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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / How to Calculate Inven...
Small and medium business | Business Central, N...
Suggested Answer

How to Calculate Inventory (including reject, damage) and in-process (staging in or out) in Ms BC?

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Posted on by CU02010536-0 10
Hi,
 
I'm a new user in Ms BC, since 2 months ago and I have so many question about this ms BC. For example, how do we get a quantity in our inventory that include reject items, damage items, and in-process items (staging in or out)? if i already get the quantity, how do i get the value of this quantity?
 
Thank you.
Doles
Categories:
Dynamics 365 Business Central
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  • Suggested answer
    Dynamics_Decoded_Gokul Profile Picture
    Dynamics_Decoded_Gokul 487 on at

    In Business Central, inventory quantity and value depend on location setup and posting status.

    • Rejected / damaged items
      → Usually stored in a separate location or bin (for example, QC, Rejected, Damaged).
      → These quantities are still part of inventory until they are posted as write-off or scrap.

    • In-process / staging items (in or out)
      → Quantities appear as:

      • Quantity on Hand (already posted)

      • Quantity on Purchase Order (incoming, not yet received)

      • Quantity on Sales Order (outgoing, not yet shipped)

      • Warehouse entries for staging bins

    To see total quantity, use:

    • Item List → FactBox → Inventory / Availability by Location

    • Item Availability by Event or Location

    To get the value of these quantities:

    • Use Item → Statistics or Inventory Valuation report

    • Value is calculated based on the costing method (FIFO, Average, Standard, etc.)

    👉 Important:
    Only posted inventory has value. Items still on orders or staging (not posted) have quantity visibility but no inventory value until posted.

    This is the standard and recommended way in Business Central.

  • Suggested answer
    Khushbu Rajvi. Profile Picture
    Khushbu Rajvi. 22,128 Super User 2026 Season 1 on at
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 32,157 Super User 2026 Season 1 on at
    To see the quantity of inventory you have, there are several options. I wrote a blog post about that here - 4 Ways to View How Much Inventory You Have in Dynamics 365 Business Central - Dynamics 365 Business Central Insights
     
    The best way to get the value of inventory is to use the Inventory Valuation report. You can search for it using the search button in the upper right and apply filters when running the report as required. For example, add a filter for the specific location your items are in. 
     
     
  • Suggested answer
    OussamaSabbouh Profile Picture
    OussamaSabbouh 12,878 Super User 2026 Season 1 on at
    Hello Doles,
     
    Business Central tracks good, damaged/rejected, and in-process inventory separately using locations/bins and document status (POs, picks, transfers). Quantities are visible on the Item Card / Availability, and values come from Item Ledger & Value Entries, shown in Inventory Valuation reports. Use separate locations/bins to control what’s included.
     
    Regards,
    Oussama Sabbouh
  • Suggested answer
    TAHER_El_Mehdi Profile Picture
    TAHER_El_Mehdi 836 on at

    Business Central does not automatically include these statuses in standard inventory unless you post them to specific locations or use item journals:

    • Rejected/Damaged Items:

         
      • Create a dedicated Location (e.g., “REJECT” or “DAMAGED”) or use Bins within your warehouse.
      • Post the items using Item Journals or Warehouse Put-away/Movement to move them into that location.
      • This way, they remain part of inventory but are segregated for reporting.

        •  
    • In-Process / Staging Items:

      • Use Warehouse Zones/Bins (e.g., “STAGING-IN” or “STAGING-OUT”) or a separate Location for WIP.
      • Post receipts or transfers to these bins so they appear in inventory but are clearly marked as “in-process.”
  • Suggested answer
    Sumit Singh Profile Picture
    Sumit Singh 11,757 Super User 2026 Season 1 on at
    Hi, 
     
    As per my knowledge, you can use different locations (if already not created) like Rejection location, In-Process location etc. and do those rejection, damage entries under those locations. After that you can use the inventory valuation report for those locations which will show the quantity as well as values.
  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 99,084 Super User 2026 Season 1 on at
    Using a location or bin is the simplest and most direct way to manage it.
    PS: Dynamics 365 Business Central: How to quickly check inventory quantity for locations at Item-Variant level (Variant inventory per location)
     
    Thanks.
    ZHU

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