Procurement process in organizations is very critical such that right items are ordered at the right time. Often, companies end up with cost overruns partly due to bad purchasing planning or policies. It’s all about meeting the demand of materials or services within the stipulated time and minimal costs.
One of the key success criteria set by the Purchasing departments when it comes to choosing the best ERP in the market revolves around efficient management of procurement cycle like Purchase Requisition workflow driven process, RFQ process, Catalog and non-catalog based purchases, vendor responses analysis.
The Finance department asks for creating commitments for those purchases to plan for their working capital needs. If the expenditure is incurred towards a project, the project information is also sought for. More importantly, a Finance Manager would always be interested in distributing the expense to multiple cost centers/departments than just to distribute it to one default account.
Organizations hate to come to terms when we inform them that you can’t create requisitions in multi-currency or you can’t link your projects to the requisitions or for that matter you can’t set the GL distributions to multiple accounts.
Here is where solution like Microsoft Dynamics AX 2012 sets its foot stronger than its peers with its extensive functionality in procurement and sourcing to address these gaps.
Keeping this background in mind, let’s look at what Microsoft Dynamics AX2012 has in its store for the purchasing managers specific to Requisitions. AX 2012 can offer the best in class out of the box functionality through its procurement and sourcing module.
Some of the features are listed below through this module highlighted upon Purchase Requisitions.
- Purchase Requisition in Built workflow process
- Requisitions can be submitted for approval by multiple users
- Requisitions can be created through AX Client/Enterprise Portal/Employee self-services
- Requisitions can be created by users to choose from existing procurement catalogs (internal catalogs). This is very helpful for some clients. Requisitions can be created for non-catalog items.
- Multiple GL distributions can be attached to each Requisition line (Expense allocation becomes easier)
- Budget control validation & Commitments through Encumbrances
- Attach documents/images
- Create Requisitions in Multi-currency
- Attach Project Information to the Requisitions & Project Budget linking
- Attach Fixed Assets information to the Requisitions
- Create Purchasing Policies and thereby link them to Requisitions
- Have the users fill up Questionnaires justifying their purchases
- Create RFQ from Requisitions and Accept replies from RFQ to be copied over to Requisitions
- Transfer requisitions to Purchase orders manually/ automatically/through demand consolidation
In order to address some of the business needs we discussed above like RFQ process, Multi-currency Requisitions, Project linking to requisitions, attaching Multiple GL distributions, Customers have to look at some third party products to address the gaps which are otherwise available as standard features in AX 2012. Choosing Dynamics AX 2012 leaves tremendous advantage for Customers that they enjoy less implementation cost overruns and less maintenance costs.