In today’s blog, we’ll explore a process familiar to many of our readers: the basic setup of a finished goods item in Dynamics 365. This will include setting up the finished good product in the released product form, along with an example of a basic route and bill of material (BOM) that we can use in the production process. As you may know, there can certainly be more complexity to the setup (and the entire process) than what we cover here. Our objective today is simply to outline the steps needed just to get started. We hope you enjoy…

  • To start, we will set up a released product. Navigate to Product Information management > Products > Released products – New.When setting up a released product that can be used in the production process, the Product type must be set to Item; the Product subtype can be either Product or Product Master.

BOM

Note that if your environment has no other existing products set up, for purposes of this example you will want to create a few that can be used for the BOM that will be set up later in the post.

  • To define this finished goods product as a bill of material type, there is a field on the Engineer fast tab called Production type. Select BOM from the dropdown menu:

BOM

  • How do we set up an item so that master planning will see this as a planned production order when the master plan is run? Well, we also need to go to the Manage Inventory tab at the top of the released product form and click on DEFAULT ORDER SETTINGS. Here, we will find the Default order type. Select Production from the dropdown menu.

BOM

  • Now that we have the basics for the finished goods product set up, we can move on to produce a Routing and Bill of Material and relate those to our finished goods product.
    • Routing is used to define the operation(s) needed in the manufacturing and outside service processes – the operations that need to be performed to fabricate or assemble the finished goods product.
    • The BOM (Bill of Material) is the material needed and consumed in the production process to produce the finished goods product.
    • Note that you could set up Routing or BOM only, if you don’t have both requirements for your process; you will still be able to process a production order.
  • If you would like the “consume the material” defined on the BOM at the operation itself, it is recommended to set up the routing first, as the route defines our operation number(s). If it is done in this sequence, the operation from the route can be added to the BOM line as they are set up, which allows for the consumption of the item(s) that are required for that operation. In some cases, operations may not be needed on the BOM line, as the material may always be consumed at the first operation. If the operation is not defined on the BOM, the system assumes consumption is at the first operation.
  • When setting up a routing, you will also find that a Route version is needed. One way to accomplish this it to go to the Engineer tab at the top of the released products form and click on ROUTE. Once the route form is open, click New < Route and route version.

BOM

  • You may need to enter the route number if your systems sequence number for the route is configured to do so; then, enter the Description and the Site that will use this route to complete the manufacturing operations needed, then click OK.

BOM

  • The route form shown below will now be displayed; the version is defined on the upper half of the form and the operations to accomplish all the tasks needed to make the item are defined in the next section of the form.
    • To accomplish the building of the route, operations and resources will need to be predefined. Resources can be of many types and define such things as humans or machines that will define the required resources for the operation. Operation can also be defined; these are the tasks required to process or make an item in your manufacturing facility. We will not go into detail here, as the intent is to make this basic.
    • When defining the route, at the very least you will need Operation No, which should populate automatically, Operation, Next operation, and Route group; then, on the Resource Requirements tab, a Resource must be defined. Following is an example of a route that has been entered with three operations.

BOM

  • Once the route is set up, you must approve the route; if the route is not approved, it cannot be used on the production order. Along with the approval, you can also run the Activate process, which makes this route the default for the product and will eliminate the need to select a route when a production order is created. Typically, when there is only one route version for the item/site, Activate is best practice.

BOM

  • When setting up the Bill of Material from the released product form, we discover that the system also requires a BOM version. One way to create a BOM is from the release product form; on the Engineer tab, at the top of the form click on the BOM Version button. Once the BOM Version form opens, click New < BOM and BOM version.

BOM

  • You may need to enter the BOM number if your systems sequence number for the BOM is configured to do so; Name and Site must be populated, then click OK.

BOM

  • The Bill of Material form will display (shown below). In the center of the form, populate the Bill of materials lines that will define the materials/items that will be used to build our finished goods product.
    • When adding the item, at a minimum you will need the item number and any product dimension required, the warehouse if we do not mark for resource consumption, the quantity, per series and unit of measure. If you wish to link the BOM line to an operation, this can be accomplished on the Detail tab at the bottom on the form.

BOM

  • Once the Bill of material is set up, you must approve the BOM and the BOM Version; if the BOM is not approved, it cannot be used on the production order. One can also run the Activate process, which makes this BOM the default for the finished goods product, meaning it does not need to be selected when a production order is created. Typically, when there is only one BOM version for the item/site, Activate is best practice.

BOM

  • When doing the approval on the BOM Version, as shown below, one can also use the yes/no option on this form to approve the Bill of Material.

BOM

  • Activate the BOM so that it will be our default version for the production order.

That’s it! In conclusion, we have just created the finished good product and set the parameters to allow for a BOM type and set to production. We built a simple route to define the operations needed to build our product and set up a Bill of Material to allow the production process to consume this material. Now, we can set up a production order and run the production process.

Want to take your manufacturing solution to the next level? PowerObjects can help! Learn more about our solutions for the manufacturing industry.

Happy D365’ing!

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Joe D365

Joe D365 is a Microsoft Dynamics 365 superhero who runs on pure Dynamics adrenaline. As the face of PowerObjects, Joe D365’s mission is to reveal innovative ways to use Dynamics 365 and bring the application to more businesses and organizations around the world.