March 18-21, 2013New Orleans

#conv13

Microsoft Dynamics® AX 2012 organizational model frameworkParth PandyaSenior Program ManagerMicrosoft

CSAX04

Josef SchauerSenior Program Manager

Microsoft

Session focus

Modeling organizational

hierarchies

Using hierarchies in business scenarios

Extending out-of-the box scenarios

• Why?• Model your business as you operate• Ability to do both internal and external reporting• Hierarchical structure used in defining business policies and rules, for

security access and reporting rollup• Share data and transactions between companies

• What?• Framework that allows modeling the organization• Extensible solution for suiting various business scenarios• Integrates with other application frameworks

The why and what of organization modeling

Modeling organizational hierarchies

Microsoft Dynamics AX organization modelconcepts and definitions

Legal entityRegistered or legislated legal

structure

Granted the authority to enter into legal contracts

Required to prepare statements that report on its performance

Own assets and responsible for its liabilities

Operating unit

Divides the control of economic resources and operational processes

among people

Responsible internally for its performance

A node in an organizational model hierarchy, mapped to the dimensions

– cost center, department, or business unit

Conceptual model

Internal organization

Party

OrganizationPerson

External organization

TeamOperating unitLegal entity

Organization hierarchy

Purpose

*

***

Cost center

Retail channel

Value streamDepartmentBusiness

unit

Demo

Modeling organizations

Demo: Restructuring your organization

Contoso Group

Contoso Consulting

Contoso

Consulting FR

Contoso

Consulting GB

Contoso

Consulting USA

Contoso Retail

Before Reorganizing departments

DEMO

After

Contoso Group

Contoso Consulting

Contoso Consulting

Europe

Contoso

Consulting FR

Contoso

Consulting GB

Contoso Consulting

USA

Contoso Retail

Using hierarchies in business scenarios

• Integration with application frameworks • Address book • Financial dimensions • Policy framework • Extensible data security

• Transaction scenarios • Procurement and sourcing • Human resources • Travel and expense• Retail operations

Application scenarios

Financial reporting using Management Reporter

Scenarios for today’s session

Retail operations using organization hierarchies

Financial reporting using Management Reporter

Dynamically align reporting trees with Microsoft Dynamics AX organizational hierarchies• Create financial reports using

organization hierarchies created in Microsoft Dynamics AX 2012

• Dynamically update a Management Reporter reporting tree when Microsoft Dynamics AX organization hierarchy changes

• Uses report date to select corresponding organization hierarchy

Demo: Using organization hierarchies in Management Reporter

Retail – conceptual modelPartyParty

relationships

TeamOperating unitLegal entity

Internal organization

Organization

Organization relationships

External organization

PersonOrganization

hierarchy

Purpose

Business unit

Cost center Department Value

streamRetail

channel

Online storeRetail store

Retail hierarchies• New organizational hierarchy types will

surface in the applicable context• Assortment• Replenishment• Reporting

• Multiple hierarchies of the same type• A channel instance can appear only once

per hierarchy

AssortmentWhere and when a product is available

Base itemassortment

Winter sports

Motor sports

All stores

NE region stores

Large stores

Demo: Retail hierarchies

Extending out-of-the-box scenarios

Demo

Extensibility: Integrating org model and data security

Demo: Securing data using organizational hierarchies

Contoso Consulting

Sales and marketing

Project operations

Department hierarchy

Before Position Department

Finance Manager Finance

Treasurer Finance

Purchasing Agent Sales and Marketing

Store Manager Retail Operations

Consultant Service Operations

Project Manager Project Operations

Operations

Retail operations

HR recruiter

AfterFinance

Serviceoperations

• User->Role->Legal entity mapping restricts user’s access to the role to specified legal entity or entities

• Extensible data security framework secures data based on any condition

• Filter master data or transactional data based on organizational membership

• Master or transactional data entity must have a foreign key relationship with the organization

• Data access is updated automatically with hierarchy changes

Data security

• Understand your security, reporting, and policy needs

• Create one or many hierarchies based on business scenarios and organizational complexity

• Use framework extensibility to meet business goals

Considerations while modeling organizations:

Related sessions• CSAX03: Role-based security in Microsoft

Dynamics AX 2012

• CSAX13: Financial reporting with Microsoft Dynamics AX and Management Reporter

Resources• Implementing and Extending the Organization Model

(White paper) [AX 2012]: http://technet.microsoft.com/en-us/library/hh292602.aspx

• White paper on developing XDS policies: http://bit.ly/tTsB7K

Q & A

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© 2013 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.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.

Pains and challengesCharlie – President - CEO•Wants to structure organizations to align with business strategy•Needs to implement policies by organization structure

Sara – CFO Ken - Controller• Wants to separate statutory or legal structure from operating structure• Implements financial controls on legal entities and Legal entities data access

Karen – Procurement Agent• Has limited visibility into the company’s operating and statutory structure • Needs to enter transactions in an intuitive way with minimal training

Claire – HR Manager• Needs to ensure position reporting hierarchy are in place for approvals• Minimum maintenance to accommodate changes

Simon – System Implementer / Consultant• Requires configuring application to represent organizational concepts• Needs to extend for industry specific organization concepts

Application scenario

Integration for purchase requisition

Operating unitLegal entity

Internal organization

*

1

Purchase requisition

Purchase request

Purchase policy

Buying legal entity

Receiving operating unit *

1

*

1

Configuring organization model

Configuration task NavigationCreate legal entities Organization administration > Setup >

Organization >Legal entities

Create operating units Organization administration > Setup > Organization > Operating units

Create hierarchies Organization administration > Setup > Organization > Organization hierarchies

Assign purposes to hierarchies

Organization administration > Setup > Organization > Organization hierarchy purposes

Assign users to organizations

System administration > Setup > Security >Assign users to roles > Add organizations

Create dimensions using organizations

General ledger > Setup > Financial dimensions > Financial dimensions

SimonSystem Implementer/Consultant

Extending organization model framework

Development task Type

Create new custom operating unit type Model

Define data model to include types of organizations as foreign keys and update queries

Model and code

Create organizations as backing entities for financial dimensions

Model

Create extensible data security policies Model

Create business policy type using business policy framework Model and code (optional)

Build user experience Model and code

IsaacBusiness Application Developer

Contoso Group

Contoso Entertainment Systems

Contoso Entertainment

Systems Europe

Contoso Entertainment Systems USA

Home Theaters and TVs

Car Audio and Video

Contoso Retail

Contoso Retail Europe

Contoso Retail USA

Statutory hierarchy

Legal entity

Legal entity

Legal entity

Business unit

Contoso Consulting

Services

IT Consulting

Application

Development

Systems

Integration

Network

Services

Administration Finance

Operating hierarchy

Business Unit

Business Unit

Department

Legal Entity