Create purchasing policies
Dynamics 365 for Finance and Operations has evolved into purpose-built applications to help you manage specific business functions. For more information about these changes, see Dynamics 365 Licensing Guide.
This topic shows you how to create purchasing policies to align with your business processes for purchasing. Before you can create purchasing policies, you must set up the purchasing policy parameters. It's possible to create, modify, and retire a purchasing policy, but you can't delete a purchasing policy. This procedure would typically be carried out by a purchasing manager. You can use this procedure in demo data company USMF or on your own data.
Set up policy parameters
- In the navigation pane, go to Modules > Procurement and sourcing > Setup > Policies > Purchasing policies.
- In the Action Pane, select Parameters.
- Policy precedence rules apply to different levels in your organization. The organizational units that are shown depend on your organizational hierarchy, and on which levels in the hierarchy have been assigned the purpose of Procurement internal control. For example, your organization might have legal entities, cost centers, regions, and departments, but it may be that only some of these have a hierarchy purpose of Procurement internal control. As a default, the organization of type Company is available.
- Select the Policy rule type parameters tab.
- In the tree, go to Purchasing policy > Purchase requisition control rule.
- You define the order of precedence for policy resolution at the policy level. However, for some policy types, you can override the order of precedence for individual policy rule types. For example, you might define the order of precedence for purchasing policies to be: cost center, department, company. For the catalog policy rule, you might want the order of precedence to be: department, cost center, company. You can change the order of precedence for the Catalog policy rule. When a worker creates a requisition, the catalog that is displayed is determined by the policies that are associated with the worker's department, then their cost center, and then their company.
- If there's more than one organizational level listed, you can use the Up/Down arrows to set the order of precedence for the Purchase requisition control rule.
- Close the page.
Create a new policy
- Select New.
- In the Name field, type a value.
- In the Description field, type a value.
- A single purchasing policy can only apply to one organization hierarchy. For example, you could have one hierarchy called "Geographic" and one called "Department", and have a different purchasing policy for each.
- Select an organization that the policy should apply to.
- Select the arrow to add the selected organization.
- You can repeat this process to add more organizations.
Add a policy rule
- In the Policy rule type list, select Requisition purpose rule.
- You'll create a rule that sets the default requisition purpose to type Consumption but allows the Replenishment type to be selected instead.
- Select Create policy rule.
- Select Yes in the Allow manual override field.
- Select Close.
- Now you can set up other policy rules for the purchasing policy. Note that a Policy rule type cannot have overlapping rules that are active at the same time within a single procurement policy.