Purchase Order Holds in Dynamics 365 Finance and Operations

Until recently it was not possible to put a vendor on hold for purchase orders only. Instead, the vendor had to be put on hold for all transaction types, which meant that you were unable to process outstanding invoices and payments, which was not ideal in some cases.

Now, with this new feature, you can put vendors on hold for purchase orders and continue to process invoices and payments.

How Does It Work?

From the Vendor form select On hold from the ribbon. This drops down a sub menu where you select the vendor hold type first. In this case, we select “Purchase order” from the drop-down.

Next, we can enter a date for when the hold is automatically released and a hold reason code.

Lastly, if the vendor is used in multiple legal entities, we need to determine if the vendor is blocked across all legal entities.

Purchase Order Entry

When I try to use the vendor (1001 Acme Office Supplies) on a purchase, I get an error saying that the vendor is stopped for purchase orders.

Please note, although the vendor is on purchase order hold, a purchase order can still be confirmed and received.

Process Pending Invoice

As you can see from the above, when I generate a pending invoice from a purchase order that was created before the vendor was put on hold, the invoice is generated without error and the invoice can be posted.