How does inbound warehouse work with bins and picks?
I will show you an inbound warehouse flow in Business Central that looks like this, meaning with a location where there’s a checkmark in require put-away and require bin, but there’s no checkmark in require warehouse receive, meaning we will create the inventory put-away directly from the purchase order. Let’s see how it looks.
This is what happens in the video
In Business Central you can create an inventory put-away directly from a purchase order without using warehouse receipts. This works when your location has a checkmark in Require Put-away and Require Bin, but no checkmark in Require Warehouse Receive. This setup gives you bin handling on inbound goods while keeping the flow simple, since you skip the separate warehouse receipt step.
Before you can create the inventory put-away, you must release the purchase order. Releasing the document creates the warehouse request that the put-away is built from. If you try to create the put-away on an unreleased order, Business Central tells you to release the document first.
When you post the inventory put-away, you only receive the goods. If you set it to both receive and invoice, you also need to fill in the external document number on the purchase order, otherwise you get an error.
After posting, the put-away creates both item ledger entries and warehouse entries, so your stock and bin contents are updated in one step.
When to use inventory put-away directly from the purchase order
This setup is for locations where you want to use bins but do not need the extra control of a separate warehouse receipt. The location has a checkmark in Require Put-away and Require Bin, but Require Warehouse Receive is left empty. With this configuration, you create the inventory put-away straight from the purchase order instead of first registering a warehouse receipt.
How to create the inventory put-away from a purchase order
Start with a purchase order on a location that has Require Put-away and Require Bin enabled. In this example the location code is called Distribute, and the order has two lines.
You cannot handle the order until it is released. If you try to create the inventory put-away on an unreleased order, Business Central stops you and tells you to release the document. The reason is that releasing the document creates the warehouse request behind the scenes. Once the request exists, you can create the inventory put-away document directly from the purchase order.
When you create it, Business Central makes an inventory put-away document that relates to your purchase order number. You can open it and see the two lines, and you can print it as a working document for the warehouse.
Filling in bin codes and quantities
On the inventory put-away document you need to fill in the bin code yourself. You can do this as you physically place the items, or you can enter it manually beforehand. Then you enter the quantity to handle for each line.
In this example, all quantities are placed in two bins. One line is handled in cartons and the other in pieces, with two pieces and eight pieces. After entering the bin codes and quantities, update the document and post it.
Receiving versus receiving and invoicing
When you post the inventory put-away, you can choose to receive only, or to both receive and invoice. If you both receive and invoice, Business Central invoices the purchase order at the same time. In that case you also need the external document number filled in. If it is missing, you get an error.
After posting, the inventory put-away document is gone, and you can check the result on the purchase order. The quantity received shows the handled quantities, in this case 2 and 8.
Checking item ledger and warehouse entries
To see what actually happened, open the item card or the posted purchase receipt. On the item ledger entries you can see the Distribute location and the received quantity, which in this example is 50 across the two packages.
The inventory put-away also creates warehouse entries directly, so both your inventory and your bin contents are correct after posting.
Q&A
Which location settings let you create an inventory put-away directly from a purchase order?
The location must have a checkmark in Require Put-away and Require Bin, but no checkmark in Require Warehouse Receive. This skips the separate warehouse receipt step while still using bins.
Why do you have to release the purchase order before creating the inventory put-away?
Releasing the document creates the warehouse request that the inventory put-away is built from. Without releasing, no request exists, and Business Central will tell you to release the document first.
What happens if you both receive and invoice when posting the inventory put-away?
Business Central invoices the purchase order at the same time as receiving. You then need the external document number filled in on the purchase order, otherwise you get an error.
What entries does posting the inventory put-away create?
It creates item ledger entries showing the location and received quantity, and it creates warehouse entries that update your bin contents directly.