How to Manage the Quote to Invoice Process in Dynamics 365 Sales Hub in Business Central

Hello and welcome to another video on Microsoft Dynamics 365. As we follow a sales quote through to invoicing, including the purchase cycle for the ordered product. We looked at the opportunity to sales order process with D365 Sales Hub in part one, and now we’ll move into Business Central for the purchase and invoicing process in part two of this video.

My name is John Hoyt, Solutions Architect here at TMC. In D365 Sales Hub, we identified an opportunity, negotiated the sales quote, and finalized the sales order. Now in Business Central, we can review the sales order, create a purchase order for the items, receive those items, ship the goods, and finally invoice the customer. Let’s get started.

We’ll begin by going to our open sales orders. We’ll navigate to the most recent, and here’s our order coming over from the Sales Hub for Trey Research. As a reminder, they were looking for eight of the chairs for their office remodel project. I see in the sales order, though, we’ve not specified what location we’re going to use to fulfill this order. I’ll specify the main warehouse, and Business Central reports back to me that we don’t have any available at that particular location.

I’ll take a look at the details, and sure enough, our inventory availability is zero, not only at the main warehouse but at all locations throughout the system. No problem. We’ll just create a purchase order.

With the purchase order created, we’ll need to do a couple of things. First, we’re going to need to release this purchase order so the vendor is aware that we need to buy the materials. Once that has been released, we’ll give the vendor a little bit of time to ship the chairs over to us, and when they arrive, they arrive with their invoice. We got all eight of the chairs that we were expecting to get. So we’ve received eight chairs in total. We’ll be ready to invoice those eight. I’ll go ahead and process this through now. We’ll post the invoice, and when we post that invoice, we’re going to both receive and invoice in a single step. We could, of course, separate this out into a warehousing step that does the receiving and an accounting step that does the invoicing at a later time. That is now completed. We have the goods in the warehouse, we’ve received the invoice and posted that from the vendor, and we’ll skip looking at that open invoice for the moment.

So our quantity of eight from the main location can now be fulfilled. No more error messages. Our quantity to ship and the quantity to invoice are already set to eight for us. We’re ready to ship those out and post the invoice. So again, we’re going to combine this into a single step, but as with the purchasing cycle, we could separate out shipment as a warehousing activity and the invoicing step as an accounting function. But again, we’re going to do both in a single step here.

So we’ve now converted that sales order that came into the Business Central system from Sales Hub. It’s posted as invoice number 3276, and as before, we’ll skip reviewing that posted invoice. So once the sales order has been integrated from the Sales Hub, a purchase order can be created to fulfill the sales order. The vendor then ships the item to the warehouse. Receiving and invoicing the PO then closes out the purchasing cycle, and finally, the sales order can be shipped and invoiced. In D365 Sales, we identified the opportunity, negotiated the sales quote, and finalized the sales order. Now in Business Central, we’ve created and linked the sales order to the purchase order, received the items, shipped the goods, and invoiced the customer. That’ll conclude this video.

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Thanks again.