March 18-21, 2013New Orleans

#conv13

Microsoft Dynamics® AX localization—considerations when deploying in APAC marketsHao FanGroup ManagerMicrosoft

CSAX45

Session focus

Global Single Instance And Country Context

APAC Localizations Global Framework and Feature Adoption

RapidStart and Demo Data

Global single instance and country context

Global organization

Headquarter R&D Center Manufacturer Sales Office

Global single-instance objectivesReduce 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

Availability• 25 Countries in Dynamics AX 2012

R1• 11 Additional Countries in

Dynamics AX 2012 R2

Single layer• Regional GLS Layers Consolidated• All country localizations in SYS

layer• All industry solutions in SYS layer

Fixed schema• No compilation needed for

changing configuration key• Country/region configuration keys

retained for partners

Global single-instance consolidation

Manufacturing

Public Sector

Retail & Distribution

Service Industries

AX2012 R2

AX2012 R1

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—AX 2009?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 ContextCountry Context

Country Context

Country Context

Country Context

Country ContextCountry Context

APAC localizations

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

Country Localizations Changed in AX 2012 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

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

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 and due date control

Option 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 endorsementProvide 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

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 accountsHierarchical 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 fixed asset pro rataPro 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

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 Days

Nov 30

Dec 31

Jan 31

Feb 28

March 31

Totals 151

Month Days

Nov 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 designCommon interfacesHigh extensibilityImplementation independent Credit

note

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

Base Interface

Excise Duty

Interface

Sales Tax Interface

Service Tax

Interface

VAT Interface

Customs Duty

Interface

Withholding 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

Thailand localizationsThailand Revenue Dept. Certification on AX 2012Microsoft 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 and unrealized VAT• Thailand Withholding Tax• Inventory stock card reports• Thailand Inventory Movement

RapidStart and demo data

RapidStart—Japan• Besides the shared common questions for all the countries, additional

36 new questions tailored to Japan specific contents are defined by functional areas and are divided by question groups.

• For these questions needs to be answered via the Microsoft® Excel® sheet list, the sample answers in Japanese version are provided.

RapidStart—China localizationGoal—simplicity• China localization includes 25 questions in total.• Cover all Chinese localization features except

financial statements.

Include 2 Chinese chart of accounts • Chart of accounts defined in the new

accounting principles• Chart of accounts defined in the old

accounting principles• Dimensions for Cash flow and Ownership

changing reports

Include configurations for all local features • Chinese voucher types• Two special depreciation methods of fixed assets.• Tax integration with the Golden tax system• Inventory value and costing

method configurations

Fast and easy setup• 110+ questions covering all major aspects of India localization.• Default answers (where applicable) to match with the AX demo data.• Default answers designed to ensure maximum fit to the current tax policies/laws.

Chart of account as per Schedule VI of Companies Act• Chart of account defined as per the Schedule VI of Companies Act so it will be convenient for the users to set up financial statements (not included in RapidStart India localization) in accordance to the schedule.

Include setup configurations for local features including:• TDS• TCS• VAT• Sales tax• Service tax• Excise• EXIM• Customs

RapidStart—India localization

Microsoft Confidential35

Demo data—JapanMaster data available in

Japanese language

Setup to enable scenarios

Sample transaction data to reflect localization

features

Demo script to prove value

proposition and “how to” guide

Overview• Transactions for year 2011, 2012 and 2 months of 2013.• Cover modules of General ledger, Cash and bank management; Accounts receivable, Accounts payable, inventory and warehouse management and Production control.• 5 Demo scripts covering all Chinese features and 72 reports.

5 demo scripts• Financial management:

o Chinese chart of accounts and dimensionso Financial statements (balance sheet, Profit & Loss, Cashflow statement, Ownership changing statement)o Chinese vouchers and ledger books.o Fiscal period closing.

• Financial reportso 11 General ledger reportso 14 Accounts receivable reportso 14 Accounts payable reports.

• Fixed asset from Acquire to retire:o Two Chinese special depreciation methods Double-balance reduce method and Sum of Year-digits method.o 5 Chinese special depreciation policies, i.e., starting depreciation from the next month of acquisition.o Source type of fixed assets.

• Tax integration with the Golden tax system• Inventory and production

o Monthly average cost methodo Inventory value by sites.o 11 inventory reports and 7 Production reports.

Demo data—Contoso China (CNMF)

Microsoft Confidential37

• Overview:• Transactions for year 2011-12 and 2012-13 till February 2013 .• Cover modules of General ledger, Cash and bank management; Accounts receivable, Accounts payable,

inventory & warehouse management and Fixed Assets .• 13 Demo scripts covering basic tax scenarios of Excise, VAT, Sales Tax, Service Tax and Customs Duty .

• 13 demo scripts:• Sales tax :• VAT (Value Added Tax) • Excise Duty • Service Tax• Custom Duty• Excise – Credit Note • Excise – Sales Return• Depreciation – Companies Act • Depreciation – Income tax Act • TDS (Tax Deduction at Source) • TCS (Tax Collection at source ) • TDS Adjustment Journal• Stock Transfer

Demo data—Contoso India (INMF)

Microsoft Confidential38

Global framework and feature adoption

• 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 versus local

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

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 featureGlobal 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 matching

Automated E2E process

Integrated 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 sessionsCSAX01 Microsoft Dynamics AX 2012 OverviewCSAX46 Microsoft Dynamics AX 2012 R2 Financials OverviewCSAX43 Microsoft Dynamics AX Localization—Considerations when Deploying in BrazilCSAX44 Microsoft Dynamics AX Localization—Considerations when Deploying in Russia and Eastern Europe

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