About centralized customer payments [AX 2012]

Updated: May 27, 2011

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Organizations that include multiple legal entities can create and manage payments by using a legal entity that handles all payments. This eliminates the need to enter the same transaction in multiple legal entities and saves time by streamlining the payment proposal process, the settlement process, open transaction editing, and closed transaction editing for centralized payments.

In a centralized payment organization, there are many legal entities for operations, and each operating legal entity manages its own invoices receivable information. Payments for all the operating legal entities are received by a single legal entity, which is called the legal entity of the payment. During the settlement process, the applicable due-to and due-from transactions are generated. You can specify which legal entity in the organization will receive the realized gain or realized loss transactions, and how cash discount transactions that are related to a centralized payment are handled.

The following examples illustrate how posting is handled in various scenarios. The following configuration is assumed for all these examples:

  • The legal entities are Fabrikam, Fabrikam East, and Fabrikam West. Fabrikam is the legal entity of the payment.

  • The Post cash discount field in the Intercompany accounting form is set to Legal entity of the invoice.

  • The Post currency exchange gain or loss field in the Intercompany accounting form is set to Legal entity of the payment.

  • Fabrikam maintains a single global address book record, address book ID 4050, for Northwind Traders. This global address book record is mapped to a separate customer account in each legal entity.

Address book ID

Customer account

Name

Legal entity

4050

4000

Northwind Traders

Fabrikam

4050

4000

Northwind Traders

Fabrikam East

4050

10000

Northwind Traders

Fabrikam West

Fabrikam receives a payment of 600.00 for Fabrikam customer account 4000, Northwind Traders. The payment is settled with an open invoice for customer account 4000 in Fabrikam East.

Account

Debit amount

Credit amount

Accounts receivable (Fabrikam East)

600.00

Sales (Fabrikam East)

600.00

Account

Debit amount

Credit amount

Cash (Fabrikam)

600.00

Accounts receivable (Fabrikam)

600.00

Fabrikam posting

Account

Debit amount

Credit amount

Accounts receivable (Fabrikam)

600.00

Due to Fabrikam East (Fabrikam)

600.00

Fabrikam East posting

Account

Debit amount

Credit amount

Due from Fabrikam (Fabrikam East)

600.00

Accounts receivable (Fabrikam East)

600.00

Fabrikam receives a payment of 580.00 for Fabrikam customer 4000, Northwind Traders. Fabrikam East has an open invoice for customer 4000, Northwind Traders. The invoice has a 20.00 cash discount available. The payment is settled with the open Fabrikam East invoices. The cash discount is posted to the legal entity of the invoice, Fabrikam East.

Account

Debit amount

Credit amount

Accounts receivable (Fabrikam East)

600.00

Sales (Fabrikam East)

600.00

Account

Debit amount

Credit amount

Cash (Fabrikam)

600.00

Accounts receivable (Fabrikam)

600.00

Fabrikam posting

Account

Debit amount

Credit amount

Accounts receivable (Fabrikam)

580.00

Due to Fabrikam East (Fabrikam)

580.00

Fabrikam East posting

Account

Debit amount

Credit amount

Due from Fabrikam (Fabrikam East)

580.00

Accounts receivable (Fabrikam East)

580.00

Cash discount (Fabrikam East)

20.00

Accounts receivable (Fabrikam East)

20.00

Fabrikam receives a payment of 600.00 EUR for Fabrikam customer 4000. The payment is settled with an open invoice for customer 4000 in Fabrikam East. A currency exchange gain transaction is generated during the settlement process.

Exchange rate for EUR to USD as of the invoice date: 1.2062

Exchange rate for EUR to USD as of the payment date: 1.2277

Account

Debit amount

Credit amount

Accounts receivable (Fabrikam East)

600.00 EUR / 723.72 USD

Sales (Fabrikam East)

600.00 EUR / 723.72 USD

Account

Debit amount

Credit amount

Cash (Fabrikam)

600.00 EUR / 736.62 USD

Accounts receivable (Fabrikam)

600.00 EUR / 736.62 USD

Fabrikam posting

Account

Debit amount

Credit amount

Accounts receivable (Fabrikam)

600.00 EUR / 736.62 USD

Due to Fabrikam East (Fabrikam)

600.00 EUR / 736.62 USD

Due to Fabrikam East (Fabrikam)

0.00 EUR / 12.90 USD

Realized gain (Fabrikam)

0.00 EUR / 12.90 USD

Fabrikam East posting

Account

Debit amount

Credit amount

Due from Fabrikam (Fabrikam East)

600.00 EUR / 736.62 USD

Accounts receivable (Fabrikam East)

600.00 EUR / 736.62 USD

Accounts receivable (Fabrikam East)

0.00 EUR / 12.90 USD

Due from Fabrikam (Fabrikam East)

0.00 EUR / 12.90 USD

Fabrikam posts a payment for Fabrikam customer 4000, Northwind Traders, for an open invoice in Fabrikam East. The invoice has a cash discount available and a sales tax transaction is generated. The payment is settled with the open Fabrikam East invoice. A currency exchange gain transaction is generated during the settlement process. The cash discount is posted to the legal entity of the invoice (Fabrikam East) and the currency exchange gain is posted to the legal entity of the payment (Fabrikam).

Exchange rate for EUR to USD as of the invoice date: 1.2062

Exchange rate for EUR to USD as of the payment date: 1.2277

Account

Debit amount

Credit amount

Accounts receivable (Fabrikam East)

638.22 EUR / 769.82 USD

Sales (Fabrikam East)

600.00 EUR / 723.72 USD

Sales tax (Fabrikam East)

38.22 EUR / 46.10 USD

Account

Debit amount

Credit amount

Cash (Fabrikam)

626.22 EUR / 768.81 USD

Accounts receivable (Fabrikam)

626.22 EUR / 768.81 USD

Fabrikam posting

Account

Debit amount

Credit amount

Accounts receivable (Fabrikam)

626.22 EUR / 768.81 USD

Due to Fabrikam East (Fabrikam)

626.22 EUR / 768.81 USD

Due to Fabrikam East (Fabrikam)

0.00 EUR / 13.46 USD

Realized gain (Fabrikam)

0.00 EUR / 13.46 USD

Fabrikam East posting

Account

Debit amount

Credit amount

Due from Fabrikam (Fabrikam East)

626.22 EUR / 768.81 USD

Accounts receivable (Fabrikam East)

626.22 EUR / 768.81 USD

Accounts receivable (Fabrikam East

0.00 EUR / 13.46 USD

Due from Fabrikam (Fabrikam East)

0.00 EUR / 13.46 USD

Cash discount (Fabrikam East)

12.00 EUR / 14.47 USD

Accounts receivable (Fabrikam East)

12.00 EUR / 14.47 USD

Fabrikam receives a payment of 75.00 from customer 4000, Northwind Traders. The payment is settled with an open invoice for Fabrikam West customer 10000 and an open credit note for Fabrikam East customer 4000. The payment is selected as the primary payment in the Settle open transactions form.

Account

Debit amount

Credit amount

Accounts receivable (Fabrikam West)

100.00

Sales (Fabrikam West)

100.00

Account

Debit amount

Credit amount

Sales returns (Fabrikam East)

25.00

Accounts receivable (Fabrikam East)

25.00

Account

Debit amount

Credit amount

Cash (Fabrikam)

75.00

Accounts receivable (Fabrikam)

75.00

Fabrikam posting

Account

Debit amount

Credit amount

Due from Fabrikam East (Fabrikam)

25.00

Accounts receivable (Fabrikam)

25.00

Accounts receivable (Fabrikam)

100.00

Due to Fabrikam West (Fabrikam)

100.00

Fabrikam East posting

Account

Debit amount

Credit amount

Accounts receivable (Fabrikam East)

25.00

Due to Fabrikam (Fabrikam East)

25.00

Fabrikam West posting

Account

Debit amount

Credit amount

Due from Fabrikam (Fabrikam West)

100.00

Accounts receivable (Fabrikam West)

100.00

Fabrikam receives a payment of 75.00 from customer 4000, Northwind Traders. The payment is settled with an open invoice for Fabrikam West customer 10000 and an open credit note for Fabrikam East customer 4000. The payment is not selected as the primary payment in the Settle open transactions form.

Account

Debit amount

Credit amount

Accounts receivable (Fabrikam West)

100.00

Sales (Fabrikam West)

100.00

Account

Debit amount

Credit amount

Sales returns (Fabrikam East)

25.00

Accounts receivable (Fabrikam East)

25.00

Account

Debit amount

Credit amount

Cash (Fabrikam)

75.00

Accounts receivable (Fabrikam)

75.00

Fabrikam posting

Account

Debit amount

Credit amount

Accounts receivable (Fabrikam)

75.00

Due to Fabrikam West (Fabrikam)

75.00

Fabrikam East posting

Account

Debit amount

Credit amount

Accounts receivable (Fabrikam East)

25.00

Due to Fabrikam West (Fabrikam East)

25.00

Fabrikam West posting

Account

Debit amount

Credit amount

Due from Fabrikam (Fabrikam West)

75.00

Accounts receivable (Fabrikam West)

75.00

Due from Fabrikam East (Fabrikam West)

25.00

Accounts receivable (Fabrikam West)

25.00


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