Microsoft Dynamics 365 Guides Salman Ahmad

Do you know about Replenishment Requisition in D365?

Replenishment and consumption are two concepts often used in the context of inventory management or supply
chain management.

✓ Replenishment:
➢ Replenishment refers to the process of restocking or restoring inventory levels
to meet demand or maintain a certain stock level.
➢ Replenishment is typically proactive and planned. It involves forecasting
demand, setting reorder points, and ordering new stock before it is completely
depleted.
✓ Consumption:
➢ Consumption, on the other hand, refers to the actual usage or depletion of
inventory or resources in internal processes.
➢ A Consumption purpose is used to indicate a request for something to be
consumed internally.

Overview In D365 F&O:

✓ Purchase requisitions can be generated with either a Consumption or Replenishment purpose, contingent
on the configuration of the Purchasing policy's Requisition Purpose Rule. This flexibility allows
requisitioners to choose the most suitable purpose, determining how the request will be fulfilled.

✓ When opting for a Consumption purpose, the requisition signifies an internal consumption need, and
fulfillment is typically managed through the issuance of a Purchase Order.

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✓ Conversely, a Replenishment purpose indicates a requirement for replenishing inventory. Replenishment

requisitions are exclusively permitted for released products. The fulfillment options for such requests
extend beyond Purchase Orders to include Transfer Orders, Production Orders, or Kanban systems.

✓ While the default setting often limits the purpose options, granting requisitioners the ability to choose
opens opportunities for more nuanced and strategic inventory management. This approach empowers
requisitioners to align their requests with specific consumption or replenishment needs, contributing to a
more dynamic and responsive procurement process.

Setup:
➢ Purchasing Policy
• Navigate to Procurement and sourcing > Setup > Policies > Purchasing Policies.
• Select the Requestion Purpose rule.
• You can select on default purpose either it can be consumption or replenishment.
• If you want the PR raiser to select the reason and want to give him a choice to create a pr for the
replenishment, then you can select the manual over-ride to yes.

• A second policy must be maintained within the Purchasing policies. Select the
Replenishment category access policy rule. Click on the effective date.
• This policy will be used to select the categories that can be used for replenishment
purposes.
Let’s suppose I have the following categories hierarchy:

Toner
Machines
computers
Stock items

Vehicles Tractors

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 Microsoft Dynamics 365 Guides Salman Ahmad

• I just want to add the categories that are relevant to the vehicles so, I need to define this
rule also.

➢ Product setup:
• Go to the Product information management > Products > Released products.
• To designate a product category for every released product eligible for inclusion in a
Replenishment requisition, access the Replenishment Category Access Policy Rule.
Navigate to the "Product" tab, then proceed to the "Set up" section, and click on the
"Product Categories" function. Within this function, assign the appropriate product
category from the Category Hierarchy chosen in the Replenishment Category Access
Policy Rule. This structured approach ensures that each released product has a
designated product category, facilitating organized and efficient handling during the
Replenishment requisition process. Remember to save any changes made to update the
configuration.

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 Microsoft Dynamics 365 Guides Salman Ahmad

• If you have the bulk items and need to assign the categories you can simply go to the
product categories and use the Excel add on or data entity to update the bulk data.
➢ Process:
• Navigate to Procurement and sourcing > Purchase requisitions > All purchase requisitions.
• Click new.
• Enter a name.
• Select the replenishment option.
• Click ok.

• Click ok and go to the lines and you will notice that only the items that are attached with the
replenishment categories will appear.

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 Microsoft Dynamics 365 Guides Salman Ahmad

So, in that way you can use the purchaser requisition for replenishment purposes.

Happy learning……

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