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Monday, January 27, 2014

Requisition Management – Apply Account Budgets on Purchase Requests

 

It’s such a nice feature to have your Purchase Requests line items; which are submitted on the Business Portal, controlled by Dynamics GP Accounts Budgets. In a previous post, I have discussed the requisition life cycle ; Requisition Life Cycle. Now, you may be able to add further control on your Business Portal requisitions by activating the PO Commitment as illustrated in the chart below;

PO Com

Understanding PO Commitment:

When the end user submits a purchase request, each line item within the request will have its amount compared to the account budget in Dynamics GP (The actual line item account entered). In case the actual amount exceeds the budget amount and no tolerance is set up, an alert message pops up as shown below;

image

The user can still submit the requisition.

When the first approver checks the request, an alert box is shown next to the “over budget” line item as shown below;

image

If the approver has the authorization password, he can enter to authorize the request. Otherwise he can approve it. And the alert will remain

The request though, will never obtain  “Final Approval” and hence can not be migrated to PO in Dynamics GP unless the password is entered at a certain approval level.

Dynamics GP Setup

Go to Tools > Setup > Purchasing > Purchase Order enhancement. Check the “Activate Commitments”.

image

 

On the commitment Setup window, you have the following to consider as illustrated in the image below;

 image

Authorization Type:

  • Annual: Authorization will be based on the total budget and actual amount for the year
  • Period: Authorization will be based on the budget and actual amounts on a period bases.

  • YTD (Year to Date): Authorization will be based on the year-to-date budget and actual balances (the current date is derived from the user date)

Authorization Variance:

Just like a tolerance rate that can be considered when comparing the actual to the budget amount. Deviation from the budget can be accepted as shown below;

  • Amount: A positive variance allows commitments to be over the available budget by the entered dollar amount. A negative value requires commitments to be under the available budget by the entered dollar amount.
  • Percent: A positive variance allows commitments to be over the available budget by the entered percent. A negative value requires commitments to be under the available budget by the entered percent.

 

Business Portal Setup:

  • On the top-level Business Portal Website > Site Settings
  • Click on Business Portal Administration
  • Company Setting
  • Choose the Dynamics GP Company on which you want to activate the purchase order commitment
  • Choose option “Purchase request line amounts can be committed” to activate

Helping Note !  Prerequisite for Activation of Commitment on Business Portal “

Before you can start or stop using commitments in Requisition Management, you must be sure that the lines for all requisitions that have received final approval are either transferred to purchase orders in Microsoft Dynamics GP or voided.

 

Best Regards,
Mahmoud M. AlSaadi

1 comment:

  1. In case we change the Authorization Type from YTD to Annual, is there something we have to have in mind at the time we do this change? Reconcile Purchase Orders, etc.? Thanks.

    ReplyDelete