PO, Receipt and Invoicing – Scenarios

Wish to retain these results for future reference:

• If the PO is for Quantity 1 and value 100. If Receipt is for 0.6 (value = 60), the accrual transactions are posted for 60. Now if the invoice is for 0.4 (discrepancy approved), the accrual of 60 is completely reversed and invoice posting for 40 is posted. The difference of 20 is not accrued. However if you go to the PO, the deliver remainder is still 0.4, as 0.6 was received. If you now try to invoice, the quantity suggested is 0.2, as that is still to be invoiced (based on the option ‘Product receipt quantity’ selected on PSI). If this invoice is posted, then there is no accrual reversal transaction and the invoice posting is for 0.2. Deliver remainder after the second invoice is still 0.4 and the PO is open.
• If the PO is for Quantity 1 and value 100. If Receipt is for 1 (value = 100), the accrual transactions are posted for 100. IF now the PO is increased to Quantity 2 (value=200) and confirmed, then even after the invoicing (Amount posted to creditors account = 100) of the receipt quantity, the PO is still open. If the user manually changes the ‘Deliver remainder’ quantity to 0, then the PO status changes to Invoiced.
• If the PO is for Quantity 1 and value 100. If Receipt is for 1 (value = 100), the accrual transactions are posted for 100. IF now the PO is increased to Quantity 1 BUT unit price 200 (value = 200) and confirmed, then even after the invoicing (Amount posted to creditors account = 200) of the receipt quantity, the PO is closed (invoiced). In this case the ‘Deliver remainder’ quantity is 0.
• If the PO is for Quantity 1 and value 100. If Receipt is for 1 (value = 100), the accrual transactions are posted for 100. IF now the PO is decreased to Quantity 0.8 (value=200) and confirmed, then system complains and gives the following error: ‘Quantity cannot be reduced because remaining update quantity changes sign’. However if you wish to change the receipted quantity instead of directly changing the quantity on PO, user can use the ‘Correct’ and ‘Cancel’ feature on the PO receipt. Correct would post / reverse the different between the new and old quantity. Cancel would simply cancel the old receipt transaction.
• Correction / Cancellation to receipt can be done line by line (if the PO is multi-line).
• Correction / Cancellation of receipt will be always posted to the original date. For e.g. Receipt date is 2nd of September 2015, however i realized on 10th of September 2015 that the receipt is wrong and i decided to cancel it. If i corrected / cancelled the receipt on 10th of September 2015, the reversal of the accrual posting will happen on 2nd of September.  
• The reversal of the receipt ledger transactions on account of invoice will posted on the invoice date. 
• If the PO date is 16^th August and PO receipt date is 30^th August. At month end August is closed. In September on 9^th of September, if the PO receipt is corrected, then system gives the following warning message : The packing slip correction cannot be posted to the original accounting date when the fiscal period is closed. The accounting date has been moved to the first day in the next open fiscal period.
• Duplicate Invoice number check on the Pending Supplier Invoice is in-built in AX. This check is based on the combination of the vendor and the invoice number. For e.g. for Vendor 001, if the invoice number Inv_900 is already used and if for the Pending supplier invoice for the same vendor i am using the same invoice number (Inv_900) again, then system will complain and display an error message that this is duplicate. However if the invoice number (Inv_900) is already used for Vendor 001 and now if the same invoice number (Inv_900) is to be used for different vendor, system will not complain.
• Pending supplier invoice can be created for a vendor without a PO, for e.g. for utility bills, where PO is not required. Pending supplier invoice can be created for multiple PO's. (i.e. one invoice for multiple PO for the same vendor)
• User cannot change the sign on the UNIT PRICE. If you wish to change the sign of the PO line, it has to be / must be always  changed on a QUANTITY. If the sign of the unit price is changed, system gives following error - ‘The sign on the quantity and net amount have to same’. 
• (+ve) Quantity * Unit Price = (+ve) Line Net amount – For Invoice
• (-ve)  Quantity * Unit Price = (-ve) Line Net amount – For Credit Note

Thanks

Sarang

Exchange Rate Issues in AX

I have always wanted to know how exchange rates behave in AX (as to when the auto posting to realized accounts happen and when it doesn't). I did some testing and this is what i thought i should record, before i forget.

11. Exchange Rate difference postings to realized exchange rate profit and loss accounts happen automatically when the sales invoice and the payment is in different currency than the company currency AND the payment is posted in the system on the date other than the invoice date.

Company Currency - GBP

Transaction Currency - USD

Exchange rate GBP / USD is different on the date of invoice and on the date of payment.

Based on the scenario mentioned above, if there are any exchange rate gain or loss, then it is AUTOMATICALLY posted.

22. If the sales invoice is in the company currency (GBP) and the payment is posted in transaction currency (USD), then the exchange rate posting will NOT be done automatically to the exchange rate gain or loss accounts. System will take the exchange rate defined in the system, calculate the value and post it in the system. However there are many different scenarios to it:

•      If there arises the need to change the exchange rate, then it can be done by changing the Cross rate. If the cross rate is changed, then the auto postings take place in the exchange rate profit and loss accounts.
•             If there arises the need to change the exchange rate, it can also be changed from the general tab by actually changing the exchange rate. However this will not change the amount in the journal and the journal will post. This will automatically not post to exchange rate profit and loss accounts. The only thing system will do in this case is, it will determine the value based on the exchange rate changed and then will either keep the invoice open or the payment open on the customer account.    

33. There is also one more scenario which is of credit note. If the invoice is raised in different currency than the company currency on certain date. After few days if the credit note is to be raised for the same, then what exchange rate the credit note should have, is the question. To manage this there is a setting in Sales Ledger parameters (Updates - Use exchange rate from source document) . If we do not turn the parameter on and go ahead the try to raise the credit note, then system complains and gives error, as the value does not match because of exchange rate fluctuations. The setting that I am talking about makes sure that the credit note also has the same exchange rate that of invoice. On the projects side though this thing can be managed, if the contract is a fixed rate contract.   

Just wanted to note this down so that I wont forget in the long run.

Kind Regards

Sarang