Business Central’s warehouse management scales from simple inventory picks to a fully directed warehouse where every movement is controlled by the system. The level of complexity you enable on a location determines which documents and processes are used. Choosing the wrong level, either too simple or more complex than needed, creates operational problems that are difficult to undo after go-live.
This article gives an overview of the main warehouse levels, what enabling advanced WMS involves, and the document flow you should expect. Full WMS configuration for a large warehouse typically requires a consulting engagement, but understanding the structure helps you evaluate what is appropriate.
Warehouse Complexity Levels
Business Central organises warehouse functionality in tiers, controlled by settings on the Location Card.
Basic Inventory
No warehouse documents. Inventory is adjusted directly through item journals, sales/purchase posting, and basic picks or put-aways.
Suitable for: small operations with no structured picking process.
Inventory Picks and Put-Aways
Inventory pick and put-away documents are created from sales orders and purchase orders. No bins required, though basic bins can be enabled.
Relevant fields on Location Card: Require Pick, Require Put-away
Suitable for: operations that need a picking document for warehouse staff but do not need bin-level tracking.
Warehouse Picks, Put-Aways, and Movements (Directed Put-away and Pick)
Full warehouse management. All movements are controlled through warehouse documents. Bins are mandatory. The system can direct staff to specific bins based on bin ranking and zone rules.
Relevant fields on Location Card: Directed Put-away and Pick (enabling this automatically sets multiple other warehouse fields)
Suitable for: warehouses with multiple zones, bin locations, cross-docking, or a need for full traceability of physical movements.
Enabling Advanced WMS on a Location
Enabling Directed Put-away and Pick is a significant step. It changes the document flow for all transactions at that location and requires bins to be set up before the location is used.
- Search for Locations using
Alt + Qand open the relevant location. - On the Warehouse tab, enable Directed Put-away and Pick.
- Business Central will enable a set of related toggles automatically: Bin Mandatory, Require Receive, Require Shipment, Require Pick, Require Put-away.
- Set the Default Bin Selection field, typically Fixed Bin or Last-Used Bin depending on your bin assignment strategy.
- Save.
Once enabled, do not disable this setting on a live location. Doing so can leave open warehouse documents in an inconsistent state.
Zones and Bins
In an advanced WMS location, the warehouse is divided into zones and bins.
Zones represent logical areas of the warehouse, for example, Receiving, Bulk Storage, Pick Face, Shipping. Each zone has a Zone Code and a Bin Type Code that describes what kind of activity happens there (receive, put-away, pick, ship).
Bins are the individual storage locations within a zone, shelves, positions, floor locations. Each bin belongs to a zone and has:
- A Bin Code (unique within the location)
- A Bin Type (determines whether the bin is valid for receiving, storing, picking, shipping)
- A Bin Ranking (used to direct put-aways and picks, higher ranking bins are preferred)
- An optional Maximum Cubage and Maximum Weight
Setting Up Zones
- Search for Zones using
Alt + Q(or open Location Card > Navigate > Zones). - Select New.
- Enter a Zone Code, Description, and Bin Type Code.
- Assign the zone to the correct Location Code.
- Save.
Setting Up Bins
- Search for Bins using
Alt + Q(or open the zone and select Bins). - Select New.
- Enter a Bin Code and select the Zone Code.
- Set the Bin Type Code to match the zone’s activity.
- Set a Bin Ranking value if you want the system to direct put-aways and picks.
- Save.
Warehouse Document Flow
With Directed Put-away and Pick enabled, the standard purchasing and sales flow changes.
Inbound (Purchasing)
| Step | Document |
|---|---|
| Purchase Order released | Triggers warehouse receipt creation |
| Warehouse staff receives goods | Warehouse Receipt posted |
| System creates put-away | Put-Away document directs goods to bins |
| Put-away posted | Inventory available in bins |
Outbound (Sales)
| Step | Document |
|---|---|
| Sales Order released | Triggers warehouse shipment creation |
| Warehouse planner creates pick | Pick document directs staff to bins |
| Pick registered | Goods moved to shipping area |
| Warehouse shipment posted | Inventory reduced, shipment recorded |
For transfers between locations, Warehouse Transfer Orders use the same receipt and shipment documents at each end.
Internal Movements
Within a WMS location, you can move items between bins without a source document using Internal Movements or Warehouse Movement Worksheets.
Use movements for:
- Replenishing pick bins from bulk storage
- Consolidating partial pallets
- Moving items before a count
- Search for Warehouse Movement Worksheet using
Alt + Q. - Use Get Bin Content to populate lines with items in a source bin.
- Set the To Bin Code for each line.
- Select Create Movement to generate the movement document.
- The warehouse movement is then registered by warehouse staff.
Warehouse Employee Setup
Before a user can work in a WMS location, they must be set up as a Warehouse Employee.
- Search for Warehouse Employees using
Alt + Q. - Select New.
- Set the User ID to the user’s Business Central user ID.
- Set the Location Code to the warehouse location.
- Enable Default if this is their primary location.
- Save.
Without this setup, the user cannot register picks, put-aways, or movements at the location. A user can be a warehouse employee at multiple locations.
A Note on Implementation Complexity
Full WMS in Business Central involves more configuration than most other features in the system. Beyond what is covered here, a real implementation will include:
- Bin type codes and their rules
- Bin creation via the bin creation worksheet (for large warehouses with many bins)
- Warehouse class setup for hazardous or temperature-controlled items
- FEFO (First Expiry First Out) configuration for items with lot tracking
- Cross-docking rules
- Integration with mobile scanning if using a handheld device solution
For straightforward warehouses with one or two locations and moderate volume, basic inventory picks are often sufficient. Enable directed WMS only when the operational complexity genuinely requires it.
To control which users have access to warehouse documents and locations, see How to Configure Security Groups in Business Central.