Set Up A Warehouse - Commerce | Dynamics 365 - Microsoft Learn

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This article describes how to set up a warehouse to be used with a new channel in Microsoft Dynamics 365 Commerce.

Each Commerce channel requires a configured warehouse to be associated with it. The following procedures provide the minimum configuration required to set up a warehouse for a Commerce channel. For more information regarding warehouse setup, please see the Warehouse management overview.

Configure a warehouse site

Before setting up a warehouse, you need to configure a warehouse site.

To configure a warehouse site, follow these steps:

1. In the navigation pane, go to Modules > Retail and commerce > Channel setup > Sites.
2. On the action pane, select New.
3. In the Site field, enter a value.
4. In the Name field, enter a value.
5. In the General section, set the appropriate Time zone.
6. In the Addresses section, enter an address.
7. On the action pane, select Save.

The following image shows an example warehouse site.

Set up a warehouse

To set up a warehouse, follow these steps:

1. In the navigation pane, go to Modules > Retail and commerce > Channel setup > Warehouses.
2. On the action pane, select New.
3. In the Warehouse field, enter a value. If this is a 1:1 mapping to a store, consider using the store name or the name of a regional distribution center.
4. In the Name field, enter a value.
5. In the Site drop-down list, select the warehouse site created previously.
6. In the Type field, select Default.
   • If you want to set a Quarantine warehouse, first you'll need to follow these steps to create an additional warehouse where the Type is set to Quarantine.
   • If you want to set a Transit warehouse, first you'll need to follow these steps to create an additional warehouse where the Type is set to Transit.
7. On the action pane, select Save.

Set up inventory aisles

To set up inventory aisles, follow these steps:

1. In the navigation pane, go to Modules > Retail and commerce > Channel setup > Location setup > Inventory aisles.
2. On the action pane, select New.
3. In the Warehouse drop-down list, select the warehouse created previously.
4. In the Aisle field, enter a name (for example, "Def").
5. In the Name field, enter a name (for example, "Default aisle").
6. On the action pane, select Save.

Set up warehouse inventory locations

To set up warehouse inventory locations for standard, damaged, and returned inventory, follow these steps:

1. In the navigation pane, go to Modules > Retail and commerce > Channel setup > Warehouses.
2. Select the warehouse you created previously.
3. On the action pane, select Edit.
4. On the action pane, select Warehouse, and then select Inventory location.
5. On the action pane, select New. The Warehouse drop-down list should default to your new warehouse.
   1. In the Aisle box, enter the name of the aisle you specified earlier.
   2. Set Manual update to Yes
   3. In the Location box, enter the name of the warehouse.
   4. On the action pane, select Save.
6. On the action pane, select New. The Warehouse drop-down list should default to your new warehouse.
   1. In the Aisle box, enter the name of the aisle you specified earlier.
   2. Set Manual update to Yes
   3. In the Location box, enter "Damaged".
   4. On the action pane, select Save.
7. On the action pane, select New. The Warehouse drop-down list should default to your new warehouse.
   1. In the Aisle box, enter the name of the aisle you specified earlier.
   2. Set Manual update to Yes
   3. In the Location box, enter "Returns".
   4. On the action pane, select Save.

The following image shows a San Francisco warehouse inventory location setup.

Complete warehouse setup

To complete warehouse setup, follow these steps:

1. In the navigation pane, go to Modules > Retail and commerce > Channel setup > Warehouses.
2. Select the warehouse you previously created.
3. On the action pane, select Edit.
4. Under Inventory and warehouse management:
   1. Set Default receipt location to the default location created above.
   2. Select Default issue location to the default location created above.
5. Under the Addresses section, enter a warehouse address.
6. Under the Retail section:
   1. In the Default return location box, enter the returns location created previously.
   2. Set Store to Yes.
   3. Set Weight to 1.00.
   4. In the Storage Dimensions box, enter the default location created previously.
7. Under the Warehouse section, set Physical negative inventory to Yes.
8. On the action pane, select Save.

The following image shows details for a configured warehouse.

Additional resources

Warehouse management overview

Channels overview

Channel setup prerequisites

Set up a retail channel

Set up an online channel

Set up a call center channel

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• Last updated on 2025-07-11

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