Describe sales processes in Dynamics 365 Supply Chain Management:

Lab 3: Create a purchase order

In this exercise you will learn how to create and confirm a new purchase order.

This exercise should take approximately 15 minutes to complete.

Before you start

Launch the provided environment as per instructions provided.

Lab steps

  1. On the Finance and Operations home page, in the upper right, verify you are working with the USMF company. If necessary, select the company, and from the drop-down list, select USMF.

  2. In the upper left, select the Expand the navigation pane hamburger menu.

  3. Select Modules > Procurement and sourcing > Purchase orders > All purchase orders.

  4. On the All purchase orders page, in the upper menu, select +New.

  5. In the Create purchase order pane, select the Vendor account drop-down list, and then select US-101.

    Note: When you select a vendor, details from the vendor record, such as address, invoice account, delivery terms, and delivery mode, will be copied as default values into the order header. You can change these values at any time.

  6. Expand the General section if necessary.

  7. Under STORAGE DIMENSIONS, select the Site drop-down list, and review the list of sites. Select site number 1 from the lookup. From the Warehouse lookup, select 13 in the Warehouse field.

    The Site field, together with the Warehouse field, specify where the procured goods or services must be delivered. The default delivery address is the site. You can populate both fields with values set up for the selected vendor, or you can specify them manually.

  8. Under DATES, in the Delivery date field, you can specify when procured goods and services need to be delivered.

    You can specify a single delivery date for the order or provide unique delivery dates for the individual order lines. If the specified delivery date cannot be met for specific products or services because they have longer lead times, then those lines will be updated automatically with a later delivery date based on defined purchase lead time.

  9. Expand the Administration section. You can use the Orderer box to specify who is placing the order.

    This may be convenient to share with the vendor in case they need to contact that person. The value may be assigned automatically if the current user account is associated with a name on the Users page.

  10. Select OK.

    The order header has now been created. When you work with purchase order lines, only a summary of the header information is displayed. If you need to view the rest of the information, select Header.

:::image type="content" source="./media/create-a-purchase-order/purchase-order-header-summary.png" alt-text="Purchase order page showing the order header summary area with Header available to view full header information.":::

  1. Under Purchase order lines, on the menu, select Purchase order line.

:::image type="content" source="./media/create-a-purchase-order/purchase-order-lines.png" alt-text="Purchase order lines section showing where to add and edit line item details.":::

  1. Under DISPLAY, select Dimensions.

    Products can be in variants that are differentiated by dimensions, such as color, size, or style. You can also set up products to use storage dimensions, such as site and warehouse or use optional tracking dimensions, such as batch and serial numbers. To improve order entry efficiency, you can add commonly used dimension fields directly to the order grid.

  2. In the Dimensions display panel, under PRODUCT DIMENSIONS, select the Color checkbox.

    Optional: If you select the Save setup switch, the dimensions you chose will also be displayed on the order line grid the next time you open the Purchase order page.

  3. Select OK.

  4. Select the Item number cell drop-down list, and then select T0004.

    A purchase order line will be created for item T0004.

  5. Select the Color drop-down list, review the available options, and then select Black.

  6. Site and Warehouse are typically populated with values from the order header, which are 1 and 13 respectively. You can override the fields if some lines need to be delivered to different locations.

  7. In the Quantity box, enter 10.

    The Quantity is automatically populated with the minimum order quantity for the product if this is set up, or with the value of 1.

  8. Additional fields include:

    • Unit: Indicates the unit of measure for the ordered quantity. Normally, the unit is automatically provided from the purchasing unit on the product master data.
    • Unit price: Contains a value from either a purchase agreement or a trade agreement. You can change the unit price on individual order lines; for example, if a unique price is negotiated with the vendor.
    • Discount: Represents a discount amount per unit. This discount reduces the unit price by the discount. The discount is commonly supplied automatically from purchase agreements or trade agreements, but you can override the discount on individual lines if unique discounts were negotiated with the vendor.
    • Discount percentage: When entered, this reduces the net amount for the line accordingly. The discount percentage is often supplied automatically from purchase agreements or trade agreements, but you can override this on individual lines if a unique discount percentage has been negotiated with the vendor.
    • Net amount: Calculated from other fields on the line, including quantity, unit price, discount, and discount percent. If you change the net amount, the Unit Price, Discount, and Discount percent fields will be blank. When you post the purchase line without unit price, the amount posted will be proportionately divided based on the quantity purchased while calculating the cost.

  9. Under the purchase order lines, at the bottom of the page, select Line details.

  10. Select the Delivery tab.

    You can assign a unique delivery date to each order line. The date is inherited from the field on the purchase order header, but you can change this.

  11. Select the Save button in the action pane to save the purchase order.

  12. To confirm the purchase order, select the Purchase menu in the action pane.

  13. Under Actions, select the Confirm button to confirm the purchase order.

  14. Close the Purchase order page.

  15. On the All purchase orders page, use the Filter feature and find your new purchase order.

  16. When complete, close the All purchase orders page and return to the home page.