Business Central Inventory & Stock Management Overview:
Item Catalog:
- Item Setup: Define and manage a detailed list of all inventory items, including product specifications, images, and related documents.
- Item Variants: Handle different versions of a product, such as various sizes or colors, each with its own SKU.
- Item Attributes: Assign attributes like size, color, or material to items for better classification and filtering.
- Non-Stock Items: Manage items that are ordered as needed and not kept in regular inventory, such as drop-shipped items.
Inventory Levels and Stock Keeping:
- Stock Levels: Real-time visibility into current inventory levels, helping to prevent stockouts or overstock situations.
- Multiple Locations: Manage stock across various warehouses or bins, each with its own inventory levels and reorder policies.
- Bin Setup: Define specific bin locations within a warehouse for optimized storage and retrieval processes.
- Lot and Serial Number Tracking: Track inventory at the lot or serial number level for enhanced traceability and recall management.
Purchasing and Receiving:
- Purchase Orders: Generate and manage purchase orders to replenish inventory based on demand or reorder policies.
- Goods Receipt: Record the receipt of goods into inventory, updating stock levels and valuations.
- Vendor Management: Maintain comprehensive records of suppliers, including contact information, pricing agreements, and performance history.
- Purchase Invoicing: Manage and reconcile supplier invoices, ensuring accurate cost recording and payment processing.
Sales and Shipping:
- Sales Orders: Create and manage sales orders, with the ability to reserve specific inventory for customers.
- Order Fulfillment: Efficiently pick, pack, and ship orders based on customer requirements and inventory availability.
- Shipping: Generate necessary shipping documents and manage the logistics of getting products to customers.
- Customer Returns: Process returns from customers, adjusting inventory levels and valuations as necessary.
Inventory Valuation and Costing:
- Standard Costing: Establish and manage standard costs for inventory items, providing a baseline for valuation and profitability analysis.
- FIFO, LIFO, and Average Costing: Choose from various inventory costing methods to suit your accounting and business needs.
- Cost Adjustments: Make manual or automatic adjustments to inventory values to account for variances, damages, or other factors.
- Inventory Valuation Reports: Access a range of reports to analyze inventory values, cost of goods sold, and other key financial metrics.
Inventory Transfers and Movements:
- Transfer Orders: Initiate and manage the transfer of inventory between different locations or bins.
- Internal Movements: Control and document the movement of stock within a single location, ensuring accurate stock placement.
Demand Forecasting and Planning:
- Sales and Inventory Forecasting: Utilize historical sales and inventory data to predict future demand and optimize stock levels.
- Reorder Policies: Implement automatic reorder points and preferred stock levels to streamline the replenishment process.
- Planning Worksheets: Use planning worksheets to consolidate demand forecasts, sales orders, and stock levels for efficient purchasing and transfer planning.
Inventory Analysis and Reporting:
- Stock Keeping Unit (SKU) Management: Manage inventory at the SKU level, allowing for granular analysis and reporting.
- Inventory Performance Reports: Generate detailed reports on inventory turnover, aging, and other performance indicators.
- ABC Classification: Classify inventory items based on their value and sales velocity, helping to prioritize management focus.
Quality Control and Returns:
- Quality Control: Implement and manage quality control processes to ensure inventory meets required standards.
- Vendor Returns: Handle the return of items to suppliers due to defects, excess stock, or other issues.
- Customer Returns: Manage returns from customers, including warranty returns, and ensure proper stock adjustments.
Integration with Other Modules:
- Seamlessly integrate inventory management with other Business Central modules, such as Purchasing, Sales, Manufacturing, and Finance, for a comprehensive and unified approach to business management.
How does Business Central handle different inventory items and variants?
Business Central allows you to create a detailed item catalog, defining each inventory item with specific attributes. For products that come in various versions, such as different sizes or colors, you can use the Item Variants feature to manage these different versions under the same item card.
Can I track inventory across multiple locations?
Yes, Business Central supports multi-location inventory management. You can define multiple warehouses and bin locations, allowing you to track the quantity and value of inventory across different locations.
How does Business Central assist with reordering inventory?
Business Central provides reorder policies and planning worksheets to help automate the replenishment process. You can set reorder points, maximum and minimum inventory levels, and preferred stock levels to ensure you have the right amount of inventory on hand.
Is it possible to track inventory using serial or lot numbers?
Yes, Business Central supports serial and lot number tracking, providing full traceability of inventory items from purchase to sale. This is especially useful for businesses that need to track warranty or recall information.
How does Business Central handle inventory costing and valuation?
Business Central offers various inventory costing methods, including FIFO, LIFO, and Average Cost. You can define standard costs for items, and the system will automatically update inventory values based on purchases and sales. Additionally, you can perform cost adjustments as needed.
Can I manage non-stock items in Business Central?
Yes, Business Central allows you to manage non-stock items, which are items that you sell but do not keep in inventory. You can include non-stock items on sales and purchase documents, and the system will handle them appropriately.
How does Business Central support inventory analysis and reporting?
Business Central provides a range of inventory analysis and reporting tools, including inventory performance reports, ABC classification, and SKU management. These tools help you gain insights into inventory turnover, stock levels, and other key performance indicators.
Can I integrate Business Central’s inventory management with other systems?
Yes, Business Central offers robust integration capabilities, allowing you to connect with other systems and applications. This ensures seamless data flow and consistency across different areas of your business.
How does Business Central handle inventory transfers and movements?
Business Central allows you to create transfer orders for moving inventory between locations. Additionally, you can manage internal movements within a location, ensuring accurate stock placement and retrieval.
Does Business Central support drop-shipping and special orders?
Yes, Business Central supports drop-shipping, where items are shipped directly from the vendor to the customer. You can also handle special orders, linking sales orders to specific purchase orders.
How does Business Central manage returns from customers and to vendors?
Business Central provides functionalities to manage returns from customers, including handling of replacement items or refunds. Additionally, you can manage returns to vendors, ensuring accurate adjustment of inventory levels and values.
Can I access inventory information on the go?
Yes, Business Central offers a mobile app that allows you to access inventory information and perform tasks from your iOS, Android, or Windows device.
How does Business Central ensure the accuracy of inventory data?
Business Central provides real-time inventory tracking, ensuring that inventory data is always up to date. Additionally, the system includes audit trails and validation checks to maintain data integrity.
Can I use barcode scanning with Business Central for inventory management?
Yes, Business Central supports barcode scanning, which can be used for various inventory management tasks such as receiving goods, picking items for sales orders, and performing physical inventory counts.
How does Business Central handle inventory adjustments and write-offs?
Business Central allows you to make inventory adjustments to correct discrepancies, write off damaged or obsolete inventory, and adjust inventory values as needed.
