^it in fact, is that easy...
Hey! Every operating business has inventory and require a way to have different ways to categorize their inventory. So today, we’re going to dive deep into what inventory status is, how it’s used across D365 F&O, and suggest practical inventory statuses for various industries.
Bonus Dad Joke Up Front
What kind of shoes do frogs like best? They like open-toad shoes, of course.
What is Inventory Status?
Inventory status in D365 F&O is a versatile classification system that helps businesses manage and segregate their inventory based on different conditions or dispositions. Think of it as a tagging system that lets you label your inventory according to its current state, usability, or any other criteria relevant to your operations.
How is Inventory Status Used in D365 F&O?
Inventory status plays a crucial role in several areas of D365 F&O. Here’s how it’s applied across different modules:
Inventory Management:
Segregation: Helps in segregating inventory into categories like ‘Available’, ‘Damaged’, ‘Quality Control’, and ‘Blocked for Sale’.
Control: Allows businesses to control which inventory can be reserved, picked, or sold based on its status.
Production Control:
Quality Checks: Inventory statuses can be used to hold items in quality control until they pass inspection.
Workflow Management: Helps in tracking the progress of raw materials through different stages of production.
Sales and Marketing:
Availability: Helps sales teams understand what inventory is available for sale versus what’s on hold or under inspection.
Promotions: Inventory statuses can help manage items that are on promotion or clearance.
Procurement and Sourcing:
Inbound Quality Control: New inventory can be assigned a status like ‘Pending Inspection’ upon receipt until it’s cleared for use.
Vendor Management: Allows for tracking and managing inventory that’s returned to vendors.
Setting Up Inventory Status
To set up an inventory status in D365 F&O, follow these steps:
Navigate to Inventory management > Setup > Inventory statuses.
Click on New to create a new inventory status.
Enter a Status ID and a Description (e.g., ID: QC, Description: Quality Control).
Define the properties, such as whether the status blocks inventory for reservation or marking.
Save the new status.
For a detailed guide, refer to the Microsoft Learn page on Inventory Statuses.
Suggested Inventory Statuses for Different Industries
Different industries have unique requirements for managing their inventory. Here are some suggested statuses tailored to various sectors:
Food and Beverage
Available for Sale
Quality Control
Expired
Pending Recall
Manufacturing
Raw Materials
In Production
Finished Goods
Scrap
Retail
In Stock
Reserved
Returned
Clearance
Pharmaceuticals Heavy Machinery Dealer (e.g., Caterpillar)
Ready for Dispensing
Under Testing
Quarantine
Recalled
These statuses help streamline operations by providing clear visibility and control over inventory at every stage of its lifecycle.
Practical Applications and Tips
Quality Control: Implementing statuses like ‘Quality Control’ ensures that only inspected and approved items are available for sale or use in production.
Blocked Inventory: Use statuses like ‘Blocked for Sale’ to prevent damaged or expired items from being sold accidentally.
Inventory Audits: Regularly review and update inventory statuses to reflect the current state of your inventory accurately.
And, of course, it wouldn’t be a DynamicsDad blog without a dad joke:
Why don’t inventory statuses ever get lost? Because they always stay in stock!
Have a great week!
DynamicsDad
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