If your warehouse runs on Zebra printers and ZPL labels, you already know the drill: labels need to match your location scheme, and generic defaults rarely get you there. The good news is that Dynamics 365 Finance & Supply Chain Management gives you full control over custom label creation and printing — no middleware, no workarounds. Here's exactly how to do it.
Step 1: Navigate to Label Layout Setup
Start in Warehouse Management. From there, go to Document Routing, then select Label Layout. When the screen loads, it will default to the container label type — change this to Custom Label. This is where all custom label definitions live, regardless of what table or object you're printing from.
Step 2: Create a New Label Layout
In the action pane, click New. For this example, we're creating a location label — so name it something descriptive like "Location Label" so it's easy to identify later. Then configure these key fields:
- Definition Type: Set this to the object you're printing from — in this case, Locations.
- Label Type: Select ZPL to generate Zebra-compatible output.
- Data Source: Choose Custom Locations. This tells the system which table to pull field data from when the label is generated.
Step 3: Build the ZPL Template
Hit Save in the action pane first — the record needs to be saved before the template editor becomes editable. Once it is, paste in your ZPL code. ZPL is a straightforward text-based language, and most label designs can be sourced from your printer vendor or existing templates your team already uses.
The critical piece is getting the right dynamic field into the template. For a location label, that's the Location ID. To insert it, click on the Location field in the data source panel, then use the Insert at End of Text button at the top of the editor. D365 will drop the correct field placeholder into the ZPL code — something along the lines of the WMS Location ID reference. That placeholder tells the system to pull the actual location value at print time.
Verify the inserted field matches your ZPL template's expected format, remove any duplicate references, and hit Save again. Your label layout is ready.
Step 4: Print the Label from the Location Table
Now navigate to Warehouse Management > Setup > Warehouse > Locations. Find the specific location you want to print a label for and select it. In the action pane, click Options, then Custom Labels.
A dialog will appear. Fill in three fields:
- Print: Select Locations.
- Label Layout: Choose the layout you just created — "Location Label" in this example.
- Printer Name: Select your ZPL-capable printer from the list.
Click OK. D365 will confirm that one label was sent to the printer, and your ZPL label — populated with the correct location ID — will print. That's the full process.
A Note on Flexibility
The pattern shown here applies to location labels, but the same framework works for virtually any table in D365. As long as the table exists in the system, you can build a custom label layout against it. Item labels, license plate labels, shipment labels — the process is the same: define the layout, select your data source, insert your dynamic fields, and print from the relevant record.
This kind of flexibility matters in warehouse operations where labeling requirements shift with facility changes, new client requirements, or regulatory updates. Being able to spin up a new label definition in-system — without a developer or third-party tool — is the kind of operational control that makes a difference at scale.
Watch the Full Walkthrough
If you'd like to see these steps in action, our F&SCM team recorded a short video walking through the entire process end to end — from label layout creation through confirmed print output. It covers the exact clicks, the ZPL editor, the field insertion, and the print confirmation in under three minutes.
Watch: How to Create and Print Custom ZPL Labels in Dynamics 365 Finance & Supply Chain Management
Western Computer has been implementing Microsoft Dynamics 365 for distributors, manufacturers, and supply chain-intensive businesses for 35+ years — with 1,250+ implementations behind us. If you're working through warehouse configuration challenges or looking to get more out of F&SCM, we're happy to dig in.
