When implementing Microsoft Dynamics NAV in a manufacturing environment this question is always discussed; should the time posted against production orders be according to the expected values (e.g. the setup and run times in the routings, sometimes also referred to as nominal values) or should it be according to the actual time (entered by a user)? In my mind the answer to this should be driven by business requirements and should not be determined by the functionality available in a software (just like many other things when it comes to implementing an ERP system). My experience is that 3 out...
I have previously described how production orders are posting into the general ledger which I have received a lot of positive feedback on. This time I will described how assembly orders are posting into the general ledger in Microsoft Dynamics NAV (which is a lot simpler). The assembly orders in Microsoft Dynamics NAV was introduced in the 2013 version and they are a great compliment to the production orders, you can read one of my previous blog posts about assembly vs. production orders to get a feeling about what to use when. The only thing on assembly orders that creates entries...
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...
This is the first part of a series of blog posts about the subcontracting functionality in Microsoft Dynamics NAV. It describes how to setup and use the basic functionality, which is something that is very common to use for manufacturers (3 out of 4 places I go to uses some kind of subcontractors to perform operations that they can’t or don’t want to do in-house). Future posts on the subject subcontracting will describe things like how to ship the products to the subcontractor in a proper way, how shipping charges can be applied, how to receive subcontracted parts using warehouse...
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...
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...
Here is a super simple, but very useful modification for displaying the rolled-up costs on the item card in Microsoft Dynamics NAV. The item table has 10 standard fields that contain the rolled-up costs that are calculated during a regular standard cost roll-up. Those fields are not by default added to the item card; just adding them is quick and adds lots of values to the users that are looking at the costs shares of items. (more…)
How Microsoft Dynamics NAV posts into the general ledger from production orders is something that you must know when implementing it in a manufacturing environment. It is critical in order to get the posting groups and their related accounts correctly defined. This blog post will focus on the general ledger accounts and the amounts, for details about what dimensions that are used, see my previous post; Dimensions on Production Orders. The examples that are described are using the expected cost posting (setup in the inventory setup), which to me is the preferred way to setup Dynamics NAV. Without the expected cost posting...
One of the new reports in Microsoft Dynamics NAV 2013 is the BOM Cost Share Distribution Report that came with the assembly functionality. It is a great looking report, and what makes it even better is that it does not only work with assembled items but also with manufactured items. (more…)
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....
