Signing limits for Business Documents in AX 2012

• A spending limit is the maximum amount a worker
  is authorized to spend on business-related purchases.
• An approval limit is the maximum amount a worker
  is authorized to approve for a specific business document when the document is
  submitted to workflow.

The limits are associated with a
worker’s job or compensation level. Signing limits can also vary depending on
the transaction type — purchase requisitions, expense reports, purchase orders,
and invoices can have different signing limits.

• The worker is automatically assigned the default
  signing limit, based on the worker’s job or compensation level.
• The worker must submit a signing limit request
  in the Employee Services Portal in the Enterprise Portal for Microsoft Dynamics
  AX.

Use the Signing limit parameters form to
set up how signing limits apply to your organization’s employees.

1. Click Organization
   administration > Setup > Signing
   limits > Signing limit parameters.
2. In the Limit
   basis field, select Job if signing limits should be based on your
   employees’ job. Select Compensation level to base signing limits on your
   employees’ compensation level.
3. Select the Require explicit signing limit request check box to force
   employees to submit a signing limit request so they can be granted a spending
   or approval limit. If this box is cleared, employees are automatically granted
   the default spending or approval limit as defined for their job or compensation
   level.
   
        
   
   Require explicit signing limit request is UnMarked: The worker is automatically assigned the default signing limit, based on the worker’s job or compensation level

   Require explicit signing limit request is Marked: The worker must submit a signing limit request the Employee service portal in Enterprise Portal.

4. Select the Signing limits for employees only check box if users with an employee record should be allowed to request and be granted signing limits. If this check box is not selected, contract employees will also be permitted to submit and be granted signing limits.

Step 1

Step 2 to 5

You can define a default signing limit policy for
purchase requisitions, purchase orders, expense reports, and invoices. To
define a default signing limit policy for one of these transaction documents,
follow these steps.

1. Open Organization
   administration > Setup > Signing
   limits > Signing limit policies.
2. Select the signing limit policy for which to
   configure a default signing limit, then click Edit in the Maintain group
   of the Action Pane.
3. Click the Policy rules FastTab and select Default signing limit from the Policy rule type pane.
4. Click Create
   policy rule in the Policy
   rules pane.
5. Enter the Effective date and Expiration
   date for the policy rule, and then click New.

6. In the Document type field, select the transaction type the rule applies to.
   

7. Enter the default approval limit amount that is assigned to the specified
   compensation levels or jobs for the selected document type in the Approval
   amount field.
   
   In
   above screen shot; I put two rules associated with two Jobs; Accounts Assistant
   and IT System Support with amount 3,000 and 10,000 consecutively for Purchase
   Requisition.
8. Select the Currency the approval
   amount is calculated in.
9. Enter the default spending limit amount that is
   assigned to the specified compensation levels or jobs for the selected document
   type in the Spending amount field.

   In
   this example; I did not use spending limit as this example is only for approval
   limits.

10. Select the Currency the spending
    amount is calculated in.
11. Select the Jobs or Compensation
    levels that the rule applies to.
12. Click Close.

Important note:

System will not
restrict the submission of the corresponding document based on the signing
limit. In our example; system will not throw an error when “Faisal” tries to
submit a Purchase requisition for more than 10000 USD. Signing limits work just
like a property i.e., Faisal’s spending limit is now set to 10000USD.

You must incorporate
the Signing limits in the workflow to make it working and see the
impact of your setup.

Configuring the Workflow using the “Signing
limits”:

Scenario: “Test
systems” decided the spending limit for “IT System Support” as 10000USD for the
Purchase requisition and thus any Purchase requisition below USD 10K doesn’t
need any approval. But, a PR which crosses USD 10K must get the approval by “X”
user.

Note: I’m using
the user based approval in this workflow to make it easy to
understand. It can be done through “Managerial Hierarchy”. 

In the above
workflow, I’ve enabled the automatic actions by using preparer’s spending
limit. “Purchase requisition.approval amount” returns the total amount of
PRlines and if that is less than the “spending limit assigned” to the preparer,
it must be approved automatically.

Double click the
“Approve PR” element to assign the user to whom the system should route when if
the PR amount is more than the spending limit allowed to the employee.

1.      
In the “step1” element>
right click >Properties > Select Assignment

2.      
Select Assignment
type “user” and in the “user tab” specify the user.

3.      
Now everything is
set. 

Create a PR with the
amount below USD 10K and submit it, It will be approved automatically as the PR
amount is less than the “spending limit” allowed for the employee.

Create another PR
with the amount above USD 10K, you can notice that it will be routed to the
specific user.

Note: You cannot
edit the “Unit price” field in the PR, so edit the quantity to have the needed
“PR amount”, alternatively, you can change the purchase price for the product
in Released products.