Microsoft Dynamics AX 2012 Implementation

Procurement and Sourcing Management

INTRODUCTION

This document is the deliverable of the Design Phase. 

This document is completed during the Solution Phase of the project. The goal is to document all of solutions to be implemented. Once
completed, this document will help identify how functions are in system. 
Each section in this document contains To-be business process, Business Process, Reports.
RESPONSIBILITY AND BUSINESS PROCESS

The responsibility and the business process shown in this document have been also demonstrated flowchart using symbols in order to
facilitate the understanding as the following table:
DEFINITION AND ACRONYMS

Acrony
Definition Note
m

FD Financial Dimension

PO Purchase Order

PR Purchase Requisition

RFQ Request for quotation

RL Receipt list

INV Inventory

QC Quality Control

RO Return Order


TABLE OF CONTENTS

I. AX2012 FUNCTIONS.................................................................................................................................. 5
1. PS.01 - CREATE NEW VENDOR..................................................................................................................................................................5
1.1. To-be business process..............................................................................................................................................................6
1.2. Business process........................................................................................................................................................................7
2. PS.02 - PURCHASE REQUISITION PROCESS........................................................................................................................................10
2.1. To-be business process............................................................................................................................................................10
2.2. Business process......................................................................................................................................................................11
3. PS.03 - REQUEST FOR QUOTATION PROCESS....................................................................................................................................14
3.1. To-be business process............................................................................................................................................................14
3.2. Business process......................................................................................................................................................................15
4. PS.04 - PURCHASE ORDER........................................................................................................................................................................20
4.1. Purchase order for domestic products......................................................................................................................................20
4.2. To-be-process (Purchase order for domestic products)...........................................................................................................21
4.3. Business Process......................................................................................................................................................................22
4.4. Purchase Order for Imported Products (Logistic)......................................................................................................................26
4.5. To-be-process...........................................................................................................................................................................27
4.6. Business Process......................................................................................................................................................................28
5. PS.05 - VENDOR RETURNS........................................................................................................................................................................32
5.1. To-be business process............................................................................................................................................................32
5.2. Business Process......................................................................................................................................................................33
6. PS.06 – VENDOR EVALUATION................................................................................................................................................................34
6.1. To-be business process............................................................................................................................................................34
6.2. Business Process......................................................................................................................................................................35
Add vendor evaluation group to one or more product categories...............................................................................................35

I. AX2012 FUNCTIONS
1. PS.01 - CREATE NEW VENDOR
Overview
When you start to do business with new vendors or suppliers, it is important to create new vendor‘s information and manage their
information on your system. There are two ways to define the new information of the vendor. Firstly, you can manually create new vendor
and information including their profiles, historical transaction, default delivery time and methods, and etc. Secondly, to speed up the
process of creating vendor accounts, you can create templates that are based on the field entries for vendors that you specify as template
models.
Scope
Procurement Department: create new Vendor and update Vendor Information.
1.1. To-be business process
 1.2. Business process

Step PIC Process

PS.01.01 Procurement Input:

Staff  List of new vendor Information.
Check Existed
 Purchase Quotation.
Vendor  Purchase Requisitions.
Process;
Path :
 Procurement and sourcing > Common > Vendor > All Vendor> New > Vendor
 Accounts Payable > Common > Vendor > All Vendor > New >Vendor

In All vendors Windows search Vendor Name to check vendor is Existed in system or not.

Output:
The results of this step is :
 Existed: Open Customer and update new information.
 No: Click New >Vendor to create New Vendor.

PS.01.02 Procurement Input:

Staff Check Existed results is No, continue to update details information of New Vendor.
Create New
Vendor Process:

Input all the Vendor basic information

- Vendor Account.
 - Record type.
- Name.
- Search Name.
- Group.
Enter more detail information of new Vendor:

 General : Enter or view general information about the vendor.

 Address: Enter or view address information for the vendor.
 Contract Information: Enter or view contact information for the vendor.
 Miscellaneous Details: Enter or view credit, hold status, and related party
information for the vendor.
 Vendor Profile: Enter or view diversity information for the vendor.
 Purchasing demographics: Enter or view the currency, line of business, and
contact name for the vendor. You can also enter or view whether the vendor is part
of a business chain.
 Invoice and delivery: Enter or view invoice defaults, delivery details, and tax
information for the vendor.
 Purchase order defaults: Enter or view the default location, discounts, and change
management for purchase orders that are created for the vendor.
 Payment: Enter or view information that related to payments for the vendor, such as
terms of payment and cash discounts.
 Financial dimensions: View information about financial dimensions, such as the
default dimensions and where the dimensions are used in account structures and
advance rule structures
Output:
New Vendor has been created.

PS.01.03 Procurement Input:

Staff Check Existed results is Existed, select Vendor and click Maintain > Edit.
Update
Information

Process:
Compare and update new information to existed Vendor.

Enter more detail information of new Vendor:

 General: Enter or view general information about the vendor.

 Address: Enter or view address information for the vendor.
 Contract Information: Enter or view contact information for the vendor.
 Miscellaneous Details: Enter or view credit, hold status, and related party
information for the vendor.
 Vendor Profile: Enter or view diversity information for the vendor.
 Purchasing demographics: Enter or view the currency, line of business, and
contact name for the vendor. You can also enter or view whether the vendor is part
of a business chain.
 Invoice and delivery: Enter or view invoice defaults, delivery details, and tax
information for the vendor.
 Purchase order defaults: Enter or view the default location, discounts, and change
 management for purchase orders that are created for the vendor.
 Payment: Enter or view information that related to payments for the vendor, such as
terms of payment and cash discounts.
 Financial dimensions: View information about financial dimensions, such as the
default dimensions and where the dimensions are used in account structures and
advance rule structures.
Output:
Existed Vendor Information has been updated.
 2. PS.02 - PURCHASE REQUISITION PROCESS
Overview
A purchase requisition is an internal document that authorizes the purchasing department to buy items or services.
From a Request of purchase or other documents such as Quantity minimum stock in Summary Stock Take, Material control sheet in Hai
Duong or Specification sheet in Hanoi, the warehouse staff will create a new Purchase requisition on AX system. The next step is to
check a price list that is available on system in advance or not. If the price list have not recorded on system, the procurement staff will
move to the process of Request for quotation. Otherwise, the staff will submit purchase requisition for approval in case of a price list
exited on system. After getting the approval of Purchase Requisition, a purchase order will be automatically generate from such purchase
requisition. The next step is to confirm purchase order or receive goods.
Scope
Procurement staff is mainly responsible for purchase order operation.
Procurement Manager is responsible for approve the Purchase requisition.

2.1. To-be business process

 2.2. Business process

Steps PIC Descriptions

PS.02.01. Procurement Input

staff Analyse requirements from departments to buy item or service for Project, safety stock or
Create
other request of purchase.
purchase
Process
requisitions
Path: Procurement and sourcing > Common > Purchase requisitions > All purchase
requisitions
Purchase Requisition header: view and enter the overall data for the purchase requisition.
 The user who entered the requisition data
 The status of the purchase requisition
 The requested & accounting dates
 Select a project if the items in the PR are for a project by select project ID.

Purchase Requisition lines:

 Item number
 Site Warehouse Location
 quantity

Output
Purchase Requisition created.
Print “Purchase Requisitions”.

PS.02.02. Procurement Input

staff
Purchase requisition created.
Check Price list
Process
The procurement staff will check price list being available on system or not and then, get
 actions. If the price list do not have recorded on system, the procurement staff will move to
the process of Request for quotation. Otherwise, the staff will submit purchase requisition for
approval
Output

Already have price list- Submit Requisition for approval

A price list have not existed yet Request For Quotation Process

PS.02.03. Procurement Input

staff
Result of Perform budget checking to perform a budget for purchase requisition is Passed or
Submit
passes but with warnings  no error.
Requisition for
Process
approval.
Path: On Purchase requisitions/Select Submit
Submit purchase requision for approval :
 Submit Purchase requisition to workflow
 Recall: to recall a requisition that you have submitted to workflow.
 View history: To view the workflow history for a requisition that you have submitted
to workflow

Output:
Purchase requision submited & has status : In Review.

PS.02.04. Procurement Input

Manager
Purchase Requisition Submitted & has status: In Review.
Approve
Purchase Process

Requisition Path: On Purchase requisitions/Select Approve

 Approve PR: After Verify that the information on the purchase requisition is correct - select
approve to approve the work item.
Not Approve:
 Reject Purchase Requisition.
 Return Purchase Requisition.
Both 2 cases are return for procurement staff to view & modify purchase Requisition.
Output
Approved: The review process for a purchase requisition line has been completed and the
line approved.
Not Approve: purchase requisition review process starts over again for the whole purchase
requisition.

PS.02.05. Procurement Input

staff
Update Purchase requisitions has status In review
purchase
requisitions Process
Select purchase requisition has status In Review to view & modify purchase requisitions.
And then continue to do the above procedure to re-submitted.
When the workflow is re-submitted, you can use the workflow history to track that it has been
re-submit on behalf of the preparer.
 3. PS.03 - REQUEST FOR QUOTATION PROCESS
Overview
A request for quotation (RFQ) is an invitation extended to a vendor by a purchasing organization to submit a quotation for the supply of
materials or performance of services.
The key points about request for quotation are as follows:
 Request for quotation is a form of invitation that sent to vendors to submit quotation indicating pricing and their terms and
conditions.
 RFQ contains details about goods or services, quantity, date of delivery and date of bid on which it is to be submit.
 Quotation is a reply by a vendor in response to request for quotation.
Scope
Procurement staff is responsible for RFQ operations.

3.1. To-be business process

 3.2. Business process

Steps PIC Description

PS.03.01 Procurement Input

staff Purchase Requisition or Manual
Created request
for quotations Process
Path: Procurement and sourcing > Common > Requests for quotations > All requests for
quotations
Create a request for quotation as follow:
RFQ Header: Define following information

 Delivery date
 Expiration date and time
 Project ID: Select a project if the items in the RFQ are for a project.
 Requesting department.
RFQ Line: Define following information
 Name of Material or Service
 Quantity
 Material group
 Quotation deadline date
Vendor tab: Select one or more vendor that want to RFQ for good or service.

Output
RFQ is created & Status of RFQ “Created”

PS.03.02 Procurement Input

staff RFQ is created & Status of RFQ “Created”
Send request to
 Process
quotations for
Path: Procurement and sourcing > Common > Requests for quotations > All requests for
vendor
quotations
For RFQ is created at step PS.03.01, click Send and publish to Vendor portal to send RFQ to
vendors.

Output
RFQ is created & Status of RFQ “Sent”

PS.03.03 Vendor Input

RFQ is created & Status of RFQ “Sent”
Reply request
for quotation Process
After sending RFQ to vendors, vendors will reply the required information to Procurement
department..
Output
Procurement staff will base on the received information from vendor to start step PS.03.04

PS.03.04 Procurement Input

staff When the replies for the RFQ are receive from the vendor by fax, email, or by telephone.
Receive RFQ
 Process
reply per
Path: On the RFQ/select Vendor tab/select vendor/Enter reply
vendor

Use the filter options to search for the request for quotations to which you want to register
replies.
Select the request for quotations to register replies for, and then click Enter.
Output
The replies of vendor must be entered.

PS.03.05 Procurement Input

staff When an RFQ is received from a vendor, it is entered into for comparison to find the most
Compare RFQ
suitable vendor
reply
Process
Path: On the RFQ/select Compare replies

Compare request for quotation replies : You can compare the information in the following
fields:
 Balance: The net amount for the request for quotation reply or the reply line.
 Invoice amount: The gross amount or invoice amount for the request for quotation
reply or reply line.
 Lead-time: The total lead-time in number of days for the request for quotation reply
or reply line.
 Deviation: The number of days that the delivery date in the request for quotation
 reply or reply line deviates from the requested delivery date in the request for
quotation or request for quotation line.
Output
Compared request for quotation replies & identified the best request for a quotation reply.

PS.03.06 Procurement Input

staff A similar process is complete when rejecting a request for quotation reply from a vendor. For
Reject RFQ
example, the price of the vendor sends too high or the delivery date is not meet.
reply per
vendor Process
Path: On the RFQ/select Compare replies/Select Reject
Select the request for quotations for which you want to register replies & click Reject a RFQ for
vendor if you reject reply.
Output
Status of RFQ have Reject & Journal created to store general information of suppliers to query
the history of vendor be rejected.

PS.03.07 Procurement Input

staff When you have identified the best request for a quotation reply that offers the best total price,
Accept RFQ
you accept the reply and the status of the vendor-specific request for quotation reply is
reply per updated to Accepted.
invoice
Process
Path: On the RFQ/select Compare replies/Select Accept

Select the request for quotations for which you want to register replies & click Accept a RFQ
for vendor if you accept reply.
Output
When you accept the reply, a purchase order created automatically or updated purchase
requisitions, depending on the purchase type of the RFQ case.

PS.03.08 Procurement Input

staff A request for quotation reply can also be return to the vendor. This can be required if, for
Resend RFQ
example, the vendor did not complete all fields on the request for quotation reply and additional
reply back to information is required.
vendor
Process
Select the request for quotations for which you want to register replies & click Return a RFQ
for vendor if you return reply.
Output
 Request for quotation reply will resend back to vendor.

PS.02 Procurement Input

staff RFQ is accepted at step PS.03.07
Update
purchase Process

requisition If RFQ is created from Purchase requisition, go to path:

Procurement and sourcing > Common > Purchase requisitions > All purchase requisitions
Select PR/ select Action/ select Approve, go to path:
Procurement and sourcing > Common > Purchase requisitions > Release approved purchase
requisitions
Select PR/ click Purchase order, system will auto create new PO.
Output
Purchase order is created accordingly.

PS.04 Procurement Input

staff
Purchase order RFQ is accepted at PS.03.07

Process
Path: Procurement and sourcing > Common > Requests for quotations > All requests for
quotations
After accepting RFQ, if RFQ is created directly at All requests for quotations form, system will
auto created purchase order.

Output
Purchase order is created accordingly.
 4. PS.04 - PURCHASE ORDER
4.1. Purchase order for domestic products
From a purchase requisition, a request for quotation, a project, a subcontract work, a sale order (direct delivery), or a letter of intent, the
procurement staff will create a new purchase order and send it to Procurement Manager for approval. After the procurement manager
receives PO and approves on system, the staff will confirm such PO on system and send it to vendor. The vendor will give a feedback
(confirmation) to such PO by signing on PO acknowledgement. The staff in the procurement department will receive PO
acknowledgement and come to the next step of registering items on system. At the same time, the staff will print a receipt list to let the
warehouse staff recognize the number of product will be transferred for inventory. When the items coming to the warehouse and passing
from the tests of quality, the warehouse staff will allow the goods to be moved into the warehouse and sign for receiving confirmation. The
procurement staff will base on the warehouse staff’s confirmation to post product receipt and recorded on the system.

Scope
Procurement staff is mainly responsible for purchase order operation.
Procurement Manager is responsible for approve the PO.
Warehouse staff is responsible for receiving products.
Quality staff is responsible for test the quality of the coming goods
4.2. To-be-process (Purchase order for domestic products)
 4.3. Business Process

Steps PIC1 Descriptions

PS.04.01 Procurement Input

staff
Original source of information comes from : PR, Project, Sales order, Subcontract, Direct
Create/
Delivery, Manual PO  you need create new or update to purchase specific products at a
Update specific price or for a specific delivery date from a vendor.
Purchase Process
Order
Path: Procurement and sourcing > Common > All purchase orders
Define PO header
Select a vendor account to vendor information such as the address, delivery address, currency,
invoice account number, and language to the purchase order.
Define PO lines
Specify an item or a procurement category, quantity, unit, and unit price.
On the Delivery tab, enter a delivery date in the Delivery date field. If the purchase order based
on a purchase agreement, the delivery date must be in the validity period of the associated
purchase agreement line.
Output
Purchase order created  Status PO : Open

PS.04.02 Procurement Input

staff
Purchase order in Draft
Submit PO for
Approval Process

Submit purchase order for approval :

 Submit Purchase order to workflow
 Recall: to recall a PO that you have submitted to workflow.
 View history: To view the workflow history for a PO that you have submitted to
workflow
Output
Purchase order submited & has status : In Review.

PS.04.03 Procurement Input

manager
Purchase order submited & has status : In Review.
Receive
purchase Process
approval
Procurement manager receive purchase order approval request, which is submitted at step
request
PS.04.02, he/she will review and consider whether to approve this request or not.

Output
If it’s approved, continue step PS.04.04
If it’s rejected, continue step PS.04.06

PS.04.04 Procurement Input

manager
Purchase Order Submitted & has status: In Review.
Approve/
Reject Process
Purchase
Approve PO: After verifying the information on the purchase order is correct - select approve
order
to approve the work item.
Reject PO: the information on the purchase order is not correct, the procurement manager will
reject this purchase order.
Output
Approved: The review process for a purchase requisition line has been completed and the line
approved -- Print “PO draft” send to vendor.
 Rejected: Purchase Order Submitted & has status: Rejected.

PS.04.05 Procurement Input

staff
After the PO has been fully updated information and not check budget (PR case was checked
Confirm
budget & approval to release PO) or after the PO was approval Procurement Manager, the
purchase procurement staff will confirm such purchase order on system
order Process
Path: On the PO/Select Purchase tab/Select Confirmation

Select the purchase order that you want and then confirmation.
Print Purchase order to send PO final for vendor.
Output
Purchase order confirmed to vendor  PO final with vendor

PS.04.06 Procurement Input:

staff
The purchase order is confirmed on the system
Send PO to
Vendor Process:
The staff in procurement department will send the confirmed purchase orders to the vendors by
email or post (hardcopy), called Purchase order Acknowledgement. This is to let the vendors
recognize the information of the coming purchase order.
Output:
Purchase order Acknowledgement is sent to the vendors

PS.04.07 Vendor Input:

Purchase order Acknowledgement.
Send PO
Acknowledge Process:

ment with The vendor receives, checks and confirms information on such Purchase Order
Acknowldegement. After that, the vendor will sign for confirmation to the Purchase Order
Confirmation Acknowldegement.
by signature
Output:
Purchase order Acknowledgement with the vendor’s signature and Delivery note and Payment
request.

PS.04.08 Procurement Input:

staff
Purchase order Acknowledgement with the vendor’s signature.
Attached
Purchase Process:

order The procurement staff will attach Purchase order Acknowledgement document with the
vendor’s signature to the confirmed Purchase order for recording and managing on the system.
Acknowledge
Output:
ment to
system Purchase order with Purchse order Acknowledgement document.

PS.04.09 Procurement Input:

staff
Purchase order with Purchse order Acknowledgement document and Delivery note and
Register the
Payment Request received from the vendor.
items
Process:
The procurement staff will register the items into the inventory by“Posting Receipt list“ on AX
system.
Warehouse staff will base on information from the form of Delivery note and payment request in
order to select the correct purchase orders along with vendor account. The next step is to post
receipt list on AX system and print it out to compare the goods ordered to the goods received for
the confirmation of their quantity and configuration. A quality order is automatically generated for
test the goods’ quality.
 Print Receipt list at Procurement and sourcing\Periodic\Purchase order\Posting receipt list
(Select PO number or vendor account and ordered quantity; tick to the Print receipts list check
box to print the receipts list)
Output:
A receipt list was posted
A form of receipt list was printed
A quality order is generated
Output:
Receipt List document

IM.01.02 Warehouse staff Input:

The warehouse staff will receive
Receive
goods Receipt list document (Input of warehouse request)
Delivery note and Payment request
Red Invoice
Process:
Check the quantity and quantity of the goods transferred to the inventory.
Output:
Confirm the quantity and quality of the goods with correct information from the above document
with the warehouse staff’s signature.

IM.03. Quality Control Input:

staff
Quality  Receipt list Form
Control  Delivery note and payment request
Case 1: Pass Process:
Quality Control Staff will test the goods and materials received via a number of Quality control
tests and recorded the results to the AX system
In case, the goods are recorded for Pass, Quality order staff was confirmed Pass and recorded
on AX system.
Output
A Quality order with the “pass” result has been recorded on AX system.
Next step: Warehouse staff will post product receipt and end up the process of warehouse input

PS.04.11 Warehouse staff Input

Post Product A Quality order with the “pass” result has been recorded on AX system.
Receipt
Process: Post Product Receipt
Path: Procurement and sourcing\Periodic\Purchase order\Product receipt.
Select Purchase orders.
Specify Product receipt number/Invoice number in the Product receipt field.
Specify Receiving Product date in the Posting date field on the Set up Tab.
Specify/Check quantity in Quantity field on the Lines Tab.
Tick Print product receipt.
Output
A product receipt is posted
The products are recorded in the inventory (both AX system and at warehouse)

Quality Control Input:

staff
IM.03  Receipt list Form
 Quality order (automatically generated after doing ‘Posting receipt list’)
Quality Control
Case 2: Fail from Process:
the quality tests
Quality Control Staff will test the products received via a number of Quality control tests.
In case, the goods are recorded for Fail:
 Quality Control Staff will update the result to Fail of goods on AX system.
 Warehouse Staff will send the form of Quality Order with the Fail result to
Purchase Staff
 Purchase staff will create Vendor Return to back the goods to vendors
Output
Quality order was recorded for Fail on system
A Vendor return is created and send to the Vendor
Not to Post Product receipt

PS.05. Procurement Refer to PS.05

staff
Vendor Return
 4.4. Purchase Order for Imported Products (Logistic)
Overview
From a purchase requisition, a request for quotation, a project, a subcontract work, a sale order (direct delivery), or a letter of intent, the
procurement staff will create a new purchase order and send it to Logistic Department to buy imported products.
Logistic staff will check such purchase order and inform to the procurement staff for any changes or updated information. After that, the
logistic staff will submit purchase order to Procurement Manager for approval on system.
The procurement staff will confirm such PO on system and send it to vendor.
The vendor will give a feedback (confirmation) to such PO and send documents of importing the products.
The staff in the procurement department will receive the documents of import, attach them to system, post receipt list and register items
on system. At the same time, the staff will print a receipt list to let the warehouse staff recognize the number of product will be transferred
for inventory. When the items coming to the warehouse and passing from the tests of quality, the warehouse staff will allow the goods to
be moved into the warehouse and sign for receiving confirmation. The procurement staff will base on the warehouse staff’s confirmation
to post product receipt and recorded on the system.
Scope
Procurement staff is mainly responsible for purchase order operation.
Logistic staff is mainly responsible for checking and submitting purchase order.
Procurement Manager is responsible for approve the PO.
Warehouse staff is responsible for receiving products.
Quality staff is responsible for test the quality of the coming goods
4.5. To-be-process
 4.6. Business Process

Steps PIC1 Descriptions

PS.04.01 Procurement Input

staff
Original source of information comes from : PR, Project, Sales order, Subcontract, Direct Delivery,
Create/
Manual PO  you need create new or update to purchase specific products at a specific price or for
Update a specific delivery date from a vendor.
Purchase Process
Order
Path: Procurement and sourcing > Common > All purchase orders
Define PO header
Select a vendor account to vendor information such as the address, delivery address, currency,
invoice account number, and language to the purchase order.
Define PO lines
Specify an item or a procurement category, quantity, unit, and unit price.
On the Delivery tab, enter a delivery date in the Delivery date field. If the purchase order based on
a purchase agreement, the delivery date must be in the validity period of the associated purchase
agreement line.
Output
Purchase order created  Status PO : Open

PS.04.02 Logistic staff Input

Purchase order in Draft
Check PO
Process

Submit purchase order for approval :

 Check: item information, dimension, imported conditions

 If PO ok: let procurement staff know and submit PO via email
 If PO’s information is not enough or incorrect: let procurement staff update and
recheck.
Output:
PO is confirmed by Logistic department.

PS.04.03 Warehouse staff Input

Purchase order in Draft
Submit PO
for Approval Process

Submit purchase order for approval :

 Update: updating information of imported items

 Submit Purchase order to workflow
 Recall: to recall a PO that you have submitted to workflow.
 View history: To view the workflow history for a PO that you have submitted to workflow
Output
Purchase order submited & has status : In Review.

PS.04.04 Procurement Input

manager
Purchase order submited & has status : In Review.
Receive
purchase Process
approval
Procurement manager receive purchase order approval request, which is submitted at step
request
PS.04.02, he/she will review and consider whether to approve this request or not.
 Output
If it’s approved, continue step PS.04.04
If it’s rejected, continue step PS.04.06

PS.04.05 Procurement Input

manager
Purchase Order Submitted & has status: In Review.
Approve/
Reject Process
Purchase
Approve PO: After verifying the information on the purchase order is correct - select approve to
order
approve the work item.
Reject PO: the information on the purchase order is not correct, the procurement manager will
reject this purchase order.
Output
Approved: The review process for a purchase requisition line has been completed and the line
approved -- Print “PO draft” send to vendor.
Rejected: Purchase Order Submitted & has status: Rejected.

PS.04.06 Procurement Input

staff
After the PO has been fully updated information and not check budget (PR case was checked
Confirm
budget & approval to release PO) or after the PO was approval Procurement Manager, the
purchase procurement staff will confirm such purchase order on system
order Process
Path: On the PO/Select Purchase tab/Select Confirmation

Select the purchase order that you want and then confirmation.
Print Purchase order to send PO final for vendor.
Output
Purchase order confirmed to vendor  PO final with vendor

PS.04.07 Procurement Input:

staff
The purchase order is confirmed on the system
Send PO to
Vendor Process:
The staff in procurement department will send the confirmed purchase orders to the vendors by
email or post (hardcopy), called Purchase order Acknowledgement. This is to let the vendors
recognize the information of the coming purchase order.
Output:
Purchase order is sent to the vendors

PS.04.08 Vendor Input:

Purchase order.
Send PO
with Process:

Confirmation The vendor receives, checks and confirms information on such Purchase Order Acknowldegement.
After that, the vendor will sign for confirmation to the Purchase Order Acknowldegement.
by signature
Output:
Purchase order and Documents of import with the vendor’s signature.

PS.04.09 Procurement Input:

staff
Purchase order and Documents of import with the vendor’s signature.
Attached
Purchase Process:

order and The procurement staff will attach Purchase order Acknowledgement document with the vendor’s
signature to the confirmed Purchase order for recording and managing on the system.
Documents
Output:
of Imported
products to
system Purchase order with full Documents of Import.

PS.04.10 Procurement Input:

staff
Purchase order with full Documents of Import.
Register the
items Process:
The procurement staff will register the items into the inventory by“Posting Receipt list“ on AX
system.
Warehouse staff will base on information from the form of Delivery note and payment request in
order to select the correct purchase orders along with vendor account. The next step is to post
receipt list on AX system and print it out to compare the goods ordered to the goods received for the
confirmation of their quantity and configuration. A quality order is automatically generated for test
the goods’ quality.
Print Receipt list at Procurement and sourcing\Periodic\Purchase order\Posting receipt list (Select
PO number or vendor account and ordered quantity; tick to the Print receipts list check box to print
the receipts list)
Output:
A receipt list was posted
A form of receipt list was printed
A quality order is generated
Output:
Receipt List document

IM.01.02 Warehouse staff Input:

The warehouse staff will receive
Receive
goods Receipt list
Documents of Imported products
Process:
Check the quantity and quantity of the goods transferred to the inventory.
Output:
Confirm the quantity and quality of the goods with correct information from the above document with
the warehouse staff’s signature.

IM.03. Quality Control Input:

staff
Quality  Receipt list Form
Control  Delivery note and payment request
Case 1: Pass Process:
Quality Control Staff will test the goods and materials received via a number of Quality control tests
and recorded the results to the AX system
In case, the goods are recorded for Pass, Quality order staff was confirmed Pass and recorded on
AX system.

Output
A Quality order with the “pass” result has been recorded on AX system.
Next step: Warehouse staff will post product receipt and end up the process of warehouse input

PS.04.11 Warehouse staff Input

Post Product A Quality order with the “pass” result has been recorded on AX system.
Receipt

Process: Post Product Receipt

Path: Procurement and sourcing\Periodic\Purchase order\Product receipt.
Select Purchase orders.
Specify Product receipt number/Invoice number in the Product receipt field.
Specify Receiving Product date in the Posting date field on the Set up Tab.
Specify/Check quantity in Quantity field on the Lines Tab.
Tick Print product receipt.
Output
A product receipt is posted
The products are recorded in the inventory (both AX system and at warehouse)
 5. PS.05 - VENDOR RETURNS
Overview
Companies frequently return items to their suppliers when the goods are the incorrect size and, or main material, the expiration date has
passed or the products are damaged during transportation or because of incorrect handling.
Vendor product returns handled like purchase orders, because they involve transactions in the Inventory management, General ledger,
Procurement and sourcing and the Accounts payable modules.
Scope
Procurement Department.

5.1. To-be business process

 5.2. Business Process

Steps PIC Descriptions

Procurement Input
PS.05.01
staff
Create PO with type Get information returns required from other departments as QC, warehouse, production, ... for
materials or goods do not meet the requirements for the quality or damaged goods, ....
Return Order
Process
Path: Procurement and sourcing > Common > All purchase orders
Create PO with type Return Order as follow:
Define PO header
 Select vendor
 Purchase order type : Return Order
 Enter RMA number

Define PO line
 Select item
 Quantity
 Return action

Output
Purchase order created with PO line’s negative & status : open order

Procurement Input
PS05.02
staff
PO confirmation Path: Purchase order created with PO line’s negative & status : open order
Process
On the PO/Select Purchase tab/Select Confirmation
Select PO with PO line’s negative & status : open order
Click the Purchasetab and then clicking Confirm.

Output
Purchase order Comfirmed & Print Return order send to vendor.

Warehouse Input
IM.01
staff
Product Receipt After PO with type return order confirmed with vendor.
Process
Used to receive the item or services, and then enter the receipt list into the system. This
creates a physical inventory transaction and makes the items available if they are stocked
products.
Output
Good or material returned to vendor.

Accounting Input
AP.02
Staff
Create Vendor After Define Action with vendor: no return but credit.
Invoice

Process
Use to adjustment wrong information on invoice as : price, amount...
Output
Vendor invoice created & print Credit note.
6. PS.06 – VENDOR EVALUATION
6.1. To-be business process
 6.2. Business Process

Steps PIC1 Descriptions

PS.06.01 Procurement Input

staff
Internal feedback information from Delivery date schedule, Quality control test result, Non-
Create/Add new
conformance report, vendor’s attitudes, and others.
Vendor
Process
Evaluation
Path: Procurement & Sourcing > Set up > Vendors > Vendor Evaluation Criteria Group.
Group
From such information, the procurement staff will group criteria and applying it to your vendors.
A vendor evaluation criterion group makes it easier to determine how well a vendor provides a
service by reviewing the ratings of vendors who supply similar products against a group of
evaluation criteria.
Output
A new group of vendor for evaluation is added

PS.06.02 Procurement Input

staff
List of feedback information to vendors, who need to evaluate and record on system.
Create/Add new
Process
Vendor Path: Procurement and sourcing > Setup > Vendors > Vendor evaluation criteria.
Evaluation Adding new list of criteria to the system, which lets you determine whether you want to use
criteria particular a vendor.

Output:
Vendor evaluation criteria are added.

PS.06.03 Procurement Input

staff
Vendor evaluation group and Vendor evaluation criteria’s information
Add vendor
evaluation group Process
to one or more
product categories Path: Procurement and sourcing/Setup/Categories/Procurement categories/ Vendor evaluation
criterion groups/ Add vendor evaluation criterion groups
Adding vendor evaluation criteria group to one or more product categories before rating vendors
based on these criteria.
Selecting vendors for evaluation
Output
Vendor evaluation group and criteria are added to specific product categories for evaluation.

PS.06.04 Procurement Input

staff
Vendor evaluation criteria and list of vendors
Scoring and
Rating Vendor Process

Procurement and sourcing > Setup > Categories > Procurement categories.

If you have assigned the same evaluation criterion group to multiple procurement categories
and a vendor is scored using the criteria in the group, then that score will apply to all the
categories that the group is assigned to and that the vendor is approved for.
Output
Vendor is scored and recorded on system.