There are a lot of places were you need to set ledger accounts in Dynamics AX 2012.
This post is about setup
regarding sales. I walk you through setting you need to make sales postings accurate.
1. Inventory accounts
The most complicated setup is for inventory management.
Menu item “Inventory management / Setup / Posting / Posting”
1.a. Packing slip
This account should be the one which holds selling assets.
The account is credited when a packing slip is posted. The account is debited when the sales order
is invoiced.
Posting type is “Order packing slip”.
1.b. Packing slip offset
Usually this account is asset account that holds amount ready to receive.
The account is debited when packing slip is posted and credited when the sales order is invoiced.
Posting type: “Order offset account packing slip”.
1.c. Issue
Must be asset account (or a valuation account for the asset account) that holds the amount of inventory
sold.
Credited when the sales order is invoiced.
Posting type: “Sales order issue”.
1.d. Consumption
This account is an expense account and collects cost of goods sold.
The account is debited when invoice is posted.
Posting type: “Sales order consumption”.
1.e. Revenue
The account is revenue one and holds revenue from sales.
The account is credited when the invoice is posted.
Posting type: “Sales order revenue”.
1.f. Commission
This is an expense account.
The account is debited when sales invoice is posted
Posting type: “Sales, commission”.
1.g. Commission offset
This is a liability account.
The account is credited when sales invoice is posted.
Posting type: “Sales, commission offset”.
2. Receivables
Accounts receivable used to record the debt of the customers.
Menu item “Accounts receivable / Setup / Customer posting profile”
Here you need to specify at least “Summary account” for the profile.
This account is an asset account and holds receivables.
The account is debited when sales invoice is posted and credited when a payment is received.
Posting type is “Customer balance”.
3. Charges
Charges are used to track amount in addition to the sales order.
Menu item “Accounts receivable / Setup / Charges code”.
A charge code can debit customer/vendor account and credit a ledger account. It means that it debits the
account specified for the receivable module in the customer posting profile and credited a specified ledger
account for the charge code.
Another option is to debit a specified ledger account and credit a receivable account. In this case the system
decreases the debt of the customer and records expense or asset.
Posting types is applied in accordance with the value in the “Posting” field.
4. Sales taxes
Sales tax accounts are applied in accordance with the sales tax code used.
Menu item “General ledger / Setup / Sales tax / Ledger posting groups”
In the ledger posting group you need to have at least sales tax payable account.
This is a liability account.
The account is credited when sale is invoiced.
Posting type “Sales tax”.
In case you have properly set all accounts described in the post and set accounts for currency revaluation and
account for automatic transactions, then your sales should go smoothly. They should not be interrupted
because of lack of ledger accounts setup.
This post is about ledger postings setup regarding purchasing in Dynamics AX 2012. The system has a lot of
places where ledger accounts can be set. In this post I show you important places where account must be set.
It will help to post purchasing smoothly.
1. Purchase inventory posting
Let’s start setting up from the inventory posting. Go to the “Posting” form on the “Purchase order” tab.
Menu item “Inventory management / Setup / Posting / Posting”
On the tab “Purchase order” you should set at list the accounts:
1.a. Product receipt
This is an asset account.
It is debited when product is received and credited when the purchase order invoiced.
Posting type is “Product receipt”.
1.b. Purchase expenditure, un-invoiced
In case of unstocked items and procurement categories the un-invoiced purchase expenditure account will
have a debit balance until the product receipt is fully invoiced. In this case you can consider to set an asset or
expense account there.
In other cases the account usually doesn’t have a balance and isn’t transferred to ledger.
Posting type is “Purchase expenditure, un-invoiced” for this transactions.
1.c. Purchase inventory, receipt
This is an asset account.
The account is debited when the purchase order is invoiced.
Posting type is “Purchase, inventory receipt”.
1.d. Purchase expenditure for product
Usually this account doesn’t have any balance. But in some cases it can have. For example when different
currency rounding logic is used or a stocked item is returned at a different price than average cost.
Purchase expenditure for product account must be specified. You can consider to set profit or loss account
there.
1.e. Purchase, accrual
The account is for recording liability.
Is credited when the product receipt is posted and debited when the invoice is posted.
Posting type is “Purchase, accrual”.
1.f. Purchase expenditure for expense
This is an expense account.
The account is debited when instead of item used a procurement category in a purchase order.
Posting type is “Purchase expenditure for expense”.
2. Payable entry
Now you need to set a liability account to record debt to the supplier. Vendor posting profiles are used for this.
Menu item “Accounts payable / Setup / Vendor posting profiles”
You need to set at least “Summary account”.
This is a liability account.
In most cases the account is credited when the purchase order is invoiced to record debt to the vendor.
The account is debited when the payment is made.
Posting type of the transaction is “Vendor balance”.
3. Miscellaneous charges
Charges can be used to track the cost related to the purchase. It can be fright, insurance, loading/unloading of
goods and so on.
Menu item “Accounts payable / Setup / Charges / Charges code”
Different options are available. You can debit:
1. An asset account which is linked to the item via inventory postings settings. In this case you increase the
value of the inventory received. Specify “Item” for the “Type” field this option.
2. A ledger account that is specified directly for the charge code. Usually this account is an expense one. Set
“Ledger account” value in the “Type” field for the option.
3. A liability account which is set in the posting profile of the vendor. This decreases the debt to the
supplied. Specify “Customer/Vendor” for this option.
You can credit:
1. A liability account linked to the vendor account. This increases debt to the supplier. Specify
“Customer/Vendor” value in the “Type” field for this option.
2. Ledger account specified for the charges code. Use “Ledger account” for this option.
Posting types for transactions are used in accordance with the value in the “Posting” field or in accordance
with the type of the entry (item or customer/vendor).
4. Sale taxes
A sales tax code must be linked with a ledger posting group. Tax accounts must be specified in the ledger
posting group.
Menu item “General ledger / Setup / Sales tax / Ledger posting groups”
You need at least sales tax receivable account specified in the ledger posting group.
This account is asset one.
The account is debited when purchase is invoiced.
Posting type “Sales tax”.
5. Purchase price variances (aka PPV)
It is needed to set a purchase price variance account if you use standard costing. This account is used to post
difference between standard cost and price paid for the inventory.
Menu item “Inventory management / Setup / Posting / Posting”
This account is balance one, so it can be as asset or liability. The balance of this account is usually
periodically allocated on cost of goods sold, inventory, and work in process accounts.
The account is debited in case the standard cost of the purchased inventory is lower than the price paid.
The account is credited if the standard cost is higher than the price.
The purchase price variances are calculated when product receipt or invoice is posted.
Posting type: “Purchase price variance”.
Settings, described in the post, must be done properly. It helps you to process purchasing smoothly.
If you know other ledger settings which are important for purchasing, please feel free to share your knowledge
in comments.
