Self-Introduction:

➢ I am (or) My name is Jagadeesh

➢ I am from Nellore, A.P
➢ My highest qualification is B-Tech from JNTUA in the year 2012
➢ I am quite in Microsoft Dynamics AX
➢ I am carrying an experience of 3+ Years working as AX Functional consultant, currently am working
for Tetrasoft India Pvt Ltd since 2013. I have been involved in 2 Implementation projects and 1
Support project.
• Then coming to Axapta am familiar with modules of Trade and Logistics (T & L).
• Hands on Experience in Functional Modules - PIM (product information management), Inventory
management, Purchases and Sales.
➢ Coming to my family there are fourPur members father is former, mother is housewife and sister
she is married.
➢ I have couple of Hobbies playing cricket and listening music.
That’s all about me!!!!!!!!!!!!!!

o [I have been working as AX Functional consultant past 3+ years; currently I am working for Tetrasoft
India Pvt Ltd since 2013. I have been involved in 2 Implementation projects and 1 Support project.
o I was completed my graduation from JNTUA in the year 2012
o Then coming to Axapta I am familiar with modules of Trade and Logistics (T & L).
o Hands on Experience in Functional Modules - PIM (product information management), Inventory
management, Purchases and Sales.
o Having good knowledge on R3 Environment and Ability to learn new technologies.
o Finally I can say that I am having good knowledge in Ax functional concepts]

Roles and Responsibilities

• Involved in client requirements and Mapping business cycles into MS Dynamics AX and prepared
Functional requirement documentation.
• Identification of GAP and Analyzing GAP fitment and preparation of func tional design
documentation.
• Interaction with Developers and assisting them in Design.
• Creation of Items, Sites, Warehouses and its related setups.
• Configure the Inventory model Groups and Dimension Groups
• Creation of vendors and their balances
• Configure purchase related setups
• Creation of customers and their balances
• Configure the Sales related setups.
• Involved in User Trainings and Data Migrations.

Agile Methodology:
1) Kick off Meeting
2) FRS (Functional Requirement Specifications)
3) FRD (Functional Requirement Document)
4) GAP Analysis
➢ Alternative solution
➢ Customization
(There is no need of Alternative Solution & Customization then it called as Straight FIT)
5) FDD (Functional Design Document)
6) Development
7) Testing (Developer -Unit Testing & Functional - Functional Testing)
8) User Training
9) UAT (User Acceptance Testing)
10) Data Migration
11) Go-Live
12) Support (L1, L2, L3)

KICK OFF MEETING:

• It Is The Initial Meeting On The Client Site. Here Our Management People With Both Functional And
Technical Should Attend The Meeting On The Client Site.
• By This We Can Able To Identify The Infrastructure Of The Client
• Primary Interaction With All The Departments In The Client Site
REQUIREMENTS GATHERING
• Here The Client People Are Provided Some Basic Requirements For The Project Implementation.
• This Information Includes The Complete Functionality Of Their Organization And What They Want To
Develop In Our Ax
FRS (FUNCTIONAL REQUIREMENT SPECIFICATION)
• This Is The Complete Document Regarding The Client Requirements.
• Detailed Information Is Mentioned In This Document
FRD (FUNCTIONAL REQUIREMENT DOCUMENT)
• The Actual Customization That We Can Able To Provide Based On Ax Functionality(Based On Ax
Default Features)
• Based On FRS We Will Prepare FRD
GAP ANALYSIS
• If the client Requirement doesn’t match with ax features then It can be called as GAP
Alternative Solution/Customization
FDD (FUNCTIONAL DESIGN DOCUMENT)
• Designed By Functional Consultant To Explain The Requirement For The Technical People
• It Consists Of Path And Screenshots Which Explains The Total Requirement
TDD (TECHNICAL DESIGN DOCUMENT)
• Prepared By The Technical People
• It Consists Of Code Information For The Customization
DEVELOPMENT
• Based On The TDD The Technical People And Functional People Do Some Customizations In Order
To Fulfill The Gap
CUSTOMIZATION OF FORMS AND REPORTS
• Based on the client requirement we need to do the customization of forms and reports
TESTING
• After Development We Need To Test The Functionality Whether It Is Showing Accurate Values Or
Not
• We Need To Identify The Functionalities Of This Module Which Is Integrated With Other Modules
DEPLOYMENT
• The Actual Application With Customization Is Installed On The Client Site
MIGRATION OF HISTORICAL DATA
• If The Client Desires To Bring The Historical Data, This Step Will Be Require
END USER TRAINING
• Here We Have To Provide The Training For The End Users Regarding The Implementation Of Axapta
• Providing The Onsite Training With User Manuals
• SYSTEM WALK THROUGH ( Parallel run or Pilot run)
• Here The Sample Transactions Are Entered By The End Users. To Test Their Knowledge And
Functionality
GO-LIVE
• The Actual Implementation Of Ax In Client Site Is Started With Their Data
• It Is The Sign Off Phase With The Client
POST IMPLEMENTATION
• We Have To Provide The Support For The Client Based On The Agreement

Change Request Process:

➢ System Functionality doesn't meet client Requirements then it called as CR-Process.
➢ CR-Process comes to picture at Any Stage (OR) Any Phase.
➢ CR-Process comes to Development Process, it doesn't comes to New-Implementation.
➢ CR-Process is chargeable (Depends upon request).

What is item model group?

Item model groups contain settings, how items are controlled and handled on item receipts and
issues. The item model group defines the costing method, and some settings about how that behaves.
The item model group has lots of other parameters. Some important ones relate to if the item is
stocked/non-stocked, whether it can go negative, too many to list.

What is an Item Group, How it is useful?

Logically grouping of items in to common group. Item groups are used to control the ledger accounts
that are used at different times during day-to-day operations.
For example, if you have different inventory accounts for different types of item in the G/L, these items
will need to be in different items groups.

1) What project minds methodology using for implementation?

A) Agile Methodology Requirement>Process>Deliver
2) What is a Gap? Give five examples?
A) If the client Req. doesn’t match with ax features then It can be called as GAP
Alternative Solution/Customization
Example: Customizations
1. Client asked The Employee details in Organization Administration Form [Technical]
2. Client request PIM> Area> Product no.>> Product name, Warehouse, Site[Technical]
1) Sales price modified functionality report?
A) We can see the employee, who can change the sales price.
2) Sales wise invoice reports?
A) Address changes and Conditions mention.

3) How to Fit those Gaps in AX?

A) By using Alternative Solution/Customizations

2. What is an FRD and How to prepare the FRD?

> Gathering of Functional requirements are one of the key role documentation process which is done by
the process FRD gathering process by the functional consultant.
> With the understand of current business cycle of the client we advise some of the most eminent
sophisticated business flows in our AX which helps the client not to change of the old structure.
What is Data Migration?
Data migration is a process moving from Legacy system to Microsoft Dynamics AX (one company to
another). We are using Data Import/Export Framework that helps you export data and import it into
Microsoft Dynamics AX. You can import data into AX from any file, AX system. Data import is a complex
process.
(We recommend that you not import transactional data or historical data into Microsoft
Dynamics AX. Instead, close all open transactions before import, if these transactions can
be closed. Maintain the database that contained your previous transactional data, for
reporting and compliance purposes.)
1. Post implementation support activities?
> Training on request on specified modules for end users.
> Adding the additional roles for the users.
> Solving the issues which are raised by end user.
> Preparing the FDD for enhancements.
> Testing the developed enhancement functionalities.
> Business intelligent support after implementation / go live.
3. Do you have involved in preparation of FRD?
> Yes I do, I have been involved in the FRD gathering in/from my 3rd project.
4. What were the fields/components u used in FRD preparation?
> Requirements, fusible, non-fusible, customization, user comment.
5. What is an FDD and how to prepare the FDD?
> Functional design documentation process is the second phase process after the FRD freeze.
In this process ;
> There is an involvement of technical leads in the preparation of FDD.
> The functional design describes the logical system flow, data organization, system inputs and outputs,
processing rules, and operational characteristics of the product from the user's point of view.
> During this stage, the overall structure of the product is defined from a functional viewpoint.
6. About installations and configurations of the system?
> Yes I do involved in the system installation and configuration process once our admin team finishes the
process I will be the responsible one and authorized to test the configuration and show the same to the
clients.

4) What are the strengths there in AX? (OR) Which areas you comfortable in AX?
A) The main strength of AX, It can be useful for Large, Medium/Small Scale industries
I am comfortable in Procurement, PIM, and AX Testing

5) What are the vouchers generated when you invoice a product from the sales order?
A) Product receipt & Goods receipt

6) Difference between Product and Product Master?

A) Product is unique; it doesn’t have any dimensions/features. It’s a core product. Product master
has Characteristics like Color, Cong, Size, and Style. It has all the product dimensions.

7) How comfortable are you Accounting Debit and Credit concepts?

 ___________________________

8) What is Credit and Debit at the time of Sales Invoice?

A) Credit, it depends on sales journal. [Depends on Vendor group]
Debit, its cash & carry

9) At the time of Invoice we want to know, what is the Voucher Rentie? What has to be Credited and
what has to be debited?
A) Invoice and product receipt is debited, _______________________________

10) What are the issues you are faced at support time? Give five examples?
A) I am in to procurement when I was in Testing Team
Technical issue, contacted project lead.
______________________________________________________________

Q: Purchase Cycle (or) Procurement cycle?

A: When it comes to Procurement and Sourcing every company is built from unique process.
My client want the following scenario regarding the purchase cycle:
1. The “purchase Requisition” will created.(Internal Documents)
2. “Request for Quotation”.(The company will create RFQ that will be circulated to different
vendors, once the vendors is respond to the quotation and company will be decide the best one )
3. Once the vendor is finalized, company will place an “Purchase order”.(P.O is External Document).
4. On the delivery date the vendor will deliver the goods at the specified location, In this time the
company will receive a document called as “Product Receipt”.
5. When the goods are received it will prepare a “Invoice”.
6. The last step of Purchase cycle is “Vendor Payments”.

Q: When U Create a Purchase order What are the accounts may impact?
A: Inventory, Inventory clearing, Vendor, Vendor clearing, Bank, Sales tax and carriage inwards.

Q: When U Create a sales order What are the accounts may impact?
A: Inventory, Inventory clearing, Customer, Customer clearing, Bank, Sales tax and carriage inwards.
Q: Do U have Knowledge in costing method?
A: Costing Method is to calculate the cost of goods to be sold.
There are Three types of Costing Methods ;
1. Weighted Average method
2. First In First Out (FIFO) method
3. Last in First Out (LIFO) method

Q: What is the difference between MARKETING CAMPAIGN and E-MAIL CAMPAIGN?

A: A Marketing campaign consist of specific activities designed to promote a product service or
business. A marketing campaign is a coordinated series of steps that can include promotion of a product
through different mediums (television, radio, print, online) using a variety of different types of
advertisements.
A Email campaign is a coordinated set of email marketing messages delivered at intervals and
designed to escalate a persuasive argument to purpurchchase, subscribe, download, etc.

Q: Do you ask something?

A: yah, thanks for asking me. with your kind permission i would like to have my feedback,
so that i can analyze and improve my strengths and rectify my shortcomings.

Q: what type of charges and how do you define charges in AX ?

A: We can say charges types as:
➢ Invoice fees
➢ freight charges
➢ insurance charges
➢ Auto Charges
➢ Misleneous Charges

Q: What are the storage Dimensions?

A: Site, WareHouse, PalletId, BatchNumber, SerialNumber.

Q: What are the Item Dimensions?

A: Configuration, size, Color.

Q: Tables in inventory?
A: InvetTable, InventTableModule, InventItemLocation, InventDim, InventTransBOMTable,
WMS Shipment. InventColor, Inventsize.

Q: Architecture of MS dynamics AX.

A: Ax has the three tier architecture 1.client 2.AOS(Application Object Server) 3.DataBase.

Q: How many types of dimensions in inventory?

A: Item dimensions – Configuration, size, color, style.
Storage dimensions – Site, Ware house, PalletId, Location.
Tracking dimensions – Batch number, Serial Number.

Q: What is shipment template?

A: This topic applies to features in the Inventory management module. It does not apply to features in
the Warehouse management module.
A shipment template is a collection of default settings that are used when a new shipment is created.
The more information that is specified on the shipment template, the easier it is to create a new
shipment. You can create any number of shipment templates so that as little information as possible
must be changed on the individual shipments.
The mandatory fields on a shipment template include the following:
• Shipment template
• Sequence ID
• Site
• Warehouse
Shipments can be created manually or automatically. Automatic creation of shipments is a setup option
in the Shipment templates form. When an output order is created, the existing shipment templates are
searched for a site and warehouse that match the output order. If a template is found, a new shipment
is created, and the output order is added to it. If more than one template matches the output order,
the Priority field value for the template is used to determine the template with the highest priority,
where a value of 1 is the highest priority. That template is used to create the shipment.
If no template is found, you can create a shipment manually in the Shipments form, or you can add it to
an existing shipment

Q: What is product category in AX 2012?

A: used to classify products for the reporting purpose and analysis. Categories can be defined as per
Organizational needs. In AX 2012 there is no limit on number of levels in a given Category Hierarchy.
Once Category is defined it is attached to a product and it is pulled up on all the Purchase / Sales
transactions. Hence it enhances the reporting capabilities for an enterprise.

Inventory Item model group form check boxes:

Stocked product:
If the box is checked then the product will be tracked in the inventory (if that product has the same
Item Model Group attached) and if unchecked it will not be tracked in the inventory.
More specifically, if Stocked Product check box is checked then Inventory à Transaction will be
displayed and if not then the Inventory à Transaction will be grayed out.

Physical Negative Inventory:

If checked, the system will allow you to do an issue of an item even if you don’t have any stock for that
item in the inventory.
{For example, you have an Item X, whose quantity is 0. You can do the packing slip (Deliver) of that item
in a Sales order or a packing Slip of an item in a Return Purchase Order.}
If the check box is unchecked, the system will through an error

Financial Negative Inventory:

If checked, the system will allow you to raise a Sales Order and directly Invoice while bypassing packing
Slip only if the available physical quantity having status receipt as Received or Purchased. Means at least
your available physical quantity should be physically posted.
If unchecked, system will not allow you to do the invoice even if all the items in the order are physically
updated.
Financial Negative Inventory = Checked
Giving an example, if you raised a Sales Order of 10 items and you have available physical of 6 items
then the system will allow you to do the invoice of only these 6 items and not the remaining 4 items
without doing the packing slip. I have physical quantity of 6 items of this SO, so while doing the Invoice
for all the 10 items, system throws me error.

1) How do you setup vendor evaluatiuon criteria ?

Solution:
In your role as a purchasing agent or purchasing manager, you can set up vendor evaluation
criteria to evaluate vendor performance. This is useful if you want to see how a vendor is rated,either by
an overall rating or by a specific criterion. When you rate a vendor, the rating appears as the Specialist
rating on the Employee services page of the Enterprise Portal for Microsoft Dynamics AX. After you’ve
created vendor evaluation criteria, procurement professionals can rate vendors on the Vendors FastTab
in the Procurement categories: %1 form. If you evaluate a vendor in a procurement category, your
evaluation will appear as a Specialist rating on the Employee services page of the Enterprise Portal.
This topic describes how to do the following:
• Set up vendor evaluation criteria, such as quality or price.
• Create a vendor criterion group, where specific criteria can be grouped together.
• Assign an evaluation criterion group to one or more procurement categories.
Prerequisites

1. Create a vendor evaluation criterion group to evaluate vendors.

2. Create vendor evaluation criteria for a group.
3. Assign an evaluation criterion group to one or more procurement categories.
4. Check your set up: evaluate a vendor and search for a vendor.
Related tasks
1. Create a vendor evaluation criterion group to evaluate vendors.
Some vendors might provide similar services, such as computer supplies. By grouping criteria
and applying it to your vendors, you can quickly compare each vendor according to how they are rated
for a specific category. A vendor evaluation criterion group makes it easier to decide on a product or
service. You can determine how well a vendor provides a service by reviewing the ratings of vendors
who supply similar products against a group of evaluation criteria.
For example, for computer supplies, a vendor evaluation criterion group could be called “Ordering
process”, and the vendor evaluation criteria for this group might include the following:
• Is the vendor certified?
• Does the vendor provide good customer service?
• What is the ordering experience like?
• Is the vendor good at collaborating with other suppliers and couriers?
In this example, organizing an executive event becomes easier because you can see at a glance which
vendors are preferred, according to the ratings for their services.

Important

You must set up a vendor evaluation criterion group before you can create vendor evaluation criteria; this is
because you can’t create criteria without assigning them to at least one group.

To create a vendor evaluation criterion group, follow these steps:

1. Click Procurement and sourcing > Setup > Vendors > Vendor evaluation criterion groups.
2. Click New and enter a name for the group
3. Optional: Enter a detailed description of the group.
4. Optional: To translate the description into another language, on the Action Pane,
click Translations.
5. To add vendor evaluation criteria to the group or to create new criteria and then assign them to
the group, on the Action Pane, click Vendor evaluation criteria.

2. Create vendor evaluation criteria for a group.

Creating vendor evaluation criteria lets you determine whether you want to use particular a
vendor. You must set up vendor evaluation criteria groups before you can create evaluation criteria.
To create vendor evaluation criteria, follow these steps:
1. Click Procurement and sourcing > Setup > Vendors > Vendor evaluation criteria.
2. Click New and enter a unique name for the criterion.
3. Optional: Enter a detailed description of the criterion.
4. Optional: To translate the description into another language, on the Action Pane,
click Translations.
 5. Select a vendor evaluation criterion group.

3. Assign an evaluation criterion group to one or more procurement categories.

If you want to assign different vendor evaluation criteria to different categories in the procurement
hierarchy, you can assign an evaluation criterion group to one or more procurement categories. For
example, assign the vendor evaluation criterion group “Custom installation” to the procurement
category “Computer systems”, if the vendor evaluation criteria includes Device installation and
Operating system installation. More than one vendor evaluation criterion group can be assigned to a
particular procurement category and vice versa.
To assign an evaluation criterion group, follow these steps:
1. Click Procurement and sourcing > Setup > Categories > Procurement categories.
2. Select a procurement category from the procurement hierarchy.
3. In the rightmost pane, scroll down to the Vendor evaluation criterion groups FastTab, click Add.
4. In the Add vendor evaluation criterion groups form, in the leftmost pane, click a vendor
evaluation criterion group, to view the individual evaluation criteria assigned to the group.
5. Click Select -> to assign a group to the procurement category. Click OK to close the form.

4. Check your set up: evaluate a vendor and search for a vendor.
Now that you have created a vendor evaluation criterion group, created criteria for that group,
and assigned an evaluation criterion group to a procurement category, it’s a good idea to assess how
this will work for the procurement professional who will use it.
Before you evaluate a vendor, you must already have assigned vendor evaluation criterion groups and
rating criteria to a procurement category.
To evaluate a vendor, follow these steps:
1. Click Procurement and sourcing > Setup > Categories > Procurement categories.
2. In the leftmost pane of the Procurement categories: %1 form, select a category in which you
want to evaluate a vendor.
3. On the Vendors FastTab, select a vendor from the list of vendors assigned to the category.
4. Click Evaluation to open the Rating on vendor evaluation criteria form.
5. In the rightmost pane, select a rating for the vendor for each evaluation criterion, and then close

Note

If you have assigned the same evaluation criterion group to multiple procurement categories and a vendor is scored
using the criteria in the group, then that score will apply to all the categories that the group is assigned to and that
the vendor is approved for.

the form to save your ratings.

After you’ve evaluated a vendor, try searching for a vendor. You can search for a vendor based on
criteria or groups of criteria.
To search for a vendor, follow these steps:
1. Click Procurement and sourcing > Common > Vendors > All vendors.
2. On the Action Pane, click Vendor search.
3. In the Vendor search criteria form, on the Common criteria FastTab, click the + button to add
specific procurement categories.
4. On the Vendor specific criteria FastTab, you can search for vendors by adding to the Vendor
evaluation criterion group field, or by adding to the Vendor evaluation criteria field.
2) What is the imortance of approved vendors, how do you setup approved vendor for an item.

i) how do you setup approved vendor for an item?

You may often purchase materials and services from certain vendors on a recurring basis. For
example, if you use a particular product in several of your formulas, you may purchase the product
weekly from one or more preferred vendors. To speed up transactions that include this product, you can
authorize one or more vendors to supply the product by setting them up as approved vendors.
Authorizing approved vendors
To authorize an approved vendor to supply a product, you use the Approved vendor list form. You can
access this form from the Released productslist page or from the Released product details form
in Product information management.
When you add an approved vendor for a product, you set an effective approval period. This period
identifies when approval starts and ends for the product. The effective start date can be any date.
However, the expiration date must be the current date or a later date.
Validating approved vendors
When you submit a transaction for a product that uses an approved vendor, a validation is performed
against the Approved vendor list. This is to validate that the vendor appears on the list and that the
transaction falls in the effective approval period. If the product has one or more approved vendors and
the vendor you select is not one of them, the Approved vendor check method determines whether you
can continue with the transaction. The types of transactions that are validated for approved vendors are
as follows:
• Purchase agreement setup with data entry enabled up to the Confirmation process
• Purchase orders at both data entry and journalizing
• Planned purchase orders
• Production orders
• Batch orders
• Purchase orders created from sales orders at both data entry and journalizing
Add approved vendor from Released products list page
1. Click Product information management > Common > Released products.
2. Select the item for the approved vendor.
3. On the Action Pane, on the Purchase tab, in the Approved vendor group, click Setup.
4. In the Approved vendor list form, click Add to add a new vendor to the item.
5. In the Vendor field, select the approved vendor.
6. In the Effective field, select the date from when the vendor is approved to supply this items. You
can enter any date for the start date.
7. In the Expiration field, select the date when the vendor's approval to supply this item expires.

Setting check method for the approved vendor

When you approve a product for a vendor, you specify a check method for an approved vendor. This
method determines the action taken if you select a vendor that is not listed in the product’s Approved
vendor list, or if the transaction date falls outside the effective approval period. The check methods
include the following:
• No check – No validation is performed. Therefore, any vendor that you select is allowed.
 • Warning only – A warning message is displayed, but you can continue with the transaction. This
action is the default method.
• Not allowed – An error message is displayed, and you must select an approved vendor to
continue with the transaction.
ii) Delete an approved vendor from Released products list page
1. Click Product information management > Common > Released products.
2. On the Action Pane, on the Purchase tab, in the Approved vendor group, click Setup.
3. Select the approved vendor to delete from the product.
4. In the Expiration field, select or enter the date on which the approved vendor is no longer active
for this item.

You can display a list of approved vendors for a product from the Procurement and sourcing navigation
pane or the Product information management navigation pane. You can also specify an effective period
using the Effective and Expiration fields to view vendors who are approved during that specific time
frame. If you specify only an effective date, all vendors who are approved on or after that date appear in
the list.
iii) From Procurement and sourcing
1. Click Click Procurement and sourcing > Inquiries > Vendors > Approved vendor list by item.
2. In the Item number field, select the product to view.
3. To search for vendors who are approved to supply this product during a specific time frame,
select different dates in the Effective andExpiration fields.
From Product information management
1. Click Click Product information management > Common > Released products.
2. Double-click the product you want to view. The Released product details form is displayed.
3. On the Action Pane, on the Purchase tab, in the Approved vendor group, click Approved
vendors.
4. To search for vendors who are approved to supply this product during a specific time frame,
select different dates in the Effective andExpiration fields.
To display a list of items for an approved vendor in Procurement and sourcing, use either the All
purchase orders list page or the Vendors form.
iv) View items from the All purchase orders list page
1. Click Procurement and sourcing > Inquiries > Vendors > Approved vendor list by item.
2. In the Vendor account field, select the vendor to view.
3. On the Action Pane, on the General tab, in the Related information group, click Approved to
supply.
4. To change the search criterion, select or enter different values in these fields, and then
click View:
o Effective – Select a different start date to view vendors who are approved for this item
starting on or after this date.
o Expiration – Select a different ending date to view vendors who are approved for this
item whose effective approval period ends on or before this date. The default expiration
date is Never.
V) View items from the Vendors form
1. Click Procurement and sourcing > Common > Vendors > All vendors.
2. Double-click the vendor account that you want to view.
3. On the Vendors form, on the Action Pane, on the Procurement tab, in the Related
information group, click Approved vendor list by vendor.
 4. To change the search criterion, select or enter different values in these fields, and then
click View:
o Effective – Select a different start date to view vendors who are approved for this
product starting on or after this date.
o Expiration – Select a different ending date to view vendors who are approved for this
product whose effective approval period ends on or before this date. The default
expiration date is Never.

3) How do you enable trade agreement for purchases ?

To enable trade agreement to be recalled on the Purchase Order Line, it is important to configure
the following options:-
Product Dimension Group Under product information management setup, dimension group, product
dimension. Mark For Purchase Prices.

Activate Price/Discount
Under procurement and sourcing setup, price/discount, activate price discount

- See more at: http://blog.mohamedaamer.com/microsoft-dynamics/microsoft-dynamics-ax-2012-

trade-agreement-purchase-order/#sthash.1WBos6XS.dpuf
4) If you want to setup discount for an item for all the vendors - explain the process of trade
agreements ?

5) How many types of trade agreements can be defined in AX ?

Trade agreements in ax 2012 is of four types which are applicable for both purchases and sales time:
1.. price Discount: not actually discounts. You can specify a price but not a discount (neither a
percentage discount, nor an amount discount). Use Price agreemens to enter any prices you may have
on price lists for individual customers, groups of customers or all customers. You can set up different
prices depending on quantity ordered as well. DAX puts the price from this type of agreement into
the Unit price field on the Sales order. This is the starting point for calculating the final price for the
customer.
2..line discount : here you specify discounts as percentage or as an amount. The discount is applied to
the Unit price, i.e. the price from the Price agreement above. You can also set up different discounts
depending on quantity ordered. With this type of trade agreement DAX only takes into account the
quantity ordered on a single sales order line. Example - I sell Coke, Sprite and Fanta and I want to give
my customer a 10% discount if they buy 3 bottles of one product(I give athe discount when they buy 3
bottles of Sprite or 3 bottles of Fanta but I won't give the discount when they buy 2 bottles of Sprite and
1 Fanta).
3..multiline discount : similar to Line discounts. The difference is DAX takes into account all eligible lines
from the ame sales order. So you can set up discounts for quantity based on the total ordered quantity
of several items - you cannot do that with the Line discounts. Example - I sell Coke, Sprite and Fanta and
I want to give my customer a 10% discount if they buy 3 bottles (I don't care if they buy 2 bottles of
Sprite and 1 Fanta or 3 bottles of Sprite only, I still give them the discount).
You can combine Line and Multiline discounts - look at the Discount setting in Account receivable ->
Setup -. Parameters -> Prices tab.

4..total discount : use it to specify one discount for the whole sales order. It is applied to the total
amount of the sales order. Use it when you want to give a discount depending on the amount of the
sales order and not on the quantity of items ordered. Line and Multiline discount take into account the
quantity, Total discounts take into account the amount (the criteria for applying a discount). Another
important difference is that with Line and Multiline discounts you can callculate the margin for each
sales order line. The total discount can be used to calculate the margin on the sales order header only, it
cannnot be broken down into the lines.
6) how does multi line discount concepts works, and how to define in AX ?
Using multiline discount we can setup discounts for quantity based on the total ordered quantity of
several items.where as we cannot perform this activity in line discount..
suppose I Sell Mirinda, Sprite & Mountain Dew. I want to give my customer a discount of 10% if they
purchase 3 bottles of the product (It may be 1 bottle of Sprite & 2 bottles of Mirinda or 2 bottles of
Mountain Dew & 1 bottle of Sprite or even 3 bottles of Sprite).
Go to AR>SETUP>ITEM DISCOUNT GROUPS
OR
GO TO >SO/PO IN TA>MULTILINE DISCOUNTS>In this select the appropriate quantity and all the required
fields and click on CALCULATION>MLT LINES...
7) what is the significance of trade agreement journal ?
Click Sales and marketing > Setup > Price/discount > Trade agreement journal names.
Use this form to create and edit the names of multiple trade agreement journals. Several journals might
be associated with one journal name.
8) what type of charges and how do you define charges in AX ?
We can say charges types as:
✓ Invoice fees
✓ freight charges
✓ insurance charges
✓ Auto Charges
✓ Misleneous Charges.
You can attach charges to an order at the level of the order header and at the level of the order line.
Examples of header-level charges include freight, insurance, and postage. An example of a line-level
charge is a unit-based freight charge. Line-level charges can be added to the header and then allocated
to the lines....
Charges can be automatic or manual:
To define charges codes
Click Accounts receivable > Setup > Charges > Charges code.
–or–
Click Accounts payable > Setup > Charges > Charges code.
–or–
Click Procurement and sourcing > Setup > Charges > Charges code

Describes how the charges are calculated (the charges can bee calculated as following methods)
✓ Fixed charges
✓ Charge for each unit
✓ Percentage of the line amount
✓ Intercompany (used for intercompany trade)

9) Is it possible to setup discounts for items (buy one get one free - buy X item and Y item free?
Yes , by setting up the supplymentary items for items we can create setup the discounts You can
create supplementary items from Accounts receivable, Accounts payable and Inventory management
Accounts receivable
Create supplementary items for a customer
1. Click Accounts receivable > Customers.
2. Press CTRL+N to create a new customer or select a customer from the list.
3. Click Trade agrmt. > Supplementary sales items.
4. In the Supplementary items form, select an Account code.
5. Press CTRL+N to create a new supplementary item.
Do the same for vendors in AP and for inventory management..

10) How do you setup supplimentory items ?

Set up supplementary item groups for customers:

1. Click Accounts receivable > Setup > Supplementary items > Supplementary item - Customer
groups.
2. In the Supplementary item groups form, press CTRL+N to create a new line.
3. Enter a name in the Supplementary item group field and a description of the supplementary
item group in the Name field.
4. Click Supplementary items, and then click Supplementary sales items.
 5. In the Supplementary items form, press CTRL+N to create a new line.
6. Select an item code in the Item code field.
Table Assigns one specific item to a supplementary item group.

Group Assigns a group of items to a supplementary item group.

All Assigns all items to a supplementary item group.

1. If you selected Table in the Item code field, then select a specific item in the Item relation field.
If you selected Group in the Item code field, then select a group of items.
2. In the Supplementary item field, select a specific item.
3. In the Supplementary quantity field, enter the number of items to be supplemented.

Set up supplementary item groups for items:

1. Click Accounts receivable > Setup > Supplementary items > Supplementary item - Item groups.
2. In the Supplementary item group form, press CTRL+N to create a new line.
3. Enter a name in the Supplementary item group field and a description of the supplementary
item group in the Name field.
4. Click Supplementary items > Supplementary sales items or Supplementary purchase items
5. In the Supplementary items form, press CTRL+N to create a new line.
6. Select an account code in the Account code field.
Table Assigns one specific account to a supplementary item group.

Group Assigns a group of accounts to a supplementary item group.

All Assigns all accounts to a supplementary item group.

1. If you selected Table in the Account code field, then select a specific account in the Account
selection field. If you selected Group in theAccount code field, then select a group of accounts.
2. In the Supplementary item field, select a specific item.
3. In the Supplementary quantity field, enter the amount of items to be supplemented.

Accounts payable
Set up supplementary item groups for vendors
1. Click Accounts payable > Setup > Supplementary items > Supplementary item - Vendor groups.
2. In the Supplementary item group form, press CTRL+N to create a new line.
3. Enter a name in the Supplementary item group field and a description of the supplementary
item group in the Name field.
4. Click Supplementary items , and then click Supplementary purchase items.
5. In the Supplementary items form, press CTRL+N to create a new line.
6. Select an item code in the Item code field.
Table Assigns one specific item to a supplementary item group.

Group Assigns a group of items to a supplementary item group.

 All Assigns all items to a supplementary item group.
1. If you selected Table in the Item code field, then select a specific item in the Item relation field.
If you selected Group in the Item code field, then select a group of items.
2. In the Supplementary item field, select a specific item.
3. In the Supplementary quantity field, enter the number of items to be supplemented.

Set up supplementary item groups for items:

1. Click Accounts payable > Setup > Supplementary items > Supplementary item - Item groups.
2. In the Supplementary item group form, press CTRL+N to create a new line.
3. Enter a name in the Supplementary item group field and a description of the supplementary
item group in the Name field.
4. Click Supplementary items > Supplementary sales items for customers or Supplementary
purchase items for vendors.
5. In the Supplementary items form, press CTRL+N to create a new line.
6. Select an account code in the Account code field.
Table Assigns one specific account to a supplementary item group.

Group Assigns a group of accounts to a supplementary item group.

All Assigns all accounts to a supplementary item group.

1. If you selected Table in the Account code field, then select a specific account in the Account
selection field. If you selected Group in theAccount code field, then select a group of accounts.
2. In the Supplementary item field, select a specific item.
3. In the Supplementary quantity field, enter the number of items to be supplemented.

Inventory management
Set up supplementary item groups for items
1. Click Inventory management > Setup > Supplementary items > Supplementary item - Item
groups.
2. In the Supplementary item group form, press CTRL+N to create a new line.
3. Enter a name in the Supplementary item group field and a description of the Supplementary
item group in the Name field.
4. Click Supplementary items > Supplementary sales items for customers or Supplementary
purchase items for vendors.
5. In the Supplementary items form, press CTRL+N to create a new line.
6. Select an account code in the Account code field.
Table Assigns one specific account to a supplementary item group.

Group Assigns a group of accounts to a supplementary item group.

All Assigns all accounts to a supplementary item group.

1. If you selected Table in the Account code field, then select a specific account in the Account
selection field. If you selected Group in theAccount code field, then select a group of accounts.
 2. In the Supplementary item field, select a specific item.
3. In the Supplementary quantity field, enter the amount of items to be supplemented.

Set up supplementary item groups for customers or vendors

1. Click Inventory management > Setup > Supplementary items > Supplementary item - Customer
groups for customers or Supplementary item - Vendor groups for vendors.
2. In the Supplementary item group form, press CTRL+N to create a new line.
3. Enter a name in the Supplementary item group field and enter a description of the
supplementary item group in the Name field.
4. Click Supplementary items. If you selected customer as Supplementary item group, then
select Supplementary sales items. If you selected vendor as Supplementary item group, then
select Supplementary purchase items.
5. In the Supplementary items form, press CTRL+N to create a new line.
6. Select an item code in the Item code field.
Table Assigns one specific account to a supplementary item group.

Group Assigns a group of accounts to a supplementary item group.

All Assigns all accounts to a supplementary item group.

1. If you selected Table in the Item code field, then select a specific item in the Item relation field.
If you selected Group in the Item code field, then select a group of items.
2. In the Supplementary item field, select a specific item.
3. In the Supplementary quantity field, enter the number of items to be supplemented.

11) Suppose you want to setup vendor item number and item description - expalin the process of
setup available ?

For a particular product, you can create and maintain data that is specific to a vendor. For example,
you can print invoices that include product numbers and descriptions that are specific to a particular
recipient.
The external product number can be set up for a specific vendor. This product number can include the
combinations of all variants that are available for an item.
1. Click Retail > Setup > Product/order creation > Vendor's product numbers.
2. In the External item descriptions form, select an external item number, or click New to create a
new item number.
3. In the External item number field, enter the vendor’s identifier for the product.
4. In the Item number field, select an internal product that corresponds to the vendor’s item
number. Then, in the Vendor field, select the vendor.
5. Select the item description and inventory dimensions as appropriate.

12) What is terms of delivery what is the importance of it ?

Click Sales and marketing > Setup > Distribution > Terms of delivery.

–or–
 Click Procurement and sourcing > Setup > Distribution > Terms of delivery.
Use this form to specify the terms of delivery that are used by the company accounts, customers, and
vendors. The terms of delivery specify the conditions for an item's transfer from seller to buyer. Terms
of delivery are used on sales orders and purchases orders. International delivery terms include FOB
(freight on board) and CIF (carriage, insurance, and freight).
You can specify the terms of delivery in the following circumstances:
• When you set the conditions for change in ownership of the transferred products from seller to
buyer.
• When you specify the location of taxation.
In some countries or regions, tax is charged according to the tax regulations that govern the
recipient. In these cases, you can include information about the location of taxation in the terms
of delivery. Tax is determined based on the tax laws applicable in the state or county of the
delivery address.

13) How to setup modes of deliveries and how will you apply it in AX for various purchases ?

Click Sales and marketing > Setup > Distribution > Modes of delivery.
–or–
Click Procurement and sourcing > Setup > Distribution > Modes of delivery.
Use this form to set up modes of delivery for customers and vendors. The mode of delivery is the means
of transportation that is used when an order is delivered from the seller to the buyer. Use a mode of
delivery when you record orders and purchases.

Note:
Modes of delivery are printed on customer invoices.

14) What is workflow, what are the default workflows available in AX for procurement?

To create a workflow, you must first select the type of workflow that you want to create. This topic
lists the types of workflows that you can create in each module. The topic also describes what each type
of workflow is used for, and whether the workflows of each type are associated with a specific company
in the organization or with the whole organization.

Vendor bank remittance journal workflow--Approve vendor bank remittance journals—Company.

Vendor disbursement journal workflow-- Approve vendor disbursement journals—Company.
Vendor draw promissory note journal workflow-- Approve vendor draw promissory note journals.
Vendor invoice approval journal workflow-- Approve vendor invoice approval journals.
Vendor invoice journal workflow-- Approve vendor invoice recording journals.

Procurement and sourcing

Workflow type Purpose

Catalog import product approval Review products in imported catalogs.

Catalog import approval Review imported catalogs.

Delivery due date notification workflow Send notifications when an unconfirmed product receipt is due.

Invoice received notification workflow Send notifications when an invoice is registered for an unconfirmed

Product receipt failed notification workflow Send notifications when a product receipt is not posted.

Unconfirmed product receipt rejection notification Send notifications when an unconfirmed product receipt is rejected
workflow

Purchase order line workflow Review and approve purchase order lines.

Purchase requisition line review Review purchase requisition lines.

Purchase requisition review Review purchase requisitions.

Purchase order workflow Review and approve purchase orders.

Vendor category application workflow Approve vendor requests for category applications.

Vendor category justification workflow Approve vendor requests for category justifications.

Vendor add application workflow Approve vendor requests to add applications.

Vendor add justification workflow Approve vendor requests to add justifications.

Vendor status change request workflow Approve vendor requests for status changes.

15) Did you work on procurement workflow setup, explain the process ?
16) What is the the purchase cycle, explain the purchase cycle with respect to AX ?
 During our functional stints with different systems & clients we often come across a term purchase
cycle. In this topic we shall see what a purchase cycle actually is when it comes to the practical world.
The purchase cycle is nothing other than the set of processes that a business or an industry follows to
fulfill the business requirements. The Purchase cycle differs from the industry to industry & business to
business. However, the purchase cycle at its core remains the same.
Here we shall understand the purchase cycle of a normal trading firm (A trading firm is a
business entity which purchases goods and re-sells it at a higher price to earn profits). On a
higher level this looks to be a very simple business scenario but thecomplexity comes when we look at
the documentation that is involved behind the scene.
For easier understanding the Purchase cycle can be distributed into multiple stages.
Step 1: When the HFL Company plans/identifies the quantity of goods that would be required to meet
the upcoming demand in near future (depending on the business). This plan can be based on the
demand (sales orders placed by different customers) or for the stocking purpose. Once the plan is
decided the company takes the next step. This process in Ax terms is called Master planning.
Step 2: Here the company would initialize the process to identify different Vendors who can deliver the
goods within a stipulated time & desired quantities. The Company HFL Company will create Request for
Quotes that will be circulated to different vendors. Once the vendors respond to the quotes, HFL
Company will compare these quotes to determine the best possible deal (primarily based on Cost,
Quantity delivered, delivery Time etc.).
Step 3: Once the Vendor is finalized, HFL Company will place an order by converting the Quotation in to
a Purchase Order. Purchase order is a document which will bind HFL Company & the Vendor into an
agreement wherein the vendor shall deliver the goods based on some terms & conditions.
Step 4: On the due delivery date the Vendor will deliver the goods at the location specified by HFL
Company in the purchase order. In this step ABC ltd will receive the goods, HFL Company for its internal
recording will prepare a document called as Packing slip/Product receipt.
Step 5: When the goods are received, ABC ltd will prepare an Invoice, which marks a liability for HFL
Company against the vendor. This invoice can be either sent to the vendor or be kept for internal
reference.
Step 6: The last step in the purchase cycle is when the payment is made to the vendor, clearing off the
liability against the vendor and completing the purchase cycle for HFL Company.
(OR)
1.PR( Purchase Requision )
2.RFQ (Reaquest For Quotation)
3.COMPARE AND CONFIRMATION
4.RECIEPTS OR ARRIVAL AND REGISTRATION
5.PACKING
6.INVOICE
7.PAYMENT.

17) What are the different modules integrated to complete the PO cycle in AX ?
In Procurement and sourcing, you create purchasing policies to control the purchasing process.
You identify suppliers, onboard suppliers as new vendors, maintain vendor information, create
agreements with your vendors, order items and services, maintain purchase orders, and confirm receipt
of products. After vendor transactions are processed through Accounts payable, you can also analyze
spending and vendor performance.

Business processes
The following process flow illustrates the procurement and sourcing business process.

The Procurement and sourcing module can be integrated with the following modules and Microsoft
programs:

✓ Inventory management
✓ Product information management
✓ Master planning
✓
✓ Accounts payable
✓ General ledger
✓ Configuring product-wide features
✓ Microsoft SQL Server Reporting Services
✓ Microsoft Excel
✓ Internet Information Services (IIS)

18) Explain the process of Purchase requisition to Invoice ?

Depending on how your organization is set up, you can create purchase requisitions for products
that your organization uses. A purchase requisition is an internal document that authorizes the
purchasing department to buy items or services.
After a purchase requisition is approved, it can be used to create the purchase order. Purchase
orders are the external documents that the purchasing department submits to vendors.
Note:
Public sector entities that use commitments to manage budget reservations cannot create purchase
orders from purchase requisitions. For more information, see (FRA) About commitments (Public sector).

Note:
This topic has been updated to include information about features that were added or changed for
Microsoft Dynamics AX 2012 R2 and Microsoft Dynamics AX 2012 R3. For more information, see the
sections later in this topic.

Using workflow:

Before a purchase requisition can be submitted for review, workflow must be configured in the
Microsoft Dynamics AX client. You use workflow to move a purchase requisition through the review
process, from an initial status of Draft to a final status of Approved. For more information about the
purchase requisition workflow process, see Overview of a purchase requisition workflow.
Creating purchase requisitions
Before you can create purchase requisitions, you must enter additional information about purchase
requisitions.

You can create purchase requisitions in one of three ways:

• Use the Microsoft Dynamics AX client to create a purchase requisition and select the items and
services that you need. You can select items from a procurement catalog that your organization
has created, or you can request items that are not found in a catalog, by entering the product
details in the Add items form on the Non-catalog items tab.

• Use Enterprise Portal for Microsoft Dynamics AX to create a purchase requisition and add the
items and services that you need. You can select items from a procurement catalog that your
organization has created, or you can request items that are not found in a catalog, by entering
the product details on the Add items page, Non-catalog items tab. For more information about
how to use Enterprise Portal, click the Help button on any page in Enterprise Portal for
Microsoft Dynamics AX.

• Use the Employee services site in Enterprise Portal to access the Order products site. You can
browse the procurement catalog, select the items and services that you want, and add them to
your shopping cart. You can also order items or services that are not found in the catalog, or you
can order directly from an external vendor’s catalog if your organization allows this. For more
information about how to use Enterprise Portal, click the Help button on any page in Enterprise
Portal for Microsoft Dynamics AX.

Note:
Purchase requisitions can also be imported into Microsoft Dynamics AX from a third-party application by
using the PurchReqImportService document service. Importing documents by using services requires a
system administrator to configure an integration port that can receive the incoming documents.
19) How many inventory dimension groups can be assigned to to an item ?
We can assisgn three dimension groups:
✓ 1.product dimesnsions groups
✓ 2.storage dimensions
 ✓ 3.tracking dimensions groups
20) can differentiate product and product master ?
Product Masters have item dimensions (size color style) for Product Variants whereas Products do not.
Both of these types of items need to be released to legal entities and then will be found in released
products. For instance, when you are in product masters, you will notice the product master section in
the bar at the top of the form. This is where the product dimensions and variants are setup. You won't
see that section in the products form. Variant Ids are very important for retail and basically is a way to
reference the products inventory dimension combinations.

21) What is the significance of product dimensions ?

Product dimensions are characteristics that serve to identify a product variant. You can use
combinations of product dimensions to define product variants. You must define at least one product
dimension for a product master in order to create a product variant.
Tip
Product variants are also referred to as items. An item is a tangible product, which is not the same as a
service. However, in Microsoft Dynamics AX 2012 it is also possible to define a product master with
the Service type. By using the Service type, you can specify product variants that include services. For
example, you can specify a product master for Consultancy work and product variants for work that is
performed by senior consultants and junior consultants.
The following product dimensions are available: Configuration, Color, Size, and Style. If you
want to use the Size and Color product dimensions for different purposes, you can rename these
dimensions. For more information, see Rename product dimensions.
The names of product variants are based on product dimension values. To display the product variant
names in a translated version on an external source document, such as an invoice, you can translate the
product variant names into the language of the customer. For more information, see Translations of
product-related information.
Product dimensions are created and maintained in the Product dimensions form, which can be accessed
from the following locations:
✓ Click Product information management > Common > Products > Product masters. On
the Action Pane, in the Product master group, click Product dimensions.
✓ Click Product information management > Common > Products > All products and product
masters. Select a product master. On the Action Pane, in the Product master group,
click Product dimensions.
✓ Click Product information management > Common > Released products. Select a product
master. On the Action Pane, in the Product master group, click Product dimensions.
The number of variants that you can create for an item is limited by the number of possible product
dimension combinations.

22) what are default product dimensions available ?

✓ configuration
✓ style
✓ color
✓ size
23) what is the importance of storage dimension groups ?
Click Product information management > Setup > Dimension groups > Storage dimension groups.

Use this form to set up storage dimension groups. The storage dimensions can help you control how
items are stored and taken from inventory.
24) What storage dimensions can be enabled/setup for an item ?

Basically we have four types of storage dimensions in ax:

1) Site.
2) Warehouse
3) Location
4) Pallet Id

By default warehouse will be active ,, if we want we can make site as mandatory ,…….but location and
pallet id cannot be made mandate….
Path: Product information management > Setup > Dimension groups > Storage dimension groups.

25) What is the use of Physical inventory and financial inventory check boxes usage in Ax ?

Click Product information management > Setup > Dimension groups > Tracking dimension
groups.

Physical Inventory Check Box:

A selected check box indicates that items that are assigned to this dimension group
are physically tracked at this dimension level.

Note:
Transactions that are generated to track physical transfers are also included in cost calculations. A
transfer that occurs between two inventory dimensions, and that is not financially tracked, is called a
nonfinancial transfer.

Note :
If items are physically tracked, there is a limitation on negative inventory. Select the Physical
negative inventory check box in the Item model groupsform to enable negative inventory for items that
are associated with the item model group. If negative inventory is not enabled, and an item with this
dimension is physically tracked, transactions can only be processed for the item if the item is physically
available.

Financial Inventory Check Box:

A selected check box indicates that items that are assigned to this dimension group
are included in cost calculations at this dimension level.

26) What is the importance of the fields for purchase prices and for sales prices ?
For purchase prices
Select this check box if you want to include the dimension as a criterion to determine the
purchase price for an item. In the Journal lines, price/discount agreement form, you can create a trade
agreement where you associate a purchase price with a specific dimension setup for an item.
Note:
A dimension must be active in order to be available in a trade agreement setup. Select the Active check
box in this form to enable a dimension.

For sales prices:

Select this check box if you want to include the dimension as a criterion to determine the sales price for
an item. In the Journal lines, price/discount agreement form, you can create a trade agreement where
you can associate a sales price with a dimension setup for an item.

Note:
A dimension must be active in order to be available in a trade agreement setup. Select the Active check
box in this form to enable a dimension.

27) What is the use of tracking dimensions of an item ?

Product information management >> Setup >> Dimension groups >> Tracking dimension groups.

Use this form to set up tracking dimension groups. The batch number and serial number are used to
track inventory items.
By assigning it to the item we can track the items in on hand easily.

28) How does batch and serial numbers will be useful in AX for the items ?

The batch number and serial number are used to track inventory items.
Serial Number:

Click Inventory management > Inquiries > Dimensions > Serial numbers.

You can create serial numbers manually from the Serial number field and Microsoft Dynamics
AX automatically creates the numbers in the serial numbers table. This table is opened via this form
when a packing slip is updated or when an item has arrived or is registered. If items are issued
physically, for example, by packing slip or picking list updating, Microsoft Dynamics AX checks that the
serial number exists in the serial number table. This prevents items from being sold with serial numbers
that have not been created.

Batch Number:

Click Inventory management > Inquiries > Dimensions > Batches.

Use this form to create batch numbers that are associated with each item number. You can specify the
batch number, item number, manufacturing date, and expiration date.

We can create and assign the serial numbers and batch numbers MANUALLY and AUTOMATICALLY..

MANUAL:
 Manual allocation of serial numbers requires you to set up the Inventory dimension group and a
serial number for the specific item from the Serial number form. Open the Serial numbers form from
Inventory and warehouse management > Inquiries > Dimensions > Serial numbers.

AUTOMATIC:
To automatically allocate serial or batch numbers, you must create a number group and assign it to
the item. Serial and batch numbers can be assigned to several products, sequentially from the same
number group1.
Click Inventory and warehouse management > Setup > Dimensions > Number groups.

29) How do you setup default order settings ?

Use this form to define default settings for an item. The default settings are used by master planning
to generate sales orders, purchase orders, and inventory orders. The main settings involve the following
areas:
✓ Defining a warehouse to use for each module when orders are created.
✓ Defining the settings that modify order quantities for each module when orders are created.
There are two versions of this form.
✓ Click Product information management > Common > Released products. Press CTRL+SHIFT+G
to view all items. Select an item, and then clickPlan > Default order settings. Use this form to
define the default order settings for an item. When you operate in a single-site environment,
you can use only this version of the form.

Click………Product information management > Common > Released products. On the Action Pane, on
the Plan tab, in the Order settings group, click Default order settings.
(OR)
Click ……..Product information management > Common > Released products. On the Action Pane, on
the Plan tab, in the Order settings group, click Site specific order settings.

30) How do you setup site specific order settings ?

Click Product information management > Common > Released products. Press CTRL+SHIFT+G to view
all items. Select an item, and then clickPlan > Site specific order settings.
Use this form to define settings that are different from the default order settings for an item on a
different site.
i am Sending Request for Quote to Multiple Vendor, While Comparing I Decided that i want to
Give Order to Two Vendor on Partial Qty , Say, I have Purchase Requisition for 10 item while
comparing R F Q, i want to Select two Vendor's Quote and give them 5 Qty and 5 Qty Order.
Question is, How can i Select Multiple Vendor in RFQ ?
Question - 2
While Making R F Q , How can i Send Quote to Vendor who is not in My Vendor Master, having said
that i Building Business Relation From R F Q, and This Vendor is just New For the Company so i will not
Add him into Vendor Master unless the Deal is Finalize With him
For your first question
Go to Vendor Tab of RFQ Form. and select all the vendors you want to send Request.
Then fill Reply form when those vendors reply.
Then prepare comparative statement by Compare
Then accept/Reject all the quotations in the same form with appropriate quantity.
For your second question
U r correct in your view. But I believe here you need to adopt some trick. You need to create a vendor
as one time vendor while going for RFQ. and lateron when you accept him as your vendor then
unselect that option 'One time Vendor' and he will be your Permanent vendor. So, wherever this one
time vendor will be selected it means they have not been selected as your vendor till date.

31) If you wanted to restrict an item purchase for some specific vendors, what setup available ?
Click …..Product information and management >> Released Product >>Open a Product >>Goto
General form >>find Approved Vendors Option..
You will find 3 Options from dropdown
No check – No validation is performed. Therefore, any vendor that you select is allowed.
Warning only – A warning message is displayed, but you can continue with the transaction. This action is
the default method.
Not allowed – An error message is displayed, and you must select an approved vendor to continue with
the transaction

And for this Question You select third One from the above Options.

32) hat is the significance item model group ?

Click Inventory management > Setup > Inventory > Item model groups.

Use this form to create and maintain item model groups. These groups contain settings that determine
how items are controlled and handled on item receipts and issues. The settings also determine how the
consumption of an item or items is calculated. A single model group can be associated with many items.
Therefore, maintenance is easier, because you can control many items by using the same setup.
Note:
When you set up and assign item model groups to products, be aware of the restrictions that may
apply if you change the setup. If a product has open transactions, you might receive a warning and be
unable to complete the following tasks:
✓ Change parameters for the associated item model group.
✓ Select a different item model group for the product.

33) What is the setup available to identify stocked product and not stocked product?

34) What is the significance of Physical negative inventory and fiancial negative inventory?

Physical Negative Inventory:

If you checked this system will allow you to do an issue of an item even if you don’t have stock
for that item in the inventory. For example you have an item x whose quantity is 0. You can do the
packing slip (Delivery) of that item in a sales order or a packing slip of an item in return purchase order.
Financial negative inventory:
Select this check box to enable negative financial inventory for the item model group.
Negative financial inventory is often used for services. If the check box is cleared, the cost price must be
known for the quantity that is financially pulled from inventory.
Example:
Eight items are invoice-updated, and five other items are packing slip–updated. Therefore, the
physical on-hand inventory is 13. If this check box is cleared, negative financial inventory is not enabled.
Therefore, only eight items are available when a sales order is invoice-updated, even though 13 items
are available in on-hand inventory.

34) What are the two setups available to enable the quality for a company?

1. Inventory and warehouse management >> parameters >> check use quality management check box.
2. Item model group lo quarantine management tic the check box so that we can enable our company or
item to use the quality management.
When the item is registered, a quarantine order is generated. This quarantine order has a status
of Started.
35) Is it possible to control the inventory issues based on FEFO. If yes, what setup is available?
If you wanted to use item reservation using FEFO, you would need to check the "FEFO date-
controlled" checkbox in the Inventory model group. You must make the reservation as "automatic" in AR
parameters for it to see in action. Once above is done, if you are creating a SO for batch controlled item,
system will auto reserve inventory based on the latest expiry date for the available batches.

36) How do you setup global item pricing with respect to purchases and sales?
37) What is the significance of item group?
Item groups are used to manage inventory by dividing inventory items into groups. You can
complete the following tasks for the items that are included in an item group:
✓ Follow statistics for item sales, item purchases, and projected inventory transactions and
balances.
✓ Set up a posting profile for a group of items that require a posting setup other than the standard
posting profile that is set up for items in thePosting form.
✓ Transactions for items that use the standard posting profile are posted to inventory issue and
receipt accounts that are set up in the Postingform.
✓
(Click Inventory management > Setup > Posting > Posting. On the Inventory tab,
click Issue and Receipt to set up the accounts.
Use this form to set up ledger account numbers for the automatic ledger transactions that are
generated for receipt and for issue transactions in the inventory.

38) How do setup outbound rules for item shipment?

 You can set up outbound rules to determine how you want the program to handle the outbound
process. You can use these rules to enable or disable the shipment staging functions to control the
shipment process and, in particular, at which stage in the process you can send a shipment.
1. Click Inventory management > Setup > Distribution > Outbound rules.
2. Click New to create a new outbound rule.
3. In the Outbound rule ID and Description fields, enter an ID and description for the rule.
4. Select the Deliver picked items field if you want to be able to specify a different to location for
delivering the picked items. If you do not select this field, the items are automatically delivered
to the default location.
5. In the Set picking line status to field, select the status for the picking line after delivery.

Note:
If you select Completed, when you deliver the last item in the shipment, the shipment will
automatically be sent.
6. In the Allow send from shipment status field, select the status that defines when the shipment
can be sent. The shipment status is always based on the lowest denominator of the shipment
lines status. All the shipment lines must at least have the status Picked for them to be shipped.
7. Select whether you want the program to ship the items automatically when the shipment status
reaches the one that you have specified in the Allow send from shipment status field.
8. Select whether you want a bill of lading created and a shipment list printed automatically when
you ship.

39) How do you setup distribution days in AX for transport?

This procedure can be used to specify available pick-up and transport days for the various modes of
delivery.
1. Click Sales and marketing > Setup > Distribution > Modes of delivery.
2. Select a relevant mode of delivery, and then click Transport calendar.
3. Select a pick-up warehouse and transport calendar from the drop-down lists.
4. Repeat steps 2 and 3 until all modes of delivery have an associated warehouse and calendar.
Note:
If a transport calendar is associated with a mode of delivery, but the Warehouse field is left blank,
that transport calendar applies to the selected mode of delivery for the remaining warehouses that are
not defined.

40) Is it possible to setup charges for an item irrespective of vendors and customers?
Charges groups help you group the various types of charges for items.

✓ Click Accounts payable > Setup > Charges > Item charge groups.
Or
✓ Click Accounts receivable > Setup > Charges > Item charge groups.
✓ Click New to create an item charges group.
✓ In the Charges group field, enter a code for the group. The code can be alphanumeric.
✓ In the Description field, enter a description for the group.
41) What is inventory supplimentory items, how do you setup these in AX?

It means setting up for items…

Set up supplementary item groups for items

1. Click Inventorymanagement > Setup > Supplementaryitems > Supplementary item - Item
groups.
2. In the Supplementary item group form, press CTRL+N to create a new line.
3. Enter a name in the Supplementary item group field and a description of the Supplementary
item group in the Name field.
4. Click Supplementary items > Supplementary sales items for customers or Supplementary
purchase items for vendors.
5. In the Supplementary items form, press CTRL+N to create a new line.
6. Select an account code in the Account code field.
We can do this by three ways.

✓ Account Payable.
✓ Account Receivable.
✓ Inventory And Ware House.
42) What is the significance of the order entry dead line groups?
By using this we can manage the orders daily we made and more over we can assign it to either
specific group of customers and also the sites.

Example:
In many companies, a sales order must be received before a certain time of day for the sales order
to be treated as if it is received that day. If the order is received after this deadline, the company treats
the sales order as if it is received the next business day.
You set up order-entry-deadline times for all the days of the week in the Order entry deadlines form. If
an order is received after this time, it will be treated as if it is received the next day. By default, these
times are set to 23:59 – that is, one minute to midnight at the end of the relevant day. You can change
the default times, so that they coincide with actual ship- or receipt-deadline times.
You can define order-entry deadlines for a specific group of customers. This could be relevant, for
example, if you want to allow a group of specific customers to have order-entry deadlines that are later
than those of other customers. First, you define groups for order-entry deadlines in the Order entry
deadline groups form, and then you assign the groups to customers. You assign the groups to customers
in the Customers form
Use the following procedures to define order entry deadlines for sites or groups of customers. First,
create order entry deadline groups, and then associate the order entry deadline groups with sites or
customers.
Create an order entry deadline group
1. Click Inventory management > Setup > Distribution > Order entry deadline groups.
2. Press CTRL+N to create a new group.
 3. In the Order entry deadline group field, type a group name, and in the Description field, type a
description of the group.
Assign an order entry deadline group to a customer
1. Click Accounts receivable > Common > Customers > All customers.
2. Double-click the customer that you want to assign an order entry deadline group to.
3. In the Customers form, on the Action Pane, on the Customer tab, click Edit.
4. Click the Sales order FastTab, and then in the Order entry deadline field, select an order entry
deadline group.
Assign an order entry deadline group to a site
1. Click Inventory management > Setup > Inventory breakdown > Sites.
2. Select the site that you want to assign an order entry deadline group to.
3. On the General FastTab, in the Order entry deadline group field, select an order entry deadline
group.

43) How do setup test groups for quality testing. What are important setup pre defined for test groups
in AX?
Set Up Test Groups:
The test group contains the tests that must be performed for an item, item sampling parameter,
and an acceptable quality level parameter. Note that a quality order is created on the basis of the test
group
1. Goto Inventory management >> Setup >> Quality control >> Test groups. The Test groups form
opens.
Based on the tests and test instruments we will setup this test groups.

44) How do you define item sampling, and what are the transaction types available for quality
verification?
Click Inventory management > Setup > Quality control > Item sampling.
Use this form to set up, edit, and view the sampling plans that will determine the quantity that is to be
tested for a quality order. A sampling plan can be for a fixed quantity or for a percentage. You assign a
sampling plan to a group of tests, and the test group is assigned to a quality order.

Example:
A manufacturing company has several types of sampling plans as part of its quality guidelines. One type
of sampling plan requires 100 percent inspection. A second type requires a sample quantity of 10 for
each receipt during the first three months of purchasing a new item. A third type requires a sample of 5
percent of the order quantity whenever a particular manufactured item is produced. The company
defines information in the Quality associations form in order to automatically generate quality orders
that reflect the quality guidelines and sampling plans for specific items.

45) What is the use of journal with respect to Inventory? How many types of journals can be defined?
Inventory journals are used for posting physical inventory transactions including posting issues
and receipts, inventory movements, creating bills of material, and reconciliation of physical inventory.
The following inventory journal types are available:
✓ Movement
 ✓ Profit/Loss
✓ Transfer
✓ Bills of materials
✓ Item arrival
✓ Production input
✓ Counting
✓ Tag counting.

46) What is the difference between transfer order and transfer journal?

With the help of the transfer journal, the Inventory Manager transfers the items from one
dimension (warehouse, location, color, etc) to another one instantaneously.

The transfer order is used for registering in the system the items that must be moved from one
warehouse to another and for managing this process.

Process Includes:
Create Transfer Order
Pick Items to Transfer->then->Picking list registration
or
Pick Items to Transfer(No Picking list registration)
Ship Transfer Order
Receive the Items at other end.

47) What is the difference between a transfer Order and Stock transfer?

A) For Indian Localization taxation, Microsoft Included Stock transfer. It will Includes taxes
on the Item in the transfer Process (Create Stock transfer, Pick, ship, receive).

48) Difference between Inventory adjustment, Movement and Transfer Journal in Ax 2012?
There are 3 types of commonly used journals available under Inventory Transactions in AX 2012
Inventory Journals. These journals are fairly similar in nature. But certain differences make them stand
apart.
Movement Journal:
When you use the inventory movement journal, you can add cost to an item when you move the
inventory. You would have to allocate the additional cost to a particular general ledger account
manually in this case (i.e. not as per the predefined posting profile). This use of journal is;
• To bring in opening balances
• To post additional cost to an offset account different (manually selection) other than the posting
profile
• To intake (increase) or outtake (decrease) the inventory quantity
• To add cost to an item when you move the inventory.
Inventory adjustment Journal:
In previous version of dynamics Ax, this journal type was used to be specified as Profile/Loss journal. The
use of journal is;
• To intake (increase) or outtake (decrease) the inventory quantity
• To add cost to an item when you move the inventory
• To post additional cost automatically to a particular general ledger account according to the Item
group posting profile setup
Transfer Journal:
The inventory transfer journal is used to transfer items from one warehouse to another within the
company without associating any cost implications to it. This journal is the only one out of the three,
where you would have to mention both the FROM and TO inventory dimensions like site and
warehouse. The use of journal is;
• To transfer between stocking locations
• To transfer between one variant to another variant
• To transfer from one batch to another batch

49) HOW TO ADD ONHAND INVENTORY WITHOUT CREATING Purchase Order?

You can perform all required purchase steps to have it on-hand (i.e. create a purchase order, arrive
items, register items, and post a packing slip and an invoice).
Or,
we can add item on-hand with the help of the counting journal:
1. Go to Inventory management > Journals > Item counting. The Inventory journal form opens.
2. Click the Create new button. The Inventory dimension form opens.
3. Select the Warehouse check box and then click OK. The Journal lines form opens.
After creating we can view it on:
1. Go to Inventory management > Common Forms > Item details. The Item form open select the
appropriate item to view the effect.

50) Is it possible to update stock without purchase or sales. If yes, explain how?
The above 48 and 49 Questions will be the answer for this question.

51) Explain the sales cycle in AX?

Sales order cycle starts from:

✓ Request For Quotation From Customers.

✓ Confirmation.
✓ Picking.
✓ Packing.
✓ Shipment.
✓ Invoice.
✓ Payment.

52) How does AX trigger an order to ship the items from warehouse?
53) Explain the process of sales shipment creation in AX?
After creating the sales order and conforming the sales order ,,then we need to create output
order by going to inventory> output order ….
And then we need to create the shipment.
1. Go to Inventory management > Shipments. The Shipment form opens.
2. Create a new line by pressing CTRL + N.
3. The Create shipment wizard opens. Click the Next button.
 4. On the following Identification page, select the shipment template. In our demo data, we have
only one shipment template “100_all”. Select it. A shipment template can be set up
under Inventory management > Setup > Distribution > Shipment templates. A shipment
template contains the following major information: outbound dock (only an output order moved
to this dock is taken into account), reservation principle (how an item will be reserved before a
pick-up process).
5. Click Next.
6. On the Configuration page, all the information is filled in by default. Click Next.
7. The Inventory order page contains the information about orders that can be assigned to the
shipment. The Shipment Manager can delete an order form the grid.
8. Click Next.
9. On the Ready page, the Shipment Manager clicks the Finish button.

54) Create auto shipment for a sales order?

55) What are the important configurations required to create auto shipment for a sales order?
This topic applies to features in the Inventory management module. It does not apply to
features in the Warehouse management module.
Use this information to create a shipment.
1. Click Inventory management > Common > Shipments.
2. Create a new shipment using the following mandatory fields: Warehouse, Outbound dock,
and Sequence ID.
For more information, see Shipments (form).
3. Click Show lines to open the Shipment lines form.
4. Click Add to open the Output order form.
5. Select the output order to add. In the Quantity field, enter the quantity to add to the shipment.
Alternatively, select the All check box, which transfers the rest of the quantity to the shipment.
When the shipment has been created, reservations can be activated while the shipment includes lines
that are still not in a route. You can click Functions > Reserve now to reserve and allocate a picking
route.

56) What is prospect? Explain the process of defining customer using the prospect?
Prospects are the organizations and individuals with whom you will potentially interact for business
purposes.

To Create A Prospect:

Click Sales and marketing > Common > Prospects > All prospects
After creating the prospect follow the procedure to convert him as a customer:
1. Sales process usually starts with Request for Quotation( by going to sell tab on action
pane and click on sales quotation)
2. Open quotation tab and click on send quotation
3. Clicking on follow-up button and confirm the quotation
4. Click on convert to customer button on FOLLOW UP tab
5. Again click on confirm button after filling the customer number..
 6. Then you can to sales order form and by refreshing the page you will able to see a auto-
generated sales order.

57) How do you generate sales quotation in AX., and explain the process of converting a sales
quotation in order?
In order to create sales quotations in Dynamics AX 2012 you’ll need to perform the following steps.
1. Create a Quotation
2. Enter Quotation lines
3. Send Quotation
4. Confirm to Sales order
To Create a Sales Quotation in Dynamics AX 2012:
1. Click the new Sales quotation button.
2. Choose Account type Customer.
3. Select the Customer account.
4. Click OK

Enter the Sales Quotation’s line items

1. Choose the Item number.
2. Input the Quantity of the items (as depicted below).
Editing Sales Quotations in Dynamics AX 2012
You can edit any sales quotation in Dynamics AX 2012 from the “Sales Quotation Tab -> Edit” option,
shown below.
Sending Sales Quotations
In order to send a sales quotation, you first need to print it. Here’s how you can do so.
1. On the Quotation tab, click the Send quotation button.
2. Mark Print quotation.
3. Click OK.

Confirming Quotations
 You can also confirm the quotation to convert it to a Sales order. You can do that by or once the sales
quotation received and accepted by customer then sales order will be generated.
• Clicking Confirm on the Follow up tab
• Click OK.

58) How you setup various sales prices for various items for various customers?
Defining sales prices for products:
By using trade agreements, you can specify price adjustments and discounts for one or more
released products. You can also create trade agreement setups that specify individual prices for released
product variants.
The search for sales prices and discounts must be enabled before you can use trade agreements. To
enable the search for sales prices and discounts, select the relevant options in the Activate
price/discount forms
Base price and price adjustments:
You can set up a base sales price and price update information on the Sell FastTab in
the Released product details form. A base price that is set up directly on a product is adjusted by any
price information that can be derived from a trade agreement. The base price can be set up for each
product and for each product master. Before you can specify price variations for product variants, a
trade agreement must be associated with the product master.
Click Sales and marketing > Setup > Price/discount > Activate price/discount.

59) Is it possible to setup trade discount for item sales in AX?

Click Sales and marketing > Journals > Price/discount agreement journals.
OR
Click Procurement and sourcing > Journals > Price/discount agreement journals.

Use this form to create and maintain multiple trade agreement journals.
To create a journal, select a journal name and enter a description of the journal. When the journal is
created, click Lines to open the Journal lines, price/discount agreement form. You can use this form to
view, modify, or create trade agreements.
Price and discount information that is set up in the Price/discount form is used on sales orders and
purchase orders. This information is used when you enter order lines and calculate discounts.
Before you set up prices and discounts in the Price/discount form, follow these steps:
• In the Activate price/discount form, enable the combinations of price agreements to work with.
For more information, see Activate sales price/discount (form).
• Set up price and discount groups if you want to create prices or discounts for groups of
customers, vendors, or items. You set up the price groups in the Customer price/discount
groups, Vendor price/discount groups, and Item discount group forms.
• Assign the groups to customers, vendors, or items in the Customers, Vendors, or Released
product details forms.

60) What type of discounts can be setup in AX with respect to sales?

The four types of discounts in the trade agreements are:

✓ Sales price: Separate item sales prices can be specified. The application searches for and
transfers the correct item sales prices to the quotation lines when they are created; therefore,
this type of trade agreement does not impact the price simulation process. The item sales price
that is used in the quotation line accounts for the sales price trade agreement.
✓ Line discount: Special item discounts are specified depending on the ordered amount. Line
amounts are typically reduced by the line discount before a price simulation is run; therefore,
this type of trade agreement impacts the price simulation process.
✓ Multi-line discount: If the combined amounts exceed the limit that you have defined, predefined
combinations of ordered items trigger a discount on the entire order. Line amounts typically are
reduced by the line discount before a price simulation is run; therefore, this type of trade
agreement impacts the price simulation process.
✓ Total discount: If the combined amounts exceed the limit that you have defined, predefined
ordered items trigger a discount on the entire order. The total discount is generated by the
quotation lines but applied to the quotation total as a discount, reducing the total quotation
amount; therefore, this type of trade agreement impacts the price simulation severely.

61) Define various trade agreement journals for items and customers in Ax?
Click Sales and marketing > Journals > Price/discount agreement journals.
OR
Click Procurement and sourcing > Journals > Price/discount agreement journals.

Use this form to create and maintain multiple trade agreement journals.
To create a journal, select a journal name and enter a description of the journal. When the journal is
created, click Lines to open the Journal lines, price/discount agreement form. You can use this form to
view, modify, or create trade agreements.
Price and discount information that is set up in the Price/discount form is used on sales orders and
purchase orders. This information is used when you enter order lines and calculate discounts.
Before you set up prices and discounts in the Price/discount form, follow these steps:
 • In the Activate price/discount form, enable the combinations of price agreements to work with
Set up price and discount groups if you want to create prices or discounts for groups of
customers, vendors, or items. You set up the price groups in the Customer price/discount
groups, Vendor price/discount groups, and Item discount group forms.
• Assign the groups to customers, vendors, or items in the Customers, Vendors, or Released
product details forms.

62) How do you define external item code and description in AX?

Click Product information management > Common > Released products. On the Action Pane, click
the General tab, and select External codes
Or
Click Sales and marketing > Common > Customers > All customers. On the All customers list page,
double-click a customer. On the Sell tab, click Setup > External codes
Or
Click Accounts receivable > Common > Customers > All customers. On the All customers list page,
double-click a customer. On the Sell tab, click Setup > External codes
Use this form to set up, define, and maintain external codes for different fields that are used to send and
receive documents electronically through Application Integration Framework (AIF).
The fields for which you can define codes differ depending on where the form is accessed from. For
example, if you open this form from the Released products form, you can define external codes for the
company's own item numbers. If you open the form from the Customers form, you can define external
codes for the company's customer account numbers.
External Codes are used with the Intercompany functionality. If you have two company accounts in your
environment, company A can purchase an item from company B and have the Sales order in company B
automatically created. The External codes link company A's item number to company B's item
number. External codes are also used for this same purpose on Vendor accounts, Customer accounts,
Delivery Terms, Modes of delivery, etc.

63) Is it possible to apply charges on sales, what are the ways charge codes defined for sales charges?
In the real-time business scenarios there may be some additional expenses (over & above the goods
value) incurred on the purchase or sales transactions; these expenses can be freight, loading &
unloading charges, insurance etc.
There are 2 scenarios
1. To add the expenses to the total purchase order or vendor invoice
2. To load the value of the expenses to the goods to determine the cost of goods or cost of good sold.
In order to maintain & record the additional expenses during a purchase or sales transaction in Ax we
use charge codes. The use of charge codes is available for purchase & sales both and has a similar way
of setup.
In Ax this can be achieved with the help of Maintain charges functionality.
1. Setting up Charges for Purchase:
1. Accounts Payables –> Setup –> Charges –> Charges code
2. Define a new Charge code
3. Define Purchase Tax code (if charges are taxable)
4. Define the Debit & Credit posting at the Posting tab to determine the charges will be posted:
 o In case the charges are to be added to the total purchase order or the invoice:
▪ Debit field group:
▪ Type field: Select option Ledger account
▪ Account field: Select the relevant ledger account for charges.
▪ Credit field group:
▪ Type field: Select option Customer/Vendor
The above setup will ensure that the expenses are debited to the correct expense account & added to
the Vendor’s account while invoicing.
o In case the charges are to be added to the value of the goods:
▪ Debit field group:
▪ Type field: Select option Item
▪ Credit field group:
▪ Type field: Select option Customer/Vendor
The above setup will ensure that the expenses are debited to the product account & added to the value
of the goods while invoicing.

2. Setting up Charges for Sales:

1. Accounts Receivable –> Setup –> Charges –> Charges code
2. Define a new Charge code
3. Define Sales Tax code (if charges are taxable)
4. Define the Debit & Credit posting at the Posting tab to determine the charges will be posted:
o In case the charges are to be added to the total sales order or the invoice:
▪ Debit field group:
▪ Type field: Select option Customer/Vendor
▪ Credit field group:
▪ Type field: Select option Ledger account
▪ Account field: Select the relevant ledger account for charges.
The above setup will ensure that the expenses are credited to the correct expense account & added to
the Customer’s account while invoicing.

64) Suppose you want to setup vendor item number and item description - expalin the process of
setup available?
1. Select the item that required second description. On the Purchase tab, there is a button called
External item description. Do the necessary setup for vendor and external item code in Overview and
Description tab.
2. Go to procurement and sourcing, Setup, Forms, Forms setup. In the field Item number in forms,
select both.
65)What is terms of delivery what is the importance of it?
Click Sales and marketing > Setup > Distribution > Terms of delivery.
Or
Click Procurement and sourcing > Setup > Distribution > Terms of delivery.

Use this form to specify the terms of delivery that are used by the company accounts, customers, and
vendors. The terms of delivery specify the conditions for an item's transfer from seller to buyer. Terms
of delivery are used on sales orders and purchases orders. International delivery terms include FOB
(freight on board) and CIF (carriage, insurance, and freight).
You can specify the terms of delivery in the following circumstances:
 ✓ When you set the conditions for change in ownership of the transferred products from seller to
buyer.
✓ When you specify the location of taxation.
✓ The terms of delivery can be specified as follows:
✓ For each customer in the Customers form
✓ For each vendor in the Vendors form
✓ When you enter sales and purchase orders
✓ When you enter sales and vendor invoices

66) How to setup modes of deliveries and how will you apply it in AX for various purchases?
Click Sales and marketing > Setup > Distribution > Modes of delivery.
Or
Click Procurement and sourcing > Setup > Distribution > Modes of delivery.

Use this form to set up modes of delivery for customers and vendors. The mode of delivery is the
means of transportation that is used when an order is delivered from the seller to the buyer. Use a
mode of delivery when you record orders and purchases.
Modes of delivery are printed on customer invoices.

67) Did you work on procurement workflow setup, explain the process?

Workflow is the technology used by Microsoft Dynamics AX to move the purchase requisition
through its life cycle from Draft to Approved. During the approval process, the Reviewers get involved
in the process. It is not possible to approve a purchase requisition without a workflow
Some organizations require that vendor requests, purchase requisitions, and unconfirmed product
receipts be approved by a user other than the person who entered the transaction. To set up an
approval process, you can create a workflow.
A workflow represents a business process. It defines how a document flows through the system and
indicates who must complete a task or approve a document. There are several benefits of using the
workflow system in your organization:
• Consistent processes — You can define the approval process for specific documents, such as
purchase requisitions and expense reports. Using the workflow system helps to ensure that
documents are processed and approved in a consistent and efficient manner.
• Process visibility — You can track the status, history, and performance metrics of a specific
workflow instance. This helps you determine whether changes should be made to the workflow
to improve efficiency.
• Centralized work list — Users can view a centralized work list to view the workflow tasks and
approvals assigned to them. This work list is available from the Role Center pages in the
Microsoft Dynamics AX client and Enterprise Portal.
There are different types of work flows different modules ,,each and every module will have the
workflows:
Account Payable, Account Receivable, budgeting, General Ledger, Fixed Assets,
PROCUREMENTSOURCING, ORG ANDMIN,S YS ADMIN, TRAVEL AND EXPENSE ETC..
WHREAS COMING TO PROCUREMENT AND SOURCING WORKFLOWS:
1. Click Procurement and sourcing > Setup > Procurement and sourcing workflows.
2. On the Action Pane, click New.
3. Select the type of workflow that you want to create, and then click Create workflow.
4. In the workflow editor, design the workflow by dragging workflow elements onto the canvas.
 5. Configure each element of the workflow. For more information, see Configuring the workflow
system.
6. Repeat steps 2 through 5 to create additional workflows for Procurement and sourcing

THE PURCHASSE ORDEEER APRROVAL PROCESS WILL BE:

DRAFT>IN-REVIEW(OR REJECTED)>APRROVED>CONFIRMED>FINALISED..

68) What is the the purchase cycle, explain the purchase cycle with respect to AX?
The purchase cycle is nothing other than the set of processes that a business or an
industry follows to fulfill the business requirements. The Purchase cycle differs from the industry to
industry & business to business. However, the purchase cycle at its core remains the same.
Step 1: When the ABC Ltd plans/identifies the quantity of goods that would be required to meet the
upcoming demand in near future (depending on the business). This plan can be based on the demand
(sales orders placed by different customers) or for the stocking purpose. Once the plan is decided the
company takes the next step. This process in Ax terms is called Master planning (PURCHASE
REQUISITION)
2. Request For Quotations
3. Compare Quotations And Confirmation.
4. Product Receipt.
5. Invoicing
6. Payment
Trade and Logistics, Accounts Payable and Accounts Receivable integrates with Finance or GL with Item
groups. To get more knowledge on Item groups
Navigate to Inventory and warehouse management –> Setup –> Inventory –> Item groups
Item group form has few panes or fast tabs called
▪ Sales order
▪ purchase order
▪ Inventory
▪ Production
▪ Setup
▪ It has all accounts type which will be effected during Purchase order posting process and its
related Main account fields. we need to select all related ledger accounts in the Main accounts
field.

How to assign Item group to Item or Product.

▪ Navigation
▪ Go to Product information management –> common area—> Products –> Released products –>
Select the product –> Released product details form opens –> Click Edit action in Maintain
Group in action pane—> Click Manage costs Fast tab –> Posting section –> Item group field
–> Select a option from the dropdown –> Exit from the form
Once you perform the purchase order automatically ledger will get effected and we can see it on
(vouchers) by clicking on invoice in action pane and again invoice journals…

69) What is the difference between Purchase Order and Sales Order in ax?
Sales Order, where you sell items to a customer. The form is used to ship stock, decreasing inventory,
and to ultimately invoice the customer and create the liability on the customer.
 Purchase Order, where you as a business buy inventory. The form is receive stock, increasing
inventory, and, if you wish, to process the vendor invoice against and create your own liability to the
vendor.
70) Differences between trade agreement and purchase / sales agreement?
Both function are little different from each other.
where in purchase agreement you have to create a agreement between your company and supplier
or customer with the number of items with the quantity and amount and from the same agreement
area you can create purchase order as well as sell order and it will be the replica of price from that
agreement.
trade agreement is the combination of vendor and item where you can define the item price per
vendor example
vendor A give item x at cost of 10
and vendor B gives item x at cost of 12 so here you can define and when ever you create the PO you
will get this price.
trade agreement is mostly used in retail industries and purchase & Sales agreement is used in
construction, manufacturing etc company where item price is fixed for certain time.
71) What is sales order/back order?
AR -> Inquiries -> Order status -> Back Order Lines
(Or)
Customer -> Inquiries -> Back Order Lines
Back Order Lines will give you the information of lines that are not yet delivered and need to be
delivered with in the selected date.
The back order lines can be open sales order lines but all the open sales order lines need to be
considered as back order lines as they depend on the delivery.

72) About sure step methodology ?

Sure Step defines 6 Main Phases and 2 additional phases for optimization and upgrade. It covers
the complete lifecycle from project initiation, development, deployment, optimization and upgrade to
the next version. A phase ends with a milestone. A milestone is a sum of artefacts created or refined in
the phase. If the milestone is accomplished you may start the next phase. At the first look the phases
look like a waterfall model, but of course Sure Step isn't waterfall. Cause waterfall don't works in reallity.
Sure Step Phases:
▪ Diagnostic: The diagnostic phase contains analysis of the customer process at a very hi level. Focus
of the diagnostic phase is the project initialization; To setup a project plan, agree on an approach
and scope definition.
▪ Analysis: In the analysis phase most of the business processes are identified and documented at a
high level. If necessary an external specialist helps you to do so. Goal of the analysis phase is to
understand the customers business and processes performed. Modeling and documenting the
customers business is important. Microsoft Provides a new tool for the modeling: Microsoft Sure
Step Business Modeler
▪ Design: Main purpose of the design phase is to find a way how the customers processes and needs
can be implemented with Dynamics. At this point there may be more than one solution for a topic.
You need to identify the best strategy for the implementation phase. Although prototyping is not
covered in sure step, this is the point where to build prototypes and do load testing on the
prototype implementation.
▪ Development: Most of the programming work is done in the development. Development covers the
creation of new features and adaption of existing features as well as the data migration. All features
and the data migration has to be tested. Beside feature and data migration testing it is necessary to
 do security testing. The phase ends when most of the specified features are developed and tested
and the data migration is done.
▪ Deployment: Goal of the deployment phase is to setup the operational dynamics environment at
the customer. Beside installation, configuration and feature deployment, the phase focuses on
testing at system level. So you have to run the user acceptance tests, process tests, security tests
and load tests as defined in the test plan. When the system runs and all tests pass the deployment
phase is finished.
▪ Operation:
▪ Optimization:
▪ Upgrade:
Or
Phase Tasks during phase

Diagnostic • Evaluate a customer's business processes and infrastructure

• Assist the customer with their due diligence cycle, including ascertaining
requirements and their fit with the solution, and assessing the resource needs for
the solution delivery
• Prepare the project plan, proposal, and the Statement of Work

Analysis • Analyze current business model and finalize the Functional

Requirements document
• Finalize the fit-gap analysis
• Develop the Environment Specification documentation

Design • Develop the Functional Design, Technical Design, and Solution Design documents
• Finalize the data migration design
• Establish test criteria

Development • Finalize configurations and setup of the standard solution

• Develop and finalize the custom code that is required to support the solution
• Conduct functional and feature testing of the solution
• Create the user training documentation

Deployment • Set up the production environment

• Migrate data to the production environment
• Conduct user acceptance test of the system
• Train users and finalize the user documentation
• Conduct go-live check and promote the system to production

Operation • Resolve pending issues

• Finalize user documentation and knowledge transfer
• Conduct a post-mortem of the project
• Provide on-going support (activities that continue through any future involvement
with the customer after the project is closed)
The Sure Step methodology also provides guidance for the following areas:
Activity area Actions performed
Optimization • Leverage Review Offerings to determine proactively if the system is being designed
and delivered optimally to meet the customer’s requirements
• Analyze the system to determine how it can be optimized for the best performance
based on customer's needs

Upgrade • Assess the customer's current business processes and solution

• Document the requirements for new functionality
• Upgrade the system to new release—including the addition of new functionality,
promotion of existing customizations that are required, and elimination of custom
code no longer required

73) About Posting Profiles?

Posting profiles specify the ledger accounts that are affected when source documents are
posted to the general ledger or when journal entries are journalized. You can set up default posting
profiles for customers or vendors. The posting profiles for customers or vendors will be used as default
entries when source documents or journal entries are created.
Each posting profile is associated with only one offset account. Posting definitions, on the other hand,
can be associated with multiple offset accounts. If posting definitions are used, they replace posting
profiles for the source documents and journals where they are used. For more information, see About
posting definitions.
Posting accounts are specified for items in the inventory Posting form.
You can use posting profiles with all journals and source documents.

74) About Vendor Posting profile?

Click Accounts payable > Setup > Vendor posting profiles.

Use this form to set up the posting profiles that control the posting of vendor transactions to the general
ledger.

Note

When you record a vendor transaction, you can select a posting profile that differs from and takes
precedence over the posting profiles that are set up for transactions in this form. You can also use posting
definitions instead of posting profiles for some transaction posting types. For more information,
see About posting profiles and About posting definitions.

75) Sales order Types?

When you create a sales order, you must indicate the type of order that it is. You can select one of the
types that are described here

Order type Description

Journal Use as a draft; it has no effect on stock quantities and does not generate item transactions. Order
 journal lines are not included in master scheduling.

Subscription Use for recurring orders. When the order is invoiced, the order status is set automatically to open
order. Quantity delivered invoiced and remaining deliveries are updated.

Caution

You cannot use this sales order type if you are using the Warehouse management module.

Sales order Use when the customer actually places or confirms an order.

Returned Use when the customer returns items to stock. A return-item number (RMA number) is assigned
order automatically and can be viewed on the Other tab.

Item Created automatically when you make an item sale through a Project module. The project
requirements number can be seen in the Project column.

76) Purchase order Types?

When you create a purchase order, you must indicate which type of an order it is. You can select one of
the types that are described here:

Tip

You can set up a default purchase order type in the Procurement and sourcing parameters (form) in
the Purchase type field.

Purchase order
Description
type

Journal Use as a draft. This type does not affect stock quantities and does not generate item
transactions. The purchase order journal lines are not included in master scheduling.

Purchase order Use when the vendor confirms an order.

Returned order Use when you return goods to the vendor. The returned item number, this is the RMA
number, that the vendor gives you must be entered on the Othertab.
78) what is shipment template?
A shipment template is a collection of default settings that are used when a new shipment is
created. The more information that is specified on the shipment template, the easier it is to create a
new shipment. You can create any number of shipment templates so that as little information as
possible must be changed on the individual shipments.

The mandatory fields on a shipment template include the following:

• Shipment template
• Sequence ID
• Site
• Warehouse

Shipments can be created manually or automatically. Automatic creation of shipments is a setup option
in the Shipment templates form. When an output order is created, the existing shipment templates are
searched for a site and warehouse that match the output order. If a template is found, a new shipment
is created, and the output order is added to it. If more than one template matches the output order,
the Priority field value for the template is used to determine the template with the highest priority,
where a value of 1 is the highest priority. That template is used to create the shipment.
If no template is found, you can create a shipment manually in the Shipments form, or you can add it to
an existing shipment.

79) About shipment ?

A shipment is a collection of items that are packed in the same container for transport by, for
example, ship, rail, truck, or plane. A shipment includes all of an order, a part of an order, or a
consolidation of multiple orders.
Based on the contents of the shipment, one or more picking routes, one or more pallet transports, or
both are created.
Output order is a request for picking requirements and is the basis of a shipment. From the shipment,
you can enable a pallet transport, a picking route, or both. The shipment status is based on the lowest
denominator of the shipment line status.

Registered: The shipment has been created but not yet reserved or, if just one shipment line exists,
without being part of a route.
Reserved: The shipment has been reserved, and picking routes or pallet transports have been
generated, but they have not yet been released for picking.
Activated: Both picking routes and pallet transports have been released, but not all of them have been
completed.
Note that picking can start even when all items for the shipment cannot be reserved.
Picked: At least one line of the shipment line is still at the picked stage.
Staged: At least one line of the shipment line is still at the staged stage.
Loaded: At least one line of the shipment line is still at the loaded stage.
Sent: The shipment has been sent, and it has been fully expedited.
Canceled: The shipment has been canceled.

80) About Posting profiles ?

 Posting profiles specify the ledger accounts that are affected when source documents are posted
to the general ledger or when journal entries are journalized. You can set up default posting profiles for
customers or vendors. The posting profiles for customers or vendors will be used as default entries
when source documents or journal entries are created.
Each posting profile is associated with only one offset account. Posting definitions, on the other hand,
can be associated with multiple offset accounts. If posting definitions are used, they replace posting
profiles for the source documents and journals where they are used. For more information, see About
posting definitions.
Posting accounts are specified for items in the inventory Posting form.
You can use posting profiles with all journals and source documents.

81) About customer posting profile ?

Posting definitions are an alternative to posting profiles. You can use both posting definitions and
posting profiles to create subledger journal lines for originating transactions that meet selected criteria.
However, posting definitions and posting profiles are not interchangeable. You might have to use both
to meet your organization’s needs.
You use posting definitions instead of posting profiles for the transaction types that you select in
the Transaction posting definitions form. You must set up a posting profile or a posting definition for
each posting type.

82) About inventory journals ?

To open a journal, click Inventory management > Journals, and then click a journal type. The
following types of inventory journal are available:
• Movement
• Inventory adjustment
• Transfer
• Bills of materials
• Item arrival
• Production input
• Counting
• Tag counting
In the journal form, on the Overview tab, you can select to view all journals, open journals, or posted
journals. In the Show field, click All, Open, or Posted.

83) Difference between the inventory journals - adjustment, movement and transfer?
There are three types of journals available under Inventory Transactions in AX 2012 Inventory
Journals. These journals are fairly similar in nature. But certain differences make them stand apart.

When you use the inventory adjustment journal, you can add cost to an item when you move the
inventory. The additional cost is posted automatically to a particular general ledger account according to
the Item group posting profile setup.
When you use the inventory movement journal, you can add cost to an item when you move the
inventory. You would have to allocate the additional cost to a particular general ledger account
manually in this case.

The inventory transfer journal can be used to transfer items from one warehouse to another within the
company without associating any cost implications to it. This journal is the only one out of the three,
where you would have to mention both the FROM and TO inventory dimensions like site and
warehouse.

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