WAREHOUSE MANAGEMENT
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1 MICROSOFT DYNAMICS NAV 2009 WAREHOUSE MANAGEMENT
2 Last Revision: February 2009 The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication. This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation. Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property Microsoft Corporation. All rights reserved. Microsoft Dynamics, Microsoft PowerPoint Microsoft SQL Server and Microsoft Dynamics NAV MorphX are trademarks or registered trademarks of Microsoft Corporation. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. This course content is designed for Microsoft Dynamics NAV 2009.
3 Table of Contents Introduction 0-1 Welcome Microsoft Dynamics Courseware Contents Documentation Conventions Student Objectives Chapter 1: Warehouse Management Systems Overview 1-1 Objectives Introduction WMS Overview Warehouse Workflow Summary Quick Interaction: Lessons Learned Chapter 2: Setting Up Warehouse Management Systems 2-1 Objectives Introduction Warehouse Setup Locations Setup Put-away Template Setup Item Setup Zone Setup Bin Types Setup Bin Ranking Setup Creating Bins Lab Creating Zones and Bins Warehouse Class Setup Summary Lab Setting Up Zones and Bins with Special Conditions Chapter 3: Receiving Orders 3-1 Objectives Introduction Receive and Put-away Lab Receiving and Putting Items Away Lab Cancelling the Receipt Cross-Docking Summary Test Your Knowledge Quick Interaction: Lessons Learned Solutions Chapter 4: Internal Warehouse Processes 4-1 Objectives Introduction Item Movements Lab Movement Internal Pick and Put-away Lab Use Internal Pick i
4 Warehouse Management in Microsoft Dynamics NAV 2009 Journals Counting Working with Warehouse Entries Summary Test Your Knowledge Quick Interaction: Lessons Learned Solutions Chapter 5: Shipping 5-1 Objectives Introduction Shipping the Items Shipping Cross-Docked Items Breakbulk Summary Test Your Knowledge Quick Interaction: Lessons Learned Solutions Chapter 6: Item Tracking Within Warehouse Management Systems 6-1 Objectives Introduction Preparing Warehouse Management Systems for Item Tracking Receiving Items with Item Tracking Information Moving Items with Item Tracking Information Shipping Items with Item Tracking Information Picking According to FEFO Lab Item Tracking with WMS Summary Test Your Knowledge Quick Interaction: Lessons Learned Appendix A: Warehousing Granules A-1 Related Granules... A-6 Appendix B: Terminology List B-1 Navision Warehouse Management Systems Terminology List... B-1 ii
5 Introduction INTRODUCTION Welcome We know training is a vital component of retaining the value of your Microsoft Dynamics NAV 2009 investment. Our quality training from industry experts keeps you up-to-date on your solution and helps you develop the skills necessary for fully maximizing the value of your solution. Whether you choose Online Training, Classroom Training, or Training Materials; there is a type of training to meet everyone's needs. Choose the training type that best suits you so you can stay ahead of the competition. Online Training Online Training delivers convenient, in-depth training to you in the comfort of your own home or office. Online training provides immediate access to training 24 hours-a-day. It is perfect for the customer who does not have the time or budget to travel. Our newest online training option, ecourses, combine the efficiency of online training with the in-depth product coverage of classroom training, with at least two weeks to complete each course. Classroom Training Classroom Training provides serious, in-depth learning through hands-on interaction. From demonstrations to presentations to classroom activities, you receive hands-on experience with instruction from our certified staff of experts. Regularly scheduled throughout North America, you can be sure you will find a class convenient for you. Training Materials Training Materials enable you to learn at your own pace, on your own time with information-packed training manuals. Our wide variety of training manuals feature an abundance of tips, tricks, and insights you can refer to again and again: Microsoft Dynamics Courseware The Microsoft Dynamics Courseware consists of detailed training manuals, designed from a training perspective. These manuals include advanced topics as well as training objectives, exercises, interactions and quizzes. Look for a complete list of manuals available for purchase on the Microsoft Dynamics website: 0-1
6 Warehouse Management in Microsoft Dynamics NAV 2009 Microsoft Dynamics Courseware Contents Test Your Skills Within the Microsoft Dynamics Training Materials you find a variety of different exercises. These exercises are offered in three levels to accommodate the variety of knowledge and expertise of each student. We suggest you try the level three exercises first, if you need help completing the task look to the information in the level two exercises. If you need further assistance each step of the task is outlined in the level one exercise. Challenge Yourself! Level 3 exercises are the most challenging. These exercises are designed for the experienced student who requires little instruction to complete the required task. Need a Little Help? Level 2 exercises are designed to challenge students, while providing some assistance. These exercises do not provide step by step instructions, however, do provide you with helpful hints and more information to complete the exercise. Step by Step Level 1 exercises are geared towards new users who require detailed instructions and explanations to complete the exercise. Level 1 exercises guide you through the task, step by step, including navigation. Quick Interaction: Lessons Learned At the end of each chapter within the Microsoft Dynamics Training Material, you find a Quick Interaction: Lessons Learned page. This interaction is designed to provide the student with a moment to reflect on the material they have learned. By outlining three key points from the chapter, the student is maximizing knowledge retention, and providing themselves with an excellent resource for reviewing key points after class. 0-2
7 Introduction Documentation Conventions The following conventions and icons are used throughout this documentation to help you quickly and effectively navigate through the information. CAUTION: Cautions are found throughout the training manual and are preceded by the word CAUTION in bold. Cautions are used to remind you of a specific result of a specific action which may be undesirable. HINT: Hints are found throughout the training manual and are preceded by the word HINT in bold. Hints are used to suggest time-saving features or alternative methods for accomplishing a specific task. NOTE: Notes are found throughout the training manual and are preceded by the word NOTE in bold. Notes are used to provide information which, while not critical, may be valuable to an end user. BEYOND THE BASICS: Advanced information found throughout the training manual is preceded by the words BEYOND THE BASICS in bold. Beyond the Basics provides additional detail, outside of standard functionality, that may help you to more optimally use the application. EXAMPLE: Examples are found throughout the training manual and are preceded by the word EXAMPLE in bold. Examples bring to light business scenarios that may better explain how an application can be used to address a business problem. 0-3
8 Warehouse Management in Microsoft Dynamics NAV 2009 Student Objectives What do you hope to learn by participating in this course? List three main objectives below
9 Chapter 1: Warehouse Management Systems Overview CHAPTER 1: WAREHOUSE MANAGEMENT SYSTEMS OVERVIEW Objectives Introduction The objectives are: Getting acquainted with Warehouse Management Systems. Understanding the Warehouse workflow. This chapter is an introduction to the Warehouse Management Systems (WMS) course. It provides an overview of what WMS is and what it is aimed to. The chapter describes the features available in WMS and explains how to work with them. 1-1
10 Warehouse Management in Microsoft Dynamics NAV 2009 WMS Overview The process of physical handling of goods in and out of the warehouse is an extensive and costly operation. To keep costs as low as possible, it is essential that quantity and placement of the items are accurate. To have efficient warehouse processes, the company must define the warehouse in terms of layout, put-away and pick logic, as well as internal replenishment information. Warehouse Management Systems is aimed at companies that need to receive and ship products, while maintaining an optimum space usage and knowing specifically where all products are stored at any given time. Goods can either be stored in predefined (fixed) bins or in random (floating) bins, depending on the need for optimization and the expertise of the warehouse personnel. The WMS granules provide functionality for executing more advanced warehouse processes such as handling items within a warehouse by zone and bin level, handling directed put-away and pick, and the development of an automated data capture system (ADCS). The flow of inventory through the warehouse can be divided into three basic processes: Receiving items at the warehouse and making them available. Handling items for internal distribution/movement/production. Picking and shipping items to customers or other locations. Each process can consist of a series of warehouse handling activities. Receiving items involves the physical receiving of items when they arrive at a warehouse and then putting them away (from the receiving area into the stocking/handling area). WMS also provides the cross-docking functionality as part of the receiving process. Cross-docking is a means of saving time and effort by directing items on orders awaiting shipment from the receive zone directly to the ship zone without placing them into storage. Handling items involves repacking or completing items for sale, inventory counting, supplying production, or simply moving for optimization of space. Shipping items involves picking items from inventory and handing them to the shipping agent whom delivers them to customers. To have an efficient operation, warehouse managers must know which items are to be shipped or are to be used in production and which are expected to arrive. In this way they can estimate the expected workload and allocate warehouse resources accordingly. Employees in sales and purchase departments need to be able to see what stage in the warehousing process a particular order has reached. 1-2
11 Chapter 1: Warehouse Management Systems Overview Warehouse Workflow WMS for Microsoft Dynamic NAV 2009 helps companies to manage all these activities in the most efficient way. The NAV granules that deal with WMS provide companies with the necessary functionality to organize the receiving and shipping processes and to assist warehouse employees in recording the receipt of goods, picking items for shipping or production, and making shipments. The granules are used for communication between the sales, purchase, production, and warehousing functions. In particular, the release function ensures that only released inbound and outbound orders can be viewed and processed by the warehouse employees. That means that if a sales or purchase order is released, items are available for further processing by WMS. The list and description of the granules required to have the WMS functionality can be found in Appendix B of this course. The WMS is designed to work with the inbound, outbound and internal flow of items through the warehouse. The following illustration depicts the WMS overall workflow. FIGURE 1.1 WAREHOUSE WORKFLOW 1-3
12 Warehouse Management in Microsoft Dynamics NAV 2009 Summary This chapter provides an overview of the Warehouse Management Systems. The Warehouse Management System is used to: Easily receive the items. Handle the items. This includes repacking, inventory counting, supplying production, or just moving an item for optimum warehouse space utilization. Pick the items. Ship the items. 1-4
13 Chapter 1: Warehouse Management Systems Overview Quick Interaction: Lessons Learned Take a moment and write down three Key Points you have learned from this chapter
14 Warehouse Management in Microsoft Dynamics NAV
15 Chapter 2: Setting Up Warehouse Management Systems CHAPTER 2: SETTING UP WAREHOUSE MANAGEMENT SYSTEMS Objectives Introduction The objectives are: Set up a warehouse. Set up locations. Set up put-away templates. Set up items. Set up zones. Set up bin types. Set up bin rankings. Create bins. Use bin creation worksheet template. Create bin content. Create warehouse classes. Assign warehouse classes to zones, bins, and items. To use the Warehouse Management Systems (WMS), it must first be adjusted to meet business requirements. This chapter covers the WMS setup options that help to handle items in the best possible way. In Microsoft Dynamics NAV 2009, the RoleTailored client comes with preconfigured Role Centers to fit many of the fundamental roles in companies. When you set a certain Role Center as default, you will start from a single navigational window that displays information pertinent to your role in the company. From the Role Center, you can navigate to additional information and open separate windows for performing tasks and viewing data. The Role Center is easily customizable in that you can add to the starting page the links to the program entities that you use most often. For warehouse personnel, the Shipping and Receiving WMS profile is recommended for working at. Its starting page contains direct links to the documents and reports the warehouse managers and other employees tend to work with. 2-1
16 Warehouse Management in Microsoft Dynamics NAV 2009 To be able to use the Role Center, set it up as a default one: 1. In the Navigation Pane, click Departments>Administration>Application Setup>RoleTailored Client>Profiles. 2. Open the card for the Shipping and Receiving - WMS profile. 3. Select the Default Role Center check box. 4. Restart Microsoft Dynamics NAV FIGURE 2.1 THE SHIPPING AND RECEIVING - WMS ROLE CENTER 2-2
17 Warehouse Setup Chapter 2: Setting Up Warehouse Management Systems To set up WMS, companies must specify details about how the program manages certain aspects of their warehouse(s). The settings can be defined in the Warehouse Setup window. 1. In the Navigation Pane, click Departments>Administration>Application Setup>Warehouse>Warehouse, and then in Tasks, click Warehouse Setup. FIGURE 2.2 THE WAREHOUSE MGT. SETUP WINDOW The first four fields on the General FastTab specify the warehouse activities that may constitute the warehouse handling processes for location blank. In general it is not recommended to use warehousing processes for location blank. When using WMS, these requirements are to be filled out on the specific location card. In the Receipt Posting Policy and Shipment Posting Policy fields, specify the policy that the program follows when it posts warehouse shipments and receipts: Posting errors are not processed select this option to have the program post all source documents, without stopping, even if any errors occur in the posting process. Stop and show the first posting error set this option to have the program post source documents until the first error occurs. The posting process is cancelled upon the first error and the rest of the source documents will not be posted. 2. Expand the Numbering FastTab. 2-3
18 Warehouse Management in Microsoft Dynamics NAV 2009 Locations Setup The fields on the Numbering FastTab specify the number series the company will be using for various documents, for example, receipt, ship, and put-away. Multiple locations provide the possibility to set up each location (warehouse) in a specific way. By defining different parameters for the individual location, work processes can be varied from one location to another, and thereby give more freedom of choice according to surroundings and/or customs. NOTE: At Cronus, the White warehouse is set up by default to use WMS, and thereby WMS functionality and processes. Specific demonstration data is already created to support the WMS functionality. To review settings for the White location, do the following: 1. In the Navigation Pane, click the Reference Data button, and then click Locations. 2. Browse to the White location and double-click the location name to open its card. Expand the Warehouse FastTab. FIGURE 2.3 DEFINING WAREHOUSE SETTINGS FOR THE WHITE LOCATION 2-4
19 Chapter 2: Setting Up Warehouse Management Systems The following table explains what the values in the fields on the Warehouse FastTab indicate. Field Directed Put-away and Pick - Require Receive - Require Shipment - Require Put-away - Require Pick - Bin Mandatory Use Put-away Worksheet Use ADCS - Outbound Whse. Handling Time - Inbound Whse. Handling Time Base Calendar Code Explanation If this check box is selected, this location will use Warehouse Management Systems (replenishment according to the bin type and bin ranking, instructions when creating put-aways and picks, etc.) When you select the check box, the Require Receive, Require Shipment, Require Put-away, Require Pick, and the Bin Mandatory check boxes all are selected by default and become non-editable. Select these check boxes if you require the location to use the receive, shipment, put-away, and pick functionalities respectively, and if you want to use bins in all transactions with items. These functionalities can be used regardless of the value in the Directed Put-away and Pick field. Select this check box to use a worksheet for creating a put-away. Deleted put-away lines can be retrieved through this worksheet to create a new put-away. No put-away document will be created automatically upon posting the warehouse receipt, but the posted receipt will become a source document for the putaway worksheet to select for creating a many-to-one put-away process. If this check box is selected, the location can use the automated data capture system. These fields relate to the date calculation and order promising functionality. In these fields, you can enter a date formula for the warehouse handling time for the location. These fields are also used for lead time calculation. These functionalities can be used regardless of the value in the Directed Put-away and Pick field. In the Base Calendar Code field, you can enter the code for the base calendar that must be assigned to the location. This functionality can be used regardless of the value in the Directed Put-away and Pick field. 2-5
20 Warehouse Management in Microsoft Dynamics NAV 2009 Field Customized Calendar Use Cross-Docking Explanation The Customized Calendar field indicates, whether or not a customized calendar is set up for the location. This functionality can be used regardless of the value in the Directed Put-away and Pick field. If this field is selected, the location can use the crossdocking functionality. This option is automatically enabled when the Directed Put-away and Pick check box is selected. However, the check mark can be removed, if you want to prevent users from using this feature. 3. Expand the Bins FastTab. FIGURE 2.4 SPECIFYING BINS FOR THE LOCATION Whenever the Directed Put-away and Pick check box is selected, the fields on this FastTab can be edited. Bins specified on this FastTab are used as a default when receiving, putting away, adjusting, and shipping the items. The bins specified in the Inbound BOM Bin Code and Outbound BOM Bin Code fields are the default bins used by the Bill of Material (BOM) journals. When the BOM journal is posted, a negative adjustment is made to the inbound BOM bin for the components, and a positive adjustment is made to the outbound BOM bin for the output of the BOM. 2-6
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Chapter 5: Shipping CHAPTER 5: SHIPPING Objectives Introduction The objectives are: Pick and ship items. Ship cross-docked items. Breakbulk the item. Warehouse Management Systems (WMS) provides the functionalities
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