Microsoft Dynamics 365 Business Central helps companies to manage their Purchase Cycle smoothly. Purchase module is fully integrated with Finance. Dynamics 365 Business Central provide us below functionality to manage Purchase Cycle.

  1. Purchase Quote
  2. Blanket Purchase Order
  3. Purchase Order
  4. Purchase Receipt
  5. Purchase Invoice
  6. Purchase Return Order
  7. Purchase Return Shipment
  8. Purchase Credit Memo

Create Purchase Quote

A purchase quote is a “draft order” in which the purchasing agent can register the vendor’s offer that specifies the price, terms of the sale, and the description of the items. If the quote matches the purchasing agent’s requirements, he or she can convert it into an order. Similarly, when stocked items need replenishment, inventory managers can send a request to the Purchasing Department. Then, a quote is created for internal purposes, and after the quote is approved it is converted to a purchase order

Search Purchase Quote in the Search bar

Click on new button and create Purchase Quote

Select Vendor name, Enter Document Date, Location Code on Purchase Quote Header

Go to the Line à Type = Select Item, No. = Select Item code, Enter Quantity, Direct Unit Cost, GST Group code, HSN Code

Click on Quote à Statistic

Check all amounts with GST.

Click on Print/Send à Print

If you want convert quote into Purchase Order

Click on Process à Make Order

Quote has been converted to Purchase Order

Create Blanket Purchase Order

A blanket Purchase order represents a Purchase agreement between the company and a Vendor. It typically involves one item with multiple shipments at predetermined quantities, price and delivery dates. We can create Blanket Order for bulk quantities,then we can convert it into Purchase Order.

Search Blanket Purchase Order in the Search bar. System will open the Blanket Purchase order list.

Click on new button and create new blanket purchase order.

Select Vendor in contact field, enter Document Date and Order Date on Header.

Go to the line and select Type = Item , No. = Select Item Code, Enter Quantity and rate in the Direct Unit cost field.

System will calculate Line amount and other taxes

Go to the ribbon tab, Click on Release and Release the Blanket Order

Click on Print/Send –> Print, take printout and send it to vendor.

Convert Blanket Order into Purchase Order, when you receive material from vendor, that time you can convert the Blanket Order into Purchase Order with receive qty.

Edit the Blanket Order –> Go to the Line –> Entere Quantity Receive.

Click on Ribbon –> Process –> Make Order

System will create the Purchase as shown in the below screen.

Create Purchase Order

The purchase order is a cornerstone of purchase management functionality in the program. In principal, a purchase order can register both a physical and financial transaction. You can create purchase orders manually or generate them from purchase quotes and blanket purchase orders.

Purchase orders are a basic element of the purchase management functionality in Microsoft Dynamics 365 Business Central. This functionality includes the following:

• Automatic copying of vendor information to the order header, and item information to order lines
• Automatic checking of best price and available discounts
• Performance of all the necessary calculations
• Participation in the program’s planning processes
• Making sure that the company’s financial records are updated correctly

Search Purchase Order on Search Bar

Click on New button to New Purchase Order

System will open the Purchase Order screen as shown below.

Enter below details on the Purchase Order Header

Select Vendor, Enter Document Date & Location Code

Enter below details on the Purchase Order Line

Select Type = Item, No.= Item No., Enter Qty. and Direct Unit cost

GST Group and HSN will auto update from item card or you can manually select it on Purchase Order line

Click on Order à Statistic and check all values

Once Order is ready then send it for Approval or you can directly click on release.

Click on Release button and Approve the Purchase Order

Click on Print/Send button à Print.. take printout

Or

You can send Purchase Order Directly through email by click on Send button

Purchase Order Report

Create Purchase Receipt / GRN

Edit Purchase Order

Go to Purchase line à Enter Qty. To Receive

Click on Post à Receive

Check  Purchase Order Line à Quantity Received field, system updated the Received qty. in this field.

Check Purchase Receipt / GRN

Click on Navigate à Receipts button

Open the document and check Posted Purchase Receipt

Create Purchase Invoice

Edit Purchase Order

Go to Purchase line à Enter Qty. in the Qty. to Invoice field.

Click on Statistic and check all amount with all taxes.

Enter Vendor Invoice No. on the Purchase Order Header

Click on Posting à Preview Posting Before posting check all accounting effects

If all entries are correct, then post Purchase Invoice.

Click on Posting à Post à Invoice

Invoice is posted, click on YES button to check Posted Purchase Invoice

Posted Purchase Invoice

Create Purchase Return Order

Search Purchase Return order in the Search Bar, click on new button to create New Purchase Return Order

System will open the Purchase Return Order Screen as shown below

Enter below details on the Purchase Return Order Header

Select Vendor, Enter Document Date & Location Code

Click on Process à Get Posted Documents Lines to Reverse

System will open the list of Posted Purchase Invoice, select Posted Purchase Invoice from the list

System will auto update the Purchase Return Order Lines.

Check all Qty. & Values and Send it for Approval or Just click on Release button and Release the Purchase Return Order.

Create Purchase Return Shipment

Edit Purchase Return Orderà Go to the Lines

Check Return Qty. to ship field, by it shows the Total Qty. of Posted Purchase Invoice, user can change this field if he wants to return partial quantity, otherwise leave it same as updated. Select Reason Code if required, it is optional field.

Before posting the document, if document contains GST, then user need to map Reference Invoice No.

Click on Process à Update Reference Invoice No.

Select Reference Invoice and click on Verify button

Close this page and post the Purchase return shipment.

Click on Posting à Post à Ship à Ok

System will post the Purchase Return Shipment.

Check the Return Qty. to Shipped field in the Purchase Return Order. System updated the shipment Qty. user also can check the Posted Return Shipment document from the Purchase Return Order Screen

Click on Navigate à Return Shipment

Open the Posted Return Shipment Document

Create Purchase Credit Memo

Edit Purchase Return Order

Go to the Lines à Check Qty. to Invoice field, system updated by default updated the total qty. user can change it if require

Enter Purchase Credit Memo No.

Click on Posting àCheck Preview Posting

Close this page, then click on Post button

Select Invoice option à Yes

System will post Purchase Credit Memo System will show message , “Do you want open the Posted Credit memo”            Click on YES