Appendix A: Microsoft Dynamics AX Functionality

APPENDIX A: MICROSOFT DYNAMICS AX

FUNCTIONALITY
Objectives
The objectives are:

Identify the key features and benefits of Microsoft Dynamics AX in

financial areas.

Identify the key features and benefits of Microsoft Dynamics AX in

supply chain management areas.

Identify the key features and benefits of Microsoft Dynamics AX in

customer relationship management and human resource management
areas.

Introduction
Microsoft Dynamics AX 2012 is Microsoft's Enterprise Resource
Planning (ERP) solution for large and midsize enterprises that empowers your
people to anticipate and embrace change, enabling your business to thrive.
This appendix provides an overview of the various modules of the Microsoft
Dynamics AX.
Modules discussed in this appendix include the following:

Financial Management

Supply Chain Management

Trade and Logistics

Master Planning

Project Accounting

Customer Relationship Management

Human Resource Management

Introduction to Microsoft Dynamics AX 2012

Financials
The Microsoft Dynamics AX Financial Management module provides fast,
reliable, and comprehensive accounting, financial reporting, and analysis. It also
provides all the functionality that is required to update accounts efficiently and
comply with reporting requirements.
Basic capabilities of the Financial Management module include the following:

General Ledger

Liquidity Management (Bank Management)

Accounts Receivable

Collections

Accounts Payable

Fixed Assets

Expense Management

Dimensions are used across the various modules in Microsoft Dynamics AX.
They can be used for tracking profit, cost centers, departments, value streams,
product lines, or any other reporting units. The ability to update the general
ledger online provides fast and accurate financial reporting. Financial dimension
features also include the following:

An advanced control feature that enables the driving of contextual

value restrictions on financial dimensions.

Financial controllers can specifically restrict authorized values or

value combinations at the entry point on chosen table collections or
journal names, or upon posting to chosen ledger accounts.

Dimension sets that combine dimension types can be built to drive

and control the dimension value dependencies.

Data reliability is increased regarding financial dimensions across

the company and according to specific corporate needs or policies.

Because all the Microsoft Dynamics AX modules are part of one system, a
transaction in one module automatically updates corresponding accounts in the
general ledger.

Financial Management Business Analysis

Decision makers in a global marketplace face the following questions everyday:

Is the business healthy?

Who are my best customers?

Which supplier do I select?

Appendix A: Microsoft Dynamics AX Functionality

Microsoft Dynamics AX enables accurate and timely analysis to provide
companies with the edge they must have to successfully compete. Starting with a
larger overview and drilling down to the details, Microsoft Dynamics AX helps
companies learn from historical data, investigate opportunities, and to quickly
target markets and customers with pinpoint accuracy.
Analysis in Microsoft Dynamics AX is based on Online Analytical Processing
technology (OLAP). This enables multidimensional analysis by using the
Microsoft SQL Server Analysis Services. With Microsoft Dynamics AX, the
OLAP functionality and the ERP system are integrated so that all mappings occur
directly in Microsoft Dynamics AX, taking full advantage of business
information and making the most of relationships between tables, extended data
types, and enum labels. There are a variety of dimensions to explore that include
time, products, geographical regions, or sales channels. CEOs, CFOs, managers,
controllers, accountants, and sales and marketing staff can create, view, and
understand reports that previously were complex, expensive, or time-consuming.
The data used for analysis is regularly updated because it includes changes as
they occur in Microsoft Dynamics AX or subsequent data sources.

Financial Management Financial Reporting

The Financial Statement feature enables the building of a custom reporting
structure and mapping ledger accounts or dimensions to the reporting structures.
In financial statements, users can map:

Ledger accounts

Financial dimensions

Combinations of the two

The Financial Statement feature is a powerful reporting tool that explores

financial figures depicted in a company context and from a business perspective.
For example, financial row structures can be created to focus on cost accounts
and the cost accounts can be drilled by:

Cost centers

Departments

Combinations of the two

With the financial statement reporting feature, users can create many different
financial reports to comply with legal requirements and international accounting
standards such as the following:

Balance sheet

Income statement

Cash flow statement

Introduction to Microsoft Dynamics AX 2012

Financial statements are fully compatible with Extensible Business Reporting
Language (XBRL). The taxonomies can be converted into row definitions ready
to map. This enables the generation of XBRL output from the financial
statement.
Because of integrated workflow capabilities, users can define approval
authorities based on employee hierarchies, user groups, users, or rules.
Submitters and approvers can also be alerted to various activities during the
approval process.
Expense Management provides defined rules, expense policies, which employees
must follow when entering, submitting, or approving expense reports.
Implementing expense policies can help companies manage expenses effectively
and monitor travel and entertainment expenses.
Expense Management provides the following actions to be taken if expenses are
exceeded:

Flag the transaction and display a message to submitter and

approver, but enable submittal and approval.

Flag the transaction and display a message to submitter and

approver, but do not enable submittal.

Financial Management Multicurrency

When transactions are made in several currencies, it can be a time-consuming
and error-prone task to reconcile fluctuations in relative currency value.
Microsoft Dynamics AX manages the following three currencies:

Transaction currency

Base currency

Secondary reporting currency

Microsoft Dynamics AX makes it possible to track all transactions in all

currencies and automatically calculate and update realized and unrealized gains
and losses.
The detailed currency information is stored in the subsidiary ledgers in addition
to the general ledger.

Financial Management Printing Documents

When printing documents such as invoices or packing lists, you can use defined
settings for the original or copy records in print management. These settings
include the following:

Number of copies to produce

Multilingual document footer text

Print destination

Appendix A: Microsoft Dynamics AX Functionality

An original or copy record contains the information that is used by print
management to print the document. The record that is used to print a document
determines:

The footer text for the document

The printer to use

How many copies to print

For example, to print three copies of the sales order packing slip, each with
different footer text, you need to set up an original record and two copy records.
The print management setup information for each document type is defined in a
hierarchical list and that consists of the following:

Modules

Accounts

Transactions

Combination of these three

When a document is generated, it is printed according to the effective original

record and effective copy records. An effective record can be inherited from a
higher level in the hierarchy or created as a new record for the current level in the
hierarchy, or it can override an inherited record that has the same name.

Financial Management Key Features and Benefits

Financial Management provides the following key benefits:

User-friendly, timesaving accounting

Fast and efficient reporting and analysis

Financial Management offers the following key features:

Intuitive and adjustable layout

Dimensions

Financial statements

Multi- and second-currency management

Transaction validation and transaction approval

Intercompany accounting and consolidation

Multiple budgets

Fixed assets

Credit assessment and credit control

Electronic payment

Handling of drafts/promissory notes

Introduction to Microsoft Dynamics AX 2012

Collection letters and interest calculation

Report generator

Audit trail

Print management

Fill in the Blanks

Fill in the blanks to test your knowledge of this section.
1. ___________ can be used for tracking profit, cost centers,
departments, and regions.
2. _____________ transactions posted to one subsidiary are
automatically posted in the other subsidiary.
3. Financial analysis in Microsoft Dynamics AX 2012 is based on
_____ technology.
4. Detailed currency information is stored in the __________ ledgers in
addition to the general ledger.

Expense Management Overview

Microsoft Dynamics AX Expense Management helps companies manage, track,
and reimburse travel and entertainment expenses.
Expense Management has a strong value proposition for organizations with
discretionary spending. Travel and entertainment expenses are generally a
company's second largest controllable expense. To help curb these costs, Expense
Management provides a mechanism to define and apply expense policies, in
addition to flagging and reporting abusers of the policies. Additionally,
automating the entry and reimbursement of travel and entertainment expenses
reduces processing costs versus manual entry.
Expense Management is tightly integrated with other Microsoft Dynamics AX
modules, such as Project accounting, Accounts payable, and General ledger.
A per diem is a daily allowance provided to an employee who is traveling for
business. Expense Management enables you to define the per diem amount for
hotel, meals, and other incidental expenses for each location. The location that is
specified can be as general or specific as wanted and can reference a city, county,
region, or country.
Users can easily access Expense Management functionality from Enterprise
Portal. This provides a robust user interface that is available to all employees, not
only those who use the Microsoft Dynamics AX client.
Users can create, delete, or modify expense reports and cash advance requests
online from any point of the world; or even define other users to enter expense
reports on another's behalf.

Appendix A: Microsoft Dynamics AX Functionality

Expense Management Key Benefits
Expense Management provides the following key benefits:

Analyzes and tracks a company's travel and entertainment expenses

Plans and calculates future expenses and reimbursement amounts for

various locations

Creates multiple expense reports online

Defines delegates for generating expense reports and managing

relative delegate information

Expense Management Key Features

Expense Management has the following key features:

Setup of various payment methods for travel and entertainment

expenses

Categories for tracking specific types of expense transactions

Record track of the per diem rates, mileage rates, and corporate card
numbers by employee

Workflow configurations

Alerts to submitters and approvers about various activities during the

approval process

Definition of expense reasons for generating reports

Expense policy system

Import of credit card transaction files

Allocation of per diem amounts

Statistic groups to combine various expense categories for reporting

Online printing of expense reports and cash advances

Multiple Choice
The Microsoft Dynamics AX 2012 Expense Management module helps
companies manage, track, and reimburse ___________ expenses.
( ) revenue and customs
( ) travel and entertainment
( ) medical and recreation
( ) general and administrative

Introduction to Microsoft Dynamics AX 2012

Multiple Answer
What Microsoft Dynamics AX 2012 modules are Expense Management tightly
integrated with? Mark all that apply. (Select all that apply)
( ) Project accounting
( ) Accounts receivable
( ) Accounts payable
( ) General ledger

Supply Chain Management

SCM involves a highly interactive process of controlling, planning, and
implementing all the activities associated with moving goods from the raw
material stage through to the end-user stage, with the lowest cost and the highest
quality. Regardless of whether a company operates with a single
production/distribution site, or multiple sites in different geographical locations,
the system must capture and reflect the elements which will enable optimal and
appropriate decision-making and monitoring throughout.
The multisite functionality introduced in Microsoft Dynamics AX enables you to
work with multiple sites in a single legal entity.
Before activating multisite functionality, customers must first analyze their
business requirements and determine how to use the multisite functionality.
Make sure that you create a reliable working model of the company's operational
sites and processes before implementing this feature.
For example, there is a company with three operational sites, located in different
states in the United States. The relationships of the sites to each other, the flow of
goods, the various work centers, warehouses, and so on, must be thoroughly
understood before multisite is activated.
By using information that is stored in Microsoft Dynamics AX, users can do the
following:

Analyze the relationship between costs and sales, including specific

details, such as sales on:
o
o
o
o

Different item groups

Individual items
Customer groups
Individual customers

Appendix A: Microsoft Dynamics AX Functionality

Accurately monitor revenue across the company, based on factors

such as the following:
o
o
o
o

Country
Region
Customer group
Time period

Supply Chain Management Key Benefits

Supply Chain Management provides the following key benefits:

Multisite inventory storage and tracking

Synchronized, real-time product movement

Improved order fulfillment and accuracy

Reduced process inefficiencies and excess inventory

Enhanced workload balancing and planning

Compliance with industry standards

Reduced transportation costs

Supply Chain Management Key Features

Supply Chain Management offers the following key features:

Multisite Functionality - Associates all inventory transactions to the

relevant sites in different geographical locations in a single company.

Optimized Multichannel Fulfillment - Causes maximized

inventory utilization and real-time order management.

Cross-Docking Capabilities - Enables same-day order fulfillment

and reduces costs.

Business Process Synchronization - Enables immediate, online

transfer of documents between suppliers, logistics operations,
transporters, customers, and the manufacturer.

Facility and Labor Optimization - Maximizes space usage and

reduces order cycle time, product damage, and replenishment costs.
Provides data to monitor and measure results.

Performance Management - Enables measurement and action on

key performance indicators.

RFID Functionality - Increases efficiency from receiving through

put-away, and enables creation of RFID-enabled tags at the pallet,
case, or item level.

Constant Replenishment - Supports min/max inventory levels on a

constant basis, therefore accommodating smaller orders.

Introduction to Microsoft Dynamics AX 2012

Integrated Transportation Functionality - Considers multimode

and multiroute shipment options. This causes more efficient
movement through the whole supply chain.

Quality Control - Monitors the quality testing requirements;

manages non-conforming products and items and tracks and resolves
customer or vendor problems.

Enhanced Costing and Inventory Valuation - Improves the

performance and accuracy of costing and inventory valuations.

Multiple Answer
What are the goals of the Microsoft Dynamics AX Supply Chain Management
module? (Select all that apply)
( ) Increase revenues
( ) Reduce inventory
( ) Lower costs
( ) Improve time to market

Warehouse Management Overview

Warehouse Management provides all the functionality that is required to
guarantee the warehouse is operating effectively and efficiently. Warehouse
management includes capabilities for the following:

Receiving items from both external suppliers and internal sources

Structuring item storage

Picking items before shipping

Packing items for shipment or transfer

Dividing warehouses into zones with different storage purposes

Associating one or more warehouses to different sites

Warehouse Management is completely integrated with other areas of

functionality in Microsoft Dynamics AX, including Logistics, Inventory
Management, and Production.

Warehouse Management Key Features and Benefits

Warehouse Management provides the following key benefits:

10

Facilitates efficient internal and external transfers

Optimizes warehouse storage area

Reduces operational costs such as warehouse size and labor

Responds quickly to customer demands

Appendix A: Microsoft Dynamics AX Functionality

Warehouse Management offers the following key features:

Serial number and batch number control

Item registration and placement

Multiple inventory dimensions

Location control

Arrival overview

Shipment reservation

Consolidated picking and delivery

Staging

Pallet transport

Warehouse zones and hierarchy system

Trade and Logistics Overview

Trade and Logistics provides universal sales and purchasing functionality in
addition to inventory management tools. These operations are fully integrated
with other Microsoft Dynamics AX modules and support other Supply Chain
Management and Production functionality.
Trade and Logistics encompasses sales order processing, purchase order
processing, and inventory management, in addition to elements of distribution
and warehouse management.
The Intercompany functionality saves time and money because it enables several
subsidiaries or distribution centers to trade internally within one Microsoft
Dynamics AX installation. When you use Intercompany functionality, you do not
have to create manual sales or purchase orders, and you have more control and
visibility regarding transfers.

Trade and Logistics Sales Order Processing

Selling, delivering, and invoicing products are necessary for every business.
Microsoft Dynamics AX automates these processes.
Companies can use the sales order to deliver and invoice goods to the customer,
to print quotations, order confirmations, picking lists, packing slips, and invoices.
As part of this process, Microsoft Dynamics AX does the following:

Calculates applicable taxes and fees

Checks stock

Verifies credit for the customer

Identifies and highlights obstacles

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Introduction to Microsoft Dynamics AX 2012

The system guarantees that the customer obtains the appropriate price based on
trade agreements, quantity discounts, and specials. If items are out-of-stock, onscreen messages offer suggestions and shipment information. Products can be
reallocated from other orders for special customers.
The system tracks items that are back-ordered, and then initiates shipment when
items arrive from production or from the supplier. Throughout the sales order
process, Microsoft Dynamics AX captures all the information needed for
statistical analysis and commission payment.
Sales Order Processing functionality supports tasks related to the following:

Quotations

Orders, including:
o
o
o

Multiple Ship To
Direct vendor-to-customer shipping
Enhanced delivery date control

Returns

Subscriptions

Confirmations

Picking lists

Packing slips

Invoices

Credit notes

Backorders

Cash on delivery

Commissions and taxes

Statistics and reports

Credit card processing

Sales price agreements

Throughout the system, sales orders can be entered in foreign currency. All
posted transactions are transferred to domestic currency and hold information
about the amounts in both domestic and foreign currency.

Trade and Logistics Purchase Order Processing

Purchase Order Processing tracks products being ordered and maintains vendor
information. It updates inventory and the appropriate financial accounts when
purchases are ordered, received, and invoiced. In addition, because of the recent
enhancements, a company can invite suppliers to bid on specific products or
services and issue a request for proposal (RFQ) to multiple vendors. The RFQ
replies can then be recorded and transferred to specific purchase orders.

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Appendix A: Microsoft Dynamics AX Functionality

Purchase Order Processing supports the following purchase related tasks:

Issuing requests for proposal (RFQ)

Creating the purchase order

Entering vendor and order information

Entering items or services to be purchased

Posting the purchase order, packing slip, receipts list, and invoice

As part of this process, the system does the following:

Calculates applicable taxes, fees and charges

Updates stock values

Verifies credit for the vendor

Identifies and highlights obstacles

Updates Accounts payable and General ledger

Guarantees that prices are calculated using trade agreements,

quantity discounts, and specials

Generally, Purchase Order Processing supports tasks related to the following:

Purchase requisitions

Orders, with direct vendor-to-customer shipping

Returns

Requests

Subscriptions

Packing slips

Receipt lists

Invoices

Backorders

Supplier schedules

Taxes

Statistics

Reports

Throughout the system, purchase orders can be entered in foreign currency. All
posted transactions are transferred to domestic currency and hold information
about the amounts in both domestic and foreign currency.

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Introduction to Microsoft Dynamics AX 2012

Trade and Logistics Inventory Management
Inventory Management is central to Microsoft Dynamics AX Trade and Logistics
functionality. Inventory information is linked to the following areas in Microsoft
Dynamics AX:

General ledger

Accounts receivable

Accounts payable

Materials and Manufacturing resource planning (MRP)

Human Resources

Projects management

Inventory Management manages the cost and quantities of items purchased and
sold. This functionality supports retail businesses with merchandise inventory
and manufacturing companies with finished goods, materials, and work-inprogress from the physical and financial standpoint.
The system tracks inventory movement and enables computation of costs of
goods sold. Multiple units of measure can be used for purchasing, selling,
stocking, and pricing items. Inventory movements are tracked with quantities and
costs. This causes controlled inventory.
Note that with the multisite functionality activated, you can set up a preferred
vendor for every item and use site specific prices for items.
When processing a sales order, Microsoft Dynamics AX does the following:

Calculates what is that is required to fill the order.

Checks physical inventory.

Produces necessary production, purchase, or transfer orders

automatically.

Calculates statistics on sales and purchases.

As part of managing physical inventory, Inventory Management performs the

following actions:

14

Inventory tracking - Tracks any item in inventory through

inventory dimensions, configuration specifications, and lot ID.

Master Planning - Sets up the system to determine what is required

to fill an order when it is received.

Automated orders - Creates necessary production and purchase

orders to satisfy customer orders.

Appendix A: Microsoft Dynamics AX Functionality

Reservations - Reserve material to guarantee its availability for a

specific order.

Sales orders and purchases - As they affect inventory, they are

reflected in inventory.

Trade and Logistics Financial Analysis

Also, as part of the inventory management process, Microsoft Dynamics AX
supports these financial statistics:

Inventory values can be calculated at any time.

Inventory turnover amounts and rates can be calculated at any time.

Quantity of items sold can be calculated at any time.

ABC classifications enable analysis of which items are most

profitable from a sales perspective, and the cost of carrying the item
in inventory.

Sales and purchasing forecasts can be produced by using quantities

sold and planning estimates.

Budgets can be calculated using purchasing trends.

Trade and Logistics Key Features and Benefits

Trade and Logistics provides the following key benefits:

Sales, purchase, and inventory functionality is fully integrated with

other elements of Microsoft Dynamics AX modules.

Reserving inventory functionality is linked to sales and production

orders.

Financial data and statistics related to sales, purchasing, and

inventory are current and available.

Picking lists functionality creates picking lists only for available

items, and at the same time considers customer service priorities.

Direct shipping from vendor to customer expedites delivery.

Trade and Logistics offers the following key features:

Integrated sales processes and purchase processes.

Master planning is integrated with purchase, production, and transfer

order processes.

In sales order processing, if items are out-of-stock, on-screen.

messages offer suggestions and shipment information.

Sales and purchase orders can be entered in foreign currencies.

Multisite functionality.

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Introduction to Microsoft Dynamics AX 2012

Matching Activity
Categorize the following items:
_____ 1. Can be for both products and services.
_____ 2. In Sales Order Processing, this can be
converted to a sales order.
_____ 3. Creates picking lists only for available
items.
_____ 4. Sets up the system to determine what is
required to fill an order when it is received.
_____ 5. Puts items on hold for production or
sale, guaranteeing their availability for a specific
order.
_____ 6. Determines which items are most
profitable from a sales perspective, and the cost
of carrying the item in inventory.
_____ 7. Can be calculated using purchasing
trends.
_____ 8. Can be used for purchasing, selling,
stocking, and pricing items.

a. Purchase orders
b. Release sales order
picking
c. Multiple units of
measure
d. Master Planning
e. Quotation
f. Budgets
g. Reservations
h. ABC analysis

Master Planning Overview

Master Planning uses data provided by the Microsoft Dynamics AX Trade and
Logistics, Projects, Work Centers, and Production Series to do the following:

Minimize inventory carrying costs

Optimize product flow from suppliers through production to

customers

Run intercompany transactions

Satisfy customer demands

Improve overall business performance

The finite and infinite capacity and material planning helps companies do the
following:

Project long-term needs

Foresee fluctuations in demand

Adjust their plans accordingly

The shop floor can be managed more efficiently by reducing manual entry and
web-enabling employee information such as time registration. By collecting and
analyzing production-related information, such as work hours and production
activities, companies can improve cost control.

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Appendix A: Microsoft Dynamics AX Functionality

Gantt charts are available in Master Planning to provide graphical illustrations of
schedules related to a project for: Planning tasks Coordinating tasks
Tracking tasks Gantt charts can be used, for example, to assess the consequences
of staff rotations visually, through the graphic tool in a simple manner. Gantt
plans can be defined to help envision the production flow from one computer to
another.

Master Planning Planning Across Multiple Sites

Master Planning Forecast and Master Scheduling
The Forecast Scheduling feature in Master Planning uses product forecasts to
project long-term needs for materials and capacity. With Forecast Scheduling,
companies can do the following:

Foresee fluctuations in demand and adjust their plans accordingly.

Simulate different product sales scenarios to obtain reliable pictures

of gross demand. This provides a basis for negotiating better
agreements with subcontractors and for fine-tuning production
capacity.

Forecast more accurate production plans to eliminate stockpiling

inventory and still meeting customer delivery demands.

The Master Scheduling feature provides an overview of short-term purchase,

production, and resource requirements based on existing orders, forecast
scheduling, or both. This process streamlines the whole production process.
Master scheduling causes planned production, purchase, transfer of intercompany
orders, and net requirements.

Master Planning Intercompany Planning

Companies that need a quick overview of demands and supply in the chain of
internal companies can benefit from using Master Scheduling to create a crosscompany coverage plan.
Master Scheduling between multiple companies is possible in Microsoft
Dynamics AX under the condition that all companies are running in the same
database. This functionality enables the chain of companies to do the following:

React to a demand from the selling company

Transfer to a purchase order

Change the purchase order into a sales order in the related company

Transfer the sales order into a purchase order in another related

internal company

Order line explosions and planned order functionality are fully functional
between internal companies and part of the process can be automated to make
transfers and scheduling easy and quick.

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Introduction to Microsoft Dynamics AX 2012

Master Planning Key Features and Benefits
Master Planning provides the following key benefits:

Minimizes lead times, controls processing costs, and guarantees

maximum on-time deliveries.

Provides a detailed overview of inventory which assists in

purchasing or producing the appropriate products at the appropriate
time.

Provides continual tracking, evaluating, and re-planning based on

changing demand for materials and capacity.

Master Planning offers the following key features:

Forecast scheduling using product forecasts

Finite/infinite scheduling

Sales order explosion

Futures and action messaging

Support of multiple plans for forecast and master scheduling

Support of master scheduling for intercompany

Support of master scheduling across multiple sites

Multiple Choice
In what form does Microsoft Dynamics AX provide graphical illustrations of
schedules related to a project?
( ) Microsoft Excel spreadsheets
( ) Microsoft Visio diagram
( ) Microsoft Project
( ) Gantt chart

Multiple Choice
Master Scheduling between multiple companies is possible in Microsoft
Dynamics AX under what condition?
( ) All companies are running database servers in the same domain
( ) All companies share the same database of items, bills of material,
routings, and so on
( ) Cross-company security roles must be created to provide access to
each company's database
( ) All companies are running in the same database

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Production Overview
When selecting an ERP system, manufacturers are faced with a dilemma, where
they can do one of the following:

Select a solution that has strong manufacturing functionality at the

expense of general business functionality

Purchase a separate system, such as financial management, and

integrate the two

Microsoft Dynamics AX offers a solution with the full range of functionality in

one system. By using Microsoft Dynamics AX, manufacturers can do the
following:

Manage the whole production process from availability of raw

materials to the shipment of finished goods to customers.

Maintain multiple production sites over different geographic

locations and run them by a single Microsoft Dynamics AX
company.

Use the full benefit of a comprehensive production management

solution, when combined with the Work Center functionality.

Expand on the foundation of the Microsoft Dynamics AX Financials,

Trade and Logistics, and Master Planning functionality.

Extract data from anywhere in the whole production system. This

enables immediate important managerial decision-making
information.

View a simplified overview of even the most complex production

processes. This provides high-level information that is easy to
access.

Production Across Multiple Sites

Production includes features that support a company's ability to maintain a
variety of production sites distributed over different geographic locations. The
production sites must be contained in a single legal unit, that is, they must be run
by the same defined Microsoft Dynamics AX company.
With a new dimension, the production unit, companies can now structure and
assemble all their resources and data in groupings that are relevant to each site or
company.
The production unit provides the following:

Reflects the physical layout of resources and data particular to each

site or company.

Is unique for each site or for each company.

Simplifies BOM maintenance and identification of resources at each

site or company.
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Is used to filter information (in key forms), to enable the user to print
documents or view analytical data for each site or company.

Is not stamped on any inventory transactions.

The following illustrates one site that has two production units.

Production Key Benefits

Production provides the following key benefits:

Real-time insight into manufacturing processes

Manages stock more effectively

Manages production more efficiently and profitably, and at the same

time reduces overall costs

Supports production at multiple sites

Centralizes information about productions

Customizes your production plans as situations occur

Determines the best fit between a work center and a specific

operation

Saves valuable time by selecting the next best alternative resource

for a production

Gets an overview of all productions

Selects the best route for an operation on a given day

Controls resource use; makes sure a resource is available when

needed

Obtains a complete overview of the current status in your production

environment

Production Key Features

Production offers these key features:

20

Real-time monitoring of work-in-progress (WIP)

Master Scheduling

Multisite production support

Real-time information and instant calculations

Creates production order directly from a sales order line, with

automatic selection in the valid date and quantity ranges

Subcontracting

Phantom BOM

Configurable BOMs, selected by relevant date and quantity

Advanced, flexible, and detailed scheduling

Bottleneck scheduling

Appendix A: Microsoft Dynamics AX Functionality

Available-to-promise (ATP) functionality

Gantt planning functionality with ability to do drag-and-drop

rescheduling

Calculation of route scrap during production estimation

Uses alternative resources for an operation in a scheduling conflict

Ability to track the setup job or the process job per operation

Flexible routing with simple or complex routes

Manage primary and secondary operations

Production progress and overview

Forward and backward scheduling from various dates

Detailed tracking of cost related to resources and throughput

Lean manufacturing

Use of kanbans to control production

Uses mandatory combination of the date interval and the quantity

interval in selecting the active versions of the BOM and routing

Suggestion of changes to BOMs and Routings based on quantity

(quantity-depending BOMs and route versions)

BOM and route planning in the multisite environment

Service Management Overview

Service Management is designed for companies that want to manage their service
operations as a business.
Service Management provides capabilities best suited for:

Business-to-business service instead of business-to-end user service

Complex service arrangements that consist of repetitive and nonrepetitive service tasks on manufactured objects, instead of simpler
routine services such as cleaning or security

Service Management has a high degree of integration to the existing functionality

in the Project accounting module. This integration enables service managers to
track the exact costs of performing a service with regard to hour, expense and
item consumption, and how much revenue is earned from a particular service
transaction. By tracking these costs, managers can optimize service levels and the
revenue stream the company gains from performing services.
Based on the recent enhancements, Service Management can now use the
information residing in the Supply Chain Management (SCM) modules. This
enables faster work flow for users of Service Management, a better
understanding of where the service customer is today, and a deeper registration
of Sales related data into the Service Management module.

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Service Management Through Web
Service Management provides a dynamic management of service orders and
service agreements both for customers and service companies. With Technician
Portal and Customer Portal, both service companies and customers can manage
and oversee service orders, service agreements, and more through a web portal.
Through the Technician Portal, the service technician and service company can
handle daily operations and communication without relying on physical nearness.
The Technician Portal enables you to do the following:

View the data relevant for the technicians execution of service

Connect to the service company to provide a record of the service

made

By using the Customer Portal, the customer can seek information about both past,
current, and future service agreements and service orders through the Web.
Through the Customer Portal the customer can also create new service orders.
The Customer Portal enables the Service customer to do the following:

View the data relevant for the service operation done on service
items

Connect to the service company to initiate a service request

Service Management Key Benefits

Service Management provides the following key benefits:

22

Manages daily operations and communication without relying on

physical nearness of the service technician and service company.

Creates service agreements; service orders are generated periodically

as specified in the agreement.

Creates service level agreements; service level agreements enable to

track service ordering and evaluate the Service department
performance.

Creates ad hoc repair orders.

Tracks changes made to service objects that use BOM versions.

Tracks repairs, and gathers statistics on repair items and costs.

Creates repair BOMs, and subsequently modifies these BOMs.

Creates service subscriptions and accrues revenue from these

subscriptions appropriately.

Appendix A: Microsoft Dynamics AX Functionality

Service Management Key Features
Service Management offers the following key features:

Service subscriptions, including revenue accrual

BOM versioning

Service agreements

Service level agreements

Service orders

Repair

Customer Portal

Technician Portal

Web service orders

Sales to service integration

Service dispatcher

Matching Activity
Match the Service Management Portals to the functionality they provide in
Microsoft Dynamics AX 2012:
_____ 1.
Technician Portal
_____ 2. Customer
Portal
_____ 3.
Technician Portal
_____ 4. Customer
Portal

a. Connect to the service company to initiate a

service request.
b. View the data relevant for the service operation
done on service items.
c. Connect to the service company to provide a
record of the service made.
d. View the data relevant to execution of service.

Project Accounting
As the demand for faster and better service increases, so does the pressure to
automate processes and balance costs associated with projects and service
requests. For the growing number of companies that provide services to
customers, either as their core business or in addition to their products, the
challenge is to effectively manage knowledge, opportunities and resources.
Project Accounting provides a strong platform to help companies effectively
administer projects and achieve the results that they want.

23

Introduction to Microsoft Dynamics AX 2012

With Microsoft Dynamics AX, companies have the tools to facilitate:

Registration

Invoicing

Analysis

Project Accounting provides a strong platform to help companies plan, monitor,

and follow up on projects. The module supports a variety of functions including
managing time and materials in projects and advanced fixed price projects.
Because of integration with Microsoft Office Project Server TM 2007 and the
Microsoft Dynamics AX Project and Supply Chain Management modules,
companies now have even more options for managing their projects effectively.

Project Accounting Analyzing Projects

With Project Accounting, companies have many ways to analyze their projects.
This includes the following:

24

Work Breakdown Structure (WBS) which enables an activity

hierarchy and provides an overview of activity deliverables.

Flexible project hierarchy structure that includes a graphical

overview, and details fixed priced projects.

Statistics provide the necessary overview of the financial status of a

project.

An easy way to view both invoiced and non-invoiced transactions

using Invoice Control.

Committed cost (any cost that will be charged to a project but has not
been charged yet) is tracked against projects and enables project
costs to be controlled more efficiently.

An easy way to view the efficiency rates of employees and billable

hours being charged to a project using Hour Utilization.

View and forecast the cash flowing in from project invoices, sales
orders, subscriptions, and fees, and cash flowing out from project
purchase orders, item requirements, expenses, and hours using Cash
Flow.

With the trade agreement functionality implemented, sales prices and

discounts can be set up and applied to groups of projects.

Project data can be easily exported to Microsoft Excel and presented

in pivot tables.

Many reports are available to show actual versus budget reporting.

Appendix A: Microsoft Dynamics AX Functionality

Project Accounting Internal Projects
Both internal and external project types are supported in Project Accounting.
For internal projects, the following three configurations are available:

Time - gathers hours without ledger postings, for example, holidays

and training.

Cost - posts all costs of hours, expenses, and items to the Profit &
Loss (P&L) statement and cannot be capitalized.

Investment - uses the estimate system to capitalize the costs of

hours, expenses, and items during the project. On elimination, the
work-in-progress (WIP) value can be posted to a:
o
o
o

Fixed assets account

Ledger account
New project as an expense transaction

The main characteristics of internal projects are as follows:

They do not have customers and cannot be invoiced.

On-account transactions are not allowed.

Project Accounting External Projects

For external project types, two billing methods are available:

Time and Material

Fixed Price

The flexible project hierarchy structure for external projects enables companies
to work with parent/child projects.

The parent/child project combinations can consist of any of the

external project types. This enables the combination of, for example,
a parent project of the type Fixed Price with a child project of the
type Time and Material.

This flexibility enables companies to invoice costs to the customer

who are not a part of the fixed price project.

Project Accounting enables efficient project management with full financial

overview and control.

Project Accounting Key Features and Benefits

Project Accounting provides the following key benefits:

Efficiently establishes and manages internal and external projects

Closely manages the financial aspects of projects

25

Introduction to Microsoft Dynamics AX 2012

Manages and monitors multiple projects

Monitors activity deliverables and creates tasks for project activities

Project Accounting offers the following key features:

Work Breakdown Structure (WBS)

Project hierarchy structure

Registration of hours, costs, and item consumption

Registration of additional revenue and committed costs

Converts project quotation lines into project forecasts

Creates production orders directly from a project and automatically

creates and posts project transactions

Trade agreements

Easy viewing of invoiced and non-invoiced transactions

Invoicing of hours, costs, revenue, and items

Compares the project economics to the budgeted amount

Consultant self-service web sites

Multiple Choice
Internal projects can be invoiced.
( ) True
( ) False

CRM and HRM

Customer Relationship Management (CRM) may mean many things to many
people. CRM is actually a plethora of concepts, ideas, and strategies offered by a
large array of CRM specialists. The essence of CRM usually includes the
following three disciplines:

Know your customer

Act on what you know

Learn about what you know

Therefore, the main objective of Customer Relationship Management is to keep

and grow customers. Microsoft Dynamics AX can offer many new features in the
CRM module that enable a clearer view of a company's sales processes and helps
companies to do the following:

26

Better manage and conduct their sales processes

Better document processes and procedures for future use

Appendix A: Microsoft Dynamics AX Functionality

The Sales and Marketing functionality in the CRM module emphasizes the
salesperson and the sales organization. It gathers all a company's business
information and keeps it structured and easily available for use in supporting the
sales and marketing efforts of the company. This helps companies gain insight
that is required to identify their customers' demands, and to make optimal sales
and marketing decisions.

CRM Centralized Customer Information

Business relationships can be managed more effectively with all business
information that is stored centrally in one database. The sales force can plan and
evaluate activities and easily spot new opportunities because of the structured
and available information. By using this detailed information, they can create,
administer, and distribute campaigns directly from Microsoft Dynamics AX.
With the global address book in CRM any employee can be a customer expert.
The global address book is a repository for every person or organization that your
organization comes in contact with. Customers can be linked to each other across
the whole Microsoft Dynamics AX 2012 system. Multiple entities across
different companies in the enterprise can also be tracked in the address book.
Information about all the following entities is tracked:

Customers

Vendors

Employees

Business relations

Contact people

Competitors

CRM Key Areas

The four main areas of the Sales and marketing functionality in the CRM module
are as follows:
1. Sales Force Automation (SFA) - This includes functionality
regarding external business contacts in Microsoft Dynamics AX that
are named business relations, and their employees, referred to as
contact persons. SFA also includes activities performed by the sales
personnel in connection with the business relations.
2. Sales Management (SM) - This deals with the sales performance of
individual sales personnel, sales units, and the whole company.
3. Marketing Automation (MA) - This focuses on gathering a group
of activities; for example, email messages and direct mailings to a
group of selected business relations, therefore, gathering information
about a whole marketing campaign.
4. Telemarketing (TM) - Telemarketing gathers a group of business
relations and administers contacts or surveys to this group by
telephone.

27

Introduction to Microsoft Dynamics AX 2012

CRM Automating Sales Processes
Even on the road, the sales force has access to important information. By using a
mobile phone, a handheld phone, or a browser, they can access customer-related
information such as:

Projects

Invoices

Order history

Current total revenue

With the Microsoft Dynamics AX Enterprise Portal, most sales force activities in
the application can be performed through the portal. Enterprise Portal
significantly strengthens functionality by:

Giving users access to information regardless of their physical

location

Increasing the usability for members of the sales force, therefore,

increasing efficiency

For companies, this can help increase the bottom line and save money by:

Cutting moving expenses

Reducing office space

Reducing the need for furniture

Reducing incidentals that support employees in an office setting

CRM includes a price simulation tool to aid sales personnel in calculating and
saving various pricing scenarios for sales orders. The price simulation tool
enables discounting on a total quotation basis or on a quotation line basis and
calculates the effect of discounting on the contribution margin. CRM empowers
companies to maximize benefits from all their business relationships and
generate profit. Self-service portals for sales representatives and customers are
fast and easy to start. Customers can use these portals to do the following:
Browse through personalized product catalogs View the shipping status
Maintain their own contact information
Because CRM saves data in one centralized database, individuals and
departments can share information effortlessly. For example, the sales manager
can access projects, invoices, order history, and current revenue immediately
without the sales team needing to generate special reports. The result of the
centralized database is:

28

Better pipeline management

Improved control and co-ordination of sales force activities

An overall view of contact with customers

Appendix A: Microsoft Dynamics AX Functionality

All areas of the company can also benefit from the synchronization between
CRM and Microsoft Outlook by synchronizing these three objects:

Tasks

Calendar appointments

Contacts

With CRM, companies are in constant contact with customers. By knowing

customers and their needs, companies can deliver the exact products and services
the customers seek and gain their loyalty.

CRM Key Benefits

CRM provides the following key benefits:

Achieves better efficiency and reduces cost

Centralizes the storage of data and tracks business information

Gains maximum value from customers by better understanding their

needs

Optimizes sales force knowledge with more thorough analysis and

better efficiency

Improves the business health of the company

CRM Key Features

CRM offers the following key features:

Single database, single source code, single set of business logic

modified using the same tool box

Uniting ERP and Customer Relationship Management (CRM)

systems

Marketing Automation

Sales Force Automation

Sales Force Automation through Enterprise Portal

Sales Management

Competitive quote tracking

Price simulations

Project quotation integration

Business Analysis

Tracking business information through the Global address book

Email and SMS integration

Microsoft Outlook synchronization with tasks, appointments, and

contacts

29

Introduction to Microsoft Dynamics AX 2012

Integration with Microsoft Office Excel

Integration with Telephony Application Programming Interface

(TAPI)

Lead Management

Opportunity Management

Defining business processes and responsibilities in the organization

Human Resource Management Overview

An agile human resource management system can help companies quickly
develop their organization to meet the challenges of a fluctuating business
environment. Microsoft Dynamics AX Human Resource Management module
helps companies:

Gather and structure employee information

Encourage employee development

Streamline employee performance

Offer competitive on-cycle and off-cycle compensation

Reward long-term and short-term employee performance

Promote talent retention and motivation

Maintain an overview of the organization

Create the appropriate internal environment to drive business

forward

Human Resource Management Managing Recruitment

Recording and managing recruitment using Human Resources makes the
procedures, paperwork, and manual follow-up work easier. Projects, applicants,
and qualifications are recorded centrally. This information can be used in a
particular project and in subsequent projects. This module is integrated with the
others and therefore:

An applicant automatically becomes a member of the network.

The project is associated with the organization.

An applicant is directly transferred to the Employee module when

hired and his or her employment history is updated automatically.

Human Resource Management Recruiting through the

Web
The e-Recruitment feature improves the breadth and effectiveness of recruitment
projects by enabling the Internet's wide reach. Companies can advertise available
positions on the Enterprise Portal to reach a larger pool of potential candidates.

30

Appendix A: Microsoft Dynamics AX Functionality

E-Recruitment supports and collects online applications that can be screened
before they are approved and saved, or rejected and deleted. When an application
is approved, information about the applicant is automatically transferred to the
Applicant form in Human Resources.
Staff can learn from the experience of previous recruitment campaigns and select
the appropriate media and methods for sharper communication.

Human Resource Management Simplify Mass Hiring

Companies can use Mass hire projects for seasonal, intermittent, or contractual
human resource demands. By using Mass hire project, users can enter
information one time and apply it to all people hired for the project. This lightens
the data entry load, especially with multiple hires.
When ending the project, employment can be quickly ended for all or some hired
in the project. This makes both the start and end of the project easier.

Human Resource Management Using Employee

Information Storing Data
Human Resource Management helps companies gather and structure information
for an optimal overview of their employees and their organization. Companies
must be certain they have the appropriate people in the appropriate positions
when striving for larger goals and starting new initiatives.
Making sure attractive and satisfying career planning for employees is a
challenge that demands organized documentation of the agreements made
between employer and employee. With the documentation stored in Microsoft
Dynamics AX, companies can do the following:

Quickly view a complete skill profile for an employee or a job

Perform skill gap analysis to identify the employee strengths and

areas to improve

Define actual and target values for employee, applicant, and contact
person skills

Set clear development goals and activities and determine deadlines

for them

Set measurable performance goals and monitor the employee

performance

Provide a uniform framework for resource managers to reach

employee development goals

Human Resource Management provides the following to enable companies to

stay on track and achieve goals:

Strategic planning

Best practice action templates

31

Introduction to Microsoft Dynamics AX 2012

Skill gap analysis (compares an employee's skill profile with a

profile that is defined for a particular job as of a particular date)

Skill wheel (visualizes the employee skill profiles and the results of a
skill gap analysis)

Competence reporting

Action planning

Human Resource Management also enables companies to do the following:

Store employment information and agreements

Record employee hiring and exit information

Keep track of transfers between departments

The framework is easily adapted to fit the requirements of a company so the

required data and information can be extracted.

Human Resource Management Compensation

Management
Fixed compensation plans help an employer make sure that employees are
satisfied with the wages they are earning, and that management can maintain
control over compensation costs. Human Resources for Microsoft Dynamics AX
supports step, grade, and broad band fixed compensation plans that can be based
on market price indicators. Competitively priced fixed compensation plans are an
effective tool for attracting top performers and retaining key employees.
Variable compensation plans link an organization's strategy to the actions and
performance of its workers. Variable compensation plans offer companies a
competitive motivational advantage by making desired performance levels
toward important key performance indicators, and what the reward will be when
targets are achieved, visible to employees.
A pay for performance, or incentive pay, program can motivate employees and
lead to greater employee performance and productivity. Performance ratings
connected to features in compensation management enable companies to provide
compensation to an employee that is commensurate with his or her business
performance.

Human Resource Management Key Benefits

Human Resource Management provides the following key benefits:

32

Strengthened focus on employee competency

Centralized and dynamic employee information

Simple and dynamic restructuring of organizational units

Effective and cost-efficient recruitment process tools

Builds up an in-house resource pool

Appendix A: Microsoft Dynamics AX Functionality

Monitors the efficiency and well-being of the organization

Identifies skill gaps to determine required employee development

Determines development and performance goals

Provides a uniform framework for resource managers to support

employee development goals

Aligns compensation and benefits structures with market standards

Recognizes high and low performers and delivers appropriate

rewards

Increases transparency in compensation processes by implementing

fixed and variable compensation policies

Improves compensation decision-making through fast access to

valuable information

Human Resource Management Key Features

Human Resource Management offers the following key features:

Core Human Resource Management administrative functionality

Payroll information

Job application information storage

Management of loans

Management of line, matrix, and project organizations

Job profiles and role descriptions and requirements

Recruitment process management and statistics

E-Recruitment capabilities

Mass hiring capabilities

Employee absence management

Individual and collective absence

Automated correspondence through Microsoft Word integration

Microsoft Outlook integration support for interview administration

Applicant matching to job profile requirements

Media response measuring

Development and performance goals

Setup and definition of competencies and competency groups

Managing and measuring actual skills compared with skill targets

Graphic tools for skill-gap analysis

Feedback analysis through online questionnaires and reporting

Compensation Management functionality

33

Introduction to Microsoft Dynamics AX 2012

Questionnaire Overview
The Microsoft Dynamics AX Questionnaire module enables companies to design
effective questionnaires quickly, simply and without any technical experience.
Business managers, human resources personnel, and administrative personnel can
design and implement basic questionnaires in a matter of minutes.
It is easy to schedule or plan questionnaires for a range of audiences including
employees, customers, and job applicants. The planning functionality also offers
easy administration of mail correspondence with target groups inside and outside
an organization. The Questionnaire module supports web integration so
questionnaires can be deployed through a corporate intranet and through public
web sites.
The Questionnaire can be set up to include the following:

Multiple-choice or free-text answers

Instructions to be displayed before a question is answered

How long the individual has to complete the form

Whether questions are asked randomly or in a particular order

Whether all questions must be answered

Rich media such as pictures, audio, and video

Questionnaire Survey Analysis

The Questionnaire module can be used for a range of activities. This includes the
following:

Customer or employee satisfaction surveys

Job development dialog

Ethical and environmental measurements

Management and staff testing

The Questionnaire is a powerful tool for designing, constructing, and analyzing

surveys. This also turns raw data into useful information.

Questionnaire Key Features and Benefits

Questionnaire provides the following key benefits:

34

Easy design and execution of questionnaires

Deploy questionnaires through corporate intranets and web sites

Turn raw data into useful information through analysis

Appendix A: Microsoft Dynamics AX Functionality

Questionnaire offers the following key features:

Simple step-by-step approach to questionnaire design

Integrated with the web

Flexible analytical tools

Rapid design and deployment of surveys

Response history by questionnaire and individual

Multiple Choice
Companies can use what Microsoft Dynamics AX feature to help hiring for
seasonal, intermittent, or contractual Human Resource demands?
( ) Mass hire projects
( ) e-Recruiter tool
( ) HR Builder
( ) e-Recruitment Wizard

Multiple Answer
The Questionnaire module enables questionnaires to be set up that include which
of the following features? Mark all that apply. (Select all that apply)
( ) Multiple-choice or free-text answers
( ) Instructions to be displayed before a question is answered
( ) How long the individual has to complete the form; whether questions
are asked randomly or in a particular order; whether all questions
must be answered
( ) Rich media such as pictures, audio, and video

Summary
This tutorial introduces Microsoft Dynamics AX Enterprise Resource Planning
(ERP) system. The various modules of Microsoft Dynamics AX are described,
including the interrelations between the modules and their key features and
benefits. The modules discussed in this section are:

Financial Management

Expense Management

Supply Chain Management

Warehouse Management

Trade and Logistics

Master Planning

Production

35

Introduction to Microsoft Dynamics AX 2012

36

Shop Floor Control

Product Builder

Service Management

Project Accounting

Customer Relationship Management

Human Resource Management

Questionnaire

Appendix A: Microsoft Dynamics AX Functionality

Test Your Knowledge

1. Which Microsoft Dynamics AX 2012 series provides universal sales and
purchasing functionality, in addition to inventory management tools?
( ) CRM
( ) Human Resource Management
( ) Warehouse Management
( ) Trade and Logistics
2. Which module provides high level oversight and definition of organizational
or personal objectives?
( ) Cost Accounting
( ) CRM
( ) Human Resource Management
( ) Master Planning
3. An employee satisfaction survey is an example of this module.
( ) Production
( ) Questionnaire
( ) CRM
( ) Human Resource Management

37

Introduction to Microsoft Dynamics AX 2012

4. Name the capabilities that the Service Management module is best suited for.

5. What reporting language is fully compatible with financial statements in the

Financial Management Module?

6. What two project types are supported in Project Accounting? Mark the two
that apply.
( ) Internal
( ) External
( ) Long-term
( ) Short-term
7. What module enables companies to manage, track, and reimburse travel and
entertainment expenses?
( ) Service Management
( ) Cost Accounting
( ) Expense Management
( ) Financial Management

38

Appendix A: Microsoft Dynamics AX Functionality

Quick Interaction: Lessons Learned

Take a moment and write down three key points you have learned from this
chapter
1.

2.

3.

39

Introduction to Microsoft Dynamics AX 2012

Solutions
Financials
Fill in the blanks to test your knowledge of this section.
1.

Dimensions can be used for tracking profit, cost centers,

departments, and regions.

2.

Intercompany transactions posted to one subsidiary are

automatically posted in the other subsidiary.

3. Financial analysis in Microsoft Dynamics AX 2012 is based on

OLAP technology.
4. Detailed currency information is stored in the subsidiary ledgers in
addition to the general ledger.
The Microsoft Dynamics AX 2012 Expense Management module helps
companies manage, track, and reimburse ___________ expenses.
( ) revenue and customs
() travel and entertainment
( ) medical and recreation
( ) general and administrative
What Microsoft Dynamics AX 2012 modules are Expense Management tightly
integrated with? Mark all that apply. (Select all that apply)
() Project accounting
( ) Accounts receivable
() Accounts payable
() General ledger

40

Appendix A: Microsoft Dynamics AX Functionality

Supply Chain Management
What are the goals of the Microsoft Dynamics AX Supply Chain Management
module? (Select all that apply)
( ) Increase revenues
() Reduce inventory
() Lower costs
() Improve time to market
Categorize the following items:
a 1. Can be for both products and services.
e 2. In Sales Order Processing, this can be
converted to a sales order.
b 3. Creates picking lists only for available
items.
d 4. Sets up the system to determine what is
required to fill an order when it is received.
g 5. Puts items on hold for production or
sale, guaranteeing their availability for a specific
order.
h 6. Determines which items are most
profitable from a sales perspective, and the cost
of carrying the item in inventory.
f 7. Can be calculated using purchasing
trends.
c 8. Can be used for purchasing, selling,
stocking, and pricing items.

a. Purchase orders
b. Release sales order
picking
c. Multiple units of
measure
d. Master Planning
e. Quotation
f. Budgets
g. Reservations
h. ABC analysis

In what form does Microsoft Dynamics AX provide graphical illustrations of

schedules related to a project?
( ) Microsoft Excel spreadsheets
( ) Microsoft Visio diagram
( ) Microsoft Project
() Gantt chart

41

Introduction to Microsoft Dynamics AX 2012

Master Scheduling between multiple companies is possible in Microsoft
Dynamics AX under what condition?
( ) All companies are running database servers in the same domain
( ) All companies share the same database of items, bills of material,
routings, and so on
( ) Cross-company security roles must be created to provide access to
each company's database
() All companies are running in the same database

Service Management
Match the Service Management Portals to the functionality they provide in
Microsoft Dynamics AX 2012:
d 1. Technician
Portal
b 2. Customer
Portal
c 3. Technician
Portal
a 4. Customer
Portal

a. Connect to the service company to initiate a

service request.
b. View the data relevant for the service operation
done on service items.
c. Connect to the service company to provide a
record of the service made.
d. View the data relevant to execution of service.

Project Accounting
Internal projects can be invoiced.
( ) True
() False

CRM and HRM

Companies can use what Microsoft Dynamics AX feature to help hiring for
seasonal, intermittent, or contractual Human Resource demands?
() Mass hire projects
( ) e-Recruiter tool
( ) HR Builder
( ) e-Recruitment Wizard

42

Appendix A: Microsoft Dynamics AX Functionality

The Questionnaire module enables questionnaires to be set up that include which
of the following features? Mark all that apply. (Select all that apply)
() Multiple-choice or free-text answers
() Instructions to be displayed before a question is answered
() How long the individual has to complete the form; whether questions
are asked randomly or in a particular order; whether all questions
must be answered
() Rich media such as pictures, audio, and video

Test Your Knowledge

1. Which Microsoft Dynamics AX 2012 series provides universal sales and
purchasing functionality, in addition to inventory management tools?
( ) CRM
( ) Human Resource Management
( ) Warehouse Management
() Trade and Logistics
2. Which module provides high level oversight and definition of organizational
or personal objectives?
( ) Cost Accounting
( ) CRM
() Human Resource Management
( ) Master Planning
3. An employee satisfaction survey is an example of this module.
( ) Production
() Questionnaire
( ) CRM
( ) Human Resource Management
4. Name the capabilities that the Service Management module is best suited for.
MODEL ANSWER:
Business-to-business service; Complex service arrangements
5. What reporting language is fully compatible with financial statements in the
Financial Management Module?
MODEL ANSWER:
Extensible Business Reporting Language (XBRL)

43

Introduction to Microsoft Dynamics AX 2012

6. What two project types are supported in Project Accounting? Mark the two
that apply.
() Internal
() External
( ) Long-term
( ) Short-term
7. What module enables companies to manage, track, and reimburse travel and
entertainment expenses?
( ) Service Management
( ) Cost Accounting
() Expense Management
( ) Financial Management

44