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A graphical overview of Outbound Warehouse flow using Shipments without Bins

Outbound – Overview
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An intermediate video requires some previous experience with Business Central, but it is still easily accessible to most people. Intermediate Videos with the tag "Commonly Used" describes the functionality that is used by most companies. Commonly Used

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Presenter: Sune Lohse, Chief Strategy Officer

This is what happens in the video

If you set up a location in Business Central with a checkmark in warehouse shipment but no picks and no bins, you can still run the full outbound warehouse flow. You release the sales order, create a warehouse shipment, and post the shipment from that document.

This setup is useful when you send goods to an external warehouse, or when you want to combine several sales orders into a single shipment.

When you post the shipment, Business Central creates a posted warehouse shipment, a posted sales shipment, and item ledger entries. It does not create warehouse entries, because the location has no bins set up.

Setting up a location with warehouse shipment only

This scenario covers a location that uses only the warehouse shipment functionality on the outbound side. The location has a checkmark in warehouse shipment, but no picks and no bins are activated.

This is a lighter setup than full warehouse management. It still gives you a warehouse shipment document to work from, without requiring you to manage bin contents or run separate pick documents.

Creating a warehouse shipment from a sales order

You start from the sales order. The goal might be to send the goods to an external warehouse for handling.

First, you release the sales order. This automatically creates a warehouse request behind the scenes that the user does not see.

Once the order is released, you can create a warehouse shipment in two ways. You can create it directly from the sales order, or you can use the functionality inside the warehouse shipment document itself.

Creating it from the warehouse shipment lets you combine several sales orders into one shipment. Those orders can be for one customer or for several customers.

Handling the shipment internally or through an external warehouse

You have a few options for what happens next with the warehouse shipment.

  • Send the warehouse shipment to your internal warehouse for handling.
  • Use it directly in your own warehouse, find the items, put them in the box, and send them to the customer.
  • Wait for a message from the external warehouse confirming they have picked and shipped the items.

Posting the shipment and what gets created

When the goods are handled, you post the shipment directly from the warehouse shipment document.

Posting the shipment creates the following:

  • A posted warehouse shipment.
  • A posted sales shipment.
  • Item ledger entries.

It does not create warehouse entries. This is because you have not set up bins on the location, so there is no bin content to track.

After posting, what remains is the open sales order awaiting invoicing, the posted sales shipment, and the posted warehouse shipment.

Q&A

What do you need to do before creating a warehouse shipment from a sales order?

You release the sales order. Releasing it automatically creates a warehouse request behind the scenes, which the user does not see. After that, you can create the warehouse shipment.

Can you combine several sales orders into one warehouse shipment?

Yes. If you create the warehouse shipment from the warehouse shipment functionality rather than directly from a single sales order, you can combine several sales orders into one shipment. The orders can be for one customer or for several customers.

What entries does posting the shipment create on a location without bins?

Posting creates a posted warehouse shipment, a posted sales shipment, and item ledger entries. It does not create warehouse entries, because no bins are set up on the location.

Why are no warehouse entries created when you post the shipment?

Warehouse entries track bin content. Since this location has no bins set up, there is nothing to track at the bin level, so no warehouse entries are created.

What remains after you post the warehouse shipment?

The open sales order awaits invoicing, and you have a posted sales shipment and a posted warehouse shipment.

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