Inventory management is a critical component of any business that deals with physical products. To manage inventory effectively, it is essential to have a good understanding of the units of measure that are used to quantify and track inventory. Microsoft Dynamics 365 Business Central offers a comprehensive system of units of measurement that can be customized to suit the needs of any business.
Here's how to set up units of measure in Business Central:
Step 1: Set Up Units of Measure
Business Central's units of measure are a system that enables businesses to measure and track inventory in a meaningful and operationally pertinent manner. They are used to define the method of measuring inventory, including quantities, weight, volume, and any other tangible product attributes. Business Central offers an extensive selection of standard units of measure that can be used out of the box and the ability to create custom units of measurement to meet specific requirements. Business Central allows users to track inventory in the most pertinent units to their operations by assigning units of measure to each item. Business Central's units of measure provide an adaptable, comprehensive system for measuring and tracking inventory that can be tailored to the requirements of any organization.
To set up units of measure in Business Central, follow these steps:
Use the Tell Me feature and navigate to the "Units of Measure" page.
Select "New" to create a new unit of measure.
Enter the Code of the unit of measure, such as "Can."
Enter the International Standard Code for the unit of measure, such as "CA."
Fill out any corresponding fields that are needed.
Step 2: Set Up Additional Units of Measure
Once the initial unit of measure has been set up, additional units of measure can be added. These units of measure can be used to track inventory in different quantities, such as cases, pallets, or truckloads.
To set up multiple item units of measure in Business Central, follow these steps:
Use the Tell Me Feature, input Items and select the relevant link.
Open the card for the item whose alternate units of measure you wish to configure.
Select the Units of Measurement option. Opening the Item Units of Measurement page.
If the Base Unit of Measure field is populated on the item card, the unit of measure is already configured.
Select the New option. A new blank line is added.
In the Code field, insert the unit of measure's designation. Alternately, select the field from the unit of measure codes in the database.
In the Quantity per Unit of Measure field, input the number of the base unit of measure that the new unit of measure contains.
In the optional Height, Width, Length, and Weight fields, provide precise information about the measurement of one unit of measure so that Business Central can calculate the number of each item unit that can be stored in a given container. The Cubage field is automatically calculated based on the dimensions Height, Width, and Length.
Suppose any of these elements contain a non-zero value. In that case, that measure is applied to all processes involving placing items in a container, including put-away, movements, receipts, shipments, selections, and adjustments. According to the bin capacity policy on the location card for this item, Business Central compares the aggregate of each physical measurement of the items being put away and the items already in the bin to the utmost size or other measure that can fit in a bin. In other words, you must use the same unit measure for each dimension across all item units of measure - for weight, use kilograms or pounds, but be consistent.
Repeat steps 5 through 7 to configure all the alternative units of measurement you intend to use for this item's various processes.
You can observe or modify the item's base unit of measure in the Base Unit of Measure field at the bottom of the window. On the item card, you can also modify the base unit of measure in the Base Unit of Measure field. In the Qty. per Unit of Measure field on the Item Units of Measure page, the base unit of measure must contain the value 1.
Step 3: Assign Units of Measure to Inventory Items
Once the base unit of measure and additional units of measure have been set up, they can be assigned to inventory items. This allows inventory to be tracked in the most appropriate unit of measure.
To assign units of measure to inventory items in Business Central, follow these steps:
Use the Tell Me feature and Navigate to the "Items" page.
Select the item to which the unit of measure will be assigned.
Select "Related" from the ribbon, select "Item" and select "Units of Measure."
Select the "Unit of Measure Code" field and choose the appropriate unit of measure.
Wrapping up, setting up units of measure in Microsoft Dynamics 365 Business Central is a straightforward process that can be customized to suit the needs of any business. By setting up the base unit of measure and additional units of measure, and assigning them to inventory items, companies can track inventory in a meaningful and relevant way to their operations. With this system, businesses can efficiently manage their inventory and make informed decisions about their stock levels.
Want to improve your inventory management process with Business Central's units of measurement? Contact us and we'll help set up custom units of measurement and track inventory in the most relevant units to your operations. Start today and make informed decisions about your stock levels!