Using the Decentralized Purchasing Feature

Institutions can use the Decentralized Purchasing feature by configuring and using the following features in the Procurement and sourcing module of Microsoft Dynamics 365 for Finance and Operations:

1. Create a Business Justification

2. Configure a Purchasing Policy

3. Create a Purchase Requisition

4. Create and Confirm Purchase Orders

5. Post Product Receipts

6. Generate Invoice

Create a Business Justification

Business justification (under Modules > Procurement and sourcing > Setup > Policies > Business justifications) indicates the reason or reasons for creating a purchase request.

Institutions need to create a Business justification record and set the Invoice available flag to identify if the items were already invoiced or not.

The Invoice available flag is later used in downstream workflows and processes to simplify purchase order creation, receiving, and invoicing.

Configure a Purchasing Policy

A purchasing policy consists of a set of policy rules that can be configured by institutions based on their business requirement.

To automate the process of purchase order creation from purchase requisitions and shorten the purchase cycle, institutions must configure the Purchase order creation and demand consolidation rule in the Purchasing policy.

For more information on configuring a Purchasing policy, see Microsoft Documentation.

Create a Purchase Requisition

A purchase requisition is an internal document that authorizes the Purchasing department to buy items or services.

Institutions need to create a purchase requisition record and select a reason in the Business Justification section. The Invoice available field in the Business Justification section is populated based on the value associated with the selected Business justification. Users can update the value of this flag.

The purchase requisition records are then submitted for review and processed using the Purchase requisition workflow, which updates the status of the Purchase requisition record to Approved from its initial status of Draft.

For more information on Purchase requisitions, see Microsoft Documentation.

Create and Confirm Purchase Orders

A purchase order (PO) is a document that represents an agreement with a vendor to buy items or services.

In Dynamics 365, Purchase orders can be automatically created from Approved purchase requisitions when a Purchasing policy is configured for creating Purchase order automatically.

The Purchase order inherits the value of the Invoice available field from the purchase requisition record and its status is set to Approved. The user can then update the status of the Purchase order to Confirmed by clicking Purchase > Actions > Confirm.

For more information on Purchase orders, see Microsoft Documentation.

Post Product Receipts

Product receipt is the process of recording that the products that were ordered have been received, so that the purchase order (PO) lines can then be processed for invoicing.

Institutions can post the product receipts using one of the following methods:

• Manually Generate Product Receipts

• Automatically Generate Product Receipts

Manually Generate Product Receipts

Perform the following steps to manually generate the product receipts:

1. Navigate to the All Purchase Orders page (under Procurement and sourcing > Purchase orders)

2. Select a Purchase order that match the following field values:

   • Approval status = Confirmed

   • Purchase order status = Open order

   • Invoice Available = Yes

3. Click Receive > Generate > Product receipt.

   The Posting product receipt page is displayed and the Product receipt field displays the same value as the purchase order number.

4. Click OK.

   The product receipt for the purchase order is generated and the Purchase order status is automatically updated as Received.

Automatically Generate Product Receipts

Perform the following steps to manually generate the product receipts for purchase orders:

1. Click Post product receipts (under Procurement and sourcing > Purchase orders)

2. In the Posting product receipt page, under Settings > click Select.

3. In the Purchase update page, click Add and configure the filter criterion by selecting the Invoice available field as Yes.

4. Click OK.

   The Posting product receipt page displays the purchase orders that match the filter criterion and the Product receipt field displays the same value as the purchase order number.

5. Click Batch and schedule the batch for posting the product receipts, and click OK in the Posting product receipt page.

   After the batch is successfully run, the product receipts for the purchase orders are generated and the Purchase order status is automatically updated as Received.

For more information on Product receipts against purchase orders, see Microsoft Documentation.

Generate Invoice

When the status of a Purchase Order changes to Received, institutions can generate invoice for the purchase order.

Prerequisite

Configure the Vendor Invoice Workflow

The Vendor Invoice workflow available in the Accounts payable module can be configured to automate the process of invoice generation based on business requirements.

For using the Decentralized Purchasing feature of Anthology Finance & HCM, institutions must configure the Vendor Invoice workflow with a condition to automatically approve and generate invoice when the Invoice Available field is Yes for the Purchase Order.

Steps to Generate Invoice

When the status of a Purchase Order changes to Received, institutions can generate invoice for the purchase order using the following steps:

1. Navigate to All Purchase Orders page (under Procurement and sourcing > Purchase orders)

2. Select and view Purchase orders with the Purchase order status as Received.

3. Click Invoice > Generate > Invoice.

   The Vendor Invoice page is displayed.

4. Click the Workflow menu.

5. The Vendor Invoice Workflow is displayed, click Submit.

6. Click OK.