# Purchase orders for Dynamics 365 Finance

Dynamics 365 Finance has purchase orders built in. Pulsify matches each vendor invoice to the purchase order you raised in Dynamics 365 Finance and shows what is left to bill.

A purchase order is the written order you send a vendor before they deliver, so the bill can be checked against it later.

## What Dynamics 365 Finance does on its own

Purchase orders with change management approval and product receipts.

- Full procurement sits in Supply Chain Management

## What you need in Dynamics 365 Finance

- Procurement and sourcing parameters access
- Supply Chain Management for full procurement

## Setting it up in Dynamics 365 Finance

Where to find it: Procurement and sourcing parameters > Activate change management

1. Turn on Activate change management.
2. Design the purchase order approval workflow.
3. New orders start as Draft and go to In review.
4. Approved orders can be confirmed.
5. To change a confirmed order use Request change, which goes back through approval.

## Good to know in Dynamics 365 Finance

- Change management can apply to all vendors or be set vendor by vendor.
- Purchase requisition workflows are separate from purchase order workflows.
- Full procurement and receiving sit in Supply Chain Management.

## How to do it in Dynamics 365 Finance

### How to raise a purchase order and get it approved in Dynamics 365 Finance

In Dynamics 365 Finance, create a purchase order with the vendor, lines and prices. Submit it for approval and send it to the vendor only after it is approved. Full guide: https://www.pulsify.tech/how-to/raise-a-po-and-get-it-approved-in-dynamics-365-finance/

### How to match a vendor invoice to a purchase order in Dynamics 365 Finance

In Dynamics 365 Finance, open the purchase order, compare each vendor invoice line to the purchase order line on quantity and unit price and query any difference before you approve. Full guide: https://www.pulsify.tech/how-to/match-a-bill-to-a-purchase-order-in-dynamics-365-finance/

### How to handle a partial delivery against a purchase order in Dynamics 365 Finance

In Dynamics 365 Finance, keep the purchase order open, check each vendor invoice against what has been billed so far and close the purchase order only when the last delivery is invoiced. Full guide: https://www.pulsify.tech/how-to/handle-a-partial-delivery-against-a-po-in-dynamics-365-finance/

## What Pulsify adds

1. Raise and approve the purchase order in Dynamics 365 Finance as you do now.
2. Open purchase orders come into Pulsify from Dynamics 365 Finance.
3. When the vendor invoice arrives, Pulsify matches it to the purchase order line by line and flags differences.
4. A panel shows how much of the purchase order has been billed and what is left.

Pulsify connects to Dynamics 365 Finance. We set up the connection for you.

What Pulsify does not do:

- Raising purchase orders in Pulsify is for Xero only. In Dynamics 365 Finance you raise them in Dynamics 365 Finance.

## Common questions

### Does Finance alone give me purchase orders?

Full procurement and receiving sit in Supply Chain Management, which Microsoft lists alongside Finance. Check your licences before planning a PO process on Finance alone.

### Can I stop people changing an approved order?

Yes. With change management on, approved orders can be changed only through Request change, which goes back through approval. It can be set for all vendors or vendor by vendor.

### Should every purchase have a purchase order?

Most teams set a dollar amount or a supplier list. Regular small bills such as power often skip a PO and go through approval instead.

## Sources

- https://learn.microsoft.com/en-us/dynamics365/supply-chain/procurement/purchase-order-approval-confirmation

Source: https://www.pulsify.tech/purchase-orders-for-dynamics-365-finance/ (last checked 2026-10-19)