Dynamics 365 Supply Chain Management: Approval Management App5 min read

Organizations often need robust controls and approvals to ensure compliance with purchasing policies. When the purchasing process isn’t streamlined, delays can occur, leading to inefficiencies and bottlenecks. Microsoft’s Dynamics 365 Supply Chain Management now includes an Approval Management App designed to address these issues by enhancing flexibility, efficiency, and resilience in the purchasing approval process.

The Approval Management App provides purchasing managers with real-time access to critical purchasing approvals on any device, enabling quick and informed decision-making. Leveraging Dynamics 365’s existing workflow capabilities, the app introduces a new layer of end-user approval functionality. This means purchase orders and requisitions can be managed and approved efficiently through a mobile application, significantly improving responsiveness and reducing processing times.

Key Features of the Approval Management App

The Approval Management App includes a range of features that enhance control over purchasing workflows, specifically targeting purchase orders and requisitions. These features include:

• Approval Actions: Managers can easily approve, reject, delegate, or request changes on purchase requisitions and orders.
• Bulk Operations: For efficiency, multiple approvals can be processed simultaneously.
• Visibility Tools: Users can view comments, attachments, and timeline details to inform decisions.
• Enhanced Filtering and Notifications: Sorting and filtering options streamline review, and notifications keep managers up-to-date.

This new mobile experience replaces Dynamics 365’s previous mobile workspace, which is now deprecated, offering a modernized, streamlined experience designed to optimize approval efficiency and user satisfaction.

Scope of Approvals within the App

The Approval Management App supports a comprehensive scope of purchasing approvals, including:

• Purchase requisition approvals (at both the requisition and line level)
• Purchase order approvals (at both the order and line level)

Supporting the Source-to-Pay Business Process

The Approval Management App is integrated with the broader “source-to-pay” business process within Dynamics 365. The source-to-pay cycle encompasses sourcing, procuring, and paying for goods and services and aims to improve efficiency, accuracy, and transparency throughout the procurement cycle.

1. Sourcing Strategy: Establish a procurement strategy, analyze spending data, identify cost-saving opportunities, and negotiate contracts to ensure compliance and cost efficiency.
2. Vendor Relationship Management: Strengthen vendor relationships by selecting qualified vendors, negotiating contracts, monitoring performance, and fostering positive interactions.
3. Procurement and Ordering: Automate and manage material and service procurement through requisitions, RFQs, and purchase orders. The app also facilitates communication with vendors through Dynamics 365 and vendor collaboration portals.
4. Receiving and Inventory Management: Track and record materials and services upon receipt, updating inventory levels to reflect the latest status.
5. Invoice and Payment Processing: Streamline vendor payment by processing invoices that match purchase orders and goods received, ensuring timely and accurate payment.
6. Vendor Rebates and Incentives: Track and manage inventory-based incentives and rebates to optimize purchasing costs.

Resulting in..

The Dynamics 365 Approval Management App is a transformative tool for purchasing managers, simplifying and optimizing approval workflows for purchase orders and requisitions. By integrating with the end-to-end source-to-pay process, it allows organizations to improve cash flow, strengthen vendor relationships, and maintain procurement accuracy and compliance. This mobile-first solution offers a modern and efficient way to manage approvals, ensuring organizations can navigate complex purchasing processes with confidence and ease.

Use Case 1: Streamlined Purchase Requisition Approval for Training Needs

Atlas Electronics, a company specializing in manufacturing, distributing, and installing home electronic equipment, operates across multiple distribution channels. Yulia, an employee at Atlas, wants to request a training session for Dynamics 365 to improve organizational efficiency.

Policy:
Atlas Electronics enforces a purchasing policy requiring manager approval for any purchases exceeding $1,000.

Workflow:

1. Yulia submits a purchase requisition for the training session via the system.
2. Her manager, accessing the requisition on the Approval Management App, reviews the submission.
3. Noticing insufficient details, the manager requests changes directly through the app and sends it back to Yulia.
4. Yulia updates the requisition with the required information.
5. The manager receives the revised requisition, reviews it again, and approves it—all through the mobile app.

This streamlined process ensures compliance with organizational policies while leveraging mobile accessibility to save time.

Use Case 2: Efficient Approval of Office Supplies and Cleaning Services

Atlas Electronics’ facility manager submits a purchase requisition for office supplies and cleaning services.

Policy:
As per company policy, all purchases above $1,000 must be approved by a manager, and subsequent steps may require additional levels of approval.

Workflow:

1. The facility manager submits the purchase requisition for approval.
2. The office manager reviews and approves the requisition using the mobile app.
3. Once approved, the system automatically generates a purchase order (PO).
4. The purchasing agent reviews the PO for accuracy and submits it for further approval.
5. The purchase manager, responsible for final review, uses the Approval Management App to conduct bulk approvals for multiple POs, efficiently handling several actions in one go.

This use case highlights the app’s ability to manage multi-step approval workflows seamlessly, improving productivity at all levels.

Installation process

To implement and use the Approval Management App, follow these steps:

1. Licensing Requirements:
   • You need an active Dynamics 365 activity license.
   • No additional licenses, such as Pro Apps or third-party tools, are required.
2. Prerequisites:
   • Ensure your Microsoft Dynamics 365 Finance and Supply Chain Management version is 10.0.41 or later.
   • Enable the 10.0.41 feature in your system.
3. Technical Setup:
   • The app uses virtual entity to connect with the Finance and Operations environment, ensuring smooth data integration.
   • Note: The app does not require Jira or any additional installations outside Dynamics 365.
4. Limitations:

The Approval Management App is not supported in the Microsoft Cloud for Sovereignty.