Warehouse Receipts in Business Central Explained

Warehouse Receipts in Business Central

Warehouse receipts in Business Central streamline the movement of goods into your warehouse, ensuring accurate stock handling, tracking, and reporting.

 Related Article: Setting Up Warehouse in Business Central 

The Wrong (Hopefully Memorable) Explanation

Imagine you’ve just returned from the supermarket with ten bags of shopping. Instead of putting them straight into your cupboards, you leave them by the front door with a note saying: “Stuff to sort later – don’t touch!”

That note is your “warehouse receipt”. It doesn’t tell you what’s in the bags, how many crisps you bought, or whether you remembered the milk – but it does scream: “Goods are here, but we’ve not actually dealt with them yet.”

It’s a bit like promising your housemates that you’ve got everything under control, even though the ice cream is already melting.

The Professional Explanation

In Microsoft Dynamics 365 Business Central, warehouse receipts are documents used to record and manage the receipt of inbound goods at a warehouse location.

They are an essential step in the warehouse management process for businesses that operate with directed put-away and pick or advanced warehouse configurations. Unlike simply posting a purchase order receipt directly, warehouse receipts give you greater control, visibility, and accountability over inbound stock movements.

Here’s how they work:

What is a Warehouse Receipt?

A warehouse receipt is a system document created when goods physically arrive at a warehouse but before they are put away into storage. It allows the warehouse team to confirm:

• Which items have arrived

• The quantities received

• Where the items will be placed (after confirmation and put-away)

The receipt ensures the warehouse team can log and check the goods before updating stock levels in the system.

When Do You Use It?

Warehouse receipts are typically used in the following scenarios:

• Inbound Purchase Orders: When suppliers deliver goods, the warehouse creates a receipt document to confirm arrival.

• Transfers: If stock is moved from one company location to another, the receiving site can log it with a warehouse receipt.

• Returns: Returned items from customers may also be handled through receipts to ensure proper inspection and storage.

Why Are Warehouse Receipts Important?

• Accuracy: Avoids over- or under-receiving stock by ensuring actual goods are logged before stock records are updated.

• Traceability: Creates an audit trail of who received what, when, and where.

• Efficiency: Supports smoother put-away processes by separating the “arrival” of goods from the “placement” of goods.

• Control: Essential for businesses with structured warehouse layouts and inventory processes.

Example Flow: Receiving Goods with a Warehouse Receipt

1. A supplier delivery arrives at your warehouse.
2. The system generates a Warehouse Receipt document for that delivery.
3. The warehouse staff check the goods against the receipt, verifying quantities and item details.
4. Once confirmed, a Put-Away document is generated to move goods to the correct bins or racks.
5. Stock levels in Business Central are updated once the receipt is posted.

Who Needs It?

Warehouse receipts are most relevant for businesses that:

• Run larger or more complex warehouses

• Require directed put-away and pick

• Need granular visibility over inbound stock movements

For smaller businesses or simpler warehouse setups, receipts may not be necessary. Goods can be received directly against purchase orders without the extra step.

Can We Help?

If warehousing isn’t quite setup the way you want or needs some insight on best practices, then get touch – we’ll sort it!