Year End Close in AX 2012

While waiting at the KL airport for my flight to Mumbai, I tested the functionality of Year End Close on my VPC with various scenarios and situations. Here are the findings:

• If the Voucher number is given at the time of processing the year end close, the same voucher number will be used for Closing and Opening transactions.
• If you wish to run the year end close again and if you give the same voucher number, then the system complains and asks for new voucher.
• If you give the new voucher number and the 'DELETE CLOSE OF YEAR TRANSACTIONS DURING TRANSAFER' is checked in GL parameters, and after that you run the process as discussed in the step above, then the system deletes the opening and closing transactions generated as a result of previous closing exercise and then creates new transactions for this run.
• Significance of 'DELETE CLOSE OF YEAR TRANSACTIONS DURING TRANSAFER' as mentioned in AX training books is as follows: Delete Close of Year Transactions during transfer check box to delete open transactions and system-generated closing transactions when a transfer is repeated. This can process the transfer multiple times if it is necessary but only creates one opening entry. If it is clear, the previous transfers are not deleted. Instead, the system transfers the net adjustments compared to the last time that a Transfer is performed. This allows for the tracking of historical transfers, but many transactions are created.
• If you wish to reverse the year end close transactions, then run the process again with a new voucher number and by selecting 'RESET'.
• After RESET, the previous transactions related to year end will be deleted. The Close-of-year transactions Report will be empty.
• Once the transactions are reversed, you can run again the Year End Close for the same year with the same voucher number.
• If 'CREATE CLOSING TRANSCTIONS DURING TRANSFER' is unchecked, closing transactions are not printed in the Close-of-year transactions.
• Significance of ''CREATE CLOSING TRANSCTIONS DURING TRANSFER' as mentioned in the AX training books is as follows: Create closing transactions during transfer check box to create closing transactions for all the ledger accounts, including the profit and loss accounts, when running the opening transactions job. This does not mean that it transfers profit and loss balances but it creates closing transactions only.
• If 'VOUCHER NUMBER MUST BE FILLED IN' is not selected in GL parameters and voucher number is not entered while running the year end close, then the transactions are created without the voucher number and Voucher Number field is empty when the Close-of-year transactions is printed.
• Significance of 'VOUCHER NUMBER MUST BE FILLED IN' a mentioned in the AX training books is as follows: Voucher number must be filled in check box to enter a voucher number when opening transactions are created for a new Fiscal year.
• Suppose you have to run the year end close procedure for many years and if you decide to run the year end closing randomly (.i.e. closing 2012 first and then 2011), then the system allows it and will not complain, but figures generated out of it will be completely wrong. This was just tried as part of negative testing. In a real world no one will close the years randomly.
• Also if you try to run the year end process for the year where there are no transactions, the Close-of-year transactions report is empty, but the system still gives the message: 'The transactions for the fiscal year 20??-20** have been created'.
• The End Date should be the last day of the Fiscal Year. (.i.e. 31/12/2013) and the Period Name (which is system generated) should be Period 13. (The closing period).
• 'SET THE FISCALYEAR STATUS TO CLOSED' if checked in the GL Parameters, system ensures whether all the prior periods are closed (HARD CLOSED) or not. If they are closed then it allows the system to close the year and if they are not closed, then system complains and displays the message, 'Fiscal Year that ends with date 31/12/20?? is not closed'. Period 13 (Closing Period) must also be CLOSED.
• If the system has run the Year End Close process with the setting as mentioned in the step above, then system CANNOT Reset the transactions. If you try to do so, then the system displays the message, 'Fiscal Year that ends with date 31/12/20?? is already closed'.
• Opening period (Period 0) of any Fiscal Year is always CLOSED by default and only system is allowed to post in that period. Transactions posted in Period 0 are of type Opening.
• Closing Period (Period 13) of any Fiscal Year is always ON HOLD and should be changed to OPEN while posting the Closing Sheet. After the Closing Sheet is posted, the user should put the Closing Period status back to ON HOLD without fail. Transactions posted in Period 13 are of type Closing.
• Transactions posted in Periods from 1-12 are of type Operating. (Somewhat off topic, but the reason for mentioning about Opening, Operating and Closing is that while configuring the reports in MR, when we specify YTD, it means Opening + Operating AND when we specify YTD/BB, then system looks at only Opening.)
• Even if the Closing Period is ON HOLD, then also the while running the Year End Close (Opening Transactions), its not necessary to change it back to OPEN. System posts the closing transactions in that period even if it is ON HOLD.
• If there are certain open transactions that are still not posted and if you are running the Year End Close for that year then the system displays the message: 'The Journal ****-!!!!!(Daily) contains not posted transactions with a date before end of fiscal year 31/12/20??'. In such a scenario, either post the transaction or delete the transactions and try the year end close procedure again.

Thanks!

AXAPTAMANIAC
 

Somethings that i should remember always...

This list will be updated periodically based on the learning on the day to day basis.

• Purchase Pools are configured in Procurement and Sourcing section in Setup > Purchase Orders > Purchase Pools 
• Buyer Groups are configured in Inventory and Warehouse Management section in Setup >  Inventory > Buyer Groups 
• Migration Control account is used for Sub-Ledgers only. 
• Debit Note is given by us to the Vendor. (i.e. we are asking the Vendor to pay us back)
• Credit Note is given by us to the Customer.(i.e. we are paying the Customer back) 
• Ledger Account selection in the Bank Transaction Types is for the system to suggest the appropriate ledger account code based on the selection of the Bank Transaction Type, while creating a new transaction during the Bank Reconciliation process.This is just a system recommendation, which can be overridden by the user. But for posting corrections during Bank reconciliation process, this is most useful, as users are not allowed to select the account when corrections are posted. The user has to just select the Bank Transaction Type and the system determines the appropriate account (ledger code) based on the selected Bank Transaction Type.
• Initialize Balance and Update Balance buttons in the Financial Dimension Sets (GL > Setup > Financial Dimension > Financial Dimension Sets) are used to initialize the balances once the migration data is loaded. If this is not done, then Ledger Account in COA will NOT display any balance, even after the presence of the transactional data in the system.
• While defining the Ageing Period Definition, if the user clicks on the + (green) icon, system will only allow to create the negative values but not positive ones. If the user wishes to enter the positive values, then just create the new line by using the downward arrow key and then enter the values.
• Journal can be printed from the Journal Voucher form by selecting the Print Journal option. However most of the times the requirement is to print the journal all at ones. Then the user can do so from the Journal Header. Also one other type of requirement is to print the journals which are not yet posted. Dynamics AX has inbuilt report for this kind of requirement. The report is: General Journal entries that have not been posted. Proper queries are to be created in the query window to get the desired result.
• Document Date, Due date and Transaction Date: Document Date is the date of the document. For e.g. you have received a invoice from the vendor, having a certain date on it. That is called a document date. If AX registers this invoice at a later date in the system, at that time the Document date will be different from the Transaction date. Transaction Date is the date when the transaction is posted in the system. Due date is the Document Date +Terms of payment OR Transaction Date + Terms of Payment (if the document date is not specified). For the Terms of Payment to work properly, Invoice Number should be specified in the journal line.
• Aging Report and Customer & Vendor statement can be created for all the dates namely, Document Date, Transaction Date and Due Date.
• Write Off journal can be created from the Collection screen. This journal is a daily type of journal and cannot be directly created from the General Ledger > Journals. Setup that is required for the Write-off journal is to create the write off journal in Journals. Then define that journal in the Parameters section along with the reason code. Finally define the account code for Write Off (Bad Debts write Off, expense account) in the Posting Profile.
• Write-off journal can be created by clicking the Write-off icon in the ribbon. If the icon is clicked from the Collections screen, the entire outstanding amount is selected for the journal that is created. If the icon is clicked from the individual customer line, then the user has the ability to select the amount that needs to be written off. Once the journal is created, system displays the message.
• The Cheque can be Deleted, Void and Cancelled. Only cheques with status = CREATED can be Deleted. When the cheque payment is Rejected from the payment journal, then the cheque status changes to VOIDED. You can reverse only posted cheques that have a status of PAID. You can only void un-posted cheques When the payment / cheque is reversed, the status of the cheque changes to CANCELED.
• Security Administrator role should be assigned to the user for him/her to access Management Reporter.
• Treasurer role is used for allowing the user to Reprint the Payment Advice from Bank Module and also Cheque Generation. This role should be assigned to all the users generally in the AR and AP function.
• While creating Currency, if the Currency Code is not present in AX, then create it with 999 - Unknown Currency Code.
• For all the print outs that can be obtained from the system, like Free Text Invoice, Sales Invoice, Packing Slip, user can have specific information printed on it. This can be configured from Form Notes. Similarly Form Setup allows you to select whether the paper that is used should be Printed or Pre-Printed.
• Approval Checkbox should be clicked in the AP invoice journal or else the journal will be posted but the transaction will NOT appear in the Settle Open Transactions form. If by mistake this has happened, then this can be rectified by going into the Vendor Transactions form and clicking the Approved checkbox. After this the transactions will start appearing in the Settle Open Transactions form.
• Forced Rate checkbox should be checked if you wish to apply the different exchange rate than what the system is suggesting as per the setup. If the Forced Rate checkbox is NOT checked and the new exchange rate is entered, system will still consider the exchange rate that is configured in the exchange rate setup and NOT the ones that you have given. This means that Forced Rate checkbox should be checked for the spot exchange rate to affect.
• Reconcile checkbox while reversing the check : Cheque with the sent status does not appear in the Bank Reconciliation. If the reconcile checkbox is NOT checked while reversing the payment, then a NEGATIVE line for a cheque will appear in the Ban Reconciliation along with the original entry. If the Reconcile checkbox is checked, the transactions does not appear in the Bank Reconciliation.
• Free Text Invoice Number is generated after the invoice is posted.
• Payment Advice will always have a transaction date, even if the document date is given.
• AX Auto Report can be generated from any form by navigating to File > Print > Print. This will open the AX Auto report and user can then define the criteria as per his requirements.

Thanks!

AXAPTAMANIAC