This article contains a compilation of best practices and things to know about Bin Management, which can help improve inventory management and accuracy. Very often, one thing that is needed is to improve bin management in NetSuite.
This information is currently tailored to the use of the following features:
When you use the Multi-Location Inventory and Advanced Bin / Numbered Inventory Management features, note the following. You can enable bin management by location by setting only specific locations where bins will be used. You are not required to use bins at every location.
Setting a location to use bins is done on the Location record in the Use Bins checkbox.
Need a refresher on how "Location" and other key terms are defined in NetSuite, or how the Location records are designed to be leveraged? Check out the training article Classes, Departments, Subsidiaries, Locations, Oh my!
Bin record numbers are associated with items and included on receiving and fulfilling transactions to keep track of inventory for each bin. Your bin numbers should correspond with actual locations in your warehouse so that your team knows where to find the associated items.
To create bins, go to Lists > Accounting > Bins > New.
Need to make an inventory transfer between locations? Check out this tutorial on how to Replenish a Location via Inventory Transfer in NetSuite!
The Bin Management and Advanced Bin / Numbered Inventory Management features require that each item record is marked to use bins.
You can use a default bin number for non-bin items. (This excludes item types such as service and non-inventory items for which you cannot use bins).
To select an item to use bins:
It is possible to establish controls to ensure newly created items are set to use bins. A simple workflow can be used to default the Use Bins checkbox to check and disable users from editing it.
When using the Advanced Bin / Numbered Inventory Management feature, you are not required to associate bins with items before using bins on transactions.
Need a refresher on how to create a workflow in NetSuite? Check out this tutorial article on How to Create a NetSuite Workflow Using a Saved Search condition!
You can assign bins to items on the item record by going to Lists > Accounting > Items and editing the desired item.
You can also assign bins in bulk; depending on your current situation, you may want to use one of the methods below.
Want to schedule inventory updates such as bin associations in NetSuite? Prepare your inventory data in a CSV file and schedule updates to run in NetSuite at a specific time that works best for your business. Check out this CSV Import Scheduler for NetSuite!
To set bin preferences, go to Setup > Accounting > Accounting Preferences > Items >Transactions subtab.
Use Preferred Bin on Item Receipts – this is a system-wide setting.
Require Bins on All Transactions Except Item Receipts – this is a system-wide setting.
Note: Editing a previously existing sale transaction that has a bin item but no specified bin requires bin specification on the transaction.
By default, NetSuite always requires bin specification for any transaction where inventory is reduced.
Want to learn more abotu NetSuite Inventory Management preferences? Check out this trianing article Guide to NetSuite Inventory Management Preferences
Remember that your NetSuite system will only work as well as your warehouse processes work. Nine times out of ten, inventory management issues discovered in the system are caused by flawed warehouse processes outside of the system; work with your warehouse managers to identify pain points or bottlenecks within these processes. Giving your management personnel additional tools to increase their visibility within the system will allow them to identify processes that may need to be adjusted.
1. The inbound manager should be in charge of ensuring that all newly created items have assigned bins; you can add placeholder bins for any items that may not use bins.
2. The inbound manager should ensure that the Bin Putaway Worksheet is empty at the end of every day to ensure accuracy in inventory levels and location.
3. If you become aware of inventory discrepancies being caused by accounting during pricing adjustments or other processes, you may want to create a bin specifically for their use. Inventory managers can then monitor inventory levels within this bin to ensure no mistakes were made during accounting or sales processes.
Working to resolve inventory discrepancies? You may find the tutorial article on Correcting On-hand Inventory in Multiple Bins in NetSuite to be helpful.
Can we require bins to be selected on transactions (including item receipts)?
You can require bins on transactions (see NetSuite Bin Preferences); however, you cannot require bins on item receipts.
Does unchecking Use Bins on item records cause the connection of previously associated bin records to be lost?
Yes, unchecking Use Bins on item records causes the connection of previously associated bin records to be lost. You should restrict users' ability to uncheck this field so that it does not happen again. This can be done using the same workflow that would require Use Bins on new items.
Will ensuring the correct use of bins improve our cycle counting issues?
Absolutely! Following bin best practices will improve issues with cycle counting as it will greatly increase the accuracy of the inventory in the system. Remember that ensuring best practices are followed in the warehouse is crucial to maximizing inventory accuracy.
Will bins be required on drop-ship POs?
Inventory detail is not required on native drop-ship POs as long as the items are not received into inventory. Dropship order items do not commit and inventory detail is not required for fulfillment of these orders.
Check out NetSuite Physical Inventory Count, an Inventory Management Solution for NetSuite ERP!
While inventory counting functionality, such as that outlined in this article, is natively available in NetSuite, there are some limitations to what it can do. NetSuite Physical Inventory Count makes it easier to count regularly and flexibly in a real-world scenario, whether you have warehouses, storefronts, or both!
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