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PO for Services where the amount is not definite..

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Dear All,

I have a scenario where after releasing the PO while doing GRN the amount needs to be adjusted,

for Example :- In PO 1 QTY, PO amount is 100000/- we need to make payment of 96745 (Services to outsource employees), how can i make the changes in amount on "Received Product Receipt" form so the correct amount can be paid to vendor..?

There is a option in PA with Value Commitment which can satisfy the requirement but its a lengthy process for customer,

Can anyone advise a easiest solution..?

Thanks

Nitin

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Ludwig Reinhard Microsoft Employee on at

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Hi Nitin Sharma,

Don't you make this adjustment when posting the vendor invoice?

Probably I overlooked / misunderstood something.

Therefore, it would be great if you could elaborate on your question.

Many thanks,

Ludwig

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AX-2012 Updates 215 on at

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Hello Mr. Ludwig,

Thanks for your Quick response,

YES, i can make the changes on the Invoice Posting but the customer uses the Encumbrance process to block the budget,

the process is like :- PR-PO-INVOICE

The Pre-Encumbrance and Encumbrance Journals are booked to block the budget,

Example,

i have 12 Lines, 1 line for each month, amount is 100k(p.m)

The budget is blocked for 1.20mn for the total amount of PO,

User does the GRN for 1st Month amount is 100k but invoice amount is 90K.

Finance makes the changes on the invoice amount from 100 to 90k and post the invoice, System reverse the Encumbrance amount which is been invoiced and books the actual's, System is not releasing the difference amount from encumbrance unless users "finalize" the PO which is possible only if the users receives all the quantity or cancel the remaining,

Please let me know if you have any doubt....

Thanks,

Nitin

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Ludwig Reinhard Microsoft Employee on at

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Hi Nitin,

Is it an option to setup individual PO's for each of the months to circumvent this issue?

Best regards,

Ludwig

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AX-2012 Updates 215 on at

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Hello ,

No because it will be an additional task for procurement, Raising so many PR's and those many PO's ( If user creates 1 PR and multiple PO's still the Pre - Encumbrance will be blocked at the PR level)

I believe, straightening the process is the right option here,

Option 1:- Raise individual PR and PO,

Option 2 :- PA-PO-Invoice

What do you suggest here..?

Thanks,

Nitin

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guk1964 10,888 on at

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A suggestion which might not fly:

Do you really need to use PO and encumbrance? Much depends on the overall contractual relationship and the range of monthly invoice values.

If its a recurring event, then you treat it like a utility bill, and process as a free text invoice?

Maybe you can have a reversing accrual journal for pending invoices.

To match invoice to a po of a difderent value you can:

Accept the price difference and post the invoice with matching discrepancies.

Revise the invoice amount to the expected amount and post the invoice.

Request a full credit from the vendor and a new, corrected invoice

https://technet.microsoft.com/en-us/library/hh292597.aspx

https://technet.microsoft.com/en-us/library/gg243265.aspx

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Khaled Alloud 3,658 on at

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Hello,

If the amount of the PO is 100,000 and the payment is for 96,745 what will happen to the remaining amount? will the remaining amount be paid later or it is written off?

Thank you,

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guk1964 10,888 on at

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After you accept the discrepancy and match then there is no remaining amount.

You will need to set tolerances for matching that accommodate the typical differences.

You can also override the line matching policy for purchase order lines in the Purchase order form.

One option is Not required –i.e. No price or quantity matching is performed.

Matching policy level: in the matching policy hierarchy you can set line matching policies for.

Item and vendor – Specify the matching policy for specific items that are purchased from specific vendors.

Item – Specify the matching policy for specific items that are purchased from any vendor, except those that are specified at the Item and vendor level.

Vendor – Specify the matching policy for all items that are purchased from specific vendors, except those that are specified at the Item and vendor and Item levels.

I suggest also review this help:

https://community.dynamics.com/ax/f/33/t/244044/reply?ReplyToContentTypeID=0

https://technet.microsoft.com/en-us/library/gg243265.aspx

https://technet.microsoft.com/en-us/library/gg230921.aspx

https://technet.microsoft.com/en-us/library/hh209508(d=printer).aspx

You will need to test to ensure you are happy that such matching discrepancy works with budget and encumbrance postings the way you expect, and whether you should also set up any approvals for variances outside of approves tolerances.

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