project types AX 2012

project types that you can create in Project management and accounting. The primary difference among these project types, apart from their different purposes, lies in how they are set up for costs and revenue recognition.
The project type that you choose depends on the purpose of the project. The following table describes the typical use of each project type.

Project type

Time and material

In Time and material projects, the customer is billed for all costs that are incurred on a project. These include costs for hours, expenses, items, and fees.

Fixed-price

The invoices in fixed-price projects consist of on-account transactions. These projects are invoiced according to a billing schedule that is based on a project contract. Revenue for a fixed-price project can be calculated and posted throughout the project by using the completed percentage method, or when the project is finished, by using the completed contract method. Companies can often benefit from using the value of the work in process (WIP) to calculate the degree of completion of a project or group of projects.

Investment

Investment projects are projects that do not produce immediate earnings. They are typically used for long-term internal projects in which the costs have to be capitalized. The following are also true of investment projects:
Only costs for items, hours, and expenses can be recorded for an investment project.
Costs in an investment project are tracked and controlled by using the Project management and accounting Estimate feature.
Investment projects can be set up with an optional maximum capitalization limit.
As an investment project progresses, you record its costs in WIP accounts, where the costs are held until the project is completed. When the project is eliminated, you transfer the WIP value to a fixed asset, a ledger account, or a new project.
NoteNote
Transactions on investment projects are not reflected in the Post costs form, Accrue revenue form, or Create invoice proposals form.

Cost project

Like Investment projects, Cost projects are typically used to track internal projects, and only hours, expenses, and items can be recorded for costs projects. Cost projects are usually of shorter duration than investment projects. Unlike Investment projects, Cost projects cannot be capitalized to balance sheet accounts. Instead, their project transactions are posted only to profit and loss accounts.
NoteNote
Transactions on cost projects are not reflected in the Post costs form, Accrue revenue form, or Create invoice proposals form.
Because Cost projects are typically used to track internal projects, they do not ordinarily have to be associated with a customer account. However, if your setup requires that item requirements be created for purchase orders, you do have to associate the Cost project with a customer. This is because item requirements are managed as sales order lines, and the system requires that a customer be specified. However, this setup will not result in item requirements being created automatically from a purchase order. For Cost projects, the Create item requirement setting is ignored.
If you do need an item requirement in a Cost project, you can create one manually, so long as a customer is associated with the project. You can select the Create item requirement option in the General area in the Project management and accounting parameters form.

Internal

Internal projects are used to track costs on a project that is internal to your organization. This type of project can provide a planning tool to manage resource consumption.
NoteNote
Transactions on internal projects are not reflected in the Accrue revenue form or Create invoice proposals form.

Time project

Time projects are used to track time that is associated with non-chargeable and non-productive activities, such as a project to track sick time for workers. Transactions in Time projects are not posted to the ledger. Instead, they are included in worker utilization reports.
Only hour transactions can be recorded in Time projects. You use an hour journal or timesheet to register these hours to the project. After the hours are registered, they appear as project transactions, but without a corresponding voucher transaction.
NoteNote
Transactions on time projects are not reflected in the Post costs form, Accrue revenue form, or Create invoice proposals form.
See also

Project management and accounting

use Project management and accounting to plan, create, manage, control and complete projects for your organization. Customer-focused projects can be set up on a time and materials or fixed-price basis. You can also use the module to manage costs for internal and investment projects.

You can create project quotations that can be converted to projects. You create project contracts with one or more funding sources that will be invoiced for project costs and fees. Funding sources can include customers, internal organizations, and grants. A project contract can have one or more projects assigned to it. Each project that you create can have one or more subprojects and activities that comprise the project work structure.

For flexible project planning, you can integrate the project management and accounting module with Microsoft Project Server.

You can create and monitor project budgets for cost control. Employees and contractors can enter project time sheets and expense reports to record project-related time and expenses.

You can create service industry-focused projects that consist primarily of worker services by drawing on features such as contract management, quotations, budgeting, project policies, project parameters, and categories.

You can assign attributes for project skills and experience to workers. You can also search for and assign workers to a project based on worker skills and availability, or based on the requirements for a project.

You can assign indirect costs, define the calculations for indirect cost amounts, and allocate indirect costs to a project. Indirect costs are calculated based on worker hours that are added to a project.

You can record invoiced amounts that are retained by a customer until the progress on a project reaches an agreed-upon stage. You can also retain a percentage of vendor invoices until you confirm the quality of work by a vendor who is a subcontractor on a project, or until you receive payment from a customer or other funding source.

You can set up billing rules that track progress on a project, and define when and how to calculate customer invoice amounts for advances, project milestones, completed units, amounts retained by customers, and administrative fees.

Project managers can view reports that provide project details and analyze project financials from a variety of perspectives.

Business processes

Introduction to Microsoft Dynamics AX Project Management and Accounting Add-in.

The Project Management and Accounting Add-in integrates with Project management and accounting and Human resources, so that you can manage projects that consist primarily of worker services. You can use the features for project management and accounting, such as contract management, quotations, budgeting, project policies, and project parameters and categories, together with the Project Management and Accounting Add-in.

Use the Project Management and Accounting Add-in to identify and schedule workers who have specific project experience, and to manage direct and indirect costs for service projects. You can also use the Project Management and Accounting Add-in to invoice customers for billing scenarios that are specific to the service industry, and to manage payments to vendors who are subcontractors on your projects.

Key Features

The Project Management and Accounting Add-in includes the following features:

• Other worker attributes – Assign attributes for project skills and experience to a worker. For more information, .
• Resource-based scheduling – Search for workers, and assign workers to projects when worker skills and availability match the requirements and schedules of the projects. For more information
• Project-based scheduling – Search for workers, and assign workers to projects, based on the requirements of the projects. For more information, .
• Resource-assignment analysis – View analyses of project activities by worker, by department, and by project. For more information.
• Indirect cost components – Identify indirect costs, define calculations for indirect cost amounts, and allocate indirect costs to a project. For more information.
• Define billing rules to calculate customer invoice amounts in the following scenarios:
  • Customer advance – Create a customer invoice before a project starts. For more information, see .
  • Project milestone – Create a customer invoice when a project activity is completed.
  • Per unit – Create a customer invoice when a specific unit of the project is delivered.
  • Customer retention – Create a customer invoice, but withhold part of the invoice amount until the project is completed.
  • Administrative fee – Create a customer invoice, and add an administrative fee that you and the customer have agreed on.
  • Customer payment retention release – Create a customer invoice when amounts that were retained by a customer are released by the customer. For more information, 
• Vendor payment retention – Retain part of a payment to a vendor. For example, you can retain a percentage of vendor invoices until you confirm the quality of the work that the vendor performed on a project. For more information about vendor payment retention,
• Pay when paid – Schedule payments to vendors when you receive payments from customers for projects. For more information about pay-when-paid projects, 

Before you begin to work in the Project Management and Accounting Add-in, set up parameters for project management and accounting. 

Use of Currency Converter Form in Ax 2012.

There are scenarios when a company wants to track its financial information in currency other than the company accounting currency. Currency converter setup helps to achieve this requirement. This setup allows user to setup numeric conversion for online transactions. If the Conversion check box is selected, the system will automatically convert transaction amounts in grids using the exchange rates in the lower pane. To setup currency converter, refer the following form;

General Ledger -> Setup -> Currency -> Currencies

This setup allows users to track its financial information other than its accounting company currency in forms and reports. This conversion is completed by double-clicking the Currency converter in the Status bar in these forms.

Enter the date used for the conversion in the Date of rate field, eg. 22-01-2013.Then, click a currency to select the new currency. The Currency converter form will automatically close and the Currency field on the status bar displays the new currency.

But remember that exchange rates for the two currencies for the specified date or date range must exist in the system. All the forms, inquiries, and reports that originally displayed amounts in the accounting currency now display the currency selected.

If you want to reset the currency to its default accounting currency, then open the Currency converter form. Click the Reset button to return to the ledger accounting currency.

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Budget Register Entry Upload (Excel Add-in) for Microsoft Dynamics AX

NOTE – This guide is to add Budget Register Entry lines within a previously created Budget Register Entry header utilizing the native Dynamics AX Excel Add-in.

1. Open Microsoft Excel
2. Go to Dynamics AX tab > Options
3. Choose correct login information under ‘Connection’ and click ‘Connect’
4. Select Legal Entity and Default Account Structure under ‘Data’

5. Click ‘OK’
6. Click Add Data > Add Tables

7. Type into the Filter box ‘BudgetTransactionLine’ > select the proper table > click the ‘>’ button, and click ‘OK’ to begin choosing fields to import

8. Click and drag fields on the left-hand pane and pull them to the spreadsheet to include in the table. The minimum fields required to process an import are as follows.
   • Budget register entries.Entry number – the Budget Register Entry number that needs lines imported to
   • Budget register entries.Ledger name – the acronym of the Legal Entity within which the Budget Register Entry exists
   • Currency
   • Date – date for the individual budget line
   • Line number – if starting with a new Budget Register Entry, sequential numbering starting at 1 (i.e. 1, 2, 3, …, 150)
   • LedgerDimension. MainAccount – Main Account number
   • Any Financial Dimensions that are required within the earlier specified Account Structure
   • Transaction currency amount
   • Amount type – Revenue or Expense (field is also a drop-down)

9. Once all fields have been properly moved to the spreadsheet, click ‘Fields’ to close the fields pane

10. Fill out the table as needed (as lines are input below the table, they should include formatting from the table – every other row fills automatically with a blue color)

11. Once all data has been filled in correctly, Dimensions can be validated by clicking Validate Dimensions > Validate Dimensions (all rows) OR Validate Dimensions (selected row)
    • All rows will validate the entire table
    • Selected row will validate the selected row(s)

12. Once validation is complete, click Publish > Publish All OR Publish Selected
    • Publish All publishes entire table
    • Publish Selected only publishes selected line(s)
13. Once the update has been run, a new tab will be created which displays the publishing status

14. Go into Microsoft Dynamics AX > Budgeting > Common > Budget register entries > All budget register entries
15. Open the Budget Register Entry that was mentioned in the upload template
16. Validate that all of the fields transferred correctly

Basics of Journal Entries

Example 1:  Financing Activities

Owner invested $10,000 in the company.    Analysis of Transaction Steps Debit or Credit ? 1 Increase in Assets (Cash) by $10,000 Debit 2 Increase in Owner's Equity by $10,000 Credit    Journal Entry Debit Credit Cash 10,000 Owner's Equity 10,000    Description of Journal Entry Owner invested $10,000 in the company.    Results of Journal Entry Cash balance increases by $10,000.  --> Increase in Assets Owner's Equity balance increases by $10,000.  -->  Increase in Owner's Equity

Example 2:  Financing Activities

The company borrowed $20,000 from a bank.    Analysis of Transaction Steps Debit or Credit ? 1 Increase in Assets (Cash) by $20,000 Debit 2 Increase in Liabilities (Borrowings) by $20,000 Credit    Journal Entry Debit Credit Cash 20,000  Borrowings 20,000    Description of Journal Entry Borrowed $20,000.    Results of Journal Entry Cash balance increases by $20,000.  --> Increase in Assets Borrowings balance increases by $10,000.  -->  Increase in Liabilities

Example 3:  Investing Activities
The company purchased $12,000 equipment and paid in cash.    Analysis of Transaction Steps Debit or Credit ? 1 Increase in Assets (Equipment) by $12,000 Debit 2 Decrease in Assets (Cash) by $12,000 Credit    Journal Entry Debit Credit Equipment 12,000  Cash 12,000    Description of Journal Entry Purchased $12,000 equipment in cash.    Results of Journal Entry Equipment balance increases by $12,000.  --> Increase in Assets Cash balance decreases by $12,000.  -->  Decrease in Assets

Example 4:  Operating Activities

The company purchased $6,000 merchandise (600 units) on credit.    Analysis of Transaction Steps Debit or Credit ? 1 Increase in Assets (Merchandise) by $6,000 Debit 2 Increase in Liabilities (Accounts Payable) by $6,000 Credit    Journal Entry Debit Credit Merchandise 6,000  Accounts Payable 6,000    Description of Journal Entry Purchased $6,000 merchandise on credit.    Results of Journal Entry Merchandise balance increases by $6,000.  --> Increase in Assets Accounts Payable balance increases by $6,000.  -->  Increase in Liabilities

Example 5:  Operating Activities

The company sold 500 units of merchandise at the price of $11,000.  Customer paid $9,000 in cash at the time of sale.    Analysis of Transaction    Note:  This transaction includes both "REVENUE" and "EXPENSE" components.    (1) REVENUE side Steps Debit or Credit ? 1 Increase in Assets (Cash) by $9,000 Debit 2 Increase in Assets (Accounts Receivable) by $2,000 Debit 3 Increase in Revenue (Sales) by $11,000 Credit    (2) EXPENSE side Steps Debit or Credit ? 1 Increase in Expenses (Cost of Merchandise Sold) by $5,000 ($6,000 / 600 units = $10 per unit) ($10 per unit X 500 units sold = $5,000 cost) Debit 2 Decrease in Assets (Merchandise) by $5,000 Debit    (1) REVENUE Journal Entry Debit Credit Cash 9,000 Accounts Receivable 9,000 Sales Revenue 11,000    Description of Journal Entry Sold merchandise at $11,000 price and received $9,000 in cash.    Results of Journal Entry Cash balance increases by $9,000.  --> Increase in Assets Accounts Receivable balance increases by $2,000.  --> Increase in Assets Sales Revenue account balance increases by $11,000.  -->  Increase in Revenue

(2) EXPENSE Journal Entry Debit Credit Cost of Merchandise Sold 5,000 Merchandise 5,000    Description of Journal Entry To record the cost of merchandise sold.    Results of Journal Entry Merchandise balance decreases by $5,000. --> Decrease in Assets Cost of Merchandise Sold account balance increases by $5,000. --> Increase in Expense

Example 6:  Operating Activities

The company paid $3,500 salaries.    Analysis of Transaction Steps Debit or Credit ? 1 Increase in Expenses (Salaries Expense) by $3,500 Debit 2 Decrease in Assets (Cash) by $3,500 Credit    Journal Entry Debit Credit Salaries Expense 3,500  Cash 3,500    Description of Journal Entry Paid $3,500 salaries.

Example 7:  Operating Activities

The company paid $1,500 rent.    Analysis of Transaction Steps Debit or Credit ? 1 Increase in Expenses (Rent Expense) by $1,500 Debit 2 Decrease in Assets (Cash) by $1,500 Credit    Journal Entry Debit Credit Rent Expense 1,500  Cash 1,500    Description of Journal Entry Paid $1,500 rent.

summary of Transactions from  Above transactions

No. Date   Transactions (1) May 1   Owner invested $20,000 in the company. (2) May 3   Borrowed $10,000 from a bank. (3) May 6   Purchased $15,000 equipment in cash. (4) May 8   Purchased $9,000 merchandise (900 units) on credit. (5) May 15   Sold 500 units of merchandise at the price of $11,000.      Customer paid $8,000 in cash at the time of sale. (6) May 25   Paid $2,500 salaries. (7) May 26   Paid $1,500 rent.

Summary of Journal Entries from Above transactions

No.	Journal Entries		Debit	Credit
(1)	Cash		10,000
(1)		Owner's Equity		10,000
	Owner invested $10,000 in the company.
(2)	Cash		20,000
(2)		Borrowings		20,000
	Borrowed $20,000.
(3)	Equipment		12,000
(3)		Cash		12,000
	Purchased $12,000 equipment in cash.
(4)	Merchandise		6,000
(4)		Accounts Payable		6,000
	Purchased $6,000 merchandise on credit.
(5)-1	Cash		9,000
(5)-1	Accounts Receivable		2,000
(5)-1		Sales		11,000
	Sold merchandise at $11,000 price and received $9,000 in cash.
(5)-2	Cost of Goods Sold		5,000
(5)-2		Merchandise		5,000
	To record the cost of goods sold ($5,000 merchandise).
(6)	Salaries Expense		2,500
(6)		Cash		3,500
	Paid $2,500 salaries.
(7)	Rent Expense		1,500
(7)		Cash		1,500
	Paid $1,500 rent.

Calculating Accounting Balances

Cash Debit Credit (1) 10,000 (3) 12,000 (2) 20,000 (6) 2,500 (5)-1 9,000 (7) 1,500       Balance 23,000 Accounts Receivable Debit Credit (5)-1 2,000          Balance 2,000 Merchandise Debit Credit (4) 6,000 (5)-2 5,000 Balance 1,000 Equipment Debit Credit (3) 12,000       Balance 12,000 Accounts Payable Debit Credit  (4) 6,000               Balance  6,000 Sales Debit Credit        (5)-1 11,000                 Balance  11,000          Cost of Goods Sold Debit Credit (5)-2 5,000         Balance 5,000           Salaries Expense Debit Credit (6) 2,500          Balance 2,500 Rent Expense Debit Credit (7) 1,500          Balance 1,500

Balance Sheet and Income Statement

Balance Sheet As of May 31, 20XX Assets Liabilities and Owner's Equity Cash $ 23,000 Accounts Payable  $  6,000 Accounts Receivable  2,000 Borrowings   20,000 Merchandise 1,000 Equipment  12,000 Owner's Equity 12,000  (*1)      Total Assets $ 38,000 Total Liabilities and Owner's Equity  $ 38,000 Income Statement For the Period from May 1 to May 31, 20XX Revenue       Sales $ 11,000 Total Revenue $ 11,000 Expenses       Cost of Goods Sold $ 5,000       Salaries Expense 2,500       Rent Expense 1,500 Total Expenses 9,000   Net Income $ 2,000  (*2) (*1) Owner's Equity=Investment by Owner+Net Income=$10,000+$2,000=$12,000 (*2)  Net Income = Total Revenue - Total Expenses = $11,000 - $9,000 = $2,000