This webinar recording takes a deeper dive into Microsoft Dynamics 365 Business Central functionality.
You will see an overview of and processes for four different roles: salesperson, sales order processor, warehouse worker, and accountant.
- Create quote from email
Sales Order Processor
- Convert quote to order
- Review sales order
- Review available inventory
- Create purchase order
- Receipt for PO
- Shipment for SO
- Post sales invoice
- Purchase invoice matching
Tess: Good morning, everyone. And thank you for taking some time out of your schedule today for our “Dynamics 365 Business Central Next Level Functionality” webinar. My name is Tess and I’m the facilitator today. Before we get started, just on the right-hand side of your screen, you should have a control panel. And this is where you can type in any questions you have throughout the presentation, and we’ll try to answer any questions at the end of the webinar. Now, I will pass it off to Rico, who is a Senior Solution Specialist on our Dynamics 365 Business Central team. Thanks for taking the time today to present, Rico. I’ll pass it off to you.
Rico: Thank you, Tess. Good morning, everyone. I will be hosting the session today and we will do a little bit more deep-dive into Business Central functionality. So, the initial demo that I did (Dynamics 365 Business Central Overview) was more on the general, how does this essential work and how is it connected to everything? This one is more a deep-dive or a deeper dive, I should say, into sales, purchase, and warehouse processes.
Before I start, I wanna give you a little head start there. Today I will be taking four different roles, which are usually four different people in a company. So, please bear with me when I’m switching my profiles on the software to actually have the visibility that the person in that role would have using Business Central. What I want to demo today is a process where we start with the salesperson who is entering a new quote based on the information that is coming in from an email. The next person that is involved is an order processor. So, the order processor will work in the sales order to confirm everything is available, check the inventory, create purchase orders if necessary, and also create purchase orders for other products. So, this is what the process order…sorry, the order processor that we’ll do. Once the purchase order is created, we flip our cap again and now I will be in the role of a warehouse employee. And being a warehouse employee, I’m going to receive the products that I just ordered and I’m going to ship products which I have available according to my sales order. Once all the products are shipped, I’m flipping again into my next role, which is the accountant, and the accountant will be responsible to review the sales order, see what has already been shipped, and ship the remaining products and invoice the customer. And once this is done, I’m also entering a new purchase invoice and pulling in the receipt lines to make sure that my invoices that I have are actually matching my receipt products. I hope that makes sense. And, again, as I said, please bear with me if I have to flip the role between the different personalities in a company. This is on purpose. Of course, you wouldn’t do that if you are all of these roles in your company.
Okay. So, let’s get started with the salesperson. As I said, I want to start as a salesperson. And I actually want to create a sales quote directly from my email. I can do that… Like I said, I can do that directly from my email. So, I can go to my Outlook application. And in my Outlook, I could have an email, so this is like a sample email, which contains the email address where it was sent from, and it would contain products that the customer wants to buy from us. So, he’s asking for a quote. So, what we can do is go in my Outlook application. I can go and do contact insights. And in here, I can actually connect directly into Business Central without even opening the application. So, this is all happening inside Business Central itself. So, what I can see here is all the details for this customer. So, I can see the balance, I can see the ongoing quotes, I can see the ongoing orders, I can see the posted sales invoices and other statistics. So, this is all available for me in the Outlook application. There’s another way to do that. I can also do the same thing in my mobile Outlook application. So, if I’m in my online version of that, so in the browser, I have the same email here. So, it’s the same account. And I can do the exact same thing by just clicking the little three dots here, going to Business Central Contact Insights. And now I can also, same functionality as in Outlook, I can create a sales quote directly from here. Let me just do that. So, again, it connects into Business Central without even going to the product itself. You’re not leaving Outlook. You can work in the product.
And now here’s the cool part. The system is recognizing that there are these two products and it’s already telling me, “Hey, this customer might want to purchase these two items.” And this one says, “Do you actually want to take these suggestions?” I absolutely want to do. So, what I want is taking these two lines and create a quote from here. So, now we’ve created a quote, it figured out, based on the email address, which the customer should be, and figured out the items, the quantities based on a setup, it knew where it should ship it from. It also knew the pricing. If there’s sales tax involved, all the setups that you usually do in your business application, they all apply because we are in the business application. It’s calculating the tax amounts. It’s calculating the due date and everything. Like everything like you would do it in Business Central directly.
So, let’s now go over. So, this is the quote that I generated, 1029. So, let’s now actually flip into Business Central. From a sales perspective, this could be a profile that I would assign to a salesperson. As you can see, it is pretty much a CRM starting screen. So, you have your sales pipeline, you have your opportunities, you have the top five opportunities, you have a couple of tiles which tie exactly to what you need on your daily basis. What I can also do is dive directly into the sales quotes. As I said before, I generated a new sales quote. And the sales quote I’m looking for is this 1029. So, if I would open up this sales quote here, I would see exactly the same thing that I just generated from my email. So, I could either work from the Outlook or I could do the same thing in here. And now all I need to do is just go print and send it via email. I could do that at Outlook directly or I can just print the quote from here and either print it on an actual printer in an envelope, go over, hand it over in person, or just send it out via email. So, this quote layout can totally be customized. If you want to have this in different colors, if you want to have it with your logo on, it’s all customizable. And the cool part is your customization tool for that is actually Word. We have a webinar on that as well. So, if you’re interested in other functionalities, I have a demo on that in a different recorded webinar.
So, let’s say now I have created a quote and I’m actually happy with this. So, all I would need to do is to release the quote. And, of course, if there is an approval desire in your company, where you need to have the sales quotes approved by someone, you can also send it for approval first. In my case, I will just release this because I don’t need to get an approval on that. And that’s how you would create a sales quote from your email. I think that’s pretty easy. If you have all the business logic on a flight, like all the pricing and everything coming from Business Central and the power of the one Microsoft solution where it’s recognizing products, quantities, and whatnot, to make your life a little bit easier.
Let me flip my profile now to my next role. I’m going to go to Settings. Now I’m leaving my role as a business relation manager and I’m actually entering my role as an order processor. So, as an order processor, what I want to do is I want to convert the quote that was just generated into an actual sales order. Once I have it, I want to review the sales order, attach it with a couple of lines like freight and stuff because that was forgotten in sales. It’s not the salesperson’s duty. So, these are the pieces that you can still enhance in the sales order. I want to check if my inventory is available, and I want to create a purchase order where needed. So, let’s go back to Business Central. Now, you can see that my role has changed to the order processor. As an order processor, I’m not so much interested into sales pipelines and opportunities anymore. I’m more interested in my day-to-day business on, like, what is shipped? What are my returns? What are my customers? So, a different set of information that I may be interested. And, again, we have also the power to connect into Power BI. So, we have Power BI reports baked in and we also can run reports which will be scheduled and show up here. So, all the same functionality as every other role is available in here as well.
So, let’s go now to the sales order…sorry, to sales quote and actually convert the quote into my order. Since we are all working on the same product, we have the same quote available. If I just go to the Sales Quotes, here’s my 1029. This has been released. That means it’s ready for me to pick it up and do what I need to do from my perspective. So, it’s loading the quote. And now all I need to do is go process and make an order. So, I flipped this quote into an order. And I want to open it, of course, because I’m going to enhance it a little bit. So, I have now a sales order. So, it’s not a quote anymore. It’s an actual order. Save information. Everything came over. However, what I see here is I have a couple of notes. So, let’s check what these notifications are. So, first of all, it’s telling me, “The customer has an overdue balance and the credit limit has been exceeded.” Hence, let’s have a look and decide if we still wanna proceed or maybe we should call the customer to pay first or whatever we want to do, right? So, we can totally have the control here. Okay. So, let’s check. So, the credit limit is $75,000 and the total amount is $93,000. So, he is definitely over the credit limit, that’s why we get the message. But let’s see what’s going on here. So, the current balance is just $19,000 and there are outstanding amounts. That means we have sales orders and sales quotes for this customer pending and not processed yet. So, I think this customer is still in good standing because he’s not owing us $75,000. He’s owing us $19,000 at this point. And out of this $19,000, $12,000 are overdue. So, maybe I should still give him a call. But overall, I would say that’s actually fair. Let’s continue with the business.
And then this is, basically, the same message, so I could basically ignore this one. And then I have two other notifications on my items. So, it’s saying that both of my products are actually low in the location where I usually want to ship it from. So, I have multiple locations. In my scenario, the main location is the one where I am located. And I have also a warehouse sitting somewhere in the suburbs and I could basically ship from there as well. So, let’s check what is available for my products. So, both of them are not available in my location. So, let’s check what I can do. So, for this product, I need seven of them. I can check item availability by location to see if it’s available somewhere else. So, main location says, “I need to…” And I can check where I have inventory and I can see that I have three units available in warehouse. I think that’s a good idea to actually flip this to the warehouse and ship it directly from there instead of live location. So, I just selected. It asked me if I want to change my location. Yes, I do. So, now I have the warehouse as the location to ship it from. And for this guy, let’s check if I can do the same thing. Line item availability by location. So, again, cross requirements is seven. Let’s see where it’s available.
Unfortunately, it’s not available so that might mean that I need to purchase it. Not a big deal. I can do that directly from my sales order. However, I need to initiate it. So, let’s do that now. So, let’s create a purchase order from here without even leaving the sales order. So, all I need to do is go to Process, Create Purchase Orders. And now the system will calculate in the background which products are not available and which products should be purchased and what quantity of it. So, if I had like five of them in stock, it would suggest to just purchase two. Based on the setup from the item, it would know where the vendor or what the vendor is. It would also let me know the price and everything. So, everything is already specified. Since I have nothing in stock and I need seven, I better seven, or if I wanna stock up, I can also stock up and say, “I wanna buy 10.” I just leave it with the seven. And it is creating my purchase order for me. I can see that here. So, new purchase order is created for the Graphic Design Institute. So, that is my vendor here. And I have this product. I need seven of them in my main location. Pricing, everything came over as I need it. Perfect. Let’s just go and… Let’s just go and release this purchase order. So, I could send it out via email like the normal stuff. I can totally do that directly from here. For now, I just want to create the purchase order and assume that my vendor would get.
Since I have this set up to go into the warehouse, I need a little bit more logistic here. Since I just can’t go downstairs to my main location, grab the product, put it in a box, and ship it out, I need to inform someone to actually go and grab the product and ship them to the customers. So, I need to communicate to my warehouse employee. So, let’s just do that by releasing the sales order. That means I can’t change anything anymore because I can’t change quantities and pricing. But what I can do now is I can actually go forward and process the next steps from here. So, I can go to Actions, Warehouse, Create Warehouse Shipment, and it will create a warehouse shipment for my warehouse location. So, this will be the warehouse shipment. So, it’s saying go to the location, take the product on this warehouse, and then ship it to the customer. So, all the information that we need would be in here. So, this is now generated. So, my warehouse people can actually pick it up. It will be there in a second once I flip my role to the warehouse.
What else can I do as an order processor? So, my sales order to me is now all in a good standing. So, I have purchased the product that I’m missing. I have already indicated for my warehouse employee to ship the product that I have. So, I can actually close the sales order now and wait until everything has been done. Since I’m the order processor, not just the sales order processor, I’m also responsible for any replenishment of products that I’m missing. So, the system is capable of running and master replenishment schedule. So, that means you would specify, like, minimum order quantities for items. You can define minimum stock quantities for items so that you never run out of a specific product. You can run it based on your sales. For example, all the sales come in and you have none of these products. So, instead of doing it order by order, you can also say, “Show me everything that I’m lacking of. Create my purchase orders as I need them. And create the purchase orders all in one.” To do that I can go to either of the two tools, one is the planning worksheet, the other one is the requisition worksheet. I decided to go with the requisition worksheet today. So, I would search for my requisition worksheet. And in my worksheet I have a function that allows me to calculate my plan. What it does is basically checking my inventory, checking my demands, and checking all my incoming supplies over the next couple of days. So, I specified this date filter here. And when I run it, the system will suggest the products that I should purchase based on the different criteria that I just described. So, it’s saying I should buy the Amsterdam lamp into my main location. I need 17 of them. It has the direct unit cost. The vendor is specified. And all the good stuff. So, technically, all I need to do is decide if I want to do that, if I want to bump up the quantities, or maybe I decide to not buy it and maybe transfer it from somewhere else or maybe change the vendor. So, all of that can be done here. But if I agree with all the suggestions that the system meet, I can go Process, and Carry Out Action Message. And then it will create two purchase orders for me.
So, let’s go and see what is happening in my purchasing. So, in purchasing I have my purchase orders. And I should see two new purchase orders. So, this is one of the two that was generated. So, it combined the three lines from the planning worksheet into this one purchase order, of course, with the quantities and the pricing and everything. And this also created another purchase orders. Let me just go there by clicking this button, so it goes to the next purchase order, number 26. And this is the other product. So, by just doing the planning worksheet, figuring out what is on demand, I can decide if I wanna purchase it, and then from here I can take it from there, send the purchase orders to my vendors, print it, whatever I need to do from a purchase order perspective. That should also make your life way easier than just having these tons of spreadsheets and doing your forecast in Excel. I hope that all makes sense so far from an order processor perspective.
So, let’s now, again, flip the role into a different person. And this time I want to be a warehouse worker. So, let me go over and assign myself the warehouse worker role. And being in the warehouse worker, I want to do two pieces. First piece I want to do is receive the products that I have on my purchase order. And the second piece is I want to ship the products that I have to be shipped out of my warehouse location. So, the purchase order that was created for the missing product and this one is the stuff that I already had an inventory and I just needs to ship it out. Okay. So, as you can see, again, new role center for the warehouse worker. Everything is now warehouse-related. So, I have picks. I have put-aways. I have like a ton of functionalities which I can use, but right now I wanna keep it super, super simple. So, what I want to do is create a new warehouse receipt. And I wanna create this warehouse receipt for my main location. And now I can go and go to Process, Get Source Documents. And here I will see the purchase order that I just generated and which has been released. So, this will contain the product that I need for my sales orders. So, I click OK. I will get this product that I need seven of those. I have the box in front of me. I do the counting and I say, “Yep, that’s all good. I have this. I want to receive it.” So, I can confirm receipt here. So, all I do is go to Posting and post my receipt. And this is how I make sure that I’m only receiving what has been ordered. And this is how you would actually enter your incoming inventory into the system. That’s one option, but this is the main option that I would see if you have a warehouse involved.
So, now, since I have received this product, I am actually ready to go to the other warehouse. So, now I would be in the same role but in a different warehouse. Now, I need to go and figure out what needs to be shipped. So, let’s go here, Warehouse Shipments, and figure out what I need to do on my day in life. So, here is a new warehouse shipment. So, what I can do is I can open it up and see, “Okay. This is the product that I need to grab.” Let’s get some space here and hide these details. So, I can see that I have the sales order here and I have these products and I need to ship it from my warehouse. Maybe I should check where I have this product available. So, let’s check what I have in my bin contents. So, I can see that I have my warehouse, but in my warehouse, I have multiple bins. So, I have a little structure here where it says, like, aisle number one, shelf number one, and then this is rack number two. Sorry. The other way around. Aisle number, rack number one, shelf number two. So, this is the second from the bottom. And I have three units from this product sitting in that shelf, so I better grab it from here, from number two. So, I would go here and select the product. So, I’m picking it, I’m putting it in a box, getting the label or getting the agent or getting the agent service. All these things can be attached and figured out and entered in the system. So, now I’m ready to actually go and post my shipment from here. So, Post Shipment. And this time I only want to ship the product. And for some reason, it didn’t do what I wanted to do. Of course, it’s a demo and this is usually what happens. Give me a second. I just need to check one thing here. And check why I can’t post. That is interesting. Did I not just check that this inventory should be available in here? I guess I selected the wrong one. Yeah, I think from the wrong shelf. Sorry. My mistake. Posting, Post Shipment. And now it has been successful. Perfect.
So, now, in my role as a warehouse manager or a warehouse person, I receive products and put them in a shelf, and I also use products from my shelf and put them in a box and ship them out to my customer. So, this is what I would do in my role as warehouse employee. So, now let’s flip my role once again and actually be the accountant of the system or in the company and deal with all the invoicing. So, I go again to my Settings, and this time I’m going to the accountant’s role. So, being an accountant, I have basically two tasks in my NID today. I want to go and post the sales invoice for the sales order that I have in place and I also want to post the purchase invoice for the product that I have received before. So, let’s go into Business Central and check what I can do here. Again, different role, accountant this time. And I have, again, different tiles and different functionality available for me that I need in my role as accountant.
So, for now, let’s go to my Sales Orders because this is where I start for my sales invoicing. I would go into the sales order that I have to deal with. This is the order number seven. And I would open it up, and this time also let me hide the details in here. It’s taking a little bit too much of my space. I can see the products that I should ship. And if I move over, I can actually see not only the pricing, but I can also see what already has been done. So, I can see that this needs to be shipped. And I can see that this has already been shipped. And both of those still need to be invoiced. Since I’m in the main location and I know that these guys put the products together down in the shop floor, they put it together and they just shoot me an email and said, “Hey, we are done. You can go ahead and post a sales order. So, by the way, please also do the shipment for me in the system.” I can totally do that. So, I can go here and check the posting date. Actually, that’s way off. So, for some reason, the date is in December. I don’t want that. I want to use today’s date, of course. I wanna take the posting date based on that. The system will calculate the due date for the invoice. And what I do now is just go here, Posting, and post my sales order. From the sales order, I can do either only the shipment, I can do only the invoicing, or I can do invoicing and shipping all in one. That’s what I wanna do just for the sake of having an easy process now. So, I’m shipping to seven and then invoicing to seven and to two, all in one invoice.
Let’s see what happened here. My new posted sales invoice with my two items on it with the quantities and the pricing. And I didn’t even touch on G/L accounts yet. So, that makes me wonder, so what is happening in the background? What was posted into my G/Ls? So, let’s see, actually, what’s going on here. So, for my documents, I can use this function that is called Navigate. If you click on this Navigate button, it will actually show you all the related transactions that happened when you posted this sales invoice. So, as you can see, of course, there’s the sales invoice itself. And you can also see that there are 10 G/L transactions. You can also see that there is a customer ledger entry. So, let’s just check this one first. So, of course, there’s new custom ledger entries telling me this is the invoice with the original amount. Of course, it’s still outstanding, so the remaining amount is still the same and the due date is August 10. So, I can totally see that directly from here. It has also value entries. So, it kind of… Not kind of. It calculated the cost of goods sold and posted the entries into the system so you will know where the inventory is gone and the value for that. And now let’s check what actually happened in my general ledgers. So, when I posted my invoice, it did definitely post everything that was related to the invoice. So, it posted my revenue, it posted my liability for the sales taxes, and it also posted… Sorry. Yeah. The liability for the sales taxes. And it also posted the DAR account for the total of all those. And all the other ledgers which you can see in here are related to our inventory. So, we can see at the same time as opposed to the invoice, it also calculated the cost of goods sold. And it’s reduced the amount for my inventory. So, all these things are happening by just going ahead and selling an item from the system.
I hope that helps a little bit of understanding how integrate everything is and how easy it is to go from a sales order to the sales invoice and doing all the accounting just in the background. So, now, since I have invoiced my customer, I maybe want to also post the purchase invoice for my products now. So, let’s go ahead to the start screen again and let’s go and create a new purchase invoice. So, remember we received these seven products and now I’m getting an invoice for it. And to be able to do, like, a three-way match, so we have the purchase order, then we have to receive the purchase order. Now, the next step of matching, I will pull it in the product into my invoice which has been received. So, for my vendor, 30,000, which is the Graphic Design Institute. I want to figure out what has been received and what can I pull into my invoice here. Get some more space. So, for Line, I have a Function, and the function is called Get Receipt Lines. And now it will show me all the products that have been received for that particular vendor, which I can pull in to my invoice. So, here are my seven blue armless swivel chairs. So, I just click OK and it will pull in the receipt for this chair. It will pull the price from the purchase order.
So, if, for example, the purchase order says it’s $222 but, in reality, the vendor just charged us $220 because we are a good customer and they don’t want to deal with small pennies and stuff, they give us a little bit of discount here. I can override the pricing. So, I have this capability here and… My purchase order, by the way, still say 225.50. All I need to enter now is an invoice number, a vendor invoice number. It needs to be unique to make sure that you don’t get double invoicing into the system. I would need to decide my posting date. So, I can go ahead and use today’s date as well. Based on the setup, it will calculate the due date of the invoice. And from my perspective, I’m actually good to go. So, I can go and post this invoice. No. The invoice needs to be approved first. Okay. In this case, maybe let’s just send the invoice for approval first. Since it’s below my $5,000 threshold, it’s releasing the invoice immediately. Okay. It was good that it reminded me. If it was about $5,000 it would still sit here and wait for approval, and then when it’s approved I can go ahead and post this piece. It’s below my threshold. Go ahead and post. Post the invoice. And now I’m done with my posting of the purchase invoice. And same concept here, it is a posted invoice. And I can go ahead and check what happened in the background as well. Go to Action, Navigate. And from an accounting perspective, of course, I’m interested into my G/Ls. So, let’s check what happened here.
So, of course, I have a liability account touched. There was no sales tax involved, so that’s why it’s just two lines here. And it went into my purchase account. And based on the setup, since we have received the product, it was basically moving the inventory from my P&L back into my inventory. That’s just the nature of how Business Central works. So, that’s a little bit off in the beginning that it goes into the purchase account first, and then you take it out of an account again into your inventory. As I said, it’s just the nature of how Business Central works, but this is definitely a correct posting because in the end what you see is you have a liability and you have an inventory account. And this is what you want when you receive a product which is now sitting in your inventory. And that is about it what I want to demo today. So, we kind of had a walkthrough on an end-to-end process from beginning to end, sales, purchase…sorry, order processing.
Again, to recap, salesperson was entering the new quote, then the sales order processor created the sales order, checked if the inventory was available, ordered the products that were missing, indicated for these warehouse people to ship products from the system. In the warehouse, I received the product that were ordered. I shipped the product that I’m supposed to ship. And the accountant finally did close the business and posted the sales invoice and also posted a purchase invoice, and matching the received lines into the invoice, and even adjusting the pricing and everything. I hope that gives you a little bit better understanding on how the processes work in Business Central and you had a couple of quick insights into the product.
Tess: Awesome. Thank you, Rico. So, now we’ll open it up for questions. And you can type in your question on the right-hand side of your screen in that control panel. We’ll give everyone a minute or two to type in any questions that they have. And yeah, thank you, Rico.
Rico: Yep. Thank you. You’re welcome.
Tess: All right. So, we do have one question, that is, “Can it do lot numbers and serial numbers when shipping and receiving?”
Rico: Oh, yeah, absolutely. So, depending on the setup on the item, you can define if a serial number or a lot number is required when you receive a product. And you can even go further. It’s not only on receiving. You can also say you only want to track it when you ship a product. So, it’s just a setup that you can decide what you want to do. And it’s product-specific. So, once you have decided that a product should be a serial number tracked, a lot number tracked, it will be tracked from that point going forward.
Tess: Awesome. There’s another question that it says, “Will the system allow kitting?”
Rico: I assume that kitting meant that you consume a couple of products together, build kit, and then selling a kit out of the system. And this is absolutely possible. So, we call it Assembly in Business Central. And this is a baked in functionality which you can actually get with the smaller license of Business Central. If you want to have, like, a full-blown manufacturing, which is like the big brother of the kitting functionality, this is also possible, but it’s way more comprehensive. So, yes, we have two options in the system to do compounding of products or kitting the products. Yeah. And the Assembly is usually the one that is kind of similar to what other accounting systems do that are not manufacturing-driven.
Tess: Awesome. So, we don’t have any other questions that have come in. But we will be sending out this webinar as a recording afterwards sometime next week. And you can ask any other questions then in response to that email. So, I thank you for your time, Rico.
Rico: Thank you, everyone, for listening today, and I hope we talk to you soon.
Tess: Awesome. Have a great day, everyone.
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