Dynamics 365 Project Operations - Enable purchase orders with item requirements

We are announcing the ability to enable purchase orders with item requirements in Dynamics 365 Project Operations. This feature will reach public preview on August 17, 2026. How does this affect me? This feature reduces manual effort and procurement delays by automatically generating purchase orders from item requirements. It improves cost visibility and budget control by ensuring real-time material consumption and cost recognition during product receipt. Activate this feature by turning on the Enable purchase orders and item reservations for stocked items in Project Operations integrated with ERP setting. When you enable this feature, you get the following capabilities:Purchase order creation: Project managers can create purchase orders directly from item requirements. This capability enables procurement of stocked materials that align with project needs. Cost recording at receipt: You can record project costs when you receive the product, instead of waiting for vendor invoicing. This capability improves financial accuracy and timeliness. Master planning integration: You can integrate with Dynamics 365 ERP master planning to autogenerate planned purchases or transfer orders based on project forecasts. What action do I need to take? This message is for awareness, and no action is required. If you would like more information on this feature, please visit Enable purchase orders with item requirements.