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Understanding Multi-Location Planning in Microsoft Dynamics 365 Business Central

Jun Wang Profile Picture Jun Wang 4,791 Super User

 

Understanding Multi-Location Planning in Microsoft Dynamics 365 Business Central

In Microsoft Dynamics 365 Business Central, managing inventory across multiple locations is a common scenario for businesses that operate warehouses in various geographical areas. A frequently asked question relates to the functionality of the Planning Worksheet and its behavior concerning purchase orders across different locations. This blog aims to clarify how Business Central handles these scenarios and what settings you might need to adjust to ensure your planning reflects the actual needs of your business.

Scenario: Planning Worksheet Not Considering POs in Different Locations

Imagine a situation where you have created a sales order in one of your locations and then run Planning Worksheet with the location field left blank. However, the system does not consider the POs already available at another location, instead, it suggests creating new POs for the location.

Why Does This Happen?

Business Central's Planning Worksheet is designed to focus on the specific needs of the location specified in the setup or directly in the document being analyzed. If no location is specified, it assumes that the requirements need to be fulfilled locally within the same location as the demand. This default behavior ensures that each location maintains an optimal level of inventory independent of other locations unless explicitly configured to consider them.

How to Handle Cross-Location Inventory in Planning

To ensure that the Planning Worksheet considers inventory across different locations, you need to configure the item and location settings appropriately:

  1. Setup Item Replenishment by Location:

    • For each item that might be required across locations, define the replenishment strategy explicitly.
    • For example, if Item XYZ is stored in both Location A and Location B, you can set the replenishment strategy for Location A to 'Purchase' and for Location B to 'Transfer' with the transfer from Location A.
  2. Sales Order Considerations:

    • When a sales order is created for Location B and there isn't enough inventory, Business Central, configured correctly, should suggest a transfer order from Location A where the inventory is sufficient. Conversely, if a sales order from Location A lacks inventory, and Location B has excess, the system should still suggest a purchase for Location A, depending on the setup.

 

Conclusion

Microsoft Dynamics 365 Business Central offers robust tools for managing inventory across multiple locations, but it requires careful setup to ensure that the Planning Worksheet accurately reflects the broader operational realities of your business. By configuring each item's replenishment rules and understanding how the Planning Worksheet interacts with these settings, businesses can optimize their inventory management and reduce unnecessary procurement expenses

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