In manufacturing industry, there are scenarios where there is need to change some bill of materials items due to various reasons. i.e. due to lack of availability of original material, or there may be increase in price of original material. & once production order is scheduled then it is not possible to change raw materials. As a result, Microsoft has added a new feature that allows users to switch out BOM items for other items on planned or estimated production orders. This feature is useful for production manager to keep production running as well as to business personnel to keep business running in absence of or lack of required material, provided that alternate material is available. Prerequisites for altering BOM items on production orders: – system must meet the following requirements: Also note that, one can change BOM items only for production orders that have a status of Estimated or Scheduled. 1.Now, will consider finish good L0001 for this example. Finish good number L0001, as per original BOM has raw materials M0001, M0002, M0003, M0004, M0005, M0006 & P0002. 2.Create production order for item L0001. 3.Change status to Estimate. 4.Now check estimation from Manage cost -> View calculation details -> original raw materials are considered for production order. 5.Now to change BOM item go to Production order -> Change BOM item 6.Now select raw material which needs to be replaced “From item” & “To item”.  & “To item quantity” specify required quantity of new item. Or if “To item quantity” indicates how much of the new item is needed. 7.In Production order lines Tab, select required production order / Orders in which needs to replace BOM item. Click Ok. 8.Now if we check estimation from Manage cost -> View calculation details -> New raw material is considered for production order. M0007 is considered for production order instead of M0006. & consumption is same as original material as “To quantity” was kept as 0. Conclusion – By activating “Change BOM item” feature on system version 10.0.38 or later, can change BOM item on Estimated or scheduled production orders. We hope you found this article useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfronts.com

Purchase department plays very crucial role in any company to maintain right inventory at right time & at right price. So to keep business running efficiently purchase orders are released to suppliers accordingly. But there might be changes in confirmed purchase orders due to various reasons & it’s impacts on business will vary case to case basis. It is very important to quickly assess the impact of changes & respond to mitigate the challenges. D365 F&O has released workspace “Confirmed purchase orders with changes” to review and accept changes to confirmed Purchase Orders. This feature is useful to purchase manager, sourcing manager to take quick actions on changes. On this workspace summary is shown for all orders with no. of “Low impact changes”, “High impact changes”, “Impacted downstream orders” sales, production or service orders which will be affected due to changes in purchase orders. List of “All purchase orders with changes”, change details i.e. item no., quantity change, date change, impacted order details as below – Now selected PO is 000039 in “All purchase orders with changes” list in 1st table in lower half. In 2nd table details of changes are provided with item number & changed quantity. As in this PO quantity of item M0007 is reduced from 100 to 10 because of which production order P000169 & P000171 will be affected which is shown in 3rd table in lower half. In 2nd table in upper half M0007 is part of list which are “High impact changes” means changes in this purchase order is going to impact production orders which will affect business. Similarly selected PO is 000038 in “All purchase orders with changes” list in 1st table in lower half. In 2nd table details of changes are provided with item number & changed quantity. As in this PO delivery date of item M0002 is delayed but this change is not going to affect any downstream order. As there are no details in 3rd table in lower half. In 1st table in upper half M0002 is part of list which are “low impact changes” means changes in this purchase order is not affecting any production order or sales order even if it is delayed upto new date. Similarly, all confirmed orders which has changed will be displayed in this list. Once these changes are reviewed by purchase department personnel, they can discuss with suppliers to mitigate the changes. & then confirm the finalized changes by selecting purchase orders on list & click on confirm purchase orders button. Conclusion – Hence using “Confirmed purchase orders with changes” workspace purchase manager can review changes in 1 screen with details of impact on downstream orders & can approve these orders & take required action to reduce the impact on business. We hope you found this article useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfronts.com

In Purchase & trade agreements in D365 – Part 1 & 2 blog we have gone through overview of Purchase & trade agreements in D365 & how to setup different types of Purchase agreements in D365. In Part 3 & 4 blog we have covered setup of Trade agreement for purchase price & line discounts. Let us see difference between Line & multiline discount, if we have same range for line & multiline discount of 5% for 1-101 quantity, 10% for 101-501 quantity & 15% for 501-1001 quantity. When PO has multiple lines of same item. i.e. 1st line has 50pcs & 2nd line has 70pcs. So, in case of Line discount each line will get discount of 5% even though total quantity is greater than 100. But in case of Multiline discount, discount applied will be 10% as total is greater than 100, as it considers total of multiple lines. & In line & multiline discount, discount is applied to line. But in total discount, it is applied on total purchase order. In this blog will go through how to setup Trade agreement line discount for Multiline discount & Total discount functionality in trade agreement. Problem statement – In this scenario we need to setup trade agreements for Multiline discount & Total discount functionality in trade agreement. Solution steps – 1 – Will setup trade agreement for Multiline discount 1.1 As discussed in previous blog (Part 3) we have already created Trade agreement journal names; we can use same for this blog. For those who have not gone through blog part 3 can follow below steps Create Trade agreement journal names – Go to Procurement & Sourcing -> Setup -> Prices & discounts -> Trade agreement journal names New -> Name -> Pur Disc -> Description -> Purchase discount -> Relation -> Line disc. (purch.) -> Save. 1.2 & Enable parameters – Go to Procurement & sourcing -> Setup -> Prices & discounts -> Activate price/discount Enable all parameters for Multiline discount. Item group parameter Yes for Vendor means It is to enable price for specific vendor for specific Item. Item parameter Yes for Vendor group means if price is same for item for group of suppliers (based on vendor group) then need to enable this parameter. Item parameter Yes for All vendors means if item has same prices for all suppliers then need to enable this parameter. 1.3 Create Item group & assign it to items. Go to procurement & Sourcing -> Prices & discounts -> Price/discount group -> Item discount group -> New -> Price groups -> 01 -> Name -> High Margin -> Price/discount group type -> Multiline discount group New -> Price groups -> 02 -> Name -> Low Margin -> Price/discount group type -> Multiline discount group 1.4 Go to Released products -> respective item -> Purchase Tab -> Multiline discount group -> 01 1.5 Enable Multiline discount – Procurement & Sourcing -> Setup -> Procurement & sourcing parameters -> Prices -> discounts -> Line+Multiline 1.6 Create Trade agreement – Procurement & sourcing – Trade agreement journals -> New -> Name -> Pur disc -> Default relation -> Multiline disc. (purch) -> Lines -> Relation -> Line disc. (Purch.) -> Party code type -> Table -> Account selection -> VEN-000003 -> Product code type -> Group -> Item relation -> 01 -> Unit -> Pcs -> From -> 1 -> To -> 101 -> Unit -> Pcs -> Details (Fast tab) -> Discount percentage 1 -> 5 -> Add line -> From -> 101 -> To -> 501 -> Unit -> Pcs -> Details (Fast tab) -> Discount percentage 1 -> 10 -> Save -> Post 1.7 Create PO – For respective vendor & item. Multiline discount will not reflect automatically. 1.8 To activate discount click on – Purchase (Action pane) – Calculate – Multiline discount. Then discount will be calculated. 2 – Will setup trade agreement for Total discount 2.1 Enable parameters – Go to Procurement & sourcing -> Setup -> Prices & discounts -> Activate price/discount Enable all parameters for Total discount. Total discount will be applicable for all items. 2.2 Create Trade agreement – Procurement & sourcing – Trade agreement journals -> New -> Name -> Pur disc -> Default relation -> Total disc. (purch) -> Lines -> Relation -> Line disc. (Purch.) -> Party code type -> Table -> Account selection -> VEN-000004 -> Details (Fast tab) -> Discount percentage 1 -> 5 -> Save -> Post 2.3 Create PO for respective vendor. Multiline discount will not reflect automatically. 2.4 To check Total discount go to Purchase order (Action pane) – Totals 2.5 To activate discount click on – Purchase (Action pane) – Calculate – Total discount. Then discount will be calculated. 2.6 Go to Purchase order (Action pane) – Totals, total discount of 5% (as defined in trade agreement) is reflecting in Total discount field. With this blog we have covered various aspects of Purchase & trade agreements. We hope you found this article useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfronts.com

In Purchase & trade agreements in D365 – Part 1 & 2 blog we have gone through overview of Purchase & trade agreements in D365 & how to setup different types of Purchase agreements in D365. In Part 3 blog we have covered setup of Trade agreement for purchase price & line discount. In this blog will go through how to setup Trade agreement line discount for quantity range & find next functionality in trade agreement. Problem statement – In this scenario we need to setup trade agreements for quantity range & Find next functionality. Solution steps – 1 – Will setup trade agreement for Line discount for Quantity range 1.1 As discussed in previous blog (Part 3) point no. 2.1, 2.2 & 2.3 we have already created Trade agreement journal names & enabled parameters hence we can use same for this blog. For those who have not gone through blog part 3 can follow below steps Create Trade agreement journal names – Go to Procurement & Sourcing -> Setup -> Prices & discounts -> Trade agreement journal names New -> Name -> Pur Disc -> Description -> Purchase discount -> Relation -> Line disc. (purch.) -> Save. & Enable parameters – Go to Procurement & sourcing -> Setup -> Prices & discounts -> Activate price/discount Enable all parameters for Price. Item parameter Yes for Vendor means It is to enable price for specific vendor for specific Item. Item parameter Yes for Vendor group means if price is same for item for group of supplier (based on vendor group) then need to enable this parameter. Item parameter Yes for All vendors means if item has same price for all suppliers then need to enable this parameter. 1.2 Create trade agreement journal. Go to Procurement & Sourcing -> Prices & discounts -> Trade agreement journals Create new journal – Name -> Pur Disc (Created in step 1.1) -> click on Lines to add details 1.3 Enter line details.  Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000012 -> From -> 1 -> To -> 101 -> Unit -> Pcs -> Discount percentage 1 -> 5. Kindly note that, discount will be applicable to range excluding last number. In this case it will be excluding 101. 1.4 Then add lines as per range required Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000012 -> From -> 101 -> To -> 501 -> Unit -> Pcs -> Discount percentage 1 -> 10. Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000012 -> From -> 501 -> To -> 1001 -> Unit -> Pcs -> Discount percentage 1 -> 15 Then validate & post. 1.5 Then create new purchase order with respective vendor (In this case VEN-000001) for respective item (In this case P-000012) discount % will be reflected as defined in Trade agreement. As per above Trade agreement, if quantity is within 1-100 then discount will be 5%. As per above Trade agreement, if quantity is within 101-500 then discount will be 10%. 2 – Will setup trade agreement for Line discount with Next flag enabled 2.1 When we have trade journal with multiple scenarios for same item, “Find next” flag checks the all the applicable scenarios defined in trade agreement. When “Find next” flag is disabled then system checks & use discount with highest level of details. Create trade agreement journal. Go to Procurement & Sourcing -> Prices & discounts -> Trade agreement journals Create new journal – Name -> Pur Disc (Created in step 1.1) -> click on Lines to add details 2.2 Enter line details.  Party code type -> Table -> Account selection -> VEN-000002 -> Product code type -> Table -> Item relation -> P-000009 -> Unit -> Pcs -> Discount percentage 1 -> 5 -> Find next -> Yes Party code type -> Table -> Account selection -> VEN-000002 -> Product code type -> Table -> Item relation -> P-000009 -> From -> 101 -> To -> 501 -> Unit -> Pcs -> Discount percentage 1 -> 10 -> Find next -> Yes Party code type -> Table -> Account selection -> VEN-000002 -> Product code type -> Table -> Item relation -> P-000009 -> From -> 501 -> To -> 1001 -> Unit -> Pcs -> Discount percentage 1 -> 15 -> Find next -> Yes 2.3 Now if Find next parameter is Disable & then if we create PO with quantity 50 then disc will be 5%, quantity 150 then also discount 5% (even though we have given disc of 10% for 101-501) It is because Find next parameter is turned off, so system search for best fit price. Since in 1st line, quantity is not mentioned it is best fit line for all quantities & hence only applies 5% disc. 2.4 Now if we enable Find next parameters in all 3 lines & then if we create PO with quantity 50 then discount will be 5%, quantity 150 then discount 15% (as we have defined discount of 10% for 101-501 & 5% for all quantity) So system finds 2 best possible discounts hence added the same. If quantity 700 then discount 20% & If quantity 1050 then Discount 5%, as we have defined additional discount till quantity 1000. In this blog we completed how to setup of trade agreement line discount for quantity range & next flag. In next blog (Part 5) will cover Multiline discount & Total discount. We hope you found this article useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfronts.com

Introduction In Purchase & trade agreements in D365 – Part 1 & 2 blog we have gone through overview of Purchase & trade agreements in D365 & how to setup different types of Purchase agreements in D365. In this blog will go through how to setup Trade agreement for Purchase price & how to setup different types of Trade agreement of line discount in D365. i.e. Fixed amount, percentage discount or for quantity range. Problem statement – In this scenario we need to setup different types of trade agreements for vendor. Solution steps – 1 – Will setup trade agreement for purchase price 1.1 Create Trade agreement journal names – Go to Procurement & Sourcing -> Setup -> Prices & discounts -> Trade agreement journal names 1.2 New -> Name -> Pur Price -> Description -> Purchase price Trade agreement -> Relation -> Price (purch.) -> Save. 1.3 Enable parameters – Go to Procurement & sourcing -> Setup -> Prices & discounts -> Activate price/discount 1.4 Enable all parameters for Price. Item parameter Yes for Vendor means It is to enable price for specific vendor for specific Item. Item parameter Yes for Vendor group means if price is same for item for group of suppliers (based on vendor group) then need to enable this parameter. Item parameter Yes for All vendors means if item has same prices for all suppliers then need to enable this parameter. 1.5 Create trade agreement journal. Go to Procurement & Sourcing -> Prices & discounts -> Trade agreement journals 1.6 Create new journal – Name -> Pur price (Created in step 1.2) -> click on Lines to add details 1.7 Enter line details.  Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000009 -> Unit -> Pcs -> Amount in currency -> 3000 -> Save. 1.8 Validate -> Validate all lines 1.9 Post. 1.10 Then create new purchase order with respective vendor (In this case VEN-000001) for respective item (In this case P-000009). Purchase price will be reflected as per set in Trade agreement. 2 – Will setup trade agreement for Line discount for Fixed amount 2.1 Create Trade agreement journal names – Go to Procurement & Sourcing -> Setup -> Prices & discounts -> Trade agreement journal names 2.2 New -> Name -> Pur Disc -> Description -> Purchase discount -> Relation -> Line disc. (purch.) -> Save. 2.3 Enable parameters – Go to Procurement & sourcing -> Setup -> Prices & discounts -> Activate price/discount Enable all parameters for Price. Item parameter Yes for Vendor means It is to enable price for specific vendor for specific Item. Item parameter Yes for Vendor group means if price is same for item for group of suppliers (based on vendor group) then need to enable this parameter. Item parameter Yes for All vendors means if item has same prices for all suppliers, then need to enable this parameter. 2.4 Create trade agreement journal. Go to Procurement & Sourcing -> Prices & discounts -> Trade agreement journals Create new journal – Name -> Pur Disc (Created in step 2.2) -> click on Lines to add details 2.5 Enter line details.  Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000009 -> Unit -> Pcs -> Amount in currency -> 100 -> Save. 2.6 Then validate & post the journal. 2.7 Then create new purchase order with respective vendor (In this case VEN-000001) for respective item (In this case P-000009) discount will be reflected as defined in Trade agreement. 3 – Will setup trade agreement for Line discount for discount % 3.1 As we have created already journal name & enabled parameters in solution 2, we can directly create journal. Create trade agreement journal. Go to Procurement & Sourcing -> Prices & discounts -> Trade agreement journals Create new journal – Name -> Pur Disc (Created in step 2.2) -> click on Lines to add details 3.2 Enter line details.  Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000010 -> Unit -> Pcs -> Discount percentage 1 -> 10 -> Save. Then validate & post. 3.3 Then create new purchase order with respective vendor (In this case VEN-000001) for respective item (In this case P-000010) discount % will be reflected as defined in Trade agreement. 3.4 There is one more field available at Trade journal Discount percentage 2. Define Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000011 -> Unit -> Pcs -> Discount percentage 1 -> 10 -> Discount percentage 2 -> 5 -> Save. Then validate & post. If both Discount percentage 1 & 2 is defined, then on Purchase value 1st discount in field 1 is applied & then on that value % of field 2 is applied. i.e. if amount 100 & disc 1 -10 & disc 2 – 5 then final % will be 100*.1=90*.05=85.5 so total discount will be 14.5%) 3.5 Then create new purchase order with respective vendor (In this case VEN-000001) for respective item (In this case P-000011) discount will be reflected as defined in Trade agreement. In this blog we completed how to setup Trade agreement for Purchase price & line discount fixed amount & discount percentage. In next blog (Part 4) will cover setup of trade agreement line discount for quantity range & next flag. We hope you found this article useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfronts.com

Introduction In Purchase & trade agreements in D365 – Part 1 blog we have gone through overview of Purchase & trade agreements in D365 & how to setup different types of Purchase agreements in D365. In this blog will go through how to setup purchase agreement of type Product category value commitment & Value commitment. To give brief overview of Purchase & trade agreements in D365, for those who have not gone through part 1 of this blog. In D365 we can create Purchase agreements for blanket orders to buy certain fixed quantity of item from specific vendor within specified time. & Trade agreement can be used to create discounts generally for short period for specific vendor or vendor group. In D365 there are different types of Purchase agreement & trade agreements. Below are different types of Purchase agreements based on commitment in D365 – Product category value commitment is setup when there is commitment to buy fixed amount of specific category of goods from specific vendor over fixed period & vendor provide discount%. For example, purchaser have committed to buy Travel luggage bags category SKUs from vendor A worth 10million over next 1 year then vendor will offer 20% discount for same. Value commitment when there is commitment to buy fixed amount from specific vendor over fixed period & vendor provide discount%. For example, purchaser have committed to buy from vendor A worth 15million over next 1 year then vendor will offer 20% discount for same. Below are different types of Trade agreements based on relation in D365 – Problem statement – In this scenario we need to setup purchase agreement of type Product category value commitment & Value commitment for vendor. Solution steps – 1 – Will create purchase agreement for Product category value commitment 1.1 Go to Procurement & Sourcing -> Purchase agreements -> Purchase agreements 1.2 Click on New -> Vendor account -> Select respective vendor (In this case it is VEN-000002) -> Purchase agreement classification -> Blanket purchase agreement -> Default commitment -> Product category value commitment -> Effective date -> Select respective date (In this case it is 1 Aug 24) -> Expiration date -> Select respective date (In this case it is 1 Aug 25) -> Ok 1.3 Fill the respective details of Item/Category name – Spinner, Net amount – 100000, Discount percent – 15 & Max enforced – Yes. Max enforced Yes means quantity consumed against purchase agreement is tracked. If purchase quantity exceeds quantity mentioned in agreement, then message will be displayed & link of Purchase agreement is removed from purchase order. & confirm purchase agreement. 1.4 Then create new Purchase order, select Purchase agreement to link 1.5 Add any Item with category mentioned in purchase agreement, in this case it is “Spinner” & required quantity in purchase order, discount will be automatically taken from purchase agreement. 1.6 We can check which agreement is linked, click on Update line -> Purchase agreement -> Attached. 1.7 Similarly, In Purchase agreement also same is reflected. 2 – Will create purchase agreement for Value commitment 2.1 Go to Procurement & Sourcing -> Purchase agreements -> Purchase agreements -> Click on New -> Vendor account ->  Select respective vendor (In this case it is VEN-000005) -> Purchase agreement classification -> Blanket purchase agreement -> Default commitment -> Value commitment -> Effective date ->  Select respective date (In this case it is 1 Aug 24) -> Expiration date ->  Select respective date (In this case it is 1 Aug 25) -> Ok 2.2 Fill the respective details of Item/Category name – can select highest category in this case it is Bags, Net amount – 500000, Discount percent – 20 & Max enforced – Yes. Max enforced Yes means quantity consumed against purchase agreement is tracked. If purchase quantity exceeds quantity mentioned in agreement, then message will be displayed & link of Purchase agreement is removed from purchase order. & confirm purchase agreement. 2.3Then create new Purchase order, select Purchase agreement to link 2.4 Add any Item with category mentioned in purchase agreement in this case it is “Bag” & required quantity in purchase order, discount will be automatically taken from purchase agreement. 2.5 We can check which agreement is linked, click on Update line -> Purchase agreement -> Attached. In this blog we completed purchase agreement types. In next blog (Part 3) will cover setup of trade agreement. We hope you found this article useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfronts.com

Introduction In many businesses purchase is common & important function. & for purchase department, agreement is important feature. In D365 we have different types of agreements. i.e. Purchase agreement & Trade agreement. Both agreements have its benefits. In this blog will go through overview of purchase & trade agreements in D365 & setup of Purchase agreement in D365 of type Product quantity commitment & Product value commitment. In D365 we can create Purchase agreements for blanket orders to buy certain fixed quantity of item from specific vendor within specified time. Whereas Trade agreement can be used to create discounts generally for short period for specific vendor or vendor group. In D365 there are different types of Purchase agreement & trade agreements. Below are different types of Purchase agreements based on commitment in D365: Product quantity commitment is setup when there is commitment to buy fixed quantity of item from specific vendor over fixed period, so vendor will provide special purchase price for that quantity over defined period. For example, purchaser have committed to buy 1000 quantity of 1 SKU of luggage bag from vendor A over next 1 year then vendor will offer special price of 2000 instead of original price of 3000. Product value commitment is setup when there is commitment to buy fixed amount of specific item from specific vendor over fixed period & vendor provide discount%. For example, purchaser have committed to buy 1 SKU of luggage bag from vendor A worth 1million over next 1 year then vendor will offer 15% discount for same. Product category value commitment is setup when there is commitment to buy fixed amount of specific category of goods from specific vendor over fixed period & vendor provide discount%. For example, purchaser have committed to buy Travel luggage bags category SKU’s from vendor A worth 10million over next 1 year then vendor will offer 20% discount for same. Value commitment when there is commitment to buy fixed amount from specific vendor over fixed period & vendor provide discount%. For example, purchaser have committed to buy from vendor A worth 15million over next 1 year then vendor will offer 20% discount for same. Below are different types of Trade agreements based on relation in D365: Trade agreement for Purchase price is used to define purchase price of item from specific vendor or group of vendors. The price defined in trade agreement will be reflected in purchase order automatically. Trade agreement for Line discount for purchase is used to define discount on purchase price of item. can setup different types of discounts i.e. Fixed amount, percentage discount or for quantity range. Trade agreement for Multiline discount for purchase is also used define discount on purchase price of item but in multiline discount system will consider quantity of specified item available on multiple lines in purchase order to decide discount percentage. For example, If we have same range for line & multiline discount of 5% for 1-101 & 10% for 101-501. When Purchase order has 2(or multiple lines) of same item. i.e. 1st line has 50pcs & 2nd line has 70pcs. So, in case of Line discount each line will get discount of 5% even though total quantity is greater than 100. But in case of Multiline discount, discount applied will be 10% as total is greater than 100, as it considers total of multiple line. Trade agreement for Total discount for purchase is used to define discount percentage for total purchase order level & not at line level. Also note that, if both purchase agreement & trade agreement are defined for same combination of vendor & item, then Purchase agreement gets precedence / priority over trade agreement. Problem statement: In this scenario we need to setup Product quantity commitment & Product value commitment type of purchase agreement for vendor. Solution steps: 1 – Will create purchase agreement for Product quantity commitment 1.1 Go to Procurement & Sourcing -> Purchase agreements -> Purchase agreements 1.2 Click on New -> Vendor account -> Select respective vendor (In this case it is VEN-000001) -> Purchase agreement classification -> Blanket purchase agreement -> Default commitment -> Product quantity commitment -> Effective date -> Select respective date (In this case it is 1 Aug 24) -> Expiration date -> Select respective date (In this case it is 1 Aug 25) -> Ok 1.3 Fill the respective details of Item number – P-000003, Quantity – 1000, Unit price – 3000 & Max enforced – Yes. Max enforced Yes means quantity consumed against purchase agreement is tracked. If purchase quantity exceeds quantity mentioned in agreement, then message will be displayed & link of Purchase agreement is removed from purchase order. 1.4 Confirm purchase agreement. 1.5 Now create new purchase order. Go to Procurement & sourcing -> All purchase orders 1.6 New -> Select Vendor -> Select above created Purchase agreement -> Ok. 1.7 Add Item mentioned in purchase agreement, in this case it is P-000003 & required Quantity 500 in purchase order, price will be automatically taken from purchase agreement. 1.8 We can check which agreement is linked, click on Update line -> Purchase agreement -> Attached. 1.9 Similarly, In Purchase agreement also same is reflected. 2 – Will create purchase agreement for Product value commitment 2.1 Go to Procurement & Sourcing -> Purchase agreements -> Purchase agreements -> Click on New -> Vendor account -> Select respective vendor (In this case it is VEN-000001) -> Purchase agreement classification -> Blanket purchase agreement -> Default commitment -> Product value commitment -> Effective date -> Select respective date (In this case it is 1 Aug 24) -> Expiration date -> Select respective date (In this case it is 1 Aug 25) -> Ok 2.2 Fill the respective details of Item number – P-000003, Net amount – 50000, Discount percentage – 10 & Max enforced – Yes. Max enforced Yes means quantity consumed against purchase agreement is tracked. If purchase quantity exceeds quantity mentioned in agreement, then message will be displayed & link … Continue reading Understanding Purchase & trade agreements in D365 – Part 1 →

Introduction In today’s competitive market it is very much important to have edge over other competitors for sustainable business & growth. There are various ways to gain market share like affordable rates, specialized items, etc. One of the ways to offer some essential supplementary items that are required for the optimal use and functionality of the primary products. Hence, many suppliers are offering various supplementary items either free or at with minimum price. Or offering certain quantity of same item on purchase of bulk quantity. i.e. Luggage bag with luggage bag cover as supplementary item or Buy 4 soaps & get 1 free. Problem Statement In this scenario we need to define supplementary item & conditions to add same on purchase order. i.e. Which supplementary item or items to for which vendor for what quantity of main item, at what rate & for what time period. Solution steps Follow below steps to create & add supplementary item/items on purchase order. Create main item. Create supplementary item – Then go to main item -> Purchase Tab -> Supplementary purchase items New window will open -> Click on new Then add supplementary item details based on different scenarios. Scenario 1 – When will buy 1 “Luggage bag” from Vendor 1002 will get 1 “Luggage cover” free. Define supplementary item accordingly. Add Vendor details – Select “Account code” as Table if only specific vendor is going to provide supplementary item. & Select “Account code” as All if all vendor will provide supplementary item. Quantity limit – Select quantity of main item. i.e. Luggage bag Supplementary item – Select code of Supplementary item. i.e. Luggage bag cover Supplementary quantity – Select quantity of supplementary item Multiple quantity – Select what will be incremental quantity. i.e. in this case it is 1, means if we buy 1 bag then will get 1 cover free, if we buy 2 bags then will get 2 covers free. Date range – If supplementary item will get only for specific period, then define from date & to date. Free of charge – If this toggle is Yes then supplementary item will be added to purchase order without price. If it is No, then supplementary item will be added with price. & save. Now create purchase order for vendor 1002 & add item luggage bag – go to Procurement & sourcing -> All purchase orders Now to add supplementary item click on Purchase order line -> Supplementary items New window will open. Click Ok. Then Supplementary item will be added to the purchase order. Follow regular procedure to further process the purchase order. Scenario 2 – When will buy 5 “Luggage bags” from Vendor 1001 will get 1 “Luggage bag” free. Define supplementary item accordingly. Add Vendor details – Select “Account code” as Table if only specific vendor is going to provide supplementary item. & Select “Account code” as All if all vendors will provide supplementary item. Quantity limit – Select quantity of main item. i.e. Luggage bag Supplementary item – Select code of Supplementary item. i.e. Luggage bag Supplementary quantity – Select quantity of supplementary item. Multiple quantity – Select what will be incremental quantity. i.e. in this case it is 5, means if we buy 5 bags then will get 1 bag free, if we buy 10 bags then will get 2 bags free. Date range – If supplementary item will get only for specific period, then define from date & to date. Free of charge – If this toggle is Yes then supplementary item will be added to purchase order without price. If it is No, then supplementary item will be added with price. & save. Create PO & add Luggage bag 10 quantity. Now to add supplementary item click on Purchase order line -> Supplementary items For 10 quantity of Luggage bags 2 bags will be added as supplementary. As we have set up of on buy of 5 bags 1 bag free. Follow regular procedure to further process the purchase order. Conclusion In above mentioned way, we can setup different supplementary item/items to be used on purchase orders. We hope you found this article useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfronts.com

Introduction In multinational companies having different hierarchy for purchase, i.e., in some companies, purchase is made at regional level, but in some companies, purchase is made at headquarter level by consolidating all regional requirements to have higher buying power and economies of scale and to maintain the same quality of goods over all regions. In a multientity environment having separate sets of employees for each legal entity and only headquarter employees having purchasing authority for all regional entities, the decision of inventory is taken by regional entity employees. In this case, each region submits a requirement to headquarters. In this case, to post and report on what and how much purchase was made for the respective regional entity, we need to create a purchase requisition for the respective buying legal entity. i.e., USMF is the headquarters entity, and PM is the regional entity. Problem statement While creating Purchase requisition from headquarter employee’s login, it is created with buying legal entity as headquarter entity. i.e. Julia is an employee of the headquarters USMF entity who will be going to issue the purchase requisition, and Mahesh is an employee of the regular entity PM. When we login to the PM entity from Julia’s login and create a purchase requisition, then the entity will automatically change to USMF. i.e., when a purchase requisition is made for a PM entity through Julia’s login with details given by Mahesh, it should remain for the PM entity, but the entity changes to USMF. & hence purchase requisition is registered at USMF. Follow the below steps in order to create a purchase requisition with a buying legal entity as per information given by respective regional entity employees and to maintain all details on the respective entity. i.e., details given by Mahesh for purchase requisition will be maintained on PM entity. Needs to add Mahesh name as requester for PM entity in Julia’s account. Go to Procurement & Sourcing > Setup > Policies > Purchase Requisition Permissions > 2. Then the below screen will appear. By preparer, choose Julia. Requester: Add all required employees of the PM entity, i.e., Mahesh, Jodi, Charlie, Ramesh, etc. 3. Go to Procurement & Sourcing -> Purchase Requisitions -> All purchase requirements and create new Purchase requisition from PM entity & click on requester, then all above added names will be available for selection. 4. And now if we add requester as Mahesh or any other name from the list, then a purchase requisition will be created for the PM entity, and the window will not switch back to USMF. Now all items added to this purchase requisition will be ordered and maintained for the PM entity. Conclusion For businesses with multiple legal entities, appropriately configuring purchase requisition permissions in Dynamics 365 guarantees that purchases are correctly attributed to the appropriate legal entities. This method improves reporting accuracy at the regional levels while also streamlining the procurement process. We hope you found this article useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfronts.com

In the dynamic landscape of manufacturing, retail and distribution, the selection of the right Warehouse Management System (WMS) holds paramount importance. It’s a pivotal decision that influences operational efficiency by saving time and labor in tracking processes, reducing loss of inventory, prevents loss of sales opportunities, greater productivity & stock control. Hence resulting into greater customer satisfaction and ultimately, business growth. Among the plethora of available options, two prominent choices stand out: D365 F&O out-of-the-box WMS solutions and SATO Global WMS. Out-of-the-box WMS solutions in D365 Finance and Operation offers standardized features designed to suit general warehouse management needs. These solutions are pre-configured and cater to businesses that prioritize simplicity and adherence to standard industry practices. Advantages of D365 F&O Out-of-the-Box WMS: Conversely, SATO WMS along with D365 F&O ERP: SATO WMS is 3rd party software which is tailored for customization and efficiency. SATO WMS is renowned for its adaptability and tailored functionalities. It offers a high level of customization, empowering businesses to mold the system according to their unique requirements. This flexibility facilitates seamless integration with existing processes, ensuring a smoother transition and optimized operations. Key Features of SATO WMS: The decision between SATO WMS and out-of-the-box WMS hinges on understanding the specific needs and priorities of the customer. If a customer prefers standardized processes and does not require extensive customization, an out-of-the-box WMS might be more suitable, offering a cost-effective and efficient solution. However, for businesses seeking a highly customizable solution to align with their unique operational workflows, SATO WMS stands out as the preferred choice, providing adaptability and tailored functionalities that enhance efficiency and productivity. Conclusion: Selecting the right WMS is a critical decision that directly impacts operational efficiency and business growth in the manufacturing, retail and distribution sectors. While SATO WMS offers unparalleled customization and flexibility, out-of-the-box solutions excel in providing standardized, cost-effective options. By comprehensively evaluating factors such as customization needs, operational workflows, scalability, and budget constraints, businesses can make an informed decision that maximizes efficiency and drives growth.