Dynamic warehouse

MS Dynamics 365 Business Central warehouse programme

The implementation of the MS Dynamics 365 Business Central warehouse system not only enables basic inventory recording, but also facilitates the monitoring, analysis and optimisation of the entire supply chain. It gives employees access to a wide range of tools that improve the functioning of the company.

Hello! I will show you how MS Dynamics 365 Business Central organizes the entire warehouse management.

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Warehouse with MS Dynamics 365 Business Central is the heart of the company

As a company grows, warehouse operations become more complex. This is where the most important processes – sales, production and financial – intersect. Warehousemen, in addition to their basic record-keeping tasks, have to provide a multitude of information affecting the company’s operations. The times when the Warehouse was simply a place to store stock are long gone.

Efficient warehouse management and shortening of processes by up to 30%

Business Central’s ERP system makes the Warehouse a true operational centre to drive growth and generate profits. Some tasks are automated and employees can handle even the most complex supply chain logistics processes.

After implementing the ERP system, my warehouse is able to meet the challenges of modern logistics. The warehouse programme allows:

  • just-in-time stock management,
  • cross docking,
  • operation of high-bay warehouses,
  • automatic selection of fast-moving goods,
  • optimal use of storage space and reduced picking times,
  • automatization of the transfer of goods between locations,
  • mobile warehouse operation in mode,
  • generation of SAFT files,
  • printer connection and barcode handling.

In the warehouse area, the quality of palletizing has increased, and the quality control time has been shortened while maintaining high standards. Reporting and compiling information just got easier. Finally, we dealt with the circulation of documents, thanks to the automation of information flow between the warehouse, production and the financial and accounting sphere.

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A warehouse is a dynamic object, so it needs a dynamic tool to handle it

The Warehouse functionality in the Microsoft Dynamics 365 Business Central ERP system enables the automatization of most of the process inventory activities. It allows the creation of procedures for planning and automatic maintenance of stock levels based on defined minimum stocks and current production requirements.

The possibility of implementing a mobile application for warehouse management, as well as a barcode labelling system, makes warehouse management a smooth and dynamic process, and thanks to this – basic activities such as inventory, incoming and outgoing stock are reduced by up to 30%. The usefulness of this system can be seen not only for large, but also for small and medium-sized companies.

Discover new possibilities with Microsoft Dynamics 365 Business Central

Warehouse management

Definitions of locations (warehouses) and rules for their operation

The ERP system allows multiple warehouses to be managed through a single database, thus providing many additional logistics management functions such as stock location, location transfer or stock availability estimation. For this purpose, the grid of locations (i.e. all production plants, warehouses, distribution centres and showrooms), the network of links between them and the rules of their operation must be defined in detail. 

Stock planning and rules for restocking at the location

With the inventory management module, it is possible to design the scenario according to which the company’s logistics processes will take place. Often, in an effort to reduce costs, companies decide to keep minimum stock levels in peripheral units and restock them from the main warehouse. 

Defining the warehouse structure 

Each warehouse must be reflected in logical form in the ERP system’s database. In order to enable proper handling, the warehouse should be divided according to the following hierarchical structure, supported by the system: 

  • zone 
  • rack 
  • sector 
  • shelf 
  • container 

Creation of stock document templates

Microsoft Dynamics 365 Business Central supports all the documents necessary for the daily operation of the warehouse, i.e. documents for receipt from outside, release to outside, pick to order, inventory, revaluation and also inventory. In order to optimise, it is possible to create ready-made templates and automatically generate documents. 

Inventory planning and recording 

At any time, it is possible to verify the data recorded in the system with the actual state. The warehouse module allows an inventory report to be generated, containing the booked stock values and quantities. 

Warehouse movement marshals

The warehouse programme makes it possible to create detailed warehouse movement marshals, containing a plan of all the activities that should be carried out by employees. 

Inventory management

Inventory templates

For fixed stock categories, stock templates can be created to streamline the recording and receipt process. 

Automatic stock valuation (FIFO, LIFO, Inventory, Average) 

The ERP system’s stock valuation tools enable the accounting of the release of goods based on the chosen valuation model: 

  • FIFO (first in, first out) – issued stock is booked at the price of the first delivery of that stock available in the warehouse. 
  • LIFO (last in, first out) – the price of a stock is the price of the last delivery of that stock in the warehouse. 
  • Inventory – the prices of all stock are recorded in detail, so the input price of the stock is equal to the output price. 
  • Average – the price of the resource is determined by the average delivery price of the resource at which it was delivered to the warehouse. 

Recording of stock movements at acquisition cost

The ERP system makes it possible to collect all the data concerning the logistics process, including stock turnover costs such as delivery, insurance, customs fees, etc. 

Tracking of serial numbers and batch numbers

The ERP system has an inventory tracking function based on serial numbers and lot numbers. A full record of operations and transactions performed allows stock to be located within the warehouse and throughout the supply chain. 

Tracking expiry dates and guarantees

Asset tracking also makes it possible to monitor and supervise expiry dates and guarantee periods. 

Definition of stock planning and replenishment parameters

The stock planning function controls stock levels. It compares current and future needs with current stocks. On the basis of the stock plan, it is possible to automate the replenishment process. 

Automatic posting of warehouse operations to the general ledger 

The ERP system allows full integration of the inventory management module with the accounting module, so that all warehouse operations can be recorded directly in the general ledger.

It also makes it intuitively possible to issue invoices and fiscal receipts in an online shop, wholesaler or other retail outlet.


Packaging records and accounting for packaging tax

Asset catalogues can also be used to keep records of packaging and, in addition, they also enable the preparation of packaging tax returns for the tax office based on sales and consumption data of stocks with packaging. 

Warehouse records

Handling external receipts and releases

The programme makes it possible to define all the actions which are part of the entry and removal process. On the basis of the receipt document, the system creates a putaway document containing information on where in the warehouse the stock should be placed.

Stock transfer orders between locations

Stock redeployment orders can be created manually (for the necessary rapid replenishment of unforeseen shortages) or generated automatically on the basis of predefined stock allocation plans between locations. 

Inventory document recording

All activities within the warehouse are recorded in the system, resulting in a detailed record of documents such as internal receipt from an entity within the company and internal disbursement confirming the collection of resources for internal use. A modern warehouse system also allows inventory documents to be recorded. 

Handling picking

Defining picking components

If a supplier ships his assortment in different sets, or if the contractor has the ability to select components of the finished product during the order, it will be necessary to carry out the picking process. The ERP system allows you to define dedicated picking components and reserve them for order fulfillment.

Customised picking

Picking to order allows you to reduce storage costs (there is no need to create a variety of kits during production and store them separately in a warehouse) and gives greater flexibility to meet customer needs. 

Warehouse picking

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

Records of picking orders

All picking orders are recorded and logged so that the order fulfilment process can be tracked, as well as predicting the number of future picking orders and creating picking process plans. 

Automatic pricing of picking orders including picking cost

The platform enables automatic valuation of picking orders taking into account their cost, i.e. the consumption of resources during the process (man and machine time). 

Planning picking orders

With the help of sales data, production and warehouse data, as well as financial plans, picking processes can be optimally planned in such a way as to shorten the order fulfilment process as much as possible. 

Operation of a high-bay warehouse

Defining the warehouse structure

In order to prepare the programme to run the warehouse, its structure must be defined in the system to reflect the actual organisation of the storage space. This structure should be hierarchical, enabling the correct location of resources. 

Warehouse space management 

With the help of a modern system, it is possible to manage all the processes necessary for the proper functioning of a warehouse, including activities requiring very advanced logistics processes, such as cross-docking complementary handling.

The functionality of complementary cross-docking is a way to save time and effort by directly directing inventory from the receiving area to the shipping area without placing inventory in the warehouse. Cross-docking requires precise synchronization of all deliveries, both internal and external, so that resources are in the cross-docking location at a specific time. In this model, resources are not stored, which reduces the cost of warehouse operations.


Division of the warehouse into zones

In order to handle warehouse processes efficiently, the warehouse should be divided into functional zones, ideally reflecting the most important processes to be performed:  

  • reception area 
  • cross-docking zone 
  • storage area 
  • picking zone 
  • release zone 

Advanced handling of warehouse operations

Warehouse processes can be integrated with fiscal printers and barcode readers. It is also possible to record stock blocks of goods with quality defects. 

Warehouse classes, storage location priorities, special equipment

The functionality offered by the WMS makes it possible to define warehouse classes that provide an appropriate way of storing stock in different conditions, as well as repackaging stock accumulated in larger units of measure into smaller ones. 

Mobile warehouse management

It is possible to handle all warehouse operations, such as receipts and transfers, online on a mobile basis, which allows handling from anywhere and significantly increases the efficiency of warehouse operations. 

Optimisation of storage space utilisation with container replenishment function

To maximise the use of storage space, a company needs a tool to automatically detect unused container space and calculate the amount needed to completely fill a container. At the same time, such a tool can also suggest where to take stock from and update the status of the container. For this type of need, Microsoft Dynamics 365 Business Central offers the Shift Sheet.   

Full inventory management

At any time it is possible to verify the data recorded in the system with the actual state. In the case of the High-Bay Warehouse, it is particularly helpful to use barcodes and labels, which significantly shorten and facilitate the inventory process.   

Records of internal warehouse operations 

All actions within the warehouse are recorded in the system, resulting in a detailed record of documents and actions taken, such as internal receipts (I.T.), internal dispatches (I.R.I.), as well as the history of withdrawals, put-aways, returns, transfers and replenishments. The system also creates inventory records. 

Defining a new product by the Stock option in Microsoft Dynamics 365 Business Central

Learn how to add a new product through the Stock option. Thanks to the stock templates, less information has to be entered manually when creating a file. This makes it easier to manage the warehouse, issue documents and check statistics or reports from the integrated system. From our video you will learn how to complete all the data related to the new stock, including adding a photo, and also check statistics or reports from the integrated Power BI system.

Watch the video and learn more!

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