Key tasks: Manage signing-limit policies

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

A key element of financial risk management for organizations is managing expenditure. Managing expenditure includes strengthening internal controls and making sure that workers comply with these controls. Signing limits are an important part of expenditure controls and compliance.

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Create a signing limit policy

Define default signing limit rules

Define a limit agreement rule

Define exceptions to a limit agreement rule

Define a limit currency rule

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About signing limit setup

Create a signing limit policy

1. Click Organization administration > Setup > Signing limits > Signing limit policies. On the Action Pane, in the New group, click Policy.

2. On the General FastTab, enter a name and description for the signing limit policy.

3. On the Policy organizations FastTab, in the Select organization hierarchy field, select an organization hierarchy.

   Note

   A policy can apply to nodes in only one organization hierarchy. You cannot add nodes to the policy for one organization hierarchy and the select another organization hierarchy and add nodes from that one.

4. In the Available organization nodes: list, select the organization nodes that the signing limit policy applies to.

The next steps for creating a signing-limit policy are performed on the Policy rules FastTab, where you define the rules for the signing limit policy. You can set up rules for the following policy rule types:

• Default signing limit

• Limit agreement

• Limit currency

The following procedures outline how to set up rules for each signing limit policy rule type.

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Define default signing limit rules

Default signing limit rules specify the spending and approval limits for each document type and each job or compensation level.

1. Click Organization administration > Setup > Signing limits > Signing limit policies. On the Action Pane, in the New group, click Policy.

2. On the Policy rules FastTab, in the Policy rule type: list, click Default signing limit.

3. Under Policy rules, click the Create policy rule button.

4. In the Default signing limit rule details form, enter the effective date and expiration date for the default rule, and then click New.

5. For each document type and job or compensation level, specify the default approval and spending limits. You can select multiple jobs or compensation levels when you create a default signing limit amount for a document type. This lets you create a single entry for all jobs or compensation levels that have the same default spending and approval amounts.

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Define a limit agreement rule

Limit agreements define the fiduciary responsibilities of the employee when the employee makes corporate purchases or approves expenses for business-related activities. When you create a limit agreement rule, you specify the agreements that the employee must review and accept before they submit a signing limit request.

1. Click Organization administration > Setup > Signing limits > Signing limit policies. On the Action Pane, in the New group, click Policy.

2. On the Policy rules FastTab, in the Policy rule type: list, click Limit agreement.

3. Under Policy rules, click the Create policy rule button.

4. In the Limit agreement rule details form, enter the effective date and expiration date for the limit agreement rule, and then click the New button.

5. For each document type, select the limit agreements that the worker must read and confirm compliance with.

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Define exceptions to a limit agreement rule

Some workers may be granted an exception to the limit agreement rules. For example, your organization requires company executives above compensation level 80 to have specific employment contracts that describe their spending and approval limits. These contracts are in place to meet public disclosure requirements and exist outside the Microsoft Dynamics AX signing limit policy framework. In these cases, the employees can be granted an exception to the review and renewal requirements outlined in the limit agreement rule.

1. Click Organization administration > Setup > Signing limits > Signing limit policies. On the Action Pane, in the New group, click Policy.

2. On the Policy rules FastTab, in the Policy rule type: list, click Limit agreement.

3. Under Policy rules, click the Create policy rule button.

4. In the Limit agreement rule details form, click Exceptions.

5. In the Limit agreement exceptions form, in the Available jobs field, select a job or compensation level and then click the Add >> button. Repeat this step for all jobs or compensation levels that are exempt from the limit agreement rule.

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Define a limit currency rule

Assign a base currency to the signing limit rule. This allows an organization to create signing limits that are based on a specific currency.

1. Click Organization administration > Setup > Signing limits > Signing limit policies. On the Action Pane, in the New group, click Policy.

2. On the Policy rules FastTab, in the Policy rule type: list, click Limit currency.

3. Under Policy rules, click the Create policy rule button.

4. In the Limit currency rule details form, enter the effective date and expiration date for the limit currency rule.

5. If you want the system to consider rules from the parent organization when it searches for applicable policy rules, select the Include parent rule check box.

6. In the Currency field, select the currency to display when a worker requests a signing limit.

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Find form help

Signing limit parameters (form)

Limit currency rule details (form)

Limit agreement rule details (form)

Signing limit policy (form)

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Set up signing limit parameters

Set up Organization administration workflows