How to Create Vendor Master in D365 BC

Create Vendor Master in D365 BC:

(1) In this blog, we see how to create a Vendor in D365 BC, with a brief explanation of mandatory fields which are used while doing any type of transaction in D365 BC.

(2) Open D365 BC and find “Vendors” in the search bar, as shown.

find vendors in search bar in d365 bc

(3) After that Vendor List page opens. In the below list if you want to edit vendor information, select that vendor and double click or press the edit button, Vendor Card will open and edit the information as per the requirement. But in this blog, we are creating a new Vendor, so for that purpose press the “New” button and fill in the information of the Vendor on the Vendor Card page, as shown.

create new vendor in business central

General Tab:

Vendor Card page General tab in bc d365
Field NameNature and ImportanceField Description
No.MandatoryIt gives a unique identity to Vendors in the system. It can be manually or generated automatically. If you want to generate automatically, then create number series in the No. Series master and same number is assigned in the Purchases & Payables setup field “Vendor No.”
NameMandatoryEnter the Name of the Vendor.
BlockedOptionalSpecifies which transactions with the vendor that cannot be processed.
Balance (LCY)AutogeneratedSpecify the total value of your completed purchases from the vendor in the current fiscal year. It is calculated from amounts excluding VAT on all completed purchase invoices and credit memos
Balance Due (LCY)AutogeneratedSpecify the total value of your unpaid purchases from the vendor in the current fiscal year. It is calculated from amounts excluding VAT on all open purchase invoices and credit memos.
State CodeIt is mandatory if GST calculation is involvedSpecifies the State Code of Vendor.

Address & Contact Tab:

Vendor Card page address and contact tab in bc d365
Field Name Nature and Importance Field Description
AddressInformativeSpecifies the Address of the Vendor.
Address 2InformativeSpecifies the Address of the Vendor.
Country/Region CodeMandatory for GST calculationSpecifies the Country of the Vendor.
CityInformativeSpecifies the City of the Vendor.
Post CodeInformativeSpecifies the Post Code of the Vendor.
E-mailInformativeSpecifies the Email id of the Vendor.
Fax No.InformativeSpecifies the FAX no. of the Vendor.
Home PageInformativeSpecifies the Website of the Vendor.
Primary ContactInformativeSpecifies the Contact person from the Vendor side.
Mobile No.InformativeSpecifies the Contact number of the Vendor.

Invoicing Tab:

Vendor Card page invoicing tab in bussiness central
Field Name Nature and Importance Field Description
VAT Registration No.MandatorySpecifies the VAT Reg. No. of the Vendor. It is mandatory if we calculate VAT, otherwise, it is not mandatory
Pay-to Vendor No.As per the requirementSpecify the number of a different vendor whom you pay for products delivered by the vendor on the vendor card.
Gen. Bus. Posting GroupMandatorySpecify the vendor’s trade type to link transactions made for this vendor with the appropriate general ledger account according to the general posting setup.
VAT Bus. Posting GroupMandatorySpecify the VAT specification of the involved customer or vendor to link transactions made for this record with the appropriate general ledger account according to the VAT posting setup.
Vendor Posting GroupMandatorySpecifies the vendor’s market type to link business transactions made for the vendor with the appropriate account in the general ledger.
Currency CodeAs per the requirementSpecifies the currency code that is inserted by default when you create purchase documents or journal lines for the vendor.

Payments Tab:

Vendor Card page payment tab in bc d365
Field Name Nature and Importance Field Description
Application MethodMandatorySpecifies how to apply payments to entries for this vendor. It has two options: 1. Manual (By default, apply entries manually) & 2. Apply to Oldest (system automatically apply or knock off the entries at the time of posting invoice and payments).
Payment Term CodeAs per the requirementSpecifies a formula that calculates the payment due date, payment discount date, and payment discount amount.
Payment Method CodeAs per the requirementSpecifies how to make payment, such as with bank transfer, cash, or check
Preferred Bank AccountAs per the requirementSpecifies the vendor bank account that will be used by default on payment journal lines for export to a payment bank file. Select Bank Account from the drop-down list.
Party TypeMandatorySpecifies the type of vendor, Company or Person

Tax Information Tab:

Vendor Card page tax information tab in d365 bc
Field Name Nature and Importance Field Description
Assess CodeOptionalIt is used calculating TDS values in documents and journals.
P.A.N No.MandatorySpecifies the Permanent Account No. of Party. And mainly used for calculating TDS and GST values.
P.A.N StatusAs per the requirementSpecifies the PAN Status as PANAPPLIED, PANNOTAVBL, PANINVALID.
P.A.N Reference No.As per the requirementSpecify the PAN Reference No. in case the PAN is not available or applied by the party.
GST Registration No.MandatorySpecifies the vendor GST registration number issued by an authorized body for calculating GST Values.
GST Vendor TypeMandatorySpecify the type of GST registration or the vendor. For example,

Aggregate TurnoverMandatorySpecifies whether the vendors aggregate turnover is more than 20 lacs or less than 20 lacs.

(4) After entering the information, your vendor card is ready for a transaction. Let’s take an overview of the above tabs and their menu (from the below option you can create a Purchase Order, Credit memos, see vendor ageing reports, assign by default dimensions etc.) as shown.

vendor card process tab in dyamics 365
vendor card request approval and new document tab in bc
vendor card page navigate and vendor tab in bc
Vendor card page actions and reports tab in bc

TDS Register Report Development and Format in BC D365
Purchase Received not Invoiced Report in BC D365
Development of Trial Balance Report in BC D365
Create a vendor account– Microsoft Docs

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