Warehouse and picking

The features you need

See what elements of the Microsoft Dynamics 365 Business Central system you can use to improve work in your company.

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Warehouse management with Dynamics 365 Business Central

Definitions of location (warehouses) and how they work 

The ERP system allows you to handle multiple warehouse locations in a single database, providing many additional logistics management features, such as inventory location, location offset, and inventory availability estimation. 

To do this, you must define the location grid in detail (that is, all production facilities, warehouses, distribution centers, or showrooms), the network of links between them, and the operating rules. 

Plan inventory and replenishment policies for your location  

With inventory management, it is possible to design the desired scenario according to which logistics processes will take place in the enterprise. Often, companies, seeking to reduce costs and total inventory, decide to maintain minimum inventory in peripheral units and replenish them from the main warehouse. With the help of the ERP system, it is possible to establish such a inventory plan in individual locations that best meets the needs of the enterprise. 

Define a storage structure 

Each storage must be reflected in logical form in the ERP database. To enable proper operation, the storage should be divided according to the following hierarchical structure, supported by the system: 

  • Zone 
  • Rack 
  • Sector 
  • Shelf 
  • Container 

Create warehouse document templates 

Microsoft Dynamics 365 Business Central supports all documents necessary for the daily work of the warehouse, i.e. inventory receipts, pick-to-order documents, inventory writes, value revaluation, interstock transfer, and inventory. In order to optimize, it is possible to create ready-made templates and automatically generate documents. 

Planning and inventory records 

At any time it is possible to verify the data registered in the system with the facts. You can use the system to generate an inventory report that contains posted inventory values and quantities. Use this document to confirm inventory after it has been physically countinged by signing by the employees responsible for this procedure. 

Inventory transfer routes 

The system allows you to create detailed warehouse transfer routes that contain a plan of all the activities that employees should perform. 

Inventory management

Inventory templates 

For fixed inventory categories, you can create inventory templates to streamline the check-in and receipt process.  

Automatic inventory valuation (FIFO, LIFO, Standard, Average) 

ERP tools for inventory valuation allow you to post item issue based on the selected costing model: 

  • FIFO (first in, first out) – The issued item is posted at the price of the first delivery of this item, available in stock. 
  • LIFO (last in, first out) – the price of the item is the price from the last delivery of this item in stock. 
  • Standard – The prices of all items are checked in detail so the item input price is equal to the starting price. 
  • Average – The price of resources is determined by the average delivery price of the resource at which it wa delivered to the warehouse. 

Inventory turnover records at cost of acquisition 

The ERP system allows the collection of all data related to the logistics process, including inventory costs such as delivery costs, insurance, customs duties, etc. 

Track serial numbers and batch numbers 

The ERP system has an inventory tracking feature based on serial numbers and batch numbers. Full records of completed operations and transactions allow you to locate an item within the warehouse and throughout the supply chain. 

Track expiration dates and warranties 

Asset tracking also allows you to monitor and superintendence expiration dates and warranty periods. 

Define inventory planning and replenishment parameters 

Inventory scheduling controls the inventory status. Compares current and future needs with current inventory. Based on the inventory plan, you can automate the replenishment process. 

Automatically post inventory operations to the general ledger 

The ERP system allows the inventory management module to fully interact with the accounting module, so that all inventory operations can be posted directly to the general ledger. 

Packaging records and packaging tax settlement 

Resource catalogs can also be used to keep records of packaging, and they also allow you to prepare a pack tax return for the tax office based on sales and inventory consumption data with packaging. 

Inventory records

Maintain external receipts and releases 

The ERP system gives you the ability to define all the activities that are part of the process of warehouse acceptance and resource dispensing. Based on the receipt document, the system creates a put-away document that contains information about where exactly the resource should be in the warehouse. Similarly, a picking document is generated from the shipment document (sales order, dizziness, or offset) with instructions on the location of the resources.

Orders to move inventory between locations 

Inventory transfer orders can be created manually (for quick replenishment of unforeseen shortages) or automatically generate from predefined inventory allocation plans between locations. 

Inventory records 

Internal inventory records – all activities within the warehouse are recorded in the system, which creates detailed records of documents such as internal receipt (CI) from the enterprise, internal issue (RW), confirming the spent resources for internal purposes, as well as the history of operations, in particular the history of downloads, put-aways, returns, transfers and additions. The system also creates a record of the inventory documents. 

Picking support

Define assembly components 

In the event that the company offers the delivery of its assortment in different sets, or if the customer has the opportunity to select the elements of the finished product during the order, it will be necessary to carry out the completion process, that is, the combination of the finished product before its release from stock. The ERP system allows you to define assembly components and reserve them for order fulfillment 

Custom picking 

Custom picking reduces storage costs (you don’t have to create a variety of sets and store them in stock separately during production), and gives you more flexibility to meet your needs. 

Assembly for storage 

If the picking process is relatively simple, it is possible to complete the sets in advance and put them away in storage. In this case, the picking process does not require the participation of production processes. 

Check-in of picking orders 

All picking orders are recorded and checked in so that you can track the order fulfillment process, as well as anticipate the number of future picking orders and create picking process plans. 

Automatic valuation of picking orders including picking cost 

The system allows automatic valuation of picking orders taking into account its cost, i.e. the consumption of resources during the process (working time of people and machines). 

Schedule picking orders 

With sales data, production and warehouse data, as well as financial plans, you can optimally plan picking processes to maximize your order fulfillment process. 

Support for high-capacity storage

Define a storage structure 

To prepare the system for storage, you must define a system structure that reflects the actual organization of the storage space. This structure should be hierarchical, allowing for the correct location of resources and consist of the following elements, supported by the system: 

  • Zone 
  • Rack 
  • Sector 
  • Shelf 
  • Container 

Warehouse space management 

With the system it is possible to manage all processes necessary for the proper functioning of the warehouse, including activities requiring very advanced logistics processes, such as cross-docking. Cross-docking functionality is a way to save time and effort by directing inventory from the receipt zone to shipment without placing inventory in stock. Cross-docking requires precise synchronization of all deliveries, both internal and external, so that resources are at the place of transhipment at a specific time; resources are not stored in this model, which reduces storage costs. 

Division of storage into zones 

To efficiently handle warehouse processes, divide the warehouse into functional zones, best reflecting the most important processes to be performed:  

  • reception zone, 
  • cross-docking zone, 
  • storage zone, 
  • completion zone, 
  • releasezone. 

Advanced warehouse operations support 

Warehouse processes can be integrated with barcode readers with ADCS. It is also possible to record inventory locks of items with quality defects. 

Warehouse classes, storage priorities, special equipment 

WMS’s functionality allows you to define warehouse classes that provide the right way to store inventory under different conditions, as well as repackage inventory collected in larger units of measure into smaller ones. 

Mobile storage 

You can handle all inventory operations on the go, such as receipts, shipments, and offsets. This can significantly increase storage efficiency and reduce process duration. 

Optimizing the use of storage space with container replenishment 

To make the most of the storage space, the company needs a tool to automatically detect unused space in containers and calculate the amount needed to completely fill the container. At the same time, such a tool can also suggest where to get supplies and update the status of the container. For this type of needs, Microsoft Dynamics NAV offers a Offset Journal.   

Full inventory support 

At any time it is possible to verify the data registered in the system with the facts. In the case of High Storage Warehouse, it is particularly helpful to use barcodes and labels that significantly shorten and facilitate the inventory process.   

Records of internal warehouse operations (in-store logistics) 

All activities within the warehouse are recorded in the system, which creates detailed records of documents and actions taken, such as internal receipt (CP), internal issue (RW), as well as the history of downloads, put-aways, returns, transfers, and additions. The system also creates inventory records. 

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