Microsoft Dynamics 365 | Purchase to Pay Purchasing with MRP in Business Central (Demo)

I want to show you a simple purchasing process with MRP in Dynamics 365 Business Central. This could be used in a manufacturing environment or even a distribution environment. Let’s look at the MRP requisition process, purchase order creation and approval, receiving the PO, minimal quality control check, and entering vendor invoices and returns.

MRP Requisition (Alicia)

Let’s start with a planning worksheet. I’m logged in as Alicia, and she’s in the operations area. She’s going to run the MRP process. After calculating the MRP, we have the results, and Alicia marks an action message to order a new product to meet the new safety level.

Purchase Order Creation (Alicia)

Next, let’s carry out the action messages. This creates some purchase orders, and we can see the new purchase order created from the MRP process. Alicia will request approval for this purchase order.

Purchase Order Approval (Admin) and PO Receiving (David)

As the admin person, I see the approval request and approve the purchase order. The next step is to receive the purchase order, and I’m logged in as David, who is in the warehouse. We receive the purchase order, and since it’s a lot tracked item, we specify the lots and receive them.

Back as the admin person, I receive the vendor’s invoice for this purchase order and enter the invoice. Once that’s done, the warehouse does a quick quality control check on the received lots.

Quality Control Inspection (David), Vendor Invoice and Returns (Admin)

Now, back as the admin person, I create a vendor return for the bad batch that needs to be returned to the vendor. We ship the return back to the vendor, and then I apply the return to the original invoice and post it.

That’s the complete process starting with the MRP requisition in the planning worksheet, creating the purchase order, going through approval, receiving the purchase order, performing a quick quality control inspection, entering the vendor invoice, determining and returning a bad batch, and finally, applying the return to the original invoice and posting it.