In-Transit Locations in Dynamics 365 Business Central

 

Understanding In-Transit Locations in Dynamics 365 Business Central

Efficient inventory management is crucial for businesses that deal with physical goods. One important aspect of this process is managing items that are being transferred between locations. Dynamics 365 Business Central offers robust tools to handle this, including the concept of an in-transit location. This blog will explain what an in-transit location is, its benefits, and how to set it up in Business Central.

What is an In-Transit Location?

An in-transit location is a virtual location used to track inventory items that are being transferred from one physical location to another. It serves as a placeholder to ensure that items are accounted for while they are in transit, preventing discrepancies in inventory levels.

Key Characteristics:

  • Virtual Location: Unlike physical locations, in-transit locations do not represent a physical space but a status in the inventory process.
  • Inventory Tracking: Items moved to an in-transit location are still part of the overall inventory, allowing for accurate tracking and management.
  • Flexibility: In-transit locations provide flexibility in managing logistics and supply chain processes, especially for businesses with multiple warehouses or distribution centers.


To set up an in-transit location in Dynamics 365 Business Central, follow these steps as you create a regular location. In the Use as in-transit location flag, you need to set to On. This classification helps in distinguishing it from physical locations.

Using In-Transit Locations for Transfers

When transferring items between locations, you can use the in-transit location to track the movement:

  1. Create a Transfer Order:

    • Navigate to the Transfer Orders page.
    • Create a new transfer order, specifying the From Location and To Location.

  2. Post Shipment:

    • When you post the shipment from the From Location, the items are moved to the in-transit location.

  3. Post Receipt:

    • Once the items reach the To Location, post the receipt to move the items from the in-transit location to the destination.

By following these steps, you can effectively manage and track inventory items while they are in transit, ensuring accurate inventory records and efficient logistics operations.


Normally, once items are in the in-transit location, user won't be able to move them to other locations by using item reclassification journal. If user encounter issues completing a transfer order, user may use configuration package to turn off the in-transit location to Off, then reclassify the items to desired location. 

Conclusion

In-transit locations are a powerful tool in Dynamics 365 Business Central for managing the movement of inventory between locations. They provide accurate tracking, enhance supply chain visibility, and reduce errors in inventory management. Setting up and using in-transit locations can significantly improve the efficiency of your logistics and inventory processes.

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