Locations in Business Central represent physical places where inventory is held, a warehouse, a production floor, or a retail store. Bins go one level deeper: they are the specific storage areas within a location, such as shelves, racks, or zones.
How much warehouse functionality you need depends on how you operate. BC supports everything from a single location with no bins through to directed put-away and pick with detailed bin management.
Create a Location
- Search for Locations using
Alt + Q. - Select New.
- Enter a Code (short identifier, e.g., MAIN, EAST-WH) and a Name.
- Fill in the Address fields if needed for transfer documents or reporting.
Warehouse Configuration Fields
On the Warehouse tab, the following fields control what warehouse processes are active:
| Field | Effect when enabled |
|---|---|
| Require Receive | Goods must be received via a warehouse receipt before being put away |
| Require Shipment | Goods must be picked via a warehouse shipment before being posted |
| Require Put-away | Enables warehouse put-away documents |
| Require Pick | Enables warehouse pick documents |
| Bin Mandatory | Requires a bin code on all inventory transactions at this location |
| Directed Put-away and Pick | Enables full directed warehousing with bin ranking and zone management |
Warehouse Complexity Levels
BC has two main levels of warehouse setup:
Basic warehousing, use Bin Mandatory without Directed Put-away and Pick. You assign bins to transactions manually or through default bin assignments. There are no warehouse documents beyond the standard receipt and shipment flow. This is suitable for small warehouses where staff know where things go.
Directed warehousing, enable Directed Put-away and Pick on the location. BC generates put-away and pick instructions based on bin rankings, capacities, and zone rules. This requires more setup but gives precise bin-level control. It is designed for larger operations where the system should guide staff.
You cannot mix the two on the same location. Enable directed warehousing only if you intend to configure zones and bin types fully.
Enable Bins on a Location
If you want bin tracking without full directed warehousing:
- On the Location Card, go to the Warehouse tab.
- Check Bin Mandatory.
- Leave Directed Put-away and Pick unchecked.
This activates the Bin Code field on item journal lines, sales shipment lines, and purchase receipt lines for this location.
Create Bins
- On the Location Card, select Bins from the Navigate menu or the related actions.
- Select New for each bin.
- Enter a Code for the bin (e.g., A-01-01 for aisle A, rack 1, shelf 1).
- Optionally enter a Description.
- If using directed warehousing, assign a Bin Type (Receive, Ship, Put-away, Pick, QC, etc.).
- Set Maximum Cubage or Maximum Weight if you want capacity constraints.
Assign a Default Bin to an Item per Location
You can set which bin an item should go to by default at a given location, reducing data entry on transactions.
- Open the Item Card.
- Select Item → Stockkeeping Units, or navigate to Default Bins from the location setup.
- Alternatively, search for Stockkeeping Units and filter by item and location.
- In the Default Bin Code field, enter the bin where this item is normally stored.
When creating a sales order line or item journal line for that item at that location, BC fills in the bin code automatically.
In-Transit Locations
When you transfer inventory between locations using a Transfer Order, BC requires an in-transit location to represent goods that are in transit between the two points.
- Create a new Location (e.g., code: IN-TRANSIT).
- Check the Use As In-Transit field on the location card.
- Do not enable Bin Mandatory or warehouse documents on the in-transit location.
When creating a transfer order, select this location in the In-Transit Code field. BC uses it to record inventory while it is moving between locations.
For more on managing inventory at your locations, see How to Perform Inventory Adjustments in Business Central.