How to Optimize Inventory Management in Dynamics 365 Business Central

Managing inventory efficiently is a critical challenge for many businesses. Issues such as inaccurate stock levels, inefficient transfer processes, and complex item variations can lead to operational inefficiencies, increased costs, and missed opportunities. Dynamics 365 Business Central offers robust solutions to address these challenges, providing powerful tools and features that streamline inventory management, enhance productivity, and improve overall business performance.?

In this month’s newsletter, you’ll learn:?

• How to Import Inventory Items: Discover how to effortlessly import inventory items into Dynamics 365 Business Central using configuration packages. Learn how to add images and create compelling marketing text with Copilot to enhance your inventory data.?

• Basic Inventory Transfers: Explore two effective methods for transferring inventory—using transfer orders and item reclassification journals. Understand the steps involved in shipping and receiving items, and how to utilize reporting and ledger entries to track inventory movements.?

• Using Item Variants for Matrix Inventory: Dive into the advanced capabilities of item variants to manage inventory with specific attributes like size and color. Learn how to set up variants, monitor availability, and handle purchasing and sales transactions with ease.?

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How to Import Inventory Items?

Configuration Packages?

Start off with a configuration package card you want to import inventory items from. Once opened, there are two tables, Item and Item Attribute Value Mapping. For table “Item”, select the fields that you want to include in the import from the tables in your card.?

To use Copilot to create marketing texts for you, select the " Item Attribute Value Mapping” table > Fields > Select the fields you want to import.?

To add default information for your new items into the system, use a Data Template. In this scenario, we are using “Faucets”. Select “Faucets” > search icon top right on menu. A configuration template will pull up with the items that identified and one of the things we added to the standard template is to identify the category code for all the new items which in this case are “faucets”.?

Once the tables are identified, you can create a template for importing just by exporting it to?Excel. Here’s the Excel file that was created by the configuration which shows the items and items attributes:?

To use this as a template, remove the information on both sheets for example: ?

Next, you can add information into this template and then import into Business Central. This is what the completed template looks like with my new information that I’m going to import into Business Central.?

When it’s time to import your information, select ?”Import from Excel” > Select your excel file > Import > Apply Package?

?? Watch the full video to learn how to use Copilot to create marketing text based on the information in the item.?

How to Transfer Inventory?

There are two methods to transfer your inventory, Transfers Orders and Item Reclassification Journals.?

Transfers Orders?

Start on your Transfer Order screen, you can specify the location from which the inventory items are originating and the location to which they are destined. If you want to do a “Direct Transfer,” the transfer will happen immediately. ?

If you want to do an “In-Transit” transfer for a more controlled approach, select the drop-down to select your in-transit code.?

When creating a transfer order, specify the item and its quantity, with predefined location codes. ?

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The transfer process involves two fundamental steps: shipping and receiving. To ship items, navigate to “posting,” > “post,” > select “ship.” This action records the quantity shipped.?

?? Watch the full video to learn how to view reports to track inbound transfers and how to do the Item Reclassification Journals method.?

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How to use Item Variants for Matrix Inventory?

Start by looking at a standard item in your inventory. On the item card, choose "Related" to view the item attributes, such as size and color. By using a unique SKU (Stock Keeping Unit) identifier, you can create various variants to showcase the product's different characteristics.?

We have set up the item card to require specifying a variant when buying or selling this item. This guarantees that the specific variant is clearly defined during transactions.?

?After adding items with specified variants to our inventory, we can easily check their availability within the system. In the "Items" section, under "Item Availability by Variant," we can see item 5100 and its quantities, organized by their respective variants. Clicking on a quantity provides a detailed breakdown of the transactions that contribute to that quantity.?

??? Watch the full video to learn how the process of creating a purchase order to replenish the inventory.?

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