Overview

In Commerce 365 for Magento, you can control how inventory quantities are synchronized between Microsoft Dynamics 365 Business Central  and Magento.


This is configured on the Setup → Catalog → Inventory section, via the Synchronization Method field.

You can select between two methods: Stock API and Multi Source Inventory API. Both options are supported.


1. Magento Inventory Models

1.1 Stock Item (Single-Source Inventory)

In Magento’s legacy inventory model (sometimes referred to as “Single Source Inventory”), all stock is managed via one global stock value per product (often the “Default Source”).

Use case:

  • If your Magento setup uses only one warehouse or location.

  • If you use Magento without the MSI (Multi Source Inventory) module.

  • If you want a simpler inventory synchronization model.

How Commerce 365 handles it:
When you select Stock API in the Synchronization Method:

  • Commerce 365 sends the aggregated on-hand quantity from BC (typically the sum of locations) to Magento’s Stock API endpoint.

  • Magento receives one quantity value per SKU (or item).

  • Inventory is then displayed in Magento as a single stock value.

Benefits:

  • Straightforward setup.

  • Compatible for Magento installations without MSI.

  • Fewer moving parts to manage.

1.2 Multi Source Inventory (MSI)

Magento’s MSI model allows management of inventory across multiple sources (warehouse locations, stores, drop-ship sites, etc.). Commerce 365 supports this.

Use case:

  • When you operate multiple physical or virtual warehouses or fulfilment sources.

  • When you want to track inventory per location, and use Magento MSI for advanced fulfilment.

  • When BC locations map to Magento sources.

How Commerce 365 handles it:
When you select Multi Source Inventory API:

  • Commerce 365 synchronizes inventory per Location in BC to the corresponding Source in Magento.

  • The separate source-stock quantities are sent via Magento’s MSI API endpoints.

  • Magento can then manage reservations, allocations, and fulfilment by source.

Benefits:

  • Better alignment with multi-warehouse operations.

  • More accurate inventory visibility per location.

  • Enables Magento’s source-based fulfilment and advanced logic.

2. Choosing the Synchronization Method

On the Setup page of Commerce 365 for Magento (in BC) you will find:

  • Synchronization Method: choose Stock API or Multi Source Inventory API.

  • If you pick Stock API, the system uses the legacy stock item approach.

  • If you pick Multi Source Inventory API, the system uses MSI with source-level synchronization.

Recommendation guidelines:

  • If you only have a single warehouse and you do not use Magento’s MSI, select Stock API.

  • If you do use MSI in Magento (multiple sources/warehouses) then select Multi Source Inventory API.

  • Check Magento under Stores → Sources — if there is only “Default Source” and no other active sources, Stock API is likely sufficient.

  • If there are multiple sources defined and you want to reflect BC location-level stock, choose Multi Source.

Tip

If you are unsure:

  • Open Magento Admin → Stores → Sources.

    • If you only see one source (often “Default Source”) and no additional ones, then Stock API is probably appropriate.

    • If you see multiple sources mapped to different physical locations (warehouses, stores, drop-ship), then go with Multi Source Inventory API.

  • Make sure your BC Locations are mapped appropriately to Magento Sources when using MSI mode.