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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Confusion between Item...
Small and medium business | Business Central, N...
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Confusion between Items/Production BOM

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Posted on by JeffBan 40

Hi there,

I work for a company that produces different types of mustards seeds and I'm tasked with setting up operations on Business Central. Some help would be appreciated regarding setting up the raw materials that go into producing a finished product. 

Raw Materials: There are four types of mustard seeds that go into different products. We buy these products from vendors and they go into our manufacturing process to produce finished goods. 

To keep things simple they are ( Mustard seed 1, 2, 3, 4) 

Finished products: Our products are label like this - 100's level seed, 200's, 300's, 400's, 500's, and 600's.    To produce a 100's level seed you need 60% of mustard seed 1 and 40% of mustard seed 2.

HOW DO I SET THIS UP?   - This is where I get confused: Are the raw materials considered my production BOM? I see tutorials of people making bikes online and they put the finished product and raw materials into Production BOM. 

If someone could plainly and simply walk me through how to input raw materials, and final goods into BC that would be greatly appreciated. 

Thanks! 

  • Suggested answer
    jerome77 Profile Picture
    jerome77 on at
    RE: Confusion between Items/Production BOM

    Hi

    So it looks like you have different finished product correct? So if you have 5 different finished products depending on the level of mustard seed, then I believe you have 5 different finished items in BC and each finished product gets his own receipt (production BOM).

    Maybe assembly is useful but my assumption is that we can use assembly when we can physically disassemble a finished product and set back component to inventory. This is my theory, so looks like when your production is started and an issue happens, you cannot "reverse" back the raw material to stock as it is mixed already.

    So 100's get is own recipe, which is BOM production 100's, then 200's gets is own receip which is BOM production 200's etc etc

  • Suggested answer
    JAngle Profile Picture
    JAngle 89 on at
    RE: Confusion between Items/Production BOM

    Raw materials have an item record.

    Finished goods have an item record

    FG will have a production BOM assigned to it - in your case. That BOM will include, potentially, a mix of FG and Raw materials. As Suresh has said if you have to manage the machines and people involved then layer in a routing on the FG. This is the process you must go through to make the item.

    If not then give assembly a serious thought

  • Suggested answer
    Suresh Kulla Profile Picture
    Suresh Kulla 47,785 on at
    RE: Confusion between Items/Production BOM

    Based on your requirements it looks like you don't need to setup Production BOM you can achieve your requirement with Assembly BOM, unless you have a manufacturing unit, and want to track capacities, work centers....

    Please watch the below video

    www.youtube.com/watch

  • JeffBan Profile Picture
    JeffBan 40 on at
    RE: Confusion between Items/Production BOM

    Hi Josh,

    Thanks for the response. To clarify - My raw materials I purchase ( Mustard seed 1, 2, ,3 ,4) will be inputted into production BOM.

    Where do I input my finished goods? The ones im trying to make (the 100's, 200's 300's, 400's, 500's and 600 level products)

  • Suggested answer
    JAngle Profile Picture
    JAngle 89 on at
    RE: Confusion between Items/Production BOM

    Confusion stemming from the fact your production BOM can contain other finished goods. The thing is those “finished goods” can have a production BOM of their own, sometimes called phantom BOMs. For your scenario keep it simple with raw materials only in the production BOM.

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