Under delivery of line is xx.xx percent, but the allowed under delivery is only 0.00 percent in Ax 2012

While using the under delivery functionality, there is a following common error we face;

To fix this issue, check the following setups;

1. Make sure configuration key is enabled. If configuration key is disabled, no under deliveries are allowed. To check if key is enabled/disabled, navigate to the following path;
   1. System administrator -> Setup -> Licensing -> License configuration.
   2. License code – Trade and Logistics,
   3. Parent key – Trade.
   4. 

2. Check, ‘Accept underdelivery’ parameter is checked @ Procurement & sourcing  -> Setup -> Procurement & sourcing parameters -> Updates -> Accept underdelivery

3. Check if Underdelivery % is defined against the respective item @ Released product details form

If all these setups are properly defined, no issue to accept under delivery.

Happy Learning!

How to cancel Posted Packing Slip for Sales Order in Ax 2012

In case if you want to abort posted packing slip for Sales order, there is a way here. In the following screen print, SO is packing slip posted;

To cancel the packing slip, click on the above mentioned highlighted menu ‘Packing slip’. System opens the following form;

Click on Cancel;

Once ‘Cancel’ is clicked, system throws the following info message;

Click ‘Yes’ & system cancel the packing slip.

System also enabled back ‘Packing slip’ menu button. See the following screen;

To reconfirm if packing slip is cancelled and quantity is not delivered, refer the following navigation;

Accounts receivables-> Common -> Sales orders -> All sales orders -> Select related sales order -> Click on General menu -> Click on ‘Line quantity’ menu button

See the highlighted field where system shows deliver remainder is 1 i.e. packing slip is successfully cancelled.

P.S. Once order is invoiced, you can not use this functionality.

Why is inventory closing performed & how Ax maintains weighted average costing ?

Q. 1 Why is inventory closing performed?

Ans. Inventory closing is performed to reach out to the actual COGS of issued item quantity. This actual COGS make sure the right profit is calculated for the issued quantity. It can be more understanding with the example given in second question of how does weighted average costing method works.

Q.2 How does weighted average costing method works?

The same can be explained with the following data;

When receipt transactions & issue transactions are  posted in system, it updates item COGS based on running calculated average cost method.

In the above example, first time item is sold with COGS value of 12. Second time item is sold with COGS value as 10.8. Assuming the total sales value of sold item qty (1+1) = 50, the profit comes as 50 – (12+10.8) = 27.20. Though this profit cannot be justified since same item cost differentiates whenever it is sold.

To reach to the actual COGS, we run inventory costing on a specific interval i.e. monthly, quarterly. The inventory closing is done to get the right COGS based on the costing method defined in the system. In an example where costing method is defined as weighted average cost & considering above mentioned data, system calculates average cost of receipts quantity first;

(D2+D3+D6)/(C2+C3+C6) i.e. (16+20+30)/(1+2+3) i.e. 66/6 = 11

So COGS per item shall be 11.

For sold quantity of 2, posted COGS = 22.8

Recalculated COGS                                   = 22 (11*2)

Inventory adjustment entry will be posted with .8 to rectify the COGS & to reach to the correct sales profit i.e. 50-22 = 28.

How to cancel Posted Product receipt for Purchase Order in Ax 2012

If you have posted a packing slip but you want to abort it, there is a way here. In the following screen print, PO is packing slip posted;

To cancel the Product receipt, click on the above mentioned highlighted menu ‘Product receipt’. System opens the following form;

Click on Cancel;

Once ‘Cancel’ is clicked, system throws the following info message;

Click ‘Yes’ & system cancel the packing slip.

System also enabled back ‘Product receipt’ button. See the following screen;

To reconfirm if packing slip is cancelled and quantity is not shipped, refer the following navigation;

Accounts payable -> Common -> Purchase orders -> All purchase orders -> Select related purchase order -> Click on General menu -> Click on Line quantity menu button

See the highlighted field where system shows deliver remainder is 10 i.e. Product receipt is successfully cancelled.

P.S. Once order is invoiced, you can not use this functionality.

Error: Account number for transaction type vendor balance does not exist in Ax 2012

When posting a purchase order invoice, I faced an issue where system throws the following error message;

When checked thoroughly, it was found that error message was because of ‘Chart of Accounts’ not linked to‘Account structure’.

To link ‘Chart of Accounts’ with ‘Account structure’, refer the following path;

General ledger -> Setup -> Ledge

Once ‘Chart of Accounts’ is linked to‘Account structure’, this issue is sorted out.

Creation of a New Product using Product Template in Ax 2012

In case of, you want to use a predefined template to create a new product/item, refer the following steps;

• Navigate to Product information management -> Common -> Products -> Released product
• Select an existing item & double click on it or click edit
• Click menu Product -> New -> Template -> Create Personal Template
• Mention name and description per your convenience

• Click Ok

Now create new product

System opens the following window where you can define product name, search name etc.

Navigate to field ‘Apply template’ and Select drop down list against it

System provides the option of creating new product based on pre-defined template of ‘Product template’ or Blank one.

Now we are good to go to create a new product/item based on pre-defined template 

Creation of a new Vendor by using Vendor Template in Ax 2012

In case of you want to use a predefined template to create a new vendor, refer the following steps;

• Navigate to Accounts payable -> Common -> Vendors -> All vendors
• Select an existing vendor and double click
• Select any field, right click and select ‘Record info’
• Click button ‘User template’
• Mention name and description as per your interest

• Click ‘Ok’

• Now navigate back to vendor master form
• Create new vendor
• System gives the option of creating vendor by using Blank template or newly created ‘Vendor template’

It is to be noted that if template is used to create a new vendor, system always fetch the vendor details which used to create vendor template. Later user can change the vendor name and other info if needed.

Just to add on, if you want to delete template, just select the template id (refer 2nd screen print) and press Alt+F9.