Bin Location:

Bin Locations Overview

SAP Business One
Version 10.0

PUBLIC
Objectives

At the end of this topic, you will be able to:

 List the benefits of using bin locations
 Describe at a high level:
 Bin locations set up process
 Manual and automatic allocation processes

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Solution Benefits and Business Example

Business Scenario

 You are working with George, the warehouse manager at OEC Computers, to analyze their logistics
procedures and needs.

 He would like to improve the speed of storing and picking goods.

 OEC Computers’ warehouse is very large. Often workers cannot quickly locate specific items for picking.

 Since there is no plan for where items should be stored, an item may be stored in multiple locations in
the warehouse.

 You recommend using the bin location solution for his warehouses.

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Business Scenario
OEC Computers Warehouse Structure

Shelf   Shelf

Shelf   Shelf
Le

e
vel ve l
Le Le
v e l Aisl ve l
Le
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Warehouse Sublevels
and Bin Locations Structure
Warehouse Sublevels Structure
Bin Location Code Composition - Example

Warehouse Level Warehouse 05

Warehouse Sublevel 1 - Aisle A1 A2

Warehouse Sublevel 2 - Shelf S1 S2

Warehouse Sublevel 3 - Level L1 L2 L1 L2

A unique combination of the warehouse

code and the warehouse sublevel codes Bin Locations Code

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OEC Computers: Bin Location Code Structure

Sublevel structure Warehouse - Sublevel1 - Sublevel2 - Sublevel3

Bin Location Code in

OEC Computers 01 – A4 – S2 – L9

Details Warehouse 01 – Aisle 4 - Shelf 2 - Level 9

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Bin Location Master Data

Inventory  Bin Locations  Bin Location Master Data

Code structure

Properties

Restrictions

Attributes

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Setup Process

Set up a bin location-managed Define automatic

Phase 1 Warehouse and details allocation strategy

Set up Warehouse
Set up Attributes
Phase 2 Sublevels

Set up Bin Location

Phase 3 Codes and details

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Business Process Integrated with Bin Locations

Business Process Scenario Integrated With Bin Locations

Goods Receipt PO Allocation

Allocation to
to Bin
Bin Locations
Locations

Bin Location Content List

Inventory Transfer Allocation

Allocation to
to and
and from
from Bin
Bin Locations
Locations

Sales Order

Picking
Allocation
Allocation from
from Bin
Bin Locations
Locations
Delivery

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Allocations in Goods Receipt PO

Original row
quantity

Incoming
transaction

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Automatic Incoming Allocations
Receiving Bin Locations Option

1. Creation of purchasing documents

Items are automatically allocated to the Receiving Bin Locations

2. Goods receipt procedure in the Receiving bin location

(Inspection, sorting, labeling etc.)
3. Inventory transfer to storage bin location

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Automatic Incoming Allocations
Automatic allocation strategies option

When using Automatic allocation, items are allocated automatically to a storage bin location

Automatic allocation on receipt can be defined as:

• Default bin location
• Current bin location
• The last used bin location
• Any historic bin locations

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Bin Location Content List

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Allocation in Inventory Transfer

These fields contain the

default values for the
fields in the grid

Incoming
transaction

Outgoing
transaction
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Bin Locations in the Picking Process

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Allocations in Delivery

Outgoing
transaction

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Summary (1/2)

Here are some key points:

 A warehouse structure is represented as a hierarchy in SAP Business One.

 The elements of the structure can be divided into area types, like aisle or shelf.
 Each area type can be defined as a warehouse sublevel.
 Sublevels are defined in a hierarchy where sublevel_A may contain several of
sublevel_B.
 The bin location is always the bottom level of the hierarchy.
 The bin location code is a combination of the warehouse code and each of the sublevels
in the hierarchy for a specific bin location.
 Every document that generates an inventory transaction and involves a warehouse with
bin location requires allocation of items to issue or receive from specific bin locations.

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Summary (2/2)

Here are some key points:

 Both incoming and outgoing allocation can be done manually or automatically according
to a predefined set of rules.
 Manual allocation is done on the Bin Location Allocation window (Issue or Receive)
 A Receiving bin location is a transit bin location that is used as an inspection area for
quality check or any other receipt procedures
 The Bin Location Content List displays quantity balances for each bin location and item.
From this report, you can perform different actions, such as:
 Create an Inventory Transfer
 Display an Inventory Posting List report for selected bin locations
 An Inventory Transfer moves items to a different bin location within the same warehouse
or to another warehouse

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