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Writer's pictureBenito Ramirez

Dynamics 365 Business Central Training: Purchase Invoices

Updated: Dec 3, 2024

Dynamics 365 Business Central is an integral tool for managing business operations, offering robust functionalities for finance, sales, service, and operations. One crucial aspect of financial management in Business Central is entering purchase invoices. This Dynamics 365 Business Central training post will provide a comprehensive guide on how to enter a purchase invoice, including a detailed section on how to enter a purchase invoice from a journal. 


Step-by-Step Guide to Enter a Purchase Invoice 


1. Navigate to the Purchase Invoices Page 

To begin, navigate to the purchase invoices section. You can do this by selecting the “Search” icon in the top-right corner of the screen, typing "Purchase Invoices," and selecting the relevant link from the search results:

Searching for purchase invoices

Alternatively, you can find the “Purchase Invoices” option directly in the “Purchasing” menu within the “Departments” area. 


2. Create a New Purchase Invoice 

Once on the Purchase Invoices page, select “+ New” to create a new purchase invoice. This will open a blank purchase invoice form where you can start entering the necessary information. 

Screenshot of the ribbon on the purchase invoices page

3. Fill in General Information 

On the purchase invoice form, you need to fill in the general information about the invoice: 

  • Vendor Name: Select the vendor from whom you have received the invoice. This can be done by typing the vendor's name or using the lookup function. 

  • Vendor Invoice Number: Enter the invoice number provided by the vendor. 

  • Invoice Date: Enter the date on which the invoice was issued. 

  • Posting Date: This is the date when the transaction will be recorded in the general ledger. It is usually the same as the invoice date, but it can be modified if necessary. 

    Screenshot of the general FastTab of a purchase invoice

4. Enter Purchase Lines 

The next step is to enter the detailed lines of the purchase invoice: 

  • Type: Use the “Type” field to select whether the line item is an inventory item, a resource, or a G/L account. 

  • Quantity: Enter the quantity of items or services purchased. 

  • Description: Provide a description of the item or service if not auto-filled. 

  • Unit Price: Enter the unit price of the item or service. 

  • Amount: The total amount will be calculated automatically based on the quantity and unit price. 

  • Dimensions: If your organization uses dimensions for tracking purposes, ensure they are entered for each line item.

    Screenshot of the lines FastTab of a purchase invoice

5. Review and Post the Purchase Invoice 

After entering all the necessary information, review the purchase invoice to ensure all details are accurate. Once satisfied, select “Post” to post the purchase invoice. The system will generate an entry in the general ledger, and the purchase invoice will be marked as posted. 


How to Enter a Purchase Invoice from a Journal 

Entering purchase invoices directly from a journal is another streamlined method in Business Central. Here’s how to do it: 


1. Navigate to the General Journals 

Go to the “Search” icon, type "General Journals," and select the appropriate link. This will take you to the General Journals page, where you can create entries for various accounting activities. 


2. Select or Create a Journal Batch 

If you have existing journal batches, select one that is suitable for purchase invoices. If not, create a new batch by selecting “New” and defining the necessary settings for the batch:

Screenshot of the General Journal
General Journal Batches

3. Fill in the Journal Lines 

Within the selected journal batch, start entering the details of the purchase invoice: 

  • Date: Enter the date of the invoice. 

  • Document Type: Select “Invoice” from the dropdown list. 

  • Document Number: Enter the vendor's invoice number. 

  • Account Type: Select “Vendor” to indicate that this is a purchase transaction. 

  • Account Number: Select the vendor’s account number from the lookup list. 

  • Description: Provide a description for the transaction. 

  • Amount: Enter the total amount of the invoice. 

  • Bal. Account Type: Select "G/L Account."

  • Bal. Account Number: Applicable expense account.

    Invoice line prior to posting

     

4. Balance the Journal 

Ensure that the total debits and credits in the journal are balanced. This is crucial for the accuracy of your financial records.


5. Post the Journal 

Once everything is entered and balanced, review the journal entries for accuracy. Then, select “Post” to finalize the entries. This will create the necessary ledger entries and mark the purchase invoice as posted. 


Conclusion 

Entering purchase invoices in Dynamics 365 Business Central is a critical task for maintaining accurate financial records. By following the detailed steps outlined above, you can ensure that purchase invoices are entered correctly, whether through the purchase invoices page or directly from a journal. Remember to review all entries for accuracy before posting, as this will help maintain the integrity of your financial data and support effective business decision-making. 

 

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