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What is the difference between the terms ”Basic Inventory”, ”Simple Warehouse” and ”Advanced Warehouse”?

What Is The Difference Between Basic Inventory & Advanced Warehouse In Business Central?
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Presenter: Sune Lohse, Chief Strategy Officer

In Business Central, the terms basic, simple, and advanced are not formal definitions built into the system. They are terminology used to describe how a location is set up for inventory and warehouse handling. The difference comes down to which checkmarks you activate on the location card.

A basic location only handles item ledger entries and no warehouse activities. You don’t use bins, and you can’t see whether an item sits on one bin or another.

A simple location introduces warehouse documents such as purchase receipts, sales shipments, picks, and put-aways. You can mix and match these checkmarks in many combinations, and you can also activate bin handling.

An advanced location is when you set all the warehouse activity checkmarks, especially Directed Put-away and Pick, which controls warehouse activity rigidly. This is what’s referred to as WMS.

The terms basic, simple, and advanced are terminology, not system settings

When you talk about inventory and warehouse handling in Business Central, you’ll hear the terms basic, simple, advanced, and WMS. It’s worth being clear about one thing: there’s no definition in Business Central that reflects those specific terms. They are simply terminology used to describe different setups.

What actually determines whether a location is basic, simple, or advanced is the combination of checkmarks you set on the location card. So before going into the differences, it helps to look at where these settings live.

Where the warehouse settings live on the location card

On the location list in Business Central, you can insert a location and open its card. Here you’ll find a range of checkmarks, including:

  • Require Receive
  • Require Shipment
  • Require Put-away
  • Require Pick
  • Directed Put-away and Pick

The combination of these checkmarks defines whether the location is set up as basic, simple, or advanced for that specific warehouse.

What a basic location does in Business Central

A basic location only handles item ledger entries and no warehouse activities at all. That means you’re not creating warehouse entries, and you don’t use bins. With only one location and no bins, it’s not possible to see whether an item is placed on one bin or another.

You do have a shelf number on the item card, but that’s something different. It’s just an information field and doesn’t drive any warehouse logic.

What a simple location does and the combinations you can build

A simple location is where you start introducing warehouse documents. There’s no single fixed setup for simple. It covers many different combinations of checkmarks, and there’s no limit to how you can combine them.

One example is a location with a purchase receipt and a sales shipment. This introduces warehouse documents. A setup like this could be used for an external warehouse, or it could be that you don’t want the prices on the sales and purchase documents to be seen by the warehouse staff, so you let them work from warehouse handling documents instead.

Another example skips the purchase receipt and sales shipment but uses picks, put-aways, and internal inventory activities. This setup brings in bins, so you’re handling items per bin in the warehouse.

A third example includes a purchase receipt but no put-away, while still activating bin handling so you have bin activities in the warehouse. All of these are valid simple setups in different combinations.

What an advanced location does and how Directed Put-away and Pick works

An advanced location is when you set all the checkmarks, meaning you enable all the warehouse activities. In particular, you set the Directed Put-away and Pick checkmark. This option controls warehouse activity very rigidly, and it’s what’s referred to as advanced warehouse setup, or WMS.

Q&A

What is the difference between basic, simple, advanced, and WMS in Business Central?

They are terminology, not built-in system definitions. Basic handles only item ledger entries with no bins or warehouse activities. Simple introduces warehouse documents and can include bins in various combinations. Advanced (WMS) means all warehouse activity checkmarks are set, including Directed Put-away and Pick.

What determines whether a location is basic, simple, or advanced?

The combination of checkmarks on the location card, such as Require Receive, Require Shipment, Require Put-away, Require Pick, and Directed Put-away and Pick.

Can a basic location track which bin an item is placed on?

No. A basic location doesn’t use bins, so you can’t see whether an item is on one bin or another. The shelf number on the item card is only an information field and doesn’t drive warehouse logic.

Why would you use a simple setup with warehouse documents?

It can be used for an external warehouse, or to prevent warehouse staff from seeing prices on sales and purchase documents by having them work from warehouse handling documents instead.

What does the Directed Put-away and Pick checkmark do?

It controls warehouse activity very rigidly and is the defining setting for an advanced warehouse setup (WMS).

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