New Intercompany Projects Functionality in Microsoft Dynamics AX 2012 R3
On May 1st, Microsoft officially released to market the newest version of Microsoft Dynamics AX, their flagship global ERP software system. In addition to the ability to deploy Dynamics AX on Azure, enhancements to the Lifecycle Services toolset, and other general improvements, Microsoft Dynamics AX 2012 R3 includes a number of new features in the Service Industries version of the application. In the next few blog articles, we'll discuss some of the enhancements that are found in the Project Management & Accounting module.
In this blog, we'll discuss an enhancement in the area of inter-company project management and accounting. In previous releases of Dynamics AX, Microsoft introduced a framework for managing inter-company projects where multiple companies or legal entities within your business structure are working on a single client-facing project. A typical inter-company project scenario could involve one entity that sells a contract with a client (contract-owning entity) and one or more entities that have resources who may work on that project (resource-lending entities). In previous releases of Dynamics AX, Microsoft provided the ability to manage inter-company time and expense transactions so that employees could easily enter these inter-company project timesheets and expense reports, project managers could see and approve these transactions, and they could ultimately be billed to the client and revenue would be recognized by the different entities based on their portion of the work that was performed.
In Dynamics AX 2012 R3, Microsoft has now introduced the ability to process inter-company AP invoices for projects within this framework. Dynamics AX now allows you to easily process AP invoices in one legal entity, and pass that AP invoice transaction to a project in a different legal entity all within the context of the project. What Microsoft has done, is essentially added a new transaction type into the inter-company invoicing process for AP transactions.
This new feature works off the AP invoice form in Dynamics AX as shown below. The general flow is as follows:
- Select an inter-company project on the invoice line.
- Post the AP invoice in the processing company.
- Run the inter-company AR invoice proposal in the processing company and post the inter-company AR invoice, which creates the pending inter-company AP invoice in the project owning company.
- Post the inter-company AP invoice, which will post the project transaction.
AP Invoice Processing in Dynamics AX
Inter-company Invoice Proposal in Dynamics AX
We hope this sheds some light on this useful new feature within the project management and accounting area. Stay tuned for more blogs on additional enhancements to Dynamics AX 2012 R3.
About the Author
Michelle Kirby is the Marketing Coordinator and Account Manager for SAGlobal. Michelle’s dual role includes coordination and execution of marketing campaigns and managing SAG’s existing client base. Michelle has over 16 years of ERP experience, including consulting, account management and as an end-user in a database administration role.