Inventory statuses
Inventory Statuses
Control the availability and use of inventory in Dynamics 365 Supply Chain Management
1. What Is an Inventory Status?
An inventory status is a label you assign to inventory to identify its state — such as Available, Blocked, or Quality inspection. The status determines whether inventory can be used, reserved, or moved.
Think of it like traffic lights on your inventory
Green means "use it", yellow means "check first", red means "do not touch". Every unit in the warehouse carries one of these signals.
Common examples of inventory statuses
Available
Usable inventory for any process.
Blocked
Not available for use or movement.
Quality Inspection
Under a quality check.
Repair
Under repair or rework.
On Hold
Temporarily restricted.
2. Key Concepts
Inventory Status ID
A unique code that identifies the status.
Description
A readable name that explains what the status represents.
Status Type
Determines how the status affects inventory usage (see Section 3).
Restrictions
Define which processes this inventory can or cannot be used in.
3. Status Types and Their Behavior
The Status type is the most important attribute — it decides whether inventory can be reserved, issued, or received.
| Status Type | Description | Affects On-hand | Allows Reservation (Sales) | Allows Reservation (Purchase) | Allows Issue | Allows Receipt | Typical Use |
|---|---|---|---|---|---|---|---|
| Available | Inventory is available for all processes. | Yes | Yes | Yes | Yes | Yes | Normal usable inventory. |
| Blocked | Inventory is not available for use or movement. | No | No | No | No | Yes | Damaged, expired, quarantine, legal hold. |
| Quality order processing | Inventory is available but restricted for quality order processing. | Yes | Yes* | Yes* | Yes | Yes | Quality check required before shipment. |
| In use | Inventory is currently being used within a process. | No* | No* | No* | No | No | Components issued to production. |
| On hold | Inventory is temporarily restricted. | No | No | No | No | Yes | Pending decision or approval. |
* Quality order processing and In use can allow reservations depending on the configuration.
4. How Inventory Statuses Work
- 1. Assign Status — Assign an inventory status to on-hand inventory.
- 2. System Checks — The system checks status rules during every transaction.
- 3. Control Usage — Based on the status type, inventory may be allowed or blocked for the process.
- 4. Business Impact — Ensures accurate inventory visibility, quality control, and compliance.
5. Where Inventory Statuses Are Used
Sales
Control which inventory can be promised and shipped.
Purchasing
Control which inventory can be received or returned.
Production
Control components for consumption in production.
Transfer
Control inventory that can be shipped between warehouses.
Quality Management
Track and manage inventory under quality inspection.
6. Example Scenario
A real-world lifecycle of a batch of goods flowing through the warehouse:
Status: Available → Under Quality Inspection
Status: Quality order processing → Failed Inspection
Status: Blocked → Repaired & Approved
Status: Available
7. Best Practices
- Use clear and meaningful status names that reflect real business states.
- Keep the number of statuses simple and easy to manage.
- Review and update status restrictions regularly.
- Use statuses consistently across all sites and organizations.
- Combine inventory status with other inventory dimensions (batch, location) for finer control.
8. Benefits
Better Visibility
Know the exact state of your inventory at any time.
Quality Control
Ensure only quality inventory is used and sold.
Risk Reduction
Prevent shipping damaged or expired items.
Operational Efficiency
Streamline processes with automated status rules.
Compliance
Meet regulatory and business policy requirements.
9. Important Limitation
Key Takeaway
Inventory statuses give you control over your inventory so you can use the right items, in the right condition, for the right process.