Purchasing Policies – Set up policies for procurement category hierarchies in Microsoft Dynamics 365 Finance and Operations: Part-1

Purchase policy is kind of black box for many of us, we often forget to use this during the process mapping in the project and major reason which I think is that we do not give importance or maybe we are not much aware about this, So I just thought to write about this so that we can start using this and define the effective business process for the customers.

So, main question is what is purchase policy so as name suggest its kind of policy enforcement for the purchase process, now purchase process is having different sub processes e.g., Purchase requisition, RFQ, Purchase order etc… So, if we want to define any rule or restriction on these processes, we can do through “Purchase policy”. There are many different types of policy rules which we can define in system.

I will start with one policy in this blog and try to write more about other policies in future blogs.

I will explain about “Procurement Category hierarchy” access policy.

Let’s understand with one scenario: USMF company has the procurement category hierarchy defined but company wants users to create purchase requisitions only for “Office machines” category or its subcategory. User should not be able to select any other category or even any other product which is not party of this category or its subcategory.

Lets see how we can do this:

Step-1: Create or find the procurement policy.

Navigate to, Procurement and sourcing > Setup > Policies > Purchasing Policies.

Step-2: Create Category Access rule

Select policy rule type as “Category access policy Rule” and Create Policy

Step-3: Select Category or subcategory for which you want to give access to this company.

Now let us validate whether policy is effective or not.

Create a Purchase requisition and try to add lines.

That’s it for this blog, hope this will help you in using the purchase policy.

Thank You!!! Keep reading and sharing!!!

Thank You Nikesh Kurhade for helping in writing this blog !!!


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