Purchasing Overview

The Purchasing module in Microsoft Dynamics 365 Business Central enables businesses to streamline procurement, optimise inventory, and make informed purchasing decisions. Designed for growing organisations, it integrates seamlessly with finance, inventory, and supply chain operations to deliver a unified procurement experience.

Core Functions

• Purchase Order Management
  Create and manage purchase orders with automated workflows, real-time status tracking, and vendor performance insights. Orders can be initiated manually or triggered by inventory thresholds and demand forecasts. 

• Vendor Management
  Maintain detailed vendor records, classify suppliers by performance and attributes, and negotiate pricing and terms with full visibility into historical data.

• Approval Workflows
  Customise approval processes based on value, vendor, or item type. Approvers receive automated notifications, and substitutes can be assigned to avoid delays.

• Goods Receipt and Invoicing
  Record goods receipts, perform quality inspections, and manage returns. Invoices are matched against receipts and purchase orders, with automated data entry and batch processing capabilities.

• Procurement Planning with MRP
  The module integrates with Material Requirements Planning (MRP) to suggest purchases based on sales forecasts, inventory levels, and lead times. This ensures timely replenishment and avoids stockouts. 

• Master Production Scheduling (MPS)
  MPS focuses on top-level demand, using forecasts and confirmed orders to propose supply plans for finished goods. It works in tandem with MRP to ensure raw materials and components are available when needed. 

• Sales Forecast AI
  Business Central leverages AI-powered forecasting to predict future demand using historical data, seasonal trends, and external signals. This enables proactive procurement and reduces reliance on manual guesswork.

Full and Flexible Forecasting Methodologies

Business Central supports a range of forecasting approaches:

• Historical Trend Analysis: Uses past sales data to project future demand.
• Machine Learning Models: AI adapts to changing patterns and anomalies.
• Manual Overrides: Users can adjust forecasts based on market insights or strategic decisions.
• Scenario Planning: Run simulations to test different procurement strategies under varying demand conditions. 

Advantages for New Customers

• Smarter Purchasing Decisions: AI and MRP/MPS tools provide actionable insights, reducing overstocking and missed opportunities.
• Time and Cost Savings: Automation of requisitions, approvals, and vendor tracking cuts down on manual effort and improves compliance. 
• Scalability: Supports multi-site operations, complex vendor networks, and high-volume purchasing environments.
• Real-Time Visibility: Dashboards and Power BI integration offer instant access to procurement KPIs and vendor performance metrics.