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Small and medium business | Business Central, N...
Answered

Picking of materials as Routing operation step in Manufacturing

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In manufacturing, where are components are required to be picked for manufacturing Is it normal to also set up a routing operation step for picking?
Usually this is performed by warehouse staff so it may not be directly attributable to a particular production order as they can be picked for a number of orders together. Therefore, I'm just wondering is picking maybe added as an overhead of production or how is the cost attributable to a production order when we're picking is required?
 
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  • Verified answer
    OussamaSabbouh Profile Picture
    11,401 Super User 2026 Season 1 on at
    Hello,
     
    In Business Central manufacturing, picking is normally treated as a warehouse activity, not a production operation, so it’s not best practice to add picking as a routing step. Since warehouse staff often pick components for multiple production orders together, the effort can’t be cleanly or realistically attributed to a single order. Instead, material cost hits the production order through component consumption, while the picking effort is recovered via overhead or indirect costs (work center indirect %, overhead rates, or built into item cost). Only in rare cases—where picking is done by production staff and must be time-tracked per order—does a routing step make sense, and even then it adds complexity with limited value.
    Regards,
    Oussama Sabbouh
  • Suggested answer
    YUN ZHU Profile Picture
    98,287 Super User 2026 Season 1 on at

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