Set up purchasing parameters
This module will review the process to create and manage purchase orders in Dynamics 365 Supply Chain Management. Organizations can use purchase orders to record information about the goods and services that they are purchasing from various vendors.
You can use the Procurement and sourcing parameters page to set up purchasing parameters and to perform the following tasks:
Define settings that apply to all purchasing transactions.
Enter default information that will be used if the information is not specified at a lower level.
Select number sequences for purchasing.
You can use the General tab on the Procurement and sourcing parameters page to define the general purchase order settings. Some of the options are described in the following table.
| Parameter | Description |
|---|---|
| Purchase type | Select the purchase order type that is created by default when you create an order on the Purchase order page. A purchase order can have one of the following types: Journal, Purchase order, or Returned order. |
| Return action default | Select the return action that is defaulted to return purchase order lines. |
| Purchase pool | Select the purchase pool that you want to appear by default on a purchase order when it is created on the Purchase order page. Purchase pools are used to group purchase orders. |
| Prompt when specifying vendor and invoice account | Select this check box to display a message when you select or change the vendor account for a purchase order. The message indicates that vendor's information, such as terms of payment, from the Vendors page will be copied to the purchase order. If you do not select this check box, the information will be copied and no message will be displayed. Basic information that is specified for the vendor's account number, such as name and address, are copied to a purchase order whether this check box is selected or not. |
| Prompt quantity field value when posting documents | Select this check box to automatically recommend a value for the Quantity field when you generate a document. The recommended values for purchase orders are as follows: Purchase order - All, Receipts list - All, Product receipt - All, Invoice - Product receipt. Earlier, if you generated the purchase order documents by using values other than the recommended values, and you have selected this check box, you will receive a message that recommends changing the current value to the recommended value the next time you generate a document. |
| Purchase order prices/amounts | Indicate whether purchase order prices and amounts should print on the purchase order document. |
| Activate change management | Indicate whether the current company is using change management for purchase orders. |
| Allow override of settings per vendor | Indicate whether it should be possible to override the change management parameters for each vendor and purchase order. When this check box is selected, you can also override the setting that defaulted from the vendor when the purchase order is created. |
You can use the Delivery FastTab on the Procurement and sourcing parameters page to enter or view parameters in the General and Product receipt sections.
You can also review rules for delivery acceptances and product receipts. Some of the delivery parameters are described in the following table.
| Parameter | Description |
|---|---|
| Accept over delivery | Select this check box to be able to receive more items through product receipt update than the quantity that you ordered on the purchase line. |
| Accept under delivery | Select this check box to allow under-deliveries to be accepted as a final delivery. |
| Safety level of invoiced orders | Specify whether changes can be made to a fully invoiced purchase order. |
| Check for product receipt number used | Select how duplicate product receipt numbers that are used for each vendor should be handled. |
You can use the Prices tab to specify how the discounts are calculated if various discounts apply and whether charges are added automatically to purchase orders or lines.
Some of the Prices parameters are described in the following table.
| Parameter | Description |
|---|---|
| Discount | Determines how a discount is calculated if both line discount and multiline discount are present on the same purchase order line. |
| Find auto charges for header | Select this check box to automatically find auto charges for header and lines when you create a purchase order. If you have not defined automatic charges, clear this check box to increase performance. |
| Find auto charges for line | Select this check box to automatically find auto charges for the line charges that are set up for the ordered item when you create a purchase order line. If you have not defined automatic charges, clear this check box to increase performance. |
| Date type | Specify the date to be used when you are searching for trade agreements. |
| Calculate total discount on posting | Select this option to automatically calculate the total discount when purchase orders are posted. Any total discount information that has been manually entered will be overwritten. |
| Trade agreement evaluation | If you change price and discount conditions, prices and discounts could be recalculated and overwritten. You could also trigger a dialog. The dialog helps you decide whether to keep the current price or discount if the price or discount is inherited from an external source. Add the types of external sources that should trigger this dialog. |
| Enable price details | To enable the price details page, go to Procurement and sourcing > Setup > Procurement and sourcing parameters. Inside of the procurement and sourcing parameters page, select Prices on the left pane. Enable price details by moving the toggle to Yes under Price details. After the Price details have been enabled, go to Procurement and sourcing > Purchase orders > All purchase orders. Select your purchase order. When you have selected the purchase order, select Purchase order line located under the Purchase order lines FastTab. Select Price details under View. The Price details page displays detailed information about the prices, agreements, and trade agreements that are associated with the selected product, and also calculates discounts, rebates, and more for the order line. |