Purchase order types in AX 2012 R3 / D365 Operations

Hello Guys,
Believe you all are doing great. First of all thank you for your overwhelming response on my previous posts. It really encourages me to write more.

In today's topic, I will be discussing on purchase order types in Dynamics AX. This is a very easy topic but certainly useful for someone working on purchase order in Dynamics AX.

It is somewhat similar to sales order types shared earlier. Please click on Sales order types in AX 2012 R3 for more details.

There are basically three purchase order types available in AX. Those are:
1. Journal
2. Purchase order
3. Returned order


Default setting for Purchase order types:
You can setup a default value for Purchase type in AX so when you create a New purchase order, system automatically takes that value in the 'Purchase type' field. Normally the default value for purchase type is 'Purchase order'

Path:

Procurement and sourcing parameter -->General --> Default values --> Purchase type

Let me explain each purchase order type in detail:

1. Journal: It is used as "Draft". It is used when you want to create purchase order but do not want to process it then while creating a purchase order, you can assign purchase type as "Journal".  All the postings (Confirmation, Receipt list, product receipt, invoice) will be disabled in this case and can be enabled only after changing the purchase type from Journal to Purchase order. As we cannot process this order, it doesn't impact the inventory stock and does not generate any inventory transactions.

2. Purchase order: It is used when you want to record the order placed with vendor in AX and are going to process it further.

Once purchase order is created with type 'Purchase order', the postings will be enabled after posting the purchase order confirmation  (Receipt list, Product receipt, Invoice).

In this case order is process from Creation to Invoice. After posting the invoice for the order (Full delivery), status of the order changes to "Invoiced".

3. Returned order: When returning goods to vendor due to some issues (Like damage goods, Late delivery etc.), the purchase order is created with type 'Returned order' to facilitate the return to vendor. When you create purchase order with type 'Returned order', the item quantity in purchase line should be negative as we are returning goods to vendor. Once purchase order is created with type 'Returned order', the postings will be enabled after posting the purchase order confirmation (Product receipt, Invoice).

For more details, Refer: Vendor return / Return purchase order in AX 2012 R3

Hope!! Everyone gets clear understanding of Purchase order types in AX 2012 R3 / AX7

Please post if any queries and do let me know if any suggestions for improvement.

See you soon with new post :-)

Happy Daxing !!!

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Abhijeet Hele |  Dynamics AX Enthusiast | My Profile | 

The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.

Difference between Disposition codes and return reason codes in AX7 / AX2012 R3

Hello Readers, Hope you all are well. Really happy to see good responses on the topics I have posted previously. It really encourages me to share my understanding with you all.

Today I am going to write on the difference between disposition codes and return reason codes. I often used to get confused between disposition codes and return reason codes.

What is it actually? Are they same? What are the significance of these two in the order? 

These and all other kinds of questions I often used to get. I know many of you guys must also be facing similar doubts so it is really important to share the difference between these two.

Disposition codes
It is used to specify what actions to perform on the item returned by the customer. There are various disposition actions specified in AX. We can defined disposition codes in the system and assigned disposition action to each code. Following disposition actions are available:

• Credit
• Credit only
• Returned to customer
• Scrap
• Replace and scrap
• Replace and credit

With each disposition action, there are certain processes predefined in order to get the desired outcome while processing the return.

You can setup charges for a specific disposition code and those charges will then be applied to return order upon selection of specific disposition code in the order.

Disposition codes are mandatory and must be specified during return.

We can utilized these disposition codes for reporting purpose as well to get the information for analysis purpose.

To get more details about disposition codes, refer THIS LINK

Return reason codes
It is nothing but reasons defined in system to know why products are returned by the customer. These reason codes are user defined and there are no return actions unlike disposition actions to specify certain processes for desired outcome.

You can setup charges against each return reason code and those charges are applied to return order upon selection of specific return reason code in the order.

Return reason codes can be mandatory or non mandatory. It is solely depend of company's business process. We can make return reason code mandatory through 'Required reason for return order' checkbox in account receivable parameter.

Account receivable --> Setup --> Account receivable parameter --> General --> Reason code requirements --> Require reason for return order checkbox.

We can utilized these return reason codes for reporting purpose to get the information for analysis purpose.


Keep Daxing !!


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Abhijeet Hele |  Dynamics AX Enthusiast | My Profile | 

The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.

Disposition codes in AX 7 / 2012

Hello Readers, It's been a long time since my last post. Hope you all are well !

Today's topic is disposition code in AX 7 / 2012. This is a simple yet very important functionality of AX.

Disposition code is used to specify what action to perform for an item that is returned by the customer. It is assigned during the inspection of an item or at the time of item registration.

There are following disposition actions defined in AX

1. Credit: It is used when we are taking items back from the customer and crediting the customer account with the amount of returned items.

2. Credit only: It is used when we are not taking items back from the customer and only crediting the customer account.

E.g: It is used for low value items where item return is costlier compare to the actual cost of an item or when item is fully damaged so there is no point in taking it back.

3. Returned to customer: It is used when we reject the returned item and return it to the customer

E.g: During inspection, item passed all the required quality standards agreed with the customer.

4. Scrap: Scrap the returned item and credit the customer account

E.g: It is when damaged item is not worth repairing for or can't be repaired.

5. Replace and scrap: Scrap the returned item & replace it with new item and credit the customer account.

6. Replace and credit: Replace the returned item with new item and credit the customer account.


Each disposition code has specific actions which defines the progress of an item once it is returned by the customer.

This blog post explains the system behavior for each disposition action during item return. Click to know more about Item return

Disposition codes

1. Go to Sales and Marketing --> Setup --> Sales order --> Return --> Disposition codes
2. Press New or press Ctrl + N to create new disposition code
3. Add unique code and description
4. Specify the action for disposition code
5. If you want to associate any charges to the specific disposition code then click on Charge Button.

Eg: While returning the item to the customer, if company wants to incur any charges such as Labor charges, handling charges etc. then they can do so by assigning the charges to the disposition code. When the same disposition code use in the transaction, those charges will be applicable to the customer though customer invoice.

How to use disposition codes in the transactions?

1. Go to Sales and marketing --> Sales return --> All Return orders
2. Click on New
3. Select customer account for which we are initializing the return

4. Click ok.

5. Click on Find Sales order.

6. Select sales order, specific sales order line/s and quantity to return

7. Click ok to get the line/s in the return order.
8. Now it is a time for item registration ( It means item arrives at company's /Warehouse's premises but not yet received). This can also be done through Arrival overview.
9. Click on Update line --> Registration

10. That's when system prompt you to select the disposition code.

11. Point to be noted here is that you can see all the disposition codes in the dropdown list except one i.e. Credit only

12. The reason is registration happens for the order only when item arrives at the company's /Warehouse's premises. In case of Credit only, item doesn't come to company's /Warehouse's premises so it won't be available in the list during registration.

13. We can select Credit only disposition code for the return order line from line details --> General tab--> Disposition code

14. Now perform the registration with the selected disposition code

14. All the steps are common till this point. Now depending on the deposition code, system performs various actions.

A. If Credit action is selected in the disposition code:

      a. As soon as registration is done, system creates a return sales order to facilitate the return of the item.

      b. Perform the quality testing if enabled in the system

      c. Once item goes though quality testing. Posting of packing slip facilitates the actual receipt of the item.

      d. We can post the packing slip either from RMA or from Return sales order

      e. Now last step is to credit the customer and this can be done by posting the invoice for the Return sales order.

B. If Credit only action is selected in the disposition code:

      a. We can go to RMA line details --> General tab to attached the disposition code for the line.

      b. After selection, registration is no longer available for the line as we are not taking an item back from the customer so it doesn't come to company's /Warehouse's premises. Registration button is disabled in this case.

      c. Return sales order is created as soon as we select deposition code.

      c. In this case we post the invoice directly from the return sales order to directly credit the customer.

C. If Return to customer action is selected in the disposition code:

      a. Once registration is done with the disposition code Return to customer for the negative line , system creates another line with positive quantity to nullify the impact.

      b. It is like we are taking an item back from the customer through negative line and returning the same item to the same customer with positive line.

     c. After this we can post the packing slip and invoice.

D.  If Scrap action is selected in the disposition code:

       a. Once registration is done with the disposition code Scrap, post the packing slip to facilitates the actual receipt of the items.

       b. Now post the invoice in order to credit the customer.

       c. As we have selected Scrap disposition code, system makes the adjustment to scrap the inventory so there will be no change to on hand inventory after the invoice posting.

E. If Replace and scrap action is selected in the disposition code:

      a. Once registration is done with the disposition code Replace and Scrap, system generates return sales order in order to manage scrap of the returned items. The steps to process return sales order will be same as defined above (Section D)

      b. Now we required to select the item for replacement to the customer ( RMA --> Return line --> Replacement item)

     c. To know more about the replacement, go to Replacement order in AX 2012.

     d. Now post the packing slip for the return sales order. As soon as we post the packing slip for the return sales order, new sales order gets created with positive quantity to facilitates the replacement.

     e. Now we can post the invoice for return sales order so that system can manage the scraping of items so there will not be any on hand inventory impact.

     f. Next you can process the replacement sales order to facilitates the replacement for the customer.

F. If Replace and credit action is selected in the disposition code:

       a. Once registration is done with the disposition code Replace and Credit, system generates the return sales order in order to manage the returned items.

      b. Now we require to select the item for replacement to the customer ( RMA --> Return line --> Replacement item)

     c. To know more about the replacement, go to Replacement order in AX 2012.

     d. Now post the packing slip for the return sales order. As soon as we post the packing slip for the return sales order, new sales order gets created with positive quantity to facilitates the replacement.

     e. Now we can post the invoice for return sales order.

     f. Next you can process the replacement sales order to facilitates the replacement for the customer.

The good thing about disposition codes is there are actions defined in the system for each disposition codes and based on those actions, system manages the return.

Keep Sharing... Happy Daxing..

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Abhijeet Hele |  Dynamics AX Enthusiast | My Profile | 

The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.

Transfer journal in AX 2012 R3

Hello Friends, here is yet another learning from my side and this time I am going to shed some light on Transfer journal functionality of AX.

Transfer journal serves various purposes in AX

1. It is used for short distance transfer where there is no shipment involve.

2. It is used to transfer the inventory between one storage dimension(Site/Warehouse/Location) to other storage dimension(Site/Warehouse/Location)

3. It is used to change the tracking dimensions of the item i.e. Batch/serial number (Eg: to rectify the batch/serial number wrongly updated in the system)

4. It is also used to change the item's product dimensions. (Eg: if the item is registered with color 'Red' and you want to change it to color 'Blue')

Steps to create and Post transfer journal:

1.Go to inventory management --> Journals --> Item transactions --> Transfer

2. Add journal name --> Click on Lines

3. Add Item number

4. Add From and To Product dimensions if you want to change the dimensions ( Configuration, Size, Color, Style) for the item.

5. Add From and To Storage dimensions (Site/warehouse/Location) if the transfer is happening between Sites/Warehouses/Locations 

6.Add From and To Tracking dimensions (Batch/Serial number) if you want to change the Batch/Serial number for the item.

7. Here in this journal, we are transferring the item D0003 between Site1/Warehouse 12 to Site2/Warehouse 21 so,

 a. Item Number: D0003

 b. From Site:1 / From Warehouse: 12, 

 c. To Site: 2 / To Warehouse: 21

 d. Quantity: -10.

 d. Other dimensions (From and To configuration, Size, color etc) will be as it is.

Note: Before the transfer, the On-hand inventory for the item D0003 at the Site1/Warehouse 12 was 10.

7. Now Validate and Post the Journal.

8. Check the On-hand inventory, you can see 10 quantity is transferred from Site1/Warehouse 12 to Site2/Warehouse 21

9. Check the Inventory transactions (Transaction status is 'Sold' for Site1/Warehouse 12 and 'Purchased' for Site2/Warehouse 21)

10. Ledger postings happen between the following accounts:

      Inventory issue

      Inventory Receipt

      Inter-unit payable

      Inter-unit receivable

      

Note: There might be different set of accounts depending on the transaction in the transfer journal.

In this way, you can utilize transfer journal to carry out various business operations.

Happy Daxing!!!

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Abhijeet Hele |  Dynamics AX Enthusiast | My Profile | 

The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.

Bills of materials Journal in AX 2012 R3

Hello Friends, Hope you all are well. Its been long time since I haven't share my learning due to my other priority tasks.

Today I am going to share a very simple yet important topic of AX i.e. "Bill of material journal". This journal is used during production to add finished goods in the inventory, once it is ready and to reduce the components (as components are consumed while producing finished goods) from the inventory. In other word, BOM journal is used for inventory receipt of the BOM (Finished) item and Inventory issue of its components (Which represents BOM).

It is used when you have basic production process in place and you don't want to utilize AX Production control module to its extent.

It is also used in the Kitting process by some organization.

Prerequisites:
1. Create item with the production type "BOM".
2. Create Bill of material for the item ( In the Release item details -->Engineer Fast tab --> BOM section -->Lines --> Create BOM).
3. Approve and Activate BOM.

Steps to create and post BOM journal
1.Go to inventory management --> Journals --> Item transactions -->Bills of Materials

2. Click on New --> Select Journal name --> Click on Lines

3.Click on BOM --> Report as finished

5. Click on New

6. Add Item number, storage dimensions, Quantity.
7. Select the BOM number (in case of multiple BOM for the item)
8. Select the type of Explosion:
    a. Never: Bill of materials are not exploded if there is material shortage.
    b. Always: Bill of materials are fully exploded
    c. Shortage: Bill of materials are exploded only when required quantity of materials are not available. If Materials are partially available then explosion happens for remaining items which are not available.

9. Post now:If this is checked then as soon as Report as finished lines are transferred to BOM journal lines, the journal gets posted.

10.Click Ok to transfer Report as finished lines to BOM journal lines.

11. You can see BOM item along with the components get copied in the BOM journal

12. Also BOM item quantity gets increased and its components quantity get decrease as it is consumed during the production of BOM item.

13. As we have checked Post now checkbox in report as finished lines, journal got posted automatically after the transfer of these lines.

14. You can check the on hand quantity for BOM item and components to know the impact of the posting.


In this way, you can create and post BOM journal in AX.

Keep Daxing!! Keep Sharing!!

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Abhijeet Hele |  Dynamics AX Enthusiast | My Profile | 

The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.

Adding multiple lines in Sales order using "Add Products" feature in AX 2012

Hi All,

Today, I am going to explain easy but very important feature of AX, "Add Products" feature. This feature always play important role when dealing with large pool of orders having multiple lines in day to day business. 

Example: Let's assume Customer placed an order for 100 Products with its specific quantity. Now customer service team has to record this order in the system. Entering 100 products in the sales order is very time consuming task and when there are multiple orders waiting to enter in the system, it can lead to lots of frustration for the guy entering those orders. Keeping this in view, AX provides "Add Products" feature which facilitates the addition of multiple lines (Product and Product variant) quickly in the order.

Videographic representation of "Add Products" feature.

Steps:

• Create a sales order for the customer who has placed an order.

• Now instead of clicking on Add line or Add lines, click on Add Products.

• It will redirect you to Add Products form.

• It has three sections, 

                1. Product categories, 

                2. The products pertaining to category selected in the first section.

                3. In the third section, selected products which will come in the sales order

• Now select the products/Product variant --> click on Add 

• After clicking on Add, it will take products in the Selected product section (Third section).

• Now for all the products that we have selected, we need to enter the quantity and product dimensions( Configuration, size, color and style) 

Note: Default dimensions will flow automatically against the product

• Now click ok to get the lines in the order

• Now go to sales order, you can see items will appear in the order with specific dimensions and quantity.

In this way you can enter multiple line quickly in the order.

Kindly revert with any suggestions or questions pertaining to this topic

Keep Daxing !!!

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Abhijeet Hele |  Dynamics AX Enthusiast | My Profile | 

The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.