How to Use the Supply Chain Module in Business Central to Optimize Inventory Management

Inventory management can be a daunting task, often plagued by challenges such as overstocking, stockouts, and inefficient procurement processes. These pain points can lead to increased costs, lost sales, and strained vendor relationships. Additionally, limited visibility into the supply chain, delayed payments, and complex return processes further complicate the situation. However, with the right tools and strategies, these issues can be effectively managed. 

In this edition, we will show you how you can use Microsoft Dynamics 365 Business Central’s Supply Chain Module to help you optimize your inventory management processes. We’ll explore: 

1. How to Manage the Purchase-to-Pay Process 
2. How to Manage Purchase to Pay with MRP 

How to Manage the Purchase-to-Pay Process 

Manage and Analyze Open Accounts Payable  

One of the primary reports to use to manage accounts payable is the Aged Accounts Payable. Print the report from the standard dialog box to look at all the accounts due and analyze when they should be paid.  

Process Credit Memos  

If there is an open credit memo on the account, apply it to the outstanding invoices. For this particular account, they have a $1,500 credit memo.  

Apply it to the column, “Applie-to ID”. Select the invoice in the column then select “Set Applies-to ID”  to post the credit memo to a previous invoice in the system.  

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Review the Cash Flow Forecast  

Review the cash flow forecast card and check the available cash and see what’s expected to come, see a full list of receivables, and current funds. 

Create a Payment Check  

To create a payment check from the payment journal, it needs to get approved by your team. There are several ways to get it approved, but in this scenario, the quickest way is to share it directly using Teams. This will allow you to send them a quick note in Teams with a link to your payment journal.  

⏯️ Click here for the full demo and to learn how to schedule vendor invoices for payments and run an approval process. 

How to Manage Purchase to Pay with MRP 

This can be used in a manufacturing or distribution environment. 

How to run the MRP Requisition Process 

Begin by opening a blank planning worksheet. Select “Calculate Regenerative Planning” to indicate the starting and ending parameters. This MRP process will look at the inventory, requirements and give you the results.  

When the it shares the results, select the item you want to carry out the action. In this scenario, Alicia of the operations department, wants to order the new business product to meet her business’s safety level. She will mark the item she wants to carry out the action message.  

How to create a Purchase Order with MRP 

Open the new purchase order from the newly created MRP process and enter the inventory location. To look at cost for the item, select the information icon top right corner to see more information for the item. This card will also show whether the item is a LOT item.  

Select “Request Approval” then “Send Approval Request” 

⏯️ Click here for a full demo on how to receive the purchase order, enter a vendor invoice, perform quality control, and create a vendor return.  

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