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Supply chain | Supply Chain Management, Commerce
Suggested answer

Circular reference error at formula

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Posted on by 25

Hello,

I am facing circular reference error while creating multiple interdependent formulas.

It is a normal production process of some industries where different semi-finished/finished products are produced and used within the process. For example, A product is produced from B, B product is produced from C, and C product is produced from A. Below is the actual scenario of the production processes that I want to incorporate in D365:

pastedimage1667999714876v2.png

I prepared above formulas, Steam, Electricity, Mixed Juice, Sugar Bulk, Sugar Bags.

All formulas are interlinked with each other. eg:

  • In Steam production, Bagasse and Electricity are consumed.
  • In Electricity production, Steam is consumed.
  • In Mixed Juice production, Sugarcane along with Steam and Electricity are consumed. Bagasse is produced as Co-Product in Mixed Juice production.
  • When I created all above formulas and verified through option "Check", I found Circularity reference error as follows:

pastedimage1668000442317v3.png

Note:

All formulas are created using single Site but different Warehouses for each item.

How can we avoid circularity reference in our case? Kind suggestions will highly be appreciated.

  

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  • Suggested answer
    akrupke Profile Picture
    on at
    RE: Circular reference error at formula

    There are some parameters that control circularity checks which you can access in Inventory management > inventory and warehouse management parameters > bill of materials. You can set the Level of circularity to Line to only prevent the item from being added to its own BOM or Never to prevent circularity checks completely

    pastedimage1668005238812v1.png

  • MS D365 Community Profile Picture
    25 on at
    RE: Circular reference error at formula

    Hi Anne,

    Thanks for your suggestion. I will try the whole scenario. Hope that will work.

  • Guy Terry Profile Picture
    28,911 Moderator on at
    RE: Circular reference error at formula

    The Circularity parameters will not stop you from hitting Circularity errors when the BOM/Formula is actually used (e.g. during Master Planning), even if you switch them off.

    The scenario you describe is probably supported on Formulas; have a look at 'Recycled by-products'

    learn.microsoft.com/.../set-up-recycled-products-in-formulas

    I think in your scenario, the Bagasse item should be set as a By-product of the Juice production.

  • MS D365 Community Profile Picture
    25 on at
    RE: Circular reference error at formula

    Hi Anne,

    I have tested the whole scenario after switch off circularity check but error is still appearing on production order creation. Is there any further disability check? I have also tried this after deleting old formula versions and creating new one but not succeeded. Pls suggest.

    pastedimage1668677122132v1.png

    pastedimage1668677247212v2.png

  • MS D365 Community Profile Picture
    25 on at
    RE: Circular reference error at formula

    Guy Terry,

    Thanks for your comments. 'Recycle by-product' feature is good but client is using moving average for inventory costing and 'Recycle by-product' only supports Standard Cost. Further, two more items 'Steam' and 'Electricity' also having circularity along with 'bagasse'. pls suggest.

  • Aparisi82 Profile Picture
    2,180 on at
    RE: Circular reference error at formula

    Is there any reason why you want to configure products such as Electricity and steam as stocked products?

  • MS D365 Community Profile Picture
    25 on at
    RE: Circular reference error at formula

    Yes Parisi,

    Actually Steam is used/consumed in Power Generation (Electricity) and that Electricity will be sold outside, as well as consumed/used within production process in different Formulas as mentioned above flow. That's why we are taking Steam and Electricity as stocked product. Is there some other way to handle such scenario? pls comment.

  • Aparisi82 Profile Picture
    2,180 on at
    RE: Circular reference error at formula

    I had a similar issue when configuring D365 for a Brewery Process where a product could be ingredient as well as output, this happens only when the factory is up and running and not when starting the plan.

    If you had to start the factory with no Electricity at all,  you would not be able to produce anything as to produce Steam you need Electricity but to produce Electricity you need Steam..

    The Circularity Bom is indeed correct to highlight this issue.

    I would tackle the issue by changing the configuration on the Electricity element.

    If your requirement is to track Electricity in D365 as stocked product , I would create a product called Electricity_WIP set as service

    So your output products would be  using  Electricity_WIP which you would backflush as part of your batch order RAF process.

    The Electricity you sell would be a different product  set as production type formula  which you would therefore produce, sell or "consume" via adjustments.

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