Purchase Requisition in AX2012 & related questions

Dear All,

Hope all of you had blasting New Year celebrations!!!

I wish you a very happy New year and hope all of us will make the whole year wonderful.

Wanted to discuss on the complete procurement cycle which starts from Creating PR, PR to RFQ and RFQ to PO, but, don’t want to make it boring one for the Daxers who already knew it. At the same time, don’t want to ignore the newbies and their questions.

I hope my coming few posts on the PR creation and PR to RFQ creation will comfort the newbies in this area, also, I expect few interesting questions in this area will be answered(especially the ones which I am seeing frequently in the forums)

The readers who are familiar with the PR and RFQ process: can go through the below questions and if you have the answers for all the below, you may skip these posts.

Readers who are not familiar with PR process: just don’t stress about the below questions and go on with reading the posts.

 Can we create a Purchase requisition without having a workflow created?
 How to create the RFQ from the PR and exactly at which stage we can create the RFQ?
 If an RFQ is created from a PR, can we process the PR to next level without completing the RFQ process?
 Can we create multiple RFQs for a Single PR? If so, how?
 Once a PR is approved, how can we manually create the PO with reference to the approved PR?
 Can we configure the system in such a way that a PO is created automatically upon PR approval? What is the setup that is required in AX2012?
 What if we want the system to automatically create the Purchase orders, only when the PR amount is below a particular value and if it exceeds system should not create the PO.
 Can we create a RFQ without having a PR created?
 How a PO can be created from the RFQ?
 Can we have two POs created from a single RFQ? (Elaborating my question) Suppose, if an RFQ has 2 items x and y, supplier A quoted a better price for item X whereas supplier B quoted a better price for item y. In this case, will it be possible to create two POs from a single RFQ i.e., one PO to supplier A, other PO to supplier B?

Those, who are still reading, I appreciate your learning zeal.

To start working on purchase requisition below are the initial things that need to be setup in the system.
-> Link the user to an Employee – without linking the user to an employee you cannot create the PR as system will not know which employee is creating the PR.

To link the user to employee, have an employee created in AX and link the employee to user by going to System Administration>Users>Relations>

Note: The beginners usually see the “New purchase requisition” button is disabled in the Purchase requisitions form or an error “Preparer must be filled in”. Linking the user to an employee will resolve these two issues.

 Setup the workflow – without having the workflow created, you can just create the purchase requisition but cannot process it further (I am not explaining the workflow creation as I am focusing on the other things)

Questions & Answers:
Q: Can we create a Purchase requisition without having a workflow setup in the AX system? (This is the questions by most of the beginners)
A: You can create the purchase requisition without setting up the Purchase requisition workflow. But, you cannot process it further which means it is no use of just creating and leaving the purchase requisition in the form. If the PR workflow is setup in the system, then based on the approval hierarchy, it awaits the approval from the respective user.

Q: Can we create an RFQ from the PR? Does any further setup required?
Ans: Yes, you can definitely create the RFQ and no other setup required for the same. We are going to see the RFQ creation process in the coming post.

Q: Can we create multiple RFQs for a Single PR? If so, how?
Ans: You can definitely create multiple RFQs from a single PR. Of course, you can do it only when the PR has multiple lines. So, if a PR has 2 lines, then you can create RFQ1 for Line1 and RFQ2 for Lines and process them independently.

Q: How to create the RFQ from the PR and exactly at which stage we can create the RFQ?
Ans: You can see the “Request for Quotation” button in the Purchase requisition which will be enabled only when the PR status is “In review”. So, an RFQ can be created only when the status of the PR is “In review” that too it can be created by the user who needs to review it (as per the workflow setup). My next post will explain it in detail.
Q: From a PR, can we directly create the PO without creating an RFQ?
A: Yes, we can create the PO without having the RFQ created, as the RFQ creation is not a mandate process from the PR it is an optional case where in case you want to get the quotation from multiple suppliers and choose one among them.

I didn’t explain the Purchase requisition creation process as it can be found anywhere over the net or in the training manuals. You can go through the below link to understand why the purchase requisition is used in the organization and creation process of the same. (I will be filling the gaps :D)
http://technet.microsoft.com/en-us/library/hh209152.aspx#Create_a_purchase_requisition

Hope you will like the post and wait for the coming posts regarding the RFQ and PO Creations from PR.

Your suggestions and feedback on this post is most welcome. Feel free to contact me for any queries.

Catch you with interesting posts very soon. Keep Daxing!!!

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21 thoughts on “Purchase Requisition in AX2012 & related questions

  1. Hi Santosh ,

    Generally most of organizations will follow the RFQ creation process as mentioned below.

    RFQ will be created for new materials ( with out PR’s ) or against the approved purchase requistions( PR’s should be approved by concern department head).

    But when it comes AX RFQ process is against to organizations process.

    RFQ can be created from a purchase requisition only when the status of the purchase requisition is pending approval and You cannot perform any actions on the purchase requisition, such as completing, rejecting, or approving it, while the RFQ is in progress.

    why AX is doing in a different manner ?

    Thanks in advance.

    • Hi Lally,

      I agree with your argument on having RFQ process to be available for an approved PR. The main reason that I would agree with you is, What if the approver rejects the PR after the RFQ process is over? then the total efforts spent on sending the RFQs, RFQs evaluation will go vain.

      On the other hand, you can still have the standard AX work for you.

      Let’s say you have 10 approvers and your intention is to start the RFQ procss only when this 10 approvers approve the PR. In that case, add the person who initiates the RFQ as 11th approver.

      Design your work flow in such a way that if the 10th approver approves the PR route it 11th so that it can still be “In review” and he can proceed with RFQ.

      if the 10th approver rejects it then end the workflow.

      • Hi Lally,
        We also need to consider other business concepts behind this restriction.
        1. The approver should know the finance impact on the procurement of this item. So, before getting “FINAL” approval, going for RFQ is meaningful.
        2. After RFQ, once again routing the documents to approving authorities is waste of time and effort during the real time business.
        3. In real time business, the budget controller needs to know the price so that he can take a decision whether it can be procured immediately or to be postponed to next budget period. Also if required, they will go for approval from the top management for additional budget.
        4. If your business does not want to control over all these things, still the standard AX allows to go for RFQ after final approval as described by Santosh.

        So, AX is not doing in a different manner.

      • Balasubramanian, I agree with your points and at the same dont deny Lally’s argument. There must be a provision to handle both the cases.

        May be my suggestion is the provision that MS has given but it may requires some process change which we may need to force the client to adopt.

  2. An edit to the previous query:
    This is regarding financial dimension for purchase requisition in AX 2012 , when purchase requisition is created the financial dimension is taken based on preparer . Is there any way to default/populate the financial dimension based on requester.
    i.e if the requester is changed on the requisition line, can the requester’s financial dimension be shown?
    Currently it is working for only one user and for the rest of the users it is showing financial dimensions only for preparer. Would you know on this?

  3. If I want to make it mandatory that certain types of PR’s have RFQ’s attached is there a parameter or some setup that will support this

  4. Hi Sunny, I have a question about AX 2012R2. Our company has a model where a supervisor will prepare the requisition using only a procurement category for consumable supplies like maintenance supplies. In the Product name field on the req line he will enter specifically what he needs ex: “Cordless Drill” and submit it to the purchasing agent. The agent will then research the request and locate a specific vendor, vendor item, and price. Unfortunately, since the agent is not the preparer, he cannot update the purchase requisition with this information. I would appreciate your thoughts on this as to whether our process is not fitting with AX design concept. It seems like AX is more designed to use catalogs where preparers can select and item from a vendor which already has a price which he then submits to workflow however our company does not have procurement catalogs. Thanks very much.

    • I understand I’m replying very late for you comment but still if you didn’t overcome this situation, I believe this will be helpful. You can assign that agent as part of “Purchase requisition Review” step. So that he can give the prices and update the vendor account for the PR lines.

      I’m sorry for the delayed reply Jeff.

  5. hi ,sunny
    i have a problem with creating PO from PR
    the P.O take a status Approved and it doesn’t go in P.O workflow? how i can create a PO from PR with status Draft?
    while when i create a new PO it have a status Draft and go in PO workflow.

    • Hi Mahmoud, you might be seeing this behaviour because your PO workflow might have been configured in such way. I suggest you to check if there are any conditions mentioned in your workflow and remove them and then test it.

  6. hi sunny!!
    i have question for you in ax 2012 Cu7 .
    In purchase requisition say i have a two lines and i have approved my PR from released approved purchase requisition form and created a purchase order. now in Purchase order i want to invoice only single line so i am removing the second line . will the status for PO second line in released approved purchase requisition form will changed to open.,

  7. Hi Sunny,

    If we create an RFQ, Add 10 lines and sent it to 3 different Vendors for Quotation in such manner that Line 1-4 Sent for Vendor1, line 5-7 for Vendor2 and line 8-10 for Vendor3.
    Once finalised, We shall create single PO for all the 10 Lines.
    How can we handle this in AX ??

    Regards,
    Syed Mohammed Faiyaz

    • Hi Syed,

      Since AX holds the vendor information on the PO header, one PO can be linked with only 1 vendor. So, you would need to created 3 purchase for 3 different vendors. In fact, it makes business sense. If all the items are in one PO, how the PO confirmation can be sent separately to 3 vendors?

      Regards,
      Sunny

  8. Hi sunny,i have one doubt.Preparer will create the PR.But how can buyer identify to create RFQ based upon the PR.i mean is any communication between them.

  9. Hi Sunny, When the preparer creates a purchase requisition can they add charges directly on the PR? I have a situation where client wants to enter Header charges on the PR for an item, procurement category or a combination of the two on one PR. Same for charges on line for an item, procurement category or a combination of the two on one PR. They would like to also add auto charges per item, per vendor for main and line.

  10. Hi sunny

    Is it available to have a filed in purchase order that would be a reference to a PR? I need to be able to see PR number on purchase order in AX and later on printed Purchase order.

    • Hi Nenad,

      You can see the PR information in the PO line. Select the line in the PO, in the Line details fast tab>General tab, you have a field “Purchase requisition”.

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