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Location profiles


Location profiles are a key mandatory configuration which are applied to every location in the warehouse. They define the rules for item storage and retrieval within a warehouse and are used to optimise warehouse space utilisation and improve warehouse operations by providing guidance on where to store items based on their characteristics and demand.


Location profiles are configured in Warehouse management > Setup > Warehouse > Location profiles. Some of the key parameters that can be set are:

  1. Use licence plate tracking – if this is turned on, all stock at the location will need to have a licence plate assigned which will need to be specified during any stock movements.
  2. Allow negative stock – allow the stock to go negative. This is not generally recommended but, in some instances, it can streamline operations or avoid stockouts, for example, if a company runs out of stock it will allow them to continue to sell the item. It is not possible to select this option if the Use licence plate tracking has been selected.
  3. Allow mixed items – specifies whether different items can be stored in the location.
    • Enable location product dimension specific mixing – as an alternative to allowing mixed items in the location, it is possible to select which product dimensions can be mixed, for example, it may be ok to mix different colours of the same item but not different sizes.
  4. Allow mixed stock statuses – Specifies whether all the stock in the location must have the same stock status. If mixed stock statuses are not allowed in a location, changing the stock status for some of the stored goods in that location would require moving the goods to another empty location first.
  5. Allow mixed stock batches – this option allows you to store batches of mixed stock items at the location. If this option is set to No, all stock in the profile location must belong to the same batch. This is useful in situations where it is important to maintain strict control over batches and ensure that they are not mixed. For example, in industries such as pharmaceuticals or food production, it may be critical to ensure that batches of products are not mixed to avoid contamination or other safety issues.
  6. Allow cycle counting – specifies whether cycle counting can be processed for these locations. It can be useful to be able to control whether cycle counting should be allowed in certain areas of the warehouse. For example, you might want to disallow cycle counting in areas such as receiving or staging areas where stock is only stored temporarily while it waits to be moved.
  7. Generate check digit – Select this option to generate a check digit for the specified location. You can use a check digit to authenticate a location for warehouse mobile device transactions.
  8. Dimensions – location dimensions can be defined such as height, length, width etc. This can help optimize the use of space within the warehouse and improve inventory accuracy by ensuring that products are stored in appropriate locations.
    • Storage unit – This is the unit of measure for the volume calculation.
    • Actual location height, width, and depth – used in conjunction with the “Use location volume” option, Dynamics 365 will use this data along with the product’s physical dimension data to determine if the product can physically fit into the location.
    • Usable location height, width, depth – used with the “Usable dimension” option, Dynamics 365 will use this data along with the product’s physical dimension data to determine if the product can physically fit into the location.
    • Maximum weight – If locations associated with the location profile have a maximum weight, Dynamics 365 will use the weight associated with the product to evaluate appropriate locations.

Learning with Microsoft

Further information related to location profiles can be found on Microsoft Learn within the Configure warehouse management in Dynamics 365 Supply Chain Management learning path via the URL below.

Configure the warehouse layout – Training | Microsoft Learn