<img src="https://secure.leadforensics.com/133892.png" alt="" style="display:none;">

Just in time inventory for distribution can be handled with direct delivery process in Dynamics 365 for Finance and Operations (D365FO). 

Items that are big, bulky or very costly to manage in a warehouse are all great candidates for direct delivery to your customer or project. Once you have made the decision to direct deliver these products, you can setup and manage the process in D365FO. It will insure that you have accurate costing and invoice your customers in a timely fashion. 

You can setup items in your inventory to be direct delivery all the time, direct delivery items to your customer as a cost saving, or increase the time of delivery. To setup the item you need to set the following two fields on the released items.

Navigation: product information management > products > released product

  • Setting the vendor will insure that you direct delivery from the vendor that you want to use.
  • Setting the direct delivery will insure that all the sales will be direct delivered.
  • If you leave the direct delivery turned off, it's optional to direct deliver.

Your sales force won't have to worry about managing the product either. When you add the item to the sales order, the purchase order will be created automatically and the customer service will be given a message.


Navigation: procurement and sourcing > workspaces > purchase order receipt and follow-up

Managing direct delivery form the purchase order receipt and follow up workspace allows you work from a central location to manage all your purchasing tasks not related to your warehouse management system (WMS).


Pro Tip: add a tile to your workspace to know when you have direct delivery orders to be confirmed.

Use the direct delivery link on the right of the workspace to open the direct delivery workspace.

Click on the confirmation tab and confirm you purchase order, then send to the vendor.


Once your vendor has sent you the advance shipping notice you can use the delivery tab to do the receiving of the purchase order.


Click on full product receipt, there's no need to add a packing slip number from the vendor. The system will auto generate a packing slip ID, so you can move this process forward faster and bill your customer.


If you want to record the vendor packing slip or partially receive the purchase order, use the partial product receipt option. In the window that opens record the product receipt, update the qty field if needed and click OK.

Your accounting department or nightly batch process would invoice your customer now because their order will have been shipped. They can review the process by using the shipped but not invoice sales order in the customer invoicing workspace.

Navigation: accounts receivable > workspace > customer invoicing


Now imagine this process automated with electronic data interchange (EDI) functionality. This is just the beginning of a better way to manage your inventory and increase customer satisfaction.

Want to learn more about Microsoft Dynamics 365 tips and tricks? Read about warehouse and inventory status change in Microsoft Dynamics 365



Discuss this post

Recommended posts

Are you a manufacturer that just wants to settle? Alternatively, are you a business owner who wants to take their supply chain management in the manufacturing industry to the next level?
In the food and beverage industry, managing every stage of production, from the storage of raw materials to processing, packaging, storing and shipping the final product, is even more difficult when you factor in variables such as freshness, batch control, and allergen or organic requirements.
Are you new to MRP in Dynamics GP or are you looking to improve how you use it in your business? If your answer is yes, then you are in the right place! I will be presenting on April 24 through GPUG, the Dynamics GP User Group, in one of their upcoming Academy Live classes.
Since the romaine lettuce contamination just before Thanksgiving, the produce industry has been abuzz with discussions of the increasing incidence of supply chain contamination in recent years. In a study released by the United Public Interest Research Group, it was reported that food related recalls are up nearly 10% between 2013 and 2018.  While the article does allow that improvements in the science and increases in testing since implementation of the FSMA as a factor, it also noted that there were significant gaps in the food safety system.  They list four areas where improvements could be made to increase the effectiveness of the food safety system. 
A fly in the ointment As we move beyond the Information Age into the Digital Age, manufacturers are being challenged to envision and deploy new digital technologies to maintain competitiveness, improve performance and enhance relevance with their customers. A major point of resistance to achieving this digital future, is the antiquated and isolated ERP systems that are the backbone of these businesses. If your ERP system doesn’t support changing manufacturing methods, interactivity with the plethora of emerging services on the digital web, or connectivity to the assets and systems being empowered by the Internet of Things (IoT), what is a manufacturer to do? The likely answer is that your ERP system must be replaced before these other key elements of a digital transformation can be pursued. 
right-arrow share search phone phone-filled menu filter envelope envelope-filled close checkmark caret-down arrow-up arrow-right arrow-left arrow-down