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Dear 365 Experts,
I have created Procurement Categories and define items under each category. How is the above setup used in Procurement & Sourcing module?
I also link a vendor to one of the Procurement Category. Does it mean only items under the assigned procurement category can be purchased for this vendor?
Please advise.
Thanks,
Pamela
Hi Pam Basilio,
Better if you can create a new thread to discuss on this subject. Otherwise it will be quite challenging to track different topics in one thread.
Best regards,
Sourav Dam
Hi Souvram,
I did as instructed. There is financial entry in invoice posting but there is no entry created during Product Receipt. Isn't it there should be financial entry in both Product Receipt and should reverse the Accrual during invoice posting right? In my case it Debits the Purchase Expenditure for Expense and immediately Credited the Accounts Payable. Is this the expected result (purchase accrual and purchase expenditure, un-invoiced is no longer used during product receipt)?
Thanks,
Pamela
Hi Andre,
Sorry, yes, I will create a new post for a different topic. Thanks for reminding.
Regards,
Pamela
Hi Pamela,
Can you please create different posts for different questions? You are now asking a lot of different things. I'm lost what part has been answered already or not.
Hi Pam Basilio,
Product receipt will update the physical value. Financial value will be updated only when you post the purchase order invoice.
If you are using service type items (as you mentioned, this is part of your procurement category), then you need to select appropriate main accounts in below posting types in inventory posting profile setup to get the correct impact in ledger during product receipt and invoice posting.
--- Purchase expenditure, un-invoiced
--- Purchase, accrual
--- Purchase expenditure for expense
Along with above; you can also select main account in posting type 'Stock variation' to record the difference posted between product receipt and PO invoice (if any).
Best regards,
Sourav Dam
Please take time to click 'Yes' against the answers that help you guide in right direction to help other community members.
Hi Muthusamy,
Thanks for sharing this. May you help me how to restrict Purchase Order by employees based on procurement category? Is Organization hierarchy a mandatory/required setup when restricting purchase by employees?
Btw, I am using Dynamics 365 for Finance & Operations.
Regards,
Pamela
Hi QianQW,
Thanks for your answer. May I know how to properly setup the GL accounts link to Procurement Categoyr, to be used when accounting for purchase of expense items? I have tried going to Inventory/Setup/Posting and added the Category node that I have used in Purchase Order and link it to Expense GL account. Please see attached screen shot for the setup I have done. After doing this setup, I perform Product Receipt but when I viewed the voucher for the resulting financial entry which should Debit the Expense account and Credit the GL I selected on Purchase Accrual field. the screen shows nothing, it means no financial entry was created.
Perhaps, I missed certain step/s or have done it wrongly.
Hi,
Procurement category is mandatory for purchasing materials and which is used to categorize the Items for purchase & reporting purpose. Also, purchasing can be restricted for employees based on procurement categories by linking organization structure.
You can add a vendor to a procurement category and specify whether a vendor is preferred or just approved for the category.
see the below link and it will help you to understand with scenarios.
[View:https://daxing2012.wordpress.com/2012/09/18/procurement-categories/:750:50]
Thanks,
Hi Pam Basilio，
What is your specific needs?
The procurement category is usually used for the purchase requisition.
If you use it in PO, it is expense type purchase.
When you create a new PO and add the item in the PO line, the related procurement category of the specific item can be displayed automatically. When you directly choose a procurement category in order line, the items will not display.
As for vendor, if you want to set permissions for them in PO, you need to do some settings in the released product details form.
The selected vendors in the procurement category are used in purchase requisition.
To be clearer, you can test it in a test environment first.
Here is a MS doc.
docs.microsoft.com/.../set-up-procurement-category-hierarchy
Regards,
QianQW
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