D365FO Inventory Status

Unlike the Microsoft Dynamics 365 for Finance and Operations Inventory Transaction Status, you must create the D365FO Inventory Statuses yourself.

And you should, as they are really helpful

Microsoft Dynamics 365FO Inventory Status

According to an article on docs.microsoft.com:

You can use inventory statuses to categorize inventory. You can then initiate appropriate actions, such as replenishment or put-away work.

Here are some examples of ways that you can use inventory statuses:

• Create inventory statuses for on-hand inventory, inbound transactions, and outbound transactions.
• Specify a default inventory status for warehouse transactions.
• Change an inventory status for items before arrival, during arrival, or when the items are put away during inventory movement.
• Use an inventory status to price items that are returned and to plan item coverage during master planning.

D365FO Inventory Status is a dimension

An inventory status is one of the dimensions in the storage dimension group.

Inventory statuses can be categorized as available or unavailable, and you can use the Inventory blocking parameter to block items that have an unavailable inventory status.

Items that have a blocked status are considered physical inventory, and they can't be used on a production order, sales order, transfer order, or outbound transaction.

You can use warehouse items that have either available or unavailable inventory statuses for inbound work.

For example, you create

• an available status that is named Ready,
• an unavailable status that is named Damaged,
• and a blocked status that is named Blocked.

When you create a purchase order for received or returned items, if any items are damaged or broken, you can change the inventory status of those items to Damaged on the purchase order line. After these items are received, the status is automatically set to Blocked.

If you scan the damaged items by using a mobile device, Microsoft Dynamics 365 for Finance and Operations can use location directives and work templates to show information about an appropriate location or range of locations where you can put away those items. For returned items, an issue type of Reservation is created on the Inventory transactions page.

For outbound work, use items that have an available inventory status. If you have items that have a status of Broken, and master planning is run on these items, the items are considered missing, and inventory is automatically replenished.

Set-up default Inventory Status

After you set up inventory statuses, you can set the default inventory status for a site, item, and warehouse. You can also set a default status for sales, transfer, and purchase orders.

The default status for sales orders and outbound transfer order can't have the Inventory blocking option set to Yes.

The inventory status that is inherited from the default settings on a site, warehouse, item, purchase order, transfer order or sales order can be changed by using the mobile device, or on the purchase order, sales order, or transfer order line.

Plan coverage based on Inventory Status

To plan coverage for items that have an available inventory status, select the Coverage plan by dimension option for a storage dimension on the Storage dimension groups page.

When you open the Item Coverage wizard, items that have an available status appear on the Status page.

To create coverage settings for these items, select the inventory status ID for the available inventory statuses. Based on the coverage settings, you can calculate the item requirements and forecast the supply and demand of available items during master planning.

You can't create an item coverage setup that has a blocked inventory status.

Alternatively, use the Item coverage page to create or modify the item coverage parameters.

This is NOT Inventory Transaction Status

Please make sure that you don't confuse the D365FO terms Inventory Transaction Status and Inventory Status.

Inventory Transaction Statuses are automatically used by D365FO to keep track of inventory quantities and cost/value.

Read more about D365FO Inventory Transaction Status.