For companies dealing with the sale of items, maintaining an optimal stock level has always been a delicate issue, requiring a delicate balance between the need to have items in stock for prompt delivery to customers and the challenge of managing slow-moving inventory that ties up the company’s financial resources. One practice to address this scenario is to include products with low demand and high value in offers and catalogs but not keep them in stock. Instead, replenishment is triggered only when there is a firm order from a customer.
The ERP system Dynamics 365 Business Central, has a functionality that allows the creation of a purchase order directly from a sales order, establishing a direct link between demand and supply for a specific item. Below, we will show you how to configure and use this functionality.
Firstly, for the item to be ordered, it is necessary to set the replenishment method on the item card. This setting is found on the “Replenishment” tab, in the “Replenishment System” field, where you will select the “Purchase” option. In the “Vendor No.” field, choose the supplier code from the list from which you procure the item.
Once this setup is done, you can use the functionality. Fill in the sales order with the item, and then go to the menu: Actions -> Functions -> Create Purchase Document -> Create Purchase Orders.
A new window will open, showing the quantity to be ordered and the supplier for the order. You will need to confirm this information by clicking the “OK” button.
In the end, a purchase order will be created and can be found in the list of purchase orders.
It’s worth mentioning that in Business Central, when creating a purchase order, the system takes into account the existing stock at that moment. For example, if you had 10 units of an item on the sales order and only 3 units in stock, the purchase order would be generated for the difference of 7 units.
Elian Solutions is part of the Bittnet Group, active for over 15 years as an implementer of the Microsoft Dynamics 365 Business Central ERP system. With a team of over 70 employees and a portfolio of over 250 clients, Elian Solutions is one of the key Microsoft partners for ERP systems.
