Category Archives: Procurement

Procurement & Sourcing & Accounts Payable_AX 2012- “Differentiation”.

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.
  • Invoicing.
  • 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 …!!


De-receipting of Purchase orders created through Project Module _ AX 2012

MS Dynamics AX offers the de-receipting and return order functionality in AX 2012 as well with some enhanced interface. However, as carried from the previous version we need to keep two things in mind;

  • When the order is “Received” the products needs to be de-receipted.

When the order is “Invoiced” we need to create the return order to reverse the entries before we cancel the purchase order.

DE receipting

  • Create a Purchase requisition from a project
  • Approve the purchase requisition workflow.
  • Go to Procurement and Sourcing Module and go to Released approved purchase requisitions.
  • Confirm the purchase requisition by creating a purchase order from it.
  • Go back to Project management and accounting module and select your project for which the purchase order has been created.
  • Select the Project and go to Manage
  • Click on Item task in the related information section and click on Purchase order.
  • Go to Purchase tab and click on Confirm in order to confirm the PO.
  • Go to Receive Tab and click on “Product Receipt”.
  • Post the Receipt of the product..
  • Check the committed cost against the project.
  • Now go back to the purchase order.
  • Click on “Receive” tab.
  • Go to Receipt journal.
  • Select the line in the journal and click “Correct”.
  • In the QTY column, enter the QTY enter 0 or whatever the QTY that needs to be reversed.
    (e.g. if we have 50 QTY and only 25 QTY needs to be reversed (de-receipted) then enter 25 in the QTY column and the Reversed QTY column will be updated automatically with the remaining 25 QTY.
  • Posting the correction (de-receipting) QTY will change the PO status back to “Open”.
  • Now go to purchase order tab and click “cancel”.
  • Check the status after cancelling, workflow status will be “Draft” and Purchase order status will become “Cancelled”.
  • No go back to the project and check the committed cost, it should have been reverted that was generated due to this PO.