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Microsoft Dynamics Business Central :

Warehouse management Terminologies

Term Meaning
Warehouse A physical location or structure used to store inventory. In Business Central, you can set up multiple warehouses (called Locations).
Location A specific site or warehouse where inventory is stored. You can configure each location differently (with or without warehouse processes like picks and put-aways).
Bin A specific storage space within a warehouse (e.g., a shelf, rack, or pallet space). You can define bins for more detailed inventory tracking.
Bin Content Defines what items and how much quantity is stored in each bin.
Warehouse Receipt A document used to record the receipt of items from a Purchase Order into the warehouse (before they are added to inventory officially).
Warehouse Shipment A document used to prepare and manage shipping of items to customers.
Put-away The process of moving received goods to their assigned bins in the warehouse.
Pick The process of collecting items from bins for shipment or internal use.
Internal Pick A pick created for internal operations like production or transfers, not necessarily for external shipment.
Internal Put-away A put-away created internally, for example after production or returns.
Directed Put-away and Pick A setting in Business Central that forces users to follow the warehouse’s guidance for where to put away or pick items (high control).
Warehouse Put-away A more controlled method to organize and record the placement of incoming inventory.
Warehouse Pick A document used when picking items from inventory for shipment or internal movement.
Movement The transfer of inventory between bins inside the same location (no shipping involved).
Warehouse Movement A document for handling movement tasks, particularly when Directed Put-away and Pick is used.
Cross-Docking Moving received items directly to shipping without putting them away into storage first.
Inventory Put-away A simpler method (used when warehouse management is light) to register incoming goods and their storage.
Inventory Pick A simpler method to pick goods when full warehouse management is not enabled.
Whse. Activity Line Lines on warehouse documents (like Pick or Put-away) that define specific actions: item, quantity, bin, etc.
Warehouse Worksheet A planning tool that helps create warehouse documents (e.g., create picks or put-aways in bulk).
Warehouse Journal Used for manual adjustments, like correcting bin contents, posting movements, or counting inventory.
Physical Inventory A full count and reconciliation of items in the warehouse, typically during audits or year-end.
Cycle Counting

An ongoing counting process that allows you to count a few items regularly instead of doing a full physical inventory at once.

Key Concepts in Business Central’s Warehouse Setup

  • Simple Warehouse: You can run basic warehouse tasks using Inventory Picks and Inventory Put-aways (good for small businesses).

  • Advanced Warehouse (Directed Put-away and Pick): Required when you want strict control of every bin movement — you’ll use Warehouse Picks, Warehouse Put-aways, and Movements.

  • Bin Mandatory: A location setting that requires users to always specify bins when moving or handling items.

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