A Look Inside Procure to Pay in

Microsoft Dynamics AX 2012

Sandeep Walia Yogesh Kasat
Experience with Dynamics AX
Ignify sells and implements Dynamics AX
400 people
8 locations
Microsoft Dynamics Partner of the Year Winner
Support approximately 10,000 Dynamics AX users
Implemented Dynamics AX for Microsoft (MBS and Retail)
End User of Dynamics AX
5 legal entities: USA, Canada, Singapore, Philippines, India
2 consolidated entities
Dynamics AX 2009
Upgrading to Dynamics AX 2012 in Dec 2012 with cut over Jan 1, 2013
GL, Bank, AP, AR/ Collections, Sales Order, Projects, Expense, Purchase
Order, Fixed Assets, Consolidation, Native Reporting
Budgets with Budget Control (In implementation)
Agenda
o Purchase Requisition
o Request for quote (RFQ)
o Convert to PO
o 3 way match and invoicing on PO
o Vendor payments
o Intercompany master planning





Purchase Requisition
Agenda
o Purchase Requisition
What is purchase requisition
Create Purchase Requisitions
Purchase Requisition Statuses
Process Purchase requisition
Purchase Requisition Workflows
Convert Purchase Requisitions to Purchase Order
Use Budget Control on a Purchase Requisition





What is Purchase requisition
Purchase requisition is internal document that is used for
facilitating internal approvals before Purchasing Department
can procure items.
Used for Indirect purchasing within the organization.
You can request both catalog items and non-catalog items
using purchase requisitions.
Purchase requisitions require that you define a purchase
requisition workflow. This workflow controls the approval
process, on approval purchase orders are created and
submitted to vendors.
Purchase Requisition Process
Create Purchase Requisitions
Path: Procurement and sourcing > Common > Purchase requisitions.

Purchase requisition header
Types of Purchase Requisition Lines
The three types of purchase requisition lines include:
Internal catalog product:
Non-catalog product:
External catalog product:


Product Catelog









Microsoft Dynamics AX provides the ability to create catalogs used for
Purchases of Goods and Services.
Add Catalog item in Purchase requisition








Microsoft Dynamics AX provides the ability to add items to Purchase
Requisition using Catalogs (Items that already have information in the
system) or Non Catalog Items (New Items).
Purchase requisition process actions
There are several process actions available in Purchase requisitions.
The person who created the Purchase requisition has only option of Submit.
For others following options are available
Complete : Approver uses this option to approve a Purchase requisition
Reject : Approver uses this option to approve a Purchase requisition
Request change : Approver uses this option to send it back to requester for a
change in the submitted Purchase requisition
Delegate : Approver uses this option to delegate the Purchase requisition to
some other user for approval.

Following options are available for all
Recall : Approver uses this option to recall the submitted/approved Purchase
requisition
View History : Approver uses this to view the workflow history for action taken
on different stages of the Purchase requisition process.










Purchase requisition workflow setup










Microsoft Dynamics AX offers workflow functionality for Purchase
requisitions to have review and approval process for Purchases. The
function offers flexibility of adding users or employees or groups that are
need in the review or approval process.
Submit a Purchase Requisition to Workflow
When you are finished entering details about a purchase
requisition, you must submit the purchase requisition to workflow








Purchase Requisition Approve/Reject









Options like Approve and Reject are available in Microsoft Dynamics AX
workflow functionality.
Complete a Purchase Requisition











Reject a Purchase Requisition
Actions button and select Reject to reject it.
The preparer of a rejected purchase requisition can modify
the purchase requisition and resubmit the purchase requisition for
approval. He or she also has options to delete the purchase
requisition.













Budget controls on Purchase requisition













Microsoft Dynamics AX
offers Budget Balance
check or Budget Control
when the Purchase
Requisition is submitted just
like the screenshot.
Process Request for Quotation
Agenda
o Process Request for Quotation (RFQ)
Create Request for Quotation
Send Request for Quotation
Enter reply in Quotation
Compare Vendor reply in Quotation
Accepted Vendor quotation to Purchase requisition


Create Request for Quotation
You can create a request for quotation (RFQ) from a purchase
requisition. You can create an RFQ from a purchase requisition only when
the status of the purchase requisition is pending approval, because the lines
in the purchase requisition are updated automatically as you accept lines
from RFQ replies from vendors.
You cannot perform any actions on the purchase requisition,
such as completing, rejecting, or approving it, while the RFQ is in progress.
When you accept an RFQ reply with a type of Purchase requisition, the RFQ
reply lines update the purchase requisition lines with the following
information:
Unit price
Discount percentage
Discount amount
Purchase charges
Line charges
Vendor
External number
External description










Create Request for Quotation (Contd.)









Microsoft Dynamics AX provides the ability to create Request for
Quotations for Purchase Orders which will be sent to different Vendors.
Create Request for Quotation (Contd.)









Create Request for Quotation (Contd.)









The Request for Quotations in Microsoft Dynamics AX allows the users to
add Vendor account where the request will be sent to.
Send Request for Quotation









Request for Quotation document









Inquiry on Request for Quotation









Microsoft Dynamics AX provides easy navigation to all sent Request for
Quotations from Vendors and allows user to easily update the replies of
the Vendor.
RFQ Info









Microsoft Dynamics AX provides the ability to update the Request for
Quotations details like Unit Price, Delivery date as well as Reasons for
accepting or rejecting the quote.
Approve or reject RFQ









RFQ acceptance









Acceptance of Quotation









Request for Quotation status









PO placement









Microsoft Dynamics AX offers either manual or automatic creation of
Purchase Orders once the Purchase Requisition has been approved.
Purchase Order









Purchase order









Verify budget on PO









Microsoft Dynamics AX also provides budget controls on Purchase
Orders created and submitted.
Budget status on PO









Microsoft Dynamics AX provides easy viewing of information when the
Purchase Order pass budget check.
Tracking of PO changes









Microsoft Dynamics AX provides the functionality of tracking changes or
versions of Purchase Orders.
Tracking of PO changes









PO Versions









Cancellation of PO









Microsoft Dynamics AX allows Purchase Order to be cancelled to help
users maintain the purchases that they are handling or if in some cases,
purchases that are no longer needed.
PO Receiving
Purchase order PO receiving
Arrival journals (advanced warehousing)







PO Invoicing 3 way match









In Microsoft Dynamics AX 2012, the Invoice Matching
framework is extended to support several new
matching scenarios. The new types of invoice
matching include the following:

Extended price matching
Invoice total matching
Line matching
o Two-way matching
o Three-way matching
Miscellaneous charge matching
PO Invoicing - Variance









Vendor Payment Process
Payment Journals

The form where payment to vendors are posted according to the terms
of payment set for the vendor.

Payment Journals
Path: Accounts
Payable >
Journal >
Payment >
Payment Journal
Create Payment Lines
There are several ways to create payment lines:
Functions > Settlement
Payment proposal
Manually

Functions> Settlement
Use the Settlements option to select the
specific invoice lines to pay.


Payment Journals
Path: Accounts
Payable >
Journal >
Payment >
Payment Journal
> Lines >
Functions >
Settlement
NOTE: A red mark displays in the Is marked field if a
transaction already is
marked for settlement.

Payment Proposal
The Payment proposal option searches for invoice lines that meet
selected search criteria.


Payment Journals
Path: Accounts
Payable >
Journal >
Payment >
Payment Journal
> Lines > Payment
Proposal

Payment Lines
Where the specifications for payment transactions are entered.


Payment Journals
Path: Accounts
Payable >
Journal >
Payment >
Payment Journal
> Lines
The Generate payments command on the Functions button to generate the payment.
This is the selected method of payment and the setup of controls if Microsoft
Dynamics AX 2012 should, for example, print checks or create a payment file.

Generate Payments
Path: Accounts
Payable >
Journal >
Payment >
Payment Journal
> Lines >
Functions >
Generate
payments
NOTE: To print checks, before you run the generate payments process, run the create checks process in
bank management.
To void checks after they are printed, click Payment status and select Reject.

CAUTION: As soon as checks are printed, the journal lines cannot be deleted unless the checks are voided.

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