planned purchase orders not linking to purchase agreement

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Posted on by Community Member Microsoft Employee

We have noticed that when we firm planned purchase orders that currently have an Effective and approved purchase agreement, it is not linking to that purchase agreement. The purchase agreement type is "Product quantity commitment". Below is our master scheduling set up:

Standard Update

Firm - purchase

Group by vendor: checked

Group by buyer group: unchecked

Group by purchase agreement: checked

Group by period: Week

Find purchase agreements: checked

Why wouldn't the releases link to the purchase agreements?

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guk1964 10,877 on at

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RE: planned purchase orders not linking to purchase agreement

If you have more than one vendor agreement for the same item, then how should the system decide which agreement to select? It will not search across all vendors and agreements for all items.

As mentioned above you need to specify a primary/preferred/default vendor or manually choose when firming the order.

If the parameter is set and planned order can be met by an effective purchase agreement for the item(s) then Ax will select that vendor and the relevant price, and the planned order will be a release order against that agreement when firmed.
Julian Webb 59 on at

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RE: planned purchase orders not linking to purchase agreement

Hi,

Yes, I understand all that. My question was that if the flag has been enabled in the MP parameters, will AX still look for a valid Purchase Agreement if no default vendor has been defined on the item card, and if one has been defined, will it look for a valid Purchase Agreement configured against a Vendor other than the default vendor?

Finally, in both of the scenarios I've described above, will AX treat these planned orders as a call-off from the relevant Purchase Agreements as well as taking the PA price?
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guk1964 10,877 on at

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RE: planned purchase orders not linking to purchase agreement

In the Master planning parameters you can specify whether AX should try to find and link purchase agreements. Look at the parameter in master planning called find purchase agreements. The way this works is that when you have a planned purchase order that is suggested from master planning, then when it is firmed and the parameter is not enabled then the price is picked up from the default price of the item, so when you have purchase agreements they will be ignored.

When you enable the parameter, then master planning will check, whether there is an agreement for the item from the vendor that is the default vendor for the item and apply that to the purchase order when it is firmed.

When creating release orders against purchasing agreements with value commitments, you have to add item quantities in a different way -, see this quote by Microsoft:

“Only commitments of the Product quantity commitment type are available in the Create a new release order form. To create a purchase release order from commitments of the Product value commitment type, you must first create a purchase order, and then you can add purchase order lines for these items.”

— technet.microsoft.com/.../hh545520.aspx

However, if you have quantity commitment then this should not be the case so double check the specific agreement is set to quantity not value.

Do you have any min or max release parameters set?
Julian Webb 59 on at

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RE: planned purchase orders not linking to purchase agreement

I noticed something when I was configuring this for a client myself.

In the Master Planning Parameters form, the help text for the Find Purchase Agreements check box states "Search Purchase Agreements by the Primary Supplier"

Does that mean

If no Primary Vendor has been defined on the Released Item, AX will not link a Planned Order to a perfectly valid Purchase Agreement for that combination of Item/Vendor

If a Primary Vendor has been defined on the Released Item, but a Planned Order has been raised against a different vendor (Assuming the second vendor is approved, if Approved Vendor is enforced) , AX will again not link the Planned Order to a valid Purchase Agreement with a secondary vendor?

I'm going to test this myself when I get a chance, but I was wondering if anyone knew the answer already?
Sagar Suman 5,774 on at

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RE: planned purchase orders not linking to purchase agreement

Hi CEI,

Also check the fulfillment tab of the purchase agreement and check if "Max is enforced" is checked and remaining quantity in the fulfillment tab and see if there is quantity left for that agreement and is more than the purchase order quantity.
Community Member Microsoft Employee on at

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RE: planned purchase orders not linking to purchase agreement

Hi Sagar, the dates do fall between the effective dates and the "find purchase agreement" is checked.
Sagar Suman 5,774 on at

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RE: planned purchase orders not linking to purchase agreement

HI CEI,

Check if the delivery date of the firmed PO is falling between the "Effective date" and the "Expiration date" of the purchase agreement.

AX will automatically find a purchase agreement if the purchase order delivery date lies in between the effective date and expiration date of the purchase agreement.

Also check if the "Find purchase agreements" Check mark in master planning parameters is checked to yes.