Configuring Fund Reservation for Purchase Orders
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A customer uses Dynamics 365 Finance.
The customer creates a purchase order for purchase $20,000 of office furniture.
You need to configure the system to ensure that the funds are reserved when the purchase order is confirmed.
Solution: Set up posting definitions for purchase requisitions.
Does the solution meet the goal?
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A. B.B.
No, the provided solution does not meet the goal of reserving funds when the purchase order is confirmed.
Setting up posting definitions for purchase requisitions only affects the financial posting of the purchase requisition, but it does not automatically reserve funds when a purchase order is confirmed.
To ensure that funds are reserved when the purchase order is confirmed, you need to set up a procurement category and configure the appropriate procurement and financial parameters. Specifically, you need to set up the following:
Procurement category: Create a procurement category for office furniture with a procurement type of "Purchase" and a category type of "Item."
Purchase order confirmation: Configure the purchase order confirmation control to reserve funds when the purchase order is confirmed. To do this, set the "Purchase order confirmation" field to "Yes" in the procurement and sourcing parameters.
Financial dimensions: Set up financial dimensions for the procurement category, such as department or cost center.
Budget control: Set up budget control rules to ensure that funds are available before the purchase order can be confirmed.
Once these settings are configured, when a purchase order for office furniture is confirmed, the system will automatically reserve the necessary funds, based on the budget control rules that have been set up.
