Microsoft Dynamics 365 Business Central helps companies to manage their Warehouse Activity smoothly. Warehouse Module is fully integrated with Finance. Dynamics 365 Business Central provide us below functionality to manage Warehouse Activity.

In this document we will see Basic Warehouse Process:

  1. Location, Zone and Bin
  2. Warehouse Employees
  3. Warehouse Receipt
  4. Warehouse Shipment
  5. Put Away and Pick
  6. Movement
  7. Warehouse Item Journal

Location Master

We can maintain location wise inventory in the business central, D365 BC also provide Zones and Bins features, byb using that we can create Multiple Zone and Bin under the Location master.

Location –> Zones –> Bins

Create new Location and set up Zone & Bin:

Search Location in the Search baar, system will open the location list as shown in the above list.

Click on new button and create location master.

Enter Location Code, Name on the General Tab

Click on Process button and create Zones and Bins

Click on Zones and create Zone list as shown in the below list.

Enter Zone Code, Description and select Bin Type. (before creating Zone you need to create Bin Type, then you will able to select Bin Type in the Zone List.)

After creation of Zone list, we need to create Bin under the Zone.

Select Zone from the list –> Click on Related button –> Zones –> Bins

Enter Code and Description for Bin

In the Same way we need to create Bin code for every Zone.

After creatiNG Bin code for all zones, come back to Location and check all Bins

Click Process –> Bins

Now set up Inventory Posting Setup for Location

Click Location –> Inventory Posting Setup

Select Location and Map related inventory G/L Accounts in the columns as shown below.

Go to the Warehouse Tab on Location Card and enable the below setup.

Require Receive, Require Shipment, Require Put Away, Require Pick & Bin Mandatory.

Go to Bins tab and select Bin Code as shown below.

Receipt Bin Code -> Select RECBIN1

Shipment Bin Code –> Select SHIPMENT

Adjustment Bin Code –> Select ADJUSTMENT

Go to Bin Policies

Enable –> Always Create Pick Line , Pick According to FEFO and Always create Put -Away

Select code in the Put- away Template Code

Warehouse Employee

D365 BC provide us to create Warehouse employees which is use provide warehouse module access to the employees.

Search Warehouse Employees in the search bar, system will open the list page as shown below.

Select User ID and Location from the list and place check mark on Default field.

Warehouse Receipt

We can use Warehouse Receipt document to create receipt against Purchase Order, Transfer Order and Sales Return Order.

Go to Warehouse Module or search Warehouse receipt in the search bar. System will open the warehouse receipt list.

Click on new button and create warehouse receipt.

Select Number series in the No. field.

Select Location Code

Click on Process –> Get Source Documents

System will open the list of Purchase Order/ Transfer Order and Sales Return Order. here system shows the list of documents which is not received yet.

Select document from the list and click on OK, system will generate the Warehouse Receipt line.

System update the Qty. to Receive field with all qty. user can change this field, if he want receive partial qty.

Click on Posting –> Post Receipt

System will post the Warehouse receipt, user can check document in the Posted Warehouse Receipt page.

Put Away

Put -away document is used to allocate inventory binwise. After creating Warehouse receipt, we can allocate Receipt Qty. in the different Bins.

Go to posted warehouse receipt –> Open the warehouse receipt document

Click o Actions –> Create Put-away

Note: User can use this option to create manually put way document. If you have enabled the Setup on location master –> Always Create Put -away, then system will auto create Put-away document for the warehouse receipt, we just need to open the Put- way lines and registered them.

Click on OK

System will create Put-away lines.

Go to Related –> Receipts –>Put-away lines

Click on Card –> Open the Put-away document

In this document, system created two lines one is with REC Zone and another with BLANK Zone

We need to Select Zone and Bin code in the line, then register the document.

Select Zone = RM and Bin = RM 1

Click on Register Pu-away

System will transfer the Inventory from Receipt Bin to Raw Material Bin.

Check registered put0away document

Click on Related –> Receipts –> Registered Put-away lines

Warehouse Shipment

We can use Warehouse Shipment document to create shipment against Sales Order, Transfer Order and Purchase Return Order.

Go to Warehouse Module or search Warehouse Shipment in the search bar. system will open the list page.

Select No. series, Posting Date and Location Code on the Warehouse shipment.

Click on Process –> Get Source Documents

System will open the Sales Order list.

Select the Sales Order from the list then click on OK, system will generate the Warehouse Shipment Lines.

Click on Process –> Create Pick Lines

System will create Pick document.

We use Pick Document to transfer inventory RM / FG Bin to Shipment Bin.

Go to Pick Lines and open the Pick Document

Im this document, system showing two lines, one is with RM1 Bin and another is with SHIPMENT Bin.

After registering this document , system will move inventory RM1 Bin to SHIPMENT Bin.

Click on Process –> Register Pick and Register the document.

Check the Registered Pick Document.

Click on Related –> Shipment -> Registered Pick Lines.

Come back to warehouse shipment and post the document.

Click on Posting –> Post Shipment

Click on Ship

System will post warehouse shipment document, user can check posted document in the Posted Warehouse shipment page.

Movement

We can use Movement worksheet to move inventory one zone to another / one Bin to another Bin.

Search Movement Worksheet in the search bar, select Movement worksheet, system will open the worksheet as shown below.

Click on Process –> Get Bin Contents

Select Location code and Item code in the filter then click on OK

System will generate the Movement worksheet lines

Select To Zone Code and To Bin Code, also User can change the quantity if require.

Click on Process –> Create Movement

Search Warehouse Movement in the search bar

Open and Register the Movement

Warehouse Item Journal

We can use Warehouse item journal to pass positive or negative adjustment entries for inventory.

Search ” Warehouse Item Journal” in the search bar.

Enter Registering date, Document No., Select Item No. Enter Zone Code , Bin Code and Quantity

If you want to pass positive adjustment enter qty. in positive and if you want to pass negative entry then enter qty. with negative sign (-)

Click on Register

System will Register the entry.

Now go to item journal

Click on Actions –> Functions –> Calculate Warehouse Adjustment

Enter Posting Date, Document No. and Item No, then click on OK

System will generate the Item journal Line.

Check all values and post Item Journal