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Is it possible for the Create Document button in Incoming Documents button to create Sales Order or Sales Invoice or does it only create purchase documents?
You can create below of these based on Document Type.
"Document Type"::"Purchase Invoice":
"Document Type"::"Purchase Credit Memo":
"Document Type"::"Sales Invoice":
"Document Type"::"Sales Credit Memo":
Why do you want to have Sales Order/Invoice?
Normally, "Incoming Documents" is meant to speedup the process of entering the data for those invoices that you receive from external parties, e.g. Vendors in most of the cases. It is assumed that Sales Orders/Invoices you would generate from your own system yourself - in which scenario you would need to create Sales Invoices in Incoming documents facility?
We want to create a Sales Order from a XML we want to import into NAV. Are you saying incoming documents cannot be used for this?
I would rather suggest to create sales order by publishing a web service from NAV or creating XML port to import XMLs (https://msdn.microsoft.com/en-us/library/dd338612.aspx).
We will use XML ports then.