Dynamics AX 2012 R3 Warehouse Management – Set Up Products: Part 1

by | Updated December 23, 2020 | Dynamics AX, Inventory, Manufacturing, Set Up

One of the most important things in the new Warehouse Management module in Dynamics AX 2012 R3 is getting the setup and configuration right.

In this post, I’ll cover at a high level the product-specific setup and configuration that’s required for the Warehouse Management module.

Set up products

1. Set up a Storage dimension group
Product information management > Setup > Dimension groups > Storage dimensions

  • Storage dimension groups are used to determine the inventory storage information, as well as if a product will use warehouse management processes.
  • When the Use warehouse management processes check box is selected, this enables the following dimensions:  Location, Inventory status, and License plate.

Warehouse Management Processes

2. Set up a Tracking dimension group
Product information management > Setup > Dimension groups > Tracking dimensions

  • There is a new Capture serial field on the Tracking dimension group that enables Warehouse Management to capture serial or batch numbers at picking or packing.
  • If you want to use serial or batch numbers for all inventory transactions you can select the Primary stocking check box.

Tracking Dimension Groups

TIP: Tracking and using serial or batch numbers is optional, however, a Tracking dimension group is required on the product setup.

3. Set up a Unit sequence group
Warehouse management > Setup > Warehouse setup > Unit sequence groups

  • A Unit sequence group determines how the system locates product in the warehouse and how locations are selected for inventory putaway.
  • A Unit sequence group defines which units of measure an item is stored in, from the smallest to the largest.

Below is an example of a product that is stored in eaches (ea), cases (Case), and pallets (PL).

Unit Sequence Group

4. Set up a Reservation hierarchy
Warehouse management > Setup > Inventory > Reservation hierarchy

  • The Reservation hierarchy determines which dimensions must be used when reservation occurs.
  • The cutoff point for reservations is the Location dimension. The reservation dimensions above the Location cutoff are used during automatic reservation. When you enter a sales order, you don’t need to provide the location and any dimensions that are listed below the location.
  • The dimensions in the hierarchy listed below Location are determined by the warehouse management process (during picking for example).


Inventory Reservation Hierarchy

5. Release a product
Product information management > Common > Released products

When you create a new product, you specify the Storage dimension group, Tracking dimension group, and the Reservation hierarchy on the New Released product form.

Storage Dimension Group in AX 2012

When you click the OK button, the Released product details form will open.

The Unit sequence group ID is required and can be selected on the Warehouse management FastTab.

Warehouse Management Physical Dimensions

6. Set up product specific Unit conversion
Product information management > Common > Released products – Highlight a product – Click the Unit conversions button

Unit conversions provide a way to convert between an item’s units of measure. For example, you might receive items on pallets, however you store the item in your inventory in eaches.

Below shows a conversion for our item from pallets to eaches and from cases to eaches.

Unit Conversions

7. Set up Inventory status
Warehouse management > Setup > Inventory > Inventory status

Inventory status is one of the dimensions in the Storage dimension group. It’s basically a way to categorize if an item is available or unavailable for reservation.

For example, if an item has an Inventory status of Damaged with Inventory blocking selected, that item would be unavailable to reserve and pick during an outbound picking process. Items that aren’t available for reservation cannot be shipped.

Here is an example of two statuses that can be used: Available and Damaged.

Inventory Status

For more detailed information on how to setup and use Warehouse management, download the Warehouse Management System Implementation Guide for Microsoft Dynamics AX 2012 R3.


Related Posts

  • Microsoft Dynamics AX 2012 offers robust functionality designed to more effectively manage compensation across entire organizations.  Compensation is managed using compensation plans in combination with eligibility rules to restrict enrollment…

  • I had a customer ask me last week for some more information about print management, and because there's good information in multiple places, I thought it would be a good…

  • In the Dynamics AX Warehouse Management module, it is possible to start a production order with the mobile device. Users may find when starting the production order using the mobile…


  1. Md Nisar Ahmad

    Is it basic knowledge about warehouse management?
    If not then how may I start my work on warehouse management?

  2. Brandon Carmichael

    Hello Md Nisar Ahmad:

    Thank you for your interest in our blog. Unfortunately I can not answer if this is ‘basic knowledge’. Wendy is one of our senior functional consultants with over 16 years of experience.
    As far as starting your work on warehouse management, may I suggest reviewing the Warehouse Management System Implementation Guide for Microsoft Dynamics AX 2012 R3. It can be downloaded from Microsoft at: https://www.microsoft.com/en-us/download/details.aspx?id=43660

    Hope this helps – thanks,

  3. Samuel

    Very useful more information

    With Regards,

  4. Taylor Valnes

    Hello Samuel,

    Thank you for your comment!


Submit a Comment

Your email address will not be published. Required fields are marked *

Upcoming Events


01sep10:00 am10:30 amEnsuring Quality and Compliance for Batch Manufacturers in Life Sciences

01sep12:00 pm12:30 pmIs it Worth It to Move to the Cloud? A Look at Considerations for Current Agribusinesses Using Dynamics GP

01sep2:00 pm2:45 pmWhat’s New in Dynamics 365 Finance and Supply Chain

09sep11:00 am12:00 pmConfab Live with Stoneridge – Data Strategy and Reporting – Mining Decision Making Insights

15sep10:00 am11:00 amSolving the Biggest Challenges in Agribusiness Through Innovation and Technology

22sep12:00 am12:30 pmSimplifying Payroll and HR Management with ADP Workforce Now

22sep10:00 am10:30 amStreamlining Batch Manufacturing with Technology

22sep2:00 pm2:30 pmProcess Automation for Microsoft Dynamics D365 for Business Central, Finance and Operations and GP

23sep11:00 am12:00 pmConfab LIVE with Stoneridge - Riding the Wave 2 Release – Key Features Coming to Dynamics 365 this October

27sep(sep 27)9:00 am15oct(oct 15)11:00 amDynamics 365 Finance & Supply Chain Development Training - Online Workshop

29sep10:00 am11:00 amTop Five Reasons Why NOW is the Right Time to Move from Salesforce to Dynamics 365 Customer Engagement

29sep12:00 pm12:45 pmUnderstanding Job Costing and Tax Management in Business Central

29sep2:00 pm3:00 pmDigitalizing Horticulture & Agriculture - How to Sell Plants Online and Simplify Business Management

30sep12:00 pm4:00 pmSecurity and Permissions Training for D365 Business Central or Dynamics NAV


27sep(sep 27)9:00 am15oct(oct 15)11:00 amDynamics 365 Finance & Supply Chain Development Training - Online Workshop

06oct10:00 am10:30 amPreview of D365 Business Central Fall Release Features and Functionality

06oct12:00 pm12:30 pmInsider's Guide to New Features Available in the Fall Release of D365 Finance and Supply Chain

07oct11:00 am12:00 pmConfab LIVE with Stoneridge - Dataverse and Dynamics in Review – Let’s Get Technical

21oct11:00 am12:00 pmConfab LIVE with Stoneridge - Dataverse and Dynamics in Review – Let’s Get Functional

26oct(oct 26)9:00 am28(oct 28)5:00 pmStoneridge Connect Leadership and Community Conference

About Stoneridge
Stoneridge Software is a unique Microsoft Gold Partner, with emphasis on partner. With specialties in Microsoft Dynamics 365, Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP and Microsoft Dynamics CRM, we focus on attracting the most knowledgeable experts in the field to our team, and prioritize delivering stellar solutions with maximum impact for your business. At Stoneridge, we are deeply committed to your results. Each engagement is met with a dedicated team, ready to provide thorough, tailored, and expert service. Based in Minnesota, we intentionally “step into your shoes,” wherever you are. We focus on what you care about, and develop trusting, long-term relationships with our clients.

Subscribe To Our Blog

Sign up to get periodic updates on the latest posts.

Thank you for subscribing!