An overview of Inventory processes

The Difference Between Inventory & Warehouse Processes
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Presenter: Sune Lohse, Chief Strategy Officer

What are Inventory Processes in Business Central?

In Business Central, we refer to inventory processes as processes that provides or creates item ledger entries. I will just run through some of the most important processes in Business Central that creates those entries.

This is what happens in the video

First of all, we have the order documents, the purchase order, and the sales order which is meant for the inbound and outbound order handling. On the purchase order, we receive goods directly when we use a simple or basic inventory meaning we enter quantities directly on the purchase order to post it. Likewise on the sales order when we want to ship it, we enter quantity directly on the sales line.

In the manufacturing, we have consumption and output that also is meant to consume or finish items from production and likewise on assembly orders or transfer orders if we’re using that, and in the inventory, we, of course, do inventory counting which is just done per item regularly to figure out the quantity and enter those in the system.

So all these are creating what we call item ledger entries and it reflects the cost of the items and the quantity in stock.