When I use the 'Add Data' option on Dynamics Ax tab on Excel 2010, I am not able to see the 'services' that are created in Ax 2012. Excel displays only the Queries. What do I need to do?

On Ax2012, Select Organization Administration, Setup, Document Management, Document Data Sources

If you don't find any item of Data Type Source = 'Services', add one:

Module: General Ledger

Data Souce Tyep : Service

Data Source Name: BudgetTransactionService.

Select 'Activate' to activate the data source.

On MS Excel 2010, Choose 'Dynamics Ax' tab, then click on 'Add Data'.  As per the documentation, all data sources created in Ax must be visible here, but unfortunately it shows data sources of type 'Query'.