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Functional Requirements Document

Functional Requirements Document
for Microsoft Dynamics AX 2012

Prepared for
[Seniorta]

Project
[Senioreta AX2012]

Prepared by
[Helal Saad Eldien]

Reviewing by
[Khaled Rashad]







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Functional Requirements Document

Introduction
This document is intended to be used to gather information from [Senioreta]. It should be used to write
down the responses to the questions that are asked of the [Senioreta]. This document is organized by role-
based needs and criteria. Whenever possible, it should be completed with input from the roles specified
for each section. Careful completion of this document will help ensure a smooth upgrade transition.





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Functional Requirements Document

1. Product Designer
1.1 Product Configuration (Product Builder)

1.1.1 Do your customers have the option to customize products to their specifications?
1.1.2 Are the options set based on rules?
1.1.3 Who is responsible for entering the order for the customer?
1.1.4 Does the customer require a quote for the item based on the items configuration?
1.1.5 How is the price calculated?
1.1.6 Does the customer request a ship date for the item?
1.1.7 How are the items configured? What are the rules?
1.1.8 Do you have different modeling variables?
1.1.9 If yes, can those variables be grouped together?
1.1.10 What validation rules are used for configuring the options for an item?
1.1.11 What steps should the product model perform in order to create a finished configuration?
1.1.12 Should the system create an order-specific BOM for production of this item, or should it make
use of BOMs for existing configurations?
1.1.13 (2012): Should the BOM be maintained for the same item across different sites?
1.1.14 Which items should have a mandatory configuration? (no standard)
1.1.15 Should the configuration box pop up for the user automatically on the sales order, or should
the user be required to invoke the configuration form?
1.1.16 What information should be printed on the sales quotation about the configured item?
1.1.17 What indicators and warnings should appear for the user if the configuration breaks a
validation rule?
1.1.18 Do you need a report of where the variables are being used?
1.1.19 Which users should have access to the configuration information?
1.1.20 (2012): If you are using multiple sites for production, do any item configurations change by
site?
1.1.21 (2012): Should the configuration variables be printed on order documentation such as quotes,
confirmations, pick/pack slips, and invoices?

1.2 Item Attributes

1.2.1 What kind of dimensions/attributes do you associate with your items (size, color,
configuration)
1.2.2 Do you have configuration groups/routes/rules?
1.2.3 Do you have phantom items?
1.2.4 Do you substitute items?
1.2.5 How many different units of measure are used?
1.2.6 Are kits, bulk stock, phantoms, or non-stock items used? If so, they will require special
definition as stocking types?




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Functional Requirements Document

1.2.7 Do you maintain Items at company level?
1.2.8 How do you maintain if single item has different attributes

1.3 Bill of Materials (BOM)

1.3.1 Do you manage bills of materials for finished goods?
1.3.2 Are your bills single-level, or are there multiple levels?
1.3.3 Are they date-effective?
1.3.4 Do you have multiple bill of materials (BOM) versions?
1.3.5 Do you store scrap within the BOM?
1.3.6 Do you have multiple versions of each BOM?
1.3.7 Are subcontracted services built into the BOM?
1.3.8 Should the purchase order for these services be automatically generated by the BOM?
1.3.9 Do you have phantom BOMs?
1.3.10 Are BOMs quantities dependent?
1.3.11 Which users should have access to update or create BOMs?
1.3.12 Who should be allowed to activate and/or approve BOMs?
1.3.13 Should the items configuration drive the BOM?
1.3.14 Will configurable BOMs be entered on sales orders?
1.3.15 Do you track constant and/or variable scrap on the BOM?
1.3.16 Is a scrap rate built into the BOM?
1.3.17 Do you have any BOMs that do not require production orders? For example, BOM items that
do not require a route, operations, or a scheduling run.

1.4 Operations and Routes

1.4.1 Which tasks or activities must be completed during production?
1.4.2 What is the order of the processes and what are the priorities?
1.4.3 Which operations are prerequisite to one another?
1.4.4 Do any operations run simultaneously within a given route?
1.4.5 For each activity (operation), what is the queue time and run time per quantity?
1.4.6 Should the items configuration drive the route for that items production?
1.4.7 How should routes be numbered?
1.4.8 Who has permission to create and/or approve routes?
1.4.9 Are multiple versions of a route used?
1.4.10 Do you ever copy routes?
1.4.11 How are costs categorized for items?
1.4.12 How are run times categorized for items?
1.4.13 Should operations automatically consume the setup and run times and report a quantity as
finished?




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Functional Requirements Document

1.4.14 How is scrap calculated?

1.5 Reporting Requirements

1.5.1 What item statistics are tracked?
1.5.2 Do you report on scrap?
1.5.3 Do you report on route and/or operation efficiency?
1.5.4 (2012): What information should be shown on your home page of Microsoft Dynamics AX?






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Functional Requirements Document

2. Materials Manager
2.1 Demand Planning

2.1.1 What types of forecasts do you use?
2.1.2 Which algorithms do you use to generate the forecasts?
2.1.3 Are your statistical forecasts qualitative or quantitative?
2.1.4 How do you forecast for a new product with no sales history?
2.1.5 What hierarchies should be used for products?
2.1.6 Which market hierarchies should be used? (e.g. city, country, customer)
2.1.7 What are your time hierarchies? (time horizons)
2.1.8 Which attributes will be used to define the product and market planners, such as item group
or customer group?
2.1.9 How should the views be aggregated or disaggregated?
2.1.10 What kinds of indicators and warnings should be set up?
2.1.11 Which data elements are essential for data analysis and the demand planning process?
2.1.12 Do you share your forecasts with your vendors?
2.1.13 Do your customers share their forecasts with you?

2.2 Order Promising

2.2.1 Should inventory quantities be reserved for specific customers or orders?
2.2.2 What happens when there is a shortage of items?
2.2.3 How are ABC codes determined? This will be defined as a branch/plant constant.
2.2.4 Are certain locations of inventory considered on hold or not available for general use? If so,
lot status codes or special locations could be utilized.
2.2.5 Are items reserved at the serial or batch level?
2.2.6 Should the reservations happen automatically, manually, or according to the master planning
item coverage setup?
2.2.7 How should reservations be viewed?
2.2.8 What is the process for canceling reservations?
2.2.9 Should the system allow reservations to be changed in batches?

2.3 Quality Management

2.3.1 (2012): What tests do you perform on items for quality management?
2.3.2 (2012): How do you determine which items or orders should be put through testing (sampling
plan)?
2.3.3 (2012): Should the system automatically send items or orders to testing?
2.3.4 (2012): Will items ever be manually selected for testing?
2.3.5 (2012): Do test results have a pass/fail result or is there a grading process?




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Functional Requirements Document

2.3.6 (2012): What testing instruments are used?
2.3.7 (2012): How can tests be grouped?
2.3.8 (2012): Do you track the time/labor cost for performing tests?
2.3.9 (2012): Do you track the physical locations of where testing is performed?
2.3.10 (2012): Do qualitative tests have variables such as color?
2.3.11 (2012): Are any of the tests destructive?
2.3.12 (2012): Are items with similar characteristics (such as color or size) grouped for testing
purposes?
2.3.13 (2012): What happens when an item fails a test?
2.3.14 (2012): How can problems be grouped as Problem Types?
2.3.15 (2012): Which diagnostic actions are used to correct non-conformances?
2.3.16 (2012): Do you want to set up operations (production module) to process or resolve non-
conformances?
2.3.17 (2012): Should miscellaneous charges be applied when a user performs activities or
operations related to non-conformance?
2.3.18 (2012): Will items be sent through particular quarantine zones?
2.3.19 (2012): Should non-conforming items be physically tagged with a label?
2.3.20 (2012): Do you run non-conformance reports?
2.3.21 (2012): Do you run reports on correction actions?
2.3.22 (2012): Do you use certificates of analysis?

2.4 Reporting Requirements

2.4.1 What product groupings or categories are needed for reporting and analysis purposes?
Consider management, sales, inventory, and purchasing requirements.
2.4.2 What information should be shown when you log in to Microsoft Dynamics AX?
2.4.3 (2012): What information should be shown on your home page of Microsoft Dynamics AX?







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Functional Requirements Document

3. Sales and Marketing Executive
3.1 Marketing Processes

3.1.1 Do you purchase marketing lists from a list broker (for example, Hoovers or Dunn and
Bradstreet)?
3.1.2 If yes, should those lists be automatically uploaded into Microsoft Dynamics AX?
3.1.3 How do you categorize your marketing leads?
3.1.4 Do you run print campaigns?
3.1.5 Email campaigns?
3.1.6 Does your organization manage internal telemarketing efforts?
3.1.7 If yes, how are those efforts distributed among the team?
3.1.8 Should marketing activities such as phone calls and appointments be tracked in Microsoft
Outlook?
3.1.9 Should marketing documents be stored in Microsoft Dynamics AX?

3.2 Sales Activities

3.2.1 What are your sales channels? (E.g. retail, wholesale, Internet, etc.)
3.2.2 Who are your key customers within each channel?
3.2.3 How is your customer master structured?
3.2.4 Do you create separate accounts for different addresses?
3.2.5 How many active customers do you have per channel?
3.2.6 Do you offer all your products to all the channels?
3.2.7 Do you use any web portals to communicate with your customers? If yes, what information do
you share?
3.2.8 Do you use sales quotations?
3.2.9 Should sales activities such as phone calls and appointments be tracked in Microsoft
Outlook?

3.3 Sales Order Processing

3.3.1 How many different order types are used? (E.g. sales orders, quotes, blanket orders, etc.)
3.3.2 How many orders do you capture through these methods per day/week/month?
3.3.3 Are orders received by mail, phone, batch files, or electronic data interchange (EDI)?
3.3.4 (2012): Is there a centralized process for orders?
3.3.5 If you have EDI orders, how many EDI partners do you have? How many EDI documents do
you have? How frequently do you communicate using EDI? How do you process the
payments?
3.3.6 What is the number sequence for your sales orders?
3.3.7 Do you have different numbering schemes for the different types of orders?




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Functional Requirements Document

3.3.8 Do you have blanket orders (contracts) with your customers?
3.3.9 Do you track release orders (actual sales orders) against the blanket orders?
3.3.10 Can your system map the delivered and invoiced quantities for release orders against the
blanket order?
3.3.11 Do sales order or purchase orders need to show the customer or vendor part numbers? Are
substitutes allowed?
3.3.12 Do your customers often repeat orders?
3.3.13 Do you copy your existing sales orders to create new ones?
3.3.14 Do you have guidelines for minimum, multiple, or maximum sales order quantities?
3.3.15 Are most orders taken for an item of the same quantity?
3.3.16 Do you define minimum, multiple, maximum, and standard sales quantities at item level?
3.3.17 Can your system automatically check and correct the sales order quantities during order
capture?
3.3.18 Do you stock and sell items in different units of measure?
3.3.19 Do you have a different unit of measure conversion factor for different sold items? For
example, Item A (1 Box = 10 pcs), Item B (1 Box = 15 pcs)
3.3.20 Do you use different units of measure for different sales orders for the same item? For
example, feet vs. yards
3.3.21 Can your system automatically convert the unit sales price based on sales unit of measure?
3.3.22 Do users typically enter transactions against one warehouse?
3.3.23 Can the method of transport (MOT) be set up as a default or does it need to be entered
manually at the time of order entry?
3.3.24 Are customers invoiced on different cycles (e.g., daily, weekly, monthly)? Does the cycle also
depend on the item sold?
3.3.25 Do certain items/customers require different processing steps than the normal order flow? For
example, an approval if a certain item is sold.
3.3.26 For certain items, do different customers/items require grade, potency or expiration date
processing?
3.3.27 How do sales order personnel search for an item?
3.3.28 Are item substitutes used?
3.3.29 Do you note down special internal or external instructions?
3.3.30 Do you have under/over delivery limits?
3.3.31 Do you need to print text information or special messages on an order? Where should this
text print?
3.3.32 How many different order-related dates are required?
3.3.33 Are certain customers restricted from ordering specific items (item restrictions)?
3.3.34 Do some of your customers request that the same items/quantities be delivered on a regular
basis? What invoice cycles are used? (e.g., Daily, Weekly, Monthly, etc.)




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Functional Requirements Document

3.3.35 Which forms do you use to communicate with your customer? (quotation, confirmation,
packing list, invoice)
3.3.36 If you quote to customers, do you need to convert that quote into a sales order?
3.3.37 How do you send the forms (for example, by e-mail, fax, etc.)?
3.3.38 Are invoice proofs run?
3.3.39 Are invoices printed in a centralized location or decentralized (each warehouse, corporate
office. etc)?
3.3.40 Are invoices sent to the customer or parent company?
3.3.41 Do you use Periodic Invoicing?
3.3.42 Should the customer's part number (customer item number) be displayed on the invoice?
3.3.43 Do you create payment journals to process payments against the invoices?
3.3.44 Do you settle the invoices against payments?
3.3.45 How are invoices numbered?
3.3.46 Do you include multiple sales orders on a summary invoice?
3.3.47 Are these orders required to have common characteristics before they can be summarized?
Example: same contact person or the same method of payment.
3.3.48 Are chargeback invoices used? How are they numbered?
3.3.49 What other critical information should be displayed on the invoice?
3.3.50 What is your average lead time from order receipt to delivery?
3.3.51 How do you reserve inventory against the sales order?
3.3.52 Is this automatic or manual?
3.3.53 Can you categorize your inventory in allocated/reserved versus available inventory?
3.3.54 What are the parameters you consider (for example, ship date, priority, etc.)?
3.3.55 Do you change your reservations frequently?
3.3.56 Do you peg your supply against the demand?
3.3.57 How firm is the pegging?
3.3.58 Do you track releases against the contracts?
3.3.59 What are your terms of payment?
3.3.60 Are special accounts used for chargeback?
3.3.61 Are multiple currencies used? If so, please list currencies.
3.3.62 Are credit memos used?
3.3.63 Are special statement forms used?
3.3.64 Do you ship goods to multiple delivery addresses at your customer sites?
3.3.65 Do you maintain these delivery addresses in your system?
3.3.66 Can you easily transfer alternate delivery addresses to your sales orders?
3.3.67 Can your system easily convert a quotation to a sales order?
3.3.68 (2012): What approval processes are in place for capturing and processing an order?

3.4 Shipping and Delivery




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Functional Requirements Document


3.4.1 Do you generate picking lists to pick goods from the warehouse for shipments?
3.4.2 Do you automatically generate picking lists based on the latest sales order update?
3.4.3 Do you generate packing slips to ship goods from the warehouse to customers?
3.4.4 (2012): Do you post sales order invoices based on a packing slip or a selection of packing
slips and/or ship date?
3.4.5 (2012): Do you summarize sales order invoices based on the packing slip number?
3.4.6 Do you automatically generate invoices to charge your customers for the delivered goods?
3.4.7 Are your invoices based on the latest sales order and shipping information?
3.4.8 Do you put external shipping notes on your sales documentation?
3.4.9 Do you have internal shipping notes?
3.4.10 Are these external and internal shipping notes maintained in a separate system?
3.4.11 Do you have multiple delivery dates on a given sales order?
3.4.12 Do you create sales order lines with different delivery dates for the same item in the same
sales order?
3.4.13 Can your system capture different due dates for different sales order lines within the same
sales order?
3.4.14 Do you put external shipping notes on your sales documentation specific to sales order lines?
3.4.15 Do you have internal shipping notes specific to sales order lines?
3.4.16 Can you currently access the sales order line level external and internal shipping notes in
your system?
3.4.17 Do you deliver goods from multiple warehouses for a given sales order?
3.4.18 Do you create sales order lines with different warehouses for the same item in the same sales
order?
3.4.19 Can your system capture different delivery warehouses at the sales order line level within the
same sales order?
3.4.20 Do you have partial shipments to your customers?
3.4.21 Do you enable partial shipments at the sales order line level?
3.4.22 Can your system capture different shipping modes (full/partial) at the sales order line level?
3.4.23 (2012): Are the pick/pack/ship processes decentralized by site groupings?

3.5 Customer Master Setup

3.5.1 How many customers do you have?
3.5.2 How are customer numbers assigned?
3.5.3 Do you have parent/child relationships in accounts receivable?
3.5.4 What are your internal procedures for adding or changing customers?
3.5.5 Are credit limits used?
3.5.6 What is the process for approving credit for your customers?
3.5.7 (2012): Is this a formal process that needs to be structured in a formal workflow of approvals?




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3.5.8 Do you periodically review your clients credit status?
3.5.9 What types of order hold checking are done at sales order entry? (Credit checks)
3.5.10 When is credit checking performed? (For example, at capture, shipment, etc.)
3.5.11 How are limits defined? (Credit limit, open orders, etc.)
3.5.12 What department would typically release orders from being held?
3.5.13 Do you have collection process?
3.5.14 Do you charge interest for past-due invoices?
3.5.15 Do you have charge-back handling process?
3.5.16 Do you have payment schedules?

3.6 Customer Pricing/Discounting and Miscellaneous Charges

3.6.1 Describe item pricing methods used for sales. Are there quantity discounts? Do certain
groups of items get priced differently (e.g. items in a specific catalog)? Do certain customer
types get preferred pricing? Do prices vary by period of time? How are future price increases
handled?
3.6.2 At what level are prices maintained (for example, Item Master, Customer Level, etc)?
3.6.3 Do your sales prices change for different customer or group of customers?
3.6.4 Do you have sales price agreements with your customers for certain items?
3.6.5 Do your sales price agreements change by date, sales volume, or currency?
3.6.6 Can your system automatically apply the right sales price or discount based on sales price
agreements during order capture?
3.6.7 Do you offer different discount levels for different customer groups?
3.6.8 Do you have discount agreements with your customers for certain sold items?
3.6.9 Will configuration pricing be required? Size, Color, etc?
3.6.10 Will pricing depend on the customers Line of Business?
3.6.11 Do you offer special pricing/discounting to your customers per sales order?
3.6.12 Do you have freight, installation, handling, or other miscellaneous charges applied on a sales
order line?
3.6.13 Can you itemize and track these miscellaneous charges at the sales order line level?
3.6.14 Can you model fixed, percentage, or piece based miscellaneous charges at sales order line
level?
3.6.15 Do you apply these sales order line level miscellaneous charges automatically?
3.6.16 Do you pay royalties?
3.6.17 Do you have cash discounts?
3.6.18 Do you define multiple cash discounts and attach them to different customers?
3.6.19 Do you automatically apply cash discounts to sales orders based on customers?

3.7 Sales Representatives





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3.7.1 How is your sales organization structured?
3.7.2 How many sales people do you have?
3.7.3 Are they internal or external sales people?
3.7.4 How many customer service representatives do you have?
3.7.5 Do you have EDI processing personnel?
3.7.6 Do you use any web portals to communicate with your sales representatives? If yes, what
information do you share?

3.8 Commissions

3.8.1 Do you pay commissions to your sales people?
3.8.2 Are commissions paid by sales groups?
3.8.3 Do you offer special commissions by item groups?
3.8.4 Do you pay commissions based on invoice amount or margin?
3.8.5 Do you distribute the commission on a sales order among multiple sales people?
3.8.6 What criteria determine how commissions should be calculated?
3.8.7 Are commissions item-based or customer-based?
3.8.8 Are commissions calculated at the line or order level?
3.8.9 How many sales persons can receive a commission on order?
3.8.10 Do you make manual commission adjustments to orders?

3.9 Web Access

3.9.1 Should your customers have access to their information via the Web?
3.9.2 Should they be able to update that information?
3.9.3 Should your sales representatives have access to Microsoft Dynamics AX via the Web?
3.9.4 What information is critical for them to view and/or update via the Web?

3.10 Reporting Requirements

3.10.1 What information is needed on sales analysis reports?
3.10.2 Is there a daily report summarizing all invoices generated today?
3.10.3 How are items and customers categorized for reporting purposes?
3.10.4 How are open sales orders or backlog reported?
3.10.5 Who reviews the backorders report?
3.10.6 (2012): What information should be shown on your home page of Microsoft Dynamics AX?







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Functional Requirements Document

4. Production Planner
4.1 Master Planning

4.1.1 How are items currently being planned today (for example, minimum and maximums,
manually)?
4.1.2 Are lead times currently being maintained for the following items: Purchased Items,
Outsourcing Items?
4.1.3 Does your organization currently operate in a Master Production Schedule (MPS), and
Material Requirements Planning (MRP) environment?
4.1.4 (2012): What is the approval or workflow process for making changes to the master
production schedule?
4.1.5 Does your organization have unique planning requirements for individual items?
4.1.6 Is the Available to Promise procedure currently being practiced?
4.1.7 Does your organization currently maintain a Planning Time Fence? If so, how many days in
the future are being maintained?
4.1.8 Does your organization currently maintain an Accumulative Time Fence? If so, how many
days in the future are being maintained?
4.1.9 Does your organization practice Frozen Time Fence techniques? If so, how many days
within the Planning Time Fence are allocated?
4.1.10 Does your organization maintain multiple planning methods? As an example, simulation and
production.
4.1.11 How accurate are the lead times for a purchased item?
4.1.12 How accurate are the routings, and is run time, and setup time part of the lead time
calculation?
4.1.13 How often are planned production and purchase orders maintained and released?
4.1.14 How many planning calendars does the organization currently maintain?
4.1.15 What are the current capacity and efficiency ratios for work centers?
4.1.16 Do you wish to limit scheduling of operations or jobs to the actual capacity available on the
work center?
4.1.17 Are any work centers used exclusively for a particular operation?
4.1.18 Do you frequently use Gantt charts to review upcoming work vs. current capacity on the shop
floor?
4.1.19 What types of orders should be taken into consideration when planning? (E.g. quotations,
Project orders, etc.)
4.1.20 Are Standard Order Quantities currently being used?
4.1.21 Are the people assigned to maintain and operate formal planning systems APICS certified or
APICS literate?
4.1.22 (2012): Do you plan your production across multiple sites?
4.1.23 (2012): Does each site have its own set of planning parameters?




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4.2 Demand Forecasting

4.2.1 Does your organization currently maintain a Sales Forecast?
4.2.2 How do you generate the forecast?
4.2.3 Do you receive forecasts via EDI messages?
4.2.4 What forecasting techniques are currently being utilized?
4.2.5 Does the organization allow the forecast to be consumed by actual orders? If so, what
technique is being utilized?
4.2.6 (2012): What approval processes should be in place for managing and approving the
forecasts?

4.3 Reporting Requirements

4.3.1 Which reports are used for planning
4.3.2 Do you have reports that show upcoming capacity for production units?
4.3.3 Do you review reports of human resource capacity on the shop floor (e.g. available labor
hours)?
4.3.4 Which reports are used for forecasting?
4.3.5 (2012): What information should be shown on your home page of Microsoft Dynamics AX?







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5. Purchasing Manager
5.1 Procurement Management

5.1.1 How is your procurement organization structured?
5.1.2 How many purchasing people do you have? Do you have EDI processing personnel?
5.1.3 What payment terms are used?
5.1.4 What steps are currently involved in closing an accounts payable period?
5.1.5 Will items be purchased in a foreign currency?
5.1.6 Will lot processing be used?
5.1.7 Do you use vendor item numbers in your external documentation?
5.1.8 Can you map your item numbers against the vendor item numbers in your system?
5.1.9 How are orders transmitted to vendors?
5.1.10 Describe item costing methods for purchasing (i.e. Standard, FIFO, Weighted Average)
5.1.11 What costs are maintained for an item? What costing method is used for inventory and cost of
goods sold? What cost is entered on a purchase order
5.1.12 (2012): Do you have preferred or approved suppliers based on the combination of
item/warehouse/site?
5.1.13 (2012): Do you require purchase requisition forms for new purchases?
5.1.14 (2012): If you use purchase requisitions, what are the guidelines for approvals and amounts
of the purchases?
5.1.15 (2012): Should a purchase requisition be automatically converted to a purchase order when
approved?
5.1.16 (2012): Should employees be able to enter purchase requisitions over the Web?

5.2 Purchase Order Processing

5.2.1 What is a typical purchase order?
5.2.2 How many different order types are used? Examples are: standard orders, blanket orders,
subscription orders, etc.
5.2.3 (2012): Do you send out requests for quotations (RFQs) to your vendors?
5.2.4 (2012): How is the RFQ process structured? Who makes the final decision for purchasing?
5.2.5 If you use blanket orders, do you track release orders (actual purchase orders) against the
blanket orders?
5.2.6 Can your system map the received and invoiced quantities for release orders against the
blanket order?
5.2.7 Does your production system recognize the correct supply at the correct time for Blanket
Purchase Order releases?
5.2.8 When are printed purchase orders generated?
5.2.9 What information should print on a purchase order? (internal or external notes/instructions)
Should vendor's part number be printed?




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5.2.10 Do you include multiple purchase orders on a summary invoice?
5.2.11 Are these orders required to have common characteristics before they can be summarized?
Example: same contact person or the same method of payment.
5.2.12 How are vouchers numbered?
5.2.13 How are vouchers and manual payments entered?
5.2.14 Are alternate payees used?
5.2.15 Do you require batch approval for posting?
5.2.16 When are batches posted to the general ledger?
5.2.17 Are you restricted from ordering certain items from a specific vendor?
5.2.18 Do Items typically enter transactions against one warehouse? If so, default locations?
5.2.19 Does each warehouse generate its own purchase orders, or is there a centralized purchasing
function?
5.2.20 How do purchase order personnel search for an item?
5.2.21 Do you often create repeat orders for your vendors?
5.2.22 Do you copy your existing purchase orders to create new ones?
5.2.23 Do you have guidelines for minimum, multiple, or maximum purchase order quantities? Are
these at the item level?
5.2.24 Do you default to a standard purchase order quantity?
5.2.25 Should the system automatically check and correct the purchase order quantities during order
placement?
5.2.26 Do you purchase and stock items in different units of measure?
5.2.27 Do you have a different unit of measure conversion factor for different purchased items? For
example, Item A (1 Box = 10 pcs), Item B (1 Box = 15 pcs)
5.2.28 Do you use different units of measure for different purchase orders for the same item?
5.2.29 Should the system automatically convert the unit purchase price based on purchase unit of
measure?
5.2.30 Are landed costs included in inventory?
5.2.31 Do you have approval steps for purchase orders?
5.2.32 Do individuals have limits on the amounts they can approve? If so, what are the approval
limits?
5.2.33 Are purchase orders processed by your organization subject to tax? What type of tax(es)?
5.2.34 Do you remit tax on the amount before or after discount? Do you take the discount on the
invoice amount before or including taxes?
5.2.35 If you will be remitting use or VAT taxes, what tax areas (jurisdictions) will you be subject to?
5.2.36 Do you track non-inventory items for analysis?
5.2.37 What is the procedure for changing a purchase order? How is the vendor notified of changes?
5.2.38 If you use EDI with vendors, how do you process it?
5.2.39 How many EDI partners do you have?
5.2.40 How many EDI documents do you have?




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5.2.41 How frequently do you communicate using EDI?
5.2.42 (2012): Is there an approval process in place for purchase order processing?

5.3 Receiving of Goods

5.3.1 Do you receive goods from your vendors to multiple receiving locations?
5.3.2 Do you maintain the receiving location addresses in your system?
5.3.3 Can you easily transfer alternate receiving addresses to your purchase orders?
5.3.4 Do you put external receiving notes on your purchase documentation?
5.3.5 Do you have internal receiving notes?
5.3.6 Are these external and internal receiving notes maintained in a stand-alone system?
5.3.7 Does the inspection or quality-assurance process need to be completed before receiving the
goods in the system?
5.3.8 Do you have multiple delivery dates on a given purchase order?
5.3.9 Do you create purchase order lines with different delivery dates for the same item in the same
purchase order?
5.3.10 Can your system place different due dates for different purchase order lines within the same
purchase order?
5.3.11 Do you create purchase order lines with different warehouses for the same purchased item in
the same purchase order?
5.3.12 Do you allow partial receiving from your vendors? If yes, Do you have any guidelines to define
the over and under delivery variance?
5.3.13 Can your system capture different receiving modes (full/partial) at the purchase order line
level?
5.3.14 Do you print a copy of the Purchase Order for receiving?
5.3.15 Do you reprint the entire Purchase Order for receiving if there are any changes to the
Purchase Order?
5.3.16 Do your vendors provide packing slips with their deliveries?
5.3.17 Can you use the vendor's Packing Slip to receive goods into your inventory?
5.3.18 (2012): Do you post purchase order invoices based on a packing slip or a selection of packing
slips, and/or ship date?
5.3.19 Do you return received goods to your vendors?
5.3.20 Do you have a returned item process for your vendors?
5.3.21 Can your system map the returned item against the original purchase order and create the
necessary physical and financial adjustments?
5.3.22 Does the receiving department use a document showing expected deliveries?
5.3.23 Are backordered sales orders released during the receipt process when sufficient quantity
has been received?
5.3.24 (2012): do you have deadlines for receipt of goods that are tied to the time zones of the
receiving warehouse?




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Functional Requirements Document


5.4 Vendor Pricing/Discounting and Miscellaneous Charges

5.4.1 How are vendor pricing rules established?
5.4.2 Do you have purchase price agreements with your vendors for certain items?
5.4.3 Do vendors offer special pricing per purchase order?
5.4.4 Do your purchase price agreements change by date, purchase volume, currency, or
branch/location?
5.4.5 Should the system automatically apply the right purchase price based on purchase price
agreements during order placement?
5.4.6 Does your system let you override the purchase price and discounts during order capture?
5.4.7 Are there quantity discounts? Do prices vary by period of time or vendor?
5.4.8 Do you receive cash discounts from your vendors?
5.4.9 Do you define multiple cash discounts and attach them to different vendors?
5.4.10 Can you automatically apply the cash discounts to purchase orders based on vendors?
5.4.11 Do you have freight, installation, handling, or other miscellaneous charges applied on a
purchase order?
5.4.12 Can you itemize and track these miscellaneous charges?
5.4.13 Can you model fixed or percentage based miscellaneous charges?
5.4.14 Do you apply these miscellaneous charges to the purchase orders automatically?
5.4.15 (2012): Do you add or change miscellaneous charges during the purchase order invoicing
process?

5.5 Vendor Management

5.5.1 How is your vendor master record structured?
5.5.2 What is the vendor numbering structure?
5.5.3 How do you classify your vendors?
5.5.4 Who are your key vendors under each category?
5.5.5 What is your sourcing strategy? (Single/dual sourcing, few/many vendors, etc.)
5.5.6 How many active vendors do you have per vendor type?
5.5.7 What procedures are used for adding or changing suppliers?
5.5.8 Do you have parent/child relationships in accounts payable?
5.5.9 Will item substitutions by vendor be required?
5.5.10 Do vendors have their own item numbers?

5.6 Web Access

5.6.1 Should vendors be allowed to update information via the Web?
5.6.2 Should vendors be allowed to upload shipping data and invoices via the Web?




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Functional Requirements Document


5.7 Reporting Requirements

5.7.1 What transaction reporting is needed?
5.7.2 How are open purchase orders inquired on? How many versions (different order types) of
purchase order entry need their own version of open order inquiry?
5.7.3 How many different types of purchasing open order reports are used? Are reports sequenced
by warehouse, purchase order number, vendor, or item? What information needs to be
displayed on these reports?
5.7.4 Are reports printed showing items which have been received today? Which department
should review this report?
5.7.5 (2012): What information should be shown on your home page of Microsoft Dynamics AX?






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Functional Requirements Document

6. Production Manager
6.1 Manufacturing Structure

6.1.1 What type of manufacturing environment does your organization operate in? How is it
structured?
6.1.2 (2012): Do you produce goods in multiple sites?
6.1.3 (2012): Do the sites replenish inventory to/from one another?
6.1.4 How many production management people do you have?
6.1.5 How many production people do you have? Are they internal or external people? How many
shifts do you operate? How many people do you have by area/work center?
6.1.6 Does your organization currently maintain routings and operations? If so, how many routing
and operations are currently being maintained?
6.1.7 Does your organization currently maintain work centers? If so, how many?
6.1.8 If you use multiple work centers, which tasks or activities belong to each?
6.1.9 How are the work centers grouped?
6.1.10 How are they related?

6.2 Job Scheduling and Sequencing

6.2.1 Is capacity planning currently being utilized?
6.2.2 What type of capacity planning is being used finite or infinite?
6.2.3 How many production calendars are currently being utilized?
6.2.4 Are sub-contract operations part of the manufacturing process?
6.2.5 What type of production scheduling is currently being used?
6.2.6 How are unplanned releases handled in the operation?
6.2.7 Are alternate routing or operations currently being used in the production process?
6.2.8 Are item numbers assigned to individual operations?
6.2.9 How are the following manufacturing times captured: Queue Time, Setup Time, Run Time,
Transit Time

6.3 Shop Floor Management

6.3.1 Are processing documents currently being maintained at the routing or work center level?
6.3.2 How accurate are the production routings? As an example 80%, 90%, and how are these
measurements captured?
6.3.3 How do you manage routings for finished goods?
6.3.4 Are your routings date-effective?
6.3.5 Do you have multiple route versions?
6.3.6 Do you have many to many relationships?
6.3.7 Do you store scrap within route?




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Functional Requirements Document

6.3.8 Do you have multiple operations?
6.3.9 What kind of operation times do you capture? (Setup time, process time, etc.)
6.3.10 How do you manage your work centers?
6.3.11 Are they grouped under work center groups?
6.3.12 How do you share work center capacity across production orders?
6.3.13 Are the production personnel educated and trained in APICS methods and standards?

6.4 Production Order Management

6.4.1 How are production orders being created; through MRP or manually?
6.4.2 What stages does a production order go through? (estimation, scheduling, release, start,
report as finished, costing)
6.4.3 How do you group your production orders?
6.4.4 How do you track the status of the production orders?
6.4.5 How do you report the material consumption for a production order?
6.4.6 Is it a standard process to modify the production order bill of material or routing in the
production process?
6.4.7 How are production orders being reported? (For example,, by operation or at completion of
the unit)
6.4.8 How do you report the labor consumption for a production order?
6.4.9 What type of inventory relief is currently being utilized? (For example, manual picks, pre-
flushing or back flushing)
6.4.10 Are standard lot sizes or random quantities currently applied to production orders
6.4.11 Is scrap reported at the operation level?
6.4.12 Does component reservation take place at the start or end of an operation or production
order?
6.4.13 Are production orders currently being tracked to a sales order or upper level processes?

6.5 Reporting Requirements

6.5.1 How is production cost captured? As an example, at the routing or work center level
6.5.2 (2012): What information should be shown on your home page of Microsoft Dynamics AX?







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Functional Requirements Document

7. Warehouse Manager
7.1 Warehouse Management

7.1.1 How many warehouses do you have? How do you classify your warehouses? (e.g. FG, WIP,
RM)
7.1.2 How do you track your items? (e.g. warehouse, location, pallet ID, serial number, batch
number) Do you have store areas or zones?
7.1.3 How is your logistics structure organized?
7.1.4 How many people work in the logistics department? In the warehouse? Do you run multiple
shifts?
7.1.5 How are locations numbered or named?
7.1.6 How are locations laid out in the warehouse?
7.1.7 Are primary and secondary locations used for an item? Describe inventory processing as it
relates to primary location versus secondary. Does part information such as costs, reporting
codes, price, etc., remain constant over multiple locations? Are costs and prices to be
maintained at the item level, item branch, or item/branch/location level?
7.1.8 Which locations are valid for putaway, picking and replenishment? Which should be excluded
from these functions?
7.1.9 What is the maximum number of items allowed within a location? Are receipt dates or lots
allowed to be mixed within a warehouse location?
7.1.10 Are fixed putaway locations used?
7.1.11 Should locations automatically prohibit further putaway until picked empty?
7.1.12 Which locations should be used if there is an overflow during putaway?
7.1.13 Is there a need to limit the quantity of an item putaway in zones?
7.1.14 Are containers used for storage in the warehouse?
7.1.15 How are part numbers assigned. Is significant or non-significant numbering used?
7.1.16 Is lot processing used? If so, how are lot numbers assigned? How are lot numbers allocated?
Are there lot expiration considerations? Do you want to do advanced lot control? Do you need
to track the grade or potency of an item?
7.1.17 Are incoming or outgoing serial numbers tracked?
7.1.18 Do you issue inventory in less than total quantities? If yes, then consider quantity decimal
conversion.
7.1.19 What printed information is needed for item masters?
7.1.20 What units of measure are used by each item within a warehouse?
7.1.21 Do you require items to be stocked with the measurements for length, width, and height of
locations? Does weight come into play when stocking an item?
7.1.22 How many Sales Order and Purchase Order document types will be used? Picking Lists?
Receiving Lists?




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Functional Requirements Document

7.1.23 Which printers will be used for printing warehouse documents? Do you use specific printers
for specific documents?
7.1.24 Should a print message appear on a move slip for specific instructions on how to pack an
item?
7.1.25 If in a multiple warehouse environment, can certain inventory items default to certain
warehouses?
7.1.26 (2012): How do you monitor the expected arrival of inbound shipments?

7.2 Devices and Equipment

7.2.1 Are barcode scanners used in the warehouse?
7.2.2 Do you have any wireless devices?
7.2.2.1 Are they Windows Embedded Compact (Windows CE) compliant?
7.2.2.2 How many radio frequency (RF) devices do you have per area?
7.2.3 Do you use RFID?
7.2.4 Do you use forklifts in the warehouse? How many?

7.3 Process Flows

7.3.1 Describe the reservation process as it relates to the warehouse.
7.3.2 (2012): Do you use a reservation sequence to determine which warehouse an item is
reserved from first?
7.3.3 How do you receive items? (For example, against the purchase order, ASN?)
7.3.4 Do you have an inbound inspection process?
7.3.5 Do you have a quarantine warehouse for inspection and/or quality assurance?
7.3.6 How do you put away the received items?
7.3.7 How do you issue goods to production? Is it user-driven or system-driven?
7.3.8 Do you have back-flushing or manual data entry?
7.3.9 How do you receive finished goods from production? Is it user-driven or system-driven?
7.3.10 How do you transfer items across warehouses? Is it user-driven or system-driven?
7.3.11 How do you replenish picking locations from storage locations? Is it user-driven or system-
driven?
7.3.12 How do you pick goods for shipment?
7.3.13 (2012): Do you ever consolidate orders for picking?
7.3.14 How do you generate the picking list?
7.3.15 Do you optimize your picking process?
7.3.16 How do you pack goods for shipment? What kind of documentation do you generate? (E.g.
shipping labels, packing slip, bill of lading, etc.)
7.3.17 (2012): What rules should be applied to the outbound shipping process?
7.3.18 How do you route your shipments? Do you shop rates?




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Functional Requirements Document

7.3.19 (2012): Do you wish to integrate Microsoft Dynamics AX with your shipping carriers software?
7.3.20 How do you ship goods?
7.3.21 (2012): Are there any formal approval processes in place for the receipt or shipment of items?

7.4 Channel Allocation Management

7.4.1 What are the key reports now in use for managing inventory levels, inventory activity, and
determining availability for customers?
7.4.2 Will requests be generated as Sales Orders are entered or in batch as the Sales Orders are
ready to ship
7.4.3 Do you have ABC classification?
7.4.4 How do you currently handle warehouse requests for stock movements?

7.5 Performance Monitoring

7.5.1 How do inventory control or stockroom personnel search for an item? Item cross reference
information and item descriptions will be available for item search.
7.5.2 Will a cycle counting program be used? How are cycles identified and what will be the count
frequency? Is it user-driven or system-driven?
7.5.3 Will a periodic physical inventory be used?
7.5.4 What reports are used to reconcile to the General Ledger?
7.5.5 How many levels of detail are needed to analyze utilization?
7.5.6 At what granularity do you track item movement?
7.5.7 Are there sequential paths that are used in the warehouse for maximum efficiency in putaway,
picking, and replenishment?
7.5.8 What characteristics can be applied to locations for use by random rules?
7.5.9 Are different items allowed to be mixed within a location? Are specific items allowed to be
mixed with other items?
7.5.10 What method is used to determine picking locations; fixed or random?

7.6 Reporting Requirements

7.6.1 What inquiries or reports are needed for warehouse management?
7.6.2 (2012): What information should be shown on your home page of Microsoft Dynamics AX?