Automating a Purchase Requisition to a Purchase Order in D365 Finance and Supply Chain

Manually converting an approved purchase requisition (PR) to a purchase order (PO) can be a time consuming process. Follow along below for the setup and process of having this automated.

Note: A PR workflow must be configured before the setup below can be done.

1. Navigate to Procurement and sourcing > Setup > Policies > Purchasing policies

   1. Click New in the action pane.

   2. Add a Name and Description.

   3. In the Policy organizations Fasttab, add the desired organizations over to the Selected organizations.

2. In the Policy rules Fasttab, select the Purchase order creation and demand consolidation rule. Click Create policy rule.

3. Select the Manual purchase order creation tab. Toggle on "Automatically create purchase orders" and "Run automatic purchase order creation batch job"

a. By toggling these to Yes, once a purchase requisition is approved and the batch job runs, a PO will be created from the PR as long as there are no errors.

4. Couple other cool settings within this policy:

a. Price tolerance tab:

i. Add a Percentage or Amount that a purchase order can change between the time it is approved and the purchase order is created. If the change falls outside of these limits D365 will follow the setup in the Error processing tab.

b. Error processing tab:

i. Based on the tolerance tab, if the PR is outside the limits that are configured, the PR will follow the setup on the Error processing tab.

c. Purchase order split tab:

i. A PR can be split into multiple PO's based on the Requestors, Line types, Procurement categories, or by Accounting date. Toggle to Yes to activate. For example, if you have a PR that has 3 different procurement categories, 3 PO's will be created.

d. Item description transfer tab:

i. Toggle "Use the item description from product definition" to Yes to use the description on the product setup on the PO. If the one on the PR is needed on the PO then toggle "Use the item description from the requisition line" to Yes.

5. To create the batch job that will turn the approved PR's to PO's navigate to Procurement and sourcing > Purchase requisitions > Approved purchase requisition processing > Generate purchase orders in batch.

a. Enter a value in "Number of purchase requisitions in a single task". This value tells D365 to process this many PR's each time the batch job is run. For example, if you put 5, the 5 oldest approved PR's will be processed into PO's.

b. Set up recurrence if needed.

c. Click OK.

6. Monitor failed PR's and PR's waiting to be processed into a PO by navigating to Procurement and sourcing > Purchase requisitions > Approved purchase requisition processing > Release approved purchase requisitions.

a. Select the PR and click Purchase order on the Release tab in the Action pane.

b. This will display a form with the error message and allow the user to fix the PR. For example, if no vendor is selected on the PR, D365 will not allow the PR to be a PO until this field is selected.

7. Verify the PO was created from the PR by navigating to Accounts payable > Purchase orders > All purchase orders. The PO will display the PR number in the line details, on the General tab, under the Purchase requisition header.

Thanks for reading! Please reach out with any questions or feedback!