Currency and Exchange Rate Setup

Accounting Currency
Reporting Currency
Enable a Currency for Currency Conversion the system will automatically convert
transaction amounts in grids using the exchange rates in the lower pane.
Changing the Display Currency you can display financial information in a form or report
using a currency other than the ledger accounting currency
Set Rounding Options
Currency Gender
Create Exchange Rate Types Exchange rate types are a grouping that allows different
exchange rates for two currencies. Examples include Buy, Sell, Spot, and Budget
Create Currency Exchange Rates A currency pair can only exist once and entering a
reciprocal pair is not supported in the the system
Create Revaluation Accounts Revaluation processes will generate unrealized gain/loss
amounts where the settlement process will generate realized gain/loss amounts .
Quotation unit

Periods and Fiscal Year Setup

The fiscal year in Microsoft Dynamics AX can be:
Set to any length
Divided into any number of periods
Shared across multiple legal entities
Each period (at the ledger level) can be:
Closed completely or put On Hold to block transaction postings
Set to enable selected users to continue an update of one or more Modules
Support multiple fiscal calendars for each legal entity.
For example: Fixed assets may require two calendars one for auditing purposes and one
for tax purposes. Having multiple calendars allows you to run parallel depreciations.
In Oracle there is concept of Asset Books for this purpose, while in dymics there is a concept
of separate periods for tax etc.
The period types are defined as follows:
Opening the period can be used to record opening balances from the previous period.
Operating the period can be used to record accounting transactions.
Closing the period can be used to record general ledger transactions for closing a fiscal
period.

Date Intervals
Create and manage date intervals that can be used in financial statements and reports. Date
intervals allow you to create dynamic dates. When you use date intervals, you can set up
predefined periods when you run financial statements. Date intervals can also be used when
setting up an allocation rule.

Reason Codes

Reason codes are standardized codes that can be used in various transaction types or
changes to field values to provide background data about the transaction. For example,
auditors or managers frequently want to see reasons recorded for various transactions such
as reversals.
Reason codes can be used with the following:
General ledger
Accounts payable
Accounts receivable
Bank
A reason code can be selected in the following General ledger entry processes:
General journal entry
Process allocation requests
Elimination proposal
Consolidation, Online periodic
You can delete a Reason code only if no account types are associated with it. If the Reason
code has been
selected for use from another module, clear the other Account type check boxes or view the
Reasons form from Basic to clear all Account type check boxes.

Financial Dimensions
detailed description of a transaction
Simplify the accounting process when you enable detailed analysis without the creation of a
detailed Chart of Accounts
Are defined to analyze and classify financial transactions as follows:
o Financial transactions usually are organized according to voucher and account number.
o Additional grouping and classification options are available when you assign several
dimensions to transactions.
Enable you to view the data file from different perspectives to improve the effectiveness in
tracking figures across accounts.
Are copied to transactions automatically

Financial Dimension Sets

Financial dimension sets are used to determine how reports and inquiries related to the
general ledger are
rendered.

Period Allocations
Allocation is the process of distributing monetary amounts to one or more accounts or
account and dimension combinations.

Ledger Allocation Rules