Microsoft MB6-870 (Microsoft Dynamics AX 2012 Trade and Logistics) exam dumps vce, practice test questions, study guide & video training course to study and pass quickly and easily. Microsoft MB6-870 Microsoft Dynamics AX 2012 Trade and Logistics exam dumps & practice test questions and answers. You need avanset vce exam simulator in order to study the Microsoft MB6-870 certification exam dumps & Microsoft MB6-870 practice test questions in vce format.

Foundations of the MB6-870 Microsoft Dynamics AX 2012 Trade and Logistics Certification

The MB6-870 Microsoft Dynamics AX 2012 Trade and Logistics exam serves as a critical benchmark for professionals aiming to validate their expertise in one of the most powerful enterprise resource planning systems. This certification is specifically tailored for individuals who manage the daily procedures essential for leveraging the full potential of the trade and logistics functionalities within Dynamics AX 2012. Passing this exam demonstrates a profound understanding of supply chain principles as they are applied within the system, making it a valuable credential for anyone involved in inventory, sales, purchasing, or warehouse management. It signals to employers that you possess the skills to configure and operate the system efficiently.

Achieving the MB6-870 certification requires more than just theoretical knowledge; it demands a practical grasp of the application’s features. The exam content is designed to test a candidate's ability to handle real-world scenarios, from setting up initial product data to managing complex order fulfillment and inventory costing. For this reason, preparation is key to success. Candidates should immerse themselves in the software, gaining hands-on experience that complements their theoretical studies. This credential is not just a piece of paper but a testament to a consultant's or manager's ability to drive business efficiency through the strategic use of Dynamics AX 2012.

Understanding Microsoft Dynamics AX 2012

Microsoft Dynamics AX 2012 is a comprehensive enterprise resource planning (ERP) solution designed for mid-sized to large enterprises. It provides a wide range of functionalities that cover financials, human resources, manufacturing, and of course, trade and logistics. The platform's strength lies in its ability to offer a unified view of business operations, allowing different departments to work from a single source of truth. Its architecture is both powerful and flexible, enabling organizations to adapt the software to their specific industry needs and business processes. The system is designed to improve productivity and provide deep insights into business performance.

The Trade and Logistics module within Dynamics AX 2012 is particularly robust, forming the backbone of any company involved in the distribution, sale, or procurement of goods. This module integrates seamlessly with other areas of the ERP, such as Finance and Production, ensuring that every transaction, from a sales order to a purchase receipt, is reflected accurately across the entire organization. Understanding this interconnectedness is a fundamental aspect of preparing for the MB6-870 exam, as candidates must appreciate how a decision in one area can impact processes and financial reporting in another. This holistic approach is what makes Dynamics AX 2012 so effective.

The Core Components of Trade and Logistics

The Trade and Logistics module is a vast and multifaceted component of Dynamics AX 2012. At its heart, it is concerned with the flow of goods and services into, through, and out of an organization. This encompasses a variety of core business processes. Procurement, or the purchasing of goods and materials, is a foundational element. It involves managing vendors, creating purchase orders, receiving goods, and handling vendor invoices. The skills tested in the MB6-870 exam ensure a professional can manage this entire procure-to-pay cycle efficiently within the system, optimizing purchasing strategies and maintaining strong supplier relationships.

On the other side of the spectrum is the sales and distribution process. This involves managing customer relationships, creating sales quotations and orders, managing the picking and shipping of goods, and invoicing customers. A key focus of the MB6-870 certification is ensuring candidates can configure and execute the order-to-cash cycle flawlessly. This includes setting up complex pricing structures, managing customer credit, and ensuring timely delivery. Mastery of these processes is essential for maintaining customer satisfaction and ensuring a healthy cash flow for the business, making it a critical area of study for the exam.

Inventory and warehouse management form the bridge between procurement and sales. This function involves tracking every item the company owns, from its receipt to its final dispatch. The MB6-870 exam places significant emphasis on a candidate's ability to manage product information, set up inventory valuation methods, and handle various inventory transactions like transfers and adjustments. It also covers the management of physical warehouse locations, including processes for picking, packing, and quality control. Effectively managing inventory is vital for minimizing carrying costs, avoiding stockouts, and ensuring operational efficiency, all of which are key topics.

Why the MB6-870 Certification Matters for Your Career

In a competitive job market, professional certifications act as a powerful differentiator. The MB6-870 certification specifically validates a highly sought-after skill set in the world of ERP implementation and management. Companies that have invested heavily in Microsoft Dynamics AX 2012 need qualified professionals who can maximize their return on that investment. A certified individual is immediately recognized as someone who has met a rigorous standard of competence, reducing the perceived risk for a potential employer. This can lead to better job opportunities, including roles as a functional consultant, business analyst, or supply chain manager.

Beyond securing a new role, the knowledge gained while preparing for the MB6-870 exam enhances your on-the-job performance. The structured learning process forces you to explore features and functionalities of the Trade and Logistics module that you might not encounter in your day-to-day work. This broader understanding allows you to propose more effective solutions to business challenges, improve existing processes, and contribute more strategically to your organization. This increased value often translates into greater job security and a higher potential for career advancement and salary growth within your current company.

For independent consultants or those working for a Microsoft Partner, the MB6-870 certification is almost a necessity. It provides credibility when engaging with clients and demonstrates a commitment to professional excellence. Clients are more likely to trust a certified consultant to configure their critical business systems. This credential can open doors to more complex and rewarding projects, allowing you to build a reputation as an expert in the field. Ultimately, investing the time and effort to pass the MB6-870 exam is an investment in your long-term professional growth and earning potential in the Dynamics ecosystem.

Target Audience for the MB6-870 Exam

The MB6-870 exam is not limited to a single job title but is relevant to a wide array of professionals who interact with the supply chain functions of Microsoft Dynamics AX 2012. One of the primary audiences is the functional consultant. These individuals are responsible for implementing, configuring, and supporting the system for clients. For them, certification is a validation of their ability to translate business requirements into effective system solutions. They need a deep and comprehensive understanding of the module's capabilities to guide clients toward best practices and successful implementations.

Another key group includes various managers within an organization, such as sales managers, purchasing managers, and warehouse managers. These individuals are responsible for the outcomes of the processes managed within the system. While they may not be involved in the initial setup, they need to understand the system's logic and capabilities to manage their teams effectively, interpret reports, and drive process improvements. The MB6-870 exam provides them with the foundational knowledge required to leverage the system as a strategic tool rather than just a transactional database, enabling them to make more informed decisions.

End-users and "super-users" who handle specialized roles also benefit greatly from preparing for the MB6-870 exam. This includes salespeople, purchasers, product designers, and inventory controllers. For these roles, a deep understanding of the system's functionality can lead to greater efficiency and accuracy in their daily tasks. For instance, a salesperson who understands trade agreement setup can create more competitive quotes, while an inventory controller with knowledge of counting journals can ensure greater stock accuracy. This certification empowers them to become experts and go-to resources within their departments.

Managing the Supply Chain Foundation

The largest portion of the MB6-870 exam, accounting for approximately thirty-eight percent of the content, is dedicated to managing the supply chain foundation. This topic area is critical because everything else in the Trade and Logistics module is built upon it. It begins with product information management, which involves setting up products, items, and services. Candidates must know how to define item groups, item model groups, and inventory dimensions such as size, color, and configuration. A poorly configured product foundation can lead to widespread issues in inventory valuation, sales processing, and reporting.

A significant part of this domain focuses on inventory management setup. This includes the configuration of inventory valuation models, which determine how the cost of goods sold is calculated. The MB6-870 exam requires a thorough understanding of methods like FIFO, LIFO, weighted average, and standard cost. Candidates must know not only how to configure these models but also the business and accounting implications of each choice. This knowledge is essential for ensuring that the company’s financial statements accurately reflect the value of its inventory and the cost of its sales.

Furthermore, this section covers the setup of warehouse and inventory logistics. This involves defining warehouses, locations, aisles, and bins within the system to accurately represent the physical layout of storage facilities. It also includes the setup of quarantine management processes for quality control and the configuration of tracking dimensions like serial and batch numbers. A solid grasp of these concepts is essential for maintaining inventory control, ensuring traceability of goods, and optimizing warehouse operations. Mastery of the supply chain foundation is the first and most important step toward passing the MB6-870 exam.

Initial Steps in Product Configuration

The journey toward mastering the topics in the MB6-870 exam begins with the fundamental building blocks of the system: the products. Configuring products correctly is paramount. This involves more than just assigning an item number and a name. In Dynamics AX 2012, you must differentiate between products and released products. A product master exists as a template, while a released product is a specific version of that master that can be used in transactions within a particular legal entity. This distinction is crucial for organizations that operate in multiple companies or regions.

Candidates preparing for the MB6-870 exam must be adept at using product dimensions. These are characteristics that define variations of a product, such as size, color, or style. Properly configuring dimension groups allows a business to manage thousands of product variants using a single product master, which greatly simplifies data management. The exam will likely test your ability to create these groups and understand how they affect inventory tracking, sales order entry, and reporting. Without this knowledge, managing a diverse product portfolio becomes an administrative nightmare.

Another critical aspect is the setup of item model groups. This is one of the most important configurations for any item and is a key topic for the MB6-870 exam. The item model group dictates fundamental inventory policies. It determines whether an item’s inventory is tracked financially, whether negative inventory is permitted, and which inventory valuation method is used. A single incorrect setting in the item model group can have significant financial and operational consequences, making it a vital area for any aspiring certified professional to understand in depth. It controls the very essence of how an item behaves in the system.

Setting up Vendors and Customers

While products are central to the supply chain, the external parties you trade with are equally important. A core competency tested in the MB6-870 exam is the ability to properly set up and manage vendor and customer master records. Creating a vendor involves capturing essential information like addresses and contact details, but the configuration goes much deeper. You must define payment terms, settlement methods, and default posting profiles that determine how vendor transactions are recorded in the general ledger. These settings automate accounting processes and ensure financial accuracy.

Similarly, customer setup is a detailed process that is crucial for the order-to-cash cycle. Preparing for the MB6-870 exam means understanding how to configure customer groups, which can be used to categorize customers for reporting and default settings. It also involves setting up credit limits to manage financial risk, defining delivery terms, and assigning pricing groups. A well-configured customer master ensures a smooth sales process, from order entry and pricing to shipping and invoicing, ultimately leading to improved customer satisfaction and faster payment collection.

The relationship between customers, vendors, and the financial dimensions in Dynamics AX 2012 is another key area. Financial dimensions allow businesses to tag transactions for more detailed reporting and analysis. For example, you might tag sales transactions by business unit, department, or region. The MB6-870 exam requires candidates to understand how to assign default financial dimensions to customers and vendors. This ensures that every transaction with that party is automatically categorized correctly, saving time and improving the quality of financial data for strategic decision-making.

Mastering Product Information Management in MB6-870

Product Information Management (PIM) is the cornerstone of the supply chain foundation, a topic that holds significant weight in the MB6-870 exam. Effective PIM ensures that data about products is consistent, accurate, and readily available across the entire organization. In Dynamics AX 2012, this starts with the clear distinction between a product master and a released product. Candidates must understand that a product master is a global definition, while a released product makes that definition available for transactions within a specific company, allowing for company-specific attributes and settings. This architecture is vital for multi-company environments.

The configuration of item groups is another fundamental PIM concept for the MB6-870 exam. Item groups are used to categorize items for reporting and accounting purposes. They link inventory items to the correct main accounts in the general ledger for transactions such as sales, purchases, and inventory adjustments. A proper item group setup is essential for ensuring that all inventory-related transactions are posted correctly, which is critical for accurate financial statements. A candidate's ability to configure these posting profiles is a key indicator of their understanding of the system's integration between logistics and finance.

Furthermore, the MB6-870 exam will test your knowledge of product attributes. Attributes allow you to add detailed, searchable characteristics to products beyond the standard fields. For example, a retailer might add attributes for material, brand, or warranty period. This functionality is crucial for e-commerce integrations, catalog generation, and providing detailed information to sales staff and customers. Understanding how to create attribute groups and assign them to product categories is a practical skill that demonstrates a deeper level of expertise in managing a rich and complex product portfolio within Dynamics AX 2012.

Configuring Item Model and Dimension Groups

The item model group is arguably one of the most critical setup forms for any product and a major focus for anyone preparing for the MB6-870 exam. This single configuration screen controls the core inventory policies for an item. It dictates whether physical and financial inventory must be tracked, whether the system will allow physical inventory to go negative, and which inventory costing method will be applied. For example, choosing not to post financial inventory for an item means its value will not be reflected on the balance sheet, a decision with significant accounting implications.

Inventory dimensions are equally important for detailed tracking and management. The MB6-870 exam requires candidates to master the three types of dimension groups: product, storage, and tracking. Product dimensions, such as configuration, size, and color, define the different variants of a product. Storage dimensions, like site, warehouse, and location, specify where the inventory is physically located. Tracking dimensions, including batch and serial numbers, provide traceability for specific units of an item. A candidate must know how to create these groups and assign them to products to enable the desired level of inventory granularity.

The interplay between these groups is a key concept. For example, you might decide that for a particular item, you want to track inventory financially at the warehouse level but not at the individual location level. This is controlled by the settings within the storage dimension group. Understanding how to activate certain dimensions and specify whether they should be included in financial tracking, sales pricing, or warehouse management processes is essential. This level of configuration allows a business to tailor its inventory tracking precisely to its operational needs, a skill the MB6--870 certification is designed to validate.

A Deep Dive into Inventory Valuation Methods

A core component of the supply chain foundation covered in the MB6-870 exam is the management of inventory costing. The inventory valuation method, or costing model, determines the cost of goods sold (COGS) and the value of the remaining inventory. Microsoft Dynamics AX 2012 supports several methods, and candidates must understand the mechanics and business implications of each. The most common methods are FIFO (First-in, First-out) and LIFO (Last-in, First-out), which assume that either the first or the last items purchased are the first ones to be sold, respectively.

Another widely used method is the weighted average. The MB6-870 exam requires an understanding of both the weighted average and weighted average date methods. The weighted average model calculates a new average cost for an item after each purchase receipt, which is then used to value subsequent sales issues. This method smooths out price fluctuations over time. The choice of valuation method directly impacts the reported profitability and the inventory value on the balance sheet, making it a critical decision that a certified professional must be able to explain and implement correctly.

Standard cost is a different approach where items are valued at a predetermined, or "standard," cost. Any difference between the standard cost and the actual purchase price is recorded in variance accounts in the general ledger. This method is often used in manufacturing environments to provide cost control and performance measurement. A thorough preparation for the MB6-870 exam involves not only knowing how to set up these costing models in the item model group but also understanding how to perform inventory closing and recalculation processes, which are necessary to ensure the accuracy of the chosen perpetual costing method.

Understanding Inventory Journals and Transactions

Daily inventory management in Dynamics AX 2012 is largely handled through a variety of journals, and proficiency with these is a must for the MB6-870 exam. Inventory journals are used to post various types of physical inventory transactions that are not directly related to sales or purchase orders. For example, the movement journal is used to manually move inventory from one location to another or to write off a small quantity of damaged goods. It allows for an immediate increase or decrease in on-hand inventory at a specific location, with an offsetting entry to a designated general ledger account.

The inventory adjustment journal is used to post initial on-hand quantities or to make periodic adjustments to inventory levels, often after a physical count. Unlike the movement journal, this journal typically affects both the inventory quantity and its value without an offset to a specific transaction. The profit and loss journal allows for similar adjustments but explicitly posts the financial impact to a specific profit or loss account. Knowing which journal to use in a given business scenario is a practical skill tested in the MB6-870 exam, as using the wrong one can lead to incorrect inventory valuation and accounting entries.

Cycle counting and physical inventory management are also handled through journals. The counting journal is a specialized tool used to record the results of a physical inventory count. After the on-hand quantities are entered, the journal can calculate any discrepancies between the system's on-hand record and the physical count. Posting this journal automatically creates the necessary inventory adjustments to align the system with reality. Understanding the entire cycle counting process, from creating counting groups to posting the final adjustments, is a key competency for anyone aiming for the MB6-870 certification.

Managing Serial and Batch Numbers

For many industries, such as electronics, food and beverage, and pharmaceuticals, the ability to trace products is not just a best practice but a legal requirement. The MB6-870 exam thoroughly covers the setup and use of tracking dimensions: serial and batch numbers. A serial number is a unique identifier assigned to a single unit of an item, allowing it to be tracked individually throughout its lifecycle. A batch number, on the other hand, is assigned to a group of items that were produced or received together, sharing common characteristics like an expiration date.

To use these tracking dimensions, a candidate preparing for the MB6-870 exam must know how to create and configure a tracking dimension group. This setup determines the rules for how and when serial or batch numbers are assigned and used. For example, you can configure the system to require a batch number to be specified on all transactions, from purchase receipt to sales delivery. You can also control whether a number can be reused and if the system should automatically generate numbers. These settings are critical for ensuring data integrity and traceability.

The practical application of serial and batch numbers is a key focus. This includes the process of registering numbers upon receipt of goods, picking specific batches or serial numbers for a sales order, and performing inventory lookups based on these numbers. The MB6-870 exam will test your ability to manage these processes efficiently. For example, you should understand how to use batch attribute searching to find inventory that meets specific customer requirements, such as a minimum shelf life. This level of detailed inventory management is a hallmark of a well-implemented Trade and Logistics module.

The Role of Quarantine and Quality Management

Maintaining product quality is a critical supply chain function, and Dynamics AX 2012 provides robust tools for this purpose. The MB6-870 exam includes topics on quarantine and quality management. Quarantine management is the process of isolating a subset of inventory for further inspection or testing before it is made available for general use or sale. This is often used for incoming raw materials or finished goods from production. Candidates must know how to configure the system to automatically generate quarantine orders upon receipt of goods from a purchase order or production order.

The quarantine process involves moving the items to a dedicated quarantine warehouse. Once there, quality inspections can be performed. Upon completion of the inspection, the quarantine order can be ended, and the items can be returned to the main warehouse, scrapped, or returned to the vendor. The MB6-870 exam requires an understanding of this entire workflow, including the setup of quarantine warehouses and the disposition codes that determine the outcome of the quarantine process. This ensures that only products meeting quality standards enter the main inventory supply.

Quality management provides a more structured approach to testing. The MB6-870 exam covers the setup of quality associations, which link quality testing requirements to specific events, such as the receipt of an item from a particular vendor. You can define test groups, specific tests (e.g., measuring a dimension or checking a color), and the acceptable values. When a trigger event occurs, the system automatically creates a quality order, guiding a user through the required tests. Understanding how to manage quality orders, record test results, and validate the outcomes is a key skill for any professional responsible for supply chain integrity.

Setting Up Warehouse and Inventory Locations

Effective management of the physical storage of goods is fundamental to logistics, and this is a core topic in the MB6-870 exam. The process begins with defining the logical and physical structure of your storage facilities in Dynamics AX 2012. This involves creating sites, which typically represent distinct geographical locations, and warehouses, which represent specific buildings or storage areas within a site. Each warehouse can then be further subdivided into a hierarchical structure of locations, such as aisles, racks, shelves, and bins, providing a granular map of where every piece of inventory is stored.

The MB6-870 exam requires candidates to understand not just how to create these structures but also how to configure their properties. For example, you can assign location types (e.g., picking location, bulk storage, receiving dock) to control how they are used in warehouse processes. You can also set up location profiles to apply common characteristics to groups of locations, such as dimensional limits or whether mixed items are allowed. This level of setup is crucial for enabling more advanced, system-directed warehouse management processes and optimizing the use of space.

Furthermore, the concept of inventory blocking is an important control feature covered by the MB6-870 curriculum. You can manually block an entire item or a specific batch from being issued in sales or production orders, which is useful if a quality issue is discovered. You can also block specific warehouse locations from being used, for example, if a rack is under maintenance. A certified professional must know how to use these tools to maintain control over the inventory and ensure that only available, approved stock is used to fulfill demand, preventing costly errors and delays.

The Sales Order Process in Dynamics AX 2012

The order-to-cash cycle is the lifeblood of any distribution business, and a deep understanding of the sales order process is essential for passing the MB6-870 exam. This process begins with the creation of a sales order, which is a formal agreement with a customer to sell specific goods or services under defined terms. Candidates must be proficient in creating sales orders, adding lines, and confirming them. This includes understanding the various order types, such as a standard sales order, a subscription order for recurring billing, or a journal, which is a one-step order and invoice.

Once a sales order is confirmed, the next stage is fulfillment. The MB6-870 exam curriculum covers the entire process of releasing the order to the warehouse for picking and shipping. This involves generating a picking list, which guides warehouse staff to the correct locations to retrieve the items. After the items are picked, they must be packed and shipped. Candidates need to know how to process the packing slip, which is the legal document that accompanies the shipment and confirms the quantity of goods sent. Posting the packing slip deducts the inventory from the on-hand stock.

The final step in the process is invoicing. After the goods have been shipped, a customer invoice is generated from the sales order. Posting the invoice creates the financial transaction, debiting the customer's account receivable and crediting the revenue account. A key skill for the MB6-870 exam is understanding the interplay between these steps and the impact they have on both inventory and the general ledger. A certified professional must be able to manage the entire cycle, handle exceptions like partial shipments, and troubleshoot any issues that arise along the way.

Mastering Purchase Order Management for MB6-870

Complementing the sales process is the procure-to-pay cycle, which is managed through purchase orders. This is another critical area of study for the MB6-870 exam. The process starts with creating a purchase order to request goods or services from a vendor. Candidates must demonstrate the ability to create purchase orders, specify items, quantities, prices, and delivery dates. Just like with sales orders, understanding the different purchase order types and their use cases is important for demonstrating a comprehensive knowledge of the system's capabilities.

After a purchase order is created and confirmed with the vendor, the next step is to receive the goods. The MB6-870 exam requires proficiency in processing purchase order receipts. This is typically done by posting a product receipt, formerly known as a packing slip in earlier versions. Posting the product receipt increases the on-hand inventory quantity and creates an accrual in the general ledger for the value of the received goods. It is the key step that makes the inventory available for use in sales or production. Managing receipts, including handling over-deliveries and under-deliveries, is a vital skill.

The procure-to-pay cycle concludes with vendor invoicing. When the vendor's invoice is received, it must be matched against the purchase order and the product receipt to ensure the company is being billed for the correct quantities and prices. Dynamics AX 2012 provides robust three-way matching capabilities to automate this validation. An individual preparing for the MB6-870 exam must understand how to enter and post a vendor invoice, manage any matching discrepancies, and appreciate the financial impact of this transaction, which relieves the accrual and creates a liability in the vendor's payable account.

Utilizing Trade Agreements and Pricing

Setting the correct price for a product is a cornerstone of any trade and distribution business. The MB6-870 exam places significant emphasis on a candidate's ability to configure and use the advanced pricing and discount features in Dynamics AX 2012, primarily through trade agreements. Trade agreements are a powerful and flexible tool that allows you to set up complex pricing rules for sales and purchasing. Instead of relying on a single base price for an item, you can create agreements that define prices based on the customer, vendor, quantity, date, and other variables.

There are several types of trade agreements that candidates for the MB6-870 exam must master. A price agreement sets a specific unit price for an item. A line discount agreement applies a percentage or fixed amount discount to a single item. A multiline discount agreement offers a discount if a customer buys a combination of different items. Finally, a total discount agreement provides a discount on the entire order if the total value exceeds a certain threshold. Knowing when to use each type of agreement is key to implementing an effective pricing strategy.

The system uses a sophisticated search mechanism to find the best applicable price for a given sales or purchase order line. Understanding this "find next" logic is crucial for troubleshooting pricing issues and is a common topic in the MB6-870 exam. You need to know how to set up price and discount groups, activate trade agreements, and understand the hierarchy the system uses to apply them. Mastering trade agreements allows a business to automate its pricing, reduce errors, and execute complex promotional campaigns, making it a highly valuable skill for any certified professional.

Handling Quotations and Inquiries

Before a formal order is placed, the sales or purchasing process often begins with a quotation. The MB6-870 exam curriculum includes the management of both sales and purchase quotations. A sales quotation is a legally non-binding offer made to a customer for the delivery of products or services. It allows a salesperson to provide a potential customer with pricing and terms without creating a firm commitment in the system. Candidates must know how to create a quotation, add lines, calculate prices, and send it to the customer.

A key feature of the quotation process is the ability to convert a successful quotation directly into a sales order. This saves time and reduces data entry errors. The MB6-870 exam will likely test your understanding of this entire workflow, including how to manage the status of a quotation (e.g., sent, confirmed, lost) and how to follow up on it. The system also supports quotation templates, which can be used to speed up the creation of common quotes, and functionality for calculating the probability of success, which is useful for sales forecasting.

On the procurement side, a request for quotation (RFQ) process can be used to solicit bids from multiple vendors for a specific set of items. This functionality, covered in the MB6-870 syllabus, allows a purchasing agent to create an RFQ, send it to selected vendors, receive their replies (bids), and compare them based on price, delivery time, and other criteria. Once a winning bid is selected, the RFQ can be used to automatically generate a purchase order. This structured process helps ensure that the company gets the best possible value for its purchases.

Advanced Logistics and Delivery Management

Effective logistics management is about more than just shipping an order; it's about optimizing the entire delivery process. The MB6-870 exam delves into several advanced logistics features of Dynamics AX 2012. One such feature is delivery schedules. This allows you to split a single sales order line or purchase order line into multiple deliveries over time. For example, a customer might order 1,200 units but request that 100 be delivered on the first of each month for a year. Delivery schedules provide a clear and structured way to manage these long-term agreements.

Another key area is carrier management and transportation planning. The MB6-870 exam requires knowledge of how to set up shipping carriers, modes of delivery, and freight charges. The system can be configured to automatically calculate freight costs based on factors like weight, volume, distance, or a flat rate. This information can then be added to the sales order and passed on to the customer. Understanding how to use these features ensures accurate billing and helps in making cost-effective transportation decisions, which directly impacts the company's bottom line.

The system also provides tools for managing direct deliveries, also known as drop shipments. In a direct delivery scenario, a company sells a product to a customer but has the vendor ship the goods directly to that customer. The company never physically receives the inventory. The MB6-870 curriculum covers the process for creating a direct delivery, which automatically generates a purchase order linked to the sales order. A certified professional needs to understand how to manage this end-to-end process, ensuring that the vendor ships on time and that both the customer and vendor are invoiced correctly.

Managing Customer and Vendor Returns

Not every transaction goes perfectly, and handling returns is a critical part of the distribution cycle. The MB6-870 exam covers the process for managing both customer returns and vendor returns. For customer returns, the process is managed through a Return Material Authorization (RMA). An RMA order is created to authorize the return, track the receipt of the returned goods, and manage their disposition. Candidates must know how to create an RMA, specify the reason for the return, and process the item's arrival at the warehouse.

Once a returned item is received, it must be inspected. The outcome of this inspection determines the disposition of the goods and the action taken for the customer. The MB6-870 exam tests your knowledge of these disposition actions. For example, the item could be returned to inventory if it is in good condition, scrapped if it is damaged, or sent back to the customer. Based on the disposition, a credit note can be issued to the customer, or a replacement item can be sent. Managing this process efficiently is key to maintaining good customer relationships.

The process for returning goods to a vendor is similar. If a company receives defective or incorrect goods from a supplier, it can create a vendor return to manage the process of sending them back. This involves creating a return purchase order, shipping the items back to the vendor, and processing a debit note to reduce the amount owed to that vendor. A thorough understanding of both the customer and vendor return processes, including the inventory and financial transactions involved, is a required competency for the MB6-870 certification.

Understanding Charges and Allocations

In trade and logistics, the cost of an item is often more than just its purchase price. There are additional costs, known as charges, that need to be accounted for, such as freight, insurance, and customs duties. The MB6-870 exam requires candidates to understand how to set up and use the charges functionality in Dynamics AX 2012. You can create charge codes for different types of costs and then apply them to sales or purchase orders. These charges can be a fixed amount, a percentage of the order value, or based on the quantity or weight of the items.

For purchase orders, these charges can be allocated to the cost of the inventory items. This is a crucial aspect of landed cost management. For example, if you have a $100 freight charge on a purchase order with two different items, you can configure the system to allocate that $100 across the items based on their weight, volume, or value. This provides a more accurate inventory cost, which in turn leads to more accurate costing and profitability analysis. The MB6-870 exam will test your ability to configure these allocation methods.

On the sales side, charges are typically passed on to the customer. For example, you might add a charge for special packaging or expedited shipping to a sales order. These charges are then included on the customer's invoice. Understanding how to set up automatic charges that are applied based on certain criteria (e.g., for a specific customer group or mode of delivery) is an important skill. It ensures that all relevant costs are captured and billed correctly, preventing revenue leakage and improving the overall profitability of sales transactions.

An Introduction to Bills of Materials (BOMs)

A Bill of Materials, commonly known as a BOM, is a fundamental concept in both manufacturing and distribution, making it a significant topic in the MB6-870 exam. At its core, a BOM is a comprehensive list of the raw materials, components, and sub-assemblies required to produce or assemble a finished product. It is essentially the recipe for a product. In Dynamics AX 2012, the BOM is not just a simple list; it is a structured record that defines the precise quantity of each component needed to make one unit of the parent item. This structure is critical for planning, costing, and production processes.

Understanding the purpose and structure of a BOM is the first step toward mastering this section of the MB6-870 curriculum. The BOM forms the basis for material requirements planning (MRP), which calculates how many components need to be purchased or produced to meet demand for finished goods. It is also used in the BOM calculation process to determine the standard cost of a manufactured item by rolling up the costs of all its components and associated labor. A candidate must appreciate that an inaccurate BOM can lead to production shortages, incorrect product costing, and unreliable planning.

The BOM functionality in Dynamics AX 2012 is also used in non-manufacturing scenarios, which is highly relevant for a Trade and Logistics exam. For example, a distributor might use a BOM to define a sales kit, which is a collection of items sold together as a single unit. When the kit is entered on a sales order, the system can be configured to automatically explode the BOM, listing the individual components for picking in the warehouse. This demonstrates the versatility of the BOM module beyond traditional production, a concept that MB6-870 candidates are expected to understand.

Creating and Managing BOM Versions

In the real world, products and their components change over time. A new supplier might offer a better component, a design might be improved, or a material might become obsolete. To manage these changes in a controlled manner, Dynamics AX 2012 uses BOM versions. This is a critical concept for the MB6-870 exam. Instead of directly editing a single BOM, you create different versions of it. Each version has its own set of components and can be assigned a specific period of validity using from-dates and to-dates. This provides a full audit trail of how a product's recipe has evolved.

A key skill tested in the MB6-870 exam is the ability to create, approve, and activate BOM versions. When a new BOM version is created, it starts in a draft state. It must then be approved by an authorized user, which signifies that the design has been validated. Finally, the approved version must be activated. Activating a BOM version makes it the default version to be used by the system for planning and costing calculations for its validity period. This multi-step process ensures that only validated and authorized BOMs are used in live operations, preventing costly mistakes.

Managing multiple BOM versions also requires an understanding of how the system selects which version to use. The active version with the correct date range is typically chosen. However, the system also allows for site-specific BOMs. This means you can have a different active BOM version for the same product at different manufacturing or distribution sites. This is useful if, for example, you source components from different local suppliers at each site. A candidate for the MB6-870 certification must be able to configure and manage this complexity to support diverse operational requirements.

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