Inventory Value Report for Microsoft Dynamics AX WHITEPAPER

Inventory Value Report for Microsoft Dynamics AX WHITEPAPER

Inventory Value Report Whitepaper Junction Solutions documentation 2012 All material contained in this documentation is proprietary and confidential to Junction Solutions, Inc and subject to the nondisclosure provisions of the applicable Junction Solutions, Inc agreement. This material is for informational purposes only. Junction Solutions, Inc is not liable for any damages in connection with the use of this information. No part of this documentation may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including, but not limited to, electronic, graphic, mechanical, photocopying, recording, or otherwise without the prior written permission of Junction Solutions, Inc. This documentation is subject to change without notice, and Junction Solutions, Inc does not warrant that the material contained in this documentation is free of errors. Any errors found in this document should be reported to Junction Solutions, Inc in writing. Proprietary and Confidential Page 2 of 10 2012

Inventory Value Report Whitepaper Introduction... 4 Features and Benefits... 4 Inventory Value Report Configuration... 4 Inventory Value Report... 5 Potential Conflicts Inventory and General Ledger Report... 5 Close Non-Financial Transfers... 5 Installing the Inventory Value Report Framework... 6 Using the Inventory Value Report Framework... 7 Inventory Value Report Configuration... 7 Inventory Value Report... 7 Potential Conflicts Inventory and General Ledger Report... 8 Close Non-Financial Transfers... 9 Proprietary and Confidential Page 3 of 10 2012

Inventory Value Report Whitepaper Introduction In Microsoft Dynamics AX 2012, Microsoft introduced a new inventory reporting framework that supports not only inventory reconciliation but also labor and overheads reconciliation in the same report. The new reporting framework is the replacement of the Physical Inventory by Item Group report that was used in earlier released to reconcile the inventory subledger to the general ledger. Due to popular demand by the general AX Community, Microsoft actually back ported this new reporting framework along with some other key inventory value features to Microsoft Dynamics AX 2009. This white paper reviews the key benefits and use of the new reports and features. Features and Benefits The Inventory value report is not just a report, it is a whole framework. It includes a form where you can set up and configure multiple versions or layouts of the report, the actual inventory value report, the Potential conflicts report, and another new feature called Close non-financial transfers. The following information includes a high level overview on each and where you can find additional information. Inventory Value Report Configuration Before you can begin to use the new inventory value report, you must create at least one report configuration. The new configuration tool allows you to make several report versions. This can be useful, for example, if you reconcile the inventory subledger to the general ledger by item group. You could create one report version with all item groups for a total reconciliation that only prints the details for each item group. You could create another report version will items for a total reconciliation that prints the details for each item ID and includes subtotals by item groups. You could also create one report version for each item group that prints the details of each transaction for each item. You could create additional version that do not include any totals which can make exporting the report to Microsoft Office Excel easier. There is no right or wrong answer to the number of report configurations that you should create. Consider how your current period-end reconciliation process works and try to model the reports after your current process. Proprietary and Confidential Page 4 of 10 2012

Inventory Value Report Inventory Value Report Whitepaper The new inventory value report includes valuable information about reporting the inventory value, reconciling the inventory subledger to the general ledger, and provides visibility into the movements of your inventory. With the Inventory value report framework you can: Create a report configuration that is tailored for a specific purpose. Save a report configuration with a unique ID so that it can be used multiple times. Add ranges to filter data when you run a report. Potential Conflicts Inventory and General Ledger Report The Potential conflicts inventory and general ledger report validates if transactions from Inventory and General ledger agree with the parameter settings in Accounts payable, Accounts receivable, Production, and Inventory. The report lists of any transactions that violate one or more rules. For each violation, a recommendation for a corrective action is printed. Close Non-Financial Transfers Microsoft has added a new parameter that allows you to close non-financial transfers. Basically what this means is that the inventory close will settle a transfer between two inventory dimensions that has no financial impact before the transactions with financial values are updated. This has two very apparent benefits of increased performance and fewer records that are created by the inventory close. Resources for the New Features Microsoft has published a full white paper describing the functionality of the Inventory value and the Potential conflicts inventory and general ledger report for AX 2009. You can download this whitepaper from the following location: http://www.microsoft.com/enus/download/details.aspx?id=16245. We have also included a PDF copy of this whitepaper with the June 2012 Customer Connection newsletter. Additionally, Microsoft has published a full white paper describing the functionality of the Close non-financial transfers feature. You can download this whitepaper from the following location: http://www.microsoft.com/en-us/download/details.aspx?id=12174. We have also included a PDF copy of this whitepaper with the June 2012 Customer Connection newsletter. Microsoft also recently published a new Hands-On Lab: Costing and Inventory Valuation in Microsoft Dynamics AX 2012. You can view and download the new HOL in the following location: https://mbs.microsoft.com/customersource/training/trainingmaterials/student/courseholci vax2012.htm?p=61 The new course covers the details of Costing and Inventory Valuation in Microsoft Dynamics AX 2012 and presents the information in a way that has never been done Proprietary and Confidential Page 5 of 10 2012

Inventory Value Report Whitepaper before. Much of the information is very similar for AX 2009 and can be used as a good resource for additional information. Lab 6 primarily focuses on the reporting and reconciliation of the inventory. Installing the Inventory Value Report Framework If you are using Microsoft Dynamics AX 2012, the inventory value report and framework is included out-of-the box and there is no need to install anything. If you are using Microsoft Dynamics AX 2009 Service Pack 1 with Hotfix rollup 5 or later, the inventory value report and framework is included and there is no need to install anything. However, if you are using any other version of Microsoft Dynamics AX 2009 you must download and install the hotfix rollup or request the hot fix from support by contacting support@junctionsolutions.com. Hot fix rollup 5 can be downloaded from CustomerSource at the following location: https://mbs2.microsoft.com/knowledgebase/kbdisplay.aspx?scid=kb%24enus%24982812 Note: The impact of installing any hot fix or roll up can vary from company to company. If you require assistance installing a hot fix, please contact support by emailing support@junctionsoltuions.com. Best Practice: It is strongly recommended that you install any hot fixes or new software in a testing environment before installing into a production environment. Proprietary and Confidential Page 6 of 10 2012

Inventory Value Report Whitepaper Using the Inventory Value Report Framework Although the user interface is slightly different between AX 2009 and AX 2012, the same general steps are used in both versions to run the Inventory Value report. Microsoft Dynamics AX 2009 The following topics review at a very high level how to access and use each feature in Microsoft Dynamics AX 2009. Inventory Value Report Configuration 1. Open Inventory management > Setup > Inventory value report. 2. Click New to create a new report layout. 3. Enter a unique ID and Name for the report. 4. Optionally, select a Date interval code. This will specify the date range for the report. This is useful if you run the report in Batch mode. 5. Click the Columns tab and select the options for the report layout. 6. Click the Rows tab and select the options for the report layout. 7. Click Preview to see a sample of the report layout. Note: The output from the Preview is a sample only and does not include any real data from your system. The Preview should not be used to reconcile the inventory subledger to the general ledger. Resources and Resource Groups The new report framework introduces a new concept of resources and resource groups. In the context of this report, a Resource refers to an Item ID, Work center ID, or Costing sheet node. A Resource group refers to an Item group, Work center group, or Cost group. For more information about this report in Microsoft Dynamics AX 2009, refer to the Inventory Reporting and Reconciliation whitepaper. Proprietary and Confidential Page 7 of 10 2012

Inventory Value Report Inventory Value Report Whitepaper 1. Open Inventory management > Reports > Status > Inventory value report. 2. Select the report layout that you want in the Identification field. 3. Verify the From date and To date. 4. Optionally, click Select to filter the report criteria. 5. Click OK to run the report. Depending on the report configuration and options that you select, one or more dialog boxes may open to warn you about performance. For more information about this report in Microsoft Dynamics AX 2009, refer to the Inventory Reporting and Reconciliation whitepaper. Potential Conflicts Inventory and General Ledger Report When the inventory value report does not reconcile with the general ledger accounts for your inventory, you can use the Potential conflicts report to help identify and resolve differences. 1. Open Inventory management > Reports > Setup > Inventory value > Potential conflicts-inventory and general ledger. 2. Select a Date interval code or enter a From date and To date. 3. Select the general ledger account that represents your total inventory value in the Total inventory account field. 4. Optionally, click Select to filter the report criteria. 5. Click OK to run the report. For more information about this report in Microsoft Dynamics AX 2009, refer to the Inventory Reporting and Reconciliation whitepaper. Proprietary and Confidential Page 8 of 10 2012

Close Non-Financial Transfers Inventory Value Report Whitepaper After you have decided to enable this feature, all you need to do is select the check box in the Inventory management Parameters form. 1. Open Inventory management > Setup > Parameters. 2. On the General tab, select the Activate closing of non-financial transfers check box. 3. Click Yes to activate the feature. For more information about this feature in Microsoft Dynamics AX 2009, refer to the Close Non-Financial Transfers whitepaper. Microsoft Dynamics AX 2012 Inventory Value Report Configuration 1. Open Inventory and warehouse management > Setup > Costing > Inventory value reports. 2. Click New to create a new layout. 3. In the ID field type a unique identifier such as "IVR". 4. In the Name field type a description such as "Inventory Value by Site and Warehouse." 5. In the Date interval field, select CY for the current year. 6. In the Dimension set field, select ACC for the Ledger account dimension set. 7. Click the Columns FastTab, and then select the options for the report layout. 8. Click the Rows FastTab, and then select the options for the report layout. 9. Click Preview to see a sample of the report layout. Note: The output from the Preview is a sample only and does not include any real data from your system. The Preview should not be used to reconcile the inventory subledger to the general ledger. Resources and Resource Groups The new report framework introduces a new concept of resources and resource groups. In the context of this report, a Resource refers to an Item ID, Resource ID, or Costing sheet node. A Resource group refers to an Item group, Resource group, or Cost group. For more information about this report in Microsoft Dynamics AX 201, refer to Lab 6 in the Hands-On Lab: Costing and Inventory Valuation course. Proprietary and Confidential Page 9 of 10 2012

Inventory Value Report Inventory Value Report Whitepaper 1. Open Inventory and warehouse management > Reports > Status > Inventory value > Inventory value. 2. In the ID field, select the report layout that you want. 3. Optionally, you can click Select, and the enter criteria such as Site, Warehouse, Item group and so on. 4. Click OK to run the report. Depending on the report configuration and options that you select, one or more dialog boxes may open to warn you about performance. For more information about this report in Microsoft Dynamics AX 201, refer to Lab 6 in the Hands-On Lab: Costing and Inventory Valuation course. Potential Conflicts Inventory and General Ledger Report 1. Open Inventory and warehouse management > Reports > Status > Inventory value > Potential conflicts - Inventory and General ledger. 2. Select a Date interval code or enter the From date and To date. 3. Select the total inventory account in the Main account field. The account that you select represents inventory in the General ledger and it is used in multiple validations. 4. Click OK to run the report. For more information about this report in Microsoft Dynamics AX 201, refer to Lab 6 in the Hands-On Lab: Costing and Inventory Valuation course. Close Non-Financial Transfers After you have decided to enable this feature, all you need to do is select the check box in the Inventory and warehouse management parameters form. 1. Open Inventory and warehouse management > Setup > Inventory and warehouse parameters. 2. On the General FastTab, select the Activate closing of non-financial transfers check box. 3. Click Yes to activate the feature. For more information about this report in Microsoft Dynamics AX 201, refer to Lab 5 in the Hands-On Lab: Costing and Inventory Valuation course. Proprietary and Confidential Page 10 of 10 2012