Create vendors
Watch this video to learn how to create vendor groups, terms of payments, payment schedules, payment days, and vendors.
A company purchases goods and services from vendors. Each accounts payable transaction must be associated with a vendor. Use the Vendors page to create, maintain, and inquire about vendors.
Always enter as much data as possible when you set up Finance because that data is used throughout the system for invoices, payments, and reports.
The base data automatically appears as the default for all transactions involving the vendor; but default information can always be changed if you need to override it.
We recommend setting up a default language for the legal entity, so it cascades throughout all modules. The reason is that the language code is required when you create external documents, such as purchase orders.
If alternative delivery addresses are in different states or countries/regions, ensure that you enter the appropriate tax group for each alternative address. You need to associate tax groups with a delivery address.
Enter the maximum outstanding amount allowed in the balance of the vendor's account in the Credit limit field. This amount is always stated in the accounting currency.
Vendor holds
To apply vendor holds, select the Vendor tab, then select the On hold button in the Maintain group of the Action Pane.
Accounts payable > Vendors > All vendors
The following types of holds are available:
- No - The vendor has no holds. All types of transactions are permitted.
- Invoice - No invoices can be created or posted for this vendor.
- All - All transactions for this vendor are on hold.
- Payment - No payments can be generated for this vendor. Payments that were generated before the hold was applied can still be posted.
- Requisition - No requisitions can be generated for this vendor.
- Never - Prevents vendors from being put on hold for inactivity.
After selecting a type of vendor hold, select the Vendor hold release date and Reason code for the vendor hold in the same drop-down menu.
Buyer group
Select a buyer group in the Buyer group list. Your selection creates links between vendors, employees, and items/planned orders when you create purchases and productions.
For example, use buyer groups to determine which employees are associated with the current buyer group and to change the buyer group if an employee changes an area of responsibility. For more information about intercompany relations, see Configure and use intercompany trade in Dynamics 365 Supply Chain Management.
Customer account
Select a Customer account number if a vendor is also a customer and used in Intercompany transactions.
One-time vendors
If you are using one-time vendor, you need to set up a number sequence for one-time vendors in the Accounts payable parameters page in the Number sequences section.
In the General section of the Accounts payable parameters page, select a vendor's account number that can serve as the default template for one-time vendors.
Information is copied automatically when you create a one-time vendor on the Vendors page. Finance creates a one-time vendor when a purchase order is created for a one-time vendor.
Except for the vendor number, the one-time vendor inherits all base information from the vendor number specified in this field. The one-time vendor number sequence must be specified on the Number sequences page. If you have no one-time vendors, leave the Default vendor number blank.
Enable and configure vendor change approvals
When the vendor workflow is used, changes that are made to specific fields are sent to the workflow for approval before they are added to the vendor.
To learn more about how to set up and use vendor workflows, see Vendor workflow