Always copy item description to purchase order purchasing policy parameter in Microsoft Dynamics 365 for Supply Chain Management

In this blog post I would like to provide the comparison table of the behavior with/without Always copy item description to purchase order purchasing policy parameter being enabled for the non-item line. 

Comparison table for the 2 settings that affects Product name and Text fields on the Purchase order page for the category line:

• Include both name & description (path: Procurement & Sourcing > Setup> Form Setup > General)
• Always copy item description to purchase order (path: Purchasing policies > Purchase order creation and consolidation rule > Item description transfer tab)

The configuration for the last can be found here:

When you create Purchase order line manually or through the purchase requisition process, there are 2 fields available on the purchase order line, Product name and Text fields. The logic for these fields depends on the Include both name & description parameter and Always copy item description to purchase order. 

In this scenario we are going to review non-item related line and the logic for the Product name and Text fields.

To sum up: For category items, when purchase order is being created from the purchase requisition, Product name and Text get defaulted from the Purchase requisition item description if "Always copy item description to purchase order" parameter is activated. Otherwise, it will take into consideration Include both name & description and behavior for the Product name and Text may vary. 

That's it!

Intercompany percent functionality in Microsoft Dynamics 365 Supply Chain Management

Purpose: The aim of the Intercompany percent functionality is to address the scenario when the unit price on the IC sales order is used as equal to the cost price, and the vendor does not receive any profit margin. To compensate for the loss of profit margin, the vendor can add a charge to get a percentage of the Net amount from the original sales order line.

Business scenario: 

The Intercompany vendor sells the items to the distribution company by using the cost price as a unit price. Instead of a margin, the vendor adds a miscellaneous charge as a percent of the unit price on the Original sales order.

Example:

The unit price on the Original sales order in DEMF is $300.00 U.S. Dollars (USD). The cost price for the item in USMF is $125.00 USD. Therefore, the sales price on the Intercompany sales order is set equal to the cost $125.00. This sales price is synchronized as the purchase price to the Intercompany purchase order in DEMF.

If a miscellaneous charge on the sales order line of the Intercompany sales order is set to Intercompany percent in the Category field, and the charge value of 10 is set up, 10 percent of the unit price of the Original sales order is added. In this example, this is 10 percent off  $300.00 or $30.00.

Walkthrough: 

Setting Unit price equal to cost price

• Open USMF > Sales and marketing > Customers > All customers and select an Intercompany customer. 
• Select General and then Intercompany on the Action Pane. 
• Select Sales order policies. 
• Select the Unit price equal to cost price parameter to use the cost price instead of trade agreements or the defined sales price on the item.  
• If the "Unit price equal to cost price" parameter is selected, you can select the Initiate original customer invoice posting parameter. This means that if the posting of the invoice on the Intercompany sales order is stopped because of an error, the invoice on the Original sales order is posted anyway.

Setting Auto charge for the Intercompany percent

• Go to USMF > Accounts receivable > Setup > Charges setup > Auto charges.
• Change Level to Line. Note: Intercompany percent is allowed only on intercompany sales/purchase order lines.
• Select New and fill in the required fields.

Process:

Go to DEMF > Accounts receivable > Orders > All sales orders

Create a new sales order for DE-010 customer

Create a new line for D0001 item, qty = 3 pcs, unit price = 600 euro

Select New Purchase order on the Action pane > Include > OK.

Go to the DEMF > Purchase order created and make sure that Charges have been added.

Go to the USMF > IC Sales order created and make sure that Charges have been created as well.

Note: I would like to explain what is going on with prices and how they are synchronized to the purchase order. In the presented scenario, for the intercompany customer on the Intercompany setup > Sales order policies configuration, "Price and discount search" parameter was activated. It means that when IC SO is created, the system will try to find the sales price. In this case, a valid sales trade agreement for 330 USD was found, later on this price was synchronized back to the IC PO. Since "Unit price equal to cost price" parameter is also activated, when reservation is done on the IC SO, the actual cost of the item will be identified, and unit price will be updated on the IC SO and then synchronized back to the IC PO. Keep in mind that cost identification cannot happen immediately when IC SO is created, it can happen only when inventory is reserved (manually, on through packing slip posting etc.).

In the IC SO, complete reservation and packing slip posting. Note that unit price is updated by the cost price of the item.

In the IC SO, post invoice. Once posted, check the charges. 

Misc. charge amount calculated as a percent of the Net amount of the original sales order line (in company DEMF). 

The Net amount of the Original order is 1200 EUR. If you calculate it in the currency of the IC SO (USD) it would be 1643.84 USD. You can use Totals page from the Original SO and by changing the currency you can identify the right amount and exact exchange rate. 

So, 5 % of the 1643.84 USD is 82.19 USD.

Now, proceed with IC PO posting process: Confirm, post Product receipt and Invoice the PO. 

That's it!

Prepare Microsoft Dynamics 365 Supply Chain Management environment for the demo

In this post, I would like to go through small tricks that might be useful when you configure your environment for the demo purposes.

To hide the navigation pane that is shown in Supply Chain Management, add the following text to the end of the URL in the browser's address bar: &limitednav=true.

This might be useful when you are working inside of the Teams and you want only to display information, and not let the user navigate out of the page. This will prevent the user for exiting the form.

To open the client as SCM instead of F&O, add the following text to the end of the URL in the browser's address bar: &skuName=d365_scm.

That's it!

Purchase order prices/amount parameter on the Vendor master data in the Microsoft Dynamics 365 Supply Chain Management

There is a parameter "Purchase order prices/amount" on the Vendor master data (Accounts payable > All vendors > Purchase order defaults FastTab). 

This parameter determines whether you would like to print price details on the Purchase order confirmation report. 

The illustration below shows the difference, when this parameter is enabled/disabled.

Note: The field that is initialized when Purchase order confirmation is posted, store in the VENDPURCHORDERJOUR table, AMOUNTPURCHASEORDER field. If AMOUNTPURCHASEORDER = 1, prices will be printed, if AMOUNTPURCHASEORDER = 0, not.

That's it!

Solved: Workflow editor is not opening in Microsoft Dynamics 365 Supply Chain Management

Recently I have tried to make an adjustment for the Purchase order workflow in Microsoft Dynamics 365 for Supply Chain Management. When I pressed Edit button, nothing has happened, workflow editor has not showed up. 

To solve this issue, I had to run the following command:

rundll32 dfshim CleanOnlineAppCache

The Contoso personas in Microsoft Dynamics 365 Supply Chain Management

When you are providing a demo for the potential customers in D365 SCM, typically you use Contoso demo data with the existing the Contoso personas. 

In some occasions, you need to create a slide talking about the personas that will be used for the demo, including pictures and their roles. 

In this blogpost, I would like to share the list of the links that I used for the recent demo and I found them useful:

This is the site where you can find the names, pictures and the job descriptions for the Contoso personas:

Microsoft Dynamics Customer Model (d365-design.azurewebsites.net)

Here you can find the list of the Contoso personas available out of the box and the security roles assigned:

How do I login to the new AX as a demo user persona? - Microsoft Dynamics 365 Blog

That's it!

Consolidate multiple purchase requisitions into single purchase order by accounting date in Microsoft Dynamics 365 SCM

Business scenario: Typically when you have multiple approved purchase requisition lines (from different purchase requisitions) that are procured from the same vendor, it is highly unlikely that the requisition lines from the different requisitions have the same accounting date (which can be defaulted from the requested date via Purchasing policies: Use requested date as accounting date parameter in the Purchase requisition control rule policy is set to "Yes"). In this scenario, when you purchase order is created for such requisitions, multiple purchase orders are created based on the accounting date. This lead to the procurement department to do the following:

1. Either manage several purchase orders for the same vendor instead of having all the consolidation opportunity lines appear on one purchase order; or
2. Manually delete the "extra" purchase orders and add the lines to one of the POs that was generated.  This will result in the reference being lost between the requisition and the purchase order.

However, there is a configurations that was introduced to solve this issue and consolidate multiple requisitions into single purchase orders in case if accounting dates are different. 

To control the consolidation behavior you need to activate the new feature:

• Feature: "Consolidate multiple purchase requisitions into a single purchase order by accounting date"

• Feature description: This feature allows for the consolidation of multiple purchase requisitions into a single purchase order if the different purchase requisitions have different accounting dates. Purchase order creation and demand consolidation purchasing policy rule can be setup to drive the decision for grouping requisition lines by accounting date on purchase order level automatically. Warning!: Consolidation purchase order by accounting date is not supported if budget control is enabled because the accounting date is used, for budget reservations and encumbrance. Therefore, it should be kept during the transition from purchase requisition to purchase order.

Once the feature is activated, new parameter "Consolidate by accounting date" will be available in the Purchasing policies > Purchase order creation and demand consolidation rule.

Note: If your organization has budgeting control activated, this parameter will not have any affect. The system will be creating multiple purchase orders in this case. 

Let's walk trough the scenario, when approved purchase requisitions are released manually through "Release approved purchase requisitions" page. For this scenario, manual purchase order creation is enabled (Purchasing policy > Purchase order creation and demand consolidation rule > Manual purchase order creation tab > Manually create purchase orders).

Create and approve requisition lines with different requested dates.

When "Consolidate by accounting date" is OFF, releasing multiple PR with different accounting date, will create multiple POs. 

Create and approve requisition lines with different requested dates.

When "Consolidate by accounting date" is ON and Budget control is OFF, releasing multiple PR with different accounting date, we create single PO. 

If your organization tends to use the consolidation opportunity to group purchase requisition lines for similar products to streamline the procurement process with a vendor, "Consolidate by accounting date" will be also taken into account in that process.

To walk through this scenario, we will do the following:

• Set the Use requested date as accounting date parameter in the Purchase requisition control rule policy to "Yes".
• Set the Always allow demand consolidation parameter to "Yes" (Purchasing policy > Purchase order creation and demand consolidation rule > Demand consolidation tab > Always allow demand consolidation).
• Create and approve requisition lines with different requested dates (accounting dates will match the requested dates based on the parameter in step 1).

• Create a consolidation opportunity and add the lines created in step 2 to the opportunity.

• Set Consolidation quotation number for all lines.
• Close the consolidation opportunity.
• Multi-select the consolidation opportunity lines and click the Create purchase order button.

When "Consolidate by accounting date" is OFF, multiple POs will be created.

When "Consolidate by accounting date" is ON and Budget control is OFF, single PO will be created.

"Consolidate by accounting date" parameter is also taken into account when purchase order creation is done automatically once purchase requisition is approved (Purchasing policy > Purchase order creation and demand consolidation rule > Manual purchase order creation tab > Automatically create purchase orders. 

That's it!