Workflow Signing Limit [Purchase order] in Microsoft Dynamics 365 finance and Operations: Part-3

In this blog, I will try to explain about signing limit policy which we can setup and attach to the workflow.

Part-1 and Part-2

A signing limit defines the largest financial commitment that a worker is authorized to make on behalf of an employer. As a direct result of a worker’s spending activity, and approval of the spending activity by the worker’s manager, the organization may form a contractual relationship with a third party. For example, a purchase order may be issued to a vendor.

There are two types of signing limits: spending limits and approval limits. A spending limit is the maximum amount that a worker is authorized to spend on business-related purchases. An approval limit is the maximum amount that a worker is authorized to approve for a specific business document. Signing limits can vary, depending on the transaction type. Therefore, purchase requisitions, expense reports, purchase orders, and invoices can have different signing limits.

In this blog, we will see the approval signing limit with purchase order example.

Scenario: Let’s say we have workflow approval requirement where if we have PO amount less than 10 K USD then it must go through approval based on managerial hierarchy where bases on approval limit assigned to different people in hierarchy. Here is the example which I have taken as hierarchy

E: Admin-Julia Reports To D: Alicia Reports To C: Brad (0-1K) Reports To B: Brooke (1k-5k) Reports To A: Charlie (5K-10K)

Step-1: Create Jobs for all the position in Human resource

Step-2: Create positions hierarchy and map all the respective jobs

Step-3: Define signing limit policy

Step-4: Create workflow and define condition for stop in workflow

Note: Signing limit is defined only when amount is less than 10 K

Scenario testing:

  1. When amount is greater than 1000 and less than 5000
  1. When amount is greater than 5000 and less than 10,000

That’s it for this blog, hope this will help you in understanding the signing limit concept. Now same can be applied to Purchase requisition, Invoice and Expense reports as well.

Thanks !!! Keep reading and sharing !!!

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