Case Study: Controlling Out‑of‑Specification Stock in Business Central

Industry: Manufacturing

Platform: Microsoft Dynamics 365 Business Central

Focus: Quality Control, Warehouse Management, Concessions & Deviations

The Challenge: Out‑of‑Spec Stock Risking Accidental Shipment

Manufacturing businesses frequently deal with stock that is out of specification — failed inspection items, damaged goods, quarantined batches, or materials awaiting engineering approval.

In standard Microsoft Dynamics 365 Business Central, this stock can still appear available, especially in bin‑controlled and WMS environments, creating a real risk that it is picked and shipped by mistake.

The customer needed a solution that would:

• Prevent out‑of‑spec stock from being shipped

• Allow controlled shipment only with an approved concession

• Work with Advanced Warehouse Management and handheld scanners

• Provide a clear audit trail for quality and compliance

The Solution: A Custom Concessions & Deviations Extension

We designed and delivered a bespoke Concessions (Deviations) extension for Business Central, enabling precise control over out‑of‑spec stock at bin level, without disrupting day‑to‑day warehouse operations.

The extension integrates directly into standard Business Central workflows, ensuring the system enforces quality rules automatically — not relying on manual checks or workarounds.

How the Solution Works

Blocking Out‑of‑Specification Stock at Bin Level

Warehouse or quality users can mark individual bin content lines as Out of Spec, capturing:

• Item, quantity, and bin

• Mandatory reason code

• Optional notes for audit purposes

Only the selected stock is blocked — not all inventory for the item — giving precise control without operational side effects.

Full Visibility of Blocked Stock

Blocked inventory is immediately visible in a dedicated Out‑of‑Spec Stock List, providing transparency across quality, warehouse, and management teams.

This ensures everyone understands:

• What is blocked

• Why it is blocked

• Where it is physically located

Sales Order Awareness and Control

When an out‑of‑spec item is added to a Sales Order, Business Central displays a clear warning, ensuring sales teams understand the situation before committing to shipment.

This removes ambiguity and protects customer relationships.

Warehouse Picks Automatically Avoid Blocked Bins

During warehouse shipment or pick creation:

• Blocked stock is automatically excluded

• Only valid, in‑spec stock is selected

• Clear notifications confirm the system behaviour

This works seamlessly in both:

• The Business Central web client

• Advanced WMS and handheld scanning solutions

Controlled Shipment via Approved Concessions

If a customer agrees to accept non‑conforming stock, a Concession record can be created with:

• Validity start and end dates

• Optional maximum quantity limits

• Strict permission control for creation and approval

Without a valid concession: ❌ Picks cannot be registered❌ The stock cannot be shipped

If concession dates expire or quantity limits are exceeded, Business Central blocks the shipment automatically.

WMS‑Friendly Bin Handling

When a valid concession exists:

• Warehouse users can move from blocked bins to approved bins

• Handheld users simply scan the correct bin

• All validation happens in real time

This ensures speed on the warehouse floor without compromising quality rules.

The Result: Robust Quality Control Without Slowing Operations

The solution delivered:

✅ Zero accidental shipment of out‑of‑spec stock✅ Clear audit trail for compliance and traceability✅ Reduced warehouse errors under pressure✅ Seamless Advanced WMS integration✅ A system that enforces quality rules automatically

The customer gained confidence that Business Central was actively protecting them, not relying on human intervention.

Why This Matters for Manufacturing Businesses

This case demonstrates how Business Central can be extended to properly support:

• Quality management processes

• Engineering deviations and concessions

• Regulated and traceable manufacturing environments

• High‑volume warehouse operations

It is particularly valuable for:

• Precision engineering

• Food and FMCG manufacturing

• Regulated industries

• Any business using bin‑controlled warehouses

Delivered by Business Central Manufacturing Specialists

This was not a generic add‑on.

The extension was built by Business Central manufacturing consultants with deep experience in:

• Production and quality processes

• Advanced Warehouse Management

• WMS and handheld device workflows

• Real‑world manufacturing operations

Need a Similar Solution?

If your Business Central system needs to support quality control, concessions, engineering change, or warehouse rule enforcement, we design and deliver bespoke extensions that reflect how your business actually operates.

📩 Contact us to discuss custom Business Central development for manufacturing and warehousing.