NIMBUS
SYSTEMS
Beyond Transactions:
Elevate Vendor
Engagement with the D365
Vendor Portal Experience
Leverage Real-Time collaboration to enhance Vendor
Management through a unified portal. Here are seven steps
through which you can achieve that.
December 2023
In today's competitive business landscape, optimizing procurement
processes is crucial for driving efficiency, reducing costs, and gaining a
competitive edge. Dynamics 365 Finance and Operations (D365 F&O)
offers a robust Procure-to-Pay (P2P) solution that streamlines the entire
procurement lifecycle, from vendor onboarding to payment. This
comprehensive guide delves into the key components of the D365 P2P
process, highlighting its transformative impact on vendor management
and overall business operations.
Vendor Collaboration
Portal
The vendor collaboration interface exposes a limited set of information
about purchase orders, invoices, and consignment stock to external
vendor users. From this interface, a vendor can also reply to requests
for quotation (RFQs), accept/reject a purchase order, can perform
vendor invoicing and view and edit basic company information. A
vendor can also work with consignment stock.
Invoice Initiation
Status of payments
Invoice
Attachments
Accept/Reject
PO
Status of PO
PO Attachments
Can bid for
RFQ’s
Status of their
Bids after
submission
Can Negotiate
here before
agreement to
fulfill
Can update their
vendor
information,
bank details,
address etc here
Beyond Transactions: Elevate Vendor Engagement with the D365 Vendor Portal Experience
02
Here is the summary of the steps which are followed in a procurement
process
1. Vendor Onboarding
Process
The D365 P2P process begins with vendor onboarding, a critical step in
establishing strong relationships with suppliers. D365 F&O simplifies
vendor onboarding by providing a centralized platform for creating and
managing vendor records. Key information such as contact details,
payment terms, and tax information can be easily captured and stored,
ensuring accurate vendor data throughout the P2P process.
Once you have the list of your prospective vendors/suppliers, a
designated person can initiate the process of vendor onboarding by
creating a new vendor request within D365.
Upon approval from your management, an email invitation is sent to
the vendor for portal access registration.
Once the vendor signs up, final approval is granted, providing them
with login credentials for the D365 F&O vendor portal.
Authorized vendors can now seamlessly manage their interactions
with your company through the vendor portal
Vendor Onboarding process flow
Beyond Transactions: Elevate Vendor Engagement with the D365 Vendor Portal Experience
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FLOWCHART: Procurement Process Flowchart (Business User Perspective)
2. Purchase Requisition
Once vendor onboarding is complete, the purchase requisition initiates
the procurement process. D365 F&O facilitates the creation of
purchase requisitions, either manually or electronically. These
requisitions outline the goods or services required, quantities, delivery
dates, and other relevant details. Requisitions can be routed to the
appropriate approvers based on predefined rules, ensuring that
procurement decisions align with business objectives. System also
provides capability to club multiple PR into a single Purchase order.
Beyond Transactions: Elevate Vendor Engagement with the D365 Vendor Portal Experience
04
3. Vendor Selection and
RFQ: Finding the Right Fit
In the RFQ and vendor selection process in D365 F&O, businesses
initiate a Request for Quotation (RFQ) to solicit bids from vendors.
Share RFQ with vendors for evaluation based on cost, quality, delivery
payment terms, etc. You can negotiate using initial quotes. Amend
terms in D365. Upon vendor selection, create a Purchase Order
Features that you can utilize in negotiating with your vendors
In an RFQ you can attach documents/images/catalogs etc to
supplement the written specifications which can provide your
vendor with a more comprehensive understanding of your
company’s requirements.
You and the vendor can both put questions for negotiations within
the system itself which are specific to vendors
4. Purchase Order
Creation
With the vendor selected, the next step is to create a purchase order.
D365 F&O streamlines this process by automatically populating
purchase orders with information from approved purchase requisitions
(including Request for Quotation data) and vendor records.
This eliminates manual data entry, reduces errors, and ensures that
purchase orders accurately reflect the agreed-upon terms and
conditions.
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05
5. Goods Receipt and
Quality Control
Upon receiving goods or services, D365 F&O facilitates a streamlined
goods receipt and quality control process. This involves verifying the
quantity and quality of the received items against the purchase order.
Barcode scanning, quantity verification, and quality inspection tools
provided by D365 F&O enhance accuracy and ensure that only
compliant goods are accepted.
6. Vendor Invoice
Processing
The Vendor Invoice Processing through Vendor Collaboration Portal in
D365 F&O is a powerful tool that streamlines the vendor invoice
processing lifecycle, automating many manual tasks and enhancing
efficiency. It allows vendors to submit invoices electronically through a
secure portal along with invoice documents attached, eliminating the
need for paper invoices and manual data entry. Here are its benefits;
Vendor invoice processing cuts labor costs by handling tasks like
data entry and approvals, minimizing errors and delays for cost
reduction.
Allowing vendors to create and upload their invoices directly for
respective purchase orders, reduces the manual entries and also
the risk of data accuracy and inconsistencies.
It allows vendors to also see the status of their invoices like whether
it has been Unposted, Unpaid, Partially paid, or Fully paid.
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7. Workflow Approval
and Payment
Once invoices are processed, they undergo a workflow approval
process. D365 F&O supports a variety of payment methods, including
electronic payments such as ACH and wire transfers. This flexibility
ensures that payments are made in accordance with vendor
preferences and business requirements. Once the payment is done
vendors can their invoice statuses.
Approval Workflows
Dynamics 365 Finance and Operations (D365 F&O) streamlines
procurement through tailored workflows:
Purchase Requisition: (This is Mandatory)
Automated routing based on rules
Multiple approval levels
Real-time tracking
Purchase Order:
Auto-generation from approved requisitions
Customizable templates
Real-time status tracking
Goods Receipt and Quality Control:
Barcode scanning
Quality inspection checklists
Automated reconciliation
Vendor Invoice Processing:
Automated matching and validation
Three-way matching
Electronic payment processing
Efficient, error-reducing, and compliant procurement tailored to your
business needs
Beyond Transactions: Elevate Vendor Engagement with the D365 Vendor Portal Experience
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The Vendor Collaboration portal in Dynamics 365 Finance and
Operations (D365 F&O) offers a powerful solution to streamline
procurement processes, foster collaboration with vendors, and drive
overall business success.
A vendor portal serves as a centralized platform for vendors to interact
with the organization, enabling them to:
Review, accept, and reject requests for quotations (RFQs)
Review, accept, reject, or accept with changes purchase orders
(POs)
Submit invoices electronically
Manage consignment stock
This direct access to information empowers vendors to take ownership
of their tasks, reducing manual interventions and improving
communication. The portal also automates many procurement
processes, eliminating the need for manual data entry and reducing the
risk of errors.
By leveraging vendor portal collaboration, organizations can reap
significant benefits:
Enhanced Efficiency: Streamlined processes and reduced manual
effort lead to faster procurement cycles and improved response
times.
Cost Savings: Reduced errors and automated tasks minimize
costs associated with manual processing, rework, and data
discrepancies.
Improved Data Accuracy: Direct vendor input and automated data
validation ensure accurate information throughout the procurement
process.
Increased Visibility: Real-time dashboards and reporting provide
organizations with insights into vendor performance, enabling datadriven decision-making.
In conclusion, this collaborative tool enhances operational excellence
for sustainable growth.
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