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Purchase Orders with Value only

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Posted on by SC-19021502-0

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Has anyone else found a way to manage purchase orders where a total value is raised and values are drawn down against it as the values are involved? In other words using values not quantities for receipts & invoice matching.

Example. Agree a contract for £100,000 which will be billed as services are delivered. When invoiced for the relevant services, e.g. £9,887 in the first month, the value of £9,887 would be receipted and the invoice matched against that. The amount will vary depending on the services delivered and therefore it wouldn't be possible to split in into separate lines.

We've looked at bulk purchase orders but they don't really deliver the solution we are looking for.

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Dynamics 365 Business Central

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YUN ZHU 92,292 Super User 2025 Season 2 on at

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Purchase Orders with Value only

Hi, First of all, if there is no quantity in the PO, it cannot be posted. Even if it is a GL Account, you need to enter 1.
In addition, it seems that you are not using the service module. If it is just a PO, you can try the Discount function, including Invoice Discount and Line Discount.

More details: https://learn.microsoft.com/en-us/training/modules/set-up-prices-discounts-dynamics-365-business-central/?wt.mc_id=DX-MVP-5004336

Hope this helps.

Thanks.

ZHU

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Sohail Ahmed 11,086 Super User 2025 Season 2 on at

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Purchase Orders with Value only

Solution 1: Service Items with Value-Based Tracking (Recommended)

This is the most elegant solution for your scenario:

Create a Service Item for your £100,000 contract

Set up a Purchase Order with:

Item Type: Service

Quantity: 1

Unit Cost: £100,000

Use Item Tracking if needed for contract reference

For each monthly invoice (e.g., £9,887):

Create a Partial Receipt for the proportional value

Post Receipt for Quantity: 0.09887 (£9,887/£100,000)

Match the vendor invoice against this receipt

This approach gives you perfect value tracking and maintains the 3-way match principle.

Solution 2: Jobs Module with Purchase Orders

Business Central's Jobs area offers various options for progressive billing, which can be adapted for your purchase scenario:

Create a Job for the £100,000 contract

Set up Job Planning Lines for the total value

Create Purchase Orders linked to the Job

Use Job Journals to track actual costs against planned values

Post receipts based on actual service delivery values

Solution 3: Modified Blanket Purchase Order Approach

While you mentioned standard blanket orders don't work, here's an enhanced approach:

Create a Blanket Purchase Order for £100,000

Use a single line with:

Item: Service type item

Quantity: 100,000 (representing pence/cents)

Unit Cost: £0.001

Create release orders for actual amounts (e.g., 9,887 quantity for £9,887)

Track remaining value through the blanket order

Solution 4: Purchase Prepayments

This method works well for contracts with known total values:

Create a Purchase Order for the full £100,000

Set up Prepayment % to 100%

Post the prepayment

Create partial receipts and invoices as services are delivered

Apply against the prepayment balance

Solution 5: Custom Extension (If Standard Solutions Don't Fit)

If you need more sophisticated tracking:

Extend Purchase Line table to add custom value tracking fields

Create custom pages for value-based receipt processing

Implement custom posting routines that handle value-based matching

Add reporting for contract value consumption

Key Considerations:

3-Way Matching: Ensure your solution maintains proper Purchase Order → Receipt → Invoice matching

Commitment Tracking: Monitor remaining contract value

Reporting: Set up reports to track contract consumption

Approval Workflows: Consider approval processes for value-based receipts

Recommended Implementation:

Start with Solution 1 (Service Items) as it requires no customization and provides exactly what you need. If you need more sophisticated project tracking, combine it with Solution 2 (Jobs Module).

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Montassar Krichi 231 on at

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Purchase Orders with Value only

this is a very common requirement in service or contract-based procurement workflows — where value-based drawdowns against a contract ceiling
Workable Options (with Pros & Cons)
🔹 Option 1: Use a "Service" PO Line with Qty = 1 and adjust the unit price over time

Create a line:

Type = Service

Quantity = 1

Unit Price = £100,000

Each month:

You partially invoice against that single line (e.g. invoice for £9,887)

BC will track the remaining amount via line amount invoiced

Pros:

Cleanest solution with minimal setup

Leverages standard BC posting and matching logic

Cons:

PO will remain open until fully invoiced

No granular receipt tracking

Potential audit challenges (single line modified over time)

🔹 Option 2: Use Blanket Purchase Orders

Create a Blanket PO for £100,000

Each invoice is matched against a release order (regular PO)

You release only the value needed each time

Pros:

Native support for progressive invoicing

Audit-friendly

Cons:

Still quantity-based unless you define unit price = £1 and use "Qty = invoice value"

More manual effort (creating release orders)

Option 3: Custom "Drawdown PO" Extension
Develop or install an extension that:

Allows value-based drawdowns

Shows the original contract ceiling, used amount, and balance

Enables posting directly against value

Prevents exceeding the contract value

Pros:

Exactly what you're asking for

Clean user interface

Ideal for recurring service contracts

Cons:

Requires development or ISV app

Not standard out-of-the-box

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Purchase Orders with Value only

Solution 2: Jobs Module with Purchase Orders

Solution 3: Modified Blanket Purchase Order Approach

Solution 4: Purchase Prepayments

Solution 5: Custom Extension (If Standard Solutions Don't Fit)

Key Considerations:

Recommended Implementation:

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Community site session details

Purchase Orders with Value only

Solution 2: Jobs Module with Purchase Orders

Solution 3: Modified Blanket Purchase Order Approach

Solution 4: Purchase Prepayments

Solution 5: Custom Extension (If Standard Solutions Don't Fit)

Key Considerations:

Recommended Implementation:

Helpful resources

News and Announcements

Quick Links

Responsible AI policies

Abhilash Warrier – Community Spotlight

Congratulations to the September Top 10 Community Leaders!

Subscribe to this forum!

Select categories

Leaderboard > Small and medium business | Business Central, NAV, RMS

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