I am often asked how to track non-conforming material in Dynamics NAV.
There is no formal NCMR (Non-conforming Material Report) functionality in Dynamics NAV, but I have handled non-conforming material by creating a location named MRB (Material Review Board) and moving material in and out of that location. Some people would name this location “Quarantine”, especially in the life sciences industry.
Dynamics NAV allows us to choose between FIFO, LIFO, Specific, Average, or Standard Costing Methods I have not encountered many companies using the Specific Costing Method, but there seems to be some misunderstanding of how the Specific Costing Method requires Serial Number Tracking and vice versa.
I had a question from a client yesterday regarding Production Order Variances. The client was seeing Variances being posted to the General Ledger and wanted to know what was causing them.
Keep in mind that this analysis is only for those items that have a Costing Method of Standard Cost. Also keep in mind that there will be no variances calculated and posted to the General Ledger until the Production Order has been changed to status “Finished” and that the Adjust Cost-Item Entries has been run and the results are posted to the General Ledger.
When you are setting up Dynamics NAV to run MRP, you want to be able to create Action Messages and track where the demand is coming from.
Because of some differences in how tracking is defined in Dynamics NAV, however, order tracking is often misunderstood. Let’s start with some definitions:
Simultaneous use of reservation and specific item tracking is uncommon, because they both create a coupling between supply and demand. Except for situations where a customer or production planner requests a specific lot, it rarely makes sense to reserve inventory items that already carry item tracking numbers for specific application.
Serial number or lot number handling is primarily a warehouse task, and therefore all inbound and outbound warehouse documents have standard functionality for assigning and selecting item tracking numbers.
The Item Tracking Lines and Item Tracking Summary windows provide dynamic availability information for serial or lot numbers. The purpose of this is to increase transparency for users on outbound documents, such as sales orders, by showing them which serial numbers or how many units of a lot number are currently assigned on other open documents.