380654 - purchasing-how-record-purchases has poor ratings (#1695)

Create a new section and move the content

Author: jill-kotel-andersson

business-central/purchasing-how-record-purchases.md

@@ -9,7 +9,7 @@ ms.devlang: na
 ms.tgt_pltfrm: na
 ms.workload: na
 ms.search.keywords: procurement
-ms.date: 04/01/2021
+ms.date: 09/07/2021
 ms.author: edupont
 
 ---
@@ -21,26 +21,11 @@ You create a purchase invoice or purchase order to record the cost of purchases
 
 In addition to buying physical items (**Inventory** item type), which affect inventory valuation, you can purchase services represented by time units. You can do this either with the **Service** item type or with the **Resource** line type.
 
-> [!NOTE]  
-> You must use purchase orders if your purchasing process requires that you record partial receipts of an order quantity, for example, because the full quantity was not available at the vendor. If you sell items by delivering directly from your vendor to your customer, as a drop shipment, then you must also use purchase orders. For more information, see [Make Drop Shipments](sales-how-drop-shipment.md). In all other aspects, purchase orders work the same way as purchase invoices. The following procedure is based on a purchase invoice. The steps are similar for a purchase order.
-
 When you receive the inventory items or when the purchased service is completed, you post the purchase invoice or order to update inventory and financial records and to activate payment to the vendor according to the payment terms. For more information, see [Posting Purchases](ui-post-purchases.md) and [Making Payments](payables-make-payments.md).
 
 > [!CAUTION]  
 > Do not post a purchase invoice for physical items until you receive the items and know the final cost of the purchase, including any additional charges. Otherwise, your inventory value and profit figures may be skewed.
 
-The item card can be of type **Inventory**, **Service**, and **Non-Inventory** to specify if the item is a physical inventory unit, a labor time unit, or a physical unit that is not kept on inventory. For more information, see [Register New Items](inventory-how-register-new-items.md). The purchase invoice process is the same for all three item types.
-
-> [!NOTE]
-> With the **Resource** purchase line type, you can also purchase external resources, for example, to invoice a vendor for work delivered. For more information, see [Set Up Resources](projects-how-setup-resources.md).
->
-> To use a purchased resource, you may need to set the resource's capacity and manually assign it to a job. Purchasing a resource will create a resource ledger entry, however, resource ledger entries are not tracked for quantity and value as, for example, items are. If quantity and value tracking is required, then consider using other line item types.
-
-You can fill vendor fields on the purchase invoice in two ways depending on whether the vendor is already registered.
-<br><br>  
-
-> [!Video https://www.microsoft.com/videoplayer/embed/RE4b3tt?rel=0]
-
 ### To create a purchase invoice
 
 The following describes how to create a purchase invoice. The steps are similar for a purchase order. The main difference is that purchase orders have additional fields and actions for physical handling of items.
@@ -52,12 +37,9 @@ The following describes how to create a purchase invoice. The steps are similar
 
     1. In the **Vendor** field, enter the name of the new vendor.
     2. In the dialog box about registering the new vendor, choose the **Yes** button.
-    3. On the **Select a template for a new vendor** page, choose a template to base the new vendor card on, and then choose the **OK** button.
-    4. A new vendor card opens, prefilled with the information on the selected vendor template. The **Name** field is prefilled with the new vendor's name that you entered on the purchase invoice.
-    5. Proceed to fill in the remaining fields on the vendor card. For more information, see [Register New Vendors](purchasing-how-register-new-vendors.md).  
-    6. When you have completed the vendor card, choose the **OK** button to return to the **Purchase Invoice** page.
+    3. For more on how to fill in the vendor card, see [Register New Vendors](purchasing-how-register-new-vendors.md).  
+    4. When you have completed the vendor card, choose the **OK** button to return to the **Purchase Invoice** page.
 
-    Several fields on the **Purchase Invoice** page are filled with information that you specified on the new vendor card.
 3. Fill in the remaining fields on the **Purchase Invoice** page as necessary. [!INCLUDE[tooltip-inline-tip](includes/tooltip-inline-tip_md.md)]
 
     You are now ready to fill in the purchase invoice lines with items or resources that you have purchased from the vendor.
@@ -67,20 +49,12 @@ The following describes how to create a purchase invoice. The steps are similar
 4. On the **Lines** FastTab, in the **Item No.** field, enter the number of an inventory item or service.
 5. In the **Quantity** field, enter the number of items to be purchased.
 
-    > [!NOTE]  
-    > For items of type **Service** and for lines of type **Resource**, the quantity is a time unit, such as hours, as indicated in the **Unit of Measure Code** field on the line.
-
     The **Line Amount** field is updated to show the value in the **Direct Unit Cost** field multiplied by the value in the **Quantity** field.
 
     The price and line amount are shown with or without sales tax depending on what you selected in the **Prices Including Tax** field on the vendor card.
 
     The totals fields under the lines are automatically updated as you create or modify lines to display the amounts that will be posted to the ledgers.
 
-    > [!NOTE]
-    > In rare cases, the posted amounts may deviate from what is displayed in the totals fields. This is typically due to rounding calculations in relation to VAT or sales tax.
-    >
-    > To check the amounts that will actually be posted, you can use the **Statistics** page, which takes into account the rounding calculations. Also, if you choose the **Release** action, the totals fields will be updated to include rounding calculations.
-
 6. In the **Invoice Discount Amount** field, enter an amount that should be deducted from the value shown in the **Total Incl. Tax** field at the bottom of the invoice.
 
     > [!NOTE]  
@@ -89,6 +63,28 @@ The following describes how to create a purchase invoice. The steps are similar
 
 The purchase is now reflected in inventory, resource ledgers, and financial records, and the vendor payment is activated. The purchase invoice is removed from the list of purchase invoices and replaced with a new document in the list of posted purchase invoices.  
 
+> [!NOTE]
+> In rare cases, the posted amounts may deviate from what is displayed in the totals fields. This is typically due to rounding calculations in relation to VAT or sales tax.
+>
+> To check the amounts that will actually be posted, you can use the **Statistics** page, which takes into account the rounding calculations. Also, if you choose the **Release** action, the totals fields will be updated to include rounding calculations.
+
+## When to use purchase orders
+
+You must use purchase orders if your purchasing process requires that you record partial receipts of an order quantity, for example, because the full quantity was not available at the vendor. If you sell items by delivering directly from your vendor to your customer, as a drop shipment, then you must also use purchase orders. For more information, see [Make Drop Shipments](sales-how-drop-shipment.md). In all other aspects, purchase orders work the same way as purchase invoices. The following procedure is based on a purchase invoice. The steps are similar for a purchase order.
+
+<br><br>
+
+> [!Video https://www.microsoft.com/videoplayer/embed/RE4b3tt?rel=0]
+
+## Selling non-inventory items
+
+The items on a purchase invoice can be of type **Inventory**, **Service**, **Resource** and **Non-Inventory** to specify if the item is a physical inventory unit, a labor time unit, or a physical unit that is not kept on inventory. For more information, see [Register New Items](inventory-how-register-new-items.md). The purchase invoice process is the same for all three item types.
+
+> [!NOTE]
+> With the **Resource** purchase line type, you can also purchase external resources, for example, to invoice a vendor for work delivered. For more information, see [Set Up Resources](projects-how-setup-resources.md).
+>
+> To use a purchased resource, you may need to set the resource's capacity and manually assign it to a job. Purchasing a resource will create a resource ledger entry, however, resource ledger entries are not tracked for quantity and value as, for example, items are. If quantity and value tracking is required, then consider using other line item types.
+
 ## Posted invoices
 
 [!INCLUDE [posted-invoices](includes/posted-invoices.md)]