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.
Microsoft Dynamics NAV is very flexible when it comes to setting up Units of Measure for items. But careful consideration should be used before setting up the Base Unit of Measure. Once the Base Unit of Measure is established and there are transactions recorded for the item, the Base Unit of Measure cannot be changed.
Times are tough and poor Gru has gathered all the minions together to inform them that production on new minions has to stop and a full reconciliation of component parts has to be done. The Minion factory is shutting down. Current Sales orders will be fulfilled and then the machines will lie dormant.
It is quite common in processing industries, like chemical production, that the cost of Labor is not the primary cost of production. In chemical processing, the cost of energy or depreciation may be the largest cost component.
While Centers and Routings in Dynamics NAV are typically thought of in terms of Direct Cost (Labor) and Overhead, we can set up Work Centers and Routings to accommodate other cost components.
Items in Microsoft Dynamics NAV can have multiple units of measures, you can for example sell in one unit of measure and purchase in another unit of measure. This is great, but there are some things to be aware of when setting an item up with different unit of measures.