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Quarantine Orders in Business Central

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Posted on by MA-14110917-0

If there’s a defective inventory item they can quarantine one out, split the line on the put away, and put 9 in storage, 1 in quarantine.
If they got a credit memo and never get the item back, does the quarantined item go to scrap? Or how does it get written off ? if they need to make an inventory and finance adjustment for this do they manually complete a warehouse item journal and physical inventory journal?

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Dynamics 365 general

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MichaelTorres 86 on at

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Hi,

if the item is confirmed defective and you’re not getting it back, you can process it as scrap. You can use the Warehouse Item Journal to adjust the inventory levels, move the quarantined item to a scrap location, or directly reduce it from inventory if that suits your process.

You’ll then need a financial adjustment to write off the value of the scrapped item. This can be done with the Physical Inventory Journal, where you adjust both the quantity and valuation, marking the item as a loss in inventory.

If you have a credit memo issued for this item, record the adjustment in both the inventory and finance journals to ensure that the correct financial impact of the item’s removal is reflected.

I hope this helps to answer your questions

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Suresh Kulla 50,278 Super User 2026 Season 1 on at

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You have to manually adjust the inventory if there is a scrap or inventory doesn’t match, once you do that adjustment in warehouse item journal, just run adjust cost item entries which will take care of financial, you don’t have to do a separate transaction for it.

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Gerardo Rentería Ga... 26,790 Most Valuable Professional on at

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Hi

I hope this can help you

(3) Publicación | LinkedIn

Efficient Quarantine Management with Business Central

Best

GR

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Khushbu Rajvi. 22,424 Super User 2026 Season 1 on at

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Hope this helps:https://learn.microsoft.com/en-us/dynamics365/supply-chain/inventory/quarantine-orders

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YUN ZHU 100,998 Super User 2026 Season 1 on at

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The general practice is to carry out the scrap application process outside the system and make negative adjustments through the Item Journal after approval.

And, If the goods are found to be out of stock during inventory, adjustments should be made through the physical inventory journal.

Hope this helps.

Thanks.

ZHU

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Valentin Castravet 32,689 Super User 2026 Season 1 on at

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Yes you would typically manually complete an item journal adjustment to scrap the item.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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