Restriciting the procurement categories to the employees using purchasing policies and organization Hierarchies

In general business scenario, it is a common requirement to restrict the employees of different departments to be able to raise the purchase requisitions for different set of items. AX2012 provides this functionality out of the box, which is possible by setting up the organization hierarchy and procurement policies in proper way.

In my previous post, a new procurement hierarchy has been created with two categories “Desktops” and “Laptops”. I am considering that hierarchy and going on.

Scenario:  An organization operates its business as Head office and regional office and it has Administration departments set in both the offices. The organization wants its Head office – Administration department employees to be restricted to raise the requisition for only the “Laptops category” whereas the regional office –administration department should be restricted to “Desktop computers” Category.

In the above case, let us create “Head office” and “Regional office” as Business units for the organization and “HO-Admin”, “RO-Admin” as the departments.

Create the Organization hierarchy “Demo Hierarchy” which looks like below and publish the hierarchy by clicking “publish and close” button as highlighted.(I am not explaining the creation of organization hierarchies as it is been discussed in some other blogs. You can refer to  Sandeep chaudhary’s blog

Important note: After creating the Hierarchy, assign the purpose “Procurement Internal control” to have the hierarchy reflected in the procurement policies.

Procurement policies setup:

To create new policy go to Procurement and sourcing>Setup> Policies> Purchasing policies> click new

Give the name as “HO-Admin policy” and click the parameters button and add the “Demo Hierarchy” to the order of precedence. By adding the hierarchy, we can set up the policies for any element(either business unit or department) in the hierarchy.

Expand the fast tab>Policy organizations> Select organization hierarchy as “Demo hierarchy” (refresh the form if you don’t see the created hierarchy) and add the legal entity node, business entity and department nodes to “Selected organization nodes”.

Let us define “Category access policy rule” under “policy rules” fast tab. Click “Create policy rule” to define the rule. Focus on the “Laptop Category” and click “Select” button to move them to the Selected Categories.

Now, for “HO-Admin” department, only the laptop category is applicable. If any user from this department create a purchaser requisition then, only the items under category “Laptops” can be seen and user can request only those items.

Let us check the end result by setting these dimensions to the employee.

Go to System administration>select your user id(the one which you are currently logged in with) click the button to see the employee you are linked to. (copy the same)

Goto HR> Employees form > filter the employee with the copied employee name>Edit

Click the Employment tab and specify the Business unit – HO, department – HO-Admin under Financial dimensions fast tabs.

Go to Procurement and sourcing and open “All purchase requisitions” form to create a new purchase requisition. When a new PR is created, the current user’s linked employee will be considered as preparer. So, system will allow the items that are available in “Laptop category”.

You can see only the “Laptop category” available for the selection and “Desktop Category” will not be shown. Using organization hierarchy in a proper way we can set the purchasing policies as required by the organization.

I know this looks like a lengthy post, but couldn’t make it shorter than this :).

Hope somebody will await for my next post ;).


11 thoughts on “Restriciting the procurement categories to the employees using purchasing policies and organization Hierarchies

  1. Hi Sunny,
    This blog post was highly informative. Great work !! Looking forward to more such posts from you in the PC category!

  2. I’m reviewing your information about “Restriciting the procurement categories to the employees using Purchasing Policies and organization Hierarchies”

    The table is OMOperating business unit, cost center and department in the path: General Ledger \ Setup \ Organization

    I can not understand how they relate tables (OMOperatingUnit) with DimensionFinancial. At the end of your useful information you mention the “employee” must be linked to the financial dimensions.

    I create as in OMOperating table the same values ​​for the financial dimensions?

    Much appreciate your feedback

    • Jose, I appreciate your efforts of trying this thing to workout for you. I replied for you query long back but dont how did it disappear. I’m sorry for that. You do not need to create the values for financial dimensions again. the values which are showing in your OMperating table will appear and can be selected when you get into Employees form>financial dimensions fast tab.

      Let me know if you can’t see the values which are available in the OMoperating table.

  3. Hi Sunny,
    Thanks for your informative blog.
    Do you know if it is possible to attach a default financial dimension to a procurement categorie?
    So that this dimension is inharited in PR /PO by default when using a specific category?

    • Murre, you can not link the financial dimensions to procurement category. Basically, the dimensions will be defaulted from the employee record. whatever the dimensions that are linked to the employee record will be flowing in the PR/PO. So, it conflicts with this idea of having the Fin-dimensions for procurement category.
      You need to go for customization. Let me know if you have any further queries.

  4. hi santosh – your blog to explain the procurement categories in conjunction procurement policies is very informative. however when i changed the financial dimension ie. BU and Dept of the worker, i would have expected NOT to see the laptop. however it is still there – am i missing anything in the setup?

    • Hi Datta, it seems that the design is now changed. It is now working with the Department that the employee is linked to. It doesn’t work with the “Financial dimensions”.

      Change the department of the employee and you will see the expected result.

      To change employee’s department, Go to employee> position assignment> on the position form> you will see a department field(not financial dimension).

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