Inventory management in Business Central

Microsoft Dynamics 365 Business Central helps companies integrate inventory, purchasing, sales, product flow, finance, and reporting into a single, comprehensive ERP solution.

With inventory management in Business Central, you’ll gain a better overview of products, inventory levels, locations, purchases, sales orders, and inventory movements. This makes it easier to manage your inventory on an ongoing basis—so you don’t wait until an item is out of stock, a delivery is delayed, or inventory levels have become too high to discover the problems.

Business Central is not just an accounting system. It is an ERP solution where inventory is integrated with purchasing, sales, production, projects, and finance. It provides a strong foundation for companies that want to manage the flow of goods more precisely while gaining better insight into the capital tied up in inventory.

At Vektus, we have extensive experience with inventory management in Business Central. We help companies create solutions where inventory, purchasing, sales, and finance are closely integrated—from the moment an item is ordered until it is delivered to the customer.

A warehouse is more than just goods on shelves

A well-run warehouse isn’t just about knowing how many items are in stock. It’s about ensuring that the right items are available at the right time, without the company tying up unnecessary capital in slow-moving inventory.

In Business Central, inventory can be closely integrated with purchasing, sales, production, and finance. This means that inventory data does not stand alone but becomes an active part of the company’s decision-making process.

For example, this might involve identifying which items need to be reordered, where bottlenecks occur in the flow of goods, which items tie up too much capital, or where there is a risk of delayed deliveries.

Typical inventory challenges that Business Central can help with

  • Unreliable inventory figures
  • Items that are missing when they are needed or are to be delivered
  • Excessive inventory tied up
  • Items that have been in stock for too long
  • Manual processes in receiving, picking, packing, and shipping
  • Errors in warehouse locations or inventory movements
  • Lack of coordination between inventory, purchasing, sales, and finance
  • Challenges with traceability, serial numbers, or lot numbers
  • Limited insight into inventory value, cost of goods sold, and contribution margin

Who needs inventory management in Business Central?

Business Central is used by many types of companies that handle inventory, warehousing, and complex inventory flows. These include, among others, retail businesses, wholesalers, manufacturing companies, service companies that handle spare parts, companies with online stores, companies with multiple warehouse locations, and companies that require picking, packing, scanning, or traceability.

What these companies have in common is that inventory cannot be viewed in isolation. Inventory affects purchasing, sales, delivery capacity, customer service, and finances.

That is why it is advantageous to work in a system where products, orders, locations, inventory, purchasing, and finance are all integrated.

From receipt of goods to delivery

Business Central supports the inventory flow from the moment the first purchase order is generated until the item is received, put into stock, picked, packed, sold, and delivered to the customer.

We manage products, locations, inventory, purchases, and sales orders all within the same system. At the same time, you can monitor warehouse finances on an ongoing basis, giving you insight into inventory value, cost of goods, product consumption, and contribution margin.

This provides purchasing, inventory, sales, the finance department, and management with a common data foundation—and makes it easier to manage inventory based on facts rather than gut feelings.

Inventory management features in Business Central

Business Central includes a range of features that support inventory management, product flow, and inventory economics.

Among other things, you can work on:

  • Products and Product Catalog
  • Inventory and Inventory Control
  • Locations, sites, and storage zones
  • Receiving, Picking, Packing, and Shipping
  • Purchasing and Reordering
  • Minimum Inventory, Safety Stock, and Allocation
  • Reservations and Product Availability
  • Serial Numbers, Lot Numbers, and Traceability
  • Inventory Count and Inventory Tracking
  • Cost of Goods Sold, Inventory Value, and Contribution Margin
  • Integration with online stores, EDI, WMS, and transportation solutions
  • Reporting and Analysis in Power BI

These features provide better structure for both simple warehouse setups and more complex warehouse and logistics flows.

When the warehouse requires more than just standard features

Many companies can get a long way with the standard features in Business Central. However, inventory management often becomes more complex when there are many items, multiple locations, a high volume of orders, scanning requirements, advanced picking, traceability, or integrations with online stores, WMS, EDI, or transportation solutions.

In this case, it may be helpful to supplement Business Central with selected apps.

At Vektus, we work exclusively with vendor-neutral apps because this gives you flexibility and independence from any single provider. This is particularly important when your inventory management solution needs to evolve alongside your business.

If you need more advanced inventory management, you might consider a solution like Tasklet, a vendor-independent app for Business Central.

AI, Copilot, and better use of inventory data

AI, Copilot, and agents are becoming an increasingly important part of Microsoft’s ecosystem. When it comes to inventory management, the focus is particularly on making inventory data more useful in day-to-day operations.

When products, inventory, locations, purchases, sales, and inventory movements are properly structured in Business Central, you’ll have a better foundation for reporting, automation, and decision support.

For example, this could involve gaining better insight into inventory levels, purchasing needs, product flow, variances, delivery reliability, and slow-moving items.

At Vektus, we provide consulting on the possibilities offered by AI, Copilot, Power BI, Power Platform, and agents in relation to Business Central. We help you assess where the technology creates real value—and how your data infrastructure, processes, and inventory management need to work together so you can get the most out of these developments.

When inventory management becomes complex

Inventory management often only becomes truly valuable when the solution reflects the reality of the business. This often involves multiple locations, a large number of items, complex product flows, picking and packing, traceability, integration with an online store, EDI, WMS, transportation solutions, advanced reporting, or new possibilities with AI, Copilot, and automation.

This is where experience makes a difference.

Vektus is one of the Business Central consulting firms in Denmark with the most experience in inventory management and logistics. We know where warehouse operations typically become complex and how to configure Business Central so that the solution supports inventory, purchasing, sales, finance, and day-to-day operations.

Frequently asked questions about inventory management in Business Central

When companies work with inventory management in Business Central, a number of questions often arise: How can we gain a better overview? How can we reduce inventory costs without compromising service? And what options do we have if the standard features aren’t enough?

Here, we’ve compiled answers to some of the questions we most frequently encounter when speaking with Vektus customers.

Yes, Business Central supports inventory management, where products, inventory levels, locations, purchasing, sales, and financials are all integrated into a single system.

Yes, Business Central supports multiple locations, so you can manage inventory across warehouses, departments, or geographic locations.

Yes, Business Central supports warehouse processes such as receiving, picking, packing, and shipping, depending on how the warehouse is set up.

Yes, Business Central supports traceability using, among other things, serial numbers and lot numbers. This is relevant for companies that need to track goods, components, or batches through purchasing, inventory, production, and sales.

Yes, Business Central supports reordering and inventory planning, giving you a better foundation for ensuring you have the right items in stock without tying up unnecessary inventory.

A WMS or warehouse management app can be useful when a company needs scanning capabilities, handheld terminals, more advanced picking workflows, multiple locations, high order volumes, or more detailed control over warehouse processes.

AI, Copilot, and agents can create new opportunities for insights, automation, and decision support. When it comes to inventory management, the focus is particularly on making better use of data, gaining a clear overview, and assessing where technology can support reporting, planning, follow-up, and automation.

No. A WMS system is typically used for more advanced and detailed inventory management, often involving handheld terminals, scanning, automated warehouse systems, or complex picking workflows. Business Central is an ERP solution that integrates inventory, purchasing, sales, and finance. In some companies, Business Central stands alone, while others supplement it with apps, integrations, or specialized WMS solutions.

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