1. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Accounts Payable + Procurement & Sourcing Workflows

2. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Procurement and sourcing workflows 2 1.Workflow best practices 2.Accounts Payable Invoice Journal workflow 3.Accounts Payable Invoice workflow 4.Purchase requisition workflow 5.Purchase order workflow 6.Mobile/email approval notifications 7.Workflow in Dynamics AX

3. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Workflow best practices – Analysis Phase 3 Analyze: 1.Start with simple workflows 2.Analyze your need for Accounts payable and Procurement workflows. 3.Analyze the workflow preparation and workflow approval: daily, weekly or monthly volume. 4.Who will be the preparers and who will be the approvers and how many approvers do you need? 5.Do we need to escalate approvals if not completed within certain time? 6.Do you need to add conditions that certain dollar amount of purchase orders and purchase requisitions will go to specific Reviewer? 7.After approval do you want the originator to post the AP invoice for example or to you want to auto post? 8.Activate Change Management and Vendor Portal in conjunction with your approval process?

4. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Workflow best practices – Design, Testing and Deployment Phases 4 Design: 1.Generate design documentation of agreed up on workflows. This could be a Word document or more elaborate using Visio flows or both. 2.Have management approve the documentation of the workflows 3.Design the actual workflows in a Test AX environment Test/Train: 1.Assign the AX user roles in for originators and approvers in the test environment 2.Run testing scenarios for each type of workflow and document issues. 3.Conduct rework and re-test workflows, if needed 4.User training of the completed workflows. Apply: 1.Deploy the workflows to the Production environment after regular business hours.

5. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech AP Invoice journal workflow You may apply a workflow on the AP invoice journal to be able to review and approve the expenses such as consulting or utility expenses before posting them in the system Proceed to generate journal as usual and then press submit to route for approval 5

6. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech AP Invoice journal workflow The posting capability won’t be available until the journal has been approved 6

7. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech AP Invoice workflow You may apply a workflow on the AP Invoices form to be able to review and approve purchases bases on purchase orders before posting them in the system. Enter comment and submit for approval 7

8. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech AP Invoice workflow The Approver has the options shown on the right. 8

9. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech AP Invoice workflow The Reviewers options: Approve: you agree with the details and supporting documents Reject: don’t agree with the document and the workflow ends. Request changes: send the document back to the originator to make changes to the document. Delegate: send off the document to be approved by somebody else View History: view the progress of the workflow through the system 9

10. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech AP Invoice workflow Enter comment and Approve. If setup workflow will populate notifications. 10

11. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Purchase Requisition workflow Generate purchase requisitions for indirect materials purchases such as office supplies and maintenance equipment through purchase requisitions The preparer may enter relevant instructions with the submission. 11

12. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Purchase Requisition workflow Approve the purchase requisition to create a purchase order Enter relevant instructions before approving the purchase requisition 12

13. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Purchase orders workflow Use purchase orders for direct materials purchases for production Enter relevant instructions before submitting purchase order for review 13

14. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Purchase orders and change management When Change Management is activated purchase orders cannot be changed unless you make Change Request. Press: Request Submit the PO for approval 14

15. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Sample AP Invoice Workflow I created this AP Invoice workflow with $1,500 condition and auto- posting. 15

16. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Assignment Type – Approver Options Enter Title and Instructions for the notification received by the approver. 16

17. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Assignment Type – Approver Options 17 Participant = Allows for role (security role) or (user) group based assignment (chose user group) Hierarchy = uses organizational hierarchy Workflow user = workflow originator, work item owner or workflow owner User = apply specific user(s) None = not supported

18. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Assign User(s) If selected the User, then add in the Approver. 18

19. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech (Optional) Assign Time Limit If desired, select Time Limit to complete approval 19

20. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Completion policy Designate how may approvers are need to complete the approval. Single Approver: most common. Only one approval needed. 20

21. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Completion policy Designate how may approvers are need to complete the approval. Single Approver: most common. Only one approval needed. 21

22. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Completion policy Condition: You an enter conditions when approval is to apply Escalate: You assign approval to other approver if not completed in timely. 22

23. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Workflow Associations  Purchase requisition workflows in Microsoft Dynamics AX have their Association property set to Organization-wide.  This means that any purchase requisition review workflow that you define by default applies to the entire organization. The benefit of this approach is that you need to define your purchase requisition review process only once.  When using the workflow element Conditional decision, different workflow branches can be linked in whether a condition is true or false such as the legal entity.  Purchaser orders and AP Invoice workflows association are set to a Legal Entity 23

24. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Workflow Association 24 Here the conditions is set to that if the Legal entity is CEU or CEE then the PR will flow to the Reviewer, if not it will go to Purchasing Manager for approval and then to other reviewer.

25. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Workflow Association 25 Inside the condition element you set the restriction. True/False.

26. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Line Item Purchase Requisition 26 Example: Let’s say each line on the Purchase Requisition are purchases for different Departments and each department head needs to review the line item. You have to create two workflows. One Purchase requisition review workflow and also a Purchase requisition line review workflow The Purchase requisition review workflow initiates the line-item workflow. The Purchase requisition line review workflow has to be completed first before the overall Purchase requisition workflow can continue. As a result, the entire purchase requisition workflow can only completed in full when each and every element in the line-item workflow have been completed.

27. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Line Item Purchase Requisition 27 First, create the Purchase requisition line review workflow.

28. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Line Item Purchase Requisition 28 Second, you create the Purchase requisition review workflow

29. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Approval limits & Spending limits Two Types: 1.A spending limit is the maximum amount a worker is authorized to spend on business-related purchases. 2.An approval limit is the maximum amount a worker is authorized to approve when submitted to workflow. Specify how much an employee can approve or spend. Organization administration > Setup > Signing limits > Signing limit policies Setup Signing Limit Parameters too. 29

30. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Step 1: Approval limits – Setup Approval Limit Here I’m assigning approval limits that Approvers can approve per PR. If the PR amount is $0-$10,000 the Accounting Manager only has to approve If the PR amount is: $10,001-$25,000 the Accounting Manager and Budgeting Manager have to approve 30

31. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Step 2: Approval limits If you defined Job as IT Administrator and Spending Amount $1,000 and define the PR: Preparer’s spending limit. PR under $1,000 does not have to be approved If you defined Job as Accounting Manager and Approval Amount $10,000 and PR: Approval Amount the AM can approve a PR up to $10,000 in value. 31

32. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Auto-Approvals You can setup on the Approval Element on Purchase Orders or AP Invoices. For example, to auto-approve all purchase order or AP Invoices below $1,000. 32

33. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Setup/Issues The workflow infrastructure wizard under System administration>Setup must be run Also, when batch services are not set up/running you have to start the form Tutorial_WorkflowProcessor from the AOT/Forms so the workflow items get executed Your user must have a record in the Purchase requisition permissions form (at a minimum the legal entities you can work for) Procurement and sourcing> Setup> Policies>Purchase requisitions permissions Purchasing policy must exist: Procurement and Sourcing> Setup> Policies> Purchasing policies Procurement hierarchy (minimum 1 node, 1 category page and active) must be created and associated with a procurement hierarchy type. Product information management>Setup>Categories>Category hierarchy Procurement categories must be linked to the category hierarchy. Procurement and Sourcing>Setup>Categories>Procurement categories 33

34. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Setup/Issues Analysis/Planning: Users setup too complicated workflows right away that slows down processing of Purchase Requisitions, Purchase Orders and AP invoices postings in production. Too few approvers, approvers spending a lot of time approving Purchase Requisitions, Purchase Orders and AP invoices. The approval process become a rubber stamp process. Setting up approvals for all purchases no matter what the amount purchased, no spending limits or too low spending limits. Setting up as many workflows as possible in AX so the company runs into workflow fatigue. Review 34

35. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Purchase orders workflow and emails/mobile devices You receive an alert in your Outlook email inbox on mobile device or computer. This is sample message. Select to Approve or Reject the purchase order 35

36. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Purchase orders workflow and emails/mobile devices  If you selected Approve in the Outlook email, you will receive this webpage  Enter comment  Then, press Approve 36

37. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Workflow design in Dynamics AX 37

38. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Workflow design in Dynamics AX 38

39. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Summary 1.You can use Approval limits to set maximum approval limits per document 2.You can use Spending limits to set limits without approval, so you don’t have to approve every single expense. 3.You can set Conditions to documents with one $ Amount it is routed one way to one Reviewer and if of other amount routed another Approver. 4.You can setup multiple approvers in a series (By Multiple Approval Elements or Hierarchy) 5.You can setup so each line in the purchase requisitions to be approved separately 6.You can setup so the purchase requisition through Condition will routed differently depending on the preparer 7.You can setup for automatic posting after approval or at set Amount 8.You can setup so if not approved with set time the workflow is escalated to other approver 9.You can setup email approval process on mobile devices. 39

40. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech Sharing 1.Share workflow implementation road blocks. 2.How were they resolved? 3.Share workflow success stories. 4.Questions. 40

41. © Arbela Technologies Corpwww.ArbelaTech.com@ArbelaTech T H A N K Y O U www.arbelatech.com 41