Upgrading D365 Business Central On-premise to D365 Business Central Online.


Hi Buddies!  Hope you are well ?

My last blog was on Can we upgrade NAV to Business Central Online directly? If you haven’t seen it yet, please click here

This article covers the steps of how to upgrade from D365 Business Central On-premise to D365 Business Central Online.

Upgrade from NAV to Business Central online process consists of three parts:

  • Upgrade from Dynamics NAV to Business Central using the tools described in Upgrading to Business Central on-premises.
  • Convert non-standard functionality and customizations to apps and per-tenant extensions. For more information, see Deploying a Tenant Customization.
  •  Connect to the intelligent cloud, and then switch to use the Business Central online tenant going forward.

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Reservations in Business Central


Hello Buddies! I’m back with a new blog on Item reservations.

So lets start with why are reservations important?

  1. For Shipments – Mostly manufacturing and distributing companies face inventory problems due to shipments and purchases running in and out of the system. Hence, reserving the quantity becomes a must!
  2. Reservation lock your shipment quantity so even though there are 10000’s shipments a day, you will always have inventory for a smooth sales transaction.

Lets look at the steps now


Scenario 1: Reservation against available Inventory

Here , I’m reserving 40 units for my shipment. Inventory available is 57. Once I add reservations, no one will be able to use my inventory of 40 for other transactions as it will be locked. Let’s give it a try, shall we ?

  1. Create a Sales order with quantity as 40

2. Click on the Line tab on the top ribbon and click on Reserve

3. Click on Auto Reserve and system will make the necessary reservations against your shipping quantity
4. Once reservation is done, we can find reserved quantity as 40 in the line information of the Sales order

Scenario 2: Reservations against unavailable Inventory

Lets check the scenario where the shipping quantity is more than the available quantity.

  1. Here, The requested delivery date is set for 02 February when the order was created on 23/01. We are shipping 60 units when Available inventory is of only 57 units but Item availability shows 42 units available

2. This is because the system takes into account the planned receipts before 02/02 and hence it displays 42 as Item availability.

3. Click on Reserve action on the top ribbon. Here, we can see two lines are taken into consideration for Reservation – Inventory and Purchase Line order. This is because we are expecting the Purchase order before the sales shipment.

4. If we click on Auto Reserve, it will use the FIFO approach and add reservations to the first line first and then to the second line

5. If we want to preserve the physical inventory, we can do that too by using Reserve from current Line. Click on the line you wish to reserve and then click on Reserve from current line

6. We can make a similar reservation for the physical Inventory line. Here, after reservations, we still have 47 units of physical inventory to be utilized.

This can be useful for urgent sales orders.

Thanks for reading! Hope this was helpful. Let me know your comments. 🙂

How to make Drop Shipment with Item tracking and Requisition worksheet in Business Central ?


What is Drop Shipment?

Drop Shipment is the shipment feature to ship the items directly from the vendor to the Customer.

Shipment sent to the customer from the vendor can be easily tracked using item tracking and Requisition worksheet makes it easier to carry out the Purchase order.

Pre-requisites: Business Central


  1. Check the Item for item tracking and Replenishment type as Purchase with Vendor No
Item 80006 with Replenishment as Purchase and Vendor No.50000

2. Create Sales order and enter the Item (in my e.g. 80006) and enable drop shipment

Enable drop shipment

3. Close the sales order page and search for Requisition worksheet . Click on Drop shipment menu and select Get Sales order

Select Get Sales order on your requisition worksheet

4. Enter the Sales document no. and click on OK. The Sales order loads as below.

Click on the Process and select the Carry out Action Message

Click on carry out action message

5. Enable print if you wish to print the Purchase order or you can print it later. click on OK

5. A new Purchase order is created. Search for Purchase orders and open the latest Purchase order.

Purchase order created with same quantity

6. If you wish to check if the Purchase order (PO) is really a drop shipment then in the Lines click on order, select drop shipment and select sales orders. The Sales order page will load.

7. Close and sales order page and navigate back to the Purchase order. As the Item 80006 has Item tracking setup, we need to assign Item tracking.

To assign Item tracking, click on Line and select Item tracking Lines

Click on Line and click on Item tracking Lines

8. When the Item tracking page loads, click on Process and select Create Customized SN

Select Customized SN

9. Enter the Customized Serial No. and Increment as 1 and click on OK

Enter Customized SN

10. Item tracking lines is generated as below image. When you click on close it will prompt you if you would like to synchronize item tracking with sales order line. Click on yes

This means the same Item tracking lines will be generated for Sales order line as well.

11. If we open Sales orders from the Purchase order using step 6 and check item tracking lines. Same item tracking is assigned for Sales order as well.

Same Item tracking assigned to Sales orders

12. If we post the receipt for Purchase order, the shipment of the sales order will be posted automatically. To post the Purchase order, click on posting then post, select Receive and click on OK

13. On Posting, Quantity received on PO will be 25 also if you check the Sales order, the shipment will be posted with quantity shipped as 25 along with their item tracking lines.

Quantity received on posting receipt of PO
Quantity shipped automatically on posting of PO

14. Navigate to Item tracking Lines and you will see negative and positive entries. The negative entries is always the shipment and here in the below example the Document No 102044 is the posted sales shipment No

The positive entries with Document No as 107037 is the posted purchase receipt No.

Thanks for reading!

Hope this article helped you gain more insights. Do let me know in the comments your suggestions.

Business Central: How will Item tracking affect Inbound, Outbound and Internal transactions?


Once we setup Item tracking codes for a Item, we’ll have to assign Serial No’s and Lot No’s to each flow of transaction e.g. Inbound transaction like Purchase document, Outbound transaction like Sales document and Internal transactions like Inventory adjustment journals.

For Inbound transaction like Purchase document, we create new Item tracking and for outbound transaction like sales document we select the existing item tracking used for the Purchase document.

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