Today I will spot Buy to Sell functionality where linking a Sales Order to a Purchase Order. This is an excellent functionality offered by MS Dynamics AX.
The common business scenario is used in trading and distribution business domains, where buying finished goods then sell it to customers; we have two alternative business cases for Buy to Sell. The first case is the company does not keep any inventory stock and deliver it directly to the end customer; the second case is the company keeping inventory stock then delivers it to the end customer.
MS Dynamics AX 2012 covers the both cases by creating a referenced Purchase Order based on a Sales Order whether it is Direct Delivery when receiving the PO goods the Sales Order is delivered automatically or create a Purchase Order then received in the warehouse, and delivered to the customer later on.
I will walk through this function by creating a sales order as a first step, then Create a Direct Delivery/ Purchase Order
MS Dynamics AX 2012 will create a Purchase order with reference to the Sales Order
MS Dynamics AX 2012 track on hand inventory for the item as the following quantity on order, and quantity physically reserved
Sales Order refence with the Purchase Order
After confirming the PO, receive it normally. Then the sales order is automatically delivered (Physically updated)
The cost of goods sold is marked to the specific PO in case of it is direct delivery “I have covered marking functionality in a previous post MS Dynamics Ax Marking Function”, if it is stored in the warehouse takes the applied item cost in the inventory model group (weight average, FIFO, LIFO,..)
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