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We have assembly orders which contain items one of which is an assembly order. Both the final product "FSTB" and the assembled item "FST" in the top assembly order have tracking numbers.
When we try to unassemble the top assembly order (FSTB), it works fine but when we try to unassemble the assembled item (FST) which should have become available, we get an error that there is no remaining quantity of this.
It appears that the top level FSBT unassembly is unassembling all of the individual items on the assembly BOM except the assembled item (FST). I don't believe that this has worked ever since upgrading from NAV 2013 R2 to NAV 2017 CU 2.
You will need to create a custom disassembly function. To my knowledge, since we moved from Kitting to Assembly, the Assembly Management functionality is very selective about the scenarios under which disassembly is permitted.
When you post an Assembly Order and the product has not been shipped, you can undo it. But if you post from Assembly from inside a Sales Order, or an Assembly Order contains another assembly which is indirectly posted as an ATO, these indirectly posted assemblies can't be undone. If you assemble from an Assembly Order and then ship the product, and subsequently get it back as a Sales Return, you won't be able to undo the assembly.
My suggestion is that you leave the Undo Assembly function untouched, and create your own function to disassemble an Order. You will also need to determine if you will use a "Disassembly BOM" like Kitting used to work in NAV 2009, or if you want to find the original Assembly posting and do an exact reversal. You will also need to consider the cost impact of the disassembly on your inventory, etc., which entries / layers it will apply to, etc. It can be done, but do consider the consequences of what you are about to do.
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This is one more reason for my pushing the company to go to full production and get off of assembly. They are headed that way but they do say that in 2013 R2, they were able to unassembly an assembly that contained another assembly.