MANAGEMicrosoft Dynamics NAV 5.0Warehouse ManagementSystemsTechnical WhitepaperThis Paper will give you an overview of the Warehouse ManagementSystems granule in Microsoft Dynamics NAV. It is written with theaim of helping anyone in the Microsoft Navision channel who isconsulting on or implementing a business solution using theWarehouse Management Systems granule.Date: January,

Table of ContentsIntroduction . 4The Purpose and Functionality of WMS . 5Warehouse Structure . 7Conceptual Design . 8Workflow .8Inbound Flow. 8Outbound Flow . 10Movements within the Warehouse . 12Development Design .13Solution Concept. 13Integration.14WMS with Warehouse Management (WM). 14WMS with Manufacturing. 14Internal Put-Aways and Internal Picks . 14Automatic Flushing . 14User Interface Changes . 14Using Automatic Flushing in a WMS Location. 15WMS with Inventory . 16Physical Inventory . 16Warehouse Inventory Adjustments to the Item Ledger . 17Available Qty. to Pick and Reservation Feature . 17Available Quantity to Pick. 17Calculating the Available Quantity to Pick. 18Where the Calculation is Used. 20Limitations. 20Reservation Feature . 20New Calculation . 21Where the Calculation is Used. 22Limitations. 23Undo Receipt . 23User Interface Changes . 23To Undo a Warehouse Receipt . 23Implementation Assistance.24WMS Setup. 24Bin Types. 24Creating Bins . 24Warehouse Classes.24Setting Maximum Quantities for Bins . 24Pick According to FEFO (Version 5.00) . 252WAREHOUSE MANAGEMENT SYSTEMS – TECHNICAL WHITEPAPER

Specific Features.26The Warehouse Reclassification Journal (Version 5.0) . 26Filtering . 26Posting versus Registering. 26Cross-docking. 26Changes in earlier versions. 26Batch Job to Enable a Location for WMS . 27User Interface Changes . 27Enabling a Location for WMS. 27Glossary .30Appendix A: Demonstration Data Specifications.35(Date: May 8, 2002) . 35Goals . 35Setup Forms . 35Put-away templates. 35STD . 35VAR. 36Location Card . 36White Location . 36Bin Type . 36Special Equipment . 37Warehouse Classes . 37Zones . 37Bins . 38Physical Inventory . 41Phys. Invt. Cycles . 41Dynamic Data . 41Items . 41Items used for Production order . 45BOM. 45Item Variant . 45SKU on White location. 46Customers. 46Vendors. 46Purchase orders (Location WHITE) . 47Sales orders (Location WHITE). 47Transfer orders to White . 48Transfer orders from White . 48Production Order: . 48Items by location . 49Warehouse Movement. 50Warehouse Pick . 50Pick worksheet . 50Warehouse Put-away. 50Put-away worksheet. 50Warehouse Source Filter selection . 503WAREHOUSE MANAGEMENT SYSTEMS – TECHNICAL WHITEPAPER

IntroductionWarehouse Management Systems (WMS) for Microsoft Dynamics NAV is developed as an integratedoffering for the Microsoft Navision application. It is a solution for the Microsoft Navision customer thathas a need for managing inventory and distributing items in a warehouse environment. It is especiallydeveloped for warehouses that function by using specific zones and bins. WMS provides functionalityfor more advanced warehouse operations than the functionality in the basic Warehouse Management(WM) solution.To obtain the WMS offering you need to buy the Advanced Management granule as well as thefollowing ut AwayWarehouse ReceiptPickWarehouse ShipmentWarehouse Management SystemsInternal Picks and Put AwaysBin Set-UpAutomated Data Capture System4WAREHOUSE MANAGEMENT SYSTEMS – TECHNICAL WHITEPAPER

The Purpose and Functionality of WMSBefore Microsoft Navision 3.10, there was no independent functionality that focused on warehouseprocesses. It was only possible to receive and ship from the order documents. But in distribution andmanufacturing companies, the sales, purchase and warehouse functions are normally performed indifferent departments, and so it is not very process oriented to let warehouse staff work in the samedocuments as the sales and purchase staff. For example, warehouse workers don’t need all thecustomer and vendor information, but in order to do their jobs efficiently they do need to seeinformation from the sales and purchase orders arranged especially for their requirements.WMS is designed to help reduce costs through effective warehouse processes. It is aimed at thosecompanies that need to receive and ship goods, while maintaining an optimum utilization of space andknowing specifically where all goods are stored at any given time. Items can be stored either inpredetermined bins or in random bins – depending on the need for optimization and the expertise ofthe warehouse personnel. It is also possible for WMS to keep track of the quantity of items within eachbin.The WMS granule provides functionality for handling advanced warehouse processes that involvezones and bins, directed picks and put-aways, as well as automated data capture systems. To performdirected pick and put away, it is necessary to divide the warehouse into zones and bins. A zone couldbe a receiving zone or a stocking zone, and each zone can consist of one or several bins.A bin is a storage device designed to hold discrete parts. It can be a space on a shelving unit that isportioned with physical dividers, or it can be any space defined within the warehouse to hold items.Each bin must have a type attached, as explained in the Implementation Assistance section of thispaper. Depending on the bin type, different processes and tasks are possible. You can also determinewhether the bin content in a bin is fixed or floating. In Microsoft Navision, a fixed bin is one that holdsan item or items that have been dedicated to it; it is not fixed to hold one specific item. It is predefinedwhich specific item(s) can be placed in fixed bins, whereas floating bins are non-discriminatory – theyhave no particular items assigned to them. In general, the more floating bins there are in a warehouse,the better the space is utilized. However, stricter data discipline is necessary for the operation offloating bins in order to keep track of where items have been put away.You can assign a warehouse class to items, zones and bins. For example, frozen (-20 C) or cold ( 5 C).The warehouse class is an extra criterion for the program to use in determining where items should bestored. It is possible to divide any zone into several warehouse classes. For example, items in thereceiving zone can be stored under different conditions.If necessary, you can block items in a bin (the bin content) from warehouse activities, for example, ifthey are found to be defective or are being inspected for quality control. You can block any item forany bin from inbound activity, outbound activity or for all activity. For example, if an item is blocked ina bin for outbound activity, the program will not use the bin for picking or movements. This blockedbin content is excluded from the available-to-pick calculation.The put-away process is improved with the introduction of a put-away template and bin rankingcombined with a filtering logic similar to that for the pick side in the Warehouse Management granule,(3.10). The put-away template specifies how to find a suitable bin for an inbound item. The capacity ofa bin can be controlled for quantity, total cubage, and weight.5WAREHOUSE MANAGEMENT SYSTEMS – TECHNICAL WHITEPAPER

All the picking methods that are available in WM are also available in WMS. To optimize the pickprocess, all zones and bins are ranked and the pick is performed according to the bin ranking as well asbin type and blocked status. The program will suggest picking the items from the bins with the higherranking first. To optimize the general processes and the usage of warehouse space, the program cansuggest replenishing higher ranking bins with goods from lower ranking bins – if this has been set up.Thereby, the forward picking areas (consisting of the bins with higher ranking) will always be filled.Cycle counting based on items is provided to help keep the stock balance accurate for items that areavailable for sale. The option is available to assign how many times per year an item or stock keepingunit (SKU) must be counted.It is possible to initiate warehouse processes without a source document by using the Internal Putaways and Internal Picks features. For example, you can pick items for production, or for specialprojects or tests, and afterwards either consume them or put them away.Source documents in Microsoft Navision consist of the following outbound and inbound documenttypes:Outbound documents: Sales OrderOutbound Transfer OrderPurchase Return OrderReleased Production OrdersInbound documents: Purchase OrderInbound Transfer OrderSales Return OrderThe Warehouse Shipment form in both WM and WMS enables you to keep track of outgoingdeliveries, provides you with the opportunity to pick items to stage, and ensures complete shipment ofthe delivery.The Warehouse Receipt form in both WM and WMS enables you to plan the receipt of purchaseorders, sales return orders and transfer orders.6WAREHOUSE MANAGEMENT SYSTEMS – TECHNICAL WHITEPAPER

Warehouse StructureThe layout of a typical warehouse structure as it relates to WMS is shown in the illustration below. Itshows an example of how a warehouse can be organized by using zones and bins. Note that thewarehouse class code is shown only to illustrate an example of how items can be placed in a separatearea in the g Zone(Whse. Class Hand Tools)Forward PickZoneStocking Zone(Whse. Class Electrical)Stocking Zone(Whse. Class Hazardous)Bulk StorageTypical Warehouse Flow Layout7WAREHOUSE MANAGEMENT SYSTEMS – TECHNICAL WHITEPAPER

Conceptual DesignWorkflowThe layout of the WMS main menu is oriented to reflect the workflow of a typical warehouse operation.It is designed to correspond with the inbound, outbound and internal flow of items through thewarehouse. The illustration below shows the WM/WMS overall workflow as it relates to orders.Inbound FlowInbound roduction Order Outbound OrderTransportationShippingThe inbound flow of the warehouse begins with the items coming into the warehouse and thewarehouse personnel registering those items into the program. Each item is identified and matched toa corresponding inbound source document. An inbound source document can be one of the following8WAREHOUSE MANAGEMENT SYSTEMS – TECHNICAL WHITEPAPER

three types: purchase order, inbound transfer, or sales return order. The following numbered stepscorrespond with the diagram Inbound Flow, shown below:1.Warehouse Inbound RequestDuring the release of the purchase order (sales return order, inbound transfer order), an inboundwarehouse request is created by the program. It contains references to the source document typeand number and is not visible to the user.2.Warehouse ReceiptGoods arrive in the warehouse and in the warehouse receipt order window the responsibleemployee makes a request to the program to retrieve the necessary source document lines. Basedon this inbound warehouse request, warehouse receipt order lines are created and displayed in thewarehouse receipt order window.3.The employee can update the created warehouse receipt order, fill in “qty. to handle” (this can bedone automatically if allowed by the warehouse setup per location), and select the receiving zoneand bin.4.Receipt PostingFrom the Warehouse Receipt window, the employee can use the “Post” function: The purchaseorder (inbound transfer order, sales return order) is posted as received, and a posted receipt and aposted warehouse receipt order are created.The warehouse receipt order cannot be deleted until the quantity registered in the warehouse isposted as received and put away.A warehouse receipt order line is deleted if it is completely posted and put away. If all warehousereceipt order lines are completely posted as received and put away, the warehouse receipt order isdeleted.5.Internal Put-awayThe employee creates an internal put-away for items that have to be put away in the warehouse(for example, production output), and enters quantity, zone and bin; from where the items shouldbe put away.6.The employee releases the internal put-away and the program creates an internal put-awayrequest.7.Put-away WorksheetIn the Put-away Worksheet, the employee instructs the program to retrieve the lines to be putaway. The program creates put-away lines, which are displayed in the worksheet.8.The employee selects the lines to put away and then fills in the “qty. to handle.” (Note: Theprogram will automatically fill this in if it is set up per location.) The employee then instructs theprogram to create corresponding warehouse instructions. When the program has done this, itdeletes the put-away assignment lines – after they are fully assigned.9.Warehouse Instructions – Put-awayThe employee physically handles the put-away according to the warehouse instructions andupdates the warehouse instructions document in the program accordingly. The employee posts thewarehouse instructions document and the program creates warehouse entries and deletes putaway request and warehouse instructions journal lines – if fully handled. The Qty. Put Away field onthe warehouse receipt order lines is updated.10. VariationDepending on the warehouse setup per location, the program immediately creates a warehouse9WAREHOUSE MANAGEMENT SYSTEMS – TECHNICAL WHITEPAPER

instruction document when the employee creates a put-away request. In this case, steps 7 and 8can be omitted.Sales Return OrderPosted Return ReceiptPosted Transfer ReceiptTransfer OrderPosted ReceiptPurchase Order4Release14Inbound Request(internal systemdata)2Whse. Receipt OrderPosted Whse. Receipt Order3Post.44Put-away Order5Release.56Put-away Request(internal systemdata)7Put-away Assignment WorksheetCreate whse. instructions810Whse. InstructionsPost.9Warehouse Inbound Flow DiagramOutbound FlowThe outbound flow in the warehouse begins with a request for shipment in the form of a sales order,an outbound transfer order or a purchase return order. The warehouse personnel will go directly to theWarehouse Shipment window to retrieve lines from these source documents. The following numberedsteps correspond with the Outbound Flow diagram shown below:1.Warehouse Outbound RequestDuring the release of the sales order (purchase return order, outbound transfer order) an outbound10WAREHOUSE MANAGEMENT SYSTEMS – TECHNICAL WHITEPAPER

warehouse request is created. It contains references to source document type and number and isnot visible to the user.2.Warehouse ShipmentsIn the Warehouse Shipment window, the warehouse manager instructs the program to retrievesource document lines that need to be shipped. The manager has the possibility to combineseveral source document lines into one warehouse shipment order.3.The warehouse manager decides to start the picking process for some shipment orders, selects thelines to be picked and specifies a bin to place picked items (a shipping bin or a staging bin). Themanager calls a function to initiate picking and pick request lines are created – invisible to the user– which contain references to warehouse document type and number.4.Internal PickThe warehouse employee creates a pick order for items that have to be picked in the warehousebut should not be shipped (for example, production components), enters the lines and specifies thebin in which picked items are to be placed. The employee releases the order and pick request linesare created – invisible to the user – which contain references to warehouse document type andnumber.5.Planning the Picking ProcessThe warehouse manager starts planning the picking process and, in the Pick Worksheet window,instructs the program to retrieve the lines that need to be picked. Pick lines based on pick requestsare created and displayed in the Pick Worksheet window.6.The warehouse manager enters the qty. to handle on the pick assignment lines (which can be filledin automatically if this is permitted by the location’s warehouse setup), specifies a picking methodfor optimization of the warehouse handling, and then goes to the Create Pick function. Warehouseinstructions are created and pick lines are deleted (if fully assigned).7.PickThe warehouse employee picks items according to the warehouse instructions and posts thedocuments. Warehouse instructions are deleted if fully handled. Pick requests are deleted if fully handled.If picking was initiated by a pick order, a posted pick order is created and the pick order is updatedor deleted if fully handled.If picking was initiated by a warehouse shipment order, the status of the corresponding warehouseshipment header is changed to “Completely Picked”, “Partially Picked”, “Partially Shipped”, or“Completely Shipped.”8.Re-pickIf items for a warehouse shipment order have been staged for a while, a repicking process shouldbe initiated before shipping in order to move the items from a staging bin to a shipping bin. In theWarehouse Shipment window, the user specifies a shipping bin and calls the “Create Pick” function,steps 3, 5, 6, 7 above are repeated, and the status of the warehouse shipment order lines change toindicate that shipping (step 9) is now possible.9.ShipAfter the items have been picked and moved to shipping bins, the user goes to the post shipmentfunction. Sales orders, transfer orders and purchase return orders are posted as shipped. A postedwarehouse shipment is created, and the warehouse shipment is deleted when it is fully posted. Theoutbound warehouse request is deleted if fully handled, and warehouse entries are created.11WAREHOUSE MANAGEMENT SYSTEMS – TECHNICAL WHITEPAPER

Posted ReturnShipmentPosted TransferShipmentPurchase ReturnOrderTransfer Order9Sales OrderPostedSales ShipmentRelease1Outbound Request(internal systemdata)92Posted Whse.Shipment OrderWhse. Shipment OrderStatusPick.Post.9Pick Order38Release4Pick Request(internal systemdata)Pick Assignment Worksheet58Create Pick.6810Whse. InstructionsPost.7Warehouse Outbound Flow DiagramMovements within the WarehouseThe flow of items from bin to bin within a warehouse location can be controlled by using theMovement Worksheets. Movements are exclusive of pick and put-away and can be limited only byblocking or warehouse classes.12WAREHOUSE MANAGEMENT SYSTEMS – TECHNICAL WHITEPAPER

Development DesignSolution ConceptTo enable the handling of items on the zone and bin level, all the information must be traced for eachtransaction or movement in the warehouse. Therefore, an entry-table, Warehouse E

Warehouse Management Systems (WMS) for Microsoft Dynamics NAV is developed as an integrated offering for the Microsoft Navision application. It is a solution for the Microsoft Navision customer that has a need for managing inventory and distri