Rebates and Royalties in Dynamics AX

Rebates and royalties are common business issues for many distribution companies.  A rebate is the return of a portion of a purchase price by a seller to a buyer, usually on purchase of a specified quantity, or value, of goods within a specified period.  Unlike a discount (which is deducted in advance of payment), rebates are given after the payment of the full invoice amount.  While Royalty is compensation, consideration, or fee paid for a license or privilege to use intellectual property, or a natural resource, computed usually as a percentage of revenue or profit realized from the use.

Standard Dynamics AX does not handle rebates and royalties very well.  Some companies use custom reporting to gather the information, but it there are limitations.  In addition, if rebates or royalties change, the users must change the reports.  With Dynamic CPG for Dynamics AX, companies can track both rebates and royalties directly inside of Dynamics AX.

Rebates and royalties can be tracked by customer/vendor/item groups, or by specific customer/vendor/item. 

There are also multiple calculation methods.  The methods include Stepped, Cumulative, Rolling and Total.  This gives a distributor the flexibility they need to properly calculate their rebates and royalties.



These calculations are tracked directly inside of Dynamics AX, and users can inquire on them as needed. 

Finally, the rebates and royalties can post to the appropriate customer or vendor for complete tracking of the transaction.

For additional information on Dynamic CPG for Dynamics AX, please contact Collins Computing at sales@collinscomputing.com.

Dynamics AX Fill Utility - AX 2012

A great tool for updating data in Dynamics AX is the Fill Utility.  It allows users to update a field based upon a select or query within Dynamics AX.  However, it does not work with every field in the system, and it will not work at all unless it is activated.

With changes the menu structure and area pages, the option to turn on the fill utility has moved in Dynamics AX 2012.  In order to activate the fill utility, select System Administration - Setup - Licensing - License Configuration.  In the License configuration form, expand the Administration node and check the box next to Fill utility.  Then select Apply and the system will synchronize the appropriate tables.

Once the fill utility is activated, users with proper security roles will be able to perform mass updates in the system.

Is it starting to get cloudy?

As we begin to approach winter, it is common to hear the weatherman say it will be cloudy.  That may bring thoughts of cold and gloomy days.  We always prefer the weatherman to tell us it will be sunny.  However, the mention of the cloud relating to computer systems should not bring about thoughts of cold and gloomy days.

Being involved in presales, I meet with many companies that are looking for ways to improve their company and recover from the cold and gloomy days of the economy.  Many of these companies have limited cash and resources, so the idea of implementing and deploying an on-premise ERP system is not something they can tackle.  This is where a "cloudy" environment might help.

By implementing an ERP system in the cloud, companies can minimize their initial investment, which may lead to a shorter payback period and higher ROI.

Cloud ERP systems allow companies to:

·         Minimize the initial investment by avoiding upfront hardware and software purchases.

·         Get up and running quickly by using faster deployment options.

·         Manage company cash flow by providing low, predictable costs that scale with actual use of the solution.

·         Scale the solution as needed, since many cloud providers will adjust user counts and modules as needs change.

·         Free up internal IT staff for tasks that provide more value to the company.

·         Offer remote access, so employees can work from wherever they have internet access.

In addition, many cloud providers offer companies the opportunity to try the solution before they purchase.  This also lets users understand the solution and see it work with their data before the commit.

While Microsoft does not currently offer Dynamics ERP solutions directly in the cloud, many partners have a solution.  At Collins, we offer Dynamics GP, Dynamics AX and Dynamics CRM in the cloud, and we offer a 30-day trial option.  To learn more, check out http://collinscomputing.com/cloud-solutions_online.html.

                                                                                                    

Strategic Pricing

One of the key factors many distribution companies deal with is pricing. If you set the price too high, sales will be lost, but if you set it too low, you leave money on the table. What is the right price, and how do you make that determination? There are many different options, including pricing by markup, by margin, set price and many more. It can all be very confusing.



On November 10, 2010 at 2:00pm EST, you can hear Brent Grover share a 10 questions checklist to see if your business has optimized margins. He will also discuss an analysis of pricing and profit opportunities you can experience through streamlining your pricing process.


Click here to register

For additional information you can also contact Collins Computing.

Project Accounting

As someone who has worked with Dynamics GP Project Accounting since Great Plains originally acquired it in 1999, I have dealt with many issues, but I have to say I am comfortable with the software. Therefore, when a prospect asked me to look at Dynamics AX Project Accounting I was hesitant. However, I knew Dynamics GP Project Accounting was not good fit for them, so if I wanted to win the business maybe Dynamics AX would be the answer.

As I started looking through the features and benefits, I was certainly impressed. There are many differences between Dynamics GP Project Accounting and Dynamics AX Project Accounting, but I would like to point out three of the top one that immediately caught my attention.

1. You can use every transaction type with Project Accounting. Therefore, if you need to post a journal entry or sales order to a project, you do it the same way as you do for a non-project transaction. This makes it easier to learn and more consistent for your business processes. In addition, this makes for more consistent reporting.
   
2. In Dynamics GP there are only three project types (Fixed price, Time and Materials and Cost Plus), but Dynamics AX has seven project types. The project types are Time and material, Fixed-price, Internal, Cost, Time, Investment, and Summary. The Cost, Time and Investment project types are for internal projects. Dynamics GP does not handle this area well.
   
   1. Time projects gather hours without ledger postings. For example, use this for registering holiday hours.
      
   2. Cost projects post all cost expenses and items to a profit and loss account that you will not capitalize.
      
   3. Investment project uses an estimate system to capitalize the costs of hours, expenses and items during the project. On a monthly basis, you move all costs to work-in-progress accounts. On elimination, you can post the WIP value to a fixed asset, ledger account or new project.
      
3. Dynamics AX includes the functionality to help manage the project be scheduling employees and resources for the project. You can do scheduling by using a wizard inside of Dynamics AX or by integrating with Microsoft Office Project Server. This allows Project Accounting to move beyond simply accounting for the project and move toward truly managing the project.
   

These are just three of the top differences I immediately noticed when I first looked at Dynamics AX Project Accounting. There are many other differences or additional features including flexible workflow, web based time and expense entry and web based project management tools.

If your company does project type work, either for customers or internally then Dynamics AX Project Accounting may be the solution for you.

Classifying your inventory

Classifying your inventory using Advanced Distribution for Dynamics AX



Most distribution companies carry different types of inventory items. For example, an electronics distributor may carry televisions, computers, radios, speakers and miscellaneous parts. In working with the inventory items, it may be important to find the items based on these categories. There also may be multiple levels of classifications, for example:


Main Classification = Video
Video Type = Television
Screen Type = LCD
Accessories = Includes DVD
Energy = Energy Star Compliant
HDMI Compliant = YES


Item classification in Advanced Distribution for Dynamics AX it is possible to categorize items into as many as SIX hierarchical levels. The main related functions are:


• Search and select items in all multi-criteria searches (for example, during order-taking)


• Define price conditions (discounts, charges) at any classification level (ex: discount for a sub-family)


• Statistical analyses




The item classifications build upon each other, so level 6 is based on level 5, level 5 is based on level 4 and so on.

The item classification from any level can then be used to set pricing discounts. This allows you to discount multiple items because they simply share an item classification code.


You can also use Item Classifications in order taking (item search via the item classification screen)


Item classification is one example of the many features Advanced Distribution for Dynamics AX brings to distribution companies. If you would like to learn more, you can contact your nearest Advanced Distribution Partner.

See Advanced Distribution for AX at Convergence

Advanced Distribution Partners are a Silver Sponsor at Convergence in Atlanta, GA. We will be in booth #607 and we look forward to showing you the latest in distribution software. Whether you need to handle kits, have special customer service or pricing needs, we have the solution for you. We look forward to seeing you.