In Microsoft Dynamics for Finance and Operations, Vendor Invoices are adaptable for use with both PO and non-PO invoices. Rather than use AP Journals for non-PO invoices, it can be handy to use the same user interface (UI) for Vendor invoices as is commonly used with PO Vendor invoices. With Vendor invoices and workflow, you can approve non-PO invoices one-at-a-time rather than need to approve “all or nothing” as with an AP journal. Changing the GL ledger accounts on the account distribution can often be done directly on the PO line or Vendor invoice line. For more information, click here to read the related blog post.
Vendor Invoices in D365 Finance and Operations – Adaptable for both PO and non-PO Invoices
In Microsoft Dynamics for Finance and Operations, Vendor Invoices are adaptable for use with both PO and non-PO invoices. Rather than use AP Journals for non-PO invoices, it can be handy to use the same user interface (UI) for Vendor invoices as is commonly used with PO Vendor invoices. With Vendor invoices and workflow, you can approve non-PO invoices one-at-a-time rather than need to approve “all or nothing” as with an AP journal. Changing the GL ledger accounts on the account distribution can often be done directly on the PO line or Vendor invoice line.
Using Vendor Invoices with Purchase Order Invoices is the most common use case for Vendor invoices. Using Vendor Invoices with Non-PO invoices is less common but can be done. When using Vendor Invoices for Non-PO invoices, the use of non-stock service items and/or Procurement Categories is often done. The default GL account distribution is then managed using the “Purchasing Posting Profile” found at: Inventory > Posting > Posting > Purchase order [tab] > Purchase expenditure for expense [radio button]. Using either Item Groups or Procurement Categories, you can configure the default GL distribution accounts.
In using Vendor Invoice entry for both PO and non-PO Invoices, the GL account distribution can often be changed for expense charges and for all other PO and Vendor invoice situations. The behaviors for changing GL account distribution on Vendor invoices run parallel to those same behaviors on Purchase orders. Some lines may be editable while others are not. It depends on what’s on each line.
The exceptions where GL Distribution cannot be changed include:
Line items for stocked Inventory Items
When PO is flagged on Line Details > Fixed Assets > New fixed asset? With a "Yes"
When the line item has Project Charges and the Project charges have a Line property designated for “Capitalize Cost”
Inventory items (Stocked) are those who have an Item Model Group with a checkbox indicating that the item is “Stocked”
PO’s flagged with “New fixed asset?” value of “Yes” look like this:
Project Cost lines with Line Properties designated for “Capitalize Cost” have the toggle for “Capitalize cost” set to “Yes” on the configuration screen for Project Line Properties.
For changing GL account distributions, use the Line level of the Purchase order (or Vendor Invoice). Go under the Financials tab and select Accounting > Distribute amounts.
The cursor in the screenshot below shows that the GL distribution / Ledger account can be edited.
Being able to use the same data entry screens for both PO and non-PO vendor invoices has advantages. Users can enjoy a single user interface. The same workflow design can be used for both PO and non-PO invoices and can be used to approve invoices individually.
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