Posts tagged with: AX 2012 Retail

Managing Royalties with Microsoft Dynamics AX 2012 R3

Microsoft Dynamics AX 2012 R3, provides functionality to manage royalty agreements and claim amounts, book their accruals and manage payments. In today’s post I will try to explain the procedure of Royalty Management.

What is a Royalty?

Royalties can be defined as paying certain amount to the owner of a property or a brand for the usage of property or brand. Normally, the original owner of a product sells their product against a certain share of future revenues.

The common practice is the usage of Brand names by third party, in this case, a company use a brand owned by another company and pay a specific percentage of sales to the brand owner.

Microsoft Dynamics AX2012 R3 provides complete solution of Royalty Management, whereby, organization can manage royalty agreements, claims and their payments. In the following lines, the solution is illustrated to help consultants and users:-

Royalties Management with Microsoft Dynamics AX 2012 R3

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Parameters – Accounts Payable

In the accounts payable parameters, select the “Broker and Royalty” tab as shown in the following screen shot.

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  1. Starting day of week would be required in case of royalty calculated on weekly basis.
  2. The accrual account is the liability account in which the royalty liabilities would be credited
  3. The expense account is the charge account where the royalties would be charged.
  4. Procurement category is used for vendor invoice creation to pay the royalty liabilities.

 Royalty Agreements

After setting up parameters, the next step is to define the Royalty Agreement, for this purpose, in accounts payable module click common click royalties and then click royalty agreements, as shown in below screen shot.

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The following is the royalty agreement form which has two important parts i.e. Header and Line.

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Royalty Agreement – Header

In the header section of Royalty Agreement, provide the information of vendor to which the Royalty is payable and then provide the basics of calculations.

Field Description
Royalty contract Enter the identifier for the royalty agreement; the identifier is used to determine the royalty type and default ledger accounts for this agreement.
Vendor account Select the vendor for the royalty contract.
Description Enter a description of the agreement.
Unit Enter the unit of measure for the royalty quantity.
Unit type Select or view the royalty agreement unit type. The values are Inventory unit and Catch weight unit.
Unit of measure royalty option Select the unit of measure royalty option for the royalty agreement. This option identifies the unit of measure for the royalty line. If you use the Exact match option, the unit of measure for the royalty line must exactly match the unit of measure specified in the sales order. If not, the royalty does not qualify. If you use the Convert option, the unit of measure for the royalty line is the same as the unit of measure for the royalty agreement. The royalty unit of measure is converted to the sales order unit of measure, or the catch weight unit of measure, based on the option selected in the Unit type field.
Calculation date type Select the date type, which is used for royalty calculation. The values are:

  • Created: The date when the sales order was created
  • Requested receipt date: The requested receipt date of the sales order
  • Requested ship date: The requested ship date of the sales order
Start date Enter the date on which royalty management begins to create accruals based on the agreement. If the agreement is effective immediately, leave the field blank.
End date Enter the date on which royalty will no longer be created based on this agreement. If the agreement does not end, leave the field blank.
Cumulate sales by Select the period during which invoiced lines will be added and compared against the agreement. The options to select from include Invoice, Week, Month, Year or Customized period.
Period type When Cumulate sales by is Customized period, you have to select the period type to cumulate the sales.
Taken from Select whether the royalty value is based on the gross or net of the sales order line.
Accrual account Enter the ledger account to be used for interim liability postings.
Expense account Enter the ledger account to be used for interim expense postings.
Currency The currency type determines the currency in which royalty is remitted. You can specify a generic currency, which is converted on the order, or you can specify a specific currency for the royalty.
Approval required Select if royalties created from this royalty agreement require approval before they are processed to the ledger accounts.
Calculate by Select if the royalty break is based on quantity or amount.
Validated Shows whether the royalty program is validated.
Validated by Shows whether the royalty program is validated.
Item number Select the items which qualify for this royalty agreement.
Product name Shows the product name of the item.
Unit Shows the sales unit of the item.
Site Shows the default sales site of the item.
Warehouse Shows the default sales warehouse of the item.
Location Shows the default issue location at the default sales warehouse.
Note You can enter specific notes for the royalty agreement.

 

Royalty Agreement – Lines

At the line level of Royalty Agreement, provide the information on the basis of which the royalty amounts would be calculated, in also contains the specific items on which royalty has to be calculated. However the item on which the royalties are calculated can be defined at the header level but in case, the royalty is payable to one vendors on all sales and to one another vendor on sales of a specific item, the specific item will be described at the line level.

Field Description
Royalty code Enter the identifier for the royalty agreement; the identifier is used to determine the royalty type and default ledger accounts for this agreement.
Description Enter a description of the agreement.
Vendor account Select the vendor for the royalty contract.
Calculation date type Select the date type, which is used for royalty calculation. The values are:

  • Created: The date when the sales order was created
  • Requested receipt date: The requested receipt date of the sales order
  • Requested ship date: The requested ship date of the sales order
Currency The currency type determines the currency in which royalty is remitted. You can specify a generic currency, which is converted on the order, or you can specify a specific currency for the royalty.
Unit Enter the unit of measure for the royalty quantity.
Amount type Select the amount type of the agreement:

  • Amount per unit: A certain amount per sold unit.
  • Fixed amount: A fixed amount for a range of quantities sold.
  • Percentage: A certain percentage of the net amount sold.
Start date Enter the date on which royalty management begins to create accruals based on the agreement. If the agreement is effective immediately, leave the field blank.
End date Enter the date on which royalty will no longer be created based on this agreement. If the agreement does not end, leave the field blank.

 

Royalty Agreement – Lines – General Tab

 

Field Description
Royalty code Enter the identifier for the royalty agreement; the identifier is used to determine the royalty type and default ledger accounts for this agreement.
Note Enter a comment or note for the agreement.
Description Enter a description of the agreement.
Vendor account Select the vendor for the royalty contract.
Currency The currency type determines the currency in which royalty is remitted. You can specify a generic currency, which is converted on the order, or you can specify a specific currency for the royalty.
Unit Enter the unit of measure for the royalty quantity.
Calculation date type Select the date type, which is used for royalty calculation. The values are:

  • Created: the date when the sales order was created
  • Requested receipt date: the requested receipt date of the sales order
  • Requested ship date: the requested ship date of the sales order
Start date Enter the date on which royalty management begins to create accruals based on the agreement. If the agreement is effective immediately, leave the field blank.
End date Enter the date on which royalty will no longer be created based on this agreement. If the agreement does not end, leave the field blank.

 

Royalty Agreement Lines – Selection Tab

Field Description
Item number Select the items, which qualify for this royalty agreement.
Product name Shows the product name of the item.
Unit Shows the sales unit of the item.
Site Shows the default sales site of the item.
Warehouse Shows the default sales warehouse of the default warehouse.
Location Shows the default issue location of the item.

Royalty Agreement Lines  – Royalty Amount Tab

Field Description
From value From quantity/amount in which a royalty has to be calculated.
To value To quantity/amount in which a royalty has to be calculated.
Value Enter the value of the royalty.

 

Following is the basic process flow for royalty claims, when items which are associated with royalty agreements are invoiced through sales order, the royalty claims are created. The royalty amount can be viewed in sales order line>Price Details>:

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Royalty Claims

Click Accounts Payable>”Royalties”>”Royalty Claims”, to cumulate and process royalty claims.

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In case approval is required on royalties, the royalties can only be cumulated after approval.

The status column on royalty claim provide following information about the claim:-

  • To calculate: The final royalty amount is pending completion of the cumulate royalties run. This status applies to royalty claims that are generated from weekly, monthly or yearly agreements.
  • Calculated: The claim was cumulated and is pending approval.
  • Approved: The claim had been approved if approval is required.
  • Mark: The claim is available for processing.
  • Processed: The claim was processed and a vendor invoice was posted.

Cumulate Royalty Claims

After invoicing the sales order, user has to cumulate royalty claims. This will sum up royalty claims amounts. The royalty amounts can be cumulate on each invoice, week, month, year or a customized period.

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Once the royalties are cumulated and processed, the status of royalty claim will be set as “completed” and the vendor invoice will be posted, which can be paid.

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Your valuable comments and suggestions would be highly helpful to me for my next posts.

 

 


Error while Opening AX 2012 R2 Retail POS: could not load all external service modules

It is a common error for AX 2012 R2 POS screen, whenever we setup device information on hardware profile and run the N-jobs, this error usually appears on POS screen and it won’t let you open POS.


 

Connector TestConnector not found!

SystemCore: System.Exception: Processor not found.
at Microsoft.Dynamics.Retail.SDKManager.PaymentProcessorManager.GetPaymentProcessor(String name)
at Microsoft.Dynamics.Retail.Pos.EFT.PaymentSDKProcessor.GetEftPaymentProcessor(String connectorName)
at Microsoft.Dynamics.Retail.Pos.EFT.PaymentSDKProcessor.GetEftProcessorServices(String connectorName)
at Microsoft.Dynamics.Retail.Pos.EFT.EFT.Initialize()
at Microsoft.Dynamics.Retail.Pos.SystemCore.Services.Initialize()
at Microsoft.Dynamics.Retail.Pos.SystemCore.PosApplication.Initialize().


 

The solution I found is simple by copying TestConnector DLL to Retail folder.

1. Copy the Microsoft.Dynamics.Retail.TestConnector.dll from “C:\Program Files (x86)\Microsoft Dynamics AX\60\Client\Bin\Connectors”

2. Paste the Microsoft.Dynamics.Retail.TestConnector.dll to “C:\Program Files (x86)\Microsoft Dynamics AX\60\Retail POS\Connectors”

3. Open POS, Problem solved

 


Mix and Match Discounts in Dynamics AX 2012

Retail generally has a large amount of discount scenarios of each of which must be catered to through Dynamics AX 2012. One of our customers was looking to apply some discounts that needed to be mapped in the system as well. I have mentioned a scenario that I faced and the solutions I came up with this

Scenario:

Case 1:  Buy 1 item 000004 and get 1 item 000016 free throughout the year. And these items can sell separately too with their respective prices

Case 2: 10% discounts to all products in spring season.

(In spring season both discount cases need to be apply)

Solutions:

Case 1 Buy one Item 000004 and get item 000016 free

Step 1: Go to Retail > Common > pricing and discounts

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Step 2 Create New Discount

Step 3: In price/ Discount Tab go to Line Spec

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Step 4: In lines; I have selected the item 000004 with 0.00% Discount and for item 000016 I have mentioned 100% discount as this item is going to be free with the item 000004 ( this will be apply through out the year)

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But problem occurs when the we have spring discount (CASE 2) also Applying In item 000004 and 000016 so what I did is; in item 000004 I have mention discount 10% in lines, if I don’t mention 10% discount over here then Case 2 will be not apply for 10% discount on item 000004 while 000016 Item has been taken at 100% discount as it is going to be free with 000004 item

 

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Step 6 : Change the Status

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CASE 2: Get 10% discount on all products in Spring Season

Step1: Go to Retail > Common > pricing and discounts > Discounts

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Step 2: Create New Discount

Step 3: Select Retail Price Group and in Concurrency select Compounded from Top Down list

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Step 3: Select Discount 10%

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Step 4: Select Validation period

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Step 5: In lines select products which you want to apply 10% discount

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Step 6: Change the Status

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Now run the discount JOB and Check POS Applying both discounts in spring season

 


Using button grids to customize POS behavior

Screen Layouts in Microsoft Dynamics AX for Retail POS help to define the visual appearance of the till. One element of screen layouts is the ability to setup button grids. Button grids help to define both the functionality and visual appearance of buttons used to perform different actions at POS, as well as control the flow of actions. For example, you can setup multiple button grids to appear at POS, and/or define sub-menus that appear on clicking a POS button. Multiple layers of sub-menus can also be setup.

Without divulging in the details of how to setup button grids and button specific actions, which can be further read here; let’s see how button grids can be used to complete a business process.

For example, in case of a restaurant business, “Order Taking” is one of most basic and frequent business processes. As this involves a number of steps, a guided order taking menu helps to facilitate POS user or waiter to ensure completeness of the order and avoid missing any step, especially in case of new users which is a common occurrence in service industry due to frequent employee turnover.

Below screenshots demonstrate how this process typically works

User logs into POS, where user is presented a number of menu options. The options shown are part of a button grid, where each button covers a specific function. Amongst these, a “Place Order” button has been custom created.

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Clicking the “Place Order” button takes user to a sub-menu of further buttons.

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In order to place the order, user will select items from “Main Course”, “Toppings” and “Drink”.

User selects “Main Course” and is presented a list of items or meals.

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Selecting “Pizza” (which has been setup as a Master Product having multiple SKUs) gives user a number of options between ‘Flavor’ and ‘Size’.

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User is also prompted to confirm the type of crust, setup as a reason code against the particular meal (pizza).

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This adds the meal to the electronic journal and displays the current transaction totals.

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Similarly, user can select “Toppings” from a list.

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In this way, user can complete the order and add more items as required.

The printed receipt with entire information captured can be passed on to Kitchen Staff for meal preparation, ensuring there is no miscommunication in the order placed.

Now let’s see how the menu options and step-by-step order-taking guidance was setup, using Button Grids.

First let’s setup the sub-menu options that will be displayed when user selects “Place Order” button. To do this, create a new button grid titled “Order Taking” as shown below.

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Once setup, click on ‘Designer’ button in the toolbar. This opens up the design form for the Button Grid. Click on ‘New design’ and define the number of rows and columns (in our case we need a 2 x 2 grid).

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Click ‘OK’ and this generates the grid of buttons.

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Right click on any button to define the properties of that button

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This opens the ‘Configure Button’ form. The ‘Action’ combo contains a list of actions that will invoke when button is clicked on POS.

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Select the appropriate action required and also fill in remaining fields for defining the visual attributes of the button.

In this particular illustration, for the “Main Course” button, we want user to be presented with a list of meals along with feature to search the list. For this purpose, set ‘Action’ field to “Search”, ‘Search type’ field to “Category”, and select the specific retail hierarchy from the list. Once done, drill down to the category level for which a list of products items/meals (products) should be displayed. In this case, the category “Main Course” has been selected.

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Click “OK” to complete the changes. Similarly, define button properties for other buttons.

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Now we need to link the button grid so that it appears as a sub-menu when “Place Order” button is clicked.

Go back to Button Grid form and select the existing button grid “Manager Tasks” and click on ‘Designer’.

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In Designer form, right click on “Place Order” button to modify the button properties.

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In the ‘Action’ field, select “Sub menu”. This will populate a list of options in ‘Menu’ combo. Since we want our custom button grid to appear as a sub-menu on clicking “Place Order” button at POS, select “Order Taking” option in the combo. (This is also why we setup the “Order Taking” button grid before modifying the “Manager Tasks” grid)

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Similarly repeat these steps by setting up button grids as sub-menus for “Toppings” and “Drink”. Run “A-1090” (Registers) job to view changes to POS. Make sure to restart POS for the changes to take effect.

In this way, we can see how button grids can be used to achieve a business process for ordering taking for a restaurant retailer. Buttons grids, along with overall Profile maintenance, can be used to customize the layout and functionality of POS specific to the retailer’s need, which shows just why Microsoft Dynamics AX 2012 is a perfect choice for implementing your retail solution.