Purchase order creation and demand consolidation rule (form) [AX 2012]

Updated: March 30, 2011

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Click Procurement and sourcing > Setup > Policies > Purchasing policies. On the Purchasing policies list page, open an existing purchasing policy from the list or create a new purchasing policy. In the Purchasing policy form, on the Policy rules FastTab, in the Policy rule type: list, select the Purchase order creation and demand consolidation rule and then click the Create policy rule button.

Use this form to define the policy rules to use when a purchase order is generated from an approved purchase requisition. You can define criteria for when to split purchase requisition lines onto separate purchase orders. You can identify price tolerance rules to route approved purchase requisitions back through the review process when the price of a procurement catalog item increases. You can also define the criteria for when purchase orders can be created automatically or manually and which purchase requisitions can be considered for purchase requisition consolidation.

The following tables provide descriptions for the controls in this form.

Tab

Description

General

Enter the date range during which the policy rule is valid.

Purchase order split

Set additional criteria for when to split purchase requisition lines to separate purchase orders when the requester, line type, or procurement category differs from the other purchase requisition lines on selected purchase requisitions. The settings on this tab apply to manual and automated purchase order creation.

NoteNote

A separate purchase order is automatically created when the legal entity, vendor, or currency differs on the purchase requisition lines.

Price tolerance

Set the maximum amount that the price on a purchase requisition line item can increase between the time the requisition is approved and the time the purchase order is created. Purchase orders are not created for purchase requisition lines that exceed the price tolerance. Instead, the purchase requisition lines are processed by using the settings on the Error processing tab.

NoteNote

These settings only apply to internal catalog line items that have not been included in either a request for quotation or demand consolidation.

Error processing

Configure the processing rule that applies when a purchase requisition fails validation because of a vendor error or price tolerance error.

Manual purchase order creation

Define the parameters that determine whether a purchase requisition must be manually processed, or if it can be automatically converted into a purchase order.

Demand consolidation

Define the parameters that determine whether purchase requisitions that are manually processed can be considered for purchase requisition consolidation.

Button

Description

Add

Add procurement categories or vendors to identify the approved purchase requisitions that are held for manual processing and demand consolidation.

Delete

Remove procurement categories or vendors that are no longer used to identify the approved purchase requisitions that are held for manual processing and demand consolidation.

Field

Description

Effective date

Enter the date on which the purchase order creation and demand consolidation policy rule becomes valid.

Expiration date

Enter the date on which the purchase order creation and demand consolidation policy rule is no longer valid.

Requesters

Select the check box to indicate that separate purchase orders must be created when the requester name is different on purchase requisition lines.

Line types

Select the check box to indicate that separate purchase orders must be created when the line type is different on purchase requisition lines.

Procurement categories

Select the check box to indicate that separate purchase orders must be created when the procurement category is different on purchase requisition lines.

Percentage

Select the check box and enter the maximum percentage that the net amount of a purchase requisition line item can increase and still pass validation. If the price of a requisition line item increases by an amount that is greater than or equal to this percentage after the requisition line has been approved, the requisition line is processed by using the settings on the Error processing tab.

NoteNote

This setting applies only to internal catalog line items that have not been included in a request for quotation or demand consolidation.

Amount

Select the check box and enter the maximum amount that the net amount of a purchase requisition line item can increase and still pass validation. You must also select the currency for the amount. If the price of a requisition line item increases by an amount that is greater than or equal to this amount after the requisition line has been approved, the requisition line is processed by using the settings on the Error processing tab.

NoteNote

This setting applies only to internal catalog line items that have not been included in a request for quotation or demand consolidation.

No action

Select this option if you want purchase requisition lines that have failed validation because of either a vendor error or price tolerance error during the purchase order creation process to remain in the Release approved purchase requisitions form. The purchase requisition line status remains at Approved, but the errors must be resolved before a purchase order can be generated for the purchase requisition lines.

Cancel the purchase requisition line

Select this option if you want to cancel the purchase requisition lines that failed validation because of either a vendor error or price tolerance error that occurred during the purchase order creation process.

Create a new purchase requisition line

Select this option if you want to cancel the purchase requisition lines that failed validation because of either a vendor error or price tolerance error that occurred during the purchase order creation process. New purchase requisitions are created for the failed purchase requisition lines. When the new purchase requisitions are created, they have a status of Draft and can be resubmitted for review after the validation errors are resolved. The preparer for the purchase requisition lines is notified that the lines are canceled and that new purchase requisitions have been created for the failed purchase requisition lines.

Manually create purchase orders

Select this option to manually create purchase orders for all approved purchase requisitions.

Automatically create purchase orders

Select this option to automatically create purchase orders for all approved purchase requisitions. No purchase requisitions will be held for manual purchase order creation.

Automatically create purchase orders except under these conditions

Select this option to manually create purchase orders for purchase requisitions that match the criteria that you define. All other approved purchase requisitions will automatically be converted to purchase orders.

Run automatic purchase order creation as a batch job

Select this check box if you want to automatically create purchase orders from approved purchase requisitions when the batch purchase order generation job is run. This setting applies only to purchase requisitions that do not require manual processing. You can run the automatic purchase order generation as a batch job. This allows you to schedule this activity at a time when resources are less constrained.

When the requisition is set up for prepayment

Select this check box if you want to hold approved purchase requisitions for manual processing when the Prepayment required check box is selected on the purchase requisition lines. Purchase requisitions that are held for manual processing can be filtered to display only those purchase requisition lines that require prepayment.

NoteNote

After the prepayment purchase order is created for the purchase requisition line and it is invoiced, a prepayment journal voucher is created. For more information about prepayments and the prepayment journal vouchers, see About prepayments and prepayment journal vouchers.

Manual purchase order creation

All

Select this option if you want to manually create purchase orders for purchase requisition lines that have the selected line type.

Manual purchase order creation

None

Select this option if you do not have any specific conditions to set for manual purchase order creation for the selected line type.

Manual purchase order creation

Under specific conditions

Select this option to manually create purchase orders for purchase requisition lines that match the criteria that you define for the selected line type. All other approved purchase requisitions will automatically be converted to purchase orders.

NoteNote

Any purchase requisition lines that meet the criteria that were defined for either manual purchase order creation or demand consolidation will be held for manual processing.

Do not allow demand consolidation

Select this option if demand consolidation is not allowed for any approved purchase requisition line. This option is selected by default and it only applies to purchase requisition lines that require manual processing for purchase order creation.

Always allow demand consolidation

Select this option if all approved purchase requisition lines are eligible for demand consolidation.

ImportantImportant

If you select the Always allow demand consolidation option on the Demand consolidation tab but select the Automatically create purchase orders option on the Manual purchase order creation tab, all purchase requisitions will be held for manual processing.

Allow demand consolidation under these conditions

Select this option to set the conditions under which demand consolidation is allowed for approved purchase requisition lines. You can set the criteria by procurement category and vendor for each purchase requisition line type.

Demand consolidation

All

Select this option to allow demand consolidation for all approved purchase requisition lines for the selected line type. Selecting this option overrides the setting that you defined on the Manual purchase order creation tab for the selected line type. All purchase requisition lines for this line type will be held for manual processing.

Demand consolidation

None

Select this option if demand consolidation is not allowed for the selected line type. This option is selected by default.

Demand consolidation

Under specific conditions

Select this option to define the conditions under which demand consolidation is allowed for the line type. You can set the criteria by procurement category and vendor for each purchase requisition line type.

NoteNote

Any purchase requisition lines that meet the criteria that are defined for either manual purchase order creation or demand consolidation will be held for manual processing. However, only those purchase requisition lines that meet the criteria that you define for demand consolidation are eligible for demand consolidation.

Category

Select the procurement category in which manual purchase order processing or demand consolidation applies. When you select a procurement category, any subcategories that are defined for the category are also selected. Approved requisitions that contain this category or any of its subcategories are held for manual processing. The purchase requisition line is eligible for demand consolidation if the category is selected on the Demand consolidation tab.

Legal entity

Select the legal entity that is assigned to the vendors to which manual purchase order processing or demand consolidation applies. The legal entity is used as a filter for the vendor list that is displayed on the Manual purchase order creation and Demand consolidation tabs.

Vendor account

Select a vendor account in the legal entity that you selected. When an approved purchase requisition line includes the vendor that you select, the purchase requisition line is held for manual processing, if the vendor is selected on the Manual purchase order creation tab. The purchase requisition line is eligible for demand consolidation if the vendor is selected on the Demand consolidation tab.


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