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Purchase Order Volumes


A purchase order (PO) is a document that represents an agreement with a vendor to buy goods or services. The document also helps keep track of product receipts that are made toward the order and, later, the accounting of vendor invoices that the vendor bills toward the order.

Purchase orders are beneficial to both the buyer and the supplier.  Also, it allows for payment tracking and record keeping. With purchase orders, businesses can specify the type of goods they want and when they want them.

Purchase order Lifecycle

Purchase Order Example

Company X realizes they need more particle boards. The purchasing department raises a Purchase order specifying the following details;

  • Delivery date – 10/07/2023
  • Shipping terms – Contents inspected on delivery
  • Payment terms – 30 days
  • Payment due date – on delivery
  • Item number – 005
  • Item description – particle boards
  • Quantity – 10
  • Unit price – 30
  • Total price – 300

Create a Purchase Order in D365

When a purchase order (PO) is created in Dynamics 365 Finance & Supply Chain Management, general information about the whole order is specified in the PO header, and you then add one or more PO lines.

To create a Purchase Order (PO), navigate to Procurement and Sourcing > Purchase orders > All purchase orders.

Click the “New” button to create a new purchase order.

This will open the purchase order form. Specify vendor account, delivery address, delivery date, storage dimensions details etc

Click OK button to create the Purchase Order.

In the line section of the purchase order form click the dropdown for “Item number” and select the item number you would like to purchase. Next select the quantity you would like to purchase. The “Unit price” field will default eith with the base purchase price or purchase price from an existing trade agreement if set up. In the “Line details” section of the form there are additional tabs that have additional fields and data related to the line.

POs can also be created by copying lines from another PO document or a sales order.