Reference

Business Central Glossary

Key terms and concepts for procurement, document processing, and AI automation in Microsoft Dynamics 365 Business Central.

Requisition Worksheet

A planning tool in Business Central used to create purchase suggestions and consolidate demand before issuing purchase orders.

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Purchase Order

A formal document sent to a vendor to order goods or services, with agreed quantities, prices, and delivery terms.

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Purchase Invoice

A document recording a vendor's bill for goods or services received, used for accounts payable processing in Business Central.

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PunchOut Catalog

A supplier's online catalog that connects to a buyer's ERP system via cXML or OCI protocol, allowing direct cart data transfer.

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Item Reference

A cross-reference in Business Central that maps external product codes (vendor SKUs, barcodes) to internal BC item numbers.

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Vendor (Supplier)

A company or person from whom you purchase goods or services, represented as a Vendor Card in Business Central.

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EDI (Electronic Data Interchange)

A standard for exchanging business documents (POs, invoices, shipping notices) between trading partners electronically.

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Document Capture (OCR)

The process of extracting structured data from documents (invoices, receipts) using AI or OCR technology.

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AL Extension (Business Central App)

A custom application built in the AL programming language that extends Business Central functionality.

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OAuth 2.0 Delegated Access

An authentication method where a third-party app acts on behalf of a user, inheriting their permissions without storing credentials.

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Approval Workflow

Business Central's built-in system for routing purchase orders and invoices through configurable approval chains before posting.

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Blanket Order

A framework agreement with a vendor for recurring purchases over time, used to lock in prices and terms for multiple deliveries.

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Chart of Accounts

The structured list of general ledger accounts in Business Central that categorizes all financial transactions.

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Dimensions

Tags applied to BC transactions for multi-dimensional analysis, such as department, project, or cost center.

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General Ledger

The core accounting record in Business Central where all financial transactions are ultimately posted and stored.

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Goods Receipt

The process of recording received items against a purchase order in Business Central, updating inventory and triggering accruals.

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Intercompany Transactions

Transactions between related legal entities in Business Central, automatically creating corresponding documents in the partner company.

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Item Tracking

Business Central's system for assigning and tracking serial numbers, lot numbers, and package numbers on items.

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Payment Terms

Codes defining when and how vendor invoices must be paid, such as Net 30 or 2/10 Net 30, configured on vendor cards.

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Purchase Credit Memo

A document used to reverse or correct a posted purchase invoice, handling returns, price adjustments, or billing errors.

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Purchase Prepayment

An advance payment made to a vendor before goods or services are delivered, tracked against the purchase order in BC.

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Vendor Ledger Entry

The detailed transaction log in BC recording every financial event related to a vendor — invoices, payments, and credit memos.

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Warehouse Receipt

A warehouse-level document in BC for receiving goods, used when advanced warehouse management features are enabled.

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cXML (Commerce XML)

An XML-based protocol for B2B e-commerce transactions, commonly used in traditional PunchOut catalog integrations.

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Three-Way Matching

A verification process that compares the purchase order, goods receipt, and vendor invoice to ensure accuracy before payment.

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