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warehouse is a planned space for handling and storage of goods and materials of a business. It is usually a geographic location or an area within that geographic location that serves a function. For example, you may have a single London warehouse or this could be broken down into multiple warehouses e.g. a goods inwards warehouse, a raw material warehouse and a finished goods warehouse.


When you create a warehouse you must specify a warehouse type. These types include:

  • Default (standard warehouse for storage)
  • Quarantine (warehouse for storing items during the Quality Management process)
  • Transit (warehouse used to track the in-transit status when moving stock from one warehouse to another)
  • Goods in-transit (used for the Landed cost functionality)

Warehouses are created in Warehouse management > Setup > Warehouse > Warehouses and contain various information and defaults about the warehouse, for example, which site this warehouse resides in, which quarantine and transit warehouse is used for this warehouse, whether Master planning is used on this warehouse and various default locations which should be used for purchase order receipts, raw material consumption, etc.

Learning with Microsoft

Further information related to Warehouses can be found on Microsoft Learn within the Configure and Work with Inventory Management in Dynamics 365 Supply Chain Management learning path via the URL below.

Configure warehouses – Training | Microsoft Learn