COURSE: 8611

INVENTORY MANAGEMENT IN MICROSOFT DYNAMICS NAV 5.0

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

January 2008 The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication. This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation. Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property.

© 2008 Microsoft Corporation. All rights reserved. Microsoft and Solomon are either trademarks or registered trademarks of Microsoft Corporation or Dynamics GP Software, Inc. or their affiliates in the United States and/or other countries. Dynamics GP Software, Inc. is a subsidiary of Microsoft Corporation. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Table of Contents Introduction to Inventory Management in Microsoft Dynamics NAV 5.0

0-1

E-Learning..........................................................................................................0-1 Instructor-Led Training .......................................................................................0-1 Training Materials ...............................................................................................0-2 Certifications.......................................................................................................0-2 Certification Exam Preparation Guides ..............................................................0-3 Learning Plans ...................................................................................................0-3 Elements of Training Materials for Microsoft Dynamics .....................................0-4 About This Training Material...............................................................................0-6 Student Objectives .............................................................................................0-9

Chapter 1: Control Inventory

1-1

Objectives...........................................................................................................1-1 Introduction.........................................................................................................1-1 Analyze Item Availability.....................................................................................1-2 Adjust Inventory..................................................................................................1-6 Count Inventory ................................................................................................1-11 Reclassify Inventory .........................................................................................1-14 Summary ..........................................................................................................1-18 Test Your Knowledge .......................................................................................1-19 Quick Interaction: Lessons Learned .................................................................1-22 Solutions...........................................................................................................1-23

Chapter 2: Reserve and Order Track Items

2-1

Objectives...........................................................................................................2-1 Introduction.........................................................................................................2-1 Reserve Items ....................................................................................................2-2 Track Supply and Demand .................................................................................2-6 Reserving vs. Order Tracking...........................................................................2-11 Summary ..........................................................................................................2-12 Test Your Knowledge .......................................................................................2-13 Quick Interaction: Lessons Learned .................................................................2-15 Solutions...........................................................................................................2-16

Chapter 3: Use Multiple Locations

3-1

Objectives...........................................................................................................3-1 Introduction.........................................................................................................3-1 Set Up a Company with Multiple Locations ........................................................3-2 Link Customers and Vendors to Locations.........................................................3-5 Set Up Responsibility Centers............................................................................3-7 Link Responsibility Centers ................................................................................3-9 Guidelines for Setting Up a Company with Multiple Locations .........................3-13 Lab 3.1 – Create and Set Up a New Location ..................................................3-15 Lab 3.2 – Create and Set Up a New Responsibility Center..............................3-16 Lab 3.3 – Set Up a Multi-site Company............................................................3-18 Overview of Cronus Organizational Setup .......................................................3-19 Sell and Purchase in a Company with Multiple Locations ................................3-20 Lab 3.4 – Create Purchase Orders in a Company with Multiple Locations ......3-32
Page i

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Inventory Management in Microsoft Dynamics™ NAV 5.0
Lab 3.5 – Create a Sales Order in a Company with Multiple Locations ...........3-33 Control Inventory at Multiple Locations ............................................................3-34 Lab 3.6 – Create and Set Up Stockkeeping Units ............................................3-38 Summary ..........................................................................................................3-40 Test Your Knowledge .......................................................................................3-41 Quick Interaction: Lessons Learned .................................................................3-43 Solutions...........................................................................................................3-44

Chapter 4: Transfer Between Locations

4-1

Objectives...........................................................................................................4-1 Introduction.........................................................................................................4-1 Set Up Transfers ................................................................................................4-2 Lab 4.1 – Set Up a Transfer Route ....................................................................4-6 Use Transfer Orders...........................................................................................4-7 Demonstration - Transfer 50 Top Panels from Yellow to Blue Warehouse ........4-7 Lab 4.2 – Transfer Items between Locations ...................................................4-14 View Items in Transit ........................................................................................4-16 Summary ..........................................................................................................4-18 Test Your Knowledge .......................................................................................4-19 Quick Interaction: Lessons Learned .................................................................4-20 Solutions...........................................................................................................4-21

Chapter 5: Perform Basic Warehouse Tasks

5-1

Objectives...........................................................................................................5-1 Introduction.........................................................................................................5-1 Set Up Basic Warehousing ................................................................................5-3 Lab 5.1 – Set Up a Warehouse Location ...........................................................5-8 Receive and Put Away Items..............................................................................5-9 Lab 5.2 – Receive and Put Away from the Purchase Document......................5-25 Lab 5.3 – Receive with a Warehouse Receipt..................................................5-26 Pick and Ship Items..........................................................................................5-27 Lab 5.4 – Pick and Ship with Inventory Pick Documents .................................5-42 Lab 5.5 – Ship with Warehouse Pick and Ship Documents .............................5-43 Move and Adjust Items in Warehouse..............................................................5-44 Lab 5.6 - Move Ten Loudspeakers to an Empty Bin ........................................5-47 Summary ..........................................................................................................5-48 Test Your Knowledge .......................................................................................5-49 Quick Interaction: Lessons Learned .................................................................5-51 Solutions...........................................................................................................5-52

Chapter 6: Handle Serial/Lot Numbers

6-1

Objectives...........................................................................................................6-1 Introduction.........................................................................................................6-1 Set Up Item Tracking..........................................................................................6-2 When to Use Serial/Lot Numbers .......................................................................6-7 Handle Inbound Serial/Lot Numbers ..................................................................6-9 Handle Serial/Lot Numbers on Inventory..........................................................6-17 Handle Outbound Serial/Lot Numbers..............................................................6-31 Lab 6.1 – Buy and Sell Items with Serial/Lot Numbers ....................................6-47 Lab 6.2 - Auto-Pick Monitors by FEFO.............................................................6-49

Page

ii

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Table of Contents
Trace Serial/Lot Numbers ................................................................................6-51 Lab 6.3 - Trace First Production Order for Item 2000.......................................6-64 Navigate with Serial/Lot Numbers ....................................................................6-65 Print Serial/Lot Number Documents and Reports ............................................6-67 Reserve Items With Serial/Lot Numbers ..........................................................6-72 Summary ..........................................................................................................6-74 Test Your Knowledge .......................................................................................6-75 Quick Interaction: Lessons Learned .................................................................6-80 Solutions...........................................................................................................6-81

Appendix A: Terminology List Appendix B: Granules Appendix C: Customizing IT Reports

A-1 B-1 C-1

Inventory Management Granules in Microsoft Dynamics NAV.......................... B-1

Generic Report (Item Tracking Appendix) ......................................................... C-1 Implementing Item Tracking on Existing Reports .............................................. C-4

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Page

iii

0 Page iv Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .Inventory Management in Microsoft Dynamics™ NAV 5.

Save time and increase your productivity. Instructor-Led Training With instructor-led training. Evaluate a new Microsoft Dynamics module or product. Learn about the changes in features and functionality of a new Microsoft Dynamics product version. or self-paced study using training materials. skipped or repeated. you can: • • Follow demonstrations and attend presentations. Additionally. there is a type of training that meets your needs. With courses on a variety of topics.Introduction INTRODUCTION TO INVENTORY MANAGEMENT IN MICROSOFT DYNAMICS NAV 5. validate your training and demonstrate your expertise with one of many certifications for Microsoft Dynamics. E-Learning allows you to learn at your own pace through flexible access to training. instructor-led training. Quality training from industry experts helps keep you updated on your solution and develops skills to maximize the value of your solution. Learn at your own pace .0 Training is a vital component of retaining the value of your Microsoft Dynamics™ investment. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 0-1 . Find tips and tricks to show you how to increase productivity and save time. E-Learning are online training courses designed to cover detailed concepts on specific product areas and allow you to: • • • • • • • • Gain in-depth technical and business application training through daily on-demand training. Choose the training or certification type that best enables you to stay ahead of the competition. therefore proving beneficial for those lacking the time or budget to travel. you can gain a solid foundation or refresh your knowledge in Microsoft Dynamics products and processes while learning from an expert in an interactive environment.lessons can be stopped and restarted. Receive product knowledge comparable to instructor-led training without the need for travel or time away from the office. Whether choosing E-Learning. E-Learning Online training for Microsoft Dynamics products helps you increase your productivity without spending time away from your home or office. Gain beneficial training when preparing for Microsoft Dynamics certification exams. Receive hands-on product experience.

Microsoft Certified Business Management Solutions Specialist The achievement of this certification demonstrates an individual’s proficiency in one module of a Microsoft Dynamics or related business product.Inventory Management in Microsoft Dynamics™ NAV 5. For selected training materials there are training material – local functionality available which cover country specific features in the product. Learn using a self-study format when preparing for Microsoft Dynamics certification exams. Gain beneficial training when preparing for Microsoft Dynamics certification exams. and enable you to: • • • Learn at your own pace. Organizations can streamline their employee recruitment process and lower their external support costs plus downtime by maintaining technically skilled employees by requiring Microsoft Certified Business Management Solutions Specialist and Professional certifications. The training material – local functionality add on to existing training materials and are designed to teach local functionality within a given country. Certifications for Microsoft Dynamics are widely recognized by industry employers and provide an objective validation of an individual’s knowledge. Please notice that training material – local functionality are used only in conjunction with the training material. Certifications Certifications help identify and distinguish an individual’s technical skill set using a Microsoft Dynamics or related business product. Refer to an abundance of tips. not as stand-alone training materials. and insights. 0-2 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Training Materials Training materials can be ordered for the purpose of self-paced study.0 • • Participate in classroom activities and discussions with other attendees. in your own time. Microsoft Certified Business Management Solutions Specialists must pass a single certification exam for a Microsoft Dynamics or related business product to earn the title. Organizations that employ certified individuals benefit from a complete approach to learning – certified individuals have higher skills retention and increased productivity. tricks. These materials are comparable to courseware used with instructor-led training.

including: • • • • • • The target audience Skills being measured Time expected to take each portion of the exam Pass rates and requirements Question types and topics Preparation tools. Certification exam preparation guides are available through PartnerSource and CustomerSource. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 0-3 .Introduction Microsoft Certified Business Management Solutions Professional The Microsoft Certified Business Management Solutions Professional is a premier certification where an individual has completed a pre-determined set of required and elective certification exams. such as: – – – recommended training supplemental learning resources additional recommended skills Certification Exam Preparation Guides help you determine which learning options are appropriate to best prepare you for a certification exam. Learning plans can be found on both PartnerSource and CustomerSource. The pre-determined set of required and elective exams for this certification are focused on one of three specific knowledge areas – Applications. Certification exam preparation guides contain valuable information about a specific exam. This certification demonstrates an individual’s broad and deep knowledge of a Microsoft Dynamics product — more knowledge than what is needed to achieve a Microsoft Certified Business Management Solutions Specialist title. These include certification exams for Microsoft Dynamics and related business products. Learning plans also provide a learning track towards obtaining certifications. A combination of hands-on experience using the product and training are recommended certification exam preparation. Learning Plans Learning Plans can help you plan the best learning strategy for you and your organization. Microsoft highly recommends the use of the certification exam preparation guides available for each exam. Learning plans illustrate module specific learning tracks that can be easily targeted towards specific roles. Developer. Microsoft does not expect or intend one course or type of training to be the sole preparation method for passing a certification exam. as well as certification exams for other Microsoft technologies such as SQL Server. or Installation and Configuration – for one Microsoft Dynamics product. Certification Exam Preparation Guides To help prepare for a certification exam.

Introduction An introduction sets the stage for the learning to take place and prepares you with key statements of the chapter. usually according to the learning objectives for the chapter. Topics Chapters are split up into topic areas. This is especially beneficial in large chapters so that the knowledge and skills to be learned are split up into more manageable units.Inventory Management in Microsoft Dynamics™ NAV 5. instructor-led training.0 NOTE: For more information on E-Learning. These exercises are designed for the experienced student who requires little instruction to complete the required task. Labs begin with a scenario paragraph which describes the business problem to be solved. Questions can be short answer. Labs Labs test your skills with the learning concepts presented and learned during a topic or chapter. This level of exercise states the business problem to be solved and describes the tasks the learner needs to complete. Learning objectives are important because they inform you about what needs to be done to successfully complete the chapter. The conclusion also offers an opportunity to refresh earlier learning. Conclusion The conclusion wraps up the chapter by highlighting the important parts of the chapter as well as providing a transition to the next chapter. and also sets the stage for the exercise. true and false. Answers to questions are also provided. Challenge Yourself! Challenge Yourself! labs are the most challenging. fill-in-the-blank or any other type. Elements of Training Materials for Microsoft Dynamics Training Materials for Microsoft Dynamics products contain a number of sections or elements. Test your Knowledge The Test your knowledge section consists of review questions for each chapter or topic and is designed to help reinforce learning concepts. Solutions to the labs are also provided. multiple-choice. Each chapter includes the following elements: Objectives Each chapter begins with a statement of the learning objectives for that chapter. Labs may be offered at different levels to accommodate the variety of skills and expertise of each student. training materials and certifications for Microsoft Dynamics log in to PartnerSource or CustomerSource and visit Training & Certification. 0-4 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .

and providing yourself with an excellent resource for reviewing key points after class. they provide the user with helpful hints and more information to complete the lab.Introduction Need a Little Help? These exercises are designed to challenge students while providing some assistance. If additional assistance is required. We suggest you try the “Challenge Yourself!” labs first. Quick Interaction: Lessons Learned At the end of each chapter within the Training Material for Microsoft Dynamics. This interaction is designed to provide you with a moment to reflect on the material you have learned. and if you need help completing the task. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 0-5 . look to the information in the “Need a Little Help?” labs. These exercises do not provide step-by-step instructions. however. you will find a Quick Interaction: Lessons Learned page. refer to the “Step by Step” lab solutions located in an Appendix. By outlining three key points from the chapter. you are maximizing knowledge retention.

Make manual adjustments to inventory quantities. consultants. Reclassify an inventory item by changing information attached to its item ledger entry. The course is targeted toward sales people. such as order processors.Inventory Management in Microsoft Dynamics™ NAV 5. as well as conceptual information on inventory management in general. such as availability analysis. 0-6 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . All possible inbound.0 About This Training Material This section provides you with a brief description of: • • • • • • The training material Audience Suggested prerequisites Training material objectives Student materials Related certification exams Description This 2-day course covers all aspects of the inventory and basic warehousing functionality available for Microsoft Dynamics NAV. and outbound item handling tasks are described. including how to perform these for assigned serial/lot numbers. Typical inventory tasks are covered. This course also provides background information to set up Microsoft Dynamics NAV for inventory management. account managers. and implementers within a Microsoft partner staff who need to master the inventory management functionality in order to support or teach it to end users. internal. Audience The intended audience for this course is individuals who want to learn how to set up and use inventory management functionality in Microsoft Dynamics NAV. inventory reclassification and adjustment. Count and record how many items are physically present in inventory. At Training Material Completion Completing this course allows students to: • • • • • • Determine actual and projected item availability. Lastly. the comprehensive Item Tracing feature is covered in detail. Track from demand to matching supply and vice versa. Reserve items on inventory or inbound. and purchasing agents.

Set up a company with multiple locations. View inventory value of items in transit. including bin setup.Introduction • • • • • • • • • • • • • • • • • • • • • • • • • • • • Distinguish reservations from order tracking links. Pick and ship items using the sales order. Create and post manual transfers.0 course Knowledge of basic business processes and ERP user roles Basic knowledge of distribution and logistics Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 0-7 . or warehouse receipt documents. Adjust item quantities in bins. Navigate with serial/lot numbers. Distinguish when and how to use serial/lot numbers. inventory putaway. List multi-location setup guidelines. customers. Receive and put away items using the purchase order. Set up Item Tracking. Explain central transfer concepts. Print serial/lot number documents and reports. Identify the locations and quantities of items in transit. and vendors to responsibility centers. Link customers and vendors to locations. Create and set up stockkeeping units. Set the program up to handle transfers. Link users. Prerequisites Before attending this course. or warehouse shipment documents. Reserve items with serial/lot numbers. Handle serial/lot numbers on inventory. Get an overview of Cronus setup data. Trace posted serial/lot numbers throughout the supply chain. Handle inbound serial lot numbers. inventory pick. Set up responsibility centers. Set up locations for warehousing. Create sales and purchase orders for multiple locations. Handle outbound serial/lot numbers. students must have: • • • Taken the Introduction to Microsoft Dynamics NAV 5. Move items between bins.

0 Student Materials The following materials for Microsoft Dynamics NAV version 5.0 are related to this course: • • • Introduction Finance Trade Related Certification Exam This course is related to the Trade/Inventory exam 0-8 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .Inventory Management in Microsoft Dynamics™ NAV 5.

1. 2. 3.Introduction Student Objectives What do you hope to learn by participating in this course? List three main objectives below. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 0-9 .

Inventory Management in Microsoft Dynamics™ NAV 5.10 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .0 0 .

Reclassify an inventory item by changing information attached to its item ledger entry. The “Introduction” course provides a general explanation with regard to the first goal: the functions and use of item cards representing inventory records. The Basic Inventory granule in Microsoft Dynamics™ NAV supports companies in achieving their goals of having accurate inventory data and reliable availability figures. Make manual adjustments to inventory quantities.Chapter 1: Control Inventory CHAPTER 1: CONTROL INVENTORY Objectives The objectives are: • • • • Determine actual and projected item availability. This chapter addresses the second goal and covers the following topics: • • • • Analyzing availability Manually adjusting inventory levels Counting the physical inventory Reclassifying inventory items Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 1-1 . Introduction Inventory management is a cornerstone of any company within the wholesale and manufacturing business. Count and record how many items are physically present in inventory. Inventory reliability at a low cost is the key factor to ensure the smooth functioning of all related operations.

Overview of inventory levels and expected supplies over time to promise delivery dates. For a sales department. For a requisition department. calculating the availability of items is done in a broad range of situations: a. Generally. and how much to replenish a specific item. when inquiring into the item availability situation. (This is relevant in connection to situations A. salespeople must be able to get an overview of other alternatives. In this case. When a customer request for a specific item cannot be met. and F. This definition goes beyond the actual inventory quantity and includes such factors as allocations. b. e. if there are item quantities that have been set aside for other purposes or can be found elsewhere.) 1-2 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . when deciding if. With this in mind. f.0 Analyze Item Availability To service customers properly. when responding to customers’ inquiries as to if their orders can be met and when. item availability is defined in connection to the following three aspects: • • • Item Location Point of time Depending on the profile and requirements of the company's functional units. meaning quantities that have already been set aside or reserved for specific purposes. When counting physical inventory and identifying differences. Availability calculations in Microsoft Dynamics NAV meet all of the abovementioned requirements.Inventory Management in Microsoft Dynamics™ NAV 5. c. In principle. and expected inbound orders representing future supply. most wholesalers and manufacturers need: • • Reliable availability figures when taking orders. Availability calculation consists of the following elements: • Inventory. when. such as. or a requested item can be substituted with a similar one. it is necessary to know the quantity available during a certain planning time period. available items can be defined as a quantity that the company has at its disposal at a given point of time. d. When warehouse staff need to know the availability of an item to be picked.

and C. (This is relevant in connection to situations B.) In principle. 1. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 1-3 . Refer to “Projected Availability” in this chapter. This is shown as projected available balance. 3.1 INVENTORY FIELD SHOWS THE SUM OF QUANTITIES EXISTING IN ALL LOCATIONS AS SHOWN IN THE ITEM LEDGER ENTRIES WINDOW. 2. inventory is calculated from posted item transactions.Allocations Because the expected dates of inbound and allocated quantities are known.Chapter 1: Control Inventory • • Inventory minus allocations. Inventory The program calculates the inventory quantity as the sum of all item increases minus all item decreases on the current date. FIGURE 1. that is item ledger entries. the program can calculate availability over time. Accordingly. Click Warehouse→Planning & Execution→Items. The total inventory quantity across all locations is shown in the Inventory field on the General tab of each item card.) Inventory plus inbound orders minus allocations. Drill down on the Inventory field (showing 832 pieces) to see in the Item Ledger Entries window that inventory is the sum of quantities flowing in and out of the company's warehouse locations. availability calculation is based on the following formula: Availability = Inventory + Inbound Quantity . (This is usually relevant in connection to situation D. Browse to the item card for item 70060.

automatically. A quantity specified for picking or shipment in the warehouse. A quantity. FIGURE 1. Allocations As mentioned earlier. or pilferage. or through planning. quantities set aside for a specific purpose. the available quantity can be reduced by allocations. but is yet unposted. This is provided with the Items by Location window. it is relevant to know the current and expected availability of items for each location. click Item→Items by Location.0 When a company has more than one location set up in the program and orders are received into different locations. refer to “Use Multiple Locations” in this course. • • • 1-4 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . A quantity that is blocked. For more information about locations. for example.Inventory Management in Microsoft Dynamics™ NAV 5.2 EXTRACT OF THE INVENTORY QUANTITIES OF ALL ITEMS SHOWN FOR EACH LOCATION This window contains the item quantities available on all company sites that are set up in the program as locations. that is. either manually. The following are examples of allocations: • • A quantity entered on outbound orders. scrap. On the item card. temporarily or permanently. A quantity defined as safety stock. deterioration. Refer to “Count Inventory” in this course. either on inventory or inbound order. as well as administrative mistakes. Note that BLANK location is not included. that is reserved for an outbound order. The actual physical inventory quantity can differ from the recorded quantity due to shrinkage caused by.

inbound transfers. refer to the “Trade” course.Chapter 1: Control Inventory For more information about manual and automatic reservations. On every sales line. FIGURE 1. 2. Projected Availability Inbound quantities or outstanding receipts like purchase orders. Using the Item Availability by Periods window is described in the “Introduction” course. You can get an overview of when quantities are expected to be available in the three different Item Availability By windows. refer to “Reserve and Order Track Items” in this course. This is relevant in situations when there is a need to know when the inventory quantity is supposed to increase. such as to promise a delivery. A typical scenario where the availability calculation must consider possible allocations is a sales situation. For information on using dedicated order promising functions. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 1-5 . January). In the Item Availability by Location window. From the item card for item 1908-S. click Item→Item Availability By→Location. the program checks if the requested quantity can be fulfilled against the inventory quantity minus allocations on the sales shipment date. and production orders are included in the projected (expected) availability calculation. set the date interval button in the bottom corner to Month (automatically filters on the month of the work date.3 AVAILABILITY INFORMATION OVER TIME REPRESENTED IN MPS DIMENSIONS. 1.

Inventory Journal window. FIGURE 1. The item journal can be accessed from Warehouse→Inventory→Item Journals. typically at the end of a fiscal year.4 EMPTY ITEM JOURNAL SHOWING THE FOUR SUPPORTED ENTRY TYPES 1-6 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . while other companies regularly make inventory adjustments as a part of their business process. For more information. Adjustments of this kind are usually made when the physical inventory has been counted. inventory adjustments are made in the Phys. refer to “Count Inventory” in this chapter.0 Adjust Inventory It is sometimes necessary to make adjustments to quantities in inventory.Inventory Management in Microsoft Dynamics™ NAV 5. An example of this is smaller wholesaler who sometimes perform light manufacturing in the process of fulfilling sales orders. For that particular purpose. such as purchase or sales orders. such as when there is inventory shrinkage or items are not salable. but do not use production orders. Most companies may need to do minor inventory adjustments a few times in the course of the fiscal year. The Item Journal The Item Journal window is used to post item transactions to adjust inventory levels directly without posting a business document.

Negative Adjmt. However.Chapter 1: Control Inventory The item journal can be used to post the following four types of item entries: Purchase – to post a positive inventory adjustment that works as a purchase order transaction. you can look up and select an entry number if the item journal line must be applied to an already-posted document.Save and Post Recurring Production as Standard Journal If a company often uses the item journal to make inventory adjustments. for example. Refer to the “Inventory Costing” course for more information about why and how these three fields are used. The Unit Amount field shows the price of one unit of the item on the journal line. Depending on what you select in the Entry Type field. Negative Adjmt Field on Item Card Last Direct Cost Unit Price Unit Cost Unit Cost The Unit Cost field shows the cost for each unit of the item on the journal line. the Save as Standard Journal and Get Standard Journal functions can be used to make this recurring work easier. three fields relate to cost accounting and are briefly explained in the following. in connection with consumption and output of items in light manufacturing. field is filled in. In the Applies-to Entry field. the price is represented by either a unit cost or a unit price. Most fields on the item journal are rather elementary and therefore not covered in this course. Positive Adjmt. – to post a positive inventory adjustment. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 1-7 . Sale – to post a negative inventory adjustment that works as a sales order transaction. the program automatically copies the price from one of the following fields on the item card: Entry Type Purchase Sale Positive Adjmt. Demonstration . When the Item No. It is copied from the item’s Unit Cost field. – to post a negative inventory adjustment.

but first it must be saved as a standard item journal.Inventory Management in Microsoft Dynamics™ NAV 5.0 Follow these steps to fill in the item journal: 1. 6. Click Functions→Save as Standard Journal. 1-8 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Notice that the unit amounts on all lines are simply carried from the respective item cards. NOTE: If no journal lines are selected. enter a code to identify the standard item journal that you are about to save. 3. FIVE NEGATIVE INVENTORY ADJUSTMENTS MADE FOR THE ITEMS USED TO BUILD IT. Select all the journal lines.5 ONE POSITIVE INVENTORY ADJUSTMENT CREATED FOR THE FINISHED "NEW ATHENS DESK".5: FIGURE 1. The Save as Standard Item Journal window appears. Click Warehouse→Inventory→Item Journals. Fill in the journal lines as shown in figure 1. The item journal is ready to be posted. 5. 4. “New1896-S”. but first you must name the standard item journal that they must be saved in. Place a check mark in the Save Unit Amount field to have the program save the value(s) in the Unit Amount field of the item journal you are saving. the function will include all the journal lines. for example. The program now prepares to save the lines that are currently in the item journal. In the Code field. 2.

The program reverts to the Item Journal window so you can proceed to post it – while knowing that it can easily be recreated next time you need to post the same or similar lines. it also increases the risk of wrongful posting if the quantities and amounts of that future item journal are not supposed to be the same as those in the standard item journal. Illustrate the Get Standard Journal function. 10. Place a check mark in the Save Quantity field to have the program save the value(s) in the Quantity field of the item journal you are saving. proceed to delete the existing item journal lines and then get the lines from the standard journal just created.7 SELECTING THE STANDARD JOURNAL FOR NEW1896-S. The Standard Item Journals window appears showing codes and descriptions for all existing standard item journals: FIGURE 1. press Ctrl+A to mark all lines. In the item journal. Click OK to save the item journal.Chapter 1: Control Inventory 7.6 SAVE AS STANDARD JOURNAL REQUEST FORM FILLED IN NOTE: Selecting the Save Unit Amount and/or Save Quantity fields will save you the trouble of entering amounts and quantities in a future item journal that reuses the standard item journal. 9. But. FIGURE 1. 8. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 1-9 . and then press Delete. Click Functions→Get Standard Journals.

Now the item journal is filled with the lines you saved as the standard item journal. click Standard. they will also be there the next time you open or reuse the standard item journal in question. Back in the Standard Item Journals window. NOTE: If you checked the Save Unit Amount and/or Save Quantity fields during the Save as Standard Journal function. Otherwise. and then click OK to complete the Get Standard Journals function. Therefore. NOTE: Any changes you make in a standard item journal are implemented right away. 1-10 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .0 To review or change a standard item journal before you select it for reuse. Normally. that is. that is. the inserted lines are placed under the existing journal lines. If journal lines already existed in the item journal. you should now make sure the inserted values are correct for this particular inventory adjustment before you post the item journal.Inventory Management in Microsoft Dynamics™ NAV 5. FIGURE 1. select the standard item journal for NEW1896-S. the Unit Amount field on lines that you have inserted is automatically filled with the item’s current value (copied from the Unit Cost field on the item card). make the specific change in the item journal after the standard item journal lines have been inserted. if you did not check the Save Unit Amount field during the Save as Standard Journal function. Show Journal (or Shift+F5). ensure you want the change to apply generally.8 THE SAVED STANDARD ITEM JOURNAL LINES ARE INSERTED IN THE ITEM JOURNAL. 11.

Post the item journal. If there are differences. the items that are physically in the company warehouse(s) must be counted to check if the quantity registered in the program agrees with the actual inventory quantity. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 1-11 . Inventory Journals. 2. 12. Click Warehouse→Inventory→Phys. FIGURE 1. This will update the Unit Amount field with the current unit cost of the item card. The Physical Inventory Journal To assist in taking a physical inventory. Inventory Journal window. Print the Physical Inventory List sheet to write counted quantities on. the program provides a special version of the item journal – the Phys. these must be posted to the item accounts before the finance department performs their periodic inventory valuation. This concludes the demonstration of how to save item journal lines to reuse them for recurring tasks. you can adjust it to the current value of the item in the following way: Select the item journal line(s) in question and click Line→Recalculate Unit Amount. which you do not want to post.Chapter 1: Control Inventory If inserted item journal lines carry saved unit amounts. Count Inventory From time to time.9 PHYSICAL INVENTORY JOURNAL FOR REGISTRATION OF COUNTED ITEMS Taking a physical inventory involves a number of steps: 1. at the end of a fiscal year as a minimum. Fill in a physical inventory journal with calculated (expected) inventory.

Enter the counted quantities in the physical inventory journal. The physical inventory process is often initiated and managed by a company's finance department as a part of doing the annual accounts. prints the Physical Inventory List report. the inventory quantities registered in the program will agree with the actual quantities in inventory as determined by the physical count. Post the journal. he records that two Swivel Chairs are missing and that one lost Guest Chair is found. 2. Demonstration .Take a Physical Inventory at Yellow Location Scenario: John. He initiates the process by filling the physical inventory journal with calculated inventory quantities. Follow these steps to count and post the physical inventory: 1. Click OK to run the calculation. FIGURE 1. 4. After posting the journal. 5. Click Warehouse→Inventory→Physical inventory journals. Count the quantity of each item and write the figure in the empty field.as in the following demonstration. Click Functions→Calculate Inventory and set a location code filter for YELLOW.0 3. must perform the annual count of inventory items. In the process. but may also be a shared responsibility of warehouse staff . the warehouse worker in charge of YELLOW warehouse.10 PHYSICAL INVENTORY JOURNAL FILLED WITH CALCULATED YELLOW INVENTORY 1-12 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . 3.Inventory Management in Microsoft Dynamics™ NAV 5. and then proceeds to do the physical counting.

With the printout in hand. John prefers to print the sheet with the expected quantities preset so that he only has to write down the deviating figures. Select the Show Qty.11 COUNTED ITEM QUANTITIES ENTERED ON THE PHYS. (Phys. (Calculated) field and click Preview or Print. FIGURE 1. he writes 44 on the empty line. For item 1988-S. (Phys. Inventory List report. None of the items carry serial or lot numbers so the Show Serial/Lot Numbers field is irrelevant. Do not set any filters on the first two tabs. but click the Options tab. All other items are on inventory in the expected quantity and he leaves these lines empty. Inventory) field is preset with the same quantities. In the process he discovers that two MUNICH Swivel Chairs. 4. (Calculated) field holds the quantities that the program expects to be in inventory. 5. 6. are missing and that there is one more SEOUL Guest Chair than expected. John writes 88 after the calculated 90 on the empty line in the Qty.Chapter 1: Control Inventory The Qty. Proceed to prepare the physical inventory report by clicking Print. The Qty. and this is where John will enter counted quantities if they differ from the calculated. Inventory) column. For item 1972-S. John now goes into YELLOW warehouse to take a physical inventory. Refer to Chapter 6 for information on counting serial/lot numbers. INVENTORY LIST PRINTOUT Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 1-13 . The Options tab defines what information will be shown on the printed Phys. item 1972-S.

SEOUL Guest Chair. 1-14 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .Inventory Management in Microsoft Dynamics™ NAV 5. Back in the physical inventory journal that contains the calculated YELLOW inventory. Enter 88 instead of 90 in the Qty.0 The physical counting is done and John proceeds to record the actual inventory quantities in the system. 10. INVENTORY JOURNAL READY TO POST THE INVENTORY ADJUSTMENTS. (Phys. Post the journal. On the line for item 1988-S. and the Quantity field shows 2. enter 44 instead of 43. This completes the demonstration of tasks involved in counting and recording physical inventory. Notice that the Entry Type field changes to Negative. select the line for item 1972-S. such as to correct a data entry error made when the item was posted to inventory. MUNICH Swivel Chair. Inventory) field. 7. Reclassify Inventory It is sometimes necessary to change information attached to items in inventory.12 PHYS. 9. FIGURE 1. 8.

. FIGURE 1.Chapter 1: Control Inventory The following are examples of information that may be changed: • • • • • • Dimension code Location code Bin code Serial/lot number Expiration date . Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 1-15 . refer to “Handle Serial/Lot Numbers” in this chapter. such as the New Department Code field. Journal window. fields in which to enter the new information value.of a serial/lot number Serial/lot number information cards For more information on the last three types of item information. it is unique because of the dedicated New. The Item Reclassification Journal Changing such information on item ledger entries can only be done in the Item Reclass. Notice in the Show Column window that for each changeable field there is a corresponding New.. fields.13 ITEM RECLASSIFICATION JOURNAL SHOWING SPECIAL NEW FIELDS IN THE SHOW COLUMN LIST. Although this journal functions in a way similar to the item journal and physical inventory journal.

3. Select the Department Code. 5. 2. click Item→Entries→Ledger Entries (or press Ctrl+F5) to open the Item Ledger Entries window. and Location Code fields and then press OK. NOTE: The last item ledger entry shows that on 01/20/08. look up from the Item field and select item 1968-S in the Item List window (or press F6). Therefore. disregard the last item ledger entry. and this dimension value must be removed from the inventory items. Journals.14 THE SECOND-LAST ITEM LEDGER ENTRY OF ITEM 1968-S SHOWS THAT TWO PIECES WERE RETURNED ON 01/13/08 AND PUT BACK IN RED INVENTORY WITH THE SALES DIMENSION VALUE. Click Warehouse→Inventory→Item reclass. Follow these steps to set up the Item Reclass. 1-16 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Journal window for the task: 1.Change Department Code from Sales to Blank Scenario: On 01/13/08.Inventory Management in Microsoft Dynamics™ NAV 5. The two item ledger entries still carry the SALES department code that was assigned during the original sale. two units of item 1968-S are placed in inventory after they have been returned by a customer. with the SALES department code. The warehouse manager uses the item reclassification journal to make this correction. This demonstration assumes that this date has not yet arrived. plus shows where the item is stored. The journal now includes the fields that will hold the old and new department codes. Back in the Item Reclass. the two swivel chairs are in fact sold again. verify that the item ledger entry currently carries the SALES department code. Journal window. Before proceeding to fill in the journal line.0 Demonstration . While the item is selected. New Department Code. Click View→Show Column. FIGURE 1. 4.

enter 01/13/08 in the Posting Date field. Scroll to the card of item 1968-S. proceed to check the item ledger entries of item 1968-S. Press Ctrl+F5 to open the Item Ledger Entries window. FIGURE 1. 13.Chapter 1: Control Inventory 6. Click Warehouse→Planning & Execution→Items. 10. Look up in the Location Code field and select RED to ensure that the reclassification happens in the right warehouse. 8. To verify that the reclassification functioned as intended.15 THE ITEM RECLASSIFICATION JOURNAL READY TO POST AND THEREBY REMOVE THE SALES DEPARTMENT CODE FROM THE ITEM LEDGER ENTRY. enter 1.16 SALES DEPARTMENT CODE REMOVED THROUGH RECLASSIFICATION Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 1-17 . FIGURE 1. Leave the New Department Code field empty to indicate that the item ledger entry will not hold a dimension value. 7. Look up in the Department Code field and select SALES. In the Quantity field. Post the journal. 14. 9. 11. 12. Back in the item reclassification journal.

with the physical inventory journal in connection with periodic counting. the order processor will sell from inventory two Mexico swivel chairs that do not hold dimension values as is company rule. removing the existing entry. or with the reclassification jouirnal when only attached item information needs to be changed.0 Notice that two new item ledger entries of type Transfer are created: one for a quantity of -2. Summary A typical task involved in controlling inventory is to analyze and maintain inventory levels to keep the supply chain flowing.Inventory Management in Microsoft Dynamics™ NAV 5. 1-18 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . and one for a quantity of +2. Again assuming that the last item ledger entry does not exist. but without the SALES department code. restoring the entry. when 01/20/08 arrives. either with the item journal. as a substitute for production orders or other purposes. Other general tasks are to post adjustments to inventory.

) ( ) Reuse Journal Lines ( ) Get Standard Journals ( ) Get Posted Journal lines ( ) Save as Standard Journal Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 1-19 . Complete the following formula: Availability = ___________+ Inbound Quantities . but yet unposted ( ) Reserved items 3.) ( ) Item Availability by Period ( ) Item Availability by Date ( ) Item Availability by Variant ( ) Item Availability by Location 2. Which item journal functions enable you to reuse item journal lines? (Select all that apply.) ( ) A quantity consumed as production components ( ) A quantity entered on inbound orders. Which window shows how many items are available in different warehouses? ( ) Item Availability by Warehouse ( ) Location Availability ( ) Item Availability by Location ( ) Warehouse Availability 4. Which of the following are allocations? (Select all that apply. but yet unposted ( ) A quantity entered on outbound orders.__________________ 5. Which of the following windows show item availability according to MPS (Master Production Schedule) concepts? (Select all that apply.Chapter 1: Control Inventory Test Your Knowledge 1.

8. ( ) It uses variations of the New field. Task: Put the following steps in order: Step _____ : Count the quantity of each item and write the figure in the empty field. (Phys.0 6.Inventory Management in Microsoft Dynamics™ NAV 5. ( ) It creates two item ledger entries for each posting. Which of the following are special characteristics of the reclassification journal? (Select all that apply. Inventory) field? 9. Step _____ : Fill in a physical inventory journal with calculated (expected) inventory. In the Phys. Step _____ : Enter the counted quantities in the physical inventory journal.) ( ) It is used to rename items ( ) It creates one item ledger entry of type Transfer for each posting. Step _____ : Print the Physical Inventory List sheet to write counted quantities on. Inventory Journal window. Inventory List report? 7. Which field must be selected to show expected inventory on the Phys. 1-20 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . what value is shown in the Entry Type field when you enter a surplus in the Qty.

Chapter 1: Control Inventory 10. Which journal do you use to post an adjustment of item information in inventory? Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 1-21 .

Inventory Management in Microsoft Dynamics™ NAV 5.0 Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter: 1. 2. 3. 1-22 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .

Which of the following windows show item availability according to MPS (Master Production Schedule) concepts? (Select all that apply. but yet unposted (√) Reserved items 3.1: Inventory 2: Allocations 5. Complete the following formula: Availability = ___________+ Inbound Quantities . Which of the following are allocations? (Select all that apply. Which item journal functions enable you to reuse item journal lines? (Select all that apply. Which window shows how many items are available in different warehouses? ( ) Item Availability by Warehouse ( ) Location Availability (•) Item Availability by Location ( ) Warehouse Availability 4.__________________ MODEL ANSWER .) ( ) Reuse Journal Lines (√) Get Standard Journals ( ) Get Posted Journal lines (√) Save as Standard Journal Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 1-23 .Chapter 1: Control Inventory Solutions Test Your Knowledge 1.) ( ) A quantity consumed as production components ( ) A quantity entered on inbound orders.) (√) Item Availability by Period ( ) Item Availability by Date (√) Item Availability by Variant (√) Item Availability by Location 2. but yet unposted (√) A quantity entered on outbound orders.

) ( ) It is used to rename items ( ) It creates one item ledger entry of type Transfer for each posting. Step 2 : Print the Physical Inventory List sheet to write counted quantities on. 8. Step 1 : Fill in a physical inventory journal with calculated (expected) inventory.0 6.Positive Adjmt. Task: Put the following steps in order: Step 3 : Count the quantity of each item and write the figure in the empty field. In the Phys. Which of the following are special characteristics of the reclassification journal? (Select all that apply. 9. 10.Show Qty. Inventory List report? MODEL ANSWER .The reclassification journal 1-24 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .Inventory Management in Microsoft Dynamics™ NAV 5. (√) It creates two item ledger entries for each posting. (Phys. (√) It uses variations of the New field. (Calculated) 7. Step 4 : Enter the counted quantities in the physical inventory journal. Which journal do you use to post an adjustment of item information in inventory? MODEL ANSWER . Inventory) field? MODEL ANSWER . Which field must be selected to show expected inventory on the Phys. what value is shown in the Entry Type field when you enter a surplus in the Qty. Inventory Journal window.

Track from demand to matching supply and vice versa. the greater challenge lies in their ability to couple demand with supply in a manner that provides transparency and guarantees superior customer satisfaction without increasing inventory carrying costs. See the details of such allocations to locate alternatives that can satisfy urgent customer requests in situations where inventory is otherwise unavailable. most wholesalers and manufacturers generally need the ability to: • • Ensure that a specific demand can always be fulfilled by committing a corresponding supply to it.Chapter 2: Reserve and Order Track Items CHAPTER 2: RESERVE AND ORDER TRACK ITEMS Objectives The objectives are: • • • Reserve items on inventory or inbound. The program supports these needs with the following features: • • Reservations Order tracking Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 2-1 . To meet such a challenge. Introduction For many companies. Distinguish reservations from order tracking links.

0 Reserve Items Reservations are intended for salespeople who want to reserve inventory or inbound items for a specific sales order. Reservations may also be used to handle exceptional situations where the results of the normal. automatic offsetting of supply and demand are unacceptable. The program follows the simplicity principle that if reservations are broken because of quantity changes on the demand or supply side. and for production planners who want to reserve components for firm planned production orders before they are released.1 ITEM CARD SHOWING THE THREE RESERVATION SETUP OPTIONS 2-2 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . The reservation system enables the user to make a firm link between existing supply and demand. Set Up Reservations Each item can be set up to handle reservations by selecting one of three different options in the Reserve field on the Planning tab of the item card: • • • Always Optional Never FIGURE 2.Inventory Management in Microsoft Dynamics™ NAV 5. which directly affects the way the inventory transaction is performed. the user must manually remove and recreate the reservation.

1. The Reservation Window From any outbound order.Chapter 2: Reserve and Order Track Items The reservation setup options define the following system reactions: • Always(also called automatic): Every time the item is entered on a sales order or other outbound order. Scroll to sales order number 109001. such as an outbound transfer or a production component line. such as purchase or production orders. but the user can reserve manually in the Reservationwindow. irrespective of the above reservation setup. a user can reserve from four different types of supply: • • • • Item ledger entry (quantity in inventory) Purchase order line Released production order line Firm planned production order line Manually reserving either of these supply types takes place when you select from proposed supply with dedicated functions in the Reservation window. 2. Never: Neither automatic nor manual reservation is possible. • • No other setup is required for reservations. Automatic reservation with no user involvement. occurs when the planning system creates supply orders using the Make-to-Order (M-T-O) manufacturing policy. the system automatically tries to reserve the required quantity from the first available supply in inventory or on inbound orders. Optional (most common setup): Reservations are never made automatically. Review this by opening existing sales order 109001 in the demonstration company. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 2-3 . or when the user creates a production order directly from a sales order. Click Sales & Marketing→Order Processing→Orders. Refer to “Manufacturing I” for more information on supply planning.

and then click Functions→Reserve from Current Line. Now. The program cancels a reservation automatically when date changes make the supply-demand link impossible. Create a sales order for customer 20000 for four units of item 80201 with a shipment date of 02/03/08 from blank location. The program allows you to reserve items that are not available in inventory but are inbound on purchase or production orders. is about to finalize a sales order for four units of item 80201 for customer 20000. FIGURE 2. Click Functions→Reserve.Reserve Items on a Purchase Order Scenario: Susan. The items are not in inventory. Demonstration . 1.Inventory Management in Microsoft Dynamics™ NAV 5. To be absolutely sure that the sales order is fulfilled. make the reservations for the required item quantity. she reserves the needed quantity from the purchase order. To reserve a quantity. but they are expected to arrive before the sales order is to be shipped. place the pointer on a supply type line. Create a purchase order for vendor 3000 for ten units of item 80201 with expected receipt date on 02/01/08 at blank location.0 3. the order processor. 2-4 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . 2. Place the pointer in the first and only sales order line. 4. The condition is that the expected receipt date of such inbound quantities is earlier than the shipment date of the sales order.2 THE RESERVATION WINDOW PROPOSING RESERVATIONS FROM THREE DIFFERENT SUPPLY TYPES The Reservation window shows all the supply types that may cover the required quantity on the sales order line.

Susan is not concerned with reserving specific items (serial/lot numbers). the Reservation system will allow the user to reserve that specific serial/lot number in a dedicated window. The lines may contain several sources of supply with different reservation status. Refer to “Handle Serial/Lot Numbers” in this course.Chapter 2: Reserve and Order Track Items 3. 4. Allocated in Warehouse field. The lines show the available supply. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 2-5 . FIGURE 2. including how much of the supply is currently allocated in the warehouse on picks or shipments. Click Functions→Reserve from current line.3 RESERVATION WINDOW SHOWING THAT 4 ARE REQUIRED AND 10 ARE AVAILABLE ON A PURCHASE ORDER LINE. From the sales order.4 FOUR PIECES ARE NOW RESERVED. This is shown in the Qty. so she proceeds to reserve four of the 10 units on the purchase order line. NOTE: If the sales order is for a specific serial and/or lot number. FIGURE 2. The Reservation window header contains information about the demand. In this scenario. click Functions→Reserve.

FIGURE 2. click Line→Reservation Entries. To illustrate this. From the sales order. Depending on item setup. reservations created automatically or manually will also create order tracking links even if the item is not set up for dynamic order tracking. which is mostly for decision making in connection with production planning. she looks up the reservation entries of the sales order. order tracking is merely informational and does not affect availability as do reservations. If the item is not set up for such dynamic order tracking. then order tracking links are only created as a reflection of concrete reservations or planning results. However. Relation to Reservations and Planning Order tracking is managed in the same system that manages reservations and action messages. as such. Accordingly. A more advanced feature of order tracking is that of action messaging (planning suggestions). briefly review the demonstration “Reserve Items on a Purchase Order” by performing the following final step: 2-6 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . To verify this.0 Susan can see from the Reservation window that the units of item 80201are reserved for her sales order. This linking works as information about possible fulfillment within the availability system and. 5. may work as a simple planning tool.5 RESERVATION ENTRIES CREATED BETWEEN THE SALES ORDER AND THE INBOUND PURCHASE ORDER Track Supply and Demand Like reservations. order tracking is the linking of demand to a corresponding supply. the program creates order tracking links dynamically to reflect possible order fulfillment.Inventory Management in Microsoft Dynamics™ NAV 5.

Chapter 2: Reserve and Order Track Items From sales order 1001. the program creates order tracking links between demand and a corresponding supply that is created by the planning system. although item 80201 is not set up for dynamic order tracking. FIGURE 2. Set Up Order Tracking Each item can be set up to create order tracking links by selecting one of three different options in the Order Tracking Policy field on the Planning tab of the item card: • • • None Tracking Only Tracking & Action Msg. only as a result of concrete reservations or planning results. The order tracking setup options define the following system reactions: • None: Order tracking links are not created dynamically. refer to the “Manufacturing II” course. For detailed information on order tracking and action messages in planning. click Functions→Order Tracking. A typical example of this is the order tracking between a sales order and a purchase order indicating that the existence of the sales order caused the planning run to create the purchase order. For the same reason as for reservations.6 ORDER TRACKING INFORMATION CREATED AS A RESULT OF A RESERVATION Notice that the four reserved pieces are now also reflected as order tracking links between the sale and the purchase. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 2-7 .

• No other setup is required for order tracking. 1. so to make sure they will be available she uses order tracking and sees that they are inbound on a purchase order with a receipt date of 01/20/08. the order processor.0 • Tracking Only (also called dynamic tracking): The program creates order tracking links as soon as the user creates an order that may be offset by an existing order. look up in the Order Tracking Policy field and select Tracking Only. Proceed to buy and sell it.Inventory Management in Microsoft Dynamics™ NAV 5. Tracking & Action Msg: In planning. 4. 2. is about to promise to a customer the sale of eight Performance Keyboards. this option means the same as above. FIGURE 2. Begin by setting the item up for dynamic order tracking. She knows these items are not on inventory. Demonstration . Create a new purchase order from any vendor for 20 pieces of item 80212 to BLUE location with receipt date on 01/20/08. plus the program creates action messages for net change planning purposes. The item is now set up for order tracking.7 PURCHASE ORDER FOR 20 PERFORMANCE KEYBOARDS 2-8 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . item 80212 on 01/24/08. Click Purchase→Planning→Items and scroll to item 80212. Click Purchase→Order Processing→Orders.Track to a Purchase that Matches a Sale Scenario: Susan. On the Planning tab. 3.

To verify that the items will be available on 01/24/08. 9. Proceed to create the sales order. Click Sales & Marketing→Order Processing→Orders. 7. Create a new sales order to any customer for eight pieces of item 80212 from BLUE location with shipment date on 01/24/08.Chapter 2: Reserve and Order Track Items The purchase order is created. click Functions→Order Tracking. Susan uses order tracking to see if a matching supply exists. 6. FIGURE 2. FIGURE 2. 5. From the sales order. Susan uses order tracking to see if a matching supply exists. To verify that the items will be available on the shipment date. click Functions→Order Tracking.8 ORDER TRACKING LINK TO THE PURCHASE ORDER 8.9 ORDER TRACKING LINK FROM THE DEMAND TO THE SUPPLY Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 2-9 . Create a new sales order to any customer for eight pieces of item 80212 from BLUE location with shipment date on 01/24/08. From the sales order.

From the Order Tracking window. a lookup from the Untracked Quantity field will never yield any additional information. When using order tracking in supply planning.10 ORDER TRACKING LINK FROM THE SUPPLY TO THE DEMAND Now the Order Tracking windows shows that eight pieces on the purchase order are linked to eight pieces on the sales order.0 The Order Tracking window shows that the full sales quantity of eight pieces is covered by purchase order 106024. a lookup from the Untracked Quantity field will show order tracking links to the following other types of demand: • • • Planning parameters Production forecasts Blanket sales orders For detailed information about using this information in the Untracked Planning Elements window. Susan uses order tracking in the other direction: from the supply to the demand. like purchase and sales orders. To be absolutely sure that the purchase order is linked to her sales order.Inventory Management in Microsoft Dynamics™ NAV 5. click Show. Click Functions→Order Tracking. the Untracked Quantity field shows zero. meaning that no link is made for this quantity. Susan decides to take a closer look at the purchase order. 11. The remaining 12 pieces is an untracked quantity. 10. 2-10 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Purchase order 106024 opens. FIGURE 2. refer to the “Manufacturing II” course. through the requisition worksheet or planning worksheet. In connection with order tracking between actual supply and demand windows.

This includes pure order suggestions and planned production orders. Reserve / Order Track Reserve / Order Track Order Track (Only if resulting from a planning run) Order Track Reserve / Order Track Reserve / Order Track Order track to sales quote only Reserve / Order Track (Reservation only against firm planned and released components) Order Track (Only if resulting from a planning run) Order Track (Only if resulting from a planning run) Order Track (in Untracked Quantity field) Order Track (in Untracked Quantity field) Order Track (in Untracked Quantity field) MRP Line MRP Component Planning Parameter Production Forecast Blanket Sales Orders Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 2-11 . Order Tracking As illustrated in this chapter. Order Line Simulated Prod. Order line Firm Planned Prod. on the other hand. The following table shows which order network entities can be order tracked and which can be reserved: Name Item Ledger Entry Sales Quote Sales Order Purchase Order Requisition line Planned Prod. Order tracking. Order line Released Prod. order tracking is managed within the reservation system but with a distinct difference from reservations: reservations are only possible against order network entities that are part of the availability calculation and have a status higher than planned (scheduled availability). Order Component Option Reserve / Order Track Can only be order tracked to a simulated production order and vice versa. is possible against any order network entity that takes part in the net requirement calculation by the planning run. Order Line Prod.Chapter 2: Reserve and Order Track Items Reserving vs.

In the case of reservations.Inventory Management in Microsoft Dynamics™ NAV 5. Both reservations and order tracking links help order processors and planners meet customer requirements without increasing inventory carrying costs. the link locks the two together and thereby excludes the supply from availability until posting or cancellation. Order tracking.0 Summary Reservations and order tracking links are managed in the same system and serve similar purposes. on the other hand. namely to link demand with supply. is merely informational and can dynamically link all types of supply and demand. 2-12 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .

Which of the following types of supply can be reserved? (Select all that apply. With a setup option of None.Chapter 2: Reserve and Order Track Items Test Your Knowledge 1. What is the purpose of the reservation feature? 3. when are order tracking links created? (Select all that apply.) ( ) Between a sales order and a matching production order that is created by the planning system ( ) Between a sales order and its reserved purchase order ( ) Between a sales order and its reserved production order ( ) Between a sales order and a matching purchase order Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 2-13 .) ( ) Released production order line ( ) Sales order ( ) Planned production order line ( ) Item ledger entry 4. Which setting must you select if you sometimes want to manually reserve an item? ( ) Sometimes ( ) Never ( ) Optional ( ) Always 2.

Inventory Management in Microsoft Dynamics™ NAV 5.0 5. What is the purpose of the order tracking feature? 2-14 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .

3. 2.Chapter 2: Reserve and Order Track Items Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter: 1. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 2-15 .

Inventory Management in Microsoft Dynamics™ NAV 5.) (√) Between a sales order and a matching production order that is created by the planning system (√) Between a sales order and its reserved purchase order (√) Between a sales order and its reserved production order ( ) Between a sales order and a matching purchase order 5.) (√) Released production order line ( ) Sales order ( ) Planned production order line (√) Item ledger entry 4. 3. With a setup option of None. either as a result of reservation or planning or as a dynamic matching of potential order fulfillment. Which of the following types of supply can be reserved? (Select all that apply. when are order tracking links created? (Select all that apply. Which setting must you select if you sometimes want to manually reserve an item? ( ) Sometimes ( ) Never (•) Optional ( ) Always 2.0 Solutions Test Your Knowledge 1. What is the purpose of the order tracking feature? MODEL ANSWER .To view system-created links between supply and demand. 2-16 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .To make a firm link from a demand to a supply that blocks the supply from being available to other demands. What is the purpose of the reservation feature? MODEL ANSWER .

Introduction Many modern companies have their organization and operations distributed over large geographic areas. yet optimal way. companies can manage their inventory in multiple locations using one database. and vendors to responsibility centers. Such an approach to organizing their business helps companies gain competitive advantage through achieving operational flexibility and customer responsiveness. Set up responsibility centers. are the cornerstone of this granule. Create sales and purchase orders for multiple locations. With the Multiple Locations granule. The Multiple Locations and Responsibility Centers granules in Microsoft Dynamics™ NAV provide companies that have multiple sites the opportunity to manage their business operations in a flexible. A location is defined as a place that handles physical placement and quantities of items. Link customers and vendors to locations. such companies must ensure that the real-time information generated at the location level is available to the rest of the organization. Link users. Create and set up stockkeeping units. At the same time. customers. Get an overview of Cronus setup data. List multi-location setup guidelines. Two concepts. with each unit being managed independently.Chapter 3: Use Multiple Locations CHAPTER 3: USE MULTIPLE LOCATIONS Objectives The objectives are: • • • • • • • • Set up a company with multiple locations. The concept is broad enough to include locations such as: • • • • • Plants or production facilities Distribution centers Warehouses Showrooms Service vehicles Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-1 . companies with multiple locations face the challenge of retaining control over their decentralized operations and optimizing the inventory flows. location and stockkeeping unit. To meet this challenge.

located in London. Set Up a Company with Multiple Locations The first half of this chapter discusses how to use the Multiple Locations granule to set up your company with multiple locations to reflect its current and future administrative and geographic configuration. The second half explains the implications that alternative setup options have on the company's business processes in respect to making sales and purchase orders. The Responsibility Centers granule extends the multiple locations functionality by providing the possibility of handling administrative centers. First. 3-2 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . and five warehouses located in other cities around the country. which administers all purchases and sales. With this granule. Cronus International Ltd. With the stockkeeping units.0 A stockkeeping unit is defined as an item or a variant of an item at a specific location. and a plant planning office. a purchasing department for several locations. the Multiple Locations granule and then the Responsibility Centers granule are demonstrated by reviewing the logistical setup of the Cronus demonstration company. and some financial posting information on the location level.Inventory Management in Microsoft Dynamics™ NAV 5. and a number of warehouses where inventory is handled and stored. As a result. a company's structure is represented by a head office. The central warehouse then transfers inventory to all other warehouses. addresses. The company follows a centralized purchase policy. companies with multiple locations are able to add replenishment information. A responsibility center can be: • • • A cost center A profit center An investment center Examples of responsibility centers are a sales office.Review a Centralized Warehouse Setup In the following demonstration. they can replenish variants of the same item for each location as well as order items for each location on the basis of location-specific replenishment information. has five physical premises: the headquarters. Scenario: To run its business in the United Kingdom. companies can set up user-specific views to show only sales and purchase documents related to a particular responsibility center. Demonstration . Note that the Multiple Locations and the Responsibility Centers granules can be implemented independently. which operate as distribution centers from which sales orders are shipped to the customers. The warehouse in Birmingham functions as a central warehouse to which most of the company's vendors ship their items.

Fields on the General tab contain the address details of the Cronus company headquarters: FIGURE 3. the program fills in the various ship-to fields on the Shipping tab with the address details of the company's headquarters. The Company Information window appears. The information in these fields is then printed on purchase orders. Click Administration→Application Setup→General→Company Information.2 SHIPPING INFORMATION OF THE CRONUS COMPANY HEADQUARTERS By default. The general company information is recorded on the company information card. However. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-3 . if the company's warehouse is located at a different address than the headquarters. FIGURE 3. so that vendors ship items to the correct location. the user can overwrite information in the ship-to fields with the location's address. Click the Shipping tab. for example.1 GENERAL INFORMATION OF THE CRONUS COMPANY HEADQUARTERS 2. 1.Chapter 3: Use Multiple Locations Look at how Cronus reflects their organizational configuration in the Microsoft Dynamics NAV setup.

for example. the location card is used to record information about the company's locations. BEST PRACTICE: It is recommended that companies set up at least one location. location is defined as a physical place where items are produced. a production plant. Companies must set up a location card and a location code for each of their locations. Location codes are set up on individual location cards. 3.0 In the Location Code field. FIGURE 3. where they record inventory increases and decreases. The purpose of setting up locations in Microsoft Dynamics NAV is to make a distinction between where different locations are geographically located and how they handle inventory. The address information held on the location card is printed on the purchase documents to notify vendors to which locations they must ship the ordered items. the program automatically uses the warehouse location represented by the code.Inventory Management in Microsoft Dynamics™ NAV 5. the Item Availability by Location window only shows the quantities in the different locations but does not show any quantity that does not belong to a location. On the location card. whenever the purchasers order items are shipped to the company. and stored before being sold. For example. The Location Card window appears. If the field contains a code. Click Administration→Application Setup→Warehouse→Locations. If no location is set up. In Microsoft Dynamics NAV.3 LIST OF LOCATIONS SET UP IN CRONUS 3-4 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .” it is difficult to discern that quantity in Microsoft Dynamics NAV. handled. press F5 to view the Location List window. 4. Generally.” If part of the inventory quantity is on the “blank location. or a distribution center. A location can be. the user can select the location code that corresponds to the company's ship-to address. a warehouse. the program uses a “blank location.

Chapter 3: Use Multiple Locations
Cronus has set up eight locations: six represent warehouses and two, OUT. LOG. and OWN LOG., are the in-transit locations. For more information on in-transit location, refer to “Location Transfers” in this course. By selecting a location on the list and clicking Location→Card, you can see the address and setup details for each location. The distribution center in Birmingham, represented by location code BLUE, is the location that Cronus wants its vendors to ship ordered items to. To set up this process in the program, follow this procedure: 5. Reopen the Company Information window and on the Shipping tab, enter BLUE in the Location Code field. Cronus is now set up to use BLUE location as the main receiving location for purchase orders.

FIGURE 3.4 BLUE LOCATION SET UP AS THE MAIN RECEIVING LOCATION OF ITEMS SHIPPED TO CRONUS

Link Customers and Vendors to Locations
For a number of reasons, such as to ensure fast deliveries to their customers or to optimize purchase processes with some vendors, companies may choose to pursue a decentralized distribution strategy. Such a strategy suggests that instead of one central warehouse, vendors ship purchase orders to different locations, which then ship the sales orders to the customers. To reflect these procedures in the program, the company can link certain customers and vendors to specific locations. The following is an example of a situation where a company that implemented a decentralized distribution policy chooses to link some of their customers and vendors to specific locations. As in the previous example, the company has a head office and a number of warehouses located at different geographical locations.

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

3-5

Inventory Management in Microsoft Dynamics™ NAV 5.0
Demonstration - Review a Decentralized Warehouse Setup
Scenario: Cronus customer 40000, Deerfield Graphics Company, is located in Gloucester. Due to the customer's proximity to the YELLOW warehouse, the company has established a procedure by which they always ship items to this customer from this specific warehouse instead of the central warehouse represented by the default BLUE location. Similarly, Cronus has decided that one of its vendors, vendor 40000, will always ship orders to its GREEN warehouse located in Liverpool. To reflect these procedures in the program, the company links customer 40000 to the YELLOW location and links vendor 40000 to the GREEN warehouse. To link a customer to a location, the user must select a default location code on the customer card: 1. Click Warehouse→Orders & Contacts→Customers. 2. Select customer 40000 and click the Shipping tab.

FIGURE 3.5 CUSTOMER 4000 SET UP TO HAVE ITEMS SHIPPED FROM YELLOW LOCATION

Notice that the Location Code field contains the code for the YELLOW warehouse. The program uses this code as a default location code every time the user makes a sales order for this customer.

3-6

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Chapter 3: Use Multiple Locations
Similarly, to link a vendor to a location, the user must select a default location code on the vendor card. 3. Click Warehouse→Orders & Contacts→Customers. 4. Select vendor 40000 and click the Receiving tab.

FIGURE 3.6 VENDOR 4000 SET UP TO HAVE ITEMS RECEIVED AT GREEN LOCATION

Notice that the Location Code field contains the code for GREEN location. The program uses this code as a default location code every time the user makes a purchase order from this vendor. The implications that this setup has on where addresses on different documents come from are discussed in this chapter. Aditionally, you will see how the company uses the Multiple Locations granule functionality granule to distinguish between different locations and manage inventory at each specific location.

Set Up Responsibility Centers
With the Responsibility Centers granule, companies can set up responsibility centers to help administer their business. For example, a responsibility center can administer sales and purchases for one or more warehouses or distribution centers, where goods are handled and stored prior to being sold. With this functionality, companies can set up user-specific views to show only sales and purchase documents related to a particular responsibility center. The following demonstrates a situation where a company chooses to set up two responsibility centers.

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

3-7

Inventory Management in Microsoft Dynamics™ NAV 5.0
Demonstration - Review Responsibility Center Setup
Scenario: To optimize their business operations on the United Kingdom market and to be closer to their customers, Cronus International Ltd. divides their activities into two main geographical areas: the Central area and the Southern area. Each of these areas is administered through a responsibility center. The London responsibility center administers the southern area, while the Birmingham responsibility center is responsible for the central area. Remember that the company also has six warehouses located in these two areas. In the Central area, the BLUE warehouse operates as a central warehouse to which most of the vendors in the area ship their purchase orders, while in the Southern area, vendors ship the orders to different warehouses. Notice how Cronus reflects their organizational configuration in the Microsoft Dynamics NAV setup. First, look at the responsibility center cards. 1. Click Administration→Application Setup→General→Company Information. 2. Click Company→Responsibility Centers. The Responsibility Center Card window appears. 3. Open the card for the Birmingham responsibility center.

FIGURE 3.7 BIRMINGHAM RESPONSIBILITY CENTER SHOWING DEFAULT LOCATION BLUE

Fields on the General tab of the responsibility center card specify the code and the name for the responsibility center as well as address details. Each responsibility center has a name, such as the address of the regional office, as well as a code representing the name. The user can apply this responsibility center code elsewhere in the program. For example, when the user enters a responsibility center code on purchase and sales documents, it affects the address and dimensions on the documents.

3-8

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Chapter 3: Use Multiple Locations
The Location Code field contains the code of a default warehouse, which in this case is the Blue warehouse. Physical transactions administered by the Birmingham responsibility center take place at this location. Entering a location code here makes that location the automatic default on all sales and purchase documents with this responsibility center. Another responsibility center for Cronus is located in London:

FIGURE 3.8 LONDON RESPONSIBILITY WITHOUT A DEFAULT LOCATION

Note that the London responsibility center does not have a default location code.

Link Responsibility Centers
Having multiple locations can create problems in terms of who can access what. In Microsoft Dynamics NAV, it is possible to assign permission for different users to perform activities in relation to the different responsibility centers. In this way, the company can ensure that a specific user only gets access to the data relevant for that user's responsibility center. For detailed information on setting up roles and permissions, refer to the “Application Setup” course. Once a user is defined and assigned to a responsibility center, the program automatically selects the responsibility center linked to this specific user every time the user logs on with their own user ID. Specifically, this means that users can make sales and purchases only from the responsibility center indicated in their set of permissions. Also, the responsibility center name appears in the sales and purchase orders as well as in other places in the program where the Responsibility Center field is present. The following is an example of a situation where a company wants to set up their users so that they can create and view sales and purchase documents only related to the responsibility center from which they operate.

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

3-9

A user with the user ID LD-USER has permission to operate only from the London responsibility center. assign new users to specific responsibility centers so that the program can accordingly filter data used when creating transactions. the company must link users to the corresponding responsibility center. The following is the procedure for how to do that. BR-USER and LD-USER FIGURE 3. Now. On the menu bar. Leave the Password and Expiration Date fields blank. To reflect these procedures in the program. 5.Link Users to Responsibility Centers Scenario: Cronus has two responsibility centers. click Tools→Security→Database Logins. First. 3-10 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Create three users with the user IDs: ALL. In the Role ID field. Select user ID ALL and click Roles to open the Roles window. select SUPER.9 THREE USER IDS CREATED 3. 1. The company has decided to set up three main users according to the following considerations: • • • A user with the user ID ALL has all the permissions. 4. Repeat steps 4 and 5 for the user IDs BR-USER and LD-USER. A user with the user ID BR-USER has permission to operate only from the Birmingham responsibility center.Inventory Management in Microsoft Dynamics™ NAV 5. 2.0 Demonstration . one in London and another one in Birmingham. 6. create the users and assign roles to them.

To reflect these business practices. A similar process may exist for vendors. In the Sales Resp. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-11 . The corresponding responsibility center code defaults on the sales order header as well as on the printout of the sales order. the company is able to track their performance toward customers for each specific responsibility center. select Birmingham for the user with the BR-USER as user ID to indicate that this user is linked to the Birmingham responsibility center and has permission to make sales. The following is an example of a situation where a company chooses to link some of their customers and vendors to a specific responsibility center. Filter. Ctr. Demonstration .10 LD_USER LINKED TO LONDON NOTE: Always have one user configured as ALL. In addition.Link Customers and Vendors to Responsibility Centers Companies often have established processes whereby certain customers are always administered from a specific sales responsibility center. companies may want to use the program's functionality to link their customers and vendors to certain responsibility centers. 10. Purchase Resp. Ctr. Click Administration→Application Setup→Users→User Setup. FIGURE 3. Create three lines for each of the newly created users by selecting the corresponding user IDs in the User ID field. suppose that a salesperson creates a sales order for a customer that is linked to a specific responsibility center. link the user with the user ID LD-USER to the London responsibility center. purchase and service orders from this center. 7. Similarly. Ctr. As an example of this feature. so that there is always a user ID with all the permissions.Chapter 3: Use Multiple Locations Set up permissions for users in the User Setup window. Filter fields. 8. 9. Filter and Service Resp.

Similarly. 10000. one of its vendors. To help the responsibility centers fulfill their new role. each responsibility center is responsible for improving its relationship with key vendors. the user must select a responsibility center code on the customer card. 2. To link a customer to a responsibility center. Click Warehouse→Orders & Contacts→Customers.11 CUSTOMER 10000 IS LINKED TO THE BIRMINGHAM RESPONSIBILITY CENTER Notice that the Responsibility Center field on the General tab contains the code for the Birmingham responsibility center.Inventory Management in Microsoft Dynamics™ NAV 5.0 Scenario: As a part of their strategy to increase customer responsiveness and improve customer care. Cronus has placed the responsibility for key customers with each individual responsibility center. 1. Similarly. 3-12 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . FIGURE 3. Cronus has chosen to link its customers 10000 and 50000 to the Birmingham and London responsibility centers. is linked to the London responsibility center. Open the customer card for customer 50000 to see that this customer is linked to the London responsibility center. Look at how Cronus reflects this business pattern in their setup of Microsoft Dynamics NAV setup. Browse to the customer card for customer 10000. respectively.

However. 3. FIGURE 3. Browse to the vendor card for vendor 10000. Click Warehouse→Orders & Contacts→Vendors. the user must select a responsibility center code on the vendor card. multi-site companies can exercise a high degree of flexibility when setting up their organizations in the program.12 VENDOR 10000 IS LINKED TO THE LONDON RESPONSIBILITY CENTER Guidelines for Setting Up a Company with Multiple Locations As previously illustrated. to link a vendor to a responsibility center. Select a default location code for each responsibility center. with the two granules in Microsoft Dynamics NAV.Chapter 3: Use Multiple Locations Similarly. In this case. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-13 . they follow the general guidelines for setup as follows: • • • Link responsibility centers to the users. it is recommended that companies choose one of the two following generic approaches to the setup: • • The user-focused approach The account (customer/vendor)-focused approach The companies where the user perspective is of a higher priority than that of the account may want to choose the user-focused approach. Do not select default location codes for the accounts. Multiple Locations and Responsibility Centers.

NOTE: The demo database for Cronus does not reflect the above-mentioned approaches. 3-14 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . companies can follow the general guidelines for setup: • • • Select default responsibility centers and location codes for the accounts. companies may want to choose the account-focused approach. In this case.Inventory Management in Microsoft Dynamics™ NAV 5.0 Where the account perspective is of a higher priority than the user. Do not link responsibility centers to the users. Do not select default location codes for the responsibility centers.

you must create a new location card. Press F3 to create a new location card. extends its operations in England and purchases a new warehouse in Brighton.1 – Create and Set Up a New Location Scenario Cronus International Ltd. enter ORANGE in the Location Code field. Challenge Yourself Your tasks are as follows: 1. The new location is called Orange Warehouse and it has the location code ORANGE. Click Warehouse→Inventory→Setup. (Additional setup can be made later. 9. 8. Open the card for vendor 10000. 7. Open the Receivingtab.) Proceed to link the location to selected vendors. enter ORANGE . 2. Cronus management decides that vendors 10000 and 50000 will use this new warehouse as a ship-to location. In the Namefield. Set up this new location in the program. 2. 6. 5. Set the orange location as the default location for vendors 10000 and 50000. Open the card for vendor 50000. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-15 . 3. Step by Step 1. 4. In the Codefield. Open the Receivingtab.Chapter 3: Use Multiple Locations Lab 3. enter ORANGE in the Location Code field. Click Warehouse→Orders & Contacts→Vendors. The new location is created. enter Orange Warehouse. To do so.

Inventory Management in Microsoft Dynamics™ NAV 5.0

Lab 3.2 – Create and Set Up a New Responsibility Center
Scenario As Cronus business in northern England increases, the company decides to open a new office in Manchester, which acts as a profit center administrating sales and purchases in the area. A warehouse located in Liverpool and represented by the location code GREEN is chosen as a default location for this responsibility center. Employees responsible for sales and purchases at the Manchester responsibility center will have their own user IDs, which allow them to perform the respective processes only from this responsibility center. Among other things, management also decides to administrate all deals with customer 30000 from the Manchester responsibility center.

Challenge Yourself
Your tasks are as follows: 1. Set up this new administrative office in the program. To do so, you must create a new responsibility center card. The new responsibility center will have the responsibility center code Manchester. 2. Set location Green as a default location for this responsibility center. 3. Set up at least one user at the Manchester responsibility center with the permission to make both sales and purchase orders from this center. First, create this user in the program with the MNC-USER user ID. Then set up permissions for this user. 4. Set the Manchester responsibility center as a default for customer 30000.

Step by Step
1. 2. 3. 4. Click Administration→Application Setup→Responsibility Centers. Press F3 to create a new responsibility center card. In Codefield, enter MANCHESTER. In the Location Codefield, enter GREEN. The responsibility center is created (additional setup can be made later.) Proceed to create a new user. 5. 6. 7. 8. Click Tools→Security→Database Logins. On a new line, enter MNC-USER in the User IDfield. Click Roles. In the Role IDfield, enter SUPER. The new user is created. Proceed to make the user setup.

3-16

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Chapter 3: Use Multiple Locations
9. Click Administration→Application Setup→Users→User Setup. 10. On a new line, enter MNC-USER in the User IDfield. 11. In the three responsibility center fields, enter MANCHESTER. The new user setup is created. Proceed to link the new responsibility center to customer 30000. 12. Click Warehouse→Orders & Contacts→Customers. 13. Open the card of customer 30000. 14. In the Responsibility Centerfield, enter MANCHESTER.

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

3-17

Inventory Management in Microsoft Dynamics™ NAV 5.0

Lab 3.3 – Set Up a Multi-site Company
Challenge Yourself
Using an example of a multi-site company that you may be familiar with, suggest a setup for this company in Microsoft Dynamics NAV. Discuss your considerations and findings in a class and/or with an instructor.

3-18

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Chapter 3: Use Multiple Locations

Overview of Cronus Organizational Setup
The overview of the Cronus organizational setup is summarized in the following tables. This includes the setup presented in scenarios 2-5 of this section as well as the setup performed in Lab 3.1 - Create and Set up a New Location and Lab 3.2 Create and Set up a New Responsibility Center. Responsibility Center Birmingham London Manchester Default Location Code Blue no default location Green Comments As set up in the demo data As set up in the demo data Setup performed during exercises 1 and 2

Customer No. 10000 20000 30000

Responsibility Center (RC) Birmingham no default RC Manchester

Default Location Code Blue no default location no default location Yellow no default location Default Location Code Orange

Comments As set up in the demo data As set up in the demo data Setup performed during exercises 1 and 2 As set up in the demo data

40000 50000

no default RC London

Vendor No. 10000

Responsibility Center (RC) London

Comments Setup performed during exercises 1 and 2 As set up in the demo data As set up in the demo data Setup performed during exercises 1 and 2

30000 40000 50000

no default RC no default RC no default RC

no default location Green Orange

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

3-19

Inventory Management in Microsoft Dynamics™ NAV 5.0

Sell and Purchase in a Company with Multiple Locations
If you do not have responsibility centers, you can simply link customers and vendors to different locations. This section discusses what implications the alternative setups have on the company's business processes, with respect to making sales and purchase orders. To illustrate these implications, refer to the different setup scenarios described in the previous section. Before doing so, however, pay attention to the priority in which location codes and responsibility centers appear on the sales and purchase documents.

Priorities
In Microsoft Dynamics NAV, there is a pattern according to which the program applies the responsibility centers and locations codes to the sales and purchase documents. This pattern is based on a priority issue. The following table shows the priority rules that determine which responsibility center must appear on the sales and purchase documents: The User Setup Card Priority 1 Priority 2 Priority 3 * no default RC no default RC * no default RC * The Company Information Card The Customer/ Vendor Card

Read the table as follows: • If you selected a responsibility center as the default on the user setup card, the program will always apply this responsibility center to the sales and purchase documents. If you did not select a default responsibility center on the user setup card, the program will apply the responsibility center that you selected as the default on the company information card to the sales and purchase documents. If you did not select a default responsibility center on the user setup card, and did not select a default responsibility center on the company information card, the program will apply the responsibility center that you selected as the default on the customer or vendor cards to the sales and purchase documents respectively.

3-20

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Scenario: The setup: A head office with a default ship-to location. If you did not select a default location code on the customer or vendor card.Purchase in a Centralized Distribution System Consider the following scenario and its implications for the purchase document. • • The following section describes specific situations in which the program applies a responsibility center or a location code to sales and purchase documents.Chapter 3: Use Multiple Locations The following table shows the priority rules that determine which location should appear on the sales and purchase documents: The Customer/ Vendor Card Priority 1 Priority 2 Priority 3 * no default location no default location * no default location * The Responsibility Center Card The Company Information Card You read the table as follows: • If you selected a location code as the default on the customer or vendor cards. the program applies this location code to the sales and purchase documents respectively. (See the demonstration “Review a Centralized Warehouse Setup”): Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-21 . The program applies a responsibility center according to the rules described on the previous page. depending on the setup of the multi-site company. instead of going through all the scenarios you may just choose to have a closer look at the selected few that are of interest to you. the program will apply the location code selected as the default on the responsibility center card to the sales and purchase documents. the program applies the location code selected as the default on the company information card to the sales and purchase documents. If you did not select a default location code on the customer and vendor cards. However. These situations are described in the form of scenarios that represent different setups. Demonstration . and you did not select a default location code on the responsibility center card or you have not set up responsibility centers in the program.

.13 PURCHASE ORDER FOR VENDOR 30000 Notice that the program has automatically filled in the Location Code field on the Shipping tab and on the purchase line with BLUE. Now. The vendor's address is in the top-left corner of the document. 1. and Quantity fields in the Purchase Order window with the corresponding information. On the company information card. 3-22 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Create the purchase order for vendor 30000. The address in the top-right corner is the company's headquarters address that the company set up in the Company Information window. FIGURE 3. In the Purchase Order window. A purchaser in Cronus creates a purchase order for vendor 30000 for ten units of item 70000. Consider the following scenario and its implications for the purchase document. Type. This address is for the Blue warehouse.0 Cronus has one head office set up on the company information card and a number of locations represented by warehouses. view the printout of the purchase order document that Cronus sends to their vendor. the location code BLUE is set up as a default ship-to location.. 2. The Print Preview window appears. Click the Preview button. Fill in the Buy-from Vendor No. The bottom-left corner displays the ship-to address that the vendor ships the ordered items.Inventory Management in Microsoft Dynamics™ NAV 5. No. click Print. with the Blue location being a central warehouse.

Fill in the Buy-from Vendor No. Consider the following scenario and its implications for the sales document. 1.Purchase from a Vendor Linked to a Warehouse Scenario: The setup: A head office with a default ship-to location. “Review a Decentralized Warehouse Setup”) Cronus has one head office set up on the company information card and a number of locations represented by warehouses.. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-23 . one warehouse is a default location for a vendor..Chapter 3: Use Multiple Locations Demonstration . The location code GREEN is set as a default for vendor 40000 on the vendor card.14 SALES ORDER FOR CUSTOMER 40000 Notice that the program has automatically filled in the Location Code field on the Shipping tab and the purchase line with GREEN. with the Blue location being a central warehouse. Type. No. The location code Blue is set up as the default ship-to location on the company information card. Create the purchase order for vendor 40000. (See the demonstration. FIGURE 3. A purchaser in Cronus creates a purchase order for vendor 40000 for 25 units of item 70001. and Quantity fields in the Purchase Order window with the corresponding information.

(See the demonstrations “Review responsibility Center Setup” and “Link Users to Responsibility Centers”) Cronus has one head office set up on the company information card. In the Login window. create a new sales order: 3. log on as BR-USER: 1. The location code Blue is set up as a default for the Birmingham responsibility center. Click OK.Sell as a User Linked to a Responsibility Center Scenario: The setup: A head office with a default ship-to location. First. a number of locations represented by warehouses.15 LOGGING IN AS BR-USER 2. enter br-user in the User ID field and no password.Inventory Management in Microsoft Dynamics™ NAV 5. Create the sales order for customer 20000 from the Birmingham responsibility center. Click Sales & Marketing→Order Processing→Orders. one warehouse is a default location for a responsibility center. Customer 20000 does not have a default location code set up.0 Demonstration . a user is linked to the responsibility center. Now. 3-24 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . and three responsibility centers. A user with user ID BR-USER is linked to the Birmingham responsibility center. A salesperson at the Birmingham responsibility center makes a sales order for customer 20000 and 10 units of item 70000. FIGURE 3.

Type.17 SALES ORDER LINE FILLED IN Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-25 . FIGURE 3. 5..Chapter 3: Use Multiple Locations 4.. Fill in the Sell-to Customer No. The Location Code field on the Shipping tab contains BLUE. Notice that the Responsibility Center field on the General tab is automatically filled in with BIRMINGHAM.16 NEW ORDER CREATED BY BR-USER IS AUTOMATICALLY MADE FOR BIRMINGHAM RESPONSIBILITY CENTER. No. and Quantity fields in the Sales Order window with the corresponding information. Press F3 to create a new order. because this is the default location for the Birmingham responsibility center. FIGURE 3.

Press F3 to create a new order. Now you can see how these different addresses appear on the printout of the sales order to be sent to the customer for confirmation: 6. and three responsibility centers. a number of locations represented by warehouses. A user with user ID LD-USER is linked to the London responsibility center. 2. The location code BLUE is set up as a default ship-to location on the company information card. “Link Users to Responsibility Centers”. Consider the following scenario and its implications for the purchase document. In the Order Confirmation window. click Preview. The London responsibility center does not have a default location code.Purchase as a User Linked to a Responsibility Center with No Default Location Scenario: The setup: A head office with a default ship-to location. Log in as LD-USER. Click Print→Order Confirmation. 3-26 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . and “Link Customers and Vendors to Respnsibility Centers”) Cronus has one head office set up on the company information card. A purchaser in the London responsibility center creates a purchase order for vendor 30000. 7. 1. This code is copied from the Shipping tab. In this case. a user is linked to a responsibility center with no default location. Demonstration . Create the purchase order for vendor 30000 from the London responsibility center. for ten units of item 70200. The topright corner of the document contains the address of the responsibility center that the sales order has been made for. The customer's sell-to address is in the top-left corner of the document. it is the Birmingham responsibility center. (See the demonstrations “Review a Centralized Warehouse Setup”. 3. Click Purchase→Order Processing→Orders.Inventory Management in Microsoft Dynamics™ NAV 5.0 Notice that the program has automatically filled in the Location Code field on the sales lines with BLUE.

and Quantity fields in the Purchase Order window with the corresponding information. The top-right corner of the document contains the address of the responsibility center that the purchase order has been made for. The vendor's address is in the top-left corner of the document. If Cronus did not have a default location set up on the company information card. The bottom-left address is the recipient's address. Type. FIGURE 3. No. The Location Code field on the Shipping tab is filled in with BLUE. Fill in the Buy-from Vendor No. This code is copied from the Shipping tab. Now. The last two scenarios illustrated how the program uses the address information in situations when a user is linked to a specific responsibility center.Chapter 3: Use Multiple Locations Notice that the Responsibility Center field on the General tab is automatically filled in with LONDON.. In this case it is the London responsibility center. the ship-to address will be the company's general address. ORDER HEADER IS SET TO LONDON RESPONSIBILITY CENTER. consider scenarios when customers and vendors are linked to a responsibility center or location that is different from the one linked to the user. Notice that the program has automatically filled in the Location Code field on the sales lines with BLUE.18 PURCHASE ORDER LINE CREATED FOR BLUE LOCATION. at the Blue warehouse. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-27 . Look at the printout of the purchase order to see how these different addresses appear on the printout that is sent to the vendor. 4. This is a default location that has been set up for the entire company on the Shipping tab of the company information card.

There is no default location set up for this customer. 3. Press F3 to create a new order and fill in the Sell-to Customer No. Meanwhile. Click Sales & Marketing→Order Processing→Orders. and three responsibility centers. (See the demonstration “Link Customers and Vendors to Responsibility Centers”) Cronus has one head office set up on the company information card. Log in with user ID ALL. for five units of item 70002. The London responsibility center is the default for customer 50000. A salesperson in Cronus creates a sales order for customer 50000. the Location Code field on the Shipping tab is filled in with BLUE. and Quantity fields in the Sales Order window with the appropriate information. 4. Notice that the Responsibility Center field on the sales header contains LONDON which is a default code for this customer. The location code Blue is set up as a default ship-to location on the company information card.19 SALES ORDER CREATED WITH LOCATION CODE PRESET 3-28 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Create the sales order for customer 50000: 1. The London responsibility center does not have a default location code. No. 2. the customer does not have a default location. a number of locations represented by warehouses. This is a default location that has been set up for the entire company.Sell from a Responsibility Center with No Default Location Scenario: The setup: A head office with a default ship-to location.0 Demonstration .Inventory Management in Microsoft Dynamics™ NAV 5. field with the customer number. Fill in the Type. a customer is linked to a responsibility center with no default location. FIGURE 3.

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-29 . Consider the following scenario and its implications for the sales document. You have accepted that the program will process the sales order from the Birmingham responsibility center. 3.Chapter 3: Use Multiple Locations The program copies the location code to the sales line from the Shipping tab. select customer 50000. and three responsibility centers. 4. a customer is linked to another responsibility center. (See the demonstrations “Link Users to Responsibility Centers” and “Link Customers to Responsibility Centers”) Cronus has one head office set up on the company information card.Sell to a Customer with a Conflicting Responsibility Center Scenario: The setup: A head office with a default ship-to location. Click Sales & Marketing→Order Processing→Orders. Demonstration . A user with user ID BR-USER is linked to the Birmingham responsibility center. a user is linked to a responsibility center with a default location. The London responsibility center is the default for customer 50000. rather than from London responsibility center. Create the sales order for customer 50000 from the Birmingham responsibility center: 1. 2.20 WARNING ABOUT CONFLICTING RESPONSIBILITY CENTERS 5. Log in with user ID BR-USER. The location code Blue is set up as the default for the Birmingham responsibility center. Click OK. You then receive the following warning message: FIGURE 3. field in the Sales Order window. which is the default responsibility center for the customer. A salesperson at the Birmingham responsibility center creates a sales order for customer 50000. Press F3 to create a new order. which is a default responsibility center for the salesperson making the orders. for 15 units of item 70010. In the Sell-to Customer No. a number of locations represented by warehouses.

Create the sales order for customer 40000 from the Birmingham responsibility center. A user with user ID BR-USER is linked to the Birmingham responsibility center. a user is linked to a responsibility center with a default location. Notice that the Responsibility Center field on the sales order header is automatically filled with BIRMINGHAM. while the Location Code field on the Shipping tab contains BLUE. The customer 40000 is not linked to any responsibility center. 3. 2. a number of locations represented by warehouses. who has placed an order for 10 units of item 1896-S. A salesperson at the Birmingham responsibility center creates a sales order for customer 40000. a customer has a default location. 1. Click Sales & Marketing Processing→Orders. (See the demonstrations “Review a Decentralized Warehouse Setup” and “Link Users to Responsibility Centers”) Cronus has one head office set up on the company information card. and three responsibility centers. Log in with user ID BR-USER. Press F3 to create a new order.0 Consider the following scenario and its implications for the sales document. 3-30 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . The location code Blue is set up as the default for the Birmingham responsibility center.Inventory Management in Microsoft Dynamics™ NAV 5. but has the location code Yellow as default. Demonstration .Sell to a Customer with a Conflicting Default Location Scenario: The setup: A head office with a default ship-to location.

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-31 .Chapter 3: Use Multiple Locations 4. Notice that the Location Code field on the Shipping tab now contains YELLOW.21 THE LOCATION CODE OF THE CUSTOMER OVERRIDES THE USER'S DEFAULT LOCATION The program copies the location code to the sales line from the Shipping tab. Fill in the Type. and Quantity fields in the Sales Order window with the appropriate information: FIGURE 3. No. Fill in the Sell-to Customer No. 5.

Enter 40000 in the Buy-from Vendor No. you can view the print previews of the documents.0 Lab 3. 8.field. 4. 5.Inventory Management in Microsoft Dynamics™ NAV 5. In the Quantityfield. as defined in the Company Information window. enter 30. 10. 3. Instead of printing. click Print→Preview. Press F3 to create a new purchase order. On a purchase line. Enter 20000 in the Buy-from Vendor No. Press F3 to create a new purchase order. 9. 6. the Cronus company address in n the top right corner is that of the company's default address (whenno responsibility center is linked). 7. Challenge Yourself Your tasks are as follows: 1. 2. 3-32 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . The ship-to address (at the bottom) is that of the Cronus Yellow Warehouse.field. the Cronus company address in the top right corner is that of the London responsibility center. The ship-to address (at the bottom) is that of the Cronus Green Warehouse. Create the two purchase orders. Log on to NAV as ALL. 11. enter 70000 in the Item No.field. From each purchase order. 3. On a purchase line.4 – Create Purchase Orders in a Company with Multiple Locations Scenario A purchaser at Cronus needs to buy 70 units of item 70000 from vendor 20000 and 30 units of item 70200 from vendor 40000. Step by Step 1. 2.field. On the first purchase order (for 70 pieces). as linked to vendor 2000. On the second purchase order (for 30 pieces). enter 70. In the Quantityfield. Explain where the addresses on the purchase documents come from. Click Purchase→Order Processing→Orders. HINT: Make sure that you are logged on as ALL. Make printouts of the two purchase documents that will be sent to the vendors. enter 70200 in the Item No.

4. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-33 . 6. Create the sales order. Press F3 to create a new sales order. 4. Print the sales document that will be sent to the customer for confirmation. Log on to NAV as MNC-USER Click Sales & Marketing→Order Processing→Orders. enter 1896-s in the Item No.Chapter 3: Use Multiple Locations Lab 3. 2. YELLOW. Notice that. Enter 40000 in the Sell-to Customer No. the location code on the sales line uses the location code that is linked to customer 4000. Challenge Yourself Your tasks are as follows: 1. Explain where the addresses on the sales document come from. who has placed an order for 25 units of item 1896-S. On a sales line. although the sales person is in Manchester. a salesperson at the Manchester responsibility center needs to make a sales order for the customer 40000.field. Step by Step 1. you may just view the print preview of the document. 2. Click Print→Order Confirmation→Preview. 3.5 – Create a Sales Order in a Company with Multiple Locations Scenario At Cronus. which normally uses GREEN location. enter 25. 5. 7. Instead of printing. Log in at the Manchester responsibility center. 3. In the Quantityfield.field.

They need to be able to make individual replenishment plans based on the supply-demand pattern at a specific location or based on a variant of the item. the program uses the information on the SKU card instead of referring to the item card.Inventory Management in Microsoft Dynamics™ NAV 5. Information held on the SKU card can include: • • • Cost prices Replenishment information Manufacturing information Whenever there is an SKU. Item 70001 is among these items. To create several stockkeeping units for an item. and then entering the appropriate information on the SKU card.Set Up an SKU Scenario: Based on different supply-demand patterns for a number of certain items at specific warehouses. 3-34 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . pressing F3. Information recorded on the stockkeeping unit card specifies individual parameters used by the program to calculate replenishment schedules at the location and/or variant level. Look at the SKUs that have been created for item 70001. Cronus realizes the need to reflect this difference in the program. a product stocked at both a main location and six different distribution centers represents seven SKUs. an inventory manager creates and sets up the corresponding number of stockkeeping units for the selected items. The Stockkeeping Unit Concept The Stockkeeping Unit (SKU) is an item with a particular variant and/or at a particular geographic location. the user can use the Create Stockkeeping Unit batch job by clicking Functions on the item card. Demonstration . Stockkeeping Units. Microsoft Dynamics NAV provides companies with multiple locations with functionality that allows them to handle and control inventory in such a flexible manner. NOTE: The user can create a stockkeeping unit by clicking Inventory. For this purpose.0 Control Inventory at Multiple Locations Companies with many warehouse locations want to have a certain degree of flexibility in managing these locations. This is done by means of creating stockkeeping units. For example. SKUs have priority over the item card but do not replace it.

Chapter 3: Use Multiple Locations Notice the Stockkeeping Unit Exists field on the Planning tab of the item card. Click Warehousee→Planning & Execution→Items and browse to the item card for item 70001. Select the SKU for the Blue location and click SKU→Card (or press Shift+F5).23 REPLENISHMENT SETUP FOR THE SKU AT BLUE LOCATION The fields on the Replenishment tab specify details of the replenishment process that the inventory manager has established for this item at the Blue location. Notice that many fields on the General tab of the SKU card are the same as on the item card for the corresponding item. On the item card. click Item→Stockkeeping Units. If this field contains a check mark. A list of SKUs for the item appears. 1. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-35 .22 LIST OF SKUS CREATED FOR ITEM 70001 3. FIGURE 3. Click the Replenishment tab. 4. FIGURE 3. 2. then one or more stockkeeping units for this item have already been created.

6. Therefore. view the details for the SKU card for the same item at the Yellow location: 5. reorder point. where location Blue is the company's main distribution center. When the user selects a code in the Transfer-from Code field. Click the Replenishment tab. 3-36 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . refer to “Transfer Between Locations” in this course. the program uses the information on the item card. This practice is reflected in the program through the selection of Transfer as replenishment system and the selection of BLUE as a transfer-from code. most of the items stored at the Yellow location are replenished by means of transfer from the Blue location. the program verifies whether the combination of the transfer-to and the selected transfer-from locations is a valid transfer route. FIGURE 3. For more information on transfer orders. At Cronus. and reorder quantity. click the respective field and press f1.0 The Replenishment System field specifies the type of order the program suggests when it creates orders as the result of the replenishment planning. Now. The user can differentiate between items at different locations by specifying unique values in the SKU for characteristics such as maximum inventory. When this item is handled from other locations. From the stockkeeping units list. select the SKU for location Yellow and click SKU→Card (or press Shift+F5). Cronus has stockkeeping units for item 70001 at the Blue and Yellow locations. To learn about other fields on the Replenishment and Planning tabs. Purchase is selected in the Replenishment System field for this stockkeeping unit. most of the items stored at this location are replenished through purchase.24 REPLENISHMENT SETUP FOR THE SKU AT YELLOW LOCATION According to the company's established procedures.Inventory Management in Microsoft Dynamics™ NAV 5.

without losing the overview of the entire inventory. To make an inventory availability report: 1. In the Inventory Availability window. In this way. Using SKU Information The program uses information on the stockkeeping unit card when producing different reports. companies handle and control inventory stored at different locations. 2.Chapter 3: Use Multiple Locations To view a list of all stockkeeping units: 1. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-37 . The report lists the availability of items by stockkeeping unit. click the Options tab. Select the Use Stockkeeping Unit field. Click Purchase→Inventory & Costing→Reports→Inventory Availability. Click Warehouse→Planning and Execution→Stockkeeping Units. 4. To print other inventory reports. Click Preview. 2. 3. Click SKU→List (or press F5). follow the same procedure as described in steps 1-4.

4. 5. Challenge Yourself Your tasks are as follows: 1. Red and Yellow locations.6 – Create and Set Up Stockkeeping Units Scenario Due to the different conditions under which the various warehouses within Cronus operate. 8. Set up the stockkeeping units according to the following parameters: At the Blue Warehouse Requisition System Transfer-from Code Lot Size Purchase 100 At the Red Warehouse Transfer Blue 100 At the Yellow Warehouse Transfer Blue 100 3. 2. press Shift+F5. From the item card. General practice is that this item is purchased from a limited number of vendors. Open the card of item 70100. The Red and Yellow warehouses will not purchase this item from the vendors but will transfer it from the Blue warehouse. RED location. press Shift+F5. With the pointer in the second line. 10. 7. 9.Inventory Management in Microsoft Dynamics™ NAV 5. who are located in close proximity to the Blue warehouse. With the pointer in the first line. enter this filter in the Location Code field: BLUE|RED|YELLOW. 6. Among these items is item 70100. Go to the Replenishment tab and enter 100 in the Lot Size field. Print an inventory availability report for each stockkeeping unit. Step by Step 1. 3-38 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .0 Lab 3. Press Esc to return to the Stockkeeping Unit List window. Click Functions→Create Stockkeeping Unit. 2. BLUE location. (The vertical line is done by pressing Alt Gr+| keys). click Item→Stockkeeping Units. 3. These vendors therefore ship their orders directly to this warehouse. the company decides to establish a set of parameters with regard to certain items. Create stockkeeping units for item 70100 at the Blue. which will distinguish the way that these items are handled and managed at different locations. Leave the Options tab unchanged and click OK. Click Warehouse→Planning and Execution→Items. On the Item tab.

select the Use Stockkeeping Unit field. Click Purchase→Inventory & Costing→Reports→Inventory Availability. 20. enter 100. In the Lot Size field. Press Esc to return to the Stockkeeping Unit List window. enter 100. enter Transfer. 17. In the Transfer-from Code field. 16. 22. 12. 21. enter BLUE. 24. 13. 23. In the Transfer-from Code field. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-39 . On the Item tab. Go to the Replenishment tab. enter BLUE. 14. In the Lot Size field. field. On the Options tab. In the Replenishment System field.Chapter 3: Use Multiple Locations 11. press Shift+F5. YELLOW location. With the pointer in the third line. 15. enter Transfer. 18. Press Esc to close all open windows. In the Replenishment System field. Go to the Replenishment tab. 19. enter a filter of 70100 in the No.

Inventory Management in Microsoft Dynamics™ NAV 5. A stockkeeping unit (SKU) is an item with a particular variant and/or at a particular location. For example. A location is defined as a place that handles physical placement and quantities of items. responsibility centers. A responsibility center is a grouping of one or more warehouses or distribution centers where trade with certain locations or business partners is adminstered. User IDs in the database can be linked to specific responsibility centers and thereby define a default workflow and location. A location typically designates a warehouse. a product stored at both a main location and six different distribution centers represents seven SKUs. This is enabled with dedicated program granules centered on the concepts of locations.0 Summary Microsoft Dynamics NAV helps to provide rich functionality to manage inventory in dispersed warehouses and still maintain effective distribution to and from business partners. and stockkeeping units. 3-40 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .

Customer card ( ) Customer card. Which is the correct hierarchy of priorities that the program uses to determine which responsibility center must appear on a document such as a sales order? ( ) Company Information card. What is the difference between using multiple locations and using responsibility centers? 3. or a distribution center. a ______________ is defined as a physical place where items are produced. User Setup card. User Setup card. a warehouse. handled. and stored before being sold. In Microsoft Dynamics NAV. 2. Customer card Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-41 . Company Information card ( ) User Setup card. such as a production plant.Chapter 3: Use Multiple Locations Test Your Knowledge 1. Company Information card.

What feature do you use to specify in Microsoft Dynamics NAV that a certain variant of an item in a certain location must have unique inventory handling? 3-42 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .Inventory Management in Microsoft Dynamics™ NAV 5. Suppose that you have set up multiple locations for your company. and you have decided that a certain customer must always receive shipments from a particular location. How do you specify that the customer must be associated with the location? 5.0 4.

2.Chapter 3: Use Multiple Locations Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter: 1. 3. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 3-43 .

3. or a distribution center. Which is the correct hierarchy of priorities that the program uses to determine which responsibility center must appear on a document such as a sales order? ( ) Company Information card.The Stockkeeping Unit feature allows you to set up a specific inventory handling for items and variants of items in certain locations. How do you specify that the customer must be associated with the location? MODEL ANSWER .0 Solutions Test Your Knowledge 1. User Setup card.Inventory Management in Microsoft Dynamics™ NAV 5. such as a production plant. handled. Customer card 4. a ______________ is defined as a physical place where items are produced. What feature do you use to specify in Microsoft Dynamics NAV that a certain variant of an item in a certain location must have unique inventory handling? MODEL ANSWER .Locations are defined as physical locations where items are handled whereas responsibility centers are not necessarily physical places or can reflect larger categories such as regions. Suppose that you have set up multiple locations for your company.Assign the location code on the Shipping tab of the customer card. MODEL ANSWER . User Setup card. and stored before being sold. a warehouse. What is the difference between using multiple locations and using responsibility centers? MODEL ANSWER . In Microsoft Dynamics NAV. Customer card ( ) Customer card. 3-44 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . 5. Company Information card (•) User Setup card. Company Information card.location 2. and you have decided that a certain customer must always receive shipments from a particular location.

while maintaining minimum inventory in regional warehouses. View inventory value of items in transit. these companies often follow the strategy of having safety stock in one main warehouse. it is difficult to determine the value of the inventory. If the company is large enough. Identify the locations and quantities of items in transit. When the inventory is shipped from the source location. This creates problems from both a financial and a logistical perspective. each servicing a specific area or region. a significant amount of inventory can be in transit at any given time. companies use a transfer order to accurately track the movement of inventory from one location to another. This practice requires the transfer of inventory from the main warehouse to the regional ones. companies create a transfer order containing a line for each inventory item being transferred. To transfer items. it is considered to be in transit until received at its destination. With the Location Transfers granule. Introduction Many large wholesale distributors and manufacturers have a number of branch warehouse locations. Create and post manual transfers. it is not possible to accurately estimate total availability of the inventory. because it is in transit. Logistically. Companies also move inventory from one location to another to satisfy unexpected demand. Financially. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 4-1 . Explain central transfer concepts. To minimize their total inventory level.Chapter 4: Transfer Between Locations CHAPTER 4: TRANSFER BETWEEN LOCATIONS Objectives The objectives are: • • • • • Set the program up to handle transfers.

some customers are always supplied from specific warehouse(s) and some vendors deliver to certain warehouses. called a transfer-to location. With the shipping time defined. a company must define an in-transit location. Cronus is a company with many warehouses located all over the United Kingdom (UK). remember to install a clean database. When the order is shipped from the transfer-from location.0 Set Up Transfers The following example illustrates the functionality of the Location Transfers granule using Cronus International Ltd. called a transfer-from location. Companies can set up as many or as few in-transit locations as they like. a company must have the Multiple Locations granule. According to this setup. Refer to “Use Multiple Locations” to see that Cronus has established a setup to achieve this flexibility.” The location transfer setup consists of two elements: • In-Transit Location Setup:To use the transfer functionality. each with its own manager. To use location transfers. With such an organizational configuration. which is a temporary location created for transferring items only. companies can track the quantity and value of items in transit at any given time after they are shipped from the source location. the program assigns the items to the in-transit location. the program moves the items from the in-transit location to the transfer-to location. for example a central warehouse. To help ensure a high level of customer service in terms of delivery time. Review how Cronus has decided to set up two in-transit locations. such as a regional warehouse. shipping agent and shipping agent service code to each route. Cronus sometimes needs to transfer inventory from one location. the program uses the information to calculate the receipt date for transfer orders at the target location. the company strives to achieve maximum operational flexibility through decentralized management of its warehouses. with one central warehouse and a number of regional warehouses. NOTE: To follow the suggested demonstrations. 4-2 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . This enables the company to assign a default in-transit location code. to another.Inventory Management in Microsoft Dynamics™ NAV 5. Transfer Routes Setup:A company can choose to set up transfer routes between locations. up until they are received at the target location. • Set Up In-Transit Locations With the in-transit location. When the order is received at the transfer-to location. Learn more about this granule and the setup procedures in “Multiple Locations.

From the Location Card window. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 4-3 . they must set up a temporary location where the items are placed while in-transit. Cronus needs to make inventory transfers from one warehouse to another. the in-transit location is a truck or van transporting the inventory from one location to another. and OWN LOG. intransit codes.Review an In-Transit Location Setup Due to its organizational and geographical configuration. FIGURE 4. These two locations are the in-transit locations with OUT. the company uses either its own logistics facilities or external ones to transport inventory between its different locations. Because the distance between different warehouses within the Cronus distribution network varies. INCLUDING TWO INTRANSIT LOCATIONS Notice the two locations called Outsourced Logistics and Own Logistics.1 LOCATIONS IN CRONUS. LOG. click Locations→List to see the list of all locations in Cronus. Cronus has set up two in-transit locations. To reflect this practice in the program. 2. respectively.Chapter 4: Transfer Between Locations Demonstration . Click Warehouse→Setup→Locations. Typically. Follow the these steps to review the setup: 1. To do so in Microsoft Dynamics™ NAV.

0 3.Inventory Management in Microsoft Dynamics™ NAV 5. The program uses the shipping time of the shipping agent service to calculate the receipt date at the transfer-to location. The program uses the transfer route to validate location information when making transfer orders or entering lines in the requisition worksheet. Set Up Transfer Routes Typically. the Code and Name fields on the General tab must be filled in. You can assign each transfer route a default in-transit code. Read about how to set up shipping agents and shipping agent services in the topics called “Setting up Shipping Agents” and “Setting Up Shipping Agent Services” in online Help. shipping agent code and shipping agent service code. The Use As In-Transit field must contain a check mark. A transfer route is the combination of a transferfrom location and a transfer-to location. an authorized person. such as the company's administrator. Read about how to set up in-transit locations in the topic called "Setting up InTransit Codes" in online Help. This indicates that this location is used as an in-transit location. from the list and click Location→Card (or press Shift + F5) to open the location card. At Cronus. Follow these steps to review the setup: 4-4 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Select location code OWN LOG. is in charge of setting up the transfer routes. FIGURE 4.2 THE LOCATION CARD OF THE OWN LOG INTRANSIT LOCATION At a minimum. transfer routes have been set up to reflect the current business processes.

the program displays the location codes.Chapter 4: Transfer Between Locations Click→Warehouse→Planning & Execution→Setup Inventory→Transfer Routes. and from the Red to the Blue location. In the Show field. the company uses its own logistics facilities represented by the OWN LOG. Read about how to set up transfer routes in the topic called “Setting up Transfer Routes” in online Help. If the field is blank. code. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 4-5 . LOG. code. the user must place a check mark in the Show Transfer-to Name field. On the transfer routes from the Blue to the Red and Yellow locations.3 TRANSFER ROUTES IN CRONUS Cronus has set up five transfer routes. On the transfer routes from the Green to the Red and Yellow locations. To display the names of the transfer-to locations as headings in the right pane. the company uses an external carrier represented by the OUT. the user can select the transfer route specification that they want to have shown in the fields in the right pane. FIGURE 4.

1 – Set Up a Transfer Route Scenario Cronus needs a new transfer route to bring items from Red to Green warehouse using their own trucks. Use OWN LOG. 3. Set up a transfer route between Red and Green location 2. Step by Step 1.window. as the in-transit code. 4-6 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . look up in the cell between RED (as Transfer-from Code) and GREEN. Route Spec. In the Trans.0 Lab 4. Click→Warehouse→Planning & Execution→Setup Inventory→Transfer Routes. 1. look up in the In-Transit Code field and select OWN LOG.Inventory Management in Microsoft Dynamics™ NAV 5. In the Transfer Routesmatrix window. 2. Use RED as transfer-from code. 3.

Automatic transfer order creation is an outcome of the replenishment planning activity. A company may need a manual transfer when there is lack of inventory at a certain location. dedicated persons. The previous section described the rationale and procedure for creating transfer orders manually. The demonstration is divided into the following sub processes • • • Create a transfer order.Chapter 4: Transfer Between Locations Use Transfer Orders The transfer order is the key object of the transfer functionality. With the location transfers functionality. typically purchasers. To make automatic transfers. a company can: • • • Create a transfer Post the shipment of the items Post the receipt of the items The transfer order contains information regarding how much has been shipped and received in the same manner as the purchase and sales documents. companies can make transfers both manually and automatically. decides to move items from a location where the required inventory is available to the location in question.Transfer 50 Top Panels from Yellow to Blue Warehouse The following demonstrates a complete transfer process and then how the planning system creates transfers. such as a salesperson. using quantity shipped. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 4-7 . Ship a transfer order. and this inventory is needed to fulfill a sales order. In this case. an initiator. Receive a transfer order. It is also possible for companies to use the requisition worksheet to create transfer orders automatically. With the transfer order. Each part is preceded by a short scenario description. Demonstration . quantity received and so on. use the requisition or planning worksheet.

4 TRANSFER ORDER HEADER CREATED Note that the program fills the In-Transit Code field automatically with the intransit code OUT. The first thing the salesperson must do is to create a transfer order. from which the order is shipped to the customer. 4-8 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . When creating a sales order for this customer. To ensure order fulfillment. This customer wants to ship complete and from one warehouse. this customer's orders normally come from the Yellow warehouse. 1. the salesperson decides to make a transfer from the Blue warehouse.Inventory Management in Microsoft Dynamics™ NAV 5. select BLUE. This code is a default in-transit code for the transfer route between the Blue location and the Yellow location. 4.0 Create a Transfer Order The following demonstrates how to create a manual transfer between locations. FIGURE 4. In the Transfer-from Code field. where the needed items are available. a salesperson finds out that the quantity of item 70002 on stock in warehouse Yellow is not sufficient to fulfill this order. to the Yellow warehouse. 3. 2. and they have only agreed to pay any transportation costs that occur when the final complete order is shipped from the Yellow warehouse. The Transfer Order window appears. In the Transfer-to Code field. Click Warehouse→Planning & Execution→Transfer Orders. According to the company's established procedure. Scenario: Cronus customer 40000 is expected to place an order for 50 units of item 70002 to be delivered within one week. LOG. select YELLOW. Press F3 to create a new transfer order.

The program fills in the Shipping Agent Code. FIGURE 4. Click the Transfer-to tab.6 TRANSFER-FROM TAB PRESET BY THE YELLOW LOCATION CARD Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 4-9 . FIGURE 4. 6. Click the Transfer-from tab.5 TRANSFER-FROM TAB PRESET BY THE BLUE LOCATION CARD On the right side of the transfer order header. the Shipping Agent Service Code and the Shipping Time fields automatically from information defined for this transfer route. respectively.Chapter 4: Transfer Between Locations The program also automatically fills in the name and address information for the Blue and Yellow locations in the corresponding fields on the Transfer-from and Transfer-to tabs. there are six fields specifying shipping details for this transfer. 5.

In the Quantity field. you can open the Transfer Order List window and release all existing transfer orders in one batch. Some companies may have an authorized person responsible for releasing transfer orders. In this case.Inventory Management in Microsoft Dynamics™ NAV 5.0 The Receipt Date field indicates when the items are to be received at the Yellow location. The Status field on the header has changed from Open to Released. which is two days. This is because the transfer route that permits transfers from Blue to Green is not a valid route in the program. the program does not suggest a default in-transit location. the program uses only the outbound warehouse handling time for the transfer-from location and the inbound warehouse handling time for the transfer-to location to estimate the receipt date. field. This calculation is based on the outbound warehouse handling time at the Blue location (0 days). Because there are no shipping agent and shipping agent service set up for this transfer route. which is one day. and inbound warehouse handling time at the Yellow location. enter 70002 in the Item No. the user must manually enter an in-transit code in the In-Transit Code field. 8. The header and line are ready. enter 50. To estimate the receipt date more accurately for this transfer order. If the user enters Green as the location code in the Transfer-to Code field. Complete the transfer order from the Blue to Yellow location by filling in the transfer order lines with the item number and quantity to be transferred: 7. Proceed to release the transfer order. 9. the shipping time set up for this transfer route. 4-10 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . On the first line. To release all transfer orders from a given location. Click Functions→Release. the user must select a specific shipping agent and shipping agent service or enter a shipping time in the corresponding fields on the Transfer-from tab.

A warehouse worker with authorization to ship transfer orders Blue locations proceeds to post the transfer order. 2. FIGURE 4. The worker is only permitted to post only one transfer order shipment at a time. Ship a Transfer Order Scenario: The transfer order has been released.8 TRANSFER SHIPMENT READY TO BE POSTED Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 4-11 . Open the transfer order created in the previous part of the demonstration. such as those shipping from Blue location. FIGURE 4.Chapter 4: Transfer Between Locations 10. follow these steps: 1. Do not batch release transfer orders at this point. Then click Functions→Release. To post a transfer shipment. Click Posting→Post (or press F11). you could set a table filter for the transfer orders to be released. Select Ship.7 LIST OF ALL OPEN TRANSFER ORDERS IN THE DATABASE In this window. 3. Click Order→List.

To view the posted transfer shipment document for this specific transfer. Now. click Warehouse→History→Posted Documents→Posted Transfer Shipments. FIGURE 4. click Order→Shipment. As in the case of posting the transfer shipment. you can navigate to gain more detailed information about this transaction. the transfer-to code. open the Posted Transfer Shipments window: 5.9 POSTED TRANSFER SHIPMENTS WITH ACCESS TO DETAILED INFORMATION From this window. Click OK. Scenario: Two days after the Blue warehouse shipped the transfer order. In the navigation pane. In the Transfer Order window. the transfer order has been shipped out of the Blue location and 50 units of item 70002 are currently in transit. Browse to the posted transfer shipment for the transfer order you have just shipped.Inventory Management in Microsoft Dynamics™ NAV 5. A warehouse person at the Yellow warehouse must open the transfer order that corresponds to the arrived items and post the transfer receipt. 6. which is the target location for this transfer. 4-12 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . This posted shipment and all other posted transfer shipments can be accessed directly from the navigation pane. 7. for example.0 4. Receive a Transfer Order Receiving the transfer order at the target location is the final step in the transfer process. This process illustrated in the transfer you have just shipped from the Blue warehouse to the Yellow warehouse. a warehouse person can use a table filter to filter the transfer orders according to certain parameters. 50 units of item 70002 arrive at the Yellow warehouse.

NOTE: If you ship the transfer order from a location that requires picking. Enter 50 in the Qty. A message appears reminding you that Yellow location is set up to use dedicated warehouse receiving documents.” You can skip this process by entering the corresponding amounts in the Qty. to Receive fields on the transfer lines and then accepting the warning messages given by the program. 3. FIGURE 4. follow these steps: 1. or if you receive the order at a location that requires receiving. To Ship/Qty. to Receive field.Chapter 4: Transfer Between Locations To post a transfer receipt. The receiving/shipping processes of the Warehouse Management functionality are described in detail in “Perform Basic Warehouse Tasks” in this course.10 TRANSFER RECEIPT OF 50 UNITS READY TO BE POSTED Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 4-13 . Click Posting→Post. Notice that the Quantity Shipped field now contains 50. Browse to the transfer order for 50 units of item 70002. Click OK to continue. and then click OK. the program requires you to process the shipping or receiving through dedicated warehouse documents and gives the message “There is nothing to post. 2. select Receive.

The availability check undertaken by the salesperson shows that there are not enough items in stock at the Red warehouse to fill the order and no receipt of new stock is scheduled or planned within the next five days.0 Lab 4. Due to certain considerations. Do not receive the ten units of item 1964-W at the Red warehouse. Receive the full quantity of items 80100 and 1908-S at the Red warehouse. the order is shipped to this customer from the Red warehouse. 3. Create one transfer order for the required quantity of items 70200.Inventory Management in Microsoft Dynamics™ NAV 5. and 1964-W. 2. At the same time. there is enough stock available at the Blue warehouse to fulfill this sales order. Challenge Yourself Your tasks are as follows: 1. Click Warehouse→Planning & Execution→Transfer Orders. 4.2 – Transfer Items between Locations Scenario Cronus customer 50000 places an order for: • • • 1000 units of item 70200 30 units of item 1908-S 10 units of item 1964-W The order is for delivery in five days. Press F3 to create a new order. 4. Release and ship the transfer order with the full quantity of all three items from the Blue warehouse. 1908-S. 3. 4-14 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Enter RED in the Transfer-from Codefield. 2. Step by Step 1. The salesperson decides to transfer the required quantity of the above items from the Blue to the Red warehouse. NOTE: The outcome of this exercise is used in the following section as well as the next exercise. Enter GREEN in the Transfer-from Codefield.

Click Functions→Release (or press Ctrl+F11). 70200 1908-S 1964-W Quantity 1000 30 10 6.Chapter 4: Transfer Between Locations 5. but remove 10 on the last transfer line. Notice that the transfer order is not deleted because the last line is incomplete. Proceed to post two transfer receipts. Create three transfer lines with this information: Item No. Press F11. 7. select Ship. 9. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 4-15 . to Receive field. and then click OK. The three transfer shipments are posted. In the Qty. select Receive. and then click OK. leave 1000and 30 in the first two transfer lines. 8. Click Posting→Post (or press F11).

2.Inventory Management in Microsoft Dynamics™ NAV 5. In Transit field by using the Show Column function. a multisite company is able to track quantity and value of inventory currently in transit at any time.View Quantity of Item 1964-W in Transit Companies can view items in transit for each in-transit location code and for each item. Furthermore.0 View Items in Transit Constant movement of inventory between different locations creates a need in companies with multiple locations to determine the status of a specific item(s). In the Items by Location window. 6. 4. this window shows item availability for each physical location. all the reports that relate to item availability include quantities in transit. With the location transfers functionality in Microsoft Dynamics NAV. 7. The Items by Location window appears: By default. Proceed to view the quantity in transit for item 1896-S in the period up to 01/25/08 (one day after the work date). 4-16 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . select the line for item 1964-W. Click Warehouse→Planning & Execution→Items. Demonstration . It can also be used to show item quantities for each in-transit location code. 3. Click Item→Item Availability by→Location. Scroll to the item card of item 1964-W. Click Item→Items by Location. Have a closer look at these options using Cronus. 5. Follow these steps to view items in transit: 1. Select the Show Items In Transit field. Add the Qty.

(These are the ten units that you left unreceived in lab 4.Chapter 4: Transfer Between Locations 8. in Transit field. 2. Click Financial Management→Inventory→Reports→Inventory Valuation. FIGURE 4. As indicated by the contents of the Qty. 1. On the Item tab. The Inventory . Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 4-17 . you can use the Inventory Valuation report. enter 01/25/08 and press Enter. Click the Balance at Date button at the bottom of the window to see the balance up to 01/25/01. look up from the Field field to select the Location Filter field. on a new empty line. ten units of item 1864W are on the way to the Red warehouse on 01/25/01.2.11 10 UNITS ARE IN TRANSIT TOWARDS RED LOCATION ON 01/25/08 The Item Availability by Location window now shows the total quantity of an item that is in-transit on a specific date towards a specific location.Inbound Transfer report shows items in transit that are to be received at the transfer-to location.) Quantities in transit are also included in all the reports that specify inventory availability. To view value of items in transit. In the Date Filter field of Item Availability by Location window. 9.

Inventory Management in Microsoft Dynamics™ NAV 5.Value reports also show the value of items in transit. The system also offers functionality for tracking where and when items are in transit. it is considered to be in transit until received at its destination (transfer-to location). Summary Transfer orders are used to manage and track the movement of inventory from one location to another. 4-18 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .0 3. The Inventory Valuation . When the inventory item is shipped from the source (transfer-from location). such as OWN LOG. and the Item Age Composition . Click Preview to view the inventory value of items in transit at OWN LOG. FIGURE 4.12 PREPARING THE INVENTORY VALUATION REPORT TO SHOW IN-TRANSIT VALUES 4. Both the transfer shipment and the transfer receipt are posted from one transfer order to ensure a simple and stable workflow of such inventory items.Cost Spec. Look up from the Filter field and select an in-transit code.

what two elements must you set up before you can use location transfers? (Select all that apply. True or False: It is possible to check what quantity of an item is in transit by using the Item Availability by Period window. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 4-19 .Chapter 4: Transfer Between Locations Test Your Knowledge 1.) ( ) Responsibility centers ( ) In-transit locations ( ) SKUs ( ) Transfer routes 2. Besides standard multiple location setup. How do you specify that a location will be used as an in-transit location? 3.

Inventory Management in Microsoft Dynamics™ NAV 5.0

Quick Interaction: Lessons Learned
Take a moment and write down three key points you have learned from this chapter: 1.

2.

3.

4-20

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Chapter 4: Transfer Between Locations

Solutions
Test Your Knowledge
1. Besides standard multiple location setup, what two elements must you set up before you can use location transfers? (Select all that apply.) ( ) Responsibility centers (√) In-transit locations ( ) SKUs (√) Transfer routes 2. How do you specify that a location will be used as an in-transit location? MODEL ANSWER - By selecting the Use as In-Transit field on the Location card. 3. True or False: It is possible to check what quantity of an item is in transit by using the Item Availability by Period window. MODEL ANSWER - False. However, it is possible to check in-transit quantities by using the Items by Location window or the Item Availability by Locations window.

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

4-21

Inventory Management in Microsoft Dynamics™ NAV 5.0

4-22

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Chapter 5: Perform Basic Warehouse Tasks

CHAPTER 5: PERFORM BASIC WAREHOUSE TASKS
Objectives
The objectives are: • • • • • Set up locations for warehousing, including bin setup. Receive and put away items using the purchase order, inventory putaway, or warehouse receipt documents. Pick and ship items using the sales order, inventory pick, or warehouse shipment documents. Move items between bins. Adjust item quantities in bins.

Introduction
Maximum efficiency, data accuracy, and reliability in inventory management and warehousing operations are of utmost importance to any company striving for excellence in customer service and cost reduction. While these goals are relevant to a business, not every company considers warehousing as their core competence, which in turn reflects on their willingness to invest in extensive warehousing solutions and accept long implementation time. With this in mind, companies with straightforward warehousing needs, such as small distributors, manufacturing or service companies, have a number of challenges to deal with while ensuring that overall goals are reached. To sustain efficiency and short order handling time, items must be easy to find in the warehouse. Additionally, warehouse workers must be able to focus on carrying out physical movements rather than spending time in front of computers recording information. Moreover, in companies that experience high turnover of warehouse workers, the ability to train them quickly on using the program is highly relevant.

Basic Warehousing Concepts
Considering the varying challenges with inventory management and warehousing operations, companies with simple warehousing generally need the ability to: • • • Reflect their warehouse data structure in the program. Obtain an overview of inventory levels and item placement in the warehouse. Reveive program support to perform the basic movements of receiving, putting away, picking, and shipping.

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

5-1

Inventory Management in Microsoft Dynamics™ NAV 5.0
The warehousing offering in Microsoft Dynamics™ NAV provides a way for companies with even the most simple warehouse data and processes to perform daily activities in a reliable and easy-to-use environment, while allowing for increasing complexity as the company grows and processes change. The program does this by providing the following benefits: • Efficiency and overview - This is supported by features such as: − − − • Dynamic bin suggestion, the ability to record warehouse information directly on the order documents. The facility to handle warehousing tasks on separate documents where only relevant order information is displayed. Ability to get an overview of warehouse pending tasks.

Shortened learning curve - Features, such as a simplified user interface on warehouse documents and support for reversing mistakes help warehouse workers to quickly learn the program. Reduced implementation risk - Scalability of the total warehousing offering, that is, the possibility to start with a base level from which more advanced functionality can be installed in the preferred place, is the key factor that contributes to mitigating implementation risk.

The warehousing offering in Microsoft Dynamics NAV is represented by five granules: • • • • • Bin Pick Put-away Receipt Shipment

These granules can be implemented in any combination, thereby giving companies with different warehousing requirements the ability to tailor their warehouse solutions as they see fit. The ability to use bins on sales and purchase documents with the Bin granule gives companies with a simple warehouse organization a way to perform picks and put-aways while using documents they are already familiar with. When these companies grow and find that their pick and put-away processes become more complicated, the Pick and Put-away granules provide the perfect step up to a level where their information can be handled with greater flexibility. With the Pick and Put-away granules comes the ability to access pick and put-away information from separate documents and menu options, which means that warehouse workers can do their work in a specialized and focused environment. Finally, the Receipt and Shipment granules give companies the ability to process receiving and shipment information for multiple orders in one separate warehouse document.

5-2

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Consider the setup for the Silver location. The warehousing setup consists of two elements: • Location setup:Setup begins with defining a warehouse as a location and specifying the extent to which the company wants their warehouse processes to be supported by the program. Bin setup:A bin is the most basic storage unit in the warehouse. you must set up each warehouse as a location. Set Up Basic Warehousing When you set up warehousing options in Microsoft Dynamics NAV. the company must set up bins in the program.Chapter 5: Perform Basic Warehouse Tasks This chapter describes the different setup options for warehousing and explains the implications of selecting them. To reflect the actual warehouse structure in terms of a bin numbering system and to keep inventory records on the bin level. This includes defining how bins must be used and specifying what to store in them. • The following sections describe these two elements. the following options trigger the features in the warehousing granules. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-3 . Set Up Locations In the program. Read the respective topics in the online help for a quick overview of typical procedures associated with specific warehouse handling activities. The Cronus company has a number of locations for warehousing. The warehousing processes are divided into the following categories: • • • • Receiving and putting away Picking and shipping Movements and adjustments Physical inventory This chapter uses comprehensive scenarios and examples to demonstrate the value of the warehouse management features in improving the efficiency of warehouse operations. Define the extent to which you want the program to support warehouse processes for a specific location on the Warehouse tab of the location card. NOTE: Load a clean Cronus database without changes to the data.

The Require Receive. You can decide to use one or another document. Keeping records of inventory movements at the bin level is an important precondition for efficient warehousing. FIGURE 5.0 Click Warehouse→Setup→Locations. these different ways are directly linked with the functionality of different warehousing granules. Essentially. or a combination of documents. This means that posting of transactions. putting away. is not possible unless a bin code is specified. Browse to the Silver location and click the Warehouse tab. As previously explained. Otherwise. the company operates on the premise that all warehousing activities are handled and posted from the actual order document (or journal). Require Shipment. and picking. Require Put-away. where actual order handling is carried out and order posting takes place. and Require Pick fields define if separate warehouse documents are used to handle the respective warehousing processes: receiving. both from journals and documents. if these fields contain checkmarks. Consider also the volume and complexity of the warehousing workload and the organizational setting of the warehouse.1 WAREHOUSE SETUP OF SILVER LOCATION The fields on the left side of the tab define the different ways the program can handle inbound and outbound warehouse processes. 5-4 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . A check mark in the Bin Mandatory field indicates that a company has chosen to define and record bin information for all movements that take place in this location. it means that the company has a designated warehouse environment.Inventory Management in Microsoft Dynamics™ NAV 5. shipping. to support handling a corresponding process using the same logic as when you decide to use one or another warehousing granule.

on the other hand. and put-away templates to let the program suggest which bins to use for put-aways and picks. If the task is limited to only a few modifications. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-5 . the user enters the item number and location code. If the task is to register a large number of bin codes. When companies require workers to enter bin codes for each inventory transaction and movement. and the program automatically fills in the bin code with the item's default bin. when creating a purchase order. the Silver location is set up to use bins without requiring the use of separate warehouse documents. For instance. then the manual bin creation method is most appropriate. and each item can have only one default bin for each location. A check mark in this field indicates that the company is using functionality from the Warehouse Management Systems granules and that the location requires advanced warehousing functionality. Learn about these features in the Warehouse Management Systems training material. You can assign every item that is stored in a warehouse a default bin. Set Up Bin Codes and Bin Contents Assign a code to and describe bins in two ways: • • Manually Automatically by using the Bin Creation Worksheet The method you choose depends on the scope of the setup task. bin capacity. the Directed Putaway and Pick field is available. The Green and Yellow warehouses are. Directed put-away and pick makes it possible to use such features as bin ranking. then you must choose to do so automatically. The first step is to create the bins in the program. set up in a way that requires all warehouse activities to be processed separately from the order documents without registering bin information. Notice that at Cronus. Set Up Bins A bin is the most basic storage unit in the warehouse. The program then suggests the default bin whenever you perform a transaction with the item.Chapter 5: Perform Basic Warehouse Tasks NOTE: If the Bin Mandatory field contains a check mark. You must identify bins by codes that reflect the actual bin numbering in the warehouse. as is typically the case in the startup phase of an entire warehouse setup. For locations that use bins. the program uses a system of default bins to facilitate the warehouse handling tasks. they must consider a number of bin setup options.

the user can define bin contents. the user can apply the Calculate Bins function to create a large number of bins. Bin content defines which items are stored in each bin. On the location card for the Silver warehouse. FIGURE 5. Look at the content of one of the bins set up for Silver location: 2. It also describes a relation between the bin and the item in terms of if a particular bin is default or fixed for a specific item. click Location→Bins. Create bins automatically using the worksheet.3 THE CONTENTS OF BIN S-01-0001 5-6 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Once bin codes have been assigned. The first and simplest method is to set up bin content manually. Like bins. select the first bin code and click Bin→Contents. In the worksheet. FIGURE 5. the user must first define bin templates. a bin has a code and description. bin content can also be set up in two ways: manually and automatically.Inventory Management in Microsoft Dynamics™ NAV 5. This can be done from both the location card and item card.2 AN EXTRACT OF AVAILABLE BIN CODES IN CRONUS In the Bins window. From the Bins window for Silver location.0 You create bins manually from the location card. The user can then create bins automatically using the Bin Creation Worksheet window. Cronus has a number of bins for the Silver location: 1.

an item has only one default bin for each location. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-7 . A check mark in the Default field indicates that this bin must be the first bin the program suggests when the user enters details of a transaction involving this item on the order document or journal line. If required. For items with no default bin specified in advance. the program always suggests the same bin for picking and putting the item away. This is done by selecting one of the two options in the Default Bin Selection field on the Warehouse tab of the location card. A check mark in the Fixed field indicates that the item (bin content) has been associated with this bin.Chapter 5: Perform Basic Warehouse Tasks In the Bin Content window. NOTE: The way that the program behaves (as previously described) can be used as an alternative method for setting up default bins. The Quantity field is for information only and is not editable. If the item quantity goes to zero. the program changes the default bin assignment to the last bin in which the item was put away. the user specifies which item will be stored in the bin. This completes the setup procedure for a warehouse using bins. For more details on these two worksheets. the program does not delete the bin content line. you can set up the same bin to contain more than one item and. read the corresponding topic in the online Help or refer to the “Warehouse Management Systems” course. However. way to set up large numbers of bins with bin content is to use the Bin Content Creation Worksheet window. • Selecting fixed bins as default bins is the rule specified for the Silver warehouse. NOTE: The bin creation and bin content creation worksheets are part of the Bin Setup granule. and that the bin normally contains the item. the company must specify how the program will handle default bins once they are set up. The second. This field shows how many units of the item are currently in the bin. • If the Fixed Binoption is selected. you can store the same item in several bins. The user can always change the default bin assignment if such a need occurs. If Last-Used Binis selected. and most efficient. similarly. the program sets the bin in which the item is put away for the first time as the default bin. To complete the setup of bin usage rules for the location.

10. 8. 4. 2. 11. Set up bin O-01-0001 as the default bin for item LS-75. 3. 6. Create a new location card for Orange warehouse. 3. and then click Bin→Contents. 5-8 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Challenge Yourself 1. Select the Defaultfield. using bin codes O-01-0001 to O-01-0005. 2. 7. This location uses bins.field to select item LS-75. select the Bin Mandatory field. On the first line. and set the warehousing options so that bin usage is mandatory.Inventory Management in Microsoft Dynamics™ NAV 5. Look up in the Item No. Manually create the five bins for the Orange location.0 Lab 5. enter O-01-0001 to O-01-0005. Place the pointer on the first line. 9. On the next four lines. 5.1 – Set Up a Warehouse Location Scenario Cronus has established a new warehouse location that is referred to as the Orange location. enter O-01-0001 in the Codefield. The warehouse manager must set up the new Orange location to use a basic bin structure using bins numbered from O-01-0001 to O-01-0005. On the Warehousetab. Step by Step 1. Click Warehouse→Setup→Locations. Leave all other tabs unchanged. and set up bin O01-0001 as the default bin for item LS-75. Click Location→Bins. Press F3 to create a new location card Enter ORANGE in the Codefield.

where a warehouse person: • • • Confirms the received quantities stated on the delivery documents.Chapter 5: Perform Basic Warehouse Tasks Receive and Put Away Items This section explains how warehousing functionality in Microsoft Dynamics NAV enables the receiving and putting away of inbound orders. Records the received quantities Records the place where the items are put away In the Microsoft Dynamics NAV warehousing solution. such as purchase orders. refer to the “Manufacturing” course. described in the following table: Bin Granule (a) Post receipt and put-away from the order line Post receipt and put-away from an inventory putaway document Post receipt and put-away from a warehouse receipt document Post receipt from a warehouse receipt document and post put-away from a warehouse put-away document * * Receipt Granule Put-away Granule (b) * (c) (d) * * Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-9 . or inbound transfer orders. sales return orders. the process of receiving inbound orders consists of two major activities: • • Receiving items at the warehouse receiving dock Putting away items to the stocking area A typical scenario when items arrive at the warehouse may be the following. with the quantities on the company's order records. For more information on putting away a production output. receiving and putting away takes place in one of four ways. In principle.

the program posts the receipt first to recognize the increase of inventory and thus that items are available for sale. companies that need to plan the handling of multiple orders may find it helpful to use warehouse receipt documents. and (c) and explain the implications of each. where most of the warehouse workers work directly with order documents. With this method. When items arrive at the warehouse. or where there are dedicated warehouse staff to perform warehousing functions.Inventory Management in Microsoft Dynamics™ NAV 5. (b). In the method (d). and the only requirement to use this method is that the location must be set up with mandatory bin usage. upon posting a receipt. the person who receives the shipment records the bin code on the order line. In an order-by-order warehousing environment. This bin code is where the item is put away. a company might decide to use option (a). (b). the example of a purchase order is used as the inbound order throughout the explanations. a company that has a more complex put-away process. Additionally. For simplicity.0 Selecting one or another approach depends upon the company's accepted practices and the level of their organizational complexity. Recording a receipt and put-away on the order is the simplest way to receive and put away items. When the user posts the order as received. 5-10 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . the program deletes it and creates a posted transfer receipt. and (c). In methods (a). the program posts the put-away as well. If the source document is an inbound transfer order. An order document is available for invoicing when the warehouse worker complete handling the receiving and put-away processes. When a location is set up for mandatory bin usage. The following demonstration illustrates the processes of receiving and putting away in Cronus. These entries are the records of the items’ placement in the warehouse at the bin level. The scenario is based on existing data in the demo database. the program combines the actions of receiving and putting away in one step when posting the corresponding documents as received. the program also creates warehouse entries in addition to the item ledger entries and value entries. The user registers the putaway to make items available to pick. and no additional warehouse documents are required. might decide to separate their put-away functions from the order document. the program posts the receipt and put-away in one step. This method is available with the Bin granule. On the other hand. The following sections show how to use methods (a).

Use the Show Column function to make the Bin Code field visible.Chapter 5: Perform Basic Warehouse Tasks Demonstration . 2.Receive and Put Away from a Purchase Order Scenario: A purchaser creates a purchase order for 70 units of item LS-120 and 80 units of item LS-150 from vendor 10000 to be delivered to the Silver warehouse. With this information. the purchaser must use the release function. FIGURE 5. Assume that the shipment now arrives at the warehouse. When the shipment arrives at the warehouse. 1. The warehouse worker uses the accompanying delivery documents to determine to which purchase order the shipment belongs. the worker can now carry out receiving and putting the order away. the warehouse worker must perform a series of activities to record the correct numbers of items in the program and make them available for sale. Click Functions→Release (or press Ctrl+F11). Create the purchase order from vendor 10000 to be received in the Silver location. Releasing the order changes the order's status to Released. To make the order ready for handling in the warehouse. which serves as a signal to the warehouse that the order is complete and ready to be delivered from the vendor and received into the warehouse.4 PURCHASE ORDER FOR TWO DELIVERIES TO SILVER LOCATION Notice that the program fills in the default bin code for each item in the Bin Code field. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-11 .

The following window appears: FIGURE 5.Inventory Management in Microsoft Dynamics™ NAV 5. The remaining 50 units must be put away in bin S01-0002. In the Bin Code field. 6. This indicates that only 20 units are put into the bin specified on the line. 5-12 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . 7. change the quantity to 20. to Receive field on the first purchase line. Click Posting→Post. In the Qty. 4. the warehouse worker finds that the bin can only hold 20 units. 3. A situation may occur where items must be put in a bin other than a default one or be placed in more than one bin. the warehouse worker must do a partial receipt. Post the order as received. Select Receive and click OK. Suppose that.5 PURCHASE ORDER READY TO BE RECEIVED WITH ONE PARTIAL RECEIPT 5. when putting item LS-120 away.0 The bin codes on the purchase order lines serve as an indication to the warehouse person as to where the respective items must be put away. change the code to S-01-0002 .the bin code where the remaining quantity is actually put away. To record this handling in the program. Proceed to complete the put-away and receipt of the remaining 50 units of item LS-120.

the program has now: • • Run the receive function for the received items and updated the relevant fields on the order.7 WAREHOUSE ENTRIES CREATED IN THE FIRST OF THE TWO RECEIPT POSTINGS FROM THE PURCHASE ORDER Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-13 . Select the first of the two lines and click Register→Warehouse Entries to see the warehouse entries that correspond to the put-away. open the warehouse registers created by the posting. Click Warehouse→History→Registers→Registers.Chapter 5: Perform Basic Warehouse Tasks As a result of the posting. 8. Updated the bin contents for the corresponding bin. FIGURE 5. Recorded the put-away information for the bin by creating a warehouse register and warehouse entries specifying the quantity and bin information for the put-away. • To view the put-away information. FIGURE 5.6 WAREHOUSE REGISTER SHOWING WAREHOUSE ACTIVITIES IN CRONUS Notice that the last two entries are marked with the Purchases’ source code. Those are the registers for the put-away that were just posted. 9.

5-14 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . 10. Open the location card for the Silver warehouse. The program opens the list of all the bin codes set up for this location. Notice that the Empty field for the bins to which the items on the purchase order have been put away does not contain a check mark. 11. items do not enter and are not handled in the company's warehouse.8 BIN S-02-0001 CONTAINS 20 UNITS FROM THE FIRST RECEIPT POSTING NOTE: When a purchase order is associated with a sales order set to be drop shipped (the order line has a purchasing code defined as drop shipment). Select the line for the bin code S-02-0001 (the default bin code) and click Bin→Contents.Inventory Management in Microsoft Dynamics™ NAV 5. the program prevents the user from entering a bin code on a sales/purchase order. In this case. when the user posts the orders. 12. FIGURE 5. As a consequence. check the bin contents. respectively. To check that the quantity has been received and put away in the appropriate place. in principle. the program updates the bin content records for the bins. Click Location→Bins. even though the location has mandatory bin usage. the program does not create warehouse entries.0 Based on these entries. The bin content record specifies that there are 20 units of item LS-120 in the bin.

he or she can use the program's function of undoing the posting. importantly. This error must now be corrected. the undo quantity posting function ensures that the warehouse-related records are automatically reversed. a warehouse worker discovers that only 60 of the expected quantity of 80 units were delivered. The following example illustrates this. Select the line containing the receipt of the item LS-150 and click Functions→Undo Receipt. it turns out that according to the agreement with the vendor. Browse to the first posted receipt for the purchase order. Follow these steps to undo the posting of the receipt and put-away: 1. In a situation where an order was posted as received into the location with mandatory bin usage.9 POSTED PURCHASE RECEIPTS RELATING TO THE FIRST RECEIPT POSTING FROM THE PURCHASE ORDER 3. 2.Chapter 5: Perform Basic Warehouse Tasks Demonstration . Scenario: Suppose that in the process of putting the item LS-150 away in the bin and. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-15 . which is available on the posted receipt document. FIGURE 5.Undo the Put-away Quantity When a user has posted an order with incorrectly entered quantity as received but not invoiced. Click Warehouse→History→Posted Documents→Posted Purchase Receipts. the order was indeed for 60 units. in which the item LS-150 was received. after the order has been posted as received. When the purchaser is alerted to the problem.

4. then the worker must undo each receipt as appropriate.11 THE BIN CONTENT IS EMPTY AFTER UNDOING THE RECEIPT If the warehouse worker had put away the order line in more than one bin using multiple receipts. This is done by means of creating a warehouse entry for the bin in question with the negative quantity. FIGURE 5. In the Warehouse Register window. and (b) updating the respective fields on the associated purchase order) the program also reverses the put-away. the undo quantity function can reverse the warehouse records for the posted receipt line as long as there is enough quantity in the bin to which the corresponding quantity was originally put away.0 In addition to performing a number of regular steps to ensure that the receipt is undone correctly (which are: (a) creating a corrective negative receipt line applied to the one to be corrected. select the last warehouse register and open the associated warehouse entry.10 WAREHOUSE ENTRY UNDONE The record of the content of bin S-03-0001 has now been updated. FIGURE 5. Generally.Inventory Management in Microsoft Dynamics™ NAV 5. This means that the user can still perform the function even though some or all of the items in the bin were moved elsewhere but the bin contains the quantity specified for the undoing operation. 5-16 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .

Receive and Put Away with Put-away Documents This second method of receiving and putting away allows companies to record put-away information separately from the order information. To complete the handling of scenario 1. Moreover. In essence.Chapter 5: Perform Basic Warehouse Tasks NOTE: The undo quantity posting functionality is also available if you have posted a receipt from a warehouse receipt document (when using the Receipt granule). this document is a copy of the order document but only displays the information relevant to the warehouse. The principle behind the functionality of the Put-away granule is identical to that of the Pick granule. This method requires the Put-away granule and requires that the Require Put-away field on the Warehouse tab on the location card contains a check mark. Browse to the purchase order and reopen it. the inventory put-away document provides greater flexibility in regard to handling additional warehouse requirements such as splitting lines and document printing. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-17 . 1. 2. the warehouse worker uses a separate document: an inventory put-away. Click Functions→Reopen to reopen the order. To register the item's physical placement in the warehouse. the undo functionality is not available when you post a receipt from an inventory put-away document (using the Put-away granule and not the Receipt granule). The user creates an inventory put-away document and accesses it either directly from the purchase order or from the Warehouse menu on the Navigation Pane. However. the third method of receiving and putting away gives companies a way to plan receipt and put-away tasks for multiple orders. This method requires the Receive granule and requires that the Require Receive field on the Warehouse tab of the location card contains a check mark. 3. for companies with dedicated warehouse workers who do not typically work with orders. the program also posts the order as received. Therefore. In the Quantityfield for the line for item LS-150. rather than using the purchase order line. which is described in detail in the section “Picking and Shipping” of this chapter. Post the order. When the user posts the put-away document. the ability to work with inventory put-away documents can be an advantage in terms of simplicity and better usability. enter 60. Receive with a Receipt Document In addition to recording put-away information separately from the order document. update the purchase order with the correct quantity of item LS-150.

In this example. When items arrive at the warehouse. With this document.0 This option is particularly relevant for companies where the receiving process is more complex or requires more attention. the warehouse worker must record the bin information on the warehouse receipt lines. the associated order document (purchase order or sales return order) is ready for invoicing. When the warehouse completes the receiving process. one for 30 units of item LS-150 for vendor 10000 and another one for 20 units of item LS-120 for vendor 50000. which is based on released inbound orders.Inventory Management in Microsoft Dynamics™ NAV 5. You can plan for the receipt tasks by creating a warehouse receipt document. The program then registers the items as part of the company's inventory. posting the receipt also creates a warehouse put-away document. The receipt document can be printed as a put-away list to aid warehouse workers. If the location has not been set up for put-away processing but the bin usage is mandatory. The following scenario describes the process of receiving with a warehouse document using Cronus. the program also posts bin information on the line and creates warehouse entries. They also use this document to register the handled quantities and the bin information. When the items arrive at the warehouse. the program deletes it and creates a posted transfer receipt. companies get an accurate picture of the expected work load and can manage the receiving process in the most efficient way. who uses this document for planning purposes. Upon completion of this task. described earlier as method (d). the warehouse worker must post the warehouse receipt. When the warehouse worker posts the receipt. a warehouse worker handles them and records the received quantities in the appropriate warehouse receipt document. If the location has been set up for separate put-away processing (the Require Put-away field on the location card contains a check mark). If the source document is an inbound transfer order. This document is an instruction to the warehouse worker to move items from the receiving area to the storing area. creating warehouse receipts falls under the responsibility of a warehouse manager. to be received into the Silver location. 5-18 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . the Silver location is set up to require only receive processing in the warehouse and not put-away processing.Receive and Put Away with a Warehouse Receipt Document Scenario: The purchaser creates two purchase orders. Demonstration . the warehouse worker must perform a series of activities to receive the items. Typically.

4. Demonstration . Make sure that the items are to be shipped to the Silver location. Receipt. filtered. Release the purchase orders by pressing Ctrl+F11.12 SILVER LOCATION NOW SET UP TO USE WAREHOUSE RECEIVING PROCESS Now. Open the location card for the Silver warehouse. Managers use a list of all the released inbound orders to create receipt documents by setting certain parameters. Click the Warehouse tab.Chapter 5: Perform Basic Warehouse Tasks The first step is to set up the Silver location to require that receipts are handled through warehouse documents. Enter the header and line details for the purchase orders. 3. In the program. • Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-19 . 2. at the warehouse where the order is to arrive.Create a Warehouse Receipt Scenario: A warehouse worker proceeds to receive the items purchased in the preceding demonstration. Select the Require Receive field. 1. respectively. you can create a receipt of a purchase order from two functional areas: • The warehouse: A warehouse manager. FIGURE 5. or manually selected released purchase orders. create the two purchase orders for vendors 10000 and 50000. A released purchase order represents a request to the warehouse to expect arrival of the items. can create a receipt document with all. The purchase office: A purchaser responsible for the specific order may choose to send a purchase order directly to the warehouse receipt document from the purchase order by clicking Functions→Create Whse.

purchase orders) with lines for quantities that have not yet been received. .0 To create the warehouse receipt: 1.Inbound window contains a list of filter codes that represent filter combinations.13 FINDING INBOUND ORDER LINES TO RECEIVE The Filters To Get Src.Inbound window appears: FIGURE 5. The manager then selects the orders to retrieve. press F3 to create a new document and then press Enter to assign a number to this document. The procedure for using the warehouse source filter card to create a warehouse receipt document is as follows: 4. Click Functions→Get Source Documents to view a list of all released orders with lines to be received at the selected warehouse. 2. click Functions→Use Filters To Get Src. The program only retrieves lines from source documents that meet the filter criteria. Click Warehouse→Planning & Execution→Receipts. select the Silver location. 3. Docs. and the program copies the information from the source documents into the receipt lines. In the Warehouse Receipt window. the manager has two options: • • Click Functions→Use Filters To Get Src. To do this. 5-20 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . The Filters To Get Src. The Warehouse Receipt window appears. Docs. In the Location Code field. field. . Docs. to use filters to select the source documents from which to retrieve lines. The procedure for using the Get Source Documents function to create a warehouse receipt document is described in the respective topic in the online Help. In the No. You can save and reuse filter combinations with the code reference. Docs. The warehouse manager must now select the released source documents (in our example.Inventory Management in Microsoft Dynamics™ NAV 5.

the program retrieves all the released source documents. Read more about the filter request in the topic called "Get Source Documents Batch Job" in the online Help. Remove the check marks in the Sales Return Orders and the Inbound Transfers fields. function shows the filter request form before the program retrieves the lines. . without retrieving any other inbound orders. In this case. . In the Filters to Get Source Docs.Inbound window. enter Get all purchase orders. The warehouse manager at the Silver warehouse decides to set up a filter card specifying that the program must only retrieve all the released purchase orders. Note that. the window contains a list of corresponding filter codes. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-21 . the Filters to Get Source Docs. only fields representing the inbound source documents (sales return orders.Chapter 5: Perform Basic Warehouse Tasks If the Show Filter Request field contains a check mark.14 SETTING UP THE FILTER CARD The manager can define the source document(s) for a specific filter by inserting and removing check marks in the fields representing the types of source documents. Once the filters are set up. enter PO ALL. purchase orders. by default. in the Code field. The filter card appears. Click Modify. when you click Run. and in the Description field. When setting up a filter for the first time.Inbound window and then open the filter card to specify other parameters. 6. . and inbound transfers) are editable and contain check marks.Inbound window appears empty only if the warehouse has not yet set up filters. NOTE: The Filters to Get Source Docs. FIGURE 5. the user must enter a code name on the Filters To Get Source Docs. Follow these steps to set up the filter card: 5.

function. where the manager can select. to Receive field in the warehouse receipt document. While the quantities of all other items that arrive correspond to the quantities on the purchase orders.0 Every time the manager chooses to create a receipt document by using the Use Filters to Get Src. in the Expected Receipt Date field. Click Run. A warehouse person must handle the items and record their receipt in the program. enter the quantities that have been received on the respective lines. only 25 units out of 30 of item LS-150 arrived. on the Purchase tab. FIGURE 5. Post the receipt document. Click Yes to confirm that you want to post the warehouse receipt. and run the appropriate filter. 7.Inbound window. In the filter card just created. Suppose that all items now arrive at the warehouse. The program retrieves the lines from the purchase order documents and fills in the fields in the Warehouse Receipt window. the program opens the Filters to Get Source Docs. Docs. In the Qty.Inventory Management in Microsoft Dynamics™ NAV 5. . 8. enter 01/24/08. Notice that the program fills the Bin Code field on the line with the item's default bin code. modify. 5-22 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .15 TWO WAREHOUSE RECEIPT LINES CREATED FOR PURCHASES INTO WHITE LOCATION As it appears in the Warehouse Receipt window. 9. Now the manager wants to retrieve all the released purchase orders with the expected receipt date of 01/24/08. on this working date there are two purchase orders (created according the scenario) that meet the parameters specified in the source document filter card.

17 WAREHOUSE RECEIPT LINE SHOWS PARTIAL RECEIPT Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-23 . Lines with no outstanding quantities are removed from the receipt document and those with the outstanding quantities remain. to Receivefield for the receipt lines and calculated the outstanding quantities as the difference between the quantity on the source document and the quantity handled. Updated the Qty. The program has now: • Updated the relevant quantity fields on the lines of the source documents (in this example. Recorded the put-away information for the bin by creating warehouse entries.Chapter 5: Perform Basic Warehouse Tasks The program gives the following message: FIGURE 5. Click OK.16 POSTING CONFIRMATION 10. Receive function for the orders. purchase orders) and run the Post. • • FIGURE 5. specifying the quantity and bin code for the putaway.

The process of using a warehouse put-away document is not described here.0 The warehouse worker must repeat the handling and posting tasks for the remaining receipt line(s) when the items arrive at the warehouse.Inventory Management in Microsoft Dynamics™ NAV 5. which is described in “Pick and Ship Items” in this course. 5-24 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . If the location is set up with a check mark in the Require Put-away field on the location card. accessible from the Warehouse menu. the posting of the warehouse receipt creates a warehouse put-away document. the location does not require put-away processing through separate put-away documents. since it is similar to that of using a warehouse pick document. the function of the warehouse put-away document is to allow the warehouse worker to handle put-away information separately from the warehouse receipt document. Similar to the inventory putaway document. This example combined the actions of receiving and putting-away in one step of posting the warehouse receipt document. This is in accordance with the warehousing setup chosen for the Silver location.

ensuring that the shipment is delivered to the Silver location. The other two must be put away into an available bin. On the first purchase line. Enter 10000 in the Buy-from Vendor No. to Receivefield. 8. Click Purchase→Order Processing→Orders. 7. 4. Receive the correct quantity into the correct bins. Press F11 to post the remaining quantity to bin O-01-0001. 3. Enter 2 in the Qty. 2. and the warehouse worker chooses to use bin O-03-0003.field. to Receivefield. Challenge Yourself 1. and then click OK. When the shipment arrives. Press F11. Look up in the Bin Codefield and select O-03-0003. enter the following information: Item LS-75 5. enter 2. the warehouse worker finds that only two of the pallets can be put away in the bin suggested by the program. The Silver location is set up for mandatory bin usage and warehouse receipts. Step by Step 1. Create and release the purchase order.Chapter 5: Perform Basic Warehouse Tasks Lab 5. Location SILVER Bin O-01-0001 Quantity 4 In the Qty. 9. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-25 . 6.2 – Receive and Put Away from the Purchase Document Scenario A purchaser creates a purchase order for four pallets of item LS-75 from vendor 10000 to be delivered to the Silver location. 2. select Receive. Press F3 to create a new purchase order.

7. Select the most recent purchase order for 30 units of item 70010. 6. Click Functions→Get Source Documents. 10. the warehouse worker must perform a series of activities to make items available for sale and for picking.0 Lab 5. 4. 9. Create and release the purchase order. Click Purchase→Order Processing→Orders. Click Warehouse→Planning & Execution→Receipts. Enter 10000 in the Buy-from Vendor No. 11. Step by Step 1. Item 70010 5. 8. 3. Press F3 to create a new warehouse receipt. 2. enter the following information. Challenge Yourself 1. and enter any bin code. 2. Create a warehouse receipt for all the orders from vendor 40000 with the expected receipt date of 01/24/08. but not put-away. 3.field. The expected receipt date for this order is 01/24/08. Ensure that the items are made available for sale and for picking. 5-26 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .Inventory Management in Microsoft Dynamics™ NAV 5. Location SILVER Quantity 30 Press Ctrl+F11 to release the purchase order. When the items arrive at the warehouse. The Silver warehouse is set up to require receipt. 12. Enter SILVER in the Location Codefield. Add the Bin Codefield.3 – Receive with a Warehouse Receipt Scenario A purchaser at Cronus creates a purchase order for 30 units of item 70010 for vendor 40000. Press F3 to create a new purchase order. Press F11 to post the warehouse receipt. On the first purchase line.

Picking components for production orders is addressed in the Manufacturing training material. In the order-byorder warehousing environment. for a company where items for one order line might come from more than one bin. controlled by respective granules. for a company with straightforward processes where the bin structure is simple. the use of separate pick documents is more appropriate. Conversely. picking and shipping from the order line is appropriate. purchase return orders. Bin Granule (a) Post pick and shipment from the order line Post pick and shipment from an inventory pick document Post pick and shipment from a warehouse shipment document Post pick from a warehouse pick document and post shipment from a warehouse shipment document * * Pick Granule Shipment Granule (b) * (c) * (d) * What differentiates the four methods from one another is how complex the picking process or warehouse organization is for a company. In principle. or where warehouse workers typically do not work with the order documents. four methods exist to support picking and shipping.Chapter 5: Perform Basic Warehouse Tasks Pick and Ship Items This section explains how warehousing functionality in Microsoft Dynamics NAV helps companies efficiently manage picking and shipping outbound orders: sales orders. the company might choose to use a warehouse shipment document and warehouse pick document to separate the picking and shipping tasks. and outbound transfer orders. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-27 . Where a company's picking and shipping processes involve multiple order handling and thus require greater control and overview. the process of shipping outbound orders consists of two major tasks: • • Picking items from the shelves Shipping items out of the warehouse As with the receiving and putting away processes.

the program posts picking and shipping in one step when either of the corresponding documents is posted as shipped. Pick and Ship with Warehouse Documents The fourth method of handling picking and shipping allows companies to plan shipping and picking tasks for multiple orders by means of using a separate warehouse shipment document and warehouse pick document. a warehouse worker uses the specified bin code as an indication of where to find the item for picking.Inventory Management in Microsoft Dynamics™ NAV 5. When the order is posted as shipped. (b). The following sections demonstrate methods (a). In method (d). when the user creates the sales order. The principles behind the functionality of picking and shipping from the order line are identical to that on the receiving side. Pick and Ship from the Order Line Registering the picking information directly on the order line is the simplest method of warehousing in Microsoft Dynamics NAV.0 In the methods (a). companies get an accurate picture of the expected work load and can thus manage the shipping process in the most efficient way. this shipment posting also creates warehouse entries. As in the receiving process. the program posts the pick information as well. 5-28 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . and (d) and explain the implications of each. the program registers the pick first and posts the shipment at a later time from a different document. the program creates warehouse entries. These entries are the records of the decreases in item quantity at the bin level. By creating warehouse shipment documents based on the released orders. or to another warehouse or production. the program automatically fills in the bin information on the order line. A released outbound order represents a request to the warehouse to ship items to customers. so that the bin contents reflect that the items have been taken from the bins. which are the records of where the items were picked from in the warehouse. which was described in detail in the previous section. When the time comes to ship the order to the customer. (b). With this method. This option requires the Shipment granule and that the Require Shipment field on the location card is selected. the example of a sales order is used as the outbound order throughout. as appropriate. upon posting an outbound order or a pick/shipment document from a location set to use bins. In addition to the item ledger entries and value entries for the shipment. and (c). For simplicity.

The warehouse workers can carry out their jobs without having to be tied to the computer to perform lengthy or complicated procedures. the use of pick documents is the best option. They also use this document to register the handled quantities and the bin information. The warehouse worker must now ensure that the shipment is prepared and delivered to the customer. The pick information can then be printed and manipulated as necessary. only displaying the information relevant for the warehouse. the warehouse worker enters bin code information on the pick document rather than handling picking information on the order line. This document is an instruction to the warehouse worker to remove items from the shelves and move them to the packing and shipping area. the warehouse workers use the pick documents as instructions of what and how many items to pick and where to find them in the warehouse. the user must create a warehouse pick document based on the shipment document.Chapter 5: Perform Basic Warehouse Tasks If the location has been set up for processing picks separately from the shipment document (the Require Pick field on the location card contains a check mark). For companies with dedicated warehouse staff. and the Require Pick field on the location card must contain a check mark. Demonstration .Pick and Ship from an Inventory Pick Document Scenario: A salesperson creates a sales order for 50 units of item LS-120 to be shipped to customer 20000 from the Silver warehouse. An inventory pick document is created on the basis of a released outbound order. a company must have the Pick granule. Pick and Ship from Inventory Pick Documents When using separate pick documents. When the user posts the pick document. To prepare the shipment. the program also posts the associated outbound order as shipped. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-29 . The following scenario illustrates how you can create pick documents and use them to efficiently pick and ship. such as: • • A warehousing program must be easy and fast for the users to learn. To use this method. This is because the functionality of the Pick granule offers greater flexibility in terms of meeting their key requirements.

Release the order. 2. Make sure that the items are shipped from the Silver location. for picking to be handled through pick documents. The release of an order is a signal to the warehouse that the order is ready for picking and shipping. select the Require Pick field.18 SILVER LOCATION SET UP FOR WAREHOUSE PICKING Now create the sales order for customer 20000. FIGURE 5.0 As explained earlier.19 SALES ORDER TO BE PICKED FROM DEFAULT BIN IN SILVER LOCATION 3. FIGURE 5. 5-30 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Enter the header and line details for the sales order. Use the Show Column function to make the Bin Code field visible.Inventory Management in Microsoft Dynamics™ NAV 5. you must first set up the warehouse location to require pick. On the Warehouse tab. 1. Open the location card for the Silver warehouse.

7. FIGURE 5. select Silver. the warehouse manager consults the list of released orders and creates a pick document for each. as a part of regular daily activity. Use the Get Source Document function. The warehouse manager has three options for creating a pick document: • • • Create the pick document from the sales order document by clicking functions→create inventory put-away/pick. 6. 8. In this scenario. When the pick document opens. Putaway/Pick batch job found under Warehouse→Planning & Execution. the warehouse manager prefers to create the pick documents for orders one at a time using the Warehouse menu. In the inventory pick document. click Functions→Get Source Document. field and pressing F3. 4. The following steps describe the second option. Create the pick document from the Warehouse menu. create a new document by clicking the No. In the Location Code field. Click Warehouse→Goods Handling Order By Order→Inventory Picks. 5. The Outbound Source Documents window opens to display the released outbound orders for the specified location.20 GETTING THE SOURCE SALES ORDER Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-31 . You can do this in two ways: • • Select the relevant order details in the fields on the inventory pick document header. Create pick documents for several orders from the Create Invt. The next step is to retrieve the information from the sales order to create the pick lines.Chapter 5: Perform Basic Warehouse Tasks Suppose that.

the program has suggested picking the remaining quantity from a bin code with sufficient quantity.S-02-0001 . FIGURE 5. This is the next step. The program now creates the inventory pick lines for item LS-120. The Source No. and the Destination No. The Put-away/Pick No. the Source Type field indicates the type of outbound order.21 PICK LINES CREATED Notice that the document contains two pick lines. The program automatically split the sales order line into two pick lines because the default bin code for item LS120 . if applicable. specifying that the required quantity must be picked from two different bins. Click the line containing the source number for the sales order and click OK. In this example. the source type is Sales Order. In this scenario. no pick document has been created yet. Based on the bin content records (warehouse entries) for the item in question within the specified location. field contains the document number for the outbound order. The Destination Type field indicates that the source document is for a customer.does not contain enough quantity to fulfill the order line.0 In this window. 9.Inventory Management in Microsoft Dynamics™ NAV 5. field contains the customer number. 5-32 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . field contains the number of the put-away or pick document that has been created for the order.

no sufficient item quantity is found in the bin suggested by the program and the required quantity is actually picked from another bin. The need for this can occur when. To record this handling in the program.22 BIN CONTENTS FOR ITEM LS-120 IN SILVER LOCATION This example shows a pick line being split automatically by the program. enter 40 and 10 for the respective lines. Select the first line and click Line→Bin Content List to view the quantities of item LS-120 at the bin level. to Handle field. In the Qty. In the Inventory Pick window.23 INVENTORY PICK READY TO BE SHIPPED Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-33 . writing down the actual quantities and recording any deviations from the printed information. When they are finished. When the pick lines correctly reflect the picked quantities and bin codes. during the picking process. FIGURE 5. the warehouse worker uses the Split Line function available on the inventory pick document. this posting also posts the shipment of the associated sales order. 12. As explained earlier. 11.Chapter 5: Perform Basic Warehouse Tasks 10. Warehouse workers might experience situations where they must split a pick line manually. the warehouse manager can take the written feedback and record the actual pick information in the inventory pick document. FIGURE 5. the warehouse workers can print the pick lines and use the printout to pick the items for the shipment to the customer. the manager can post the inventory pick document. click Posting→Post (or press F11). From the Inventory Pick window.

Notice that the last entry has a source code of SALES.0 13. Notice that the option of posting the order as invoiced is also available for the warehouse workers. represents a transaction opposite to the one associated with the order in question. when processing warehouse activities. Click Ship and OK. NOTE: The Undo Quantity function is not available when the process of putting away/picking is performed by means of using the separate warehouse documents of inventory put-aways and inventory picks. Now. In the example of a negative sales line. Select the last line and click Register→Warehouse Entries to see the warehouse entries that correspond to the pick. the program creates an appropriate warehouse document. The program's warehousing functionality also supports the practice used by some customers of creating order documents with negative lines.Inventory Management in Microsoft Dynamics™ NAV 5. A negative order line. for example. Click Warehouse→History→ Registers→Registers. a negative sales order line stands for an inbound order of sales return. This is the register for the pick just posted. in essence. FIGURE 5. The program posts the picking information and the shipment. view the inventory records at the bin level by looking at the warehouse registers created by the posting. the program creates a put-away document. 15. This means that. In the example of a negative sales line. 14. This can be relevant in situations where the invoice document serves as a shipment note to be handed over to the shipping agent. the program ensures that the corresponding warehouse entries reflect the corresponding inventory movement at the bin level. The Undo Quantity function is also not available when you post a shipment from a warehouse shipment document (using the Shipment granule). the warehouse entry represents an increase in the bin contents. 5-34 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Where separate inventory warehouse documents are used to process warehouse activities.24 WAREHOUSE ENTRIES CREATED BY THE PICK The pick and shipment of the items is now complete.

Chapter 5: Perform Basic Warehouse Tasks If the location has not been set up for separate pick processing but the bin usage is mandatory. The following scenario describes the processes of creating shipment for items to pick. The warehouse worker also use this document to register the handled quantities. For simplicity. picking the items and shipping them to customers using Cronus. When the warehouse completes handling the shipping process. FIGURE 5. The document can be printed to help warehouse workers in the picking process. The warehouse worker must perform a series of activities to ship the items to the customer. only a sales order is used as an outbound source document. If the order document is an outbound transfer order. The first step is to ensure that the Silver location requires shipment processing through warehouse documents. they then post the ship lines when the items leave the warehouse. you must set up the Silver location for both pick and ship processing. In this example. the warehouse worker must record the bin information on the warehouse shipment lines. Posting the shipment at the same time registers the pick information. the program creates a posted transfer shipment. Select the Require Shipment field. Demonstration .Pick Using a Warehouse Pick Document and Ship Using a Warehouse Shipment Document Scenario: A salesperson at Cronus creates a sales order for 20 units of item LS120 and 47 units of item LS-150 for customer 30000. the associated order document (sales order or purchase return order) is ready for invoicing. 2. 1. A document with ship lines is an instruction to the warehouse worker to pass the picked items to the shipping agent. Open the location card for the Silver warehouse. Click the Warehouse tab.25 SETTING SILVER LOCATION UP TO REQUIRE WAREHOUSE SHIPMENT Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-35 . The order must be shipped from the Silver warehouse.

5-36 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . a warehouse manager assigns quantities of items from available inventory to outbound source document lines. Create and release the sales order: FIGURE 5. In the Location Code field. Shipment. then the program retrieves source document lines from all locations that require warehouse shipment processing. press enter to assign a number to the document. 5. a shipment line can also be sent to the warehouse shipment document directly from an order document by clicking Functions→Create Whse. field.0 3. that is. In the No. At this stage. To make the picking process more efficient. 6. Continue to handle the released sales order as follows: 4. As in the case of receiving. NOTE: If you do not select a location code for a specific warehouse shipment. select the Silver location. Press F3 to create a new warehouse shipment. Based on the list of all released outbound orders. make specific lists of items to be picked for shipment. The Warehouse Shipment window appears. managers can sort the lines in various ways by setting certain parameters.26 SALES ORDER RELEASED Creating a shipment document is the first stage in the flow of items out of the warehouse. such as who must do the picking and what sorting method to apply.Inventory Management in Microsoft Dynamics™ NAV 5. Click Warehouse→Planning & Execution→Shipments. managers create shipment documents.

and the program copies the information from the source document(s) into the shipment lines. In the Bin Code field on the shipment header. The manager must now fill in the shipment document with lines of the released outbound source documents (in this example. The program automatically suggests the bin code from which to pick the items. Click Functions→Use Filters to Get Src. The manager can view a list of all released orders with lines to be shipped at the selected warehouse. the manager has two options: • Click Functions→Get Source Documents. sales orders). The manager can then select the order to retrieve. Click Functions→Get Source Documents.27 GETTING THE SOURCE SALES ORDER Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-37 . The manager can use filters to select the source documents that are necessary to retrieve lines according to the specified criteria. but the user must specify on the warehouse shipment header the bin code to which items are placed after being picked and from which they are shipped. 7. the program regards the item movement from the shelves to the shipping dock as a movement from a picking bin to a shipping bin. FIGURE 5. To do this. • Suppose that the manager decides to use the Get Source Documents function to create a warehouse shipment document 8. select S-09-0001. for which quantities have not yet been assigned. Assume that bin code S-09-0001 has been selected as a shipping bin for the shipment in question.Chapter 5: Perform Basic Warehouse Tasks Since the Silver location is set up for mandatory bin usage as well as to require both shipment and picking documents. Docs.

5-38 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Use the Show Column function to make the Bin Code field visible. The user can choose a sorting method for the pick lines in the Sorting Method for Activity Lines field.Inventory Management in Microsoft Dynamics™ NAV 5. NOTE: Handling a picking task only with the warehouse shipment document is based on the assumption that the shipping bin code information is irrelevant and therefore must not be selected on the document header. FIGURE 5.28 WAREHOUSE SHIPMENT CREATED For locations not requiring a separate pick processing. the program suggests a default bin code as a picking bin for each shipment line. the picking document must now be created from the warehouse shipment document. 9. Analogous to the other warehousing scenarios. in this case. the user can assign a user ID in the Assigned User ID field. The warehouse manager now creates a picking document for the items required to fulfill the order. In the Whse. the program creates warehouse entries with bin information.0 The program retrieves the source documents and creates the lines in the Warehouse Shipment window. Since the Silver location has been set up to require pick documents.Create Pick window. When the warehouse worker post the picking information. Click Functions→Create Pick. The Set Breakbulk Filter field is only applicable when the program is set up to use warehouse management systems. the warehouse employees can print the shipping document with bin code information and use it as an instruction for where in the warehouse to find the items.-Shipment .

Click OK. The Take line is. a Take and a Place line for each item. so that the warehouse worker filling in the pick document must enter the quantity manually.Chapter 5: Perform Basic Warehouse Tasks A check mark in the Do Not Fill Qty. The program gives the following message: FIGURE 5. Click Warehouse→Goods Handling Multiple Orders→Picks and browse to the picking document you just created. FIGURE 5. to Handle field tells the program that the Qty. to Handle field must be set to zero initially. a pick line indicating from where the items are to be picked. 10.29 WAREHOUSE PICK CREATED 11. in essence. Use the Show Column function to make the Action Type and the Bin Code fields visible. The worker can print the pick list by placing a check mark in the Print Document field.30 WAREHOUSE PICK SHOWING A TOTAL OF FOUR ACTIONS Notice that in the pick document. The program creates a picking document. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-39 . Click OK. the program creates two pick lines for each shipment line. 12. while the Place line specifies a shipping bin to which the picked items are to be placed before shipping.

As a result. the program has updated the Qty. 5-40 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . To proceed with the shipping process: 14. to Ship fields and set the document status to Completely Picked. Registering essentially differs from the posting function in that it does not affect inventory availability but simply recognizes the fact that the items have been moved from one place to another within the same warehouse. the warehouse worker must record this action in the program through the Register function.31 WAREHOUSE SHIPMENT COMPLETELY PICKED In the warehouse shipment document. Click Yes to confirm that you want to register the document. the program has now created: • • A registered pick document Warehouse entries to record the pick information at the bin level The warehouse worker must now pass the picked items to the shipping agent and post the shipment lines when the items leave the warehouse. This is because the default bin is currently empty. Upon moving items to the shipping dock. To complete the shipping process: 15. 13. and the program detected that bin S-02-0002 contains the required picking quantity. Click Registering→Register Pick. FIGURE 5.Inventory Management in Microsoft Dynamics™ NAV 5.0 Notice that the program suggested bin S-02-0002 instead of the default bin S-020001 on the Take line for item LS-120. Browse to the shipment document created earlier in this demonstration. Click Post→Post Shipment (or press F11).

FIGURE 5. Select Ship. 16. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-41 .Chapter 5: Perform Basic Warehouse Tasks The program offers the possibility of posting the shipment and at the same time invoicing the associated outbound order document(s).32 THE SALES ORDER IS SHIPPED FROM THE WAREHOUSE The shipment has now become both a posted warehouse shipment and a posted sales shipment. and click OK.

Click Warehouse→Orders & Contacts→Sales Orders. Challenge Yourself 1. 12. Click Functions→Get Source Document. enter SILVER. Enter 50 in the Qty to Handlefield. Press F3 to create a new sales order with the following information: Customer 30000 4. 10. 3. 7. Select the sales order just created. Press F3 to create a new inventory pick. 2. Process the pick and shipment. deselect the Require Shipmentfield. 6. Item LS-75 Location SILVER Quantity 50 Press Ctrl+F11 to release the sales order. Create and release the sales order. The warehouse manager creates inventory picks from the released source documents and ensures that the pick is completed and that the shipment is posted. In the Location Codefield.Inventory Management in Microsoft Dynamics™ NAV 5. Press F11 to ship the sales order. 11. 5-42 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Change the Silver location to not use warehouse 2. Click Warehouse→Goods Handling Order By Order→Inventory Picks. 3.4 – Pick and Ship with Inventory Pick Documents Scenario A salesperson enters a sales order for 50 PCS of item LS-75 for customer 30000 to be shipped from the Silver location. On the SILVER location card. 9. to Shipfield. 8. Click Functions→Create Inventory Put-away/Pick. Enter 50 in the Qty. 5. which encompasses: • Creating the inventory pick • • Ensuring that the picked quantity is recorded Posting the pick and shipment Step by Step 1. 13.0 Lab 5.

Create and release the sales order. Open the warehouse shipment again (notice that Qty. Press F3 to create one new sales order with the following information: Customer 30000 Item 1900-S 1908-S 3. Click Warehouse→Orders & Contacts→Sales orders. 4. Click Functions→Create Whse.5 – Ship with Warehouse Pick and Ship Documents Scenario A salesperson at Cronus creates a sales order for 30 units of item 1900-S and 52 units of item 1908-S for customer 30000. Click Warehouse→Goods Handling Multiple Orders→Picks. and then click Yes. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-43 . Location GREEN GREEN Quantity 30 52 Press Ctrl+F11 to release the sales order. click Functions→Create Pick. 2. Shipment.Chapter 5: Perform Basic Warehouse Tasks Lab 5. 9. 6. 5. Challenge Yourself 1. 8. Press F11 to ship the sales order. In the Warehouse Shipmentwindow. Process the pick and shipment. 2. The warehouse worker must perform a series of activities to ship items to the customer. which encompasses: • Creating a warehouse shipment document • • • Creating a warehouse pick document Registering the pick Posting the shipment Step by Step 1. The order must be shipped from the Green warehouse. Press F11 (or click Registering→Register Pick). 7. to Ship field is filled).

The following scenario describes how movements and adjustments are performed with warehousing in Microsoft Dynamics NAV. such as transfers between locations or quantity adjustments within the same location. Click Functions→Get Bin Content to open the Whse. when the user posts a warehouse movement. Get Bin Content window. 2. Click Warehouse→Planning & Execution→Item Reclass. Adjustments might be necessary if a real gain or loss of items occurs. Movements and quantity adjustments in warehousing are simple processes to learn and perform because. A company may need to move items to different bins to re-organize a section of the warehouse. and New Bin Code fields visible.Move Items to Bin S-02-0001 Scenario: The warehouse manager discovers that the bin usually used to store item LS-120. For this reason. fill in the fields of the journal.Inventory Management in Microsoft Dynamics™ NAV 5. users occasionally need to move items from bin to bin or to adjust the quantity recorded in the program for a bin. 1. for an example like this one where the full content of one bin must be moved to another bin. The fields can be filled in individually but. that the movement of items from one bin to another within the same warehouse represents a change in the physical placement of items but essentially does not affect the inventory quantity in that warehouse. Journals to open the item reclassification journal. S-02-0001 is running low and wants to replenish it with the contents of bin S-02-0002. Demonstration . the program creates both item ledger entries and warehouse entries when the user posts the journal. in principle. the user can apply the Get Bin Content function to speed up the process. When the user adjusts quantities in a warehouse that is set up for mandatory bin usage. Bin Code. they are parallel to those of other regular inventory movements and adjustments. 5-44 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . such as items being found that were previously thought lost or items becoming broken or unusable. Use the Show Column function to make the Location Code.0 Move and Adjust Items in Warehouse In the course of daily activity. The manager must perform a series of steps to ensure that the movement of items from one bin to another is recorded accurately in the program. the program only creates warehouse entries but no item ledger entries. Now that all the necessary fields are visible. Create a movement using the item reclassification journal. The important difference is.

Press F11 (or click Posting→Post). 6. select the Silver location and look up from the Bin Code field to open the Bin List window. In the New Bin Code field. The item reclassification journal now contains a line for item LS-120 specifying the bin code from which the item is to be moved and the quantity currently contained in that bin. the bin whose contents must be moved.33 READY TO GET FILL THE RECLASSIFICATION JOURNAL WITH BIN CONTENT 5. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-45 . FIGURE 5. Select the line for bin code S-02-0002. 7. 4. Click OK.34 BIN CODE READY TO BE CHANGED The item reclassification journal is now ready to be posted.Chapter 5: Perform Basic Warehouse Tasks 3. the bin code to which the contents must be moved. In the Location Code field. enter S-02-0001. FIGURE 5. Click Yes to confirm the posting. and then click OK.

and in the Item No. In the Entry Type field. Open an item journal. select Negative Adjustment. without creating item ledger entries. In the Quantity field of the item journal. The program fills in the Bin Code field with the item's default bin. Use the Show Column function to make the Bin Code field visible.Inventory Management in Microsoft Dynamics™ NAV 5.35 BIN S-02-0001 READY TO BE ADJUSTED WITH MINUS FIVE UNITS 4. enter LS-120. To make sure that this bin contains the quantity to be adjusted. check the bin contents by looking up from the field. Demonstration . select the Silver location. 1. one indicating the decrease in contents in bin code S-02-0002 and another indicating increase in bin code S-02-0001. FIGURE 5. enter 5. field.0 The program posts the movement by creating two warehouse entries. 2. The program creates item ledger entries and warehouse entries that adjust the quantity in the bin to reflect the change. The warehouse manager performs this work in an item journal.Adjust Quantity in Bin S-02-0001 Scenario: Suppose that in the course of moving the items. a warehouse worker discovers that five of the items have been broken. This is the quantity to be adjusted. The warehouse manager determines that they are unsuitable for sale and that the quantity must be reduced in the program. Post the item journal. Click Yes to confirm the posting. 3. In the Location Code field. 5-46 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .

enter the quantity of all the items that are currently in bin S-01-0001 (750 pcs). Challenge Yourself Create an item reclassification journal line that moves all units of items LS-75 currently in bin S-01-0001 to the closest empty bin in Silver location. item number LS-75. 2. Click Warehouse→Goods Handling Order by Order→Bin Contents. Look up up the Bin Codefield and find S-01-0001. Proceed to check that bin S-01-0001 in Silver location is now empty: 8. 7.Move Ten Loudspeakers to an Empty Bin Scenario The warehouse manager needs to move all available loudspeakers. 4. 6. Notice the value in the Quantityfield (750 pcs).6 . Step by Step Click Warehouse→Inventory→Item Reclass. Journals. 5. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-47 . Confirm in the Bin Contentswindow that the full quantity is now moved from one bin to another. Look up from the New Bin Codefield and select the first bin code that has the Empty field selected. enter SILVER.Chapter 5: Perform Basic Warehouse Tasks Lab 5. In the Quantityfield. In the Location Codefield. 9. 3. to another bin in Silver location to make room for repairs to the default bin. enter Silver. In the Location Codefilter field. Press F11 to post the movement. 10. 1.

items must be quickly found in the warehouse. Moreover. Additionally. in companies that experience high turnover of warehouse workers. and reliability in warehousing operations are of utmost importance to the bottom line of competitive companies. warehouse workers must be able to focus on carrying out physical movements rather than spending time in front of computers recording information. data accuracy.0 Summary Efficiency.Inventory Management in Microsoft Dynamics™ NAV 5. 5-48 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . To guarantee short order handling time. the ability to train them quickly in how to use the program is highly relevant.

but not the Receipt granule. In the Bin Content window. what do the Fixed and Default fields mean? 3. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-49 .Chapter 5: Perform Basic Warehouse Tasks Test Your Knowledge 1. Where in Microsoft Dynamics NAV do you set up the warehousing options that trigger the different warehousing features. such as receipt handling or pick handling? 2. ( ) Post both receipt and put-away from the warehouse receipt document. ( ) Post both receipt and put-away from the inventory put-away document. What documents do you use to post the receipt and putaway of a purchase order? ( ) Post receipt from the purchase order and post put-away from the warehouse put-away document. ( ) Post both receipt and put-away from the purchase order. Suppose that you have the Put-away granule and the Bin granule.

0 4. 5. If you used the Bin granule. it is not possible to filter by dimensions. When you use the Bin granule and post a transaction such as a receipt of an item to a bin. the program creates ____________ entries in addition to item ledger entries and value entries. 5-50 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .Inventory Management in Microsoft Dynamics™ NAV 5. True or False: When running the Calculate Inventory function to create physical inventory journal lines for a location with bins. how do you record a movement from one bin to another bin in Microsoft Dynamics NAV? 6.

Chapter 5: Perform Basic Warehouse Tasks Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter: 1. 2. 3. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-51 .

4. MODEL ANSWER . Where in Microsoft Dynamics NAV do you set up the warehousing options that trigger the different warehousing features. such as receipt handling or pick handling? MODEL ANSWER . The Default field indicates that the program must always suggest this bin when the user performs a transaction for the item. ( ) Post both receipt and put-away from the purchase order.In the Bin Content window. the program creates ____________ entries in addition to item ledger entries and value entries. What documents do you use to post the receipt and putaway of a purchase order? ( ) Post receipt from the purchase order and post put-away from the warehouse put-away document. (•) Post both receipt and put-away from the inventory put-away document.Inventory Management in Microsoft Dynamics™ NAV 5. the Fixed field indicates that the bin normally contains the item. In the Bin Content window. ( ) Post both receipt and put-away from the warehouse receipt document.0 Solutions Test Your Knowledge 1. but not the Receipt granule.Set up the warehousing options for a location on the location card.warehouse 5-52 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . what do the Fixed and Default fields mean? MODEL ANSWER . Suppose that you have the Put-away granule and the Bin granule. When you use the Bin granule and post a transaction such as a receipt of an item to a bin. 2. 3.

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 5-53 .Chapter 5: Perform Basic Warehouse Tasks 5.If you used the Bin granule. 6. you record a movement of items from one bin to another by using the item reclassification journal. how do you record a movement from one bin to another bin in Microsoft Dynamics NAV? MODEL ANSWER . it is not possible to filter by dimensions. MODEL ANSWER . True or False: When running the Calculate Inventory function to create physical inventory journal lines for a location with bins.True: When running the Calculate Inventory function to create physical inventory journal lines for a location with bins. If you used the Bin granule. it is not possible to filter by dimensions.

Inventory Management in Microsoft Dynamics™ NAV 5.0 5-54 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-1 . Print serial/lot number documents and reports. those dealing with hazardous products). such as: • • • • When it was received Where it was placed When it expires Which customer bought it and when The functionality is based on using serial and lot numbers and allows the user to receive and ship multiple quantities with serial and lot numbers from a single order line entry. While monitoring an item's transaction flow can be obligatory in certain businesses (for instance. The Item Tracking granule in Microsoft Dynamics NAV provides a company with an easy-to-use tracking system. the ability to keep track of items increases in importance to the companies in the supply chain. which represent the transaction history of each individual item with serial and/or lot numbers. Item tracking entries. Handle inbound serial lot numbers. other businesses may find it advantageous to monitor products that are associated with warranties or have expiration dates. Handle outbound serial/lot numbers. are the records used to trace an item along its movement through the supply chain. Navigate with serial/lot numbers.Chapter 6: Handle Serial/Lot Numbers CHAPTER 6: HANDLE SERIAL/LOT NUMBERS Objectives The objectives are: • • • • • • • • • Set up item tracking. Reserve items with serial/lot numbers. Trace posted serial/lot numbers throughout the supply chain. Introduction As the flow of goods in the modern supply chain becomes more complex. which can take into account information about each unique piece of merchandise. Distinguish when and how to use serial/lot numbers. Handle serial/lot numbers on inventory.

Consider the item tracking codes set up at Cronus.1 ITEM TRACKING CODES SET UP IN CRONUS The Item Tracking Codes window contains a list of six item tracking codes created at Cronus. 1. a company must first set it up for item tracking by applying a particular item tracking code. The details of each tracking code are specified on the item tracking code card.0 Set Up Item Tracking The item tracking setup consists of three elements: • Item Tracking Codes setup:An item tracking code defines which item parameters (serial number. Serial and Lot Number setup:When a company wants to assign serial and lot numbers to items automatically. FIGURE 6. Click Warehouse→Planning & Execution→Setup Inventory→Item Tracking Codes. Item setup:To track a specific item. Based on careful planning.Inventory Management in Microsoft Dynamics™ NAV 5. Cronus has set up a number of item tracking codes that are applied to certain items. or both) the program uses to track the items and in which operational areas they are handled. The setup may also include a serial/lot number series and expiration formula. • • Set Up Item Tracking Codes The item tracking codes reflect the different considerations that a company has in respect to the item tracking parameters and areas where the tracking is applied. The process of setting up these number series is similar to that of other number series and is part of the General Ledger Setup. they must set up a number series for the program to use. 6-2 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . lot number.

FIGURE 6. tab specify the details of the item tracking by lot number as well as the operational area where the tracking is applied. you must set this up in the item tracking codes being used. As the contents of these fields indicate. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-3 .2 SETUP CARD FOR THE LOTALL ITEM TRACKING CODE The fields on the General tab specify the code name and the description for the item tracking code. tab and select the Lot Warehouse Tracking field. Since this tracking code is applied only to items with lot numbers. In some of the following demonstrations. tab is not set up for this code. 4. Click the Serial No. 3.3 LOTALL BEING SET UP TO REQUIRE LOT TRACKING IN WAREHOUSE ACTIVITIES The fields on the Lot No.Chapter 6: Handle Serial/Lot Numbers 2. Click the Lot No. Select the LOTALL code. Therefore. the Serial No. FIGURE 6. items to which this code is applied are tracked by a lot number. tab. item tracking is used for warehousing. click Item Tracking Code→Card.

Selecting the Lot Warehouse Tracking field indicates that a lot number is required for every warehouse activity. outbound. This means that the user must enter a lot number on the item tracking line before posting any purchase. The check mark in this field cannot be deleted once a check mark is placed in the Lot Specific Tracking field. In the remaining check mark fields. 5. or both) the program must apply lot tracking. Click the Misc. This means that when you sell a unit of the item. a lot number assigned to the item when it is entered into inventory must follow that item type out of inventory. Cronus has decided to require lot tracking on inbound and outbound documents in all areas. the user can define in which operational area(s) and on what stage of the item flow (inbound.0 Selecting the Lot Specific Tracking field indicates that when handling an outbound unit of the item in question. sale. for the item tracking code in question. For instance. Must Exist field (inbound or outbound) indicates that documents with positive entry for items that require lot numbers cannot be posted before lot number information is created. NOTE: The program does not allow a user to remove a check mark from this field if the program detects that item tracking entries exist for items to which this tracking code is applied. tab: FIGURE 6. This decision is reflected in the setup. you must always specify which existing lot number to handle. This is done by placing check marks in the corresponding field(s). where the corresponding fields contain check marks. it must be applied against a specific pool of lot numbers in inventory.4 SETUP OPTIONS ON THE MISC. Selecting the Lot No. Selecting the Lot Transfer Tracking field indicates that a lot number is required on the item tracking line before item transfer lines can be posted. In other words.Inventory Management in Microsoft Dynamics™ NAV 5. Info. and positive or negative adjustment entries for items with this item tracking code setting. TAB 6-4 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .

In other words. Consider the following scenario. while creating item cards). the fields on the Misc. This option is mostly used for items that cannot be used after they expire. It is recommended that you now learn the setup of the other item tracking codes created at Cronus because these codes have been applied to some existing items used in examples in the following sections. Because warranties and expiration dates are irrelevant to the items to which the LOTALL item tracking code is applied. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-5 . The program does not allow posting of a document with entries for the items when it detects that the posting takes place after the expiration date. This field relates to the Expiration Calculation field on the Item Tracking tab of an item card. a company must set up item tracking information when they add items to their inventory file (that is. and expiration calculation are item properties that are a part of every posting record for that item.Chapter 6: Handle Serial/Lot Numbers The fields on this tab define two additional parameters related to a specific item tracking code: warranty date and expiration date. field indicates that a warranty date on the item tracking line for items with serial or lot numbers must be entered manually before a document with entries for these items can be posted. field indicates that an expiration date on the item tracking line for items with serial or lot numbers must be entered manually before a document with entries for these items can be posted. In the Warranty Date Formula field. Warranty Date Entry Reqd. You have now looked at the setup of one of the item tracking codes: LOTALL. If a company wants to start tracking an item for which posting records already exist. these properties must be set up before the item has been involved in any transaction. Selecting the Man. Expir. Item tracking code. the user can enter a formula that the program uses to calculate the warranty date on the item tracking line entries for items that require a serial or lot number. Selecting the Man. Set Items Up for Item Tracking The following demonstrates how the item tracking codes and number series for serial/lot numbers can be applied to items to use the item tracking functionality. Date Entry Reqd. Therefore. serial/lot numbers. tab are not activated. they must create a new item card and on that new card set up the relevant item tracking information. Selecting the Strict Expiration Posting field indicates that an expiration date assigned to the item tracking number as it entered inventory must be respected when it exits inventory.

Browse to item 80102-T. For example. serial/lot numbers are required at each stage of their handling throughout the company. Among the items that have been set up for item tracking are items 80102-T and 80218-T. before the posting of the corresponding entries is allowed.Inventory Management in Microsoft Dynamics™ NAV 5. while for others. This means that the program requires the user to apply serial numbers to this item at all stages of item handling. the company has chosen to apply different tracking methods.0 Demonstration . Go to the item tracking code card for SNALL code and select the SN Warehouse Tracking field.Set Up an Item for Item Tracking Scenario: Cronus has a number of items on their inventory file that are set up for item tracking. 6-6 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . FIGURE 6. and still others by both numbers. 1. others only by lot numbers. Take a close look at the setup details for these items. 2. Similarly. Click Warehouse→Planning & Execution→Items. Depending on the type of each specific item. except warehousing. The number series for the serial numbers when assigned to this item is SN1. 3. NOTE: Load a clean Cronus database without changes to the data.5 ITEM TRACKING SETUP OF ITEM 80102-T Notice that the SNALL item tracking code is selected for this item. The item is not tracked by lot number. for some items. only at the point of sale. Click the Item Tracking tab. Open the item tracking code card for the SNALL code to see the setup details. some items are to be tracked only by serial numbers.

including the types of items handled. For instance. companies may have different internal processes for handling and tracking serial and lot numbers. they can choose to: • • • Manually record the vendor's original item serial/lot numbers. In that case. When to Use Serial/Lot Numbers This section explains how the item tracking functionality of Microsoft Dynamics NAV can support companies in managing the task of handling items throughout inbound and outbound transaction processes. Depending on the business relationships with vendors and customers. FIGURE 6.Chapter 6: Handle Serial/Lot Numbers 4. Manually or automatically assign new serial/lot numbers. 5. Browse to item 80218-T and click the Item Tracking tab. There is no number series for serial numbers set for this item. Go to the item tracking code card for LOTSNSALES code and select the Lot Warehouse Tracking field. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-7 . depending on whether or not items already have serial/lot numbers assigned. The number series for the lot numbers assigned to this item is LOT. Define and automatically assign customized serial/lot numbers. Open the item tracking code card for the LOTSNSALES code to see the setup details.6 ITEM TRACKING SETUP OF ITEM 80218-T The selection of LOTSNSALES in the Item Tracking Code field indicates that serial numbers are required for this item when you are posting the sales entries and that lot numbers are required when you post all entries (except warehouse documents). some companies may want to start the tracking process from the moment items arrive at the company's warehouse.

rather than from the moment they arrive at a warehouse. The alternatives depend on whether or not the items have already been assigned serial/lot numbers. Still others may choose to track items from the moment they are purchased up to the moment they are sold. Items with vendors’ SN Enter numbers manually: Vendors’ numbers New numbers Enter numbers automatically: Assign new numbers Define and assign customized numbers * * * * * * * * * * Items with vendors’ LN Items with no SN/LN Other companies may want item tracking applied to items only when they are sold to the customers. The alternatives depend on whether or not the purchased items already have the vendor's serial/lot numbers. The following table summarizes the alternatives provided in Microsoft Dynamics NAV for how to handle the shipment of items that require item tracking at the point of sale. Items with assigned SN Enter numbers automatically: Assign own numbers Create and assign customized numbers * * Items with assigned LN Items with no SN/LN 6-8 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .0 The following table summarizes the alternatives provided in Microsoft Dynamics NAV for how to handle the receipt of items that require item tracking at the point of purchase.Inventory Management in Microsoft Dynamics™ NAV 5. The way of handling the shipment of items with item tracking required at the point of sale depends on a company's decision concerning item tracking on the purchase side.

Automatic registration is typically used in warehouse pick and put-away processes. including item tracking information. no matter what procedure the company chooses. Handle Inbound Serial/Lot Numbers As with the general warehouse activities. companies have different procedures when receiving serial/lot tracked items on purchase orders. Demonstration . The order is shipped to the Blue location. Barcode Registration of Item Tracking Information Company processes often require the use of automatic registration of goods information. where it is important that warehouse workers can register the movement of the goods quickly and easily. five units of item 80218-T and seven units of item 80208T. The way to assign serial/lot numbers is almost the same in the program. This is often handled with barcode readers/scanners placed physically where registration takes place. and the system is therefore designed so that new numbers cannot be assigned automatically. and item 80208-T without serial or lot numbers. assignment of serial/lot numbers has already taken place. item 80218-T with lot number(s). At this point in the process. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-9 .Chapter 6: Handle Serial/Lot Numbers Items with assigned SN Select from already existing numbers Enter numbers manually: Enter numbers manually * Items with assigned LN * Items with no SN/LN * The following sections explain some of the most common processes through the use of scenarios. Another situation where inbound serial/lot numbers require handling is the output of produced items with serial/lot numbers.Assign Serial/Lot Numbers to a Purchase Order Scenario: A purchaser at Cronus places an order with vendor 50000 for five units of item 80103-T. The vendor usually ships item 80103-T with serial numbers.

If a purchaser attempts to post the receipt without entering the serial numbers.0 The person receiving the items must enter the serial/lot numbers for the arrived items in the program. Create a purchase order for five units of item 80103-T. the program requires the entry of serial numbers on the item tracking lines for the first item and the entry of lot numbers for the second item before the receipt can be posted. 6-10 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . and seven units of item 80208-T for vendor 50000. SNALL.Inventory Management in Microsoft Dynamics™ NAV 5. to be received at the BLUE location. 1.7 PURCHASE ORDER CREATED FOR THREE ITEM-TRACKED ITEMS Because of item tracking codes that are applied to the first two items. and LOTSNSALES. FIGURE 6. five units of item 80218-T.8 WARNING ABOUT MANDATORY SERIAL NUMBER TRACKING NOTE: You cannot use negative quantities in sales and purchase when you are using item tracking. the program gives the following message: FIGURE 6.

including the name and description of the item tracking code applied to a particular item. by running the Assign Serial No. function. The top panel of this window contains a summary of the information on the lines. The user can enter serial numbers for the item in the following ways: • Automatically.Chapter 6: Handle Serial/Lot Numbers Proceed to enter serial numbers for item 80103-T. 3. FIGURE 6. so that the program assigns serial numbers to the items based on the number series specified for a specific item. Manually. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-11 . by running the Create Customized SN function. Click Functions→Create Customized SN. a warehouse person chooses to run the Create Customized SN function. • • Suppose that to assign the serial numbers at the receipt of the purchase order in an efficient way. In the Purchase Order window. so that the program assigns serial numbers to the items based on the parameters defined by the user specifically for the arrived items. 2.9 EMPTY ITEM TRACKING LINES FOR FIRST PURCHASE ORDER LINE The Item Tracking Lines window is used to record detailed information for an item concerning serial/lot numbers. Automatically. select the first line and click Line→Item Tracking Lines. by entering a specific serial number for each item unit.

In the Increment field. 4. specify the parameters that define a certain pattern in the serial numbers of the arrived items.Inventory Management in Microsoft Dynamics™ NAV 5. In the Customized SN field. This number reflects the fact that the serial numbers assigned by vendor 50000 to five units of item 80103T increase by one. This is the starting number in the number series assigned to the items by vendor 50000. By entering a number in the Increment field. enter SN-85C31. You can modify it. Click OK. The program creates five individual serial numbers starting from SN-85C31 and ending at SN-85C35 and creates corresponding item tracking lines: FIGURE 6. if necessary. enter 1. 5.11 SERIAL NUMBERS ASSIGNED TO THE FIRST PURCHASE LINE 6-12 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .10 CUSTOMIZED SERIAL NUMBERS READY TO BE ASSIGNED 6. The Quantity to Create field contains the quantity on the line by default. FIGURE 6. you define the increase between values of two sequential numbers in the number series.0 In the Enter Customized SN window.

8. the quantity in the Qty. to Receive field on the purchase line.12 LOT NUMBER ASSIGNED TO THE SECOND PURCHASE LINE 11. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-13 . To post the order. This is the lot number assigned to the items by the vendor. to Receive field for the line(s) with missing item tracking lines must be zero. click Line→Item Tracking Lines. This is because all individual items on the purchase line have been assigned an item tracking line. In the Lot No. In the Purchase Order window. select the second line. select Receive. In the Quantity field. Close the Item Tracking Lines window. If the user created item tracking lines with less quantity than the quantity in the Qty. Close the Item Tracking Lines window and post the purchase order as received: press F11. 9. and the purchase order will not be posted until the full quantity is assigned. FIGURE 6. enter LOT-TD5. and then click OK. then there will be an undefined quantity. the purchase order is not posted. the program posts the information about serial/lot numbers that was recorded for the items in the posted purchase order.Chapter 6: Handle Serial/Lot Numbers Notice that the Undefined fields on the top panel are blank. 7. NOTE: For purchase orders with more than one line. field. Proceed to assign a lot number to the purchase line for item 80218-T. All five units of item 80218-T are part of the same lot 10. enter 5. In the Item Ledger Entry table. if item tracking lines have not been created for at least one line.

The vendor ships this item with serial numbers and always delivers one unit a day. enter 3. 3.Inventory Management in Microsoft Dynamics™ NAV 5. Release the order. 2. The purchase order must not be invoiced until it is completely received. To perform this scenario.0 Assign Serial/Lot Numbers to Partial Receipts Companies often have to receive order quantities in separate portions. NOTE: Partial handling of item tracking numbers is possible from any type of order or warehouse document. then serial/lot numbers can be assigned to the received quantities only.13 PURCHASE ORDER READY FOR PICKING 6-14 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . FIGURE 6.Assign Serial/Lot Numbers to a Partial Receipt and Put-Away Scenario: A purchaser at Cronus places an order with vendor 10000 for three units of item 80102-T. Demonstration . The following scenario shows how to assign serial/lot numbers partially during receipt/put-away process using an inventory put-away document (requires the Put-away granule). bin number S-02-0001. The warehouse worker does not have access to the purchase order and therefore handles the receipt and put-away using an inventory put-away document. If such partial receipts require item tracking. The units must be placed at Silver location. 1. Create the purchase order for Silver location for three units of item 80102-T. make sure that Silver location is set up to require Putaway and not Receive. to Receive field. In the Qty.

The put-away is created. and then find the inventory put-away document just created. then the program will make sure that the items with the earliest expiration date are picked first when outbound. fields. Click Warehouse→Goods Handling Order by Order→Inventory PutAways. Click Functions→Create Inventory Put-Away/ Pick. begin by buying five items and apply expiration dates before posting them to inventory. This principle is called First-Expire-First-Out (FEFO). With the Show Column function. Leave the default options and click OK. When the next receipt is to be handled. To enable the demonstration “Pick the First Serial Number to Expire” later in this chapter. field. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-15 . 5. Press F11 to post (Receive) the inventory put-away.Receive Items with Expiration Dates If expiration dates are assigned to serial/lot numbers when inbound. the warehouse worker repeats steps 8-10 with the remaining two lines.Chapter 6: Handle Serial/Lot Numbers 4. Demonstration . and S-02-0001 in the Bin Code field. add the Bin Code and Serial No.14 PUT-AWAY DOCUMENT READY TO BE POSTED PARTIALLY 10. to Handle field. 6. Proceed to handle the items in the warehouse. FIGURE 6. enter 334 in the Serial No. 8. 9. 7. In the first inventory put-away line. Enter 1 in the Qty.

because it will make it easier to illustrate later how the system sorts the item ledger entries when outbound. 1. Create the following item tracking lines: Serial no.0 Scenario: A warehouse worker is about to receive four used 17” monitors and must assign different expiration dates to each monitor. 6-16 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . 4. Press F11 to post (Receive) the purchase order. 1 1 1 1 FIGURE 6. SN00021 SN00022 SN00023 SN00024 Expiration Date 01/24/08 01/24/07 01/24/06 01/24/09 Qty. 3. Create a purchase order for any vendor on work date with this purchase line: Item 80102-T Location BLUE Quantity 4 2.15 EXPIRING SERIAL NUMBERS NOTE: Make sure that the expiration dates are created as shown for each serial number.Inventory Management in Microsoft Dynamics™ NAV 5. Open the Item Tracking Lines window and add the Expiration Date field to your view.

the assigned serial/lot numbers are still attached. the serial/lot numbers can be assigned either to the purchase order line or to the sales order line. Therefore. Handle Serial/Lot Numbers on Inventory Items with serial/lot numbers may be handled in different internal warehouse activities. The Information in the Item Tracking Lines window is locked for editing during the drop shipment process. Refer to "Trace Serial/Lot Numbers" for demonstrations involving produced output. using the Item Tracking Lines window. NOTE: The detailed procedures for how to transfer items between locations are described in "Transfer Between Locations" in this course. certain principles of handling transfer orders that distinguish transfer functionality from other application areas mean that tracking items in transfer has some distinct features. refer to "Transfer Serial/Lot Numbers. the two transactions share the same Item Tracking Lines window. as described in the previous and following sections." which is governed by similar principles. after ended manufacturing. However. One of those principles defines that shipment and receipt is done from one and the same transfer line. For more detail. Depending on the process.Chapter 6: Handle Serial/Lot Numbers Assign Serial/Lot Numbers to Drop Shipments Companies selling goods that are delivered directly from the vendor to the customer may need to assign serial/lot numbers to the delivered goods. the posted output provides item tracking entries for future tracing of the produced item. Thereby. including: • • • Transfers between locations Reclassification/movement Counting Transfer Items with Serial and Lot Numbers Procedures for handling and tracing items with serial and lot numbers that are being transferred between different locations are similar to those applied when items are purchased and sold. Assign Serial/Lot Numbers to Production Output Serial/lot numbers can be assigned to items on production order lines in the same manner as on a purchase order. The program ensures that serial/lot numbers are synchronized between the sale and the purchase. When the produced item is entered on an output journal line. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-17 .

In the Item Tracking Lines window.Inventory Management in Microsoft Dynamics™ NAV 5. 3. Click Line→Item Tracking Lines→Shipment. 1. Although shipped complete from the Blue warehouse. the warehouse worker must enter the serial numbers of the individual items to be shipped: 2. Before shipping the order.Transfer Five Serialized Monitors to Red Location Scenario: A Cronus employee creates a transfer order for five units of item 80103-T from the Blue to the Red warehouse. Create a transfer order for five units of item 80103-T for the Blue to the Red locations.0 Demonstration . Warehouse persons shipping the order from the Blue location and receiving it at the Red location must ensure that the information concerning serial numbers is recorded correctly. FIGURE 6. the order arrives at the Red warehouse in two shipments of two and three units. The item tracking code applied to this item specifies that the item must be transferred with serial numbers.16 DEFAULT ITEM TRACKING LINES FOR SELECTION 6-18 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . click Functions→Select Entries.

Close the Item Tracking Lines window and post the shipment of the transfer order. the warehouse person must enter the serial numbers of the arrived items.Select Entries window.17 ITEM TRACKING LINES CREATED 5. to Receive field. Suppose now that the first two units arrive at the Red location.18 UNDEFINED FIELD SHOWS THAT THREE ARE NOT RECEIVED Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-19 . Click Line→Item Tracking Lines→Receipt. 7. and then click OK. FIGURE 6. FIGURE 6. enter 2. In the Item Tracking . click OK to select the entries for the item tracking lines. 6. select Ship. press F11. Five units of item 80103-T are currently in transit. In the Qty. When receiving the items.Chapter 6: Handle Serial/Lot Numbers 4.

As in the case of all other inbound and outbound item transactions with serial/lot numbers. to Handle (Base) field for lines with serial numbers from S/N-85C33 to S/N-85C35. The warehouse worker can enter the serial numbers of the arrived items by changing the quantities in the Qty. LOG. and then click OK. FIGURE 6.0 The fields in the top panel of the Item Tracking Lines window specify order quantity and quantity to receive on both the transfer order and the associated item tracking lines. In the Qty. The records in the Item Tracking Entries window reflect the transaction history of each individual unit of the item. 10. enter 0. as indicated by the corresponding quantities in the Remaining Quantity field at the in-transit location OUT. The lines specify individual serial numbers and quantities entered when the order was shipped. 8. Additionally. the posting of the transfer order results in the program posting records containing serial or lot numbers to the item tracking entries table.Inventory Management in Microsoft Dynamics™ NAV 5. Notice that three items with serial numbers from S/N-85C33 to S/N-85C35 are still in transit. he or she must ensure that the serial numbers on the lines correspond to the serial numbers of the arrived items. Suppose that items with serial numbers from S/N-85C33 to S/N-85C35 are not among the two units that arrived at the Red warehouse. 6-20 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Open the item card for item 80103-T and click Item→Entries→Item Tracking Entries. Close the Item Tracking Lines window and post the receipt of the transfer order: press F11. where they can be used to trace items. select Receive.19 UNDEFINED FIELD IN BALANCE 9. to Handle (Base) field to zero for those item serial numbers that have not yet arrived.

20 ITEM TRACKING ENTRIES RESULTING FROM THE PURCHASE AND TRANSFER OF ITEM 80103-T Suppose that the remaining three units of item 80103-T arrive at the Red warehouse.21 LAST THREE SERIAL NUMBERS READY TO BE RECEIVED Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-21 .Chapter 6: Handle Serial/Lot Numbers NOTE: When receiving a transfer. This is to ensure that item tracking numbers remain unchanged. simply confirm that the remaining serial numbers are recorded. all the other fields of the Item Tracking Lines form are locked for writing. and then close the window. 12. FIGURE 6. FIGURE 6. Return to the transfer order and click Line→Item Tracking Lines→Receipt. In the Item Tracking Lines window. The warehouse person must enter the serial numbers of the arrived items. 11.

Inventory Management in Microsoft Dynamics™ NAV 5. This design aligns with that of general data reclassification in reclassification journal lines. Click Warehouse→Inventory→Item Reclass. Close the Item Tracking Lines window and post the final receipt of the transfer order. Serial/lot information cards hold information about how many of the serial/lot numbers are expired. 2. It also shows how to manage serial/lot number information cards. Journals. 6-22 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Reclassify Serial/Lot Numbers When the Item Tracking Lines window is opened from a reclassification journal. Add the Location Code field to your view. All these features are illustrated in the following demonstration. Scenario: The warehouse worker. are automatically carried to the new serial/lot number during reclassification. fields are located directly on the item tracking line. When the serial/lot number information cards create a new serial/lot number information card. users can copy from existing serial number or lot number information cards by selecting from the Serial No. the program gives the following warning message: “You cannot handle more than 1 unit” 13. must change the expiration date of a particular serial number on the 17” M780 Monitor. including any attached comments.0 If the user tries to change the quantity in the Qty. The worker must also record the change in a serial number information card with an attached comment. It was wrongly entered as 01/24/09 and must be changed to 01/24/07.Change Expiration Date and Group in Lot This demonstration shows that the reclassification of serial/lot numbers aligns with the standard design of entering data into New fields next to the original. Start by reclassifying SN00024: 1. information List window. and New Serial No. to Handle (Base) field for lines with serial numbers that have already been received. Serial/lot number information records. and then group all expired monitors into a new lot called EXLOT. Demonstration . The fully handled transfer order is deleted. in the Expired Inventory field. the New Lot No.

This indicates that SN00024 is not expired. review the serial number information card. The Expired Inventory field enables users to review availability in relation to expiration date. FIGURE 6.22 SN00024 ABOUT TO BE RECLASSIFIED Notice that the expiration date assigned when the monitor entered inventory is displayed as shaded to indicate that it cannot be edited on the item tracking line.Chapter 6: Handle Serial/Lot Numbers 3. Open the Item Tracking Lines window. 5. Open the serial number information card again and enter the text “Expired” in the Description field. 6. Notice that the quantity is zero. look up from the Serial No. field and select SN00024 (earliest expiration date). Information and go to the Inventory tab. 7. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-23 . Create the following item reclassification journal line on work date: Item 80102-T Location BLUE Quantity 1 4. Go back to the item tracking line and change the preset date in the New Expiration Date field to 01/24/06 (two years before work date). Before changing the expiration date. Click Line→Serial No.

FIGURE 6. FIGURE 6.Inventory Management in Microsoft Dynamics™ NAV 5. SN00024 now has the correct expiration date and the inventory worker can continue to group all expired monitors under a new lot number. Click Serial No. and item tracking lines windows and then post the reclassification journal. Create the following item reclassification journal line on work date: Item 80102-T Location BLUE Quantity 2 11.23 COMMENT DEFINED ON THE SERIAL NUMBER INFORMATION CARD 9.0 Continue to enter a comment for the information card instructing order processors to sell this monitor at a 20% discount. 8.→Comment and enter this comment on work date.24 ITEMS WITH EARLIEST EXPIRATION DATES ARE PRE-SELECTED 6-24 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Open the Item Tracking Lines window and use the Select Entries function to select the two oldest available monitors. information. Continue to group expired serial numbers in a new lot: 10. Close the comment.

Review the Inventory tab to confirm that SN00024 is expired: Expired Inventory field = 1. click Line→New Serial No.25 NEW LOT NUMBER ENTERED Before posting this reclassification. With the pointer on the item tracking line of SN00023. 12. review the result of the first reclassification of SN00024. 15.Chapter 6: Handle Serial/Lot Numbers As all four items carry expiration dates. field. Then continue to create the new lot. FIGURE 6. and then Functions→Copy Info. FIGURE 6. Select the item tracking line of SN00024 (now expires 01/24/06) and open its serial number information card. 14. Refer also to the demonstration titled “Select the First Serial Number to Expire”. On each item tracking line. Click OK to carry the suggested lines to the Item Tracking Lines window. 13. enter EXLOT in the New Lot No. Before creating the new lot. Information. continue to document the same discount policy for SN00023. the system suggests SN00023 and SN00024 (earliest expiration dates).26 LIST OF ALL SERIAL NUMBER INFORMATION RECORDS Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-25 .

• • NOTE: After registering warehouse physical inventory (with WMS documents). and bin In locations with Bin Mandatory and without Directed Put-away and Pick. The two expired monitors are now reentered into inventory with complete serial number information cards and grouped in one lot. This completes the description and demonstration of improved usability for the reclassification of serial/lot numbers. field in the report request form contains a check mark. location. the (whse. each serial number on its own line. this window lists several serial number information records. However. and bin. 16. Close the comment.0 Notice that a list of all existing serial number information records is provided from which users can drill down to detailed information and copy to the new information card. 6-26 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . the report lists serial/lot numbers by item. zone. and without SN Warehouse Tracking and Lot Warehouse Tracking. the following rules will govern the display of serial/lot numbers. and with SN and/or Lot Warehouse Tracking. Count Inventory of Serial/Lot Numbers If the Show Serial/Lot No. the report lists serial/lot numbers by item and location In locations with Bin Mandatory and without Directed Put-away and Pick. the report lists serial/lot numbers as a summary by item In locations with Directed Put-away and Pick. the Physical Inventory List report will also list serial/lot numbers for counting. Click OK to create the same information and comment for SN00023 as for SN00024. 17. This also applies to the corresponding counting documents within Warehouse Management Systems (WMS): The Warehouse Physical Inventory List report and the Warehouse Physical Inventory journal. the same count must be entered and posted in the Physical Inventory journal to synchronize warehouse entries with item ledger entries. information card. BEST PRACTICES: In ordinary circumstances. usually created upon receiving the item.) report lists serial/lot numbers item. Refer to the “Warehouse Management Systems” course.Inventory Management in Microsoft Dynamics™ NAV 5. in the basic and advanced reports respectively. according to the warehousing complexity as defined by location setup: • • In locations without Bin Mandatory and without Directed Put-away and Pick. and item tracking lines windows and then post the reclassification journal (press F11).

Prepare the physical inventory journal and calculate inventory. 3. and continues to do the physical counting. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-27 . Scenario: The warehouse worker in charge of location BLUE must perform the annual count of inventory items carrying serial/lot numbers. In the process. 1. 2. 4. Do not enter filters.27 LAST SIX LINES OF THE RESULT OF THE CALCULATE INVENTORY FUNCTION This demonstration focuses on how to count serial/lot numbers. The worker initiates the process by filling the physical inventory journal with calculated inventory quantities. FIGURE 6.Chapter 6: Handle Serial/Lot Numbers Demonstration . prints the Physical Inventory List report. and therefore only the bottom five journal lines. for serial/lot-numbered items. Continue to prepare the physical inventory report by clicking Print. (Calculated) field. select the Show Serial/Lot Number field as well as the Show Qty. Then run the calculation. but on the Options tab. the worker records that one M780 monitor is missing and that a forgotten lot of ten hard disks are found. are shown.Count Serial/Lot Numbers in Blue Warehouse This demonstrates the tasks involved in performing physical inventory of items with serial/lot numbers. Click Warehouse→Inventory→Physical Inventory Journals. Click Functions→Calculate Inventory and set a location code filter for BLUE.

Inventory Management in Microsoft Dynamics™ NAV 5. The quantity of each (here. With the printout in hand. the warehouse worker now goes into BLUE warehouse to perform a detailed physical inventory. all the items are serialized) is shown in the Quantity (Base) field and each serial/lot number has a separate line in which to enter the counted quantity. INVENTORY LIST REPORT FOR SERIAL/LOT NO. COUNTING Notice that serial/lot numbers are listed in extra information columns under the item in question. 6-28 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .28 PHYS.0 5. and scroll to page 2. FIGURE 6. down to serial numbers. Preview the Physical Inventory List report.

8. (Phys. to indicate which one is missing. the negative figures. Inventory) column of the printed sheet. Regarding the ten found hard disks. FIGURE 6. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-29 . (Phys. the worker enters this count at the bottom of the sheet and remind himself that they must be recorded under a new lot number.29 COUNTED SERIAL NUMBERS ENTERED ON PRINTOUT Notice that on the line of item 80102-T. and that a forgotten lot of ten hard disks with serial numbers SN01 to SN10 have reappeared. NOTE: The warehouse worker does not count the three computer packages as they are currently requested on open sales orders. Click Lines→Item Tracking Lines. therefore. 7. The worker writes the counted quantities of each item or serial/lot number on the empty lines in the Qty. the warehouase worker discovers that one monitor M780 (SN00021) is missing. Back in the physical inventory journal that contains the calculated BLUE inventory. Continue to enter the count in the physical inventory journal. M780 Monitor. select the line for item 80102-T. Notice that the Entry Type and Quantity fields are updated. Enter 3 instead of 4 in the Qty. the worker enters 3 on the empty line behind the calculated 4. Inventory) field. 6. and then he enters 1 for each counted serial/lot number.Chapter 6: Handle Serial/Lot Numbers In the process of counting BLUE inventory.

field. Click Functions→Create Customized SN. Inventory) field to 15 (existing five plus the ten found) and access the Item Tracking Lines window. In the physical inventory journal. 11.30 ASSIGNING CUSTOMIZED SERIAL/LOT NUMBERS Go back to the physical inventory journal and post the inventory adjustments. FIGURE 6. Hard Disk. 10. 13. 14. 12. FIGURE 6.0 9. select SN00021. field. select the line for item 80218-T. Press F11 to post the physical inventory journal with counted serial/lot numbers at Blue warehouse. Change the Qty.31 COUNTED SERIAL/LOT NUMBERS READY FOR POSTING 15. Look up from the Serial No.Inventory Management in Microsoft Dynamics™ NAV 5. Select the Create New Lot No. and then click OK. Enter SN01 in the Customized SN field. carrying the recorded serial/lot number details. 6-30 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . (Phys. and close the Item Tracking Lines window.

This is dynamically named and adapted depending on which of these it is opened by using: • • Select Entries function – to select all needed serial/lot numbers in one action Lookup (F6) from the Serial No. Buying items from vendors with the serial/lot numbers already assigned and using the same numbers when selling the items. The availability calculation used for serial/lot numbers is based on a simple formula. it is important to emphasize that the more consistently a company sets up their number series for serial and lot numbers. the calculation is: Available = quantity in inventory – (all demands + quantity in the current ITL window not yet written to database) NOTE: This formula implies that the serial/lot number availability calculation only considers inventory and ignores projected receipts. the more efficient the process. The availability overview is provided within one central lookup window. Depending on the established internal policies and business relationships with customers. companies may have different processes for tracking sold items. Also. Availability of Serial/Lot Numbers Outbound order processors get detailed information about availability problems or conflicting use of serial/lot numbers at the point in time when they select serial/lot numbers for outbound documents. For any given serial and/or lot number. warning symbols appear on the item tracking line as soon as a conflicting serial/lot number or quantity is entered on an item tracking line of an outbound document. Examples of these processes are: • • Buying items from vendors without serial/lot numbers and then assigning the company's own numbers when selling the items. Handle Outbound Serial/Lot Numbers Companies assign serial/lot numbers to the items they sell to customers so they can track down individual items for returns and service contracts.field – to select one serial/lot number Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-31 . In the situation where a company chooses to assign their own serial and lot numbers. field or the Lot No.Chapter 6: Handle Serial/Lot Numbers This completes the demonstration of tasks involved in counting and recording serial/lot numbers.

Inventory Management in Microsoft Dynamics™ NAV 5. This includes the one being handled (Total Requested Quantity) How many are reserved on the document line being handled How many are reserved on all unposted document lines When it expires (if carrying an expiration date) When its warranty expires (if carrying a warranty date) Refer to the demonstration “Selling from a Specific Lot” for detailed descriptions of the user tasks involved in guaranteeing that a customer receives items from a specific requested lot – without making reservations. but not yet committed to the database (Current Pending Quantity) How many are assigned to all unposted document lines.Assign New Serial/Lot Numbers to a Sales Order ATTENTION: Load a clean Cronus database without changes to the data.0 Both selection methods take the user to the Item Tracking Summary window (dynamically named depending on where it is opened from). This displays availability information for each serial/lot number about: • • • • • • • How many are in inventory (Total Quantity) How many are selected for the item tracking line being handled. 6-32 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . The order is to be shipped from the Blue warehouse and must be assigned serial numbers for future item tracing. Scenario: Cronus customer 20000 places an order for five units of item 80208-T. Demonstration .

2. entry of the serial numbers can be done automatically: Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-33 . The person shipping the order must therefore enter the serial numbers for this item. the program will block the process according to the rules of the SNALL item tracking code. namely that serial numbers must be assigned.32 SALES ORDER LINES CREATED Because of the item tracking code applied to the item. This process is mostly done with some sort of bar code reader. Create the sales order for five units of item 80208-T to customer 20000 to be shipped from Blue location. After the warehouse worker has picked the items from inventory.Chapter 6: Handle Serial/Lot Numbers The salesperson creates the sales order. 1. Select the sales line for item 80208-T and click Line→Item Tracking Lines. Because there is a number series for serial numbers set up for this item. FIGURE 6. This item is usually purchased without serial/lot numbers but it is required (by the item tracking code applied to this item) to be sold with serial numbers. the program requires of the warehouse worker that serial numbers are assigned on the item tracking lines for item 80208-T before the order can be posted. If the warehouse worker forgets and tries to ship without serial numbers. SNSALES. he assigns the serial numbers in questions to the item tracking lines of the sales line.

Click Functions→Assign Serial No.34 REQUEST FORM FOR CREATING NEW SERIAL NUMBERS 6-34 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . the user can modify this quantity. The Enter Quantity to Create window appears. FIGURE 6.33 REQUEST FORM FOR CREATING NEW SERIAL NUMBERS By default. the Quantity to Create field contains the quantity copied from the sales line. The program automatically assigns serial numbers to each individual unit of the item: FIGURE 6. 4. If necessary. Click OK.0 3.Inventory Management in Microsoft Dynamics™ NAV 5.

5. where new serial numbers are only assigned. item 80216-T. It can be any lot number.Sell from a Specific Lot The preceding demonstration dealt with assigning new serial numbers. select Ship. Refer to “Sell from a Specific Lot” for a relevant demonstration. a production planner requesting warehouse workers to pick components from a specific inventory lot. except they indicate that the serial numbers in question are obviously not in inventory. another order processor has already randomly selected some of the available Ethernet cables from LOT0002 for another customer who is not concerned with the lot number. However. In this scenario. Demonstration . Accept the availability warning. The sales order is ready for shipment to the customer. Close the Item Tracking Lines window. LOT0002. 6. is about to create a sales order for ten Ethernet cables. This instills confidence that the serial/lotnumbered supply they are promising to customers in unposted sales orders can be fulfilled at posting time. The customer. The order processor dealing with the Cannon Group can communicate the exact availability of LOT0002 and agree on a compromise offer when the customer is on the telephone.Chapter 6: Handle Serial/Lot Numbers Notice that the Availability. This means that outbound transactions with this item must be assigned a lot number selected from inventory (fully applied). such as. field has a warning icon. the warnings do not make much sense. which are all working well. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-35 . Before this sales negotiation. NOTE: Item 80216-T is set up with lot-specific tracking. and then click OK. For this purpose. is skeptical of the quality of the cables. it must exist in inventory. Cannon Group PLC. and has requested that the ten cables be from the same batch as their last delivery. NOTE: Similar scenarios can apply to other situations of outbound order handling. the program provides an overview of serial/lot number availability as decision support to order processors at the time of selecting the serial/lot numbers. Serial No. Press F11. The following demonstrates the more common situations where serial/lot numbers are selected from inventory. Scenario: An order processor at Cronus International Ltd. not selected from inventory.

1.Inventory Management in Microsoft Dynamics™ NAV 5. and -0004. The resulting item ledger entries for item 80216-T must be as follows. Add the Lot No. Continue with the steps of the other order processor. 3. LOT0002 LOT0003 LOT0004 Quantity 10 10 10 HINT: To auto-assign the lot numbers from number series. 4.0 Start by creating inventory for LOT0002. 2. -0003. field to your view. Create this sales order line for any customer on work date: Item 80216-T Location BLUE Quantity 12 6-36 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .35 ITEM LEDGER ENTRIES AFTER POSTITIVE ADJUSTMMENT Data is now created and ready to start the sales order process. FIGURE 6. Create the following positive inventory adjustments on work date: Item 80216-T 80216-T 80216-T Location BLUE BLUE BLUE Lot no. click Functions. open the item ledger entries of item 80216-T. After posting the item journal. who auto-selects twelve pieces from any lot. Assign Lot No.

Click OK to carry the default selection to the Item Tracking Lines window and then close it. Select Entries. Open the Item Tracking Lines window and then click Functions. 6. if there is only one of each serial number. The Selected Quantity field is preset with a suggested selection of the needed quantity.Chapter 6: Handle Serial/Lot Numbers 5. 7. FIGURE 6. create the specified sales order for ten pieces from LOT0003. before they copy the selected quantities to the item tracking lines. ATTENTION:Do not process the first sales order any more. ordered by lot and serial number sequence. Create this sales order line for Cannon Group PLC on work date: Item 80216-T Location BLUE Quantity 10 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-37 .36 THE SYSTEM PRE-SELECTS THE REQUIRED QUANTITY The Item Tracking – Select Entries window (an adapted display of the Item Tracking Summary window) provides an overview of the serial/lot number availability for item 80216-T. Now that the unspecified sales order is created by using ten pieces from LOT0002 and two pieces from LOT0003 that are committed and awaiting posting. Users can edit the suggested quantities as they like. Continue to try to select the ten pieces from LOT0003.

37 WARNING ICON INDICATES THAT NOT ALL TEN ARE AVAILABLE Notice that a yellow triangle icon is displayed in the Availability. field. Total Available Quantity of -2 are (un)available to select. FIGURE 6.38 AVAILABILITY DETAILS FOR LOT0003 The Availability window is an adapted display of the Item Tracking Summary window that contains the current availability picture for LOT0003 only. • • • • Total Quantityof 10 are required on the sales line Total Requested Quantity of 2 are selected for to another sales line Current Pending Quantityof 10 are entered in the current ITL window but not yet committed to the database. and Quantity (Base) fields. field and 10 in the Quantity (Base) field. (The warning icon acts on values in the Serial No. 6-38 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . FIGURE 6..0 8. Lot No.Inventory Management in Microsoft Dynamics™ NAV 5. Lot No. field to see details. Click the icon in the Availability.) 9. This is an availability warning to indicate that one or more values entered on the item tracking line is not feasible according to the availability of LOT0003. Open the Item Tracking Lines window and manually enter LOT0003 in the Lot No. Lot No.

Put the pointer in the last line (LOT0004) and then click OK. 12. field to select from the current availability of lot numbers for the Ethernet cable at BLUE location. and that the last two will be from LOT0004. two must still be selected from inventory for this sales order.40 THE LAST TWO PIECES ARE SELECTED FROM LOT0002 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-39 . 11. Close the availability details for LOT0003 and change the value in the Quantity (Base) from 10 to 8. as indicated in the Undefined column in the header of the Item Tracking Lines window. The customer agrees to the terms. and that the last two must be selected from another lot. However. 10.) The order processor informs the customer that only eight Ethernet cables from LOT0003 are available. (The first line represents the ten pieces selected by the other order processor in step 6 of this demonstration.Chapter 6: Handle Serial/Lot Numbers The order processor is now aware that only eight Ethernet cables with LOT00003 are available. In the second (empty) item tracking line. This indicates that the entry performed in step 10 has not yet been committed to the database as the Item Tracking Lines window has not been closed. The warning icon disappears to indicate that those eight are available and can be committed to the sales order. look up from the Lot No.39 UPDATED AVAILABILITY OF LOT NUMBERS Notice in the second line that the current pending quantity is 8. FIGURE 6. FIGURE 6.

0 Notice that the system has selected the needed quantity of two from LOT0004. the order processor uses a function that updates availability calculations across all concurrent writing of serial/lot numbers in the database. to both users in each of their instance of the window. FIGURE 6. for example. ATTENTION: Do not process or post the two sales orders.” Also. if. The order processor has now secured the requested lot numbers and can move on to the next customer. However. From the Item Tracking Lines window. NOTE: The availability refresh function is automatically performed when the Item Tracking Lines window is closed. There are availability warnings on one or more lines.41 REFRESH MESSAGE – NO WARNINGS In this case.Inventory Management in Microsoft Dynamics™ NAV 5. The selections are committed to the database. 6-40 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . click Functions→Refresh Availability. 14. the system will give this warning upon running the refresh function: “The data used for availability calculation has been updated. the other order processor had gone in to select more pieces of LOT0002. To ensure that no other users have been trying to select these serial/lot numbers when they were not committed to the database. reassured that the Cannon Group order can be posted successfully at any time. 13. Close the Item Tracking Lines window. no other users have selected from the involved lot numbers and therefore there are no availability conflicts. the yellow warning icon will be displayed on the affected item tracking lines.

Open the item card of item 80103-T. Start by adjusting the SNALL item tracking code to use a default number series for serial and lot numbers. SN00001SN00010 SN00011SN00020 Lot no. The following demonstrates how outbound order handlers can use the extra level of availability control offered with the handling of serial/lot numbers across multiple bins. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-41 . Enter serial/lot numbers into different bins by creating the following positive inventory adjustments on work date: Item 80103-T 80103-T Location SILVER SILVER Bin S-04-0001 S-04-0002 Serial no. field and LOT in the Lot No. 10 10 HINT: To auto-assign the serial/lot numbers from number series. On the Item Tracking tab. 3.Chapter 6: Handle Serial/Lot Numbers Demonstration . click Functions. Scenario: The warehouse manager is optimizing inventory at SILVER location that is set up for bin control. LOT0005 LOT0006 Qty. She must transfer 14 serial/lot-numbered 19” monitors from bin S-04-0001 to BLUE location in no specific bin. and then enter item-tracked inventory to a particular bin in SILVER location: 1. It also shows how to easily select multiple serial/lot numbers in one action. Assign Serial No . Open an item journal and add the Bin Code field to your view.Select Serial/Lot Numbers from a Bin If the item is handled at a location that requires a bin. field. Now this item tracking code is ready for a demonstration of selecting serial and lot numbers from specific bins. the Item Tracking Summary window displays availability information for that particular bin. 4.and put a check mark in the Create New Lot No. field. 2. 19” Monitor. enter SN1 in the Serial No. This makes it easier to pick in bin-controlled environments.

0 The first set of item tracking lines must look as follows: FIGURE 6.43 TEN SERIAL/LOT NUMBERS GOING INTO BIN S-04-0002 6-42 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .Inventory Management in Microsoft Dynamics™ NAV 5.42 TEN SERIAL/LOT NUMBERS GOING INTO BIN S-04-0001 The second set of item tracking lines must look as follows: FIGURE 6.

the Select Entries function only pre-selects what is available in the specified bin. namely ten pieces. From the transfer order line. FIGURE 6. although the transfer line quantity is 14. Continue to select available serial/lot numbers to transfer.44 THE SYSTEM PRE-SELECTS WHAT IS AVAILABLE IN THE BIN Notice that. click Line→Item Tracking Lines→Shipment. Open a transfer order and add the Transfer-from Bin Code field. 5. The warehouse manager creates the transfer order for 14 pieces. 14 7. notices that only ten are available and decides to supplement with four pieces from another bin. 8. Create this transfer order on work date (you must manually select any in-transit code): Transferfrom Code SILVER Transferto Code BLUE Item 80103-T Transfer-from Bin Code S-04-0001 Qty.Chapter 6: Handle Serial/Lot Numbers Setup and data is now ready to start the transfer order processing. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-43 . but upon selecting serial/lot numbers from bin S-04-0001. Click Functions→Select Entries. 6.

12. Reopen the Item Tracking Lines window and use the Select Entries function. change the quantity to 10. 9.46 THE LAST FOUR ITEMS ARE PRE-SELECTED FROM ANOTHER BIN 6-44 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . FIGURE 6. FIGURE 6. She selects it to determine which and how many serial/lot numbers the bin holds. Click OK to carry the selected serial/lot numbers to the Item Tracking Lines window and close it.Inventory Management in Microsoft Dynamics™ NAV 5. 10. 11. 14. Create a second transfer order line for the same item and look up from the Transfer-from Bin Code field. Select the second bin content line. In the first transfer order line.0 The warehouse manager clearly sees that the bin only contains ten and decides to look into supplying the last four from another bin. Enter 4 in the Quantity field. 13.45 OVERVIEW OF AVAILABILITY IN BINS The warehouse manager sees that the hard disk drive is also available in bin S04-0002. and then click OK.

This particular model shows bigger repair frequency the longer it is stored in inventory before sale. reassured that bin S-04-0001 is emptied and that the requested quantity of 14 will be transferred to BLUE location. Scenario: An order processor is about to sell one 17” M780 Monitor. 1. Expiration date control functions within the system help the order processor pick the monitor with the earliest expiration date.Chapter 6: Handle Serial/Lot Numbers Notice that because the new transfer order line specifies bin S-04-0002. the Select Entries window now shows availability details for that bin only and has pre-selected the requested quantity. Demonstration . that expiration date will be displayed in shaded font and read-only in the Item Tracking Lines window when that serial/lot number is outbound. Such serial/lot numbers are sorted by earliest expiration date so that outbound order handlers can easily select items by first-expire-first-out (FEFO). The following demonstrates how to store and handle serial/lot numbers according to their expiration date. The warehouse manager can now continue to have the items picked for the transfer shipment. 15. Create this sales order line for any customer on work date: Item 80102-T Location BLUE Quantity 1 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-45 . the following scenario may seem unrealistic as it uses computer hardware from the Cronus demonstration data. This sorting functionality also applies when the Select Entries function is used to select serial/lot numbers. This functionality is required in certain industries (for example those under the American Food & Drug Administration (FDA) and is useful for perishable goods. Therefore. Click OK to select the four serial/lot numbers for the second transfer line.Select the First Serial Number to Expire If an expiration date is defined for the serial/lot number when it entered inventory.

6-46 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . the system will auto-select serial/lot numbers by expiration date in locations set up for Pick according to FEFO (setup field located on the Bin Policies tab of location cards). Refer to “Change Expiration Date and Group in Lot.0 2. and that the system has pre-selected the monitor that expires first. FIGURE 6. warehouse picks. Click Line→Item Tracking Lines and use the Select Entries Function. warehouse movements. This indicates that the date was recorded as it entered inventory and cannot be changed.” The demonstrated functionality of sorting serial/lot numbers by expiration date applies to all outbound handling of serial/lot numbers carrying expiration dates. In inventory picks. and the related worksheets. Select the serial number by clicking OK. NOTE: Serial/lot numbers without expiration date will be listed last. except by reclassification. 3.47 ITEM WITH EARLIEST EXPIRATION DATE IS PRESELECTED Notice that the available items are sorted by expiration date.Inventory Management in Microsoft Dynamics™ NAV 5. Notice in the Item Tracking Lines window that the existing expiration date is shaded.

Cronus customer 10000 places an order for 15 units of item 80216-T.field Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-47 . 3.field. Challenge Yourself 1. Register the vendor's lot numbers for the arrived items. Press F3 to create a new purchase order. Click Purchase→Order Processing→Orders. 2. 8.8 units in lot L/N-HW301 and 12 units in lot L/N-HW320. Ship and invoice the order. Enter 10000 in the Buy-from Vendor No. The vendor usually ships this item with lot numbers. 6. The order should be shipped from the Blue warehouse. Enter the following item tracking lines: Lot No. The order must be shipped to the Blue location. 4. L/N-HW301 L/N-HW320 Quantity (Base) 8 12 7. Handle the sales order according to the rules set up for the item in the item tracking code. Receive and invoice the order. 4. 5. 6. 3. Step by Step 1. Close the Item Tracking Lineswindow.1 – Buy and Sell Items with Serial/Lot Numbers Scenario A purchaser at Cronus places an order with vendor 10000 for 20 units of item 80216-T. 20 Location Blue 5. Enter 111 in the Vendor Invoice No. Handle the purchase order according to the rules set up for the item in the item tracking code.Chapter 6: Handle Serial/Lot Numbers Lab 6. This time they shipped the order with two lots . Create a purchase line with the following information: Item 80216-T Qty. Create a sales order for 15 units of item 80216-T for customer 10000. Click Line→Item Tracking Lines. Look up and select the available lot numbers. Create a purchase order for 20 units of item 80216-T for vendor 10000 to Blue location. 2.

11. Post the purchase order (Receive and Invoice). 10. Click OK.field.0 9. 20. 16. 18. 19. 6-48 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Click Sales & Marketing→Order Processing→Orders. Enter 7 in the line for L/N-HW320. close the Item Tracking Lines window. Create a sales line with the following information: Item 80216-T Qty. Enter 10000 in the Sell-to Customer No. Post the sales order (Ship and Invoice). 17. 15 Location Blue 14. 12. Press F3 to create a new sales order. 15. 13. Click Line→Item Tracking Lines.Inventory Management in Microsoft Dynamics™ NAV 5. The Select Entriescolumn suggests to select from another existing lot. you must change this. Click Functions→Select Entries. Enter 8 in the line for L/N-HW301.

release it. Set SILVER location up to require pick and pick according to FEFO. 10. 3. Step by Step 1. Post 10 pieces of item 80103-T to bin S-04-0001 in SILVER location with an expiration date of 01/24/08 (work date). 9. Challenge Yourself 1. 11. Click Functions→Assign Serial No. 7. fields in the inventory pick document. Open the card for Silver location. Select the Pick According to FEFOfield on the Bin Policies tab. Create a sales order for 5 17” monitors from SILVER location. 2. Click Sales & Marketing→Order Processing→Orders.2 . Close the ITL window and post the item journal. Click Warehouse→Setup→Locations. 4. (Use F8 to copy it to all lines). No serial/lot numbers are specified on the sales order and he therefore relies on the system to auto-pick the items with the earliest expiration dates. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-49 . Do not define item tracking lines. enter work date (w) in the Expiration Datefield. 4. Open an item journal and create a positive inventory adjustment with the following information: Item 80103-T Qty. 12. Create an inventory pick for SILVER location and get the sales order as source document. 5. Click OK to the default options to create 10 new serial numbers from the number series. must pick five hard disk drives from expiration datecontrolled inventory at SILVER location. 3. Click Line→Item Tracking Lines.Chapter 6: Handle Serial/Lot Numbers Lab 6. 10 Bin Code S-04-0001 Location Silver 6. Press F3 to create a new sales order for any customer.Auto-Pick Monitors by FEFO Scenario The warehouse worker. 2. 8. 5. Show the Serial No. Select the Require Pickfield on the Warehouse tab.and Lot No. On each item tracking line.

Enter Silver in the Location Codefield 18. Five pick lines are created. Look up in the any of the Serial No. Press F3 to create a new pick. 16.0 13.Inventory Management in Microsoft Dynamics™ NAV 5. 6-50 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . bin S-040001.fields and verify that among all the available inventory of item 80103-T in Silver location. Create a sales line with the following information: Item 80103-T Qty. 15. Click Functions→Get Source Document. Click Warehouse→Goods Handling Order By Order→Inventory Picks. 17. 19. 5 Location Silver 14. the serial numbers with expiration dates are auto-picked first. 20. Press Ctrl+F11 to release the sales order. Select the sales order just created.

it is important to trace who received them and. The first aspect of defects management is to investigate where the defective items were used. Design Concepts The item tracing feature is designed with three basic limitations: • • • It uses posted documents only (not open documents). Refer to the lesson titled Navigate with Serial/Lot Numbers. The second aspect of defects management is to determine if the tracked items are planned for in open documents. Accordingly. when errors occur during item flow. This work can be done in the extended Navigate window. This investigation is based on historic data and is facilitated in Microsoft Dynamics NAV by searching through item tracking entries using the Item Tracing window. if it is required. Also. Items must be set up for specific tracking. it tracks through the history of item ledger entries carrying serial/lot numbers and answers questions such as: • • Where did the defective component come from? In which products and sales is the defective component used? Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-51 . to recall them. It tracks items with serial/lot numbers only. such as unposted sales orders or consumption journals. Moreover. This is due in part to new directives from the European Union (EU) toward businesses dealing in perishable goods. the errors must be identified and affected items must be prevented from leaving the company. If defective items have already been shipped. requirements from the United States Food and Drug Administration (FDA) and consumer requests are pushing the need for traceability.Chapter 6: Handle Serial/Lot Numbers Trace Serial/Lot Numbers There is a growing demand for the ability to track items from the vendor to the customer.

48 THE ITEM TRACING WINDOW Traceability Features The most important user requirement in item tracking is to present data in a transparent way where the user controls the view. or by clicking +/icons in the Expand/Collapse field of each line. From this initial overview. FIGURE 6. the Item Tracing window is designed to only show the highest level of the item ledger entry chain first. A search in item tracking entries can result in many records. The Item Tracing window fulfills these requirements with the following features. Expanded lines are indented under their preceding trace line in order to provide additional transparency of the item's flow through a supply chain. 6-52 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . The different views are selected from the Functions button. Expandable/Collapsible Lines To reduce complexity of search results. the user can then investigate lower levels by expanding the lines. It is also important for a search engine to have effective search filters and functions and also the ability to keep track of the search history.0 The answers are presented in the Item Tracing window as a chain of all the posted documents the item flowed through. sorted either backward or forward in the chain depending on the trace method. and if all records are presented at one time they can be difficult to use.Inventory Management in Microsoft Dynamics™ NAV 5.

where the defect was used. users can define to what extent production components must be included by selecting one of these trace settings under the Show Components field: • • • No . To support.to only include components that have serial/lot numbers (this is set as default) All . Item Variant All four filter fields have lookup buttons for selecting data from master data records.to include all components BEST PRACTICES: Because items without serial/lot numbers cannot be used for additional tracking. This can then be expanded to show from which production order it came. the trace result shows the sales shipment line first. This new feature is also described in the course titled Item Tracking . Lot No. Accordingly. Filter and Lot No. In addition to the basic filters. However. only serial/lot numbers with information card records can be selected from the Serial No.Usability in the lesson titled Serial/Lot Numbers and Reclassification. and then. the All setting is mainly used to obtain an overview of the whole component list of a particular production order being traced.Origin The Usage-Origin method traces the item starting from where it was used and backward to where it came from. Filter fields. NOTE: The lookup from the Serial No. two trace methods exist. any serial/lot number can be entered directly in the fields. if a manufactured item was sold to a customer. Information List windows respectively.to not include components in the trace result Item-tracked Only .Chapter 6: Handle Serial/Lot Numbers Search Filters Four main filters can be used to delimit the search: • • • • Serial No. the quality control tasks of first determining where a defect was introduced. Filter and Lot No. Filter fields opens the new Serial No. Information List and Lot No. Usage . For example. Two Search Directions Business flows vary from company to company and the Item Tracing feature is therefore designed to search either forward or backward in the supply chain. for example. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-53 .

Clicking the forward/backward arrows to the left of the search string has the same effect as these functions. This ever-changing string of settings works as a kind of search history to provide overview as users browse through trace results. This function is useful. This can then be expanded to show in which sales shipment lines it was used.From Line The Trace Opposite . This function is useful. the trace result shows the finished production order first. Functions The following functions are available from the Functions button.Usage The Origin-Usage method traces the item starting from where it came and forward to where it was used. when the origin of the defective item is found and that particular trace line must form the basis of additional tracking with the same trace method. for example. Trace Opposite .by tracing in the opposite direction. when the source of a defect is found and the usage of that defect must be found . Next/Previous Trace Result The Next/Previous Trace Resultfunctions move through the history of trace results.Inventory Management in Microsoft Dynamics™ NAV 5. For this purpose.From Line function resembles the Set Filters with Line Values function. Refer to “Navigate With Serial/Lot Numbers” in this chapter. Set Filters with Line Values The Set Filters with Line Values function inserts the values of the selected line in the respective filter fields in the header and executes a trace. Refer to the demonstration titled Trace from Origin to Usage. For example. as shown in the search string under the header. Search History In between the header and the lines part of the Item Tracing window is a narrow band that shows at all times which filters and settings are used to generate the trace result. for example.0 Origin . except it executes the trace in the opposite direction. most item tracking processes at some point incorporate the Navigate feature for a listing of all records and documents where a particular serial/lot number occurs. Therefore. if a manufactured item was sold to a customer. and change the display of the trace result accordingly. Integration to Navigate The Item Tracing feature searches through historic data only. 6-54 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . the Navigate window is extended with an Item Tracking tab.

50 ITEM TRACING SPECIFICATION REPORT Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-55 . The report is a one-to-one reproduction of the trace result.49 DEFINING WHAT TO DISPLAY IN THE REPORT The report definitions made in the previous screen shot result in the following report: FIGURE 6. The report can only contain eight of the columns available in the Item Tracing window. Item Tracing Specification Report The trace result (lines in the Item Tracing window) can be printed directly from the window. This means that collapsed lines are only included if they are first expanded in the window. for example: FIGURE 6.Chapter 6: Handle Serial/Lot Numbers The Navigate window can be opened directly from the Item Tracing window and will then be preset with Navigate results based on the serial/lot numbers that are used as filters in the Item Tracing window. The report request form contains eight lookup fields in which users can define for which columns the trace result must be shown in the report. But the user can easily define which to include.

0 Notice that the report also has options to include the number and name of the customer or vendor of traced sales or purchase documents. This second item tracking task is performed by tracing from source to origin. complained that the frame has cracked welding seams. This demonstrates how the system supports the initial defects management task of identifying which items were defective and which vendor supplied them. Opens from Multiple Places The Item Tracing window can be opened from: • • All relevant History menu folders in the navigation pane Serial number and lot number information cards When it is opened from. The quality controller must now know determine: • • Which lot of racing frames was faulty? On which purchase order was the faulty lot received? From the sales department. the quality controller must find all the sold racing bikes that contain racing frames from the faulty lot so that those orders can be stopped or recalled. starting with a trace of usage to origin and then a trace of origin to usage. Racing Bike. QC engineers have confirmed that the racing frame of the returned bike is defective. Demonstration – Trace from Usage to Origin NOTE: Load a clean Cronus database without changes to the data. it is a useful printout to reference when investigating an item flow. From the usage of item 1002 on that sales shipment. This completes the conceptual descriptions of the Item Tracing feature. Accordingly. 6-56 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . and an initial trace with the default trace method is executed. but in the same overall tracking process. Scenario: Ricardo. the lot number and item number in question will be preset in the filter fields of the Item Tracing window. Selangorian Ltd. The customer. Afterward. he must first trace the origin to establish which lot number the faulty racing frame came from. for example.Inventory Management in Microsoft Dynamics™ NAV 5. The results of this first item tracking task will identify which items were defective and which vendor supplied them. a lot number information card.Usage. Refer to the demonstration titled Trace from Source to Origin. It is based on the trace method Origin . A demonstration of item tracking with Navigate based on the same scenario is provided in the lesson titled Navigate for Serial/Lot Numbers. In the following are two short demonstrations illustrating a complete item tracking process.. is acting on a sales return of item 1002. the quality controller. the quality controller knows which sales shipment the returned racing bike was shipped on and he knows that the serial number is SN1.

Click OK to the two messages.Chapter 6: Handle Serial/Lot Numbers To prepare the demonstrations of Item Tracing and Navigate. 10. In the Description field. Open the existing item card of item 1900. Press F3 to open a new empty item card. 7. Click the Replenishment tab and look up from the Production BOM No. 14. Frame. 8. Click OK to the two messages. Bicycle. Select and then press Ctrl+C to copy all selected data. 2000. and press Ctrl+V to paste the copied data into the new card. 5. 9. 2. Look up from the Base Unit of Measure field and select PCS. 11. produce. Click the Item Tracking tab and select SNALL in the Item Tracking Code field. Press F3 to open a new empty item card. and then overwrite the No. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-57 . Select and then press Ctrl+C to copy all selected data. 12. field with the number of the new item. Click Edit (in the menu bar). field with the number of the new item. Click the Item Tracking tab and select LOTALL in the Item Tracking Code field. and press Ctrl+V to paste the copied data into the new card. and then overwrite the No. start by creating two new items and then continue to purchase. Racing Bike. enter Racing Bike. 6. field. In the Description field. 13. 1002. 3. Racing Frame: lot-specific tracking. and sell the new items in different transactions to create a varied item tracing foundation. enter Racing Frame. Open the existing item card of item 1000. Demonstration – Prepare Demonstration Data Start by creating these two new items: • • 2000. Continue to create item 1002. Look up from the Base Unit of Measure field and select PCS. 4. Click Edit (in the menu bar). Racing Bike: serial number-specific tracking 1. 15. component of 1002 1002.

0 16. Modify production BOM 1000 to contain item 2000. 10 Lot No. LOT2 Proceed to produce the Racing Bikes. Create and post the following purchase order from the vendor Coolwood Technologies: Item 2000 Location BLANK Qty. Racing Frame (remember to recertify the BOM). 17. 19. Create the following released production order: Item 1002 Location BLANK Qty. LOT1 18.Inventory Management in Microsoft Dynamics™ NAV 5. Create and post the following purchase order from the vendor Custom Metals Incorporated: Item 2000 Location BLANK Qty. 2 Serial No. FIGURE 6. 11 Lot No.51 MODIFIED PRODUCTION BOM WITH COMPONENT 2000 Continue to purchase racing frames. SN1 SN2 6-58 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .

Click Line. 23. Create the following sales order: Item 2000 Location BLANK Qty. field. select LOT1 and close the window. field. The Cannon Group PLC also orders four separate racing frames for their own assembly line. Create and post this sales order to Selangorian Ltd. Production Journal. Click Line. 1 Serial No. Leave all other defaults in the production journal and post it. 28. 5 Lot No. SN2 Continue to sell racing frames. Create the following released production order: Item 1002 Location BLANK Qty.: Item 1002 Location BLANK Qty. 27. In the Item Tracking Lines window. look up from the Lot No. 24. Create and post this sales order to The Cannon Group PLC: Item 1002 Location BLANK Qty. 2 Serial No. select the consumption line of item 2000 and then click Lines→Item Tracking Lines. select LOT1 and close the window. In the Production Journal window. Production Journal 21. In the Production Journal window. Continue to sell racing bikes 29.Chapter 6: Handle Serial/Lot Numbers 20. 31. Continue to create one more production order using racing frames from LOT1. In the Item Tracking Lines window. 22. Leave all other defaults in the production journal and post it. look up from the Lot No. SN3 SN4 25. LOT1 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-59 . select the consumption line of item 2000 and then click Lines→Item Tracking Lines. 1 Serial No. 26. SN1 30.

Click Trace. 3.Origin. Before continuing the trace. 1. 4. Keep the default setting of Item-Tracked Only in the Show Components field. Enter 1002 in the Item Filter field and SN1 in the Serial No.Trace from Usage to Origin Start the demonstration by determining which lot was faulty. FIGURE 6.Inventory Management in Microsoft Dynamics™ NAV 5. verify that shipment 102033 is the one that shipped the faulty racing bike to Selangorian Ltd. 6-60 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .0 NOTE: Do not post the last sales order (for five racing frames). Show Document (or press Shift+F5) or use the lookup button in the Description field. Filter field.52 COLLAPSED TRACE RESULT OF USAGE – ORIGIN Notice that one sales shipment header matches the search criteria. Demonstration . and keep the default trace method of Usage . Put the pointer on the tracing line and then click Line. Click Manufacturing→History→Item Tracing. This completes the preparation of data to demonstrate the Item Tracing and Navigate features. 2. Now continue to the actual demonstration of the functionality.

The quality controller must now continue to determine if other posted documents carried the faulty racing frames. QC engineers will examine the rest of LOT1 and then suggest a purchase return process though the purchasing department. Refer to the demonstration titled Trace from Origin to Usage. Here the quality controller sees that the racing frame carries LOT1. At this point. Click the + icon in the Expand/Collapse column or press Shift+Ctrl+A to gradually expand and trace backward in the chain of transactions that sales shipment 102033 originates from. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-61 . The next posted document backward after that is the consumption posting from a released production order. namely Custom Metals Incorporated. ATTENTION: Do not modify the trace result any further. 5. The complete supply chain with all trace lines expanded looks as follows: FIGURE 6. The lowest posted document in this trace is the posted purchase receipt on which racing frames with LOT1 entered inventory.53 EXPANDED TRACE RESULT OF USAGE – ORIGIN The quality controller has now established which lot of racing frames was faulty and he can look up from the last tracing line to see which vendor supplied them. He can now continue to determine which vendor supplied LOT1. The next posted document backward in the chain is the output posting from a released production order.Chapter 6: Handle Serial/Lot Numbers Now continue to trace the origin of this sales shipment.

1.Origin. LOT1? One way to prepare the next trace is to manually enter LOT1 in the Lot No. It is based on the trace method Usage . this demonstration will use the Trace Opposite . Start with the trace result of the previous demonstration. Scenario: The quality controller has established that the faulty racing frames came from LOT1.54 COLLAPSED TRACE RESULT OF ORIGIN – USAGE Notice that the created trace result is based on the filters of the trace line for the purchase receipt (LOT1 and item 2000) and on the opposite trace method. However. Filter filed and 2000 in the Item Filter field.from Line. 6-62 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . He must now determine which other end items and/or other sales shipments contain item 2000.Inventory Management in Microsoft Dynamics™ NAV 5.0 Demonstration – Trace from Origin to Usage This demonstrates how the system supports the defects management tasks involved in determining where the defective items were used since they arrived. In the Item Tracing window that contains the results of the initial trace of usage to origin.from Line function. put the pointer on the line of the purchase receipt (the last trace line) and then click Functions→Trace Opposite . FIGURE 6. namely Origin to Usage.

SN3 and SN4. 101004. Click Functions→Expand All. and then sold with sales shipment 102034. have been produced based on racing frames from LOT1. was produced in the same released production order. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-63 .Chapter 6: Handle Serial/Lot Numbers To obtain an overview of all uses. the quality controller must continue to the Navigate feature to make sure that LOT1 is not used in unposted documents. 2. FIGURE 6. the trace result reveals no other orders affected by the faulty lot of racing frames.. continue to expand all trace lines. the controller can see from the last three trace lines that another two items. At the same time. as the item tracing feature is based on posted entries only. at least no orders that are represented by posted documents. However. Cannon Group PLC. which is already resolved.55 EXPANDED TRACE RESULT OF ORIGIN – USAGE The first four trace lines refer to the sales shipment to Selangorian Ltd. SN2. The item tracking tasks for this demonstration are now complete regarding the Item Tracing window. He takes action to block these end items in inventory from being handled any more. Refer to the demonstration titled Find all Occurrences of LOT1 This completes the description of the Item Tracing feature and demonstrations of how to use it for typical item tracking tasks. The controller immediately informs the sales department so that they can initiate a recall of the defective racing bike from the customer. Fortunately. The last line indicates to the quality controller that one more racing bike.

In the second trace line (of type Consumption).Trace First Production Order for Item 2000 Scenario A machine operator on the final assembly of the faulty racing bikes says she noted on the very first production order header that the frame weldings seemed weak. Verify that a comment is created (click the Comment icon). Challenge Yourself Use Item Tracing to find the first production order for the racing frame and verify that the document has a comment record. Expand all trace lines with the Expand All function.3 . 6-64 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . In the Item Tracing window. 5. 3. filter on item 2000 (press Tab after typing). look up to the production order. 2.Inventory Management in Microsoft Dynamics™ NAV 5. Step by Step 1. Select a trace method of Origin to Usage.0 Lab 6. 4.

for example. only records where both values occur will be displayed. Accordingly. When the Navigate window is opened from.Chapter 6: Handle Serial/Lot Numbers Navigate with Serial/Lot Numbers To support many different item tracking tasks. and it will even find master data such as serial/lot number information cards. Refer to “Trace Serial/Lot Numbers. Contrary to the Item Tracing feature. the Navigate feature in Microsoft Dynamics NAV 5. However. field. field or the lot number that is specified in the Lot No. Information. This search limitation does not apply to records of type Serial No. Navigate will find posted and open documents. Refer to the demonstration titled Find all Occurrences of LOT1. Notice that when both fields in the header contain a value to find. a lot number information card.0 has been extended to provide global search through all records that contain serial/lot numbers. THE ITEM TRACKING TAB This tab enables a global search in the database for all records that contain either the serial number that is specified in the Serial No. field will be preset with that lot number. the search will typically yield more results when only one field is filled. FIGURE 6.” Navigate Window This global item tracking functionality is provided with the Item Tracking tab in the Navigate window. they will both be included in the result if an information card exists for each serial number and lot number that is specified.56 NAVIGATE WINDOW. Information or Lot No. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-65 . the Lot No. it does not provide information about item flows or document relations as the Item Tracing window does.

57 NAVIGATE RESULT FOR LOT1 Notice that the window is preset with the search result for LOT1.0 Demonstration – Find all Occurrences of LOT01 This demonstrates how Navigate can be used in defects management to find serial/lot numbers in database records other than posted entries. He must now determine if LOT1 exist in any open documents. the quality controller found out that LOT1 contained the faulty racing frames. In the Item Tracing window.Inventory Management in Microsoft Dynamics™ NAV 5. put the pointer in the first trace line. Click Navigate. The quality controller recognizes most of the found records as pertaining to documents already identified in the Item Tracing window. For example. Start from the trace result of the previous demonstration. 1. It is a continuation of the item tracing demonstrations. the last Navigate line of type Production Order refers to the two released production orders that consumed racing frames from LOT1. 2. the purchase receipt of LOT1. FIGURE 6. 6-66 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Scenario: With the Item Tracing feature.

He immediately suggests to the sales department that this order be canceled and a new production order initiated .58 UNPOSTED SALES LINE FOR DEFECTIVE RACING FRAMES Here the quality controller sees one open sales line for the faulty racing frames.based on good racing frames. of Records field. Put the pointer on the second Navigate line and then click the Show button or drill down from the No. the request form has a Show Serial/Lot No. FIGURE 6. In selected warehouse activity documents. and the quality controller continues to investigate.Chapter 6: Handle Serial/Lot Numbers However.Shipment report as inspiration. This completes the description and short demonstration of the extended Navigate function for item tracking and how it ties in to a complete defects management process. A suggested customization using this generic report is implemented in the Sales . Print Serial/Lot Number Documents and Reports Serial/lot number information can be included in many different printouts. The Item Tracking Appendix report can be used to customize existing reports. such as inventory picking lists and customer correspondence like order confirmations and sales shipment documents. the second Navigate line of type Sales Line stands out as an unposted document line. • Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-67 . All printable documents and reports that hold item information can be set up to also print related serial/lot number information by these features: • • The generic Item Tracking Appendix report can be printed for relevant sales and purchase documents carrying serial/lot numbers.check box to include serial/lot numbers in the report. 3.

For example. 6-68 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . the order confirmation printout.59 REQUEST FORM OF THE GENERIC ITEM TRACKING REPORT Refer to the demonstration “Print an Item Tracking Appendix”. The Item Tracking Appendix report can be generated for business documents based on the following tables: • • • • Sales header Sales Shipment Header Sales Invoice Header Purchase Header This means that the report can be printed for all relevant sales and purchase documents that use any of these four tables. returns. for example.Inventory Management in Microsoft Dynamics™ NAV 5. FIGURE 6. and blanket orders. Documents. Order Processing.0 The Generic Item Tracking Appendix Report For the most common printable sales and purchase documents that display item information. The feature is based on a generic report that can be set up to print serial/lot numbers for a certain document type and number defined on the request form. These include quotes. Item Tracking Appendix. the Item Tracking Appendix report can be printed and appended to. Sales and Marketing. credit memos. The report is accessed from the Documents menu folder of sales and purchases navigation pane menus. before it is sent to customers. invoices.

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-69 . FIGURE 6. an order confirmation.60 TOP: REQUEST FORM OF THE SALES SHIPMENT REPORT BOTTOM: SALES SHIPMENT REPORT THAT SHOWS SERIAL/LOT NUMBERS NOTE: The actual development steps to customize a serial/lot number report are described in Appendix C of this course. for example. the generic Item Tracking Appendix report can be used to customize existing reports. The figure is an example of the request form and printout of such a customized report. namely the Item Tracking Appendix report for posted sales shipments (this is included in the standard release).Shipment report.Chapter 6: Handle Serial/Lot Numbers Foundation for Customization As illustrated with the Sales . The suggested solution provides order handlers with the option to append additional report pages that specify serial/lot numbers assigned to the items specified in the main document printout. such as.

Scenario: The Cannon Group PLC has requested that lot number information is included with the order confirmation of their recent order for Ethernet cables. 6-70 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . In the Item Tracking Appendix request form. Notice that the sales order number is 1003.0 Demonstration – Print an Item Tracking Appendix This demonstrates how to prepare a printout of serial/lot number information related to a specific sales order. 3. 4. Click Sales & Marketing→Order Processing→Documents→Item Tracking Appendix. 2. If no document number is defined. the report will print Item Tracking Appendix report pages for all sales orders with serial/lot numbers. FIGURE 6. enter Sales Order in the Document field and 1002 in the Document No.61 ITEM TRACKING APPENDIX REPORT FOR SPECIFIC SALES ORDER The report can now be printed and/or sent to the customer as a specification of serial/lot numbers together with the sales order confirmation.Inventory Management in Microsoft Dynamics™ NAV 5. 5. 1. Open the existing sales order for ten Ethernet cables to The Cannon Group PLC. The report is generated as a stand-alone. Start by identifying the sales order number to reference. Preview the report. field. This means that it is not appended directly to the sales order printout.

the lesson included a short demonstration of how to use the generic Item Tracking Appendix report that may also be used by developers to connect to existing reports. Start by opening the report request form. Demonstration . Scenario: A purchaser in charge of replenishing items with expiration date control decides to run a report to check which items have expired and if any reordering is needed. 1. In the report request form. if the option was selected. enter the following options without setting any filters: Ending Date work date (01/24/08) Period Length 1Y (year) The report calculates backward from the date in the Ending Date field and sets up three periods of the length specified in the Period Length field. Accordingly.Chapter 6: Handle Serial/Lot Numbers Alternatively. Preview the report. this particular report will compare the current year with the two previous years.Shipment report. 2. FIGURE 6. if the order confirmation report is customized to include serial/lot number information. 3. Also.Preview When Inventory Items Expire This demonstrates how to prepare a report that shows which inventory items have expiration dates and when they expire. This completes the description of new functionality for including serial/lot number information in different printable business documents and warehouse reports. Click Purchases→Inventory & Costing→Reports→Item Expiration Quantity. the appendix will automatically be printed after the order confirmation.62 ITEM EXPIRATION REPORT FOR THE YEAR OF 2008 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-71 . as illustrated with the Sales .

BEST PRACTICES: The improved information and warnings about serial/lot number availability will help avoid conflicts between reservations and serial/lot numbers because outbound order handlers will have less reason to reserve serial/lot numbers.Inventory Management in Microsoft Dynamics™ NAV 5. The serial/lot number is meanwhile made available for specific reservation (user does care which) in other documents requesting that particular serial/lot number. specific and nonspecific. In that case. the system can reshuffle non-specific reservations to make sure that fixed application is possible against serial/lot number actually picked. NOTE: The Late Binding functionality only relates to items set up with specific tracking and only applies to reservations against inventory. the system is programmed to silently assist outbound order handlers by trying to resolve any availability conflicts that occur when reservations and serial/lot numbers are combined. instead of to supply such as purchase orders. A specific reservation is a regular reservation. see figure 1-27. This completes the description and short demonstration of the Item Expiration Quantity report that is aimed at users who manage or handle items with expiration dates. Refer to the demonstration titled “Sell from a Specific Lot” for tips about how to help secure serial/lot numbered supply. and one piece expired in 2007. Specific Reservation Late Binding introduces two new states for reservation entries. At posting time. a rigid link between supply and demand. two pieces expired in 2006. 6-72 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Reserve Items With Serial/Lot Numbers In environments that use specific serial number tracking. The concept of Late Binding makes sure that a non-specific reservation (user does not care which) of a serial/lot number remains loosely coupled until posting. and not just any M780 monitor.0 Notice that the 17” and the 19” monitors are the only inventory items that carry expiration dates. Concerning item 80102-T. the demand does not carry serial/lot numbers. that is. An example of a specific reservation is when a user requests the M780 monitor that carries serial number SN00023. Notice that the demand must carry serial/lot number to be a specific reservation. Non-specific Reservation A non-specific reservation is a state imposed by the system on reservation entries for serial/lot numbers that are not selected specifically. where both carry serial/lot numbers.

the picked serial/lot number must be entered on the order before posting it. and the system non-specifically reserves the serial/lot number in question. The user has then reserved any item that carries a serial/lot number. but without serial/lot numbers defined on the demand side. the Late Binding functionality makes sure that a user can enter a specific picked serial/lot number on an outbound document that already has a non-specific reservation of another serial/lot number.Chapter 6: Handle Serial/Lot Numbers An example of non-specific reservation is when a user requests any M780 monitor. For all supported business scenarios. The main difference between specific and non-specific reservation is defined by the existence of serial/lot numbers on the demand side: Supply Specific Non-Specific SN/Lot SN/Lot Demand SN/Lot Reshuffle When a user posts an outbound document after picking the wrong serial/lot number. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-73 . when an order processor has at first made a non-specific reservation (of any serial/lot number). for example. not a specific serial number. Supported Business Scenarios The late binding solution involves functionality for three different business scenarios of serial/lot number reservation against inventory: • • • Enter specific serial/lot number on outbound document with nonspecific reservation of “wrong” serial/lot number Reserve specific serial/lot number Post outbound document with non-specific reservation of serial/lot number Entering on Outbound Document with Non-Specific Reservation Entering a picked serial/lot number on an outbound document with non-specific reservation of a wrong serial/lot number is a business scenario that is the most common of the three supported scenarios. another is that the implementation is less complex. the system reshuffles any other non-specific reservations to reflect the actual serial/lot number that was picked. This satisfies the posting engine with a rigid link (fixed application) between supply and demand. The reasons that late binding system only focuses on reservations made against inventory is that this is the most important customer problem. The need arises. Later when the physical item is picked from inventory. reshuffling will only be possible against positive item ledger entries that carry reservation and serial/lot numbers. In this case.

By default. the program provides the industry-required transparency of item tracking information. This is facilitated as the system tries to reshuffle a non-specific reservation in order to free it for a specific request.Inventory Management in Microsoft Dynamics™ NAV 5. In all circumstances. it will greatly minimize the work load involved in finding and recalling defective items.0 offers a comprehensive set of features for the handling of serial/lot numbers when items are inbound. Post Outbound Document with Non-Specific Reservation of Serial/Lot Numbers This business scenario is supported with Late Binding functionality that enables fixed application and outbound posting of what was actually picked by reshuffling other non-specific reservations of serial/lot numbers. the standard inventory error (“cannot be fully applied”) will appear when the user tries to ship.0 The late binding feature makes sure that users can enter the picked serial/lot number without losing a reservation. 6-74 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . The feature therefore makes sure that the picked serial/lot number can be fully applied and posted. If the system cannot reshuffle. field that displays how many reservation entries are non-specific. whether for FEFO-managed inventory or for quality control processes. The functionality happens automatically. this field is not visible to users. and ouitbound. This completes the conceptual description of the Late Binding feature. that is currently nonspecifically reserved. The Non-specific Reserved Qty. Reserve Specific Serial/Lot Numbers This business scenario is supported with Late Binding functionality that makes sure a user trying to reserve a particular serial/lot number. but embedded help is displayed in the bottom of the Reservation window showing the following text: “XX of the Total Reserved Quantity are non-specific and may be available”. In addition. Summary Microsoft Dynamics NAV 5. on inventory. can do so. The Item Tracing feature in integration with Navigate means that Microsoft Dynamics NAV can more easily meet certain traceability requirements of the FDA and the EU.

but not yet committed to the database Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-75 . such as lot numbers or serial numbers. True or False: It is not possible to define or automatically assign customized item tracking numbers. 3. What is the definition of Current Pending Quantity? ( ) Quantity requested on another outbound order ( ) Quantity remaining to be entered in the item tracking line ( ) Quantity committed to the database but not yet posted ( ) Quantity entered in the item tracking line. you first specify an __________________ on the item card. To set up an item to be tracked by serial number.) ( ) Availablity warning icons ( ) Search function ( ) Ability to select multiple entries ( ) Create Customized Lot function 4. 2. which specifies which transactions must contain a serial number for the item.Chapter 6: Handle Serial/Lot Numbers Test Your Knowledge 1. Which are valid usability features in the Item Tracking Lines window? (Select all that apply.

Step _____ : Write counted serial/lot number quantities in the dedicated empty. (Phys. Warehouse Movement.all demands ( ) Available = quantity in inventory .(all demands + quantity in the current ITL window not yet written to the database) ( ) Available = quantity in inventory . Task: Outline the physical inventory counting process for serial/lot numbered inventory (not WMS). In which warehouse documents can serial/lot numbers be auto-picked according to FEFO? ( ) Inventory Pick. Step _____ : Enter the counted quantities in the Qty. Warehouse Movement. Step _____ : Go to the Item Tracking Lines window to specify ich serial/lot. Warehouse Pick. Warehouse Movement 7. 8. Step _____ : Print the physical inventory list with the Show Serial/Lot Number. Warehouse Internal Pick ( ) Warehouse Pick. Warehouse Pick ( ) Inventory Pick. Inventory) field of. Warehouse Pick. Step _____ : Post the journal.Inventory Management in Microsoft Dynamics™ NAV 5. Warehouse Internal Pick ( ) Inventory Pick.(all demands .(all demands + quantity in the current ITL window committed to the database ( ) Available = quantity in inventory . On which calculation formula is the serial/lot number availability based? ( ) Available = quantity in inventory .0 5. You can check on the serial or lot number transactions that have been posted by looking at what kind of entries? ( ) value entries ( ) item tracking entries or item ledger entries ( ) general ledger entries ( ) item tracing entries 6-76 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Step _____ : Calculate inventory in the physical inventory journal.quantity in the current ITL window not yet written to database) 6.

( ) It tracks items with serial/lot numbers only. 11. ( ) It uses posted entries only. Sales Shipment Header. ( ) Sales header. ( ) Navigate shows all records containing the search value. Which Item Tracing function is best suited when the source of a defect is found and the usage of that defect must be found? ( ) Set Filters with Line Values ( ) Trace Opposite . Which tables are enabled for customization of the Item Tracking Appendix report by default. Shipment Header Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-77 . Which statements are valid about the differences between Item Tracing and Navigate? (Select all that apply.) ( ) Item Tracing shows open as well as posted entries containing the search value. 10.From Line + Next Trace Result 12. Purchase Header ( ) Sales header. Sales Shipment Header. Purchase Header ( ) Sales Header. What are the three basic preconditions of the Item Tracing feature? (Select all that apply.From Line ( ) Set Filters with Line Values + trace with opposite trace method ( ) Trace opposite . Outline the business needs of the two trace methods respectively. Sales Invoice Header ( ) Sales Header. Sales Invoice Header. ( ) Navigate shows the relations between entries ( ) Item Tracing shows entry history 13.) ( ) Items must be set up for specific tracking. ( ) Items must be set up with any item tracking code.Chapter 6: Handle Serial/Lot Numbers 9.

Quantity report has same layout as the Item Age Composition .) ( ) The Item Expiration .Quantity report? (Select all that apply. Why can the Item Tracking Appendix report not be customized for warehouse activity documents? 15. Name at least two warehouse reports that can be printed with serial/lot numbers.Quantity report is based on expiration date.Quantity report is based on posting date. ( ) The Item Expiration . 16. Which statements are true about the Item Expiration .Inventory Management in Microsoft Dynamics™ NAV 5. 6-78 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . ( ) Item Expiration .Quantity report will only display inventory items with expiration date.0 14. ( ) The Item Expiration .Value report.

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-79 . Explain the difference between specific and non-specific reservations.Chapter 6: Handle Serial/Lot Numbers 17.

0 Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter: 1.Inventory Management in Microsoft Dynamics™ NAV 5. 6-80 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . 2. 3.

True or False: It is not possible to define or automatically assign customized item tracking numbers.) (√) Availablity warning icons ( ) Search function (√) Ability to select multiple entries ( ) Create Customized Lot function 4.False 3.(all demands + quantity in the current ITL window committed to the database ( ) Available = quantity in inventory .quantity in the current ITL window not yet written to database) Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-81 .(all demands . MODEL ANSWER . you first specify an __________________ on the item card.Chapter 6: Handle Serial/Lot Numbers Solutions Test Your Knowledge 1. but not yet committed to the database 5. On which calculation formula is the serial/lot number availability based? ( ) Available = quantity in inventory . such as lot numbers or serial numbers. Which are valid usability features in the Item Tracking Lines window? (Select all that apply. What is the definition of Current Pending Quantity? ( ) Quantity requested on another outbound order ( ) Quantity remaining to be entered in the item tracking line ( ) Quantity committed to the database but not yet posted (•) Quantity entered in the item tracking line.all demands ( ) Available = quantity in inventory .(all demands + quantity in the current ITL window not yet written to the database) ( ) Available = quantity in inventory . To set up an item to be tracked by serial number.Item tracking code 2. which specifies which transactions must contain a serial number for the item. MODEL ANSWER .

Warehouse Movement 7. (Phys. Step 2 : Print the physical inventory list with the Show Serial/Lot Number. Inventory) field of. Warehouse Movement. Step 6 : Post the journal. Warehouse Pick ( ) Inventory Pick.Inventory Management in Microsoft Dynamics™ NAV 5. What are the three basic preconditions of the Item Tracing feature? (Select all that apply. Warehouse Pick. Task: Outline the physical inventory counting process for serial/lot numbered inventory (not WMS). ( ) Items must be set up with any item tracking code. In which warehouse documents can serial/lot numbers be auto-picked according to FEFO? ( ) Inventory Pick. (√) It tracks items with serial/lot numbers only. 6-82 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .) (√) Items must be set up for specific tracking.0 6. (√) It uses posted entries only. Warehouse Pick. Step 4 : Enter the counted quantities in the Qty. 8. Warehouse Internal Pick ( ) Warehouse Pick. Step 5 : Go to the Item Tracking Lines window to specify ich serial/lot. You can check on the serial or lot number transactions that have been posted by looking at what kind of entries? ( ) value entries (•) item tracking entries or item ledger entries ( ) general ledger entries ( ) item tracing entries 9. Warehouse Internal Pick (•) Inventory Pick. Step 3 : Write counted serial/lot number quantities in the dedicated empty. Warehouse Movement. Step 1 : Calculate inventory in the physical inventory journal.

which is not supported by the generic Item Tracking Appendix report. Sales Shipment Header. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement 6-83 . ( ) Sales header.Usage to Origin: This method traces the item starting from where it was used and backward to where it came from. Outline the business needs of the two trace methods respectively. Sales Invoice Header. may consist of split lines. including those printed from worksheets and journals.From Line + Next Trace Result 12. Origin to Usage: This method traces the item starting from where it came and forward to where it was used.Printable warehouse activity documents. Which Item Tracing function is best suited when the source of a defect is found and the usage of that defect must be found? ( ) Set Filters with Line Values (•) Trace Opposite . Sales Invoice Header ( ) Sales Header. (√) Navigate shows all records containing the search value.Chapter 6: Handle Serial/Lot Numbers 10. ( ) Navigate shows the relations between entries (√) Item Tracing shows entry history 13. Purchase Header ( ) Sales Header.From Line ( ) Set Filters with Line Values + trace with opposite trace method ( ) Trace opposite . Why can the Item Tracking Appendix report not be customized for warehouse activity documents? MODEL ANSWER . Which tables are enabled for customization of the Item Tracking Appendix report by default. 11. Purchase Header (•) Sales header. Shipment Header 14. Which statements are valid about the differences between Item Tracing and Navigate? (Select all that apply. Sales Shipment Header.) ( ) Item Tracing shows open as well as posted entries containing the search value. MODEL ANSWER .

Value report.) ( ) The Item Expiration . MODEL ANSWER .and the system decides which serial/lot number to reserve. Inventory List Whse.A specific reservation is when the user reserves a specific serial/lot number on the demand side. MODEL ANSWER . A non-specific reservation is when the user simply reserves any item on the demand side .Quantity report is based on posting date.Quantity report will only display inventory items with expiration date. ( ) The Item Expiration .Quantity report is based on expiration date. Inventory List 16. Phys. (√) The Item Expiration .0 15.Inventory Management in Microsoft Dynamics™ NAV 5. Which statements are true about the Item Expiration . 17.Quantity report has same layout as the Item Age Composition .Quantity report? (Select all that apply.Put-away List Picking List Warehouse Movement Internal Pick Internal Put-Away Phys. 6-84 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . Explain the difference between specific and non-specific reservations. (√) Item Expiration . Name at least two warehouse reports that can be printed with serial/lot numbers.

Such allocations can include items being inspected or quarantined. reservations and backorders. inventory The on-hand inventory balance minus allocations. item A manufactured or purchased article. covering note expected receipt date The date.Appendix A: Terminology List APPENDIX A: TERMINOLOGY LIST This appendix contains the terminology list for the inventory application area in Microsoft® Dynamics NAV®. thereby minimizing handling and storage and allowing sales orders to be shipped sooner. Noun and adjective forms: cross dock delivery note A note that accompanies a shipment and that lists the items in the shipment Synonyms: advice note. NOTE: The program systematically compares inventory receipts with outstanding sales orders and indicates that a cross docking opportunity is available. bin content Information that states all items contained in a specific bin cross-dock To move items directly from the receiving area to the shipping area. This can be anything from a small container box to an open space on a pallet rack. The program calculates inventory as the quantity of an item available in inventory. inventory Items held in a store or a warehouse and purchased for resale. The smallest unit of the warehouse logical structure. on which an inbound item will be available for picking. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement A-1 . part or material that is part of inventory. it stores inventory control information about items or item variants at a particular location in the stockkeeping unit for that item or item variant at that location. dispatch note. product. accompanying note. If a company has several locations. items used to support production (raw materials and work-in-process) and items for maintenance activities (including repair and operating supplies). calculated by the program. item substitute An item that can be offered to a customer as a substitute for an item that currently is not available. bin A physical storage unit in which items are placed and stored.

and record the movement and the exact location of the item. A location can be a warehouse. non-stock item An item that a company sells but does not carry in inventory. Registering differs from posting in that it does not create any entries in the general ledger or the inventory item ledger. order date The date on which the vendor must ship the items in order to meet the planned receipt date. location A physical structure or place where inventory is received. Invt. positive adjustment An increase in inventory that is not due to a purchase. put away To remove the item from the receiving area. which is performed on a continuous. The determination of inventory quantity by the counting of items. plant or area within a plant. negative adjustment A reduction in inventory that is not due to a sale. processing time. showroom. and receiving and inspection time. stored and shipped. the putting away of the items. A-2 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . A warehouse person immediately registers the receipt of an item in the program. service car. Noun and adjective form: put-away receipt The physical acceptance of an item at a location. the inspection of the items for conformance to the purchase order (quantity and damage). also called a catalog item. For example. but the item is not a part of available to pick inventory until it has been put away. periodic or annual basis. A non-stock item is often an item in a vendor catalog. physical inventory Abbreviation: Phys. pick To physically withdraw from inventory items to be shipped or components of items to be assembled and shipped. receiving The function encompassing the physical receipt of items.Inventory Management in Microsoft Dynamics™ NAV 5. queue time. Individual components of lead time can include order preparation time. move or transportation time.0 lead time The time between recognition of the need for an order and the receipt of goods. and the preparation of the receiving report. transport it to a specific location in a storage area. registering Creating an entry in the program that records an action completed in the warehouse. picking or movement of an item into or from a specific bin. you can register the put-away.

picked and shipped. Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement A-3 . A responsibility center that has been assigned responsibility for a location accounts for location inventory in monetary terms. transfer order An order to move items from one location to another. but also internal documents that create journal entries. reservation The designation of a quantity of inventory on a purchase order for a specific sales order or production schedule. and a branch office with responsibility for sales. Example: You can release a sales order to the warehouse. either with a shipping agent or your own means of transportation. a purchasing office for one or several locations. Example: Vouchers and contracts. such as sales. You cannot change information on a released document unless you reopen the document. An organizational unit to which a company assigns duties or activities. shipment date The date a shipment leaves your location for delivery to a customer. specific item An individual item that is distinguished by a unique identification number. Ctr. responsibility center Abbreviation: Resp.Appendix A: Terminology List release To send a document to the next stage of processing without posting the document. NOTE: A responsibility center can be a cost center or a profit center. transfer or purchase orders or internal freight charges. The order is then among the source documents from which the warehouse can retrieve lines to be assigned. Examples are a sales office that sells items from one or more locations. source document The original evidence of a transaction that supports journal entries in the accounting system. safety lead time An element of time added to normal lead time to protect against fluctuations in lead time so that an order can be completed before its real need date. a service unit. while the location is responsible for the physical inventory count. purchases and cost accounting. stockkeeping unit Abbreviation: SKU A unit for inventory control that concerns items and item variants at specific locations. a production-planning unit.

Inventory Management in Microsoft Dynamics™ NAV 5.0
warehouse Abbreviation: Whse. A building or part of a building where items are received, stored, and shipped. As such, it is a particular kind of location. Synonyms: distribution center, branch warehouse, field warehouse warehouse activity An activity in the Warehouse Management application area. Each activity has its own menu item.

A-4

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Appendix B: Granules

APPENDIX B: GRANULES
This appendix contains information about the granules that make up Microsoft® Dynamics NAV® for inventory management, including the functional area that a granule belongs to, its description and the requirements.

Inventory Management Granules in Microsoft Dynamics NAV
Multiple Locations
Functional area: Inventory Description: This feature provides basic functionality that allows the user to manage inventory in multiple locations. The feature is broad enough to include locations in plants or production facilities as well as distribution centers, warehouses and service cars. Requirements: Basic Inventory

Stockkeeping Units
Functional area: Inventory Description: This feature provides basic functionality that allows the user to manage stockkeeping units (SKUs), meaning that identical items with the same item number can be stored in different locations and managed individually at each location. The user can add cost prices, replenishment and manufacturing information, and so on, based on the location. Requirements: Multiple Locations

Responsibility Centers
Functional area: General Ledger Description: You use this granule to handle Cost Centers or Profit Centers. Requirements: Multiple Locations

Location Transfers
Functional area: Inventory Description: This granule enables you to track inventory effectively as it is moved from one location to another. You can also better account for the value of inventory in transit and at various locations. Requirements: Multiple Locations

Bin
Functional area: Inventory Description: You use this granule to organize your warehouse by assigning items to bins, the smallest unit in the warehouse logical structure. This is done on the item journals or directly on the document lines (does not only apply to order lines). Requirements: Basic Inventory and Multiple Locations

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

B-1

Inventory Management in Microsoft Dynamics™ NAV 5.0
Put-Away
Functional area: Inventory Description: You use this granule to enable your warehouse employees to carry out their dedicated tasks. This is done from a separate user interface when receiving items in an order-by-order environment. Here the put away is created from the released order. Requirements: Basic Inventory

Warehouse Receipt
Functional area: Warehouse Management Description: You use this granule to enable your warehouse employees to carry out their dedicated tasks. This is done from a separate user interface when receiving items in a multi-order environment. Here the put away is created from the receipt. Requirements: Basic Inventory

Pick
Functional area: Inventory Description: You use this granule to enable your warehouse employees to carry out their dedicated tasks. This is done from a separate user interface when shipping items in an order-by-order environment. Here the pick is created from the released order. Requirements: Basic Inventory

Warehouse Shipment
Functional area: Warehouse Management Description: You use this granule to enable your warehouse employees to carry out their dedicated tasks. This is done from a separate user interface when shipping items in a multi-order environment. Here the pick is created from the shipment. Requirements: Basic Inventory

Bin Setup
Functional area: Warehouse Management Description: You use this granule to easily set up and maintain your bins. This is done by defining both the layout of your warehouse and dimensions of your racks, columns, and shelves. Furthermore, you use the granule to easily set up and maintain your planning parameters. This is done by defining the limitations and characteristics of each bin. Requirements: Bin

B-2

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Appendix B: Granules
Item Tracking
Functional area: Inventory Description: With this granule, you can handle and track serial and lot numbers. Serial and lot numbers can be assigned manually or automatically. The feature allows the user to receive and ship multiple-quantities with serial/lot numbers from a single order line entry. Requirements: Basic Inventory, Sales Order Management, Purchase Order Management.

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

B-3

Inventory Management in Microsoft Dynamics™ NAV 5.0

B-4

Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement

Adjust the function RetrieveDocumentItemTracking in CU6500 by: • • Creating a new variable for the new record (header and line. Sales Order etc). which also will be shown on the request form Adjust the code of the existing procedures handling the different sources: – – • SetRecordFilter HandleRec • Create new procedures handling the new source like: – – HandleSales FilterSalesHdr • Create a new procedure preparing the address of the new source like: AddressSalesHdr Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement C-1 . Handling several record types (sources) can be implemented as follows. In REP6521 do the following: • Expand the global variable DocType with the new option string for the new document (as Sales Quote.Appendix C: Customizing IT Reports APPENDIX C: CUSTOMIZING IT REPORTS This appendix describes how to implement new record types in the generic report in Microsoft Dynamics™ NAV 5. The description also helps to change existing reports to show serial/lot numbers. for instance Sales Header and Sales Line) Implementing a new procedure collecting Item Tracking for this record when the function is not implemented earlier 2. Generic Report (Item Tracking Appendix) The report 6521 Item Tracking Appendix covers reports called for the following record types (sources): • • • • Purchase Header Sales Header Sales Shipment Header Sales Invoice Header.0. 1.

and Credit Memo. Invoice. FillTrackingSpecBuffer ItemTrackingExistsInBuffer InitTrackingSpecBuffer FilterReservEntries FilterTrackingEntries RetrieveILEFromShptRcpt RetrieveILEFromPostedInv C-2 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement . (Called by FindItemEntries and FindValueEntries. Invoice.) Creates an item tracking buffer line. Retrieves a data set of Tracking Specification Entries. Order. Retrieves a data set of Reservation Entries. Retrieves a data set of Item Ledger Entries (used for Posted Shipments/Receipts). and Credit Memo. Initialize a new item tracking buffer record. Order. which are not completely invoiced yet. Searches through item tracking data for a source document in Item Entry Relation for Posted Shipments/Receipts Searches through item tracking data for a source document in Value Entry Relation for Posted Invoices FindTrackingEntries FindItemEntries FindValueEntries The following functions are defined in CU6500 Item Tracking Management as local functions: Function Name FillTrackingSpecBufferFromILE Function Description Creates an item tracking buffer line with information from ILE. which are not completely invoiced yet. Retrieves a data set of Item Ledger Entries (used for Posted Invoices).Inventory Management in Microsoft Dynamics™ NAV 5.0 The following functions are created to collect item tracking data from the different Item Tracking tables and will also be available in CU6500 Item Tracking Management as global functions: Function Name FindReservEntries Function Description Searches through item tracking data for a source document in Reservation Entry for Quote. Checks the temporary Item Tracking Buffer for existing records and will create a new one or sum up the quantity if the record exists. Searches through item tracking data for a source document in Tracking Specification for Quote.

OnAfterGetRecord() for every new source and will starting handling Item Tracking collecting for the different Record Types: • HandleSales() • HandlePurchase() • HandleShipment() • HandleInvoice() Set up the address on the report for the Record Type HandleRec AddressSalesHdr AddressPurchaseHdr AddressShipmentHdr AddressInvoiceHdr IsStartNewGroup A global function which delivers TRUE if a new group (item with Lot/Serial No. Calls the following filter-procedures: • FilterSalesHdr • FilterPurchHdr • FilterSalesShip • FilterSalesInv Started on MainRecord . for an item. which are chosen by the user in the request form. Used to assign a total quantity for all Lot/Serial No.Appendix C: Customizing IT Reports The following procedures defined handling the different source documents in the generic report are implemented: Function Name SetRecordFilter() Function Description Sets filters on the correct table. Using function RetrieveDocumentItemTracking for a source document which is not implemented will create an error message as follows: Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement C-3 .) starts.

The following steps must be done to implement Item Tracking in an existing report.OnPreDataItem() // Item Tracking: IF ShowLotSN THEN BEGIN TrackingSpecCount := 0.RetrieveDocumentItemTracking(TrackingSpecBuffer.” PageLoop .". END."No.Inventory Management in Microsoft Dynamics™ NAV 5. Make changes on DataItem “PageLoop.OnPostDataItem() // Item Tracking: IF ShowLotSN THEN TrackingSpecCount := ItemTrackingMgt. C-4 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .0 Implementing Item Tracking on Existing Reports The description assumes that retrieving Item Tracking for a source is defined in CU6500 RetrieveDocumentItemTracking. Make changes on DataItem “Sales Shipment Line.” Sales Shipment Line . DATABASE::"Sales Shipment Header"."Sales Shipment Header". The description is done for REP208 Sales – Shipment: 1. ShowGroup := FALSE. OldRefNo := 0. 2.0).

TrackingSpecCount). ItemTrackingLine ."Source Ref. TrackingSpecBuffer."Source Type". 4. ItemTrackingLine .OnPreDataItem() IF TrackingSpecCount = 0 THEN CurrReport.OnAfterGetRecord() IF Number = 1 THEN TrackingSpecBuffer.NEWPAGE."). Provide new DataItems for Item Tracking. Define the global variables.SETCURRENTKEY("Source ID".Appendix C: Customizing IT Reports 3.NEXT.FINDSET ELSE TrackingSpecBuffer. SETRANGE(Number. IF ItemTrackingAppendix. CurrReport. ShowTotal := FALSE. "Source Prod.1. No. Name TrackingSpecCount ShowLotSN ShowTotal ShowGroup TotalQty OldRefNo OldNo DataType Subtype Integer Boolean Boolean Boolean Decimal Integer Code Length 20 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement C-5 . Order Line".IsStartNewGroup(TrackingSpecBuffer) THEN ShowTotal := TRUE.BREAK."Source Subtype"."Source Batch Name".

Inventory Management in Microsoft Dynamics™ NAV 5.0 C-6 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement .