Advance Inventory Management with Bin Location

What is Bin Location?


a term for storage areas that are smaller in size, used to store items that are small in size. managing stock in various different warehouses, by dividing each warehouse into various zones, implementing place allocation rules, optimizing stock movements, and reducing repeated picking processes.


So what are the advantages?


Inefficient use of inventory shelves certainly has a negative impact on company expenses because it is associated with wasting money. Apart from being able to save in terms of finances and space requirements, of course warehouse employees will find it easier to find and tidy up goods according to the delivery schedule. With the Bin Location feature in SAP Business One, it can provide the following benefits: Tracking goods in the warehouse, Optimizing storage space, Significantly reducing picking time, Real-time inventory position helps companies make better decisions, enhanced warehouse reporting for benchmark information in KPI settings, faster and more accurate inventory calculations, and can automate the following functions:

  • Process transactions quickly with Bin Location.

  • Automate Inventory storage/picking.

  • Minimizes the potential for user error.

  • Automatic allocation of managed items based on Serial and Batch Numbers.

How to Activate Bin Location on SAP Business One?


By activating this feature, bin location is required to be recorded in all incoming and outgoing goods transactions. To activate this feature, we can go to the Main Menu > Administration > Inventory setup > Warehouses. Next, check the "Enable Bin Location" option then update. After that a new tab will appear (Bin Location Tab) and check the option "Enable Receiving Bin Locations". Please remember that in SAP Business One there is a difference between Receiving Bin Location and Storage Bin Location. Apart from Bin Location, find the convenience of Inventory Management with SAP Business One in the following article. Ease of Inventory Management with SAP Business One


Storage Bin Location: Termed as a general storage place where an item is stored, meanwhile

Receiving Bin Location: Functions as an inspection place or what is usually called a temporary warehouse for goods that have just arrived from outside. If we need an option like this, we can check the "Enable Receiving Bin Locations" option then update.


Bin Location Able to Manage Warehouse Sublevels


SAP Business One has a feature that functions in managing racking systems or strategies in more detailed inventory storage allocation. Bin Location in SAP Business One is equipped with 4 warehouse sublevels. You can also determine how much to sublevel an inventory item. Illustrations of Sublevels in SAP Business One will be depicted through the following illustration

Based on the picture above, it can be illustrated that an allocation of goods in SAP Business One is designed from the largest unit to the smallest unit. In the following order 1 Warehouse > 3 Aisles (Corridor) > 5 Shelves (Shelves) > 3 Levels (Rise). If your company needs inventory management, the SAP Business One rack system will certainly be the right choice. A more detailed discussion regarding the use of sublevel warehouses will be explained in the next article. Stay Tuned.