Accept Errors - Report as Finished

The Accept Errors check box allows users to post the Report as Finished journal without any validations and generating any error logs.

The checks include, but are not limited to:

• -          Whether all the items are deducted from the inventory
• -          All the prerequisite operations are completed
• -          Picking List posting quantity
• -          Whether the produced quantity is less than the RAF quantity

If you UN-check (not selected) it will generate the error info log and lets you know where the error occurred while doing Report as Finished.

For Example:

Quantity for production is 100

Picking List is 95

Report as Finished is 98

If the Accept Errors checkbox is ticked, the system will post the Journal without validating against the picking list and without generating any error logs.

If it is un-checked, the system will throw an error after validating against the Picking List.

Zero Quantity

The Accept Error checkbox does not work while reporting Zero finished quantity. Whether or not the checkbox is selected, the system will throw an error if Zero quantity is being posted after production.

A quantity must be allocated for the system to post the costs relating the production. 

In such a case, post one quantity as RAF and then write off the quantity after the production has Ended.

Fixed Assets - Depreciation Conventions

Depreciation is a periodic transaction that typically reduces the value of the fixed asset on the balance sheet, and is charged as an expenditure to a profit and loss account. Therefore, a main account is usually used for crediting the periodic depreciation on the balance sheet. An offset account is an account in the profit and loss part of the chart of accounts.

Various depreciation methods and conventions are available in the system. The purpose of the methods is to allocate the depreciable value of the fixed asset into fiscal periods. The depreciable value of the fixed asset is the acquisition price, reduced by a scrap value, if any.

Depreciable value = Acquisition price – Scrap Price (if any)

When using depreciation conventions, if  the last depreciation run date for an asset is modified, which then causes some depreciations to be skipped, the depreciation for the last year might be more than or less than is expected. The depreciation is adjusted by the number of depreciation periods affected by the modification of the last depreciation run date.

Depreciation Conventions

During the first year in service, depreciation is calculated using the depreciation method and averaging convention for the asset. The resulting depreciation amount is distributed over the period of time from the date it was placed in service to the last day of the year.

The Mid-month (1st of month), Mid-month (15th of Month), or Full Month averaging convention must be used only if the fiscal periods are set up in a manner that matches the calendar year.

The averaging convention does not change the dates an asset is retired or placed in service. It only uses a ‘pre-defined’ date to calculate the depreciation based on the averaging convention defined for the asset.

The following averaging conventions are available in Fixed Asset Management:

• None:  Assets will begin depreciating on the date it was placed in service and will be retired on the retirement date.

• Half-year:   Assets begin depreciating on the Placed in Service Date. In the year of disposal, assets are retired on the last day of the first half of the year.

Only half of the depreciation amount is taken in the year an asset is acquired. This also applies to the year in which you dispose of an asset and to the year in which the life is complete, based on the original life of the asset. The asset doesn’t depreciate after the first half of its final year.

• Mid-month (1st of month):  Assets that are placed in service in the first half of the month — days 1 through 15 — will begin depreciating on the first day of the month.

Assets that are placed in service in the second half of the month — day 16 through end of month — will begin depreciating on the first day of the next month.

Assets with a retirement date in the first half of the month — day 1 through 15 — are considered retired on the last day of the previous month.

Assets with a retirement date in the second half of the month — day 16 through end of month — will be retired on the last day of the month.

• Mid-month (15th of Month):  Assets that are placed in service at any time during the month will begin depreciating on the 16th of the month. Assets that were placed in service in February will begin depreciating on the 15th of the month.

Assets retired at any time during the month will be retired on the 15th of the month of the retirement date. Assets retired in February will be retired on the 14th of the month.

• Mid-quarter:   Assets that are placed in service at any time during the quarter will begin depreciating on the middle day of the second month of the quarter.

Assets retired at any time during the quarter are considered retired on the middle day of the second month of the quarter.

For Example: Consider a January to March quarter.

Asset A002 was acquired on 31st January; Asset A008 was acquired on 9th March and Asset A015 was acquired on 31st March. With the Mid-Quarter depreciation, all these asset will begin depreciating from the 15th of February in the same year.

Asset Z009 was retired on 21st January; Asset Z021 was retired on 12th February and Asset Z045 was retired on 21st March. Given the convention, all these assets will be considered retired on 15th February.

• Full Month:   Assets that are placed in service at any time during the month will begin depreciating on the first day of the month.

Assets retired at any time during the month are considered retired on the last day of the previous month.

Increasing the Service Life of a Fixed Asset

Increasing the Service Life of an Asset is carried out to revise the estimates done when the Asset was first acquired and increase the periods for depreciation for the Asset.
This change is not an accounting / estimation error. It is an inherent and continual process in a business.

For Example: DAT (Default Company) purchased machinery for $150,000. The company made the following estimates at the time of purchase (Year 1):

• Useful life: 15 years
• Salvage value: $0

Now, during Year 6 – after five (5) years of using and depreciating the machinery – the company understands that the machinery can be used for 15 years more from the date of change (or for a total of 20 years from the date of purchase), rather than the previous estimate. This decision is based on various factors including machine performance and maintenance as well.

In the accounting scenario, the change in depreciation from revision of useful life is calculated as follows (for Journal Entries):

There is no need to undo the previous calculations for depreciation or make any adjustments thereof. The depreciation henceforth would be adjusted based on the formula stated above.

In AX too we have a provision for increasing the Service Life of an asset long after it has been commissioned.

The Setups and prerequisites are as follows:

Prerequisite - Require Reason Code:

Reason Codes urge users to justify/ provide reasons for performing any action in the system. 

Since an increase in the Service Life of an asset has substantial Financial Implications for the business, requisite setups are available in the system to prompt the user to enter the reasons for the Update.

This setup is not mandatory, but suggested. It depends on the Business hierarchy and whether or not these rules are applicable to the scenario.

To enable Reason Codes, check mark the Require Reason Code for Fixed Asset change in General Ledger >> Parameters

Path: General Ledger >> Setup >> Parameters >> Fixed assets tab

The Reason code requirements for transactions are additional transactions for which the reason code needs to be updated. This is optional setup.

Prerequisite - Reason Code Setup:

The Reason code setup is available in the Basic module. This setup is required if Reason Code Requirement is selected in the previous step.

Path: Basic >> Setup >> Reasons

Enter the Reason Code and Default Comment. Check mark the box for Asset.

Click Ctrl+S to save

Now that we have our Reason Codes setup, we can proceed with the update.

Increase Life of FA

Path: General Ledger >> Common Forms >> Fixed Asset Details.

Select the Fixed Asset to increase life for and click on Value Models:

Go to Depreciation Tab:

In the Depreciation header, there are fields for:

• Service Life
• Depreciation Periods
• Depreciation Periods Remaining

These fields can be updated based on the requirement. When the Service Life is increased, the Depreciation Periods and Remaining Periods are automatically updated. When the Depreciation Period is updated, only the Remaining Periods are updated, but the Service Life is not updated.

Make the changes. Click Ctrl + S to save.

The system prompts for Reason Code:

Enter the Reason Code by selecting from the drop-down menu and Click OK

The Updates will be made for the asset.

To view the changes made to an Asset, Click on Inquiries >> Change History in the Value Models form.

Workflow History Form

The Workflow History form is under Basic >> Inquiries (AX2009)

Now, this form is quite fascinating because of the way it works - Its picks up the User id and then displays only those workflows that are relevant to them. For the Admin, all workflows are visible.

Here's the catch - All workflows are visible to the users assigned to the Admin group. If a user has complete Admin rights over all the modules, but is not a part of the Admin group, it still shows only related workflows.

Peculiar... Yes...

I came across this phenomenon when a client was re-assigning couple permission and were facing a problem with this form, even with complete access on the other modules. Admin group could not be added because of obvious reasons.

After a lot of assigning, re-assigning and manipulating with the user rights, I decided to dig into the code...

And Viola.!!

There is a very specific query that executed when the form is run. This query does not fetch the user id only if the user belongs to the Admin user group. Any other group, with complete access over the system - it will still fetch the user id and display specific details.

Being a Standard form, it is not advisable to play around with the code here. Just to test the case, we added another user group along with Admin, to see if it works. It did.

But.

Not sure why, but the workflows started throwing a Stopped (error) after completion - totally out of the blue. When we restored the original code, the error disappeared as silently as it had crept in. I am still on a lookout for the reason for this unusual behaviour, without any pointers.

The final establishment of the entire experiment was that the Workflow History form has a dependency on the Admin group and not on Users' access on the system. Secondly, fidgeting with the query in the code was not a very good idea.

Anyone out there with a similar problem, there does not seem to be a feasible solution here... In case any of you stumbles upon a hidden area, please share.

Happy daxing :)

Fixed Asset Additions

An addition to a fixed asset is a maintenance to or an add-on item for a fixed asset. Like Engine Oil for an automotive or an additional hard disk for a desk Computer.
An addition is considered part of a fixed asset, but is not a separate asset. Typically, an addition is maintenance or an improvement and is related to a write-up adjustment.

The addition is done as follows:

Click General Ledger >> Common Forms >> Fixed Asset Details.

Select the fixed asset to create the addition for.
Click Additions.

Press CTRL+N to create an addition.On the Overview tab, keep the default addition number and type a name for the addition, such as Laptop Battery or Wiring

Enter additional details, such as the acquisition date, unit cost, and quantity.

On the General tab, enter values for other fields as appropriate:

If the addition increases the service life of the fixed asset, select the Increases service life check box, and then modify the Service life field in the Value models form.

If not, leave it unchecked. The addition will not increase the Service Life of the asset.

Press CTRL+S to save the addition