Inbound pick-and-drop (inbound staging) in Microsoft Dynamics 365 for Operations


There are several usage scenarios in the inbound pick-and-drop process.

Imagine that the aisles in the warehouse that warehouse workers use to get to put-away locations are very narrow because companies want to save floor space and store as many items as possible. This often requires dedicated equipment and warehouse workers who are trained to operate in these aisles for both picking and put-away operations. In this situation, locations outside the aisles are created and served as both inbound and outbound pick-and-drop locations. If the production results in the fact that the produced items need to be put away in the evenings, production workers might move all items to the pick-and-drop location near aisles and leave them for the dedicated warehouse workers to put away.

The process is the same for received purchase orders. A receiving clerk picks the orders at receiving docks and move them to the pick-and-drop location where final put-away will be processed.

We will use the purchase order receiving as an example to show how to work with inbound pick-and-drop.

Next, we show how inbound pick-and-drop can be set up in Microsoft Dynamics 365 for Operations.

Set up inbound pick-and-drop

Setup scenario

Imagine this simple scenario: there are 3 aisles with 1 pick-and-drop location in each aisle. Note: This is a simplified scenario. Normally, there are several pick-and-drop locations in each aisle.

In the front of each aisle, there is a pick-and-drop location acting as the staging location for the aisle. Each staging location and the locations that it serves are defined as the members of the same zone. We will use the Zone ID from the Temporary Work Transaction table to differentiate work templates.

What we want to achieve is that a pick-and-drop location is selected per the selection of the final put-away location. So, we will create 3 zones and 3 fixed item locations for 3 different items, 1 item for each zone, and we will create 3 pick-and-drop staging locations, 1 staging location for each zone.

Note: You can use other filtering than fixed item locations, such as product groups or vendors, to set up items in 3 different zones.

We will create 3 different Location directives as well for put-away and they point to the staging locations that are associated with directive codes.

In total, we will have 3 work templates. Each work template has 1 zone and a dedicated staging pick-and-drop location.

Setup procedures

First, we create 3 locations for put-away in each zone and 3 dedicated staging pick-and-drop locations for each zone. Note: We can have many locations in each zone. This simple example just illustrates the process.

Next, we set up fixed locations for 3 items with 1 item in each location in each zone. This is not mandatory, but this is the way that we use to have items to be allocated to 3 different final locations in 3 different zones where we want to stage pick-and-drop locations prior to final put-away.


Next, we create 3 Location profiles that will be used in Location directives, but this is not mandatory. If the properties are the same, you can use 1 Location profile for all Location directives



Next, we create 3 different Directive codes that will be used to associate Work template and Location directives with dedicated staging pick-and-drop locations for each zone.



Next, we create 3 different zones to which we allocate the locations that we have created in the previous procedure.



Next, we create Location directives for each zone. We use Fixed location because we have fixed locations.


Next, we create 3 Location directives, 1 for each staging pick-and-drop location associated with a dedicated zone.


Next, we create 3 Work templates. Each template includes 2 pick-and-put steps. The Work templates are associated with location directives using the directive codes that we have created.



Next, see the following query setup for Work templates.


Next, we create a Purchase order for 3 different products. For each product, we set up a fixed location in one of the 3 zones that we have created.


After we receive the purchase order using barcode scanner, we can see that 3 Work IDs are created for 3 products. Each product has its own unique Work ID.


We can see that each item has two pick-and-put steps using their respective staging pick-and-drop locations.








Comments (6)

  1. Rodrigo says:

    Hi Mirza,

    Excellent post. This feature also meets a common requirement where customers don’t want to have items available for sales until they have been placed in their final putaway location. There is only one thing that could make this solution way better: adding the possibility to setup a quantity for Print step in work templates. The example you give is very simple: there are two Pick/Put pairs, but in a real scenario the setup will be Pick/Print/Put/Pick/Put. Now, let’s say user receives a PO with a quantity of 250 ea (they don’t receive 1 PL) of item A. In that case, AX will print 250 labels, which most of the time is not very convenient. All that users need is getting one single label printed for the license plate generated by the system. In this way, user 1 places 250 ea of item A in Zone 1 P&D location, and user 2 will scan this single license plate label in order to get the instruction where to do the final put.


    1. Great comment Rodrigo on a excellent post!

    2. Mirza Abdic' says:

      Thanks guys,
      It is good suggestion, like strategy called “something” set on the Print set (maybe we could do few strategies)which will be printing for the quantity and not by Unit/pallet or whatever other setup is used. ?

  2. Kaushik says:

    Hi Mirza,

    I know the question does not belong here. We have a client requirement to use Catch weight with Advance WMS app. Is it on the product team radar or can we at least get some guidance around this?


  3. Wojtek says:

    Nice example 🙂 It can be use even for Automated Reach trucks, cranes etc.
    I have scenario with a step before this what You describe above, on Inbound Receive. Also we have more then one Inbound location – ramp/baydoor. I need to know where Items are physically by worker who register them on inbound and then, when work will be generated I can send (or read from screen as a PIC Location) another worker directly to e.g. Ramp 5, or Ramp 9. If I have a truck average one for 30min on 10 to even 40 ramps on Inbound, how can I found witch Inbound where exactly stands, especially when I have system guided work on mobile device.
    For warehouse configuration also should be possible configure “Default receipt location” by single location or type of locations. Then You can use a type: Inbound and all location of this type can by used like Inbound location. Worker can overwrite if he put Items in different location then selected by default.
    Also You should think about managing Inbound area by assigning a Inbound Location for e.g. Loads – each load will be assigned manually by manager/dispatcher or automatically by e.g:
    1)number of load per location (if load is finished then unlocked location if not he still occupied and use limitation).
    -a) total stiffly for e.g.: 2 or 7,
    -b) for an hour, using confirmation of shipment, for e.g. 2 per hour of 3 per hour.
    2) number of units from ASN or prediction count using item definitions of “Unit sequence groups” (highest numbered) and “Unit conversions” for unit in PO line ( for e.g. pcs) if is not the highest aggregate logistic unit (mostly full Pallet). Each location have limitations per numbers of units and you can control fulfilment by on-hand inventory. Also You can have graphic presentation of this fulfilment. This can be use bought for INBOUND and OUTBOUND areas especially if there are big Warehouses or even Distribution Center.

  4. Wojtek says:

    Hi, why my comment was erase from forum? Do not hatred my help. If you have problems to share this or any other issue, please write to me an email, and I will help you in a lot of business conceptions – I have experience in implementation of WMS solutions at last in 15 different cases for two dedicated software class WMS and twice for AX2012R3 with success. Also I have worked to develop functionality in one of dedicated WMS (R&D).

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