Financial Consolidations - Dynamics Ax 2009

Financial Consolidations process:


3 steps to perform consolidation in Microsoft Dynamics Ax 2009.

1. Consolidation company setup
2. Subsidiary company setup
3. Perform consolidation

I) Consolidation company setup:

Consolidation company creation:  Consolidation designated company will not be available for any operational process except having consolidation entries posted in here.

Path: Dynamics Ax > Administration > Common Forms > Company accounts

General Ledger Parameters setup:

Path: Dynamics Ax > General Ledger > Setup > Parameters > Ledger tab

Set value "Consolidated company accounts ' = True

System account:

Path: Dynamics Ax > General Ledger > Setup > Posting > System accounts

Balance account for consolidation differences

Profit & loss account for consolidation differences.

Currency and Exchange Rates:

Path: Dynamics Ax > General Ledger > Setup > Exchange rates > Consolidate tab

The Exchange rates form displays an additional tab, Consolidate, when you select the consolidated company accounts field in the General ledger Parameters form.  Closing rate field is used for balance sheet accounts and the value in the Average rate field is used for profit and loss accounts. Add exchange rates for each currency and specify 'Closing rate' & 'Average rate' for all currencies in this form (Overview tab will display all currencies, specify exchange rates & select each one of them and click Consolidate tab and consolidation rates).

Chart of Accounts:

Path: Dynamics Ax > General Ledger > Common Forms > Chart of accounts details

Closing (or) Average:  Use Closing or Average options for utilizing rates specified in 'Consolidate tab' of the exchange rates form.

Historical : Use Historical to utilize exchange rates specified in the setup.

This process completes consolidation company setup for consolidations in Dynamics Ax 2009.

II)  Subsidiary Company:

The subsidiary setup depends on chart of accounts setup, so following are possible alternative options.

Chart of Accounts Option 1: Identical Chart of Accounts

When this is the situation, the Consolidation account field is selected in the Consolidate Online form during the consolidation process to transfer the balances to the correct accounts.

Chart of Accounts Option 2: No Consolidated Chart of Accounts

In this scenario consolidated company does not have chart of accounts, here two alternatives to perform consolidation. 

• Enter a manual mapping on the Chart of Accounts in the subsidiary. This causes the mapped accounts to create automatically.
• Do not enter any mapping. This causes the Chart of Accounts to be created in the consolidated company when data transfers from the subsidiary.

Note: This method is not appropriate for consolidation of a foreign currency subsidiary because conversion principles cannot be applied.

Chart of Accounts Option 3: Different Chart of Accounts

Having different chart of accounts in subsidiary & consolidated companies must be mapped to the consolidated company.

 Map Chart of Accounts: (This process should be done for all subsidiary companies)

 Path: Dynamics Ax > General Ledger > Common Forms > Chart of account details

Map Dimensions: (This process should be done for all subsidiary companies chart of accounts)

Path: Dynamics Ax > General Ledger > Common Forms > Dimensions

This completes subsidiary company setup and Consolidations.

III) Perform a Consolidation:

Options to perform consolidation:

• From the same database using the online option
• From and, or to another database using the Import/Export option

Before you perform a consolidation at the close of a period, ensure that the period closing preparatory activities are performed, but do not close the subsidiary accounts until the consolidation is completed.

Consolidation, Online:

Path: Dynamics Ax > General Ledger > Periodic > Consolidate > Consolidation, Online

Dimension tab: Gives option to select none, dimension, group dimension, company accounts and account.  Select 'Group dimension' to rollup dimension transactions to consolidation company dimension values (Group dimensions must be specified for all dimension values in all subsidiary companies for this option)

Companies tab:

Share: Indicate the percentage of the selected company accounts to be included in the consolidation. This is used if the consolidated company owns part of the subsidiary.

Note: Share field is not available or relevant on the consolidation, Export form

For the selected subsidiary company account - if the subsidiary company currency differs from that of the consolidated company - select the type of account that consolidation differences are posted to:

• Profit & loss – Differences are posted to the consolidated company ledger account that is indicated for the Profit & loss account for consolidate Financial Consolidations - Dynamics Ax 2009 (Part 1)on differences value in the Posting type field on the System accounts form of the consolidated company.
• Balance – Differences are posted to the consolidated company ledger account that is indicated for the Balance account for consolidation differences value in the Posting type field on the System accounts form of the consolidated company.
• You must make an appropriate selection according to the accounting practice of the country/region of the consolidated company.

Eliminations tab:

Note: Elimination rules can be applied here.

Click button 'OK'

Then validate balances through General Ledger > Common Forms> Chart of account details (Select respective account and validate the balance of CEC & CEU companies, notice the balance in consolidation company).

Then validate balances through General Ledger > Common Forms> Chart of account details (Select respective account and validate the balance of CEC & CEU companies, notice the balance in consolidation company).

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To  eliminate internal transaction. You have to set up the elimination rules.

General ledger > Setup > Posting > Ledger elimination rule

When you run consolidate

General ledger > Periodic > Consolidate > Consolidation, Online.

You have to select the elimination rule in tab Elimination ( should be Proposal post instead of Posting).

After running that proccess The system will automatically generate the elimination transacion . You can inquiry and check it before posting.

Dynamics Ax 2009 Financials : Year-End process

Please find the Year-end closing process below:

Step 1: Create a new fiscal year

Path: Dynamics Ax > General Ledger > Setup > Periods > Periods

Click button 'Create new fiscal year'

Click 'OK'

12 monthly lines get created with open status.

Step 2: Control transactions in a closing period

Path: Dynamics Ax > General Ledger > Setup > Periods > Periods

A closed period cannot be reopened. Therefore, permission to close periods and years should be highly restricted.

Select 'Stop' from list and this prevents transactions posting in the system for that period, perfom same operation for 12 monthly periods.

Step 3: Change module status

Select the appropriate module and set the user group required access by selecting from list view in the above screen.

Step 4: Create Closing sheet

Path: Dynamics Ax > General Ledger > Periodic > Fiscal year close > Closing sheet.

Set field 'Closing sheet'    = 06/30/2011

Set field 'Name'              = Closing Sheet as on 06/30/2011

Set value 'Posting layer'   = Current

Set value 'Period code'     = Closing

Note: Only 'Normal' and 'Closing' options can be used in closing sheet.  'Opening' option can be used for beginning balance transaction.

Click button 'Closing accounts'

Click button 'Load balances'

Notice the accounts and balances got updated in the screen.

Step 5: Make adjustments or transfers between accounts

Select an account line from the loaded balances and click button 'Transfer'

Note: For system reconciled accounts 'transfer' button would be disabled.

Set field 'Transaction text' = Closing transfer

Set field 'Amount' = -1500 (difference amount which needs to be transferred)

Select field 'Offset account' = 999999  (The offset account could be any relevant account, here I took example of 'Error account - 999999')

Click 'Save'

Close form 'Transfers'

Form 'Closing accounts' becomes active

After the necessary transfers or adjustments are complete, click the Post button from the Closing accounts form to post the closing sheet. The closing sheet only posts to the closing period.

At this time, also run reports and verify results before you close the period and transferring ending balances into the new year as opening balances.

Note: To post the closing sheet, you must open the closing period in the Periods form. After you post the closing sheet, ensure that you change the period back to Stopped.

Step 6: Transfer Opening Balances & Setup Fiscal year close parameters

Enable GL Parameters:

Path: Dynamics Ax > General Ledger > Setup > Parameters > Ledger tab

Fiscal year close:

Delete close-of-year transactions during transfer : If this check box is selected, opening transactions and system-generated closing transactions that exist for the year to be closed are deleted when the transfer is processed again.

Create closing transactions during transfer : By enabling this option, have the system create closing transactions when running the opening transactions job.

Set period status to year closed : Select this check box to display a status of Year closed for all fiscal periods for the year that is being closed.

Voucher number must be filled in : If this check box is selected, a voucher number must be entered when opening transactions are created for a new fiscal year.

Note: If a period is closed, adjustments, which may be required by the auditor, are not possible.

Transfer opening balances procedure:

Path: Dynamics Ax > General Ledger > Periodic > Fiscal year close > Opening transactions

Click tab 'Dimension'

Dimension selection can be done here to transfer opening balances

Click button 'OK'

Please find the report of Closing transactions & Opening transactions.

How to send email messages with attachments

Sending E-mail messages from Microsoft Dynamics AX could be a bit tricky.

The most recommended way to do so is by using the standard mail mechanism built in the system.The Email sending status form (based on tableSysOutgoingEmailTable) and the E-mail distributor batch job.

 

But if you want to send email with attachments and more advance options, you should do so with .NET Framework, and the System.Net.Mail object.

 

First of all, make sure you have a correctly configured SMTP server.

Go to Administration -> Setup -> E-mail parameters and fill the required settings:

(Form: SysEmailParameters)

Then, use this code sample:

void SendMail()
{

    System.Net.Mail.MailMessage             mailMessage;
    System.Net.Mail.Attachment              attachment;
    System.Net.Mail.AttachmentCollection    attachementCollection;
    System.Net.Mail.SmtpClient              smtpClient;
    System.Net.Mail.MailAddress             mailAddressFrom;
    System.Net.Mail.MailAddress             mailAddressTo;
    str                                     Body;
    str                                     Subject;
    str                                     SMTPServer;
    str                                     FileName;
    FileIOPermission                        perm;
    ;

    mailAddressFrom = new System.Net.Mail.MailAddress("From@xPlusPlus.info","");
    mailAddressTo = new System.Net.Mail.MailAddress("To@xPlusPlus.info","");
    Body = "<B>Body of the email</B>";
    Subject = "Subject line for the email";
    SMTPServer = SysEmailParameters::find(false).SMTPRelayServerName;

    mailMessage = new System.Net.Mail.MailMessage(mailAddressFrom, mailAddressTo);
    mailmessage.set_Subject(Subject);
    mailmessage.set_Body(Body);
    attachementCollection = mailMessage.get_Attachments();

// Add attachemnts! use double slashes ("\") in the filename path.
    FileName = "C:\\test.bmp";
    perm = new FileIOPermission(FileName,'w');
    perm.assert();

    attachment = new System.Net.Mail.Attachment(FileName);
    attachementCollection.Add(attachment);
    smtpClient = new System.Net.Mail.SmtpClient(SMTPServer);
    smtpClient.Send(mailmessage);

    CodeAccessPermission::revertAssert();
}

Setting up MorphX Version control system

To set up the MorphX Version Control System (VCS) in AX simply press the


Microsoft Dynamics AX button (Alt + M) and navigate to Tools | Development tools | Version Control | Setup | Parameters.


First of all,you have to select Enable in the Source control status. Then, you need to select the version control type that you would like to use. The main reason for this is that it doesn't require each developer to have a full AX installation locally like the Visual Source Safe and Team Foundation Server do.


If you are creating a new module for AX, or if you are already using Team Foundation Server, then selecting Team Foundation Server as version control for AX might be a better option.


When using the MorphX VCS, the repository is actually inside the AX database, so you will always have an access to it as long as you are logged on to your AX solution.


You can also select to have the AOT elements color coded depending on the VCS status and to receive a warning when reverting objects


After setting these parameters, you can choose to create a repository by pressing the Microsoft Dynamics AX button (Alt + M) and navigate to Tools | Development tools | Version Control | Setup | Create repository.


This will basically check in all elements in the AOT with a shared comment at that point of time. If you have a new solution without any modifications to standard AX, this is not needed, as you always have the possibility to go back to the original version in the system layers.


You can also set some rules as to what should be allowed and denied when trying to check in an element into the VCS by pressing the Microsoft Dynamics AX button (Alt + M) and navigating to Tools | Development tools | Version Control | Setup | System settings