Pharmatec: Integrated Functions and Improved Operations Through Dynamics AX 2012

The chemical/pharmaceutical industry has some typical challenges that it looks to be addressed especially when in the midst of choosing a technology and software solution. Some key pain areas include management of production particularly with respect to ingredient potency and formulae; as well as expiry and quality control. Depending on the extent and business of the company, integrated, real time information and secondary solutions towards relationship management (such as secondary sales, customers, vendors, etc.) all form key parts of the challenge within this industry.

We have solved these challenges for one of our pharmaceutical clients, Pharmatec Pakistan Private Limited. Our vertical solution caters to their multitude of challenges and focuses on bringing key benefits that Dynamics AX 2012 inherently has to offer.

Read through our case study here:

Pharmatec-Pakistan-Private-Limited-Casestudy_0

FIXED ASSETS DISPOSAL IN MICROSOFT DYNAMICS AX 2012

Introduction

1

Fixed Assets during their entire life undergo four phases, of Acquisition, Depreciation, Value Adjustment and Disposal; we can call it Fixed Asset Life Cycle.

Microsoft Dynamics offer several ways to “Acquire”, “Depreciate”, “Adjust” and “Dispose” the assets. The Acquisition can be rotated through Fixed Asset Journal, Vendor Invoice, Inventory to Fixed Asset Journal, and proposals. The same can be done for depreciation and value adjustments.

In today’s’ post, we will go through the process of disposal and discuss the parameters for accounting. We can use “Disposal Sale” and “Disposal Scrap” to dispose the assets; it will lead the net book value of asset to “zero” and lock the asset for future transactions.

Fixed Assets Disposal

The fixed assets which are not in use or outdated or which cannot be repaired or for some other reasons, require being disposed. It is the process whereby organizations write-off the asset from their accounting book by transferring all relative values to a profit and loss account. On the other side, the sales proceeds are also parked to the same account to drive up to profit or loss on sales of fixed asset.

Out of different ways, the following two are commonly used to map the transaction in Dynamics AX 2012.

  • Disposal sale
  • Disposal scrap

Sale is an external disposal, whereas “Disposal Scrap” is considered an internal transaction.

Disposal Sale

Most of the times, fixed assets during their useful life are sold for a one of few reasons, they are no more usable, or the entity has had a change in requirements. Hence, the asset in its useful life can be sold in the market and it brings some sales proceeds as well. In this case the Difference between Cost, Accumulated Depreciation and the sales proceeds is the loss or profit on disposal.

Disposal Scrap

It is the situation where the asset is expired or outdated and has no market value or it cannot be sold in market. In this case the difference between Cost and Accumulated Depreciation is the Loss or Profit on disposal of asset.

 

Disposal of Fixed Assets in Microsoft Dynamics AX 2012

The challenge is to set-up the accounting codes in the parameters so that Microsoft Dynamics AX 2012, uses the appropriate accounts to set-off transactions. The situation becomes more complicated for the organizations where separate main accounts are used for each fixed asset group’s acquisition, depreciation and adjustments.

Fixed Assets Posting Profile holds up the accounts for sales or scrap of fixed assets, as shown in below screen shot.

2 Now, we need to give the “Disposal – Sale” Account, the main account for profit and loss on sales. Appropriate account for profit and loss on scrap of fixed asset can be provided in the particular tab.

3

After giving the Disposal – Sale and Scrap accounts click on “Disposals” button at header of this form and select the appropriate type i.e. sale or scrap.

4

5

For every asset group we have to give main accounts for various transactions i.e.:-

  • Net Book Value
    • In the main account field select the asset (cost) account. (to be credited)
    • In the offset account field select the profit and loss account. (to be debited)
  • Depreciation (This Year)
    • In the main account field select the asset (cost) account. (to be credited)
    • In the offset account field select the accumulated depreciation account (to be debited)
  • Depreciation (Prior Years)
    • In case there is separate accounts for prior years accumulation and current accumulation, give prior years accounts here.

In case various accounts are used to park various amounts related to fixed assets, then more lines are required to be added accordingly.

Accounts Codes Used in Screen Shots

Account Type Account Codes
Furniture and Fixture – Cost 3-1-1-1-003
Furniture and Fixture – Accumulated Depreciation 3-1-1-2-001
Gain/Loss on Sales of Fixed Assets 4-2-2-1-001
Accounts Receivable 1-2-1-2-009

 

6

Now we process a transaction, through Free Text Invoice for the sale of Fixed Asset. 

7

Create a new free text invoice.

8

Provide customer name and date at header level of free text invoice.

9

Give the fixed asset number in the line details, the value model field will auto populate.

10

The main account will also populate as it was given in fixed assets posting profile.

11

Proceed to post the invoice.

12

Now, go to fixed asset module, select the fixed asset and click the “Value Model” button, this will show the status of asset as “sold”.

13

The following is the extract of voucher posted by system for disposal of asset.

14

Hope this blog post helps you with fixed asset disposals in AX 2012!

 

Reports stuck on Queued / Cancellation in Management Reporter 2012

Hello everyone. So recently I was quizzed as to why my reports generated in MR 2012 where being stuck on queued for a very long time with no progress at all.

Report stuck

So here’s a useful tip if you ever bogged down as to why the reports you generate in Report Designer (MR 2012) gets stuck on cancellation or queued status. You just need to start / restart the Management Reporter 2012 Process Service Properties. Navigate to Services (Start Menu > Run > Service.msc) and find the following service MR2012ProcessService.

Start service

In our case, the service was stopped and needed to be start. Right click the service and select the Start / Restart option. Once the service has started, the reports will start to generate and will no longer be stuck in Queued status.

Service starting

 

So this was pretty simple solution that had me bogged down for quite some time. Hopefully this will help out some people.

AX2012 R2 Retail: Login failed. The login is from an untrusted domain and cannot be used with Windows authentication.

The scenario is that POS PC and Store database PC are joined to domain however they are on a remote location and without VPN access they cannot resolve Active directory user and FQDN. Instead of a domain account, we used local PC account to perform all actions on SQL and connect Retail POS through the same local user. We also used different credentials for POS and Store database pc, e.g. POSPC and StorePC which is perhaps the mistake we made.

After all setups for POS, when I started AX 2012 R2 Retail POS it stopped working, event viewer showed following error:

“Login failed. The login is from an untrusted domain and cannot be used with Windows authentication”

In order to resolve this error make sure of the following:
1. Username on POS and Store database PC must be SAME.
2. Password for both users must be SAME.

This user will authenticate POS user on Store database PC to connect to SQL database only if the username and password are the same.