Defer the creation direct delivery chains in Microsoft Dynamics 365 Supply Chain Management

In this blog post we will be walking through the "Defer creation of direct delivery chains" parameter and what it does. 

When it is applied: In general, if you have item marked as direct delivery, the direct delivery purchase order will be automatically created during sales order entry.  To prevent direct PO's from being automatically created during sales order entry, "Defer creation of direct delivery chains" parameter can be used. And then the Direct Delivery workbench page can be used to process such sales orders. This workbench has a tab to display sales order lines set to Direct that do not yet have purchase order created.

Walkthrough: 

Activate the Accounts receivable parameter - "Defer creation of direct delivery chains" parameter. 

Set the default vendor on the Release products:

Let's activate this product for the direct delivery:

If the direct delivery toggle on the released product is set to Yes, then Direct Delivery flag on the SO line will default to Yes. But Delivery type will be "Stock".

If the direct delivery toggle on the released product is set to No, then Direct Delivery flag on the SO line will default to No, Delivery type will be "Stock" but you can change Direct delivery flag manually on the SO line.  If you do so, then such items will appear in the Direct delivery processing workbench. 

Let's create a sales order and lines.

When creating the SO line, it will default Direct Delivery to “Yes”, keep the Delivery type as “Stock”, and set the delivery status as deferred To be direct delivered.  As of now, no purchase order is created.

Go to Procurement and sourcing > Purchase orders > Direct delivery processing to .

Select Create direct delivery link. Sales order will disappear from Direct Delivery tab and created direct delivery PO will appear on the Confirmation tab. Sales order lines will be updated to Delivery type = Direct delivery and Direct delivery status = Purchase order released. 

Go to Confirmation tab and confirm the direct delivery PO. Select Confirm purchase order link. 

Direct delivery PO will disappear from Confirmation tab and will appear on the Delivery tab.

Receive the delivery. 

If you select Full product receipt, product receipt will be automatically posted. Direct delivery number number sequence from the Procurement and sourcing parameters will be used for the Product receipt number. 

If you select Partial product receipt, Posting product receipt dialog will be opened. Product receipt number must be entered manually. 

That's it!