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

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

To fix this issue, check the following setups;

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

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

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

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

Happy Learning!

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

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

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

Click on Cancel;

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

Click ‘Yes’ & system cancel the packing slip.

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

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

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

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

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

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

Q. 1 Why is inventory closing performed?

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

Q.2 How does weighted average costing method works?

The same can be explained with the following data;

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

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

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

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

So COGS per item shall be 11.

For sold quantity of 2, posted COGS = 22.8

Recalculated COGS                                   = 22 (11*2)

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

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

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

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

Click on Cancel;

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

Click ‘Yes’ & system cancel the packing slip.

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

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

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

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

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

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

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

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

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

General ledger -> Setup -> Ledge

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

Creation of a New Product using Product Template in Ax 2012

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

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

• Click Ok

Now create new product

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

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

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

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

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

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

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

• Click ‘Ok’

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

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

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

Measuring Salespeople – Output or Input?

Pardon me while I rant.

One of the original
self-proclaimed experts

I just finished reading an article by a fresh faced, newly minted and self-proclaimed sales expert. Quite frankly, I don’t remember if she called herself a business coach, sales trainer, consultant or something similar, but her message stressed the point of helping salespeople in two ways:

1) Avoid measuring selling activities as these metrics frustrate new salespeople who struggle to get into the rhythm of setting appointments, making follow-up calls and learning about customers.

2) Measure sales output. Things like numbers of orders generated, gross margin and incoming requests for quotes.


I couldn’t believe my eyes. Terrible advice, possibly the worst advice since the neighbor told Noah to
expect a drought. And, the whole thing was prominently published in an online distribution magazine.

Let me explain why I this frustrates me. Coaching salespeople based on their output doesn’t work. Allow me to make a couple of analogies. 

 



If measuring outcomes worked for driving results:

• Football coaches would simply flash the score of last week’s game and say, “This week let’s score a few more points.” They don’t take that approach. Instead, the coach works on blocking, tackling, passing, play execution and a dozen other activities designed to produce a favorable outcome. The point is, they are focusing on the input to influence the final score.

• We wouldn’t need to talk to people about diet and exercise. Instead, we would issue them a scale and by weighing themselves enough times they would lose weight. Obviously, you can’t simply wish yourself thin by measuring your weight. Instead, weight loss is driven by input activities. Increase exercise and decrease calories for long enough and the scale’s output will show results.

Sales Managers can stack the deck for success
Focus salespeople on the activities you know will drive longer term success. These activities vary by industry, length of sales cycle and competitive elements in the market.  Most revolve around gathering customer information, interacting with the right customers, positioning for more business in the future and a half dozen other points. Along the way, minor actions become important; things like making appointments, writing proposals and touching the customer build to impact previously mentioned major activities.

Scorecarding
After you’ve thought through the activities key for success, it is crucial to prioritize them. Make sure the sellers know which activities are most important in a time crunch situation. Build a scorecard which allows the salesperson to objectively gage their own work and periodically help them tweak their skills by looking for areas that need fine tuning.

Even experienced salespeople can benefit

Experience often comes
with a pouty face

Experienced sales guys will be very convincing when asked if their manager should measure activities. I often hear a litany of excuses/reasons to leave them alone. Just for giggles, I have included a few common ones:

• I have been doing this since the Carter Administration. I know what I am doing, why should I measure and report my activities?
The only issue with this gem is that the world has changed so much many of the things they learned back when Lincoln was a lad are obsolete. The point is it’s not about their experience, it’s about the customer, the rest of the selling team and improving sales process.

• Do you want me selling or keeping track of activities?
Another good one. Why are the two mutually exclusive? Many of the activities prescribed will make selling for effective, efficient and profitable.

• I should be teaching others my techniques not following yours…
Some sales people rebel against their sales managers. Sometimes this is complete insubordination, other times it is well deserved criticism. If you are a sales manager and you run into this issue, get some objective feedback. And, if you’re requests are justified – stand your ground.

Ah, ranting is good for the soul. I feel better already.

Fairy Sales: The Princess and the …

As with all fairy tales, this one happened once upon a time in a land not so far away. There, of course,

was a princess who was quite obviously a mix of hillbilly and ridge-runner descent. Her mother, in a fit of rage or depression, named her Gerpruda, Princess Priscilla Gerpruda XIII to be exact. Anyway, this Princess Gerpruda (the thirteenth) lived in Never-Never Land. (Never-Never turn down a Sales Opportunity and Never-Never think outside the box-land-that is.)

Gerpruda lacked typical royal charm and beauty. At the age of 37, her parents thought an intervention was necessary to find a proper suitor.

A decree was made and a call went throughout the land for a suitable prince to wed the lovely Priscilla Gerpruda. After twelve years and two months, it appeared there was truth to the rumor that all of the potential “Prince-ton” material had been turned into frogs by a neighboring wizard.
In ‘88 the Wizards and Warlocks Frog Turning Competition had been held on the palace lawn, causing a disturbing disappearance of men of reproductive age.

There was also buzz that the enchanting Princess (affectionately known as PG-13) had a penchant for groping reptiles and amphibians. The only cure for her fatal attraction was to kiss the right frog that would turn into her prince charming.

And after countless cold blooded dates, Gerpruda began to wonder if a “happily-ever-after” solution existed. She was still determined to find out.

Frog kissing, as you can imagine, is an art. Our Princess, however, was no artist. After embracing countless frogs, the aggressive paramour realized that every frog kissed does not a prince make. And the warts left from locking lips from multiple frog partners made Godzilla’s back look smooth and refined.

Despondent Gerpruda felt helpless and alone. She debated suicide or a career change. She even thought about becoming a purchasing agent. But after a stern talk with herself and the royal psychiatrist, she opted to try her luck at the local watering hole. Her reputation grew quickly as she began swapping spit with even more frogs, and anything remotely green with a pulse.

It was upon a drunken journey home one evening when Gerpruda came across her Fairy Godmother in the roadway leaning against a rusty Oldsmobile (it really was a long time ago.)

“Gerpruda,” warned her godmother, “Let me give you some advice. Stop wasting your pucker power on every Tom, Dick and Harry frog you come across.”

Fairy Godmother waggled a bony finger under Gerpruda’s nose - avoiding the warts. “You can’t keep doing this,” she scolded. “I don’t care what tradition or fairy stories tell you. You can’t keep throwing yourself at everything that hops. You need strategy.”

Gerpruda wiped frog spit from her moustache. “But Fairy Godmuscher,” she slurred through the bourbon. “How do I know which frogs to kishsh? I’m no expert you know.” She weaved clinging to a leaning lamp post.

“You’re a mess” opined the disgusted FG. She whispered into Gerpruda’s ear, “Perhaps you should think about looking at the articles I’ve been sending you about targeting prospects. Try kissing frogs with a greater interest in becoming a prince?”

Failing in looking indignant or even standing erect, Gerpruda retaliated hotly, “Get loshht you old hag. You jussht wait and schee, FG. I’ll find my prince charming. Now get out of here before I call a cop,” slurred the sloshed pedigree.

After waving her wand and tossing a hand full of magic targeting dust upon the stumbling Princess, FG departed.

Surprisingly, the next morning, Gerpruda was up and about, humming an off-key tune of indescribable agony and appeared to be ardently mapping out some sort of strategy.

Taken from Fairy Godmother's Guide to Targeting a Frog Prince, her results looked something like this:

Attributes of Frogs that might be Prince Charming:
• Upon lilly pads close to the Castle
• Eating flambé’ not flies
• Sporting crowns not caps
• Wholesome complexion: NOT warty
• Fine, not flea bitten

A half hour later, Gerpruda took her station upon a bench near the castle lily pond. After patiently observing for a few minutes, a likely looking candidate in white knee socks, sneakers, Lycra sport shorts and a “toad top crown” hopped on the bench next to her. Never known for being coy, Gerpruda blurted quickly, “Want to be a prince?” as she scooped him up in her hand and planted a wet one on the terrified amphibian’s puss.

“Poof!” burst the frog. But rather than a handsome prince, there squatted a pot-bellied, cigar gnashing itinerant clothesline salesman in a cloud of blue smoke. “No way,” growled Gerpruda kicking him aside with her foot, “I can do better than that.” Gerpruda revisited her list....

Twenty minutes later, she had finally landed the Big One. He

was no George Clooney, but from a distance and in the right light, he may have slightly resembled Matt Damon, with his shades and if he didn’t speak or smile. Bells rang throughout the kingdom. The people rejoiced and wetlands increased by forty percent. Compound W sales tripled and everyone lived happily ever after. But that’s not the end…


The moral of the story?

(1) Never kiss just for the sake of kissing. There are lots of frogs out there. Spend time describing your perfect prospect and you will save yourself lots of effort and a face full of warts.
(2) Count your costs. Don’t settle for a pot bellied, cigar smoking partner in a knee socks when there are royals to be had for the price of a kiss in the right place.
(3) Customers can be cold blooded until you find the one who responds to what you’re offering. The right connection can be a marriage made in the Enchanted Kingdom.

It’s all about spending a little time up front targeting your market. Stop kissing every donkey you see and check out the frogs next door. Listen to your Fairy Godmother or in this case your GF … Godfather Frank.