This post is a high-level overview of Microsoft Dynamics 365 Business Central (D365BC) inventory capabilities. If you have specific questions and would like to know if the system can fully address your business needs, contact us.
To learn more about D365BC, including its financial reporting and budgeting capabilities, the industries and sectors it serves, its license types and their prices; to familiarize with the implementation process and estimate implementation cost, visit the corresponding page or hire a consultant.
+ GENERAL
- Standard Texts: unlimited character count for Item Description.
- Types: Inventory (e.g. hammer), Service (e.g. cleaning), Non-Inventory (e.g. nails).
- Categories: use Categories and Subcategories to divide your inventory into groups.
- Prevent Negative: allow (e.g. to sell before receiving for a quick turnaround) or disallow (for a strict control) negative inventory.
- Block: block any Items temporarily or permanently to review and to prevent usage.
- Comments: unlimited Comments by date for each Item.
- Image: add the image of the Item, a logo or technical drawings.
- Attachments: attach a document (e.g. instructions to use) or Web links (e.g. to your company SharePoint or website).
- Posting Groups: it is possible to use different sets of G/L Accounts for the same Item, depending on different Locations, Vendors and Customers.
- Vendor No.: store and use Item Vendor No. on Purchase Orders for Vendors’ convenience and your own Item No. for sales.
- Inventory Periods: these enhance control over inventory (e.g. to align with Accounting Periods).
- Adjustments: it is possible to correct or adjust any inventory aspect, including quantities, Locations, cost, etc. – all with a clear and automatic record tracking in the system.
- Transactions: inventory can be used on sales (Quote, Order, Invoice, Credit Memo), purchase (Quote, Order, Invoice, Credit Memo), external or internal project (Job) and intercompany transactions.
- Sorting & filtering: sort and filter your inventory as in Excel, including multiple Filters at the same time.
+ COSTING & PRICING
- Costing Methods: Average, FIFO, LIFO, Specific (with S/N and Lot No.), Standard.
- Last Direct Cost: the system remembers the last cost on a Purchase Order and suggests it on the next one.
- Expected Cost: let the system post expected cost based on the previous purchase upon receiving Items (before the related invoice is available).
- Automatic Cost Adjustment: keep your Average Cost always accurate.
- Item Charge: record freight on the same Purchase Order or on a different one (can be from a different Vendor) and keep the average cost still accurate at any time, automatically.
- UOM: create your own unlimited units of measure (UOM) and use it for all transactions OR purchase in one unit of measure (e.g. pellet), store in another one (e.g. box) and sell in yet another one (e.g. each).
- Special Pricing: set sales campaigns, discounts per Customer Groups, etc.
+ ATTRIBUTES
- Option: predefine the options that Users can use to assign to different Items (e.g. “Colour” Option can have green, yellow, grey etc. (but not “gray”)).
- Text: allow Users to enter any text (e.g.with “Material” Text Users can type the required material as new materials become available).
- Decimal: only numbers (and note letters) are allowed (e.g. “Diameter” Decimal: 10, 20, etc.).
- Integer: use with UOM to provide whole (not fraction) numbers (e.g. “Specialist” Integer: 5 (tested by five specialists)).
- Date: only dates are allowed with this Attribute Type (e.g. “Tested On” Date: 2020-05-05).
- Items or Categories: assign Attributes to Items or Categories to group by and filter on them.
- Artificial Intelligence: upload an image into the system and let the system analyze and suggest the Attributes automatically.
+ PLANNING
- Forecasting: use Forecasts to predict inventory levels and to plan accordingly (e.g. based on seasonal variations).
- Reordering Policy: Fixed Reorder QTY; Maximum QTY; Order; Lot-for-Lot.
- Reservations: Optional, Never, Always.
- SKU & Variants: set up and use Stock Keeping Units and Variants to restock inventory timely (e.g. generate demand by Item by colour, by diameter, by material, etc.).
- Dampener Period: take into consideration, the additional time required by Vendors or your warehouse staff to handle an Item.
- Dampener Quantity: keep a few extra Items (if necessary), just in case to avoid running out of them.
- Safety Lead Time & Quantity: plan exactly how much inventory and time is required for the business to avoid overstocking or running out of inventory.
- Reorder Point & Quantity: plan at what point the system should suggest that more inventory is necessary and how many of those Items should be purchased (e.g. to obtain a discount or to fill the transportation vehicle fully).
- Order Modifiers: set additional parameters to be taken into account for proper planning.
- Automatic PO: make the system automatically calculate all the inventory that is required based on the set parameters and let it automatically generate Purchase Orders to replenish the levels accordingly.
+ MANUFACTURING
- Assembly BOM: define Assembly components and generate Assembly Orders (or use the “Assemble-to-Order” function for ad hoc assemblies that you do not keep in stock till an order from a Customer is received).
- Production BOM: define BOM components that are required to build a product.
- Multi-level BOMs: it is possible to define BOMs that include other BOMs as components.
- Multiple Versions: it is possible to keep multiple Versions of Production BOMs.
- Routes: use Routes to define the manufacturing process.
- MRP: run the material requirements planning function and let the system suggest and carry out the action to satisfy the calculated demand.
- MPS: run the master production schedule function and let the system suggest and carry out the suggested action.
- Substitutes: set up and use Item Substitutes to fulfill an order.
+ WAREHOUSE
- Locations: use a variety of Locations, including regular ones, In-Transit, quarantine, etc.
- Bins: define Bin Policies and make Bins mandatory in a given Location.
- Shelf: use Shelves to help easily find inventory in a Bin or warehouse.
- Receive: if desired, require Receive.
- Shipment: if necessary, require Shipment.
- Put-away: if beneficial, require Put-away.
- Pick: if useful, require Pick.
- Cross-Docking: (dis)allow Cross-Docking and define the Due Date Calculation.
- Calendar: if you would like to, use Base or Customized Calendar.
- S/N: make certain Items require a serial number on all or defined (e.g purchase, but not sale) transactions – this feature can be combined with lot numbers or be used separately.
- Lot: define on which transactions lot numbers are mandatory or make them mandatory on all transactions; set expiry dates on certain (or all) Lots; you can also combine lot numbers with serial numbers (or use lot numbers separately).
+ REPORTING
- Inventory Count: count it by any level of detail, incl. by Location by S/N and Lot. No.; divide your inventory and assign different pieces to different Users.
- Quantities: see the available quantities by Location, Period, Variant, Event, BOM Level, UOM.
- Item/Vendor Catalogue: see Item costs and lead time by Vendor and their Item No.
- OOB: use one of the available out-of-the-box reports.
- Custom: build your own reports using the system tools (e.g. Sales Analysis, Purchase Analysis, Inventory Analysis).
- Entries: use Item Ledger and Value Entries for detailed history about an Item.
- Export: export to Excel or PDF for sharing with external stakeholders or view your reports on the screen without exporting.
- PowerBI: D365BC integrates with PowerBI for data dashboards which can be used separately or displayed right in D365BC or Teams.
D365BC is rich in inventory features and even more new features are added regularly. If you would like to discuss your business objectives and achieve them, hire a consultant.