chapter 3: warehouse management · 2016. 9. 12. · microsoft dynamics nav 2009 sp1 contains a wms...

Chapter 3: Warehouse Management

3-1

CHAPTER 3: WAREHOUSE MANAGEMENT Objectives

The objectives are:

• Review the changes in warehouse management granules. • Use multiple units of measure (UOM) and the UOM conversion

factor in warehouse management.

Introduction Microsoft Dynamics® NAV 2009 Service Pack 1 (SP1) provides application improvements in the warehouse management (WMS) module, to address customer and partner requests in the following areas:

• Warehouse granularity • Multiple units of measure

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

What's New in Microsoft Dynamics® NAV 2009 Service Pack 1 - Application

3-2

Warehouse Granularity By using WMS, you can organize and handle the items in inventory on a bin level. Depending on your setup and the granules specified in your license, you can receive items and put them away in bins, pick and ship from bins, and move items between bins.

The granularity in the warehouse offering is an important characteristic of the warehouse feature, with five separate granules and a potential of 121 available combinations.

Flexibility of choice supports the concept that the warehouse offering in Microsoft Dynamics NAV can fit your business requirement and the granularity enables the system to grow with the company.

A growing number of customers, who were using this flexibility, were using some unexpected combinations and additional development was necessary to combine the usage of those, for example;

• A combination of all warehouse features except direct pick and put-away (a manual WMS).

• A simple combination with inventory pick or put-away without bin.

Combination with All WMS Features Except Direct Pick and Put-Away

Microsoft Dynamics NAV 2009 SP1 contains a WMS granule that is a combination of all WMS features except direct pick and put-away (a manual WMS), that is used frequently at installation before switching completely to a full-fledged WMS.

Some improvements to this granule are:

• Usage of the Item Journal is blocked to avoid users creating inconsistent data. An item can only enter the ledgers when it is created through the Warehouse Item Journal.

• The Qty Handled and Qty Outstanding fields on the Pick worksheet are working correctly.

• Quantities available to pick include the reserved quantities on the Put-Away or Pick document that are not yet registered, in addition to reserved quantities on shipment bins that are not yet shipped.

Combination with Inventory Pick or Put-Away Without Bin

Microsoft Dynamics NAV 2009 SP1 contains a WMS granule that is a combination with inventory pick or put-away without bin.



3-3

Some improvements to this granule are listed here:

• The user is not allowed to create an inventory pick for a source document that is not yet released.

• The Shipment Agent Code, Shipment Agent Service Code and Shipment Method Code fields are included on the lines of the inventory pick.

Multiple Units of Measure In Microsoft Dynamics NAV 2009 SP1, the warehousing multiple units of measure (UOM) calculation is aligned to the same pattern as Inventory.

Multiple UOM enables a company to, for example, purchase an item in tons, store it in kilos and sell it in meters. The quantities in the company's inventory and warehouse will be synchronized and consistent at all times. Therefore, a user can calculate the availability of goods when shifting UOM. This gives companies better flexibility, because they can change the unit of measure dynamically.

Changes in Multiple UOM for WMS

The multiple UOM functionality in Inventory (Item Ledger based) and WMS (Warehouse Ledger based) behaved differently in Microsoft Dynamics NAV 2009.

Alternatively, the Inventory UOM always converted quantities based on the base UOM and presented the quantity to the user on a form relevant to the UOM of that form: the UOM of the Warehouse Ledger was based on the UOM of the bin contents that was stored in various UOM.

Rounding issues were more difficult to resolve in the WMS environment than in the Inventory environment, and if a user changed the UOM while carrying stock of the item, a manual adjustment of the difference of inventory (for all bin contents) was required. These adjustments were error prone, because the user had little capability of seeing the rounded value.

In Microsoft Dynamics NAV 2009 SP1 the UOM design in WMS and Inventory are aligned, and Qty (base) fields are added to all WMS processes to view the base UOM at all times.

The need for manual adjustments to handle rounding residuals is reduced significantly, because specific warehouse rounding issues, originating from handling UOM differently than in Inventory, are eliminated. Additionally, the developer and implementer roles have one principle of multiple UOM and this makes the system more straightforward to build applications upon.

In Lab 3.1, you will run through a process of how to change the UOM while carrying stock. This process might have been more error-prone in earlier versions.



3-4

Lab 3.1 - Create and Use Multiple UOM in WMS CRONUS International Ltd. is handling a new item that is named "steel rod". The steel rod will be used as legs for tables. It is purchased, sold and stored in different UOM.

Scenario

By using the Shipping and Receiving - WMS profile in the RoleTailored Client, you will create a UOM conversion factor, and apply it to a new item.

To perform the pick and put-away scenarios, you must set up the ADMINISTRATOR User ID in the Warehouse Employees page, for Location Code WHITE, and set it to the default value.

You will then purchase, receive, put-away and pick the steel rod. Then, you will examine the Warehouse Register, Item Register, and Bin Contents pages to view the transactions.

Finally, you will update the UOM conversion factor and see the effect that it has on the transactions, and then create a new sales order to view the unit of measure calculation.

This lab consists of the following exercises:

• Update the default role center. • Set up the warehouse employee. • Create the steel rod item, and set up UOM conversion factors. • Create a purchase order and put-away. • Create a sales order, pick and then view transactions. • Change the UOM conversion factor, view transactions and then

create a sales order.

Challenge Yourself: Update the Default Role Center

Update the RoleTailored Client to the Shipping and Receiving - WMS profile, and restart Microsoft Dynamics NAV.

Need a Little Help?

1. Open Departments, Administration, RoleTailored Client, and then Profiles to find the RoleTailored Profiles.

2. Restart Microsoft Dynamics NAV to enforce the updated role center profile.



3-5

Step by Step: Update the Default Role Center

To change the RoleTailored Client to the Shipping and Receiving - WMS profile, follow these steps:

1. Open Departments, Administration, RoleTailored Client, and then Profiles.

2. Double-click the SHIPPING AND RECEIVING-WMS Profile ID, select the Default Role Center check box, and then click OK.

3. Close Microsoft Dynamics NAV. 4. Open Microsoft Dynamics NAV and verify that the Home menu

resembles the following image.

FIGURE 3.1 SHIPPING AND RECEIVING - WMS ROLE CENTER

Challenge Yourself: Set Up the Warehouse Employee

Set up ADMINISTRATOR as warehouse employee for the location WHITE, and set it to the default value.

Need a Little Help?

Open Departments, Warehouse, Administration, and then Warehouse Employees to set up the warehouse employee.



3-6

Step by Step: Set Up the Warehouse Employee

To set up ADMINISTRATOR in the Warehouse employee page, follow these steps:

1. Open Departments, Warehouse, Administration, and then Warehouse Employees.

2. Click the arrow in the User ID field and then click OK to select ADMINISTRATOR.

3. Select WHITE in the Location Code field. 4. Select the Default check box and then click OK to close the

Warehouse Employees page.

Challenge Yourself: Create the steel Rod Item and Set Up UOM Conversion Factors

Create the new item steel rod, by using the specifications in the following table.

Field name Value

Base Unit of Measure KG

Purch. Unit of Measure TON

Put-Away Unit of Measure TON

Sales unit of measure MTR (1 mtr. = 3.55 kg)

Item Category Code FURNITURE

Product Group Code TABLE

Need a Little Help?

Click Reference Data to open the Items Card and create the new item.

Step by Step: Create the Steel Rod Item and Set Up UOM Conversion Factors

To create the new item steel rod, and set up the UOM, follow these steps.

1. Click Reference Data to open the Items Card. 2. Click New to create a new item. 3. Type "Steel rod" in the Description field, and notice that the No.

field is populated automatically with 70061.

NOTE: The No. field may have a different number if other items are created in the company before this lab. If that is the case, then use that item number in the rest of this lab instead of 70061.



3-7

4. Click the arrow in the Base Unit of Measure field, and then click New to open the Item Units of measure page.

5. Select KG in the Code field and then click OK. 6. Select FURNITURE in the Item Category Code field. 7. Select TABLE in the Product Group Code field. 8. Expand the Invoicing tab and then click the arrow in the Sales Unit

of Measure field. 9. Click New to open the Item Units of Measure page. 10. Click the arrow in the Code field and then click New to create a new

Unit of Measure code. 11. Type "MTR" in the Code field and then type "Meter" in the

Description field. 12. Click OK. 13. Type "3.55" in the Qty. per Unit of Measure field next to the MTR

code, and then click OK. 14. Expand the Replenishment tab, and then click the arrow in the

Purch. Unit of Measure field. 15. Click New to open the Item Units of measure page. 16. Click the arrow in the Code field and then click New to create a new

Unit of Measure code. 17. Type "TON" in the Code field, type "Ton" in the Description field,

and then click OK. 18. Type "1000" in the Qty. per Unit of Measure field next to the TON

code, and then click OK. 19. Expand the Warehouse tab and then select TON in the Put-away

Unit of Measure Code field. 20. Click OK to save and close the steel rod item.

Challenge Yourself: Create a Purchase Order and Put-Away

Create a purchase order and the put-away transactions for the steel rod in the scenario.

1. Purchase two tons of steel rod from vendor 01587796. Use the Location code WHITE, and then release the purchase order.

2. Create the warehouse receipt and then post it. 3. Perform a put-away of the two tons steel rod, and then note the Qty.

(base) field.

Need a Little Help?

1. Open Home and then Purchase orders to create a purchase order. 2. Release the purchase order before you create the warehouse receipt.



3-8

3. Click Actions, Functions, and then Create Whse.Receipt in the purchase order to create a warehouse receipt.

4. Open Home and then Put-away to perform the put-away.

Step by Step: Create a Purchase Order and Put-Away

To create the purchase order for two tons of steel rod and perform the put-away, follow these steps:

1. Open Home, Purchase orders and then click New to create a new purchase order.

2. Complete the fields by using the values that are shown in the following table:

Field name Value

Buy-from Vendor No. 01587796

Type Item

No. 70061 (steel rod)

Location Code WHITE

Quantity 2

Unit of Measure Code TON

3. Click Release, and then verify that the Status is now Released. 4. Click Actions, Functions and then Create Whse.Receipt, and then

click OK in the page that informs that the warehouse receipt header is created. The Warehouse Receipt page is now open.

5. Verify that the Qty. to Receive is 2, and the Qty. per Unit of Measure is 1,000.

6. Click Post Receipt and then click Yes to post the receipt. 7. Click OK in the information page. 8. Click OK to close the purchase order. 9. Open Home and then Put-away and double-click the line where

Location Code is WHITE to open the Warehouse Put-away page. 10. Right-click the column header in the Lines section and select

Choose Columns to add the following columns: a. Action Type b. Location Code c. Zone Code d. Bin Code e. Qty. (Base)



3-9

11. Click OK and then verify the following field values on the first line:

Field Value

Qty. to Handle 2

Unit of Measure TON

Action Type Take

Zone Code Receive

Qty. Base 2,000

12. Verify that the second line has the Action Type Place. 13. Click Register Put-away and then click Yes to register the put-

away.

Challenge Yourself: Create a Sales Order, Pick, and then View Transactions

Create a sales order and pick for the steel rod, and then examine the transactions.

1. Create a sales order for customer 60000, for 15 meters and note the availability qty. of the steel rod.

2. Create a warehouse shipment for the sales order. 3. Pick the sales order quantity. 4. View the Warehouse Register and add columns to view the base

UOM and Location Code. 5. View the Item Register. 6. View the Bin Contents page, and add the Qty. per Unit of Measure

and Unit of Measure Code columns.

Need a Little Help?

1. Open Home and then Sales orders to create a sales order. 2. Release the sales order before you create the warehouse shipment. 3. Click Actions, Functions, and then Create Whse. Shipment to

create the warehouse shipment. 4. Click Actions, Functions, and then Create Pick in the warehouse

shipment page to create the pick. 5. Open Home and then Picks to register the pick. 6. Open Departments, Warehouse, History, and Warehouse

Registers to view the Warehouse Register. 7. Open Departments, Warehouse, History, and Item Registers to

view the Item Register. 8. Open Home and then Bin Contents to view the Bin Contents page.



3-10

Step by Step: Create the Sales Order, Pick, and then View Transactions

To create the sales order for 15 meters of steel rods, and pick them, follow these steps.

1. Open Home and then Sales orders and then click New to create a new sales order.

2. Select 60000 in the Sell-to Customer No. field. 3. Select Item in the Type field. 4. Select 70061 in the No. field, for the steel rod, and then TAB to the

Location Code field. 5. Verify that the Location Code is WHITE. 6. Type 15 in the Quantity field, and then press ENTER. 7. Verify that the Unit of Measure Code is MTR. 8. Verify that Availability in the Sales Line Details section, in the

right pane, is 1,946.75

CALCULATION: The availability is calculated as follows: Inventory on-hand (2 tons = 2,000 kg) - sales order quantity (15 mtrs. x 3.55 kg) = 2,000kg - 53.25kg = 1.946.75 kg. Kilogram (kg) is the steel rod's base unit of measure.

9. Click Release and verify that the Status is now Released. 10. Click Actions, Functions, and then Create Whse. Shipment and

then click OK that the warehouse shipment header is created. 11. In the Warehouse Shipment page, verify that Quantity is 15, and

Qty. per Unit of Measure is 3.55. 12. Click Actions, Functions, and then Create Pick. 13. Select ADMINISTRATOR in the Assigned User ID field. 14. Clear the Do Not Fill Qty. to Handle check box, and then click OK. 15. Click OK in the page that notes that the pick activity is created. 16. Click OK to close the Warehouse Shipment page, and then close

the Sales Order page. 17. Open Home and then Picks and double-click the picking list that has

Location Code WHITE to open the Warehouse Pick page. 18. Click Register Pick, and then click Yes to register the Pick

Document.



3-11

To view the Warehouse Register for the item steel rod, follow these steps:

1. Open Departments, Warehouse, History, and then Warehouse Registers.

2. Click the link in the From Entry field on the line where Source Code is WHPICK and User ID is ADMINISTRATOR, and then click Advanced.

3. Right-click the column header and select Choose Columns. 4. Add the following columns:

a. Qty. (Base) b. Qty. per Unit of Measure c. Location Code

5. Click OK, and then click OK in the information page about the activation of the personalization.

6. Click OK in the Warehouse Entries page. 7. Perform step two again to see the page that has the updated columns. 8. Investigate the Quantity, Unit of Measure Code, Quantity per

Unit of Measure, and Qty. (Base) fields for the lines with Bin Code W-04-0001. (Other values may vary from the screen shot).

FIGURE 3.2 WAREHOUSE ENTRIES PAGE

NOTE: The Warehouse Entries page shows the receipt of 2 tons, and then the pick of 1 ton (to convert to the sales unit MTR). This conversion is shown in the next line, where the Quantity field = 281.69014 MTR (1 ton x 1000 kg) / 3.55 mtr.).

When the Quantity is converted to MTR, the pick and shipment for the 15 meters is performed.

9. Close the Warehouse Entries page.



3-12

To view the Item Register for the item steel rod, follow these steps:

1. Open Departments, Warehouse, History, and then Item Registers. 2. Select the line where User ID is ADMINISTRATOR, and Source

Code is PURCHASES, and then click Item Ledger. 3. Right-click the column header and select Choose Columns. 4. Add the following column: Qty. per Unit of Measure 5. Click OK. 6. Verify that the selected line has the field values shown in the

following table:

Field name Value Item No. 70061

Quantity 2,000

Qty. per Unit of Measure 1,000

7. Close the Item Ledger Entries page.

To view the Bin Contents page, follow these steps:

1. Open Home and then Bin Contents. 2. Right-click the column header, and select Choose Columns. 3. Add the following columns:

a. Qty. per Unit of Measure b. Unit of Measure Code

4. Click OK. 5. Explore the values for the lines where Bin Code is W-04-0001 and

Item No. is 70061.

FIGURE 3.3 BIN CONTENTS

6. Verify that the Quantity field - where Bin Code is W-04-0001, Item No. is 70061, and Unit of Measure is MTR - is 266.69014.



3-13

CALCULATION: 266.69014 is the availability of the steel rod item in meters in bin W-04-0001, for the 1 ton that was converted to mtr. (1 ton x 1000 kg) - sales order (15 mtr x 3.55 kg) = 1000 - 53.25 = 946.75 kg (Quantity (Base) field) 946.75/3.55 = 266.69014

7. Verify that the Quantity field - where Bin Code is W-04-0001, Item No. is 70061, and Unit of Measure is TON - is 1.

Challenge Yourself: Change the UOM Conversion Factor, View Transactions, and then Create a Sales Order

Change the UOM conversion factor of the sales UOM for the item steel rod, and then create a sales order.

1. Change the UOM conversion factor of the Sales unit from 3.55 kg per mtr, to 4.20 kg per mtr.

2. View the Warehouse register. What happened to the values?

3. View the Bin Contents page. What happened to the Quantity value?

4. Create a sales order for customer 60000, for 1 meter and note the availability quantity of the steel rod before and after you type the quantity.

Need a Little Help?

1. Click Reference Data to open the Items Card. 2. Open the Sales Unit of Measure field to change the UOM

conversion factor for MTR to KG. 3. Open Departments, Warehouse, History, and Warehouse

Registers to view the Warehouse Register. 4. Open Home and then Bin Contents to open the Bin Contents page. 5. Note the Availability value of the Sales Line Details section before

and after you type the quantity of the sales order.

Step by Step: Change the UOM Conversion Factor, View Transactions, and then Create a Sales Order

To update the UOM conversion factor of the item steel rod, follow these steps:

1. Click Reference Data and scroll down to Item No. 70061, steel rod. 2. Double-click the line to open the Item Card. 3. Click the arrow in the Sales Unit of Measure field of the Invoicing

tab, and then click New.



3-14

4. Overwrite the existing value and type 4.20 in the Qty per Unit of Measure field for the MTR Code, and then click OK.

5. Close the Item Card.

To view the Warehouse Register, follow these steps:

1. Open Departments, Warehouse, History, and then Warehouse Registers.

2. Click the link in the From Entry field on the line where Source Code is WHPICK and User ID is ADMINISTRATOR, and then click Advanced.

3. Notice that the values for the lines with Bin Code W-04-0001 and Item nr. 70061 have not changed.

4. Close the Warehouse Entries page.

To view the Bin Contents page, follow these steps:

1. Open Home and then Bin Contents. 2. Explore the values for the lines where Bin Code is W-04-0001 and

Item No. is 70061.

FIGURE 3.4 BIN CONTENTS PAGE AFTER UOM CONVERSION UPDATE

3. Verify that the Quantity field - where Bin Code is W-04-0001, Item No. is 70061, and Unit of Measure is MTR - is 225.41667.

CALCULATION: 225.41667 is the availability of the steel rod item in meters, in bin W-04-0001, for the 1 ton that was converted to MTR. (1 ton x 1000 kg) - sales order (15 mtr x 3.55 kg) = 1000 - 53.25 = 946.75 kg (Quantity (Base) field) 946.75/4.20 (new UOM conversion factor) = 225.41667

In the period of transition where items received on the old UOM and are then changed to a new UOM conversion factor, the quantities will be tracked in the system according to the old UOM conversion factor. However, the items will be handled on inbound and outbound transactions in accordance with the new UOM conversion factor.



3-15

For example, the Qty. per Unit of Measure field on the Bin Contents, Whse. Shipment, and Whse. Pick pages will show the quantity for each UOM of the original quantity stored at the warehouse entries. When this entry is closed, meaning that there are no more items in the warehouse that can refer to the quantity, the new Qty. per Unit of Measure is used also by the warehouse documents.

To create a new sales order, follow these steps:

1. Click Home, and then Sales orders and then click New to create a new sales order.

2. Select 60000 in the Sell-to Customer No. field. 3. Select Item in the Type field. 4. Select 70061 in the No. field, for the steel rod, and then TAB to the

Location Code field. 5. Verify that the Location Code is WHITE. 6. Verify that Availability in the Sales Line Details section is 1,946.75

(this is unchanged from the status after the first sales order that you created).

7. Type "1" in the Quantity field. 8. Verify that the Unit of Measure Code is MTR. 9. Verify that Availability in the Sales Line Details section is now

1,942.55.

CALCULATION: The availability calculation is as follows:

Inventory on-hand (2 tons = 2,000 kg) - first sales order quantity (15mtr x 3.55 kg) - second sales order quantity (1mtr x 4.20 kg) = 2,000kg - 53.25kg - 4.20kg = 1.942.55 kg.

Kilogram (kg) is the steel rod's base UOM.

Summary Microsoft Dynamics NAV 2009 SP1 provides application improvements in the warehouse management module to improve customer and partner experience.

Warehouse Management described the improvements in warehouse granularity, and multiple UOM.

In addition, it included a hands-on lab to show how to work with multiple UOM in warehouse management.



3-16

Test Your Knowledge 1. If the UOM conversion factor for an item is changed after an inventory

transaction has occurred, how will the inventory transaction and the availability value of the item be affected?

( ) The inventory transaction and the availability value will be recalculated by using the changed UOM conversion factor.

( ) Neither the inventory transaction, nor the availability, will be recalculated until a new warehouse movement has occurred.

( ) The inventory transaction will not be recalculated. However, the availability will be recalculated by using the changed UOM conversion factor.

( ) The inventory transaction will be recalculated by using the changed UOM conversion factor, and the availability value will not be recalculated.

2. A UOM conversion factor is changed after an inventory transaction has occurred for an item with a location setup using a warehouse with directed pick and put-away. How will the Quantity, the Quantity(Base) and the Qty. per Unit of Measure fields be affected in the Bin Contents page, when the original bin content is part of the stock of that item?



3-17

Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter

1.

2.

3.



3-18

Solutions Test Your Knowledge

1. If the UOM conversion factor for an item is changed after an inventory transaction has occurred, how will the inventory transaction and the availability value of the item be affected?

( ) The inventory transaction and the availability value will be recalculated by using the changed UOM conversion factor.

( ) Neither the inventory transaction, nor the availability, will be recalculated until a new warehouse movement has occurred.

(•) The inventory transaction will not be recalculated. However, the availability will be recalculated by using the changed UOM conversion factor.

( ) The inventory transaction will be recalculated by using the changed UOM conversion factor, and the availability value will not be recalculated.

2. A UOM conversion factor is changed after an inventory transaction has occurred for an item with a location setup using a warehouse with directed pick and put-away. How will the Quantity, the Quantity(Base) and the Qty. per Unit of Measure fields be affected in the Bin Contents page, when the original bin content is part of the stock of that item?

MODEL ANSWER:

The Quantity field will be calculated based on the required Qty. (Base) value and the UOM conversion factor at the time of the last transaction before the change. The Qty. per Unit of Measure field will show the UOM conversion factor at the time of the last transaction before the change.


chapter 3: warehouse management · 2016. 9. 12. · microsoft dynamics nav 2009 sp1 contains a wms...

Documents