Exploring ERP: Purchase and Payables in Microsoft Business Central

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When choosing your next ERP Business Management system, there are normally key “must have” requirements.  When we discuss ERP Evaluations, one of the more popular systems is Microsoft Dynamics 365 Business Central, formerly Microsoft Dynamics NAV “Navision”.  Microsoft Business Central is a true Enterprise Resource Planning System with vast business functionality around advanced financial, inventory/supply chain management, sales/CRM, project management, service management, warehousing, manufacturing, and more! Furthermore, this modern ERP system has the ability to expand functionalities through a vast network of Business Applications (Apps) available on Microsoft AppSource.  Furthermore, Microsoft Business Central is tightly integrated with other popular business solutions such as Outlook, CRM, Power BI, and others. This post will highlight Purchases and Payables in Microsoft Business Central.

In Microsoft Dynamics 365 Business Central you can effectively manage and process your purchases and payables in an efficient manner; providing your team with streamlined supply chain procedures.

Capabilities of Purchase and Payables in Microsoft Business Central Include:

Purchase Invoicing:  Set up, post, and print purchase invoices and purchase credit memos

Purchase Order Management: Manage purchase quotes, blanket orders, and purchase order processes. Creating a purchase order differs from creating a purchase invoice directly. The quantity available is adjusted as soon as an amount is entered on a purchase order line, but it is not affected by a purchase invoice until the invoice is posted. Use this functionality to manage partial receipts, receive and invoice separately and create prepayment invoices for the purchase order, use quotes and blanket orders in the purchase phase. Quotes and blanket orders do not affect inventory figures.

Purchase Return Order Management: Create a purchase return order in order to compensate your own company for wrong or damaged items. Items can then be picked from the purchase return order. You can set up partial return shipments or combine return shipments in one credit memo and link purchase return orders with replacement purchase orders.

Alternative Order Addresses: Set up multiple addresses to manage orders from vendors that in addition to a main business address have more than one site from which they ship orders. These additional locations can then be selected by the purchasing agent when creating a purchase order or invoice.

Purchase Invoice Discounts: Calculate invoice discounts automatically. The discount can differ from vendor to vendor with different minimum amounts (also in different currencies) and different rates, depending on the size of the invoice. The discount is calculated on the individual item lines and becomes part of the net sum of the invoice.

Purchase Line Discounting: Manage multiple item purchase price discounts that you have negotiated with individual vendors based on such parameters as minimum quantity, unit of measure, currency, item variant, and time period. The best, as based on the highest discount, the unit cost is calculated for the purchase line when the order details meet the conditions specified in the purchase line discounts table.

Alternative Vendors: Manage the purchase of the same item from different vendors. Set up alternative vendors for items, specify typical lead times, and record price and discount agreements with each vendor.

Vendor Catalog: Items Offer items to customers that are not part of the regular inventory, but you can order from vendors or manufacturers on a one-off basis. Register these items as non-stock items but treat them like regular items.

Next Steps:

Learn more about Microsoft Dynamics 365 Business Central

Download the Microsoft Dynamics 365 Business Central Capabilities Guide

Posted by iCepts Technology Group, Inc. a Microsoft Business Central ERP Partner in Pennsylvania

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