With Dynamics 365 Finance version 10.0.48, the “Vendor ship-from address support on invoices” feature is introduced in Accounts payable. This enhancement enables organizations to record the specific vendor establishment from which goods or services were actually supplied, directly on the vendor invoice. The Ship-from address can vary by transaction, is used during invoice processing and posting, and is permanently stored on the posted invoice, ensuring that the original source information remains unchanged after posting.

What is the purpose of this feature?

A vendor may operate multiple branches, manufacturing plants, warehouses, or distribution centers. Therefore, the vendor's primary address or headquarters does not always represent the location that was actually involved in a specific transaction. The new Ship-from address feature closes this information gap by identifying the vendor establishment that supplied the goods or services associated with a particular invoice.

It is important to distinguish the “Vendor ship-from address” from the receiving location within your own organization. The Ship-from address does not describe where goods are delivered to the customer or legal entity. Instead, it identifies the origin of the shipment on the vendor side. Furthermore, the Ship-from address is not necessarily the same as the vendor’s invoice address. For example, an invoice may be issued by the vendor's headquarters while the goods are shipped from a regional warehouse or manufacturing facility.

System Requirements

To activate and use the functionality described in this article, the following prerequisites must be met:

• Microsoft Dynamics 365 Finance version 10.0.48 or later (application release version 10.0.2645 or higher).
• The “Vendor ship-from address support on invoices” feature must be enabled in the Feature management workspace.
• If the Ship-from address should be mandatory before invoice posting, configure the vendor-specific parameter “Require ship from on vendor invoice”.

• To support the determination, validation, and immutable storage of mandatory registration identifiers at the vendor establishment level, this feature can be used together with feature “Establishment and registration ID governance on invoices”.

   

Vendor Configuration

After the feature is enabled, the “Require ship from on vendor invoice” parameter becomes available on the vendor master record. This parameter allows organizations to enforce Ship-from address requirements selectively on a per-vendor basis. Such flexibility is important because not all vendors are subject to the same regulatory, tax, or operational requirements.

When this parameter is enabled for a vendor, a valid Ship-from address must be specified on the vendor invoice before posting can occur. If the information is missing, the system prevents the invoice from being posted. Once the invoice has been successfully posted, the stored Ship-from address becomes read-only and cannot be modified, providing a reliable audit trail of the vendor establishment associated with the transaction at the time of posting.

Navigation: Accounts payable > Vendors > All vendors

How Purchase Orders, Vendor Invoices, and Ship-from Addresses Work Together

The process typically begins with a Purchase order, where information about the vendor location responsible for fulfilling the order can already be captured within the procurement process.

When a vendor invoice is created from a Purchase order, the Ship-from address can be automatically proposed from the Purchase order or from other available document context. As a result, the vendor establishment relevant to the transaction may already be pre-populated during invoice entry, reducing manual effort and improving data consistency.

Before a vendor invoice is posted, Dynamics 365 Finance validates the specified Ship-from Address. If the Require ship from on vendor invoice parameter is enabled for the vendor, a valid Ship-from Address must be provided before the invoice can be posted. If this information is missing, the system prevents the invoice from being posted. 

After the invoice has been successfully posted, the Ship-from Address is immutably stored on the posted vendor invoice. This ensures long-term traceability of the vendor establishment from which the goods or services were supplied.

The feature improves auditability, supports regulatory compliance requirements, and enables the accurate determination and storage of establishment-specific registration information when used together with the Establishment and registration ID governance on invoices feature.

Additional Information:
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