Item Substitutions in Microsoft Dynamics NAV

There are times in a manufacturing company where substitute items that are not on the Bill of Material are OK to use if the preferred item is not available. Often this substitution has to be approved by an engineer and is usually in the form of a ‘Usage Variance’. If substitutions are a common event,… Continue reading Item Substitutions in Microsoft Dynamics NAV

Setting Up Production Lead Time in Dynamics NAV if Not Using Routings

There are manufacturing companies using Dynamics NAV that want to offset the start time on production orders to accommodate production time even though they are not using Routings. To illustrate, we set up a test item. Note that the item has a BOM, but not a Routing. Figure 1 – To offset start time on… Continue reading Setting Up Production Lead Time in Dynamics NAV if Not Using Routings

Tooling Amortization in Microsoft Dynamics NAV

Manufacturing companies will often build or purchase production tooling. In most cases the manufacturing company would like to amortize the cost of the tooling by adding the cost to the items produced. There is no direct way to do this in Dynamics NAV, but we have accomplished this using Dynamics NAV Item Numbers and Bills… Continue reading Tooling Amortization in Microsoft Dynamics NAV

Circular Reference in Microsoft Dynamics NAV Production BOM

A client called the other day and said that they were getting an error, “Max Levels in BOM Structure on 50 is too high”, when trying to ‘Certify a Dynamics NAV Production BOM’. This is caused by what is known as a circular reference or an item used on itself. Figure 1 – Error displayed… Continue reading Circular Reference in Microsoft Dynamics NAV Production BOM

Lot-for-Lot versus Reorder Point in Microsoft Dynamics NAV

When we are talking about Replenishment Planning in either a manufacturing or distribution environment, there are two fundamental replenishment planning methods: Reorder Point (Also known as Min/Max and sometimes incorrectly as Kan Ban) Materials Requirement Planning (MRP) The Reorder Point method is typically used in a distribution environment. The Reorder Point method is ‘reactive’ in… Continue reading Lot-for-Lot versus Reorder Point in Microsoft Dynamics NAV