Dynamics AX 2012 Manufacturing : Microsoft Dynamics AX 2012 R3

Microsoft Dynamics AX 2012 R3 – WMS/TMS scenario from setup through execution to transportation charges on order (Complete scenario)

Purpose: The purpose of this document is to illustrate how to setup and execute on WMS/TMS scenario in Microsoft Dynamics AX 2012 R3. In particular I want to focus on end-to-end logical flow from setup through execution to transportation charges applied to order, and highlight appropriate technical details to support troubleshooting if necessary.

Challenge: In Microsoft Dynamics AX 2012 R3 you can leverage advanced Warehouse management and Transportation management business capabilities. End-to-end WMS/TMS scenario will require appropriate setup from setting up location directives and work templates to wave templates, etc. for WMS, and from carrier setup to various engines parameters for TMS. Proper logical understanding of data elements involved in WMS/TMS scenario setup may greatly facilitate your efforts.

Solution: In this walkthrough I'll focus on logical sequence of steps when setting up sample end-to-end WMS/TMS scenario for outbound flow using sales order. I'll also provide easy-to-understand diagrams to facilitate understanding of the topic. And also I'll provide necessary technical details for you to be able to effectively an efficiently set up your own scenarios. For more in depth info please refer to Warehouse management implementation guidance document (http://www.microsoft.com/en-us/download/details.aspx?id=43660) and Transportation management implementation guidance document (https://mbs.microsoft.com/customersource/northamerica/AX/learning/documentation/white-papers/msdax2012r3transmgmtsysguide).

Note: You can also download this material in Microsoft Office Word document format from my OneDrive here: http://1drv.ms/1MXVvNu

Walkthrough

I'll start with a brand new company in Microsoft Dynamics AX 2012 R3 using Demo VM to emphasize the ease of setup. After I created my own company "ALEX" I also did appropriate required minimum setup for the company itself (currency), ledger details (chart of accounts, accounting structures, currencies, exchange rates) and inventory posting details (because I used Shared chart of accounts I just replicated accounts from USMF company for simplicity)

In my scenario I'll showcase outbound flow using sales order. Sales order will be created, transportation load will be planned according to the setup, warehouse work will be created for picking, and ultimately I want to include transportation charges to sales order

At this point I'll start setting up data specific to my scenario

I'll start with Customer

Customer

You can notice that I specified address (GA) for the customer above

Customer (Delivery terms)

Delivery terms setting for the customer is important because this will allow to enable adding transportation charges to order upon confirmation of outbound shipment

Terms of delivery

Please note that I marked "Add transportation charges to order" checkbox

In warehouse parameters I'll define User location specifying a template which is not License plate controlled, this will be required later for successful warehouse work execution

Warehouse parameters

Note: User location profile (Non license plate controlled)

Then I will create a new warehouse and specify address for it, this address will be used as Ship From address during load planning later, and logically Customer address will be used as Ship To address

Warehouse

I'll check User location "1" and its non-empty Aisle, prior to that I have created Warehouse worker "1"

User location

Also I defined a bunch of other location in warehouse as necessary (skipping the setup of all locations here for simplicity)

Next stop is definition of the product

Product

Please note that "Ware" storage dimension group has been used which is appropriate for Advanced Warehouse management in Microsoft Dynamics AX 2012 R3 Demo VM. While I'm setting up the product I'll also set up its physical dimensions, this will be needed for the future apportionment of transportation charges onto sales order line(s) based on product(s) weight

Physical dimensions

Now let's review business entities involved in WMS portion setup

WMS setup process diagram

<![if !vml]>

<![endif]>

In particular before we execute we have to set up Location directives (to know where to pick products from for sales order picking scenario), Work templates (to know what steps to perform during picking process for sales order picking scenario) and Wave templates (to define Wave picking activities)

Location directives

Location directives – Location directives (Edit query)

Location directives – Location directive actions (Edit query)

My location directive action defines "LPBULK" warehouse location as picking location for sales order picking, this is where I'll start from

Work templates

Work template (Edit query)

My work template defines 2 steps required when doing picking (one pick operation and one put operation), I'll specify where I'll put my product myself during picking using RF scanner. Also while I'll be executing warehouse work User location I've set up earlier will also be used on the background

Wave template

For wave template I'll mark "Automate wave creation", "Process wave at release to warehouse" and "Automate wave release" checkboxes to automate wave creation and wave release into one step which automatically takes place when I release work to warehouse (for simplicity). I also defined wave processing methods in a sequence as shown above. Please note that if you don't see wave processing methods available you should regenerate them ("Regenerate methods" button) as shown below

Wave process methods

Then I'll compose my RF menu keeping it very simple, just one single option for sales picking

Mobile device menu items

For sales picking menu item I'll use existing work generated upon release work to warehouse and keep it User directed. At last I'll include menu item to the appropriate menu as shown below

Mobile device menus

And here is my warehouse work user setup

Work user

This concludes a required minimum setup for my scenario

Now we can switch to TMS portion setup. The idea is that I'll need to ship product(s) from WA (Zip code 98052) to GA (Zip code 30009)

TMS (98052 -> 30009) setup process diagram

<![if !vml]>

<![endif]>

When setting up TMS portion I'll need to answer a number of questions defining how I want to transport goods. Here's the logical list of questions:

- How will transport the goods (which shipping carrier)

- How will carrier deliver the goods (what services, for example, standard or expedited)

- How much will it cost to deliver goods based on certain criteria (cost, time, distance, etc.)

- More specifically how much will it cost and why (based on service and geo location)

- More specifically how big is the distance (based on geo location)

- More specifically how long will it take to deliver the goods (based on geo location)

Once you answer these questions and set up the system appropriately you'll be ready to plan your transportation loads. Let's see how this works

First of all I'll initialize base transportation engines data in Transportation parameters with all the engines shipped with the product which is a huge help

Transportation management parameters

Dialog

Infolog

Then before I review what system has generated for me I'll define transportation Miscellaneous charge based on charge code for Charge module = Customer which is needed in order to transfer transportation charges to sales order upon Outbound shipment confirmation

Miscellaneous charges

Here's how the original charge code looks like

Charges code

Please note that I specified Debit on Customer and Credit onto Ledger account

I'll also need transportation mode as defined below, I'll use "Ground" for simplicity

Mode

After this we're ready to set up transportation carrier, I'll call it "Contoso", it may be external party associated with vendor account or internal party if you operate your own fleet depending on your business requirements

Carrier

Please note that I marked "Use carrier" and "Activate carrier rating" checkboxes which is required for future transportation Rate shopping. As the next step I'll add Service to carrier using data I created earlier

Carrier - Service

After the system initialized engines data for me a number of data elements have been created. Here's how Rate base types look like. I'll focus my attention on P2P rate base type for clarity

Rate base type – Rate base

Please notice that for P2P rate base type a certain meaningful data setup elements have been already defined. By looking at the setup I'll need at least to specify country (and Zip code) in order to define rates for the places I can expect my goods to be delivered to (Drop off …)

Rate base type – Assignment

Out of the box transportation engines come with the product in Microsoft.Dynamics.Ax.TMS.dll assembly which can be found in Server directory

Engines assembly

Here's the list of engines, but I'll focus my attention on P2PMileage engine for clarity

Rate engine

The idea is that in order to identify transportation rate P2P mileage engine will be used, the rates will be assigned based on Pick up Country (as specified in Rate base type – Assignment above), and apportionment engine based on weight will be used to apportion transportation charges onto sales order line(s)

Rate engine – P2PMileage - Parameters

Here's the details of apportionment engine

Apportionment engine (Generic engine)

For the apportionment engine in use the system will be looking at Route > Segment > Shipment > Container > Line apportionment hierarchy apportioning to Shipment level only taking into account product Weight (please recall Product physical dimensions setup to make it happen)

Apportionment engine - Parameters

Please note that there's a number of apportionment engines available as shown above. The general idea behind apportionment of transportation charges is that taking into account total amount from transportation invoice this amount gets allocated to each order line item on the associated order based on certain criteria. Apportionment criteria may be by weight (based on product data), by volume (based product data), by product cost, by price (net unit price of the product), etc.

In order to understand how transportation time is defined we'll take a look at Transit time engine

Transit time engine

Transit time engine – Details

Please note that I defined 7 days to be required to transport goods from WA (98052) to GA (30009) using Standard service (STD). And this is how I can tell which data elements are required to define transit time. Transit time field screen suggests that I need to specify at least Pick up and Drop off Countries to define transit days

Transit time field

Transit time engine - Parameters

Then we'll create a rate master to define transportation rate and tie it to P2P rate base type

Rate master (created from scratch)

Below we'll see already familiar setup for Rate base type – Assignment based on Pick up Country

Rate master – Rate base type

Rate base setup is still empty, so we'll need to create appropriate setup there

Rate master – Rate base

But before we do this we'll need to introduce Break master defining how we assign rates based on distance buckets. That's why we'll go ahead with creation of a new Break master

Break master (created from scratch)

For simplicity I created Empty Break master charging for each mile as opposed to miles buckets (for example, <100 miles, <200 miles, etc.). Now we can tie it all together (Break master with Rate base setup for Rate master)

Rate base - Details

As you can see I defined that 10$ will be charges for each mile between WA (98052) and GA (30009) for simplicity

Rate base - Search

Note: In case Search screen is not showing you newly created Rate base details please refresh the screen (F5). Now we'll take another look at Rate base type – Rate base setup

Rate base type

And then review the final setup pf Rate master

Rate master

Rate master – Rate base assignment

The rate will be assigned based on Pick up Country and Pick up Zip code criteria from Rate base (P2PMileageBase) for Standard Service (STD)

Now we have enough data to define Shipping carrier Rating profile

Shipping carrier – Rating profile

We still remember Rate engine setup as shown below

Rate engine

Rate engine - Parameters

Now using Mileage engine we'll define what will be the distance between point A (WA, 98052) and point B (GA, 30009) for transportation

Mileage engine

Mileage engine field setup suggest what info will be needed to define distance(s), we'll need at least Pick up Zip code and Drop off Zip code

Mileage engine field

Mileage engine - Parameters

Now I can define that the distance between WA, 98052 and GA, 30009 will be 500 miles

Mileage engine - Details

The next logical step is to define transportation route. You can define it in number of ways. For example, below I defined Route guide with Shipping carrier, Carrier service and Delivery terms criteria

Route guide

Route guide – Origin/Destination

Terms of delivery

You can define Route guide using Route plan

Routing guide

Route plan

Route plan allows me to define multi-stop routes with hubs if necessary

Route plan - Details

Hub master

You may use different hub types, for example, Warehouse, DC (Distribution center), etc.

Hub type

Ultimately you can define stop rates for route segments as necessary

Spot rates

When all the setup is complete you can open Rate route workbench and do Rate shopping

Rate route workbench (Rate shop)

As the result you will see that the system will suggest transportation option exactly based on what we've set up earlier

Rate route workbench – Route results

Rate route workbench – Segments (Segment)

Rate route workbench – Segments (Details)

Now we can switch to the execution mode and proceed with sales order creation

Sales order

Please note that after I created a new sales order address has been propagated properly on sales order based on customer master setup

Sales order - Lines

I'll do inventory reservation before I release work to warehouse

Reservation

Sales order

From sales order I can now execute Rate route workbench directly. This way all the necessary data will be defaulted into Rate route workbench from sales order

Rate route workbench

The result I observe here will be exactly the same comparing to the one we saw when testing. After I feel comfortable about suggested transportation option I can assign this Route with Rate to my sales order

Infolog

Mode of delivery has been properly assigned to sales order line

Sales order Line - Details

Now as I have planned transportation for sales order I'm ready to execute warehouse work to get products out of the warehouse, that's why I'll release work to the warehouse now

Sales order

Note: Please don't forget to specify street in your addresses (From, To) in order to avoid exception upon Release work to warehouse

Infolog

When my work has been successfully released to the warehouse the system also created associated picking wave and shipment

Infolog

This is how associated Shipment looks like

Shipment

This is how associated Load looks like

Load

This is how generated work looks like

Work

This is how associated picking wave looks like

Wave

You can also review the load on Load planning workbench

Load planning workbench

We know that the work has been already released to warehouse, so we can execute the work now

Scanner interface - Login