In this series, we’ll take the role of a beginner and assume that a person has never touched an ERP system or Dynamics AX. We’ll go through the 8 fundamental ERP processes step-by-step with a person going from the beginning level to the intermediate level by the end of the series.
While this series is not meant for an advanced or intermediate Dynamics AX series, it is a great place to start for those who are just beginning or considering Dynamics AX for implementation.

What is an ERP System?

Where people often go wrong is in understanding that an ERP system is really a combination of 9 or 10 software systems in one. That is why the implementation can take so long and involve so many things. The idea behind an ERP system is that there should be one central point which integrates all of the core essential business processes. To understand an ERP system, one needs to have a knowledge of those processes.

What are the fundamental Processes of an ERP System?

Traditionally, there are 11 fundamental processes that an ERP system tries to address. The challenge is to integrate them into one unified process across the entire system. Companies often have problems when they have a different software system for every single fundamental process.
Business Process

Business ProcessWhat does a company do when performing this process?
ProcurementHow does a company go about buying the items and services that it needs to perform day to day operations.
ProductionHow does a company go about making the materials internally for day to day activities
FulfillmentHow does a company deliver services or items that it sales
Material Planning How does a company ensure that they have purchased the right quantity of materials to carry out their day to day activities and budgeted correctly?
Inventory and Warehouse ManagementHow are items and materials stored and moved around that a company needs for daily operations
LifeCycle Data ManagementHow does a company create new products and retires existing ones
Asset Management and Customer ServiceHow does a company maintain and repair the existing equipment that it has to ensure that everything keeps running
Human Capital ManagementHow does a company go about managing its greatest asset – People?  This usually involves training, recruitment, compensation, and benefits and payroll.
Project ManagementHow does a company handle activities that are temporary in nature.  For example, a company makes a one time project to upgrade their existing infrastructure.
Financial AccountingHow does a company record financial transactions in such a way that they meet legal and regulatory requirements – aka externally present information
Management AccountingHow does a company record financial transactions in such a way to where they support internal decision making by management
What is Dynamics AX?

Microsoft Dynamics AX is Microsoft’s flagship ERP product (though they offer a few others that address different types of business scenarios with pricing differences). There is a similar product known as Dynamics NAV which has a lot in common with Dynamics AX but offers a scaled down version of the AX product which is more appropriate for smaller companies.

What are Dynamics AX Modules?

Dynamics AX modules are components of the system that help support core ERP Processes. This is done for licensing and cost. So, someone can purchase modules within Dynamics AX to gain additional software functionality. For a listing of all of the Dynamics AX modules, please visit this website:

What will we Cover?

This will be an ongoing series over time. Our video series will focus on these processes: Procurement, Production, Fulfillment, Inventory and Warehouse Management, Materials Planning, and Accounting.

Title DescriptionAuthorLink to Training VideoTime
Introduction to ProcurementIn this video, we will get an introduction to the Procurement process and understand how we will implement it within Dynamics AX for the rest of our seriesBrandon3:00
Planned OrdersIn this video, we will understand how and when to use planned orders within Dynamics AXBrandon5:00
Purchase RequisitionIn this video, we will understand how and when to use purchase requisitions within Dynamics AXBrandon5:00
Request for QuoteWe will dive into a request for quotation and gain an understanding of how Dynamics AX integrates that into our overall ERP processBrandon5:00
Purchase OrderWe will see the process of actually generating a purchase order in Dynamics AX and understand how and when to use itBrandon5:00
Product ReceiptHere we will see how to generate a product receipt and when to do this within the Dynamics AX systemBrandon5:00
Invoice ReceiptHere we will see how we go about paying invoices for materials that we have purchasedBrandon5:00
Vendor PaymentIn our final step, we see how to generate a vendor payment and close out the processBrandon5:00