Table of Contents

Introduction 0-1 
Welcome ............................................................................................................ 0-1 
Microsoft Dynamics Courseware Contents ........................................................ 0-2 
Documentation Conventions .............................................................................. 0-3 
Student Objectives ............................................................................................. 0-4 
Chapter 1: Overview 1-1 
Objectives ........................................................................................................... 1-1 
Introduction ......................................................................................................... 1-1 
Goals of Warehouse Management ..................................................................... 1-2 
Terminology and Concepts ................................................................................ 1-4 
Workflow in Warehouse Management.............................................................. 1-11 
Integration with Other Modules......................................................................... 1-21 
Advanced Warehouse Management ................................................................ 1-22 
Summary .......................................................................................................... 1-23 
Test Your Knowledge ....................................................................................... 1-24 
Quick Interaction: Lessons Learned ................................................................. 1-25 
Solutions ........................................................................................................... 1-26 
Chapter 2: Setting Up Warehouse Management 2-1 
Objectives ........................................................................................................... 2-1 
Introduction ......................................................................................................... 2-1 
Basic Setup for Inventory and Warehouse Management ................................... 2-2 
Product Setup ..................................................................................................... 2-4 
Lab 2.1 - Complete Product Setup ................................................................... 2-17 
Inventory Dimension Groups ............................................................................ 2-19 
Lab 2.2 - Using Dimensions ............................................................................. 2-24 
Lab 2.3 - Create Inventory Dimension Groups ................................................. 2-25 
Physical Setup of the Inventory ........................................................................ 2-28 
Logical Setup of the Inventory .......................................................................... 2-44 
Lab 2.4 - Update Store Areas ........................................................................... 2-49 
Pallets and Forklifts .......................................................................................... 2-51 
Lab 2.5 - Set Up Warehouse Management ...................................................... 2-57 
Lab 2.6 - Set Up a Warehouse for Replenishment ........................................... 2-64 
Summary .......................................................................................................... 2-65 
Test Your Knowledge ....................................................................................... 2-66 
Quick Interaction: Lessons Learned ................................................................. 2-68 
Solutions ........................................................................................................... 2-69 
Chapter 3: Receipt and Storage 3-1 
Objectives ........................................................................................................... 3-1 
Introduction ......................................................................................................... 3-1 
Purchase Order .................................................................................................. 3-2 
Lab 3.1 - Create and Receive a Purchase Order ............................................... 3-6 
Arrival Overview and Item Arrival Journal .......................................................... 3-8 
Lab 3.2 - Manage Item Arrivals ........................................................................ 3-16 

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Microsoft Official Training Materials for Microsoft Dynamics®
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Warehouse Management in Microsoft Dynamics® AX 2012

Pallet Transports .............................................................................................. 3-19 

Receipt Registration Requirements .................................................................. 3-24 
Summary .......................................................................................................... 3-28 
Test Your Knowledge ....................................................................................... 3-29 
Quick Interaction: Lessons Learned ................................................................. 3-30 
Solutions ........................................................................................................... 3-31 
Chapter 4: Item Picking and Shipping 4-1 
Objectives ........................................................................................................... 4-1 
Introduction ......................................................................................................... 4-1 
Sales Orders ...................................................................................................... 4-3 
Output Orders ..................................................................................................... 4-9 
Picking Process ................................................................................................ 4-11 
Picking Routes ................................................................................................. 4-18 
Deliver Picked Items ......................................................................................... 4-21 
Shipment Process ............................................................................................ 4-23 
Shipment Staging ............................................................................................. 4-27 
Lab 4.1 - Consolidated Picking ......................................................................... 4-31 
Shipment Reservations .................................................................................... 4-34 
Lab 4.2 - Picking and Shipping Items ............................................................... 4-44 
Refill Pallet Transports ..................................................................................... 4-47 
Summary .......................................................................................................... 4-49 
Test Your Knowledge ....................................................................................... 4-50 
Quick Interaction: Lessons Learned ................................................................. 4-51 
Solutions ........................................................................................................... 4-52 
Chapter 5: RFID in Warehouse Management 5-1 
Objectives ........................................................................................................... 5-1 
Introduction ......................................................................................................... 5-1 
RFID Technology ............................................................................................... 5-2 
RFID Administration ........................................................................................... 5-4 
Receiving with RFID ......................................................................................... 5-11 
Picking, Packing, and Shipping with RFID ....................................................... 5-16 
Summary .......................................................................................................... 5-18 
Test Your Knowledge ....................................................................................... 5-19 
Quick Interaction: Lessons Learned ................................................................. 5-20 
Solutions ........................................................................................................... 5-21 
Chapter 6: Quarantine Management 6-1 
Objectives ........................................................................................................... 6-1 
Introduction ......................................................................................................... 6-1 
Set Up Quarantine .............................................................................................. 6-2 
Item Receipt ....................................................................................................... 6-6 
Quarantine Orders .............................................................................................. 6-7 
Lab 6.1 - Set Up and Use Quarantine Management with Warehouse
Management .................................................................................................... 6-13 
Summary .......................................................................................................... 6-17 
Test Your Knowledge ....................................................................................... 6-18 
Quick Interaction: Lessons Learned ................................................................. 6-20 
Solutions ........................................................................................................... 6-21 

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 Table of Contents

Chapter 7: Quality Management 7-1 

Objectives ........................................................................................................... 7-1 
Introduction ......................................................................................................... 7-1 
Quality Management Setup Review ................................................................... 7-2 
Lab 7.1 - Set Up Automatic Quality Order Generation ....................................... 7-9 
Inventory Blocking ............................................................................................ 7-15 
Lab 7.2 - Block Inventory .................................................................................. 7-18 
Non Conformances .......................................................................................... 7-20 
Lab 7.3 - Create and Print Non Conformances ................................................ 7-28 
Summary .......................................................................................................... 7-33 
Test Your Knowledge ....................................................................................... 7-34 
Quick Interaction: Lessons Learned ................................................................. 7-35 
Solutions ........................................................................................................... 7-36 
Chapter 8: Inquiries and Reports 8-1 
Objectives ........................................................................................................... 8-1 
Introduction ......................................................................................................... 8-1 
Inquiries .............................................................................................................. 8-2 
Reports ............................................................................................................. 8-13 
Lab 8.1 - Use Warehouse Management........................................................... 8-20 
Summary .......................................................................................................... 8-29 
Test Your Knowledge ....................................................................................... 8-30 
Quick Interaction: Lessons Learned ................................................................. 8-32 
Solutions ........................................................................................................... 8-33 

iii
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

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