9 Jun 2014 9:47 AM Scenario: Set up a Legal Entity in AX2012 The Customer Implementation Readiness team at Microsoft validates AX 2012 functionality for specific scenarios. This is the first in a series of blog posts that describe the scenarios that we have tested, and how we tested them. Scenario In this scenario, we set up a legal entity in US. Focus The document describes the configuration and set up steps for the scenario. Related documentation The setup we followed is described in the documentation Create or Modify a Legal Entity. It assumes that demo data is available with the application. Detailed Steps Set up company UOM as a Legal Entity in AX2012 Create Legal Entity 1.In the AX 2012 R2 client, log in to any company. 2.Go to Organization Administration > Setup > Organization > Legal entities and create a new legal entity. 3.Choose Name, Company and Country/region. 4.Under General, verify/change Time zone. 5.Under Addresses, edit to update address. 6.Under Tax registration, update Tax registration number. 7.Under Statutory reporting, General, update DUNS number. 8.Close all forms. Assign Legal Entity to an Organization hierarchy 1.Go to Organization Administration > Common > Organizations > Organization hierarchies and select an existing Organization hierarchy e.g. ‘Contoso Consulting’ and click Edit. 2.Click View, click Edit on next screen and single click on ‘Contoso Consulting USA’ such that it is highlighted in orange color. 3.Next click Insert, Legal entity 4.Select company UOM and click ok. 5.Next click on Publish and close. Choose an Effective date and click Publish. 6.Close all forms. Generate Number Sequences 1.Log into the selected company and go to Organization Administration > Common > Number sequences > Number sequences and click Generate. 2.Click OK for warnings and go through the wizard to set up Number Sequences automatically for the selected company. 3.Close all forms. Set up Accounting for Legal Entity Set up Ledger for Legal Entity 1.Go to General Ledger > Setup > Ledger 2.Select a Chart of account ‘Shared’. 3.Select Fiscal calendar and Accounting currency. 4.Click add to include Account structures, a Balance Sheet and a Profit and Loss structures. 5.Select Default exchange rate type and Default Budget exchange rate type. 6.Close all forms. Set up Voucher series 1.Go to Organization administration > Common > Number sequences > Number sequences 2.Create New Number sequence. 3.Under Identification, enter Number Sequence code and Name. 4.Under Scope parameters, enter ‘Company’ and select the legal entity as Company. 5.Edit Segments as appropriate for prefix and length of number sequence. 6.Check the Continuous checkbox under General. Please note this selection can change based on your requirements. 7.Close all forms. Set up Journal for Not Sufficient Funds 1.Go to General Ledger > Setup > Journals > Journal names 2.Create New, add Name and Description. 3.Under General, select Journal Type as ‘Customer Payment’ and Account type as ‘Bank’. 4.Select Voucher series and New voucher as ‘In connection with balance’. 5.Close all forms. Set up Charges Group for Not Sufficient Funds 1.Go to Accounts receivable > Setup > Charges > Customer charge groups 2.Create New, add Charges Group and Description. Set up Bank Information for Legal Entity Set up Positive Pay Format 1.Go to System administration > Setup > Services and Application Integration Framework > Positive pay service > Outbound ports for positive pay and click New. 2.Create a Payment format, XSLT and Outbound folder. 3.Close all forms. Set up Bank group 1.Go to Cash and bank management > Setup > Bank groups and click New. 2.Create a Bank groups, Routing number and Name. 3.Under General, select Currency as ‘USD’ (example). 4.Close all forms. Set up Bank account 1. Go to Cash and bank management > Common > Bank Accounts and click New Bank account 2. Under General, create a new Bank account, Routing number and Bank account number and Name under Description. 3.Select Bank groups. 4.Select Positive pay format and Positive pay start date. 5.Under Currency management, select Main account. 6.Select More currencies if needed and note that the currency is USD (example). 7.Under Not sufficient funds, set the values for Charges group and NSF payment journal. 8.Close all forms.