Setting up a link between a financial dimension and the site inventory dimension

Setting up a link between a financial dimension and the site inventory dimension enables a company to produce profit and loss figures per site. Use the following procedures to configure and manage financial dimension links for your sites. Set up a financial dimension link to a site Activate the financial dimension link Lock the financial dimension link Unlock the financial dimension link Deactivate the financial dimension link

Note

The Logistics configuration key must be enabled to carry out these tasks.

Set up a financial dimension link to a siteEstablishing a financial dimension link to a site results in the following conditions: A financial dimension is associated with the site inventory dimension. A financial dimension value is associated with each site.

1. Click Inventory management > Setup > Posting > Dimension link.
2. In the Dimensions field, select the financial dimension that you want to link to the site inventory dimension. The Department dimension is selected by default, but you can change it.
3. Click the Sites button to open the Sites form. The financial dimension that you selected (in the previous step) now appears as a column header on the Overview tab.
4. Select a site. In the Dimensions column, select a financial dimension from the lookup list. The list displays the dimensions that are set up in the Dimensions form, which is located at Basic > Dimensions.

The specified financial dimension value is now associated with the selected site. Repeat this step for each site. Activate the financial dimension linkActivating the financial dimension link results in the following conditions: When new transactions are created that carry both inventory dimensions and financial dimensions, the linked financial dimension is assigned the dimension value that is specified for the site. You can post transactions that carry both inventory dimensions and financial dimensions even though the linked financial dimension value does not match the value that is specified for the site. On open transactions that carry both inventory dimensions and financial dimensions, you can change the value of the linked financial dimension.

Note

You must assign a financial dimension value to each site before you can perform this task.

1. Click Inventory management > Setup > Posting > Dimension link.
2. In the Current status: field group, click the Activate link button.
3. The program displays a dialog box that asks whether or not to update the value of the financial dimension value on all open transactions so that it matches the value that is specified for the site.
4. Click Yes. The program updates all open transactions accordingly.

Note

The transactions are updated even if the resulting set of financial dimensions is not a valid combination that is set up in the Dimension sets. This step is the same as running the Linked dimension update batch job, which you can access at Inventory management > Periodic.

1. The program generates the Account dimension validation report, which you can access at Inventory management > Reports > Base data. This report lists the accounts, if any, that are used for inventory-related postings, and that will override the value of the financial dimension that is selected in the Dimension link form.
2. The Current status: button states that the financial dimension link is active, and the colour of the button is yellow. The Dimensions field is unavailable.

Lock the financial dimension linkLocking the financial dimension link results in the following conditions: New inventory transactions that carry both inventory dimensions and financial dimensions are assigned a financial dimension value based on the value that is specified for the site. You can post transactions that carry both inventory dimensions and financial dimensions only when the linked financial dimension value matches the value that is specified for the site. You cannot change the value of the linked financial dimension on transactions that carry both inventory dimensions and financial dimensions. You cannot edit the financial dimension value that is associated with a site. The prerequisites for locking the financial dimension link are: A financial dimension link with the site inventory dimension must be established. The multisite functionality must be activated.

1. Click Inventory management > Setup > Posting > Dimension link.
2. Click the Lock link button.
3. The program generates the Account dimension validation report. This report lists any general ledger accounts that are used for inventory-related postings and that will override the value of the linked financial dimension that is selected in the Dimension link form.
4. The program displays a dialog box stating that it will update the linked financial dimension value on all open transactions so that the linked financial dimension value matches the value that is specified for the site.
5. Click OK. The program updates all open transactions accordingly.
6. The Current status: button states that the financial dimension link is locked, and the colour of the button is green.

Unlock the financial dimension linkOnce the financial dimension link is locked, you can unlock it. When it is unlocked, you can perform the following tasks: Post transactions that carry both inventory dimensions and financial dimensions, even though the linked financial dimension value does not match the value that is specified for the site. Edit the value of the linked financial dimension on open transactions that carry both financial dimensions and inventory dimensions. Edit the financial dimension values that are set up in the Sites form.

1. Click Inventory management > Setup > Posting > Dimension link.
2. Click the Unlock link button.
3. The Current status: button states that the financial dimension link is active, and the colour of the button is yellow.

Deactivate the financial dimension linkWhen the financial dimension link is deactivated, the following conditions apply: The link between the site inventory dimension and the financial dimension is removed. The linked financial dimension is not assigned the dimension value that is specified for the site inventory dimension. You can select a different financial dimension to link to the site inventory dimension.

1. Click Inventory management > Setup > Posting > Dimension link.
2. Click the Deactivate link button.
3. The Current status: button states that the financial dimension link is inactive, and the colour of the button is red.

 

RESERVATION AT A GLANCE

Reservation is an interesting functionality of AX. However, this is sometimes confusing.

By default, AX allows user to make reservation manually for physical on hand quantity in stock only. So if you want to reserve items that are on Purchase Order and not yet received, you need to activate the parameter in Inventory Management / Set up / Parameter/ General / Reserve.

Manual reservation:

Create a sales order with a line and make sure these fields are set as:

– Sales Order header, Set up tab, Reserve: Manual

– Sales Order line, Set up tab, Reserve: Manual

To reserve an item, on the Sales Order line, click Inventory, Reservation. Select the appropriated line that you want to reserve from and enter the reserved quantity.

  

Auto reservation:

Sales Order header, Set up tab, Reserve: Automatic

Sales Order line, Set up tab, Reserve: Automatic

AX will do reservation automatically base on the Lowest Storage Dimension Id and with the oldest available date (FIFO)

Auto reservation by Storage Dimension:

When automatic reservation is active, items are reserved according to the selected Primary stocking dimension, provided that the dimension is also specified for the actual item transaction. In other words, if the warehouse is specified as primary stocking and is also specified on a sales order line, automatic reservation only reserves items at this warehouse. If the primary stocking dimension is not specified on the line on automatic reservation, the reservation is made against the dimension with the lowest alphanumeric ID.

If the Primary stocking dimension value for an ordered reservation is changed upon physical receipt, the order line is not re-reserved. However, if a dimension is not Primary stocking and a dimension value is changed on physical receipt, the line is re-reserved and updated to the new value.

Date-Controlled and Backward from Delivery Date

• Date-controlled: Reservation occurs according to the FIFO principle. This means that the complete sales order line quantity or quantity that is unavailable as on-hand is reserved against the ‘oldest’ purchase order with the status ‘Ordered’ with the delivery date falling before the delivery date of the sales order line.
• Backward from ship date: Reservations are processed according to the LIFO principle, that is, the receipt with the most recent date is reserved.

Inventory Model Group / Set up / Reservation

Explosion reservation:

This is according to Coverage group set up / Positive date.

Lock Reservations

Use the Lock reservations function to lock reservations on inventory dimensions where the inventory dimension does not have primary stocking selected in the dimensions group attached to the item. This is useful if, for example:

To reserve a specific lot for a sales order in the future and for no other sales order lines using automatic reservation to be reserved against this lot.

To re-reserve a sales order line for a new inventory dimension and for no future automatic reservations to reserve against the batch on which you have set the locked reservation parameter.