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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / PR>RFQ>PO workflow
Supply chain | Supply Chain Management, Commerce
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PR>RFQ>PO workflow

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Posted on by RV-11061208-0 6
Good day,
 
We are trying to set up a workflow for our PR and PO processes.
The ultimate aim is to have final approval on PO.  Our challenge is how to overcome the PR workflow and still be able to follow the RFQ process.  Proposed business process:
1. Create PR for purchase need
2. Budget owner approve that the need is valid (no financial values on PR)
3. If no Purchase or Trade Agreement exists it must workflow to a buyer for RFQ process.
4. Once RFQ process is completed the buyer confirms completion - the workflow checks that all price and vendor fields are completed and auto approves
5.PO is created and the PO submitted to workflow according to delegation of Authority.
6. If contracted pricing exist - the PR can be auto approved and PO created that will be submitted to the PO approval
 
 
What is best practice regarding PR>RFQ> PO approval workflow and is the above set up possible?
Categories:
Dynamics 365 Supply Chain Management
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  • Verified answer
    okanpiskin Profile Picture
    okanpiskin 45 on at
    Hi, 

    Yes, in my opinion your proposed business process is possible and follows standard D365 F&O best practices for a structured PR-to-PO procurement cycle.
     
    1- PR Creation & Budget Owner Approval
    Use the Purchase requisition review workflow. You can route the PR to the standard "Departmental" or "Cost Center" owners using organization hierarchies (signing limits or managerial hierarchies) without requiring final financial values at this stage.
    Keep the PR lines as "Category" based if items aren't fully known yet. The budget check can either be informational or linked to purchasing policies.
     
    2- Routing to Buyer for RFQ (No Agreement Exists)
    In the PR workflow, you can add a conditional decision node. You can use fields like Purchase agreement (or custom flags/prices being zero) to branch the workflow. If no agreement exists, the workflow action should be set to route the PR line to the Purchase requisition line review or automatically trigger the Purchase requisition RFQ creation process.

    Use Purchasing policies to control how PR lines are converted into RFQs automatically or manually by the purchasing agent.

    3- RFQ Completion & Auto-Approval
    When a buyer creates an RFQ from a PR, the PR status automatically changes to "In review". Once the RFQ is accepted and replied to by the vendor, the buyer "Accepts" the bid. This action automatically updates the unit price, vendor, and trade agreement details back onto the originating PR line.

    You can configure the PR workflow conditional settings so that if the Price > 0 and a Vendor Account is populated (and it matches the RFQ outcome), it passes through an automated approval task.

    4- PO Creation and Delegation of Authority Workflow
    Once all PR Lines approved, Go to Procurement and sourcing >Purchase Requisition > Approved purchase requisition processing > Release approved purchase requisitions. If there are multiple PRs for the same vendor and their requested dates are compatible, you can combine these approved PRs—for which the RFQ processes have been completed—using the Consolidation opportunities menu item. You can use the standard Purchasing policy (Purchase order creation and demand consolidation rules) to automatically convert approved PRs into POs.

    Once the PO is generated, it will independently trigger the Purchase order workflow. Here, you can map your matrix based on your company's formal Delegation of Authority (DoA) using standard financial workflow hierarchies, signing limits, or user groups.

    Spend some time tuning your Purchasing policies under Procurement and sourcing > Setup > Policies. This is the engine that smoothly bridges the gap between a PR line, an RFQ, and the eventual auto-generation of the PO.

    Hope this helps.

    Wishing everyone happy, error-free AX and D365 days!

  • Verified answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 306,854 Super User 2026 Season 2 on at
    Hi,
     
    Your required process and the flow in Dynamics 365 is a bit different. You can watch how to create an RFQ from a PR in this video from Mohammad Yasar: Episode 46 | Request for quotation process in D365 (Step by step)
     
    Here you can see that you after a workflow submission of the PR, an RFQ can be generated to get clarity on the vendor and the prices. After that the approval of the PR can be completed. There is no option in the standard to approve the validity of the need before creating the RFQ. and then continue with an auto approval.
  • RV-11061208-0 Profile Picture
    RV-11061208-0 6 on at
    Thanks for the valuable inputs. I was able to set it up correctly and with the adjustments of Purchasing Policy were able to automate the PO creation.
     
    A follow up question I need assistance with please.
     
    We have the workflow parameter activated that the submitter cannot be an approver.  We do have the scenarios on our small sites where we provide facilities management services that we only have one person on site.  this person will create the purchase requisition and will also fulfill the buyer role and thus responsible to create and send out the RFQ if needed.   However, with the parameter activated it seems that the PR can't be routed back to the submitter for RFQ processing.  Is there any way to trigger the "Create RFQ" on a PR without submitting it to the workflow - or how can you overcome this block since it seems that the PR must be in review status to enable the RFQ process.
     
    I have tried using a Review task on the workflow to see if that circumvents the limitation, but it is still giving an error based on submitter can't be approver.
     
    Could using a queue be a possible option?
     
    Regards

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