Being able to handle consignment inventory in Microsoft Dynamics NAV is a common requirement. There are four scenarios of consignment inventory that I frequently bump into; 1. Inventory at a Customer 2. Inventory at a Vendor 3. Customer Owned Inventory 4. Vendor Owned Inventory Some may argue that case 2 and 3 is not consignment, and they might be right, but nevertheless they are cases that needs to be handled and to me the overall concept is closely related to consignment inventory and therefor I included them here. Case 2 and 3 are typically found in relation to subcontracting or...
There are four ways to process shipments of inventory in Microsoft Dynamics NAV. Which way to choose depends on the business requirements and what processes that are most suitable. I typically discuss the different options early in the analysis phase of an implementation to establish the preferred method as soon as possible (if it is not obvious which one to apply that is). It is important to get it right early since the procedures, work instructions, potentially modifications and printouts all will depend on the method chosen (and you don’t want to change your mind half way through the project)....
Implementing MRP (material requirements planning) successfully in Microsoft Dynamics NAV is one of the more complex tasks. There are lots of moving parts and to make it work in an efficient way you not only need to know Dynamics NAV and the theories behind MRP but also the product structures and how the business wants to operate. This is my guide to how to make it work, it is based on my experience and how I normally approach MRP. It does not guide or dictate how you should setup NAV, just some guidance on how to get there (I guess...
To allocate the total costs posted against a production order towards multiple outputs is a bit tricky in standard Microsoft Dynamics NAV, you more or less have to manually separate the different costs and post them against each of the production order lines (this since the cost calculations in Dynamics NAV is per production order line). For material and capacity costs this involves dividing the quantities consumed and times spent between the production order lines and then post them individually against each of the lines. And for subcontracting costs it is more or less impossible (although nothing is impossible in...
Microsoft Dynamics NAV has multiple ways in which you can handle scrap in the production. There are scrap related to an operation in the routing, there are scrap related to individual components and there are scrap related to the product being produced. Just like any other functionality, it is important to know all the options when configuring and implementing Dynamics NAV. The scrap related setup has an impact on both the material and capacity planning. If you are using the standard costing method to value your inventory then the scrap related setup also has an impact on the cost roll-up....
A common request is to activate item tracking (lot numbers and/or serials numbers) for items that already have transactions (item ledger entries). In Microsoft Dynamics NAV you can’t really do this without going ‘behind the scenes’ and tweaking the data. What I have done a couple of times is to change the check on the item tracking code to only check for open item ledger entries. This way you can adjust the inventory out, change the item tracking code, and then put the inventory back in with the lot and/or serial numbers. This is a one line code change that...
Do you know what the low-level code in Microsoft Dynamics NAV is used for? And do you know how it is maintained? The low-level codes are critical for Dynamics NAV to function properly in a manufacturing environment where material planning takes place (which is in 9 out of 10 places). In addition to this, the cost adjustments in Dynamics NAV are also using the low-level codes. The low-level code is a field in the item table that represents the items lowest level of usage in the production BOM or assembly BOM structures. It is used internally by Dynamics NAV to determine...
In school we where told that when you invoice (voucher) received inventory you get a debit transaction against the inventory account and a credit transaction against the accounts payable. Well, in Microsoft Dynamics NAV you also get two transactions in the P&L, a debit against the purchase account and a credit against the direct cost applied account. What are those used for? Wouldn’t they always be the same and net each-other out? Not necessarily. There is a special case to consider where the two transactions in the P&L are not the same and therefore a discrepancy between the two accounts will occur....
Most of us know that you can create production orders from sales orders in Microsoft Dynamics NAV. When doing this the production orders are reserved against the sales order lines and they also inherits the dimensions from the sales order lines. The quantity on the production orders equals the base quantity on the sales order lines and the due dates of the production orders becomes the shipment dates backdated by the default safety lead time defined in the manufacturing setup. For make-to-order environments this is great and creating the production orders from the sales orders quite often becomes the handover...
Items in Microsoft Dynamics NAV can have multiple units of measures, you can for example sell in one unit of measure and purchase in another unit of measure. This is great, but there are some things to be aware of when setting an item up with different unit of measures. An item must have a base unit of measure. The base unit of measure is how the inventory quantities are displayed and how the inventory is valued. It is also how it is produced (you can have a Production BOM in a different unit of measure, but the Routing and...
