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Introduction to Dynamics 365 for Financials: Purchasing

Introduction to Dynamics 365 for Financials: Purchasing

As we continue our foray into the features, benefits, and functionality of Microsoft Dynamics 365 for Financials and Operations, one of the most important functions for businesses is the aspect of purchasing, something that every business needs, and something that can be made easier with Microsoft Dynamics 365.

This is a continuation of our introduction to Microsoft Dynamics 365 series. You can view part 1 and part 2 of our look at the core functionality for Dynamics 365 for Financials here, our look at Inventory Management within Dynamics 365 Finance and Operations, Sales Management, and a look at the Dynamics 365/LinkedIn Integration here.

Designed to simplify the everyday job of those in your purchasing department, we will Dynamics 365 does not only the basics but also offers some advanced functionality as well. You can learn about current and upcoming releases by looking at the roadmap, and see some of the features—not only in purchasing but in the platform as a whole by looking at the image below:

Dynamics 365 for Financials Features

Core Features of Dynamics 365 Purchasing Module

As organizations look to improve their relationships with vendors, ease the payment process, and improve client relationships by ensuring an accurate stock of items, Dynamics 365 purchasing helps them along, keeping costs in line and making sure the bills are paid.

Among the major features are Purchase Order Management, Vendor Management, and Vendor Item Catalog. Additionally, the platform integrates well with Sales and Inventory to ensure that no sales order or organizational need goes without proper inventory to satisfy it.

Purchase Order Management

Record costs and track accounts payable. Minimize inventory costs and provide better customer service through dynamically updated inventory levels.

  • Monitor and control your purchasing process with automated workflows
  • Implement approvals for internal controls, preventing unnecessary or fraudulent purchases
  • Easily modify a posted purchase invoice in your financial records and record the corrective credit memo for your audit trail

Vendor Management

Automate tasks for vendors to record your agreements concerning discounts, prices, and payment methods.

  • Control costs and expectations by communicating clearly with suppliers
  • Record and manage vendor credit terms and pricing
  • Easily access agreements concerning discounts, prices, and payment methods to improve profitability

Vendor Item Catalog

Precisely identify ordered items using vendor numbers linked to your company’s internal numbers. Quickly cross-reference information plus access and store universal product codes (UPCs).

  • Reduce data duplication by preserving the items list to only internal numbers
  • Link multiple vendor numbers to your own internal item catalog
  • Designate default vendors to specific items to auto-populate as suggested items

Additional Features

  • Purchase invoices are used to dynamically update inventory levels so that you can minimize your inventory costs and provide better customer service.
  • Easy Integration with Sales to improve the agility of drop shipping and other just-in-time orders
  • Convert PDF Invoices to electronic using Optical Character Recognition (OCR)
  • Set up approval workflows for things such as large purchases.
  • Build out vendor cards for future reference.

Learn more in the documentation section, as well as the product release notes in the Roadmap.

On the Horizon

The product roadmap looks at other features you can expect from Microsoft:

  • Alternative Order Addresses: Streamline your procurement processes by associate one or more ship-to addresses for orders and invoices with a vendor.
  • Alternative Vendors: Simplify the process for purchasing the same item from several vendors.
  • Purchase Return Order Management: The purchase return order allows you to manage compensation agreements with vendors. They make it easier to handle returned items, receive credits, pay restock fees, receive replacement items, or get a price reduction.


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