Inbound inventory operation in POS

This article describes the capabilities of the point of sale (POS) inbound inventory operation in Microsoft Dynamics 365 Commerce.

In Commerce version 10.0.10 and later, inbound and outbound operations in POS replaced the picking and receiving operation.

Note

In Commerce version 10.0.10 and later, any new features in the POS application that are related to receiving store inventory against purchase orders and transfer orders will be added to the Inbound operation POS operation. If you're currently using the picking and receiving operation in POS, we recommend that you develop a strategy for moving from that operation to the new inbound and outbound operations. Although the picking and receiving operation won't be removed from the product, from a functional or performance perspective, there will be no further investments in it after Commerce version 10.0.9.

Prerequisites

Before your organization can use the inbound operation functionality, you must complete the following prerequisites.

Configure an asynchronous document framework

For information about how to configure an asynchronous document framework, see Commerce asynchronous document framework. You can skip this step if you've already configured an asynchronous document framework for other operations.

Add Inbound operation to the POS screen layout

You must configure the Inbound operation POS operation on one or more of your POS screen layouts. Before you deploy the new operation in a production environment, ensure that you thoroughly test it and train your users to use it.

Inbound inventory operation

The inbound inventory operation lets POS users perform the following tasks:

• Receive inventory into store stock from either confirmed purchase order documents or shipped transfer order documents.
• View information about historical inventory receipts for a period of seven days after the document has been fully received.
• Create new inbound transfer order requests.

When the inbound operation is started from the POS application, a list page view appears. This view shows open purchase order and transfer order documents that have inventory lines that are scheduled to be received by the current store. To find and select a specific document, you can scroll the list or use the search feature.

The inbound inventory document list has three tabs:

• Active – This tab shows documents that are fully or partially open, and that contain lines or quantities on lines that must still be received.
• Draft – This tab shows new inbound transfer order requests that the store has created. However, the documents have only been saved locally. They haven't yet been submitted to Commerce headquarters for processing.
• Complete – This tab shows a list of purchase order or transfer order documents that the store has fully received during the last seven days. This tab is for informational purposes only. All the information about the documents is read-only data for the store.

When you view documents on any of the tabs, the Status field helps you understand the stage that the document is in.

• Draft – The purchase order or transfer order document has only been saved locally to the store’s channel database. No information about the purchase order or transfer order request has been submitted to headquarters.
• Created - The purchase order request has been created in headquarters, but not yet confirmed.
• Requested – The purchase order or transfer order has been created in headquarters, and is fully open. No receipts have yet been processed against the document. For a purchase order, receiving can begin at any time while it's in Requested status.
• Partially shipped – The transfer order document has one or more lines or partial line quantities that have been posted as shipped by the outbound warehouse. These shipped lines are available to be received through the inbound operation.
• Fully shipped – The transfer order has had all its lines and full line quantities posted as shipped by the outbound warehouse. The whole document is available to be received through the inbound operation.
• Partially received – Some of the lines or line quantities on the purchase order or transfer order document have been received by the store, but some lines remain open.
• Fully received – All lines and quantities on the purchase order or transfer order document have been fully received. The documents are accessible only on the Complete tab and are read-only by store users.
• In progress – This status is used to inform device users that the document is being actively worked on by another user.
• Paused – This status is shown after Pause receiving is selected to temporarily stop the receiving process.
• Processing in HQ – The document was submitted to headquarters from the POS application, but it hasn't yet been successfully posted to headquarters. The document is going through the asynchronous document posting process. After the document is successfully posted to headquarters, its status should be updated to Fully received or Partially received.
• Processing failed – The document was posted to headquarters and rejected. The Details pane shows the reason for the posting failure. The document must be edited to fix data issues, and then it must be resubmitted to headquarters for processing.

When you select a document line in the list, a Details pane appears. This pane shows additional information about the document, such as shipment and date information. A progress bar shows how many items must still be processed. If the document wasn't successfully processed to headquarters, the Details pane also shows error messages that are related to the failure.

In the document list view, you can select Order details on the app bar to view the document details. You can also activate receipt processing on eligible document lines.

In the document list view, you can also create a new purchase order or inbound transfer order request for a store. The documents remain in Draft status and can be adjusted or deleted until they're submitted to headquarters for processing.

Receiving process

After you select a purchase order or transfer order document on the Active tab, you can select Order details to begin the receiving process.

By default, the Receiving now view is shown. This view is optimized for barcode scanning. It can be used to build a list of the items that have been scanned, so that those items can be received. To begin the receiving process, you can start to scan item barcodes.

As item barcodes are scanned in the Receiving now view, the application validates the items against the selected purchase or transfer order document, to make sure that each scanned item matches a valid item on the document. In the Receiving now view, each scan of a barcode is assumed to represent the receipt of a quantity of one unit, unless a quantity is embedded in the barcode. You can repeatedly scan barcodes in this view to build a list of all the items and quantities for the receipt.

Example scenario

A user receives a purchase order that contains 10 units of barcode 5657900266. The user can scan that barcode 10 times to update the Receiving now field by one unit per scan. After the user completes the scans, the Receiving now field for the item's line shows that a quantity of 10 was received.

Alternatively, in a scenario where the item quantity is large, the user might prefer to manually enter the quantity instead of scanning the barcode for each item that is received. In this case, the user can scan the barcode one time to add the item to the Receiving now list. The user can then select the associated line in the Receiving now view and then, in the Details pane that appears on the right side of the page, update the Receiving quantity field for the item.

Although the Receiving now view is optimized for barcode scanning, users can also select Receive product on the app bar, and then enter the item ID or barcode data via a dialog box. After the item that was entered is validated, the user is prompted to enter the receipt quantity.

The Receiving now view provides a focused way for users to see which products they're receiving. Alternatively, the Full order list view can be used. This view shows the whole list of document lines for the selected purchase or transfer order document. Users can manually select lines in the list and then, in the Details pane, update the Receiving quantity field for the selected line. In the Full order list view, users can scan barcodes, or they can use the Receive product function to enter the item ID or barcode, and data about the received quantity, without first having to select the matching item line in the list.

Over-receiving validations

Validations occur during the receiving process for the document lines. They include validations for over-delivery. If a user tries to receive more inventory than was ordered on a purchase order, but either over-delivery isn't configured or the amount that is received exceeds the over-delivery tolerance that is configured for the purchase order line, the user receives an error and isn't allowed to receive the excess quantity.

Over-receiving isn't permitted for transfer order documents. Users always receive errors if they try to receive more than was shipped for the transfer order line.

Close purchase order lines

You can close the remaining quantity on an inbound purchase order during the receiving process if the shipper has confirmed that they can’t ship the full quantity that was requested. To do so, the company must be configured to allow underdelivery of purchase orders. Additionally, an underdelivery tolerance percentage must be defined for the purchase order line.

To configure the company to allow underdelivery of purchase orders, in headquarters go to Procurement and sourcing > Setup > Procurement and sourcing parameters. On the Delivery tab, turn on the Accept underdelivery parameter. Then run the 1070 (Channel configuration) distribution schedule job to sync the setting changes to channels.

Underdelivery tolerance percentages for a purchase order line can be predefined on products as part of the product configurations in headquarters. Alternatively, they can be set or overwritten on a specific purchase order in headquarters.

After an organization completes the purchase order underdelivery configurations, POS users will see a new Close remaining quantity option in the Details pane when an inbound purchase order line is selected in the Inbound inventory operation. If the user closes the remaining quantity, POS performs a validation to verify whether the quantity being closed is within the underdelivery tolerance percentage defined on the purchase order line. If the underdelivery tolerance is exceeded, an error message is displayed and the user won’t be able to close the remaining quantity until the previously received quantity plus the Receiving now quantity meets or exceeds the minimal quantity that needs to be received based on the underdelivery tolerance percentage.

With the Close remaining quantity option turned on for a purchase order line, when a user completes the receipt by executing the Finish receiving action, a closure request is also sent to headquarters, and any unreceived quantity of the order line is canceled. At this point, the line is considered fully received.

Receiving location-controlled items

If the items that are being received are location-controlled, users can select the location where they want to receive the items during the receiving process. We recommend that you configure a default receiving location for your store warehouse, to make this process more efficient. Even if a default location is configured, users can override the receiving location on selected lines as they require.

The operation respects the Blank receipt allowed configuration on the Location storage dimension, and doesn't require that a location dimension is entered if blank receipts are allowed. If blank receipt locations aren't allowed for an item, the POS application shows an error and requires that a location be entered before the receipt can be posted.

Receive all

As you require, you can select Receive all on the app bar to quickly update the Receiving now quantity for all the document lines to the maximum value that is available to be received for those lines.

Receipt of unplanned items on purchase orders

In Commerce version 10.0.14 and later, users can receive a product that wasn't originally on the purchase order. This feature only works for purchase order receiving. It's not possible to receive items against transfer orders when the items weren't previously ordered and shipped from the outbound warehouse.

Users can't add new products to the purchase order during POS receiving if the purchase order change management workflow is enabled in headquarters. To enable change management, all changes to a purchase order must first be approved before receiving is allowed. Because this process allows a receiver to add new lines to the purchase order, receiving fails if the change management workflow is enabled. If change management is enabled for all purchase orders, or for the vendor linked to the purchase order actively being received in POS, the user can't add new products to the purchase order during receiving in POS.

The functionality that enables adding lines can't be used as a workaround for receiving additional quantities of products already on the purchase order. Over-receiving is managed through the standard over-receiving settings for the product line on the purchase order.

When a user is receiving with the Inbound operation in POS, if the user scans or keys a product barcode or product number that is recognized as a valid item but isn't recognized as an item on the current purchase order, the user receives a message prompting them to add the item to the purchase order. If the user adds the item to the purchase order, the quantity entered in Receiving now is considered the ordered quantity for the purchase order line.

When the purchase order receipt is complete and submitted to headquarters for processing, the added lines are created on the purchase order master document. On the purchase order line in headquarters, there is an Added by POS flag on the General tab of the purchase order line. The Added by POS flag indicates that the purchase order line was added by the POS receiving process and wasn't a line that was on the purchase order prior to receiving.

Cancel receiving

You should use the Cancel receiving function on the app bar only if you want to back out of the document and don't want to save any changes. For example, you initially selected the wrong document and don't want any of the previous receiving data saved.

Pause receiving

If you're receiving inventory, you can use the Pause receiving function if you want to take a break from the receiving process. For example, you might want to perform another operation from the POS, such as ringing up a customer sale, or delay posting of the receipt.

When you select Pause receiving, the document's status is changed to Paused. Users know that data has been entered for the document, but that the document hasn't yet been committed. When you're ready to resume the receiving process, select the paused document, and then select Order details. Any Receiving now quantities that were previously saved are retained and can be viewed from the Full order list view.

Review

Before the final commitment of the receipt to headquarters, you can use the review functionality to validate the inbound document. The review functionality alerts you to any missing or incorrect data that may cause processing failures and provides an opportunity to correct problems before submitting the receipt request. To enable the Review function on the action pane, you must first enable the Enable validation in POS inbound and outbound inventory operations feature via the Feature management workspace in headquarters.

The Review function validates the following issues in an inbound document:

• Over-receiving – The *Receiving now quantity is greater than the ordered quantity. The severity of this issue is determined by the overdelivery configuration in headquarters.
• Under-receiving – The Receiving now quantity is less than the ordered quantity. The severity of this issue is determined by the underdelivery configuration in headquarters.
• Serial number – The serial number isn't provided or validated for a serialized item that requires a serial number to be registered in inventory.
• Location not set – The location isn't specified for a location-controlled item where a blank location isn't allowed.
• Deleted lines – The order has lines deleted by a headquarters user that isn't known to the POS application.

Set the Enable automatic validation parameter to Yes in Commerce parameters > Inventory > Store inventory to have the validation executed automatically when Finish receiving is selected.

Finish receiving

When you've finished entering all the Receiving now quantities for products, you must select Finish receiving on the action pane to process the receipt.

If Review functionality is configured, when users complete a purchase order receipt, they're prompted to enter a value in the Receipt number field. Typically, this value is equivalent to the identifier of the vendor packing slip. The Receipt number data is stored in the product receipt journal in headquarters. Receipt numbers aren't captured for transfer order receipts.

When asynchronous document processing is used, the receipt is submitted through an asynchronous document framework. The time that it takes for the document to be posted depends on the size of the document (the number of lines) and the general processing traffic that is occurring on the server. Typically, this process occurs in a matter of seconds. If document posting fails, the user is notified through the Inbound operation document list, where the document status will be updated to Processing failed. The user can then select the failed document in POS to view the error messages and the reason for the failure in the Details pane. A failed document remains unposted and requires that the user return to the document lines by selecting Order details in POS. The user must then update the document with corrections, based on the errors. After a document is corrected, the user can try again to process it by selecting Finish fulfillment on the app bar.

Create purchase orders

Users can create new purchase order requests from POS. To use this feature, ensure the Ability to create purchase order request in POS feature is enabled in the Feature management workspace, and the Allow create purchase order permission setting is enabled in the user's POS permission group.

To start the creation process, on the action pane of the document list view, select Create new. In the dialog box that appears, select New purchase order, then select a vendor from which you want the purchase order to be shipped. You can search for a specific vendor by entering the vendor account ID or vendor name. Your current store is always the Ship to warehouse for the to-be-created purchase order, and this location can't be modified. Specify the Accounting date and Delivery date as needed. You can also add a note that is stored together with the purchase order header as an attachment to the document in headquarters.

Note

• You can't create purchase orders from POS if the purchase order change management workflow is enabled in headquarters. In that case, the purchase orders can only be created in headquarters and must go through the approval workflow.
• To use the vendor selection function, you must first run the 1220 (Vendors) distribution schedule job to sync the predefined vendor master data from headquarters to the channel databases. Intercompany vendors can't be selected during purchase order creation from POS.

After the header information is created, you can add products to the purchase order request. To start the process of adding items and requested quantities, select Add product. In the dialog box, enter the product number, select a product variant (if applicable), and then specify the quantity. If you have a barcode scanning device, you can scan the product barcodes to streamline the process. In the Details pane, you can also add a line-specific note that is stored as a line attachment in headquarters.

After lines are entered on the purchase order request, you must select Save to save the document changes locally, or select Submit request to send the request to headquarters for further processing. If a document is saved locally, it can be found on the Draft tab of the document list view. When a document is in Draft status, you can edit it by selecting Edit. You can add, update, or delete lines as needed. You can also delete the entire document when it's in Draft status by selecting Delete on the Draft tab.

After the draft document is successfully submitted to headquarters, it appears on the Active tab of the document list view with a status of Created. For purchase orders in Created status, regardless of where (POS or headquarters) the document was initially created, and as long as the purchase order change management workflow isn't enabled, users in the recipient store of the purchase order can edit the document by adding, updating or deleting lines as needed. You must resubmit the updated document to put the modification into effect.

From POS, users can also confirm purchase order requests to indicate commitment from vendors to deliver the goods as requested in the purchase orders. To use this feature, ensure the Ability to create purchase order request in POS feature is enabled in the Feature management workspace, and the Allow confirm purchase order permission setting is enabled in the user's POS permission group. Only purchase orders in Created status can be confirmed. To confirm a purchase order, select the order in the document list view, select View details to open the document details view, and then select Confirm order on the action pane. After a purchase order is confirmed, its status is updated from Created to Requested and is ready for receiving.

Create inbound transfer orders

Users can create new inbound transfer order documents from POS. To start the process, on the action pane of the document list view, select Create new. In the dialog box that appears, select New transfer order, and then select a Transfer from warehouse or store that provides the inventory to your store location. The Transfer from values are limited to the selection that's defined in the configuration of the store's fulfillment group. In an inbound transfer request, your current store will always be the Transfer to warehouse for the transfer order. The Transfer to value can't be changed.

Enter values in the Ship date, Receive date, and Mode of delivery fields as needed. You can also add a note that is stored together with the transfer order header as an attachment to the document in headquarters.

After the header information is created, you can add products to the transfer order. To start the process of adding items and requested quantities, select Add product. In the Details pane, you can also add a line-specific note to the journal lines. These notes are stored as a line attachment.

After lines are entered on the inbound transfer order, you must select Save to save the document changes locally or Submit request to submit the order details to headquarters for further processing. If you select Save, the draft document is stored in the channel database, and the outbound warehouse can't run the document until it has been successfully processed via Submit request. You should only select Save if you aren't ready to commit the request to headquarters for processing.

If a document is saved locally, it can be found on the Draft tab of the Inbound operation document list. While a document is in Draft status, you can edit it by selecting Edit. You can update, add, or delete lines as needed. You can also delete the whole document while it's in Draft status by selecting Delete on the Draft tab.

After the draft document is successfully submitted to headquarters, it appears on the Active tab and has a status of Requested. At this point, users in the inbound store or warehouse can no longer edit the requested inbound transfer order document. Only users in the outbound warehouse can edit the document, by selecting Outbound operation in the POS application. The editing lock ensures that no conflicts occur because an inbound requestor changes the transfer order at the same time that the outbound shipper is actively picking and shipping the order. If changes are required from the inbound store or warehouse after the transfer order has been submitted, the outbound shipper should be contacted and asked to enter the changes.

After the document is in Requested status, it's visible on the Active tab. However, it can't yet be received by the inbound store or warehouse. After the outbound warehouse has shipped some or all of the transfer order, the inbound store or warehouse can post receipts in POS. When the outbound side processes the transfer order documents, their status is updated from Requested to Shipped or Partially Shipped. After the documents are in Shipped or Partially Shipped status, the inbound store or warehouse can post receipts against them using the inbound operation receiving process.

Additional resources

Outbound inventory operation in POS