AX2009_ENUS_TL1_03

Chapter 3: Purchase Orders and Purchase Order Posting

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CHAPTER 3: PURCHASE ORDERS AND PURCHASE ORDER POSTING Objectives

The objectives are:

• Create a Purchase order by using the Simple and Advanced views • Determine and apply the different Purchase order types • Set up Accounts payable Purchase order parameters • Specify alternative receipt addresses for a Purchase order line • Identify the different types of Purchase order posting • Perform a Purchase order posting update • Post a Purchase order receipts list • Post a Purchase order packing slip • Post a Purchase order invoice • Explain how a user can post a Purchase order invoice based on a

packing slip • Examine invoice matching of the Purchase order and packing slip

information • Set up Purchase order posting profile

Introduction Purchase Orders and Purchase Order Posting discusses basic and advanced Purchase order functionality.

The Working with Purchase Orders lesson explains how to create a Purchase order by using the Simple and Advanced views in the Purchase order form. Additionally, you will investigate the different Purchase order types.

The course also examines parameter selections in Accounts payable and how these affect creating Purchase orders.

The posting lessons describe how to post Purchase orders in four steps:

• Purchase order • Receipts list • Packing slip • Purchase order invoice

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Trade and Logistics I in Microsoft Dynamics® AX 2009

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Additionally, you will discover the more advanced Purchase order functionality that is introduced in Microsoft Dynamics® AX 2009. Finally, the course reviews the Multiple ship to functionality, which lets you specify delivery addresses for Purchase orders.

Working with Purchase Orders Companies can create a new Purchase order by using the Simple view and the Advanced views in the Purchase orders form and can add items to the Purchase order. Depending on their business needs, a company can also use different Purchase order types.

Purchase Orders Simple View

The Purchase order form opens, by default in the Simple view and shows the last Purchase order created. The Simple view only shows the user one Purchase order at a time. If other Purchase orders exist, it displays the last order entered, assuming that sequential Purchase order numbers are being used.



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Use the Simple view in the following situations:

• When you have to quickly enter information about a single Purchase order.

• When the user does not have to use the functionality that is available in the Advanced view.

FIGURE 3.1 PURCHASE ORDER FORM - SIMPLE VIEW



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Procedure: Navigate the Purchase Order in Simple View

To navigate the Purchase order by using the Simple view:

1. Click Accounts payable > Purchase Order Details. The Purchase order form opens in the Simple view.

2. To view other Purchase order records by using the Simple view, use the arrows located on the toolbar.

FIGURE 3.2 MENU BAR - CHANGE RECORDS

o Alternatively, you can right-click the Purchase order field and

use the Filter by Field function to search for a particular Purchase order.

3. Click Advanced to open the Advanced view.

Procedure: Create a New Purchase Order Header

You can create a Purchase order header by using the Simple view. Notice that all the following information is also relevant for creating Purchase orders in the Advanced view.

1. Click Accounts payable > Purchase Order Details. 2. Press CTRL+N to create a new Purchase order. 3. In the Create Purchase order form, select a supplier. Depending on

the parameter settings, you may receive a prompt from Microsoft Dynamics® AX 2009 to transfer the vendor information.

4. Make selections in the Vendor field group. The settings for this field group are described in the Create Purchase Order Form Parameters topic. a. One-time supplier b. Delivery address c. Invoice account

5. Make selections in the General field group:

a. Purchase type b. RMA number c. Currency



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6. In the Delivery address field group, the address defaults from base data. You can override the delivery address by clicking the Alt. address button and specifying an alternative address.

7. In the Administration field group, select the setting related to the buyer group, and the person placing the order and the purchase pool that the Purchase order belongs to. This is useful for filtering Purchase orders.

Create Purchase Order Form Parameters

The parameters in the Create Purchase order form allow you to set up the data on the Purchase order header that contain the basic information about the vendor and how the order should be invoiced. The following parameters will be covered in this topic.

• One-time supplier • Delivery Address • Invoice account • Purchase type • RMA number • Currency • Administration field group

One Time Supplier

Use the One-time supplier function when you are working with a supplier that does not exist in the Vendors form. Before you use this function, ensure that a number sequence has been set up for one-time suppliers in Accounts payable > Setup > Parameters > Number sequences.

EXAMPLE: A one-time supplier can be used when the demand for an item exceeds the capacity of the company's usual supplier, or when the company has an order for an item they do not usually carry.

Delivery Address and Invoice Account

The Delivery address is taken from the base data and is the standard delivery address for your company.

The Invoice account is used if the account number of the vendor who you receive the invoice from and where you must pay differs from the vendor with whom you put the Purchase order.



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Purchase Type

The Purchase type can be Purchase order or another type of Purchase order.

NOTE: You can change a Purchase order type at any time before items have been received. The Purchase Type field is automatically filled with the default purchase type specified in Purchase parameters.

RMA Number

The Create Purchase order form displays the Return Materials Authorization (RMA) number when Returned order is selected in the Purchase type field. This number is provided by your supplier and is used for tracking a return item. The field is mandatory when the purchase type is Returned order.

NOTE: The RMA number is only visible on the Create purchase order form when the Purchase order type is Returned order.

Currency

The currency code attached to the vendor is copied automatically when the vendor is selected. The currency code is mandatory and you can change it when a Purchase order line has been entered.

Example 1:

Occasionally, a vendor will ask to be paid for an order in another currency, perhaps because they are purchasing the component items in a different currency. For example, the vendor usually bills in euro (EUR), but for a particular order, has requested that the invoice be paid in U.S. dollar (USD). Vendor ledger entries for this invoice will be in USD. However, the General ledger entries will be in the vendor's functional currency, which in this case is EUR.

Example 2:

You can only have one Currency for each Purchase order. Select the currency by clicking the square arrow in the Currency field. When the invoice for the current Purchase order is updated, the invoice balance is posted in the selected currency and company currency. The system compares the exchange rate at posting and payment, and then automatically posts the differences to the exchange rate gain and loss account.

BEST PRACTICE: In the parameters you can define a safety level for invoiced orders. Set the parameter to locked so that the user cannot change an invoiced order.



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Administration Field Group

The Administration field group contains the following fields:

• Buyer group: Type or select a buyer group that is in the Buyer groups form.

• Orderer: Select the name of the employee who ordered the purchase. The employee must be set up in the employee table.

• Pool: You can group your purchase orders into pools for filtering and selection purposes.

• Language: Specify the language setting for the Purchase order. This affects the language that is used for item names and for printing external Purchase order documents.

EXAMPLE: Select an item in the Items form and then click Setup > Language - Item description. Select a language and enter the translation text. Create a new Purchase order and in the Language field group select the language for which you created a translated text. Print, for example, a receipts list and the item's name is printed out by using the foreign language text.

• Requisitioner: The user who requested the items, if the purchase

order was created from a Purchase requisition. The field is blank if multiple users requested items that are included in the same purchase order.

Procedure: Create Purchase Order Lines

After you create the Purchase order header, you must create Purchase order lines. To create Purchase order lines in the lower pane of the Purchase order form, follow these steps:

1. Click Accounts payable > Purchase Order Details. 2. Select a Purchase order or create a new Purchase order. 3. In the lower pane, enter the following information: (see more details

about these parameters after this procedure) a. Item number b. Inventory dimensions c. Quantity d. Unit e. Unit price f. Discount g. Disc. Pct.



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Purchase Order Line Parameters

The Purchase order line parameters are where you set up the item specific parameters for the Purchase order. The parameters that are discussed in this topic are the following:

• Item number • Site • Inventory dimensions • Quantity • Unit • Unit price • Discount • Disc.Pct. • Net amount

Item Number

Enter the item number or select it by clicking the Item number field. Base data is copied to the purchase line together with the item number and information such as the item name, unit, from the Items form with vendor-specific prices and line discounts from the Price Agreements table. Purchase markups are retrieved from the Misc. Charges Code.

Inventory Dimensions

Enter the item dimensions of Configuration, Size, Color, and inventory dimensions. You can enter Site, Warehouse, Batch number, and Serial number in the inventory dimension fields for each purchase line.

Quantity

Enter the quantity of the item in its purchase unit. If the standard purchase quantity has been specified in the Default order setting or Site specific order setting, this quantity will be proposed automatically. The proposed quantity is rounded up to the nearest multiple of the Quantity field, if defined in the Default order settings or Site specific order settings. You can also specify a minimum and maximum purchase quantity in the Default order settings and Site specific order settings. If the quantity entered does not fall within the defined limits, you are warned before the quantity is approved.



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Unit

The purchase unit is the purchased item's unit of measure. There is a close relationship between the purchase unit and the inventory unit. For example, the item may be purchased in kilos and stocked in grams. The Purchase unit reflects the vendor's sales unit. The actual conversion factors for the units are set up globally in the Basic module or specifically for each item through the Items form.

Unit Price

You can transfer a proposal for the purchase price of the item from the Price field on the Items form. Notice that if a purchase price agreement is set up, the price on the agreement is always used.

Discount

A line discount amount can be entered in the Discount field. This is calculated as a discount for each price unit. The amount is automatically transferred from the line discount agreements set up in Trade agreements. To do this, Trade agreements must be activated.

Disc. Pct.

A line discount percentage can be entered in the Disc.pct. field, or you can generate one from the line discount agreements created in Trade agreements. To do this, Trade agreements must be activated. The line discount is calculated from the complete line amount, after deducting the discount amount and adding other order markups. See also calculation of the line amount in the Net amount field. When the invoice is updated for the purchase, the total discount are posted in accordance with the posting profiles.

Net Amount

The Net amount is an expression of the total price of the purchase line after deduction of discounts and addition of various expenses.

Simple View Buttons

The Simple view in the Purchase order form does not display all available fields and tab pages. This applies to the menu and function buttons on the Purchase order also.



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The following table provides an overview of the buttons available in Simple view.

Buttons Short description Advanced Change view to the Purchase order form's Advanced

view.

Posting Print or post the documents available.

Pro forma A Pro forma order is when an order is printed but not posted. It can be used to test how a print will look before actually committing it to General ledger. Print a Pro forma Purchase order, receipt list, packing slip, or invoice. NOTE: You can print the documents, however, you cannot post them.

Inquiries View totals, cash flow forecasts, receipts list, packing slip and invoices. By selecting the Attached Purchase orders sub-menu item from a Purchase order of the type Blanket order you can also view attached release Purchase orders.

Create Lines Open the Create lines dialog box to quickly create multiple Purchase order lines for the Purchase order.

Intercompany View the relevant intercompany documents that relate to the intercompany Purchase order. See the Microsoft Dynamics® AX2009 Intercompany course for more information about Intercompany features. NOTE: This button is only active when the Purchase order is an Intercompany purchase.

Create Lines Button

Use the Create lines button to quickly create multiple Purchase order lines for a Purchase order. By using this functionality, you minimize key strokes, and data entry is expedited.

Procedure: Create Purchase Order Lines with the Create Lines Dialog Box

To create Purchase order lines by using the Create lines dialog box, follow these steps:

1. Click Accounts payable > Purchase Order Details. 2. Create a new Purchase order or select an existing one. 3. Click the Create lines button. Notice that in the Advanced view you

access the Create lines by clicking Functions > Create lines in the lower pane.



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4. Click either: o Existing items - To list all items. o New items - To create lines for items for which there are no

order transactions.

5. Enter the quantity to purchase for each line in the Create lines dialog box, and then click Create. The form is then closed, and the Purchase order lines are created. You can also click Apply which will create the Purchase order lines and keep the Create line dialog box open for creating more lines.

Purchase Order - Advanced View

Use the same steps that were performed in the Simple view to create a Purchase order using the Advanced view. The difference between the two views is how much information and functionality the user has access to.

One of the principle differences between the two Purchase order views is the many functions you can access by using the buttons in the Advanced view.

FIGURE 3.3 PURCHASE ORDER FORM - ADVANCED VIEW



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Buttons in Advanced View

The following table describes the functionality of some of the Advanced view buttons. In the Lines section of the Purchase order form you can see the functions that are specific to the Purchase order lines section of the Purchase orders form.

Button Description Simple/Advanced Toggles between the two views.

Posting Print or post the available documents.

Pro forma Print a Pro forma Purchase order, receipt list, packing slip, or invoice.

Trade agrmt. Maintain or view trade agreements, prices, and discounts.

Calculation Calculate multiline and total discount or supplementary items.

Inventory View inventory transactions and on-hand inventory. You can also reserve and register items from this submenu.

Buttons in Advanced View - Setup

The Setup button on the Purchase order header is where you add or view additional order information.

From this button, you can perform the following actions:

• Set up and allocate miscellaneous charges. • Specify sales tax and payment schedule settings. • Link to the Planned Purchase orders form. • Add more contact persons for the Purchase order than those specified

for the vendor. • Setup Print management settings. • Indicate whether summary updates can be specified for the Purchase

order.

The Setup button on the Purchase order line is where you can specify:

• An alternative delivery address for a specific warehouse. Learn more about this in the topic on Multiple Ship to Multiple Addresses.

• Miscellaneous charges and sales tax settings.



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Buttons in Advanced View - Functions

The Functions button on the Purchase order header is where you can:

• Copy from order journals • Create credit notes • Perform open transaction editing • Create release orders and other functions

In addition to the functions that are also available on the header, you can also access the following by using the Functions button on the Purchase order line:

• Explode an item of type BOM into its component items. • Use the Deliver remainder function to update back orders. For more

information, see the table about the Functions button later in this lesson.

Buttons in Advanced View - Inquiries

The Inquiries button on the Purchase order header is where you can view totals, cash flow forecasts, receipts list, packing slip, pending invoices and invoices.

The Inquiries button on the Purchase order lines is where you can access the Net requirements and Explosion functionality.

Functions Button

When you open the Functions button in the Purchase order header and the Purchase order lines, you will find the following functionality.

• Copy From All • Copy From Journal • Create Credit Note • Create Based on Sales Order • Create Release Order • Deliver Remainder

The following is a more detailed breakdown of this functionality.

Copy from All

When you create a Purchase order, the Copy from all function lets you view all Purchase orders, packing slips, and invoices and lines, to select a document or lines most like the one(s) being created. This data can be copied and used as a starting point for the new Purchase order.



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This function helps when you create a new Purchase order that resembles one created for a different vendor, or even for the same vendor for a different item or quantity. Within this option, users can configure the copying of these variables in the Quantity and Setup field groups:

• Quantity factor • Invert sign • Copy miscellaneous charges • Recalculate price • Copy precisely • Delete purchase lines • Copy order header

Copy from Journal

You can create purchase order lines by copying lines from other purchase orders or from previously updated purchase orders, packing slips, or invoices. Use the Copy from journal form for various methods of copying purchasing information.

With the Copy from journal option, users can configure the copying of the same variables in the Quantity and Setup field groups as they did for Copy from all function.

Create Credit Note

The Create credit note function is only used for creating credit notes based on existing and invoiced Purchase orders or lines for the same vendor. The Invert sign check box is selected by default.

Within the Create credit note option, the user can select or clear the Delete purchase lines check box if purchase lines exist within the present Purchase order.

Create Based on Sales Order

The Create based on sales order function allows for a direct link to be made between a Purchase order and a sales order. For example, the purchaser wants to create a summed Purchase order for all sales orders for a particular item.

Therefore, he or she performs the following:

1. Creates a new Purchase order and clicks Functions > Create based on sales order.

2. Clicks Select and enters a query to find all sales order lines with the same item attached to it.

3. Selects the Include all check box and then clicks OK to create one Purchase order to cover all sales order requirements.



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A Purchase order with lines to cover all the sales order requirements is created. When the Purchase order is created, each line references the sales order requirement. Additionally, the sales order and Purchase order are now marked against one another.

NOTE: A vendor must be specified for the Purchase order that this defaulted from or you must enter the Vendor account manually.

Create Release Order

Use the Create release order function to release quantities of items from a blanket order. After you have created a release order a Purchase order is generated which is handled in the same manner as a typical Purchase order.

Deliver Remainder

The Deliver remainder function is available only on the Purchase order line. By selecting this function, the user is prompted with a dialog box within which he or she can request delivery of any of the open quantity on this Purchase order.

The user can also click the Cancel quantity button from this dialog box. This sets the backorder quantity to zero and cancels the remaining order. This can help when a user is receiving a partly delivered Purchase order, or from a blanket order or subscription.

Purchase Order Types When you create a new Purchase order, Microsoft Dynamics AX 2009 offers several options on the Create Purchase order form.

There are five Purchase order types to select from depending on the process or action the user needs:

• Journal • Subscription • Purchase order • Returned order • Blanket order



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FIGURE 3.4 PURCHASE ORDER TYPES

Journal

The Purchase order type Journal is used as a draft. It does not affect stock quantities and does not generate any item transactions and the quantity on the order line will not be considered in the Master scheduler.

EXAMPLE: A Purchase order of the type Journal can be used when importing data by batch; in this manner, the Purchase order can be reviewed and evaluated without affecting inventory, on-order, or other numbers.

Demonstration: Create a Purchase Order Journal

This demonstration shows how to create a Purchase order of type Journal and how this affects inventory transactions.

1. Click Accounts payable > Purchase Order Details. 2. Press CTRL+N to open the Create Purchase order form. 3. Select Vendor account 1203. 4. Select Journal in the Purchase order type field. 5. Click OK. 6. Create a Purchase order line for item number 1705.



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7. From the Purchase order line click Inventory > Transactions. Notice that the Transactions sub-item is unavailable.

8. Click Posting and you will see that all posting updates are unavailable as you cannot posting update a Purchase order of the type Journal.

Subscription

The Subscription type of Purchase order is used for repeated purchases of the same goods or services. When a packing slip is updated, Microsoft Dynamics AX 2009 generates a receipt. When the invoice is updated for the receipt, a new packing slip or invoice entry can be updated for the same purchase line immediately or at some future date. The order will never be at an Invoiced status only Open or Received.

EXAMPLE: An example of a recurring order is a monthly replenishment of screws. In this situation, a company purchases a quantity of screws every month with monthly deliveries and billings. When the order is invoiced, the order status is automatically set to open order, the quantity delivered is invoiced, and the delivery remainder is updated.

Demonstration: Create a Purchase Order Subscription

In this demonstration, you will create a Purchase order of the Subscription type and see the effect that invoicing the Purchase order has on its status.

1. Click Accounts payable > Purchase Order Details. 2. Press CTRL+N to create a new Purchase order for vendor 1203. 3. In the Create Purchase order form, select the order type

Subscription. 4. Click in the Lines pane and create the Purchase order line for 50

pieces of item number 1705. 5. Click Inventory > Registration to register the items. 6. Invoice the order by clicking Posting > Invoice. 7. Check the details of the invoice and ensure that the Quantity field is

set to All and select the Print invoice check box. 8. Select a number in the Invoice field. 9. Click OK. The order is invoiced and an invoice is created for 50

pieces of item number 1705. The Purchase order itself has the status Open order.

10. Repeat steps 5-9. 11. From the Purchase order line, click Inventory > Transactions.

Transactions are created every time that you posting update the Purchase order of type Subscription.



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Purchase Order

The Purchase order type is used when you want to send a vendor a purchase order and enter it in the system. When you create a new order, the type can be set to default to Purchase order type in the Parameters form depending on the client's business process.

Returned Order

The Returned order type is used when you return goods to the vendor. A Return Merchandise Authorization (RMA) number supplied by the vendor is required when you enter this kind of order.

EXAMPLE: Your supplier sent the incorrect size of screws. The purchaser contacts the vendor, requests an RMA, and uses the Purchase type Returned order to track the return. This purchase type can also be used to return damaged or otherwise defective goods to the supplier.

Blanket Order

The Blanket order type of Purchase order is used if there is a contract with the vendor for a bulk quantity and price and you want to order off that contract. Typically, a company uses blanket orders to receive better pricing conditions because the blanket order quantity is bigger than on single Purchase orders.

Create a Release order to release, order, and invoice items against the Blanket order until the contract is fulfilled.

Blanket orders do not affect stock quantities, do not generate item transactions, and are not included in Master scheduling.

Release orders, issued from Blanket orders, do affect all these.

EXAMPLE: A company wants to purchase 2,000 pieces of item B. However, because of storage and capital limitations, the company wants the items delivered just in time for use in their production. In this situation, the company contacts the supplier and requests 20 pieces on Monday, 20 pieces on Wednesday, and on the following Monday, an additional 20 pieces. At this point 1940 pieces remain on the open Purchase order. Every time the company orders against this Purchase order, the remaining quantity is decreased until the all the 2,000 pieces have been delivered.

Procedure: Create a Blanket Order

To create a Blanket order, follow these steps:

1. Click Accounts payable > Purchase Order Details. 2. Press CTRL+N to create a new Purchase order. In the Create

Purchase order form select the Purchase order type Blanket order.



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3. In the Lines tab, specify the total quantity for the item. 4. To ensure that a quantity and lot is selected when you create a

release order, enter a quantity in the Receive now field.

Procedure: Create a Release Order from a Blanket Order

To create a release order from a Blanket order, follow these steps:

1. Click Accounts payable > Purchase Order details. 2. Select the Blanket order. 3. In the Purchase order header, click Functions > Create release

order. 4. If you have not entered a quantity in the Receive now field in the

Purchase order line for the blanket order, select the LotID, the Purchase quantity, and the Delivery date.

5. Click OK. A new Purchase order is created. Note the reference to the Blanket order in the Blanket order field in the Purchase order overview.

6. Update the Purchase order as you do with an ordinary Purchase order.

7. Go back and examine the blanket Purchase order and then click the Quantity tab. Notice that the Deliver remainder quantity has been reduced by the quantity the released Purchase order was for.



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Lab 3.1 - Create Purchase Orders Contoso Entertainments System - Company CEU

Scenario

You are a new accounts payable clerk at Contoso Entertainment Systems. You have been in training all day, and the trainer has left you with the following Purchase orders to create.

• One Purchase order for 20 item number 1507, from Fog Projectors. • One Purchase order for 500 item number 1701, to be purchased in

increments of 100, from Opal Electronics. • One Purchase order from Topaz Electronics, to be paid to Ruby

Electronics, for 50 item number 1705.

Challenge Yourself!

Create the Purchase orders according to the specifications from the scenario.

STOP HERE: The remaining steps, in Challenge Yourself Part 2, of this lab requires skills gained later in Purchase Order and Purchase Order Posting . The rest of the lab is therefore instructor-led. The reason for having the additional steps is to show a whole process flow from order creation to invoice updating. You may want to revisit this lab later when you have completed Purchase Orders and Purchase Order Posting, at which stage you can execute all the steps in the lab.

1. For the second Purchase order, create the release order for the first

lot of 100 pieces. 2. For the third Purchase order, register and invoice update the order

and ensure that the invoice is printed to screen.

Note which address, apart from Contoso Entertainment Systems is located on the invoice. The invoice that is now created has the Ruby Electronics’ address on it as the billing address for the order.



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Need a Little Help?

1. Use these Purchase types: o Purchase order o Blanket order o Purchase order

2. Change the Invoice account to pay-to a different vendor for the third

Purchase order.

Step by Step

1. On the Navigation Pane, click Accounts payable > Purchase Order Details.

2. Press CTRL+N to create a new Purchase order. 3. Select Vendor 1103. 4. Click Yes in answer to the prompt about transferring vendor

information. 5. Click OK. 6. Select Item 1507, and 20 will occupy the Quantity field. 7. Click in the Vendor account field. 8. Press CTRL+N to create a Purchase order. 9. Select Vendor 1203. 10. Click Yes in answer to the prompt about transferring vendor

information. 11. Click OK. 12. Select Blanket order as the Purchase type, and then click OK. 13. Select Item 1701. 14. Type 500 in the Quantity field. 15. TAB off the Quantity field. 16. Click the Quantity tab. 17. Type 100 in the Receive now field. 18. Move to the header block and press CTRL+N to create a new

Purchase order. 19. Select vendor 1201. 20. Click No in answer to the prompt about transferring vendor

information. 21. Click the arrow in the Invoice account field. 22. Select vendor 1202. 23. Click Yes in answer to the prompt about transferring terms of

payment information. 24. Select USD in the Currency field.



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25. Select en-us in the Language field. 26. Click OK. 27. Select item 1705 28. TAB to the Quantity field and type 50. 29. TAB off the Quantity field.

You have now set up the three orders as instructed in the first part of the lab. In the next part of the lab, you will create a release order for the blanket order and invoice update the Purchase order for which the vendor and invoice address are different.

1. Click the Purchase order of type Blanket order and then click Functions > Create release order.

2. Click OK and a Purchase order is created for the first release quantity.

3. Click the third order you created. 4. Click Inventory > Registration and post the registration. 5. Click Posting > Invoice. 6. Select the Print invoice check box. 7. Click OK.



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Set Up Accounts Payable Purchase Parameters In the Accounts payable parameters, you can create default settings that are used by the Purchase order.

You will find the Accounts payable parameters in Accounts payable > Setup > Parameters.

The fields in the Accounts payable parameters are:

• Purchase Type • Prompt When Specifying Vendor and Invoice Account • Purchase Order Prices/Amount • One-Time Vendor Account

Purchase Type

Select any one of the Purchase order types as the proposed default type when you create a Purchase order. You can override the setting at order creation.

The Purchase type parameter setting is useful if you normally use a particular Purchase order type in the Purchase order process. For example, if your company always starts the Purchase order process with an order of type Journal before continuing to make a confirmed Purchase order, you will specify Journal in this field.

Prompt when Specifying Vendor and Invoice Account

The Prompt when specifying vendor and invoice account parameter is used to activate a prompt in the Create Purchase order form. The parameter can be cleared or selected.

Status Description Selected If you create a new Purchase order, or modify an existing one,

you are prompted to copy vendor information base data, for example name and address for the vendor account number, or terms, for terms of payment, from the vendor's master record.

Cleared Vendor information is copied to the Purchase order without a warning.

EXAMPLE: Select the Prompt when specifying vendor and invoice account parameter so that master data can be confirmed for each order. For example, as the purchaser enters the vendor number, he or she can confirm that the address in the system for that vendor is current.



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Purchase Orders Prices/Amount

The Purchase Order Prices/Amount parameter controls whether the price is printed on the Purchase order document. The parameter can be cleared or selected.

Status Description Selected Print the price of the items on the purchase lines on the Purchase

order.

Cleared No pricing information is printed on the Purchase order.

EXAMPLE: You may not want to display Purchase order prices for your vendor so that you do not hinder the possibility that the vendor will come back to you with a price offer lower than that printed on the Purchase order update.

One-Time Vendor Account

In the One-time vendor account field, select a vendor from which default settings originate for any one-time vendors that you create a Purchase order with the One-time vendor check box selected.

EXAMPLE: In the One-time vendor account field, specify vendor B2. When you create a new one-time vendor, details such as payment terms, mode of delivery, and other settings for vendor B2 default to the one-time vendor you have just created.



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Lab 3.2 - Applying Purchase Parameters Contoso Entertainments System - Company CEU

Scenario

You are a Microsoft Dynamics AX 2009 implementer. You have been asked to visit the purchasing team at Contoso Entertainment Systems to provide additional training so that the team can take better advantage of their system. When arriving on site, you ask the team what they find time-consuming or cumbersome in their daily procedures.

After some discussion, you learn that the team's work is cyclical: the first week of the month, they process Purchase orders; the second week of the month is when they process returns, and so on. Because this is the second week of the month, you will train them on how to set their system to default to creating Returned orders, and to eliminate the check for transferring vendor information.

Because the Purchasing department wants to receive the best possible price offers from vendors, it is a policy that no pre-determined prices are printed on Purchase orders sent out to vendors.

The company must frequently purchase from one-off vendors to compensate for the shortfall in supply from one of its regular vendors, vendor 8011. These vendors work with similar terms of payment, discounts systems, methods of delivery, and so on to vendor 8011. To facilitate the one-time vendor's setup in the Vendors table ensure that the base data template for one-time vendors is the same as for vendor 8011.

Challenge Yourself!

Set up the parameters to meet the requirements as outlined in the scenario.

Need a Little Help?

1. Find the parameters in Accounts payable > Setup > Parameters. 2. Select the General tab and change the appropriate fields.

Step by Step

1. From the Navigation pane, click Accounts payable > Setup > Parameters.

2. On the General tab, select Returned order as the Purchase type. 3. On the General tab, clear the Prompt when specifying vendor and

invoice account check box. 4. On the General tab, clear the Purchase order/price amount check

box.



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5. On the General tab, in the One-time vendor account specify vendor 8011

6. Close the Parameters form.



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Ship to Multiple Addresses The Multiple ship to functionality enables users to specify delivery addresses per order line.

Use the Multiple ship to functionality in Purchase orders to perform the following actions:

• Specify multiple receipt addresses for Purchase orders. • Select if Purchase order documents are printed for each delivery

address or for each order.

Specify an Alternative Delivery Address for a Purchase Order Line

Use the Alternative address functionality to specify another address for the Purchase order lines, for example, when you ask a vendor to deliver directly to a customer when you are not using the Direct delivery feature in Sales orders.

On creation, the default delivery address on the Purchase order line is the delivery address from the Purchase order header.

Procedure: Specify an Alternative Delivery Address

To specify an alternative delivery address on a Purchase order line:

1. Click Accounts payable > Purchase Order Details. 2. Select a Purchase order. 3. In the Lines section, select a Purchase order line. 4. Click Setup and select Alt. address. 5. In the Address selection form, click the appropriate tab and select

the address in the lower pane that you want to copy to the Purchase order line.

6. Click Copy address to order. The address is now copied into the Purchase order line.

NOTE: You can use the Copy address from order button to upload an updated delivery address from the Purchase order line to the Address selection form for reuse later.

HINT: If you only use the alternative address one time, it may be quicker to enter the address manually on the line.



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Procedure: Print a Separate Purchase Order Document for Each Delivery Address

To print a separate Purchase order update document for each address specified on the attached Purchase order lines:

1. Click Accounts payable > Setup > Parameters. 2. Click the Summary update tab. 3. In Split based on delivery information field group, select the

Purchase order check box.

Whenever you run a Purchase order update, documents are printed for each alternative delivery address.



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Lab 3.3 - Ship to Multiple Addresses and Purchase Orders Contoso Entertainments System - Company CEU

Scenario

You will be receiving an order of 2,000 pieces of 1701 to two warehouses 21 and 22 on Site 2.

The 1,000 pieces for each warehouse must be delivered to a different dock than usual because they must be stored in a warehouse area for fragile goods. Therefore, you must specify an alternative receipt address that is used for the fragile goods area at each warehouse.

Challenge Yourself!

• Set up the Accounts payable parameters to split purchase order documents based on delivery information.

• Create a Purchase order with vendor 1203 for 2,000 pieces of item number 1701.

• Create the Purchase order with two lines so that 1,000 pieces each of the item are delivered to the alternative delivery address for warehouse 21, select any alternative address.

• For warehouse 22 you must enter an address manually on the Purchase order line.

Need a Little Help

1. Specify the alternative receipt address on the Purchase order line. 2. The print parameter can be found in Parameters for Accounts

payable.

Step by Step

1. Open Accounts payable > Setup > Parameters > Summary update tab.

2. Select the Purchase order check box, and close the Parameters form.

3. Open Accounts payable > Purchase Order Details, and then create a new Purchase order with vendor 1203.

4. Create two Purchase order lines for 1,000 pieces of 1701, each a different warehouse specified for them, that is 21 and 22.

5. On the line with warehouse 21, specify an alternative address for the line by clicking Setup > Alt. address.

6. On the Warehouse tab, select an address line from the available addresses in the lower pane and then click Copy addr. to order.



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7. On the line with warehouse 22 you must enter the address manually on the Address tab of the lines section.

8. Click Posting > Purchase order and print the Purchase order documents.



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Purchase Order Posting Microsoft Dynamics AX 2009 offers many posting techniques and processes that you can apply when you work with Purchase orders.

In addition, posting profiles help you control which ledger accounts are used and when they are used when purchasing and selling inventory.

When you post a Purchase order in Microsoft Dynamics AX 2009 update the order according to the stage it has reached in the order cycle. These stages include:

• Confirming order details • Receiving items • Invoicing

This lesson discusses the complete cycle of the Purchase order, explaining each step and its effect on other modules, such as Inventory management and General ledger. Notice that what is covered here is the most basic and simple cycle. More advanced functionality is available by using the Microsoft Dynamics AX 2009 Warehouse Management System (WMS) module, for example, for receiving and shipping orders.

Profiles for posting to the general ledger can be set up for:

• One item • An item group • All items at the same time

Purchase Order Posting Update Types

Users can open the four posting updates that are available for Purchase orders in Microsoft Dynamics AX 2009 by using the Posting button on the Purchase order form. These updates are shown in the following table.

Posting update Description Purchase order Confirms the Purchase order details.

Receipts list Prints the list of items and locations for the receiving staff to receive the items.

Packing slip Registers the item as received from the supplier using a packing slip.

Invoice Registers the invoice as received from the supplier.



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You do not have to perform each Purchase order update for a given Purchase order. For example, the first two steps are optional. If you post the invoice without posting the packing slip, Microsoft Dynamics AX 2009 still posts the invoice and receives the item.

NOTE: Microsoft Dynamics AX 2009 also provides you with the option of using the Pro-forma button in the Purchase order form to go directly to the Posting forms for all posting updates, that will have the Posting check box inactivated by default.

BEYOND THE BASICS: When you use the Warehouse management functionality, the processing of Purchase order changes and the registering of item arrivals and receipts are performed in the Inventory management module journals. Refer to the Microsoft Dynamics AX 2009 Warehouse Management course for more information.

Post a Purchase Order Post a Purchase Order discusses how to post a Purchase order and the various posting options, such as the quantity to be updated, summary updates and other options available when you perform the posting.

After a Purchase order has been created, the next step is to perform Purchase order posting update.

The Purchase order is posted to confirm the Purchase order details such as delivery dates, quantities, prices, and other order details, and to communicate them to the supplier by using fax or e-mail. All the default values for Purchase orders are set up in Accounts payable > Setup > Parameters.

Procedure: Quick-Post a Purchase Order

Follow these steps to quick-post a Purchase order:

1. Click Accounts payable > Purchase Order Details > Advanced view.

2. Select the Purchase order to post. 3. Click Posting > Purchase order. 4. Select All in Quantity field of the Posting dialog box. 5. Click OK button in Posting dialog box.

Purchase orders can be posted multiple times; in this case Microsoft Dynamics®

AX 2009 stores each version of the Purchase order in a journal, by using revision numbers.



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Procedure: View Purchase Order Updates

Follow these steps to see the different versions of the Purchase order updates:

1. Click Accounts payable > Purchase Order Details. 2. Select the Purchase order where you want to see revisions. 3. From the Purchase order header, click Inquiries > Purchase order.

The Purchase journal field shows the Purchase order number followed by the revision number, for example 00045_049-1, the “1” being the version suffix.

NOTE: Neither the Purchase order status nor the inventory transaction change when you update the Purchase order.

Update of Multiple Purchase Orders

From the Purchase order Advanced view, select more than one Purchase order in the Overview tab before you click the Posting button. This lets you update all the Purchase orders selected at the same time.

You can also specify multiple Purchase orders for Purchase order update by specifying criteria in the Select query window opened from a specific Purchase order or from the Periodic folder. To perform this kind of multiple update:

1. Click Accounts payable > Purchase Order Details > Select a Purchase order > Posting >Purchase order.

2. Click the Select button. 3. In the query, select the Purchase order number, the Vendor account

and the Purchase pool. 4. Click OK to confirm your selections.

Posting Purchase Order Form - Upper Panel

Users can access functionality from the upper panel, Parameters and Other tabs of the Posting Purchase order dialog box.



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In the upper panel of the Posting Purchase order form the Parameters tab has two field groups:

• Parameters • Print options

FIGURE 3.5 POSTING PURCHASE ORDER FORM - UPPER PANEL

Upper Panel - Parameters Tab - Parameters

The Parameters field group contains the following fields:

• Quantity • Posting • Late Selection

Quantity

The Quantity field allows users to decide which quantity to post. The following table explains the options available in this field.

Parameter Option Description Receive now Use when you are updating a partial quantity. The

quantity must be entered on the order line on the Quantity tab. When the Purchase order is updated, the Receive now quantity on the Purchase order line is used as a proposed quantity. NOTE: You can also override this quantity in the Posting Purchase order form, and all other posting update forms by clicking the Lines tab and entering a quantity in the Update field.

All Select this option and the total Purchase order quantities are proposed in the posting lines.

Registered Use when you packing slip or invoice update a Purchase order. Only those items on the order that have been registered are updated.

Packing Slip This is useful for posting only those items on the order that have been updated to the packing slip. The balance of the order will not be invoiced.



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Posting

Select the Posting check box to record the Purchase order revision in the journal. If you clear the check box, a pro forma Purchase order will be generated and this revision of Purchase order is not stored.

Late Selection

Clear the Late selection check box unless you plan to process the order at a later date or time by using a batch process. This is the only point in the Purchase order posting process that you have this option.

EXAMPLE: Late selection helps when a company wants to perform the printing of the purchase orders at a specific time in the day. They will create a regular batch job that runs all Purchase orders and prints or emails them at one time.

Upper Panel - Parameters Tab - Print Options

The Print options field group lets you select preferences for printing or viewing the posting.

Select the Print purchase order check box to print a copy of the Purchase order update.

Print Management

By selecting the Use the print management destination parameter, you enable the print management system in Microsoft Dynamics AX 2009. Print management is used for purchase and sales order updating.

Use Print management to specify:

• Which printer that will print specific updates. For example, set up the following: o Print management on the form setup level to print the Purchase

order at the purchaser's printer. o The receipts list, to be printed at the warehouse printer so that

the warehouse workers have a receipt list available for receiving the goods.

o The packing slip, to be printed at the goods receipt dock and a copy to be printed at the purchaser's own printer. The invoice original and copy are printed at the purchaser's printer.

o You can also specify settings for the specific order.

• The number of original/copies to be printed. Notice that the destination and the number of copies/originals may be specified asynchronously.



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The print management settings are set up in a hierarchy, with each level overriding the one underneath. Therefore, in the following table, Form setup is the lowest level and the print management for the module overrides the form setup settings and so on up the hierarchy.

Level Path Form setup Accounts payable Accounts payable > Setup > Forms >

Form setup > Print management

Vendor Accounts payable > Vendor details > select a vendor > Setup > Print management

Purchase Order Accounts payable > Purchase Order Details > select a Purchase order > click Setup > Print management

Procedure: Set Up Print Management from a Purchase Order

Use the following procedure to set up print management original or copy records and conditional settings for a Purchase order. You might do this if you must use a different printer for a specific transaction.

1. Open Accounts payable > Purchase Order Details > Advanced 2. Select a transaction. 3. Click Setup > Print management. 4. In the left pane, expand the list for a document that is listed under the

transaction that you are working with. Any original or copy records are displayed.

NOTE: An icon with a blue arrow indicates that the original or copy record is inherited from the module level or account level of the hierarchy. This is the print management information that is used for the vendor, unless you make changes at the account or transaction level.

5. Review the original or copy record information. If changes are needed, you can override an inherited record, copy an inherited record, create a new record, or create a new conditional setting.

6. To override, right-click an original or copy record and select Override. The icon changes to display a red X to indicate that the record is now an override record.

7. To copy, right-click an original or copy record and select Copy. A copy is displayed in the list. You must give the copy a new name.

8. To create a new original or copy record, right-click a document in the list and select New. A new record is displayed in the list.



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9. To create a new conditional setting, right-click an original or copy record and select New. A new conditional setting is displayed in the list. You must give the conditional setting a description and select query information.

10. By default, the document will be sent to the default printer. To change the printer destination, select Printer setup in the Destination field and select a destination. When you have finished making changes, click OK to return to the Print management setup form.

11. Enter the number of identical copies to print. 12. Enter the footer text to include at the bottom of the document. To

print footer text in other languages, depending on the language of the document, click the Footer text lookup button and set up footer text for the additional languages.

Upper Panel - Other Tab

The Other tab of the Posting purchase order form contains two parameters:

• Check credit limit • Summary update for

The Check credit limit parameter does not come into effect until the first physical updates occur at Packing slip update. Therefore, this is documented in the section on Packing slip updates.

FIGURE 3.6 PURCHASE ORDER FORM - UPPER PANEL - OTHERS TAB

Summary Update Options

Use the Summary update for: field determines how multiple Purchase orders must be summarized. There are four summary update options shown in the following table.

Type of update Description None No summary updates are processed. One Purchase

order journal will be created for each Purchase order.

Invoice account Use this selection to summarize multiple Purchase orders into one Purchase order update.



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Type of update Description Order A selected range of orders are consolidated into one

Purchase order update. When you select Order, another field, Purchase order appears. In this field, you select on which order the orders must be summarized. Notice that for orders to be summarized in this manner, they must fulfill the condition of by using the same currency and invoice account. If Order is selected, you must also set the Order error tolerance on the same form.

Automatic summary Select this option to summarize multiple orders according to the criteria that is specified in the Summary update parameters. Specify in the order setup that a summary update must occur when the order is updated. Otherwise, the orders are posted separately.

Automatic Summary

Before you can summary update Purchase orders by using Automatic summary, you must:

• Enable automatic summary updating for Purchase orders/vendors. • Specify the parameters that determine how the automatic summary is

performed, for example, by contact person, warehouse or other criteria.

Procedure: Set Up a Vendor for Automatic Summary Update

To enable automatic summary updating for a particular vendor you must specify that automatic summary updating is enabled for that vendor and in which updates, for example, on the Purchase order, Packing slip or Invoice update. To do this:

1. Click Accounts payable > Vendor Details. 2. Select for which vendor to enable summary updates. 3. Click Setup > Summary update. 4. Select on which updates to enable Automatic summary updates, for

example, on Purchase and Invoice, but not for Packing slip or Receipts list.



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Procedure: Enable Automatic Summary Update for a Purchase Order

To enable automatic summary update for a specific Purchase order, where for example summary updating is not specified for the vendor generally, perform the following:

1. Click Accounts payable > Purchase Order Details. 2. Select a Purchase order. 3. Click Setup > Summary update. 4. Select the Use values from vendor check box if you want the

settings from the vendor transferred to the order's summary updating settings. If you do not want to use the values from the vendor, clear the check box and select or clear the Automatic summary check boxes for the different updates.

Procedure: Set Up the Summary Update Parameters

Specify the criteria by which orders are summarized when you specify the Automatic summary updating method. The minimum parameters necessary to create summary updates are Invoice account and Currency; these parameters cannot be changed.

1. Click Accounts payable > Setup > Parameters > Summary update tab > click Summary update parameters.

2. Select the parameters to summary update by selecting the update type, that is as follows: o Purchase order o Receipts list o Packing slip o Invoice

3. Apply the parameters by clicking the parameters from the Available

to the Selected pane.

Posting Purchase Order Form - Lower Panel

The lower panel of the Posting Purchase order form contains the Purchase orders to be posted.

NOTE: The Fixed assets tab will not be covered in the Microsoft Dynamics AX 2009 Trade and Logistics courses.



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FIGURE 3.7 POSTING PURCHASE ORDER FORM - LOWER PANEL

Example: Caution Triangle

Purchase orders have been selected for Purchase order update. In one of the Purchase orders, for ten pieces, the Receive now quantity was five. In the other Purchase order, there was no Receive now quantity specified on the line.

The two Purchase orders were selected for update and the value in the Quantity field was Receive now. Therefore, the Purchase order where the line had a Receive now quantity was updated with a tick because there was a Receive now quantity to update. The other Purchase order had no Receive now quantity and there was nothing to update. Therefore, a caution triangle appeared.

Lower Panel - Setup Tab

The Setup tab displays the Document date, which uses the current system date if left blank. The Document date is used for calculating the due date and any cash discount date. The document date may be different from the system date in the following example.

EXAMPLE: The accounts payable clerk at Contoso Entertainment Systems was on sick leave during month-end processing and returned to work on July 3. However, all the invoices must have a posted date of some time in June. By using the Document date field on the Setup tab, the clerk can post the invoices in June.

Lower Panel - Lines Tab

The Lines tab displays all the lines for the selected Purchase order and lists the:

• Purchase order number • Item number • Site • Inventory dimensions • Quantity to update • Financial value to be updated



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By clicking Inventory, you can access all the inventory views that can be accessed from the Purchase order line such as item on-hand, transactions and other information. Additionally, you can register item arrival from this sub menu.

FIGURE 3.8 POSTING PURCHASE ORDER FORM - LOWER PANEL - LINES TAB

Lower Panel - Line Details Tab

The Line details tab provides additional information about the item that is selected on the Lines tab. This additional information includes the following:

• Price • Update and deliver remainder quantities • Miscellaneous charges information • Applicable discounts. • Delivery address information

Lower Panel - Purchases Tab

The Purchases tab lists all the Purchase orders to be updated.

Post a Receipts List Generating a Receipts list from a Purchase order does not change the status of a Purchase order or create any inventory transactions; it only provides a means for checking and validating shipments before accepting the order. The use of this function is determined by a business need and may not be a required process.

NOTE: A more advanced process for generating a receipts list is available in WMS functionality. See the Microsoft Dynamics AX 2009 Warehouse Management course for more information about WMS functionality.



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Scenario

For the past six weeks, all the shipments Contoso Entertainment Systems have received from one of their suppliers have been incorrect: either items are missing, or extra items have been added. To address this situation, the receiving staff has decided to print a receipts list for all purchases from this supplier, and compare the shipment to the list before accepting the shipment.

Procedure: Post a Receipts List

Follow these steps to post a Receipts list:


2. Select the Purchase order to post. 3. Click Posting > Receipts list. 4. In the Quantity field, select All. 5. Select the Print receipts list check box to print the receipts list. 6. Click OK.

If you selected the Print receipts list check box, a receipt list that contains all the ordered items to be received is printed.

FIGURE 3.9 RECEIPT LIST REPORT



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The parameter and print options and the line details are the same as described in Post a Purchase Order.

Post a Packing Slip The second to last step in updating Purchase orders is to receive the goods or services and to enter the packing slip into the system. This creates a physical inventory transaction and makes the items available. Record this transaction in the system by posting the packing slip.

If all items on a given Purchase order are received, the Purchase order Status changes to Received.

EXAMPLE: You order 60 pieces of an item. You receive and register 40 pieces and packing slip update the order. The status in the Status field is Open order. You receive the final 20 items and packing slip update the order with the remaining 20 items. The Purchase order status now changes to Received.

Procedure: Post a Purchase Order Packing Slip

To post the packing slip, follow these steps:


2. Select the Purchase order to post. 3. Click Posting > Packing slip. 4. In the Quantity field, select All. 5. Select the Print packing slip check box to print the packing slip. 6. Click OK.



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Posting Packing Slip Form

The Posting packing slip form contains two tabs:

• Parameters • Other

FIGURE 3.10 POSTING PACKING SLIP FORM

Upper Panel - Parameters Tab

In the Quantity field drop-down of the Parameters tab, select how to packing slip update the quantities for a Purchase order. The options are as follows: Receive now, All, Registered and Packing slip.

These are all described in Post a Purchase Order.



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The Posting check box determines whether posting must occur on updating. The table provides a description of the selection statuses.

Selection status Description Selected Post the packing slip.

Clear Creates a pro forma packing slip update. Use updates if you want to review the packing slip before you send it to the customer. When you perform an update no transactions are created for the Purchase order.

Specify settings in the Print options field group. The Print management option works the same as for Purchase order updating.


On the Other tab, indicate whether to use the summary update functionality. This is the same as in Purchase order update. Options included on the Other tab are:

• Check credit limit • Credit correction • Credit remaining quantity

FIGURE 3.11 POSTING PACKING SLIP FORM - UPPER PANEL - OTHER TAB

Check Credit Limit

Enter the check credit limit type and credit limits specified in Accounts payable > Vendor details > General tab, with vendors checked on Purchase order packing slip/invoice update. Select from the following options:

• None • Balance • Balance + Packing slip • Balance + All

Of these options, ‘Balance + All’ most likely offers the best obligations.



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Credit Correction and Credit Remaining Quantity

Select the Credit correction check box to display a credit note as a debit in your voucher transactions. This method is used in finance when a negative credit (debit) is used to correct an incorrectly recorded transaction.

NOTE: This kind of credit correction is also known as Storno.

If you are posting a credit note, select the Credit remaining quantity check box to keep the remaining quantity on order. If the check box is cleared, the remaining quantity is set to zero.

Lower Panel of the Posting Packing Slip Form

The lower panel of the Posting packing slip form consists of six tabs. The Fixed assets tab will not be covered in this course.

• Overview • Setup • Lines • Line details • Purchases

These tabs are used to view the details of the purchase orders and lines that will be posted.

Tab Descriptions

Overview Tab

In the Overview tab you can review the details of the Purchase order to ensure that you are processing the correct Purchase order. When you perform a packing slip update, enter the vendor's packing slip number on this tab in the Packing slip field.

Setup Tab

On the Setup tab, enter dates in the Packing slip date and the Document date fields if it differs from today's date.

Lines Tab

Select the Lines tab to ensure that the items and quantities to be posted are correct. You can also specify whether a Purchase order line must be closed for additional updates by using the Close parameter. You can only close a line if the under delivery percentage for the line allows for closing.



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Line Details Tab

View additional details such as miscellaneous charge, discount settings and other details on each item by clicking the Line details tab.

If the quantities posted on the packing slip update equal the ordered quantities, the Purchase order status will change to Received. If there is a back order on one or more items, the value in the Purchase order Status field remains at Open order.

Purchases Tab

View the name of the purchase order.

Demonstration: Close a Purchase Order Line

This demonstration shows how a Purchase order line can be closed for additional updates by using the Close parameter.

1. Create a Purchase order for 100 pieces of 1701 for vendor 2001. 2. In the Purchase order line, on the Setup tab, in the Under delivery

field, specify “60”. This means that under delivery of 60% is accepted by the system.

3. In the Receive now field on the Quantity tab enter “60”. 4. Click Inventory > Registration to register the 60 pieces. 5. Click Posting > Packing slip. 6. In the Quantity field, select Receive now. 7. In the Packing slip field, type “20”. 8. In the lower pane, click the Lines tab. In the line you want to close

for additional updates, select the Close parameter. 9. Click OK and notice that the purchase order has the status Invoiced.

Post a Purchase Order Invoice The final step in updating Purchase orders is to invoice update the Purchase order when you receive the hard copy of the invoice from the supplier.

Procedure: Post a Purchase Order Invoice

To quick-post a Purchase order invoice, follow these steps:

1. Click Accounts Payable > Purchase Order Details. 2. Select the Purchase order to post. 3. Click Posting > Invoice. 4. In the Quantity field of Posting invoice form, select All. 5. In the Invoice field, type the invoice number. 6. Click OK.



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Posting Invoice Form

The upper panel of the Posting invoice form consists of several tabs in the upper and lower pane.

FIGURE 3.12 POSTING INVOICE FORM

Upper Panel - Parameters Tab

In the Posting invoice form, the upper panel of the Parameters tab contains parameters and print options.

The Quantity field has four options. These work similar to the options for Packing slip update except for the Packing slip option. If you select Packing slip, the quantity invoice updated is the quantity that has been packing slip updated. Use this update if you only want to financially update the quantity received.

EXAMPLE: You have created a Purchase order for 50 pieces. Your supplier has delivered 20 pieces and you have packing slip updated the receipt of the 20 pieces. To keep this order financially updated, run an invoice update and select Packing slip in the Quantity field. Only the 20 received pieces are financially updated when you invoice update the order.



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Using the Packing slip option is an easy way to manage and invoice partial shipments because only the quantities that were updated to the order through the packing slip update will be picked up and brought into the posting.

Clear the Posting field to print a pro forma invoice or select the check box to financially post the invoice.

Adjust the print options in the Print options field group. Print options are the same as for the Purchase order update.


On the Other tab, specify if a credit check must be performed. The Check credit limit function works the same as described for packing slip updates.

FIGURE 3.13 POSTING INVOICE FORM - UPPER PANEL - OTHER TAB

Specify the summary update setting for purchase invoices. The Summary update function is especially useful, from a sales administration point of view, because it enables you to summarize orders in the system according to the way that you invoiced those orders.

EXAMPLE: A vendor sends you one invoice a month to cover for the multiple deliveries and purchase orders. By using the summary update functionality, you can update all Purchase orders at the same time instead of processing them individually.

Lower Panel - Overview and Setup Tabs

The lower panel of the Post invoice dialog box consists of two tabs: Overview and Setup.

Overview

On the lower panel, review the detail on the Overview tab to ensure that you are processing the correct Purchase order. Also use this tab to enter the vendor invoice number.

Setup

Enter information for use on the payment proposal generated by this update. The payment proposal is used when you process payments.



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The fields that are present on this tab are described in the following table.

FIGURE 3.14 POSTING INVOICE FORM - LOWER PANEL - SETUP TAB

Lower Panel - Fields on the Setup Tab

The Setup tab contain several fields:

• Posting Date: This is the transaction date for posting the invoice in the Ledger. It is used to calculate both the Due date and the Cash discount date, unless you fill in the Document date field.

• Approved: When selected, this means the invoice has been approved. This field is copied to the Accounts payable transaction. Only approved transactions are included in the calculation of the payment proposal.

• Approved By: This indicates who approved the invoice, as identified by their log on ID.

EXAMPLE: In some companies, approval limits are put on certain employees or employee roles; purchases more than 5,000.00 USD, for example. Therefore, invoices more than 5,000.00 USD will have to be approved by another employee who, based on business practices, becomes the approver. The approver's initials are included in this field.

• Method of Payment: Use this to specify the method of payment for

the vendor payment proposal. • Payment Specification: Use this to specify payment handling for

the current method of payment. • Payment ID: The payment identification used for the payment of

invoices. • Bank Account: Specify the bank account to which the vendor wants

you to send the payment for the order. The bank account ID is usually specified on the invoice that the vendor sends to your company.



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Specify the bank account on the vendor and the bank account details are automatically transferred to the Purchase order.

• Document Date: Specify the date the invoice was received. If you

complete this field, the date entered will be used for calculating the due date and cash discount date.

• Due Date: Enter a due date to delimit the transactions in the proposal. Enter a different due date if the due date for payment differs from that specified in the regular terms of payment with the vendor for the Purchase order. This functionality helps if you want to bypass the standard due date calculation that was set up.

EXAMPLE: The purchaser has negotiated a special payment date for 100 pieces of an item with a vendor at the end of the next month. As this differs from the standard terms of payment of Current month+ 15 days that Contoso Entertainment Systems has with the vendor, the new due date must be entered in this field.

• Fixed Rate: Select this field to indicate that a fixed exchange rate

must be used. • Exchange Rate: Specify an exchange rate for the invoice currency.

This is editable only if you are by using a Fixed exchange rate instead of the system exchange rate.

Purchase Order Invoice Posting and Status

If the quantities posted on the invoice update equal the ordered quantities, the Purchase order status in the Status field changes to Invoiced. If there is a back order for one or more items, the Purchase order status remains Open order or Received.

NOTE: To delete Purchase orders or Purchase order lines, or both, after complete invoicing in Accounts payable > Setup > Parameters > Updates tab, select one or both of the following parameters: • Delete Purchase order line invoiced in total • Delete purchase after invoicing

Post an Invoice Based on a Packing Slip

You can create a Purchase order invoice based on the packing slip line items that have been received to date, even if all the items for a particular Purchase order have not yet been received. You might do this, for example, if your supplier sends one invoice for each month that covers all the deliveries that they ship during that month. Each packing slip represents a partial or complete delivery of the items on the Purchase order.



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When you post the invoice, the Invoice remainder quantity for each item is updated with the total of the received quantities from the selected packing slips. If both the Invoice remainder quantity and the Deliver remainder quantity for all items on the Purchase order are zero, the status of the Purchase order changes to Invoiced. If the Invoice remainder quantity is not zero, the status of the Purchase order is unchanged and additional invoices can be entered for it.

Procedure: Post and Print a Purchase Order Invoice Based on Packing Slips and Date

This procedure assumes that at least one packing slip has been posted for the Purchase order. The Purchase order invoice is based on these packing slips and reflects the quantities from them. The financial information for the invoice is based on the information that is entered when you post the invoice.

1. Click Accounts payable > Purchase Order Details. 2. Select one or more Purchase orders that have had packing slips

posted for them. 3. Click Posting > Invoice. 4. In the Quantity field, select Packing slip. 5. Select the Posting check box. 6. Make selections in the Print options field group as needed. 7. On the Overview tab of the lower pane, select an invoice line and

examine the Packing slip field. If an asterisk (*) is shown, multiple packing slips have been posted for this Purchase order.

8. Click the Select packing slip button, and review the list of packing slips in the upper pane Overview tab. By default, all posted packing slips for the Purchase order are included on the invoice. If the invoice you received from your vendor does not include some packing slips, clear the Include check box for those packing slips.

9. Click OK to close the Select packing slip form. 10. In the Invoice field on the Overview tab, enter the identifier of the

invoice that you received from your vendor. 11. Click the Packing slip tab and verify that the values in the Purchase

quantity and Quantity fields are correct. 12. Repeat steps 7 through 12 for additional Purchase orders, if it is

necessary. 13. Click OK. The Purchase order invoices are posted and printed. 14. In the Purchase order form, you can view the status of the Purchase

orders in the upper Overview tab. (Click Advanced to view the upper pane grid, if it is necessary.) In the lower Lines tab, select a line and then click the Quantity tab to view quantity information.



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Periodic Purchase Order Update

The Procedure: Post and Print a Purchase Order Invoice Based on Packing Slips and Dates can also be completed from the Invoice purchase update periodic job that is opened through Accounts payable > Periodic > Purchase order update. This procedure assumes that at least one packing slip has been posted for the Purchase orders that are invoiced by using the periodic job. The financial information for the invoices is based on the information that is provided when you enter and post the invoices.



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Lab 3.4 - Post a Purchase Order Contoso Entertainments System - Company CEU

Scenario

You are the new purchasing clerk for Contoso Entertainment Systems and you are entering Purchase orders based on verbal requests. In five of the Purchase orders, you notice that the orders are with two vendors. Because one of your goals is to issue as few purchase invoices as possible, you summary update the orders by vendor.

The Purchase orders are as follows:

• Three Purchase orders with Vendor account 2001, each for five pieces of item number 1701.

• Two Purchase orders with Vendor account 2002, each for five pieces of item number 1701.

Challenge Yourself!

1. Setup the parameters to support automatic summary update on the accounts payable parameters and the vendors.

2. Create the five purchase orders. 3. Purchase order update the five Purchase orders that you have created

so that the Purchase order reports summarize the order by vendor.

Need a Little Help?

1. Set up the Accounts payable Parameters from Accounts payable > Setup > Parameters > Summary update tab.

2. Set up the Vendor(s) by using the Setup button in the Vendors form. 3. Create the purchase orders and mark them before posting the

purchase orders.

HINT: Remove the default order settings on item number 1701 if you want to avoid a warning each time you enter “5” in the Quantity field of the purchase order line.

Step by Step

1. Click Accounts payable > Setup Parameters Summary update tab.

2. In the Default values for summary update field, click Automatic summary.

3. In the Order acceptance tolerance field, ensure that Accept is selected and then close the form.



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4. Click Accounts payable > Vendor details, and select Vendor account 2001.

5. Click Setup > Summary updates. 6. On the Purchase order, Packing slip, Receipts list, and Invoice lines,

select the Automatic summary check box. 7. Repeat steps 5 and 6 for Vendor account 2002. 8. Click Accounts payable > Purchase Order Details. 9. Press CTRL+N to create a new Purchase order. 10. Select Vendor account 2001. 11. Click Yes in response to the prompt to transfer vendor information. 12. Click OK. 13. Select 1701 in the Item number field. 14. Type “5” in the Quantity field.

NOTE: If you have not removed the default order settings for item number 1701, you will receive a warning. Click No to override the default order settings and approve an order quantity of 5.

15. Tab off the field. 16. Repeat steps 9 through 15 for the remaining Purchase orders, by

using the Vendor account 2002 for two of them. 17. Press SHIFT and then click the Purchase orders you just created, and

then click Posting > Purchase order. 18. On the Parameters tab, in the Quantity field, select All. 19. Select the Posting check box. 20. Select the Print purchase order check box. 21. Click OK. 22. Close the report form. Two reports are generated, one for each

invoice account.



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Accounts Payable Invoice Matching Accounts payable invoice matching is the process of matching the vendor invoice, Purchase order, and packing slip information. Vendor invoices are frequently based on packing slips that represent actual shipments, instead of Purchase orders. Sometimes the invoiced amounts do not match the Purchase order amounts, and sometimes the shipped quantities do not match the invoiced quantities.

To manage this information, Microsoft Dynamics AX 2009 enables you to do the following :

• Create an accounts payable invoice based on packing slips. Packing slips are automatically suggested for invoicing, and you can select which packing slips to use. You can also select specific packing slip line items from multiple Purchase orders, if it is necessary.

• Enter and save an invoice before a shipment arrives. After the packing slip that represents the shipment arrives, you can match the appropriate packing slip lines to the invoice lines.

• View and approve quantity differences between the invoiced quantity on the invoice and the received quantity on the packing slip. If there is a difference, you can save the invoice and then later match it to a different packing slip or change the invoice quantity to match the received quantity.

• Enter invoice amounts that were not included on the original Purchase order so that the invoice information matches the invoice vendor's.

• Compare the miscellaneous charges for Purchase orders with the miscellaneous charges for invoices. If it is necessary, you can add miscellaneous charges to invoices and allocate them to invoice lines.

• View and approve price match discrepancies between the invoice net unit price and the Purchase order net unit price. You can set up price tolerance percentages for companies, vendors, and items. If the vendor invoice line price is not within the acceptable price tolerance, you can save the invoice until it is approved for posting, or until you receive a correction from the vendor.

Example: Accounts Payable Invoice Matching

Alicia, the Purchasing agent, enters a Purchase order with one line item for one thousand batteries at a price of 1.00 U.S. dollar (USD) each. The Purchase order is approved and submitted to the vendor. The vendor ships one thousand batteries, and a packing slip is entered for one thousand batteries at a price of 1.00 USD each.



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An invoice arrives for one thousand batteries at a price of 1.10 USD each. The company policy allows a five percent price tolerance for this category of item. A price of 1.05 USD may be acceptable, but 1.10 USD is not. When the invoice information is entered, Microsoft Dynamics™ AX 2009 identifies that there is a price matching discrepancy and the invoice can be saved until the difference is resolved.

Set Up Accounts Payable for Invoice Matching

To set up Accounts payable parameters for invoice matching follow these steps:

1. Click Accounts payable > Setup > Parameters. 2. On the Updates tab, under the Invoice matching field group, select

the Use invoice matching for this company check box. 3. In the Post invoice match discrepancies field, select to require

approval before posting an invoice that contains invoice matching discrepancies.

4. In the Display price match icon field, select to display an icon only if there is a positive invoice matching discrepancy, or to display an icon if there is either a positive or negative invoice matching discrepancy.

Price Tolerance

Price tolerance information can be set up for all items, for item price tolerance groups, or for individual items.



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The figure, Item Price Tolerance Groups, is an example of a price tolerance group setup in Microsoft Dynamics AX 2009.

FIGURE 3.15 ITEM PRICE TOLERANCE GROUPS

Procedure: Set Up Item Tolerance Information

To set up item price tolerances by group, first the item price tolerance groups must be created and then each item must be assigned to the appropriate group.

1. Click Inventory management > Setup > Price/Discount > Item price tolerance groups.

2. Press CTRL+N to create a new item price tolerance group. 3. Enter an identifier for the item price tolerance group and a name. 4. Close the Item price tolerance group form. 5. Click Inventory management > Item details. 6. Select an item. 7. On the General tab, select an item price tolerance group.

Procedure: Set Up Vendor Price Tolerance Information

Price tolerance information can be set up for all vendors in your company, for vendor price tolerance groups or for individual vendors. To set up vendor price tolerances by group, the vendor price tolerance groups must first be created and then each vendor can be assigned to the appropriate group.

1. Click Accounts payable > Setup > Price/Discount > Vendor price tolerance groups.

2. Press CTRL+N to create a new vendor price tolerance group. 3. Enter an identifier for the vendor price tolerance group and a name.



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4. Close the Vendor price tolerance group form. 5. Click Accounts payable > Vendors. 6. Select a vendor. 7. On the General tab, select a vendor price tolerance group.

Set Up Price Tolerance Percentages

Price tolerance percentages can be set up for your company, items, and vendors. When vendor invoices are compared with Purchase order information, Microsoft Dynamics AX 2009 searches for the applicable price tolerance percentage in the order indicated in the following table.

Item code Account code Table Table

Table Group

Table All

Group Table

Group Group

Group All

All Table

All Group

All All

The default company price tolerance is zero percent and is applied to all items and all accounts (All, All). You cannot delete the default company price tolerance record.

Example: Price Tolerance Percentage

You might set up the following price tolerance percentage records.

Item code

Item relation

Account code

Account relation

Price tolerance percentage

Notes

All All 1% This percentage applies to all items and all vendors, unless one of the other scenarios applies. This is the company price tolerance percentage.



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Item code

Item relation

Account code

Account relation

Price tolerance percentage

Notes

Table Battery All 1% This percentage applies to the Battery item from all vendors.

All Group 10 percent 10% This percentage applies to vendors who are assigned to the “ten percent” group, and All items.

Procedure: Set Up a New Price Tolerance

To set up a new price tolerance, follow these steps:

1. Click Accounts payable > Setup > Price/Discount > Price tolerance setup.

2. In the first row, you can change the default company price tolerance. 3. Press CTRL+N to create a new price tolerance percentage. 4. Enter information about the item and vendor combination to which

the price tolerance applies, and the price tolerance percentage.

NOTE: You cannot enter a negative price tolerance percentage. By default, Microsoft Dynamics AX 2009 enables negative price discrepancies. To track negative price tolerance percentages, select “If line prices are greater than or less than allowed tolerance” in the Display price match icon field in the Parameters form.

Posting Invoice Form

To record the receipt of vendor invoices and match against received quantities, use the Posting invoice form. If it is necessary, you can use the Invoice matching details form to view, correct, and approve invoice lines with matching discrepancies for posting.



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Posting Invoice Form - Overview Tab

FIGURE 3.16 POSTING INVOICE FORM

On the Overview tab, the columns shown in the following table are associated with the Invoice matching feature.

Column Description Packing slip The packing slip that is associated with the invoice. If

multiple packing slips are associated, an asterisk (*) is displayed.

On hold If selected, indicates that the invoice can be saved but not posted. For example, if there is a problem with the invoice, you might put it on hold while you contact the vendor and resolve the problem. When this check box is selected, the status of the invoice changes to Pending. NOTE: If the invoice has no line items, it is not saved, even if this check box is selected.

Status The status of the purchase invoice. • New: The invoice document has been created. • Pending: The invoice document has been saved or

put on hold but not posted.



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Column Description Match variance Displays a check mark if the variance between the

invoice net unit price and the Purchase order net unit price is within allowed tolerances for lines on the invoice, and if the invoice quantity and the packing slip quantity is equal for all lines on the invoice. Displays a warning icon if matching discrepancies exist; that is, if the price variance exceeds the allowed tolerance, or if the invoice quantity and packing slip quantity are different for one or more lines on the invoice. To view detailed information, click Matching details. This field is available only if the Use invoice matching for this company check box is selected in the Accounts payable parameters form.

Posting Invoice Form - Packing Slip Information

The packing slip number is displayed on the Overview tab and on the Packing slip tab, additional information about quantity is displayed.

On the Lines tab, the two fields shown in the table present information about the difference between the packing slip and the invoice lines.

Fields Description Packing slip quantity match

Displays a check mark if the invoice quantity and the packing slip quantity are equal for the selected line. Displays a warning icon if the invoice quantity and packing slip quantity are different for the selected line. To view detailed information, click Matching details. This field is blank if the invoice line quantity is positive, the Receiving requirements check box for the item's inventory model group is cleared, and the invoice line is not connected to any packing slips. This field is blank if the invoice line quantity is negative, the Deduction requirements check box for the item's inventory model group is cleared, and the invoice line is not connected to any packing slips.

Price match Displays a check mark if the variance between the invoice net unit price and the Purchase order net unit price is within allowed tolerances for the selected line. Displays a warning icon if the price variance exceeds the allowed tolerance for the selected line. To view detailed information, click Matching details.



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NOTE: Microsoft Dynamics® AX 2009 does not match packing slips automatically unless Packing slip is selected in the Quantity field on the Posting invoice form.

Match Packing Slip to Invoice Form

When you click the Packing slips button, the Match packing slips to invoice form opens.

FIGURE 3.17 MATCH PACKING SLIP TO INVOICE FORM

The form displays all the lines items to the current invoice and from here you can match packing slips to the invoice you are working with.

1. In the Match packing slips to invoice form, select the Match check box for the packing slips to match with the invoice line items.

2. Or, click the Match all lines or Match all packing slips buttons to match all packing slips to the invoice.

3. Click OK to save the changes and return to the Posting invoice form.



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Record the Receipt of Vendor Invoices and Match against Received Quantities

When you receive an invoice from a vendor for goods or services on a Purchase order, your business processes might require that the goods or services be received before the invoice can be approved for payment.

Use the Posting invoice form to enter invoice information. If it is necessary, you can use the Invoice matching details form to view, correct, and approve invoice lines with matching differences for posting.

The Invoice matching details form is opened by clicking the Matching details button on the Posting invoice form. The Invoice matching details form displays all lines for the current invoice. For the line selected in the upper pane matching information on Price, Quantity, and Invoice totals is available.

If Require approval is selected in the Post invoice match discrepancies field in the Accounts payable parameters form, another field group is available for the approver. The authorized approver can select the Approve posting with matching discrepancies check box to approve the invoice for posting and enter a comment if necessary.

In the Posting invoice form, a check mark in the Variance approved column is displayed. Therefore, the variance for the specific invoice line is approved. If the column is blank, the variance for the line has not yet been approved.

NOTE: If the Matching details button is not available, you do not have access to the Invoice matching details form. In the Posting invoice form, you can select the On hold check box to save your work.

Resolve Invoice Matching Discrepancies

The information from the Invoice matching details form can be used to determine and resolve common types of price variances and quantity variances. This is collectively known as matching discrepancies.

After identifying the discrepancy, you may have to contact your vendor if you believe that the information on the invoice is incorrect. Depending on the resulting agreement with your vendor, you can do any of the following tasks:

• Accept the price difference and post the invoice with matching discrepancies

• Revise the invoice amount to the expected amount and post the invoice

• Request a full credit from the vendor and a new corrected invoice



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Resolve Price Variances

If the invoice net unit price exceeds the Purchase order net unit price by an amount that exceeds the allowed price tolerance, a price variance exists. The price variance might be because of different prices for each unit, purchase price units, line item discounts, miscellaneous charges that are allocated to the invoice lines, or a combination of these factors.

Procedure: Resolve a Price Variance

To resolve price variances, follow these steps:

1. Click Accounts payable > Purchase Order Details. 2. Select a Purchase order that has a pending (saved) invoice. 3. Click Posting > Invoice. The Posting invoice form opens. 4. Click Matching details. 5. Select an invoice line for which a warning icon is displayed. 6. Review the information in the Price field group. 7. To accept the price difference and post the invoice with matching

discrepancies, select the Approve posting with matching discrepancies check box, enter a comment, and then click OK.

8. To revise the invoice amount to the expected amount, change the amounts in the Invoice column to match the amounts in the Purchase order column, and then click OK.

9. In the Posting invoice form, on the Overview tab, clear the On hold check box.

10. On the Parameters tab, select the Posting check box. 11. Click OK to post the invoice, or you can submit the invoice to be

posted by using batch processing.

NOTE: If the Post invoice match discrepancies field in the Accounts payable parameters form is set to Allow with warning, these fields are not available and you must skip step 7.

Resolve Quantity Variances

If the Receiving requirements check box is selected for an item's inventory model group, a packing slip must be posted before an invoice can be posted for the corresponding line item. Also, the Update quantity on the packing slip line must equal the Update quantity on the invoice line.

Procedure: Resolve a Quantity Variance

To resolve quantity variances, follow these steps:

1. Click Accounts payable > Purchase Order Details. 2. Select a Purchase order that has a pending (saved) invoice.



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3. Click Posting > Invoice. The Posting invoice form opens. 4. Click Matching details. 5. Select an invoice line for which a warning icon is displayed. 6. Review the information in the Quantity field group. 7. To accept the quantity difference and post the invoice with matching

discrepancies, select the Approve posting with matching discrepancies check box, enter a comment, and then click OK.

NOTE: If the Receiving requirements check box is selected for the item's inventory model group, and if the packing slip quantity is less than the invoice quantity, the invoice cannot be posted even if it is approved.

Procedure: Revise Packing Slip Quantity to Match Invoice Quantity

To revise the packing slip quantity to match the invoice quantity, follow these steps:

1. Click the Total packing slip matched ellipsis button. 2. Select a different packing slip that has the correct quantity for the

invoice line, and close the form. 3. Click OK to close the Invoice matching details form.

Procedure: Revise Invoice Quantity to Match Packing Slip Quantity

To revise the invoice quantity to match the packing slip quantity, follow these steps:

1. Note the quantity in the Total packing slip matched field. 2. Click OK to close the Invoice matching details form. 3. In the Posting invoice form, click the Lines tab. 4. Select an invoice line and change the quantity in the Update field. 5. On the Overview tab, clear the On hold check box. 6. On the Parameters tab, select the Posting check box. 7. Click OK to post the invoice.



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Purchase Order Financial Posting Users can set up General ledger account numbers for the automatic ledger transactions generated for receipt and issues of inventory. You may specify whether the account must be used for a specific item, for an item group, or for all items.

Inventory Posting Profile - Purchase Order

Posting profile setup is important when you determine how the system handles ledger posting when an inventory transaction is posted. Posting profiles are set up in Inventory management > Setup > Posting > Posting or in the Item group by Item group.

FIGURE 3.18 INVENTORY POSTING PROFILE - PURCHASE ORDER TAB

Microsoft Dynamics AX 2009 lets you set up general posting rules for all items, accounts, and sales tax codes. You can define primary posting in Accounts payable Parameters for receipt and discounts.



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Inventory Posting Profile - Posting Hierarchy

Microsoft Dynamics AX 2009 searches for an item in a hierarchy. In the Item code field, select from:

• Table: This is the highest in the hierarchy. By selecting Table, the posting in the ledger only applies to a specific item number.

• Group: If selected, the posting in the ledger only applies to a particular item group.

• All: If selected, every transaction is posted for all item numbers in the same account in the ledger. The first matching account will be used for posting.

You can specify a Vendor group in the Account relation field and add it to the posting hierarchy.

Based on your type of business , you must decide which accounts must be set up.

Purchase Order Packing Slip Posting

When Purchase orders are packing slip updated and inventory is received, and then transactions based on the item's cost as recorded in the purchase line are generated in the Packing slip account, and the Packing slip offset account.

For this posting to occur, you must select certain parameters:

• Post physical inventory parameter in the item's inventory model group.

• Post packing slip in ledger in Accounts payable > Setup > Parameters > Updates tab.



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Example: Purchase Order Posting

The following diagram, Purchase Order Posting Example, shows Purchase order posting activity in Microsoft Dynamics® AX 2009.

FIGURE 3.19 PURCHASE ORDER POSTING EXAMPLE

This is a receipt scenario. When you packing slip update the Purchase order the packing slip account is debited and the packing slip offset account is credited. When the Purchase order is invoiced the last posting is reversed and the inventory receipt account is debited and the accounts payable is credited.



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Purchase Order Discount Posting If an account is specified in the Discount account, the purchase posts before the line discount is deducted, and the line discount is credited in the separate account for discounts.

If no account is specified for the line discount, the inventory receipt is posted after the line discount is deducted, and the latter is not recorded directly in a ledger account.

FIGURE 3.20 PURCHASE ORDER DISCOUNT POSTING

Purchase Order Consumption Account Posting

The Consumption account is used for credit notes and purchases if you have cleared the Post financial inventory field.

FIGURE 3.21 PURCHASE ORDER CONSUMPTION ACCOUNT POSTING



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BEST PRACTICE: Clear the Post financial inventory and Post physical inventory parameters for a Service item type to use the Consumption account.

Receipt Account Posting

The receipt accounts, also known as Inventory accounts, are used to post inventory. For items using fixed receipt price, the item's adjustment of price on receipt is debited through the following accounts:

• Fixed receipt price profit • Fixed receipt price loss • Fixed receipt price offset

Any tax is debited in the Tax code account and item purchases, including tax, are credited to the Vendor summary account according to the setup in the supplier's Posting profile.

Standard Cost Posting

For items using a standard cost Costing method, transactions are made based on the current active cost. The difference between the actual cost and the current active cost is posted to the Purchase price variance account that is set up on the Standard cost variance tab on the Posting profile.

Learn more about Costing methods in the Microsoft Dynamics AX 2009 Costing and Inventory Valuation course.

Charge and Stock Variation

Charge and Stock variation enables you to post stock movement through a profit and loss account before capitalizing it in inventory. This offers the benefit of having a footprint in the profit and loss account of the stock variation occurring during a fiscal period.

Packing Slip Purchase, Purchase Offset and Tax

When you use the Packing slip purchase, Packing slip purchase offset, and Packing slip tax posting types to accrue vendors’ receipts, eventually the projected tax will be separated from received and not yet invoiced.



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Summary Purchase Orders and Purchase Order Posting reviewed how to use the basic Purchase order functionality and how to perform posting updates to Purchase orders through all the posting updates. The following areas were covered:

• Creating Purchase orders. • Setting up parameter settings for Purchase orders. • Using the Multiple ship to function for Purchase orders. • Using the Accounts payable invoice matching function for Purchase

orders. • Applying Purchase order updates and the various posting options

when you update the Purchase order. • Using Ledger integration and the different account types that you can

post to when you perform posting.

Learning about Purchase orders and Purchase order posting helps you create basic Purchase orders in Microsoft Dynamics AX 2009. Additionally, learning about the more advanced purchase features helps to:

• Set up multiple receipt addresses for orders. • Perform Purchase order invoice matching and solving discrepancies

when they occur. • Control what is posted and when. • Optimize the number of updates you have to perform.

Additionally, learning about how posting integrates to the ledger helps you determine how item transactions are posted, the account types that are used and how the specific setup of accounts affects how the business records revenue and costs.



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Test Your Knowledge Test your knowledge with the following questions.

1. In which module(s) are Sales and Purchase order posting profiles set up?

2. Sales order and Purchase order posting is set up based on what hierarchy?

3. What is the purpose of the Sales and Purchase Posting profiles?



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4. Name five of the accounts you can set up in Purchase order posting profile setup.

5. What does it mean to Packing slip update a Purchase Order?

6. What must you select in the Quantity field of the Posting invoice form to match packing slips automatically in Microsoft Dynamics® AX 2009?

( ) All ( ) Receive now ( ) Registered ( ) Packing slip



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7. What are the receipt accounts also known as?



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Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter:

1.

2.

3.



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Solutions Test Your Knowledge

1. In which module(s) are Sales and Purchase order posting profiles set up?

MODEL ANSWER - Inventory management

2. Sales order and Purchase order posting is set up based on what hierarchy?

MODEL ANSWER - Item, Table Item group, Group All items, All

3. What is the purpose of the Sales and Purchase Posting profiles?

MODEL ANSWER - These determine how the system handles ledger

posting when an inventory transaction is posted.

4. Name five of the accounts you can set up in Purchase order posting profile setup.

MODEL ANSWER - Packing Slip, Packing Slip Offset, Receipt,

Consumption, Discount, Standard cost profit, Standard loss, Standard cost

price offset, Charge, Stock Variation, Packing Slip Purchase, Packing Slip

Purchase Offset, Packing Slip Tax

5. What does it mean to Packing slip update a Purchase Order?

MODEL ANSWER - Inventory is received and physically updated.

6. What must you select in the Quantity field of the Posting invoice form to match packing slips automatically in Microsoft Dynamics® AX 2009?

( ) All ( ) Receive now ( ) Registered (•) Packing slip



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7. What are the receipt accounts also known as?

MODEL ANSWER - Inventory accounts.


AX2009_ENUS_TL1_03

Documents

contoso entertainment

current services

cash flow

fixed exchange

fixed assets

accounts payable

purchase order

purchase order