Dynamics Community Forum Thread Details

Production order estimates for FIFO raw materials

Hello experts,

I’m working with a customer who is using Production Orders in Dynamics 365 FO.

After running Estimation, the raw materials show an estimated cost of zero.
Both the raw materials and the finished good are set up with Item model group = FIFO.

I did some research on this issue and, based on older posts in this community, I found that some suggested approaches are:

Production cost estimates for raw materials that use FIFO valuation methodology in Dynamics AX 2012 R3

Manually entering a value in the Price field on the Released product > Manage costs FastTab, or
Enabling Latest cost price in the same FastTab

This raised a few questions for me:

Is the Price field used by any other process in Dynamics 365, or is it really intended to be used only for production order estimation purposes? Could populating this field have side effects on other costing or posting scenarios?
Could defining a Planned cost for the released product achieve the same result for production order estimation?
Does the Calculation group play any role in this behavior, or influence how the estimated cost for raw materials is calculated during production order estimation?

Any insights or best practices you can share would be greatly appreciated.

Thanks in advance

Categories:

Dynamics 365 Supply Chain Management

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