Purchase order And Its Status

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A purchase order is a working/source document that represents an agreement with a vendor to buy goods and/or services. The purchase order helps keep track of product receipts that are made toward the order and, at a later point in time, the accounting of vendor invoices that the vendor bills toward the order as well as payments.

At time of creation an automatic purchase order number will be assigned following an incremented number sequence. For purchase order creation, a vendor account is required to be specified. The vendor master data set on the vendor record defaults in on the purchase order. Additionally, an item record needs to be added to the purchase order lines for further processing.

Throughout the life of a purchase order, the purchase order goes through multiple status:

• Open Order – Draft: A purchase order in draft status is a working document that will go through internal approval prior to sending the conformation out to the vendor. A purchase order in draft status is only available when change management in the procurement and sourcing parameters and/or at the vendor record is enabled. When change management is disabled, the draft status is skipped.
• Open Order – In review: A purchase order in review status is a working document that will go through internal approval prior to sending the conformation out to the vendor. A purchase order in review status is only available when change management in the procurement and sourcing parameters and/or at the vendor record is enabled. When change management is disabled, the in review status is skipped.
• Open Order – Approved: A purchase order in approved status is a working document that went prior through an internal approval workflow and is officially approved when change management is enabled or simply a purchase order that is newly created when change management is disabled. An approved purchase order is a working document that is not officially confirmed with the vendor yet and is not sent out to the vendor yet.
• Open Order – Confirmed: When the purchase order is ready to be sent out to the vendor, the purchase order will go through a confirmation process. The result of running the confirmation job is a purchase order confirmation print out that can be sent to the vendor and acts as official agreement of the order.
• Received – Confirmed: When the purchase order delivery arrives at the baydoor and is ready to be officially received into inventory, the generate product receipt job will be processed. The product receipt increments the inventory quantity in Dynamics 365 for Finance and Operations. Note that a purchase order first switched status to Received – Confirmed when fully received. That means, when a purchase order is only partially received and there is an outstanding quantity, the purchase order stays in the Open Order – Confirmed status.
• Invoiced – Confirmed: When a purchase order is fully received and ready to be financially processed, the generate invoice job is processed. The generate invoice job posts financial invoice transactions in Dynamics 365 for Finance and Operations that will be later paid/offset when executing the vendor payment. Note that a purchase order first switched status to Invoiced – Confirmed when fully invoiced. That means, when a purchase order is only partially invoiced, the purchase order stays in the Received– Confirmed status.