Creating a Purchase Agreement in D365: A Step-by-Step Guide

Microsoft Dynamics 365 (D365) is a powerful cloud-based solution that provides businesses with a wide range of tools for managing their operations, including procurement processes. One of the most important procurement documents that businesses need to create is a Purchase Agreement. In this article, we will guide you through the steps of creating a Purchase Agreement in D365.

Step 1: Create a New Purchase Agreement

To create a new Purchase Agreement, go to the Procurement and Sourcing module in D365 and select Purchase Agreements. From there, click on the New button to start creating a new Purchase Agreement.

Step 2: Enter Purchase Agreement Details

You will be prompted to enter the details of the Purchase Agreement, such as the Agreement Name, Agreement Type, and Vendor. You can also set the Agreement Expiration Date, Agreement Quantity, and other terms and conditions as required. Make sure you fill in all the required fields before proceeding.

Step 3: Add Lines

Next, you will need to add the Purchase Agreement lines, which are the items or services that the vendor will provide. You can add lines manually or import them from an Excel sheet. To add lines manually, click on the Add Line button and fill in the required details, such as Item Number, Quantity, Price, and Delivery Date.

Step 4: Set Up Pricing and Discounts

You can set up pricing and discounts for the Purchase Agreement lines based on the vendor’s pricing and discount agreements. To do this, click on the Price and Discount button and select the pricing and discount agreements that apply to the Purchase Agreement lines.

Step 5: Submit for Approval

Once you have entered all the required details and set up the pricing and discounts, you can submit the Purchase Agreement for approval. To do this, click on the Submit button. The Purchase Agreement will then go through the approval workflow, where it will be reviewed and approved by the appropriate parties.

Step 6: Activate the Purchase Agreement

After the Purchase Agreement has been approved, you can activate it by clicking on the Activate button. This will create a Purchase Order based on the Purchase Agreement lines, which you can then send to the vendor for fulfillment.

Conclusion

Creating a Purchase Agreement in D365 is a straightforward process that can save businesses time and effort in managing their procurement processes. By following the steps outlined above, you can create a Purchase Agreement in D365 that meets your business’s specific needs and requirements. Remember to review and update your Purchase Agreements regularly to ensure that they remain relevant and effective.