SFC Finance FRD_V3 (2).pdf

Functional Requirement Document

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FUNCTIONAL REQUIREMENT

DOCUMENT

PREPARED FOR:

S T A R F A S H I O N C O . L T D

The contents of this document are for the use of client personnel only. No part of it may be circulated, quoted, or reproduced for distribution outside the clients organization without prior consent. 2014 by AxionsPlus Pte Ltd. All rights reserved

FINANCE MANAGEMENT


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Information Topics: Financial Management

Author: Kasun Pathirana

Version: 1.00 Date : 05/02/2015

Comments:

This functional design document (FRD) is prepared on the basis of requirements indicated by STAR

FASHION CO.LTD (SFC) key users during Business Analysis sessions held in January 2015. The goal of

this document is to confirm requirements from SFC and to allow core users an understanding of the

AX2009 features related to their requirements.

We would like to take the opportunity to thank all of the participants for their cooperation in

connection with the preparation of this document.

This document is structured in accordance with AXIONSPLUS method for implementation of Microsoft

Dynamics AX projects. The findings of this FRD and Gap Analysis will form the basis of the system

development. This ensures that future tasks are prioritized accordingly and resources used efficiently.

The individual gaps are listed by functional and report area, each gap has been given a complexity level

ranking for development effort of High, Medium, or Low, and an indication if we believe the gap can be

filled by changing the process, introducing a manual workaround, or performing a modification to

standard functionality.

Version Date Description Prepared By

1.00 05/02/2015 Initial Kasun Pathirana

2.00 17/02/2015 Internal Review Gillian Saw

3.00 14/04/2015 Revision after FRD review by process owner Gillian Saw


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Table of Contents

1 Executive Summary ................................................................................................................. 5

1.1 Purpose of the Requirement Specification ........................................................................ 5

2 System Setup ............................................................................................................................ 6

2.1 Company Basic Information ................................................................................................ 6 2.2 Currencies ............................................................................................................................. 6

2.2.1 Exchange Rate ..................................................................................................................................................... 7 2.3 Financial Periods .................................................................................................................. 8

2.3.1 Requirement ......................................................................................................................................................... 9 2.3.2 Solution ................................................................................................................................................................ 9

2.4 Date Intervals ...................................................................................................................... 10 2.5 Chart of Accounts ............................................................................................................... 11

2.5.1 Requirement ....................................................................................................................................................... 12 2.5.2 Solution .............................................................................................................................................................. 12

2.6 Financial Dimensions ......................................................................................................... 12 2.6.1 Dimension 1 Intercompany Unit ..................................................................................................................... 12 2.6.2 Dimension 2 Department ................................................................................................................................ 13 2.6.3 Dimension 3 Strategic Business Unit (SBU) ................................................................................................... 13 2.6.4 Dimension 4 Product Category ....................................................................................................................... 14 2.6.5 Dimension 5 Factory ....................................................................................................................................... 15 2.6.6 Dimension 6 Brand (Buyer) ............................................................................................................................ 16 2.6.7 Dimension 7 Buyer Division ........................................................................................................................... 16 2.6.8 Dimension 8 Business Segment ....................................................................................................................... 17 2.6.9 Dimension 9 Job Number ................................................................................................................................ 17

2.7 Bank Account and Bank Reconciliation ........................................................................... 17 2.8 Journal Type and Journal Name ....................................................................................... 18

3 General Ledger ....................................................................................................................... 19

3.1 General ................................................................................................................................. 19 3.2 General Journal Entry ........................................................................................................ 20 3.3 Taxation (VAT)..................................................................................................................... 21 3.4 Budget .................................................................................................................................. 22 3.5 Currency revaluation .......................................................................................................... 22

4 Fixed Assets ........................................................................................................................... 24

4.1 General ................................................................................................................................. 24 4.2 Fixed Assert Group ............................................................................................................ 24 4.3 Fixed Asset Number Sequence ......................................................................................... 25 4.4 Fixed Asset .......................................................................................................................... 25 4.5 Depreciation profile ............................................................................................................ 26 4.6 Value Models ....................................................................................................................... 27 4.7 Posting Profile..................................................................................................................... 28 4.8 Fixed Asset Locations ........................................................................................................ 28 4.9 Fixed Assets Acquisition ................................................................................................... 29 4.10 Monthly depreciation of Fixed Asset ................................................................................ 32 4.11 Disposal of Fixed Asset ..................................................................................................... 33 4.12 Fixed Assets Tax Depreciation Posting ........................................................................... 34 4.13 Report .................................................................................................................................. 34

5 Account Payables .................................................................................................................. 36


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5.1 Accounts Payable Setup .................................................................................................... 36 5.1.1 Journal and Voucher Number Sequences .......................................................................................................... 36 5.1.2 Vendor Group setup ........................................................................................................................................... 36 5.1.3 Posting Profile ................................................................................................................................................... 37 5.1.4 Terms of Payment .............................................................................................................................................. 37 5.1.5 Methods of Payment ........................................................................................................................................... 38 5.1.6 Aging Bucket ...................................................................................................................................................... 39

5.2 Vendors ................................................................................................................................ 39 5.2.1 Vendor General tab ......................................................................................................................................... 40 5.2.2 Vendor Setup tab ............................................................................................................................................. 41 5.2.3 Vendor Address tab ......................................................................................................................................... 41 5.2.4 Vendor Payment tab ........................................................................................................................................ 41

5.3 Invoice Journal.................................................................................................................... 43 5.4 Payment Journal ................................................................................................................. 45

5.4.1 Bank Interface for GIRO/TT .............................................................................................................................. 50 5.4.2 Cheque Printing ................................................................................................................................................. 50

5.5 Revaluation .......................................................................................................................... 51 5.6 Reports ................................................................................................................................ 52

5.6.1 Vendor Aging Report ......................................................................................................................................... 52

6 Accounts Receivable ............................................................................................................. 53

6.1 Accounts receivable setup ................................................................................................ 53 6.1.1 Journal and Voucher Number Sequence ............................................................................................................ 53 6.1.2 Customer Group setup ....................................................................................................................................... 53 6.1.3 Customer Group setup ....................................................................................................................................... 54 6.1.4 Posting profile for Customer.............................................................................................................................. 55 6.1.5 Terms of Payment .............................................................................................................................................. 55 6.1.1 Method of Payment ............................................................................................................................................ 56 6.1.2 Aging Bucket ...................................................................................................................................................... 56

6.2 Customer ............................................................................................................................. 57 6.3 Free Text Invoice / Debit Note / Credit Note ..................................................................... 58 6.4 Customer Payment ............................................................................................................. 60 6.5 Report .................................................................................................................................. 61

6.5.1 Customer Aging Report ...................................................................................................................................... 61

7 Virtual Company ..................................................................................................................... 62

7.1 Virtual company .................................................................................................................. 62

8 Summary Gap Analysis List ......................................................................................................... 64

8.1 Function GAP List .............................................................................................................. 64 8.2 Report GAP List .................................................................................................................. 65

9 Client Acceptance ....................................................................................................................... 66


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1 Executive Summary

This Functional Requirement Document (FRD) is prepared on the basis of requirements indicated by STAR FASHION CO.LTD (SFC) with Key Users during Business Process Analysis sessions held in January, 2015 of this year. We would like to take the opportunity to thank all of the participants for their cooperation in connection with the preparation of this document.

This document is structured in accordance with AXIONSPLUS (AXP) method for implementation of Microsoft Business Solutions projects. The findings of this FRD and Gap Analysis will form the basis of the system development. This ensures that future tasks are prioritized accordingly and resources used efficiently.

The individual gaps are listed by functional and report area, each gap has been given a complexity level ranking for development effort of High, Medium, or Low, and an indication if we believe the gap can be filled by changing the process, introducing a manual workaround, or performing a modification to standard functionality.

1.1 Purpose of the Requirement Specification

The purpose of the Gap Requirements Specification can be summarized as follows:

It identifies and documents by SFC requirements not met by the proposed systems standard functionality.

It forms the basis of the system development

It forms the basis of planning

It forms the basis of quality assurance

It forms the basis of unit tests


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2 System Setup

2.1 Company Basic Information

A new company SFC had been created in AX2009.

2.2 Currencies

The base currency for SFC is USD, and the secondary currency is VND.

Company Code (3-Character long)

Company Name/Address/General

SFC

STAR FASHION CO.LTD Lot 3 - Industrial Zone - Chuong My - Ha Noi Tel: (84) 4632 67395 Fax: (84) 4632 67433 Tax Reg. No. : 0500556370 Company. Reg. No. : 01222000176


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Base currency the currency for reporting and transactions for the company Secondary currency additional reporting currency for financial and management reporting

purposes

2.2.1 Exchange Rate

SLG Finance team will setup and maintain the exchange rate for the entire group to ensure that the exchange rate is consistent across all companies.


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2.3 Financial Periods

The fiscal year start in January and the individual period will follow the calendar month.

There are 12 Accounting Periods; the following table indicates the period start and end dates for 2 years.

SLG Finance team is responsible for creating and maintaining the financial periods in SFC books.

Financial Periods Year Start date End date

Period 1 2014 01 Jan 31 Jan

Period 2 2014 01 Feb 28 Feb

Period 3 2014 01 Mar 31 Mar

Period 4 2014 01 Apr 30 Apr

Period 5 2014 01 May 31 May

Period 6 2014 01 Jun 30 Jun

Period 7 2014 01 Jul 31 Jul

Period 8 2014 01 Aug 31 Aug

Period 9 2014 01 Sep 30 Sep

Period 10 2014 01 Oct 31 Oct

Period 11 2014 01 Nov 30 Nov

Period 12 2014 01 Dec 31 Dec

Period 1 2015 01 Jan 31 Jan

Period 2 2015 01 Feb 28 Feb

Period 3 2015 01 Mar 31 Mar

Period 4 2015 01 Apr 30 Apr

Period 5 2015 01 May 31 May

Period 6 2015 01Jun 30 Jun

Period 7 2015 01 Jul 31 Jul

Period 8 2015 01 Aug 31 Aug

Period 9 2015 01 Sep 30 Sep

Period 10 2015 01 Oct 31 Oct

Period 11 2015 01 Nov 30 Nov

Period 12 2015 01 Dec 31 Dec


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It is advisable to create the next year financial period at the end of the year.

Once created, set the status to Stopped which will eliminate error posting to future month. This task will be performed by the respective finance department in charged.

2.3.1 Requirement

i. The Financial Periods access needs to be controlled by SLG finance user. ii. Module access feature to be used to restrict posting transactions SLG needs to confirm.

iii. How to handle audit adjustments after year end close. (E.g. require to set up 13th month period?)

2.3.2 Solution

i. Financial Periods screen access rights to be given to a system administrator and this is to be controlled by SLG.

ii. System allows certain users to post to a particular module, even though the period is set to Stopped. Eg: At the start of a new period, you might want a group of users (eg: Finance Manager) to finish posting financial transactions in the previous period, while other groups (eg: AP clerk) work only in the new period. Multiple user group will be created in AX2012 and using module access level security to restrict which users can post to the module for the selected period.

iii. A closed or year closed period cannot be reopened and therefore period to be stopped until the period is closed finally in accounting with the audit adjustments. Audit adjustments to be done using a special journal name and to post into this journal and rerun the transfer of year end closing. No 13th month is required to be setup.


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2.4 Date Intervals

Date intervals will be setup to allow user to create dynamic dates. The following Date Intervals are setup for Financial Statement printing.

SLG to confirm Date Interval - Current Year (CY) - Current Month (CM) - Prior Year (PY) - Next Year (NY) - Next Period (NP) - Quarter 1 Current Year (Q1CY) - Quarter 2 Current Year (Q2CY) - Quarter 3 Current Year (Q3CY) - Quarter 4 Current Year (Q4CY) - Quarter 1 Last Year (Q1LY) - Quarter 2 Last Year (Q2LY) - Quarter 3 Last Year (Q3LY) - Quarter 4 Last Year (Q4LY) - Year to Date Current Month (YTDCM) - Year-To-Date Current Year (YTDCY)


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- Year To Date Last Month (YTDLM) - Year-To-Date Last Year (YTDLY) - MTH01 - MTH02 - MTH03 - MTH04 - MTH05 - MTH06 - MTH07 - MTH08 - MTH09 - MTH10 - MTH11 - MTH12

2.5 Chart of Accounts

The Chart of accounts form is used to create, maintain, and view general ledger accounts in a structured form. These accounts contain the financial data as well as the companys day-to-day activities.

Sample of existing Chart of Accounts:


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Chart of Accounts would be standardized and maintained by SLG, and SFC to use group Chart of

Accounts. If SFC requires adding of a new account code, then request will be made to Head Office.

2.5.1 Requirement

Eliminate existing COA duplication.

2.5.2 Solution

Some COA need to be renamed and to block some accounts to prevent future posting. During the business requirement gathering sessions SLG agreed to carry out COA fine tuning.

2.6 Financial Dimensions

There are nine financial dimensions setup.

2.6.1 Dimension 1 Intercompany Unit

This Dimension is used to facilitate the inter-company elimination during consolidation process. When SLG sell Fabric to STF, the intercompany code for the sales transaction is with intercompany dimension STF. Vice versa, STF will record the Fabric purchase with intercompany dimension SLG. At consolidation level, these 2 transactions can then be identified easily for elimination purposes. i.e. Only transactions with NA should not be eliminated at consolidation level.


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2.6.2 Dimension 2 Department

This dimension will be used to record expenses incurred by every departments

Department dimension values will include all the cost centers from production and other departments.

2.6.3 Dimension 3 Strategic Business Unit (SBU)

1st character denotes whether it is Manufacturing Division or Agency Trading Distribution (ATD) Division.


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2.6.4 Dimension 4 Product Category

For every new garment item created in item master, user can set the Product Category as a default for subsequent transaction.

The List of product Category Dimension values is listed below.

Requirement

To revise and add on to the existing Product Category dimension values.

Solution One of the option is to use A&T Structure ID values as the "Product Category" Dimensions. SLG

Finance to confirm.

A&T Structure ID as follow :


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2.6.5 Dimension 5 Factory

Include both SLGs factories as well as 3rd party sub-con factories.

Partial List of Factory Dimension values is listed below.


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2.6.6 Dimension 6 Brand (Buyer)

This dimension will be used to record the transactions with buyers.

2.6.7 Dimension 7 Buyer Division

This dimension will be used to record the buyer divisions.


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2.6.8 Dimension 8 Business Segment

This dimension will be used to record the Business Segment.

2.6.9 Dimension 9 Job Number

This is a system generated number from Sales Order module.

2.7 Bank Account and Bank Reconciliation

Bank Accounts for each bank per currency will be created and maintained in the Bank module.

Currently SFC has 2 main banks, SCB and VietinBank. Each bank Account code will be directly linked to G/L Account


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Bank reconciliation is prepared manually, and cash flow is prepared on daily basis. Automated Bank Reconciliation process is not required by SLG and SFC.

SLG wish to track AR financing through the system. The interface with the bank is not yet available. Thus the tracking has to continue manually.

2.8 Journal Type and Journal Name

Journal names are used to create and manage different kinds of journals entries. These journals can be set-up and used across all modules accordingly. Journal type is used to determine which module a specific journal is used for. A voucher number sequence has to be set-up and maintained for each journal created.


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3 General Ledger

3.1 General

Requirement: SFC requires Ax2009 to handle multi-currency transactions, VAT reporting, recurring journal entries with allocations capabilities. To be able to identify standard AX2009 reports and those customized reports easily. Requirement for Vietnamese Language pack and Vietnamese Accounting System Not included in the first phase and TBC by SLG.

Resolution:

Standard Ax2009 General Ledger functionality will accommodate multiple currencies, recurring journal entries. Allocation rules can be preset as a template. To easily identify customized reports :

- For those reports that not in used, make these reports not visible in user menu - Add an * character in front of those customized reports

- User can add the commonly used reports to the My Favorites folder.


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3.2 General Journal Entry

General Journal form is used to create and record Ledger transaction entries on a daily basis.

Requirement:

i. To implement journal approval function for journal batch. ii. To customize a function to import payroll file in AX General Journal Line. (Functionality GAP List # FF02).

iii. To customize the Tax Exchange Rate function in General Journal. (Functionality GAP List # FF03).

Resolution: i. To enable Journal Approval function in AX2009.

SLG to revert which journal name requires Journal Approval function. SLG IT to setup the approval user group.

ii. Payroll Interface

Option 1: Customize an import function in AX2009. The journal lines to include dimension values for Department and SBU.

Option 2: Use Atlas XL import function to upload the payroll file into General Journal lines.

iii. Tax Exchange Rate

To customize Tax Exchange Rate function for General Journal.


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3.3 Taxation (VAT)

Requirement: SFC is required to submit the following VAT reports to the tax authority on monthly basis.

Statement of Invoices Input Report (Report GAP List # FR04)

Statement of Invoices Output Report (Report GAP List # FR05)


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SLG IT has customized these reports.

3.4 Budget

Requirement: SFC Finance team wish to upload the GL budget into AX.

To revise financial statements (P&L) to include budget figures for comparison purposes

Resolution:

Going forward, user will prepare the budget in MS Excel and upload the budget into AX via the Data Import function. This will be provided to SFC by SLG finance team.

SLG Finance team will amend the existing financial statement format to include budget figures.

3.5 Currency revaluation

Requirement: SFC require to perform Bank & GL revaluation.

Currently this is carried out manually, and revaluation amount is posted via GL journal.

Solution To customize a Monthly batch job (Gap List # FF01):

- To revalue Bank balance with the exchange rate from the following month. - User will be able to filter by Bank, and specify the revaluation date. - System to auto create new General Journal Line for the exchange gain/loss amount

calculated. - This journal is auto reverse on the following month.

- The journal is with description Bank revaluation for MMM (month) YY (Year).

- User can validate the journal created and post the journal when ready.


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- The transaction is only posted to GL Ledger and not Bank sub-ledger. - To have one voucher per bank.

To customize a report Bank Revaluation Report (GAP List # FR01) to show Bank (GL) balance before and after currency revaluation. The Variance amount and Variance % will be printed as well.


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4 Fixed Assets

4.1 General

Current Process Current Fixed Asset capitalization policy :

Item with amount more than USD 600 will be capitalized

Amount less than USD 600 will be expensed off to P/L

Capitalization Threshold : This feature is applicable for FA acquisition via Purchase Order (not AP Invoice journal and Asset Acquisition journal). Capitalization thresholds are evaluated during asset creation from purchase orders. If the laptop cost is 400 USD which is under the Capitalization threshold of 600USD, the laptop will be created with the depreciation check box cleared. User will then have to decide whether to activate the depreciation for this asset or this asset need to be expensed off.

4.2 Fixed Assert Group

Every Fixed Asset will belong to a particular Fixed Asset Group. The Fixed Asset group define asset characteristics such as type, depreciation policy and posting profile of the asset. The Fixed Asset Group will be maintained by SLG Finance.


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4.3 Fixed Asset Number Sequence

For SFC, the Fixed Asset numbering is based on asset groups.

4.4 Fixed Asset

For every fixed asset, user to maintain the supplier information, and warranty information.


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4.5 Depreciation profile

Depreciation profiles are used to define rules for calculation of depreciation. They are used only for depreciable assets, which usually mean tangible assets and sometimes also intangible assets.

For Straight Line method, Service Life would be used. The acquisition adjustment has its own service life corresponding to the full service life of the primary acquisition.


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4.6 Value Models

Value models are essential to fixed assets. Each value model assigns an additional life cycle to the asset.

Value models define the following functionality:

- Is the asset depreciable? - How it the asset going to be depreciated? - How is the depreciation going to be rounded?

Depreciation Profile for each Fixed Asset Group is attached to the value model.


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4.7 Posting Profile

Ledger accounts for different Fixed Asset activities: Ledger & Offset Account of Acquisition. Ledger & Offset Account of Acquisition Adjustment. Ledger & Offset Account of Depreciation. Ledger & Offset Account of Depreciation Adjustment. Ledger & Offset Account of Disposal Sale. Ledger & Offset Account of Disposal Scrap.

When a fixed asset transaction is posted, based on the asset transaction type (Acquisition,

Depreciation, etc.), the value model used, and the posting profile for the transaction, Ax2009 finds the ledger accounts to post to. Therefore, correct setup of the posting profile is crucial to correct ledger transactions, and thus to financial reporting.

The posting profile will be maintained by SLG Finance.

4.8 Fixed Asset Locations

Currently locations are used as identification of the main location of the asset in the field Location. This will facilitate the asset taking during year end audit.

The FA location is maintained by SFC finance user.


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4.9 Fixed Assets Acquisition

There are various ways to acquire an asset. These are following: 1) From Purchase order 2) From Accounts Payable Invoice Journal 3) From Fixed Asset Journal Current Process

Fixed Assets is acquired via Accounts Payable Invoice Journal.

Task ID Task description Task

owner

Next

task

1 Fills in FA Request form and match with approved capital budget. Internal policy needed to ensure the requester has considered the various availability options in SFC group of companies. Example: can loan/rental/refurnish/transfer instead of purchase a new machine?

Fin User 2

2 Send for Approval, send to Account after check against Assets Capital budget

Fin User 3

3 Approved Acquisition Request send to accounts to create New FA code Fin Mgr 4

4 Use AX Invoice Journal to acquire the new Fixed Asset. End


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Fixed Assets acquisition via Purchase Order.

Task

ID

Task description Task

owner

Next

task

1 In the inventory, create a service item for fixed assets.

IT 2

2 Create a purchase order. Select the FA item; Enter the assets name in the text field and print out the purchase order to get approval.

Dept User

3

3 In the Purchase order line, go to Fixed Assets tab and tick the New fixed asset fields. Select the correct FA group.

Dept User

4


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4 Post Packing Slip (GRN) for asset receiving.

FIN 5

5 After generating the purchase invoice, the new fixed asset will be created, and acquisition entry is posted.

FIN 6

6

FIN 7

7 Back to the Fixed Asset card. Update the next run depreciation date.

FIN -

Bar Code label is then printed for FA tagging. In the label, it will include Company Code + Department Code + Fixed Asset Number.


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4.10 Monthly depreciation of Fixed Asset

Requirement: System auto calculate the depreciation amount and update to their respective ledger account and

dimension

Some of the assets need to depreciation as per their dimensions and Department, Strategic Business Unit, Intercompany Unit.

Depreciation is perform once a month during month end. If an asset is acquired in mid-month, the asset will be still subject to full month depreciation.

Resolution: Every month end, create a fixed asset journal and run the function Depreciation Proposal.

In the Depreciation Proposal, user can specify the To Date, which usually is the month end date. User can also filter by Depreciation Book.


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System will auto generate the depreciation journal lines.

User can validate the journal created and post the journal when ready.

4.11 Disposal of Fixed Asset

Requirement: Once an asset is disposed in the system, the status of the assets should be changed but still able to

view the history

Resolution:

For any disposal assets, create a fixed assets journal and select journal name as Disposal

Select the transaction type as disposal scrap or write off and the asset code

Click on Report as finished to allow system approval

After approval, the disposal transaction is ready for posting

Posting will update the asset card and the asset status will be set to Scrapped.

In Ax2009, when disposal of asset transaction is posted before depreciation calculation, then there

will not be any depreciation for the disposal assets

Disposal assets, system will reverse the previous entries as per previous years depreciation and acquisition, current year depreciation and go into the disposal gain and loss account


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4.12 Fixed Assets Tax Depreciation Posting

Requirement:

Service life for Tax Depreciation is different. SFC Ms Mai to confirm whether to setup and maintain Tax depreciation in system.

Resolution: In Ax2009, user can setup another Value Model for the fixed asset. The Depreciation period can be

specified and the tax depreciation will be posted to the Tax Posting Layer.

Finance Department will post the Tax Depreciation journals yearly. The computed tax depreciation calculation will not be posted to GL but posted in Tax layer.

A unique fixed asset journal for posting Tax depreciation journal should be created and setup. The

Posting Layer should be setup as TAX, this posts all transactions into Tax layer of Accounts and does not updates balances in Current layer.

Tax Depreciation can be viewed for FA module as well as from GL reports for Tax layer.

4.13 Report

Requirement: Require a Fixed asset Balance report for year-end audit purposes.

Resolution:

Report GAP List # FR02. SLG IT has customized this report.


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5 Account Payables

5.1 Accounts Payable Setup

5.1.1 Journal and Voucher Number Sequences

Below is the list of SFCs current accounts payable journal voucher number sequences:

SFC Finance user can maintain the list.

5.1.2 Vendor Group setup

Vendor Group is used to maintain groups of vendors that share the same terms of payment and ledger posting accounts.

Below is list of the current vendor groups, and it is maintained by SLG Finance:

The vendor group setup is maintained by SLG Finance.


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5.1.3 Posting Profile

Vendor posting profiles are required to control the posting of vendor transactions to the general ledger.

The vendor posting profile is maintained by SLG Finance.

5.1.4 Terms of Payment

The Terms of payment form is used to set-up terms and conditions as to how a payment is being made to a vendor or by a customer. This form can be used for the Sales and marketing, Procurement and sourcing, Accounts payable, and Accounts receivable modules. The term of payment code can be defaulted to each vendor or a customer. Other than that, the term of payment can be changed at the time of the vendor or customer transaction.

The Term of Payment is maintained by SLG Finance.


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5.1.5 Methods of Payment

Methods of payment are used to set-up and maintain various payment methods for vendors. A default method of payment code can be set-up to each vendor. However, should the vendor accept multiple methods of payment that varies per transaction, this can then be changed in the transaction form before it is posted.

The Method of Payment is maintained by SLG Finance.


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5.1.6 Aging Bucket

Aging bucket form is used to setup different date intervals that are being used in an aging report. These buckets are used to determine and analyze the balances of each customer and vendor account. Each aging bucket corresponds to a column in an aging form and report.

5.2 Vendors

This vendor form is used to create new and manage vendors that the company transacts business with. Vendors are categorized according to vendor groups. Default set-up can be done per vendor such as the currency, term of payment, method of payment.


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5.2.1 Vendor General tab

Vendor Group

Currency: The default currency code for invoices.

Segment: Can be used to identify sub agency vendor

Segment and sub-segment can be used to further classify the vendors. Eg: Vendor A is an appointed

accessories supplier for Buyer VF. Segment = Accessories, Sub-segment= VF


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5.2.2 Vendor Setup tab

Sales tax group: Select the sales tax group that applies to this vendor. E.g. GST Registered

vendor.

5.2.3 Vendor Address tab

A vendor can have multiple addresses stored in AX2009 but there can only be 1 Primary address. This primary address will be the default address used in invoice and payment transactions.

5.2.4 Vendor Payment tab

Term of payment: The terms of payment for an invoice determine the invoice due date.


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Method of payment: Method of payment typically used for payments to the vendor. E.g. check,

Telegraphic Transfer, GIRO, etc.


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5.3 Invoice Journal

Vendor Invoices without purchase order will be posted through AP Invoice Journal.

Task

ID Task Description

Task

owner

Next

task

0

Enable the Journal Approval function in the system.

SLG IT to setup the approval User Group.

Fin Admin

1

1 Receive vendor Invoice AP user

2

2 Create AP Invoice Journal AP user

3


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3

Report as Ready the Invoice journal

AP user

4

4 Approval process Fin Mgr

5 or 6

5 Reject Invoice if not approved and send for revision. Fin Mgr

2

6 Approve Invoice journal Fin Mgr

7

7 Post Invoice journal AP user

END


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5.4 Payment Journal

Requirement: Require system approval functions for payment journal

Require to have the Tax exchange rate function in payment journal.

Require system to print Payment Order report (for TT submission to the bank).

Resolution: Vendor Payments will be done through AP Payment journals in Ax2009.

Task

ID Task Description

Task

owner

Next

task

0 Enable the Journal Approval function in the system. Fin Admin

1


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SLG IT to setup the approval User Group.

1

Create AP Payment Journal

There are two methods for selecting the invoices to pay through the payment

journal. The Payment proposal option searches for invoice lines that meet selected search

criteria. Use the Settlements option to select the specific invoice lines to pay.

AP User

2

2

Create Payment proposal by Due Date.

System will generate a list of suggested payment base on the selection below

AP User

3


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3

Select Invoice for settlement. System will list down all overdue invoices for payment in journal line.

Enter the payment detail. For SLG, customization is required to enable the Tax Exchange Rate function in payment journal.

AP User

4


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Functionality GAP List # FF04.

4

Report the journal As Ready

AP User

5

5 Approval Process Fin Mgr

6 or 8

6 If not Approved, Reject the AP Payment journal. Fin Mgr

7

7 Revise the AP Payment journal AP User

8

8 Approve the AP Payment Journal Fin Mgr

9

9 Print Payment Voucher. AP User

10


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Print Payment Order (for TT submission to Vietin Bank).


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Report GAP List # FR06.

10 Post and Print the AP Payment journal AP User

end

5.4.1 Bank Interface for GIRO/TT

In AP Payment Journal, based on the Method of Payment, system to generate a payment export file. This file can then be uploaded to the Bank payment system.

For each of the Method of Payment, there is an export file format which has to be mapped to the Bank required format.

SLG to confirm.

5.4.2 Cheque Printing

Two options available : Computerized cheque : To generate and print cheque from AX Manual cheque : To print payment details on manual cheque.

SLG to confirm.


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5.5 Revaluation

Requirement AP Revaluation is required.

Solution The vendor foreign currency revaluation form is used to revalue all open vendor transactions in foreign

currencies. The revaluation will determine whether a particular transaction has gained or lost at the time it was revalued. Each vendor transaction result will then be posted to an un-realized gain or un-realized loss account.

Currently, SFC process revaluation every month-end.


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5.6 Reports

5.6.1 Vendor Aging Report

Requirement To be able to filter by SBU Dimension. To add a column for SBU dimension. (Report GAP List # FR07) For invoice with partial payment, the aging report did not reflect the source currency amount.

SLG IT to provide the sample report to AXP for further investigation.


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6 Accounts Receivable

6.1 Accounts receivable setup

6.1.1 Journal and Voucher Number Sequence

Below is the list of SFCs current accounts receivable journal voucher number sequences:

SLG IT will maintain the list of number sequence.

SLG to revert whether to use the same number sequence for Free Text Invoice Credit Note and Sales Order-Credit Note.

6.1.2 Customer Group setup

Customer Group is used to maintain groups of customer that share some key parameters:


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Terms of payment

Inventory posting ledger accounts, including the sales tax group

Default account setup

Customer Group is maintained by SLG Finance.

6.1.3 Customer Group setup

The same as in the accounts payable module, Terms of payment form is used to set-up terms and conditionals as to how a payment is being made to a vendor or by a customer. This form can be used for the Sales and marketing, Procurement and sourcing, Accounts payable, and Accounts receivable modules. The term of payment code can be defaulted to each vendor or a customer. Other than that the term of payment can be specified at the time of the vendor or customer transaction.

Customer Group Setup is maintained by SLG Finance.


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6.1.4 Posting profile for Customer

Customer posting profiles are required to control the posting of customer transactions to the general ledger.

Each customer posting profile will be linked to the AR Ledger Control account in GL.

Posting Profile is maintained by SLG Finance.

6.1.5 Terms of Payment

The same as in the accounts payable module, Terms of payment form is used to set-up terms and conditionals as to how a payment is being made to a vendor or by a customer. This form can be used for the Sales and marketing, Procurement and sourcing, Accounts payable, and Accounts receivable modules. The term of payment code can be defaulted to each vendor or a customer. Other than that the term of payment can be specified at the time of the vendor or customer transaction.

The Terms of Payment is maintained by SLG Finance.


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6.1.1 Method of Payment

Methods of payment form used to set-up and maintain various payment methods for vendors. A default method of payment code can be set-up to each vendor. However, should the vendor accept multiple methods of payment that varies per transaction, this can then be changed in the transaction form before it is posted.

The Methods of Payment is maintained by SLG Finance.

6.1.2 Aging Bucket

Aging bucket form is used to setup different date intervals that are being used in an aging report. These buckets are used to determine and analyze the balances of each customer and vendor account. Each aging bucket corresponds to a column in an aging form and report.


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6.2 Customer

For new Customer, user will need to fill in the New Customer Application and submit to finance for Credit Check. Once finance approved on this customer, the customer will be setup in Ax2009.

Other setup such as payment terms, method of payment, address, currency, credit limit, agent, invoicing account, dimensions etc. will be setup according.


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6.3 Free Text Invoice / Debit Note / Credit Note

Free text invoice is used when a transaction does not require a sales order, packing slip, or a customer invoice. At the same time, you may also use this form to create adjustments such as credit note.

Create Free text invoice in Ax2009 and allow user to enter transaction text as per user require. Select the billing currency; Fill in the dimension as per the transaction amount.

Print the proforma invoice for checking before posting.


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If the total amount of the invoice is negative, the posting will be shown as Credit Note.

For credit note, go to open transaction editing to select which invoice to offset and after posting, the fully offset invoice will be closed.


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6.4 Customer Payment

When Accounts Receivable users receives payment from clients, she will record the payment using Payment Journal with Settlements method to select the specific invoice lines to offset.

Journal approval is required to be turned on for Payment Journal.

SLG IT to setup the approval User Group. SLG to revert issues in 'Customer posted payment journal' report.


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6.5 Report

6.5.1 Customer Aging Report

Requirement To be able to filter by SBU Dimension, and additional column for SBU dimension. (Report GAP List # FR08)

To create another customer Aging report for AR Financing invoices (eg: Macy) - $100 Invoice, $90 finance by bank and $10 balance by Macy. - To show original invoice amount as a new column (i.e. to show 100%)

(Report GAP List # FR03)


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7 Virtual Company

7.1 Virtual company

A single Microsoft Dynamics AX database can contain multiple individual company accounts. Each company account in an application uses the same application logic, but has its own set of data for tables. Data that is stored in one company account cannot be accessed from other companies. This means that if a table's data belongs to company account A, its data will only be available to application objects within that company account, unless company account A is created as a virtual company, which enables data sharing.

Virtual company accounts contain data in certain tables that are shared by any number of company accounts. This lets users post information in one company account that will be available to another company account.

Following are the tables setup in the Virtual Company : General Ledger

- Chart of Accounts - Dimensions - Dimensions Set - Currency - Currency Exchange Rate - Date Interval - Financial Statement Row Definition - Financial Statement

Fixed Asset

- Fixed Asset Group - Fixed Asset Group Setup - Fixed Asset Posting Profile - Fixed Asset Disposal Parameters - Fixed Asset Depreciation Profile - Fixed Asset Value Models

Accounts Receivable & Accounts Payable

- Customer Group - Vendor Group - Customer Method of Payment - Vendor Method of Payment - Modes of Delivery - Terms of Delivery - Terms of Payment - Aging Buckets - Agent - Quota Category - Sample Types


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- Country

Inventory & Production - Item Model Group - Unit of measure - Sales Pool - Production Pool - BOM Cost Group - Item Group - Item Test Group - Item Test Variable - Route Operation

A&T

- Item Season - Size Chart - Structure Id - Structure Category - Structure Type - Structure Definition - Packing Accessory Type - Gauge - Garment Brand - Circular - Fabric Type - Fabric Yarn Composition - Garment Gender Group - Garment Version - Packing Accessories Type - Packing Accessories - Measure - Sewing Accessories Composition - Sewing Accessories Type - Sewing Accessories - Measure - Yarn Origin - Yarn Type - Property - Category


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8 Summary Gap Analysis List

8.1 Function GAP List

Module Refer No.

Description

Options (Must Have/ Nice to Have)

Priority H, M, L

Responsible

Estimated Man-Days

Approve

Finance FF01

To customize a Monthly batch job (Gap List # FF01): To revalue Bank balance with the exchange rate from

the following month. User will be able to filter by Bank, and specify the

revaluation date. System to auto create new General Journal Line for the

exchange gain/loss amount calculated. This journal is auto reverse on the following month. The journal is with description Bank revaluation for

MMM (month) YY (Year). The transaction is only posted to GL Ledger and not Bank

sub-ledger. To have one voucher per bank.

M H AXP

2 No

Finance FF02 To customize an import function for payroll file into AX General Journal Line.

M M AXP

TBC. SLG to provide the payroll file format.

On Hold until HRMS software go live

Finance FF03 To customize Tax Exchange Rate function in General Journal

M M AXP

1.5 Yes

Finance FF04 To customize Tax Exchange Rate function in AP Payment Journal.

M M AXP

1.5 Yes


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8.2 Report GAP List

Module Refer No.

Description

Options (Must Have/ Nice to Have)

Priority H, M, L

Responsible

Estimated Man-Days

Approve

Finance FR01

To customize a report a Bank Revaluation Report to show Bank (GL) balance before and after currency revaluation. The Variance amount and Variance % will be printed as well.

M H AXP

1.5

No

Finance FR02 Fixed Asset Balance report

M H Nuwan (Completed) - -

Finance FR03

AR Aging report by AR Financing invoices

$100 Invoice, $90 finance by bank and $10 balance settled by customer (eg: Macy)

To show original invoice amount as a new column (i.e. to show 100%)

M H AXP

0.5

On Hold

Finance FR04 Statement of Invoices Input Report M H Nuwan (Completed) - -

Finance FR05 Statement of Invoices Output Report M H Nuwan (Completed) - -

Finance FR06 Payment Order Report M H Nuwan - -

Finance FR07

Vendor Aging Report : -To be able to filter by SBU Dimension. -To add a column for SBU dimension.

M H Nuwan (Completed)

-

-

Finance FR08

Customer Aging Report : -To be able to filter by SBU Dimension. -To add a column for SBU dimension.

MN H Nuwan

-

-


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9 Client Acceptance

The foregoing clearly states our understanding of our engagement with AxionsPlus, and we hereby agree to the project scope, objectives, assumptions, task assignments and deadlines described herein. We understand that changes to the engagement details, as described in this document, will require a formal change order.

We accept our responsibility to ensure that scope; resources and time are kept constant through the life cycle of the project, and our responsibility to ensure that our staff meets all the task deadlines. We understand that our failure to meet these responsibilities could result in an out of scope condition and adjustment of the overall project plan and deliverables, including the possibility of change orders or an entirely new project budget and timeline.

SL Global Pte. Ltd. AxionsPlus Pte. Ltd.

Signature: Signature:

Printed Name: Printed Name: Ms. Gillian Saw

Title: Title: Project Director

Date: Date:

SFC Finance FRD_V3 (2).pdf

Documents

Transcript of SFC Finance FRD_V3 (2).pdf