Error: A currency to convert from is required to retrieve exchange rate information.

While posting Pending Invoices in AX 2012, there are cases when this error message is shown and the posting is cancelled.

What is more annoying than the error is that the infolog is very cryptic and reads:

Error: Exception has been thrown by the target of an invocation. A currency to convert from is required to retrieve exchange rate information.

More often than not, the currencies and exchange rates are available in the system and other related configurations for multi - currency transactions are set. This issue was common in the Feature pack, but is sometimes observed in R2 as well.

There is no known KB or hotfix available for this and no defined cause for its occurrence. It is as random as can be and will pop up when least expected.

Although no permanent fix is available, it can be sorted, until further occurrence. And considering it is rare to encounter this issue, one can ensure the client that the issue is fixed for good.

Caution: Please try in test environment before applying to Live instance. Take necessary backups before performing the activity in Live.

Resolution:

Make note of the Purchase Order number for which the Pending Invoice posting is causing the error.

Delete Pending Invoices and matching history for the related Purchase Order:

Accounts Payable >> Common >> Vendor Invoices >> Pending Vendor Invoices

Accounts Payable >> Inquiries >> History >> Approval Journal history and matching details

Sometimes, even after deleting the pending invoices, the issue persists. Then the details must be deleted from the DB as in some cases there are multiple records at the table which may or may not reflect on the form.

Note: the erroneous records have a status: Waiting in the table. DO NOT, in any case delete any records with status: Executed

For this:

- Note the PO and Invoice details

- Go to VendInvoiceInfoTable

- Filter by PO number/ pending invoice number

- Select all available records, that have a status other than Executed and delete.

This is an alternate solution and has to be applied with discretion. It may not always solve the issue and deleting records from the Table must only be done by experts after taking all necessary precautions.

Any other solutions, do leave comments below :)

Block a Dimension - AX 2009

In some cases, a business may require to block an existing dimension from being selected while posting a transaction. It can be a temporary or a permanent requirement.

While the AX system does not allow users to delete dimensions once transactions are posted with the dimension, it does allow blocking the dimension from being selected.

Path: General Ledger >> Common Forms >> Dimensions

Select the Dimension from the drop-down in the header section of the form. Filter for the particular dimension value that needs to be blocked in the Line level of the form.

Check the closed check box.

The users will not be able to select or view the closed dimension at postings.

Note: In cases where a new dimension is created and assigned in the Dimension Structure appropriately, yet the user is unable to select the dimension, it is advised to check if the dimension is set to closed in the Dimensions Master.

Inventory to Fixed Asset Journal

There is quite some confusion with regards to how a Fixed Asset can be bought in without creating a Vendor Liability again (the asset is bought, but not marked as a Fixed Asset at purchase).

This post is an attempt to simplify the Inventory to Fixed Asset Journal usage.

There are 2 main Journals that are used to post Fixed Asset adjustments, depending on the scenario:

- Inventory to Fixed Asset Journal

- Fixed Asset Journal.

The Inventory to Fixed Asset Journal is used when an asset that is already bought in, needs to be added to the FA master – here there will be no additional Vendor Liability that will be booked. In essence, it is used to move an already purchased item into the FA master

The Inventory to FA Journal picks the price from the Item master (Inventory management >> Common >> Item Details >> On-hand button >> Cost Price). The price on the Item master is available once the item is purchased/ brought into the inventory, in the system. Even if there is a different cost/ price specified on the Journal, it will be over-ridden by the cost on the item master. The system does not consider the amount on the Journal; it is picked from the Item master.

The Fixed Asset Journal is used for any sort of adjustment to be made to the posted Fixed Assets.

For example: to post an acquisition adjustment, the user must use the Fixed Asset Journal and post the entry. The system will then pick the price mentioned on the Journal, and the cost will be updated accordingly.

Scenario for reference:

Case 1:

-  Purchased Item (XYZ) at USD 500 without checking the New Fixed Asset check box in the Purchase Order

-  System adds inventory for the item, but FA is not created.

-  Invoice is posted, therefore a Vendor Liability is already created for the Asset.

The asset cannot be purchased again, as it will create another Vendor Liability in the system and this is not acceptable. 

To make this item a Fixed Asset, use the Inventory to FA Journal and transfer the item to the FA Master. The cost will be picked from the Item Master and no additional liability will be booked.

Another way is to create a credit note for the PO and then raise it again. But this becomes cumbersome if there are multiple currencies involved (exchange adjustments must be considered) or if the period is already closed. 

Case 2:

-          Purchased Item (ABC) at USD 650, by checking the New FA check box.

-          System creates a FA in the Master and the cost is USD 650

-          Additional charges were incurred at USD 150

These costs need to be loaded on the FA itself, considering they were incurred as a part of the purchase of the FA. These costs are added to the FA using the FA Journal, with transaction type Acquisition Adjustment. It will create a new transaction line in the FA transactions as Acquisition adjustment.

The total value of the FA will be the acquisition cost + the adjustment (USD 800 in this case). The depreciation will be calculated on the total cost and not just the acquisition cost of the Asset.

Purchase Order Accounting

Purchase order posting is a very common process in a business and is done on a daily basis.

The financial impacts of the postings, therefore, form a very important aspect for a business.

Postings happen only once the Receipts are posted. Confirmations and registrations do not have any physical or financial impacts in the system.

Product Receipt: A receipt is what confirms that the Items (stocked, tangible items) have been received into the inventory/ stock. Once the Items are in, only then there are impacts to the Ledgers. 

When a product receipt is recorded for a stocked item, two accounting processes take place:

One accounting process creates an accounting entry for the accrued liability. The accounting entry amount is for the received quantity of the stocked item, multiplied by the currency amount per unit for the purchase order. In the following example, ### denotes the currency amount of the accounting entry.

Debit Purchase expenditure, un-invoiced ###

Credit Purchase, accrual ###

Another accounting process accounts for the cost in inventory for the received quantity of the stocked item by crediting the expenditure ledger account and capitalizing the cost in an inventory asset ledger account.

Debit Product receipt ###

Credit Purchase expenditure, un-invoiced ###

Purchase Invoice: When an Invoice is posted, it indicates that the Vendor has issued a bill for the goods that have been transferred. A Vendor Invoice is what creates the liability towards the Vendor.

When a vendor invoice is recorded for a stocked item and accounting entries are created, two accounting processes take place:

First, the accounting entries on the product receipt for accrued liability are reversed. The amount that is reversed is based on the quantity of stocked item on the vendor invoice that is matched to the product receipt. Then, the accounting entry is created to record the liability for the vendor invoice. .

Credit Purchase expenditure, un-invoiced ###

Debit Purchase, accrual ###

Debit Purchase expenditure for product ###

Credit Vendor balance (Accounts payable) ###

Second, the accounting entry on the product receipt that records the inventory cost is reversed. The amount that is reversed is based on the quantity of the stocked item on the vendor invoice that is matched to the product receipt.

Additional account entries are created to record the inventory cost under a new inventory ledger account classification.

Credit Product receipt ###

Debit Purchase expenditure, un-invoiced ###

Debit Purchase, product receipt ###

Credit Purchase expenditure for product ###

Notes:
Where the Inventory runs on Weighted Average costing, there is a chance that the Vendor accounts and the Inventory accounts are posted with different amounts. These differences are in tandem with the Calculations that the system does for arriving at the Weighted Average cost of the Item.

Budgeting in AX 2009 - Overview

Budget Allocations

AX has the ability to use predefined allocation rules to perform generated allocations. Generated allocation is the distribution of posted or fixed amounts to combinations of destination accounts and dimensions at any time, for which system generates new Journal entries distributing the amount based on an allocation formula.

Allocation can be set by various methods in Ax, which includes:

- Basis

- Fixed percentage

- Fixed weight

- Spread even

The Allocation process in the system is divided into 3 segments.

• §  Ledger allocation rules definition
• §  Process Allocation request
• §  Allocation Journal.

Ledger Allocation Rules definition: - The first step in allocation is to define the allocation rules.

Creation of allocation rules requires the allocation code, allocation validity as Start Date & End Date. Then, select one of the allocation methods as fixed percentage, Basis, Fixed Weight, Spread even.

After selecting the allocation method, define the Rules for the Source Ledger account. Source Ledger accounts and dimensions can be selected where the expenses has been incurred.

Define the destination account & dimensions where the amount needs to be allocated. Also define the actual percentage or Basis based on which source amount should be allocated to destination. Once destination is defined the Ledger allocation rules are completed.

Process Allocation: -Once the Ledger Allocation rules are defined, the unique rule code will be generated. Refer the rule code in process allocation request to process the allocation entries (based on the allocation rules the system will reallocate the cost to the respective department.)

After selecting the rule code, provide start date and end date of rules and reason codes with remarks. Process the Allocation request and this generates the financial entries in allocation journal.

The allocation process collects one or more values from a source data record and distributes the totals of the values to one or more accounts or account and dimension combinations according to an allocation rule that is defined using the Ledger allocation rule form.

Allocation Journal: -Allocation journal shall show the entries passed by Process Allocation step. System would generate the entries on running the Allocation request. System shall reverse the Source Ledger a/c and book the entries against destination ledger accounts as per the allocation rule.

Budgets

Budgets are defined for each Chart of Accounts dimension wise, where dimension can be a Category/cost center/department/projects/sub department which are identified as Dimensions.

AX supports budgets to be created at the General ledger level. The budgets are maintained at the chart of account level with relevant dimension and the variance analysis will be made at the chart of account level.

Sales and Purchase Budgets:

The budgeting for sales and purchases is carried out in the Accounts Receivable & Accounts Payable module and the same will be transferred to GL. However the accounts that are affected during the transfer are only the Sales revenue accounts and the purchase inventory accounts.

The sales and purchase forecast can be entered by quantity and amount and the allocation keys will be defined to split the amount over a period of time when the forecast are transferred to GL budgets.

Budget Revisions:

There can be scenarios where the budgets are prepared and approved for the complete year, however the budgets can be revised as per the requirement. The existing budgets can be modified or a new budget created with the revised figures. 

Price Tolerance

Price tolerance defines the percentage by which the invoice net unit price can exceed the purchase order net unit price, and still be considered within the allowable tolerance for invoice matching discrepancies.

Invoice matching is the process of matching vendor invoice, purchase order, and product receipt information. Differences among these documents are called matching discrepancies. Matching discrepancies are compared with the tolerances that are specified. If a matching discrepancy exceeds the tolerance percentage or amount, match variance icons are displayed in the Vendor invoice form and in the Invoice matching details form.

For example, you enter a purchase order with one line item for 500 pencils at a price of 1.00 each. The purchase order is approved and submitted to the vendor. The vendor ships 500 pencils, and you enter a product receipt for 500 pencils at a price of 1.00 each. The inventory cost for the pencils is updated with this price.

An invoice arrives for 500 pencils at a price of 1.10 each. Your legal entity policy allows a 5 percent net unit price tolerance for this category of item. A price of 1.05 would be acceptable, but 1.10 is not. When you enter the invoice information, a price matching discrepancy is identified and you can save the invoice until the discrepancy is resolved.

A vendor price tolerance group defines the group of vendors for which such a “price tolerance” is applicable. In other words, it is a vendor group to which a specified price tolerance is applicable. In the vendor form, this field describes the “identifier” for the vendor group.

Happy learning.!

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 :)

Exchange Adjustment - AX 2009

When multiple currencies are used, the exchange rate for the original transaction currency might differ from the exchange rate that is used during the conversion to the accounting currency. To recognize these differences in the exchange rate, the amounts in the main accounts have to be adjusted. The process that is used to make those adjustments is called a foreign currency revaluation or an Exchange Adjustment.

Revaluation can be done in Accounts Payable, Accounts Receivable and General Ledgers. However, the General rule of thumb is to perform the revaluation in the Accounts Payable and Accounts Receivables.

It is not suggested to perform Revaluation for Vendor and Customer Transactions in the General Ledger Module as these transactions will not reflect in the AP and AR modules respectively. Hence, Currency Revaluation is done for Accounts Payable and Accounts Receivables modules.

Prerequisites:

Before you can perform an exchange adjustment, the profit and loss ledger accounts for exchange adjustments must be. This setup is done in the General Ledger

Path: General ledger >> Setup >> Exchange rates >> Posting tab.

These accounts are essential to be setup in case when the organisation is dealing with multiple currencies.

Note: It is not necessary to use the same accounts for all the postings. Multiple accounts can also be used, depending on Company policy.

Revaluation process will generate unrealized gains/ losses whereas Settlement will generate realized gains/ losses.

Once these accounts are setup, the Exchange Adjustment can be carried out. These accounts must be setup for all the currencies that will be used.

Exchange Adjustment:

The procedure to run the Exchange Rate Adjustment is the same in Accounts Payable and Accounts Receivables Modules. The Exchange Adjustment is run from the Periodic Section in both the Modules.

Path: Accounts Payable >> Periodic >> Exchange Adjustment

Simulate an Exchange Adjustment:

Simulation is carried out to analyze the adjustments that will be made to the respective accounts after Revaluation. The simulation generates a report with all the entries and adjustments that will be made when the actual adjustment is carried out.

To run a Simulation, click on Simulation Button on the Exchange Adjustment Form

The following parameters need to be selected:

• Method
• Considered Date
• Date of Rate

In the Method field, the following options are available:

• Standard - Make exchange adjustments based on the Exchange rate used on the date specified in the Date of rate field.
• Minimum - Make an exchange adjustment if a loss occurs, but not if a profit exists.
• Invoice date - The program offsets any exchange adjustment that is not already offset, as on the date of Invoice. This causes the transaction being valued at its original value.

The Considered Date is the Date up to which the system has to fetch the “Not Settled” (Open) transactions to perform the exchange adjustment for.

The Date of Rate is the date to be considered for the exchange rate.

The default method is Standard.

The Considered Date and Date of Rate are usually the same date.

After the parameters are selected and the dates are entered, Click on OK.

The Simulation will generate a report with the adjustments that will be made if the Exchange adjustment is run. This report is used to analyze the differences and postings that will be made to the different Vendor/ Customer Accounts. 

Once the postings are verified, the Exchange Adjustment can be carried out.

Run an Exchange Adjustment:

To run the exchange adjustment, click on the Exchange Adjustment button in the form:

The parameters on the form:

Method: Standard

Considered Date and Date of Rate: As required

Use posting profile from: Select the posting profile that is used for the exchange adjustment transactions:

• Posting – The posting profile of the vendor transaction is used.
• Select - The posting profile is determined by the posting profile in the Posting profile field.

Posting Profile: If Select is selected in the Use posting profile from field, the posting profile of the exchange adjustment transactions is determined by the posting profile specified in this field.

Select among the posting profiles that have been set up for the company in the Posting profiles form.

Dimension: Select the kind of dimensions that are posted on the exchange adjustment transactions:

• None - No dimensions are posted on the exchange adjustment transactions.
• Table - The dimensions of the vendor account are posted on the exchange adjustment transactions.
• Posting - The dimensions of the transaction that is being adjusted are posted on the exchange adjustment transactions.

Print: Select this check box to print a report with details about this run of the exchange adjustment.

This report is printed on the go and is not saved in AX for future reference.

Transaction Text and Notes: These fields are for Users to enter any remarks or comments regarding the Adjustment.

Click OK to run the Adjustment.

The Exchange Adjustments are now successfully posted.

View Exchange Adjustment Transactions:

Once the Exchange Adjustment is run, the Transactions and the Vouchers posted can be verified.

To view the Ledger Transactions posted by the Exchange Adjustment, select the Adjustment entry that was created and Click on the Voucher Button in the Exchange Adjustment Form.

In order to view the Customer or Vendor Transactions posted by the Adjustment, Click on the Transactions Button on the form.

P.S. Leave your comments below :)

Supply Chain Functions

Supply Chain is a broader umbrella of the Trade and Logistics functionality in AX. Here are a few questions that are addressed by the Supply Chain functionality...

Demand Forecasting - 

What is the expected demand in the foreseeable future

Supply Forecasting - 

How much to manufacture/ procure to meet the demands

Product Procurement - 

When to buy, how much to buy, from whom to buy and when to buy.

Transportation Procurement - 

Who will do it, what are the costs

Transportation Planning - 

What will be the routes, the products shipped together, stacking and storage on the transport, stops and pickups on the route.

Transportation Management - 

What are the total costs, minimal cost routes, feasibility, tracking and modes of transport

Trade Compliance - 

Licencing and Legal compliance, trade permits, docking, cross-border compliance

Inventory Management - 

Warehousing, Logistics, Locations, Stocks to keep, Inventory Classifications, Costs, product movement principles, maintenance and expenses, arrivals and issues, counting and tracking

Order Management - 

What is the Order processing time, time to ship/ receive, scheduling orders, blanket orders, subscription management, payments and returns

Customer Management - 

What are the customer preferences, personal details (birthdays, anniversaries), account, shopping habits, experience surveys and ratings

These are just a few queries that are addressed. However, there is an ocean of capabilities where Supply Chain is concerned. All it takes is a little bit of understanding and applying.

Happy Daxing :)

Transactions in AX

The every day activities of a business are "stored" in the system as transactions. It is these transactions that are summarized to provide the management with a view of the business, what is happening and what is forecast for the foreseeable future.

Every entry in the system is a transaction and these transactions are recorded by a process known as "posting".

A "posted" transaction is one that has been recorded in the system and will reflect the impacts.

Before a transaction is posted in the system, a New Fiscal year must be created. The  Fiscal year must then be divided into periods. No transactions can be posted unless a period is created for the date of posting.

AX posts transactions according to dates as opposed to periods. Each transaction has a posting date attached to it. The dates are the basis for summarizing the transactions in a period/ year.

Periods are equal length intervals in a fiscal year. Usually, a fiscal year is divided into 12 periods, one for each month. These are called accounting periods.

In AX, however, 2 additional periods are created for every fiscal year. These are Opening and Closing Periods. These are used to record the closing and opening balances for the year.

The accounting periods are used to record the daily transactions in the system. No entries can be made in the opening and closing periods.

This is a short summary of a very important process. More details in the posts that follow :)


.

Credit Note for Invoiced Orders - AX 2009

There are several instances where Purchase Orders have to be processed for returns. There are also instances where the User has used incorrect dimensions or other details on the Purchase Order and it has been invoiced.

In such scenarios, a Credit Note is created.

Even in cases where the Product Receipt is processed with the wrong dimensions, it is better to invoice the order, create a credit note and then create a fresh order with the Correct entries.

Following is a step by step instruction to create a Credit Note from an Invoiced PO:

Select the Purchase Order for which the credit note needs to be created.
Click on Functions >> Create Credit Note

A form opens. In the Header of the form, uncheck the check box for Delete order lines. This is to have a track of the original as well as the reversed entries:

Note that there is a check box that is marked for Invert Sign. This ensures that the credit note is creates with a negative sign in the quantity and the amount fields.

The form has two sections, similar to the PO form. In the header are all the PO details and the Line details are in the lower section.

• Select the respective purchase order in header.
• In the line level, if the purchase order has multiple line, select particular line(s), which have purchase returns.
• Edit the return quantity.
• Click on OK button.

Depending on whether the entire order must be reversed or only some lines on the Order, select the lines by checking the Mark box

On clicking the OK button, the system pops a dialog box asking for confirmation:

Click OK.

In the PO level, we now have an additional line with the quantity and Net amounts fields with negative values.

A credit Note must also be processed in the same way that a PO is processed.

Confirm the PO:; Postings button >> Purchase Order

For a return order, the Quantity must be Picked from the inventory.

To pick, select the line with the negative quantity, Click Inventory button in the line level. 

In the picking form, check the Auto-create box against the line. A line will be automatically created in the Pick section of the form.

Click on Post All to post the picking list.

The Issue status changes from Reserved Physical to Picked.

Close the form and return to the PO form.

Here, Post Receipts List:: Postings >> Receipts List

Up to this stage, the PO has Open Order status

Post Packing Slip:: Postings >> Packing Slip

Once the Packing Slip is posted, the Order Status changes to Received

Now, Invoice the Order by selecting Quantity as Packing Slip:

Now the Order status changes to Invoiced.

Now, go to Inquiries >> Invoice

It is observed that invoice is posted with negative amount. Click on Voucher Button. The Amounts are reversed from the original accounts.

The original entries posted are completely reversed by the posting of the credit note.

Care must be taken when there are multiple currencies involved. In case of foreign currency, there will be a difference in the original posted amount and the credit note amounts where the dates of the Invoice and Credit Note are different.

To avoid the differences in the amounts, the Credit Note must be posted on the same date as that of the Invoice. Then there will not be a difference in the amounts.

Further, where there is Weighted Average Method followed, the system posts the negative inventory with the Weighted Average Cost updated in the inventory and the difference amount (if any) is adjusted in the Inventory Offset account.

All other impacts on the accounts are reversed as is.

Prices and Discounts

AX allows businesses to define price - discount combinations for different combination of Items and Vendors/ Customers. These prices are fetched when Orders are processed against the Items/ Vendors/ Customers for whom the price/ discount has been defined.

There can be different Prices and Discounts defined for different combination of Vendors, Customers and Items. The system uses a predefined sequence of searching to find the prices and apply to the transaction lines.

Below is the sequence followed by AX to determine the prices/ discounts applicable for the Order Lines.
Note: The sequence is same for Customers and Vendors. Below is sequence for Vendors. The same sequence is applicable for Customers.

Sequence of finding a Price:

Vendor (table) - Item + Size (table)

Vendor group (group) - Item + Size (table)

All Vendors (all) - Item + Size (table)

Vendor (table) - Item (table)

Vendor group (group) - Item (table)

All Vendors (all) - Item (table)

Sequence of Finding Discount:

Vendor (table) - Item + Size (table)

Vendor (table) - Item (table)

Vendor (table) - Item group (group)

Vendor (table) - All Items (all)

Vendor group (group) - Item + Size (table)

Vendor group (group) - Item (table)

Vendor group (group) - Item group (group)

Vendor group (group) - All Items (all)

All Vendors (all) - Item + Size (table)

All Vendors (all) - Item (table)

All Vendors (all) - Item group (group)

All Vendors (all) - All Items (all)

Note: The labels table, group and all specified in brackets refer to the Account Type field while specifying the Prices and Discounts.

The system picks the first available Price/ discount from the tables based on this sequence. The dates during which the Prices and discounts are applicable is the criteria for filtering multiple lines with the same combination.

There can never be mote than one price/ discount applicable for the same Item - Vendor combination unless the start date and end dates are different. In case there is another defined price/ discount for the Item-Vendor combination defined earlier, the system considers the previous definition to be null from the date when the new definition is applicable.

More on AX in future.
:)

Year End Closing - AX 2009

Year End Closing is an inevitable process for all businesses. Yet, many of us are not completely aware of the details of the task in AX.

Following are the details of the process in AX 2009:

Prerequisites to Fiscal Year-End Close

• Related General Ledger Parameters for Fiscal Year Close:
• Set the Periods status to ‘STOPPED’: 
• Periods form – Module status tab 

Make any adjusting entries by using the general journal

Transfer Opening Balances

Prerequisites to Fiscal Year-End Close:

1. Run the Inventory Close process through the end of the fiscal year. 

Path: Inventory Management >> Periodic >> Closing and Adjustment

The Inventory Close process will take into account the Inventory Valuation selection you have selected on the Inventory Model Group from the Weighted Average Method that is used during the month.

2. Create a new Fiscal Year 

Path: General Ledger >> Setup >> Periods >> Periods 

Create the next Fiscal Year that you will be creating transactions for. This step may have been done previously if the Fiscal Year is not closed right at Year End. 

3. Set the appropriate Periods to Stopped in the current Fiscal Year. Also Open the Closing Period to allow posting of the Closing Entries. 

Path: General Ledger >> Setup >> Periods >> Periods

Change the status of any period that should not have further transactions posted to it to Stopped. In case the period is set to Stopped, it can be reopened. Change the status to Closed only if there is no possibility of any transactions being posted to this period.

Note: A Closed Period may can not be reopened.

4. Backup Data. 

Backup the Ax data. 

5. Make Adjusting Entries. 

Make adjusting entries by passing Journals where necessary

6. Print final Financial Statements. 

Path: General Ledger >> Reports >> Periodic >> Financial Statement

Print the Final Financial Statements. This would include the Cash Flow Statement, Statement of Stockholder's Equity, Profit and Loss Statement (Income Statement), and Balance Sheet. 

7. Print 1099s for any Vendor that requires a 1099 statement. 

Path: General Ledger >> Periodic >> Tax 1099 >> Report 1099 

For any Vendor that requires a 1099 statement, please be sure to set up the 1099 forms as well as the Vendor. Please note that 1099 reports can be reprinted. 

8. Transfer Opening Balances into the new Fiscal Year. 

Path: General Ledger >> Periodic >> Fiscal Year Close >> Opening Transactions

Use this job to move the Balance\Asset Account Balances forward into the New Fiscal Year. This job will also move the balances of your Profit & Loss\Cost\Revenue accounts to the Year-end Result account which is set up in the System Accounts (General Ledger >> Setup >> Posting >> System Accounts).

Related General Ledger Parameters for Fiscal Year Close:

Path: General Ledger >> Setup >> Parameters >> Ledger Tab

• 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 (process is repeated), in the Opening Transactions form. So with this selection, we can process the transfer multiple times, if needed, while Opening entry will be only one.

• Create closing transactions during transfer:

If this check box is selected, the system creates closing transactions when running the Opening Transactions job. In that case, the system posts closing transactions to all profit and loss accounts and all balance accounts, although Opening Transactions are posted on balance accounts only.

• Set period status to year closed:

If this check box is selected, the system displays a status of Year closed for all fiscal periods for the year that is being closed (when you run the ‘Opening Transactions’ job).

NOTE: Care should be taken while selecting this check box, as we may have to run Opening Transactions job several times.

• 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.

Set the Periods status to ‘STOPPED’:

When we create a new fiscal year, we may have to control or stop transactions from updating to the ledger accounts during the closing process. To stop transactions set the period(s) to Stopped status.

Periods form – Module status tab

Close all the modules, except for the General Ledger during the closing process. Often only allow for specific user groups to enter transactions and leave the period open.

To set up module status for every module, go to the Module status tab on the Periods form and select the User group in the Module user group filed area who can update the respective module.

Note: Open the year-end closing period in the fiscal year being closed to enable posting of any necessary closing entries.

Make any adjusting entries by using the general journal:

Print the trial balance in order to look for any variations and make adjustments before closing the period.

Transfer Opening Balances:

Transfer opening balances into the new fiscal year.

• In the opening transactions process, System creates a line for the opening transaction which makes up the opening balance for the New Year.
• The system also creates a transaction for each currency and dimension. It is necessary to maintain this to keep statistics and financial reporting. You can transfer balances as frequently as needed during the year-end close process.

I Path: General Ledger >> Periodic >> Fiscal year close >> Opening transactions

II Enter the End date of the fiscal year

III Profit and loss accounts are always reset by the system. You must specify the transfer method for the balance sheet accounts. In the balance accounts fields, you should specify one of the following two options:

• Reset: Reset the balance accounts and enters the opening balances for the balance sheet accounts manually.
• Closing > Opening: continues with the balance sheet accounts, and has the opening transactions created automatically by the system.

IV Enter the ‘Account for transfer of year-end result’ in the system account.

V Enter the Voucher number for the opening transactions that are created automatically.

Click OK when all the fields are entered. This process may take several minutes, depending on the amount of data.

When the process is complete, check the account balances or print the Trial balance. You can run the year-end job as many times as needed. The opening balances will update correctly.

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