When you use a simple location setup in Business Central, with no requirement for shipment or receipt, you can create an inventory pick for a production order and post the consumption in one step. This moves the component into the production bin and posts it directly, so you handle the physical pick and the consumption posting at the same time.
The inventory pick on a production order suggests the bin where the component actually sits, lets you enter the handling quantity, and uses a Post action that both creates the warehouse entry and posts the consumption. After posting, you find item ledger entries for the consumption and warehouse entries showing the items moved out of the source bin.
You can also create a movement instead of posting directly, if you only want to move the items into the production bin without posting consumption.
Setting up a released production order on a simple location
Start by creating a released production order. In this example we use item number 1250 and produce two pieces. We place it on a location code that we know is set up as a simple location, which here is the distribution location. A simple location means there are no requirements for shipment or receipt on the location card.
Refresh the production order. This is all standard functionality. On the production order line you now see the component lines that require consumption. In this case you need two pieces, and they need to be flushed from bin code 120, which is the production bin.
The items are not in the production bin yet, so you need to do the pick to get the component into the production bin and post it.
Creating the inventory pick from the production order
From the action menu on the production order, create an inventory pick. In this scenario you want to create the inventory pick and post the item at the same time, when you post the pick.
Creating the inventory pick directly from the production order generates a pick activity. You then open the inventory pick, which shows where to pick the two items. It suggests the bin where the item actually is and shows a quantity of two. Enter the handling quantity.
Posting the pick and the consumption in one step
The posting function on this inventory pick uses a Post action, which means it does more than create a warehouse entry. It creates the warehouse entry and posts the consumption directly.
When you post the inventory pick, the pick is removed. Go back to the released production order and open the entries. You see that it created:
- Item ledger entries for the consumption of the two items
- Warehouse entries showing the items moving out of the bin they were in
The result is that you picked the items directly from the bin where they were located, moved them, and posted the consumption in a single operation.
When to use a movement instead
If you do not want to post the consumption at the same time, you can create a movement instead of a direct post. The movement only moves the items into the production bin, and the consumption is posted separately.
Q&A
What does a simple location setup mean in Business Central?
A simple location is a location set up on the location card with no requirements for shipment or receipt. It lets you handle picks and postings in a more direct way than a full warehouse setup.
What is the difference between posting an inventory pick and creating a movement?
When you post the inventory pick, Business Central creates the warehouse entry and posts the consumption directly in one step. A movement only moves the items into the production bin, and you post the consumption separately afterwards.
What entries are created when you post an inventory pick for a production order?
It creates item ledger entries for the consumption of the components, and warehouse entries that show the items moving out of the bin they were located in.
How do you get a component into the production bin so it can be consumed?
If the component is flushed from a production bin where it is not currently located, create an inventory pick from the production order. The pick moves the item from its actual bin into the production bin, and posting it records the consumption.