Purchase cycle in D365 FO | Data Flow from PurchTable and PurchLine to Vendor Invoicing and Ledger Posting in Dynamics 365 Finance & Operations (D365 F&O)

This explanation outlines the data flow from the creation of a purchase order (PO) to vendor invoicing and final ledger posting. Key tables, processes, and roles are covered at each stage.

1. Purchase Order Creation

• Purpose: Captures the initial details of the PO such as vendor, products, quantities, and expected prices.
• Key Tables:
  • PurchTable: Contains header-level information about the PO (e.g., vendor, delivery date, PO status).
  • PurchLine: Stores line-level details like item ID, quantity, unit price, and delivery schedule.
• Process:
  • A user creates a PO in D365 F&O, filling in the required details.
  • Data is saved to PurchTable (header) and PurchLine (lines).

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2. Purchase Order Confirmation

• Purpose: Confirms the order with the vendor and locks the order details for further processing.
• Key Tables:
  • PurchTable: Updates the status to "Confirmed."
  • PurchLine: Retains line-item details, with the status reflecting "Confirmed."
• Process:
  • When confirmed, the system creates a snapshot of the order, ensuring no changes are made without cancellation or amendment.

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3. Product Receipt Posting

• Purpose: Acknowledges the receipt of goods or services from the vendor.
• Key Tables:
  • PurchTable: Updates the status to reflect "Received."
  • PurchLine: Captures received quantities against the line items.
  • VendPackingSlipJour: Stores packing slip header details for the receipt.
  • VendPackingSlipTrans: Stores packing slip line details.
• Process:
  • Upon receipt, a packing slip is posted, associating the goods received with the PO.

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4. Vendor Invoice Posting

• Purpose: Records the vendor's invoice for the received goods or services.
• Key Tables:
  • VendInvoiceJour: Stores invoice header details (e.g., invoice number, vendor, invoice date).
  • VendInvoiceTrans: Stores invoice line details corresponding to PO lines.
  • VendSettlement: Tracks settlements between the invoice and payments.
• Process:
  • The system validates the invoice against the PO and receipt (three-way matching).
  • Discrepancies (if any) are flagged for resolution.
  • Invoice is posted, generating liability in the vendor ledger.

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5. General Ledger Posting

• Purpose: Posts financial transactions to the general ledger, reflecting vendor liabilities and expense accruals.
• Key Tables:
  • LedgerJournalTable: Stores journal header information for invoice-related ledger postings.
  • LedgerJournalTrans: Contains journal line details, specifying accounts, amounts, and dimensions.
  • VendTrans: Updates vendor transactions with the invoiced amount.
• Process:
  • Upon invoice posting, the system creates ledger entries:
    • Debit to expense or inventory accounts.
    • Credit to accounts payable (vendor liability).

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6. Payment Processing

• Purpose: Settles the vendor's outstanding invoice.
• Key Tables:
  • VendTransOpen: Tracks open (unpaid) vendor transactions.
  • LedgerJournalTable: Contains payment journal headers.
  • LedgerJournalTrans: Stores payment journal lines.
  • BankTrans: Updates bank transactions for outgoing payments.
• Process:
  • Payment is processed via bank or other methods, reducing the vendor liability.
  • Vendor transactions (VendTrans) and general ledger accounts are updated accordingly.

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7. Reconciliation and Reporting

• Purpose: Ensures all posted entries align with the organizational financial records.
• Key Tables:
  • VendSettlement: Tracks settlements between invoices and payments.
  • GeneralJournalAccountEntry: Contains all detailed accounting entries related to the transactions.
  • VendInvoiceInfoLog: Stores log details for invoice postings.
• Process:
• Reports are generated for audit and reconciliation.
• Any mismatches or errors are corrected through adjustments.

Summary of Key Tables and Their Roles

Table Name	Purpose
PurchTable	Stores PO header information.
PurchLine	Stores PO line details.
VendPackingSlipJour	Tracks packing slip headers for product receipts.
VendPackingSlipTrans	Tracks packing slip lines for product receipts.
VendInvoiceJour	Stores invoice headers.
VendInvoiceTrans	Stores invoice lines.
LedgerJournalTable	Stores journal headers for financial postings.
LedgerJournalTrans	Contains journal line details for ledger accounts.
VendTrans	Tracks vendor ledger transactions.
VendSettlement	Tracks settlements of invoices and payments.
BankTrans	Tracks bank transactions related to payments.
GeneralJournalAccountEntry	Contains detailed accounting entries for all financial transactions.

This structured flow ensures traceability and compliance with financial standards in D365 F&O.