Procurement in connection with a Sales Order
In Business Central, there are several ways to create purchase orders for trade items. The most common are the Requisition Worksheets (from the manufactoring module) and the functionality to create a Purchase Order from a Sales Order. However, if merchandise is needed explicitly for a specific Sales Order, these two options fall short.
In both cases, the goods are not ordered on an order-by-order basis. Thus, the reservation of the required quantity in the Sales Order line must be done manually. Especially in the second case, both the order (here: Sales Order line) lacks the link to the Purchase Order (here: Purchase Order line) expected by the user and vice versa.
Create Purchase Order
The functionality to create a Purchase Order (Create Connected Purchase Order) from a Sales Order has been enhanced with DYCE Job Billing. The action has been highlighted and can now be found directly in the Process menu. Calling it opens the Create and connect Purchase Orders page. The page shows the document lines (items) that can be ordered for the current job. It contains the standard fields such as the No. of the item, the Description and the Vendor from which the item should be ordered (for more details regarding the suggested vendor see below in the section Favorized Vendor). In addition, the following fields are included:
- The Purchasing Code indicates whether a special procurement method (e.g., Drop Shipment) is intended for the order line.
- The Demand Quantity contains the customer demand quantity from the order line.
- The Direct Unit Cost field contains the purchase price from the order line. This can be changed unless it is part of a special agreement (Special Bid, see below).
- In the Quatity to Purchase field, the actual quantity to be ordered is proposed. The system considers both the Demand Quantity and the current available stock (depending on the location from the Sales Order line) in the proposal. The available stock (depending on the location from the Sales Order line) is displayed in the Demand Qty. Available field.
- A special agreement (e.g. for project-specific purchase prices) is displayed in the Special Bid field (see Direct Unit Cost).
- The lines to be processed (for which a Purchase Order is to be created) are specified via the Process field.
With OK the processing is triggered, the order is created and opened. At the same time, the expected goods are automatically reserved for the particular Sales Order line. This is visible in both the Purchase Order line and the Sales Order line in the Reserved Quantity field. Clicking on the field opens the reservations.
Prerequisites for purchasing items
In order for an item to be purchased, the following requirements must be met in the Item Card:
- Type = Inventory (fast tab Item).
- Replenishment System = Purchase (fast tab Replenishment)
- Vendor No. must be filled (fast tab Replenishment)
- Reordering Policy = Order (fast tab Planning)
In the Purchase Order and in the Sales Order the other document can be opened in each case. In the Purchase Order, the call Reserved Sales Orders (in the line menu under Purchase Order) is available for this. In the Sales Order, the function is called Reserved Purchase Orders and is also located in the line menu (under Order).
Project prices for purchasing with special bid
Suppliers sometimes grant discounts on individual orders, projects or customers-related purchase orders. For this, the quantity and price (and discount, if applicable) are specially negotiated. Orders for which such a project price has been negotiated must be processed separately. It is in the nature of things that there is always a Sales Order for this type of Purchase Order. A reference number (Special Bid) is assigned by the supplier for the project price. As a rule, this kind of special order is only processed by the supplier if the reference number is given in the order. If the reference is not included, the discount will not be granted or the order will not be processed.
To create and process such orders, a reference number can be entered in the Sales Order line (in the Special Bid field). The reference will be added to the Purchase Order via the Create Connected Purchase Orders functionality (see above in the Create Purchase Order section) and can thus be printed. This also applies to Purchase Orders created via the Requisition Worksheet.
When creating Purchase Orders, they are always unique with regards to Special Bid. Different order lines with the same reference number can be combined into one Purchase Order.
If an Sales Order line contains a reference number, the reservation is never made against any available stock.
Items can be purchased from different vendors. The respective purchase prices are stored in the (Purchase Prices). With DYCE Job Billing there is the possibility to mark one of the vendors as the Favorite. This is done by calling the Set Vendor as Favorite action in the Purchase Prices page. This is useful for the vendor that is normally used to purchase this item from. Only one vendor can be set as the favorite. Performing the action will change the Vendor No. field in the Item Card if the favorite is different from the vendor selected in the Vendor No. field. This favorized vendor will be copied to the Sales document line when it is used in a Sales Line, but it can also be changed there.
- Define favorized vendor
In the masterdata of the item, a preferred vendor or supplier is stored in the purchase prices. Vendor agreements can, however, be made with all vendors in principle.
- Creation of the order
The preferred supplier for the item is automatically entered in the Sales Order line and the related Unit Cost is used. The Unit Costs are maintained in principle by the purchaser and are normally not changed in the Sales Order line.
- Negotiation of a special purchase price with a supplier
The negotiated purchase terms apply exclusively to this one Sales Order. The reference number (Special Bid) will be placed on the Sales Order line. The Unit Cost will be adjusted depending on the agreement.
- Creation of the Purchase Order
The Purchase Order is created directly from the Sales Order. A separate Purchase Order is created for each Special Bid. The reference number will be included in the Purchase Order. When printing or sending (by mail), the reference number is printed on the Purchase Order. Different Sales Order lines with the same supplier and the same reference number can be combined into one Purchase Order.