Signing Limits in AX2012

Hi DAXers,

To control the expenditure in the organization, you can setup the spending limits for the employees to efficiently manage the expenditures by each employee in the organization. Well, most of us might already know that there is something called “Signing Limits” which is newly introduced in AX2012 can cater this requirement.

What is the configuration that is required to make signing limits working for your organization?

I would like to present a working example for you rather confining my post on explaining what these “signing limits” are. For those, who are very much new to signing limits, I suggest “Technet” is a great source which explains the concept. Below link will take you there.

http://technet.microsoft.com/en-us/library/hh208731.aspx

I believe this practical example will let you understand the concept too.

Setting the Signing limits:

You can setup the signing limits based on either “job” or “Compensation level. For our example, I’m going ahead with “Job”. If we setup the signing limit for a “Job”, that will be applied to all the employees who are linked with the particular job.

An employee is linked with the “Job” through his “Position”. The employee “Amy” with which I have connected is linked to the job “Business Administrator”.
Image: Positions

AX2012 - Positions

Set the Limit basis is “Job” in your “Signing Limits Parameters” form.

Organization>Administration>Signing Limits>Signing Limits parameters
Signing Limit parameters
Signing Limits parameters

Go to Organization>Administration>Signing Limits>”Signing Limit policies” to set the signing limits for the required Job.

Click New to create a Signing Policy and add the Legal entity for which the signing limits is applicable to. Select the Policy rule type “Default signing Limit” and click “Create policy rule”
Signing Limits
Image: signing Limits

Define the Signing Limit for the required Jobs. For our example I’m defining the limits for “Business Administrator” Job.

Let me define the spending limit for “purchase requisition” document type by setting the “Spending amount” as 10000 USD
AX2012-Spending Limits

Note that I’m not focusing on the “Approval amount” in this post.

Signing limit is set for all the employees who are linked to that “Job” i.e., Business Administrator.

Important note:
System will not restrict the submission of the corresponding document based on the signing limit. In our example; system will not throw an error when “Amy” tries to submit a Purchase requisition for more than 10000 USD. Signing limits work just like a property i.e., Amy’s spending limit is now set to 10000USD.

You must incorporate the Signing limits in the workflow to make it working and see the impact of your setup.

Configuring the Workflow using the “Signing limits”:

Scenario: “Contoso systems” decided the spending limit for “Business administrators” as 10000USD for the Purchase requisition and thus any Purchase requisition below USD 10K doesn’t need any approval. But, a PR which crosses USD 10K must get the approval by “X” user.

Note: I’m using the user based approval in this workflow to make it easy to understand. My coming post about “Manageral Hierarchy” will explain routing the documents to the managers based on the spending limits and approval limits.

The workflow setup must be as follows to meet this requirement:
AX2012-Signing Limits - Workflow

In the above workflow, I’ve enabled the automatic actions by using preparer’s spending limit. “Purchase requisition.approval amount” returns the total amount of PRlines and if that is less than the “spending limit assigned” to the preparer, it must be approved automatically.

Double click the “Approve PR” element to assign the user to whom the system should route when if the PR amount is more than the spending limit allowed to the employee.

In the “step1” element> right click >Properties > Select Assignment
Select Assignment type “user” and in the “user tab” specify the user.
Now everything is set.

Create a PR with the amount below USD 10k and submit it, It will be approved automatically as the PR amount is less than the “spending limit” allowed for the employee.

Create another PR with the amount above USD 10k, you can notice that it will be routed to the specific user.
Note: You cannot edit the “Unit price” field in the PR, so edit the quantity to have the needed “PR amount”, alternatively, you can change the purchase price for the product in Released products.

Guys, hope you will like it. I’m sure that my next post on “Managerial Hierarchy” will be more interesting. Stay tuned for that.

Thanks for your encouraging comments. Happy Weekend!!!!

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24 thoughts on “Signing Limits in AX2012

  1. Excellent post! A note from me: I normally use “Requester’s spending limit” instead of “Preparer’s spending limit”. It handles the case where one employee (preparer) enters requisitions on behalf of many employees (requesters).

  2. Do you know how to use the signing limits on the purchase order workflow? I can’t find this field on the PO workflow; only on Purchase requisitions.
    Although, you can add a signing limit for Purchase orders as well.

    thanks already for this excellent post!

  3. Thanks for the post. I’ve written a related (technical) article on how to use edit methods to update/display purchase requisition spending and approval limits on the Jobs form in AX 2012. Doing this gives HR staff the option to update these signing limits without having to access the default policy rules forms.

    For those developers who are interested, please see: http://colinmitchell.net/dynamicsax/?p=66

  4. Hi Sunny, Do you know how to use the signing limits on the purchase order workflow? AX allows me to setup a signing limit for purchase orders but I can’t find the purchaseorder.approvalamount field on the PO workflow; only on Purchase requisitions. Was this just missed by dev? Thanks!

  5. does anyone know how to assign approval limits if we do not have hr installed (jobs and positions?) The scenario is we have the requisition approvals going through the expenditure route (cost centre owner) and want to assign approval limits to employees so that if they are the dimension owner but do not have the approval limit the requisition cannot be approved.

    • you can assign the approval limits to the users only through positions. However, if I believe your requirements you can achieve without approval limits i.e., by using the conditional decisions in the workflow hierarchies.

  6. Nice Post.

    You mentioned that without using the approval limits through positions ” by using the conditional decisions in the workflow hierarchies.” . Could you blog about that functionality using the above scenerio which you had taken with the positions ?

  7. I feel like I’m taking crazy pills! How do I link purchase order spending limits to purchase orders?!?! Regardless of the spending limit the workflow requiring an approval. Anyone have a suggestion?

    • Hi Kevin,

      Assigning the signing limts to Purchase order is similar to assigning them to Purchase requisitions. You go through my posts on using signing limits, you will understand.

      • Sunny – I have found your blog to be a blessing to me as I am finding my way through AX. However, I have the same problem as Kevin. When you are creating a workflow for PO approvals, the choices in the “Automatic Actions” are not the same as they are for Requisitions…you have no way to tell AX to NOT send PO’s that are below a the PO creators limits. Every PO that is created goes to the manager.

  8. Hi Kevin D, Indeed it works differently. You nee to have an organization hierarchie with the purpose of signing limits + all the steps in this blog. Once setup in the workflow you select approve PO. Only use the assign to function criteria. This helped me for assigning the po to a worker. However I am still stuck in assiging it higher in the hierarchie, maybe this helps.

    Regards,
    Alexander

  9. Experiencing challenges with an environment – have you experienced the workflow “not seeing” the policy? Based on testing, made changes to the workers assigned to the role and now the workflow does not acknowledge it.

  10. Hi Sunny – Just wanted to take your input on the below scenario. Do you think the following is achievable using spending limits in managerial hierarchy (without customization ofcourse)

    Procurement Category – Automobiles and Computers.

    The approval limit for the same approver need to be different according to procurement category.

    i.e Purchasing manager’ approval limit for –
    – Automobile purchase should be 30,000$
    – Computer purchase should be 4,000$

    This is an often occurring scenario which I seem to have come across quite frequently. The approval limit should be based on a category. If this isn’t achievable what are your thoughts on setting up the workflow for this scenario?

    • Hi Adithya,

      Setting up the approval limit for the category of items is not possible. However, for me, your requirement mostly looks like routing the documents to the proper approver based on the category value. Are you intended to use managerial hierarchy for your workflows? if that’s not a mandate, this seems to be possible. You can send me a detailed document with your requirement. May be that gives me more information.

      Regards,
      Sunny

  11. Does anyone know if its possible to copy all existing jobs to a new Policy rule? Exemple: a Policy rule is closed but we would like to reload all the previous limits that existed in the previous rule?

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