80257: Inventory Management in Microsoft Dynamics NAV 2009
About this Course
This two-day instructor-led course provides students with the knowledge and skills to set up all aspects of the inventory and basic warehousing functionality available for Microsoft Dynamics NAV 2009, as well as conceptual information about inventory management in general. This course demonstrates how to perform availability analysis, how to link demand with supply, how to set up multiple locations, how to organize location transfers, how to handle basic warehouse tasks, and how to set up, use, manage, trace and reserve items with serial/lot numbers.
A thorough understanding of these topics allows you to help companies meet their daily challenges in setting up and managing multiple, independently organized, locations, while still retaining control and optimizing inventory flows.
Audience Profile
This course is intended for partners wanting to learn how to set up and use inventory management functionality in Microsoft Dynamics NAV2009.
The class is targeted toward sales people, consultants, and implementers who need to master the inventory management functionality to support or teach it to end users, such as order processors, account managers, and purchasing agents.
At course Completion
After completing this course, students should be able to do the following:
- Determine actual and projected availability.
- Make manual adjustments to inventory quantities.
- Count and record how many items are physically present in inventory.
- Reclassify an inventory item by changing information attached to its item ledger entry.
- Reserve items on inventory or inbound.
- Track from demand to matching supply and vice versa.
- Distinguish reservations from order tracking links.
- Set up a company with multiple locations.
- Link customers and vendors to locations.
- Set up responsibility centers.
- Link users, customers, and vendors to responsibility centers.
- List multi-location setup guidelines.
- Review setup data in the CRONUS International Ltd. demonstration company.
- Create sales and purchase orders for multiple locations.
- Create and setup stockkeeping units.
- Review the setup of location transfers.
- Explain central transfer concepts.
- Create and post manual transfers.
- Identify the locations and quantities of items in transit.
- View inventory value of items in transit.
- Set up locations for warehousing, including bin setup.
- Receive and put away items using the purchase order, inventory put-away, or warehouse receipt documents.
- Pick and ship items using the sales order, inventory pick, or warehouse shipment documents.
- Move items between bins.
- Adjust item quantities in bins.
- Set up Item Tracking.
- Distinguish when and how to use serial/lot numbers.
- Handle inbound serial lot numbers.
- Handle serial/lot numbers on inventory.
- Handle outbound serial/lot numbers.
- Trace posted serial/lot numbers throughout the supply chain.
- Navigate with serial/lot numbers.
- Print serial/lot number documents and reports.
- Reserve items with serial/lot numbers.
Course Outline
Module 1: Inventory Control
This module explains how to control inventory by analyzing and maintaining inventory levels to keep the supply chain flowing. It explains how to post adjustments to inventory, either with the item journal, the physical inventory journal, or the reclassification journal.
Lessons
- Analyze Item Availability
- Adjust Inventory
- Count Inventory
- Reclassify Inventory
After completing this module, students should be able to do the following:
- Determine actual and projected availability.
- Make manual adjustments to inventory quantities.
- Count and record how many items are physically present in inventory.
- Reclassify an inventory item by changing information attached to its item ledger entry.
Module 2: Item Reservations and Order Tracking
This module explains how to link demand with supply. Both reservations and order tracking links serve the same purpose of helping order processors and planners meet customer requirements without increasing inventory carrying costs. However, there are some fundamental differences in what can be reserved and what can be order tracked.
Lessons
- Reserve Items
- Track Supply and Demand
- Item Reservations versus Order Tracking
After completing this module, students should be able to do the following:
- Reserve items on inventory or inbound.
- Track from demand to matching supply and vice versa.
- Distinguish reservations from order tracking links.
Module 3: Use Multiple Locations
This module explains how to manage inventory in dispersed warehouses, using the concepts of locations, responsibility centers, and stockkeeping units. While locations are used to define places that handle physical placement and quantities of items, responsibility centers represent places that administer the trade processes. SKU’s are used to help create individual replenishment plans per location and or variant.
Lessons
- Set Up a Company with Multiple Locations
- Link Customers and Vendors to Locations
- Set Up Responsibility Centers
- Link Responsibility Centers
- Guidelines for Setting Up a Company with Multiple Locations
- CRONUS Organizational Setup Overview
- Sell and Purchase in a Company with Multiple Locations
- Control Inventory at Multiple Locations
Lab : Create and Set Up a New Location
Lab : Create and Set Up a New Responsibility Center
Lab : Create Purchase Orders in a Company with Multiple Locations
Lab : Create a Sales Order in a Company with Multiple Locations
Lab : Create and Set Up Stockkeeping Units
After completing this module, students should be able to do the following:
- Set up a company with multiple locations.
- Link customers and vendors to locations.
- Set up responsibility centers.
- Link users, customers, and vendors to responsibility centers.
- List multi-location setup guidelines.
- Review setup data in the CRONUS International Ltd. demonstration company.
- Create sales and purchase orders for multiple locations.
- Create and setup stockkeeping units.
Module 4: Transfer between Locations
Many large wholesale distributors and manufacturers have a number of branch warehouse locations, each servicing a specific area or region. To minimize their total inventory level, these companies often follow the strategy of having safety stock in one main warehouse, while maintaining minimum inventory in regional warehouses. This practice requires the transfer of inventory from the main warehouse to the regional ones. Companies also move inventory from one location to another to satisfy unexpected demand.
If the company is large enough, a significant amount of inventory can be in transit at any given time. This creates problems from both a financial and a logistical perspective. Financially, it is difficult to determine the value of the inventory, because it is in transit. Logistically, it is not possible to accurately estimate total availability of the inventory.
With the Location Transfers granule, companies use a transfer order to accurately track the movement of inventory from one location to another. To transfer items, companies create a transfer order containing a line for each inventory item being transferred. When the inventory is shipped from the source location, it is considered to be in transit until received at its destination.
Lessons
- Set Up Transfers
- Use Transfer Orders
- View Items in Transit
Lab : Set Up a Transfer Route
Lab : Transfer Items between Locations
Lab : Trace Item from Serial Number
Lab : Pick and Ship with Inventory Pick Documents
After completing this module, students should be able to do the following:
- Review the setup of location transfers.
- Explain central transfer order concepts.
- Create and post manual transfers.
- Identify the locations and quantities of items in transit.
- View inventory value of items in transit.
Module 5: Basic Warehouse Tasks
Maximum efficiency, data accuracy, and reliability in inventory management and warehousing operations are of the utmost importance to any company striving for excellence in customer service and cost reduction. While these goals are relevant to a business, not every company considers warehousing as their core competence, which in turn reflects on their willingness to invest in extensive warehousing solutions and accept a long implementation time.
With this in mind, companies with straightforward warehousing needs, such as small distributors, manufacturing or service companies, have a number of challenges to deal with while ensuring that overall goals are reached.
To sustain efficiency and short order handling time, items must be easy to find in the warehouse. Additionally, warehouse workers must be able to focus on carrying out physical movements rather than spending time in front of computers recording information. Moreover, in companies that experience high turnover of warehouse workers, the ability to train them quickly on using the program is highly relevant.
Lessons
- Set Up Basic Warehousing
- Receive and Put Away Items
- Pick and Ship Items
- Move and Adjust Items in Warehouse
Lab : Set up a Warehouse Location
Lab : Receive and Put Away from the Purchase Document
Lab : Receive with a Warehouse Receipt
Lab : Pick and Ship with Inventory Pick Documents
Lab : Ship with Warehouse Pick and Ship Documents
Lab : Move Items to an Empty Bin
After completing this module, students should be able to do the following:
- Set up locations for warehousing, including bin setup.
- Receive and put away items using the purchase order, inventory put-away, or warehouse receipt documents.
- Pick and ship items using the sales order, inventory pick, or warehouse shipment documents.
- Move items between bins.
- Adjust item quantities in bins.
Module 6: Serial/Lot Numbers
As the flow of goods in the modern supply chain becomes more complex, the ability to keep track of itemsincreases in importance to the companies in the supply chain. While monitoring an item's transaction flow can be obligatory in certain businesses (for instance, those dealing with hazardous products), other businesses may find it advantageous to monitor products that are associated with warranties or have expiration dates.
The Item Tracking granule in Microsoft Dynamics NAV provides a company with an easy-to-use tracking system, which can take into account information about each unique piece of merchandise. This includes tracking the following information:
- When it was received
- Where it was placed
- When it expires
- Which customer bought it and when
The functionality is based on using serial and lot numbers and allows the user to receive and ship multiple quantities with serial and lot numbers from a single order line entry. Item tracking entries, which represent the transaction history of each individual item with serial and/or lot numbers, are the records used to trace an item along its movement through the supply chain.
Lessons
- Set Up Item Tracking
- When to Use Item Tracking
- Handle Inbound Serial/Lot Numbers
- Handle Serial/Lot Numbers on Inventory
- Handle Outbound Serial/Lot Numbers
- Trace Serial/Lot Numbers
- Navigate with Serial/Lot Numbers
- Print Serial/Lot Numbers in Documents and Reports
Lab : Buy and Sell Items with Serial/Lot Numbers
Lab : Auto-Pick Monitors by FEFO
Lab : Trace Item from Serial Number
After completing this module, students should be able to do the following:
- Set up item tracking.
- Distinguish when and how to use serial/lot numbers.
- Handle inbound serial lot numbers.
- Handle serial/lot numbers on inventory.
- Handle outbound serial/lot numbers.
- Trace posted serial/lot numbers throughout the supply chain.
- Navigate with serial/lot numbers.
- Print serial/lot number documents and reports.
- Reserve items with serial/lot numbers.
Prerequisites
Before attending this course, students must have:
- General knowledge of Windows
- Completed the Introduction in Microsoft Dynamics NAV 2009 training or on-line Tutorials
- Basic knowledge of distribution and logistics
In addition, it is recommended, but not required, that students have:
- Completed the Trade in Microsoft Dynamics NAV 2009 training or on-line Tutorials