Chapter 4: Item Picking and Shipping: Objectives

Chapter 4: Item Picking and Shipping
CHAPTER 4: ITEM PICKING AND SHIPPING

Objectives
The objectives are:
• Review the process for creating and processing a sales order.

• Create an output order.
• Review the setup for consolidated picking.
• Create and use picking routes.
• Create outbound rules.
• Deliver picked items.
• Review the shipment process.
• Use the Create Shipment Wizard.
• Use the shipment staging feature.
• Rearrange and move items.
• Reverse the picking for an item.
• Create and use shipment templates.
• Discuss the reservation methods.
• Create shipment reservation combinations and sequences.
• Create refill pallet transports.
Introduction
Item Picking and Shipping explains how to move items from the warehouse to
the customers by using the advanced functionality of picking and shipping.
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Microsoft Official Training Materials for Microsoft Dynamics®
Your use of this content is subject to your current services agreement
Warehouse Management in Microsoft Dynamics® AX 2012
The Shipping Process figure shows the process in Microsoft Dynamics® AX 2012
for shipping items. The oval circles show the inventory statuses.
FIGURE 4.1 SHIPPING PROCESS
When inventory is running low, you order the items through the purchase order.
After the ordered items arrive, you log the items into the warehouse through the
Item arrival journal (Inventory and warehouse management > Journals >
Item arrival > Item arrival). After selling the items, you pick and ship the items
through the Output order or Picking forms and finally through the Shipping
form.
Scenario
The Contoso Company receives a call from a customer who wants to order 100
units of item 1501. A picking list or output order is created that will inform the
warehouse to pick and ship the items to the customer.
The shipping process starts by creating a shipment in the Shipment form. To

verify the items are shipped to the customer, a shipment list is printed that
includes the units shipped, the pallet ID, and the batch and serial numbers.
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Sales Orders
You can use sales orders to create, maintain, and inquire on inventory orders.
This lesson examines the sales order functionality that is relevant to warehouse
management.
For more detailed information about sales orders, refer to the Supply Chain
Foundation in Microsoft Dynamics AX 2012 course.
Sales Order Types

When you create a sales order in Microsoft Dynamics AX 2012, you can select
from one of several sales order types.
• Journal: Use as a draft. This type does not affect stock quantities
and does not generate item transactions. The sales order journal lines
are not included in master scheduling.
• Subscription: Use for repeated sales of the same item or service to
the same customer. When a packing slip is updated, Microsoft
Dynamics AX 2012 generates a packing slip. When the invoice is
updated, a new packing slip or invoice entry can be updated for the
same sales line.
• Sales order: Use when the customer confirms that he or she wants
the order.
You cannot select the following sales order types manually, because they are
created through the Return management feature or the Project management and
accounting module.
• Returned order: The sales order type, Returned order, is used when
you receive goods returned from a customer.
• Item requirements: When you create the item requirements in the
Project management and accounting module, the system
automatically creates an Item requirements sales order type.
Sales Order Statuses

A sales order can have several statuses that indicate where the selected order is
within the sales order process.
• Open order
• Received
• Invoiced
• Canceled
In addition to the status on the header of the sales order, each line of the order
can also have the same statuses.
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Sales Order Processing Overview

Items are processed in the warehouse in a specific sequence in Microsoft
Dynamics AX 2012, as follows.
1. Sales order creation

2. Confirm the sales order
3. Create output order (optional)
4. Generate picking list
5. Ship the products and generate the packing slip
After you confirmed a sales order, you must inform the warehouse that it must
pick and ship the item with an output order. The warehouse worker receives the
output order and starts the picking process. After filling the order, the item is
moved to the outbound dock. From the outbound dock, the item is sent to the
customer.
Procedure: Create a Sales Order

To create a new sales order from the All sales orders list page, follow these
steps:
1. Open Sales and marketing > Common > Sales orders > All sales
orders.
2. Click Sales order in the New group of the Action Pane to create a
new sales order.
3. In the Create sales order form, select a customer.
4. If you are prompted, click Yes to copy the address, delivery address,
currency, invoice account number, and language to the sales order.
5. If you are prompted, click No to create the new sales order without
copying previous customer purchase information.
6. In the Order type list, select the type of sales order to create.
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7. Enter or change the information in the Create sales order form if it

is necessary, and then click OK.
FIGURE 4.2 SALES ORDER FORM
8. From the Sales order form, click the Line view button or F11 in the
Show group of the Action Pane.
9. Click Add line in the Sales order lines tab.
10. Select the Sales category or Item number.
11. Type the quantity to be sold in the Quantity field.
12. Select the unit of measure of the product in the Unit field.
13. Select the site from the Site field.
14. Optionally, select the warehouse from the Warehouse field.
15. Enter the Unit price for the line.
16. Optionally, enter discount information and repeat steps 2 through 8
for each additional line.
Procedure: Confirm a Sales Order

After you create a sales order, generate the sales order confirmation to confirm
the details of the order and send a confirmation of the sales order to the customer.
This step does not change the order’s status. The Document status is updated to
Confirmed and the system creates a Confirmation journal.
To generate a sales order confirmation, follow these steps.
orders.
2. Select the sales order to confirm the sales order.
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3. In the Sell tab of the Action Pane, click Sales order confirmation in
the Generate group.
FIGURE 4.3 CONFIRM SALES ORDER FORM
4. In the Quantity field, select the appropriate setting.

5. Click OK to generate the order confirmation.
About Sales Order Picking

There are two picking methods that are available in Microsoft Dynamics AX
2012.
• Order picking
• Consolidating picking
When you run a picking list update, it is either voluntary or mandatory,

depending on the item model attached to the item that you are selling. If the
Picking requirement parameter is selected in Inventory and warehouse
management > Setup > Inventory > Item model group, the sales order line
must have the status of Picked before you can continue to packing slip update the
line. The item model group can also determine whether consolidated picking is
used.
If you do not want to use a picking process in the warehouse and the items should
be updated to a Picked status automatically after the picking list is generated, you
can set the Picking route status field in Accounts receivable > Setup >
Accounts receivable parameters.
If consolidated picking is not applied, Microsoft Dynamics AX automatically

creates a shipment and a picking route when, for example, a picking list is posted
from the Sales orders form.
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Procedure: Generate a Sales Order Picking List

To quickly generate a picking list by using order picking, follow these steps:
order.
2. Select the sales order to generate the picking list.
3. In the Pick and pack tab of the Action Pane, click Picking list in the
Generate group. The Post picking list form opens.
FIGURE 4.4 POSTING PICKING LIST FORM
4. In the Quantity field, select the All option.

5. Click OK to post the picking list.
Procedure: Process a Picking List Registration

When the Picking route status field is set to Activated in Accounts
receivable > Setup > Account receivable Parameters on the Updates tab, you
can perform a Picking list registration after you post the Picking list to register
the physical pick of the sales order and have a tighter control of where the sales
order is in the order process.
To perform a Picking list registration, follow these steps:
1. Open Sales and marketing > Common > Sales orders > All Sales
orders.
2. Select a sales order for which a picking list is generated.
3. In the Pick and pack tab of the Action Pane, click Picking list
registration in the Generate group. The Picking list registration
form opens.
4. Select the Select check box on the sales order line that you want to
register the pick for.
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5. Update the Pick quantity field, if you are not registering the
complete quantity of the sales order line.
6. Click Updates and then select Update selected or Update all
7. Close the Picking list registration form.
Procedure: Generate a Sales Order Packing Slip

When the item is ready to ship to the customer, you can post a packing slip. After
you have posted the packing slip, the system recognizes that the sales order
demand is satisfied and reduces the physical on-hand inventory, if you have not
performed the Picking list registration.
To generate a sales order packing slip, follow these steps:
order.
2. Select the sales order to generate the packing slip.
3. In the Pick and pack tab of the Action Pane, click Packing slip in
the Generate group. The Packing slip posting form opens.
FIGURE 4.5 PACKING SLIP POSTING FORM
4. In the Posting packing slip form, in the Quantity field, select All or
Pick.
5. Select the Print packing slip check box to print the packing slip.
6. Click OK on the Posting dialog box.
If the quantities on the packing slip update equal the ordered quantities, the value
in the sales order Status field changes to Delivered. If there is a back order on
one or more items, the sales order status remains as an Open order.
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Output Orders
After you create the sales order lines, you will inform the warehouse that it must
pick and ship the items to the customer. You can perform this by using one of
two methods.
• Picking list
• Output order
The picking list is a report of the item's order, whereas the output order is a line
in the Output order form that warehouse management uses. The Sales Orders
lesson reviewed the process for manually creating picking lists. This lesson
reviews the process for output orders.
When the order picking process is used, an output order and shipment is
automatically created by the system.
An output order is an advanced picking function that is the basis of a shipment.

From the shipment, you can start a pallet transport, a picking route, or both. The
corresponding function for a purchase order is the item arrival journal.
You can view all output orders by opening Inventory and warehouse
management > Inquiries > Output orders.
FIGURE 4.6 OUTPUT ORDERS FORM
Procedure: Manually Create an Output Order

You can manually create output orders from the Sales order form. To create an
output order, follow these steps.
orders.
2. Select the sales order that you want to create an output order for.
3. Click Edit in the Maintain group of the Action Pane.
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4. On the Sales order lines FastTab, select the line that you want to
create the output order for.
5. Click Inventory > Output order.
FIGURE 4.7 CREATE INVENTORY ORDER DIALOG BOX
6. On the Create inventory order dialog box, type the Quantity for
the output order, and then click OK.
About Output Orders

Each output order has one of the following statuses.
• Created: A quantity is not attached to a shipment.

• Handling: Full quantity is attached to one or more shipments, but
part of the order is not yet completed.
• Ended: Full quantity has shipped.
Each output order has one of the following types.
• Consolidated picking
• Pallet transport
• Order picking
The order picking and consolidated picking processes use the same framework,
known as output orders. However, the consolidated picking method has much
more functionality and it requires the Advanced Warehouse Management
configuration key.
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About Consolidated Picking

Consolidated picking implies that multiple orders can be combined into one
picking list. The orders can potentially be of different types, for example sales
orders or transfer orders.
Consolidated picking uses advanced shipment functionality such as reservation

through the shipment, activate picking, activate pallet transport, and guided
picking routes.
For flexibility of use, the consolidated picking method can be set up in a

hierarchy of levels.
• Item model group

• Warehouses
• Warehouse items
• Picking list posting
Picking Process
In Microsoft Dynamics AX 2012, picking can be performed by using three
methods.
• Consolidated picking: Multiple orders can be combined into one

picking list. It is optimized picking because there is one picking list
for multiple orders and it is typically used in a warehouse
management environment.
• Order picking: Order picking is the basic way to handle item
picking—one picking list is created for each order. Order picking can
be used for sales orders and transfer orders only and is the default
picking method for those two order types.
• Inventory transaction picking: Items can also be picked without
creating a picking list and without output order information updates.
This method of picking is accessed from the individual lines on the
relevant journals for example, orders opened from Inventory
management > Journals.
NOTE: We do not recommend that you use inventory transaction picking in

combination with one of the other picking methods. This is because inventory
transaction picking does not update output order related information.
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Setup Options for Consolidated Picking

For flexibility of use, the consolidated picking method can be set up in the
following levels.
Level Setup of Consolidated Picking Method

Item model Open Inventory and warehouse management >
groups Setup > Inventory > Item model groups. Select
the Consolidated picking method check box on the
Setup tab.
Warehouses Open Inventory and warehouse management >
Setup > Inventory breakdown > Warehouses.
Specify in the Use consolidated picking method
field on the Warehouse management tab whether to
use consolidated picking at the current warehouse or
to follow the setting from the Inventory model
groups form.
NOTE: The settings on this form will override the
setting in the Inventory model groups form.
Warehouse items Open Product information management >
Common > Released products. Click the Manage
inventory tab on the Action Pane, and then click
Warehouse items in the Warehouse groups. Use the
Use consolidated picking method list on the
Locations tab to define whether to follow the setting
from the Warehouses form.
NOTE: The setting on this form will override the
setting on the Warehouses form.
If the setting must be different, than the warehouse
depends on whether the item is to be handled
differently than most of the items in the warehouse.
Picking list The consolidated picking order can also be selected
posting forms for individual lines during the posting of picking
lines.
As a default, the setting from the Item model groups
form, the Warehouses form, or the Warehouse
items form is used. However, this setting can be
temporarily overwritten on the line during posting.
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Picking List Registrations

The Picking list registration form is used for both consolidated picking and
order picking. It can be opened from the following locations in the application.
• Inventory and warehouse management > Periodic > Picking list

registration
• Sales and marketing > Journals > Sales order > Picking list
registration
• Inventory and warehouse management > Periodic > Transfer
orders > Posting button > Picking list registration. (Order
picking)
• Sales and marketing > Common > Sales orders > All sales
orders > Pick and pack tab > Picking list registration. (Order
picking)
FIGURE 4.8 PICKING LIST REGISTRATIONS FORM - GENERAL FASTTAB
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Procedure: Pick a Sales Order

You can use the Picking list registration form to confirm the items that are
picked for sales orders, transfer orders, production order lines, or any other order
references where picking registration is needed. Whether the items to be picked
are for a sales order, a transfer order, or a production order line, the same picking
process can basically be used within Microsoft Dynamics AX 2012.
The following is an example of items being picked for a sales order by using the
order picking process.
1. Print the picking list for a list of items to be picked from the
inventory by clicking Sales and marketing > Common > Sales
order > All Sales orders > Pick and pack > Picking list.
2. Pick the items from the inventory.
3. The picked items must be registered. Click Inventory and
warehouse management > Periodic > Picking list registration to
open the Picking list registration form. The form is also available
from the sales order where the paper-based picking list is printed.
NOTE: The picking list can be printed and the picking process started even if all
items are not necessarily in stock. This is useful when items are expected to
arrive in stock before the picking process is completed.
TIP: Use the paper-based picking list to list any differences in the number of
items or picking location.
Picking List Registration Form

The Picking list registration form has four main sections:
• Criteria: Use this section to filter the information displayed in the

form, depending on the picking method or bar code, or picking route
ID.
• General: Use this section to view a list of each order to be picked.
• Lines: Use this section to view line details and manage each picking
line.
• Order picking overview: Use this section for an overview of all
lines for one order, regardless of which picking route they must be
picked on. Order picking has one picking route for each order.
NOTE: Depending on the configuration and license keys, some options and
fields might be unavailable.
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The following table shows what users can do from the Functions button when
they work in the top pane:
Action Description
Activation Activate the picking route.
Start picking route Start picking on a picking route that has the status
“Activated”
Cancel picking route Cancel all lines in the picking route. If one or more
lines are already picked and the Handling status for
the lines is Picked or it has an even later status,
users cannot cancel the route.
Deliver picked items Manually deliver picked items and specify where
you want picked items to be delivered after
picking. The status of each line changes according
to the setup stage that you have defined in the
Outbound rules form. The program automatically
removes any lines that are delivered and highlights
the next items that will be delivered.
Open output orders View open output orders for the picking route.
FIGURE 4.9 PICKING LIST REGISTRATION - LINES FASTTAB
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The following table shows what you can do from the Functions button when you
work in the Lines FastTab.
Action Description
Split picking line If the complete quantity cannot be picked
because of, for example, inventory shortage,
split the line into two.
Both lines will have the same Lot ID.
Notice that, for sales orders, this is only
possible if the customer allows for partial
delivery. This is set up on each sales order
line in the Sales order form (the Complete
option on the General tab).
Unpick picking line For lines that are already Picked or Staged,
undo pick and set the status back to Activated.
The items are now returned to the inventory.
This is, for example, relevant if items are
picked and reported from the wrong batch or
if the customer does not have to have the full
picked quantity.
Cancel picking line For lines that are not Picked, Staged, or
Loaded, remove them from the picking list.
This command corresponds to using the
Delete Record command on the toolbar. You
can also cancel a picking line by specifying
zero (0) on the line.
NOTE: When a line is canceled, the reference
to the issue order will be removed. This makes
the inventory available for another issue.
Cancel shipment For lines that are reserved, remove the
reservation reservation.
The Handling status in the General FastTab is the status for the picking route
or, in the Lines FastTab, for the individual lines.
In the General FastTab the status is based on the status of the individual lines in
the shipment and is equal to the lowest of the line states.
For example, if one of the lines is in the Activated status, when other lines are in
the Complete status, the shipment will be in the Activated status.
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The following table shows a list of Handling statuses that are available.
State Description
Registered This state is relevant for consolidated picking only. It is
set when the Reserve now button on the Shipments
form is used.
Activated For order picking, the picking route state will be
Activated when you create a picking route and do not
perform an auto pick.
For consolidated picking, the picking route state is
Activated when activating a picking route. You can do
this from the Shipments form or when lines are activated
from the Picking list registration form.
Started Picking is started, either from the Picking routes when
guided pick is used, or when you perform the first pick.
Staged At least one line of the shipment lines is still at the staged
state.
Loaded At least one line of the shipment lines is still at the
loaded state.
Complete Picking is completed.
NOTE: The picking route status when the picking list is
posted depends on a parameter setting on the Accounts
receivable parameters form: The picking route status can
go directly to Complete.
Canceled The shipment is canceled for the order.
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Picking Routes
When picking for the shipment is activated, you create one or more picking
routes. Picking routes are found in the Picking routes form. Use this form for
online processing of picking routes. Open Inventory and warehouse
management > Common > Picking routes.
FIGURE 4.10 PICKING ROUTES FORM
Procedure: Pick by Using the Picking Routes Form

Operators who pick items from the warehouse for shipping use the Picking route
form.
To pick by using the Picking routes form, follow these steps.
1. Open Inventory and warehouse management > Common >

Picking routes.
2. Select the Picking route that you want to start.
3. Click Start picking route to start the picking route. Specify the
worker who is doing the picking.
4. Select or create a picking pallet.
5. Open the location that is specified in the Lines section, and then
click Approve details. This opens the Approval line form.
6. Click Pick selected. This approves the transaction, and the line
disappears from the Approval line form. The line reappears on the
Picking form in the Picked tab, and the cursor moves to the next line
of the picking route. If you have more than one item being shipped,
or have more than one pallet, the Active tab keeps track within the
Balance after and Quantity fields on the Picking form.
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The picking status for the picking route is now Completed, and the inventory
transactions have the Picked status. You can packing slip update the sales order
from the Shipment form by using the Functions button.
The Completed tab displays picking lines that are picked. After completion, the
Start picking route button is not active. The order is now ready for shipping. To
return to the Pallet transport form, click Start Transport. Click Complete
transport to send the pallet to the outbound dock.
Procedure: Create a Picking Pallet

You can use the Create picking pallet form to create a new picking pallet. When
you create a picking pallet for a picking route, the system remembers the picking
pallet's attachment if you leave the form and return later to the same picking
route.
To create a picking pallet, follow these steps.
1. In the Picking route form, select the line that you want to create a
pallet for.
2. Click the Create picking pallet button to open the Create picking
pallet form. The Picking pallet field specifies the pallet where the
items are placed. The system automatically names the picking pallet
for you using the numbering sequence.
3. Click OK to accept the pallet, and return to the Picking route form.
Procedure: Order a Refill Manually

If items are missing at a picking location, you can manually order a refill by
clicking Refill in the Picking route form. If the refill has a high priority
according to the specifications in the Inventory and warehouse management
parameters, on the Transport tab, it is most likely the order will be quickly
refilled by a forklift operator.
To manually order a refill, follow these steps in the Picking route form.
1. Select the line that you want to create a refill for.

2. Click Refill.
3. Click OK to automatically create a refill order.
4. Review, and then click Close.
5. After you click Close on the Create refill form, you return to the
Picking route form.
6. In the Picking route form, resume the picking operation.
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Procedure: Make Quantity Adjustments in a Picking

Location
If the quantity available in the picking location is incorrect, you can count the
items and make a manual quantity adjustment. To make a quantity adjustment,
follow these steps.
1. In the Picking routes form, select the item that you want to adjust.
2. Click Quantity adjustment to make an online count at the location.
TIP: This button is only visible if you have entered a default name for the
counting journal in the Inventory and warehouse management parameters
form. How the lines are generated depends on whether you activate counting
from Locations, Pallets, or Picking.
3. The On-hand form displays the quantity in the item's inventory unit.
Enter the counted quantity in the Quantity field.
4. You can use the Dimensions display button to indicate the inventory
dimensions that will be shown in the form.
5. When you finish counting, click OK. This returns you to the Picking
route form, and then you can resume the picking process.
TIP: You can also manually create new lines for counting by clicking New. This
might be required for example, if a different item is in the picking location than
what is expected. Lines that are not to be counted should be deleted; otherwise,
they will be registered as zero counted.
Procedure: Assign Priority to Transports

The handling of the output transport jobs is the same as the input transport jobs.
The priority of the transport jobs depends on the setup of the Inventory and
warehouse management parameters on the Transport tab. These settings are
typically defined by the warehouse manager.
To set up these parameters, follow these steps.
1. Open Inventory and warehouse management > Setup >

Inventory and warehouse management Parameters > Transport
tab.
2. Type the priority you want to give to pallet transports of the Output
type transport when they are created. The greater the value, the
higher the priority a pallet transport has, and the higher priority with
the warehouse workers.
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Deliver Picked Items

With the Deliver picked items feature, Sammy, who is responsible for shipping
and receiving, can set up where picked items should be delivered, and John, the
warehouse worker can accept this setup or change it according to the warehouse
situation.
Outbound Rules
You can set up outbound rules to determine how the program will handle the
outbound process. You can use these rules to enable or disable the shipment
staging functions to control the shipment process and, in particular, in which
stage to send a shipment. Open the Outbound rules form from Inventory and
warehouse management > Setup > Distribution > Outbound rules.
FIGURE 4.11 OUTBOUND RULES FORM
You can use the Outbound rules form to show the existing outbound rules and
to create new outbound rules.
Procedure: Create an Outbound Rule

To create a new outbound rule, follow these steps.
1. Type an Outbound rule ID and Description for the rule.

2. Select the Deliver picked items field if you want to be able to
specify a different to location for delivering the picked items. If you
do not select this field, the items are automatically delivered to the
default location.
3. In the Set picking line status to field, select the status for the
picking line after delivery.
4. In the Allow send from shipment status field, select the status that
defines when the shipment can be sent. The shipment status is
always based on the lowest denominator of the shipment lines status.
5. All the shipment lines must at least have the status Picked for them
to be shipped.
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6. Select if you want the program to ship the items automatically when
the shipment status reaches the one that you have specified in the
Allow send from shipment status field.
7. Select if you want a bill of lading created and a shipment list printed
automatically when you ship.
NOTE: If you select Completed, when you deliver the last item in the shipment,
the shipment will be automatically sent.
Deliver Picked Items Form

The Deliver picked items form shows John, the warehouse worker, where he
should deliver the items he has picked on his picking route. John can also specify
if the picking pallet can be left at the destination. By default, this form shows the
destination location (either an outbound dock or a production input location) of
picked items that are defined in the Shipment form. The Deliver picked items
form is opened from Inventory and warehouse management > Picking
routes > Deliver picked items.
The Deliver picked items form can also be opened from the Picking list
registration form. The status of each line changes according to the setup stage
defined in the Outbound rules form. Microsoft Dynamics AX 2012
automatically removes any lines that are delivered and highlights the next items
to be delivered.
Example: Pick and Deliver

A shipment is created that has lines that can be picked with a picking route and
output pallet transport. The shipment is using the following outbound rule.
• Deliver picked items: Selected

• Set picking line status to: Staged
• Allow send from shipment status: Loaded
• Auto send shipment: Cleared
When John, the warehouse worker, updates the last line on his picking route, the
Deliver picked items form opens automatically and the tab on the picking route
that displays picked items is updated with the To-dimension information.
On the Overview tab, John can view the item to deliver with the default To
dimension displayed. When the Move button is used, the status on the pickings
lines changes to what is set up under the outbound rules.
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Example: Deliver Part of a Picking Route

To deliver only part of a picking route, John, the warehouse worker, clicks
Deliver picked items on the Picking route form and the Deliver items form
opens.
John recognizes that there is insufficient space on the specified default delivery
location. Therefore, he changes the destination location and clicks Move. Now
the To dimension is updated to the new dimension.
Shipment Process
In Microsoft Dynamics AX 2012, the shipment process consists of the setup and
the execution of the shipment. The following list shows the steps used in each
process.
Set up the Outbound Shipment Process
• Define shipment reservations

• Outbound rules
• Shipment templates
• Batch jobs running Shipment reservations and physical shipment
updates
Execution of the Outbound Process
• Create a shipment
• Run shipment reservation
• Active picking processes
• Pick and deliver to shipment staging
• Execute shipment staging and loading
• Send shipment
Warehouse workers use the Shipment form to perform picking, shipping and
output pallet transports.
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Shipments Form
To open the Shipments form, click Inventory and warehouse management >
Common > Shipments.
FIGURE 4.12 SHIPMENTS FORM
On the General tab of the Shipments form, you can specify the joint packing
options for each shipment. The joint packing is used to specify how picking
routes and whole-pallet output transports are completed. The following options
are available.
• All: Whole shipment can be packed together.

• Same customer: Orders to a single customer can be packed together.
However, orders to different customers must be in different picking
routes and cannot be included together in the same pallet transport.
• Order: Each order, production, and so on should be packed
separately.
The Status field on the General tab of the Shipments form is used to identify
where a shipment is located within the shipment process. Each shipment has one
of the following statuses.
• Registered: The shipment is created but not yet reserved or, if just
one shipment line exists, without being part of a route.
• Reserved: The shipment is reserved and picking routes and/or pallet
transports are generated. However, they are not yet released for
picking.
• Activated: Both picking routes and pallet transports are released, but
not all are completed.
NOTE: Picking can start even when all items for the shipment cannot be
reserved.
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• Picked: At least one line of the shipment line is still at the picked
stage.
• Staged: At least one line of the shipment line is still at the staged
stage.
• Loaded: At least one line of the shipment line is still at the loaded
stage.
• Sent: Use when the shipment is sent. Also use to mark the shipment
as fully expedited. The shipment is sent and the shipment is fully
expedited.
• Canceled: The shipment is canceled.
Picking Statuses and Pallet Transport Statuses

Each shipment also has a status for picking in the Pick field of the Status group.
The following options are available.
• Blank: Consignment is not yet reserved, or no picking routes are

associated with the shipment.
• Registered: All picking routes are created, but not all are released
for consignment.
• Activated: Picking routes are released for consignment, but not all
are started.
• Started: Picking routes are started, but not all are finished.
• Completed: All picking routes are completed.
Each shipment also has a Pallet transport status. The following options are
available.
• Blank: Shipment either is not yet reserved, or no pallet transports are

associated with the shipment.
• Registered: Pallet transports are created, but not all are released for
consignment.
• Activated: Pallet transports are released for consignment, but not all
are started.
• Started: Pallet transports are started, but not all are finished.
• Completed: All pallet transports are completed.
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Procedure: Use the Create Shipment Wizard

The Create shipments wizard guides you through creating shipments, to specify
joint packing parameters, warehouse, and the outbound dock to which you must
ship.
To create a shipment, follow these steps.
1. Open Inventory and warehouse management > Common>

Shipments.
2. Click Functions > Options.
3. In the Options form, select the Use wizard when creating check
box, and then click OK.
4. Click New to create a new shipment line by using the wizard.
5. Click OK.
6. Click Next.
7. Select the template to be used for shipment creation, and then click
Next.
8. Select a warehouse and the outbound dock, and then click Next.
9. Review the inventory orders, and then click Next.
10. Click Finish. The item now is available in the Shipments form.
Procedure: Add an Output Order to an Existing Shipment

If an order is received while a shipment to the customer is already in progress, an
output order can be manually or automatically added so that the customer
receives all items in one shipment.
To manually add an output order to an existing shipment, follow these steps.
1. Open Inventory and warehouse management > Shipments to

view the current shipment information.
2. Select the shipment to add an output order to and then click Show
lines.
3. In the Shipment lines form, click Add to open the Output order
form and to display the list of current output orders with a quantity
that is not yet added to a shipment.
4. In the Quantity field, specify the quantity that you want to add to the
shipment or select the All check box to add all items from the output
order to the shipment.
The items from the output order are now displayed in the Shipment lines form.
On the General tab of the Shipment template form, determine when to add
output orders automatically by setting the Outbound rule ID and Joint packing
fields, to an existing shipment in the Configuration field group. In the
Automatic addition status field, select the status up to and including when
orders can be added automatically to the shipment.
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Shipment Staging
The purpose of the Staging feature is to give Sammy, who is responsible for
shipping and receiving, an overview of shipments in the outbound dock, and for
John, the warehouse worker, to rearrange and repack shipments.
The Staging feature in Microsoft Dynamics AX 2012 makes it possible to move

items between pallets in a shipment or across shipments, and to move items to
the floor from the picking pallets. A coherent shipment process is implemented
where a user can add and remove lines of the shipment until the shipment has the
Sent status.
Scenario
Sammy and John can handle the shipments up to and until the shipment is sent.
They can rearrange the shipment, by moving items to a new pallet in the
shipment or moving the items to another pallet within the shipment. They can
even move the items to the floor if a pallet is not needed when they load the
items into the truck/shipping container.
In addition to the physical arrangement on the outbound dock, Sammy can

remove items from a shipment if a customer, for example, cancels a delivery.
Sammy also has a good overview of the complete shipment process because he
can monitor the whole shipment process from the shipment registration until it is
sent off.
Shipment Staging Form

You can use the Shipment staging form to track the progress and whereabouts
of shipments in the warehouse.
On the Overview tab, shipments are displayed; on the Setup tab, a user can
define what view to have on the Overview tab.
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To open the Shipment staging form, click Inventory and warehouse

management > Periodic > Shipments > Shipment staging or from Inventory
and warehouse management > Common > Shipments, and then click
Shipment staging.
FIGURE 4.13 SHIPMENT STAGING FORM
You can only use the Shipment staging form when the shipments have a Staged
or Loaded Handling status.
Set Up the Shipment Staging Form

The view on the Overview tab is defined by the criteria set in the Range fields
and on the Setup tab under the Handling status field group where, for example,
Staged and Loaded can be selected.
The specified setup can be saved by clicking the Modify button. From the
Modify button, a user can delete an already defined setup or copy another user’s
setup. Click the Update button to update the view according to the setup on the
Setup tab and in the Range fields.
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The Functions button in the top pane performs the following actions for the
shipment highlighted in the top pane.
• Move items to floor: Move the selected lines to the floor.

• Move to location: Move the selected lines to the destination
location.
• Move items to another pallet: Move the selected lines to another
pallet within the same shipment.
• Move to shipment: Move the selected pallet/line to another
shipment within the same site.
• Load: Load the selected line onto the truck or container (only
possible for the shipments with the Loaded status).
• Unload: Unload the selected line onto the truck or container (only
In the bottom pane, the lines for the shipment highlighted in the top pane are
displayed. For the shipment lines, the following functionalities are available from
the Functions button:
• Unpick: Unpick selected lines.

• Move items to another pallet: Move line(s) with a value in the
Move quantity field to another pallet within the same shipment.
• Move items to floor: Move the line(s) with a value in the Move
quantity field to the floor.
• Move to shipment: Move the line/s with a value in the Move
quantity field to another shipment within the same site.
• Load: Load the selected line onto the truck or container (only
• Unload: Unload the selected line onto the truck or container (only
The Update move quantity button provides the following two menu items:
• Set full move quantity: Initializes the move quantity specified in the
Quantity field.
• Clear move quantity: Clear the Move quantity column.
Procedure: Rearrange or Move Items

To rearrange or move items that are picked and delivered to the staging area,
follow these steps.
1. Open Inventory and warehouse management > Periodic >

Shipments > Shipment staging.
2. In the Shipment overview pane, select the line that contains items
that you want to rearrange.
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3. Click Functions, and select how you want to move the items.
4. If you want to make additional changes to the individual lines for the
line that you have moved, select the line, and enter a quantity in the
Move quantity field. And then for the Detailed lines, click
Functions and select how you want the quantities moved.
5. In the Move form, specify the quantity and the location and pallet
that you want it to be moved to.
6. Click OK.
Procedure: Unpick Items

To unpick items that are picked and delivered to the staging area, follow these
steps.
1. Open Inventory and warehouse management > Periodic >

Shipments > Shipment staging.
2. In the bottom pane, select the line in the grid that contains items that
you want to return to inventory.
3. Click Functions and then Unpick.
4. In the Unpick form, specify the quantity and the relevant storage
inventory dimensions.
5. Click OK.
Microsoft Dynamics AX 2012 removes the lines that you have unpicked.
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Lab 4.1 - Consolidated Picking

Scenario
You are a sales processor in the Contoso Company. Customer 2001, The
Waterfall Hotel, orders three units of item 1601. Later the same day, customer
2001 orders an additional one unit of the same item. Sell and ship four units of
item 1601 to customer 2001 by using the consolidated picking method.
Challenge Yourself!
1. Create two sales orders for item 1601, customer 2001.

2. Use shipment template 100_all to create a shipment.
3. Activate the picking and pallet transport.
4. Pick and deliver the picked items through the Picking route form.
Need a Little Help?
• Create two sales orders for customer 2001, item 1601, one for
quantity of three units and the other for a quantity of one.
• Create output orders.
• Post the picking list for the second order.
• Create a shipment.
• Process the shipment.
Step by Step: Create Sales Orders

To create two sales orders, follow these steps.
1. Open Sales and marketing > Common > Sales Orders > All sales
orders.
2. Click Sales order in the New group of the Action Pane.
3. In the Create sales order form select 2001 in the Customer
account field.
4. Click OK.
5. In the Sales order lines FastTab, click Add line to create a new line
if one is not created for you.
6. In the Item number field, select 1601.
7. In the Quantity field, type "3".
8. Note the sales order number and then close the Sales order form.
account field.
11. Click OK.
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15. Note the sales order number, and then close the Sales order form.
Step by Step: Create a Picking List and Shipment

To generate the picking list, follow these steps.
1. From the Sales order list page, click Refresh in the List group of
the Action Pane.
2. Select the two sales order that you created.
3. Click the Pick and pack tab on the Action Pane.
4. Click Picking list in the Generate group.
5. On the Posting picking list form, verify that you have two lines.
6. Click OK to post the picking lists.
To create a shipment, follow these steps.
1. Open Inventory and warehouse management > Shipments.

3. Verify that the Use wizard when creating is selected. Click OK.
4. Click New to create a new record.
5. Click Next.
6. Select the Shipment template 100_all from and then click Next.
7. Select the same customer in the Specify how the orders are
grouped when creating picking routes field.
8. Select OUT-01 in the Outbound dock field.
9. Leave the default site and warehouse, and then click Next.
10. On the Inventory order page of the wizard, click the cornerstone
check box to select all the records.
11. Scroll to the bottom of the list and clear the check boxes for the sales
orders that you created earlier.
12. Press Alt+F9 to delete the other sales orders from this shipment.
13. Verify two output orders are created from the sales orders that you
created. Click Next.
14. Click Finish, and you have created the shipment.
15. Close the Infolog that verifies a shipment is created.
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Step by Step: Process the Shipment

To process the shipment, follow these steps.
1. The shipment now appears in the Shipment form. Click

Functions. > Activate to activate picking routes and pallet
transports.
2. Click Inquiries > Picking routes.
3. Click Functions > Start picking route.
4. Click OK to start the picking route.
5. Click Updates > Update all.
6. Click Deliver items.
7. Close the Picking list registration form.
8. On the Shipment form and then press F5 on the line of the current
shipment.
9. Notice that the Status is Staged and the Pick status is Completed.
10. Click Shipment staging.
11. On the Shipment staging form, click Functions > Load entire
shipment.
12. Close the Shipment staging form.
13. On the Shipments form and notice that Status changed to Loaded.
14. Click Functions > Send.
15. Click OK, and notice that the shipment status changed to Sent.
16. Click Functions > Packing slip. Click OK to post the packing slip,
and then click Yes.
17. Close the Show packing slip report window and the Shipments
form.
orders.
19. Select the sales orders that you created earlier and verify that the
current sales order’s status is Delivered.
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Shipment Reservations
In Microsoft Dynamics AX 2012, the shipment reservation process gives the
shipping manager control of the warehouse in which to reserve items, and the
reservation methods to use.
For example, when the user reserves items for a shipment, item shortage can
mean that you cannot reserve all items from the default warehouse.
In Microsoft Dynamics AX 2012, you can specify exactly which warehouse to

reserve from first, second, and third by using a reservation sequence and to
additionally specify the reservation method, for example a picking route or an
output transport.
Shipment Templates
Two forms in Microsoft Dynamics AX 2012 increase the number of details in the
shipment template as they determine the reservation method and reservation
sequence to use for the shipment. The shipment reservation sequence consists of
one or more shipment reservation combinations and is a prerequisite for creating
a shipment template.
Open Inventory and warehouse management > Setup > Distribution >
Shipment Templates.
FIGURE 4.14 SHIPMENT TEMPLATES FORM
Before a shipment template is created, the following must be created.
• A shipment reservation combination

• A shipment reservation sequence
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Create Shipment Templates

A shipment template is a collection of default settings that are used when a new
shipment is created. The more information that is specified on the shipment
template, the easier it is to create a new shipment. You can create any number of
shipment templates so that the smallest amount of information possible must be
changed on the individual shipments.
The following information can be specified on the shipment template.
• Priority: Specify the priority to use for the shipment template when
shipments are created automatically.
• Shipment template: Specify the name of the Shipment template.
• Joint packing: Specify how the orders are grouped when picking
routes are created. The following options are available.
o All: Select when the shipment can be packed together.
o Same customer: Select when orders to a single customer can be
packed together, whereas, orders to different customers must be
in different picking routes and cannot be included together in the
same pallet transport.
o Order: Select when you want each order to be packed
separately.
• Joint shipping: Specify how the orders are grouped when shipments
are created. Similar options are available as the Joint packing field.
• Sequence ID: Specify the shipment reservation sequence that you
want to use for the shipment template.
• Site: Specify the site to ship from.
• Warehouse: Specify the warehouse to ship from.
The additional settings can be specified on the General tab of the Shipment
template form.
Priorities in Shipment Templates

The priority setting on the Shipment template form is important when a
shipment is created automatically. A shipment is automatically created by using
the Automatic shipment creation check box on the Shipment template form.
When an output order is created, and if the Automatic shipment creation check
box is selected, the existing shipment templates are searched through
automatically to match the criteria set from the Shipment template form. These
criteria are specified by clicking the Criteria button.
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If a template is found, a new shipment is created and the output order is added to
it. In earlier versions of Microsoft Dynamics AX, in instances where more than
one template matches the output order, the first shipment template created is used
to create a shipment. However, in Microsoft Dynamics AX 2012, the new
shipment template parameter Priority determines the template that will be used
to create the shipment. The shipment template with the highest priority will be
used.
Shipment Reservation Combinations Form

The combination of methods and the sequence in which they are used are
specified in the Shipment reservation combinations form. Open Inventory and
warehouse management > Setup > Distribution > Shipment reservation
combinations.
The Shipment reservation combination form defines how and where the
shipment reservation process reserves. You can use this form to define the
shipment reservation combinations that will be used as building blocks when you
are defining a reservation sequence.
The reservation process can reserve either of the following.
• A full pallet and create an output pallet transport from any bulk
location
• A picking route, reserved from the:
o Item picking location
o Any picking location
o Any inbound location
o Any bulk location
o Any outbound location
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The shipment reservation combination can be a combination of one or more of

the available reservation methods but a reservation method can only be used one
time in a combination. Additionally, the exact sequence in which the methods are
applied can be specified by a sequence number.
FIGURE 4.15 SHIPMENT RESERVATION COMBINATIONS FORM
For example, one reservation combination, Combination “Pick,” could be the

following.
• Picking route - Item picking location

• Picking route - All picking locations
Another reservation combination, Combination “All,” could be the following.
• Output transport - All bulk locations

• Picking route - Item picking location
• Picking route - All picking locations
• Picking route - All bulk locations
• Picking route - All inbound locations
• Picking route - All outbound locations
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Shipment Reservation Methods

The following table provides an overview of the reservation methods that are
available when a shipment reservation combination is created.
Method Description
Output transport - All A full pallet is physically reserved at the bulk
bulk locations location according to the Min. output pallet
quantity setting on the item and output pallet
transports are created.
Picking route - Item If the required quantity is on-hand, items are
picking location physically reserved on the item picking
location defined on the Warehouse items
form. For this reservation method, two
additional options are available that can be
selected individually. This means that the
Picking route - Item picking location
reservation method can potentially appear four
times in a combination.
• Refill: If a refill pallet transport does not
exist for the picking location, a refill pallet
transport will be created according to the
refill rules and reserved as ordered on the
picking location. The items will be
reserved even though the Ordered option
is not selected.
• Ordered: Inventory will be reserved
ordered. Reservation can, for example, be
based on a purchase order line with the
specific item picking location defined.
Picking route - All Reservation is made at random picking
picking locations locations and assigned to a picking route.
The reservation process finds locations based
on the setup specified on the Inventory model
groups form. If Date-controlled is selected, the
reservation routine will sort and reserve based
on date.
Picking route - All Reservation is made at random inbound
inbound locations locations and assigned to a picking route.
on date
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Method Description
Picking route - All bulk The reservation is made on random bulk
locations locations and assigned to a picking route. The
reservation process finds locations based on
the setup specified on the Inventory model
on date.
Picking route - All The reservation will be made on random
outbound locations outbound locations and assigned to a picking
route.
groups form. If Date controlled is selected, the
on date.
NOTE: A shipment reservation combination consists of one or more of the

available reservation methods. A reservation method can only be used one time
in a combination.
Procedure: Create a Shipment Reservations Combination

To create a shipment reservation combination, follow these steps:

Distribution > Shipment reservation combinations.
2. On the Overview tab, create a new shipment reservation
combination and enter a name and, optionally, a description.
3. On the Lines tab, create a new line.
4. In the Reservation method list, select the reservation method to be
used.
5. Repeat step 3 for each method that you want to add to the
combination.
NOTE: Use the Up and Down buttons to change the sequence.
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Other Reservation Features

The following topics review some additional features that are available for
shipment reservations.
Batch Shipment Reservations
For consolidated picking shipment types, you can run several shipment
reservations at the same time.
You can do this by running the Shipment reservation batch job from Inventory
and warehouse management > Periodic > Shipment > Shipment reservation.
The functionality of using the batch process is the same as pressing Reserve now
in the Shipment form.
FIGURE 4.16 SHIPMENT RESERVATION DIALOG BOX
Running the Reservation Again
If all items are not reserved, the shipment reservation process enables rerunning
the shipment reservation, partial reservations and adding of items to an ongoing
shipping process. Picking can be started of the items that are on-hand, even if the
complete shipment has not been reserved.
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Shipment Reservation Sequences

A shipment reservation combination can be used as-is or shipment reservation
combinations can be created into a shipment reservation sequence. Shipment
reservation sequences are defined in the Shipment reservation sequences form.
Example
Start to make reservations on picking locations in warehouse A and then

warehouse B. Next, reserve in all warehouses within the site at all location types
and do so in the assigned sequence.
1. Warehouse A, Combination “Pick”

2. Warehouse B, Combination “Pick”
3. [No warehouse], Combination “All”
Example
Start to make reservations in warehouse A and then warehouse B within all

location types and do so in the assigned sequence. Next, reserve in all
warehouses within the site.
1. Warehouse A, Combination “All”

2. Warehouse B, Combination “All”
3. [No warehouse], Combination “All”
Shipment reservation sequences are defined for each site and can be specific to a
warehouse.
After the foundation in the form of shipment reservation combinations and

shipment reservation sequences is defined, shipment templates can be defined in
the Shipment templates form.
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The Shipment reservation combinations form, the Shipment reservation

sequences form, and the Shipment templates form are all available from
Inventory and warehouse management > Setup > Distribution.
FIGURE 4.17 SHIPMENT RESERVATION SEQUENCES FORM
Procedure: Create a Shipment Reservation Sequence

To create a shipment reservation sequence, follow these steps:

Distribution > Shipment reservation sequences.
2. On the Overview tab, create a new shipment reservation sequence,
and enter a name. Optionally, type a description and select a site.
3. On the Lines tab, create a new line.
4. In the Combination list, select the shipment reservation combination
that will be used.
5. Repeat step 3 for each combination that you want to add to the
sequence.
TIP: Use the Up and Down buttons to change the sequence when more than one
combination is added.
Automatic Addition Statuses

The statuses available include the following.
• Registered
• Reserved
• Activated
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• Picked
• Staged
• Loaded
If the status is not selected, orders are not added automatically.
NOTE: An output order can be added only if it originated at the same site as the
site specified on the shipment.
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Lab 4.2 - Picking and Shipping Items

Scenario
You are a sales processor in the Contoso Company. Customer 2001, The
Waterfall Hotel, orders 3 units of item 1601. Your task is to sell and ship the
order to the customer.
NOTE: No picking route should be used because you ship one whole pallet.
Challenge Yourself!
1. Create a new sales order to test the shipment process.

2. Use an output order, shipment, picking routes, and output transports.
3. Update the packing slip for your sales order.
Need a Little Help?
• Open Sales and marketing > Common > Sales Orders > All Sales
Order.
• In the Sales order form, create a sales order for the customer 2001,
the Waterfall Hotel and an order line for item 1601 for 3 units.
• Create an output order for the sales order.
• Create a shipment for the output order.
• Process the shipment.
Step by Step: Create a Sales Order

To create a sales order and an output order, follow these steps.

Distribution > Shipment templates.
2. Select the template 100_all and change Automatic addition status
to None.
3. Click Close to exit the form.
4. Open Sales and marketing > Common > Sales Orders > All Sales
Order.
account field.
7. Click OK.
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11. Save the sales order line.
12. Click Inventory > Output order.
13. In the Create inventory order form, click OK.
14. Click Close to exit the Output orders form.
15. Click Close to exit the Sales order form.
Step by Step: Create a Shipment by Using the Wizard

To create a new shipment by using the wizard, follow these steps.

Shipments.
3. In the Options form, verify that the Use wizard when creating
check box is selected, and then click OK.
4. Click New to create a new shipment line by using the wizard.
5. Click Next.
6. Select the Shipment template 100_all, and then click Next.
7. Select Same customer in the Specify how the orders are grouped
when creating picking routes field
8. Select OUT_01 in the Outbound dock field
9. Do not change the default values of the Site and Warehouse fields.
Click Next.
HINT: In the Shipment templates setup form, check the value of the parameter
Automatic addition status.
If it is set to something other than None, then the output order might be
automatically added to an existing shipment and the wizard will display a
warning “No output orders match the criteria specified.” Stop the wizard and
go to the next section. To know the shipment that is used, locate the output order
and then click the Transactions button.
10. On the Inventory order page of the wizard, click the cornerstone
check box to select all the records.
11. Scroll to the bottom of the list and clear the check box for the sales
order that you created earlier.
12. Press Alt+F9 to delete the other sales orders from this shipment.
13. Verify that the list only includes one output order for the sales order
that you created, and then click Next.
14. Click Finish. The new shipment is ready for use. Close the Infolog
that verifies a shipment is created.
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Step by Step: Process the Shipment

To process the shipment, follow these steps.
1. Now the shipment is available in the Shipment form. Click

Functions > Activate to activate picking routes and pallet transports.
2. Close the Shipments form.
Picking routes.
4. Select the picking route for the shipment that you created earlier in
the Picking routes field.
5. Click Create picking pallet, and then click OK.
6. Click Approve details.
7. In the Approve line form, click Pick selected.
8. In the Deliver picked items form click Deliver items.
9. Click Close to exit the Picking route form.
Shipments.
11. Select the shipment that you created earlier, and then verify that
Status is Staged and the Pick status is Completed.
12. Click Shipment staging.
13. Click Functions > Load entire shipment.
14. Close the Shipment staging form to return to the Shipment form
and verify that Status changed to Loaded (if it is required, press F5).
15. Click Functions> Send.
16. Select the Print shipment list check box, click OK and then click
OK again.
17. The Shipment list report will print to your screen. Review the
report, and then click Close to return to the Shipments form.
18. Verify that Shipment status changed to Sent.
19. Click Functions > Packing slip.
20. Click OK to post the packing slip, and then click Yes to verify that
you are printing to your screen.
21. The packing slip will print to your screen. Review the packing slip,
and then click Close.
22. Close the Shipment form.
orders.
24. Select the sales order that you created earlier and verify that the
Status is Delivered.
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Refill Pallet Transports

You can use the following methods to create a refill pallet transport.
• Set up the system to create a refill pallet transport automatically

when you perform shipment reservations. This is set up in the
Shipment reservation combinations form.
• Manually create a refill pallet transport from the Picking routes
form by clicking the Refill button.
• Manually create a refill pallet transport from Inventory and
warehouse management > Periodic > Locations > Create refill.
• Run a periodic batch job by clicking Periodic > Locations > Create
refill.
NOTE: If you have set up automatic refill, you do not have to run the Create
refill batch job.
In Microsoft Dynamics AX 2012, to automatically start the refill transport, open

the Store area form (Inventory and warehouse management > Setup >
Inventory breakdown > Store areas) for the picking area and select the
Automatic activation field. The minimum quantity required for your picking
location must be specified in the Warehouse items form.
When Automatic activation is selected, pallet refill transports are created and
activated automatically when a picking route is activated or started, a refill pallet
transport is completed, and during picking, when the quantity becomes less than
the minimum refill quantity.
The refill check routine examines if the physical on-hand quantity at the picking
location is less than the minimum refill quantity. Picking lines in the Activated
status and in the Started status are considered.
To make sure that the number of pallets at the picking location do not grow too
much, you can set up a maximum storage capacity on the Locations tab of the
Warehouse items form located from Product Information Management >
Released Products > Manage Inventory button > Warehouse items. This
maximum can only be exceeded when a manual refill is performed and when you
make an input transport from an inbound dock location to an item picking
location.
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Procedure: Create a Refill Transport for a Picking

Location
To create a refill pallet transport with a full or partial refill from the bulk location
to the pick location, follow these steps.
1. Open Inventory and warehouse management > Common > Pallet

transports.
2. Select the pallet that you want to start the transport for. If you want
to make sure that no other employee can start this transport, click
Lock transport.
3. Click Start transport.
4. In the Start transport form, you can view the pallet ID that the
program automatically assigns for the To location.
NOTE: If the transport is a partial refill, you can assign a new pallet at the To
location by clicking Create new To pallet and assign the pallet that you want to
assign to the transport. Type the relevant information in the Pallet type and
Pallet ID fields. Click OK. The status is then set to Started.
5. Click Complete transport.
NOTE: If you have not specified the To location pallet and this is required, the
program prompts you to assign a pallet at the To location in the Complete
transport form.
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Summary
Item Picking and Shipping focused on the picking and shipping procedures in
Microsoft Dynamics AX 2012, and covered the following feature areas.
• Sales order and output order creation

• Shipping creation with /without wizard
• Picking route
• Consolidated picking
• Staging
• Item picking registration
Sales orders are used to create, maintain, and ask about outbound orders. After
you enter the sales order lines, you must inform the warehouse that it must pick
and ship the items to the customer by generating a picking list or an output order.
You can use the Shipment form or a batch process to activate shipments and
order pallet transports and picking.
The Create Shipment wizard guides you through creating shipments, specifying
joint packing parameters, warehouse, and the outbound dock to which you must
ship.
You can use the Consolidated Picking feature to optimize the outbound
warehouse management processes.
With Shipment staging and reservation it is easy to follow and control the items
and pallet transport from the warehouse to the outbound dock.
4-49
Test Your Knowledge

Test your knowledge with the following questions.
1. TRUE or FALSE? From the Shipment staging form you can view the current
location of the items in the warehouse.
( ) TRUE
( ) FALSE
2. Which of the following are valid methods of picking items for a sales order
in Microsoft Dynamics AX 2012? (Select all that apply)
( ) Consolidated picking
( ) Output order
( ) Picking list
( ) Order picking
3. TRUE or FALSE? A reservation method can be used in many combinations

in the same Shipment reservation combination.
( ) TRUE
( ) FALSE
4. Describe at least one way that the Pallet transport form is used.
5. Which of the following statements are true about shipment reservation

sequences?
(Select all that apply)
( ) Can be defined for each site.
( ) Can be defined for each warehouse.
( ) Can be defined for each location.
( ) Can be defined for each warehouse item.
4-50
Quick Interaction: Lessons Learned

Take a moment and write down three key points you have learned from this
chapter
1.
2.
3.
4-51
Solutions
Test Your Knowledge
1. TRUE or FALSE? From the Shipment staging form you can view the current
location of the items in the warehouse.
(•) TRUE
( ) FALSE
2. Which of the following are valid methods of picking items for a sales order
in Microsoft Dynamics AX 2012? (Select all that apply)
(√) Consolidated picking
( ) Output order
( ) Picking list
(√) Order picking
3. TRUE or FALSE? A reservation method can be used in many combinations

in the same Shipment reservation combination.
( ) TRUE
(•) FALSE
4. Describe at least one way that the Pallet transport form is used.
MODEL ANSWER:
To create refill pallet transport with a full or partial refill from the bulk
location to the picking location.
5. Which of the following statements are true about shipment reservation

sequences?
(Select all that apply)
(√) Can be defined for each site.
(√) Can be defined for each warehouse.
( ) Can be defined for each location.
( ) Can be defined for each warehouse item.
4-52

Chapter 4: Item Picking and Shipping: Objectives

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Chapter 4: Item Picking and Shipping: Objectives

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Chapter 4: Item Picking and Shipping

CHAPTER 4: ITEM PICKING AND SHIPPING

• Review the process for creating and processing a sales order.

FIGURE 4.1 SHIPPING PROCESS

The shipping process starts by creating a shipment in the Shipment form. To

Sales Order Types

Sales Order Statuses

Sales Order Processing Overview

1. Sales order creation

Procedure: Create a Sales Order

7. Enter or change the information in the Create sales order form if it

FIGURE 4.2 SALES ORDER FORM

Procedure: Confirm a Sales Order

To generate a sales order confirmation, follow these steps.

FIGURE 4.3 CONFIRM SALES ORDER FORM

4. In the Quantity field, select the appropriate setting.

About Sales Order Picking

When you run a picking list update, it is either voluntary or mandatory,

If consolidated picking is not applied, Microsoft Dynamics AX automatically

Procedure: Generate a Sales Order Picking List

FIGURE 4.4 POSTING PICKING LIST FORM

4. In the Quantity field, select the All option.

Procedure: Process a Picking List Registration

To perform a Picking list registration, follow these steps:

Procedure: Generate a Sales Order Packing Slip

To generate a sales order packing slip, follow these steps:

FIGURE 4.5 PACKING SLIP POSTING FORM

An output order is an advanced picking function that is the basis of a shipment.

FIGURE 4.6 OUTPUT ORDERS FORM

Procedure: Manually Create an Output Order

FIGURE 4.7 CREATE INVENTORY ORDER DIALOG BOX

About Output Orders

• Created: A quantity is not attached to a shipment.

Each output order has one of the following types.

About Consolidated Picking

Consolidated picking uses advanced shipment functionality such as reservation

For flexibility of use, the consolidated picking method can be set up in a

• Item model group

• Consolidated picking: Multiple orders can be combined into one

NOTE: We do not recommend that you use inventory transaction picking in

Setup Options for Consolidated Picking

Level Setup of Consolidated Picking Method

Picking List Registrations

• Inventory and warehouse management > Periodic > Picking list

FIGURE 4.8 PICKING LIST REGISTRATIONS FORM - GENERAL FASTTAB

Procedure: Pick a Sales Order

Picking List Registration Form

• Criteria: Use this section to filter the information displayed in the

FIGURE 4.9 PICKING LIST REGISTRATION - LINES FASTTAB

FIGURE 4.10 PICKING ROUTES FORM

Procedure: Pick by Using the Picking Routes Form

To pick by using the Picking routes form, follow these steps.

1. Open Inventory and warehouse management > Common >

Procedure: Create a Picking Pallet

To create a picking pallet, follow these steps.

Procedure: Order a Refill Manually

1. Select the line that you want to create a refill for.

Procedure: Make Quantity Adjustments in a Picking

Procedure: Assign Priority to Transports

To set up these parameters, follow these steps.

1. Open Inventory and warehouse management > Setup >

Deliver Picked Items

FIGURE 4.11 OUTBOUND RULES FORM