Before I start, I would like to express that my thirst of learning AX its newly added modules, features and functionalities is not over. A concern raised in my mind during R&D, I thought it might also be a concern that arises in every second mind who is new to MS Dynamics AX 2012 that;
“What was/is the need of having this module Procurement and sourcing when we already had Accounts Payable module, and the module was not the part of the previous versions but Accounts Payable module is there in AX 6 and AX 5 already”.
Answer to the question is:
Apparently, Procurement and Accounts Payable seems responsible for the same Procure to Pay (P2P) process, but the major difference to be highlighted is that they both came from two different business domains (One is more operational (procure) while other is more financial (payable)). E.g. in a normal business practice within the organization at the core level, the “Procurement” department buy the goods and services for the organization while “Accounts payable” department pays for the goods which are procured.
Although, it may seem like “Procurement” and “AP” are two cooperate bodies with two separate hearts, they share the same body, pump the same blood but to understand with a better example. “Procurement” negotiate and ink the contracts with the suppliers (vendors), it is then about managing those contracts ensuring that procurement staff is buying against those contracts and delivering the promised value but after the “Procurement” effort, it is “Accounts Payable” responsibility to settle vendors/suppliers outstanding bills/payment/Invoice.
Therefore, Procure to Pay is like Procurement and sourcing module specifically designed to “Procure” and Accounts Payable module is to “Pay” against those procured goods.
In order to conclude my post, in P2P process both modules are made to represent a detailed process of:
- Vendor Management.
- Purchasing Quotations.
- Purchase Requisitions.
- Purchase order processing.
- Vendor Payments.
- Printing Checks.
but are added separately with two different names for different operations to be carried and are integrated to achieve goals at enterprise level.
Hope it will clear many doubts …!!