This article presents the basics set up for the Microsoft Dynamics AX Cash and Bank management module.
This module can be used to maintain a legal entity’s bank accounts and the financial instruments that are associated with those bank accounts.
To be able to use the Microsoft Dynamics AX Cash and the Bank management module, you need to set up several components:
- Bank transactions types: Set up the types of transactions that are made in the bank accounts, such as deposit slips, fees, and interest charges. The Transactions types are used in the bank reconciliation functionality.
- Bank transactions group: groups of transaction types. The Transactions group are used in the bank reconciliation functionality
- Dynamics AX Cash and bank management parameters: select the parameters for the module and select number sequences for the automatic numbering of bank documents.
- Payment purpose codes: you can create the payment purpose codes for the central bank.
- Bank reasons: create the bank reason code you can use to explain why some modes of transactions were entered.
- Bank group: setup the general data about the bank groups in which you have several bank accounts.
- Bank accounts: setup information for bank accounts.
- Journal names: setup two journal names for the deposit slip or check cancellation
- Payment layout: setup the layout for the cheque, promissory note and bill of exchange.
Before setting up the Dynamics AX Cash and Bank module, you must set up several number sequences :
- The Access: Organization administration > Common > Number sequences > Number sequences
- 3 number sequences must be created for Bank parameters:
- The automatic number for “Deposit slip”
- An automatic number for “Prenotes”
- The automatic number for “Bank reconciliation”, allocated for voucher created in bank reconciliation.
Step 1: Bank Transactions Types
The Bank transactions modes are used in the bank reconciliation functionality. You need to create bank transaction types for the transactions that are made in the bank account. The bank transaction type can be linked to the methods of payment or enter a bank transaction (AP, AR or GL journal). For the Dynamics AX Cash and bank parameter, you need at least one bank transaction type for the unpaid transaction (not sufficient fund).
Access: CBM > Setup > Bank transaction types
- Click on New
- Enter a code that you can easily identify.
- Enter a name
- Select the main account to use in case of the creation of a voucher during the bank reconciliation (posting a correction or adding a record)
Step 2: Bank Transaction Groups
The Bank transaction groups are used in the bank reconciliation functionality. They are used in the reconciliation form to calculate the subtotals. It can facilitate the bank reconciliation. For example, if in your bank statement you have the subtotal for all the transfer, you can create the bank transaction group that contain all the bank transaction modes related to a transfer (like direct debit, internet transfer, paper transfer)
Access: CBM > Setup > Bank transaction groups
- Click on New
- Enter a Code
- Enter a description for the group
- In the Type tab, select “Add” to add a transaction type.
Step 3: Dynamics AX Cash and Bank Management Parameters
Access: CBM > Setup > Dynamics AX Cash and Bank management Parameters
- Go to the general tab
- NSF: select the bank transaction type to use for not sufficient funds.
- Allow the checks for bank or ledger accounts: select this check box to enable checks to be printed for a bank account or ledger account.
- Use the review process for payment reversals: select this check box to require that check reversals be reviewed in the Check reversals journal before they are posted. If you do not select this option, the reversal is posted immediately when you click the Payment reversal in the Check form.
- Use the review process for deposit slip payment cancellations: select this check box to require that cancellations of deposit slip payments be reviewed in the Deposit slip payment cancellations journal before they are posted. If you do not choose this option, the cancellation is posted immediately when you click the Cancel payment in the Deposit slips form.
- Require the reasons for payment reversals: select this check box to require that a reason code is selected before a payment reversal can be posted. If you select this option, you need to set up the reason code for the bank module.
- Require the reasons for deposit slip payment cancellations: select this check box to require that a reason code be selected before cancellation of a deposit slip payment can be posted. If you select this option, you need to set up the reason code for the bank module.
- Allow the prenote creation on inactive bank accounts: select this check box to let users create prenotes for customer bank accounts and vendor bank accounts that are inactive.
- Allow the copies of payments: select this check box to let users print copies of payments (checks, promissory notes, and electronic payments).
- Bank credit limit tolerance: choose how to notify the user when a payment journal that is posted causes a balance to exceed the credit limit (None, Warning or Error). The credit limit is set up in the bank account.
- Go to the Number sequences tab
- Select the number sequence for each reference used in a company.
Step 4: Payment Purpose Codes
If you need to use the payment code for the central payment, you need to set up payment purpose codes. The payment purpose code will be used in a payment journal form.
Access: CBM > Setup > Payment purpose codes.
- Click on New.
- Enter a code.
- Enter the name of the code.
- Inside the field Purpose text, you can add a description of the payment purpose code.
- Inside the field Text, you can inform if needed.
- The payment purpose code will be used in a payment journal form (payment tab).
Step 5: Bank Reason
Access: CNM > Setup > Bank reasons or all the reason codes can be created in Organization Administration > Setup > Financial reasons
- Click on New
- Enter a Reason code
- Enter a description in the field “Default comment”
- Select “Bank”
Step 6: Bank Groups
You can create a bank group if you have several bank accounts in a same bank. In the bank group, you can set up the general information common to all bank accounts. When you will create a bank account, all general information from the bank group will be filled.
Access: CBM > Setup > Bank groups
- Click on New
- Enter a Bank group code,
- Then enter the Routing number,
- And enter a description (name of the bank).
- Select the routing number type if needed and enter the company Id.
- Select the currency of the bank.
- Enter the Post account if needed (used in Europe).
- Then enter the number of days that the bank need for feedback on payment (unpaid)
- And enter the suffix and the drawer number.
- Enter an address and the contact information if the data are common for all the accounts of the group.
Step 7: Bank Accounts
In this form, you can set up all the Information for your bank accounts. In this form, you can also manage the customer or vendor accounts.
Access: CBM > Common > Bank accounts
- Click on New bank account
- If you have created the bank group, select it in the tab General.
- All the information entered in the bank group are filled in the bank account
- Enter the bank account data:
- Inside the field Bank account: enter the internal bank account number.
- Inside the field Bank account number: enter the bank account number from the bank.
- Enter the other information given from your bank: CIN, Swift, Iban.
- Select the “Prenote required ”checkbox if the bank requires the prenotes for electronic transactions.
- Enter the number of days that the bank requires to process the prenote.
- Enter the date when the bank account will become active and will be available for the new transactions. If you do not enter a date, the bank account is immediately available for the new transactions.
- Enter the date when the bank account will no longer be active for the new transactions. If you do not enter a date, the bank account will remain active indefinitely.
- Select the status to use the bank account: Active for all transactions, Inactive for new transactions or Inactive for all the transactions.
- Enter the credit limit for a bank. You must type a negative amount in this field. You are notified if bank balance exceeds this limit when you post a payment journal if this option is selected in the parameters form.
- In the currency management tab:
- Click the main account linked to the bank account.
- Select the currency of the account
- Enter a payment journal to use in case of the unpaid payment.
- In the tab Negotiable instrument
- Select a journal for the remittance fees that are generated for the bills of exchange or promissory notes
- Enter the fee that is paid to the bank account every time that a remittance that is related to the bill of exchange is collected.
- Then enter the fee that is paid to the bank account every time that discount interest is added to bills of exchange that are represented in a remittance file.
- And enter the fee that is paid to the bank account every time that discount interest is added to promissory notes that are represented in an invoice remittance file.
- Select the main account to use for the collections expense fees for bills of exchange, discount interest fees for bills of exchange and invoice remittance fees for promissory notes.
- Inside the tab Address, add the address of the bank: click on New
- Enter the information about the person to contact in the bank.
- You can select the default financial dimension for the main account
To do the payment reversal, you need to create several journal names.
The Access: GL > Setup > Journals > Journals names
- Create a new journal name for the check reversal: Select journal type “Bank check reversal”
- Create a new journal name for the deposit slip payment cancellation: Select journal type: “Bank deposit slip cancellation”
In this Article, we dealt with Dynamics AX cash and Bank Management Setup and Integrations along with their related steps.