Chapter 6: Quarantine Management: Objectives

Chapter 6: Quarantine Management
CHAPTER 6: QUARANTINE MANAGEMENT

Objectives
The objectives are:
• Set up a product by using both quarantine management and

warehouse management.
• Process an item arrival journal with a quarantine order.
• Create a quarantine order manually and automatically.
Introduction
In Microsoft Dynamics® AX 2012, you can manage items that will be
quarantined. The item can be in quarantine for a certain period, for example
because of quality control, where it is set aside awaiting approval for distribution.
Because quarantine management is covered in the Supply Chain Foundation in

Microsoft Dynamics AX 2012 course, that is a prerequisite to this course, the
basic functionality will not be explained here. The purpose of this chapter is to
explain how Quarantine management works together with Warehouse
management.
6-1
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Warehouse Management in Microsoft Dynamics® AX 2012
Scenario
The Contoso Company has received a new item. You want to inspect it to make
sure it meets the requirements of the tolerances you have agreed to with the
vendor. You will receive the item into quarantine for inspection before it is
released for general use.
Set Up Quarantine
Entering items manually does not mean that you must set up Microsoft Dynamics
AX 2012 any differently than the typical settings. In this case, you omit the Setup
section and go directly to the Quarantine orders form description.
NOTE: Automatic set up of an item as a quarantined one will transfer all items
received directly to the quarantine warehouse. If you have an item that you
periodically quarantine, it is best to do the quarantining manually.
Most of the forms and transactions that you use for automatic Quarantine
management are discussed in the “Receipt and Storage” and “Item Picking and
Shipping” chapters.
Automatic Quarantine
To have an item transferred to the quarantine warehouse when receiving the item,
some warehouse management settings must be changed.
For an automatic quarantine operation, the item's inventory model group must be
set up for quarantine management. For more information about inventory model
groups, refer to the “Inventory Model Groups in Warehouse Management” lesson
of the “Setting up Warehouse management” chapter.
If, in the future, you no longer require quarantining the item every time that you
receive it, you can clear the Quarantine management check box in the
Inventory model groups form (Inventory and warehouse management >
Setup > Inventory > Inventory model groups).
NOTE: Microsoft Dynamics AX 2012 only supports automatic quarantine orders

for inbound operations.
6-2
Procedure: Set Up Automatic Quarantine

To set up automatic quarantine, follow these steps.
1. Open Inventory and warehouse management > Setup >

Inventory > Item model groups.
2. In the Item model groups form, click the Setup tab.
3. Select the Quarantine management check box to automatically
send all the incoming items into the quarantine warehouse.
FIGURE 6.1 ITEM MODEL GROUPS FORM
When you select the Quarantine management check box, you indicate that
items attached to this group are under quarantine management rules and
requirements. This is used for items set aside awaiting approval for distribution.
If this check box is cleared, items will not be submitted to quarantine

management rules unless a quarantine order is created manually in the
Quarantine orders form.
6-3
Setting Up the Quarantine Warehouse

Most frequently, the Registration requirements and Picking requirements
check boxes in this form are also selected for warehouse management.
Select the Registration requirements check box when you want item receipts to
be registered before inventory is physically updated. When it is selected, the
status of the item receipt inventory transaction must be Registered before the
item is packing-slip updated.
You can register items in the warehouse management journals, or by clicking the
Inventory button, then Registration on the relevant journals and orders in either
the Purchase order or Sales order forms.
Procedure: Set Up a Quarantine Warehouse

To set up a quarantine warehouse, follow these steps.
1. Open Inventory and warehouse management > Inventory

breakdown > Warehouses.
FIGURE 6.2 WAREHOUSES FORM
2. The warehouse where the item is being sent to must have a

quarantine warehouse associated with it. Use the drop-down list box
in the Quarantine warehouse field to select the quarantine
warehouse.
6-4
3. Both the standard warehouse and the quarantine warehouse must be

set up with Warehouse management. Refer to the "Setting up
Warehouse Management" chapter to review this information.
4. Quarantine items must be set up as warehouse items for both the
standard and the quarantine warehouse.
Procedure: Set Up Products for Quarantine Management

To quarantine a product, you must first set up the product. After you set up the
quarantine warehouse, it must be attached to the product. The forms that you use
to do this are discussed in the “Setting up Warehouse Management” chapter.
1. Open Product information management > Common > Released

products.
2. Select a product that you want to set up for quarantine management.
3. Click the Manage Inventory tab in the Action Pane.
4. Click Warehouse items in the Warehouse group.
5. In the Warehouse items form, click New to create a new line. In the
Warehouse field select a quarantine warehouse.
6. Click the Locations tab.
7. Select the values for the Store zone and Picking location fields.
8. You can also select the values for the Default receipt location and
the Default issue location.
You have now set up manual quarantine management. For an automatic

quarantine setup, there are still some steps to perform.
6-5
Item Receipt
If you use the automatic quarantine order set up, all receipts of the item attached
to the item model group will result in a quarantine order. The quarantine order
places the item in the quarantine inventory and must be reported as finished
before the item is physically available in the standard inventory. The Receipt
Process with Warehouse and Quarantine Management figure shows the receipt
process when both warehouse management and quarantine management are used.
FIGURE 6.3 RECEIPT PROCESS WITH WAREHOUSE AND QUARANTINE

MANAGEMENT
Procedure: Item Arrival with Pallet Transport and a

Quarantine Order
To process an item arrival with a pallet transport and a quarantine order, follow
these steps:
1. Create a purchase order and post the receipt list.

2. Create the item arrival journal for the purchase order.
6-6
3. Verify Quarantine management is selected, and then post the

journal.
FIGURE 6.4 ITEM ARRIVAL JOURNAL FORM
4. After posting the arrival journal, start and complete the pallet
transport that makes sure the item is moved to the quarantine
warehouse.
5. Process the quarantine order.
Quarantine Orders
Use quarantine orders to control items in quarantine, for example, for quality
control or perishables. You can create quarantine orders either automatically or
manually. To create automatic quarantine orders, follow the procedure outline in
the “Setup” section. By doing this, all purchase orders of that item are
automatically posted to the quarantine warehouse. If the item is only occasionally
placed in quarantine, place the item into the quarantine warehouse manually.
Quarantine orders can be created manually without requiring that the current item
be set up for quarantine management in the item model group. However, it must
correspond to a transfer journal, and at least one quarantine warehouse must be
set up.
6-7
Procedure: Manually Create Quarantine Orders

To create a quarantine order manually, follow these steps.
1. Open Inventory and warehouse management > Periodic >

Quality management > Quarantine orders.
FIGURE 6.5 QUARANTINE ORDERS FORM
2. Click New.
3. Select an item in the Item number field.
4. When the entry is saved, a quarantine order is generated with the
status Created.
5. Click the General tab.
6. In the Quantity field, type the quarantined amount.
7. Click the Inventory dimensions tab.
8. In the Inventory dimensions field group, fill in the Location and
Pallet ID fields if these fields are enabled.
9. In the Quarantine inventory dimensions field group, select the
values for the Location and Pallet ID fields. These values will be
used to store the quarantine items.
The Quarantine management field for the item model group must be selected
for automatic quarantine, and a quarantine warehouse must be attached to the
standard warehouse in the Quarantine warehouse field.
Automatic Quarantine Orders

In the “Automatic Quarantine” topic, you should have set up Microsoft
Dynamics AX 2012 to send the item to the quarantine warehouse automatically.
If this is the case, remember that after posting the item in the arrival journal and
transporting the pallet, a quarantine order is automatically created that has the
status Started.
6-8
Quarantined Items
When an item is in the quarantine warehouse, by either the manual or the
automatic method, the procedures for quarantine orders are similar.
Several options exist for quarantine management.
• Automatic quarantine: The item is placed in a quarantine

warehouse when it is registered in purchasing through the
registration requirement for the item model group.
• Manual quarantine: If an item is set up for a manual quarantine, the
quarantine order can be created at the following points in time.
o On product receipt update for a purchase order
o On report as finished updated for a production order
o On registration for a purchase order
o On item arrival or input pallet transport completion
• Both methods (automatic and manual): The pallet is moved to a

quarantine warehouse.
Procedure: Start a Quarantine Order

To start a quarantine order, follow these steps.

2. In the Quarantine orders form, select the quarantine order(s) that
you want to start.
6-9
3. Click Start, or you can you can click Batch processing and run the
processing batch, and then configure the Recurrence and Alerts.
FIGURE 6.6 START QUARANTINE ORDER FORM
4. Click OK. The quarantine assignment is in the batch queue, and you
return to the Start Quarantine orders form.
Quarantine Order Statuses

Quarantine orders can have the following statuses.
• Created
• Started
• Reported as finished
• Ended
Created
The quarantine order receives the status Created when it is created manually.
However, the item is not yet placed at the quarantine warehouse. Two inventory
transactions are generated, one receipt with the status On order in the standard
warehouse and one issue with the status Ordered at the quarantine warehouse.
You can register and/or reserve as usual.
6-10
Started
By clicking OK in the Start quarantine form, you can start a manually created
quarantine order. Orders created automatically receive the status Started. The
item is now moved from the typical warehouse to the quarantine warehouse, and
two inventory transactions are generated—one with the status Received and
another with the status Deducted. At the same time, two undated inventory
transactions with the statuses Reserved physical and Ordered are created to
handle the return transfer.
Reported as Finished
By clicking the Report as finished button in the Quarantine order form, the
Report as finished form will open. In this form, you can report a started
quarantine order as finished, where the item is released from quarantine, but is
not yet moved back to the standard warehouse.
FIGURE 6.7 REPORT AS FINISHED QUARANTINE ORDER FORM
If you use warehouse management, you can specify an item arrival journal that is
initialized with the quarantine order's items. On the General tab of the Report as
finished form, select the arrival journal in the Name field. The item is now
physically reserved in the quarantine warehouse and is not available in the
standard warehouse. The quarantine order is reported as finished, and an arrival
journal is created automatically.
By reporting the item as finished, the item is available but not physically on-hand
in the standard inventory.
6-11
Ended
When a reported-as-finished quarantine order is ended, the item is moved from

the quarantine warehouse back to the standard warehouse, and the item
transactions status is set to Sold in the quarantine warehouse and Purchased in
the standard warehouse.
The status of the quarantine order is now Ended. Only the quarantine orders
whose status is Created or Ended can be deleted manually.
The “Receipt and Storage” chapter showed how the arrival journal is posted, and
how a pallet transport is created that makes sure the item is moved back to the
standard warehouse. The pallet transport is started and completed, and the item is
moved to the main warehouse. The item is physically on hand in the standard
inventory.
NOTE: If you do not use the Warehouse management module, you do have to
report the quarantine order as finished (just end it).
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Lab 6.1 - Set Up and Use Quarantine Management with

Warehouse Management
Scenario
You are an order processor in the Contoso Company. Several of the Contoso
Company's customers have complained about item 5012 LCD Video Projector
Model 02.
Receiving complaints is unacceptable. Therefore, the Contoso Company decides

to introduce a quality check on these video recorders, and use a quarantine
warehouse.
Your task is to set up the item for the quarantine management. Purchase 25 of
item 1502 from vendor 1203, Proseware Electronics. Receive the items and move
them to the quarantine warehouse 28 for quality control. Finally, you should
return items to the standard warehouse.
Challenge Yourself!
Your task is to set up item 1502 to use both quarantine management and
warehouse management. This means that you must assign a quarantine
warehouse to item 1502 and create locations to support quarantine management.
1. What is the receipt status for the inventory transaction in the standard
warehouse and the issue status for the inventory transaction in the
quarantine warehouse? ______________
2. What is the status of the quarantine order? ______________
3. Complete the steps that are required to report the quarantine order as
finished and make the items available in the standard warehouse, 21.
4. What is the receipt status for the inventory transaction in the standard
warehouse and the issue status for the inventory transaction in the
quarantine warehouse? ______________
5. What is the status of the quarantine order? ______________
Need a Little Help?
• Set up the inventory dimension groups for item 1502.

• Create a new picking location for warehouse 28.
• Create picking location for warehouse 21.
• Set up warehouse item for item 1502.
• Create a purchase order for 25 pieces of item 1502 for vendor 1203,
Proseware Electronics.
• Create a new item arrival journal with quarantine management.
• Start and complete the transport.
6-13
• In the Quarantine Order form, determine whether the

corresponding quarantine order is created.
• Report the quarantine order as finished.
• In the Arrival journal click Post to post the journal.
• Start and complete the transport.
Step by Step: Set Up Products and Locations

To set up the product, locations, and warehouse items, follow these steps.

products.
2. Select item number 1502 from the list and then click Edit in the
Maintain group of the Action Pane.
3. Click the General FastTab, and in the Item model group field,
select FRP_QUAR.
4. Click Dimension groups in the Set up group of the Action Pane.
5. Select PG_50 in the Storage dimension group field and the
Tracking dimension group field, and then click OK.
6. Close the Released product details form.
7. Open Inventory and warehouse management > Setup >
Inventory breakdown > Inventory locations.
8. In the Inventory locations form, click New to create a new picking
location.
9. On the General tab and select 28 in the Warehouse field and select
01 in the Aisle field.
10. In the Input area field of the Location field group, select Quar.
11. Click the Other tab, and then select Picking location in the Location
type field.
12. Click New to create a picking location for warehouse 21.
13. On the General tab, select Warehouse 21 and Special in the Aisle
field.
14. Type "999" in the Max. pallets field.
15. In the Input area field of the Location field group, select Quar.
16. Click the Other tab, and then select Picking location in the Location
type field.
17. Close the Inventory locations form.
products.
19. Select item number 1502 from the list.
20. Click the Manage inventory tab on the Action Pane.
21. Click Warehouse items in the Warehouse group.
22. Click New to create a new line.
23. In the Warehouse field select 28.
6-14

25. In the Store zone field, select Quar.
26. In the Picking location field, select 01-00-0-0.
27. Click the Overview tab and then click New to create a new line.
28. In the Warehouse field select 21.
30. In the Store zone field, select Quar.
31. In the Picking location field, select Special-00.
32. Close the Warehouse items form.
Step by Step: Create and Receive a Purchase Order

To create a purchase order and an item arrival, follow these steps.
1. Open Procurement and sourcing > Common > Purchase orders >
All purchase orders.
2. Click Purchase order in the New group of the Action Pane.
3. In the Vendor Account field, select 1203, Proseware Electronics.
4. Click Yes to transfer vendor information, and then click OK.
5. In the Lines pane, select 1502 in the Item number field.
6. Verify the Quantity is “25”.
7. Click the Purchase tab in the Action Pane, and then click Confirm.
8. Click the Receive tab in the Action Pane.
9. Click Posting receipts list in the Generate group of the Action
Pane.
10. Click OK, and then close the Purchase order form.
11. Open Inventory and warehouse management > Journals > Item
arrival > Item arrival.
12. Click New to create a new journal.
13. Select WArr in the Journal name field.
14. Click the Default values tab.
15. In the Account number field select 1203.
16. Verify the Reference field is set to Purchase order.
17. In the Number field select the purchase order that you created
earlier.
18. Select the Quarantine management check box.
19. Click Functions > Create lines to create the journal lines (you may
have to click >> to view the Functions menu.)
20. Select the Initialize quantity check box, and then click OK.
21. In the Journal lines, locations form, click Functions > Pallet ID to
create a pallet number.
22. Click Post and then click OK.
23. Close the Infolog that confirms the journal is posted, and then close
the forms.
6-15
Step by Step: Process the Pallet Transport and

Quarantine Order
To process the pallet transport, and quarantine order, follow these steps.
1. Open Inventory and warehouse management > Pallet transports.

2. Select the pallet ID that was created earlier, and then click Start
transport to start the pallet transport.
3. Click OK to start the transport.
4. Click Complete transport to complete the pallet transport. Verify
that the pallet transport disappears from the form, and then close it.
6. Verify the quarantine order is created for item 1502, the quantity is
25, and the pallet ID is the same as for the arrival journal. (you may
have to click the Inventory dimensions tab to view the Pallet ID.)
7. Verify the status of the quarantine order Status is Started on the
Overview tab.
8. Click Report as finished.
9. In the Report as finished dialog box, select WArr in the Name field
to indicate that an arrival journal should be created automatically,
and then click OK.
10. Note the journal number that is created and then close the Infolog
and the Quarantine orders form.
11. Open Inventory and warehouse management > Journals > Item
arrival > Item arrival.
12. Verify the new journal was created.
13. Click Lines.
14. Verify the item is 1502, the quantity is 25, and the pallet ID is the
same as for the first arrival journal.
15. Click Post and then click OK.
16. Close the Infolog that confirms the journal is posted, and then close
the forms.
17. Open Inventory and warehouse management > Common > Pallet
transports.
18. Select the pallet transport created by the journal that you posted in
step 13.
19. Click Start transport, and then click OK.
20. Complete the pallet transport by clicking Complete transport.
Verify that the pallet transport disappears from the form, and then
close it.
The item is now in the main warehouse.
6-16
Summary
Quarantine management helps a company control incoming items. It also
prevents items from entering a production environment or from being sold while
they are waiting for quality control or are in a controlled status.
Use quarantine orders to control items in quarantine, for example, for quality
control or perishables. There are two ways to enter items into quarantine.
• Manually
• Automatically
After the item is in the quarantine warehouse, by either the manual or the
automatic method, the procedures for quarantine orders are similar.
This chapter reviewed the various quarantine order statuses and how the
transactions are related to each status.
6-17
Test Your Knowledge

Test your knowledge with the following questions.
1. TRUE or FALSE? Automatically setting up an item as a quarantined item

will transfer all items received from a purchase order or production order
after that point directly to the quarantine warehouse.
( ) TRUE
( ) FALSE
2. What are the steps to set up an item for automatic quarantine?
3. What method of quarantine do you use if the item is placed in a quarantine

warehouse when it is registered in purchasing through the registration
requirement for the item model group?
( ) Automatic quarantine
( ) Manual quarantine
( ) Both methods
4. What method of quarantine can you use if a pallet is moved to a quarantine

warehouse?
( ) Both methods
5. What method of quarantine can you use if an item is placed in a standard

warehouse when the product receipt is generated for a purchase order?
( ) Both methods
6-18
6. Which of the following are possible quarantine order statuses? (Select all that
apply)
( ) Created
( ) Started
( ) Processed
( ) Reported as finished
6-19
Quick Interaction: Lessons Learned

Take a moment and write down three key points you have learned from this
chapter
1.
2.
3.
6-20
Solutions
Test Your Knowledge
1. TRUE or FALSE? Automatically setting up an item as a quarantined item
will transfer all items received from a purchase order or production order
after that point directly to the quarantine warehouse.
(•) TRUE
( ) FALSE
2. What are the steps to set up an item for automatic quarantine?
MODEL ANSWER:
Open the Inventory model groups form, click the Setup tab and select the
Quarantine management check box. Then, assign the inventory model group
to the item in the Released products form.
3. What method of quarantine do you use if the item is placed in a quarantine

warehouse when it is registered in purchasing through the registration
requirement for the item model group?
(•) Automatic quarantine
( ) Both methods
4. What method of quarantine can you use if a pallet is moved to a quarantine

warehouse?
(•) Both methods
5. What method of quarantine can you use if an item is placed in a standard

warehouse when the product receipt is generated for a purchase order?
(•) Manual quarantine
( ) Both methods
6. Which of the following are possible quarantine order statuses? (Select all that
apply)
(√) Created
(√) Started
( ) Processed
(√) Reported as finished
6-21
6-22

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Chapter 6: Quarantine Management

CHAPTER 6: QUARANTINE MANAGEMENT

• Set up a product by using both quarantine management and

Because quarantine management is covered in the Supply Chain Foundation in

NOTE: Microsoft Dynamics AX 2012 only supports automatic quarantine orders

Procedure: Set Up Automatic Quarantine

1. Open Inventory and warehouse management > Setup >

FIGURE 6.1 ITEM MODEL GROUPS FORM

If this check box is cleared, items will not be submitted to quarantine

Setting Up the Quarantine Warehouse

Procedure: Set Up a Quarantine Warehouse

1. Open Inventory and warehouse management > Inventory

FIGURE 6.2 WAREHOUSES FORM

2. The warehouse where the item is being sent to must have a

3. Both the standard warehouse and the quarantine warehouse must be

Procedure: Set Up Products for Quarantine Management

1. Open Product information management > Common > Released

You have now set up manual quarantine management. For an automatic

FIGURE 6.3 RECEIPT PROCESS WITH WAREHOUSE AND QUARANTINE

Procedure: Item Arrival with Pallet Transport and a

1. Create a purchase order and post the receipt list.

3. Verify Quarantine management is selected, and then post the

FIGURE 6.4 ITEM ARRIVAL JOURNAL FORM

Procedure: Manually Create Quarantine Orders

1. Open Inventory and warehouse management > Periodic >

FIGURE 6.5 QUARANTINE ORDERS FORM

Automatic Quarantine Orders

Several options exist for quarantine management.

• Automatic quarantine: The item is placed in a quarantine

• Both methods (automatic and manual): The pallet is moved to a

Procedure: Start a Quarantine Order

1. Open Inventory and warehouse management > Periodic >

FIGURE 6.6 START QUARANTINE ORDER FORM

Quarantine Order Statuses

FIGURE 6.7 REPORT AS FINISHED QUARANTINE ORDER FORM

When a reported-as-finished quarantine order is ended, the item is moved from

Lab 6.1 - Set Up and Use Quarantine Management with

Receiving complaints is unacceptable. Therefore, the Contoso Company decides

Need a Little Help?

• Set up the inventory dimension groups for item 1502.

• In the Quarantine Order form, determine whether the

Step by Step: Set Up Products and Locations

1. Open Product information management > Common > Released

24. Click the Locations tab.

Step by Step: Create and Receive a Purchase Order

Step by Step: Process the Pallet Transport and

1. Open Inventory and warehouse management > Pallet transports.

The item is now in the main warehouse.

Test Your Knowledge

1. TRUE or FALSE? Automatically setting up an item as a quarantined item

2. What are the steps to set up an item for automatic quarantine?

3. What method of quarantine do you use if the item is placed in a quarantine

4. What method of quarantine can you use if a pallet is moved to a quarantine

5. What method of quarantine can you use if an item is placed in a standard

Quick Interaction: Lessons Learned

2. What are the steps to set up an item for automatic quarantine?

3. What method of quarantine do you use if the item is placed in a quarantine

4. What method of quarantine can you use if a pallet is moved to a quarantine

5. What method of quarantine can you use if an item is placed in a standard

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