ERP-365 Finance and Operations module:

Question

In the ERP-365 Finance and Operations module: When receiving items from a purchase order, a journal entry may be needed. There may be discrepancies in the purchase order price, either a percentage or a cash value. The question is: what is the correct method and procedure to adjust the purchase order price to match the supplier's invoice?

Please list the steps, procedures, workflow, method, and window used for this.

Answer 1

please summarizing the following:

the ERP-365 Finance and Operations module:

When receiving items from a purchase order for journal entry, there are discrepancies between the purchase order price (increase or decrease, either by percentage or cash value). What is the correct method and procedure to adjust the purchase order price to match the supplier's invoice?

(Without modifying the purchase order price, and after receiving the items at the same purchase order price.)

Please specify the steps, procedures, workflow, method, and window to use for this.

Answer 2

(Without modifying the purchase order price, and after receiving the items at the same purchase order price.)

Answer 3

In Dynamics 365 Finance and Operations, purchase order prices must be aligned with the supplier’s invoice, especially when invoice matching and/or intercompany trade are used. The exact procedure depends on whether the order is intercompany and whether the intercompany sales order has already been invoiced.

Below are the supported methods and windows used, based on the provided context.

1. Configure invoice matching (non‑intercompany and intercompany)

Use this when invoice matching validation is required before posting vendor invoices.

Window:

• Accounts payable parameters

Steps:

1. Open Accounts payable parameters.
2. Ensure Enable invoice matching validation is selected.
3. Set Post invoice with discrepancies to Require approval.
4. Set Line matching policy to Three-way matching.

This ensures that when a vendor invoice is entered, the system checks the invoice price against the purchase order and product receipt.

2. Adjusting prices for intercompany purchase/sales orders before invoicing

Use this when there are price discrepancies between intercompany purchase orders and intercompany sales orders, and the intercompany sales order has not yet been invoiced.

Window:

• Check intercompany order price discrepancies
• Intercompany purchase order / Intercompany sales order
• Customers / Intercompany policies

Steps:

1. Go to Procurement and sourcing > Purchase orders > Intercompany > Check intercompany order price discrepancies.
2. Optionally set up a batch job, then select OK to run the check.
3. Review the informational message listing synchronization or price issues.
4. Select the relevant line to open the order in the current legal entity.
5. To allow price updates on intercompany orders:
   • Go to Accounts receivable > Customers > All customers.
   • On the Action Pane, select General tab, then Intercompany.
   • On the Intercompany page, under Purchase order policies and Sales order policies, enable Allow price edit and Allow discount edit.
6. Open the intercompany order where the correct price should be kept (for example, the supplier’s side or the sales side).
7. For each order line:
   • Change Unit price to another value and then change it back to the correct value.
   • Similarly toggle Discount and relevant Charges on purchases or Sales charges fields.

Changing these values back and forth triggers synchronization of prices, discounts, and charges from this intercompany order line to the referenced intercompany order line, aligning both sides before invoicing.

Note: This synchronization method is valid only if the intercompany sales order has not been invoice‑posted.

3. Adjusting prices when the intercompany sales order is already invoiced

If the intercompany sales order has already been invoiced and a customer invoice journal exists, the purchase order must be adjusted directly to match the posted customer invoice.

Window:

• Intercompany purchase order
• Customer invoice journal (intercompany customer invoice)

Steps:

1. Open the intercompany customer invoice journal and identify the final prices, discounts, and charges used on the intercompany sales side.
2. Open the corresponding intercompany purchase order.
3. For each line, set Unit price, Discount, and Charges on purchases equal to the values on the intercompany customer invoice journal.

If this is not done, the intercompany purchase order cannot be invoice‑posted because the order totals will not match.

4. Handling invoice matching and intercompany price discrepancies at posting time

When invoice matching and intercompany trade are both in use, the system enforces both sets of rules.

Scenario (from context):

• The intercompany customer invoice is posted with a net amount (for example, 100 items at 0.45 = 45.00).
• On the intercompany purchase order, the vendor invoice is entered with a changed net price (for example, 54.00), exceeding the price tolerance.

Window:

• Vendor invoice
• Invoice matching details

Steps:

1. Create the vendor invoice for the intercompany purchase order.
2. If the price exceeds the allowable tolerance, an icon indicates a price discrepancy.
3. Open Invoice matching details and, if allowed, select the option to approve posting with matching discrepancies.
4. Attempt to post the vendor invoice.
   • For non‑intercompany invoices, approval may allow posting despite discrepancies.
   • For intercompany vendor invoices, posting fails if the net amounts do not match the intercompany customer invoice.
5. To resolve:
   • Return to the Vendor invoice page.
   • Correct the net price (or unit price) so that the invoice total equals the intercompany sales invoice total (for example, change net price back from 54.00 to 45.00).
6. Post the vendor invoice again.

In intercompany trade, the net amounts of the intercompany vendor invoice and the intercompany customer invoice must be equal; this requirement overrides invoice matching approvals and price tolerance percentages.

5. Recording vendor invoice and matching against received quantity (non‑intercompany)

For standard (non‑intercompany) purchase orders, price adjustments are typically handled during invoice entry and matching against the product receipt.

Window:

• All purchase orders
• Product receipt
• Vendor invoice (Enter vendor invoice and perform invoice matching)

High‑level steps (from context):

1. Create and confirm the purchase order from All purchase orders.
2. Post the product receipt via Receive > Product receipt.
3. When the vendor invoice arrives, enter it and perform invoice matching against the received quantity.
4. If the invoice price differs from the PO price within tolerance and approval rules, adjust the line price on the invoice to match the supplier’s invoice and complete posting, subject to the configured invoice matching parameters.

In summary, to correctly adjust purchase order prices to match the supplier’s invoice:

• For non‑intercompany: adjust prices on the vendor invoice during invoice matching, within configured tolerances and approval rules.
• For intercompany before invoicing: use Check intercompany order price discrepancies and intercompany policies to synchronize prices between purchase and sales orders.
• For intercompany after the sales invoice is posted: manually align the intercompany purchase order line prices, discounts, and charges to the posted intercompany customer invoice journal so that totals match exactly.

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References:

• Invoice matching and intercompany purchase orders
• Check intercompany order price discrepancies
• Record vendor invoice and match against received quantity