Functional Understanding

Procure to Pay (Part 2)

In Part 1, we have created and confirmed the Purchase Order. Today we will create the registration and Packing slip.


Products that are received in a warehouse might go through quality inspection before they are put away into inventory. Either quality orders or quarantine orders can be used to perform quality inspection. If quality orders are used, you can configure the process to temporarily block products through a reservation while they are inspected. If quarantine orders are used, products are moved to another warehouse for inspection. This warehouse is known as the quarantine warehouse. In both quality inspection processes, some of the goods might be scrapped, either because they don’t conform to the quality expectations or because the quality inspection involves destructive testing of a sample of the product.


Registration10QtySelect the Ordered status Line and click on Add button. Enter Location and the Qty you want to register , I have registered 10 Qty .By doing that i am insuring that I have registered my qty to partially receive.

We can do multiple registrations here on different Warehouse, locations and sites.System will reserve the qty for entered location.

On Hand Inventory:

We have a new guest now in our On-Hand transaction form with the status as Registered.


Financial Impact:

Till now there will be no financial impact in the system.

Packing Slip (GRN):

Product receipt action on the Purchase orders page is used to mark products as Received on the PO. The Posting product receipt page has various options for the quantity that is accounted as received. For example, you can set the Quantity field to Ordered quantity or Receive now quantity. Alternatively, if a warehouse arrival process has been used, you will often set this field to Registered quantity. You can modify the quantities on each order line that will be marked as Received, to account for any discrepancies, such as under-delivery and over-delivery. During product receipt, you must specify a product receipt identifier, which is typically a reference to the packing slip from the supplier. This identifier is required for accounting, because it enables checks or audits of supplier packing slips against what has been received, and the accounted inventory or expense.

Product Receipt can be accessible from the purchase order header area. Click ReceiveProduct Receipt. The Product Receipt form opens.



In product receipt form we have multiple options, In our case we have registered 100 qty to receive partially, So to make the GRN of that partially registered qty i am selecting “Registered Quantity”


Product receipt number on line is mandatory, On selection of Registered Quantity from the option, our registered line is appearing with the registered qty, Enter site, warehouse and Location. Click Ok to create the Packing Slip


This will create Packing slip Journal with 10 Qty.


On Hand Inventory:

On partial receiving of product, On hand status is changed from Registration to Received and 90 yet to received.


Financial Impact:

This is the first time that GRN will leave any financial impact on Dynamics. following entry will be created by system. Product receipt Type account will be Debit and Purchase, accrual type will be Credit.


You can Setup these accounts in Item  -> Item Group




If Accounting distribution is missing on line which is of item type, either item Group is missing on Item or Account is missing on Item Group

Accounting Distribution on Line is defaulting from Item -> Item Group -> Purchase order -> Purchase expenditure un-invoiced.




We have created Registration and GRN in today’s Post with their Inventory and financial Impact. In my Last post i Will cover the Invoice and Payment Part of the process.






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