Category: Dynamics 365/AX

The Polish Ministry of Finance has published the fourth version of the JPK-FA single audit file structure. By way of reminder: the tax authorities may request the presentation of a JPK-FA(4) file, alongside other single audit files, in order to carry out formal checks, tax audits, or to conduct fiscal proceedings. Once requested to do so, the company will have 3 days to produce to the authorities a sales invoices file generated in accordance with the required structure.

When will the new JPK-FA(4) structure become mandatory? On 1st April 2022.

What has been changed for the new JPK-FA(4)? The structure now contains, among others, an updated glossary of EU member state codes and an updated currency code glossary. The node containing identification details for non-natural persons has been expanded to contain identification numbers for OSS and IOSS purposes (EUPLVATID and IMPLVATID). Several descriptions of structure elements have received an update, too. More detail can be found in the Ministry of Finance’s JPK_FA(4) Information Brochure.

We invite all users, whether of the earlier ERP Microsoft Dynamics AX systems or of the latest Dynamics 365 apps, to take full advantage of INLOGICA’s JPK module.

We keep tabs on the changes – we give accountants peace of mind.

How to avoid a paralysis of the Finance Division when preparing the next report on payment practices and performance in commercial transactions?

We have been hearing rumours across the industry in Poland that some companies, all of which were preparing reports on payment practices and performance, i.e. on payment backlogs, for the first time ever took over 2 weeks to get them done. It appears that finance specialists dedicated all their efforts to satisfying statutory reporting requirements only. How did that happen? Probably because they lacked tools fit for the job.

Can a payment backlog report, therefore, be prepared in a matter of hours?

It certainly can. All it takes is a suitable functionality which enhances the existing ERP system in such a way as to support the process of generating the necessary data. Microsoft Dynamics 365/AX system users can now use a proprietary solution developed by the INLOGICA team for this purpose. The payment backlog functionality in its standard version makes it possible to quickly generate a Payment Backlog report which includes the financial information required of a report on payment practices and performance.

The report itself is just one aspect of the payment backlog functionality.

It is just as necessary to closely watch the in-house payment practices too, as exceeding the statutory threshold of outstanding or late payments during a period of 3 subsequent months is considered as causing so called “excessive payment delays”. The threshold is currently set at PLN 5 million, and exceeding it can lead to serious consequences. They can range from having proceedings launched against the organisation by the Polish Office of Competition and Consumer Protection to high fines, the amount of which depends on the sum of delayed payments and the period of delay. The threshold beyond which the provisions on excessive payment delays apply will be decreased to PLN 2 million as of January 2022.

How to keep it in check?

By regularly monitoring payment practices. The extended version of INLOGICA’s payment backlog functionality for Microsoft Dynamics 365/AX is equipped with analytics and regular monitoring of payment delays in commercial transactions using defined system alerts.

Due to changes in Polish legislation which came into force as of 1 January 2021, some businesses are now obliged to report on payment practices and performance.

Following significant demand from Microsoft Dynamics 365/ AX users, the INLOGICA team have developed a solution which supports, facilitates and automates the process of generating data required to compile the report.

The functionality will be available in two variants: standard and extended ones.

The standard version makes it possible to generate, directly from the Microsoft Dynamics 365/AX system, the financial data necessary to submit the annual report on payment practices and performance in commercial transactions via the biznes.gov.pl platform.

The extended version, in addition to the basic function of generating report data, also enables regular monitoring of payment backlogs, shielding the business against crossing the statutory “excessive payment delays” threshold.

The user is free to define system rules, the violation of which will trigger a system alert, thus minimising the risk of involuntary exposure to the consequences drawn by Polish authorities.

A tool dedicated for Microsoft Dynamics AX, available for system versions:

• AX 4, 2009 and 2012

The tool allows automatic customer/ vendor data completion based on integration with the REGON 1 Online Database maintained by Statistics Poland.

After entering the tax identification number (NIP), the system automatically fills in the remaining counterparty’s details, such as: the name, address, registration data. At the same time, the customer’s/ vendor’s account is being created or updated.

It is possible to enhance the tool by adding a functionality for verifying the counterparty against the VAT Payer Register.

This allows the user to check whether the buyer of goods or services is registered for VAT (i.e. as an “active” VAT Payer).

The proprietary JPK module for Microsoft Dynamics AX is designed to quickly generate JPK single audit files according to the logical structure templates published by Poland’s Ministry of Finance (as at 8 May 2020).

Structures available in the module:

• JPK_VAT (VAT register) SAF-T schemes (1)/(2)/(3), for periods ending on 30.09.2020
• JPK_V7M (VAT register and monthly VAT declaration), for periods starting on 01.10.2020
• JPK_FA (customer invoices) SAF-T schemes (1)/(2)/(3)
• JPK_KR (accounting ledgers)
• JPK_WB (bank statements)
• JPK_MAG (warehouse).

The data for creating JPK files is generated based on Microsoft Dynamics AX fields and functions. The standard fields are supplemented with setup tables in the JPK application. The application needs to be set up once only, after software installation.

The intermediate step for the creation of JPK files is the data stored in auxiliary tables. It serves as a basis for generating XML files, which conform to JPK logical structures. This solution architecture makes it possible to review the generated data before exporting it into XML files.

The module also has an add-on which makes it possible to select a suitable SAF-T scheme version during the JPK file generating process.

Within the implementation, the Microsoft Dynamics AX system will by updated by procedural markings required for purchase and sales documents: groups of goods and services (GTU), document types, and procedures necessary to correctly generate the JPK_V7M file.

At the Customer’s request, the JPK module can be enhanced by the JPK Delivery add-on for comprehensive management of the generated JPK files and their transfer to Polish authorities directly from the Microsoft Dynamics AX system.

The module implementation agreement with INLOGICA covers a comprehensive programming and consultancy service.

The JPK module is a Microsoft Dynamics AX functionality available for system versions AX 4, 2009 and 2012.

VAT Payer Verification is a Microsoft Dynamics AX add-on available for system versions AX 4 and 2012.

The Polish Ministry of Finance makes the VAT Payer Register available on their website so that members of the public can verify the VAT registration status of businesses. Thanks to this solution, it is possible to obtain a confirmation whether a counterparty is registered for VAT (is an “active” VAT payer). In response to the demand from Microsoft Dynamics AX users, the INLOGICA team have developed a solution to check the VAT registration status directly from the system level.

The VAT Payer Verification add-on validates the customer’s/ vendor’s status in Poland’s Ministry of Finance’s database using the Polish tax identification number (NIP), or in the European Commission’s VIES database for cross-border EU transactions.

The functionality optionally enhances the financial journal, invoice journal and purchase order journal posting processes. If the system determines that the counterparty has the “inactive” status during the VAT payer validation process, the posting of the invoice will be aborted and the user notified about the reason for aborting the posting with an appropriate message.

It is also possible to check the status of an individual counterparty by initiating the verification process at the vendor/ customer account level.

The VAT Payer Verification add-on has settings which make it possible to:

• determine the verification validity period
• determine in which windows the function is to be visible
• define the validation mode for individual journals
• define the validation mode during the posting of purchase orders.

The Whitelist is a Microsoft Dynamics AX functionality available for system versions AX 4 and 2012.

The tool guarantees a higher degree of security of the performed transactions.The solution enhances the Microsoft Dynamics system by a new functionality which enables automatic validation of bank accounts assigned to counterparties by integration with the VAT Payer Register maintained by Poland’s National Revenue Administration. The verification is performed on the date of the query, and the results of the query are archived.

The Whitelist add-on contains the following functionalities:

1.    Verification at the vendor invoice posting level.

The validation will be initiated when posting vendor invoices via a reference to a purchase order. The system verifies the bank account assigned to the invoice.

The validation will be initiated when posting vendor invoices via invoice journals. The system verifies the bank account assigned to the vendor for the invoice line/ attachment. Verification in journals is initiated in processes: Validation and Posting.

2.  Verification during the process of creating vendor disbursement transactions.

The verification will be initiated when starting the Create vendor disbursement transactions function in the payment journal. Verification will also be initiated in processes: Validation and Posting of payment journal

3.  Bulk verification of vendor bank accounts.

The function that is initiated on a selected day, validates the vendor bank accounts entered in the system against the flat file.

It is also possible to add a customised function for verifying a counterparty’s bank account to the posting process individually requested by the customer.

1 July 2018 is the day on which new amendments to the Polish VAT Act came into force. One of the changes enacted by the Polish legislature was the introduction of the split payment schema.

The mechanism of the schema consists in the requirement to split the payment for the received invoice between two bank accounts:

• the net value – into the vendor’s bank account
• the VAT – into the vendor’s reserved VAT bank account.

The bulk of the burden of implementing the split payment mechanism was carried by banking institutions, which set up VAT accounts for businesses and adjusted bank transfer templates to meet statutory requirements.

Adjustments also need to be made to the accounting systems used by businesses. The INLOGICA team have developed a Split Payment module designed for Microsoft Dynamics AX and 365 users.

INLOGICA offers a comprehensive programming and consultancy service which is covered by the scope of an implementation agreement concerning the Split Payment functionality.

Thanks to the Split Payment functionality, the user can mark counterparties whose payments must be included in the split payment schema. The system then uses these markings to generate payment proposals and identify invoices which ought to be paid in accordance with that mechanism. The data necessary to execute split payments is transmitted from the Microsoft Dynamics AX system into the electronic banking system. It is subsequently used by the bank to effect the requested money transfers.

For customers running the Microsoft Dynamics AX system, the INLOGICA team have prepared an Asset Management (CMMS) module dedicated for handling asset maintenance operations in the organisation. The solution can support the work of such company departments as maintenance and measurements.

The main elements of the module are:

• Management of plant and equipment
• Process management in the form of work orders and jobs
• Staff management
• Parameter management and measurement
• Object rental
• Permits
• Work policies
• Management of plant and equipment

The Asset Management module (CMMS) for Microsoft Dynamics AX can be used to create an organisation’s machine park structure (e.g. against a BOM). Such a hierarchy enables tailored management of plant and equipment by breaking down their maintenance into individual sub-assemblies and components. The process of creating fixed asset records in the system uses predefined templates, so that it is not necessary to re-enter all information when adding new records.

The Asset Management module also facilitates the processes of equipment and tool management. Specialist equipment can have time-limited certifications permitting their operation, which are also created using templates and the BOM structure.

Process management in the form of work orders and jobs.

The plant and equipment management process for the purposes of maintenance or measurement services consists in creating work orders and work order jobs. The work orders and related jobs can be set up using templates. Adding new work orders using a template eliminates the need to re-enter all information from scratch. Work orders have their life-cycles and planning phases, which ensures proper supervision over how they are completed.

Management of maintenance staff.

In the Asset Management module (CMMS) for Microsoft Dynamics AX, employees of the organisation are allocated to work orders. This solution also offers integration to the existing Human Resources module.

Parameter management and measurement.

It is possible to define the parameters of technical equipment for the purposes of the measurements division. By monitoring parameter values, one can follow the validity of equipment certifications and decide whether individual pieces of equipment can be used for work. The module also saves the history of measurements.

Object rental

The Asset Management module (CMMS) can be used to allocate technical tools to a user for a certain period of time. Owing to that feature, it is possible to manage the flow of measurement equipment and tools, and technical materials, at the Microsoft Dynamics AX system level.

Work permits.

This solution makes it possible to track employee permits for performing certain jobs within the maintenance department. It also covers licences held by individual staff members to operate certain plant and equipment, and to use certain tools.

Work policies.

Users can set up the reactions of the Microsoft Dynamics AX system to certain events in the Asset Management module (CMMS). It ensures control of the cause and effect chain, e.g. in case of a breakdown.

The Asset Management module (CMMS) for Microsoft Dynamics AX is a professional tool dedicated for organisations with an extensive fixed asset structure. It helps make cost savings by streamlining business processes and automating the management of resources available in the organisation.