Lump sum feature in Microsoft Dynamics AX (AX 7)

Lump sum deduction may be taken in lieu of full customer payment in case if they render any advertising services.

Let’s get down to brass tacks. How can you perform it in AX 7?

So far as with a new customer without transactions it would be very easy to show you this process – let’s create a new customer.

Customer

Add created customer to the Customer category hierarchy.

Go to Sales and marketing > Trade allowances > Customer category hierarchy

Create the new category hierarchy.

Customer category hierarchy

Click Add/remove customers.

Click Add button.

Customer category

Chose all your customers, including newly created and click OK button.

Add customers

Check that all selected customers have been added to the node.

Selected customers

Go to the Sales and marketing > Setup> Trade allowance > Merchandising event category

And check that the category with Lump sum default type exists.

Merchandising event category

Go to the Sales and marketing > Trade allowance > Trade allowance agreements

Create the new trade allowance agreement.

Specify the header fields:

Trade allowance agreement header

Switch to the Customers fast tab and add customer to your trade allowance agreement

Trade allowance agreement header add customer

Add a new line:

Agreement line

Switch to the Amount fast tab and specify lump sum amount.

Lump sum amount

You must choose Payment type and Pay to.

If you chose pay using accounts payable, you have to enter a vendor account into the pay-to field. In this case, AX will create vendor invoices.

If you chose customer deductions, you have to select a customer account in the pay-to field. In this case, AX will credit the customer’s account.

If you chose invoice customer deductions, you have to select a customer account in the pay-to field. In this case, AX will create customer invoices.

You should confirm trade allowance, only after that Approve and Decline buttons will be available.

Confirmation trade allowance agreement

Once you confirm agreement the status will be changed to “Confirmed” and Approve and Decline buttons will be available.

Click Approve button. Until lump sum is approved, the customer cannot collect the lump sum.  It is common practice approve lump sum only when the customer has done his part of the contract (trade allowance), for instance have run an ad for a specific product.

Enabled Approve Decline buttons

Once the merchandising event (in our case it’s – lump sum) is approved, a free text invoice with the lump sum as a negative amount is created.

When you click Approve, you will see the following message:

Lump sum infolog posting

Message about posted invoice will be displayed.

Free text invoice number

To check this invoice, go to the Accounts receivable > Invoices > All free text invoices

Free text invoice

Open invoice and expand Line details fast tab – there you will see what associated with this claim is.

Line details for free text invoice

Check the customer balance

Customer balance

About posting

The lump sum for the negative invoice:

  • debits the lump sum expense account
  • credits the accounts receivable account for the customer balance.

Lump sum posting in graphical view:

Lump sum posting

Let’s see the voucher transactions form in more detail:

Voucher transactions - part1

Voucher transactions - part2

Lump sum expense account set on the trade allowance parameters form:

Sales and marketing > Setup > Trade allowance > Trade allowance management parameters

Trade allowance management parameters

Accounts receivable account for the customer balance set on the Customer posting profile form:

Account receivable > Setup > Customer posting profile

Customer posting profile

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