This is what happens in the video
This article walks through the complete inventory pick flow in Microsoft Dynamics 365 Business Central for a location that requires picks and has bin mandatory enabled, but does not use warehouse shipments or directed put-away.
You set up the location with checkmarks in “Require Pick” and “Bin Mandatory”. This gives you a simpler warehouse flow than full warehouse management, without warehouse shipment documents.
You have two ways to ship from this kind of location. You can enter the quantity and bin code directly on the sales line and post the shipment without creating a pick. Or you can release the sales order, create an inventory pick, perform the pick in the warehouse, and post it.
You must release the sales order before you can create an inventory pick. If you try to create the pick from an unreleased order, Business Central gives you an error message.
When you post the inventory pick, it ships the sales order automatically. The pick is deleted and turned into a posted pick.
Location setup with require pick and bin mandatory
Before creating the sales order, check the location setup. The location in this scenario has a checkmark in both “Require Pick” and “Bin Mandatory”. This means inventory movements must reference a specific bin, and the system can require a pick document for shipments.
Importantly, this setup does not require a warehouse shipment, and therefore there is no directed put-away. This keeps the flow lighter than full warehouse management while still tracking which bin the goods come from.
Shipping directly from the sales line without a pick
With this location setup, you have a fast option. When you enter the item number on the sales line, you can enter the quantity directly and change the bin code on the line itself, without creating a pick.
You then post the shipment straight from the sales order. Everything works correctly: the quantity is shipped from the bin code you entered. This is a practical shortcut when you do not need a separate pick process.
Creating an inventory pick from a released sales order
If you want to use the pick process, the steps follow the standard warehouse flow. Start by creating a new sales order. In this example, the order has two item lines with different item numbers and different quantities.
You cannot create the pick yet. If you go straight to the action and try to create a warehouse pick, you get an error message. Working with warehouse documents requires that you release the order document first.
So release the sales order, then choose “Create Inventory Pick”. Business Central creates the pick. You can navigate into the pick directly from the sales order, or open it from the Business Central menu.
Working with the pick document and bin codes
The pick document in this example has two lines, one for each item, because the warehouse worker needs to fetch the items from those two bin codes.
You can change the bin code on the pick, either before or after the physical pick. You can also print a picking note if you are not using a handheld scanner device. The picking note shows the two bins, the quantities to handle, and space to fill in the quantity handled.
If you change a bin code while moving around the warehouse, you can write it directly on the printed paper and update the lines afterwards.
Performing and posting the pick
After printing, you perform the physical pick. You may end up using different bin codes for some reason, or pick the full quantity, and you note that on the paper.
Back in Business Central, enter the actual quantity you handled on the pick lines as a confirmation. You can pre-fill this, or use the “Autofill Quantity to Handle” function, but many warehouses do it by hand to make sure it is correct.
Then post the document. Because it is an inventory pick, posting it ships the sales order at the same time. The pick is deleted and turned into a posted pick. On the sales order lines, you can see the shipped quantities, in this example 8 and 4, and that they were shipped from the bins you entered.
Q&A
What location settings are needed for an inventory pick without warehouse shipment?
Set checkmarks in “Require Pick” and “Bin Mandatory” on the location. This enables the inventory pick flow with bin tracking, but does not require a warehouse shipment or directed put-away.
Why do I get an error when creating a warehouse pick?
You must release the sales order before you can create the pick. Working with warehouse documents requires that the order document is released first.
Can I ship from a require-pick location without creating a pick?
Yes. On this location setup you can enter the quantity and bin code directly on the sales line and post the shipment without creating a pick. This is the faster option when you do not need a separate pick process.
Does posting an inventory pick also ship the sales order?
Yes. Because it is an inventory pick, posting it ships the sales order automatically. The pick is then deleted and turned into a posted pick.
Can I change the bin code on a pick?
Yes. You can change the bin code on the pick document either before or after the physical pick, and you can record any changes on a printed picking note while working in the warehouse.