Dynamics AX Localization - Considerations when deploying in APAC Markets

BRK330

Hao FanSr. Program Manager LeadMicrosoft Corporation

Rake GuiSr. Development LeadMicrosoft Corporation

Disclaimer© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. Other names and brands may be claimed as the property of others.

Microsoft Dynamics AX 2012 R2 is a pre-release product under development. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft. Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. All product release dates and features specified are preliminary based on current expectations, and are subject to change without notice. Microsoft may make changes to specifications and product descriptions at any time, without notice.

Sample code included in this presentation is made available AS IS. THE ENTIRE RISK OF THE USE OR THE RESULTS FROM THE USE OF THIS CODE REMAINS WITH THE USER.

MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPERTY RIGHTS IS GRANTED BY THIS PRESENTATION. Microsoft products are not intended for use in medical, life saving, or life sustaining applications.

Session Focus

Global Single InstanceAnd Country Context APAC Localizations

Global Framework and Feature Adoption

Global Single Instance and Country Context

Global Organization

Head Quarter ManufacturerR&D Center Sales Office

Global Single Instance Objectives

Reduce TCO for global organization

Enable commerce among units within highly integrated organization

Standard process and consolidated reports across different countries

Avoid data redundancy and inconsistency

Availability25 Countries in Dynamics AX 2012 RTM11 Additional Countries in Dynamics AX 2012 R2

Single LayerRegional GLS Layers ConsolidatedAll country localizations in SYS layerAll industry solutions in SYS layer

Fixed SchemaNo compilation needed for changing configuration keyCountry/region configuration keys retained for partners

Global Single Instance Consolidation

AX2012 R2

AX2012 RTM

Public Sector

Service Industries

Manufacturing

Retail & Distribution

Country Specific Features

Visible to the company in the same country

Simplified for implementation and maintenance

Not shared with other countries through setup change

Translated for specific country only

Country specific functionalityCountry-specific functionality is a functionality, which is required only in one country or a limited number of countries and is neither required nor relevant in other countries

What is used to be – AX2009?Country configuration keys.Due to Instance-specific nature of Configuration Keys,these Country specific features were made available across the AX installation.

What Changes in AX 2012?Relation of country-specific functionality to the country context (country location) of the relevant party (legal entity, customer, vendor, business relation and employee)

Isolation of country specific functionality

Country Context

Country Context

Country Context

Country ContextCountry Context

Country/Region of the primary address of the Legal EntityWhen define the Legal Entity, user need to give the Country/Region.

Attribute: CountryRegionCodesUsing CountryRegionCodes instead of configuration key.This property will carry the ISO country codes of the Countrieswhich the AOT artifact should be made available.The attribute accepts a string of comma separated ISO Codes.

Attribute: CountryRegionContextFieldIt is possible to tie the Country specific functionality toall kinds of Party.CountryRegionContextField will serve as a provider of the context field.e.g. EnterpriseNumber(Belgian Functionality) can be tied to the Address of the Customer, so that it will only be visible if the customer is in Belgium.

Isolation of country specific functionality

- AX 2009- AX 2012

APAC Localizations

Official Microsoft Localizations for APAC CountriesChina, Japan, India, Thailand, Malaysia, Singapore, Australia, New Zealand, Saudi Arabia and South Africa

Country Localizations Changed in AX2012 R2China, Japan, India and Thailand

Regulatory FeaturesAnnounced mandated tax, accounting, financial,  process or statutory reporting functionalities that are explicitly required by the applicable government authority to be in compliance with the local laws by a certain date

Local Business Practice FeaturesFeatures and functionalities designed for business scenarios in a specific country or region

Industry SolutionsManufacturing , Retail & Distribution and Services Industries solutions are available to all APAC countries.India is the only APAC country for which specific localizations are being required to incorporate with industry solutions.

APAC Localizations

China Localizations

• China Chart of accounts• Chinese voucher system• GB/T 24589 China accounting

software data exchange function

• Integration with the Chinese special golden tax system

• Copy and reverse the voucher• Journal approval• Show negative debits and

credits• Fiscal period closing

• Chinese user interface specials • Financial ledger inquiries• Chinese fixed asset

enhancement• Inventory cost method:

monthly average cost• Inventory value by sites in

ledger accounts• Chinese special inquiries• Postal code importing• Chinese special reports

China Localizations

• China Chart of accounts• Chinese voucher system• GB/T 24589 China accounting

software data exchange function

• Integration with the Chinese special golden tax system

• Copy and reverse the voucher• Journal approval• Show negative debits and

credits• Fiscal period closing

• Chinese user interface specials • Financial ledger inquiries• Chinese fixed asset

enhancement• Inventory cost method:

monthly average cost• Inventory value by sites in

ledger accounts• Chinese special inquiries• Postal code importing• Chinese special reports

China National Standard CertificationGB/T 24589Financial information technology – Data interface of accounting software

GB/T 25000Software engineering – Software product Quality Requirements and Evaluation

GB 18030Information technology – Chinese coded character set

China Chart of Accounts

Hierarchical structure compliant with Chinese Accounting Standards

Display in a tree view based on account level settings.

Support a China specific account type

China Voucher System• Chinese voucher types and number in

ledger entries based on CBAJS and ASBFS

• Rules to validate before posting

• Print in a specific Chinese voucher format before or after posting

• A new general journal form for entering Chinese voucher journals efficiently

• Voucher number continuity check and fix

China Golden Tax System Requirements• Golden Tax is an integrated national wide VAT

monitoring system.

• Government certified tax software calculates VAT and prints official VAT invoices based on national taxation law.

• China government requires all VAT invoices are issued through the Golden Tax system.

China Golden Tax System IntegrationGenerate VAT invoices complied with the Golden Tax amount limitation and line limitation

Export during the posting or in batch

Import and Export through AIF

Encapsulate the file format defined by the Golden Tax system

India Localizations

• Service Tax (Tax on Services ) • Excise Duty (Tax on

Manufacturing ) • VAT (Value Added Tax )• Sales Tax (Tax on Sales )• Customs Duty (Tax on Import /

Export) • Export Incentives under EXIM• Formula Designer • Direct tax – TDS• Direct tax – TCS

• Depreciation per the Companies Act

• Depreciation per the Income tax Act

• Stock transfer transactions• Miscellaneous Charge • Financial statements-Schedule

VI• Tax Integration with Retail POS• Tax Integration with Project

Management and Service management

• Tax Integration with Process Industry

India Localizations

• Service Tax (Tax on Services ) • Excise Duty (Tax on

Manufacturing ) • VAT (Value Added Tax )• Sales Tax (Tax on Sales )• Customs Duty (Tax on Import /

Export) • Export Incentives under EXIM• Formula Designer • Direct tax – TDS• Direct tax – TCS

• Depreciation per the Companies Act

• Depreciation per the Income tax Act

• Stock transfer transactions• Miscellaneous Charge • Financial statements-Schedule

VI• Tax Integration with Retail POS• Tax Integration with Project

Management and Service management

• Tax Integration with Process Industry

Point of TaxationIn the current application Service tax functionality is working on Cash Basis, where service tax is posted in interim account at the time of posting of invoice and Service tax liability identified on realization of payment of invoice.

With the amendment of Point of Taxation rules the service tax on receipt of payment will be replaced by new basis :• Issue of invoice or payment if made within 14 days of completion of service . • If the invoice is not issued within prescribed period, then date of completion of

service should be the point of taxation.

India Service Tax

India Service Tax

Account Debit CreditPurchase Order

Receipt 1000

Interim Recoverable 120

Accounts Payable 1120

Cash Basis Point of TaxationVend Invoice

Vend Payment

Transaction Net = 1000 Service Tax Rate = 12% Tax Amount = 120

Account Debit CreditAccounts Payable 1120

Recoverable 120

Bank 1120

Interim Recoverable 120

Account Debit Credit

Purchase Order Receipt 1000

Recoverable 120

Accounts Payable 1120

Account Debit CreditAccounts Payable 1120

Bank 1120

India Service Tax

Account Debit CreditAccounts Payable 1120

Recoverable 120

Bank 1120

Interim Recoverable 120

Cash Basis Point of TaxationVend Advance Payment

Invoice with Payment

Transaction Net = 1000 Service Tax Rate = 12% Tax Amount = 120

Account Debit Credit

Purchase Order Receipt 1000

Interim Recoverable 120

Accounts Payable 1120

Account Debit CreditAccounts Payable 1120

Recoverable 120

Bank 1120

Interim Recoverable 120

Account Debit Credit

Purchase Order Receipt 1000

Interim Recoverable 120

Accounts Payable 1120

Pro rataThe feature ensures that depreciation is calculated based on the exact number of days the asset is in use.

Example: if in the middle of the fixed asset calendar period, the "depreciation run date" value in the "Fixed Asset details - Value model" form, or the "To date" value in the depreciation proposal form, will be used correctly to comply with the pro-rata requirement.

India Fixed Asset Pro Rata

Without the feature

Contoso purchased machinery for 250,000 Rupees on November 20, 2005. The rate of depreciation is 10%. Contoso closes the accounts on March 31 every year.

Month DaysNov 30

Dec 31

Jan 31

Feb 28

March 31

Totals 151

Month DaysNov 11

Dec 31

Jan 31

Feb 28

March 31

Totals 131

With the feature

250000 x 10% x 151/365 = 10342.47

250000 x 10% x 131/365 = 9041.10

India Retail LocalizationsVAT Service taxCSTReplenishmentTax summary Integrated with tax basis MRPMultiple MRPReturn order and order cancellationCustomer order shipping charges

India Tax Modeling Design

CreditNote

CreditNote

InvoiceRegister

InvoiceRegister

ProjectCost

ProjectCost

ProjectQuotation

ProjectQuotation

ProjectInvoice

ProjectInvoice

ProjectRevenue

ProjectRevenue

GeneralJournal

GeneralJournal

QualityOrder

QualityOrder

BOEBOE

ImportOrder

ImportOrder

PurchQuotation

PurchQuotation

InventMovement

InventMovement

StockTransfer

StockTransfer

SalesQuotation

SalesQuotation

PurchInvoice

PurchInvoice

CustomJournal

CustomJournal

VendJournal

VendJournal

ExportOrder

ExportOrder

ReturnOrder

ReturnOrder

SalesInvoice

SalesInvoice

Sales Order

Sales Order

CreditNote

CreditNote

PurchInvoice

PurchInvoice

Common Interfaces

High Extensibility

Implementation Independent

Base Interface

Excise Duty Interface

Sales Tax Interface

Service Tax Interface VAT Interface Customs Duty

InterfaceWithholding Tax Interface

… ...

India Tax Modeling Design

Tax Calculation Engine

Tax Transaction Post Engine

Excise Register Engine

Purchase Order

Sales Order

Stock Transfer

General Journal

Implements

Tax Model Factory

CreatesConsumed by

Japan Localizations

• Consolidated invoice for AP and AR

• Payment term and due date control

• Bill of exchange endorsement• Consumption Tax Declaration• Allow only positive DR/CR• T-account journal entry• Show negative debits and

credits

• JBA bank format (Electronic fund transfer)

• Financial Statements• Postcode import • Japanese Era• Kana name• Usability improvement by

separate debit and credit fields

Japan Localizations

• Consolidated invoice for AP and AR

• Payment term and due date control

• Bill of exchange endorsement• Consumption Tax Declaration• Allow only positive DR/CR• T-account journal entry• Show negative debits and

credits

• JBA bank format (Electronic fund transfer)

• Financial Statements• Postcode import • Japanese Era• Kana name• Usability improvement by

separate debit and credit fields

Japan Invoicing Pain Points

Large number of vendor and customer invoices to pay and settle

Due date falling on a non-business date

Different holidays and due date rules in different countries/regions

Monthly Consolidated InvoiceAccelerate AR invoicing and settlement process• Group multiple customer invoices into a single consolidate

invoice for easy settlement• Provide status life cycle mgmt. on the consolidated invoice• Send consolidated invoice report to customer for the

reconciliation info with opening balance, paid amount, invoice amount and outstanding amount 

Accelerate AP invoicing and settlement process• Group multiple vendor invoices into a single consolidate invoice

and make a payment against it • Provide status life cycle mgmt. on the consolidated invoice• Send consolidated invoice report to vendor for confirmation

Customer Invoice

Vendor Invoice

Payment Calendar & Due Date ControlOption to secure that due date on documents and journals never falls on a weekend or holiday

Payment calendars are global and can be defined for a location e.g. country and region, or for a specific purpose, e.g. Method of payment

A new terms of payment as cutoff day to calculated the due date

Bill of Exchange Endorsement

Provide the full life cycle management of Bill of Exchange

Enable the segregation of duty RAC( recording, authorization and custody)Automate the accounting entries to reduce the error happens in manual book keeping

Manage Bill of Exchange endorsement in one document based list page

Draw BoE

• Dr BoE (Notes Receivable)

• Cr AR

Endorse to Vendor

• Dr AP• Cr Endorsed

BoE

Settle endorsed BoE if go maturity

• Dr Endorsed BoE

• Cr BoE (Notes Receivable)

Reversal of endorsed BoE

• Dr Endorsed BoE

• Cr AP

Sales tax returnRequired by Japanese Taxation Authority in Japanese layout

WorksheetAssist the calculation of local consumption tax

Official tax reportAutomatically generate the consumption tax return form result based on the tax transaction data from financial sheet and tax calculation sheet

Japan Consumption Tax Report

Thailand Localizations

Thailand Revenue Dept. Certification on AX2012Microsoft Dynamics AX 2012 has received certification by the Thailand Revenue Department. Partners no longer need to obtain certification.• Multiple Tax Branch• Average VAT• Input / Output VAT• Realized & Unrealized VAT• Thailand Withholding Tax• Inventory Stock Card Reports• Thailand Inventory Movement

Thailand Localizations

Thailand Revenue Dept. Certification on AX2012Microsoft Dynamics AX 2012 has received certification by the Thailand Revenue Department. Partners no longer need to obtain certification.• Multiple Tax Branch• Average VAT• Input / Output VAT• Realized & Unrealized VAT• Thailand Withholding Tax• Inventory Stock Card Reports• Thailand Inventory Movement

Multiple Tax BranchesFor VAT registered business, Thailand revenue department requires that every transaction is tagged with a Tax Branch.

As a Financial DimensionTax Branch is able to be set for all transactions through Financial Dimension.

Link with Inventory Dimension SiteDefaulting Tax Branch value from Site for transactions which have inventory info.

Thailand Certification

Global Framework and Feature Adoption

Global vs. Local Small set of global features with large amount of country

specific features including some duplicate features across country localizations to larger amount of shared global features with smaller set of country specific features

Incorporate and leverage all the global frameworks introduced in AX 2012 into the local features

Global Framework and Feature Adoption• Country context• Relational 101• Role security framework• SSRS report framework• Financial dimension framework• Source document framework• Accounting distributions and

sub ledger framework• Global address book

Global Frameworks• Bank reconciliation• Misc. charge on free text

invoice line level• Tax adjustments on purchase

invoice line level• Default description

enhancement (Transaction text)• Import exchange rate from web

source

Global Features

Global Framework and Feature Adoption• Country context• Relational 101• Role security framework• SSRS report framework• Financial dimension framework• Source document framework• Accounting distributions and

sub ledger framework• Global address book

Global Frameworks• Bank reconciliation• Misc. charge on free text

invoice line level• Tax adjustments on purchase

invoice line level• Default description

enchantement (Transaction text)

• Import exchange rate from web source

Global Features

Bank Reconciliation Pain PointsMost banks provide electronic Bank Statements in different formatsElectronic bank statement reconciliation only available to China in AX 2009.

Automatic match is needed to improve efficiencyAX 2009 China Bank Reconciliation matching rule is too simple and not flexible.

Hard to cancel after reconciliation

Manually enter and post certain transactions from statement

Bank Reconciliation Feature

Global featureDeprecate AX2009 China bank reconciliation Existing manual bank reconciliation is still available

Import bank statementsImport bank statements through AX AIFBuilt-in common bank statement formatsCan extend to any formats

Reconcile with AX recordsReconcile multiple statements togetherEasily matching and cancelling with validation

Automation of processMatching proposal for manual matchingAutomated E2E processIntegrated with AX workflow

Flexible matching rulesEasy to define and powerfulGrouped into Rule setShared by multiple banks

Make adjustmentPost bank initiated transactions directly from bank statements Build on AX6 source document framework

Bank Reconciliation Demo

Setup for Bank Statements

Import

Bank Statements Import

Setup for Bank Reconciliation

Bank Reconciliation

Related Sessions BRK301 Overview of Dynamics AX 2012 BRK302 What's new in Dynamics AX 2012 R2

BRK331 Dynamics AX Localization - Considerations when deploying in Brazil

BRK332 Dynamics AX Localization - Considerations when deploying in Russia and Eastern Europe

© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.