AX 2012 PURCHASING

Exercise 3.5 – Product Record

In order to accomplish purchase order processing in the following exercises, you need to set up a new product.
This first product is a trade item, later on we will continue with the more complex structures of BOM items.
Enter a new shared product with the product number I-## and the name “##- merchandise” (## = your user
ID).

It should be a regular stocked product without variants, serial or batch numbers. You want to track inventory
per site and warehouse. Choose appropriate dimension groups in the shared product.

Then you want to release the product to your test company. In the released product, select an appropriate
item group for merchandise and an item model group with FIFO-valuation.

The item sales tax group for sales and for purchasing should refer to the standard tax rate. The unit of measure
for the item is “Pieces” in all areas, and the main vendor is the vendor of exercise 3.2. The base purchase price
and the base cost price are 50 pounds, the base sales price is 100 pounds.

In the Default order settings for purchasing and sales, you should enter the main site as well as default
quantities (Multiple 20, Min. order quantity 40, Standard order quantity 100). In the Site specific order settings,
you should enter the main warehouse of the main site for purchasing and sales.

Note: If the number sequence for product numbers is set up for automatic numbering, you do not need to
enter a product number.

Instructions

You may register the new product in the list page Product information management> Common> Products> All
products and product masters. After clicking the button New/Product in the action pane there, the New
product dialog displays where you want to enter the Product number (if no automatic number sequence
applies), the Product name and the Search name (see Figure 3-7).

Note: If you want to apply manual product numbers, you have to make sure the number sequence for product
numbers is set to “Manual”. An easy way to check this is to access the number sequence setting in the product
information management parameters (Product information management> Setup> Product information
management parameters, tab Number sequences) and to choose the option View details after right-clicking on
the product number sequence code. In the number sequence form, make sure the checkbox Manuel on the
tab General is selected (for changing the setting, switch to edit mode).

Figure 3-7: Registering the new product in the quick create dialog

Note: If the Dynamics AX 2012 Feature Pack applies to your installation, additional fields referring to retail and
process industries display. Leave them empty.
Close the dialog clicking the button OK and make sure the new product is selected in the all products list page.
Clicking the button Set up/Dimension groups in the action pane of the list page then provides the option to
select the appropriate Storage dimension group and Tracking dimension group (see Figure 3-8).

Figure 3-8: Selecting dimension groups for the shared product

In order to release the product, make sure the new product is selected and click the button Release products in
the action pane. The Release products dialog then displays, showing your new product on the tab Select
products. After switching to the tab Select companies, put a checkmark in front of your training company and
click the button OK. After clicking OK in a confirmation dialog, the new product is available
in your training company.

You may find the product in the released products list page now (Product information management>
Common> Released products). After selecting your product there, you may click the button Edit on the action
pane tab Product to access the released product detail form where you have to add missing item data.

On the tab General in the released product detail form, you want to select the Item model group “FIFO” in the
sample company. Data referring to purchasing are available on the tab Purchase, where you want to enter the
Item sales tax group, the base price in the field Price and the main vendor in the field Vendor.

If the default for the unit of measurement as specified in the inventory parameters (“Pcs.” in the sample
company) is not applicable to your product, you have to change the inventory unit of your product in the field
Unit on the tab Manage inventory before changing the purchase unit on the tab Purchase.

On the tab Sell, check the Unit and enter the Item sales tax group and the base sales price (field Price)
applicable when selling the product. On the tab Manage costs, select the Item group for merchandise (“ME” in
the sample
company) and the base cost price (field Price).
Figure 3-9: Specifying purchasing related data on the tab Purchase of the item form

In order to specify further defaults for purchasing and sales, you have to click the button Order
settings/Default order settings on the action pane tab Manage inventory. In the default order settings, you may
leave the Default order type “Purchase order” on the tab General and enter the required settings on the tabs
Purchase order,
Inventory and Sales order as shown in Figure 3-10.

Figure 3-10: Entering order quantities in the default order settings

After closing the default order settings, you may access the site-specific order settings clicking the button
Order settings/Site specific order settings on the action pane tab Manage inventory of the released product
form. In the site-specific order settings, you want to insert a line referring to the main site with the default
warehouse for purchase, inventory and sales.

Note: After releasing a shared product, you may directly access it from the shared products page as an
alternative to the menu item Product information management> Common> Released products. Click the link
More in the factbox Authorized by company of the shared product form and then apply the table reference
(View details) on the column Item number in the dialog. It might be necessary to refresh the screen (F5)
after releasing a product to view it in the factbox.