Lab - Work with inventory management

  • 30 minutes

Read this first - before you start the lab!

Important

For this lab, you CAN'T sign in with your own credentials. Use the following steps to sign in to your lab environment with the correct credentials.

  1. Ensure that you're signed in to Microsoft Learn.
  2. Select Launch VM mode or Sign in to launch VM mode in this unit.
  3. In the Resources tab on the lab side bar, select the T icon next to Password in the Finance and Operations box, to have the administrator password for the Virtual Machine (VM) entered for you.
  4. Select Enter.
  5. Microsoft Edge opens. Wait for it to navigate to the Sign in page for finance and operations. If you experience an issue with the Sign in page loading, try to restart the browser in the VM.
  6. On the Microsoft Sign in page in finance and operations, place your mouse cursor into the Username field.
  7. On the Resources tab of the lab side bar, below the Azure portal heading, select the T icon next to Username, then press Enter.
  8. Your mouse cursor is now in the Password page.
  9. On the Resources tab of the lab side bar, below the Azure portal heading, select the T icon next to select Password, then press Enter.
  10. In the Save password window, select Never.
  11. Select Accept in the Permissions requested page.
  12. To see the lab instructions, select the Instructions tab on the lab side bar.

You can now begin your work on this lab.

Scenario - Create a new warehouse layout

For this lab, you need to create a warehouse in company USMF.

This warehouse has the following format for its location: Aisle-Rack-Shelf, which will be represented with numerical values such as 001-01-01.

The default location is 450 X 250 X 200 as width, depth, and height.

Set the default location capacity

  1. Open company USMF.
  2. Go to Inventory management > Setup > Inventory and warehouse management parameters.
  3. Select the Locations tab.
  4. In the Standard width field, enter 450.
  5. In the Standard depth field, enter 250.
  6. In the Standard height field, enter 200.
  7. Select Save.
  8. Close the page.

Define the location name format

  1. Go to Inventory management > Setup > Inventory breakdown > Warehouses.
  2. Select New.
  3. In the Warehouse field, type 17.
  4. In the Name field, type Raw materials.
  5. In the Site field, select the drop-down button to open the lookup.
  6. In the list, find and select site 1.
  7. Expand the Location names section. The options in this section define the default format for location names. For this example, you'll include the aisle number, rack number, and shelf number.
  8. Set the Include aisle option to Yes.
  9. Set the Include rack option to Yes.
  10. In the Format field, for the rack, type -##.
  11. Set the Include shelf option to Yes.
  12. In the Format field, for the shelf, type -##.
  13. Select Save.

Define warehouse locations

  1. On the Action Pane, select Warehouse.
  2. Select Location wizard.
  3. Select Next
  4. If you are unable to de-select options, select Next. If you are able to de-select options, de-select Inbound docks, Picking locations, and Bulk locations
  5. Select Next until the Finish button appears. This is accepting all the locations the system is suggesting.
  6. Select Finish.
  7. Close all pages.

Scenario - Create a costing version, item model group, and tracking number group

As a warehouse employee at company USMF, you need to create a standard cost version to record products that use the item model group with inventory model of Standard. You also need to group items based on the FIFO inventory model.

Therefore, you need to create an item model group, a cost version, and tracking number group to allocate batch and serial numbers.

Create a costing version

  1. Go to Cost management > Predetermined cost policies setup > Costing versions.
  2. Select New.
  3. In the Costing type field, select Standard cost.
  4. In the Version field, type FY 2019.
  5. In the Name field, type FY 2019 Costing.
  6. In the Block activation field, select No.
  7. Select Save.
  8. Close the page.

Create an item model group

  1. Go to Inventory management > Setup > Inventory > Item model groups.
  2. Select New.
  3. In the Item model group field, type STDN.
  4. In the Name field, type Standard Cost.
  5. In the Inventory model field, enter Standard cost.
  6. Expand the Inventory policies section.
  7. In the Approved vendor check method field, enter No check.
  8. Select Save
  9. Select New.
  10. In the Item model group field, type FirstIn.
  11. In the Name field, type First in First Out.
  12. Close the page.

Create a tracking number group

  1. Go to Inventory management > Setup > Dimensions > Tracking number groups.
  2. Select New.
  3. In the Number group field, type ASer.
  4. In the Name field, type Auto-Serial.
  5. Select No in the Date field.
  6. Select No in the Lot ID field.
  7. Select Yes in the Number sequence No. field.
  8. In the Number sequence code field, select any number sequence.
  9. Select Yes in the Only for inventory transactions field.
  10. Select Yes in the On physical update field.
  11. Select New.
  12. In the Number group field, type USer.
  13. In the Name field, type Unique-Serial.
  14. Select No in the Date field.
  15. Select No in the Lot ID field.
  16. Select Yes in the Number sequence No. field.
  17. In the Number sequence code field, select any number sequence.
  18. Select Yes in the Only for inventory transactions field.
  19. Select Yes in the On physical update field.
  20. Set Per qty. to 1.
  21. Select New.
  22. In the Number group field, type Batch.
  23. In the Name field, type Auto Batch.
  24. Select No in the Date field.
  25. Select No in the Lot ID field.
  26. Select Yes in the Number sequence No. field.
  27. In the Number sequence code field, select any number sequence.
  28. Select Yes in the Only for inventory transactions field.
  29. Select No in the On physical update field.
  30. Close the page.

Scenario - Use a movement journal

In USMF, you need to manually update the on-hand inventory by using an Inventory movement journal.

  1. Go to Inventory management > Journal entries > Items > Movement.
  2. Select New.
  3. In the Name field, select the drop-down button to open the lookup.
  4. Select Imov. It’s a good practice to use different journal name templates for the different business purposes.
  5. In the Offset account field, specify the value 140200. This is the offset account that will be the default account on the journal lines. It’s possible to override the default to assign different offset accounts for each line.
  6. Select OK.
  7. Select New in the Journal lines FastTab.
  8. In the Item number field, select the drop-down button to open the lookup.
  9. Select item A0001.
  10. Select the Inventory dimensions tab in the Line Details section.
  11. In the Site field, select the drop-down button to open the lookup.
  12. Select site 1.
  13. In the Warehouse field, select the drop-down button to open the lookup.
  14. Select warehouse 13.
  15. In the Location field, select the drop-down button to open the lookup.
  16. Select location 13.
  17. In the Quantity field, enter a number.
  18. Select Save.
  19. Select Post.
  20. Set the Transfer all posting errors to a new journal slider to No. If you enable this option, any lines that fail to post will be copied to a new journal. You can use the information in the log to correct the issues and then repost the lines.
  21. Select OK.
  22. Close all pages.

Scenario - Use an inventory adjustment journal

As a warehouse manager in the USMF company, you need to adjust stock levels of products in the warehouse.

  1. Go to Inventory management > Journal entries > Items > Inventory adjustment.
  2. Select New.
  3. In the Name field, select the drop-down button to open the lookup.
  4. In the list, select the inventory adjustment journal name that you want to use. Other fields will be populated based on the setup of the inventory adjustment journal name that you select.
  5. Select OK.
  6. Select New in the Journal lines FastTab.
  7. In the Item number field, select D0001.
  8. In the Site field, select the drop-down button to open the lookup.
  9. In the list, select site 1.
  10. In the Warehouse field, select the drop-down button to open the lookup.
  11. In the list, select Warehouse 13. If you have selected an item with Location as a mandatory dimension, you would have to specify the location here.
  12. In the Quantity field, enter a number. The Cost price field specifies the cost per unit for inventory receipts. If the cost is not specified for the item number, or if you wanted to change it manually, you would do this here.
  13. Select Validate.
  14. Select OK.
  15. Select Post. When you post this kind of journal, an inventory receipt or issue is posted, the inventory level and value are changed, and ledger transactions are generated.
  16. Select OK.
  17. Close all pages.

Scenario - Use a transfer journal

As a warehouse employee in the USMF company, you need to perform the process of creating and posting an inventory transfer journal to register movement of an item from one location in a warehouse to another.

In this example, you will transfer an item within the same warehouse, from a license plate-controlled location to a location that is not license plate-controlled.

  1. Go to Inventory management > Journal entries > Items>Transfer.
  2. Select New.
  3. In the Name field, enter or select ITrf.
  4. Select OK.
  5. Select New in the Journal lines FastTab.
  6. In the Item number field, enter or select A0001.
  7. In the From site field, enter or select 2.
  8. In the To site field, enter or select 2.
  9. In the From warehouse field, enter or select 24.
  10. In the To warehouse field, enter or select 24.
  11. In the From location field, enter or select FL-001.
  12. In the To location field, enter or select BULK-001.
  13. In the Quantity field, enter a number.
  14. Select the Inventory dimensions tab in the Line Details FastTab.
  15. In the License plate field under FROM INVENTORY DIMENSIONS, enter or select 24.
  16. Select Save.
  17. Select Post.
  18. Select OK.
  19. Select Inventory in the Journal lines FastTab.
  20. Select Transactions.
  21. Close all pages.

Scenario - Use a counting journal

As a warehouse worker in the USMF company, you need to perform the process of creating and posting an inventory counting journal to count a specific item at a location in the warehouse.

  1. Go to Inventory management > Journal entries > Item counting > Counting.
  2. Select New.
  3. In the Name field, select the drop-down button to open the lookup.
  4. In the list, select the Inventory counting journal icon. Other fields will be populated based on the setup of the inventory counting journal name that you select.
  5. In the Worker field, select the drop-down button to open the lookup.
  6. In the list, select the worker you want to use.
  7. Select the Select option.
  8. Select OK.
  9. Select New in the Journal lines FastTab.
  10. In the Item number field, select the drop-down button to open the lookup.
  11. In the list, find and select A0001.
  12. In the Site field, select the drop-down button to open the lookup.
  13. In the list, find and select site 2.
  14. In the Warehouse field, select the drop-down button to open the lookup.
  15. In the list, find and select warehouse 24.
  16. In the Location field, select the drop-down button to open the lookup.
  17. In the list, find and select location BULK-001.
  18. In the Counted field, enter a number.
  19. If you enter a counted number that’s different from the number shown in the On-hand field, the Quantity field is updated to show the discrepancy.
  20. Select Save.
  21. Select Post. When you post an inventory counting journal, if the counted amount differs from the amount that’s reported in the On-hand field, an inventory receipt or issue is posted, the inventory level and value are changed, and ledger transactions are generated.
  22. Select OK.
  23. Close all pages.

Close the lab environment

  1. Select Done in the Instructions pane in the lab side bar.
  2. In the Lab is complete window, select Continue, and then select Leave to return to the next unit in the module.