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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / How to ringfence inven...
Small and medium business | Business Central, N...
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How to ringfence inventory for different sales channels

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Posted on by DK-17100705-0 7
Hi there,
 
I have a client who has different sales channels - general e-commerce, Dealers, Amazon. They want to manage stock levels separately for each - i.e. ITEM 0001 - total inventory 50 but 10 is general ecommerce, 15 is for dealers and 25 for amazon.
I am setting these up as Locations and can then use SKUs to manage replenishment.
 
However, for the physical warehouse the client wants to hold all the stock together in a specific location. Clearly the warehouse docs are also by location. Also, any ISV (Insight Works, Tasklet) work on a per location basis when you sign in. Ideally they would be told to pick for a given product from a single location - but the shipment driving it would be for a specific channel and the stock level for that channel would be reduced after the pick. 
 
Has anyone come across this scenario - does the above make sense? 
 
Thanks
 
Duncan
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Dynamics 365 Business Central
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  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 28,396 Super User 2025 Season 2 on at
    How to ringfence inventory for different sales channels
    What about using variants? For example, you could have item 0001 with variants like General, E-commerce, Dealers, and Amazon. I'm leaning toward variants because SKUs can be created either per variant or per location.
     
  • Suggested answer
    Jun Wang Profile Picture
    Jun Wang 8,152 Super User 2025 Season 2 on at
    How to ringfence inventory for different sales channels
    One way is to set up multiple locations to differentiate item from different vendors, but it seems this is not an option. You could consider use workaround like dimensions, zones, bins to achieve the purpose.
  • Vinayak Vishnu Sagvekar Profile Picture
    Vinayak Vishnu Sagv... 210 on at
    How to ringfence inventory for different sales channels
    Hey Friend,
     
    Yes, this scenario is fairly common for businesses managing inventory across different sales channels while keeping all physical stock in a single location. The approach you're considering, where each sales channel is set up as a Location in Business Central, can work well, but it does introduce certain complexities in warehouse operations and reporting. Here are a few strategies and considerations to manage this setup effectively:

    1. Use Locations for Sales Channels

    • Separate Stock by Channel: As you mentioned, by setting up separate Locations for each sales channel (e.g., General E-commerce, Dealers, and Amazon), you can track and allocate inventory for each channel separately. This is useful for stock availability visibility and helps you avoid overcommitting inventory to any one channel.
    • SKU Management: Creating Stockkeeping Units (SKUs) for each item-location combination will allow you to set different replenishment parameters and stock levels for each channel.

    2. Virtual Locations with a Central Physical Location

    • Main Physical Location: Maintain a single, physical warehouse location (e.g., "MAIN") where all items are stored physically. This location will be used by warehouse staff for actual picking and receiving operations.
    • Channel-Specific Virtual Locations: Create virtual locations (e.g., “GEN-ECOMM,” “DEALERS,” “AMAZON”) to represent each channel. These locations don’t correspond to specific areas in the warehouse but serve to logically divide your stock for allocation purposes.

    3. Bin and Item Allocation for a Physical Warehouse

    • Binning: If your client is using bins within the warehouse, assign all inventory to a single bin in the physical location. The virtual locations (sales channels) will be logical placeholders for stock allocation, not physical areas.
    • Inventory Adjustments: Regularly adjust inventory by moving quantities from the main physical location to virtual locations based on sales channel allocation. Use item reclassification journals or transfer orders to move stock between the main and virtual locations, thereby updating the stock levels for each channel.

    4. Managing Shipments and Picking for Channels

    • Sales Order Processing: Sales orders for each channel will be processed under their respective virtual location. After an order is created, the stock will be allocated based on the virtual location's availability.
    • Warehouse Picking: In the actual warehouse, pickers will need to pull items from the main physical location. You can set up your warehouse processes to instruct pickers to pick from the physical location, regardless of the virtual location the order is for. After picking, use an inventory transfer to reduce the corresponding virtual location’s inventory.
    • Pick and Ship Strategy: To implement this, you could consider creating warehouse picks for the MAIN location, but immediately afterward, have the system deduct inventory from the appropriate virtual location. This can be done via a customization or a manual adjustment entry after each pick.

    5. Using Job Queue or Automation for Inventory Allocation

    • Set up a job queue to periodically allocate inventory from the main physical location to the virtual locations, ensuring each channel has its predefined stock level. The job could automatically adjust stock based on replenishment needs or predefined parameters.
    • Another option is to automate the inventory transfer after each sale by using an Event Subscriber. This subscriber could move the appropriate amount from the main physical location to the virtual location associated with the sale.

    6. Integrating with ISVs (Insight Works, Tasklet)

    • Login by Channel: Since ISVs like Insight Works and Tasklet work on a per-location basis, have your warehouse staff sign into the main warehouse location (e.g., "MAIN") for physical handling. Set up separate permissions or login profiles for these applications based on the physical location to avoid confusion.
    • Customization: You may need a customization for ISV apps if they need to allocate stock based on the virtual channel location. For instance, if the ISV system drives stock allocation from the same location, you could configure it to pick from MAIN but reduce inventory from the virtual location post-pick.

    7. Consider Reservation Management

    • Reserve Inventory: Consider using Business Central’s Item Reservation feature to ensure stock for each channel location is set aside as sales orders are created. Reservation entries can be applied to virtual locations, even if they’re all stored in the physical warehouse.
    • Stock Replenishment: By using replenishment methods on SKUs, you can trigger stock transfers to virtual locations as they reach lower thresholds. This will give you better control over which channels get priority on stock.

    8. Alternative: Use Dimensions for Channels

    • If managing separate virtual locations becomes too complex, consider using Dimensions for each sales channel instead of locations. In this case:
      • You’ll have one central location for physical inventory, but you can categorize each sales transaction by sales channel through dimensions (e.g., “Channel: ECOMM, DEALERS, AMAZON”).
      • This approach simplifies warehouse operations by keeping a single inventory location but requires additional setup for reporting to see available stock by sales channel.

    Summary

    The best approach depends on the scale of your operations and the ease with which warehouse staff can manage multiple virtual locations. Using virtual locations gives greater control over stock allocation but adds complexity to warehouse operations, while dimensions keep the warehouse management simpler but require more detailed reporting.

    You may also want to explore automations and event triggers to streamline stock reallocation and ensure the correct inventory levels across channels. This way, your client can maintain accurate stock levels by channel while the warehouse team works from a centralized physical stock location.

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