Creating a Purchase Order Workflow in Dynamics 365 Finance & Operations

Introduction 

Microsoft Dynamics 365 Finance & Operations provides a powerful workflow framework that helps organizations automate approval processes and business validations. In this blog, we will walk through the step-by-step process of creating a simple Purchase Order Workflow in D365FO. 

In this example, the workflow is designed to: 

This blog demonstrates a practical workflow implementation using conditional decisions and approval assignments. 

Step 1: Open Procurement and Sourcing Workflows 

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Navigate to the following menu path: 

Procurement and sourcing > Setup > Procurement and sourcing workflows 

This menu contains all workflow configurations related to procurement processes such as: 

Once the form opens, click the New button available in the action pane. 

A workflow selection panel will open on the right side of the screen. 

From the available workflow types, select: 

Purchase order workflow 

This workflow type is used to create approval workflows specifically for Purchase Orders. 

Step 2: Workflow Framework Initialization 

When creating a workflow for the first time in a OneBox environment, the system may install workflow-related components and initialize the workflow editor. 

During this process: 

Once the initialization is completed, the workflow designer screen will open. 

Step 3: Understanding the Workflow Designer 

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The workflow designer is the visual design area used to build workflow logic. 

Initially, the designer contains two default nodes: 

Start → End 

On the left side, the Workflow elements panel is available. This panel contains different workflow components such as: 

These elements can be dragged and dropped into the design area to create business workflows. 

Step 4: Designing the Workflow Structure 

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In this example, we are creating a simple conditional approval workflow. 

The following elements are added into the workflow designer: 

Approval Element 

From the Approvals section, drag and drop: 

Approve purchase order 

This step represents the approval action performed by the assigned approver. 

Conditional Decision 

From the Flow controls section, drag and drop: 

Conditional decision 

The conditional decision is used to evaluate business logic and determine whether approval is required. 

Connecting the Workflow Elements 

The workflow elements are connected in the following sequence: 

This means: 

In this scenario, approval is required only for a specific vendor. 

Step 5: Configuring the Workflow Condition 

The next step is configuring the condition logic. 

Select the Conditional Decision element and open the condition configuration window. 

Assign a meaningful name to the condition: 

Vendor Check 

This condition checks whether the Purchase Order belongs to a particular vendor. 

Adding the Condition 

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Click: 

Add condition 

The system displays available Purchase Order fields. 

From the field list, select: 

Purchase order > Vendor account / Vendor name 

Set the comparison operator and provide the vendor value. 

This type of condition-based approval is commonly used in real-time business scenarios. 

Step 6: Review the Condition Configuration 

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After configuring the condition, the workflow designer visually displays the configured condition flow. 

At this stage: 

This provides a clear visual representation of the approval logic. 

Step 7: Assigning the Approver 

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Next, configure the approval assignment. 

Select the Approve Purchase Order element. 

From the workflow toolbar, open: 

Assignment 

This section determines which user is responsible for approving the Purchase Order. 

Assignment Type 

For this example, the assignment type used is: 

These values are used in: 

Example: 

Subject: Purchase Order Approval Required 
Instructions: Please review and approve the Purchase Order. 

Step 9: Workflow Validation 

Before activating the workflow, validate the design. 

The workflow designer contains an error and warning panel that displays: 

If any validation issues are present, they must be corrected before activation. 

This helps ensure that the workflow is configured properly. 

Step 10: Activate the Workflow 

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Once the workflow validation is successful: 

After activation, the workflow becomes available for business usage. 

Step 11: Creating a Purchase Order 

Navigate to: 

Procurement and sourcing > Purchase orders > All purchase orders 

Create a new Purchase Order and select the vendor configured in the workflow condition. 

Save the Purchase Order. 

Step 12: Submit the Workflow 

After saving the Purchase Order: 

The workflow engine evaluates the configured condition. 

Workflow Result 

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Scenario 1 — Matching Vendor 

If the vendor matches the configured vendor: 

Contoso Chemicals Japan 

the Purchase Order is routed for approval. 

Scenario 2 — Other Vendors 

If the vendor does not match: 

Step 13: Approving the Purchase Order 

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The assigned approver receives the workflow task in: 

Home page > Work items assigned to me 

The approver can: 

Once approved, the Purchase Order can proceed further in the procurement process. 

Conclusion 

In this blog, we created a simple conditional Purchase Order Workflow in Dynamics 365 Finance & Operations using: 

This approach demonstrates how organizations can automate procurement approvals based on business-specific rules. 

The Dynamics 365 Finance and Operations workflow framework is highly flexible and can be extended further using: 

This makes workflows one of the most powerful automation features available in Dynamics 365 Finance & Operations.