Putting Vendors on Hold for Purchase Orders and customers on Hold for Sales Orders in D365 FO

In this article, we will explore the different techniques offered in Dynamics 365 Finance and Operations for placing a customer on hold when processing a sales order and a vendor on hold when processing a purchase order.

Customer On Hold

The customer management functionality offered by Dynamics 365 Finance and Operations enables account receivable managers and customer account managers to impose different types of holds on customer accounts. 

This can include restrictions on specific transactions or placing a hold on the account for all transactions.

Additionally, for operational, regulatory, or credit reasons, it is possible to place an individual sales order on hold rather than placing an entire customer account on hold.

To place a customer on hold for a sales order in D365 Finance and Operations, follow these steps:

Step 1: Go to Accounts Receivable > Customers > All Customers.

Step 2: Click the customer account number to open the customer account you want to place on hold.

Step 3: In the "Credit and Collections" fast tab, select the appropriate hold type required for the customer from the dropdown list for the "Invoicing and Delivery on Hold" field.

Customers have the option to choose from three hold types: "No," "Invoice," and "All."

The hold type "No" indicates that the customer is not currently on hold, whereas the "Invoice" hold type permits the creation of a sales order but restricts access to the packing slip and invoice buttons.

Payments for the customer will still be processed, but upon creating a sales order, a notification will appear to alert that the customer is currently on hold for invoicing.

If the "All" hold type is chosen, then customers will be placed on hold for all transaction types, such as payments, sales orders, sales quotes, and invoices. 

If an attempt is made to create a transaction such as a sales order, an error message will be displayed.

Vendor On Hold

Enabling the "Put Vendor on Hold for Purchase Order" feature is necessary to ensure that new purchase orders are not created for vendors while existing transactions' invoices and payments are still being processed.

Here are the steps to enable the feature that allows you to put a vendor on hold for a purchase order in D365 Finance and Operations:

Step 1: To access Feature Management, go to System Administration, followed by Workspaces, and then select the desired option.

Step 2: Activate the 'Put vendor on Hold for purchase order' feature.

Enabling this feature will prevent the system from creating new purchase orders for vendors with a purchase order on hold status. 

This feature also restricts the vendor only for new purchase orders, while any open invoices or payments to the vendor can still proceed.

Step 3: Go to Procurement and sourcing > Vendors > All vendors.

Navigate to the Vendor tab and click on the On-Hold dropdown menu, then choose the purchase order from the options provided.

In conclusion, Dynamics 365 Finance and Operations offers various ways to put customers and vendors on hold for specific or all transactions.