Production orders in Dynamics NAV allows you to consume both less and more than what’s defined on the components and to output both less and more than what’s defined on the operations in the routing. There is no check when you post, which is nice (sometime I which it was like that on sales and purchase orders as well, but that’s a topic for another post). But when you post more than you wanted you need to be able to reverse it. Luckily reversing production output and consumption is easy if you know how to do it (if the production...
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...
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....
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...
You can run production in Microsoft Dynamics NAV with only production BOMs and without any routings. A reason for this is typically that you don’t have a requirement to capture capacity costs (labor and overhead) and you don’t want to do any scheduling of work centers or machine centers. This kind of makes sense because you don’t want to make the configuration in Dynamics NAV more complicated than it needs to be. But one thing that most people forget is that you can only back-flush the output if you use routings in Dynamics NAV. More information about flushing is in one of...
Having additional outputs on production orders (sometimes refereed to as by-products or reclaimed material) is a common requirement. It could be scrap that should go back into inventory for further processing (melting it down, regrinding it, etc…) or it could be multiple products that are produced at the same time in a process. (more…)
An old but still relevant topic is the different flushing methods you can use in Dynamics NAV. Flushing basically means that you can have NAV to automatically post consumption and/or output/time based on expected quantities. (more…)
