Centralized Procurement

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Hi All,

I am working on one proposal for centralized procurement by using Microsoft Dynamics AX2012 . There will be 15-20 line of businesses in 15 plus countries. The total legal entities (already in AX) will be 50+. There will be one centralized warehouse in each country.

Following are the queries I have

- What is the best way to configure centralized procurement in AX2012

- What if I will open one separate legal entity and procure all the items first in UAE (Head Office) and then to transfer the stock. (Intercompany stock transfer)

- What are the technologies(software/hardware) we need, it would be great if you list them

- The customer is already using Dynamics Anywhere for stock management.

Your prompt reply will be highly appreciated.

Thanks,

Ali Danish

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Community Member on at

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This is a consulting query which would need detailed business requirements analysis and fitment.

The moment you create several legal companies in AX, sharing of master data like (items, vendors) would be fine but coming to inventory and it's transactions, it shouldn't not be shared.

Your second approach could be worked out but need to factor transaction count as intercompany process could add productivity delays and business users would like to automate that.

What are the top capabilities Dynamics Anywhere?

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Khaled Alloud 3,658 on at

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Hello,

Can you please share with the community how did you manage to implement the above?

Regards,

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André Arnaud de Cal... 300,911 Super User 2025 Season 2 on at

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Hi Ali,

Dynamics Anywhere is only supporting warehouse operations, not the procurement. Usually an individual legal entity would issue a purchase order. If you want to have a centralized procurement, you have to consider legal aspects. Taxes might be impacted when procuring for multiple countries. Theoretically the option with a separate legal entity could work, but there will be a lot of IC transactions. Per operational legal entity you would have to buy from the central legal entity?

What would be the main purpose to go for the centralized procurement? Have you also considered giving some users access to all legal entities? Then also a central team could buy for all legal entities.

Please explain the situation in more details if you need more guidance.

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Tim Schofield on at

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Hi Khaled, I've worked on two projects where we used Dynamics AX intercompany orders a lot. In one there wasn't central purchasing, but one manufacturing company - selling through about 8 operating companies in various countries. I would say that the configuration worked well because a) there were relative low volumes (say less than 100 sales order per day across all companies and less than 100 SKU's) and b) the intercompany orders all related to real physical transactions. There was a transfer of stock from the manufacturing companies to the operating companies, or a sale to an end customer related to each intercompany sale or purchase order.

The other project wasn't so good. This was central purchasing by a holding company. Retail and very high volumes of orders and lots of SKU's. Major problem was that intercompany orders didn't always relate to physical transfers. There were lots of customisations, and even a couple of companies in the intercompany chain that were there for finance requirements, not logistics.

So I'd beware of central purchasing, but not of simple, logical intercompany transactions.

Regards

Tim

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