Case study 2A Inventory management

Objectives

Manage inventory pricing and costing.
Configure inventory management.
Manage and process inventory activities.

Scenario

Company Information

USMF is a United States company that manufactures products for several different industries and has a diverse portfolio of products.

Business Challenges and Requirements

USMF recently implemented Dynamics 365 Supply Chain Management. They hired a new full-time team to manage the warehouse and inventory, the new staff doesn’t have Dynamics 365 Supply Chain management knowledge.

Your Role

You are the Dynamics 365 Supply Chain Management functional consultant that implemented the solution. You are called to help the new staff in multiple areas.

Exercise #1 Using the inventory movement journal to initialize stock levels in a warehouse

Objective: Initialize stock levels in a warehouse by using movement journals.

USMF company has some inventory opening balance for one of its products and is it necessary to add to that stock. There are no specific purchase order references for the items, so the opening balance will have to be forced into the system.

The warehouse manager, will have to use the inventory movement journal to add the opening balance and use an offset account to balance the transaction in the general ledger.

In USMF, its possible to update the on-hand inventory manually using an Inventory movement journal.

It is also possible to update on-hand inventory by importing transactions in data entities.

What would you do to guide the warehouse manager?

Initialize stock levels in the warehouse using movement journals

Go to Inventory management > Journal entries > Items > Movement.
Select New.
In the Name field, select the drop-down button to open the lookup.
Select Imov. It is a good practice to use different journal name templates for the different business purposes.
In the Offset account field, specify the values 140200.

NoteThis is the offset account that will be the default account on the journal lines. It is possible to override the default to assign different offset accounts per line.
Select OK.
Select New in the Journal lines fast tab.
In the Item number field, select the drop-down button to open the lookup.
Select item A0001.
In the Site field, select the drop-down button to open the lookup.
Select site 1.
In the Warehouse field, select the drop-down button to open the lookup.
Select warehouse 13.
In the Location field, select the drop-down button to open the lookup.
Select location 13.
In the Quantity field, enter a number.
Review changes in the Line details FastTab.
Select Save.
Select Post.
Toggle on or toggle off the Transfer all posting errors to a new journal field.

Note If you enable this option, any lines that fail to post will be copied to a new journal. You can use the information in the log to correct the issues and then re-post the lines.
Select OK.
Close all pages.

Exercise #2 Using the inventory transfer journal to move items to a new location in the warehouse

Objective: Move items from a plate-controlled location to a location that is not license plate controlled.

Transfer physical inventory within the warehouse using transfer journals

Go to Inventory management>Journal entries>Items>Transfer.
Select New.
In the Name field, enter or select ITrf.
Select OK.
Select New in the Journal lines fast tab.
In the Item number field, enter or select A0001.
In the From site field, enter or select 2.
In the To site field, enter or select 2.
In the From warehouse field, enter or select 24.
In the To warehouse field, enter or select 24.
In the From location field, enter or select FL-001.
In the To location field, enter or select BULK-001.
In the Quantity field, enter a number.
Select the Inventory dimensions tab in the Line details fast tab.
In From inventory dimensions, enter 24 in the License plate field.
Select Save.
Select Post.
Select OK.
Select Inventory in the Journal lines fast tab.
Select Transactions to see the transfer.
Close all pages.

Exercise #3 Adjusting stock levels using the inventory adjustment journal

Objective: Adjust stock levels after an error by using the inventory adjustment journal.

During the transfer journal processing a user recorded the wrong number of items moved to the new location.

You were asked to use the inventory adjustment journal to fix quantity.

You will also need to adjust the stock levels of products in the warehouse.

How would you perform this?

Adjust stock levels in the warehouse

Go to Inventory management > Journal entries > Items > Inventory adjustment.
Select New.
In the Name field, select the drop-down button to open the lookup.
Select IAdj.
Select OK.
Select New in the Journal lines fast tab.
In the Item number field, select D0001.
In the Site field, select the drop-down button to open the lookup.
In the list, select site 1.
In the Warehouse field, select the drop-down button to open the lookup.
In the list, select warehouse 13. If you have selected an item with Location as a mandatory dimension, you would have to specify the location here.
In the Quantity field, enter a number. The cost price field specifies the cost per unit for inventory receipts. If the cost is not specified for the item number or if you wanted to change it manually, you would do this here.
Select Validate.
Select OK.

Note that the Journal is OK, and select Post. When you post this kind of journal, an inventory receipt or issue is posted, the inventory level and value are changed, and ledger transactions are generated.
Select OK.
Close all pages.

Exercise #4 Using the inventory counting journal to compare D365 inventory amounts to manually counted quantities

Objective: Use the inventory counting journal to compare manually counted amounts to the on hand recorded amounts in D365 supply chain and post the transaction.

A few days after you have adjusted stock levels, the warehouse manager decide to manually count the items in that specific area of the warehouse.

The warehouse manager wants to enter the manually counted quantity and not sure what to use.

How would you help?

Use counting journals

Go to Inventory management > Journal entries > Item counting > Counting.
Select New.
In the Name field, select the drop-down button to open the lookup.
In the list, select on the inventory counting journal Icnt.
In the Worker field, select the drop-down button to open the lookup.
In the list, select the worker you want to use.
Select Select.
Select OK.
Select New in the Journal lines fast tab.
In the Item number field, select the drop-down button to open the lookup.
In the list, find and select A0001.
In the Site field, select the drop-down button to open the lookup.
In the list, find and select site 2.
In the Warehouse field, select the drop-down button to open the lookup.
In the list, find and select warehouse 24.
In the Location field, select the drop-down button to open the lookup.
In the list, find and select location BULK-001.
In the Counted field, enter a number.
If you enter a counted number that’s different than the number shown in the On-hand field, the Quantity field is updated to show the discrepancy.
Select Save.
Select Post. When you post an inventory counting journal, if the counted amount differs from the amount that’s reported in the On-hand field, an inventory receipt or issue is posted, the inventory level and value are changed, and ledger transactions are generated.
Select OK.
Close all pages.