Many client have been struggling with the transaction types offered by Microsoft Dynamics NAV and their purpose in a US-based organization. We have compiled this document to assist with the proper navigation and system utilization.
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Sales Order Processing and Accounts Receivable
Sales Quotation: The transaction type will generate a Header and line document which does not affect the inventory module nor the Accounts Receivable balances. These transaction are also referred to as Sales Estimates. You can generate this document for a lead which is tracked in the Contact Database or for an existing customer. Upon customer approval, this document type can be copied into a proper Sales Order or an Sales Invoice.
Sales Blanket Order: A Blanket Order is a record for a long-term commitment by a customer to purchase your products in exchange for better terms or pricing. These commitments can be used for product purchase or production planning procedures. Upon the receipt of an actual Sales order, you can use the Blanket as a template. You can also manually link a Sales Order to a Blanket Sales Order on a line by line basis.
Sales Order: A Regular Sales order can only be created for an existing customer in the customer database. Sales Order can include G/L Accounts, Inventory items and Item charges. A Sales Order will allocate an inventory item for a specific location automatically. In addition, you can use an optional feature in NAV called a RESERVATION which prevents the inventory from being sold to another customer. You can auto-create an inventory Assembly or production order based on a Sales Order. When you post a sales order, the system will create a Sales Shipment and a Sales invoice for all items. Credit Limits will be reviewed and enforced as part of this process. The requested ship dates are used to allocate items during a timeline review of inventory requirements. A Sales Order does NOT impact the General Ledger in any way.
Sales Shipment: This document is generated automatically when you post the shipment of a sales order. You are not able to create this document on your own. The purpose of this document is to track what specific items have been shipped on that specific transaction. You can have multiple Sales Shipments for a single sales order. If you system is configured to track Serial Number and Lot Number (Batch), this document will track the inventory adjustments.
Sales Invoice: This document is generated by the system automatically if it is based on a sales order. However, you can also create a Sales Invoice directly and manually yourself if it is not based on a sales order. An Invoice will recognize a sale in the General Ledger and typically update the Accounts Receivable, Sales Revenue, Cost fo Goods and Inventory accounts for the items listed on the document. A Sales Invoice will also update the AR balance for a given customer.
Sales Return: This document is used to track the pending return of product by a customer and the subsequent adjustments upon the posting procedures. During the planned and pending return of product, the status of OPEN or RELEASED will track the status of the transaction.
Sales Credit Memo: A Sales credit memo is typically used to issue a Currency Credit on the customer’s account. This credit Memo can be used to apply the customer balance in general or it can be applied to an invoice(s).
Purchase Order Processing and Accounts Payable
Purchase Quotation: The transaction type will generate a Header and line document which does not affect the inventory module nor the Accounts Receivable balances. These transaction are also referred to as a RFQ. . Upon customer approval, this document type can be copied into a proper Purchase Order.
Purchase Blanket Order: A Blanket Order is a record for a long-term commitment to a vendor to purchase a product in exchange for better terms or pricing. These commitments can be used for product purchase or production planning procedures. Upon the issuance of an actual Purchase order, you can use the Blanket as a template. You can also manually link a Purchase Order to a Blanket Purchase Order on a line by line basis.
Purchase Order: A Regular Purchase order can only be created for an existing vendor in the vendor database. Purchase Order can include G/L Accounts, Inventory items, Item charges as well as Fixed Assets. A Purchase Order will allocate an inventory item for a specific location automatically. In addition, you can use an optional feature in NAV called a RESERVATION which prevents the inventory from being sold to another customer. When you post a Purchase order, the system will create a Purchase Receipt and a Purchase invoice for all items. The requested ship dates are used to allocate items during a timeline review of inventory requirements. A unposted Purchase Order does NOT impact the General Ledger in any way.
Purchase Receipt: This document is generated automatically when you post the shipment of a sales order. You are not able to create this document on your own. The purpose of this document is to track what specific items have been shipped on that specific transaction. You can have multiple Purchase Receipts for a single sales order. If you system is configured to track Serial Number and Lot Number (Batch), this document will track the inventory adjustments.
Purchase Invoice: This document is generated by the system automatically if it is based on a sales order. However, you can also create a Purchase Invoice directly and manually yourself if it is not based on a purchase order. An Invoice will recognize a sale in the General Ledger and typically update the Accounts Payable and Inventory accounts for the items listed on the document. A Purchase Invoice will also update the AP balance for a given vendor.
Purchase Return: This document is used to track the pending return of product by a vendor and the subsequent adjustments upon the posting procedures. During the planned and pending return of product, the status of OPEN or RELEASED will track the status of the transaction.
Purchase Credit Memo: A Sales credit memo is typically used to issue a Currency Credit on the vendor’s account. This credit Memo can be used to apply the vendor balance in general or it can be applied to an invoice(s).
