Manufacturing Terms

Production BOM - list of components needed to make an item.
Routing Link - Operation steps used to make the item.
End Product - Finished goods or subassembly produced from the operating steps in routing link.

Calculate Standard Cost

Problem:

You have make changes to the material overhead on the BOM and the capacity overhead of one machine center but the cost is not reflected in standard Unit Cost yet.

Solution:

You need to run the Calc. Standard Cost function at the Item Card.

Discussion:

1. On Item Card, Click Manufacturing --> Calc. Standard Cost.
2. In the next window, click Single / All Levels and then click OK.

Once you click on the OK button, Navision will recalculate the standard cost again based on the material and machince overhead cost.

Create Work Centers

To open Work Centers card, click:
Manufacturing --> Capacities --> Work Centers

1) Press F3 and then Enter to create a new Work Center
2) Enter the relevant information.

Setup Cost for Machine Center

Open Machine Center Card. Select Posting Tab.

Fill in the Direct Unit Cost and Indirect Cost % and / or Overhead Rate fields. The Unit Cost field will be calculated automatically.

When you change the Unit Cost, Indirect Cost % or Overhead Rate fields, only the respective fields and the Unit Cost field in Table 99000758 (Machine Center) will be updated.

Machine Center Card

Machine Center Card can be accessed from
Manufacturing --> Capacities --> Machine Center

Capacity Ledger Entries

When we post purchase or sale of items, Item Ledger Entry and Value Entry tables are involved. When items are manufactured, additional Capacity Ledger Entry is involved as well.

Manufacturing Cost

Manufacturing cost consist of:
1) Direct Cost (Material and Labor)
2) Indirect Cost

Inventory in Manufacturing comapny

Manufacturing company usually have 3 types of inventory:
1) Raw Material
2) Work In Progress (WIP)
3) Finished Goods

Consumption Journal and Output Journal

There are 2 important journals in Manufacturing module. These are:
1) Consumption Journal - record the usage or material
2) Output Journal - record the quantity produced and time used.

Work Center Groups, Work Center and Machine Center

Work Center Groups can be considered as a department within the organization such as Production Department, Shipping Department and Inventory Department. Within the work center groups, we can have many Work Centers or Sections, such as Painting, Packaging and Quality Assurance. A work center consist of many machine centers or production line, such as Painting Line 1, Painting Line 2, Painting Line 3, Packaging Line 1, Packaging Line 2 and Quality Assurance 1 and Quality Assurance 2. Machine is the lowest level of entity. Machine center can consist of a single or multiple machines or person. The total capacity of a work center is the sum of the machine centers. Please note that one machine center can only belong to one work center but one work center can have multiple machine centers.

My company only use Work Centers and Machine Centers but not using Work Center Groups.

Planning Warning

You can set Navision to give you warning if the promised sales quantity cannot be met by production. If a sales line has been planned for production order and you try to change the sales line, Navision will prompt warning message so that you will be more cautious when changing the sales line. Planning warning can be turned on at the Manufacturing Setup window. To open Manufacturing setup window, click Manufacturing --> Setup --> Manufacturing Setup.