Hands-on Lab: Transactions and Accruals

HANDS-ON LAB 2: TRANSACTIONS AND ACCRUALS

Objectives
The objectives are: Create cost transactions Create service transactions Create accruals

Introduction
The objective of this Hand-on Lab (HOL) is to help you learn how to create cost transactions, service transactions, and accruals using the journals of the Cost accounting module in Microsoft Dynamics AX 2012.

Lab time: 30 minutes.

Prerequisite Knowledge
To successfully complete this HOL, you will need to have a general knowledge about the user interface in Microsoft Dynamics AX 2012. Additionally, you must have an understanding of using the principles and mechanics of Cost accounting management in Microsoft Dynamics AX 2012.

Cost Accounting Transactions and Accruals

Transactions created in Microsoft Dynamics AX 2012 Cost accounting are primarily created for corrective purposes while most postings are derived from General ledger, Production, or Project modules. In Cost accounting, you can work with two types of measurement: cost and quantity. For measuring costs, there are the following three types of transactions that you can create: Cost transactions These transactions are created to post internal calculations or corrections of postings coming from General ledger. Calculation transactions These transactions are used to distribute or allocate costs. Cost distributions are used to distribute costs that are posted with or without a dimension, to other dimensions, or on the same cost category. Allocations are used for allocating cost amounts that are posted with dimension to other dimensions, and on another cost category. Cost rate calculations are used to calculate cost rates from actual, budget, basic plan, flexible plan, and target costs
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Hands-on Labs Cost Accounting in Microsoft Dynamics AX 2012

Accruals These transactions are used for linear or assessed accruals of costs that are accounted one time a year, but must be allocated in several periods for the cost accounting purposes.

For measuring quantities, there are the following types of transactions that you can create: Service transactions These are used to correct production or project postings and to create internal service transactions. Calculation transactions These transactions are used to distribute or allocate service quantities. Service distributions are used to distribute service quantities that are posted with or without a dimension, to other dimensions, or on the same cost category. Internal cost allocations are used for allocating service quantities as cost amounts.

For more information about calculations, refer to HOL 3 Calculation. In this lab, you will practice creating cost transactions, service transactions, and accruals. Note that there is a dependency of this lab on HOL 1 Introduction to Cost Accounting and Setting Up Master Data Parameters. You must perform the setup in HOL 1 to be able to complete all step-by-step instructions in this lab.

Scenario: Creating Transactions and Accruals in Cost Accounting

Ken, the controller at the CONTOSO legal entity, must make corrections of postings from General ledger. Use journal name Cost2 - Cost center With offset to create the following cost transactions: Cost category Debit 401110 401110 Offset cost category Credit 401110 401110 Debit amount 100.00 USD 200.00 USD Dimension Offset dimension CostCenter CostCenter

CostCenter: Purpose: Site1

Step by Step: Create cost transactions

A cost journal is used to create and post cost transactions. Prior to creating a cost transaction, ensure that you have the necessary setup in the Cost2 journal name. Follow the steps below to verify the setup for the journal: 1. G to Cost accounting > Setup > Journal names. 2. Select the Cost2 journal name.

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Hands-on Lab: Transactions and Accruals

3. Ensure that the Purpose dimension in the Posting field group is selected.

FIGURE 2.1 JOURNAL NAMES SETTINGS Now you are ready to create a cost transaction. 4. Go to Cost accounting > Journals > Cost transactions to open the Cost transactions journal. 5. Click New to create a new journal line. 6. Click the AssistButton next to the Name field and select Cost2.

FIGURE 2.2 COST TRANSACTIONS JOURNAL

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Hands-on Labs Cost Accounting in Microsoft Dynamics AX 2012

7. Click Lines to open the Register Cost Transactions form. 8. Click New to create a new line. 9. In the Cost category field, type 401110. 10. In the Amount field, type 100. 11. In the Offset cost category field, type 401110. 12. Under the Dimensions field group, in the CostCenter field, type OU_4790. 13. Under the Offset dimensions field group, in the CostCenter field, type OU_4790. 14. Click New to create another line. 15. In the Cost category field, type 401110. 16. In the Amount field, type 200. 17. In the Offset cost category field, type 401110. 18. Under the Dimensions field group, click the AssistButton next to the Purpose field and select Site1. 19. Under the Offset dimensions field group, in the CostCenter field, type OU_4790.

FIGURE 2.3 COST TRANSACTIONS JOURNAL LINES 20. Click Post to post the journal lines.

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Hands-on Lab: Transactions and Accruals

Step by Step: Create service transactions
In this task, you will practice creating service transactions. Service transactions are used to post services (quantities) or make corrections to postings coming to Cost accounting from the Production and Project modules. Create service transactions using information in the table below. Service type Kilometer Kilometer Cost center OU_4789 Purpose Site1 Site2 Quantity 1000 500 Posting type Debit Debit

To create service transactions, follow the steps below: 1. G to Cost accounting > Setup > Journal names. 2. Select the Service1 journal name. 3. Ensure that the Purpose check box in the Posting field group is selected. 4. Go to Cost accounting > Journals > Service transactions to open the Service transactions journal. 5. Click New to create a new journal line. 6. Click the AssistButton next to the Name field and select Service1.

FIGURE 2.4 SERVICE TRANSACTIONS JOURNAL 7. Click Lines to open the Register service transactions form. 8. Click New to create a new line.
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Hands-on Labs Cost Accounting in Microsoft Dynamics AX 2012

9. Click the AssistButton next to the Service category field and select S-KM. The S-KM category which should have been created in HOL 1 Setting Up Master Data and Parameters. 10. In the Quantity field, type 1000. 11. Ensure that the Posting Type field is set to Debit. 12. Under the Dimensions field group, in the CostCenter field, type OU_4789. 13. In the Purpose field group, select Site1. 14. Click New to add another line. 15. Click the AssistButton next to the Service category field and select S-KM. 16. In the Quantity field, type 500. 17. Ensure that the Posting Type field is set to Debit. 18. Under the Dimensions field group, in the CostCenter field, type OU_4789. 19. In the Purpose field group, select Site2.

FIGURE 2.5 SERVICE TRANSACTIONS JOURNAL LINES 20. Click Post to post the journal lines.

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Hands-on Lab: Transactions and Accruals

Step by Step: Create accruals
In this task, you will practice creating accruals in Cost accounting. Accruals are used for the appointments of depreciations, interests, and rental. Prior to using accruals, you must create accrual schemes. Ken, the controller at the Contoso Entertainment USA Company, accrue year depreciation expense of tangible assets to the next 12 months. The transaction for each month should be posted at the beginning of the month. Use information in the table below: Field Cost category CostCenter Amount Accrual identification Description of accrual scheme Description Value 607200 Depreciation expense Tangible assets OU_4790 400.00 USD 12M 12 months Monthly depreciation

To create accruals, follow the procedure below. First, you need to verify that cost category 607200 has the cost center dimension selected. 1. Go to Cost accounting > Common > Cost categories. 2. On the Cost categories form, select the line with cost category 607200 Depreciation expense tangible assets and click the General tab. 3. Ensure that under the Transaction control field group, the CostCenter check box is selected. 4. Close the Cost categories form. Now post a transaction in the General ledger that will be accrued. 5. Go to General ledger > Journals > General journal. 6. On the General journal form, click New to create a new journal. 7. Click the AssistButton next to the Name field and select GenJrn. 8. Click Lines. 9. On the Journal voucher form, on the Overview tab, click the AssistButton next to the Account field and select ledger account 607200. In the same field, in the third position, type OU_4790 as the costing center. Value positions are divided by a hyphen. Note that when you click the AssistButton next to the Account field, the values available for selection depend on where you cursor is currently in the field (on which value position).

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Hands-on Labs Cost Accounting in Microsoft Dynamics AX 2012

10. On the General tab, in the Description field, type check. 11. In the Credit field, type 400. 12. In the Offset account field, type 170900. The costing center (OU_4790) after the second hyphen is filled in automatically. 13. Clear the Item sales tax group field.

FIGURE 2.6 JOURNAL VOUCHER 14. Click Post > Post to post the voucher. 15. Close the Journal voucher and General journal forms. Since the transaction has been posted in the General ledger module, you must import it into the Cost accounting module so that you can create accruals.

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Hands-on Lab: Transactions and Accruals

16. Go to Cost accounting > Periodic > Transactions > Process ledger transactions.

FIGURE 2.7 PROCESS LEDGER TRANSACTIONS BATCH JOB REQUEST FORM 17. In the From date and To date fields, enter the current date. 18. Click OK to process transactions. The Process production transactions batch job is used in a similar way to import transactions from the Production or Project modules. Create an accrual scheme that will be used for accruals. 1. Go to Cost accounting > Setup > Accrual schemes. 2. Click New to create a new record. 3. In the Accrual identification field, type 12M. 4. In the Description of accrual scheme field, type 12 months. 5. On the General tab, under the Cost posting field group, in the Description field, type Monthly depreciation. 6. Ensure that the Calendar type field is set to Calendar. 7. Click the AssistButton next to the Period frequency field and select Monthly. 8. In the Length field, type 12 for the number of months in the period. 9. Under the Posting field group, click the AssistButton next to the Posting frequency field and select Month.

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Hands-on Labs Cost Accounting in Microsoft Dynamics AX 2012

10. Ensure that the Posting date field is set to Beginning.

FIGURE 2.8 ACCRUAL SCHEMES 11. Close the Accrual schemes form. Now you ready to create accruals. To accrue year depreciation expense of tangible assets to the next 12 months, follow the steps below. 1. Go to Cost accounting > Journals > Accruals. 2. On the Accruals form, click the AssistButton next to Dimension field, and select CostCenter. 3. Select the voucher that you want to accrue with cost category 607200 and the amount of 400 U.S. dollars. 4. Click Create. 5. In the dialog box that appears, click the AssistButton next to the Accrual identification field and select the 12M identification code of the accrual scheme that you previously created.

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Hands-on Lab: Transactions and Accruals

6. Ensure that the Start date field is set to the current date.

FIGURE 2.9 CREATING ACCRUALS 7. Click OK. 8. Click the Accruals tab to verify the created accruals.

FIGURE 2.10 CREATED ACCRUALS 9. Close the Accruals form.

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Hands-on Labs Cost Accounting in Microsoft Dynamics AX 2012

Summary
The Transactions and Accruals hands-on lab demonstrated how to create the basic transactions in the Cost accounting module, namely, cost accounting and service transactions, using the corresponding journals. Additionally, the HOL has helped you learn how to create accruals for transactions. Accruals are based on accrual schemes which must be set up prior to creating accruals. Since transactions are mostly posted in other modules, to be able to work with such transactions in Cost accounting, you must import them using the batch jobs located under Transactions in the Periodic section of the Cost accounting module.

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Hands-on Lab: Transactions and Accruals

Test Your Knowledge

1. What is the primary purpose of the accruals functionality?

2. If a transaction has been posted in the General ledger module, what must be done to be able to create accruals for this transaction? ( ) On the Accruals form, a dimension related to General ledger must be specified on the Dimensions tab. ( ) The General ledger module must be specified for the cost categories used in the transaction. ( ) The transaction must be imported into Cost accounting with the help of the process ledger transaction batch job. ( ) The accrual scheme must be set up to allow transactions from other modules.

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Hands-on Labs Cost Accounting in Microsoft Dynamics AX 2012

Quick Interaction: Lessons Learned

Take a moment and write down three key points you have learned from this HOL. 1.

2.

3.

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Hands-on Lab: Transactions and Accruals

Solutions
Test Your Knowledge
1. What is the primary purpose of the accruals functionality? MODEL ANSWER This functionality is used for linear or assessed accruals of costs that are accounted one time a year, but must be allocated in several periods for the cost accounting purposes. 2. If a transaction has been posted in the General ledger module, what must be done to be able to create accruals for this transaction? ( ) On the Accruals form, a dimension related to General ledger must be specified on the Dimensions tab. ( ) The General ledger module must be specified for the cost categories used in the transaction. () The transaction must be imported into Cost accounting with the help of the process ledger transaction batch job. ( ) The accrual scheme must be set up to allow transactions f rom other modules.

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Hands-on Labs Cost Accounting in Microsoft Dynamics AX 2012

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