A Hands-on Guide to Managing Inventory with Microsoft Dynamics 365 Business Central
Inventory is the core of many businesses. Whether you’re selling products, making goods, or managing a supply chain, keeping the right stock at the right time is key. Microsoft Dynamics 365 Business Central helps businesses handle inventory with ease and clarity.
1. Central Item List
Item lists are the backbone of inventory management. Business Central lets you create a structured list of all your products—whether you buy them, sell them, or just store them.
- -A unique item number
- -A name and category
- -Units of measure (e.g., pieces, boxes, liters)
This organized list becomes the single source of truth across all departments.
2. Real-Time Inventory Levels
Business Central keeps track of:
- -Quantity on hand
- -Quantity on purchase orders
- -Quantity on sales orders
- -Available to promise
This helps businesses plan better and fulfill orders faster without confusion.
3. Multi-Location Tracking
If you manage inventory in multiple places (like stores, warehouses, or branches), Business Central supports that too. You can:
- -Transfer stock between locations
- -Track availability per location
- -Reduce delays in shipping and handling
4. Reorder and Stock Planning
With built-in reorder logic, Business Central tells you when to buy and how much to buy. It considers:
- Sales history
- Vendors lead time
- Safety stock levels
This reduces guesswork and supports a smooth procurement process.
5. Purchase and Sales Integration
When a purchase order is received or a sales order is shipped, inventory updates automatically. This minimizes the need for manual updates and keeps everyone on the same page.
6. Lot and Serial Number Tracking
Business Central supports lot numbers and serial numbers. This helps with:
- -Product recalls
- -Warranty tracking
- -Regulatory compliance
7. Inventory Valuation Methods
You can choose how to value your inventory:
- –FIFO (First In, First Out)
- –Average Cost
- –Standard Cost
This supports accurate financial reporting and cost control.
8. Inventory Transfers
Do you need to move items from one location to another? Use transfer orders. You can record:
- -Items sent
- -Shipping and receiving dates
- -Sending and receiving locations
9. Inventory Adjustments
Sometimes physical counts don’t match system data. Business Central allows easy stock corrections for:
- -Lost items
- -Damaged goods
- -Audit discrepancies
10. Reports and Insights
With built-in reports and dashboards, you can track:
- -Inventory turnover
- -Stock aging
- -Low or slow-moving items
- -Total stock value
These insights will assist you in making well-informed decisions and planning ahead.
Why It Matters
Good inventory management helps you:
- Avoid stockouts
- Reduce excess stock
- Serve customers better
- Lower storage and holding costs
Business Central gives you the tools to manage stock simply and efficiently.
If you’re using spreadsheets or disconnected tools to manage inventory, now is a good time to explore Business Central. It gives you more control, better insights, and smoother operations—all in one place.
We hope you found this blog useful.
If you would like to discuss anything, you can reach out to us at transform@cloudfronts.com.
