Bill of exchange: accounting schema

This articles describes the accounting schemas of the bill of exchange flow in Dynamcis AX 2012. You can refer to other articles to have details about the setup or the functionality.

1/ Draw BOE

• Debit: Summary account from the customer posting profile link to the “Bill of exchange” in AR parameters (413000).
• Credit: Summary account from the customer posting profile selected in the invoice (411000).

• AR parameters:

2/ Remittance

• Option A: Remit for collection
  • Debit: Summary account from the customer posting profile link to the “Remit for collection” in AR parameters (511300).
  • Credit: Summary account from the customer posting profile link to the “Bill of exchange” in AR parameters (413000).
• Option B: Remit for discount
  • Debit: Summary account from the customer posting profile link to the “Remit for discount” in AR parameters (511400).
  • Credit: Summary account from the customer posting profile link to the “Bill of exchange” in AR parameters (413000).

3/ Payment

• Debit: Main account from the bank (512020)
• Credit: Summary account from the customer posting profile used in the remittance journal (511300 or 511400).

4/ Unpaid BOE

• Debit: Summary account from the customer posting profile link to the “Prostest bill of exchange” in AR parameters (416000).
• Credit: Account from used in the draw BOE journals (413000).

5/ Redraw BOE

The accounting from unpaid BOA is reversed:

• Debit: Account from used in the draw BOE journals (413000).
• Credit: Summary account from the customer posting profile link to the “Prostest bill of exchange” in AR parameters (416000).

Bill of exchange: unpaid

This article describes how to use the BOE journals in Dynamics AX 2012,in the case of an unapaid BOE:

• Step 1: Create the BOE with the “Draw BOE journals”.
• Step 2: Remit the BOE to the bank with the “Remittance journal”.
• Step 3: Enter the unpaid BOE in a “Protest journal”.

BOE unpaid schema:

1/ Step 1: Draw BOE

Access: AR > Journals > Bill of exchange > Draw bill of exchange journal

This step can be done automatically if the option is selected in the method of payment. In the other case, you must create manually the journal. To see the manual option, go to the “Bill of exchange transaction” article.

• In the customer invoice, select the method of payment (Automatic BOE).
• When you post the invoice, AX create the payment journal.

• Draw bill of exchange journal

2/ Step 2: Bank remittance

Access: AR > Journal > BOE > Remittance journal

• Create a new journal.
• Go to the tab “BOE”  and select the bank account.
• Select the option of the remittance : remit for collection or remit for discount.

• Go to the lines
• Enter the customer account and go to “functions > Settlement” and select the BOE to remit.
• Click on Function > Generate remittance to create the file to send to the bank.
• Post the journal.

3/ Step 3: Protest Bill of exchange

Access: AR > Journal > BOE > Protest journal

This step is to be done when the bank send the unpaid notification of the payment.

• Create a new journal.
• Go to the lines form.
• Enter the customer account.
• Click Function > Settlement and select the BOE unpaid.

• In the the tab “Bill of exchange” select the protest cause “not paid”.
• Post the journal.

4/ Protest a BOE already paid

Access: AR > Journal > BOE > Protest journal

• Create a new journal.
• In the tab “Bill of exchange” select “Protest settlement”

• Go to the lines form.
• Enter the customer account.
• Click Function > Select settled bills of exchange

• All the BOE honored are available.
• Select the BOE to prostest.

• In the the tab “Bill of exchange” select the protest cause “not paid”.
• Post the journal.

Bill of exchange: not accepted

This article describes how to use the BOE journals in Dynamics AX 2012, when a customer does not approve a BOE :

• Step 1: Create the BOE with the “Draw BOE journals” and sent the file.
• Step 2: Customer didn’t approve the BOE : create a Protest journal.

1/ Step 1: Create a bill of exchange

Access: AR > Journals > Bill of exchange > Draw bill of exchange journal

• Create a new journal.
• Go to the line form.
• Select the customer account.
• Click on “Function > Settlement”.
• Select invoice to pay with the BOE.

• When you close the “Settle open transaction” form, the journal is automatically filled with the invoice informations.
• Generate the file to send to the customer : click on “Function > Generate payment”.

• Select options in the Generate payment form: methods of payment, bank…
• The file is created and the status of the payment is change to “sent”.
• Post the journal

1/ Step 2: Protest bill of exchange journal

Access: AR > Journals > Bill of exchange > Protest bill of exchange journal

This step is to be done when the customer did not accept the BOE.

• Create a new journal.
• Go to the line form.
• Select the customer account.
• Click on “Function > Settlement”.

• Select the BOE not accepted

• In the tab “Bill of exchange” select the protest cause.
• Post the journal.

• In the bill of exchange journal form, you can check the status of the BOE (AR > Inquiries > Bill of exchange)

 

Bills of exchange: transaction with acceptance

This article describes how to use the BOE journals in Dynamics AX 2012, for the flow with a bill with acceptance :

• Step 1: Create the BOE with the “Draw BOE journals” and sent the file.
• Step 2: Customer approve the BOE.
• Step 3: Remit the BOE to the bank with the “Remittance journal”.
• Step 4: Settle the payment with the “Settle bill of exchange journal”.

Bill of exchange schema:

Before using the BOE journals, you need to do several setup. Go to the article “Setup bills of exchange” to have details about the prerequisites.

1/ Step 1: Create a bill of exchange

Access: AR > Journals > Bill of exchange > Draw bill of exchange journal

• Create a new journal.
• Go to the line form.
• Select the customer account.
• Click on “Function > Settlement”

• Select invoice to pay with the BOE

• When you close the “Settle open transaction” form, the journal is automatically filled with the invoice informations.

• Generate the file to send to the customer : click on “Function > Generate payment”

• Select options in the Generate payment form: methods of payment, bank.
• And select “show format dialog” and click “OK”
• The Format dialog form is open, you can select a number of blank BOE if necessary.
• The number in the field “From” is the first number to be used from the created BOE in the Bank modules.

• The file is created and the status of the payment is change to “sent”

• Post the journal.

2/ Step 2: Bill of exchange accepted

Access: AR > Journals > Bill of exchange > Draw bill of exchange journal

• Open the journal with the BOE.
• Go to the lines form.
• Click on “Payment status > Approved”.
• Enter the date of the bill approval.

• Go to the “Bill of exchange journal” form (AR > Inquiries > Bill of exchange).
• You can check the status of the BOE, when the BOE is approved, the date of approval is filled.

3/ Step 3: Bank remittance

Access: AR > Journal > BOE > Remittance journal

This step is to be done when the bill of exchange is presented to the bank.

• Create a new journal.
• Go to the tab “BOE”  and select the bank account.
• Select the option of the remittance : remit for collection or remit for discount.

• Go to the lines
• Enter the customer account and go to “functions > Settlement”.

• Click on Function > Generate remittance

• If you select “Show format dialog”, the form is open.

• The remittance is generated (export format depends of the method of payment setup)
• The Payment statuts changes to “sent”.
• If you have setup fees for this methods of payment, the fees are created.
• Post the journal

• You can check the status of the BOE in the Bill of exchange journal form

4/ Step 4: Bill of exchange settlement

Access: AR > Journals > Bill of exchange > Settle bill of exchange journal

This step is to be done when the bank send the confirmation of the payment.

• Create a new journal and go to the lines form.
• Use the proposal functionality : select all BOE with status remitted.
• Post the journal.

• You can check the status of the BOE in the Bill of exchange journal form: the BOE is honored.

Bills of exchange transactions

This article describes how to use the BOE journals in Dynamics AX 2012, for the regular flow :

• Step 1: Create the BOE with the “Draw BOE journals”.
• Step 2: Remit the BOE to the bank with the “Remittance journal”.
• Step 3: Settle the payment with the “Settle bill of exchange journal”.

Bill of exchange schema:

Before using the BOE journals, you need to do several setup. Go to the article “Setup bills of exchange” to have details about the prerequisites.

1/ Step 1: Create a bill of exchange

Access: AR > Journals > Bill of exchange > Draw bill of exchange journal

This step can be done automatically if the option is selected in the method of payment. In the other case, you must create manually the journal.

Option A: manual creation

• Create a new journal.
• Go to the line form.
• Select the customer account.
• Click on “Function > Settlement”

• Select invoice to pay with the BOE

• When you close the “Settle open transaction” form, the journal is automatically filled with the invoice informations.

• • Post the journal.
  • To check the accounting, click on Inquiries > Voucher.

Option B: Automatic creation

• Select the method of payment (Automatic BOE).
• When you post the invoice, AX create the payment journal.

• Draw bill of exchange journal

2/ Step 2: Bank remittance

Access: AR > Journal > BOE > Remittance journal

This step is to be done when the bill of exchange is presented to the bank.

• Create a new journal.
• Go to the tab “BOE”  and select the bank account.
• Select the option of the remittance : remit for collection or remit for discount.

• Go to the lines
• Option A: Enter the customer account and go to “functions > Settlement”.
• Option B: Use the proposal functionality (better if you have several BOE to remit).

• Click on Function > Generate remittance

• The remittance is generated (export format depends of the method of payment setup)
• The Payment statuts changes to “sent”.

• Post the journal

3/ Step 3: Bill of exchange settlement

Access: AR > Journals > Bill of exchange > Settle bill of exchange journal

This step is to be done when the bank send the confirmation of the payment.

• Create a new journal and go to the lines form.
• Use the proposal functionality : select all BOE with status remitted.

• Check and post the journal.

4/ Check BOE status

Access: AR > Inquiry > Bill of exchange>  Bill of exchange journal

• Go to this form to check the status of the bill of exchange.

Setup bills of exchange

This article describes the setup needed to use the bill of exchange functionality in Dynamics AX 2012. A bill of exchange is an electronic order from a customer specifying that another party, the bank, should pay a stated amount to the company. To use this functionality, you must:

• Create several specific journal name,
• Setup a customer posting profile for the BOE flow,
• Update AR parameters,
• Create a method of payment,
• Setup the layout in the bank account (if needed).

1/ Journal names

Access: GL > Setup > Journals > Journal names

journals names:

• BOE creation : type “Customer draw bill of exchange”
• BOE unpaid : type “Customer protest bill of exchange”
• BOE representation : type “Customer accept bill of exchange”
• BOE remittance : type “Customer bank remittance”
• BOE settlement : type “Customer settle bill of exchange”

2/ Customer posting profile

Access: AR > Setup > Customer posting profile

Setup specific posting profile for the BOE flow. For example, in french accounting we need this accounting schema:

Option A: remit for collection (payment on the due date)

• Step 1- Creation:  D/413 > C/411
• Step 2 – Acceptation : no accounting
• Step 3 – Remittance : D/5113 > C/413
• Step 4 – Payment : D/512 > C/5113

Option B: remit for discount (payment before the due date)

• Step 1- Creation:  D/413 > C/411
• Step 2 – Acceptation : no accounting
• Step 3 – Remittance for discount : D/5114 > C/413
• Step 4 – Payment : D/512 > C/5114 (in this case, the bank can add interest fees).

Posting profile Bill of exchange (for step 1) : Summary account = 413000

Posting profile for remittance (step 3/Option A) : Summary account = 511300

Posting profile for remittance with discount (step 3/option B) : Summary account = 511400

Posting profile for unpaid BOE : Summary account = 416000

3/ AR parameters

Access: AR > Setup > AR parameters

Select Customer posting profile to use for the BOE process.

4/ Method of payment

Access: AR > Setup > Payment > Methods of payment

When you create the BOE method of payment, you can choose between two options:

• Option A: Automatic creation of the BOE after the posting of the invoice.
• Option B: Manual creation of the BOE (create a payment journal to settle the invoice with the BOE payement).
• For both, select in the payment type field: “Bill of exchange”.
• For both, select a type of draft : no draft, Bill with acceptance, Bill with no acceptance.

5/ Bank account

Access: Cash & Bank management > Common > Bank account

If you need a layout, you must setup the layout in the Bank account.

Settle customer transactions with payment

This articles describes how to settle manually a customer transaction with a payment in Dynamics AX 2012

1/ Customer settlement

Access: Accounts receivable > Common > Customers > All customers

If a payment was entered and posted, but not yet settled with an invoice or other transaction, you can settle the payment and invoice by opening the Settle open transactions form from the Customers forms.

• Select the customer/vendor whose open transactions you want to settle.
• Go to the Collect tab and click “Settle open transactions”

• Select the “mark check box” on the open transactions to be settled.
• A red icon indicates that a transaction is already marked for settlement.

• Click on Update

Remark:

• Balance before settlement

• Balance after settlement

2/ Settle transaction with cash discount

For example: Customer B receives an invoice on J (amount = 1350). If he pays under 15 days, he can have 2% of cash discount. On J+1, the company receives a payment (amount = 1323). The accountant records this payment but he forgets to settle it with the original invoice.

• Customer transactions

• Select the customer/vendor whose open transactions you want to settle.
• Go to the Collect tab and click “Settle open transactions”
• In the Settlement posting date field, select the date to use for the settlement: latest date, today’s date or selected date

• Select the payment transaction and click “Mark payment”. This action mark the selected transaction as the primary payment transaction.

• Select the invoice.
• The amount of the cash discount is calculated by the system.

• Click on Update: transactions are settled
• You can check in the customer transactions, the cash discount is created.

Customer payment with deposit slip

This article describes how to use the payment journal with a deposit slip in the accounts receivable module of Dynamics AX 2012.  To create a deposit slip, you can use the Enter customer payments form or directly enter the payment in a journal.

Option A: Payment journal & Enter customer payment form

Access: AR > Journal > Payments > Payment journal

• Create a new journal : click on new
• Select a journal name
• Click on “Enter customer payments”

• Select a customer,
• Select deposit slip box,
• Select invoices paid and other option you need,
• Enter the payment reference,
• Enter a description,
• Enter the offset account (bank account),
• Enter the total amount of the payment in the field “Amount”,
• Click on “Save in journal” and close the form.

• Go to the lines of the journal

• All informations are filled,

• Check and complete if necessary.
• Post the journal.

• Go to Function > Deposit slip

• Enter the bank statement date and print the deposit slip.

Option B: Payment journal & settlement function or payment proposal

Access: AR > Journal > Payments > Payment journal

• Create a new journal : click on new
• Select a journal name,
• Enter a descrption,
• Click on “Lines”.

• In the field “Account’ select the customer account and click on Function> Settlement
• Or use the payment proposal function.
• Complete other informations if needed,
• Enter the payment reference,
• Select deposit slip box.

• Post the journal

• Go to Function > Deposit slip

• Enter the bank statement date and print the deposit slip.

Manage deposit slip

Use the deposit slip form to to view deposit slips for a bank account. You can open the voucher or the list of invoices and transactions linked to the deposit slip.  In this form, you can also cancel a payment transaction on a deposit slip.

Access: Cash & Bank management > Common > Deposit slips or Cash & Bank management > Common  > Bank accounts > Tab Manage payment > Deposit slip

Customer payment journal

This article describes how to use the payment journal in the accounts receivable module of Dynamics AX 2012. There are several options to do the payment flow:

• Option A: payment journal and Enter customer payments form.
• Option B: payment journal and settlement function.
• Option C: payment journal and payment proposal.
• Option D: payment journal and posting in Payments Transfers form.

Option A: Payment journal & Enter customer payment form

This option is useful when we need to create payments for one or a few customers.

 

Access: AR > Journal > Payments > Payment journal

• Create a new journal : click on new
• Select a journal name
• Click on “Enter customer payments”

• Select a customer,
• All open invoices appear in the bottom screen.

• Or you can search directly by the invoice number or other reference

• Enter a reference payment.
• Enter a description.
• Enter the offset account (bank account).
• Enter the total amount of the payment in the field “Amount”.
• Select invoices paid.
• Click on “Save in journal”.
• If you need to create others payments, select a customer and proceed as described abve.
• Close the form.

• Go to the lines of the journal

• All the informations are filled,

• Check and complete if necessary.
• Post the journal.

Option B: Payment journal & Settlement function

This option is useful when we need to create payments for one customer.

Access: AR > Journal > Payments > Payment journal

• Create a new journal : click on new.
• Select a journal name.

• Click on “Lines”
• In the field “Account’ select the customer account.
• Click on Function> Settlement

• Select invoices to pay
• And close the form.

• Informations about invoices are filled.
• Enter a description,
• And the offset account (bank account)
• Complete other informations if needed: payment reference, …
• And Post the journal.

Option C: payment journal and payment proposal.

This option is useful when we need to create payments for several customers in one journal. For example, all payments at due date pay by direct debit, …

Access: AR > Journal > Payments > Payment journal

• Create a new journal : click on new.
• Select a journal name.

• Click on “Lines”
• Go to “Payment proposal > Create a payment proposal”

• Select options of you search: proposal type, due date, currency, methods of payment, …
• Click on Payment to print a report.

• In the Customer payment proposal form, check the invoices to pay.
• Unselect invoices or customer if needed.
• If you need to update an information for several lines (method of payment for example),
• Select invoices to update.
• Click on “Multiple change”.
• Enter the new method of payment (or other).
• And click on “OK”.

• The informations in the top screen are the details of the lines in the bottom of the screen (if the field Link is selected).
• Click to “Transfer” to transfer all the informations in the journal lines.

• Complete informations in the journal lines if needed
• Post the journal

Option D: payment journal and posting in Transfer form.

This option can be use in addition with the three other options. This option is useful when a customer payment is done in two times,like a payment by cheque :

• when you receive the cheque, you create the journals lines (you can use one of the three other options to create the journal lines).
• And when you receive the bank confirmation, you can post the payment by using the transfer form.

Receive the payment:  Payment journal

Access: AR > Journal > Payments > Payment journal

• Create a new payment journal
• Go to the line
• Select invoices to pay and complete journal lines

• Setup the payments status to “Receive”
• Go to “Payment status > Received”
• Close the journal

Bank confirmation: Payments Transfer form

Access: AR > Journal > Payments > Payments transfer

• Open the Payments transfers form
• Click on “Post”

• Select payments confirmed by the bank.
• Post the payment.
• Enter a journal name.
• Click on “OK”.

• A new journal is created and posted

Free text invoices

This article describes how to create a free text invoice in Dynamics AX 2012.

A free text invoice is an invoice that is not attached to a sales order. A free text invoice contains a header and one or more lines for items or services that are not tracked in inventory. Free text invoices are generally used by the accounting service because you need to put directly the general account in the lines.

Access: AR > Common > Free text invoices > All free text invoices

• Click on “Free text invoice” button to create a new invoice

• Enter the customer account number,
• A description of the invoice,
• The general account number,
• The amount,
• The Sales tax group come from the setup of the customer,
• The item sales tax group come from the setup of the general account or from the general parameters.

• In the tab “Line details”, you can enter financial dimensions

• To check the total amount of the invoice, click on “Totals”

• In the header of the invoice, if necessary complete payment informations : methods of payment, due date, …

• When all the data are filled, Post the invoice

• To check the accounting, click on “Subledger journal”