Automatic Bin Location Allocation in Receipts 
To facilitate bin location allocation during inventory receipts, SAP Business One makes it possible to automate the process of allocating received items to bin locations.
The automatic bin location allocation process can take place with all documents that involve the receiving of items. For a list of receipt documents, see Receipts to Bin Locations.
Note
The automatic bin location allocation rules in the following sections are the general rules applied to all receipt documents.
For each individual receipt document, SAP Business One also lets you assign a specific bin location to store the received items. You can specify the bin location in the Bin Location field in the corresponding Form Settings window.
Once you assign a bin location to a receipt document using the form settings, this bin location will have priority over the receiving bin locations or default bin locations mentioned in the following automatic allocation processes. On the other hand, if you do not assign a bin location using the form settings, the following processes will take place in the receipt document as described.
Automatic Bin Location Allocation for Goods Received Externally
When you receive items purchased from your vendors or goods returned by your customers, SAP Business One can place these items in different bin locations, depending on your warehouse structures, as follows:
Warehouse with Receiving Bin Locations
SAP Business One can automatically place the received items in the receiving bin locations of your warehouse. You can then manually create an inventory transfer to move the items to the storage bin locations after conducting a quality check.
NoteTo facilitate the inventory transfer from receiving bin locations to storage bin locations, SAP Business One provides you with the Clear Bin Locations function in the following two reports:
End of the note.Automatic allocation of receiving bin locations takes place when the following conditions are met:
You have enabled receiving bin locations for your warehouse.
To do so, select the Enable Receiving Bin Locations checkbox on the Bin Locations tab of the Warehouses - Setup window.
There are active empty receiving bin locations in your warehouse.
To indicate a bin location is a receiving bin location, in the Bin Location Master Data window, select the Receiving Bin Location checkbox.
If you have enabled receiving bin locations for your warehouse but there is no active receiving bin location available, SAP Business One does not perform the automatic bin location allocation. You must manually select the bin locations to which you assign the received items.
When you have more than one receiving bin location in your warehouse, SAP Business One allocates the items to these bin locations according to the order you specified in the Receive Items By field on the Bin Locations tab of the Warehouses - Setup window.
If the quantity of items you receive exceeds the maximum storage limit of a receiving bin location, SAP Business One fills this receiving bin location to the maximum and then assigns the remaining items to the next empty bin location in the receiving bin location sequence.
NoteAutomatic allocation does not take place until you add the receipt document. Only then can the system accurately check the availability and storage status of the receiving bin locations, and make sure the allocation in this document does not conflict with any others.
If you have already manually allocated items to bin locations, either fully or partially, before adding the document, SAP Business One does not reallocate these items to receiving bin locations.
End of the note.The following diagram shows the receipts of purchased or returned items to warehouses with receiving bin locations:
Warehouse Without Receiving Bin Locations
SAP Business One can automatically place the received items in the default bin locations if the following conditions are met:
You have not enabled receiving bin locations for your warehouse.
You have specified a default bin location for the received item on the warehouse, item group or item level.
If you have specified bin locations on all three levels, the default bin location on the item level has the highest priority. That is, SAP Business One places the received item in the default bin location you specified in the item master data.
For more information, see Bin Locations.
The default bin location is active.
To indicate a bin location is active, leave the Inactive checkbox in the Bin Location Master Data window unselected.
NoteIf you have enforced the use of the default bin location for an item, the item must be allocated to the default bin location. Even if you have specified a different bin location in the Form Settings window, SAP Business One still allocates the item to the default bin location. In addition, you cannot manually allocate the item to any other bin locations.
End of the note.When there is no active default bin location available, SAP Business One does not perform automatic bin location allocation. You must manually select the bin locations to which you assign the received items.
If you have specified a maximum storage limit for the default bin location, the limit does not have any effect on the receipt of items in this bin location. That is, even if the quantity of items you received exceeds the maximum limit, SAP Business One still allocates these items to the default bin location.
NoteGenerally, automatic allocation takes place immediately after you specify the item, item quantity, and warehouse in the receipt document row.
For serial and batch items under the management method On Every Transaction, automatic allocation takes place after you specify the batch or serial information.
End of the note.The following diagram shows the receipt of purchased or returned items to warehouses without receiving bin locations:
Automatic Bin Location Allocation for Goods Received Internally
When you receive items internally, for example, items transferred from one warehouse to another or finished products collected from factories, SAP Business One can place these items directly in the default bin locations regardless of whether your warehouse has receiving bin locations or not. Automatic allocation takes place when the following conditions are met:
You have specified a default bin location for the received item on the warehouse, item group, or item level.
If you have specified bin locations on all three levels, the default bin location on the item level has the highest priority. That is, SAP Business One places the received item in the default bin location you specified in the item master data.
For more information, see Bin Locations.
The default bin location is active.
To indicate a bin location is active, leave the Inactive checkbox in the Bin Location Master Data window unselected.
Note
If you have enforced the use of the default bin location, the item must be allocated to the default bin location. In this case, you cannot manually allocate the item to any other bin locations.
When there is no active default bin location available, SAP Business One does not perform automatic bin location allocation. You must manually select the bin locations to which you assign the received items.
If you have specified a maximum storage limit for the default bin location, the limit does not have any effect on the receipt of items in this bin location. That is, even if the quantity of items you received exceeds the maximum limit, SAP Business One still allocates these items to the default bin location.
Note
Generally, automatic allocation takes place immediately after you specify the item, item quantity, and warehouse in the receipt document row.
For serial and batch items under the management method On Every Transaction, automatic allocation takes place after you specify the batch or serial information.
The following diagram shows the receipt of transferred or produced items to warehouses:
To view the automatic allocation details, open the Bin Location Allocation - Receipt window from the receipt document.