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.

Inventory Kits for Dynamics AX

Dynamics AX has a very strong Bill of Materials component. BOMs can be semi-finished items or finished items. You create the items in a BOM in the inventory table with an item number. An item number that is to be produced in the production module must be created as a BOM. BOMs can also be used with sets of products, such as a garden furniture set, consisting of a table and four chairs. The furniture set is the BOM, and the table and chairs are the individual item numbers. The advantage of creating product sets as BOMs is that the parts can be selected both individually and as a set. Bill of Materials requires the use of the production process so the finished good is available in stock for fulfillment on the sales order. This does not always work well, especially for items that can easily be combined on a sale, like the garden furniture set or a living room set.

Advanced Distribution for Microsoft Dynamics AX provides an easy solution.
Kit Management
A kit has a Bill of Material structure, but the sales order line is for the kit, the components are stocked and collected during picking in order to deliver the kit.
Only the kit item is displayed on the order. Reservation and Available to Promise are done at the component level.
It is possible to indicate whether the components are printed on forms (confirmation, packing slip, and invoice).
Unlike the production BOM, the kit is not subject to a manufacturing process, but rather is the result of a stock preparation with a BOM journal issuing the components and entering temporarily the kit in stock before shipment.
A kit item with graphical display of its component items is attached.

To setup a kit data has been added to the Item record in order to identify KIT items. In addition, there is an option to print component parts on the three documents (ARC, delivery note, and invoice).

• Print the kit components for the confirmation document: When printing the order confirmation, the kit items will be printed.
• Print the kit components for the delivery note: When printing the delivery note, the kit items will be printed.
• Print the kit components for the invoice: When printing the invoice, the kit items will be printed.

To learn more about Advanced Distribution for Dynamics AX please contact Collins Computing at sales@collinscomputing.com.
 

Microsoft Convergence – Early Bird

Early Bird Registration Ends March 3rd!

You're still eligible for the early-registration discount! Just register before March 3rd, 2010, and you can take advantage of a $300 per person savings off the regular registration fee!

Microsoft's "Special Group Rate" hotel rooms are going fast - book early!

New Sessions Added to the Session Catalog!

Attend Convergence 2010 Atlanta & receive 20% discount on additional modules, additional users, & transition to BRL. Offer Details

Advanced Distribution for Dynamics AX

Dynamics AX is known for its features and benefits in the manufacturing and distribution industries, but as with any software there is always room for improvement. Recently I have had the opportunity to start working with Advanced Distribution for Dynamics AX www.advanceddistributionsoftware.com and I am excited about the new capability that is available on top of the strong foundation of Dynamics AX.

This is an end-to-end solution for Distributors and Retailers and it comprehensively addresses:

• Warehousing, Procurement, and Supply Chain Management
  
• Fulfillment & Shipping, including Cross-Docking
  
• Point-of-Sale Integration, Automated Re-Stocking, and Vendor Managed Inventory
  
• Detailed Demand Trending, Analysis and Sales Forecasting
  
• Mobile Sales Force Support
  
• Contact Center & Ongoing Customer Management Support
  
• Special Promotions and Discounts
  
• Marketing & New Customer Acquisition
  
• Financial Risk Management
  
• eCommerce and EDI Integration
  

Advanced Distribution for Dynamics AX is available in the United States through Advanced Distribution Partners. Take a look at their website to learn more about how you can benefit from the expanded features.