Microsoft Dynamics® NAV 2009 Warehouse Management

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MICROSOFT DYNAMICS ® NAV 2009

WAREHOUSE MANAGEMENT

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

Last Revision: February 2009 The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication. This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation. Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property.

© 2009 Microsoft Corporation. All rights reserved. Microsoft Dynamics®, Microsoft® PowerPoint® Microsoft® SQL Server® and Microsoft Dynamics® NAV MorphX® are trademarks or registered trademarks of Microsoft Corporation. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. This course content is designed for Microsoft Dynamics® NAV 2009.

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Table of Contents Introduction

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Welcome ............................................................................................................ 0-1 Microsoft Dynamics Courseware Contents ........................................................ 0-2 Documentation Conventions .............................................................................. 0-3 Student Objectives ............................................................................................. 0-4

Chapter 1: Warehouse Management Systems Overview

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Objectives ........................................................................................................... 1-1 Introduction ......................................................................................................... 1-1 WMS Overview ................................................................................................... 1-2 Warehouse Workflow ......................................................................................... 1-3 Summary ............................................................................................................ 1-4 Quick Interaction: Lessons Learned ................................................................... 1-5

Chapter 2: Setting Up Warehouse Management Systems

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Objectives ........................................................................................................... 2-1 Introduction ......................................................................................................... 2-1 Warehouse Setup ............................................................................................... 2-3 Locations Setup .................................................................................................. 2-4 Put-away Template Setup .................................................................................. 2-8 Item Setup ........................................................................................................ 2-10 Zone Setup ....................................................................................................... 2-11 Bin Types Setup ............................................................................................... 2-12 Bin Ranking Setup ............................................................................................ 2-14 Creating Bins .................................................................................................... 2-15 Lab 2.1 - Creating Zones and Bins ................................................................... 2-24 Warehouse Class Setup ................................................................................... 2-25 Summary .......................................................................................................... 2-30 Lab 2.2 - Setting Up Zones and Bins with Special Conditions ......................... 2-31

Chapter 3: Receiving Orders

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Objectives ........................................................................................................... 3-1 Introduction ......................................................................................................... 3-1 Receive and Put-away ....................................................................................... 3-2 Lab 3.1 - Receiving and Putting Items Away .................................................... 3-20 Lab 3.2 - Cancelling the Receipt ...................................................................... 3-22 Cross-Docking .................................................................................................. 3-23 Summary .......................................................................................................... 3-30 Test Your Knowledge ....................................................................................... 3-31 Quick Interaction: Lessons Learned ................................................................. 3-33 Solutions ........................................................................................................... 3-34

Chapter 4: Internal Warehouse Processes

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Objectives ........................................................................................................... 4-1 Introduction ......................................................................................................... 4-1 Item Movements ................................................................................................. 4-2 Lab 4.1 - Movement ......................................................................................... 4-10 Internal Pick and Put-away ............................................................................... 4-11 Lab 4.2 - Use Internal Pick ............................................................................... 4-28

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Warehouse Management in Microsoft Dynamics® NAV 2009 Journals ............................................................................................................ 4-29 Counting ........................................................................................................... 4-35 Working with Warehouse Entries ..................................................................... 4-48 Summary .......................................................................................................... 4-49 Test Your Knowledge ....................................................................................... 4-50 Quick Interaction: Lessons Learned ................................................................. 4-52 Solutions ........................................................................................................... 4-53

Chapter 5: Shipping

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Objectives ........................................................................................................... 5-1 Introduction ......................................................................................................... 5-1 Shipping the Items .............................................................................................. 5-2 Shipping Cross-Docked Items ............................................................................ 5-7 Breakbulk ......................................................................................................... 5-14 Summary .......................................................................................................... 5-20 Test Your Knowledge ....................................................................................... 5-21 Quick Interaction: Lessons Learned ................................................................. 5-22 Solutions ........................................................................................................... 5-23

Chapter 6: Item Tracking Within Warehouse Management Systems 6-1 Objectives ........................................................................................................... 6-1 Introduction ......................................................................................................... 6-1 Preparing Warehouse Management Systems for Item Tracking ........................ 6-2 Receiving Items with Item Tracking Information ................................................. 6-5 Moving Items with Item Tracking Information ................................................... 6-11 Shipping Items with Item Tracking Information................................................. 6-14 Picking According to FEFO .............................................................................. 6-24 Lab 6.1 - Item Tracking with WMS ................................................................... 6-32 Summary .......................................................................................................... 6-35 Test Your Knowledge ....................................................................................... 6-36 Quick Interaction: Lessons Learned ................................................................. 6-38

Appendix A: Warehousing Granules

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Related Granules .............................................................................................. A-6

Appendix B: Terminology List

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Navision Warehouse Management Systems Terminology List ......................... B-1

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Introduction

INTRODUCTION Welcome We know training is a vital component of retaining the value of your Microsoft Dynamics® NAV 2009 investment. Our quality training from industry experts keeps you up-to-date on your solution and helps you develop the skills necessary for fully maximizing the value of your solution. Whether you choose Online Training, Classroom Training, or Training Materials; there is a type of training to meet everyone's needs. Choose the training type that best suits you so you can stay ahead of the competition.

Online Training Online Training delivers convenient, in-depth training to you in the comfort of your own home or office. Online training provides immediate access to training 24 hours-a-day. It is perfect for the customer who does not have the time or budget to travel. Our newest online training option, eCourses, combine the efficiency of online training with the in-depth product coverage of classroom training, with at least two weeks to complete each course.

Classroom Training Classroom Training provides serious, in-depth learning through hands-on interaction. From demonstrations to presentations to classroom activities, you receive hands-on experience with instruction from our certified staff of experts. Regularly scheduled throughout North America, you can be sure you will find a class convenient for you.

Training Materials Training Materials enable you to learn at your own pace, on your own time with information-packed training manuals. Our wide variety of training manuals feature an abundance of tips, tricks, and insights you can refer to again and again:

Microsoft Dynamics Courseware The Microsoft Dynamics Courseware consists of detailed training manuals, designed from a training perspective. These manuals include advanced topics as well as training objectives, exercises, interactions and quizzes. Look for a complete list of manuals available for purchase on the Microsoft Dynamics website: www.microsoft.com/Dynamics.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Microsoft Dynamics Courseware Contents Test Your Skills Within the Microsoft Dynamics Training Materials you find a variety of different exercises. These exercises are offered in three levels to accommodate the variety of knowledge and expertise of each student. We suggest you try the level three exercises first, if you need help completing the task look to the information in the level two exercises. If you need further assistance each step of the task is outlined in the level one exercise.

Challenge Yourself! Level 3 exercises are the most challenging. These exercises are designed for the experienced student who requires little instruction to complete the required task.

Need a Little Help? Level 2 exercises are designed to challenge students, while providing some assistance. These exercises do not provide step by step instructions, however, do provide you with helpful hints and more information to complete the exercise.

Step by Step Level 1 exercises are geared towards new users who require detailed instructions and explanations to complete the exercise. Level 1 exercises guide you through the task, step by step, including navigation.

Quick Interaction: Lessons Learned At the end of each chapter within the Microsoft Dynamics Training Material, you find a Quick Interaction: Lessons Learned page. This interaction is designed to provide the student with a moment to reflect on the material they have learned. By outlining three key points from the chapter, the student is maximizing knowledge retention, and providing themselves with an excellent resource for reviewing key points after class.

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Introduction

Documentation Conventions The following conventions and icons are used throughout this documentation to help you quickly and effectively navigate through the information. CAUTION: Cautions are found throughout the training manual and are preceded by the word CAUTION in bold. Cautions are used to remind you of a specific result of a specific action which may be undesirable. HINT: Hints are found throughout the training manual and are preceded by the word HINT in bold. Hints are used to suggest time-saving features or alternative methods for accomplishing a specific task. NOTE: Notes are found throughout the training manual and are preceded by the word NOTE in bold. Notes are used to provide information which, while not critical, may be valuable to an end user. BEYOND THE BASICS: Advanced information found throughout the training manual is preceded by the words BEYOND THE BASICS in bold. Beyond the Basics provides additional detail, outside of standard functionality, that may help you to more optimally use the application. EXAMPLE: Examples are found throughout the training manual and are preceded by the word EXAMPLE in bold. Examples bring to light business scenarios that may better explain how an application can be used to address a business problem.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Student Objectives What do you hope to learn by participating in this course? List three main objectives below. 1.

2.

3.

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Chapter 1: Warehouse Management Systems Overview

CHAPTER 1: WAREHOUSE MANAGEMENT SYSTEMS OVERVIEW Objectives The objectives are: •

Getting acquainted with Warehouse Management Systems.

•

Understanding the Warehouse workflow.

Introduction This chapter is an introduction to the Warehouse Management Systems (WMS) course. It provides an overview of what WMS is and what it is aimed to. The chapter describes the features available in WMS and explains how to work with them.

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Warehouse Management in Microsoft Dynamics® NAV 2009

WMS Overview The process of physical handling of goods in and out of the warehouse is an extensive and costly operation. To keep costs as low as possible, it is essential that quantity and placement of the items are accurate. To have efficient warehouse processes, the company must define the warehouse in terms of layout, put-away and pick logic, as well as internal replenishment information. Warehouse Management Systems is aimed at companies that need to receive and ship products, while maintaining an optimum space usage and knowing specifically where all products are stored at any given time. Goods can either be stored in predefined (fixed) bins or in random (floating) bins, depending on the need for optimization and the expertise of the warehouse personnel. The WMS granules provide functionality for executing more advanced warehouse processes such as handling items within a warehouse by zone and bin level, handling directed put-away and pick, and the development of an automated data capture system (ADCS). The flow of inventory through the warehouse can be divided into three basic processes: •

Receiving items at the warehouse and making them available.

•

Handling items for internal distribution/movement/production.

•

Picking and shipping items to customers or other locations.

Each process can consist of a series of warehouse handling activities. Receiving items involves the physical receiving of items when they arrive at a warehouse and then putting them away (from the receiving area into the stocking/handling area). WMS also provides the cross-docking functionality as part of the receiving process. Cross-docking is a means of saving time and effort by directing items on orders awaiting shipment from the receive zone directly to the ship zone without placing them into storage. Handling items involves repacking or completing items for sale, inventory counting, supplying production, or simply moving for optimization of space. Shipping items involves picking items from inventory and handing them to the shipping agent whom delivers them to customers. To have an efficient operation, warehouse managers must know which items are to be shipped or are to be used in production and which are expected to arrive. In this way they can estimate the expected workload and allocate warehouse resources accordingly. Employees in sales and purchase departments need to be able to see what stage in the warehousing process a particular order has reached.

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Chapter 1: Warehouse Management Systems Overview WMS for Microsoft Dynamic® NAV 2009 helps companies to manage all these activities in the most efficient way. The NAV granules that deal with WMS provide companies with the necessary functionality to organize the receiving and shipping processes and to assist warehouse employees in recording the receipt of goods, picking items for shipping or production, and making shipments. The granules are used for communication between the sales, purchase, production, and warehousing functions. In particular, the release function ensures that only released inbound and outbound orders can be viewed and processed by the warehouse employees. That means that if a sales or purchase order is released, items are available for further processing by WMS. The list and description of the granules required to have the WMS functionality can be found in Appendix B of this course.

Warehouse Workflow The WMS is designed to work with the inbound, outbound and internal flow of items through the warehouse. The following illustration depicts the WMS overall workflow.

FIGURE 1.1 WAREHOUSE WORKFLOW

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Warehouse Management in Microsoft Dynamics® NAV 2009

Summary This chapter provides an overview of the Warehouse Management Systems. The Warehouse Management System is used to:

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•

Easily receive the items.

•

Handle the items. This includes repacking, inventory counting, supplying production, or just moving an item for optimum warehouse space utilization.

•

Pick the items.

•

Ship the items.

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Chapter 1: Warehouse Management Systems Overview

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

2.

3.

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Warehouse Management in Microsoft Dynamics® NAV 2009

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Chapter 2: Setting Up Warehouse Management Systems

CHAPTER 2: SETTING UP WAREHOUSE MANAGEMENT SYSTEMS Objectives The objectives are: •

Set up a warehouse.

•

Set up locations.

•

Set up put-away templates.

•

Set up items.

•

Set up zones.

•

Set up bin types.

•

Set up bin rankings.

•

Create bins.

•

Use bin creation worksheet template.

•

Create bin content.

•

Create warehouse classes.

•

Assign warehouse classes to zones, bins, and items.

Introduction To use the Warehouse Management Systems (WMS), it must first be adjusted to meet business requirements. This chapter covers the WMS setup options that help to handle items in the best possible way. In Microsoft Dynamics® NAV 2009, the RoleTailored client comes with preconfigured Role Centers to fit many of the fundamental roles in companies. When you set a certain Role Center as default, you will start from a single navigational window that displays information pertinent to your role in the company. From the Role Center, you can navigate to additional information and open separate windows for performing tasks and viewing data. The Role Center is easily customizable in that you can add to the starting page the links to the program entities that you use most often. For warehouse personnel, the Shipping and Receiving – WMS profile is recommended for working at. Its starting page contains direct links to the documents and reports the warehouse managers and other employees tend to work with.

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Warehouse Management in Microsoft Dynamics® NAV 2009 To be able to use the Role Center, set it up as a default one: 1. In the Navigation Pane, click Departments>Administration>Application Setup>RoleTailored Client>Profiles. 2. Open the card for the Shipping and Receiving - WMS profile. 3. Select the Default Role Center check box. 4. Restart Microsoft Dynamics NAV 2009.

FIGURE 2.1 THE SHIPPING AND RECEIVING - WMS ROLE CENTER

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Chapter 2: Setting Up Warehouse Management Systems

Warehouse Setup To set up WMS, companies must specify details about how the program manages certain aspects of their warehouse(s). The settings can be defined in the Warehouse Setup window. 1. In the Navigation Pane, click Departments>Administration>Application Setup>Warehouse>Warehouse, and then in Tasks, click Warehouse Setup.

FIGURE 2.2 THE WAREHOUSE MGT. SETUP WINDOW

The first four fields on the General FastTab specify the warehouse activities that may constitute the warehouse handling processes for location blank. In general it is not recommended to use warehousing processes for location blank. When using WMS, these requirements are to be filled out on the specific location card. In the Receipt Posting Policy and Shipment Posting Policy fields, specify the policy that the program follows when it posts warehouse shipments and receipts: •

Posting errors are not processed – select this option to have the program post all source documents, without stopping, even if any errors occur in the posting process.

•

Stop and show the first posting error – set this option to have the program post source documents until the first error occurs. The posting process is cancelled upon the first error and the rest of the source documents will not be posted.

2. Expand the Numbering FastTab.

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Warehouse Management in Microsoft Dynamics® NAV 2009 The fields on the Numbering FastTab specify the number series the company will be using for various documents, for example, receipt, ship, and put-away.

Locations Setup Multiple locations provide the possibility to set up each location (warehouse) in a specific way. By defining different parameters for the individual location, work processes can be varied from one location to another, and thereby give more freedom of choice according to surroundings and/or customs. NOTE: At Cronus, the White warehouse is set up by default to use WMS, and thereby WMS functionality and processes. Specific demonstration data is already created to support the WMS functionality. To review settings for the White location, do the following: 1. In the Navigation Pane, click the Reference Data button, and then click Locations. 2. Browse to the White location and double-click the location name to open its card. Expand the Warehouse FastTab.

FIGURE 2.3 DEFINING WAREHOUSE SETTINGS FOR THE WHITE LOCATION

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Chapter 2: Setting Up Warehouse Management Systems The following table explains what the values in the fields on the Warehouse FastTab indicate. Field

Explanation

Directed Put-away and Pick

If this check box is selected, this location will use Warehouse Management Systems (replenishment according to the bin type and bin ranking, instructions when creating put-aways and picks, etc.) When you select the check box, the Require Receive, Require Shipment, Require Put-away, Require Pick, and the Bin Mandatory check boxes all are selected by default and become non-editable.

- Require Receive - Require Shipment - Require Put-away - Require Pick - Bin Mandatory

Select these check boxes if you require the location to use the receive, shipment, put-away, and pick functionalities respectively, and if you want to use bins in all transactions with items. These functionalities can be used regardless of the value in the Directed Put-away and Pick field.

Use Put-away Worksheet

Select this check box to use a worksheet for creating a put-away. Deleted put-away lines can be retrieved through this worksheet to create a new put-away. No put-away document will be created automatically upon posting the warehouse receipt, but the posted receipt will become a source document for the putaway worksheet to select for creating a many-to-one put-away process.

Use ADCS

If this check box is selected, the location can use the automated data capture system.

- Outbound Whse. Handling Time - Inbound Whse. Handling Time

These fields relate to the date calculation and order promising functionality. In these fields, you can enter a date formula for the warehouse handling time for the location. These fields are also used for lead time calculation. These functionalities can be used regardless of the value in the Directed Put-away and Pick field.

Base Calendar Code

In the Base Calendar Code field, you can enter the code for the base calendar that must be assigned to the location. This functionality can be used regardless of the value in the Directed Put-away and Pick field.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Field

Explanation

Customized Calendar

The Customized Calendar field indicates, whether or not a customized calendar is set up for the location. This functionality can be used regardless of the value in the Directed Put-away and Pick field.

Use Cross-Docking

If this field is selected, the location can use the crossdocking functionality. This option is automatically enabled when the Directed Put-away and Pick check box is selected. However, the check mark can be removed, if you want to prevent users from using this feature.

3. Expand the Bins FastTab.

FIGURE 2.4 SPECIFYING BINS FOR THE LOCATION

Whenever the Directed Put-away and Pick check box is selected, the fields on this FastTab can be edited. Bins specified on this FastTab are used as a default when receiving, putting away, adjusting, and shipping the items. The bins specified in the Inbound BOM Bin Code and Outbound BOM Bin Code fields are the default bins used by the Bill of Material (BOM) journals. When the BOM journal is posted, a negative adjustment is made to the inbound BOM bin for the components, and a positive adjustment is made to the outbound BOM bin for the output of the BOM.

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Chapter 2: Setting Up Warehouse Management Systems 4. Expand the Bin Policies FastTab.

FIGURE 2.5 THE BIN POLICIES FASTTAB IN THE LOCATION CARD WINDOW

The following table explains the meaning of the fields on the Bin Policies FastTab. Field

Explanation

Bin Capacity Policy

This field shows the capacity policy for bins. You can choose among three options: Never Check Capacity, Allow More Than Max. Capacity, and Prohibit More Than Max. Cap.

Always Create Pick Line

If this check box is selected, the program will create a pick line even though it cannot find items to pick, and it will create a blank zone and bin fields, leaving it up to the user to locate and insert values manually.

Always Create Put-away Line

If this check box is selected, the program creates a put-away line, even though it fails to find a suitable space to store items at and leaves it up to the user to determine the zone and bin.

Allow Breakbulk

If this check box is selected, pallets are allowed for breaking up, for example, into smaller units when picking. The remaining items not used for picking will be left in the area where the larger unit of measure is taken from. To move these items (that may now be misplaced due to a different unit of measure defined in that bin) use the bin replenishment or the movement worksheet to create a movement.

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Warehouse Management in Microsoft Dynamics® NAV 2009 To fulfill further tasks, select both the Always Create Put-away Line and the Always Create Pick Line check boxes. Refer to the scenarios in "Internal Warehouse Processes."

Put-away Template Setup Warehouse Management Systems within Dynamics NAV allows for optimizing the put-away process through using put-away templates. With this facility, you place goods to certain places the first time and then have the program retrieve the goods from the appropriate place whenever required. A company can create a number of put-away templates to suit different business needs and then select one of them to govern put-aways in general in the warehouse. The program will then use the templates to determine the most appropriate zone and bin for storage of the item after receipt. Do the following to open a window with put-away templates and view the existing templates. 1. In the Navigation Pane, click Departments>Administration>Application Setup>Warehouse>Warehouse, and then in Lists, click Put-away Templates. Double-click the STD put-away template to open it.

FIGURE 2.6 PUT-AWAY TEMPLATE WITH PUT-AWAY ACTIVITIES

The put-away template consists of a list of instructions of how to handle items received. Each line represents a command with instructions the program must fulfill. If they cannot be fulfilled, the program must go to the next line. The STD put-away template which is presented in the following illustration, reads as follows:

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Chapter 2: Setting Up Warehouse Management Systems Line 1: Find a fixed bin containing the same item, with the same unit of measure and with the quantity less than pre-defined minimum quantity. If all the criteria matches, then put the item away but do not exceed the pre-defined maximum quantity. The following lines represent variations of the above, but with fewer requirements, until the program is instructed to find an available empty space in a floating bin. Normally, a put-away template is defined for a warehouse (on the Bin Policies FastTab of the location card). However, some situations require that certain items be put away in a specific manner, and this can be determined on stockkeeping unit cards and item cards. For those cases, specify an alternative put-away template code in the Put-away Template Code field on the cards. To specify which put-away template will be used for the item, follow these steps: 1. Click the Reference Data button, then click Items. 2. Browse to item no. LS-2 and double-click it to open its card. 3. Expand the Warehouse FastTab and fill in the Put-away Template Code field with the appropriate code.

FIGURE 2.7 THE ALTERNATIVE PUT-AWAY TEMPLATE ASSIGNED TO THE ITEM

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Warehouse Management in Microsoft Dynamics® NAV 2009 NOTE: By default, some fields are invisible in Microsoft Dynamics NAV 2009. To make them visible, right-click the lines and select Choose Columns. Select the field that is to be visible from the Available columns section, and then click Add, and click OK.

Item Setup To make the most of the WMS functionality and to fully use the available space in the warehouse, provide the program with additional information about the items weight, height, and so on. This helps the program make the calculations necessary to suggest the most efficient and effective ways to conduct warehouse activities. 1. In the Navigation Pane, click the Reference Data button, and then click Items. 2. Browse to item no. LS-81, and on the menu bar, click Related Information, Item, and then click Units of Measure. NOTE: Alternatively, you can access the Item Units of Measure window by clicking the AssistButton next to the Base Unit of Measure field on the General FastTab of the LS-81 item card. 3. Fill in the fields in the window to define the different units of measure in which the item may be transacted. Be sure to also fill in the height, width, length, cubage, and weight for the unit of measure.

FIGURE 2.8 ADDITIONAL INFORMATION ABOUT THE ITEM'S UNITS OF MEASURE

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Chapter 2: Setting Up Warehouse Management Systems Specifying as much information about an item as possible ensures using more adequate space within the warehouse.

Zone Setup Zones and bins comprise the basic structure of the warehouse. The zones are used to subdivide the warehouse into logical parts, and they are then divided into bins. When defining a zone in the warehouse by various parameters, every bin created within this zone inherits those parameters, unless choosing to define them specifically for a given bin. Zones are created in the Zones window, which can be accessed from the location card. To create a zone, do the following: 1. In the Navigation Pane, click Reference Data, Locations. 2. Browse to the White location and click Related Information, Location, Zones.

FIGURE 2.9 ZONES AVAILABLE FOR THE WHITE LOCATION

3. In the Zones window, on the menu bar, click New. Fill in all the fields with the relevant information. Now bins can be created for this zone.

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Warehouse Management in Microsoft Dynamics® NAV 2009 NOTE: When a zone parameter is changed, all new bins created thereafter in that zone will take over the new characteristics, but the already existing bins will not be changed.

Bin Types Setup In WMS, a bin is the smallest unit in which to place and register items. The bin is the backbone of the warehouse structure. To make the architecture more complete and to build up business logic, the company can define bin types that are a combination of warehouse actions indicating the purpose of the bins. Moreover, the bin type is a kind of high-level business process qualifier that allows the program to build up some code logic to perform fast. It works together with: •

Zone that acts as a geographical qualifier.

•

Bin content that acts as a content qualifier, coupling bin and item together.

•

Warehouse class code that acts as a bin content qualifier but as such can distinguish the warehouse in specific workflows.

•

Bin ranking that is a qualifier for selecting a bin while putting away or picking items, when several bins have similar bin contents defined.

There are five warehouse activities used in Microsoft Dynamics NAV 2009: 1. 2. 3. 4. 5.

Receive Put-away Pick Ship None

Each of these activities can be combined and defined as a bin type code. Each bin type code is then assigned to a bin type. A bin type can work with one warehouse activity or a combination of two activities at the same time.

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Chapter 2: Setting Up Warehouse Management Systems To view the bin types and available warehouse activities, in the Navigation Pane, click Departments>Administration>Application Setup>Warehouse>Warehouse, and then in Lists, click Bin Types.

FIGURE 2.10 BIN TYPES AND WAREHOUSE ACTIVITIES

Check marks next to the bin types indicate which actions are allowed to be performed within the given bin type. For example, to put away in a bin of the PICK bin type is not possible, while the PUTPICK bin type code allows for both picking and putting away. Each time a new bin is created, a bin type must be assigned to it. Bin types can be assigned or changed in the Bins window. To open it and view bins and bin types for the PICK zone, follow these steps: 1. Click the Reference Data button, Locations. 2. Browse to the White location and then on the menu bar, click Related Information, and then click Location, Zones. NOTE: Open the Zones window by clicking the Zones button on the Action Pane.

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Warehouse Management in Microsoft Dynamics® NAV 2009 3. Select the PICK zone, click Related Information, Zone, and then click Bins.

FIGURE 2.11 BIN TYPES IN THE PICK ZONE

Bin Ranking Setup Bin ranking is a method of prioritizing replenishment movements, picks and putaways, indicating which bin needs to be replenished or needs to have items picked or put-away first. A bin with a high-ranking number has a higher priority than the one with a low number. When bins are created, they inherit the ranking from the zone for which they are created. For example, if a zone has the ranking of 100, the bins created within that zone will also get a ranking of 100. To define the bin ranking on individual bins, follow these instructions: 1. In the Navigation Pane, click Reference Data, Locations. 2. Browse to the White location, click Related Information, Location, and then click Zones. 3. Select the PICK zone, click Related Information, Zone, and then click Bins.

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Chapter 2: Setting Up Warehouse Management Systems 4. Select bin code W-01-0001, click Related Information, Bin, and then click Contents. 5. Enter the rating in the Bin Ranking field. In this specific bin, the value is set to 100.

FIGURE 2.12 BIN RANKING SPECIFIED

Creating Bins Bins are created in two ways: •

Manually

•

Automatically, by using the Bin Creation Worksheet

If only a few bins are being created, then the manual bin creation method is most appropriate. If a large number of bins are being registered, then the automatic approach is more suitable. Usually this method is used at the startup phase of the warehouse setup, when a large number of bins are being registered. To manually create bins, select the location zone in which to set up a new bin. 1. In the Navigation Pane, click Reference Data, Locations. 2. Browse to the White location, click Related Information, Location, and then click Zones.

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Warehouse Management in Microsoft Dynamics® NAV 2009 3. Select the PICK zone, click Related Information, Zone, and then click Bins. 4. Scroll down to an empty line.

FIGURE 2.13 CREATING BINS MANUALLY

5. Create a new bin by filling in the fields with the appropriate information. Remember that values from the Maximum Cubage and Maximum Weight fields are used by the program to calculate the warehouse space used by items when putting away, moving, or calculating replenishment. The value in the Bin Ranking field is inherited by default from the zone ranking and entered automatically. However, the value can be manually changed, so that information can be entered for as many bins that are needed. NOTE: To make the necessary fields visible, right-click the lines and select Choose Columns. Select the field(s) you want to be visible from the Available columns section, and then click Add, OK. Now the newly created bins are listed in the Bins window.

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Chapter 2: Setting Up Warehouse Management Systems Creating Multiple Bins The bin creation worksheet is an easy-to-use tool for creating bins. It is used for the manual creation of individual bins by filling in the same fields as in the Bins window. However, this tool is mostly used for creating multiple bins. Whenever companies want to create multiple bins, for example, when setting up WMS or for a new section in the warehouse, the bin creation worksheet provides the fastest and easiest method for doing this. This worksheet offers the calculate bins functionality, which helps define options when creating multiple bins. It also helps to define at what rack, section, and level the bins must be created. To use the calculate bins functionality, first create a bin template. It will serve as the basic pattern for a number of bins. To create a bin template, follow these steps: 1. In the Navigation Pane, click the Departments button, then go to Administration>Application Setup>Warehouse>Warehouse, and then in Lists, click Bin Templates.

FIGURE 2.14 CREATING A BIN TEMPLATE

2. Create a bin template by filling in the fields appropriately. Make sure the Zone Code field is visible. The preceding screenshot presents an example of the bin template.

Demonstration: Create Multiple Bins Now it is time to create multiple bins with the calculate bins functionality which is available from the bin creation worksheet. Use the following steps to create multiple bins: 1. In the Navigation Pane, click Departments>Warehouse>Goods Handling Multiple Orders, and then under Tasks, in Periodic Activities, click Bin Creation Worksheet.

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Warehouse Management in Microsoft Dynamics® NAV 2009 2. On the menu bar, click Actions, Functions, and then click Calculate Bins. 3. On the Calculate Bins request form, set the Bin Template Code field to NSB. The information from the NSB bin template code is entered on the Calculate Bins request form. 4. In the fields of the Rack, Section and Level sections, enter information as shown in the following screenshot. The specified values will make up the codes for the new bins. The bin code will go as follows: Rack value-Section value-Level value. Information in the fields in the Rack, Section, and Level sections indicates how many bins of each section and level need to be created. If using a letter(s) as an identifying combination, the same letter(s) must be used in the From No. and To No. fields. For example, if the Rack section of the code is defined as A01 in the From No. and A10 in the To No. The program cannot generate codes with letter sequences, for example, from A01 to F05. To use a character, such as a hyphen "-" to separate the category fields defined as part of the bin code, fill in the Field Separator field with this character.

FIGURE 2.15 THE CALCULATE BINS WINDOW

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Chapter 2: Setting Up Warehouse Management Systems 5. To prevent the program from creating a line for a bin that already exists, select the Check on Existing Bin check box. 6. Click OK to make the program generate bins according to the options that are defined.

FIGURE 2.16 NEW BINS ARE GENERATED

The generated bins are inserted in the Bin Creation Worksheet window. 7. In the Bin Creation Worksheet window, click Actions, Functions and then click Create Bins, and the program will create the bins. Note that the lines in the bin creation worksheet are deleted. To view the bins created by the program, do the following: 1. In the Navigation Pane, click Reference Data, Locations. 2. Browse to the White location and on the menu bar, click Related Information, Location, and then click Zones.

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Warehouse Management in Microsoft Dynamics® NAV 2009 3. Select the STAGE zone, click Related Information, Zone, and then click Bins. The program opens the Bins window for the location, and the newly created bins are highlighted.

FIGURE 2.17 NEW BINS ARE CREATED FOR THE SPECIFIED ZONE

Bin Creation Worksheet Template The bin creation worksheet template is used by the bin creation worksheet when creating a bin. Bin creation worksheet templates are already set up in Microsoft Dynamics NAV. However, templates can be created to serve specific needs. To create a bin creation worksheet template, use the following steps: 1. In the Navigation Pane, click Departments>Administration>Application Setup>Warehouse>Warehouse, and then in Lists, click Bin Creation Worksheet Templates.

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Chapter 2: Setting Up Warehouse Management Systems 2. Select BIN and click Related Information, Template, Names. The Bin Creation Wksh. Names window appears. It contains two default templates for creating bins.

FIGURE 2.18 DEFAULT BIN WORKSHEET TEMPLATES

3. Click New on the Action Pane to create a new bin creation worksheet. In the Name field, enter the name of the new bin template. In Description, enter the bin description. In the Location Code field, select the location for that bin creation worksheet. 4. Click OK. Now that the new bin creation worksheet template is created, it can be selected in the Name field of the Bin Creation Worksheet window. NOTE: If there is more than one bin creation worksheet template set up, a selection can be made from the list of available templates when the Bin Creation Worksheet window is being opened.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Creating Bin Content Bin content can be set up in two ways: •

Manually

•

Automatically

Setting up bin content manually can be done from the location card. To set up content for a bin manually: 1. In the Navigation Pane, click Reference Data, Locations. 2. Browse to the White location and on the menu bar, click Related Information, and then click Location, Bins. 3. Select bin W-01-0001 and click Related Information, Bin, Contents. The Bin Content window appears. 4. Fill in the fields with the appropriate information. The following table explains the meaning of the fields in the Bin Content window. Field

Explanation

Fixed

This field indicates that a certain item is fixed to this bin. Items can and will be entered by the program according to the setup of the put-away template, but items with this field selected have priority over other items.

Default

The field indicates that this bin is the default bin for the item in question. The system of default bins is not used with Warehouse Management Systems.

Block Movement

The field is used to block any movement within the specific bin. This functionality is normally used to prevent movement from or to a specific bin during bin replenishment. This feature is also used for turning a bin into a storage area for the item. There are three options to select from: • Inbound - no items can be moved into the bin

Quantity

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•

Outbound - no items can be moved out of the bin

•

All - no movements are allowed

The field shows the quantity of the items that is currently in the bin. This field cannot be edited.

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Chapter 2: Setting Up Warehouse Management Systems

FIGURE 2.19 BIN CONTENT

To create bin content automatically, use the bin content creation worksheet. Follow these steps to set up bin content: 1. In the Navigation Pane, click Departments>Warehouse>Goods Handling Multiple Orders, and then in Periodic Activities, under Tasks, click Bin Content Creation Worksheet. 2. In the Bin Code field, specify the bin for which to create the content. Fill in other fields on the line with the relevant information. 3. On the menu bar, click Actions, Functions, Create Bin Content. Click Yes to confirm the intention about creating bin content. The new content is set up for the bin. To view the content just created, do the following: 1. In the Navigation Pane, click Reference Data, Locations. 2. Browse to the White location and click Related Information, Location, Bins. 3. In the Bins window, select the bin content is created for and then click Related Information, Bin, Contents. The Bin Content window displays the content set up for the bin.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Lab 2.1 - Creating Zones and Bins In this lab, you will practice creating a new location zone and bins. This zone will be used in future chapters of this training material. Scenario The company received items for internal usage and placed them to the White location. Create a zone specially for using the items internally. Salespeople cannot take these items from the zone for selling but can use them in internal movements. For different operations, the company uses individual bins. Create five bins for such purposes with number series from one to five.

Challenge Yourself! 1. Create a new zone for the White location. 2. Within the new zone, create five new bins.

Need a Little Help? 1. Create a new zone for the White location with the following values: o Zone Code: Internal o Description: Internal Use o Bin Type Code: Ship o Zone Ranking: 0 2. Inside this new zone, create five new bins using the number series from W-15-001 to W-15-005, with the bin ranking of 0.

Step by Step Create a new zone named Internal 1. In the Navigation Pane, click Reference Data, Locations. 2. Browse to the White location and click Related Information, Location, Zones. 3. Click New, and in the Code field, enter Internal, in the Description field, enter Internal Use. 4. In the Bin Type Code field, select Ship. In the Zone Ranking field, enter 0.

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Chapter 2: Setting Up Warehouse Management Systems Create 5 bins in the Internal zone 1. Select the Internal zone and click Related Information, Zone, Bins. 2. Click New and in the Code field, enter W-15-001. Repeat this step for four more bins. Leave the bin ranking set to 0 for all the bins.

Warehouse Class Setup Warehouse classes are used for ensuring that each item is stored in bins that meet its storage needs. Not all items are stored under the same conditions. Warehouse classes provide the way of handling different storage conditions.

Creating Warehouse Classes To mark bins with different storage conditions, first create warehouse classes. To do this, use the following steps: 1. In the Navigation Pane, click Departments>Administration>Application Setup>Warehouse>Warehouse, and then in Lists, click Warehouse Classes. 2. On the menu bar, click New to create a new warehouse class. 3. Fill in the fields and click OK. Now everything is ready for assigning a warehouse class to a zone, bin, or item.

Assigning Warehouse Classes Warehouse classes can be assigned to a zone, bin or item. NOTE: Remember that when a warehouse class code is assigned to a zone, all bins created for that zone will inherit the code.

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Warehouse Management in Microsoft Dynamics® NAV 2009 To assign a warehouse class to a zone: 1. In the Navigation Pane, click Reference Data, Locations. 2. Select the White location and click Related Information, Location, and then click Zones. 3. On the line for the Stage zone, select DRY in the Warehouse Code field.

FIGURE 2.20 THE WAREHOUSE CLASS DEFINED FOR A ZONE

Optionally, the warehouse class can be assigned to individual bins on the bin contents card. NOTE: To be able to receive items, for the RECEIVE zone, each warehouse class must be assigned to at least one bin. Otherwise, items cannot be received. To define a warehouse class for a bin: 1. In the Zone window, select the STAGE zone. 2. Click Related Information, Zone, click Bins, and then select bin W-06-0006.

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Chapter 2: Setting Up Warehouse Management Systems 3. In the Warehouse Class Code field, select DRY. 4. Click Related Information, Bin, and then click Contents. The value of the warehouse class code is copied to the Bin Contents window.

FIGURE 2.21 THE WAREHOUSE CLASS INHERITED BY THE BIN CONTENT

The warehouse class code can be defined for individual items on item cards to indicate to the program that this specific item is to be stored under a certain warehouse condition. To define a warehouse class code for an item: 1. In the Navigation Pane, click Reference Data, Items. 2. Select item no. LS-MAN-10 and double-click the item name to open the item card. Expand the General FastTab.

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Warehouse Management in Microsoft Dynamics® NAV 2009 3. Click the AssistButton next to the Product Group Code field. In the window that appears, click Advanced to open the Product Groups window. 4. Enter DRY for both the Code and the Warehouse Class Code fields. Click OK.

FIGURE 2.22 ASSIGNING THE WAREHOUSE CLASS TO AN ITEM

For the program to properly handle the items with a warehouse class code assigned, bins where these items are received, stored, and shipped from must carry the same warehouse class code as the items. To assign the same warehouse class code to bins from the different zones, for example Receive and Ship, perform the following actions: 1. In the Navigation Pane, click Reference Data, Locations, and then browse to the White location.

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Chapter 2: Setting Up Warehouse Management Systems 2. On the menu bar, click Related Information, Location, click Zones. Select the Receive zone and click Related Information, Zone, and then click Bins. 3. Select a bin, for example W-08-0004, and in the Warehouse Class Code field, select DRY.

FIGURE 2.23 THE WAREHOUSE CLASS SPECIFIED FOR A BIN OF THE RECEIVE ZONE

4. Close the Bins - Location WHITE Zone RECEIVE window. In a similar way, assign the DRY warehouse class to bin W-09-0006 of the Ship zone. Now the program is prepared to receive, store, and ship items with the DRY warehouse class code.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Summary Microsoft Dynamics NAV 2009 provides a highly effective tool for handling items: the Warehouse Management System. To meet business needs, the Warehouse Management System must be set up. There are several steps involved in the set up of the WMS including the following: •

Providing for Warehouse Management setup.

•

Defining warehouse policies for locations.

•

Providing additional information about the item units of measure.

•

Creating put-away and bin creation worksheet templates.

•

Setting up bins

•

Setting up zones.

•

Setting up warehouse classes.

Different combinations of setup options correspond to different business needs.

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Chapter 2: Setting Up Warehouse Management Systems

Lab 2.2 - Setting Up Zones and Bins with Special Conditions The lab tests the basic knowledge on how to create bins using the bin templates and bin creation worksheet. Scenario The Cronus Company starts using a zone of fast frozen food for storing raw food materials at the White warehouse location. The company will use five similar cooling plants with the maximum cubage of 150. This group of plants belongs to section one. Goods of the Frozen-food Producers group will be stored in this zone.

Challenge Yourself! Your tasks are as follows: 1. 2. 3. 4. 5.

Create a new warehouse class for marking bins. Create a new warehouse zone for the WHITE Location. Create a bin template. Create bins for the new zone through the bin creation worksheet. Set up a new product group with the new warehouse class code.

Step by Step Creating a warehouse class 1. Click Departments>Administration>Application Setup>Warehouse>Warehouse, and in the Lists, click Warehouse Classes. 2. Click New, and on the new line, fill in the Code field with FASTFROZEN and the Description field with Frozen-food goods. The new class is created. Creating a warehouse zone for the White location 1. In the Navigation Pane, click Reference Data, Locations. 2. Browse to the White location and click Related Information, Location, Zones. 3. In the Code field enter FREEZEZONE. 4. In the Description field enter Freeze Zone. 5. In the Bin Type Code field select value PUTPICK. 6. In the Warehouse Class Code field select value FASTFROZEN. 7. In the Zone Ranking field, type 100. The new zone for the WHITE location is created.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Create a bin template 1. Click Departments>Administration>Application Setup>Warehouse>Warehouse, and click Bin Templates. 2. Click New, and in the Code field, enter FREEZEBINTEMPL, in the Description field, enter Bin Template for FREEZE Zone, in the Location Code field, select WHITE, and in the Zone Code field select FREEZEZONE. 3. In the Maximum Cubage field enter 150, in the Bin Description field, enter Freeze Zone, and in the Bin Ranking type 50. The new bin template is created. The values for the Bin Type Code and Warehouse Class Code fields are copied from the Zone window. Create bins for the new zone through the bin creation worksheet 1. Click Departments>Warehouse>Goods Handling Multiple Orders, and click Bin Creation Worksheet. 2. Click Actions, Functions, Calculate Bins. 3. In the Bin Template Code field, select FREEZEBINTEMPL. 4. In the From No. and To No. fields in the Rack section, enter WHITE1. In the From No. and To No. fields in the Section section, enter 1. In the From No. and To No. fields in the Level section, enter 1 and 5 correspondingly. In the Field Separator field enter "-." Leave the Check on Existing Bin field empty. 5. Click OK. Microsoft Dynamics NAV 2009 generates bins. Proceed to create them. 6. On the Bin Creation Worksheet window, click Actions, Functions, Create Bins. The new bins are created. Setup a new product group with the new warehouse class 1. In the Navigation Pane, click Reference Data, Items. Browse to item SPK-100 and open the item card. Click the AssistButton next to the Products Group field. 2. On the Product Groups list, click New. In the Code field, enter FREEZE, and in the Warehouse Class Code field, select FASTFROZEN.

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Chapter 2: Setting Up Warehouse Management Systems

Test Your Knowledge 1. Which field must contain a check mark on the location card to indicate that a location should use Warehouse Management Systems? ( ) Allow Breakbulk ( ) Directed Put-away and Pick ( ) Use Cross-Docking ( ) Use As In-Transit 2. What is the fastest and easiest method for creating multiple bins within a given zone?

3. Bin A-01-0001 is of bin type PICK and contains 12 pieces of item 70000. What can be done to prevent the warehouse personnel from using this bin as picking source?

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Warehouse Management in Microsoft Dynamics® NAV 2009 4. Can bin content be created automatically? If yes, what functionality must be used?

5. What are warehouse classes used for?

6. In which places must the warehouse class information be specified to make the program use this functionality? (Select all that apply) ( ) The warehouse class codes must be assigned to product groups, which are then assigned to items and SKUs. ( ) The warehouse class codes must be assigned to zones. ( ) The warehouse class codes must be assigned to a location. ( ) The warehouse class codes must be assigned to bins.

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Chapter 2: Setting Up Warehouse Management Systems

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

2.

3.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Solutions Test Your Knowledge 1. Which field must contain a check mark on the location card to indicate that a location should use Warehouse Management Systems? ( ) Allow Breakbulk (•) Directed Put-away and Pick ( ) Use Cross-Docking ( ) Use As In-Transit 2. What is the fastest and easiest method for creating multiple bins within a given zone? MODEL ANSWER: The calculate bins functionality on the Bin Creation Worksheet is used to easily set up a large number of bins. 3. Bin A-01-0001 is of bin type PICK and contains 12 pieces of item 70000. What can be done to prevent the warehouse personnel from using this bin as picking source? MODEL ANSWER: For bin A-01-0001, set the value of the Block Movement field to Outbound or All. 4. Can bin content be created automatically? If yes, what functionality must be used? MODEL ANSWER: Yes, it is possible to create bin content automatically, by using the bin content creation worksheet. 5. What are warehouse classes used for? MODEL ANSWER: Warehouse classes are used if the warehouse carries items that need specific storage conditions. The program considers the warehouse class codes when it suggests item placement in bins.

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Chapter 2: Setting Up Warehouse Management Systems 6. In which places must the warehouse class information be specified to make the program use this functionality? (Select all that apply) (√) The warehouse class codes must be assigned to product groups, which are then assigned to items and SKUs. (√) The warehouse class codes must be assigned to zones. ( ) The warehouse class codes must be assigned to a location. (√) The warehouse class codes must be assigned to bins.

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Warehouse Management in Microsoft Dynamics® NAV 2009

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Chapter 3: Receiving Orders

CHAPTER 3: RECEIVING ORDERS Objectives The objectives are: •

Receive and put away items on different zones of a location.

•

Cancel a posted receipt.

•

Perform cross-docking for a warehouse receipt.

Introduction Warehouse receipts ensure the availability of items in a particular quantity, type, and quality in a warehouse. This chapter explains how the Warehouse Management Systems (WMS) functionality in Microsoft Dynamics® NAV 2009 helps companies to manage the receipt of inbound orders and handle the process of putting the items away in an efficient way. Inbound orders are: •

Purchase orders

•

Inbound transfer orders

•

Sales return orders

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Warehouse Management in Microsoft Dynamics® NAV 2009

Receive and Put-away Receiving orders with WMS provides new options for defining where and how the items are received and expedited further in the warehouse process. Prior to receiving, an inbound document must be created and released before the warehouse personnel are able to view the order lines. Apart from being a working document, the receipt can also work as an indication of what the warehouse expects, and thereby allow for planning workloads more efficiently. The receipt can either be created from an inbound order or from the Microsoft Dynamics NAV 2009 main menu. If the receipt is created from an inbound order, more than 1 inbound source document can be retrieved for the receipt. With this you can register many items arriving from different inbound orders with one receipt. When items arrive to the warehouse, an employee must handle and register the arrival and insert the exact received amount into the related document. When the warehouse employee posts the receipt, the items become part of inventory available for sale (but not yet ready for picking). When the receipt document is posted, a put-away document is created. This document is an instruction to the warehouse personnel at the receiving area to take the received item and place it in a designated place suggested by the program. At this point, the suggested zone and bin can be altered if the placement suggested by the program is not convenient. The put-away document can be registered, and both the receiving and the putaway can be viewed under Posted Receipts and Registered Put-aways. NOTE: Registering something creates an entry in the program that records an action completed in the warehouse. Registering differs from posting in that it does not create any entries in the general ledger or the inventory item ledger. After registering the put-away document, the items are available for picking. When the warehouse has completed these tasks, the source document can be invoiced. The following scenario illustrates the processes of receiving and putting away the items using data from the demonstration database.

Scenario: Receive and Put Away the Items A buyer at Cronus creates a purchase order for 12 units of item LS-100 from vendor 62000. The receipt of items is requested on January 25, 2001. When handling this scenario, items are to be shipped to the WHITE warehouse.

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Chapter 3: Receiving Orders When the items arrive at the warehouse, the warehouse personnel must perform a series of tasks to make items available for sale and picking. To reflect these procedures in the program, it is necessary to create the purchase order for 12 pieces of item LS-100 from vendor 62000 first.

FIGURE 3.1 A NEW PURCHASE ORDER CREATED

Since this item is not a finished item, its components must be purchased as individual items. 1. On the Lines FastTab, click the Actions icon (a lightning bolt), then click Functions, Explode BOM. From the two options, select Copy dimensions from BOM.

FIGURE 3.2 SELECTING THE BOM EXPLODING METHOD

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Warehouse Management in Microsoft Dynamics® NAV 2009 2. Click OK to let the program retrieve the item components from the bill of materials of item LS-100.

FIGURE 3.3 THE BILL OF MATERIALS EXPLODED

3. On the menu bar, click Actions, Functions, and then click Release to release the order. NOTE: The order can also be released by clicking Release on the Action Pane.

Receiving the Items Receiving is the first stage in the inbound warehouse flow, and the released purchase order is a request to the warehouse personnel to handle the arrival of items. These requests can be viewed in the warehouse receipt list.

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Chapter 3: Receiving Orders In Microsoft Dynamics NAV 2009, a warehouse receipt can be created from two functional areas: •

Purchase: The receipt can be created through the released purchase order. To achieve this, in the Navigation Pane, click Home, Purchase Orders, Released. Open a released purchase order and click Actions, Functions, and then click Create Whse. Receipt.

•

Warehouse: The receipt document is created manually from the released purchase order. This can be done in two ways, either by getting the source document, or by using the source document filtering option.

To create a receipt manually from the Role Center Home page: 1. 2. 3. 4.

On the Activities part, click New Whse. Receipt. Press Enter to assign a receipt number to this document. In the Location Code field, select the White location. The Zone Code and the Bin Code fields are filled in by the program with the default information from the location card.

FIGURE 3.4 A NEW WAREHOUSE RECEIPT CREATED

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Warehouse Management in Microsoft Dynamics® NAV 2009 Now it is necessary to fill in the receipt with the lines from the released source document (the purchase order) containing the quantities that are not yet received. There are two ways to do this: •

Click Actions, Functions and then click Use Filters to Get Src. Docs. The Filters to Get Source Docs. - Inbound window appears, and it does not have any filters defined. Set up the relevant filter, then click Run, and the program will retrieve the lines from the entire released source document that meet the criteria and the program will also add the lines to the warehouse receipt.

•

Click Actions, Functions and then click Get Source Documents. The Inbound Source Documents window appears with a list of all released inbound documents. Select a document to have the program copy the information from it to the receipt lines.

NOTE: Alternatively, click the Get Source Documents and Use Filters to Get Src. Docs. buttons located on the Action Pane. In this scenario, the warehouse employee will use the Use Filters to Get Src. Docs. option to retrieve the released purchase order lines for vendor Walker. 5. Click Actions, Functions and then click Use Filters to Get Src. Docs. The Filters to Get Source Docs. - Inbound window appears. It is necessary to specify the filter for the source documents. When a filter is set up for its first usage, enter a code for it in the Code field, and then open the filter card to specify the parameters. To set up the filter:

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Chapter 3: Receiving Orders 6. In the Filters to Get Source Docs. - Inbound window, in the Code field, enter POWALK and, in the Description field, enter the description text as shown in the following illustration.

FIGURE 3.5 SETTING THE FILTER TO RETRIEVE THE LINES

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Warehouse Management in Microsoft Dynamics® NAV 2009 7. Click Modify. The Source Document Filter Card - Inbound window appears.

FIGURE 3.6 THE FILTER CARD FOR PURCHASE ORDERS FROM POWALK

8. On the General FastTab, select the relevant check boxes to define specific filters. Clear the Sales Return Orders and the Inbound Transfers check boxes, as shown above. 9. Expand the Purchase FastTab. In the Buy-from Vendor No. field, enter 62000, and in the Planned Receipt Date Filter field, enter 012510.

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Chapter 3: Receiving Orders 10. Click Run. The program retrieves all the released purchase document lines with a requested receipt date of January 25, 2010, and it copies the lines to the Warehouse Receipt window. 11. Delete the first two receipt lines so that the items for the purchase order just created are only received.

FIGURE 3.7 THE PURCHASE ORDER LINES ENTERED IN THE WAREHOUSE RECEIPT

12. Fill in the Vendor Shipment No. field on the General FastTab, and note that the Qty. to Receive fields on the lines are filled in automatically by the program. 13. Click Post Receipt on the Action Pane. Confirm the posting of the receipt. The program displays the following message:

FIGURE 3.8 INFORMATION MESSAGE

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Warehouse Management in Microsoft Dynamics® NAV 2009 14. Click OK to confirm. The program has now: •

Updated the relevant quantity fields on the lines of the source document, in this case the purchase order, and the posted receipt. The items are now part of inventory, available for sale but not yet available for picking.

•

Created a put-away activity, which is used to perform the next task in the receiving process - putting items away.

•

Created warehouse entries in Warehouse Register as well as item ledger entries in Item Register.

Putting the Items Away When the warehouse receipt is posted, the program creates a put-away document. A put-away document is an instruction to the warehouse personnel to move the received items from the receiving area to the storage area. In this process, the program is guided by the settings of the put-away template and by bin ranking suggesting where to put away the received items.

Demonstration: Put the Items Away The procedure for putting items away is as follows: 1. On the Activities part of the Home page, click Put-aways - All. 2. Browse to the put-away document just created and open it.

FIGURE 3.9 THE WAREHOUSE PUT-AWAY DOCUMENT

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Chapter 3: Receiving Orders The Warehouse Put-away window contains the data from the lines in the relevant posted warehouse receipt document. The information is presented through the Take and Place activity lines, which make up a put-away. The Take line indicates which zone and bin an item is taken from, while the Place line suggests to which zone and bin the item is placed. The put-away activity must now be handled and quantities registered. In this case, on the Place lines, the program suggests that the items be put away in the BULK zone. The line can be changed, if necessary: for example, another bin can be chosen within the given zone, or the items can be stored in a new location by changing the zone and finding a suitable bin. Register the put-away document by doing the following: 3. Click Register Put-away on the Action Pane. The program deletes the put-away lines and registers the information in the registered put-aways. At the same time, it deletes the lines in the initial receipt document. The items are now available for picking. If choosing to store the items in different places after put-away, on the Place line for the item in question, change the value of the Qty. to Handle field to a lower value. Then click the Actions icon (lightning bolt), and then click Functions, Split line. The program creates a new line below the original, with the remaining quantity to handle filled in and with the Zone Code and Bin Code fields empty. This means that the user is free to decide where to store the rest of the items. Furthermore, the program allows for storing the items in a different unit of measure than specified on the Warehouse FastTab on the SKU/item card. To view the alternative, click the Actions icon on the lines, and then click Functions, Change Unit of Measure. The following scenario illustrates the possibility of changing the item unit of measure when putting the item away.

Scenario: Change UOM When Putting the Items Away The company has decided to purchase one pallet of printing paper, mainly to be used for internal purposes. When the items are put away, they must be stored in boxes. 1. Create a purchase order for vendor 60000, Grassblue Ltd., ordering one pallet of item 80100 to be shipped to the White location, and release the order.

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Warehouse Management in Microsoft Dynamics® NAV 2009 2. On the Activities part of the Home page, click New Whse. Receipt. In the Location Code field, enter the White location. 3. Click Get Source Documents on the Action Pane, and then select the purchase order just created. Click OK.

FIGURE 3.10 THE WAREHOUSE RECEIPT LINE RETRIEVED FROM THE PURCHASE ORDER

4. On the Action Pane, click Post Receipt.

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Chapter 3: Receiving Orders 5. On the Activities part of the Home page, click Put-aways - All. Open the put-away just created. 6. Click the Place line.

FIGURE 3.11 WAREHOUSE PUT-AWAY DOCUMENT

7. Click the Actions icon on the lines, and then click Functions, Change Unit Of Measure. The Whse. Change Unit of Measure window appears.

FIGURE 3.12 CHANGING THE UNIT OF MEASURE FOR THE ITEM

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Warehouse Management in Microsoft Dynamics® NAV 2009 8. In the To Unit of Measure Code field, change the value from PALLET to BOX. The program will update the Quantity field value from 1 to 32 (this is the number of boxes on a pallet). 9. Click OK to confirm the change. The program will change the Qty. to Handle and the Unit of Measure Code fields on the warehouse put-away document accordingly.

FIGURE 3.13 THE ITEM UNIT OF MEASURE CHANGED

10. Click Register Put-away on the Action Pane. This completes the receiving process.

Cancelling the Receipt To cancel, or undo, the receipt of an item, use the undo receipt functionality. This functionality is used to undo a receipt that is already posted using the Warehouse Receipt window. NOTE: It is not possible to undo the receipt of the item(s) that are already put away. To undo the receipt, it is necessary first to delete the related put-away lines (even if they are not registered). The Undo Receipt function is available from the Posted Purchase Receipt window.

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Chapter 3: Receiving Orders Demonstration: Cancel the Receipt This demonstration illustrates the lifecycle of the warehouse receipt. 1. In the Navigation Pane, click Home, Purchase Orders. Browse to the order to create a warehouse receipt. Open the window for the purchase order. 2. Ensure the purchase order is released. Click Actions, Functions, Create Whse. Receipt. The warehouse receipt is created. 3. In the Navigation Pane, click Home, Warehouse Receipts. Browse to the receipt just created and open its window. 4. Verify that the value in the Qty. to Receive field in the warehouse receipt is equal to the value that was in the Qty. to Receive field in the purchase order. Post the warehouse receipt by clicking Post Receipt on the Action Pane. The warehouse put-away is automatically created because the White location, selected in the Location Code field in the warehouse receipt, is not set up to use a put-away worksheet. Now it is necessary to delete the put-away lines to undo the posted receipt. 5. On the Activities part of the Home page, click Put-aways - All. Browse to the last put-away and open its card. 6. Click Actions, Delete. Click Yes to confirm the deletion. NOTE: The put-away you have just deleted can be recreated from the posted warehouse receipt. To do that, on the Action Pane of the Posted Whse. Receipt window, click Create Put-away.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Now everything is ready for canceling the posted receipt. 7. From the Navigation Pane, click Posted Documents, Posted Purchase Receipts. 8. In the Posted Documents list, click Posted Purchase Receipt. Browse to the receipt that needs to be cancelled and open the window for it. In this example, it is the last receipt in the list.

FIGURE 3.14 THE POSTED PURCHASE RECEIPT WINDOW

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Chapter 3: Receiving Orders 9. To cancel a posted purchase receipt line, select the line, and click Actions, Functions, Undo Receipt. A message appears requiring the confirmation of cancelling the receipt line(s).

FIGURE 3.15 CONFIRMING THE INTENTION TO CANCEL THE RECEIPT

10. Click Yes to confirm the deletion. The program creates an additional line with a negative quantity in the posted receipt document.

FIGURE 3.16 THE POSTED RECEIPT CANCELLED

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Warehouse Management in Microsoft Dynamics® NAV 2009 As a result of cancelling the receipt, the program performs the following: •

The values in the Qty. to Receive and Quantity Received fields in the Purchase Order window are updated with the new quantities.

FIGURE 3.17 QUANTITIES UPDATED AS A RESULT OF CANCELLING THE RECEIPT

•

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A warehouse entry for the new negative line is created and posted.

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Chapter 3: Receiving Orders To view the changes, click Departments>Warehouse>History, and in Registers, click Warehouse Registers. Browse to the last register and click Related Information, Register, Warehouse Entries.

FIGURE 3.18 A WAREHOUSE ENTRY TO REGISTER CANCELLATION OF THE RECEIPT

NOTE: If the warehouse receipt is only partially posted, the cancelled quantity will be added to the value in the Qty. to Receive field on the warehouse receipt line.

NOTE: If the warehouse receipt line included cross-docking, the corresponding sales order lines will also be updated.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Lab 3.1 - Receiving and Putting Items Away In this lab you will practice receiving and putting the items away. Scenario A purchaser at Cronus creates a purchase order for 15 units of item LS-75 from vendor 30000. The warehouse manager requires five units be put away in the Staging Zone on bin W-06-0003 and the rest to be put away in the Bulk Zone in an available bin. The vendor must ship the order to the WHITE warehouse. Your task is to carry out all the required warehouse activities to make the items available for sale and picking.

Challenge Yourself! Create a purchase order which will turn into a put-away with a line split.

Need a Little Help? 1. 2. 3. 4.

Create a purchase order. Create and post a warehouse receipt. Create a warehouse put-away and split the line. Register a warehouse put-away.

Step by Step Create a purchase order 1. On the Activities part of the Home page, click New Purchase Order. 2. In the Buy-from Vendor No. field, enter 30000, in the Vendor Invoice No. field, enter 30000, in the Location Code field on the Shipping FastTab, select the WHITE location. 3. On the purchase line, in the Type field, select Item, in the No. field, select item LS-75, in the Quantity field, enter 15. Leave the value in the Direct Unit Cost Excl. VAT field as is (for test proposes). 4. Release the document by clicking Release on the Action Pane.

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Chapter 3: Receiving Orders Create and post a warehouse receipt 1. From the Purchase Order window, create a warehouse receipt by selecting the Actions, Functions, Create Whse. Receipt. 2. On the Warehouse Receipt window that appears, check the item values and post it by clicking Post Receipt. Confirm the posting of the receipt. The program has updated the quantity in the relevant field on the lines of the purchase order and created a put-away activity. Create a warehouse put-away and split the line 1. On the Activities part of the Home page, click Put-aways - All. Open the put-away just created. Select the line with Place as the action type, and in the Qty. to Handle field, change the value from 15 to 10. By default, the Activity Type, Zone Code and Bin Code fields on the warehouse put-away lines are invisible. To make them visible, right-click the field caption above the lines, select Choose Columns and select whichever fields to make visible. 2. Create a new line with the action type of Place by splitting the line. To do this, on the lines, click Actions, Functions, Split Line. In the Zone Code field, select STAGE, and in the Bin Code field, select W-06-0003. Register a warehouse put-away On the Action Pane, click Register Put-away to post the Warehouse Put-away document. Confirm the posting of the put-away.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Lab 3.2 - Cancelling the Receipt In this lab you will practice cancelling receipts. Scenario A purchaser at Cronus creates a purchase order for 10 units of item LS-120 from vendor 40000 with Vendor Invoice # 40000. The vendor must ship the order to the WHITE warehouse. After posting the warehouse receipt the warehouse manager receives information that pertains to when all the required units are to be delivered to the Green location. Your task is to carry out all the required warehouse activities to make the items available for sale and picking.

Challenge Yourself! You must create a purchase order, after posting it delete a put-away, and cancel the receipt.

Need a Little Help? 1. 2. 3. 4.

Create a purchase order. Create and post a warehouse receipt. Delete a warehouse put-away. Cancel the receipt.

Step by Step Create a purchase order 1. On the Activities part of the Home page, click New Purchase Order. 2. In the Buy-from Vendor No. field, enter 40000, in the Vendor Invoice No. field, enter 40000, in the Location Code field on the Shipping FastTab, select the WHITE location. 3. On the purchase line, in the Type field, select Item, in the No. field, select item LS-120, in the Quantity field, enter 10. Leave the value in the Direct Unit Cost field as is (for test proposes). On the Action Pane, click Release to release the document.

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Chapter 3: Receiving Orders Create and post a warehouse receipt 1. Form the Purchase Order window, create a warehouse receipt by clicking Actions, Functions, Create Whse. Receipt. 2. On the Warehouse Receipt window that appears, check the value and post it by clicking Post Receipt. Confirm the posting of the receipt. The program has updated the quantity in the relevant field on the lines of the purchase document and created a put-away activity. Delete a warehouse put-away 1. On the Activities part of the Home page, click Put-aways - All. Open the put-away just created. 2. Click Actions, Delete to delete the warehouse put-away document. Cancelling the receipt 1. In the Navigation Pane, click Posted Documents, Posted Purchase Receipts. Open the posted purchase receipt just created. 2. On the lines, click Actions, Functions, Undo Receipt to cancel any operations with an item. An additional line with a negative quantity is inserted in the posted receipts. The confirmation message appears. Click OK to confirm cancelling the receipt.

Cross-Docking Cross-docking is a means of saving time and effort by directing items on orders awaiting shipment from the receive zone directly to the ship zone without placing them into storage. The program can be instructed to cross-dock in two places: location card and item card. To specify cross-docking for a location: 1. In the Navigation Pane, click Reference Data, Locations.

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Warehouse Management in Microsoft Dynamics® NAV 2009 2. Browse to the White location and open its card. 3. Expand the Warehouse FastTab.

FIGURE 3.19 SETTING UP THE LOCATION FOR CROSS-DOCKING

4. Select the Use Cross-Docking check box to indicate that this location is set up to use cross-docking. 5. Fill in the Cross-Dock Due Date Calc. field. The time period in this field indicates how far ahead from the work date the program will look for cross-dock opportunities at this location. On the item card, indicate that an individual item needs to be cross-docked: 1. To open the item card, click Reference Data, Items.

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Chapter 3: Receiving Orders 2. Open the card for item LS-81. Expand the Warehouse FastTab. 3. Select the Use Cross-Docking check box to indicate that this item can be used for cross-docking.

FIGURE 3.20 THE ITEM SET UP FOR CROSS-DOCKING

The following scenario illustrates cross-docking in detail.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Scenario: Cross-Dock the Item Customer 60000, Blanemark Hifi Shop, needs 72 pieces of item no. LS-81. Sales order no. 2021 and warehouse receipt no. RE000004 is created. Your task is to receive the items and cross-dock them to the shipping zone for fast delivery to the customer. 1. In the Navigation Pane, click Home, Warehouse Receipts. Open warehouse receipt no. RE000004.

FIGURE 3.21 PREPARING FOR CROSS-DOCKING

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Chapter 3: Receiving Orders 2. On the Action pane, click Calculate Cross-Dock. The program checks for released outbound orders in need of the items on the receipt document, calculates the quantity to cross-dock, and fills in the Qty. To Cross-Dock field.

FIGURE 3.22 THE SUGGESTED QUANTITY TO CROSS-DOCK

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Warehouse Management in Microsoft Dynamics® NAV 2009 3. Click the AssistButton next to the Qty. to Cross-Dock field, and the Cross-Dock Opportunities window appears.

FIGURE 3.23 THE CROSS-DOCK OPPORTUNITIES WINDOW

The Cross-Dock Opportunities window contains information about the source document from which items are to be cross-docked and the quantity needed to fulfill the order. 4. Click Actions, Functions and then click Autofill Qty. to cross-dock to have the program update the quantity to cross-dock on the line. 5. Click OK to confirm.

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Chapter 3: Receiving Orders 6. In the Warehouse Receipt window, click Post Receipt on the Action Pane. The receipt lines are deleted and a put-away is created. 7. On the Activities part of the Home page, click Put-aways - All. Browse to the put-away just created.

FIGURE 3.24 PUT-AWAY WITH CROSS-DOCKED ITEMS

8. On the Action Pane, click Register Put-away. NOTE: If the value in the Qty. to Cross-Dock field in the warehouse receipt is less than the total quantity to be received, two lines with the Place action is created in the put-away – one for the quantity to place on the cross-dock bin and one for the quantity to place into the calculated put-away bin (in the BULK or PICK zone for the White location ).

NOTE: When several outbound source documents are retrieved in the CrossDock Opportunities window, you can assign a certain quantity on each line. To save such a distribution after a pick is created, use the reservation function by clicking Actions, Functions, Reserve from the Cross-Dock Opportunities window. For information on the shipping process of cross-docked items, refer to the chapter on Shipping.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Summary Receiving items involves the following procedures: 1. Creating and releasing a purchase order. 2. Creating and posting a warehouse receipt. 3. Creating and registering a put-away. Only after the last procedure is completed, are the items received available for picking. To save time on handling items that must be shipped from the receive zone directly to the ship zone, use the cross-docking functionality.

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Chapter 3: Receiving Orders

Test Your Knowledge 1. What are the two options to retrieve the lines of a released purchase return order from within a warehouse receipt?

2. True or False: As soon as a warehouse receipt is posted, the items are available for picking.

3. How is the unit of measure changed on the Place line of a put-away document?

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Warehouse Management in Microsoft Dynamics® NAV 2009 4. What can be done to ensure that it is possible to undo a posted receipt?

5. Complete the following sentence: Cross-docked items are directed from the _______ zone to the _______ zone without placing them into storage.

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Chapter 3: Receiving Orders

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

2.

3.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Solutions Test Your Knowledge 1. What are the two options to retrieve the lines of a released purchase return order from within a warehouse receipt? MODEL ANSWER: From a warehouse receipt, use the Get Source Documents function or the filter function. Use Filters to Get Src. Docs to retrieve source document lines. 2. True or False: As soon as a warehouse receipt is posted, the items are available for picking. MODEL ANSWER: False. As soon the receipt is posted, the items become part of inventory available for sale but are not yet ready for picking. 3. How is the unit of measure changed on the Place line of a put-away document? MODEL ANSWER: The Change Unit of Measure function is called on the put-away card. 4. What can be done to ensure that it is possible to undo a posted receipt? MODEL ANSWER: To undo the receipt, it is necessary to delete the related put-away lines first. 5. Complete the following sentence: Cross-docked items are directed from the _______ zone to the _______ zone without placing them into storage. MODEL ANSWER: Cross-docked items are directed from the receive zone to the ship zone without placing them into storage.

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Chapter 4: Internal Warehouse Processes

CHAPTER 4: INTERNAL WAREHOUSE PROCESSES Objectives The objectives are: •

Move items between different zones and bins.

•

Replenish bins.

•

Block item movements.

•

Perform internal picks and put-aways.

•

Perform automatic flushing.

•

Adjust items and change storage information by using warehouse journals.

•

Post quantity adjustments for bins.

•

Set up Warehouse physical inventory counting periods.

•

Count physical inventory.

•

Perform cycle counting.

•

Compress warehouse entries.

•

Delete warehouse documents.

Introduction Warehouse Management Systems provides the opportunity to move items within the warehouse to optimize the use of space. Movements, internal picks and putaways are used for that purpose. Similarly to the Inventory module, where inventory and item ledger entries are created, changed, and counted, the Warehouse Management Systems also work with a set of journals: warehouse item journal, warehouse reclassification journal, and warehouse physical inventory journal. All these aspects are covered in this chapter.

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Item Movements Item movements are performed at a bin level. Warehouse movement can be carried out manually, if, for instance, the company wants to reallocate items elsewhere within the warehouse. It can also be performed automatically by the program as a result of bin replenishment. The item movement from one bin to another within a warehouse location can be controlled by using the movement worksheet. On the movement worksheet lines, specify the items to move, along with the information on the current zone and bin used and the new zone and bin to which the items should be moved.

Scenario: Move Items The warehouse manager decides to move 10 units of Loudspeaker LS-75 from the bulk zone to the pick zone for quicker handling of these items to fulfill the received shipping orders. 1. On the Activities part of the Role Center Home page, click Edit Movement Worksheet. Fill in the line to move 10 units of item LS-75 from the BULK zone and bin W-05-0001 to the PICK zone and bin W-04-0014.

FIGURE 4.1 PLANNING THE ITEM MOVEMENT IN THE MOVEMENT WORKSHEET WINDOW

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Chapter 4: Internal Warehouse Processes A movement must now be created from the worksheet as a request for warehouse employees to get items from their present location to their new location. 2. Fill in the Qty. to Handle field with the quantity for the items to be moved. 3. Click Actions, Functions, and then click Create Movement. The request form for the Whse.-Source - Create Document batch job appears which is used to create warehouse instructions for the lines in the worksheet. This is also used to specify the sorting method within the activity lines, set a breakbulk filter, choose whether to set the quantity to handle value manually, and whether to print the movement.

FIGURE 4.2 THE WHSE.-SOURCE - CREATE DOCUMENT BATCH JOB

NOTE: A new movement can be created by clicking Create Movement on the Action Pane.

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Warehouse Management in Microsoft Dynamics® NAV 2009 4. Click OK to create the movement. 5. On the Activities part of the Home page, click Movements - All. Open the movement just created.

FIGURE 4.3 INSTRUCTION OF ITEMS MOVEMENT

This window contains precise instructions for warehouse employees about movements of items from one bin to another. At this stage, it is still possible to change the zone and bin specified on the Place line, and to split the lines. The split line functionality can be useful if the items are being taken from or are being placed in more than one bin. When the items are physically moved, the warehouse employee must register the lines to complete the movement. 6. Click Register Movement on the Action Pane. The movement is registered, and the lines are deleted from the warehouse movement document. NOTE: When moving items from the bulk zone, where they are typically stored, to the pick zone, for example, it may be preferable to store them in pieces instead of pallets. The procedure of changing the units of measure is the same as when putting items away.

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Chapter 4: Internal Warehouse Processes Bin Replenishment To achieve maximum warehouse space utilization, the company needs a tool to automatically detect unused space on bins, and calculate the quantity to be filled in. At the same time, such a tool must suggest where to take these items and update the bin state. For these purposes, WMS offers the Calculate Bin Replenishment tool. Through the replenishment process, the program searches for a bin content that needs to be replenished, whenever the bin has reached minimum quantity. The process of replenishment does not take fixed and unblocked bins into account and must be activated manually by a warehouse employee. The program tries to find bin content of the same item and item variant within the location. The bin ranking determines from where to take the items, always searching for lower ranking bins to take from. If several bins have same bin ranking and bin contents defined for the item, the calculation is made to fill fixed bins first. The program considers those fixed bins that are below minimum quantity, and the bins are replenished till the maximum quantity is reached. For this purpose, create a warehouse movement document containing the replenishment lines from the requested location, zone, or bin according to the filter options used. To make the program suggest bin replenishment, use the following procedure:

Demonstration: Replenish Pick Bins 1. In the Navigation Pane, click Home, Movement Worksheets. In the Movement Worksheet window, on the Action Pane, click Calculate Bin Replenishment. The Calculate Bin Replenishment request window appears.

FIGURE 4.4 CALCULATING BIN REPLENISHMENT

2. In the Item No. field, select LS-2, and click OK.

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Warehouse Management in Microsoft Dynamics® NAV 2009 The program generates this suggested replenishment:

FIGURE 4.5 SUGGESTED REPLENISHMENT MOVEMENT

To find out why the program proposes to do as shown, proceed as follows: 3. Click the AssistButton next to the To Bin Code field. In the Bin List window, select the bin suggested by the program, W-03-0003. 4. On the menu bar, click Related Information, Item, Bin Contents. The Bin Contents List window appears:

FIGURE 4.6 BIN CONTENT LIST

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Chapter 4: Internal Warehouse Processes The bin content line shows that this bin is a fixed bin for item LS-2 and that the current quantity is below minimum quantity. The movement worksheet shows that the quantity suggested to move corresponds exactly to the maximum quantity set for this bin. 5. To complete the replenishment, go back to the Movement Worksheet window, and click Create Movement on the Action Pane. Microsoft Dynamics NAV 2009 creates a document with movement suggestions. To accept what the program proposes, the movement must be registered. 6. On the Activities part of the Home page, click Movements - All. Open the movement just created.

FIGURE 4.7 WAREHOUSE MOVEMENT IS READY FOR REGISTERING

7. Click Register Movement on the Action Pane.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Blocking Warehouse Movements Blocking warehouse movements is carried out at a bin level. The warehouse personnel can block either bin or bin contents, so that movement from specific bins does not occur while the rest of the similar items elsewhere are moved. Blocking movements is a kind of operational quarantine functionality where the warehouse personnel can prevent the program from picking or moving items. Items allocation is invisible for sales and purchase personnel. That is why, if an item is damaged and it is stored at a bin that is blocked for movement, the adjustment procedure must be performed to eliminate the mismatch between calculation availability on item ledger entries and the quantity available at the warehouse. To block bins: 1. In the Navigation Pane, click Reference Data, Locations. 2. Browse to the White location, click Related Information, Location, and then click Zones. 3. Select the PICK zone, click Related Information, Zone, then click Bins, and select bin W-01-0001. 4. For bin W-01-0001, select the bin blocking method in the Block Movement field. (The field is not visible by default, so use the Choose Column function to add it.)

FIGURE 4.8 SELECTING THE BLOCK MOVEMENT OPTION FOR BINS

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Chapter 4: Internal Warehouse Processes Block Movement Option

Result

Inbound

If this option is selected, then no items can be moved into the bin.

Outbound

If this option is selected, no items can be moved out of the bin. This will have an impact on the pick availability of the items stored in the blocked bins, since these items will be available for sale but not for picking.

All

If this option is selected, all movements into/from the bin will be blocked.

Alternatively, a bin can be blocked in the Bin Content window: 1. In the Navigation Pane, click Departments>Warehouse>Planning & Execution, and then in Tasks, click Bin Contents. 2. In the Location Filter field, select the White location and in the Zone Filter field, select the PICK zone. The program will list the bin contents according to the set filters. 3. For the relevant bin(s), set the blocking option in the Block Movement field.

FIGURE 4.9 SELECTING THE BLOCK MOVEMENT OPTION FOR BINS

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Lab 4.1 - Movement In this lab, you will practice working with the movement functionality. Scenario The warehouse manager decides to move five pallets of item LS-75 from the STAGE zone on bin W-06-0003 to the PICK zone for quicker handling of these items to fulfill the received shipping orders.

Challenge Yourself! Create a movement.

Need a Little Help? 1. Create warehouse movements using the movement worksheet. 2. Register the movement.

Step by Step Create warehouse movements using the movement worksheet 1. On the Activities part of the Role Center Home page, click Edit Movement Worksheet. 2. Fill in the fields as follows: In the Item No. field, select LS-75. In the From Zone Code field, select STAGE. In the From Bin Code, select W-06-0003. In the To Zone Code field, select PICK. In the To Bin Code field, select W-01-0001. In the Quantity field, enter 5. In the Unit of Measure Code fields, select PALLET. 3. Create a movement by clicking Create Movement. Register the movement 1. On the Activities part of the Home page, click Movements - All. 2. Open the movement just created. 3. Register it by clicking Register.

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Chapter 4: Internal Warehouse Processes

Internal Pick and Put-away An internal pick or put-away can be used when items must be taken out of or returned to inventory without a source document such as a sales order, purchase order, or transfer. An example of this is a request to the warehouse from the Sales Department for items to be used in a customer demonstration. This is handled in the Internal Picks functionality available from the Warehouse menu.

Scenario: Pick Items A salesperson from the Cronus Company is about to demonstrate the new edition of item LS-2 and, therefore, will require two pieces of this item for a short loan. To implement this scenario, do the following: 1. In the Navigation Pane, click the Worksheet button, and then click Internal Picks. 2. Click New to create a new internal pick. Select the White location in the Location Code field, and in the To Zone Code field, select INTERNAL. Select an empty bin to place the items in.

FIGURE 4.10 CREATING AN INTERNAL PICK

3. Create a line for two boxes of item LS-2 and release the document, by clicking Actions, Functions, Release. 4. Create a pick by clicking Actions, Functions, Create Pick.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Now, register the pick just created to make the items become available for sale. 5. On the Activities part of the Home page, click Picks - All. Open the pick just created.

FIGURE 4.11 A PICK WITHOUT SOURCE DOCUMENTS

NOTE: There is no Source Document information since this pick is created directly from the Warehouse Internal Picks window, and there is no need to specify the source document. 6. On the Action Pane, click Register Pick. The two boxes of item LS-2 are still part of inventory but are unavailable for picking. The items can be handed to the sales personnel for demonstration.

Scenario: Register Items The salesperson had success in his/her demonstration and has returned the items to the warehouse. The task of the warehouse personnel is to register the returned items and make them available for picking. To fulfill this task, it is necessary to perform the following actions: 1. In the Navigation Pane, click Worksheet, Internal Put-aways. 2. On the Action Pane, click New to create a new internal put-away. In the Location Code field, select the White location. In the From Zone Code field, select a zone from which the items must be taken and then put away.

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Chapter 4: Internal Warehouse Processes 3. Click Actions, Functions, Get Bin Content. The Whse. Get Bin Content window appears.

FIGURE 4.12 GETTING BIN CONTENT

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Warehouse Management in Microsoft Dynamics® NAV 2009 4. Set the filters taking into account what is placed on the bin, and click OK to confirm. The program copies the bin content to the internal put-away.

FIGURE 4.13 THE BIN CONTENT COPIED TO THE INTERNAL PUT-AWAY

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Chapter 4: Internal Warehouse Processes 5. Click Actions, Functions, Create Put-away. The put-away document is created. 6. On the Activities part of the Home page, click Put-aways - All. Open the put-away just created.

FIGURE 4.14 PUT-AWAY CREATED

Note that the put-away contains no source document information because it is created directly from the Whse. Internal Put-aways window. 7. Click Register Put-away on the Action Pane. The items are now available to pick.

Integration with Manufacturing WMS is integrated with Manufacturing to allow for registering item movements in the production workflow. The integration is provided through picks and putaways, as well as through the inbound and outbound production bins, and the open shop floor bin - these are defined on the Bins FastTabs of the location card. The open shop floor bin contains all items that do not require picks or put-aways but are included on the production BOM. The replenishment of the open shop floor bin is a manual process that is managed by movement or internal picks and put-aways. The inbound production bin receives all items picked for production, and the outbound production bin receives all items “output” by the production (through the output journal).

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Warehouse Management in Microsoft Dynamics® NAV 2009 The following scenario illustrates registering the item movements in the warehouse throughout the production workflow. This is attained through working with the consumption journal, which pertains to Manufacturing, and using the inbound production bin, where the components are stored, from the WMS side. We start from creating a sales order, and then the related production order.

Scenario: Work with Consumption Journals Customer 60000, Blanemark Hifi Shop, orders 12 units of item LS-100. To deliver this product to the customer, the parts of this product are to be assembled at the company production assembly line. 1. On the Home page of the Role Center, click Sales Orders. Create a new order for 12 units of item LS-100 for customer 60000, and release the order. Since the items are to be assembled, use the following process to create the production order for the items: 2. In the Sales Order window, click Related Information, Order, click Planning. The Sales Order Planning window appears. In this window, click Actions, Functions, and then click Create Prod. Order. Select the Released production order status.

FIGURE 4.15 RELEASING A PRODUCTION ORDER

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Chapter 4: Internal Warehouse Processes 3. Click Yes to create the released production order. 4. In the Navigation Pane, click Home, Released Production Orders. Open the order just created.

FIGURE 4.16 THE RELEASED PRODUCTION ORDER

Now it is necessary to make the warehouse personnel aware that they can pick the items needed for making the assembly. The components must be picked from the storage zone defined for picking to the inbound production bin. For this purpose, the warehouse pick is used. 5. Click Actions, Functions and then click Create Whse. Pick to create the pick activity.

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Warehouse Management in Microsoft Dynamics® NAV 2009 NOTE: If at this point, the program displays a message stating that there is nothing to handle, this means that it cannot find any items available in bins of the pick type (that is, bins assigned the bin type with the Pick check box selected). However, it is possible that there may be available items in other bins. This can be handled in two ways: Move the items to the bin(s) that the program can pick from by creating a movement. Select the Always Create Pick Line check box on the Bin Policies FastTab of the relevant location card. This ensures that the program will create a pick line even if it cannot find an appropriate zone and bin from which to pick the item - then you can manually update the zone and bin accordingly. 6. On the Activities part of the Home page, click Picks - All. Open the pick just created.

FIGURE 4.17 THE WAREHOUSE PICK

NOTE: The program has created lines with the Zone Code and Bin Code fields filled in. However, the program has left these fields on the Take lines empty. The reason for this is that the program failed to find any available stock to pick from. The user has to make a decision on where to pick the items from by filling in the Zone Code and Bin Code fields on the Take lines. If in doubt of where the items are stored, click the AssistButton next to the Bin Code field on the Take line. The Bin Contents List window shows where the items are to be found and from there select a bin to pick from.

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Chapter 4: Internal Warehouse Processes In this case, the items are stored in the BULK zone. The PUTAWAY bin type assigned to the bins in the zone is not set up for picking. Therefore, the program is not able to suggest that these items be picked from these bins. 7. Fill in the Bin Code field on the Take lines by clicking the AssistButton next to the Bin Code field and selecting the bin(s) to take from as shown in the following illustration.

FIGURE 4.18 ZONE CODES SPECIFIED

8. Click Register Pick on the Action Pane to register the pick. The items are now placed in the inbound production bin as defined on the White location card. The items are regarded as 'consumed', that is ready to be taken from the production bin by the production personnel. Now that the items, which are components for the finished goods, are available for manufacturing, it is necessary to calculate consumption of the items, and the finished items are to be returned to the warehouse.

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Warehouse Management in Microsoft Dynamics® NAV 2009 9. In the Navigation Pane, click Departments>Manufacturing>Execution, and then in Tasks, click Consumption Journals. In the Consumption Journal window, click Actions, Functions, and then click Calc. Consumption. 10. In the Calc. Consumption window that appears, enter the production order number.

FIGURE 4.19 CALCULATING CONSUMPTION

11. Click OK to confirm.

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Chapter 4: Internal Warehouse Processes The program fills in the lines in the consumption journal with the items which refer to document number 101004.

FIGURE 4.20 CONSUMPTION JOURNAL

12. On the Actions Pane, click Post to post the consumption journal lines. It is necessary now to move the finished items to the outbound production bin at the warehouse. 13. From the Manufacturing menu, click Execution, and then in Tasks, click Output Journals. In the Output Journal window, click the AssistButton next to the Prod. Order No. field, and select the production order. 14. Click Actions, Functions, Explode Routing. The fields in the output journal are updated. Click Post on the Action Pane. The items have been moved to the outbound production bin in the warehouse, and they now need to be moved for storage in the warehouse to be available for selling. For this purpose, use an internal put-away. 15. In the Navigation Pane, click Worksheet, Internal Put-aways. NOTE: An alternative way to move the items is to use the movement worksheet based on a template that takes items from the outbound production bin.

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Warehouse Management in Microsoft Dynamics® NAV 2009 16. Click New to create a new internal put-away, and in the Location Code field, select the White location. 17. Click Actions, Functions, and click Get Bin Content. The Whse. Get Bin Content window appears. In the Zone Code field, select Production, and in the Bin Code field, select W-07-0003. This is the bin defined as the outbound production bin on the card for the White location.

FIGURE 4.21 GETTING BIN CONTENT

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Chapter 4: Internal Warehouse Processes 18. Click OK, and the lines in the internal put-away are filled out.

FIGURE 4.22 PUT-AWAY LINES FILLED OUT

By creating an internal put-away you are making a draft put-away. To transfer this draft into a put-away you will be able to work with later, you must use the Create Put-away function available from the Whse. Internal Put-away window.

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Warehouse Management in Microsoft Dynamics® NAV 2009 19. Click Actions, Functions and then click Create Put-away. The new put-away is created and appears in the put-away list. 20. On the Activities part of the Home page, click Put-aways - All. Browse to the put-away just created and open it.

FIGURE 4.23 A WAREHOUSE PUT-AWAY WITH LINES

The put-away must be registered to make the items available for picking. 21. Click Register Put-away on the Action Pane. The items are now in stock and available for picking as finished items.

Automatic Flushing After the production order is released or finished, the flushing of materials is done either automatically or manually. The term "flushing" is understood as the: •

Principle for reporting materials used.

•

Production order quantity completed.

•

Time reported.

When working with WMS, only three of five possible options for defining an item's flushing method are used:

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•

Manual

•

Pick + Forward

•

Pick + Backward

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Chapter 4: Internal Warehouse Processes When any of these flushing methods is defined for the item, the program will ensure that the item is picked in the warehouse before automatically flushing the item, either forwards with a routing link code or backwards. NOTE: Routing link codes are used to link a component defined on an item's bill of material (BOM) to an operation on an item's routing. This means that users can specify at which step of a process (operation) inventory must be reduced.

NOTE: The Pick + Forward and Pick + Backward settings only work for a location set up for using WMS. The options can be defined in two places in the program: on the Replenishment FastTab of the item card and in the Prod. Order Components window.

FIGURE 4.24 FLUSHING METHOD OPTIONS ON THE ITEM CARD

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Warehouse Management in Microsoft Dynamics® NAV 2009

FIGURE 4.25 FLUSHING METHOD OPTIONS IN THE PROD. ORDER COMPONENTS WINDOW

These settings are considered by the program when a pick is created from the production order. The scenario below presents an example of how automatic flushing can be used in WMS.

Scenario: Use Automatic Flushing In the CRONUS Company, the White location that stores items for production is set up for using WMS. A production manager at the company received a production order for 15 pieces of item LS-100. Some of the items on the component list must be manually flushed, while others can be simply picked and automatically flushed backward. The items that can be automatically flushed have a flushing method of Pick + Backward. The following steps describe in detail the actions that the user takes and how the program reacts: 1. The production manager releases the order. The program subtracts the inventory from the open shop floor bin for any items with the flushing method Forward that do not have a routing link code.

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Chapter 4: Internal Warehouse Processes 2. The production manager creates a pick from the production order. In the Production Order window, the manager clicks Functions, Warehouse, Create Pick. The program creates a warehouse pick for items with flushing methods Manual, Pick + Backward, and Pick + Forward (with a routing link code). These items will be placed in the inbound production bin. 3. The warehouse manager assigns the pick to a warehouse. 4. The warehouse employee picks the items from the appropriate bins and places them in the inbound production bin. 5. The warehouse employee registers the pick. The program subtracts the appropriate quantities from the pick bins and adds these appropriate quantities to the inbound production bin. The program also updates the Qty. Picked field on the component list for all picked items. 6. The production employee informs the production manager that the items are finished. 7. The production manager uses the consumption journal to post the consumption for the items with the Manual flushing method and for the items having the Forward flushing method with a routing link code and Pick + Forward with a routing link code. 8. The production manager posts the output from the production order and finishes the released production order. The program subtracts the quantities for the components with the Backward flushing method from the open shop floor bin and with the Pick + Backward flushing method from the inbound production order bin.

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Lab 4.2 - Use Internal Pick This lab is a continuation of the previous one - now you will practice in working with an internal put-away and changing the unit of measure. Scenario The warehouse manager decides to change the unit of measure for one pallet of this item and place it to bin W-01-0001 using the internal put-away functionality.

Challenge Yourself! 1. Create an internal put-away. 2. Change the unit f measure for the items.

Need a Little Help? 1. Create an internal put-away. 2. Change the unit of measure in the warehouse put-away and register it.

Step by Step Create an internal put-away 1. In the Navigation Pane, click Worksheet, Internal Put-aways. 2. Click New to create a new put-away. In the Location Code field, select White; in the From Zone Code, select PICK; in the From Bin Code field, select W-01-0001. 3. Click Actions, Functions, then click Get Bin Content to retrieve a line for created document. In the Whse. Get Bin Content window, fill in the fields as follows: In the From Zone Code field, select PICK In the From Bin Code field, select W-01-0001 In the Item No. field select LS-75 Click OK. 4. In the Quantity field, enter 1 and then click Actions, Functions, Create Put-away. Change the unit of measure in the warehouse put-away and register it 1. On the Activities part of the Home page, click Put-aways - All. Open the put-away just created. 2. Select the line with the Place action type, and on the lines, click Actions, Functions, Change Unit of Measure. On the Whse. Change Unit of Measure window, in the Unit of Measure Code field of the To section change the value to PCS and click OK.

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Chapter 4: Internal Warehouse Processes 3. In the From Zone Code field, select PICK. In the From Bin Code field, select W-01-0001. 4. On the Action Pane, click Register Put-away.

Journals Warehouse Management Systems provides special journals to handle processes occurring inside the warehouse. When using WMS, it is necessary to use the warehouse item journal, warehouse physical inventory journal, and warehouse reclassification journal. NOTE: The corresponding journals on the Inventory menu will not take zones and bins into consideration if trying to perform operations within these journals.

Warehouse Item Journals The Whse. Item Journal window is aimed at making an immediate adjustment to the quantity of an item in a particular bin or bins. For instance, there may be some items in a bin that are not registered in the program, or it may not be possible to pick the quantity needed because there are fewer items in a bin than is calculated by the program. When the adjustment is registered, the program updates the bin quantity (to correspond to the actual quantity in the bin) and creates a balancing quantity in the adjustment bin for the quantity that is registered from the journal line. In the Whse. Item Journal window, the Item No. and Bin Code fields must be filled in, and the difference in the quantity specified as, either positive (no "+" sign necessary) or negative (use a hyphen as the minus sign) in the Quantity field.

Scenario: Use Warehouse Item Journals During warehouse activities, one piece of item LS-75 is damaged while moving and it must be removed from stock. The incident happened in the PICK zone and in bin W-01-0001. Do the following to fulfill the task: 1. In the Navigation Pane, click the Journals button, and then click Whse. Item Journals.

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Warehouse Management in Microsoft Dynamics® NAV 2009 2. Enter the information from the scenario into the Whse. Item Journal window. Remember that the quantity must be specified as a negative because the item will be removed from stock.

FIGURE 4.26 WAREHOUSE ITEM JOURNAL

3. On the Actions Pane, click Register. Looking at the warehouse registers, you can see that the item has been removed from its original bin and placed in the adjustment bin. 4. In the Navigation Pane, click Departments>Warehouse>History, Warehouse Registers to open the warehouse registers. 5. Select the last entry in the list of registers, click Related Information, Register, and then click Warehouse Entries.

FIGURE 4.27 WAREHOUSE POSITIVE AND NEGATIVE ENTRIES

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Chapter 4: Internal Warehouse Processes The program has created two entries. The first is the negative adjustment, to reflect removing of the item from the original bin. The second is the positive adjustment, to reflect placing of the item in the adjustment bin. The adjustment bin is a virtual bin, defined on the Bins FastTab of the location card. The content of the adjustment bin can be viewed if you run the Whse. Adjustment Bin report. You can open it by clicking Departments>Warehouse>Goods Handling Multiple Orders, and in the Reports under Reports and Analysis, click Whse. Adjustment Bin. Though the item is now removed from the warehouse ledger, it is still registered in the item inventory ledger. Step 6 below demonstrates how to also remove the item from the item inventory ledger. When items are damaged, which is the case in our scenario, you should go directly to step 6. But if the some item quantity is missing, this difference should be registered with the warehouse item journal. Alternatively, you can wait until the lost items are found in some other place and the registration will empty the adjustment bin. The content of the adjustment bin can be viewed at the Whse. Adjustment Bin report. You can open by clicking Departments>Warehouse>Goods Handling Multiple Orders>Reports and Analysis. To remove the item from inventory: 6. In the Navigation Pane, click Journals, Item Journals. 7. Click Actions, Functions, Calculate Whse. Adjustment to fill the item journal lines with the adjustments to the warehouse adjustment bin. 8. Post the journal lines by clicking Post. The corresponding adjustments to the inventory are made

Reclassification Journals In WMS, the warehouse reclassification journal is used to perform changes after the goods are moved physically. This situation may occur if the workers move items from one place to another in the warehouse and later on inform the manager of where the items moved to. The existing item journal can be used to adjust inventory on the item ledger in accordance with an adjustment that is made to the item quantity in a warehouse bin. To create a link between the inventory and the warehouse, a default adjustment bin must be defined for each location.

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Warehouse Management in Microsoft Dynamics® NAV 2009 This default adjustment bin is used to register items in the warehouse when posting an increase for the inventory. However, if a decrease is posted, the quantity on the default bin is also decreased. In both cases item ledger entries and warehouse entries are created. This bin is not included in the availability calculation. To adjust the bin content, enter the item number, zone code, bin code and quantity in the warehouse item journal that needs to be adjusted. If a positive quantity is entered and the line is posted, the inventory stored in the bin will increase and the quantity of the default adjustment bin will decrease by the same amount. If a negative quantity is entered and the line is posted, the inventory stored in the bin is decreased and the quantity of the default adjustment bin is increased.

Demonstration: Use the Reclassification Journal Use the following steps to register physical movement of the items using the Whse. Reclassification Journal window: 1. Click the Journals button, then click Whse. Reclass. Journals. 2. In the Item No. field, select item LS-S15. In the Quantity field, enter 12. In the From Zone Code field, select the PICK zone. In the From Bin Code field, select W-04-0015.

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Chapter 4: Internal Warehouse Processes In the To Zone Code field, select the PICK zone. In the To Bin Code field, enter W-02-0003.

FIGURE 4.28 WAREHOUSE RECLASSIFICATION JOURNAL

3. On the Action Pane, click Register to register the journal lines. The program has made a movement between two bins within the warehouse, without using the movement worksheet. This information is to be found in the warehouse entries: 4. In the Navigation Pane, click Departments>Warehouse>History, Warehouse Registers to open the warehouse registers.

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Warehouse Management in Microsoft Dynamics® NAV 2009 5. Select the last entry in the list of registers, click Related Information, Register, and then click Warehouse Entries. The program opens the Warehouse Entries window.

FIGURE 4.29 MOVEMENT REGISTERED IN THE WAREHOUSE ENTRIES

This window shows that a movement is performed in the program due to warehouse reclassification.

Posting Quantity Adjustment for Bins If you use bins at a location, you will need to occasionally adjust the quantity in a bin, when the quantity recorded in the program is inaccurate because of a physical gain or loss of an item. This can be done through the warehouse item journal. Unlike posting adjustments in the inventory item journal, using the warehouse item journal gives you an additional level of adjustment that makes your quantity records even more precise at all times. You register any observed differences in bin quantity as they occur in the warehouse item journal. To ensure that the item ledger always contains the same number of items as the warehouse, you regularly post the adjustments registered in the adjustment bin to the item ledger. Because the White location is set up for using directed put-away and pick, you will use the warehouse item journal to register the quantity adjustment in the bin. When you register these differences, the positive and negative adjustment quantities are registered in the warehouse adjustment bin. The quantities are not automatically posted to the item ledger. The entries in the adjustment bin originate from the warehouse item journal, the warehouse physical inventory journal, the item journal, or a number of other documents that indicate changes in warehouse inventory. Item with any numeric changes are moved to the adjustment bin which is set up on the Bins FastTab of the location card. At appropriate intervals as defined by company policy, you must post the warehouse adjustment bin records in the item ledger. Some companies find it appropriate to post adjustments to the item ledger every day, while others may find it adequate to reconcile less frequently.

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Chapter 4: Internal Warehouse Processes The process for posting the warehouse adjustment bin records in the item ledger is as follows: 1. Open the Item Journal window by clicking Journals, Item Journal. 2. Fill in the fields on each journal line. 3. Click Actions, Functions, Calculate Whse. Adjustment, and fill in the filters as appropriate in the batch job request window. The program will calculate adjustments only for the entries in the adjustment bin that meet filter requirements. As in other batch job request windows, you can create many new fields by clicking the AssistButton in the Field field on a new line and selecting a new criterion. 4. On the Options tab, fill in the Document No. field with a number that you enter manually. Because no number series has been set up for this batch job, use the number scheme set up by the warehouse, or enter the date (year-month-date) followed by your initials. 5. To run the Calculate Whse. Adjustment function, click OK. The program totals the positive and negative adjustments for each item and creates lines in the item journal for any items where the sum is a positive or negative quantity. 6. Click Post to enter the quantity differences in the item ledger. The inventory in the warehouse bins now corresponds precisely to the inventory in the item ledger. NOTE: When you are not using directed put-away and pick for a location, you use the inventory item journal to post, outside the context of the physical inventory, all positive and negative adjustments in item quantity that you know are real gains (for example, items previously posted as missing that show up unexpectedly) or real losses (for example, breakage of fragile items).

Counting Physical counts of inventory must be performed on a regular basis to keep an accurate record of inventory in the warehouse. WMS provides the ability to define the count frequency for a specific item, and to display the information that pertains to the last count performed, as well as when the next count is due.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Warehouse Physical Inventory Counting Periods Setup The physical inventory cycles are determined on the SKU and item cards. The primary setup and definition of counting periods are made from the Warehouse menu. To view the existing counting periods set up in the program, in the Navigation Pane, click Department>Warehouse>Inventory, and then click Phys. Invt. Counting Periods.

FIGURE 4.30 COUNTING PERIODS

To enter a new inventory counting period, create a new line, specify the new period code, and add the counts to be made for each year.

Physical Inventory Counting Counting inventory can be a time-consuming procedure. Companies can use WMS to count at the zone and/or bin level which allows for dividing warehouse areas into smaller pieces and to count specific areas of the warehouse. Because of this feature, counting can be performed more regularly or be spread over a longer period or at different intervals. The blocking of bins can be a major advantage to ensure that no items are removed during the counting period.

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Chapter 4: Internal Warehouse Processes Physical inventory counting is performed in the Whse. Phys. Invt. Journal window. To open this window, click Journals, Whse. Phys. Invt. Journals.

FIGURE 4.31 PHYSICAL INVENTORY JOURNAL

Scenario: Perform Physical Count The warehouse manager suspects that an error might have occurred during the pick for an earlier order. The pick occurred from the PICK zone and from bin W-01-0001.

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Warehouse Management in Microsoft Dynamics® NAV 2009 The task is now to create a list for the warehouse personnel to make a physical count of items inside this specific bin and report back to the warehouse manager for corrections to be made against inventory. 1. In the Navigation Pane, click Journals, Whse. Phys. Invt. Journals. 2. Click Actions, Functions, Calculate Inventory, and fill in the filter fields according to the scenario.

FIGURE 4.32 CALCULATING INVENTORY

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Chapter 4: Internal Warehouse Processes 3. Click OK to let the program fill in the lines in the Whse. Phys. Invt. Journal window.

FIGURE 4.33 ITEM PROPOSED BY THE PROGRAM

The warehouse personnel must make a physical count of the bin and produce the result to be entered in the Qty. (Phys. Inventory) field. To perform this task, a written copy is to be printed out and handed to the warehouse employee(s).

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Warehouse Management in Microsoft Dynamics® NAV 2009 4. From the Whse. Phys. Invt. Journal window, click Actions, Functions, Print. Use the Whse. Phys. Inventory List window, to specify filters for the physical inventory journal. In this case, leave all the fields without changes, since all information is retrieved from the Whse. Phys. Invt. Journal window, and click Print.

FIGURE 4.34 SPECIFYING FILTERS FOR PHYSICAL INVENTORY JOURNAL

Suppose that the result of the physical count is that the bin contains two pieces of item LS-75 and not the quantity the program indicates. Make the necessary changes in the Qty. (Phys. Inventory) field in the physical inventory journal.

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Chapter 4: Internal Warehouse Processes 5. Return to the Whse. Phys. Invt. Journal just created, and then enter the details in the Qty. (Phys. Inventory) field.

FIGURE 4.35 UPDATING THE QTY. (PHYS. INVENTORY) FIELD IN THE PHYSICAL INVENTORY JOURNAL

6. On the Action Pane, click Register. 7. In the Navigation pane, click Departments>Warehouse>History, and then in Registers, click Warehouse Registers. 8. Select the last entry in the list of registers, click Related Information, Register, and then click Warehouse entries.

FIGURE 4.36 POSITIVE AND NEGATIVE WAREHOUSE ENTRIES

NOTE: The program has recorded the movement of the item to the adjustment bin. The adjustment bin is where the program stores items (records) until they are removed from inventory. Items are not available and cannot be picked from the adjustment bin. To remove the item from inventory, you can use the Calculate Whse. Adjustment function in the item journal.

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Warehouse Management in Microsoft Dynamics® NAV 2009 NOTE: Be aware that using this function will not leave a trace in the item ledger. In fact, it is a physical inventory adjustment therefore it is recommended to use the warehouse physical inventory journal. When you register the warehouse physical inventory, you are not posting to the item ledger, the physical inventory ledger, or the value ledger, but the records are there for immediate reconciliation whenever necessary. If you want to keep precise records of what is happening in the warehouse, however, and you have counted all of the bins where the items were registered, you should immediately post the warehouse results as a physical inventory. To post warehouse results as a physical inventory, follow these steps: 1. Open the Phys. Inventory Journal window and click Actions, Functions, Calculate Inventory. 2. Select the same items that you counted in the warehouse physical inventory, and click OK. 3. The program creates lines in the Phys. Inventory Journal window for these items. Note that the program has filled in the Qty. (Phys. Inventory) field with the sum of the quantities you counted and registered for the item bin by bin in the Whse. Phys. Invt. Journal window and has calculated the value in the Quantity field. 4. Post the journal without changing any quantities. The quantities in the item ledger (item entries) and the quantities in the warehouse (warehouse entries) are now once again the same for these items, and a full physical inventory has been performed for the item. NOTE: Only an employee with permissions in the Inventory area can update the item ledger and physical inventory ledger with the results of the warehouse physical inventory.

Cycle Counting Cycle counting is the procedure for the scheduling of physical counting of frequently counted items. These might be high valued items, fast movers, low valued items, or slow movers.

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Chapter 4: Internal Warehouse Processes Physical inventory counting periods can be defined on the Warehouse FastTab of each individual SKU or item card. For example, the company might determine that an item needs to be counted six times per year. This is defined in the program by entering the number six in the Count Frequency per Year field on the physical inventory counting period card. To define a counting period, follow the steps below: 1. In the Navigation Pane, click Reference Data, Items. Open the card for item LS-120. Expand the Warehouse FastTab.

FIGURE 4.37 ITEM CARD

2. Click the AssistButton next to the Phys Invt Counting Period field, and select FAST. The program displays a confirmation message asking whether to have the next cycle counting period suggested.

FIGURE 4.38 CONFIRM CALCULATING THE COUNTING PERIOD

3. Click Yes to confirm.

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Warehouse Management in Microsoft Dynamics® NAV 2009 The Next Counting Period field is updated, and the counting period calculations are based on the work date.

FIGURE 4.39 COUNTING PERIOD CALCULATED FOR THE ITEM

The SKU/item card also holds information on the last count, last counting period update, and when the next count is to be performed.

Demonstration: Perform Cycle Counting In this demonstration, we will check availability of SKU LS-120 for the White location twice a year using the cycle counting functionality. To perform this task, following the steps below: 1. In the Navigation Pane, click Reference Data, Items. Open the card for item LS-120. Expand the Warehouse FastTab.

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Chapter 4: Internal Warehouse Processes 2. To open the SKU card by clicking Related Information, Item, Stockkeeping Units. The Stockkeeping Unit List window appears.

FIGURE 4.40 SELECTING THE STOCKKEEPING UNIT FOR COUNTING

3. Open the stockkeeping unit card for item LS-120 by clicking Actions, Edit.

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Warehouse Management in Microsoft Dynamics® NAV 2009 4. Click the AssistButton next to the Phys Invt Counting Period Code field and select Normal. This option means that the unit will be checked twice a year and the next counting period is shown in the Next Counting Period field.

FIGURE 4.41 THE NEXT COUNTING PERIOD IS SPECIFIED

5. Close the Stockkeeping Unit Card window by clicking OK. 6. Physical inventory counting is performed in the Whse. Phys. Invt. Journal window. To open this window, in the Navigation Pane, click Journals, Whse. Phys. Invt. Journals. 7. To calculate the counting period, click Actions, Functions, Calculate Counting Period. The Phys. Invt. Item Selection window appears. 8. Select the line with item LS-120 with the White location and click OK.

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Chapter 4: Internal Warehouse Processes 9. The calculate Phys. Invt. Counting window appears. Here you can select whether to display items that are not in inventory. If you are planning to print, you can choose whether to print list, show quantity calculated and sorting method. In our case, do not select any check boxes and click OK. The program has counted the quantity of item LS-120 in different zones and bins.

FIGURE 4.42 ITEM QUANTITY AVAILABLE IN DIFFERENT ZONES AND BINS

Then the physical inventory counting process is performed. The manager prints the counting report and check whether the item quantity on the stock is equal to that counted by the program. The physical quantity is specified in the Qty. (Phys. Inventory) field. 10. Click Register. After registering the inventory journal, information in the Next Counting Period field on the SKU card is updated. Another half a year is added. NOTE: If the counting period in the Next Counting Period field on the Warehouse FastTab of SKU LS-120 for the White location is not updated automatically, you can update it manually by using the Calculate Counting Period function, available from the stockkeeping unit card. Click Actions, Functions, Calculate Counting Period.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Working with Warehouse Entries When working with WMS, you can control the size of the database and thus ensure the disk capacity is utilized efficiently. Whenever needed, you can reduce the size of the database by either compressing old warehouse entries or deleting warehouse documents.

Compressing Warehouse Entries You can compress a big number of warehouse entries by using the Date Compress Whse. Entries batch job. To run the batch job, go to Departments>Administration>IT Administration>Data Deletion>Date Compression. This batch job compresses warehouse entries, that is, combines them so that they take up less space in the database. The compression works by combining several old entries into one new entry. For example, warehouse entries with the same location code, bin code, item number, variant code and unit of measure code can be compressed into one entry. If you specify in the request window, the serial number and lot number information can also be retained. After compression is performed, the contents of the following fields are always retained: Registering Date, Location Code, Zone Code, Bin Code, Item No., Quantity, Qty. (Base), Bin Type Code, Entry Type, Variant Code, Qty. per Unit of Measure, Unit of Measure Code, Warranty Date, Expiration Date, Cubage and Weight. With the Retain Field Contents facility, you can also retain the contents of Serial No. and Lot No. The number of entries that result from running the compression batch job depends on how many filters you set, which fields are combined, and which period length you choose. There will always be at least one entry. When the batch job is finished, you can see the result in the Date Compr. Registers window. NOTE: Date compression deletes entries, so you should always make a backup copy of the database before you run the batch job.

Deleting Warehouse Documents When your database has got a large number of warehouse documents, you may choose to delete some of them. For this purpose, you can use one of the following batch jobs:

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•

Delete Empty Whse. Registers (Departments>Administration>IT Administration>Data Deletion>Delete Empty Registers)

•

Delete Registered Whse. Docs. (Departments>Administration>IT Administration>Data Deletion>Warehouse Documents>Delete Registered Whse. Docs.)

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Chapter 4: Internal Warehouse Processes With the Delete Empty Whse. Registers batch job, you can delete the empty registers that result from running the Date Compress Whse. Entries batch job. When you run the Delete Registered Whse. Docs. batch job, the program deletes registered warehouse documents according to the requirements set in the batch job request window.

Summary Warehouse Management System allows for using the warehouse space effectively. For that purpose, items can be picked and put-away as well as moved around the warehouse. From this chapter, you have learned the following: •

Item movement is performed at a bin level. Movements can be carried out manually or automatically.

•

Internal picks and put-aways are used when items must be taken out of or returned to inventory without a source document.

•

Immediate item quantity adjustments can also be made with an item journal.

•

Physical counting helps to keep an accurate record of the warehouse inventory.

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Test Your Knowledge 1. Ten pieces of an item from bin A-01-0001 need to be placed on bin A-020001. How is this achieved without using the movement worksheet?

2. True or False: An inbound source document must be released to use the internal put-away functionality.

3. What are the two options for defining an automatic item's flushing method?

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Chapter 4: Internal Warehouse Processes 4. What is the purpose of the warehouse item journal?

5. Where can the last physical inventory performed for item 70000 found?

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

2.

3.

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Chapter 4: Internal Warehouse Processes

Solutions Test Your Knowledge 1. Ten pieces of an item from bin A-01-0001 need to be placed on bin A-020001. How is this achieved without using the movement worksheet? MODEL ANSWER: The movement can be registered in the warehouse reclassification journal by entering the item numbers, the quantity to move, the bins from which the items are taken, and the bins in which they are placed. 2. True or False: An inbound source document must be released to use the internal put-away functionality. MODEL ANSWER: False. There is no need for a source document when working with internal picks and put-aways. 3. What are the two options for defining an automatic item's flushing method? MODEL ANSWER: There are two options for defining an item’s flushing method: Pick + Forward and Pick + Backward. 4. What is the purpose of the warehouse item journal? MODEL ANSWER: The purpose of the warehouse item journal is to make adjustments to an item on a specific bin in a specific zone. 5. Where can the last physical inventory performed for item 70000 found? MODEL ANSWER: The value of the Last Phys. Invt. Date field is found on the Warehouse FastTab of the item card.

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Warehouse Management in Microsoft Dynamics® NAV 2009

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Chapter 5: Shipping

CHAPTER 5: SHIPPING Objectives The objectives are: •

Pick and ship items.

•

Ship cross-docked items.

•

Breakbulk the item.

Introduction Warehouse Management Systems (WMS) provides the functionalities for handling items, such as shipping cross-docked items and breakbulking items. These features of WMS along with shipping ordinary items are covered in this chapter.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Shipping the Items To initiate the shipping process, the source document (sales order, purchase return order, and outbound transfer order) must be released, and the request becomes visible to the warehouse personnel. The overview of the orders released for shipment is available from the shipment list or from the pick worksheet, which shows all released shipping orders. To continue the process of shipping, the items have to be picked. The following scenario illustrates the process of shipping the items on the example of the Cronus Company.

Scenario: Ship Items The Blanemark Hifi Shop on Baker Street has placed an order for the delivery of 12 units of Loudspeaker LS-100. Your task is to find the existing sales order, order 1001, for customer 60000 and to pick and ship items from the White location. First, retrieve the released sales order to be able to create a picking document: 1. On the Activities part of the Role Center Home page, click New Whse. Shipment.

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Chapter 5: Shipping 2. In the Location Code field, select the White location. The Zone Code and Bin Code fields are filled in automatically with default values, as specified in the location setup. The program copies the values from these fields to the lines when retrieving the source document information. 3. On the Action Pane, click Get Source Documents, and browse to the sales document 1001. Click OK to fill in the shipment lines.

FIGURE 5.1 WAREHOUSE SHIPMENT WITH THE LINE RETRIEVED

4. Click Create Pick. The Create Pick window appears, which allows to define a sorting method for the activity lines, specify whether to set a breakbulk filter and to fill in the Qty. to Handle field while creating a pick, and whether to print a hardcopy of the picking document that is to be created. 5. Click OK. The pick is created, and the line is copied to the pick. The shipment remains unchanged until the pick is registered.

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Warehouse Management in Microsoft Dynamics® NAV 2009 To continue the picking process, proceed as follows: 6. On the Activities part of the Home page, click Picks - All. Open the pick just created.

FIGURE 5.2 WAREHOUSE PICK

The Warehouse Pick window contains two lines. The first line lacks the information about where the items must be taken from. This is because the program is set up to not allow for automated picks from the bulk zone; another reason for this is that the location the item is stored at is set up to always create pick lines even if an appropriate zone and bin to pick the item from cannot be found. The second line shows where the items will be placed. 7. To view where the items are stored, select the Take line (the first line), and on the lines, click Actions, Line, Bin Contents List. The program opens the Bin Content List window to show what bin the item LS-100 is stored at.

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Chapter 5: Shipping 8. In the Warehouse Pick window, in the Zone Code, select BULK, and in the Bin Code field, select W-05-0007 as it is stated in the bin contents list.

FIGURE 5.3 ITEMS STORED IN THE BIN

9. Click OK. Information about the zone and bin is inserted to the warehouse pick line.

FIGURE 5.4 THE PICK DOCUMENT WITH LINES FILLED OUT

10. Click Register Pick.

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Warehouse Management in Microsoft Dynamics® NAV 2009 The goods are now picked. 11. On the Home page of the Role Center, click Warehouse Shipments. Open the shipment created in step 3.

FIGURE 5.5 WAREHOUSE SHIPMENT UPDATED AFTER REGISTERING THE PICK

The Qty. to Ship field is now filled out, and the document status is Completely Picked. To finalize the shipping process, post the shipment.

FIGURE 5.6 POSTING SHIPMENT AS SHIPPED

The program allows to invoice simultaneously with shipping while posting the shipment. 12. Click OK to confirm shipping only.

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Chapter 5: Shipping NOTE: If Ship and Invoice is selected, the source document (the released sales order) is posted automatically along with the shipment, using the posting date from the source document. As a result of posting, the program deleted the lines from the Warehouse Shipment window, and creates both a posted warehouse shipment and a posted sales shipment to register the process. You can use the Use Filters to Get Src. Docs. function for retrieving the source document for the shipment matching certain criteria. The procedure is similar to retrieving source documents for a warehouse receipt, which is described in chapter 3 Receiving Orders.

Shipping Cross-Docked Items When items are cross-docked, the items are handled through receiving and shipping without ever placing them in storage, thereby expediting the item through the put-away and pick processes and limiting the physical handling of items. Items can be cross-docked for both shipments and for production orders. When preparing a shipment or pick items for production and using bins, the program will automatically pick the item from a cross-dock bin before considering picking from any other bin. It is necessary to check the cross-dock area to determine the availability of the items before getting the items from their usual storage area. For more information about how to set up items for cross-docking and crossdocking opportunities, refer to Chapter 3 "Receiving Orders."

Scenario: Ship Cross-Docked Items The items received from the cross-docking opportunities must be shipped to the customer.

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Warehouse Management in Microsoft Dynamics® NAV 2009 The demonstration data in Microsoft Dynamics® NAV 2009 contains sales order 2021. With this order, the Blanemark Hifi Shop has contacted the Cronus Company and stated that they want to buy 72 pieces of item LS-81. Now they want to reduce their order to 60 pieces of item LS-81. 1. On the Home page, click Sales Orders. Open sales order 2021.

FIGURE 5.7 THE SALES ORDER WITH THE ITEMS TO BE CROSS-DOCKED

2. On the Action Pane, click Reopen, and in the Quantity field, change the quantity to 60. Click Release to release the order.

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Chapter 5: Shipping 3. On the Activities part of the Home page, click New Whse. Shipment to create a new shipment. In the Location Code field, select the White location. 4. On the Action Pane, click Get Source Documents. In the Source Documents window, select sales order 2021. Click OK.

FIGURE 5.8 WAREHOUSE SHIPMENT WITH THE LINE RETRIEVED FROM THE SALES ORDER

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Warehouse Management in Microsoft Dynamics® NAV 2009 5. Click Create Pick, and in the Create Pick window, click OK to create the warehouse pick. 6. On the Activities part of the Home page, click Picks - All. Open the pick just created.

FIGURE 5.9 WAREHOUSE PICK CREATED

The program changes the unit of measure according to the sales unit of measure when picking the items for the sales order.

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Chapter 5: Shipping 7. Click Register Pick. 8. In the Navigation Pane, click Warehouse Shipments. Open the shipment created in step 3. The Qty. to Ship field is filled in, and the option in the Document Status field has changed to Completely Picked.

FIGURE 5.10 DOCUMENT STATUS CHANGED IN THE WAREHOUSE SHIPMENT

9. Click Post Shipment, and then select Ship and Invoice. The Blanemark Hifi Shop originally ordered 72 pieces of item no. LS-81. The 72 pieces were cross-docked; however, only 60 pieces were picked and shipped. Your task is to move the remaining quantity from the cross-dock bin. 1. In the Navigation Pane, click the Worksheet button, and then click Internal Put-aways. 2. Click New to create a new warehouse internal put-away. In the Location Code field, select the White location.

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Warehouse Management in Microsoft Dynamics® NAV 2009 3. Click Actions, Functions, Get Bin Content, and the Whse. Get Bin Content window appears. 4. In the Location Code filter field, select the White location, and in the Zone Code filter field, select the Cross-Dock zone. In the Bin Code filter field, select bin W-14-0001 in which the remaining pallet of item LS-81 is placed.

FIGURE 5.11 GETTING BIN CONTENT

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Chapter 5: Shipping 5. Click OK. The program inserts the item information to the internal put-away document. The result is shown in the following illustration.

FIGURE 5.12 A LINE RETRIEVED FOR THE INTERNAL PUT-AWAY

6. Click Actions, Functions, Create Put-away, and the put-away is created. 7. On the Activities part of the Home page, click Put-aways - All, browse to the put-away just created and open it.

FIGURE 5.13 WAREHOUSE PUT-AWAY READY FOR REGISTERING

8. On the Action Pane, click Register Put-away.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Now the item is available for picking and sale. NOTE: To ship cross-docked items, you can use a warehouse movement worksheet instead of the internal put-away. In this case, you will move an item from the CROSS-DOCK bin to the bin you need.

Breakbulk When picking items for outbound orders, the items are often stored in units of measure that are different from their sales units of measure. The breakbulk functionality offered by WMS allows breaking items stored in larger units of measure into smaller ones. The following scenario describes how to perform breakbulk while picking for a sales order.

Scenario: Breakbulk Items Blanemark Hifi Shop, customer 60000, is in need of printing paper, item 80100, which they will invoice their customers for. They need a single package to satisfy their needs. 1. Create and release the sales order. 2. On the Activities part of the Home page, click New Whse. Shipments to create a new shipment. In the Location Code field, select the White location. 3. Click Get Source Documents, and then select the sales order just created.

FIGURE 5.14 WAREHOUSE SHIPMENT WITH A SOURCE LINE

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Chapter 5: Shipping 4. Click Create Pick to create a pick for this shipment. Having retrieved the pick document, notice that the same item is located on multiple lines which means that the physical breakbulk occurred. The program suggests where to and how to take and place the items.

FIGURE 5.15 ITEM UNITS BEING BREAKBULKED

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Warehouse Management in Microsoft Dynamics® NAV 2009 5. On the Action Pane, click Register Pick. 6. In the Navigation Pane, click Warehouse Shipments. Open the shipment just created. The Document Status field now contains Completely Picked, and the Qty. to Ship field contains 1.

FIGURE 5.16 THE DOCUMENT STATUS IS CHANGED

7. Click Post Shipment, and then click Ship and Invoice.

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Chapter 5: Shipping To verify what the program has performed during the process, view the warehouse entries for this exercise. 8. In the Navigation Pane, click Home, Bin Contents. Browse to the bin containing item 80100, the printing paper. Click Related Information, Line, Warehouse Entries.

FIGURE 5.17 WAREHOUSE ENTRIES SHOWING WAREHOUSE MOVEMENTS

The program performed three movements to convert the item unit of measure used for storage into the unit of measure used for sales in the given scenario.

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Lab 5.1 - Shipping, Cross-docking, and Breakbulking In this lab, you will practice shipping items. Scenario Blanemark Hifi Shop, customer 60000, is in great need of 10 units of item LS120 and wants to receive them as soon as possible. Find purchase order 104008 and create a receipt. After the receipt is posted, a put-away is created. For the put-away, change the unit of measure for item LS-75, and perform all warehouse operations.

Challenge Yourself! 1. 2. 3. 4.

Create a sales order and create a shipment. Create a receipt for the purchase order. Change the unit of measure in the put-away. Ship and invoice the items.

Need a Little Help? 1. Create a sales order for customer 60000 for 10 units of item no. LS120, release the order and create a shipment. 2. Create a receipt for purchase order 104008 from vendor 60000 with cross-docking for item LS-120. 3. Change the unit of measure for item LS-75 from pallets to pieces in the put-away and put the items away. 4. Ship and invoice the items to customer 60000.

Step by Step Create a sales order for customer 60000 for 10 units of item LS-120, release the order and create a shipment 1. On the Role Center Home page, click Sales Orders. Create a new sales order. 2. In the Sell-to Customer No. field, select 60000. In External Document No., enter 60000. In the Location Code field on the Shipping FastTab, enter WHITE.

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Chapter 5: Shipping 3. On the sales line, in the Type field, select Item. In the No. field, select the value LS-120. In the Quantity field, enter 10. (If the Check Availability window appears, click Yes). Leave the value in the Unit Price Excl. VAT field as is (for practicing purposes). 4. Release the document by clicking Release. 5. To create the warehouse shipment, click Actions, Functions, Create Whse. Shipment. The created warehouse shipment appears. Create a receipt for purchase order 104008 from vendor 60000, cross-docking item LS-120 1. In the Navigation Pane, click Purchase Orders. Browse to purchase order 104008 and open it. 2. To create the warehouse receipt, click Actions, Functions, Create Whse. Receipt. Click Yes in the information message about exceeding the capacity. The created warehouse receipt appears. 3. To calculate the warehouse cross-docking, click Calculate CrossDock. The values in the Qty. to Cross-Dock fields are updated for each line. For item LS-75, clear this field. 4. Post the warehouse receipt by clicking Post Receipt. Change the unit of measure for item LS-75 from PALLETS to PIECES in the putaway and put the items away 1. On the Activities part of the Home page, click Put-aways - All. Browse to the put-away just created and open it. 2. Select the line of the Place action type with item LS-75 and on the lines click Actions, Functions, Change Unit of Measure. In the To field of the Unit of Measure Code section, change the option to PCS and click OK. 3. In the From Zone Code field, select PICK. In the From Bin Code field, select W-01-0001. 4. On the Action Pane, click Register Put-away. Ship and invoice the items to customer 60000 1. In the Navigation Pane, click Warehouse Shipments. Open the warehouse shipment just created. 2. Release the document by clicking Release. 3. Click Create Pick to create a pick for this shipment. 4. On the request form, do not set any options and click OK. 5. On the Activities part of the Home page, click Picks - All, open the pick just created. 6. Click Actions, Functions and then click Autofill Qty. to Handle to prepare the pick for this shipment. 7. Click Register Pick.

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Warehouse Management in Microsoft Dynamics® NAV 2009 8. In the Navigation Pane, click Warehouse Shipments. Note that the Document Status field is now set to Completely Picked, and the Qty. to Ship field contains 10. 9. Click Post Shipment, and then select Ship and Invoice. The process is finished.

Summary Microsoft Dynamics NAV 2009 provides tools for effective handling of items through the use of the shipping and breakbulking functionalities. Moreover, the program allows for shipping the cross-docked items, which ensures efficient handling of the items that must not be stored at the warehouse but must be delivered directly from a receipt zone to a ship zone. From this chapter, you have also learnt the following:

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•

The shipping process can be initiated by releasing a source document.

•

Items can be cross-docked for both production and shipment orders.

•

The breakbulk functionality allows breaking items stored in larger units of measure into smaller ones.

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Chapter 5: Shipping

Test Your Knowledge 1. When is the Qty. to Ship field on a shipment line filled out?

2. How is a hardcopy of a picking document printed?

3. Suppose item1 is stored in packs, where one pack equals 15 pieces. When selling item1, it sells in pieces. True or False: When pick lines are created, the program uses the breakbulk functionality automatically to break down the larger unit into smaller ones.

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

2.

3.

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Chapter 5: Shipping

Solutions Test Your Knowledge 1. When is the Qty. to Ship field on a shipment line filled out? MODEL ANSWER: As soon as a pick is registered for the shipment line, the Qty. to Ship field is updated. 2. How is a hardcopy of a picking document printed? MODEL ANSWER: When creating a pick, select the Print check box in the Create Pick window to print a hardcopy of the picking document about to be created. 3. Suppose item1 is stored in packs, where one pack equals 15 pieces. When selling item1, it sells in pieces. True or False: When pick lines are created, the program uses the breakbulk functionality automatically to break down the larger unit into smaller ones. MODEL ANSWER: False. The breakbulk functionality must be activated on the Bin Policies FastTab of the location card. Otherwise, breakbulking will not be used for the item.

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Chapter 6: Item Tracking Within Warehouse Management Systems

CHAPTER 6: ITEM TRACKING WITHIN WAREHOUSE MANAGEMENT SYSTEMS Objectives The objectives are: •

Get prepared for item tracking.

•

Receive item-tracked items.

•

Move item-tracked items.

•

Ship item-tracked items.

•

Pick according to FEFO.

Introduction Warehouse Management Systems (WMS) provides item tracking functionality which is helpful when items are associated with warranties or have expiration dates, or when dealing with hazardous products. The Item Tracking granule in Microsoft Dynamics® NAV provides a company with an easy-to-use tracking system, which can take into account information about each unique piece of merchandise, such as: •

When it is received.

•

Where it is placed.

•

When it expires.

•

Which customer bought it and when.

The functionality is based on using serial and lot numbers and allows for the receipt and shipment of multiple quantities with serial and lot numbers from a single order line entry. Item tracking entries, which represent the transaction history of each individual item with serial and/or lot numbers, are the records used to trace an item along its movement through the supply chain.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Preparing Warehouse Management Systems for Item Tracking NOTE: Before you begin, you must install a clean database. Before using the item tracking functionality, Warehouse Management Systems must be set up for handling item tracking information. The defined settings instruct the program to request item tracking information for all processes defined in the Warehouse Management setup. Setup involves the following steps: 1. In the Navigation Pane, click Departments>Administration> Application Setup>Warehouse> Inventory, and in the Lists, click Item Tracking Codes.

FIGURE 6.1 ITEM TRACKING CODES

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Chapter 6: Item Tracking Within Warehouse Management Systems 2. Open the tracking code card for the SNALL code. 3. Expand the Serial No. FastTab, and select the SN Warehouse Tracking check box:

FIGURE 6.2 THE SN WAREHOUSE TRACKING CHECK BOX SELECTED

NOTE: To indicate that warehouse document lines require lot numbers, select the Lot Warehouse Tracking check box on the Lot No. FastTab of the item tracking code card. The program is now set up to handle item tracking information in warehouse processes. NOTE: To follow the scenarios described in this chapter, it is necessary to define item tracking parameters for item 80001, Computer III 533MHz.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Now, set up the item for using the item tracking functionality. 1. In the Navigation Pane, click the Reference Data button, then click Items; browse to item 80001 and open its card. 2. Expand the Item Tracking FastTab.

FIGURE 6.3 THE ITEM TRACKING FASTTAB OF THE ITEM CARD

3. Click the AssistButton next to the Item Tracking Code field. In the Item Tracking Codes window, select the SNALL code and click OK. The selected item tracking code indicates that the program will trace inbound and outbound serial numbers and perform warehouse tracking for the item in question. The settings for the code can be viewed on the item tracking code card. 4. Click the AssistButton next to the Serial Nos. field, and from the No. Series window, select the SN1 code and click OK.

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Chapter 6: Item Tracking Within Warehouse Management Systems Now that the number series code is specified, the program use it to automatically assign consecutive serial numbers to the items produced. In case you receive items with serial numbers already specified, you must use these external number series.

FIGURE 6.4 SELECTING SERIAL NUMBERS FOR THE ITEM

With these settings defined, the item is set up for item tracking.

Receiving Items with Item Tracking Information When receiving items that are set up for item tracking functionality, it is necessary to add the tracking information when registering the items as received. Options on whether or not to add tracking information are defined on the location card (select the Require Receive check box) and on the item tracking procedure on the item tracking code card (select the SN Warehouse Tracking and/or Lot Warehouse Tracking check boxes). The following scenario demonstrates how to receive an item with item tracking information.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Scenario: Receive and Put Away Items with Item Tracking Information The Device Shop has ordered 32 computers for their Administrative Department from the Cronus Company. To keep track of these specific computers, the warehouse manager supplies the items with item tracking information. The computers must be purchased from the Electronics Ltd. vendor. Create a sales order for customer 62000, The Device Shop, for 32 pieces of item 80001, and place a purchase order to vendor 61000 Electronics Ltd. for the same quantity to be delivered at the White warehouse. Remember to release both orders. Your task is to receive and put away the items, applying item tracking information when receiving. 1. On the Activities part of the Home page, click New Whse. Receipt to create a new receipt. In the Location Code field, select the White location. 2. Click Get Source Documents, and then select the purchase order just created. Click OK to copy the lines from the purchase order to the receipt.

FIGURE 6.5 WAREHOUSE RECEIPT WITH THE LINE RETRIEVED FROM THE PURCHASE ORDER

The item on the line from the purchase order is now ready to be handled, and item tracking information is to be applied.

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Chapter 6: Item Tracking Within Warehouse Management Systems 3. In the Warehouse Receipt window, on the line, click the Actions icon, and then click Line, Item Tracking Lines.

FIGURE 6.6 ITEM TRACKING LINES FOR ITEM 80001

A number series for the item tracking code SNALL is already defined during the setup of item tracking for item 80001. Therefore, the program can define serial numbers for all 32 items. 4. In the Item Tracking Lines window, click Actions, Functions, Assign Serial No. The Enter Quantity to Create window appears.

FIGURE 6.7 EDITING THE QUANTITY OF SERIAL NUMBERS AND CREATING A NEW LOT

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Warehouse Management in Microsoft Dynamics® NAV 2009 Now there is the opportunity to edit the quantity of serial numbers to be created and to create a new lot containing these serial numbers. 5. For this scenario, choose to accept the full quantity and confirm by clicking OK, and serial numbers are created for all 32 pieces.

FIGURE 6.8 SERIAL NUMBERS CREATED

6. Close the Item Tracking Lines window. The serial numbers are now added for the items on the receipt line. 7. Complete the receiving of the items by clicking Post Receipt on the Action Pane.

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Chapter 6: Item Tracking Within Warehouse Management Systems The next step is to put the items away. 8. On the Activities part of the Home page, click Put-aways - All, and then open the put-away just created.

FIGURE 6.9 WAREHOUSE PUT-AWAY WITH MULTIPLE LINES

The number of lines for this specific order has now multiplied: the program has created two lines, Take and Place, for each serial number. This happened because now each of the 32 items is unique, and, therefore, each is displayed individually. Since there is no need to change any of the lines, now register the put-away. 9. On the Action Pane, click Register Put-away. The items are now in stock, available for picking.

Scenario: Print Physical Inventory List with Lot Numbers Shown This demonstrates the tasks involved in performing physical inventory of items with serial/lot numbers. The warehouse worker in charge of location White must perform the annual count of inventory items carrying serial/lot numbers. The worker initiates the process by filling the physical inventory journal with calculated inventory quantities, prints the Physical Inventory List report, and continues to do the physical counting. In the process, the worker records that one M780 monitor is missing and that a forgotten lot of ten hard disks is found.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Prepare the physical inventory journal and calculate inventory. 1. In the Navigation Pane, click the Journals button, and then click Whse. Phys. Invt. Journals. 2. On the Action Pane, click Calculate Inventory, and set a location code filter for White. Click OK to run the calculation. 3. Continue to prepare the physical inventory report by clicking Print on the Action Pane of the Whse. Phys. Invt. Journal window. 4. Do not set any filters. Expand the Options FastTab and select both the Show Serial/Lot Number and Show Qty. (Calculated) check boxes.

FIGURE 6.10 SETTING OPTIONS FOR PRINTING THE PHYSICAL INVENTORY LIST

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Chapter 6: Item Tracking Within Warehouse Management Systems 5. Click Preview to see the draft of the physical inventory list report.

FIGURE 6.11 LOT NUMBERS SHOWN ON THE PRINT PREVIEW

Notice that serial/lot numbers are listed in extra information columns under the item in question. The quantity of each (here, all the items are serialized) is shown in the Quantity (Base) field, and each serial/lot number has a separate line in which to enter the counted quantity.

Moving Items with Item Tracking Information Moving items around within the warehouse can be a daily routine. Pick routines are frequently updated and items are moved around so that they are placed in a forward picking area or for any other optimization routine. There are many reasons for moving items around the warehouse. The following scenario demonstrates how items with item tracking information are moved within Warehouse Management Systems.

Scenario: Move Items with Item Tracking Information A survey shows that the bin carrying item 80100, W-04-0001 has a high risk of collapsing when holding the weight load close to that maximum specified. The warehouse manager has decided that 25% of the quantity in the bin must be moved to a different bin, W-04-0003 of the PICK zone.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Your task is to move the items taking into account the item tracking information. 1. On the Activities part of the Role Center, click Edit Movement Worksheet. In the movement worksheet, enter the information from the scenario.

FIGURE 6.12 CREATING A WAREHOUSE MOVEMENT

2. Click Related Information, Line, and then click Item Tracking Lines. In the Whse. Item Tracking Lines window, enter the eight serial numbers for the items that need to be moved. Remember to fill in the Quantity field.

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Chapter 6: Item Tracking Within Warehouse Management Systems NOTE: This information is entered manually/scanned according to the items picked. For exercise purposes, check the warehouse registers for the item tracking information.

FIGURE 6.13 SERIAL NUMBERS FOR THE ITEMS THAT MUST BE MOVED

3. Close the Whse. Item Tracking Lines window.

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Warehouse Management in Microsoft Dynamics® NAV 2009 4. In the Movement Worksheet window, on the Action Pane, click Create Movement, and then click OK. 5. On the Activities part of the Home page, click Movements - All. Open the movement just created.

FIGURE 6.14 MOVEMENT READY TO BE PERFORMED

The lines are split up into the two actions, Take and Place, for each serial number. The Take line is for taking the item from bin W-04-001. The Place line is for placing the item to bin W-04-003. The movement is ready to be performed. 6. Click Register Movement. The items with the specified serial numbers are now moved. NOTE: Items can be set for using item tracking information after taking care of the warehouse movement document.

Shipping Items with Item Tracking Information When items registered with item tracking are shipped, they must contain item tracking information. This will happen if the serial/lot specific tracking is used and the SN Warehouse Tracking check box on the item tracking code card is selected.

Scenario: Ship Items with Item Tracking Information One of Cronus Company's customers, The Device Shop (customer 62000), has decided that they want a partial delivery of 16 computers, item 80001, to be expedited right away. 6-14

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Chapter 6: Item Tracking Within Warehouse Management Systems Your task is to create a shipment for item 80001. 1. On the Activities part of the Home page, click New Whse. Shipment to create a new shipment. In the Location Code field, select the White location. 2. On the Action Pane, click Get Source Documents. Select the sales order just created, and click OK to confirm. The line is copied to the shipment document.

FIGURE 6.15 WAREHOUSE SHIPMENT WITH THE LINE RETRIEVED

3. From the shipment document, click Create Pick. A pick activity is created. 4. On the Activities part of the Home page, click Picks - All. Open the pick just created. The pick document contains 32 items. Since a partial delivery of 16 is being made, the lines that exceed the quantity needed must be deleted. 5. Delete the extra lines so as to only pick from bin W-04-0001. 6. In the Serial No. fields, enter the serial numbers for the items to be shipped (click the AssistButton next to the Serial No. field, and select the numbers for the items that are to be picked).

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Warehouse Management in Microsoft Dynamics® NAV 2009 7. Click Register Pick. The pick is now registered, and the shipment lines are updated. 8. In the Navigation Pane, click Home, Warehouse Shipments, and then open the shipment created at steps 1-2.

FIGURE 6.16 PARTIAL DELIVERY IS TO BE MADE

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Chapter 6: Item Tracking Within Warehouse Management Systems 9. To verify the item tracking information, on the lines, click Actions, Line, and then click Item Tracking Lines.

FIGURE 6.17 VERIFYING ITEM TRACKING INFORMATION

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Warehouse Management in Microsoft Dynamics® NAV 2009 10. Close the Item Tracking Lines window. In the warehouse shipment, click Post Shipment, and then select Ship. The shipment is now shipped. The rest of items are to be shipped later as another partial shipment.

FIGURE 6.18 ITEMS SHIPPED PARTIALLY

Scenario: Generate Pick Lines Another way of handling item tracking information in WMS is demonstrated in the following scenario - using the pick worksheet to get better control over the number of lines to be created in the pick document. Customer 62000, The Device Shop, has ordered an additional four units of item 80001 to be delivered right away.

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Chapter 6: Item Tracking Within Warehouse Management Systems Your task is to perform the pick, and ship the items using the pick worksheet to generate the needed pick lines. 1. In the Navigation Pane, click the Worksheet button, then click Pick Worksheets. In the header, in the Batch Name field, select the Default batch for the White location. 2. On the Action Pane, click Get Warehouse Documents.

FIGURE 6.19 A PICK SELECTION

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Warehouse Management in Microsoft Dynamics® NAV 2009 3. In the Pick Selection window, select the line for the shipment created previously. Click OK. The line from the shipping document is copied to the pick worksheet.

FIGURE 6.20 A SHIPMENT LINE COPIED TO THE PICK WORKSHEET

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Chapter 6: Item Tracking Within Warehouse Management Systems 4. In the Qty. to Handle field, change the quantity to 4. Click Create Pick. 5. On the Activities part of the Home page, click Picks - All, and then open the pick just created. In the Serial No. fields, enter the serial numbers (click the AssistButton next to the Serial No. field) for the items to ship.

FIGURE 6.21 SERIAL NUMBERS ENTERED

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Warehouse Management in Microsoft Dynamics® NAV 2009 6. Click Register Pick. 7. In the Navigation Pane, click Home, Warehouse Shipments, and then open the shipment just updated.

FIGURE 6.22 THE WAREHOUSE SHIPMENT DOCUMENT UPDATED

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Chapter 6: Item Tracking Within Warehouse Management Systems 8. On the lines, click Actions, Line, Item Tracking Lines to assure that all tracking lines are in place.

FIGURE 6.23 SERIAL NUMBERS OF THE ITEMS TO BE SHIPPED

9. Close the Item Tracking Lines window. In the Warehouse Shipment window, click Post Shipment, and then select Ship. The shipment document is updated. This concludes the shipping of items containing item tracking information.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Picking According to FEFO Items set up for working with item tracking information can be picked according to their expiration dates. For that purpose the Pick According to FEFO (FirstExpired-First-Out) function is used. Items with the earliest expiration dates have priority to be picked first. The Pick According to FEFO functionality can be enabled on the Bin Policies FastTab of the location card.

FIGURE 6.24 ENABLING PICKING ACCORDING TO FEFO ON THE LOCATION CARD

NOTE: You must distinguish between FEFO and FIFO. FIFO stands for the First-In-First-Out functionality, which is used as a costing method when the inventory has to be valued according to the cost of the goods as they are entering and exiting the stock. Microsoft Dynamics NAV 2009 tracks the goods according to FIFO when performing replenishment or movements. For FEFO to work in the program, the location and items must meet the following criteria:

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•

The Pick According to FEFO check box on the location card must be selected.

•

The item tracking code for the item must be set up for serial-numberspecific or lot-specific warehouse tracking.

•

The item entries must be registered and posted with expiration dates.

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Chapter 6: Item Tracking Within Warehouse Management Systems When these criteria are met, the program creates picks according to FEFO in pick and movement documents. This is the case only if the source document line does not already contain information on item tracking concerning which serial or lot number is going to be used. When picking by FEFO, the program selects available items with the nearest expiration date. Then a list of temporary item tracking codes is generated based on the expiration date. If there are two items with an identical expiration date, the item with the lowest lot or serial number is selected. If those numbers are the same, then the program selects the item that is registered first. NOTE: To create movements according to FEFO, leave the From Bin Code field empty in the movement worksheet. The following scenario illustrates using the FEFO method while picking the item.

Scenario: Pick According to FEFO Cronus customer 01905893, Candoxy Canada Inc., has ordered 10 units of item 80014, 512 MB PC800 ECC, with two different numbers of lot series. You can buy memory cards of two different sets from vendor 01905283, Mundersand Corporation. It is necessary to add the item tracking information into the warehouse history journals when you register the items as received and shipped using the FEFO method for the White location. The steps you must perform are divided into several phases. First you must set up items for using item tracking information. 1. In the Navigation Pane, click Reference Data, Items. Open item card for item 80014, 512 MB PC800 ECC, and expand the Item Tracking FastTab.

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Warehouse Management in Microsoft Dynamics® NAV 2009 2. Click the AssistButton next to the Item Tracking Code field, and in the item tracking code list, click Advanced to open the Item Tracking Code window. Select LOTALL and click Actions, Edit. 3. Expand the Lot No. FastTab, and select the Lot Warehouse Tracking check box. Close the Item Tracking Codes Card and Item Tracking Codes windows.

FIGURE 6.25 THE LOT WAREHOUSE TRACKING CHECK BOX SELECTED

4. Make sure that the White location is set up for using the FEFO method - on the Bin Policies FastTab, select the Pick According to FEFO check box. Now create a sales order. 1. In the Navigation Pane, click Home, Sales Orders. Click New to create a new sales order. 2. In the Sell-to Customer No. field, enter 01905893. 3. In the External Document No. field, enter 01905893. 4. On the Shipping FastTab, in the Location Code field, change the Yellow location to White. 5. On the sales line, in the Type field, select Item. In the No. field, select 80014. In the Quantity field, enter 10. If the Check Availability window appears, click Yes. Leave the value in the Unit Price Excl. VAT field as is (for the practicing purpose). 6. Release the document by clicking Release on the Action Pane. 7. Create the warehouse shipment by clicking Actions, Functions, Create Whse. Shipment. The created warehouse shipment appears. We will need it later, so close it for now.

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Chapter 6: Item Tracking Within Warehouse Management Systems Now you must create 2 purchase orders for receiving 2 lots of items with different dates. The following procedure describes creating of the first purchase order. 1. On the Activities part of the Home page, click New Purchase Order to create a new purchase order. 2. In the Buy-from Vendor No. field, enter 01905283. Change the Posting Date and Order Date to 01/08/10. In the Vendor Invoice No. field, enter 01905283-1. In the Location Code field of the Shipping FastTab, select the White location. 3. On the purchase line, in the Type field, select Item. In the No. field, select 80014. In the Quantity field, enter 7. Leave the value in the Direct Unit Cost field as is (for the practicing purpose). 4. Release the document by clicking Release on the Action Pane. Now it is necessary to register the item receipt for this purchase order. 1. On the Activities part of the Home page, click New Whse. Receipt to create a new receipt. 2. In the Location Code field, select the White location and change the value of Bin Code to W-08-0002. Click Get Source Documents, and then select the purchase order you just created. Click OK, and the lines from the purchase order are copied to the receipt. 3. On the receipt line, click Actions, Line, Item Tracking Lines. 4. For the line, in the Quantity (Base) field, enter 7; in the Lot No. field, input LOT-007; and in the Expiration Date field, type 10/01/10. Then confirm by clicking OK.

FIGURE 6.26 ITEM TRACKING LINES ENTERED

5. Complete the receipt of the items by clicking Post Receipt on the Action Pane. Confirm the posting of the receipt.

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Warehouse Management in Microsoft Dynamics® NAV 2009 As a result, the program creates a put-away for the item, which has to be registered. 1. To register the put-away, on the Activities part of the Home page, click Put-aways - All, and then browse to the put-away just created. 2. On the Action Pane, click Register Put-Away to register the created put-away. Now create the second purchase order. The procedure is the same as with the previous purchase order. 1. On the Activities part of the Home page, click New Purchase Order to create a new purchase order. 2. In the Buy-from Vendor No. field, enter 01905283. Change the Posting Date and Order Date to 01/08/09. In the Vendor Invoice No. field, enter 01905283-2. In the Location Code field of the Shipping FastTab, select the White location. 3. On the purchase line, in the Type field, select Item. In the No. field, select 80014. In the Quantity field, enter 5 . Leave the value in the Direct Unit Cost field as is (for the practicing purpose). 4. Release the document by clicking Release on the Action Pane. Now a receipt can be created with this purchase order as a source document. The receipt is necessary for registering item receiving. 1. On the Activities part of the Home page, click New Whse. Receipt to create a new receipt. 2. In the Location Code field, select the White location and change the value of Bin Code to W-08-0002. Change the value in the Posting Date field to 01/08/09. Click Get Source Documents, and then select the purchase order you just created. Click OK, and the lines from the purchase order are copied to the receipt. 3. On the receipt line, click Actions, Line, Item Tracking Lines. 4. For the line, in the Quantity (Base) field, enter 5; in the Lot No. field, input LOT-006; and in the Expiration Date field, type 01/02/10. Then confirm by clicking OK. 5. Complete the receipt of the items by clicking Post Receipt on the Action Pane. Confirm the posting of the receipt.

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Chapter 6: Item Tracking Within Warehouse Management Systems The program creates a put-away for the item, which has to be registered. 1. On the Activities part of the Home page, click Put-aways - All, and then browse to the put-away just created.

FIGURE 6.27 THE PUT-AWAY TO BE REGISTERED

2. On the Action Pane, click Register Put-Away to register the created put-away. The two purchase orders are created. The next phase is creating a pick from the warehouse shipment, and registering it. On this phase, the FEFO method is used to define which lot expiration date is earlier. 1. In the Navigation Pane, click Home, Warehouse Shipments. Open the warehouse shipment created from the sales order.

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Warehouse Management in Microsoft Dynamics® NAV 2009 2. In the shipment, click Create Pick. A pick activity is created. 3. On the Activities part of the Home page, click Picks - All. Open the pick just created.

FIGURE 6.28 THE NEW PICK CREATED

4. Click the AssistButton next to the Lot No. field. The Lot No. List window appears. Here you can see the lot numbers, and the lot with the earliest expiration date is the first in the list. This is how the program select the lot numbers according to the expiration date using FEFO method.

FIGURE 6.29 THE LOT WITH THE EARLIER EXPIRATION DATE IS FIRST IN THE LIST

5. In the Lot No. field for each line check the value in the Lot No. field for the items to be shipped. As a result, there are two lines of the Take action types with LOT-006 and LOT-007 in the Lot No. field, and the two lines of the Place type with LOT-006 and LOT-007 in the Lot No. field.

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Chapter 6: Item Tracking Within Warehouse Management Systems 6. Check the values in the Zone Code and Bin Code fields for each line: Action Type

Zone Code

Bin Code

Take

PICK

W-04-0001

Place

SHIP

W-09-0001

7. Fill values in the Qty. to Handle field for each line and on the Action Pane, click Register Pick to register the created warehouse pick. After the pick is registered, your shipment lines are updated. To finish the scenario, you must post the shipment. 1. In the Navigation Pane, click Warehouse Shipments. Open the warehouse shipment you created. 2. To verify the item tracking information, on the lines, click Actions, Line, Item Tracking Lines. There is a line for each lot number. Close the Item Tracking Lines window. 3. On the Action Pane, click Post Shipment, and then select Ship and Invoice. Your shipment is now posted as shipped and invoiced.

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Lab 6.1 - Item Tracking with WMS In this lab, you will practice working with items set up for item tracking in Warehouse Management Systems. Scenario Cronus customer 01121212, Spotsmeyer's Furnishings, has ordered 10 units of item 80216-T, Ethernet Cable, with two different numbers of lot series. You can buy cables of two different sets from vendor 01905283 Mundersand Corporation. It is necessary to add the item tracking information into the warehouse history journals when registering the items as received and shipped.

Challenge Yourself! 1. 2. 3. 4.

Set up item tracking information. Create a sales order, a purchase order and a warehouse shipment. Create and register a warehouse pick. Post the shipment.

Need a Little Help? 1. Set up items to instruct the program to require item tracking information. 2. Create a sales order. 3. Create a purchase order for receiving two lots of items. 4. Create a warehouse shipment. Create and register a warehouse pick. 5. Post the shipment.

Step by Step Set up items for using item tracking information 1. In the Navigation Pane, click Reference Data, Items. Open the item card for item 80216-T, Ethernet Cable, and expand the Item Tracking FastTab. 2. Click the AssistButton next to the Item Tracking Code field, and in the item tracking code list, click Advanced to open the Item Tracking Code window. Select LOTALL and click Actions, Edit. 3. Expand the Lot No. FastTab, and select the Lot Warehouse Tracking check box. Close the Item Tracking Codes Card and Item Tracking Codes windows.

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Chapter 6: Item Tracking Within Warehouse Management Systems Create a sales order 1. In the Navigation Pane, click Home, Sales Orders. Click New to create a new sales order. 2. In the Sell-to Customer No. field, enter 01121212. In the External Document No. field, enter 01121212. In the Shipping FastTab, in the Location Code field, change the Yellow location to White. 3. On the sales line, in the Type field, select Item. In the No. field, select 80216-T. In the Quantity field, enter 10. If the Check Availability window appears, click Yes. Leave the value in the Unit Price Excl. VAT field as is (for practicing purposes). 4. Release the document by clicking Release on the Action Pane. 5. To create the warehouse shipment, click Actions, Functions, Create Whse. Shipment. The created warehouse shipment appears. Create a purchase order for receiving two lots of items. 1. On the Activities part of the Home page, click New Purchase Order to create a new purchase order. 2. In the Buy-from Vendor No. field, enter 01905283. In the Vendor Invoice No. field, enter 01905283. On the Shipping FastTab, in the Location Code field, select the White location. 3. On the purchase line, in the Type field, select Item. In the No. field, select 80216-T. In the Quantity field, enter 10. Leave the value in the Direct Unit Cost field as is (for practicing purposes). 4. Release the document by clicking Release on the Action Pane. 5. On the Activities part of the Home page, click New Whse. Receipt to create a new receipt. 6. In the Location Code field, select the White location. Click Get Source Documents, and then select the purchase order just created. Click OK, and the lines from the purchase order are copied to the receipt. 7. On the receipt line, click Actions, Line, Item Tracking Lines. 8. Create two lines. For each line, in the Quantity (Base) field, enter 5 and click Actions, Functions, Assign Lot No., and then confirm by clicking OK. 9. Complete the receipt of the items by clicking Post Receipt on the Action Pane. Confirm the posting of the receipt. 10. On the Activities part of the Home page, click Put-aways - All, and then browse to the put-away just created. 11. On the Action Pane, click Register Put-Away to register the created put-away.

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Warehouse Management in Microsoft Dynamics® NAV 2009 Create a warehouse shipment. Create and register a warehouse pick. 1. In the Navigation Pane, click Home, Warehouse Shipments. Open the warehouse shipment just created. 2. In the shipment document, click Create Pick. A pick activity is created. 3. On the Activities part of the Home page, click Picks - All. Open the pick just created. 4. For each line, change the value in the Qty. to Handle field from 0 to 5, and then on the lines, click Actions, Functions, Split Line. 5. In the Lot No. field for each line, enter the serial numbers for the items to be shipped (click the AssistButton next to the Lot No. field, and select the number). As a result, there are two lines of the Take action types with LOT0001 in the Lot No. field, and the two lines of the Place type with LOT0002 in the Lot No. field. 6. Check the values in the Zone Code and Bin Code fields for each line: Action Type

Zone Code

Bin Code

Take

PICK

W-03-0001

Place

SHIP

W-09-0001

7. On the Action Pane, click Register Pick to register the created warehouse pick. After the pick is registered, the shipment lines are updated. Post the shipment 1. In the Navigation Pane, click Home, Warehouse Shipments. Open the warehouse shipment just created. 2. To verify the item tracking information, on the lines, click Actions, Line, Item Tracking Lines. There is a line for each lot number. Close the Item Tracking Lines window. 3. Click Post Shipment, and then select Ship and Invoice. The shipment is now posted as shipped and invoiced.

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Chapter 6: Item Tracking Within Warehouse Management Systems

Summary The item tracking functionality helps to track items in different business situations. The functionality is based on the lot and serial numbers of the items. By using these numbers, items can be easily tracked when received, shipped, and moved around the warehouse. Traceability of serial/lot numbers is important for the effective item tracking and a requirement in certain industries. The item tracking functionality introduces improvements and new features for gathering item-tracking information in the program. New advanced search functions help you track an item's current position anywhere in the internal or external supply chain. This includes information about how it got there and where it is going.

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Warehouse Management in Microsoft Dynamics® NAV 2009

Test Your Knowledge 1. How is the program instructed to require item tracking information in warehouse processes for items using the item tracking code SNALL?

2. Where is adding tracking information specified, when registering the items as received?

3. Where are the number series selected that are used by the program to automatically assign consecutive serial numbers to an item?

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Chapter 6: Item Tracking Within Warehouse Management Systems 4. Which option must be selected to track items with lot serial numbers?

5. An item-tracked item is to be sold. Warehouse item tracking is activated. True or False: Item tracking information can be assigned in the warehouse shipment document.

6. Which items have priority when picking according to FEFO method?

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Warehouse Management in Microsoft Dynamics® NAV 2009

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

2.

3.

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Chapter 6: Item Tracking Within Warehouse Management Systems

Solutions Test Your Knowledge 1. How is the program instructed to require item tracking information in warehouse processes for items using the item tracking code SNALL? MODEL ANSWER: On the item tracking code card for code SNALL, select the SN Warehouse Tracking check box on the Serial No. FastTab. 2. Where is adding tracking information specified, when registering the items as received? MODEL ANSWER: Options about whether or not to add tracking information are specified on the location card. 3. Where are the number series selected that are used by the program to automatically assign consecutive serial numbers to an item? MODEL ANSWER: The number series are selected in the Serial Nos. field on the Item Tracking FastTab of the item card. 4. Which option must be selected to track items with lot serial numbers? MODEL ANSWER: The Lot Warehouse Tracking check box in the Item Tracking Code window must be selected. 5. An item-tracked item is to be sold. Warehouse item tracking is activated. True or False: Item tracking information can be assigned in the warehouse shipment document. MODEL ANSWER: False. The item tracking information must be assigned in the pick document. 6. Which items have priority when picking according to FEFO method? MODEL ANSWER: Items with the earliest expiration dates have priority to be picked first.

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Appendix A: Warehousing Granules

APPENDIX A: WAREHOUSING GRANULES Warehouse Shipment (4,210) Supply Chain

You use this granule to enable your warehouse employees to carry out their dedicated tasks. This is done from a separate user interface when shipping items in a multi-order environment. Independently, this granule will allow the user to group several outbound orders (sales order, purchase return order and outbound transfer order) into one document. Posting the warehouse shipment posts all the source document lines included. Partial posting is supported. All outbound orders must be released in order to be included in the warehouse shipment. An Open/Released status is also available on the warehouse shipment. The warehouse shipment document includes the shelf information from the item card for manual picking information. The pick quantities, cross-dock, zones and bins are not available. The warehouse shipment document handles multiple UOM. When sold together with 4,200, the Pick granule, the warehouse shipment document will act as a repository of the pick lines. The pick quantities (“Qty to Pick” and “Qty Picked”) will be supported. The pick is created from the warehouse shipment or from the pick worksheet. The warehouse shipment and the pick documents contain the shelf number for placement information. The Pick Worksheet window is available. When sold together with 4,180, the Put-away granule, the warehouse shipment document behaves as if sold independently and the put-away document behaves as if sold independently. When sold together with 4,170, the Bin granule, beware that the feature-set achieved with this combination is not tested and supported. The complete warehousing system that combines the Warehouse Shipment, Warehouse Pick and Bin granules is designed and achieved together with the various functionalities of 4,620, the Warehouse Management Systems granule. When sold together with 4,620, the Warehouse Management Systems granule – see explanation of 4,620 Requirements: Basic Inventory

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Warehouse Management in Microsoft Dynamics® NAV 2009 Pick (4,200) Supply Chain

You use this granule to enable your warehouse employees to carry out their dedicated tasks. This is done from a separate user interface when shipping items in an order-by-order environment. Independently, this granule will allow you to create a pick document (inventory pick) either from the released order or from the inventory pick, the relationship is one-to-one. The placement indication on the inventory pick is the shelf information from the item card. You can post the inventory pick as Ship or Ship and Invoice and it will then post the document it is created from. The inventory pick can handle partial quantities. Item tracking information (serial/lot numbers) is handled as fields directly on the line. When sold together with 4,170, the Bin Granule, the bin specification is included on the inventory pick line. The bin quantity will be updated according to the posting of the inventory picks (and inventory put-away or inbound orders depending on the setup) as well as the item, item reclassification, physical inventory, output and consumption journals. The First-Expired-First-Out (FEFO) feature of the Item Tracking feature set can be enabled. Requirements: Basic Inventory

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Appendix A: Warehousing Granules Warehouse Receipt (4,190) Supply Chain

You use this granule to enable your warehouse employees to carry out their dedicated tasks. This is done from a separate user interface when shipping items in a multi-order environment. Independently, this granule will allow the user to group several inbound orders (purchase order, sales return order and inbound transfer order) into one document. Posting the warehouse receipt posts all the source document lines included. Partial posting is supported. All inbound orders must be released in order to be included in the warehouse receipt. There is no Open/Released status on the warehouse receipt. The warehouse receipt document includes the shelf information from the item card for manual put-away information. The putaway quantities, cross-dock, zones and bins are not available. The warehouse receipt document handles multiple UOM. When sold together with 4,180, the Put-Away granule, the warehouse receipt tracks partially received quantities. When posting the received quantities, a put-away is created or an entry for the put-away worksheet is created. The Put-Away Worksheet window is available. The warehouse receipt and the put-away documents contain the shelf information for placement purposes. When sold together with 4,200, the Pick granule, the warehouse Receipt document behaves as if sold independently and the pick document behaves as if sold independently. When sold together with 4,170, the Bin granule, beware that the feature-set achieved with this combination is not tested and supported. The complete warehousing system that combines the Warehouse Receipt, Warehouse Put-away and Bin granules is designed and achieved together with the various functionalities of 4,620, the Warehouse Management Systems granule. When sold together with 4,210, the Whse Shipment granule, 4,200, the Pick granule and 4,180, the Put-away granule, the cross-dock functionality on the warehouse receipt will be available. When sold together with 4,620, the Warehouse Management Systems granule – see explanation of 4,620 Requirements: Basic Inventory

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Warehouse Management in Microsoft Dynamics® NAV 2009 Put-Away (4,180) Supply Chain

You use this granule to enable your warehouse employees to carry out their dedicated tasks. This is done from a separate user interface when shipping items in an order-by-order environment. Independently, this granule will allow you to have a put-away document (inventory put-away) that is created either from the released order or from the inventory put-away, the relationship is one-to-one. The placement indication on the put-away would be the shelf information from the item card. You can post as Receive or Receive and Invoice from an inventory put-away and it will then post the document it is created from. The inventory put-away can handle partial quantities. Item tracking information (serial/lot numbers) is handled as fields directly on the line. When sold together with 4,170, the Bin Granule, you will have the bin specification on the inventory put-away line. The bin quantity will be updated according to the posting of the inventory putaway (and inventory pick or outbound orders depending on the setup) as well as the item, item reclassification, physical inventory, output and consumption journals. Requirements: Basic Inventory

Bin (4,170) Supply Chain

You use this granule to organize your warehouse by assigning items to bins, the smallest unit in the warehouse logical structure. The quantities on the bin are updated when posting inbound or outbound source documents or journals (item, item reclassification, physical inventory, output and consumption journals). The bin selection can either be Last Used or Fixed Bin. It is allowed to have mixed bin contents in the same bin. Once you have chosen to use a bin, it will be enforced on all involved item transactions. A service orders and job invoices are supported as source documents for the Bin offering. The bin contents can only be in Base UOM all transactions including UOM higher than base UOM converts the quantity to base UOM, several UOM is included in the 4,620, Warehouse Management Systems granule. The Bin granule is free when a customer purchases 4,620, the Warehouse Management Systems granule. Requirements: Multiple Locations

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Appendix A: Warehousing Granules Warehouse Management Systems (4,620) Supply Chain

An advanced granule, which gives you the ability to handle items on a bin level. You can receive and put-away items in a bin as well as pick items from a bin. Items are put-away according to a put-away template, and items are picked based on the (zone and) bin ranking. Items are moved between bins, either manually or based on replenishment feature for optimizing the space usage and the picking process. The WMS system creates directed movement, pick and put-away instructions based on the setup of the system. The data architecture of the WMS functionality is achieved through: • • • • • • •

Bin Zone Bin ranking Bin Type Bin contents to bin (reference to bin and bin content generator granules) Whse. Adjustment Bin, Warehouse Class Codes

The processes are supported through: • Put-away template • Cross-Dock • Movement, Pick and Put-away documents • Reference to internal Picks and Put-away (Warehouse instruction documents will be created for the pick and put-away process) • Whse. Item, Whse. Item reclassification. Whse. Physical Item Journals • Replenishment, Get Bin Contents, Split Line, Change UOM and Get Bin Contents features • Whse. Receipt and Whse. Shipment documents WMS is integrated with all area of NAV except: • • •

Service orders Job Items originated by the sub-contracting feature set in Manufacturing, items not in inventory (fixed assets, item charges, service items)

Granules 4,180 Put Away, 4,190 Warehouse Receipt, 4200 Pick, 4,210 Warehouse Shipment are recommended in order to effectively use 4,620 Warehouse Management Systems (these 4 granules are not included). Please note that customers get 4,170 Bin free when they buy this granule. Requirements: Basic Inventory, Multiple Locations

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Warehouse Management in Microsoft Dynamics® NAV 2009 Internal Picks and Put Aways (4,630)

Automated Data Capture System (4,640)

Bin Set-Up (4,660)

This granule allows you to create pick and put-away orders for internal purposes, without having a source document (such as a purchase order or a sales order). For instance, you can pick items for testing or put away production output. Warehouse instruction documents will be created, but using these orders does not require source documents. Automated Data Capture System With the Automated Data Capture System you can capture data automatically. It will be possible to keep data accurate, even in a hectic environment. This granule uses Application Server, and it supports some of the workflows in the new WMS that enables the automation of the warehouse. You use this granule to easily set up and maintain your bins. This is done by defining both the layout of your warehouse and dimensions of your racks, columns, and shelves. Furthermore, you use the granule to easily set up and maintain your planning parameters. This is done by defining the limitations and characteristics of each bin.

Related Granules Basic General Ledger (3,010)

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You use this granule to set up a company and post to the general ledger. The granule provides you with the basic facilities necessary for setting up a company and posting to the general ledger: chart of accounts, general journals, VAT facilities, recurring journals and source codes. It also includes facilities for internal and external reporting. The granule allows you to perform approval of sales and purchase documents. This requires any or all of the following granules depending on which documents you wish to approve: Sales Invoicing, Sales Order Management, Sales Return Order Management, Purchase Invoicing, Purchase Order Management, Purchase Return Order Management. The granule allows you to post and report in the company's base currency. If you also purchase the Multiple Currencies granule, you can post and report in an additional currency as well. The granule allows you to export data from any form to Word or Excel using Style sheets and to add links to external documents. The granule allows two languages from the beginning – the English US language and the native language for the particular country. The granule allows 1 instance of Application Server. This granule must always be included as part of the initial purchase of a solution because it includes 1 session and the first company.

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Appendix A: Warehousing Granules Basic Inventory (4,010)

Multiple Locations (4,040)

This granule is used to keep track of items and prices. It is usually used with Sales & Receivables and Purchases & Payables. The Basic Inventory granule includes the Microsoft Dynamics NAV item tables, item entries and item journals. With this granule, you can set up inventory items and post item transactions in journals. Basic Inventory is integrated with General Ledger and with the posting processes in Sales & Receivables and Purchases & Payables. This granule is also required for the configuration of all other Inventory granules. This feature provides basic functionality that allows the user to manage inventory in multiple locations. The feature is broad enough to include locations in plants or production facilities as well as distribution centers, warehouses and service cars.

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Appendix B: Terminology List

APPENDIX B: TERMINOLOGY LIST This appendix contains the terminology list for Warehouse Management Systems.

bin This is a physical storage unit that is used for placing and storing items. This can be anything from a small container box to an open space on a pallet rack. It is the smallest unit of the warehouse logical structure.

bin content This contains the contents within the bin, including the physical quantity of items in the bin, as well as information about volume and status (e.g. defective). Bin content is the basis for the pick and put-away creation in the program.

bin ranking This is a measure for prioritizing replenishment movements. This indicates which bin should be replenished first. A bin with a high bin ranking number has a higher priority than one of a lower number.

bin replenishment This involves relocating material from a bulk storage area to an order pick storage area, and documenting this relocation. This assures that the proper quantity of items is maintained for the bin so that the performance of the warehouse is kept at an optimum level.

bin type This is a classification for the type of activity that is performed from a particular bin. For example, a bin that has the bin type “receiving,” should contain only items that have been received into the warehouse but have not been put away. Some examples of bin types are receiving, shipping, picking, and put-away.

breakbulk This means to break large unit of measure down to a lower unit of measure during the picking process in order to fulfill the correct quantity for the picking order.

cross-dock This means to move items directly from the receiving area to the shipping area, thereby minimizing handling and storage and allowing sales orders to be shipped sooner. Noun and adjective form: cross-dock

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Warehouse Management in Microsoft Dynamics® NAV 2009 cycle counting This is an inventory accuracy audit technique where inventory is counted on a cyclic schedule rather than once a year. A cycle inventory count is usually taken on a regular defined basis (often more frequently for high-value or fast-moving items and less frequently for low-value or slow-moving items). Most effective cycle counting systems require the counting of a certain number of items every workday with each item counted at a prescribed frequency.

delivery note This is a note that accompanies a shipment and that lists the items in the shipment. Synonyms: advice note, accompanying note, dispatch note, covering note

expected receipt date This is the date, calculated by the program, on which an inbound item will be available for picking.

expiration date This is the last date that the items can be used. This date is mainly used for perishable items, such as produce that is not useable after a certain date.

FEFO method First-Expired-First-Out (FEFO) is a method for selecting which items to pick first from inventory, by which the program prioritizes items with the earliest expiration dates to be picked first.

fixed bin This is a bin that is dedicated to hold only a specific pre-determined item or type of item. This type of bin is not used as a floating bin.

floating bin This pertains to any bin that is not fixed to store a specific item or type of item and is used to store items as they come into the warehouse.

inventory This includes items held in a store or a warehouse and purchased for resale, items used to support production (raw materials and work-in-process), and items for maintenance activities (including repair and operating supplies). The program calculates inventory as the quantity of an item available in inventory.

item This is a manufactured or purchased article, product, part, or material that is part of inventory. If a company has several locations, it stores inventory control information about items or item variants at a particular location in the stockkeeping unit for that item or item variant at that location.

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Appendix B: Terminology List lead time calculation In relation to the purchase order, this is the time necessary for the vendor to deliver the items after the order is placed. Concerning items, this is the amount of time necessary for replenishing the item.

location This is a physical structure or place where inventory is received, stored, and shipped. A location can be a warehouse, service car, showroom, plant, or area within a plant.

lot number This is an item parameter which is used in item tracking.

movement This is items traffic from one specific place to another. Bins are considered to be the starting and the destination places.

negative adjustment This refers to a reduction in inventory that is not due to a sale.

order date This is the date on which the vendor must ship the items in order to meet the planned receipt date.

physical inventory This is the determination of inventory quantity by the counting of items, which is performed on a continuous, periodic, or annual basis.

pick This means to physically withdraw from inventory items to be shipped or components of items to be assembled and shipped. There are two types of picks: inventory pick and warehouse pick.

positive adjustment This refers to an increase in inventory that is not due to a purchase.

put away This means to remove the item from the receiving area, transport it to a specific location in a storage area, and record the movement and the exact location of the item. There two types of put-aways: inventory put-away and warehouse putaway. Noun and adjective form: put-away

put-away template This is a form in the application that is used to set up the parameters that the program uses during the put-away process. Multiple templates may be entered and assigned for use by the location or by the item.

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Warehouse Management in Microsoft Dynamics® NAV 2009 receipt This is the physical acceptance of an item at a location. A warehouse person immediately registers the receipt of an item in the program, but the item is not a part of available to pick inventory until it has been put away.

receiving This is a function encompassing the physical receipt of items, the inspection of the items for conformance to the purchase order (quantity and damage), the putting away of the items, and the preparation of the receiving report.

register This means to make an entry in a register that is not an item or value ledger.

release This means to send a document to the next stage of processing without posting the document. You cannot change information on a released document unless you reopen the document. Example: You can release a sales order to the warehouse. The order is then among the source documents from which the warehouse can retrieve lines to be assigned, picked, and shipped.

reservation This is the designation of a quantity of inventory on a purchase order for a specific sales order or production schedule.

shipment Physical shipping of the items. In order to handle outbound request, the source document must be released, and the warehouse personnel will get the request to initiate the shipping process.

shipment date This refers to the date a shipment leaves your location for delivery to a customer, either with a shipping agent or your own means of transportation.

serial number This is an item parameter which is used by the program for tracking items.

source document This is the original evidence of a transaction that supports journal entries in the accounting system. Example: Vouchers and contracts, but also internal documents that create journal entries, such as a sales, transfer, or purchase order or an internal freight charge.

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Appendix B: Terminology List transfer order This is an order to move items from one location to another.

warehouse Abbreviation: whse. This is a building or part of a building where items are received, stored, and shipped. As such, it is a particular kind of location. Synonyms: distribution center, branch warehouse, field warehouse

warehouse activity This refers to an activity in the Warehouse Management application area. Each activity has its own menu item.

warehouse adjustment This is the process of adjusting bin content records. A negative adjustment decreases the quantity of items in the bin. A positive adjustment increases the quantity of items in the bin.

warehouse class This is the categorization of items, zones, and bins according to special conditions or special equipment that are required for the storage of items. Examples of warehouse classes can be frozen, dry, and hazardous.

warehouse receipt This is the physical acceptance and recording in the program of an item arriving into a warehouse location.

warehouse shipment This refers to the act of shipping items from a warehouse location and recording the shipment in the program.

zone This is a continuous area within a warehouse location that is usually distinguished from adjoining areas by the function for which it is used.

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