How to implement vendor collaboration management in Dynamics 365?

Microsoft Dynamics 365 for Finance and Operations is a web-based application,
So you can allow vendors work directly in the Microsoft Dynamics 365

What can vendors do?

review, accept and reject the request for quotations (RFQs)
review, accept, reject, accept with the changes purchase orders (POs)
perform vendor invoicing
work with consignment stock

just follow this steps to complete your setup

Setup

1-Setup External Roles

just go to system administration/ security / external roles

click new and select your roles as the below

2-activate vendor collaboration

Navigate to Accounts payable > Vendors > All vendors.

you have 3 options in collaboration activation as the below::

not active:: vendor collaboration functionality not active for this vendor

active (po is not autoconfirmed) :: Purchase orders are not automatically confirmed if the vendor accepts them without changes. The purchasing agent from your company must confirm purchase order manually.

active (po is not confirmed):: Purchase orders are not automatically confirmed if the vendor accepts them without changes.

3-set up primary contact for vendor

add vendor contacts

then click provision vendor user
set up the user email and language, also select

assign user roles and click submit

go to purchase demographics and select the primary contact

3-Setup the user account for the vendor contact/vendor user

You will need to set up an Azure AD account for this for the vendor user and assign the Vendor(external) or Vendor admin(external) or both of these roles to this user. Then link the vendor primary contact to this user (no need for system user role)