Purchase Agreement Setup in Ax 2012


When it comes to managing and organizing transactions between buyers and sellers, creating a purchase agreement is a critical step. In AX 2012, Microsoft Dynamics` all-in-one business management solution, setting up a purchase agreement is straightforward and efficient.

Firstly, navigate to the Purchase Agreements module in AX 2012. Here, you will be able to create new purchase agreements, manage existing ones, and set up different criteria for each agreement. Begin by clicking on the ‘New’ button to create a new purchase agreement.

Once you have clicked on ‘New’, you will be prompted to enter the basic details for your purchase agreement, such as the vendor you are conducting business with, the start and end dates of the agreement, and the type of agreement that you are creating. AX 2012 offers two types of purchase agreements: quantity-based and value-based.

Next, you will be asked to define the specific criteria that your purchase agreement will be based on. This can include factors such as minimum and maximum order amounts, pricing tiers, and discounts. You can also set up additional criteria such as delivery timeframes and shipping locations.

Once you have defined the criteria for your purchase agreement, you can set up the pricing information. You can choose to base pricing on a fixed amount, percentage, or currency exchange rate. You can also set up a hierarchy of pricing tiers, which will allow you to offer different pricing options depending on the volume of goods purchased.

Finally, once all the details have been entered, you can activate your purchase agreement. This will make it available for use in the procurement process, meaning that whenever you place an order with the vendor, the terms and conditions of your purchase agreement will be applied.

In conclusion, setting up a purchase agreement in AX 2012 is a simple and functional process that can help streamline your procurement process. By defining specific criteria, setting up pricing information, and activating your agreement, you can ensure that all transactions between your organization and your vendors are conducted smoothly and efficiently.