynamics AX. With the global address book in CRM any employee can be a customer expert. The global address book is a repository for every person or organization that your organization comes in contact with. Customers can be linked to each other across the whole Microsoft Dynamics AX 2012 system. Multiple entities across different companies in the enterprise can also be tracked in the address book. Information about all the following entities is tracked: Customers Vendors Employees Business relations Contact people Competitors CRM Key Areas The four main areas of the Sales and marketing functionality in the CRM module are as follows: 1. Sales Force Automation (SFA) - This includes functionality regarding external business contacts in Microsoft Dynamics AX that are named business relations, and their employees, referred to as contact persons. SFA also includes activities performed by the sales personnel in connection with the business relations. 2. Sales Management (SM) - This deals with the sales performance of individual sales personnel, sales units, and the whole company. 3. Marketing Automation (MA) - This focuses on gathering a group of activities; for example, messages and direct mailings to a group of selected business relations, therefore, gathering information about a whole marketing campaign. 4. Telemarketing (TM) - Telemarketing gathers a group of business relations and administers contacts or surveys to this group by telephone. 27

28 Introduction to Microsoft Dynamics AX 2012 CRM Automating Sales Processes Even on the road, the sales force has access to important information. By using a mobile phone, a handheld phone, or a browser, they can access customer-related information such as: Projects Invoices Order history Current total revenue With the Microsoft Dynamics AX Enterprise Portal, most sales force activities in the application can be performed through the portal. Enterprise Portal significantly strengthens functionality by: Giving users access to information regardless of their physical location Increasing the usability for members of the sales force, therefore, increasing efficiency For companies, this can help increase the bottom line and save money by: Cutting moving expenses Reducing office space Reducing the need for furniture Reducing incidentals that support employees in an office setting CRM includes a price simulation tool to aid sales personnel in calculating and saving various pricing scenarios for sales orders. The price simulation tool enables discounting on a total quotation basis or on a quotation line basis and calculates the effect of discounting on the contribution margin. CRM empowers companies to maximize benefits from all their business relationships and generate profit. Self-service portals for sales representatives and customers are fast and easy to start. Customers can use these portals to do the following: Browse through personalized product catalogs View the shipping status Maintain their own contact information Because CRM saves data in one centralized database, individuals and departments can share information effortlessly. For example, the sales manager can access projects, invoices, order history, and current revenue immediately without the sales team needing to generate special reports. The result of the centralized database is: Better pipeline management Improved control and co-ordination of sales force activities An overall view of contact with customers 28

29 Appendix A: Microsoft Dynamics AX Functionality All areas of the company can also benefit from the synchronization between CRM and Microsoft Outlook by synchronizing these three objects: Tasks Calendar appointments Contacts With CRM, companies are in constant contact with customers. By knowing customers and their needs, companies can deliver the exact products and services the customers seek and gain their loyalty. CRM Key Benefits CRM provides the following key benefits: Achieves better efficiency and reduces cost Centralizes the storage of data and tracks business information Gains maximum value from customers by better understanding their needs Optimizes sales force knowledge with more thorough analysis and better efficiency Improves the business health of the company CRM Key Features CRM offers the following key features: Single database, single source code, single set of business logic modified using the same tool box Uniting ERP and Customer Relationship Management (CRM) systems Marketing Automation Sales Force Automation Sales Force Automation through Enterprise Portal Sales Management Competitive quote tracking Price simulations Project quotation integration Business Analysis Tracking business information through the Global address book and SMS integration Microsoft Outlook synchronization with tasks, appointments, and contacts 29