Inventory Damaged

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Posted on by Honey98

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Hi everyone,

Is anyone aware about How to track damaged inventory?" in business central.

This is the case - "Inventory is incorrectly captured in the system or one item is damaged etc. so they need to remove it from inventory but still show it somewhere".

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Dynamics 365 Business Central

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Mustafa Omerbegović 1,462 Super User 2025 Season 2 on at

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Inventory Damaged

Hello,

If you need to have the available quantity in your analytics for those damaged items, you may create a new location to transfer your damaged items.

Transfer your items to that location, and you will have all your damaged inventory in the same location.

Also, if you need to decrease the quantity of damaged items, you can use the Item journal with a Negative adjustment entry type. Also, use a unique item batch to post these entries, and you will have an easier way to filter those items.

If you have more specific questions about some processes, feel free to ask.

Greetings

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Honey98 162 on at

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Inventory Damaged

Hi Mustafa,

Do we not have any already existing way for this. just to mark an item as damaged.

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Sagar Dangar, MCP 783 Super User 2025 Season 2 on at

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Inventory Damaged

Hi,

Create a Reason Code called DAMAGED.

Use an Item Journal to post a negative adjustment of items with that reason.

Tracking:

After posting item jounal , Go to value entry and filter reason code = damage. you will find all items entries.

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Mustafa Omerbegović 1,462 Super User 2025 Season 2 on at

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Inventory Damaged

Hello,

There is no action like that by the standard.

There is a field for blocking items on the Item card, but blocking will not affect any of your analytics for that item. It will stay with the same analytics in your ledger entries, but it will not be able to use it after blocking.

Everything that you need to do through the BC processes, you will need to process through some documents to have appropriate posting entries for your processes.

If you want to have an action that will mark items as damaged on one click, then you will need to make some customisations to cover your processes.

Greetings

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Mansi Soni 8,887 Super User 2025 Season 2 on at

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Inventory Damaged

Hello,
In Business Central, tracking and removing damaged or incorrectly recorded inventory can be efficiently managed using the Item Journal. The recommended approach is to post a Negative Adjustment through the Item Journal to reduce the inventory quantity. To do this, you navigate to the Item Journal, select the appropriate template and batch and create a new line where the entry type is set to Negative Adjustment. You then specify the item number, location, and the damaged quantity (entered as a positive number), and assign a Reason Code such as DAMAGED to track the reason for the adjustment. Reason Codes can be created to represent different scenarios, such as damage or incorrect entries, and they are crucial for maintaining an audit trail and supporting accurate reporting.

Alternatively, if you want to physically and logically separate damaged goods before removing them from inventory, you can first move them to a dedicated location, such as DAMAGED or QUARANTINE, using the Item Reclassification Journal. After the transfer, you can then use the Item Journal to post a Negative Adjustment from the new location. This method provides better visibility and control over damaged stock while ensuring it’s not mixed with sellable inventory.

Hope this will help you to manage it without customization!

Regards,
Mansi Soni

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RockwithNav 8,417 Super User 2025 Season 2 on at

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Inventory Damaged

The best way to handle this for the current stock is to navigate to the Physical Inventory Journal and use the Calculate Inventory function. The system will display the current stock levels for each item. From there, you can make the necessary adjustments directly in the journal. The system will automatically treat these as positive or negative adjustments, and you can then post the entries accordingly.

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Andrés Arias 4,164 Super User 2025 Season 2 on at

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Inventory Damaged

Hello,

The best option would be to perform Product Inventory, through the use of the Physical Inventory journal. Adjust the products in BC according to the physical we find.

In the journal, you can use a Reason Code called DAMAGED, to be able to track.

I hope I can help.

Regards,

Andres

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