Simple Purchase Process

In this post, I will try to help to let you see the Purchase Process in Business Central from “Helicopter” overview.

Few notes (related to Business Central):

• There is a “Purchase Quote”, this is were the purchase process can start and then the “Purchase Quote” can be transferred to “Purchase Order” (This feature is similar to MS Dynamics GP “Purchase Requisition”)
• The “Purchase Quotes”, “Purchase Orders” and “Purchase Return Orders” are deleted once they are posted, There are three (3) options in “Purchase & Payables Setup” page, under “Archiving” fasttab:
  • Archive Quotes.
  • Archive Orders.
  • Archive Return Orders.
    If the above options are set to “True”, Business Central will archive these transactions when posting.
• If you post with “Receive” or “Receive/Invoice” a “Purchase Order ” or post a “Purchase Invoice”, Business Central will create “Posted Purchase Receipt” & a of course a “Posted Purchase Invoice”. Creating a “Posted Purchase Receipt” is an option which can be turned off. but for this post, I will set it to “True” and see how it works.

In MS Dynamics GP the process starts when a new “Purchase Requisition” is created, the workflow started and then transferred to “Purchase Order” (or directly from the “Purchase Order”), after that the “Purchase Order” usually is printed (the “PO Status” is changed to “Released””). Once the purchase order is “Released”, it is time to the “Receiving Transaction Entry”, here 2 options are available (excluding In-Transit Entry), “Shipment/Invoice” or “Shipment”, receiving the purchase order with “Shipment/Invoice” selected, MS Dynamics GP will created a “Posted Purchase Invoice”, if “Shipment” is selected, then, an invoice should be created in the “Enter Match Invoice”.

I would say, it is a bit similar in Business Central with a few differences and here are details:

• Creating a “Purchase Quote” in Business Central is similar to MS Dynamics “Purchase Requisition”, both will be transfer to “Purchase Order”.
• Again in MS Dynamics GP, the purchase order is printed, In Business Central the purchase order is “Posted”.
  • If the purchase order is posted with “Receive” option is selected, then it is similar to create a “Receiving Transaction Entry” in MS Dynamics GP with “Type = Shipment”.
  • If the purchase order is posted with “Receive and Invoice” option is selected, then it similar to create a “Receiving Transaction Entry” in MS Dynamics GP with “Type = Shipment/Invoice”.
• Now, let’s suppose that the purchase order was posted with “Receive” option is selected (In MS Dynamics GP “Receiving Transaction Entry” is posted “Type = Shipment”), In Business Central to create the “Posted Purchase Invoice”, the “Purchase Order” should be opened from the “Purchase Order List” page and posted again, this time with “Invoice” or “Receive and Invoice” options, in MS Dynamics GP, this is done through “Enter/Match Invoices”.

Remember, Business Central will create a “Posted Purchase Receipt” And since the “Archive Quote” option is “Always” in the “Purchases & Payables Setup” page in Business Central, the “Purchase Quote” and “Purchase Order” will be copied to “Purchase Quote Archives” and “Purchase Order Archives”

Until the next post