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Table of Contents

Introduction to Microsoft Dynamics AX 2009




Microsoft Dynamics Courseware Contents


Documentation Conventions


Student Objectives


Chapter 1: Introduction to Microsoft Dynamics AX 2009








Microsoft Dynamics AX 2009 Technology




Supply Chain Management









Test Your Knowledge


Chapter 2: Functionality Demonstrations








Enter a Sales Quote


Customize the Order with Product Builder


Check the Item Availability


Convert the Quotation to the Sales Order


Run Master Scheduling


Produce the Custom Item


Ship the Order


Send an Invoice for the Order


Check the Amount Invoiced


Post Payment


Apply Payment


Check the Account to Verify Posting




Quick Interaction: Lessons Learned


Chapter 3: User Interface






Navigate Microsoft Dynamics AX 2009


Lab 3.1 - Explore the Application Window


Configure Menus


Lab 3.2 - Configure Your Workspace


Exploring the Help System


Role Center Use in Microsoft Dynamics AX 2009




Test Your Knowledge


Quick Interaction: Lessons Learned


Introduction to Microsoft Dynamics ® AX 2009

Chapter 4: User Setup








Set Up Users


Lab 4.1 - Create a User


Install User Role Centers


Set Password Parameters


Monitor Client and Server Activity




Test Your Knowledge


Quick Interaction: Lessons Learned




Chapter 5: Number Sequences








Create Number Sequences


Lab 5.1 - Create Number Sequences


Set Individual Parameters


Lab 5.2 - Set Number Sequence Parameters


View Number Sequence References


View Number Sequence History




Test Your Knowledge


Quick Interaction: Lessons Learned


Chapter 6: Company Accounts








Create Domains


Lab 6.1 - Create a Domain


Create Table Collections


Lab 6.2 - Create a Table Collection


Create Company Accounts


Lab 6.3 - Create a Company Account


Create Virtual Company Accounts


Lab 6.4 - Create a Virtual Company Account


Set up Company Information


Lab 6.5 - Set up Company Information


Enter Company Information


Lab 6.6 - Enter Company Information for the New Company


Import and Export Data


Lab 6.7 - Export and Import Cost Categories




Test Your Knowledge


Quick Interaction: Lessons Learned


Table of Contents

Chapter 7: Tools Menu








Tools Menu Overview


Lab 7.1 - Create a Unit Conversion


Set User Options




Test Your Knowledge


Quick Interaction: Lessons Learned




Chapter 8: Command Menu









Menu Overview


Use Setup Feature


Lab 8.1 - Modify a Form


Use Hide/Show Features


Lab 8.2 - Hide/Show a Form


Create Alert Rules


Lab 8.3 - Create an Alert


View Record Information





Use Document Handling Feature


Lab 8.4 - Attach a Document to a Record


Delete Records




Test Your Knowledge


Quick Interaction: Lessons Learned




Chapter 9: Differentiating Features








Microsoft MorphX


Lab 9.1 - Modify a Lookup List


Using Enterprise Portal


Lab 9.2 - Take an Order Using Enterprise Portal


Access SQL Data Tables


Lab 9.3 - Change Name in Data Table


Integration with Other Microsoft Applications


Using Workflows




Test Your Knowledge


Quick Interaction: Lessons Learned




Introduction to Microsoft Dynamics ® AX 2009



Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Last Revision: July 2008

The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication.


Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation.

Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property.

© 2008 Microsoft Corporation. All rights reserved. Microsoft Dynamics®, AX 2009 are either trademarks or registered trademarks of Microsoft Corporation or Great Plains Software, Inc. or their affiliates in the United States and/or other countries. Great Plains Software, Inc. is a subsidiary of Microsoft Corporation. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

This course content is designed for Microsoft Dynamics® 2009 formerly a part of Microsoft® Business Solutions.

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement





We know training is a vital component of retaining the value of your Microsoft Dynamics ® AX 2009 investment. Our quality training from industry experts keeps you up-to-date on your solution and helps you develop the skills necessary for fully maximizing the value of your solution. Whether you choose Online Training, Classroom Training, or Training Materials; there is a type of training to meet everyone's needs. Choose the training type that best suits you so you can stay ahead of the competition.

Online Training

Online Training delivers convenient, in-depth training to you in the comfort of your own home or office. Online training provides immediate access to training 24 hours-a-day. It is perfect for the customer who does not have the time or budget to travel. Our newest online training option, eCourses, combine the efficiency of online training with the in-depth product coverage of classroom training, with at least two weeks to complete each course.

Classroom Training

Classroom Training provides serious, in-depth learning through hands-on interaction. From demonstrations to presentations to classroom activities, you receive hands-on experience with instruction from our certified staff of experts. Regularly scheduled throughout North America, you can be sure you will find a class convenient for you.

Training Materials

Training Materials enable you to learn at your own pace, on your own time with information-packed training manuals. Our wide variety of training manuals feature an abundance of tips, tricks, and insights you can refer to again and again:

Microsoft Dynamics Courseware

The Microsoft Dynamics Courseware consists of detailed training manuals, designed from a training perspective. These manuals include advanced topics as well as training objectives, exercises, interactions and quizzes.

Look for a complete list of manuals available for purchase on the Microsoft Dynamics website: www.microsoft.com/Dynamics.

Introduction to Microsoft Dynamics ® AX 2009

Microsoft Dynamics Courseware Contents

Test Your Skills

Within the Microsoft Dynamics Training Materials you find a variety of different exercises. These exercises are offered in three levels to accommodate the variety of knowledge and expertise of each student. We suggest you try the level three exercises first, if you need help completing the task look to the information in the level two exercises. If you need further assistance each step of the task is outlined in the level one exercise.

Challenge Yourself!

Level 3 exercises are the most challenging. These exercises are designed for the experienced student who requires little instruction to complete the required task.

Need a Little Help?

Level 2 exercises are designed to challenge students, while providing some assistance. These exercises do not provide step by step instructions, however, do provide you with helpful hints and more information to complete the exercise.

Step by Step

Level 1 exercises are geared towards new users who require detailed instructions and explanations to complete the exercise. Level 1 exercises guide you through the task, step by step, including navigation.

Quick Interaction: Lessons Learned

At the end of each chapter within the Microsoft Dynamics Training Material, you find a Quick Interaction: Lessons Learned page. This interaction is designed to provide the student with a moment to reflect on the material they have learned. By outlining three key points from the chapter, the student is maximizing knowledge retention, and providing themselves with an excellent resource for reviewing key points after class.


Documentation Conventions

The following conventions and icons are used throughout this documentation to help you quickly and effectively navigate through the information.

CAUTION: Cautions are found throughout the training manual and are preceded by the word CAUTION in bold. Cautions are used to remind you of a specific result of a specific action which may be undesirable.

HINT: Hints are found throughout the training manual and are preceded by the word HINT in bold. Hints are used to suggest time-saving features or alternative methods for accomplishing a specific task.

NOTE: Notes are found throughout the training manual and are preceded by the word NOTE in bold. Notes are used to provide information which, while not critical, may be valuable to an end user.

BEYOND THE BASICS: Advanced information found throughout the training manual is preceded by the words BEYOND THE BASICS in bold. Beyond the Basics provides additional detail, outside of standard functionality, that may help you to more optimally use the application.

EXAMPLE: Examples are found throughout the training manual and are preceded by the word EXAMPLE in bold. Examples bring to light business scenarios that may better explain how an application can be used to address a business problem.

Introduction to Microsoft Dynamics ® AX 2009

Student Objectives

What do you hope to learn by participating in this course?

List three main objectives below.


1. 2. 3.
1. 2. 3.
1. 2. 3.


1. 2. 3.
1. 2. 3.
1. 2. 3.


Chapter 1: Introduction to Microsoft Dynamics AX 2009



The objectives are:

Present the benefits of the unique Microsoft Dynamics ® AX 2009 architecture.

Identify the key features and benefits of Microsoft Dynamics AX

2009 in financial areas.

Identify the key features and benefits of Microsoft Dynamics AX

2009 in supply chain management areas.

Identify the key features and benefits of Microsoft Dynamics AX

2009 in project accounting area.

Identify the key features and benefits of Microsoft Dynamics AX

2009 in customer relationship management areas.


This lesson describes the various modules of the Microsoft Dynamics AX 2009 Enterprise Resource Planning (ERP) application and their key features and benefits.

Modules discussed in this section include the following:

Financial Management

Supply Chain Management

Trade and Logistics

Master Planning

Project Accounting

Customer Relationship Management

Human Resource Management

Microsoft Dynamics AX 2009 has an object-oriented architecture that shortens the time required to configure and customize the system. This enables companies to configure the system to the way they do business rather than forcing them to change their business to fit the software system.

Introduction to Microsoft Dynamics ® AX 2009


A sales representative meets with a potential customer. The presentation starts

with an introduction of the unique architecture of Microsoft Dynamics AX 2009 and the benefits it provides. The sales representative then gives a high level

overview of the key features provided by Microsoft Dynamics AX 2009.

Microsoft Dynamics AX 2009 Technology

Microsoft Dynamics AX 2009 is a completely integrated ERP solution that uses:

one business logic

one source code

one database

one toolbox

It is completely Web-enabled and supports the leading database management

systems that include Microsoft SQL Server ® and Oracle databases. With the customizable source code, the solution can be modified however and whenever needed.

Designed to run on the Microsoft Windows Server ® 2003 operating system, Microsoft Dynamics AX 2009 provides customers the enhanced security, connectivity, scalability, and support required for today's business environment.

Architecture Overview

With Microsoft Dynamics AX 2009, the full range of functionality is delivered in the first installation. Unused functionality remains hidden until needed and is enabled by entering the appropriate license code into the system. Companies buy appropriate licenses and only pay for modules they use. With Microsoft Dynamics AX 2009, there is no need for integrating and managing multiple systems.

Sophisticated customizations can be made without special IT or programming knowledge. Frequently, this process can cost companies significant time and money because changes must be made to multiple forms and reports. But with the Microsoft Dynamics AX 2009 configuration system, the unused features are hidden, not removed, and the process is simple. The core functionality, in addition to the customizations, is saved so that companies can always view or revert back to them.

Chapter 1: Introduction to Microsoft Dynamics AX 2009

Layered Structure

Microsoft Dynamics AX 2009 is designed with a unique layer structure that separates and controls the updates and modifications made in the application. The layer structure is a powerful and flexible tool with the following key features:

The standard Microsoft Dynamics AX 2009 application components are stored in the core layer called the system layer which is controlled and maintained by Microsoft Dynamics.

Country-specific, industry-specific, and customer-specific modifications are created and stored in the layers stacked on top of the core layer.

The outermost layer is where the individual end user can store personal modifications, for example a report layout.

Although the top layers can be changed, the standard Microsoft Dynamics AX functionality remains the same and you can return to the original version without running a new installation.

The layers are designed with all creators and users of Microsoft Dynamics AX 2009 considered. Basically, three groups have an interest in adding and modifying application objects. The groups are as follows:

Microsoft Dynamics AX software developers who create the standard application

Microsoft Dynamics AX business partners

Microsoft Dynamics AX end users

Developer Layers

There are ten separate layers in the Microsoft Dynamics AX 2009 application hierarchy. The first four are used by Microsoft Dynamics AX developers:




The standard application is implemented at the lowest level, the SYS layer. This layer includes country/region specific features developed for the United States, Western European and African countries


The GLS layer includes features developed for all countries that have not been implemented in the SYS layer.


HFX is the application layer used for on-demand hotfixes. A hotfix is a single code package composed of one or more files used to address a problem in the product.

SL1, SL2, or SL3

A layer where the distributor can implement vertical partner solutions. SL is an abbreviation for SoLution.

Introduction to Microsoft Dynamics ® AX 2009

Business and Customer Layers

There are two layers used by Microsoft Dynamics AX business partners:




When a business partner (BUS) creates a generic solution, the modifications are saved in the BUS layer.


Value Added Resellers (VAR) can make customer-specific modifications to the business partner solution. These are saved in the VAR layer.

There are two layers used by Microsoft Dynamics AX customers:




The supervisor or administrator of an end user installation may want to make modifications generic to the company. Such modifications are typically saved in the Customer (CUS) layer.


End users may want to make their own modifications. These modifications are typically saved in the User (USR) layer.

Chapter 1: Introduction to Microsoft Dynamics AX 2009

Update Layers

In addition to the 10 application object layers, there are patch layers. The patch layers available are: SYP, GLP, BUP, VAP, CUP, and USP. Patch layers are designed to make it easy to incorporate updates in Microsoft Dynamics AX. The basic idea is that when a minor update or correction is made, it is distributed in a patch file, for example, Axsyp.aod. When a patch file is present, the modified objects in the patch file take precedence over the regular application objects and are automatically used.



Patch files use the same application object number series that the regular files use. Using patch layers enables you to easily create and distribute an update, for example, by using the Internet, without interfering with the existing application.

Introduction to Microsoft Dynamics ® AX 2009

Benefits of Layer Technology - Modifications

The objects in the standard implementation (SYS layer and its update layer) cannot be changed or deleted by anyone other than Microsoft Dynamics AX 2009 Development team.

When partners or users change the application, the modified objects are stored in different files. Therefore, the standard version of Microsoft Dynamics AX 2009 does not change, but the objects will be copied to a higher level in the layer structure from which the modifications will be executed.

Partners and the customers always have the chance of comparing or even reverting to the standard version before the modification.

In this manner, the layers help protect the original source code and keep it separate from modifications.

For example, when a user wants to print a report, the kernel will examine the USR layer for a version of the requested report. If the report is not found in this layer, the kernel will continue to the next layer until the report is located. If no changes have been made to the reports, it will be found in the SYS or GLS layer.


Another powerful benefit of this layer technology is that updates and upgrades are much easier and intuitive in that:

Modifications made separately from the original code are easy to view.

Powerful code comparison tools are provided, using which any object from any layer can be compared to the object from one of the other layers.

An upgrade project can be created, wherein all changed objects that may need special attention can be isolated.

Chapter 1: Introduction to Microsoft Dynamics AX 2009

Microsoft Dynamics AX Object - Oriented Environment

Microsoft Dynamics AX is an object-oriented environment and it provides unique and powerful features within functional areas and the development environment.

The features of Microsoft Dynamics AX are summarized as follows:

Functional features


Single database architecture is used for all companies in the organization.


A highly integrated design between functional areas such as resource planning, sales, and manufacturing.


Dimension-based system for manufacturing and financial modules.


Advanced features such as Forecasting and Master Planning.


Multicurrency and Multilanguage capabilities.


Intercompany financial and trade & logistics transactions.


Consolidation of subsidiary with parent company.

Development environment features


Microsoft Dynamics AX MorphX is an integrated development environment (IDE) for developing in Microsoft Dynamics AX.


The .NET Business Connector provides access to the complete Microsoft Dynamics AX application interface enabling easy integration of third-party and Web applications.


The Application Object Tree (AOT) provides a uniform and compact programming framework and viewing repository.


Drag-and-Drop functionality is supported for many programming tasks.


Projects help organize and track customized applications in Microsoft Dynamics AX.

Introduction to Microsoft Dynamics ® AX 2009

Microsoft Dynamics AX Three - Tier Architecture

Microsoft Dynamics AX 2009 has a three-tier architecture which includes the following:

First Tier - Intelligent Client

Second Tier - AOS (Microsoft Dynamics AX Object Server)

Third Tier - Database Server


The Application Object Tree (AOT) is a tree view of all the application objects within Microsoft Dynamics AX. The AOT contains everything needed to customize the look and functionality of a Microsoft Dynamics AX application.


IntelliMorph is the technology that controls the user interface in Microsoft Dynamics AX. The user interface is how the functionality of the application is presented or displayed to the user. The same functionality can be displayed on multiple platforms or devices that use the same application code; for example, through the Web or through Mobile devices.

IntelliMorph controls the layout of the user interface and makes it easier to modify forms, reports, and menus.

Chapter 1: Introduction to Microsoft Dynamics AX 2009


The MorphX Development Suite is the IDE in Microsoft Dynamics AX used to develop and customize both the Windows interface and the Web interface. An

IDE integrates development functions such as designing, editing, compiling, and debugging in a common environment. With MorphX, common operations such

as building or modifying forms, menus, and reports are done using drag-and-drop techniques with little or no coding.

A core concept of MorphX is inheritance. Characteristics of inheritance include

the following:

What is defined at a higher level in the system is automatically inherited by lower levels.

Microsoft Dynamics AX is flexible and modifiable on many levels because of this hierarchical structure.

You can modify a single parameter for the whole system to inherit the change.

The concept of inheritance is used in all object-oriented programming languages.

X++ is the object-oriented programming language used in the MorphX environment. X++ has Java-like syntax, and incorporates SQL data manipulation statements.

Enterprise Portal Provides the Bridge - Overview

Microsoft Dynamics AX 2009 provides the flexibility required to establish an IT infrastructure throughout a whole organization. Connectivity is enabled by Enterprise Portal (EP) within Windows SharePoint Services. Windows SharePoint Services is the core technology for Enterprise Portal. A single Windows SharePoint Services site is the base for an Enterprise Portal installation and various components for Enterprise Portal are stored on this site.

The Microsoft Dynamics AX 2009 Enterprise Portal feature gives customers, vendors, and employees access to ERP data and functionality through the Web. All that customers, vendors, and employees need is an Internet connection and a browser.

To effectively use the benefits that the Microsoft Dynamics AX 2009 Enterprise Portal provides, you need the following setup:

Windows SharePoint Services/Office SharePoint Server - Enterprise Portal requires either Windows SharePoint Services 3.0 or Office SharePoint Server.

EP Installation - Enterprise Portal is installed by using Microsoft Dynamics AX Setup. This verifies whether Internet Information Services (IIS) and either Windows SharePoint Services or Office SharePoint Server is installed on the server.

Introduction to Microsoft Dynamics ® AX 2009

Business Connector proxy configuration - Setup automates configuring the proxy credentials in these Enterprise Portal server locations:


Microsoft Dynamics AX


Windows user groups




Microsoft SQL Server

IIS - Setup automates configuring of security, ASP.NET, and application pools in IIS.

Site creation and deployment - By default, when you install Enterprise Portal, Setup automatically creates an Enterprise Portal site, extends that site in Windows SharePoint Services or Office SharePoint Server, and deploys the site.

User profiles - You can use these profiles to assign users to specific Role Centers.

Personalized Access

Microsoft Dynamics AX 2009 and the Enterprise Portal framework use customizable home pages called Role Centers. Role Centers can be accessed either from the Microsoft Dynamics AX 2009 client or from an Enterprise Portal Web site and enable users to do the following:

View relevant information and reports

Publish documents

Input data

Reply to questions created in the Microsoft Dynamics AX 2009 Questionnaire module

Enterprise Portal provides links to the following:

Relevant Web sites

Discussion forums

Microsoft Dynamics AX 2009 functionality that is appropriate for the assigned role

Shortcuts to tasks

Spaces for frequently used documents

EXAMPLE: A customer enters a purchase order in Enterprise Portal; information is registered immediately in Microsoft Dynamics AX without manual entry. The purchase order is published instantly on the personal Web sites.

Chapter 1: Introduction to Microsoft Dynamics AX 2009

Users are also presented with several information panels they can view such as:

Corporate news relevant to their role

Weather information

Traffic reports

Stock market reports

Microsoft Outlook ® calendar and task list

Live reports from other modules

All information is organized according to personal preferences. Users can do the following:

Move and hide elements

Select the layout, colors and text preferences

Select any one of many languages

Additionally, vendors and customers can select their own names for items, projects, documents that may differ from the names used by the company.

Typical Uses for Enterprise Portal

The following are some typical ways of using Enterprise Portal:



View product catalogs


Receive price and delivery quotations


Submit and track orders



Track orders


View documents and diagrams


Enter prices


Change contact information



Maintain contact details


Maintain qualifications


Report absences


View appraisals


View development plans

Introduction to Microsoft Dynamics ® AX 2009

Consultants submit time reports

Technicians manage service requests

Sales representatives


View customer records


Give quotations


Submit orders


Change prices


Track current orders and backorder lines

Application Integration Framework (AIF)

The Application Integration Framework (AIF) enables companies to integrate and communicate with other business processes and partners electronically. AIF provides an extensible framework within Microsoft Dynamics AX that enables the exchange of data with external systems. The data is exchanged using documents in the XML format.


In the AIF architecture there are two primary components:

Transport components (Web services and asynchronous adapters shown as Microsoft Dynamics AX messaging gateway)

Business logic components

Although the transport functionality is separate from the business logic, the two are closely related. A document exchange in Microsoft Dynamics AX 2009 is either inbound or outbound and uses the AIF transport layer to process data. When you configure a document exchange, the settings are saved in the Microsoft Dynamics AX database. An exchange starts with a document based on a document class and is defined by using Microsoft Dynamics AX business logic. The document is serialized into XML, and the header information is added to create a message that can be transferred into or out of Microsoft Dynamics AX.

Chapter 1: Introduction to Microsoft Dynamics AX 2009

AIF enables companies to integrate Microsoft Dynamics AX and communicate with external business processes and partners through the exchange of XML over various transport media. AIF enables both business-to-business and application- to-application integration scenarios.

In Microsoft Dynamics AX 2009, AIF has the following features:

Document services

Extensible X++ framework

Data exchange in form of XML documents

Configurable transport infrastructure

Flexible architecture

The following operations are supported:





The ability to update and delete data through AIF enables companies to fully integrate Microsoft Dynamics AX in their business processes. Also, AIF includes support for an enlarged set of frequently used documents.

AIF Exchange Types

AIF exchange can be done two ways:

Adapter-based exchange - An asynchronous document exchange that uses an adapter in Microsoft Dynamics AX and does not require the installation of Microsoft Internet Information Services (IIS). In this kind of exchange, documents are moved through the system using queues. Adapter transports supported by AIF are as follows:


Microsoft Message Queuing (MSMQ)


File system


Microsoft BizTalk ® Server 2006


Outbound Web services

Web service exchange - A synchronous document exchange that uses Web services and requires IIS to be installed and configured to send and receive data. Because this kind of exchange is synchronous, queues are not used. The Web services are generated automatically from the Microsoft Dynamics AX business logic. Even developers with limited Web experience can easily create their own Web services. The Web service exchange differs from the outbound Web service adapter exchange with its synchronous nature and ability to accept requests.

Introduction to Microsoft Dynamics ® AX 2009


The Microsoft Dynamics AX 2009 Financial Management module provides fast, reliable, and comprehensive accounting, financial reporting, and analysis. It also provides all the functionality required to update accounts efficiently and comply with reporting requirements.

Basic capabilities of the Financial Management module include the following:

General Ledger

Liquidity Management (Bank Management)

Accounts Receivable

Accounts Payable

Fixed Assets

Expense Management

Dimensions are used across the various modules in Microsoft Dynamics AX 2009. They can be used for tracking profit, cost centers, departments, regions, product lines, or any other reporting units. The ability to update the general ledger online provides fast and accurate financial reporting. Financial dimension features also include the following:

An advanced control feature that enables the driving of contextual value restrictions on financial dimensions.

Financial controllers can specifically restrict authorized values or value combinations at the entry point on chosen table collections or journal names, or upon posting to chosen ledger accounts.

Dimension sets that combine dimension types can be built to drive and control the dimension value dependencies.

Data reliability is increased regarding financial dimensions across the company and according to specific corporate needs or policies.

Because all the Microsoft Dynamics AX 2009 modules are part of one system, a transaction in one module automatically updates corresponding accounts in the general ledger.

With Microsoft Dynamics AX 2009, a business with several companies, subsidiaries, or distribution centers can set up intercompany journals. The Intercompany Accounting provides you with the following functionality:

An intercompany transaction posted in one subsidiary automatically updates designated accounts of the other subsidiary or distribution center.

With the complete audit trail, any transaction can be traced back to the module where it was created and to the original document.

Chapter 1: Introduction to Microsoft Dynamics AX 2009

Fast and flexible reporting tools provide a large range of reports and inquiries.

Intercompany allocation rules enable to efficiently distribute monetary amounts between multiple companies.

Elimination rules automatically brush up consolidated reports from the unnecessary transactions making the consolidation process smoother and saving time.

Financial Management – Business Analysis

Decision makers in a global marketplace face the following questions everyday:

Is the business healthy?

Who are my best customers?

Which supplier do I select?

Microsoft Dynamics AX 2009 enables accurate and timely analysis to provide companies with the edge they must have to successfully compete. Starting with a larger overview and drilling down to the details, Microsoft Dynamics AX 2009 helps companies learn from historical data, investigate opportunities, and to quickly target markets and customers with pinpoint accuracy.

Analysis in Microsoft Dynamics AX 2009 is based on Online Analytical Processing technology (OLAP). This enables multidimensional analysis by using the Microsoft SQL Server Analysis Services. With Microsoft Dynamics AX 2009, the OLAP functionality and the ERP system are integrated so that all mappings occur directly in Microsoft Dynamics AX 2009, taking full advantage of business information and making the most of relationships between tables, extended data types, and enum labels.

There are a variety of dimensions to explore that include time, products, geographical regions, or sales channels. CEOs, CFOs, managers, controllers, accountants, and sales and marketing staff can create, view, and understand reports that previously were complex, expensive, or time-consuming. The data used for analysis is regularly updated because it includes changes as they occur in Microsoft Dynamics AX 2009 or subsequent data sources.

Financial Management – Financial Reporting

The Financial Statement feature enables the building of a custom reporting structure and mapping ledger accounts or dimensions to the reporting structures. In financial statements, users can map:

Ledger accounts

Financial dimensions

Combinations of the two

Introduction to Microsoft Dynamics ® AX 2009

The Financial Statement feature is a powerful reporting tool that explores financial figures depicted in a company context and from a business perspective. For example, financial row structures can be created to focus on cost accounts and the cost accounts can be drilled by:

Cost centers


Combinations of the two

With the financial statement reporting feature, users can create many different financial reports to comply with legal requirements and international accounting standards such as the following:

Balance sheet

Income statement

Cash flow statement

Financial statements are fully compatible with Extensible Business Reporting Language (XBRL). The taxonomies can be converted into row definitions ready to map. This enables the generation of XBRL output from the financial statement.

Financial Management - Multicurrency

When transactions are made in several currencies, it is a time-consuming and error-prone task to reconcile fluctuations in relative currency value. Microsoft Dynamics AX 2009 manages the following two currencies:

Originating currency

Base currency

Microsoft Dynamics AX 2009 makes it possible to track all transactions in both currencies and automatically calculate and update realized and unrealized gains and losses.

The detailed currency information is stored in the subsidiary ledgers in addition to the general ledger.

Financial Management – Printing Documents

When printing documents such as invoices or packing lists, you can use defined settings for the original or copy records in print management. These settings include the following:

Number of copies to produce

Multilingual document footer text

Print destination

Chapter 1: Introduction to Microsoft Dynamics AX 2009

An original or copy record contains the information that is used by print management to print the document. The record that is used to print a document determines:

The footer text for the document

The printer to use

How many copies to print

For example, to print three copies of the sales order packing slip, each with different footer text, you need to set up an original record and two copy records.

The print management setup information for each document type is defined in a hierarchical list and that consists of the following:




Combination of these three

When a document is generated, it is printed according to the effective original record and effective copy records. An effective record can be inherited from a higher level in the hierarchy or created as a new record for the current level in the hierarchy, or it can override an inherited record that has the same name.

Financial Management – Key Features and Benefits

Financial Management provides the following key benefits:

User-friendly, timesaving accounting

Fast and efficient reporting and analysis

Financial Management offers the following key features:

Intuitive and adjustable layout


Financial statements

Multi- and second-currency management

Transaction validation and transaction approval

Intercompany accounting and consolidation

Multiple budgets

Fixed assets

Credit assessment and credit control

Electronic payment

Handling of drafts/promissory notes

Introduction to Microsoft Dynamics ® AX 2009

Collection letters and interest calculation

Report generator

Audit trail

Print management

Cost Accounting – Overview

Cost Accounting in Microsoft Dynamics AX 2009 is an internal cost flow analysis tool that enables companies to analyze fixed and variable costs for a better representation of the costs incurred and their relation to business volumes. With Cost Accounting, companies can measure in detail the economic performance and profitability of their business operations and business units.

Cost Accounting in Microsoft Dynamics AX 2009 lets companies run multiple concurrent versions of cost calculations analysis for actual, pre-planned, “what if,” or future considerations based on allocation schemes.

Companies can build multilevel structures by mapping cost categories and analytical dimensions. This structure can be used as a basis for aggregated costs allocation in the allocation scheme. The chart of accounts can be mapped through cost categories which help companies convert and interpret financial information into costing data.

With Cost Accounting, companies can calculate future planned cost flows (Flexible planning) and cost rates based on budgets (Flexible budgets), helping to predict the effect of business decisions on the bottom line or to set the goals and benchmarks for the coming periods.

Cost flow analyses can be performed based on budgets and the results can be used to measure variances against actual costs. With the flexible budget facility, companies can increase their understanding of deviation to plan by identifying variance that relates to fluctuation in activity volume.

Cost Accounting – Key Benefits

Cost Accounting provides the following key benefits:

Analyzes costs relevant to a company's business and business model

Accesses powerful allocation schemes matched to a company's business mode

Plans and calculates future cost based on budgets and forecasts

Cost Accounting – Key Features

Cost Accounting offers the following key features:

Flexible mapping of cost accounts into cost categories

Dimensions setup for cost accounting

Chapter 1: Introduction to Microsoft Dynamics AX 2009

Service categories for quantity management, integrated as cost categories

Flexible reporting system featuring multiple line definitions and structural hierarchies

Integrated cost accounting journals for booking internal cost accounting transactions on cost amounts or quantities

Flexible and versatile allocation and distribution capability with multiple parallel calculation versions

Specific budgeting capability, linked to ledger budget

Development of budgets using existing or sub-budgets

Open dimensions enabling allocation through debit/credit from one dimension type value to another

Internal cost allocation enables companies to allocate costs through cost rate

Extended cost accounting budget and forecasts features

Flexible cost calculation capability enables cost planning based on capacity usage, and measures deviation of the target cost according to actual capacity usage and actual costs

Definition of accrual schemes and accrual costs

Marginal cost calculation

Expense Management – Overview

Microsoft Dynamics AX 2009 Expense Management helps companies manage, track, and reimburse travel and entertainment expenses.

Expense Management has a strong value proposition for organizations with discretionary spending. Travel and entertainment expenses are generally a company's second largest controllable expense. To help curb these costs, Expense Management provides a mechanism to define and apply expense policies, in addition to flagging and reporting abusers of the policies. Additionally, automating the entry and reimbursement of travel and entertainment expenses reduces processing costs versus manual entry.

Expense Management is tightly integrated with other Microsoft Dynamics AX 2009 modules, such as Project accounting, Accounts payable, and General ledger.

Because of integrated workflow capabilities, users can define approval authorities based on employee hierarchies, user groups, users, or rules. Submitters and approvers can also be alerted to various activities during the approval process.

Expense Management provides defined rules, expense policies, which employees must follow when entering, submitting, or approving expense reports. Implementing expense policies can help companies manage expenses effectively and monitor travel and entertainment expenses.

Introduction to Microsoft Dynamics ® AX 2009

Expense Management provides the following actions to be taken if expenses are exceeded:

Flag the transaction and display a message to submitter and approver, but enable submittal and approval.

Flag the transaction and display a message to submitter and approver, but do not enable submittal.

A per diem is a daily allowance provided to an employee who is traveling for business. Expense Management allows you to define the per diem amount for hotel, meals, and other incidental expenses for each location. The location specified can be as general or specific as wanted and can reference a city, county, region, or country.

Users can easily access Expense Management functionality from Enterprise Portal. This provides a robust user interface that is available to all employees, not only those who use the Microsoft Dynamics AX client.

Users can create, delete, or modify expense reports and cash advance requests online from any point of the world; or even define other users to enter expense reports on another's behalf.

Expense Management – Key Benefits

Expense Management provides the following key benefits:

Analyzes and tracks a company's travel and entertainment expenses

Plans and calculates future expenses and reimbursement amounts for various locations

Creates multiple expense reports online

Defines delegates for generating expense reports and managing relative delegate information

Expense Management – Key Features

Expense Management possesses the following key features:

Setup of various payment methods for travel and entertainment expenses

Categories for tracking specific types of expense transactions

Record track of the per diem rates, mileage rates, and corporate card numbers by employee

Workflow configurations

Alerts to submitters and approvers about various activities during the approval process

Definition of expense reasons for generating reports

Expense policy system

Chapter 1: Introduction to Microsoft Dynamics AX 2009

Import of credit card transaction files

Allocation of per diem amounts

Statistic groups to combine various expense categories for reporting

Online printing of expense reports and cash advances

Supply Chain Management

Supply Chain Management in Microsoft Dynamics AX 2009 helps businesses manage materials, information, and transactions as they move through the process from the vendor to the manufacturer, and then to the retailer and to the end customer. The three goals of supply chain management are as follows:

Reducing inventory

Lowering costs

Improving time-to-market

Users can find the balance required to achieve those goals by combining the capabilities of the Internet and ERP. The supply chain enables direct connection between customers and vendors using the Internet. Through personalized Web portals, customers and vendors can interact directly with the company's ERP data, reducing the time and costs associated with sales, purchases, and deliveries. Everyone relevant to the process has access to a shared and accurate overview of the supply chain data, and all the information is completely integrated and automatically updated throughout Microsoft Dynamics AX 2009.

Introduction to Microsoft Dynamics ® AX 2009

SCM involves a highly interactive process of controlling, planning, and implementing all the activities associated with moving goods from the raw material stage through to the end user stage, with the lowest cost and the highest quality. Regardless of whether a company operates with a single production/distribution site, or multiple sites in different geographical locations, the system must capture and reflect the elements which will enable optimal and appropriate decision making and monitoring throughout.


The multisite functionality introduced in Microsoft Dynamics AX 2009 enables you to work with multiple sites in a single legal entity.

Before activating multisiting, customers must first analyze their business requirements and determine how to use the multisite functionality. Make sure that you create a reliable working model of the company's operational sites and processes before implementing this feature.

Chapter 1: Introduction to Microsoft Dynamics AX 2009

For example, there is a company with three operational sites, located in different states in the United States. The relationships of the sites to each other, the flow of goods, the various work centers, warehouses, and so on, must be thoroughly understood before multisite is activated.


By using information stored in Microsoft Dynamics AX 2009, users can do the following:

Analyze the relationship between costs and sales, including specific details, such as sales on:


Different item groups


Individual items


Customer groups


Individual customers

Accurately monitor revenue across the company, based on factors such as:






Customer group


Time period

Introduction to Microsoft Dynamics ® AX 2009

Supply Chain Management – Key Benefits

Supply Chain Management provides the following key benefits:

Multisite inventory storage and tracking

Synchronized, real-time product movement

Improved order fulfillment and accuracy

Reduced process inefficiencies and excess inventory

Enhanced workload balancing and planning

Compliance with industry standards

Reduced transportation costs

Supply Chain Management – Key Features

Supply Chain Management offers the following key features:

Multisite Functionality - Associates all inventory transactions to the relevant sites in different geographical locations in a single company.

Optimized Multichannel Fulfillment - Causes maximized inventory utilization and real-time order management.

Cross-Docking Capabilities - Enables same-day order fulfillment and reduces costs.

Business Process Synchronization - Enables immediate, online transfer of documents between suppliers, logistics operations, transporters, customers, and the manufacturer.

Facility and Labor Optimization - Maximizes space usage and reduces order cycle time, product damage, and replenishment costs. Provides data to monitor and measure results.

Performance Management - Enables measurement and action on key performance indicators.

RFID Functionality - Increases efficiency from receiving through put-away, and enables creation of RFID-enabled tags at the pallet, case, or item level.

Constant Replenishment - Supports min/max inventory levels on a constant basis, therefore accommodating smaller orders.

Integrated Transportation Functionality - Considers multimode and multiroute shipment options. This causes more efficient movement through the whole supply chain.

Quality Control - Monitors the quality testing requirements; manages non-conforming products and items and tracks and resolves customer or vendor problems.

Enhanced Costing and Inventory Valuation - Improves the performance and accuracy of costing and inventory valuations.

Chapter 1: Introduction to Microsoft Dynamics AX 2009

Warehouse Management – Overview

Warehouse Management provides all the functionality required to guarantee the warehouse is operating effectively and efficiently. Warehouse management includes capabilities for the following:

Receiving items from both external suppliers and internal sources

Structuring item storage

Picking items before shipping

Packing items for shipment or transfer

Dividing warehouses into zones with different storage purposes

Associating one or more warehouses to different sites

Warehouse Management is completely integrated with other areas of functionality in Microsoft Dynamics AX 2009, including Logistics, Inventory Management, and Production.

Warehouse Management – Key Features and Benefits

Warehouse Management provides the following key benefits:

Facilitates efficient internal and external transfers

Optimizes warehouse storage area

Reduces operational costs such as warehouse size and labor

Responds quickly to customer demands

Warehouse Management offers the following key features:

Serial number and batch number control

Item registration and placement

Multiple inventory dimensions

Location control

Arrival overview

Shipment reservation

Consolidated picking and delivery


Pallet transport

Warehouse zones and hierarchy system

Introduction to Microsoft Dynamics ® AX 2009

Trade and Logistics – Overview

Trade and Logistics provides universal sales and purchasing functionality in addition to inventory management tools. These operations are fully integrated with other Microsoft Dynamics AX 2009 modules and support other Supply Chain Management and Production functionality.

Trade and Logistics encompasses sales order processing, purchase order processing, and inventory management, in addition to elements of distribution and warehouse management.

The Intercompany functionality saves time and money because it enables several subsidiaries or distribution centers to trade internally within one Microsoft Dynamics AX 2009 installation. When using Intercompany functionality, you do not have to create manual sales or purchase orders, and you have more control and visibility regarding transfers.

Trade and Logistics – Sales Order Processing

Selling, delivering, and invoicing products are necessary for every business. Microsoft Dynamics AX 2009 automates these processes.

Companies can use the sales order to deliver and invoice goods to the customer, to print quotations, order confirmations, picking lists, packing slips, and invoices. As part of this process, Microsoft Dynamics AX 2009 does the following:

Calculates applicable taxes and fees

Checks stock

Verifies credit for the customer

Identifies and highlights obstacles

The system guarantees that the customer obtains the appropriate price based on trade agreements, quantity discounts, and specials. If items are out-of-stock, on- screen messages offer suggestions and shipment information. Products can be reallocated from other orders for special customers.

The system tracks items that are back-ordered, and then initiates shipment when items arrive from production or from the supplier. Throughout the sales order process, Microsoft Dynamics AX 2009 captures all the information needed for statistical analysis and commission payment.

Sales Order Processing functionality supports tasks related to the following:


Orders, including:


Multiple Ship To


Direct vendor-to-customer shipping


Enhanced delivery date control

Chapter 1: Introduction to Microsoft Dynamics AX 2009




Picking lists

Packing slips


Credit notes


Cash on delivery

Commissions and taxes

Statistics and reports

Throughout the system, sales orders can be entered in foreign currency. All posted transactions are transferred to domestic currency and hold information about the amounts in both domestic and foreign currency.

Trade and Logistics – Purchase Order Processing

Purchase Order Processing tracks products being ordered and maintains vendor information. It updates inventory and the appropriate financial accounts when purchases are ordered, received, and invoiced. In addition, because of the recent enhancements, a company can invite suppliers to bid on specific products or services and issue a request for proposal (RFQ) to multiple vendors. The RFQ replies can then be recorded and transferred to specific purchase orders.

Purchase Order Processing supports the following purchase related tasks:

Issuing requests for proposal (RFQ)

Creating the purchase order

Entering vendor and order information

Entering items or services to be purchased

Posting the purchase order, packing slip, receipts list, and invoice

As part of this process, the system does the following:

Calculates applicable taxes, fees and charges

Updates stock values

Verifies credit for the vendor

Identifies and highlights obstacles

Updates Accounts payable and General ledger

Guarantees that prices are calculated using trade agreements, quantity discounts, and specials

Introduction to Microsoft Dynamics ® AX 2009

Generally, Purchase Order Processing supports tasks related to the following:

Purchase requisitions

Orders, with direct vendor-to-customer shipping




Packing slips

Receipt lists



Supplier schedules




Throughout the system, purchase orders can be entered in foreign currency. All posted transactions are transferred to domestic currency and hold information about the amounts in both domestic and foreign currency.

Trade and Logistics – Inventory Management

Inventory Management is central to Microsoft Dynamics AX 2009 Trade and Logistics functionality. Inventory information is linked to the following areas in Microsoft Dynamics AX 2009:

General ledger

Accounts receivable

Accounts payable

Materials and resource planning (MRP)

Human Resources

Projects management

Inventory Management manages the cost and quantities of items purchased and sold. This functionality supports retail businesses with merchandise inventory and manufacturing companies with finished goods, materials, and work-in- progress from the physical and financial standpoint.

The system tracks inventory movement and enables computation of costs of goods sold. Multiple units of measure can be used for purchasing, selling, stocking, and pricing items. Inventory movements are tracked with quantities and costs. This causes controlled inventory.

Chapter 1: Introduction to Microsoft Dynamics AX 2009

Note that with the multisite functionality activated, you can set up a preferred vendor for every item and use site specific prices for items.

When processing a sales order, Microsoft Dynamics AX 2009 does the following:

Calculates what is that is required to fill the order.

Checks physical inventory.

Produces necessary production, purchase, or transfer orders automatically.

Calculates statistics on sales and purchases.

As part of managing physical inventory, Inventory Management performs the following actions:

Inventory tracking - Tracks any item in inventory through inventory dimensions, configuration specifications, and lot ID.

Master Planning - Sets up the system to determine what is required to fill an order when it is received.

Automated orders - Creates necessary production and purchase orders to satisfy customer orders.

Reservations - Puts items on hold for production or sale, guaranteeing their availability for a specific order.

Sales orders and purchases - As they affect inventory, they are reflected in inventory.

Trade and Logistics – Financial Analysis

Also, as part of the inventory management process, Microsoft Dynamics AX 2009 supports these financial statistics:

Inventory values can be calculated at any time.

Inventory turnover amounts and rates can be calculated at any time.

Quantity of items sold can be calculated at any time.

ABC classifications enable analysis of which items are most profitable from a sales perspective, and the cost of carrying the item in inventory.

Sales and purchasing forecasts can be produced by using quantities sold and planning estimates.

Budgets can be calculated using purchasing trends.

Introduction to Microsoft Dynamics ® AX 2009

Trade and Logistics – Key Features and Benefits

Trade and Logistics provides the following key benefits:

Sales, purchase, and inventory functionality is fully integrated with other elements of Microsoft Dynamics AX 2009 modules.

Reserving inventory functionality is linked to sales and production orders.

Financial data and statistics related to sales, purchasing, and inventory are current and available.

Picking lists functionality creates picking lists only for available items, and at the same time considers customer service priorities.

Direct shipping from vendor to customer expedites delivery.

Trade and Logistics offers the following key features:

Integrated sales processes and purchase processes

Master planning is integrated with purchase, production, and transfer order processes.

In sales order processing, if items are out-of-stock, on-screen messages offer suggestions and shipment information.

Sales and purchase orders can be entered in foreign currencies.

Multisite functionality

Master Planning – Overview

Master Planning uses data provided by the Microsoft Dynamics AX 2009 Trade and Logistics, Projects, Work Centers, and Production Series to do the following:

Minimize inventory carrying costs

Optimize product flow from suppliers through production to customers

Run intercompany transactions

Satisfy customer demands

Improve overall business performance

The finite and infinite capacity and material planning helps companies do the following:

Project long-term needs

Foresee fluctuations in demand

Adjust their plans accordingly

Chapter 1: Introduction to Microsoft Dynamics AX 2009

The shop floor can be managed more efficiently by reducing manual entry and web-enabling employee information such as time registration. By collecting and analyzing production-related information, such as work hours and production activities, companies can improve cost control.

Gantt charts are available in Master Planning to provide graphical illustrations of schedules related to a project for:

Planning tasks

Coordinating tasks

Tracking tasks

Gantt charts can be used, for example, to assess the consequences of staff rotations visually, through the graphic tool in a simple manner. Gantt plans can be defined to help envision the production flow from one computer to another.

Master Planning – Planning Across Multiple Sites

Master Planning can be run across all sites in a multisite production and/or distribution environment. This process is based on the following:

BOM and route version

Item coverage by site/warehouse/inventory

Dimension specifications for specific coverage dimensions

Explosion of demand, according to the dimensions (site, warehouse, inventory) set up for each item and route specified for the site

Introduction to Microsoft Dynamics ® AX 2009

In the example, you can see a simplified picture of how requirements are calculated for each site when multisite is activated for the company. In reality companies produce many different items or parts, and material requirement planning (MRP) can mean calculating requirements for thousands of BOM items and components. Company A has two sites: Site 1 and Site 2 that operate under a single Chart of Account (COA). The item configuration at each site is different, and the BOMs are site-specific.


Master Planning – Forecast and Master Scheduling

The Forecast Scheduling feature in Master Planning uses product forecasts to project long-term needs for materials and capacity. With Forecast Scheduling, companies can do the following:

Foresee fluctuations in demand and adjust their plans accordingly.

Simulate different product sales scenarios to obtain reliable pictures of gross demand. This provides a basis for negotiating better agreements with subcontractors and for fine-tuning production capacity.

Forecast more accurate production plans to eliminate stockpiling inventory and still meeting customer delivery demands.

Chapter 1: Introduction to Microsoft Dynamics AX 2009

The Master Scheduling feature provides an overview of short-term purchase, production, and resource requirements based on existing orders, forecast scheduling, or both. This process streamlines the whole production process. Master scheduling causes planned production, purchase, transfer of intercompany orders, and net requirements.

Master Planning – Intercompany Planning

Companies that need a quick overview of demands and supply in the chain of internal companies can benefit from using Master Scheduling to create a cross- company coverage plan.

Master Scheduling between multiple companies is possible in Microsoft Dynamics AX 2009 under the condition that all companies are running in the same database. This functionality enables the chain of companies to do the following:

React to a demand from the selling company

Transfer to a purchase order

Change the purchase order into a sales order in the related company

Transfer the sales order into a purchase order in another related internal company

Order line explosions and planned order functionality are fully functional between internal companies and part of the process can be automated to make transfers and scheduling easy and quick.

Master Planning – Key Features and Benefits

Master Planning provides the following key benefits:

Minimizes lead times, controls processing costs, and guarantees maximum on-time deliveries.

Provides a detailed overview of inventory which assists in purchasing or producing the appropriate products at the appropriate time.

Provides continual tracking, evaluating, and re-planning based on changing demand for materials and capacity.

Master Planning offers the following key features:

Forecast scheduling using product forecasts

Finite/infinite scheduling

Sales order explosion

Futures and action messaging

Support of multiple plans for forecast and master scheduling

Introduction to Microsoft Dynamics ® AX 2009

Support of master scheduling for intercompany

Support of master scheduling across multiple sites

Production – Overview

When selecting an ERP system, manufacturers are faced with a dilemma, where they can do one of the following:

Select a solution that has strong manufacturing functionality at the expense of general business functionality

Purchase a separate system, such as financial management, and integrate the two

Microsoft Dynamics AX 2009 offers a solution with the full range of functionality in one system. By using Microsoft Dynamics AX 2009, manufacturers can do the following:

Manage the whole production process from availability of raw materials to the shipment of finished goods to customers.

Maintain multiple production sites over different geographic locations and run them by a single Microsoft Dynamics AX company.

Use the full benefit of a comprehensive production management solution, when combined with the Work Center functionality.

Expand on the foundation of the Microsoft Dynamics AX 2009 Financials, Trade and Logistics, and Master Planning functionality.

Extract data from anywhere in the whole production system. This enables immediate important managerial decision making information.

View a simplified overview of even the most complex production processes. This provides high-level information that is easy to access.

Production – Across Multiple Sites

Production includes features that support a company's ability to maintain a variety of production sites distributed over different geographic locations. The production sites must be contained in a single legal unit, that is, they must be run by the same defined Microsoft Dynamics AX company.

With a new dimension, the production unit, companies can now structure and assemble all their resources and data in groupings that are relevant to each site or company.

Chapter 1: Introduction to Microsoft Dynamics AX 2009

The production unit provides the following:

Reflects the physical layout of resources and data particular to each site or company.

Is unique for each site or for each company.

Simplifies BOM maintenance and identification of resources at each site or company.

Is used to filter information (in key forms), to enable the user to print documents or view analytical data for each site or company.

Is not stamped on any inventory transactions.

The following illustrates one site that has two production units.


A site dimension represents the physical locations where a company has set up operations. It groups business resources (such as warehouses and production facilities) that exist at the site, and that share the same interrelated transactions. A site is implemented as an inventory dimension to guarantee that it is stamped on all transactions, and to maximize leverage of the existing framework. The site dimension is mandatory when multisite functionality is active.

Companies establish logistic operations at multiple sites for some of the following reasons:

Different geographic markets

Lower overhead costs

Introduction to Microsoft Dynamics ® AX 2009

Proximity to raw materials

Convenient cost-effective transportation


warehouse hierarchy system can be set up to associate one or more warehouses


a particular site.


The illustration shows the multisite and warehouse hierarchy of the Contoso, Ltd. Company. Site 1 has a general warehouse (GW) and two additional warehouses (WH-A1 and WH-A2). Site 2 has a main warehouse (MW) and one additional warehouse (WH-B1). The last site, Site 3 contains only one warehouse (WH-C1).

Production – Key Benefits

Production provides the following key benefits:

Real-time insight into manufacturing processes

Manages stock more effectively

Manages production more efficiently and profitably, and at the same time reduces overall costs

Supports production at multiple sites

Centralizes information about productions

Customizes your production plans as situations occur

Determines the best fit between a work center and a specific operation

Chapter 1: Introduction to Microsoft Dynamics AX 2009

Saves valuable time by selecting the next best alternative resource for a production

Gets an overview of all productions

Selects the best route for an operation on a given day

Controls resource use; makes sure a resource is available when needed

Obtains a complete overview of the current status in your production environment

Production – Key Features

Production offers these key features:

Real-time monitoring of work-in-progress (WIP)

Master Scheduling

Multisite production support

Real-time information and instant calculations

Creates production order directly from a sales order line, with automatic selection in the valid date and quantity ranges


Phantom BOM

Configurable BOMs, selected by relevant date and quantity

Advanced, flexible, and detailed scheduling

Bottleneck scheduling

Available-to-promise (ATP) functionality

Gantt planning functionality with ability to do drag-and-drop rescheduling

Calculation of route scrap during production estimation

Uses alternative resources for an operation in a scheduling conflict

Ability to track the setup job or the process job per operation

Flexible routing with simple or complex routes

Manage primary and secondary operations

Production progress and overview

Forward and backward scheduling from various dates

Detailed tracking of cost related to resources and throughput

Uses mandatory combination of the date interval and the quantity interval in selecting the active versions of the BOM and routing

Suggestion of changes to BOMs and Routings based on quantity (quantity-depending BOMs and route versions)

BOM and route planning in the multisite environment

Introduction to Microsoft Dynamics ® AX 2009

Shop Floor Control – Overview

Shop Floor Control provides the tools to manage personnel, materials, and processes by collecting and organizing data related to time, attendance, and materials.

Shop Floor Control is a fully integrated tool for collection of the following:

Clock-in times

Clock-out times

Production data

Based on this data, the pay foundations for each employee and the cost prices on registered jobs are automatically generated.

Shop Floor Control, when it is used with the Microsoft Dynamics AX 2009 Production or Project series, helps companies benefit the most from their production environment. It is also good for any business that requires efficient time registration.

Shop Floor Control collects and analyzes production-related information such as work hours and production activities for improved cost control.

Absence registration in Shop Floor Control is integrated with the Microsoft Dynamics AX 2009 Human Resources module. Transactions created in Shop Floor Control can be transferred to absence journals in Human Resources.

Shop Floor Control – Registering Tasks, Materials, and Time

Registration of tasks, materials, and time used can be done by using bar codes which are automatically printed on all relevant production and project reports. Shop Floor Control supports both portable computers and industrial terminals as registration units:

From a computer, registration is online, and each computer runs a Microsoft Dynamics AX 2009 client.

When registering from an industrial terminal, an online/offline environment enables exact updating/validation as long as the system is online, yet it will also let users work offline and synchronize with the main database when they go back online.

Chapter 1: Introduction to Microsoft Dynamics AX 2009

Shop Floor Control – Configured Registration Forms

In Shop Floor Control, registration forms can be configured to comply with the needs of the company, department, or employee. Some of the benefits of this feature are as follows:

The employee views only the required information

Less input is needed from the employee, this causes:


Less time that must be spent on registration


Reduced risk of error

Supervisors and managers can use the registration forms to access notice boards to send messages to specific employees. The notice board can be monitored to determine whether messages have been read.

Shop Floor Control – Key Features and Benefits

Shop Floor Control provides the following key benefits:

Reduces manual entry

Manages personnel and production processes more efficiently online

Saves time handling employee hours and attendance

Shop Floor Control offers the following key features:

Absence registration integrated with Human Resources

Collects employee hours and attendance

Records absences and flexible time

Keeps track of job registration

Fast and flexible payroll generation

Supports setup by site

Product Builder – Overview

Production companies today face many complex and challenging demands. They must be able to adjust their product range quickly and supply their customers with exactly what they want.

Product Builder simplifies and streamlines ordering, planning, and producing customized products, helping companies to obtain more orders and increase their customer loyalty.

Introduction to Microsoft Dynamics ® AX 2009

Product Builder – Flexible Product Models

With Product Builder, flexible product models can be created manually or using a wizard. Through a comprehensive series of menus and options, companies can define each product's configurable options.

Microsoft Dynamics AX 2009 users can then use the options in the product model to fill in the unique requirements for the customer's order. Because Product Builder is integrated with Master planning, Production, sales and purchasing, updates to products, prices, and lead times are automatically reflected across the system. This gives customers up-to-date pricing and delivery information based on their selections.

With Product Builder, manual entry is minimized. Employees select from predefined values. Room for error is reduced significantly and valuable time is saved. System adjustments are also automatic.

Product Builder makes it possible for production and sales staff, in addition to customers, to configure complex products through a Windows client or the Web.

Product Builder – Key Benefits

Product Builder provides the following key benefits:

Reduces costs and time associated with the production design process

Increases cooperation between sales, production, and purchasing

Enables customers and vendors to configure and order their own products

Easy to use system that adapts to the needs of customers and employees

Product Builder – Key Features

Product Builder offers the following key features:

Immediate item configuration based user input

Generate specific bills of material for each configured item

Create production-specific routes and job cards for each configured item

Incorporate facts from any Microsoft Dynamics AX 2009 table into the product models

Minimal maintenance

Facilitate divergent national standards

Fully integrated with Microsoft Dynamics AX 2009 sales quotations and orders, purchase orders, project quotations, production, and inventory items