The basic approach of account payable module in Microsoft Dynamics AX

As a prerequisite, correct master data are required, particularly the vendor and the product data (from which the order takes default values).

For purchased services and non-inventoried commodities, it is possible to use procurement categories instead.

The purchasing process includes the steps below:

1. Planned order and purchase requisitions (for material requirements)
   • Planned orders are generated automatically in operations planning (master planning)
   • Purchase requisitions are internal documents, entered manually, by the person who needs the material. Runs through an approval workflow
2. Request for quotation (for detailed information click here)
   • Sent to vendors to require information about the prices and delivery dates
3. Purchase order (for detailed information click here)
   • Consists of header – line format. If not approved the status is Draft. If approved or if change management is not active (no need for approval) the status is Approved
   • Optionally you can post a purchase inquiry to vendors for validation purposes
   • Posting a purchase order confirmation means to save it. All PO confirmations are saved with its original info even after the order maybe subject to changes
   • The PO status is indicated by order status and document status?
4. Product receipt (for detailed information click here)
   • Reduces the open quantity in PO and increases the the physical quantity in inventory
   • The order status becomes Received
5. Invoice receipt (for detailed information click here)
   • Register the invoice in the pending vendor invoice form which is usually matched with the PO and product receipt, or otherwise manually in invoice journal
   • The order status becomes Invoiced
6. Vendor payment (for detailed information click here)
   • Record the payment manually or as a result of payment proposal
   • Generates an open vendor transaction , waiting for payment