Purchasing
The primary responsibility of purchasing is to provide your company with goods and services from suppliers. This task requires following activities: Determine material requirements in operations planning Process purchase requisitions, requests for quotati
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Purchasing
The primary responsibility of purchasing is to provide your company with goods and services from suppliers. This task requires following activities: ¾ Determine material requirements in operations planning ¾ Process purchase requisitions, requests for quotations and purchase orders ¾ Post item arrivals and purchase invoices
3.1
Business Processes in Purchasing
Before we start to go into details, the lines below give an overview of business processes in purchasing.
3.1.1
Basic Approach
Starting point for procurement are correct master data, especially vendor and product data. Instead of products, alternatively choose procurement categories for purchasing services or non-inventoried commodities.
3.1.1.1 Master Data and Transactions in Purchasing As for all master data, vendor and product records (item records) are usually entered once and do not change frequently. In the course of purchase processing, master data are copied to transaction data. Planning records and purchase orders therefore retrieve defaults from item and vendor data. You may modify these default data in transactions, for example if you agree on different payment terms in a specific purchase order. Changing data in a transaction does not change related master data. If you generally agree to change the payment terms with a particular vendor for example, you have to update the payment terms in the vendor record therefore. Starting from correct master data, we may split the purchasing business process into six steps as shown in Figure 3-1.
Figure 3-1:
Purchase order processing in Dynamics AX
A. Luszczak, Using Microsoft Dynamics AX 2012, DOI 10.1007/978-3-658-08295-6_3, © Springer Fachmedien Wiesbaden 2015
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3 Purchasing
3.1.1.2 Material Requirements, Purchase Requisition and Request for Quotation The identification of material requirements usually is the first step in the purchasing process. Depending on the particular product and the preconditions in the company, there are two different ways for processing material requirements: ¾ Automatically – Generating planned orders ¾ Manually – Entering purchase requisitions The basis for generating planned orders within operations planning (master scheduling, see section 6.3) are accurate figures on inventory, sales orders, purchase orders and forecasts on the one hand, and appropriate item coverage settings on the other. Purchase requisitions – unlike planned orders, which are created automatically by master scheduling – are manually entered, internal documents asking the purchase department to obtain particular items (like consumables and office supplies). A purchase requisition runs through an approval process workflow, before it is released as a purchase order. Requests for quotation are sent to vendors in order to receive information on prices and delivery times. The purchasing department may either enter requests for quotation manually, or generate them in planned purchase orders and purchase requisitions.
3.1.1.3 Purchase Order You may create purchase orders either manually o
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