Saravanaraju Thirupathy Suppress Automatic PO Creation During Consignment Ownership Change in D365 F&O

In high-volume consignment operations, the current D365 behavior of automatically creating a Purchase Order (PO) for each ownership change journal entry leads to significant operational overhead. For example, our organization processes ~2,000 SKUs daily, resulting in over 4,000 POs per month solely due to ownership changes. This volume creates:

• Excessive transactional load
• Manual reconciliation effort exceeding 1,000 person-hours/month
• Operational cost impact of ~$30,000/month
• Compliance risks due to workaround dependencies

Suggested Enhancement:

Introduce a configurable option to suppress PO creation during ownership change journal posting. This could be implemented as:

• A journal-level toggle (e.g., Create PO: Yes/No)
• A system mode that allows periodic or consolidated PO generation based on vendor/date/SKU rules

Functional Requirements:

• Ownership change posts inventory and ledger updates without triggering PO creation
• Optional batch process to generate consolidated POs referencing source journals
• Maintains inventory valuation and audit trail integrity
• Backward compatibility with existing automated flows

Business Justification:

This enhancement would reduce administrative overhead, improve scalability, and support compliance in consignment-heavy environments. It aligns with real-world operational needs and would be a valuable addition to D365’s flexibility.