When you work with output from production orders in Microsoft Dynamics 365 Business Central, the way you post that output depends heavily on how the location is configured. The difference between a location that only uses “Require Shipment” and one that uses “Directed Put-away and Pick” changes how you handle finished goods coming off a production order.
If your location does not use Directed Put-away and Pick, you can post output directly from the production order through the production journal. This creates item ledger entries and a warehouse entry as a positive adjustment on the default bin for the production order. You then move the finished item out of the production area and back into inventory using an inventory movement.
On a location that uses Directed Put-away and Pick, the flow is different. You handle output through a separate warehouse process rather than posting it straight from the order.
How location setup affects output posting in Business Central
The key distinction comes down to two checkmarks on the location card. A location can be set up with only a checkmark in Require Shipment, or it can use the checkmark in Directed Put-away and Pick.
When you post output from a production order on a location that uses Directed Put-away and Pick, you work with an inventory put-away or post directly in the journal as part of that warehouse logic. On a simpler location that only requires shipment, you can post output directly from the production order line.
Posting output directly from the production order
Here is a concrete walkthrough using a location called ‘Main’. This location does not have the Directed Put-away and Pick checkmark, but it does have a checkmark in Require Shipment.
Before posting, the production order has no item ledger entries and no warehouse entries. Nothing has been registered yet. To post output, you open the production journal from the production order line.
In the journal, you can post time on the routing operations and post your output quantity. It is possible to post output on the last operation in the routing. In standard Business Central, this creates the item ledger entries automatically.
In this example, the output quantity posted is 3. After posting, you can navigate into the warehouse entries and see that Business Central created a warehouse entry as a positive adjustment on the default bin for the production order.
Moving finished goods back into inventory
Once the output is posted and sitting on the production area bin, the item is not yet where it needs to be for normal inventory handling. You move it from the production area back into inventory using an inventory movement.
This step completes the flow on a location that only requires shipment. The finished item is now available in your regular inventory location instead of the production area.
Q&A
What is the difference between a location with only Require Shipment and one with Directed Put-away and Pick when posting production output?
On a location with only Require Shipment, you can post output directly from the production order through the production journal. On a location with Directed Put-away and Pick, you handle output through an inventory put-away or post directly in the journal as part of the warehouse logic instead of straight from the order.
Can you post output on the last operation in the routing in Business Central?
Yes. It is possible to post output on the last operation in the routing. In standard Business Central, this creates the item ledger entries.
What happens in the warehouse when you post output from a production order?
Business Central creates a warehouse entry as a positive adjustment on the default bin for the production order. You can confirm this by navigating into the warehouse entries after posting.
How do you get finished production output into your normal inventory?
After posting output to the production area bin, you use an inventory movement to move the item from the production area back into inventory.