Invoice Workflow for Purchase Order in Dynamics AX 2012

For many years now the buzz has been around going paperless and how this would save time and money.  There is more to becoming paperless than just having scanned documents that you can retrieve as needed.  To make documents more useful the addition of OCR software can use some logistics to map data on the document to fields within Dynamics AX.

One of the most useful functions that this process has been used for is receiving Vendor invoices. This has been a great advantage to many Accounts payable departments with high volume of Vendor Invoices that are not associated with Purchase orders.  If you are a company with a high volume of purchase order and you want to continue doing 3 way matching there has not been any products on the market that fills that niche well.

I have recently reviewed a products latest release for Dynamics AX 2012 R3 but it is compatible back to Dynamics AX 2009.  This product has impressed me with its handling of Purchase order invoices and standard invoices.  In addition this product has an extensive set of rules for workflow to direct vendor invoices to the correct departments for approval or Purchase Order invoices when there is a discrepancy.

Invoice Work Flow by To Increase, has 3 ways to consume your invoices.

Paper or PDF

OCR – there is already an integration for ReadSoft

XML-EDI – there is an integration for Lasernet

There are a number of field that are used to validate the Invoice.  Once the invoice is entered the 1st set of rule will decide if the invoice can be posted automatically.  This could be dollar amount, vendor group or other criteria setup.

1

When invoices move to workflow approval process there a number of criteria that can be set to decide the direction the invoice should follow.    In the three main boxes you can see that IWF integrates with purchasing, accounting and projects.  The workflow engine will direct the workflow as the rules are written, allow for out of office substitutions, reminders and escalation.  Those notification can be sent via email or the workflow foundation in Dynamics AX.

Once approved they will move on to be paid.

Additionally IWF integrates into AX like a standard module and has its own build in security roles.  IWF has its own document management functionally and allows you to decide where to store the document on SharePoint. Lastly, IWF allows you to format the emails templates that you send with email notifications.

Once you setup the import process for your files.

2

You will be able to set this up to run in batch

3

The invoices once imported are visible in a single window

4

Review the invoice and fields is done by clicking on the tabs

5

IWF has a log tab on both the Header and lines of the invoice to help you know what needs to be done to the invoice to pass into workflow.

6

Once AP completes the basic information on the invoice it will be routed to the correct approver.

7

The approval will see this window and has a few options

Approve

Change Status to Reject

Redirect to another approver

8

This is part of the larger window where the invoice and all its detail can be reviewed.

9

There are variation on posting when you select different account types.

Fixed Assets

Projects

10

All the above functions are part of what you would expect form an Invoice workflow process. Now let’s look at the way we deal with Purchase orders.  The import process will work the same as other invoices.

To do 3 way matching you need

Purchase Order

Purchase Order Receipt

Purchase order Invoice

11

Add your Charges at the line or header level

12

Especially when using electronic methods of sending an invoice, the invoice will appear in the Accounts Payable department before the shipment arrives on the dock.  You may still process the invoice to a certain stage while waiting on the receipt to be entered.

Instead of matching up PO invoice by PO invoice, you can run a batch process called Automatic purchase invoice approval and posting on a scheduled basis or manually that will perform the matching, approval, and posting per your configuration.

13

After all of that you can process the Purchase Orders to the correct workflow based on the 3 way matching details or post so they can be paid.

Contact us today to learn more.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s