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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Production Orders - Ne...
Small and medium business | Business Central, N...
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Production Orders - Negative Consumption for Cost Roll-Up

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Posted on by Flynn.Fr
Hello,
 
I am working on setting up Production Orders in Dynamics 365 BC. Our company manufactures a product and from this process, we produce scrap. I've accounted for our scrap percentage in the master material line in the BOM. After we finish a production order, we sell the scrap we produced to scrap buyback company. Originally, I had created a new Item /Scrap/ - Set the cost of this item to the price at which the outside company buys back our scrap - added this Item as a line in the BOM with a negative consumption. This accurately rolled the cost up taking the buyback amount out of the cost of the finished product. 
 
The Item I created was an /Inventory/ item... This /Scrap/ item was posting to the Inventory WIP G/L and the Inventory Adjustment G/L.. 
 
When we /sell/ our scrap to this buyback company - we do not create a sales order as we have not been tracking scrap in Inventory.  The scrap can also consist of scrap that is produced from products that we distribute instead of manufacture. 
 
Our operations team has requested that we try changing the Item type to /Non-inventory/ which has caused a few roadblocks..
 
Setting this up as /Non-inventory/ restricts us to the /FIFO/ costing method. Since the cost in this situation is technically the price at which the outside company buys back our product.. The /cost/ will fluctuate.. 
 
I was able to create a single production order and successfully post the Production Journal consumptions and outputs. After the initial sandbox test, I am receiving an error when trying to access the Production Journals /Stockkeeping Unit Scrap Test not found in Transfer-From Location Code/.. I am unable to create a SKU Card for the Non-Inventory item.. I get another error /The field Item No. of table Stockkeeping Unit contains a value (Scrap Test) that cannot be found in the related table (Item)./
 
From everything I have read online, it seems that Non-Inventory item type is likely not suitable for this particular use case. Before I express that to my team, I wanted to make sure I exhausted every possible resource.  
 
Any and all advice/feedback is appreciated. 

Thanks in advance!
  • Community member Profile Picture
    Community member 4 on at
    Production Orders - Negative Consumption for Cost Roll-Up
    The Cost Rollup process includes the cost of purchased items, the lower-level costs of manufactured subassemblies, and the cost of subcontracted assemblies
  • Suggested answer
    Jun Wang Profile Picture
    Jun Wang 7,440 Super User 2024 Season 2 on at
    Production Orders - Negative Consumption for Cost Roll-Up
    most of the things you do is correct. but you should be able to create sku for non inventory items. below are example based on my test. not only that, the sku shows the qty of the non inventory item as well. It doesn't show qty from item the list page.
    hope it helps. Jun Wang
    you could follow me on linkedin for more sharing 
     
     
     
     
     
     
     
     
     
     
  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 75,848 Super User 2024 Season 2 on at
    Production Orders - Negative Consumption for Cost Roll-Up
    Hi, yes, I think you must have searched, Non-Inventory has many restrictions.
     
    Is it possible to change it back to Inventory and use a certain location to manage it, such as Non-Inventory location (Prevent Negative Inventory= false). This should solve your problem. But for the inventory and cost management of this location, this may be another problem.
     
     
    Hope this can give you some hints.
    Thanks.
    ZHU

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