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...
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....
For those of you that are reading my blog posts you probably know that I have been working on a Shop Floor Terminal role center for Microsoft Dynamics NAV (mostly for my own training, kind of how I learn). I have finally got some time to finish it (was stuck at Tampa airport for 3 hours before a 3 hour flight, more or less an entire work day in transit), so here it is! The concept with the Shop Floor Terminal role center is to provide an interface for a terminal in the production where the operator can see upcoming...
The production lead time if you are using routings in Microsoft Dynamics NAV is the sum of the lead times for the operations that each can have 5 different time components; queue time, setup time, run time, wait time and move time. In addition to the production lead time is the safety lead time defined on the item or stockkeeping unit card of the product being produced; this adds a slack time between the scheduled ending time for the last operation and the due date of the production order. The below illustrates the different times and how they together makes 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...
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...
