Cash flow management in Microsoft Dynamics AX 2012: Configuring Accounts Payable

[Editor's Note: The following article is adapted from the chapter Functioning of Cash Flow Management from Mohamed Aaamer's new book Microsoft Dynamics AX 2012 Financial Management. Other chapters include Working with Cost Management and Exploring Financial Dimensions.]


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About Mohamed Aamer
Mohamed has been working since 2004 as a Business Applications Consultant. His main focus is customizing business applications to fit customer needs. He spends time understanding the customer business cycles, and solves the customer business pains through a combination of business process re-engineering and application customization. When not working on complex business processes, Mohamed blogs on Microsoft Dynamics AX, plays soccer and attends live Sufi shows.

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Receipt dates and invoice dates

Great content and very useful but I take exception with a couple pieces of the examples from your text: "Based on the setup of period between delivery and invoice, which is 5 days, the date will be January 6, 2013 (PO date + 5 days)."
The first sentence should read PO line receipt date, not PO date.
"Based on the setup of invoicing period, which is 7 days, the date will be January 13, 2013 (PO date + 5 days + 7 days)."
The second line has a practical error: regardless of when the invoice is received, the conventional business practice is to begin the terms (aging) from the delivery date and use that date for the invoice date even if the invoice is not received until 7 days later. I would set this factor to zero days.

Receipt dates and invoice dates

Thanks for comment; I agree with you it is based on the PO line receipt date. It is written in an assumption that the receipt date is the same of PO date as system default unless it have been changed by a user.

Mohamed Aamer, MVP, MCC, MCP, MCT