Optimized purchase orders with EDI in Dynamics 365
Purchase-to-pay (also known as procure-to-pay or P2P) describes the entire procurement process in a company. In principle, this process can be divided into several sub-areas:
- Determining requirements and creating the order
- Transfer of the purchase order to the supplier
- The receipt and processing of various documents such as order confirmations and delivery bills
- The checking, booking and payment of purchase order-related invoices
While the determination of requirements is mostly an internal or intercompany process, the exchange of information with suppliers is an important lever for creating transparency and simultaneously reducing sources of error, costs and throughput times.
Find out how electronic data interchange (EDI) in conjunction with FlexxLink for Dynamics 365 can support you.
Create purchase orders in Dynamics 365 Finance SCM
Purchase orders are created in Dynamics 365 Finance SCM manually or as a result of upstream processes when determining requirements.
Frequent triggers for purchase orders are:
- Direct deliveries / sales order-related orders
- Purchase requisitions
- Master planning
- Call-offs from blanket orders
Sending purchase orders to suppliers via EDI
Once the internal processes for creating the order have been completed, the information contained therein is transmitted to the supplier as part of a purchase inquiry or order confirmation.
While this can be done in the traditional sense via PDF or e-mail, the use of EDI has numerous advantages:
Purchase order data is transmitted in real time and completely electronically
Errors in manual data transmission or processing by the supplier are minimized
Reduced administrative and resource costs and greater transparency
Master data is continuously checked on the customer and supplier side
FlexxLink enables users of Dynamics 365 Finance SCM to send automated purchase inquiries and order confirmations.
Message formats and content can be customized for each trading partner. For example, FlexxLink supports the sending of EDIFACT ORDERS messages and identification based on GLN, article numbers and GTIN codes.
Receive and post order confirmations via EDI
The receipt and processing of order confirmations triggers numerous activities within Dynamics 365 Finance SCM .
While the status of the orders is set to "Confirmed", information such as the confirmed delivery date can be updated. In addition, stock postings are already created for the planned receipt of goods.
Order confirmations are received using FlexxLink for Dynamics 365 Finance SCM in ORDRSP format. Once the received data has been validated with existing master and transaction data, it is processed and posted according to your process. If goods are delivered using license plates, the initial preparations are also made in Dynamics 365 at this point.
Next steps with FlexxLink
Process advanced shipping notices
Possibilities for processing of ASN
Post purchase order-related invoices
Validate and post invoices in Dynamics 365