2. Agenda
Setting up Currencies and Exchange Rates
Creating Periods in a New Fiscal Year
3. Folio3 – An OverviewFolio3 – An Overview
www.folio3.com@folio_3
4. Folio3 At a Glance
Founded in 2005
Over 200 full time employees
Offices in the US, Canada, Bulgaria & Pakistan
Palo Alto, CA.
Sofia, Bulgaria
Karachi, Pakistan
Toronto, Canada
5. What We Do
We are a Development Partner for our customers
Design software solutions, not just implement them
Focus on the solution – Platform and technology agnostic
Expertise in building applications that are:
Mobile Social Cloud-based Gamified
6. What We Do
Areas of Focus
Enterprise
Custom enterprise applications
Product development targeting the enterprise
Mobile
Custom mobile apps for iOS, Android, Windows Phone, BB OS
Mobile platform (server-to-server) development
Social Media
CMS based websites for consumers and enterprise (corporate, consumer, community &
social networking)
Social media platform development (enterprise & consumer)
Gaming
Social & casual cross platform games (mobile, web, console)
Virtual Worlds
7. Areas of Focus: Enterprise
Automating workflows
Cloud based solutions
Application integration
Platform development
Healthcare
Mobile Enterprise
Digital Media
Supply Chain
8. Areas of Focus: Mobile
Serious enterprise applications for Banks,
Businesses
Fun consumer apps for app discovery,
interaction, exercise gamification and play
Educational apps
Augmented Reality apps
Mobile Platforms
9. Areas of Focus: Web & Social Media
Community Sites based on
Content Management Systems
Enterprise Social Networking
Social Games for Facebook &
Mobile
Companion Apps for games
11. Introduction
A general ledger (GL) is a formal ledger that contains a company's
accounting records.
To make the general ledger functional, you need to:
Setup Currency
Setup the chart of accounts
Fiscal calendars
Legal entities
Etc.
12. Currency and Exchange Rate Setup
Currency setup is a mandatory step in Microsoft Dynamics® AX
and is used to record financial transactions.
Multi-currency functionality may be used if your company does
business in more than one currency
13. Currency Setup in Dynamics AX 2012
General ledger: Click setup, click currency, and then click
currencies.
Reference currency for triangulation
14. Triangulation
Many spot currency cross pairs are not traded against each
other in the interbank market as standard pairs.
Triangulation is a strategy whereby a trader exploits the
relationship between three currencies, as three pairs.
15. Example
An example of this would be:
You have a subsidiary company in Canada, while your primary company is in
the United States. When running reports you want to see the results of the
business operations in Canadian dollars (CAD). To accomplish this, you must
convert your U.S. dollars (USD) to CAD. The system uses the exchange rate
defined on the Exchange rates form to convert the amounts for reporting
purposes.
16. Procedure: Set Rounding Options
From the Currencies form, select a currency.
Tab to the Rounding Rules section.
Round the sums according to a fixed unit for general transaction amounts.
For example, amounts on transactions are rounded to the nearest unit (to
0.01). Specify the general unit for rounding in the General round-off field.
Rounding Option - Enter the unit for rounding amounts, such as 0.10 or
1.00.
17. Rounding Method
Normal - round up numbers 5 and higher and round down
numbers 4 and lower.
Downward - round down all numbers.
Rounding-up - round up all numbers.
18. Accounting and Reporting Currencies
Accounting Currency: The customary monetary unit of measure
used to record the converted monetary value of economic
transactions in ledger accounts. In previous releases of Microsoft
Dynamics AX, this was called the company currency.
Reporting Currency: The monetary unit of measure used to record
the converted monetary value of economic transactions in ledger
accounts for financial and management reporting purposes.
19. Currency Gender
Currency Gender is used for Spanish speaking countries to
define the gender printed on checks and reports. Select
Feminine if the selected currency has a feminine gender and this
gender is used on checks and reports.
The default value for this field is Masculine, which, in effect,
means no gender.
20. Procedure: Create Exchange Rate Types
To access the Exchange rates types form, click General ledger,
click Setup, click Currency, and then click Exchange Rate Types.
Click on the New button to create a new record.
Enter the identification of the exchange rate type in the
Exchange Rate Type Field and a description in the Name field.
Save the record and close the form.
21. Procedure: Create Currency Exchange Rates
To access the Currency Exchange Rates form, click General Ledger,
click Setup, click Currency, and then click Currency Exchange Rates
or navigate from the Exchange Rate Type form.
Select a Exchange Rate Type from the drop-down list.
Click the New button.
Define the necessary exchange rates between a currency pair by
selecting a currency in the From Currency and the To Currency
drop-down list.
22. Procedure: Create Currency Exchange Rates
Define the Quotation unit. Typically the system is based on either one unit
or one hundred units. If the field is set to one hundred units, the exchange
rate should specify the equivalent of one hundred units of the foreign
currency. For example, if the "From" currency is U.S. dollars and the "To"
currency is Euro, the exchange rate should specify how many U.S. dollars
equal one hundred Euros.
Select the date range by entering the From Date and a To Date in the
appropriate fields.
23. Procedure: Create Revaluation Accounts
When running currency revaluation, exchange rate differences
may occur due to the change in exchange rates. This is also used
in the customer/vendor settlement of payments and invoices.
Revaluation processes will generate unrealized gain/loss
amounts where the settlement process will generate realized
gain/loss amounts.
24. Procedure: Create Revaluation Accounts
For each ledger define the main accounts, to account for changes in exchange
rate loss or gain. Perform the following steps to set up ledger and currency
specific exchange rate loss/gain accounts:
Open General ledger, select Setup, select Currency, and then select Currency
Revaluation Accounts.
Select the ledger in the Ledger field.
Select a Currency and define the main accounts that will be posted to for any
unrealized and realized gains/losses for the currency in that ledger.
25. Denomination Currencies
Add the currencies that are denominated as the triangulation
currency and should be triangulated through the triangulation
currency during the currency conversion process.
26. Periods and Fiscal Year Setup
The fiscal year in Microsoft Dynamics AX can be:
Set to any length
Divided into any number of periods
Shared across multiple legal entities
Both fiscal year and periods can be set up by the following
measurements of time:
Years
Months
Days
27. Periods and Fiscal Year Setup
Each period (at the ledger level) can be:
Closed completely or put On Hold to block transaction postings
Set to enable selected users to continue an update of one or more
modules
28. Fiscal Year
A period that a company or government uses for accounting
purposes and preparing financial statements.
The fiscal year may or may not be the same as a calendar year.
29. Fiscal Calendar
Fiscal calendars are shared across multiple legal entities. The benefits of
sharing fiscal calendars include:
Supporting multiple fiscal calendars for each legal entity. For example: Fixed assets
may require two calendars one for auditing purposes and one for tax purposes.
Having multiple calendars allows you to run parallel depreciations.
Reduces the amount of setup required for each legal entity as it is possible to use
the same fiscal calendar for multiple legal entities.
Before posting transactions, a new fiscal year must be divided into periods as
transactions cannot post unless a period is created for the posting date.
30. Scenario
The Accounting Manager, wants to define calendars for different
purposes and share them across different ledgers without
having to create them in each legal entity.
31. Procedure: Create Shared Fiscal Calendar
Click General Ledger, click Setup, and then click Fiscal Calendar.
Click the New Fiscal Calendar button.
Enter the name of the calendar to be created in the Calendar field.
Enter a description of the fiscal calendar in the Description field. This description may print on
reports.
Enter the Start and End dates of the initial fiscal year in the appropriate fields.
Enter a Fiscal Year Name of the initial fiscal year to be associated with this fiscal calendar.
Enter the Length of the period and the Unit of the periods. These fields work together to
determine how many periods will be created.
Click the Create button.
32. Period Types
Opening - the period can be used to record opening balances
from the previous period.
Operating - the period can be used to record accounting
transactions.
Closing - the period can be used to record general ledger
transactions for closing a fiscal period.
33. Review New Periods
An opening period with the Type of Opening.
A number of periods (or period) with the Type of Operating.
A closing period with the Type of Closing.
34. Modifying Fiscal Calendar
To divide an existing period into two periods, click the Divide Period button. Enter the start date of
the new period, and then click OK to create the new period and return to the Periods form.
To create a closing period for a fiscal period, click the Create Closing Period button. The system
automatically creates an opening and closing period for the fiscal year, but not for each individual
period.
To delete period with an Operating Status click the Delete button. The Delete button is not
available if the selected fiscal period has a status of Opening. No warning or error message appears
when an open period with transaction history is deleted. The transactions are not deleted, and the
end date of the period prior to the deleted period changes to coincide with the beginning date of
the next period.
35. Review New Periods
There is no Period Status control on the Fiscal Calendar form.
This is because when you are sharing a calendar across multiple
legal entities, all legal entities may not be ready to be closed at
the same time. Therefore, you control the period status on a
per-legal entity basis, in their ledger (General ledger > Setup >
Ledger > Ledger calendar)
36. Contact
For more details about our Dynamics AX development
services, please get in touch with us.
dynamics@folio3.com
US Office: (408) 365-4638
www.folio3.com
