Quarantine Management in Microsoft Dynamics 365 finance and operations: Part -1

In my last blog, I explained how an item which was received in the default main warehouse generated a quarantine order upon failing a quality order testing. Here, item was first received in default main warehouse and then moved to quarantine warehouse for further inspection as failed the test. You can refer both the blogs here Part 1 and Part 2

In this blog, I will discuss a business scenario where items are required to be directly received in a quarantine warehouse for inspection and only after final inspection items are moved into main default warehouse.

Below is the brief outline of the business scenario:

Setup:

1. Map a quarantine warehouse with a main warehouse.

Also, ensure a separate location (item enabled with location storage dimension) is created to isolate items for vendor return in the main warehouse. Here, (WH) warehouse 11 is the default main warehouse and warehouse 18 is the quarantine warehouse. Both are linked with Site 1.

2. Enable “Quarantine management” in item model group. This item model group will then be mapped with the item.

Execution:

Purchase order delivered by vendor US-101 for 6 quantity is received. As per the setup, this will be received in quarantine warehouse 18. Quarantine order (000006) of 6 quantity is created for inspection.

Note: 1. For each line in a purchase order, a separate quarantine order will generate.

2. Status of quarantine order will be “Started” as they are automatically created upon product receipt.

3. Item with tracking dimension serial number, quarantine order will be created for each serial number item.

 Inventory transaction below shows that 4 transactions are created for a quarantine order.

Assuming that after the inspection, we found 2 quantities are damaged by company’s personnel, 2 quantities need to be returned to vendor as failed quality parameters and 2 quantities are good to be sold. This means 4 quantities failed and 2 quantities passed upon inspection in the quarantine warehouse.

Let’s split the quarantine order 000006 into 3 separate quarantine orders i.e., 000007, 000008 and 000009 for further processing.

A) Scrap the quarantine order 000007 for 2 quantities:

Using the scrap function this order will be scrapped within quarantine warehouse 18.

B) Quarantine order 000008 for 2 quantities to be received via item arrival journal in a location for VENDOR RETURN: Item cannot be returned from the quarantine warehouse and must be moved into main warehouse first.

C) Quarantine order 000009 for 2 quantities to be processed as PASSED

That’s it for this blog. In next blog we will see how vendor return can be processed for the failed quarantine order.

Keep reading and sharing. Thank You.