Sales order picking process
The picking processes that this module covers are based on the simplest version of the warehouse handling process.
The following settings affect how you perform the pick process:
Dimension groups - Set up product, storage, and tracking dimension requirements for picking.
Item model group - Controls the registration requirements.
Accounts receivable setup parameters - Set up transactions for automatic picking.
You can set up and maintain the settings for the Item model group by using the fields in the Physical update field group to determine the workflow to use when you send or receive items. With these fields, you can set rules on how to handle an order for receiving and shipping.
Though other department managers typically complete the settings of these fields to set inventory policies, it's beneficial for the sales department to understand the effect of these settings.
When shipping an item, you can use the following parameters on the Item model groups page:
Picking requirements - Determines whether the item's inventory records must have the status of Picked before you can physically update a packing slip or before you post an inventory journal. When you select this parameter, you must manually post the picking list registration.
Deduction requirements - Determines that you must physically update item deductions before you can financially update them.
You can pick items with specific dimension values even though the Picking requirements checkbox is cleared.
On the Accounts receivable parameters page, you can set up transactions for automatic picking from the release point to the picking point in time. To access the Accounts receivable parameters page, go to Accounts receivable > Setup.
The Updates tab includes the following fields:
Use default language - Use the default language code from your own company information when you print the picking list. If this checkbox isn't selected, the language on the picking list is the customer's language. However, if no translation of the customer's language exists, the system uses the company's default language.
Automatic reduction, picking list - Select this option to reduce the quantity on the picking list to match the quantity that's available if the full quantity isn't available in stock. In this manner, a picking list isn't made for items that aren't in stock. For this approach to work, you must generate the picking list from the order header by selecting the Posting button rather than generating the list directly from the line. If you select the Complete checkbox on the Sales order line on the Line details FastTab on the General tab, an error occurs and then you need to complete the full order rather than only a partial one.
Picking route status - Select Completed in the Picking route status field to have the system automatically set the inventory transactions to Picked when you update the picking list. For example, you can select Completed when the items that are sold are always in stock and therefore don't need a response to the picking process. Select Activated if you want to update the picking list manually.
If Picking requirements is selected in the Item model groups, and Picking route status is set to Completed in the Accounts receivable parameters, then the Accounts receivable parameters overrule the settings in the Item model groups. This result means that the system automatically performs picking list registration.
Different ways that you can set up a picking process include:
Automatic - Use this process when a response to the picking list isn't necessary, such as when the items that are sold are always in stock or when users don't need to specify dimension values that differ from what's on the sales order line or what's reserved.
Manual - You can use this method in a one-step or two-step process:
One-step process - Use this process if you want to enter the dimensions and register the pick from the sales order line.
Two-step process - Use when you want to assign a picking task and then perform a physical pick.
Release sales order picking
The Release sales order picking functionality helps warehouse employees gain an overview of the sales orders that are to be released for picking, based on actual availability of items and in consideration of customer service priority.
Using this feature for the picking process ensures that the system only creates picking lists for items in stock. The two pages for the picking process are Release sales order picking for sales orders and Release transfer order picking for transfer orders.
You can use Customer classification groups to flag customers according to service priority. If back orders exist for sales order lines, you can use the customer classification group criteria to determine which sales orders must have available quantity allocated to them. You would attach this criteria to the customer for the line. You can set up customer classification groups by going to Sales and marketing > Setup > Customer > Customer classification groups.
Example - Release sales order picking process
Kevin, the sales manager, needs to determine which customers' back orders must be on-hand in inventory to allocate them first. To create a priority ranking, the warehouse manager attaches a customer classification group to the customers. The warehouse manager creates premium and standard classifications, 1 and 2 respectively, that they attach to customers.
Later, the warehouse manager allocates available inventory to two sales order lines with the same inventory dimensions that are specified for them on the same shipping date. One sales order line is for a customer whose classification group is 1, and one line is for a customer whose classification group is 2.
Because classification 1 customers take priority, all available quantity is allocated to the classification 1 customer's line.
After you attach the customer classification group to the customer, you can view it on any sales order line that appears on the Release sales order picking page.
As part of the order to cash process, a salesperson typically generates and prints the picking list for the order to initiate the outbound process that the warehouse workers perform.
To print the picking list, go to the sales order and select Pick and pack on the Action Pane, and then select the Generate picking list button.
The Posting picking list dialog consists of the following important parameters:
Quantity - Select the quantities on which to base the posting of the document. Available options in the field vary, depending on the type of document that you're posting, such as a packing slip or an invoice:
Deliver now - Select all quantities in the Deliver now field. Use this option to confirm or deliver a partial order.
Picked - Select all picked quantities.
All - Select all quantities on the sales order that the current document type hasn't updated yet.
Packing slip - Select all quantities that a packing slip has updated.
Picked quantity and not stocked products - Select all picked quantities and all product quantities that aren't stocked.
Posting - Select this option to post the sales order. Clear this option to print a pro forma sales order. If you made an agreement for a payment schedule, the pro forma sales order doesn't show the payment schedule. Only actual sales orders show payment schedules.
Late selection - Select this option to apply the selected query later. You would use this option for batch jobs. The system runs the query when it runs the batch job.
Reduce quantity - Select this option to automatically reduce the delivered quantity when you post the document so that the delivered quantity equals the available inventory.
Print - Select when to print documents. The Print field is available only if you select the Print invoice, Print confirmation, Print picking list, or Print packing slip options. The following options are available in this field:
Current - Print documents after each invoice is updated.
After - Print documents after all invoices are updated.
Check credit limit - Select the information that the system analyzes when performing a credit limit check. The following options are available in this field:
None - No requirement is established for the credit limit check.
Balance - The system checks the credit limit against the customer balance.
Balance + packing slip or product receipt - The system checks the credit limit against the customer balance and deliveries.
Balance+All - The system checks the credit limit against the customer balance, deliveries, and open orders.
Summary update for - Select how the system summarizes multiple sales orders. The following options are available in this field:
None - Don't summarize sales orders. For example, the system creates a separate invoice for each sales order.
Invoice account - Summarize all selected orders based on the criteria that are set up on the Summary update parameters page.
Order - Summarize a selected range of orders into one order that you specify. The criteria are set up on the Summary update parameters page. If you select this option, you must select a value in the Sales order field.
Automatic summary - Summarize all selected orders based on the criteria that are set up on the Summary update parameters page, but only if summary updating is specified in the Summary update page. If summary updating isn't specified, the system posts the order separately.
Packing slip - Summarize a selected range of orders into one invoice for each packing slip. This option is available only if Packing slip is selected in the Quantity field.
When you select OK, the system prints the picking list if you set the Print picking list field value to Yes.
For more information on picking and warehouse management, see the following modules:
Configure warehouse management in Dynamics 365 Supply Chain Management
Configure and work with inventory management in Dynamics 365 Supply Chain Management
Use inventory reports in Dynamics 365 Supply Chain Management
Manage transportation management in Dynamics 365 Supply Chain Management