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dynamics 365 business central

Dynamics 365 BC – Manufacturing, Production Planning & Assembly

Business Central is a business management solution for small and mid-sized organizations that automates and streamlines business processes and helps you manage your business. Highly adaptable and rich with features, Business Central enables companies to manage their business, including finance, manufacturing, sales, shipping, project management, services, and more. Companies can easily add functionality that is relevant to the region of operation, and that is customized to support even highly specialized industries.

Today we are going to focus on Manufacturing, Production Planning & Assembly features.

1.   Manufacturing

Functionality described in this topic and sub topics is only visible in the user interface if you have the Premium experience.

When demand is planned for and the materials have been issued according to production BOMs, then the actual production operations can start and be executed in the sequence defined by the production order routing.

An important part of executing production, from a system point of view, is to post production output to the database to report progress and to update inventory with the finished items. Output posting can be done manually, by filling and posting journal lines after production operations, or it can be done automatically with the use of backward flushing. In that case material consumption is automatically posted along with output when the production order changes to finished.

As an alternative to the batch journal for output posting for multiple production orders, you can use the Production Journal page to post consumption and/or output for one production order line.

manufacturing setup

Before you can begin to produce items, you must make various setup, such as work centres, routings, and production BOMs.

The following table describes a sequence of tasks, with links to the topics that describe them.



Understand how production orders work. About Production Orders
Create production orders manually. Create Production Orders
Outsource all or selected operations in a production order to a subcontractor. Subcontract Manufacturing
Record and post production output along with material and time consumption for a single released production order line. Post Consumption and Output for One Released Production Order Line
Batch post the quantity of components used per operation in a journal that can processes multiple planned production orders. Batch Post Consumption
Post the quantity of finished items and the time spent per operation in a journal that can processes multiple released production orders. Batch Post Output and Run Times
Undo output, for example because of a data entry error occurred and incorrect amount. Reverse Output Posting
Post the number of items produced in each finished operation which do not qualify as finished output, but as scrapped material. Post Scrap
View the shop floor load as a result of planned and released production orders. View the Load in Work and Machine Centers
Use the Capacity Journal page to post consumed capacities that are not assigned to a production order, such as maintenance work. Post Capacities
Calculate and adjust the cost of finished production items and consumed components for financial reconciliation. About Finished Production Order Costs

2.   Production Planning


To transform inputs into finished goods must be planned daily or weekly depending on the volume and nature of the products. Business Central offers features to supply for anticipated and actual demand from sale, assembly, and production as well as features for distribution planning using stockkeeping units and location transfers.

Note – This topic mainly describes planning for companies involved in manufacturing or assembly management where the resulting supply orders can be either production, assembly, transfer, or purchase orders. The main interface for this planning work is the Planning Worksheet page.

Business Central also supports supply planning for wholesale companies where the resulting supply orders can only be transfer and purchase orders. The main interface for this planning work is the Requisition Worksheet page, which is described indirectly in this topic as most planning functionality applies to both worksheets.

Planning can be seen as the preparation of required supply orders in the purchasing, assembly, or manufacturing departments to fulfil sales or end-item demand.
The following table describes a sequence of tasks, with links to the topics that describe them.



Get a brief introduction to how the planning system can be used to detect and prioritize demand and suggest a balanced supply plan. About Planning Functionality
Understand how all aspects of the planning system work and how to adjust the algorithms to meet planning requirements in different environments. Design Details: Supply Planning
Learn how the planning logic differentiates between demand at locations according to the SKU setup and demand without location codes. Planning With or Without Locations
Forecast demand presented by expected sales and production components. Create a Demand Forecast
Create one-to-one production orders automatically from a sales order to cover the exact demand of that sales order line. Create Production Orders from Sales Orders
Create a project production order directly from a multiline sales order representing a production project. Plan Project Orders
Use the Order Planning page to manually plan for sales or production demand one production BOM level at a time. Plan for New Demand Order by Order
Use the Planning Worksheet page to run both the MPS and MRP options to automatically create either a high-level or detailed supply plan at all item levels. Run Full Planning, MPS or MRP
Use the Requisition Worksheet page to automatically create a detailed supply plan to cover demand for items that are replenished by purchase or transfer only. Requisition worksheet
Initiate or update a production order as rough-scheduled operations in the master production schedule. Replan or Refresh Production Orders Directly
Recalculate work or machine center calendars due to planning changes. To calculate a work centre calendar
Track the order demand (tracked quantity), forecast, blanket sales order, or planning parameter (untracked quantity) that has given rise to the planning line in question. Track Relations Between Demand and Supply
View an item’s projected available inventory by different views and see which gross requirements, planned order receipts, and other events influence it over time. View the Availability of Items

3.    Assembly Management

To support companies that supply products to their customers by combining components in simple processes without the need of manufacturing functionality, Business Central includes features to assemble items that integrate with existing features, such as sales, planning, reservations, and warehousing.

An assembly item is defined as a sellable item that contains an assembly BOM.

Assembly orders are internal orders, just like production orders, that are used to manage the assembly process and to connect the sales requirements with the involved warehouse activities. Assembly orders differ from other order types because they involve both output and consumption when posting. The assembly order header behaves similarly to an output journal line, and the assembly order lines behave similarly to consumption journal lines.

To support a just-in-time inventory strategy and the ability to customize products to customer requests, assembly orders may be automatically created and linked as soon as the sales order line is created. The link between the sales demand and the assembly supply enables sales order processors to customize the assembly item on the fly, promise delivery dates according to component availability, and to post output and shipment of the assembled item directly from their sales order interface.

On one sales order line, you can sell a quantity that is available and must be picked from stock together with a quantity that must be assembled to the order. Certain rules exist to govern the distribution of such quantities to ensure that assemble-to-order quantities take priority over inventory quantities in partial shipping. For more information.

Special functionality exists to govern the shipping of assemble-to-order quantities. When an assemble-to-order quantity is ready to be shipped, the warehouse worker in charge posts an inventory pick for the sales order line(s) in question. This, in turn, creates an inventory movement for the components, posts the assembly output, and the sales order shipment.

The following table describes a sequence of tasks, with links to the topics that describe them.



Learn about the difference between assembling items right before shipping sales orders and assembling items that are intended for storage. Understanding Assemble to Order and Assemble to Stock
Fill in fields on location cards and in inventory setup to define how items flow to and from the assembly department. Set Up Basic Warehouses with Operations Areas
Customize an assembly item to a customer’s request during the sales process and convert to a sale when accepted. Quote an Assemble-to-Order Sale
Combine components to create an item in a simple process, to order or to stock. Assemble Items
Sell assembly items that are not currently available by creating a linked assembly order to supply the full or partial sales order quantity. Sell Items Assembled to Order
When some assemble-to-order items are already in inventory, deduct that quantity from the assembly order and reserve it from inventory. Sell Inventory Items in Assemble-to-Order Flows
When you are selling assembly items from inventory and all items are not available, initiate an assembly order to automatically supply a part or all of the sales order quantity. Sell Assemble-to-Order Items and Inventory Items Together
Make customized assembly items for blanket sales orders before periodically making the actual sales orders according to the blanket order agreement. Create Blanket Assembly Orders
Undo a posted assembly order, for example because the order was posted with mistakes that must be corrected. Undo Assembly Posting
Learn about the difference between assembly BOMs and production BOMs and the involved processing differences. Work with Bills of Material
Learn how assembly consumption and output are handled when you post assembly orders and how the derived item and resource costs are processed and distributed to the general ledger. Design Details: Assembly Order Posting