Use budget control on a purchase order [AX 2012] CRM:0003003

Use budget control on a purchase order [AX 2012]

This scenario explains how to use budget control when you create a purchase order. In this scenario, the Department and Cost center dimensions were defined for budget control and purchase orders were enabled for budget control. The budget control configuration has been activated and turned on. For more information, see Set up budget control<http://technet.microsoft.com/en-us/library/hh242453.aspx>.

You could start a similar scenario by creating a purchase requisition and converting it to a purchase order.

A budget register entry was submitted to establish a budget amount for Department 010 and Cost center 0101. You can view the budget balances for the department and cost center before you create the purchase order. In the Budget control statistics form, you would select the budget cycle and financial dimension values for the department and cost center.

1. Click Procurement and sourcing > Common > Purchase orders > All purchase orders.

2. On the Action Pane, click Purchase order to create a purchase order.

3. Select a vendor account.

4. On the General FastTab, verify the accounting date. The account date determines the fiscal period for the budget check. The current date is the default date, but you can change this.

In the budget control configuration, the budget control interval was set to Fiscal year so that the budget amounts for the fiscal year aggregate for the budget check.

5. Add a line to the purchase order and enter information in the required fields, such as Procurement category, Quantity, and Unit price.

6. Click Financials > Distribute amounts and enter the accounting distributions in the Ledger account field. For example, you might enter 606300-010-0101.

7. Close the Accounting distributions form.

If the Enable budget control for line item on entry check box was selected in the Select source documents area of the Budget control configuration form, a budget check icon is displayed on the purchase order line. If the Enable budget control for line item on entry check box was not selected, you can click Financials > Perform budget checking to perform a budget check on the whole purchase order.
[Description: Note]Note

Budget checking is performed on all lines when the purchase order is confirmed and when the purchase order is submitted to a workflow, and then again when the purchase order is approved in a workflow.

8. Click Budgeting > Inquiries > Budget control statistics. Select the budget cycle and the financial dimension values for the inquiry. For this example, you would select 010-0101 as the dimension values.

The amount of the purchase order line is displayed in the Budget reservations for encumbrances field in the grid.

9. Click Encumbrances.

The Budget reservations for encumbrances form shows detailed information about the purchase order transaction. This includes the status, which is Draft. After the purchase order is confirmed, the status changes to Confirmed.

When the invoice is received and entered, the fields in the Relieved amounts this period grid in the Budget reservations for encumbrances form are updated with information from the invoice. A budget reservation for the actual expenditure is also created.

Budgeting setup overview [AX 2012] CRM:0010055

Budgeting setup overview [AX 2012]

Budgeting configuration keys

Budgeting includes three primary configuration keys. The Budget configuration key enables basic budgeting. The Budget control configuration key adds budget control to basic budgeting. And the Public Sector configuration key adds two budget types to basic budgeting that are used by public sector organizations.

Other configuration keys might implement additional budgeting features and features that are related to budgeting requirements in specific countries/regions.

Basic budgeting includes financial dimensions that are defined for Budgeting, budget register entries, and Budgeting workflows.

Budget control is used together with basic budgeting. Budget control includes budget types for pre-encumbrances and encumbrances, budget checking for source documents and accounting journals, and features such as financial dimensions that are defined for budget control, over budget permissions for user groups, and the budget funds available calculation.

The public sector configuration includes the Preliminary budget and Apportionments budget types.

To use budget control, you must set up basic budgeting. If you are using the public sector configuration, you set it up at the same time as you set up basic budgeting.

The following sections describe the information that you should compile before you set up basic budgeting and budget control. These sections also list information that you can view for additional details.
Basic budgeting or budget control

Compile the following information before you set up basic budgeting or budget control.

Information to compile

Additional details

The financial dimensions and main accounts that will be used for Budgeting, and that can have amounts transferred either to or from them

For more information, see Define financial dimensions for Budgeting<http://technet.microsoft.com/en-us/library/hh227432.aspx>.

The currency exchange rates that must be defined, and what those exchange rates are

For more information, see Define budget exchange rates<http://technet.microsoft.com/en-us/library/hh242250.aspx>.

The budget codes that must be set up for each budget type, and which code is the default budget code

At least one budget code is required for each budget type that you want to use.

For more information, see Define budget codes<http://technet.microsoft.com/en-us/library/hh208896.aspx>.

The budget register entries that will use workflows

You assign workflows to budget codes. The budget register entries that are associated with a budget code that has an assigned workflow are automatically submitted to workflow.

For more information, see Create budget register entries<http://technet.microsoft.com/en-us/library/hh227576.aspx> and Set up Budgeting workflows<http://technet.microsoft.com/en-us/library/hh242112.aspx>.

The names of each budget model

For more information, see Create budget models<http://technet.microsoft.com/en-us/library/aa571172.aspx>.

How the budget cycles will be set up

For more information, see Define budget cycles<http://technet.microsoft.com/en-us/library/hh242103.aspx>.

The amounts that will be allocated across periods or to other financial dimension values

You can use a budget register entry to allocate a yearly budget amount across budget periods, or to allocate budget amounts to financial dimension values.

For more information, see Create budget register entries<http://technet.microsoft.com/en-us/library/hh227576.aspx>.

The financial dimensions that will have recurring amounts

You can use a recurring budget account entry to copy an amount to multiple periods for recurring expenses, such as rent.

For more information, see Create budget register entries<http://technet.microsoft.com/en-us/library/hh227576.aspx>.

The budget models that will be used in cash flow forecasts

For more information, see Create budget models<http://technet.microsoft.com/en-us/library/aa571172.aspx>.

Budget control only

If you use budget control, compile the following information in addition to the information in the previous section.

Information to compile

Additional details

The financial dimensions that should be included in budget control rules

For more information, see "Define budget control parameters" in Set up budget control<http://technet.microsoft.com/en-us/library/hh242453.aspx>.

The user groups that can post entries that exceed the remaining balance for a budget

For more information, see "Define over-budget permissions for user groups" in Set up budget control<http://technet.microsoft.com/en-us/library/hh242453.aspx>.

The source documents and accounting journals that should be enabled for budget checking

For more information, see "Select source documents for budget control" and "Select accounting journals for budget control" in Set up budget control<http://technet.microsoft.com/en-us/library/hh242453.aspx>.

The financial dimensions and accounts that must have a budget threshold, and what that threshold is

A budget threshold is the level of budget usage at which you can prevent posting or display warnings. For example, if the threshold is 80, you can warn a user during entry that 80 percent of the budget for the selected account has been used.

For more information, see "Define budget control parameters" in Set up budget control<http://technet.microsoft.com/en-us/library/hh242453.aspx>.

The formula for calculating the remaining balance of a budget

The budget funds available calculation can be defined for each legal entity instead of always using the following calculation: Original budget - Actual expenses.

For more information, see "Define the calculation that determines the budget funds that are available" in Set up budget control<http://technet.microsoft.com/en-us/library/hh242453.aspx>.

The interval, such as monthly, quarterly, or yearly, that is used to determine whether the available budget balance is sufficient to cover transactions

For more information, see "Define budget control parameters" in Set up budget control<http://technet.microsoft.com/en-us/library/hh242453.aspx>.

Create a purchase order from a sales order [AX 2012] CRM:0003002

Create a purchase order from a sales order [AX 2012]

Use this procedure to create a purchase order that is based on a sales order. When you create the purchase order, it reflects the products that you need to purchase in order to fulfill the sales order.

1. Click Sales and marketing > Common > Sales orders > All sales orders. Select the sales order to create a purchase order for, and then on the Action Pane, on the Sales order tab, in the New group, click Purchase order.

-or-

Click Accounts receivable > Common > Sales orders > All sales orders. Select the sales order to create a purchase order for, and then on the Action Pane, on the Sales order tab, in the New group, click Purchase order.
[Description: Description: Tip]Tip

You can also create a purchase order from a sales order on the All purchase orders list page. On the Action Pane, click From a sales order.

2. The Create purchase order dialog box lists all open sales order lines and includes the preferred vendors. In the Vendor account field, change the vendor account number, if a different account number is required.
[Description: Description: Note]Note

You can set up a preferred vendor for an item in the Released products form. On the Plan tab, click Item coverage to open the Item coverage form. Here, you can set up the item per site, warehouse, location, color, size, and configuration.

3. Select the Include check box to select the lines to generate purchase orders for. To select all lines, select the Include all check box.

4. Click Adjust quantity to within permitted range to adjust the ordered quantity so that it matches the minimum or maximum quantity that is specified for the item.

5. Click Search for purchase agreements to search for valid purchase agreements that you can base the new purchase order on.

6. Click Validate to validate the lines that you have selected for the purchase order.

7. Click OK to generate purchase orders based on your selections. Microsoft Dynamics AX creates one purchase order for each vendor account that is specified for the selected sales order lines.
[Description: Description: Note]Note

Each purchase order line is associated with the sales order line that led to the purchase. On the sales order line, the relation to the purchase order is indicated on the Line details FastTab, on the Product tab, in the Reference lot, Reference type, and Reference number reference fields. This relation guarantees that the costs from the current purchase are charged on the attached sales order.

To create a direct delivery from a vendor to a customer, on the Action Pane, on the Sales order tab, click Direct delivery. In the Create direct delivery form that is displayed, the Transfer delivery address check box is selected and is for information only.

FW: Support Alert.....!!! Create a purchase order [AX 2012] CRM:0010046

Create a purchase order [AX 2012]

Use this procedure to create a purchase order with all the information that you need to purchase specific products at a specific price or for a specific delivery date from a vendor.

1. Click Procurement and sourcing > Common > Purchase orders > All purchase orders. On the Action Pane, on the Purchase order tab, in the New group, click Purchase order to create a new purchase order.

-or-

Click Accounts payable > Common > Purchase orders > All purchase orders. On the Action Pane, on the Purchase order tab, in the New group, click Purchase order to create a new purchase order.

2. In the Create purchase order form, select a vendor account.

o Click Yes to copy vendor information such as the address, delivery address, currency, invoice account number, and language to the purchase order.

o Click No to create the new purchase order without copying previous vendor purchase information.

3. On the General FastTab, in the Purchase type field, select the type of purchase order to create.

4. Enter or modify the rest of the information in the Create purchase order form if you have to, and then click OK. The new purchase order is displayed.
[Description: Description: Note]Note

If a purchase agreement exists for the selected vendor, you can order against the purchase agreement. Purchase agreements are available in the Purchase agreement ID field.

5. In the Purchase order lines grid, click Add line or press CTRL+N to create a new purchase order line.

6. At a minimum, specify an item or a procurement category, a purchase quantity, a unit of measure, and a unit price on the purchase order line.

7. On the Line details FastTab, on the Delivery tab, enter a delivery date in the Delivery date field. If the purchase order is based on a purchase agreement, the delivery date must be in the validity period of the associated purchase agreement line.

8. If the purchase order is for a fixed asset, use the Fixed assets tab on the Line details FastTab to enter an existing fixed asset number. You can also create a new fixed asset here.

9. Click Add line or press CTRL+N to create additional lines for the purchase order.
[Description: Description: Tip]Tip

* To create accounting distributions for a purchase order line, select the line. Then, on the Action Pane, on the Financials tab, click Distribute amounts.

* To view subledger journal lines, select the line. Then, on the Action Pane, on the Financials tab, click Subledger journal.

* If you enable committed costs for purchase orders on the Cost control tab of the Project parameters form, and if you enable budget control for the project on the Setup tab of the Project details form, the purchase order is subject to budget control for the project. If workflow is implemented, the project budget is checked when each line is saved, but it is not reduced until the purchase order is approved.

* If you turn on budget control, and you select Purchase orders and Enable budget control for line item on entry in the Select source documents area of the Budget control configuration form, the first column in the Purchase order lines grid in the Purchase order form displays a budget check icon. A red X indicates that the budget check failed, a yellow triangle indicates that the budget check passed with warnings, and a green check mark indicates that the budget check passed. This column is blank if budget checking is not performed. Budget check results can be affected by settings for project budget control, over-budget permissions, and other budget control parameters and settings.

* To display inventory dimensions on the line in the Purchase order lines grid, click Purchase order line > Dimensions.