The following article is adapted from a portion of one chapter of Mark Brummel's new book Microsoft Dynamics NAV 2013 Application Design. The full chapter of the book discusses how to integrate sales and purchase documents with the built in Warehouse Management and Reservation processes.
Here we will discuss how to use Microsoft Dynamics NAV to manage sales and purchase documents. The primary focus in this article is how the application is designed and where to go to change or enhance the design. Basic knowledge of how to create and process sales and purchase documents in Microsoft Dynamics NAV is a prerequisite.
A trading company purchases and sells items without changing them. The main activities are purchase, storage, packaging, sales and shipping.
Managing the inventory is very important in these companies. Having inventory is crucial for delivering on time and not having to sell "no" to customers.
Wholesale vs. Retail
Traditionally, trading companies are divided into Wholesale and Retail companies. Wholesale companies sell to business and Retail companies sell to consumers. Microsoft Dynamics NAV supports both and from the perspective of design (table and posting structure) there is not much difference.
The biggest difference between Wholesale and Retail for the application is the transaction volume. Where the total turnover of a Wholesale company can be much higher compared to a Retailer, the Retailer often has more, smaller transactions. It can be a challenge from an application design perspective to retain a solution that performs well.
Another issue with high volume transaction systems is traceability of the data. Whenever something goes wrong it is very important to see where this has started and how much data was impacted by the mistake. In low transaction systems it is easier to find this manually.
Sales & Purchasing
Traditionally, salespersons are used to working with paper order forms. They would write down the customer name and address and the items or services required.
In Microsoft Dynamics NAV, the paper document is replaced by a Sales and Purchase document using a header for the general order information and lines to register the items and services.
The posting process breaks down the information in the document into the journals and posts them so the end user does not have to worry about this. The application reuses the same posting routines as we discussed in earlier chapters.
Let's look at how the Documents and Journals tie together by drawing the table and transaction scheme for this.
The first step is creating the document. When we create this Sales Document (Sales Header & Sales Line) nothing is posted. We are only entering the information into the system that can be changed at any time.
When we start the Codeunit Sales-Post (80) the system will create all the Journals for us and post them. When we sell an Item, the system will create an item journal line, when we sell a Resource the system creates a Resource Journal Line etc.
The Invoice Posting buffer is used to create the entries in the General Journal line (this is discussed in Chapter 3, Financial Management -Ed.).
Microsoft Dynamics NAV allows us to create four different kind of posted Sales Documents: Invoices, Shipments, Credit Memos and Return Receipts.
The unique concept of Sales and Purchase in Microsoft Dynamics NAV is the mirroring of the transaction structure. Once we understand how the Sales transactions fit together it is easy to also understand the structure of Purchase.
Let's demonstrate this by comparing the first fields in the Sales Line (37) and Purchase Line (39) table.
The fields in both tables are equally numbered and serve the same process even though they use different terminology, for example field 18, Qty. to Ship (Sale) and Qty. To Receive (Purchase).
Some fields are different because they don't make sense to be in both processes, for example Unit Price (LCY) (field 31) in Purchase and Customer Price Group (field 42) in Sales.
The Purchase process also uses the same posting methodology. The Purchase Header (38) and Purchase Line (39) tables are posted using Codeunit Purch.-Post (90) into the Purchase Receipt, Invoice, Credit Memo and Return Shipment documents.
(Thanks to Mark and Packt Publishing for sharing an excerpt of his new book, which is on sale now.)
Mark Brummel is an all-round Microsoft Dynamics NAV specialist.
Mark is the author of the new book "Microsoft Dynamics NAV 2013 Application Design".