In Dynamics 365 Business Central, Projects and Inventory are built as two distinct but interconnected ledgers. This separation is intentional and reflects the different responsibilities each module carries.

Purchase returns represent a critical component of the procure-to-pay cycle in any business, serving as a mechanism to correct errors, handle defects, or manage over-deliveries while safeguarding cash flow and maintaining accurate inventory records. By processing returns effectively, organisations can ensure that their financial statements remain compliant with standards like GAAP or IFRS, prevent distortions in inventory costs, and foster stronger vendor relationships. The r

Inventory reservation is the process of setting aside a specific quantity of items for particular sales orders to avoid using that inventory for other orders. Business Central allows you to reserve items for specific demand types, such as sales, outbound transfer, assembly and production orders. You can reserve items that are in your inventory or that are expected to arrive via a purchase or a transfer order. Also, you can reserve stock for sales, taking from planned producti

Sales returns are inevitable in any business that sells products or services. They can be a hassle for both you and your customers, but they can also be an opportunity to improve customer satisfaction and loyalty. In this post, I will explain how to process sales return orders in Business Central to handle different scenarios. You will learn how to create sales return orders, copy data from other documents, generate return-related documents, and apply restock fees. Create Sal

When customers place a sales order order, they want to know when they can receive it. Business Central calculates a sales order shipment...

Drop shipments are movements of goods from a supplier to a customer that don't transit through a company's warehouse. Companies that trade physical goods often use drop shipments to reduce inventory and storage costs. In this post, I will show when to use drop shipments and the end-to-end process to manage them in Business Central. What are Drop Shipments and when to use them Before we start, it is essential to clarify that drop shipments differ from direct delivery. With dro

Cycle counting is an essential task for companies holding inventory in a warehouse. This method allows users to count inventory regularly to find and correct discrepancies. Cycle counting also allows companies to check inventory before the year-end, so they don't have to stop operating for a few days when it's time for a complete stock check. Business Central allows the setup of specific cycle counting codes to schedule cycle counting activities automatically. In this post, I

From a simple order shipped via courier to planning and consolidating multiple orders and wave picking, we can ship items in Business Central in many different ways and with different degrees of complexity. Whether you need to directly invoice sales documents or manage a complex warehouse, in this post, you will find all you need to know about how to ship items in Business Central. Business Central can handle complex shipping processes, and I will cover all the different scen

How to receive items using basic, advanced or no WMS. This article is a complete guide on how to receive items in Business Central. During my work as a supply chain consultant first and now as a Business Central consultant, I have helped many companies redesign their inbound processes. One of the first topics I discuss with my clients is how they receive items. Unlike other ERPs where there are set processes to receive items, there are many ways to receive items in Business C

Achieve complete traceability using Lot Numbers in Business Central. In this guide, I will cover the end-to-end process of creating,...

FEFO stands for first expire, first out, and it's a picking policy that allows Business Central to automatically select items with an early

In this post, I wrote about milk runs and how to use bin ranking to optimize picking activities in Business Central. Today, I want to highlight a risk you will face if the bin setup is not done correctly—the risk of losing optimal stock rotation. What is stock rotation, and why it's important Rotating stock means arranging the oldest items in the warehouse so they are sold before the newest. We rotate stock to reduce losses from deterioration and obsolescence. How to set up