D365 Change management

For tracking purposes of Purchase Order’s changes you can turn on the Change Management feature. change management may be used solely to help you manage changes as well as successfully adopt change to proceed with further PO handling.

Once you’ve activated the Change management, approval workflow is introduced. At this point all purchase order changes can be done though Change request workflow. Later on you can review the changes in the history log by comparing purchase order versions.

It’s important to know that during this process inventory transactions are not being created until you approve that purchase order.

What’s the difference between turned change management on and off.

To activate Change management, navigate to Procurement and sourcing > Setup > Procurement and sourcing parameters > General tab.

Check the Activate change management flag in the Change management for purchase orders group of fields.

Create a new workflow that will allow to approve the purchase orders when they are submitted.

Navigate to Procurement and sourcing > Setup > Procurement and sourcing workflows.

Click on the Versions button and then on the existing version click Edit.

Review Purchase order workflow.

In our case we need to make sure that we will be available to approve the purchase order.

I am going to select Participant in the Properties.

And will select that all System administrators can approve all purchase orders.

Click Save and close.

Specify Version notes and click OK.

Chose Activate the new version and click OK.

Make sure that the new version is Active.

Now let’s try to create a new purchase order.

Navigate to Procurement and sourcing > Purchase orders> All purchase orders

Create new Purchase order.

Create new Purchase order line.

Notice that there is no inventory transaction.

Notice that the Purchase Order Approval status has been set to a Draft status.

Once you are ready to send created purchase order to workflow for approval, click on the Workflow -> Submit button.

Put any comment and click Submit.

Status of the purchase order will be changed to In Review. All fields become read-only.

At this point you have several options.

Let’s Approve this purchase order by clicking Approve button.

Enter any comments and click Approve.

Clicking the View history button you can see what’s going on with the workflow.

As we can see, Workflow has been completed.

Review the status of the purchase order and now it’s Approved.

If you look at the Purchase order tab on the Action pane, you will notice that the Request change option is enabled. To make an update to the Purchase order, click on the Request change button.

Edit button becomes available and Purchase order approval status will be Draft again.

Once you’ve made all the changes, press Save and send it to approval again by clicking Workflow -> Submit. After that Purchase order will go into Approved status without necessarily to Approve through workflow.

If you switch to the Manage tab on the Action pane, then additional buttons in the History group will be enabled.

If you want to see what the changes were over time, then click on the View purchase order versions button.

When the Purchase order versions form is displayed, you will see all of the different versions of the Purchase order.

To see the changes made by user, select versions and click on the Compare button within the menu bar.

This will show you all of the changes between the two selected versions of the Purchase Order.

Once the Purchase order is approved, inventory transaction has been created.

Once the Purchase order is approved, you will be able to send out the Purchase Order confirmation.

Once you’ve confirmed the order, Approval status will be changed to Confirmed and Purchase order confirmation journal will be created.

And now you are able to receive goods.

As a conclusion, with Active change management purchase order might walk through the following statuses:

• Draft: Purchase order has been created in Draft At this state purchase order can be modified.
• In review: Purchase order has been submitted to an approval workflow. Purchase order status is In review. The assignment /flow/tasks depend on the configuration within the workflow. If budget control is enabled, a budget check will be performed based on budget control configuration.
• Rejected: Purchase order has been rejected by a workflow reviewer. Purchase order status is Rejected. The purchase order can be modified and re-submitted to workflow.
• Approved: Purchase order approval process has been completed. Purchase order status is Approved. Receipt transactions can be created.
• Confirmed: Confirming the purchase order generates a purchase order confirmation document, which is an external document that may be provided to the vendor to notify them of the order. If budget control is enabled, the budget check is performed based on the budget control policies and budget reservations are established ensuring that planned expenditures do not exceed budget funds available. If encumbrance processing has been enabled, subledger journal entries are created for a purchase order when the purchase order is confirmed to reflect the consumption of budget funds on the balance sheet.
• Finalized: Purchase order must have all lines to be either canceled or invoiced. After a purchase order has been finalized, you can no longer change the purchase order. Finalize the purchase order to liquidate budget reservations and any encumbrance that is not yet relieved in general ledger.