Procurement Categories – Where is the Item Model Group?

by | Updated June 15, 2016 | Dynamics AX, Procurement and Sourcing, Set Up

Back in my AX support days at Microsoft, which seems like a decade ago (1.5 months ago) I was repeatedly asked the question:  Can you post the packing slip in ledger, for procurement categories on purchase orders?

The answer to this question is “Yes, you can!” But, it’s not in the same location as die-hard AX users are used to from previous versions.

Procurement Categories are new to AX 2012 and have a little different setup as they don’t use item model groups.  There is actually a purchasing policy that you can setup which partially replaces the functionality of the item model group.

The purchasing policy is found at:  Procurement and Sourcing > Setup > Policies > Purchasing Policy.

This policy contains rules that can be setup at the Legal Entity level or at an Organization level (See About Organizations and Organizational Hierarchies in the AX Help for more info on Org Hierarchies).  In my case, I have a policy setup for the LE that I’m using (CEU). One of the rules in this policy is labled Category Policy Rules. If I create a new policy rule for this section, I can see that I can add lines for all my different procurement categories as seen in figure 1.


Category Policy Rule

Figure1: Category Policy Rule

The field we’re focused on is the Accrue purchase expense on receipt. Marking this field enables you to post to the ledger on purchase order receipt for the specific procurement category.

There are three other fields that pertain to purchase orders on this rule:

Category Matching Policy:  You can setup the default matching policy for the procurement category.

Receiving Requirements:  Force a physical update before you can financially update a receipt.

Deduction Requirements:  Force a physical update before you can financially update an issue.

When I post the packing slip for a procurement category it hits the Purchase expenditure, un-invoiced and the Purchase, accrual posting types as seen in figure2.


Packing slip voucher

Figure2: Packing Slip Voucher


Another commonly asked question is:  Procurement categories don’t have an item group setup against them, so how do you specify the ledger posting?

If you navigate to Inventory and Warehouse Management > Setup > Posting > Posting we can find both of the posting types for my packing slip voucher.  You can add an item code of type:  Category and then the Category Relation field will become active. Once the category relation field is active, you can specify a specific category the ledger account will be enforced against.  In figure3, you can see that I’ve add a new ledger account for my phone procurement category under the Purchase expenditure, un-invoiced posting type.


I hope this helps!

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  1. Loz Saunders

    Hi Tom,

    Thanks for an interesting article. When an item has both an Item Model Group and also belongs to a Category in the procurement hierarchy, which posting takes precedence? In other words is the transaction posted based on its Category or its Group?

  2. Brandon Carmichael

    Hi Loz:

    Thank you for visiting our blog; but more importantly, thank you for taking the time to comment.

    Regarding your question, the priority is:
    1. Item specific – Top Priority
    2. Item Group – 2nd priority
    3. Category – 3rd priority
    4. All – Last

    I hope this helps, please let me know if it doesn’t.


  3. Dhonni

    Hi Tom,

    Thanks for an interesting information about ax 2012, i’ve try the step that you guide in making journal for product receipt procurement categories. After i post the receiving, i can find product receipt list but i can’t find a either voucher or journal transaction of my receiving.

    can you tell me, maybe there’s some step that i’ve forget it. Thanks a lot

  4. Brandon Carmichael

    Hello Dhonni:

    Unfortunately, there is nothing obviously as to why you aren’t able to replicate this. We would be happy to assist you further if you would like to open a support ticket.


  5. Dhonni

    Hello Brandon,

    Thanks for your response
    The issue has been resolved, i forget to check “post product receipt on ledger”, i found this configure on account payable parameters > updates.

  6. Brandon Carmichael

    Hi Dhonni:

    That is great to hear. Thank you for the update and your solution.


  7. David

    Is there any way that the financial dimensions from an item – linked to a procurement category – can be used to populate them on a purchase order if the procurement category is used for the purchase order?

    Also is there any way of using procurement categories and be able to update stock?



  8. Brandon Carmichael

    Hello David,
    In regards to your first question, is there any way that the financial dimensions from an item – linked to a procurement category – can be used to populate them on a purchase order if the procurement category is used for the purchase order; not that I know of, I would assume we would have to modify the system to see this behavior.

    Regarding your second question, procurement categories are treated like non-stock items, so to answer your question – not with out a developer modifying the code/logic.

    I hope this helps – thanks,

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