- ax 2009 - ax 2012

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

BRK332

Evgeny PopovSr. Program Manager LeadMicrosoft Corporation

Marek RoleckiSr. Program Manager 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.

AX R&D Center - GFM Europe & Russia

Regulatory Updates

Legislation Monitoring

Dev Center in

Moscow / BRPMs in Europe

Localizations for

22 countries

Session Focus

Global Single InstanceAnd Country Context

Eastern Erurope and Russia Localizations

Global Framework and Feature Adoption

Global Single Instance and Country Context

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 inconsistence

Ind

ustry

Solu

tion

s

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

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 keysCompany country specifc setup for RU and EEDue to Instance-specific nature of Configuration Keysthese 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 EntityDefining the Legal Entity, user needs 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

AX Localization for Russia and Eastern Europe

AX Localization

Started in late 90s

First localized version – Navision Axapta 2.1 / 2.5

Up to AX2009 localization existed in the GLS EE layer

AX2012 R2 – in SYS

Region Specifics

LegislationComplex, ambiguous and contradictoryChanges frequently, sometimes unexpectedly

MarketStrong competitors – global and local software vendorsHard-to-please customers, demand for highly-customized solutions

Main Localization Areas

Country specific audit documents content and layoutCountry specific outgoing documents VAT ReportingCash paymentsDates for Exchange rate PrepaymentsFixed Assets Opening BalanceCompany Country Context

Eastern EuropeCountry specific statutory reportingCountry specific outgoing documents VAT accountingCash paymentsDates for Exchange rate Correspondence of accountsFixed AssetsPayrollAdvance holders

Russia

Regulatory Updates

2008 2009 2010 20110

5

10

15

20

25

30

35

40

45

RussiaEstoniaLatviaLithuaniaHungaryCzech RepublicPoland

300+ local features

3 local modules

Russia

General Ledger

VAT accounting

Cash and Bank

Accounts Payable/ Receivable

Advance holders Fixed assets Deferrals

Tax accounting (profit tax)

Electronic tax reporting

Human resources and payroll

Inventory management

Manufacturing

Russian Feature Areas (Slide 1/3)

General ledgerCorrespondence of GL accountsGL translation/transformationFinancial report generator

VAT accountingFacturePurchase/sales booksExport VATTax agent

Tax accounting (profit tax)Expense codesProfit tax registersStandard expenses

Electronic tax reportingStatutory reporting in electronic formatVersioning and correctionElectronic document exchange


Cash & BankCash account and journalElectronic bankingBank reconciliationBank and Cash reporting

Advance HoldersAdvance issuePurchase via advance holderAdvance report

Fixed assetsAcquisition to withdrawalAssembly and overhaulDepreciation and revaluationClothes, instruments, not valuable assetsStatutory reporting

DeferralsAutomatic or manual creationPeriodic calculation and write-off


Inventory managementInventory stornoPosting profileConsignment stockCustoms declaration and dutiesValuation in rep. currency

ManufacturingDefected productsBy-productsWIP calculation

Accounts payable/receivableAgreementsExchange differenceBailmentGoods in transitRU address format

Human resources and payrollStaff administrationPayroll calculationStatutory reporting

Six countries

200+ local features

No local modules !

Eastern Europe

Inventory managementFixed assets

Cash and BankVAT accounting

Projects

Accounts Receivable and Account Payable

General Ledger

Eastern Europe Feature Areas (Slide 1/2)General ledgerExchange rate adjustmentsRed stornoExchange rate import

VAT accountingVAT and trade datesVAT statementsEU sales listExport VATTax documents

Fixed assetsPre-acquisitionDepreciation methodsStatutory reporting

Cash & BankCash accounts and journalsCash & Bank exchange rate adjustmentCash reporting

Eastern Europe Feature Areas (Slide 2/2)Accounts payable/receivableOutgoing documentsAdvance invoices and prepaymentsTrade datesTransportation documentsPayment formatsOriginal invoice reference

Project managementRed stornoPartial credit noteOutgoing documents

Inventory managementInventory statementsExternal inventoryCustoms import documentsReturn packagesIntrastatStatement of tax on natural resources

Verticals in Russia and Eastern EuropeRetailLocalized

Process industriesLocalized for RussiaCovers Eastern Europe with no additional modifications

Service industriesLocalized for Eastern EuropeNot localized for Russia

Public sectorNot localized for Russia and Eastern Europe

Evgeny PopovSr. Program Manager LeadMicrosoft Corporation

Marek RoleckiSr. Program Manager LeadMicrosoft Corporation

demo

RU and EE working together

Russian companyCorrespondence of GL accountsFacture

Polish companyAdvance invoicePrepayment

Scenario Overview

Purchase order

Cash paymen

t

Sales order

Advance invoice

Customer

invoice

Pre-paymen

t

Vendor facture

RU companyPL company

Accounting principle based on the double-entry bookkeeping system. According to the principle, ledger transactions created by a business transaction must be

corresponded one-to-oneSimple transaction

Account

Debit Credit

Account1Account2

$100$100

Total: $100 $100Complex transaction

Accounts Amount

Debit Account1 - Credit Account2

$100

Account

Debit Credit

Account1Account2Account3 Account4

$50$30$20

$100

Total: $100 $100

Accounts Amount


$50


$30


$20

Demo: RU Correspondence

Demo: RU FactureA tax document in a legally established form issued by a seller and required for a buyer to confirm VAT deduction. Also used by the seller to confirm VAT amount to

be paid

Purchase book

Sales bookAR facture jrnl

AP facture jrnl

VAT declarationFacture

Agree on sale

Ask for money

Get a prepayme

nt

Prepayment VAT

Issue sales

invoice

Demo: EE Advance Invoice Scenario

Czech Republic / Hungary

Sales order / Free text

invoiceProform

a invoice

Advance invoice

Payment journal

Tax documen

t

Advance invoice

Sales / Free text

invoice

Poland

Advance Invoice Coverage in Countries Czech

Republic Hungary Poland

Advance invoice creation

Advance invoice posting to ledger

Advance invoice credit note

Advance invoice printout

Prepayment posting

Tax document

Prepayment handling

Prepayment reversal on final invoice

Advance invoice reversal on final invoice

Functionality mirrored on Accounts payable

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Global Framework and Feature Adoption

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

sub ledger framework• Global address book

Global Frameworks• Bank reconciliation• Tax registration number• Misc. charge on free text

invoice line level• Tax adjustments on purchase

invoice line level• Payment calendar• Default description

enhancement (Transaction text)• Import exchange rate from web

source

Global Features

Just a Few Examples…

Financial dimension frameworkRussian Contracts feature is replaced with a combination of the Financial dimension framework and new AX2012 feature “Purchase/Sales agreements”

Source document frameworkRU&EE expense report is implemented as a source document

Tax registration numberCountry-specific fields are removed from customer, vendor and company records, and replaced with global Registration numbers

Import exchange rate from web sourceExchange rates import is implemented for different countries using global engine, with regional specifics added

Top Tips from This Session

Localization for 36 countriesCountry specifc fucntionality and vertical soultions all together in SYS layer

Over 500 features for Eastern Europe and RussiaCommon feature sets with country specific flavor

Constant monitoring and updates for regulatory changesDone by regional R&D team (GFM Europe & Russia)

Single instance for all supported regionsUse country context to enable country-specific features

Global Frameworks and FeaturesConsolidation of requirements and code

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

BRK330 Dynamics AX Localization - Considerations when deploying in APAC Markets

BRK331 Dynamics AX Localization - Considerations when deploying in Brazil

© 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.

- ax 2009 - ax 2012

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