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Business Central Procurement

Buying the right goods at both the right price and the right place is a crucial parameter for many companies in creating a competitive business. Dynamics 365 Business Central provides an overview of the company's purchasing routines and overview of daily purchases.

What is Purchase Management / Procurement?

In short, the concept of purchase management covers the handling of the company's procurement as well as aspects and workflow related to the procurement processes. The task of the company's purchasing department is to ensure that the goods, supplies, fixtures and services necessary for the operation of the company are ordered and always in stock. They also have responsibility for the costs associated with the purchase of goods.

The purpose of purchasing management is among other things to:

  • Influence product costs so that goods and services are purchased at the best possible price
  • Get the goods delivered at the right time
  • Ensure that the goods, supplies and fixtures needed to run the business are always in stock
  • Controlling the cost of goods ordered
  • Avoid too low a stock level (stock-out)
  • Build a good relationship with your company's suppliers

Purchase / Purchasing management / Procurement in Business Central

With Business Central you can create an overview of the company's purchases and make the daily buying routines clear and manageable. You also get instant access to an overview of your suppliers' purchase history, outstanding orders and trade statistics. The rich data provides insight into the company's suppliers and enables you to better manage and improve their relationship with them. Thus, with the efficient purchase administration in Business Central, you get detailed data on all the company's purchases and accounts payable and all relevant data relating to your suppliers, price lists and catalogs of goods are recorded.

Purchase invoice and purchase order
A purchase invoice or purchase order is created to record the cost of a purchase and to track debt to your suppliers.

Purchase Invoice
In Business Central, you can manage your inventory by using purchase invoices to dynamically keep inventory levels up, ensuring efficient and efficient inventory management so you can reduce your inventory costs and improve service levels. The company's acquisition costs, derived from accounting of purchase invoices which include stock values and service expenses, helps your profit margin and other financial ratios appear in your Business Central role center.

Please note that you should not post a purchase invoice until you have received the purchased goods and know the final costs associated with the purchase. If you do this anyway, you risk that your inventory value and your profit figures will not be correct.

Purchase order in Business Central
Purchase orders are used if the company's purchasing process presuppose that partial deliveries of an order quantity can be registered, for example in cases where your orders are divided because you have ordered more goods than your supplier has in stock. If your goods are being sold by being delivered directly from one of your suppliers to the customer, you must also use purchase orders. Otherwise, a purchase order works in the same way as purchase invoices in Business Central.

Using the OCR (Optical Character Recognition) service, which converts PDF invoices from your creditors into electronic documents and then into purchase invoices through a workflow, you can automatically create purchase invoices in Business Central. However, before you can use this feature, you must first register for the OCR service and then perform a number of installations.

Correct or cancel unpaid purchase invoices
In Business Central you have the opportunity to correct a purchase invoice, even if it is already posted. This feature is particularly useful if, for example, you accidentally made a typing error and wish to correct it or if you need to change a purchase early in the ordering process.

In cases where you have already paid for the products on the posted purchase invoice, it is not possible to correct or cancel it from the posted purchase invoice. In such a case, you must create a purchase credit note to reverse the purchase and optionally manage it through a purchase return order.

Overview of the company's debt

With Business Central, you get efficient functionality for managing all your costs and payments through notifications of overdue payments, electronic document approval, and instant monitoring of the company's cash flow. In short, Business Central provides a full overview of corporate debt.

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