Malaysia to retire 1 sen. How to handle it in Dynamics AX?

Goodbye to 1 sen. Malaysia is not to use 1 sen anymore at 1st April 2008. The "rounding mechanism" that would be used for all over-the-counter transactions like retails industry. It means that all payment totals will be rounded up or rounded down to the nearest of five sen.
For example, if the total amount to be paid is RM63.01 or RM63.02, it would be rounded down to RM63; if the total is RM63.03 or RM63.04, it would be rounded up to RM63.05.

The table below illustrates how the rounding mechanism works.

The above rounding mechanism will be fully implemented at 1st April 2008. Hence, some of the Dynamics AX consultants will seeking for the solution on how to handle the 1 sen scenarios. In this article, I will try to give you a short answer and explain on the solution.
From my point of view, firstly we have to re-configure the setting in exchange rate for RMY currency.

The screenshot below illustrates the setting in exchange rates form.

The following is probably over simplistic but to me there are the reason behind the setting.

After finished the above setting, you may get the following result once create the transaction.
System will automatically round-up the RM63.03 amount to RM63.05.

Frequently asked questions when implementing GST in Dynamics AX

Before going to implement GST in Dynamics AX, we have to make clear of the GST procedures and the process behind them. Here are my findings on the procedures of implementing GST in Dynamics AX, this is a helpful guideline for those new to GST.

Procedures of GST
1. Submission
a. Usually most businesses will submit the form F5 either every month or quarterly. Dynamics AX provides a comprehensive sales tax report F5 to automatic calculate the tax to be paid to IRAS or refunds claimed.
The formula as below:
Total Input Taxes – Total Output Taxes

b. At this point, you may run sales tax payment periodic job to let system calculate the tax payable and transfer to vendor account.

2. Refunds Claimed
a. If Total Input Taxes > Total Output Taxes, it mean GST we paid exceeds GST collected. The differences can be claimed from IRAS as a GST refund.

3. Payment
a. If Total Input Taxes <> Journals > Payments > Payment journal. Choose the IRAS and credit to
business’s cash or bank account.
ii. If not, then you should go to GL > Journals > General journal to post the double
entries, debit to Account Payable, credit to cash or bank.

4. Interest Charges – 5%
a. Using GL > Journals > General journal to debit GST interest, credit Accrual Account

5. Late Payment
a. Using AP > Journals > Payments > Payment journal to post the following entries:
i. Debit GST Accrual Account
ii. Debit GST (Account Payable) or Vendor account
iii. Credit Bank/Cash

Know more on Goods and Services (GST) in Dynamics AX or

Simple steps to set up GST in Dynamics Ax

Goods and Services (GST) in Dynamics AX

What is GST?
Goods and Services Tax (GST) is a tax charged on the supply of goods and services made in Singapore and on the importation of goods into Singapore. Here is a quick overview of GST and how to handle the GST by using Dynamics AX (formerly named Axapta).

Types of taxes
There are two types of taxes one is input tax, another is output tax.
Input tax is the provision from buying goods or services from GST-registered business or import goods into Singapore whereas output tax is that tax collected from customer.
After we have known the basic terms of GST and we could start to setting up the sales tax in Dynamics AX. There are a few things we need to configure such as sales tax calculation, settlement periods, sales tax authorities, item sales tax groups, ledger posting groups.

1. Sales Tax Calculation
The current tax rate in Singapore is 7%. Remember to define the rate in Sales tax code and associate to sales tax group and item sales tax groups. Of course you may need to maintain the rate according to the latest rate manually.

2. Settlement Periods
The GST legislation allows for two alternative tax periods, one is for three month another one for one month. If a non-profit has an annual turnover of $20 million or more they must elect to have a one-month tax period. Those below $20 million can elect either monthly or quarterly.

3. Sales Tax Authority
All the tax payment need to report to Inland Revenue Authority of Singapore (IRAS)

4. Ledger Posting Groups
You may set up the posting profile for GST transaction such as ledger account for Account Payable and Settlement Account.


a. Account Payable
- Outgoing sales tax that we collect on behalf of tax authority when we sell the goods to customers.
- For example, we sold item to customer with the subtotal $95, tax amount is $5. The ledger posting transaction as below:

- Ledger account DR ($) CR($)
=================================================
Customer account (Account Receivable) 100 (DR)
Account Payable 5 (CR)
Sales Revenue 95 (CR)

b. Settlement Account
- At the end of the sales tax settlement period for the sales tax authority, you can run the Sales tax payment periodic job. During this job, the amount that the company owes the sales tax authority for the period is transferred from this account to the sales tax authority's vendor account.

For simple ways to setting up Sales Tax or GST in Dynamics AX please refer to http://novprincess.blogspot.com/2007/12/how-to-handle-gst-in-dynamics-ax.html

AND

Frequently asked questions when implementing GST in Dynamics AX

Dynamics AX user friendly features

When we are doing any system demo, most of the time we will demonstrate an overview of functionality to any prospects in order to give them an impress and get familiar with our system.
Dynamics AX 4.0 provides a user friendly features that works like and familiar to Microsoft Office System such as Outlook, Excel and so on. That’s why most of the people will find this system ease to use and less learning curves to pick up the functionality.

The below information depicts those powerful features in Dynamics AX:

1
My Favorites:
Drag and drop the frequently used form or reports to easy access.
2
Navigation Pane:
It has same look and feel as other Microsoft Office System such as Outlook
3
Copy + Paste:
It can be copy and paste to Microsoft Excel, Word format
4
Filter:
There are three types of filter record methods:
1. Advanced Filter/Sort
2. Filter By Selection
3. Filter By Grid

The format is slightly similar to Microsoft Excel, just key in the keyword that you like to filter in any filter column.

When you click on the icon, a drop down searching criteria will be displayed as above. Then you may apply the criteria for filtering record purpose.



5
Alerts:
This provides users to stay informed on business condition; the alarm clock will be display at status bar.
6
Document Handling:
Allow users to attach note, image, file into any forms. For example, you may attach a map to a specific customer record to better keep track of customer information.
7
Global Search
Use this feature to search for information across the system.
8
Help File
Build in help file to assist users access the system.

With Dynamics Ax 4.0 user friendly features it will dramatically brings the positive impact on demonstrating system to any prospects.

AOS fails to start for Dynamics Ax 4.0 intallation

I have encountered an error from AOS service last few days as reintall the Dynamics Ax 4.0, the error message as below:

Could not start the Dynamics Server$01-Company1 service on Local Computer.
Error 100: Cannot create another system semaphore.

i intalled at the below environment:
• Windows XP Professional (SP2+)
• SQL Server 2005

At the meantime, i got some enquiries for expertise and tried my best to troubleshoot this error. Finally, i fixed it successfully. During the time of fixing this thing, i have got one solution from Microsoft website was telling me "Please try again later" for this "semaphore error".

What does it means for this "Please try again later"? There is no specific guideline on how to fix the error. It is very funny and inevitable guideline would turn a green line to solve the problem.

From my troubleshooting and research; this "semaphore error" is a general error indicating that the AOS cannot connect to the database for some reason. The following rules must be followed:

1. Check your database connectivity
2. Ensure the user has appropriate permissions to access the database files when running
the AOS service (normally NetworkService).This means that the following roles
should be assigned to the specific database
• db_ddladmin
• db_datareader
• and db_datawriter.
3. Ensure the user has enough rights to access the file server/folder

After you have setting up the permissions , now you may follow suggestion from Microsoft "Please try again later".

How to handle GST in Dynamics Ax

GST (Goods and Services Tax) is a kind of value added tax (消费税)that exists in a number of countries. there are Canada,Australia,Hong Kong, New Zealand, Singapore and so on.

Belive it or not, Malaysia is going to implement GST in which replacement of existing sales tax and services tax. however, the implementation date has to be confirm for annoucement.

Anyhow, have you ever asked yourself whether your system capable to handle this sales taxes? if your system is not designed based on the component-based articheture, you may need to modify the underlying system logic to adapt for the new features.

Good news for the ERP - Microsoft Dynamics Ax users because we do not need to make an changes if government going to implement this rules. As we know that Axapta has already provides the sales tax features in Finance module. It could be used for GST purpose too.

The following are the simple steps to setting up GST in Dynamics Ax :
========================================================
1. Firstly, go to GL -> Setup -> Sales tax -> Sales tax codes
- you need to create a new record namely GST (before that, you are required to setup the settlement period, ledger posting account),and click on "Value" button to define how many percent or amount to pay

2. Associate the debtor to this particular sales tax codes at Setup tab -> sales tax group

3. Create item sales tax group at GL -> Setup -> Sales tax -> Item sales tax group

4. After that, you have to define the sales tax codes which assciate with your item sales tax group to apply for the sale tax calculation at Setup tab.

5. Remember the sales tax calculation is define at sales tax code instead of item sales tax group.

6. Lastly, associate the item sales tax group to particular items.

7. The sales tax calculation will be effectived based on the combination setting by customer and item. No sales tax calculation if system do not meet the rules.


After finishing the sales tax setting, you may start your sales order for this particular customer and items. System will automatic generate the sales tax for your billing. It is simple and easy make your supplier chain process more efficient and reliable.

Please get more details on Goods and Services in Dynamics AX and Frequently asked questions when implementing GST in Dynamics AX

How does Dynamics Ax perform the inventory settlement for closing process

Table 1 show the details of issues and receipts transaction until the inventory closing process.



Table 2.1 & 2.2 depicts how the cost prices being updated into the system after the closing inventory process in which taking the average cost price from the inventory.




Table 3.1 & 3.2 depicts cost price coming from the inventory settlement accordance with the issues and receipts.



How does system perform the inventory settlement?
======================================

Settlement for SO1
---------------------
The below screenshot depicts the SO1 settlements details, there is no adjustment occurred during inventory closing. This is due to no cost variation to settle the issue against receipt. This issue directly gets the receipt from PO1.Please refer to table 3.1 for how the system calculates the inventory closing.




Settlement for SO2
--------------------
Click on Updates tab at item transaction screen to view the physical, financial and settlement details. It will show you the physically, financially inventory updates and adjustment has been made after the inventory closing process. The highlighted value is the invoice updated amount.




Inventory value for financially updated, for example the invoice updating amount. While issue invoice, the cost price is derived from average price from inventory that is:

PO1 remain 99 qty, $5, total: $495
PO2 remain 100 qty, $8, total: $800
Item cost price: ($495 + $800)/(99 + 100) = $6.5075
Issuing amount : ordered qty 105 * $6.5075 = $683.2875

Notice that there is an adjustment RM140.29 for SO2 happened while item consumption that matching issues with receipts after the inventory closing. Please refer to table 2.2 & table 3.2 for further details. (The issues amount RM683.29 – item consumption resulting from inventory closing RM543 = RM140.29)


Know more about GST in Dynamics AX ?