Grades represent configurable inspection states such as Incomplete, Pass, and Fail.

In most implementations, there is only a single passing grade and a single failing grade.

In these scenarios, you only define the pass condition directly on the field card or on the quality inspection template line. Any result that does not meet the pass condition automatically becomes a failure. Most users do not need to configure detailed grade conditions.

Grade conditions are primarily intended for more advanced scenarios where there are multiple passing or failing grades, such as:

• Pass / Pass With Warning / Fail
• Minor Fail / Major Fail / Critical Fail
• Conditional Pass / Pass / Fail
• Pass / Critical Failure / Major Failure / Minor Failure

Acceptable values and grading defaults can be configured at both the field level and the template level. When a field is added to a template, the default grade conditions are copied from the field into the template.

If template-level grade conditions are defined, they replace the acceptable values configuration on the quality inspection template line.

Upgrades and migrations from earlier versions of Quality Inspector typically include the default grades of Incomplete, Pass, and Fail. Additional grades can be added as needed.

Grade conditions are copied from:

• the default grade setup into the field,
• the field into the template,
• and the template into the test.

Because the conditions are copied into the test itself, historical inspections retain the grading logic that existed at the time the test was created, even if the grading rules later change.

Upgrades and migrations from earlier Quality Inspection module in Shop Floor Insight have the default grades of Incomplete, Pass, and Fail. You can add additional grades as needed.

Configure Available Grades

Before grades can be configured on a template, you must create them. A default install has three available grades (Incomplete, Fail, and Pass). If you require multiple pass codes, or multiple failure codes, or have some mixed states, configure additional grades here.

If you do not need multiple passing or multiple failing grades (this is most situations) then you do not need to configure multiple grade conditions.

You can see detailed grade conditions when you have multiple pass and multiple failing conditions by

If you do need to access Grade Conditions, navigate to Quality Inspector Setup. In the Default section, under Visibility Setting, locate the Grade Visibility field and set it to Show All Details.

Navigate to Quality Inspection Grades in Business Central and view the available grades, from the lowest priority to the highest priority.

The default grades, and what is found on typical installs, is configured similar to the following:

Set Copy Behavior to Automatically Copy the Grade when you want the grade to be copied to a template by default. To decommission a grade, set the Copy Behavior to Do Not Copy. You can use Do Not Copy to have multiple pass/fail/gray state grades but only for some templates or some fields that you choose. In this scenario, have the default set to Do Not Copy, and manually add the grades at the field level or the template level.

The default number and default text condition are the default condition configurations copied to a template when the grade is applied to a template.

To have an Incomplete or In Progress grade, ensure there is a grade with a priority of 0, and set its default number and default text conditions blank.

Following the Incomplete or In Progress grades, have the grades that represent the Failure or Negative scenarios. The number you use for the priority must be larger than the incomplete related grades.

Following the failure grades, have the Positive or Pass related grades. These grades must be evaluated last and must be the highest numbers.

Configure grade conditions on a field

1. Navigate to the Quality Inspector Fields in Business Central.
2. Set the available fields.
3. Select the required field and expand Grade Conditions at the bottom.
4. Select a Grade Code and define the condition:

The first time you configure the field, the default grades are added to the field with the default conditions. You can manually add any grades that may not be defaulted for all others, or manually remove grades that do not apply to any given field.

Grade conditions that indicate Not Done, Incomplete, or In Progress are evaluated first with no conditions, meaning any value (including blank) is the default.

Failure conditions are those where the value is not defined but unacceptable. Define a pass condition and let the failure condition be Not Blank.

Configure grade conditions on a field example

The configuration for room temperature, where the goal is to flag the field as Pass when the temperature is between 20 and 24 degrees Celsius.

We have defined the In Progress condition as blank and evaluating first, meaning that the default condition would be In Progress.

We have defined the Failure condition as Not Zero/Not Blank; any value that is not blank and not zero fails (unless it is between 20 and 24 for the Pass condition).

We have defined the Pass Condition as 20..24; this evaluates last and indicates a pass state if the value is between 20 and 24.

Test the conditions of these grades by using Value to Test and input a value to test (e.g., blank evaluates to In Progress; 3 evaluates to Fail; 30 evaluates to Fail; 22 evaluates to Pass).

Configure grade conditions on a template

When you add a field to a template, the conditions of the field are copied. The default field grade conditions can be altered if they are different when you use the field.

Configure grade conditions on a template:

1. Navigate to Quality Inspection Templates in Business Central.
2. Edit the template with the required field grade.
3. Select the required field.
4. Locate and modify the pass condition.

Grade Visibility and Promoting Grades

The conditions to indicate what is characterized as good need to be more prominent; Fail conditions and In Progress conditions do not need to be prominent. Altering the conditions can be done with Grade Visibility.

Configure Grade Visibility:

1. Navigate to Quality Inspection Grades in Business Central and select Edit List.
2. Select Promoted under Grade Visibility for PASS.

When a grade is promoted, it adds additional visibility on the field configuration, template configuration, test, and the sample COA report.

When the Pass grade is promoted in the field configuration, an additional column is available to configure the Pass conditions in the field template. The first 10 promoted actions are shown, in descending order of grade priority.

Similar to the Quality Field templates, the Quality Inspection template has the promoted grade editable in-line; this is similar to how you could configure in-line the Acceptable Values in the older version on the Quality Inspection template line. The first 10 promoted actions are shown, in descending order of grade priority.

When you enter a Quality Inspection test in Business Central, the promoted grades are available in-line for easy reference, and the first 10 promoted conditions are shown.

The example Certificate of Analysis report displays the first promoted action.

Grade based Lot / Serial / Package Blocking

You configure each grade to also prevent certain transactions to allow fine-grained control of what document transactions are allowed for a specific state.

These settings are commonly used to prevent inventory from moving to the next business process until a required quality step has been completed.

Because the restrictions are configured per grade, you can create highly specific workflows such as:

• Allowing internal warehouse movement but preventing shipment to customers
• Allowing receipt into quarantine inventory but preventing production consumption
• Allowing testing operations but preventing transfer to another location
• Allowing rework processing while preventing sales shipment

You must use lot tracking, or serial tracking, or package tracking, or some combination of lot, serial, and package tracking to leverage this feature.

Available settings are:

Setting	Description
Lot Allow Sales	Specifies whether a test for a lot/serial/package with this grade allows sales transactions.
Lot Allow Sales Return	Specifies whether a test for a lot/serial/package with this grade allows sales return (receipt) transactions. Allow Sales Return controls receiving returned tracked inventory. It does not represent a general block on posting the Invoice portion of a Sales Return Order. When the grade is configured as Allow Finished Only, blocks the corresponding tracked inventory transaction while the inspection remains unfinished.
Lot Allow Sales Credit Memo	Specifies whether a test for a lot/serial/package with this grade allows sales credit memo transactions.
Lot Allow Sales Release	Specifies whether a test for a lot/serial/package with this grade allows the sales order to be released.
Allow Out. Sales Item Tracking	Specifies whether a test for a lot/serial/package with this grade allows selecting the tracking number in the Item Tracking Lines page for a sales line. If not allowed, the system will ask the user to confirm that they want to select the tracking number.
Lot Allow Purchase	Specifies whether a test for a lot/serial/package with this grade allows Purchase transactions.
Lot Allow Transfer	Specifies whether a test for a lot/serial/package with this grade allows Transfer transactions.
Allow Out. Tran. Item Tracking	Specifies whether a test for a lot/serial/package with this grade allows selecting the tracking number in the Item Tracking Lines page for a transfer line. If not allowed, the system will ask the user to confirm that they want to select the tracking number.
Lot Allow Consumption	Specifies whether a test for a lot/serial/package with this grade allows Consumption transactions.
Lot Allow Output	Specifies whether a test for a lot/serial/package with this grade allows Output transactions.
Lot Allow Assembly Consumption	Specifies whether a test for a lot/serial/package with this grade allows Assembly Consumption transactions.
Lot Allow Assembly Output	Specifies whether a test for a lot/serial/package with this grade allows Assembly Output transactions.
Lot Allow Invt. Movement	Specifies whether a test for a lot/serial/package with this grade allows Inventory Movement transactions.
Lot Allow Invt. Pick	Specifies whether a test for a lot/serial/package with this grade allows Inventory Pick transactions.
Lot Allow Invt. Put-Away	Specifies whether a test for a lot/serial/package with this grade allows Inventory Put-Away transactions.
Lot Allow Movement	Specifies whether a test for a lot/serial/package with this grade allows Warehouse Movement transactions.
Lot Allow Pick	Specifies whether a test for a lot/serial/package with this grade allows Pick transactions.
Lot Allow Put-Away	Specifies whether a test for a lot/serial/package with this grade allows Put-Away transactions.

Allow Finished Only

For transaction restriction fields such as Allow Sales Return, Allow Sales Shipping, Allow Purchase, and similar settings, the Allow Finished Only option allows the transaction only when the applicable Quality Inspection Test has been finished. If a matching inspection is still open or in progress, the transaction is blocked.

This option is useful when inventory should remain restricted while an inspection is being completed, but can be used normally once the inspection has reached a finished status. The restriction is evaluated using the lot, serial, or package tracking associated with the transaction, so these grade-based restrictions apply only to tracked items.

Example: Prevent Shipping Until a Pre-Shipment Checklist is Completed

A company performs a final packaging and documentation inspection before shipment.

The company configures the grades as follows:

Grade	Lot Allow Sales	Lot Allow Pick
INPROGRESS	No	No
FAIL	No	No
PASS	Yes	Yes

In this scenario:

• Inventory can exist in the warehouse while inspections are being performed
• Inventory with an INPROGRESS grade cannot be picked or shipped
• Inventory with a FAIL grade remains blocked from shipment
• Inventory can only be shipped after the inspection is completed with a PASS grade

This helps prevent accidental shipment before required final checks are completed.

Example: Prevent Warehouse Movement Until Testing Passes

A manufacturer receives raw materials that must pass laboratory testing before they can move into usable inventory locations.

The company configures:

Grade	Lot Allow Movement	Lot Allow Transfer	Lot Allow Consumption
INPROGRESS	No	No	No
FAIL	No	No	No
PASS	Yes	Yes	Yes

In this scenario:

• Received inventory remains quarantined while testing is in progress
• Warehouse movement and transfer transactions are blocked during testing
• Production cannot consume the inventory until testing passes
• Inventory can only move into normal operations after the inspection receives a PASS grade

This helps prevent untested materials from accidentally entering production.

Example: Allow Production Rework but Prevent Customer Shipment

A manufacturer may allow failed inventory to continue through internal rework processes while still preventing shipment to customers.

The company configures:

Grade	Lot Allow Output	Lot Allow Consumption	Lot Allow Sales
INPROGRESS	Yes	Yes	No
FAIL	Yes	Yes	No
PASS	Yes	Yes	Yes

In this scenario:

• Inventory with an INPROGRESS grade can continue through internal production processes
• Inventory with a FAIL grade can still be consumed or reworked internally
• Inventory with a FAIL grade cannot be sold or shipped to customers
• Inventory can only be sold after a successful inspection resulting in a PASS grade

This allows controlled rework processing without risking accidental shipment of failed inventory.

Example: Soft Warnings Versus Hard Restrictions

Some settings, such as:

• Allow Out. Sales Item Tracking
• Allow Out. Tran. Item Tracking

do not completely block the transaction.

Instead, they display a confirmation warning when users select the tracked inventory in Item Tracking Lines.

This is useful when:

• Supervisors may occasionally need to override the restriction
• The company wants visibility into questionable inventory usage
• The restriction should function as a warning rather than a hard stop

For example, a company may allow emergency shipment of inventory with an INPROGRESS or FAIL grade, but require the user to explicitly confirm the selection.

Common Workflow Pattern

A common configuration using the default grades is:

Grade	Typical Purpose
INPROGRESS	Testing or inspection is not yet complete
FAIL	Inventory failed inspection or is quarantined
PASS	Inventory passed inspection and is approved

Each grade can allow or block different operational transactions depending on the company’s quality control requirements.