Procurement and Sourcing in Dynamics AX 2012

By December 2, 2014Blog, Business, Dynamics AX

When it comes to procurement and sourcing every company is built from unique processes. However, when it comes to procurement and sourcing there are processes that are followed by all of them. The great thing about Procurement and Sourcing module in AX2012 is that it that offers detailed process management, but it is up to your organization on how much functionality will be used. From vendor management to purchasing quotations, purchase requisitions, all the way to purchase orders, invoicing, generating vendor payments and printing checks.

Following is a high level overview of the business process narrative for the procurement process.





Create Vendor

  • To create vendor open the Vendor form by click on Accounts Payables->Common->Vendors->All Vendors.

The Vendors form will be displayed as shown below. Click on the New Vendor Button to create a New Vendor



This will open the New Vendor’s form as shown below:



Mandatory fields will be underlined and will have to be populated with predefined values.

Vendor information screen stores amazing amount information needed for organization to operate properly.

In order to create Purchase orders, vendor will have to be created in AX2012.


Generate Purchase Order


In AX2012 there are different locations to access purchase order. In our example we will use Accounts Payable module.

Accounts Payable > Common > Purchase orders > All Purchase Orders


Click on Purchase Order button to generate new PO

New Form will be Open.

Select appropriate ‘Vendor Account’.

Select appropriate ‘Site’ and ‘Warehouse’


Click on OK button.


Select an item number to insert item in line grid

Click on ‘Confirm’ button to confirm created Purchase Order.

Purchase tab > Confirm


Click on Invoice button to generate Invoice for selected Purchase Order.

Invoice > Invoice


Click on Invoice button.


Select ‘Ordered quantity’ in Default quantity for line field.

Enter the ‘Number’.

Click on Post Button.


Click on Post and Close the form.

The invoice journal can be reviewed from the following screen:



Generate vendor payment journal

Accounts Payable >> Journal >> Payments >> Payment Journal

Click on New button. Select PV in journal name as shown below:


Click on lines button on the top.

As shown below, In general tab, select vendor in account, select vendor account number.

Open settlement form by clicking functions >> Settlement


Select transactions to be settled as shown below and click on close button:


On closing, amount will be automatically affected in Debit column.

Click on the button validate and post the transaction.


Detailed Trial Balance

Once the payment has been validated and posted to the Ledger, it will appear in the Detailed Trial Balance report:


Check Printing

Generate payment journal from Accounts Payable > Payment Journal as show in the screen below. To set the check number in the payment journal, click on Functions > generate payment.


On clicking the generate payment, form shown as below will be displayed. Select the method of payment and bank account, click ok.


Payment by check screen will get display. Enter no. of blank checks, if you do not want to use the displayed check number shown in the screen else leave it to zero and click ok.


Check number will get populated in the payment journal lines shown as below and also check will get printed.


Check number details will get updated as shown in the screen below. Print a copy of a payment from the Check form

  1. Click Cash and bank management > Common > Checks.
  2. Select a check or checks that have a status of Paid.
  3. Click Print check copy