At just about every Manufacturing course that I have conducted, I get the same question: “What does the Update Unit Cost do when Changing the Production Order Status?”.
My answer is usually: Forget it, it does not work properly.
I might have been a liiiiittle fast out of the gates, proclaiming the new Non-Inventory items to be the next cure for AIDS.
Ralf Daugbjerg from Elbek & Vejrup tested the solution a little further than I did, and it seems that Microsoft haven’t thought this functionality through all the way.
Value Entries with a value in the “Cost-Amount (Non-Invtbl.)” field are costs, that do not create any G/L accounts according to Olof Simren’s blog post: https://www.olofsimren.com/things-to-know-about-item-charges/, they only serve to increase the cost.
In previous versions of Dynamics NAV, working with infinite components have always been a little cumbersome. What are infinite components, You might ask?
Infinite components are items that must be added to the production, but they are not purchased in a normal manner. Infinite items in the production could be:
Microsoft Dynamics NAV can help companies in so many ways: streamlining accounting procedures, simplifying invoicing, and increasing efficiency of supply chain operations to name just a few. However, the software’s effectiveness is only as good as its use. We often find clients who have forgotten to conduct regular processes. While not an ideal situation, there is a solution in most cases.
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.
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)?