What is the difference between Inventory and Warehouse processes (WMS)?

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

How is Inventory different from Warehouse Management in Business Central?

In Business Central, you might have heard the term inventory as well as the term warehouse and sometimes we consider what is the difference between inventory and warehouse and I’ll just try to explain this shortly in this video.

This is what happens in the video

The inventory refers to the basic functionality of having sales orders or purchase orders and to receive or ship goods directly on those documents or to consume an output from production area or on assembly orders and also doing, of course, inventory counting and it reflects to the item ledger entry-level and it’s the basic functionality.

So normally if you don’t have a big warehouse with bins and all kinds of warehouse documents, this will be the thing you’re doing.

So when we talk about basic inventory, these are the processes that we support.

Whereas the warehouse term refers more to activities in the warehouse. It creates warehouse entries, which is detailed ledger on all the transactions on the warehouse that refers to the bins that you want to place your items in.

So with the basic inventory, it’s not possible to handle items per bin but it’s possible in the warehouse functionality to determine which items are placed on which bins in which quantities.

So that’s the basic difference between those two things and the warehouse normally would require scanners or other kinds of functionality to walk around in the warehouse and register every time you move something from one place to another.