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Components at Locations in Dynamics 365 Business Central

Jun Wang Profile Picture Jun Wang 3,553 Super User
Components at Locations in Dynamics 365 Business Central

The evolution of Dynamics 365 Business Central (BC) from its predecessors, like NAV, has brought many enhancements and changes, particularly in how manufacturing setups and component locations are handled. One significant shift is the handling of the "components at location" field, which has implications for businesses managing inventory across multiple locations.
In earlier versions of NAV, such as NAV 2013, the item card included a field where users could specify the location of components used in manufacturing. This feature was beneficial for companies that stored components at different locations but needed to assemble or use them at a central manufacturing site. However, in the latest iterations of Business Central, this setting has been migrated to a global setting within the manufacturing setup, changing its flexibility and application.
The current framework in Business Central positions the "components at location" field as an optional global setting rather than a specific item-level detail. This adjustment aligns with scenarios where a business typically sources various types of components from a single location. For instance, if a company has locations A and B, with A designated in the setup as the sourcing point, production orders at location B will default to pulling components from location A.

 Scenario Illustration:
- Location A (Setup as Component Source): Acts as the central hub for components.
- Location B (Production Site): Even when a production order is initiated here, components are drawn from location A, following the global setup.
The Limitations and Challenges
While this setup simplifies certain operations, it introduces constraints, particularly in customization and specificity:
- Lack of Item-Specific Setup: The global setting does not allow for item-specific configurations. If your operation requires different sourcing strategies for various items, this setup may prove too rigid.
- Picking and Production Constraints: If location B requires a separate picking process, a production order slated for B cannot utilize components from A seamlessly. This limitation can complicate operations, especially for businesses that rely on flexibility and specificity in their inventory management.

The transition from the NAV version's item-specific component location setting to the global setting in Business Central reflects a broader shift towards streamlined, simplified configurations. However, it also presents challenges for businesses requiring nuanced control over their inventory management. By understanding these changes and exploring alternative strategies, companies can leverage Business Central's powerful capabilities to maintain efficient, responsive manufacturing and inventory systems, even across multiple locations.