Supplier Invoicing

Upon raising a purchase order, a user can select to purchase goods by product category or item. Purchasing by product category requires a procurement hierarchy to be configured. Purchasing by specific products requires products to be configured and maintained alongside certain elements of inventory management making the process more complex.

Procurement categories represent categories of goods that are bought by a business for non-stocked purposes. The purpose of a procurement category hierarchy is to make purchasing of items, that are not tracked in inventory, simpler. They can be referenced on a purchase order to purchase goods and services without requiring item level details. Procurement categories are organised into a hierarchy to display information in an accessible manner for the end user. Each category can be broken down into a more granular level of detail but only if this is required by a business. This provides a buildable foundation for mastering category information and can be used for filtering and reporting data within a system.

Purchasing by product requires items to be configured which is more complex and requires inventory management to be configured to enable the item setup and maintenance process. Alternatively, both product categories and products can be configured for purchasing dependent upon business requirements.

This decision would have been made prior to undertaking the GYDE365-Design application as such decision influences the chapters available.

Accruals are used in accrual accounting to track revenue that is recognized in the period that it’s earned in, not when payment is received, and to track expenses (costs) that are recognized when they occur, not when payment is made.

After raising a purchase order for goods with a supplier and receiving those goods, the supplier will send the business an invoice to make payment for the goods received. The invoice must be registered prior to making payment whereby multiple processes can be instilled.

Invoices can be registered prior to invoice matching and approval if required by the business.

Dynamics 365 Finance supports several methods of managing incoming invoices to cater to different company procedures. The system has a different invoice journal depending on the company’s needs. The following types of invoices are available.

• Invoice register and approval
• Invoice journal
• Supplier invoices

Invoice Register Journal

The purpose of the invoice register journal is to pre-register invoices when they arrive at the company and transfer them to an invoice pool for approval. An employee then registers invoice information before validating and posting the journal to the accounts specified in the posting profile. When posting the journal lines, you transfer them to an invoice pool. In an invoice approval journal, you can transfer them from the invoice pool into the invoice approval journal.

Invoice Approval Journal

After you post the lines of the invoice register, the postings display in the invoice pool. The invoice pool displays relevant information about the invoices awaiting approval.

Invoice Journal

You can enter invoices directly into the invoice journal. By default, the user who is logged in and who enters the journal lines approves the invoices.

The invoice journal is designed for users to enter the invoices they receive from suppliers that are not related to purchase orders. These would typically be for expensed, non-stocked goods. As soon as the user enters the incoming invoices, the user can post.

When posting product receipts it is possible to post the stock value of physical stock transactions to the ledger when you update a product receipt.

By estimating the amount of invoices processed by a business entity per month, the core foundational setup of the Dynamics 365 system can be configured based on volumes of transactions.

OCR technology electronically reads a business’ documents by identifying the key information visible and converting it into electronic data. This information or data can then be used internally for any business process or to help process business documents such as the supplier invoice. This drives efficiency and eradicates risk of user error.

Please find below the relevant PCF ID’s.

Level 1 Category: 17058

Level 2 Process Group: 10733

Level 3 Process: 10756