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Rework Production Orders in Microsoft Dynamics NAV

ArcherPoint How-To Blog: Step-by-step instructions on how to perform specific tasks in Microsoft Dynamics NAV

There are times in manufacturing, particularly process manufacturing, where the quality of the output doesn’t meet specifications and needs to be returned to manufacturing for rework.

To accomplish this in Dynamics NAV, you will need to manually create a production order that consumes the batch of output plus any other needed material.

In the example below, a bicycle has been produced, but the front wheel is defective and needs to be replaced.

To start, manually create a production order by populating the header and also a line for the item that needs to be reworked.

For Rework Production Orders, start by manually creating a production order

Figure 1 – For Rework Production Orders, start by manually creating a production order

Then manually add the bicycle and the front wheel to the production order component lines.

Manually add the items to the production order component lines

Figure 2 – Manually add the items to the production order component lines

Finally, consume the bicycle and front wheel and output the finished bicycle.

Consume the item(s) and output the finished product

Figure 3 – Finally, consume the item(s) and output the finished product

Now if we look at the resulting Item Ledger Entries for this Production Order, we see that we have consumed a bicycle to produce a bicycle with the addition of the new front wheel.

The Item Ledger Entries for this Production Order

Figure 4 – The Item Ledger Entries for this Production Order shows that we have consumed the item with the additions

For more information on this or other Microsoft Dynamics NAV topics, please contact ArcherPoint.

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Comments

ashoka-nav's picture

Comment: 

Hi Bob,
your post is really interested. please give your comments of following questions,
1. What is the advantages of maintain same item for rework process without having separate re-work item , re-work BOM, re-work route.
2. If we use same item for rework also will it be change the production cost (average cost) of main item.
3. If we use same item how we can identified cost share (cost breakdown) of rework. Can we generate a report to identify rework cost of item a for specific time period.
 * can you give your mail address to contact you for clarify some manufacturing problems.
thanks.
 

Comment: 

Hi Bob,
Your post is really interested. please give your comments of following questions,
1. What is the advantages of maintain same item for rework process without having separate re-work item , re-work BOM, re-work route.

*The BOM and/or the routing may change depending on what is required for the rework.  They can be manually changed on the production order component lines or the routing lines

2. If we use same item for rework also will it be change the production cost (average cost) of main item.

*It would be the accumulated cost of the original production cost plus any additional cost to rework.

3. If we use same item how we can identified cost share (cost breakdown) of rework. Can we generate a report to identify rework cost of item a for specific time period.

* You could create a routing step for 'rework'.  Then capture all of the time on that one step.

* can you give your mail address to contact you for clarify some manufacturing problems.
thanks. 

bbergman@archerpoint.com

Mirkod's picture

Comment: 

just one thought/consideration on this one:
you must have rework item on stock.
We've experienced one quite "nice" issue:
inventory is zero, then posted output qty=1, afterwards posted consumption qty=1.
Result ? Not good. Endless loop.

Comment: 

Hello Mirkod,  Thank you for your comment.

In the earlier versions of NAV I did have the problem with rework production orders causing an endless loops when running Adjust Cost; but in the more recent version the problem has been solved.

 

Bob

Comment: 

Just a comment around Mirkod message.
Adjust cost loop problem happens becaus output entry and consumption entry are posted in the same average cost period (usually Day).
NAV calculates output entry cost by adding consumption entries cost and capacity entries cost. And in case produced and consumed product is the same, a loop happen because consumption is affected by output entry cost and output entry cost affected by consumption entry cost.
If both entries are posted in a different day (average costing period), no loop will happen and inventory valuation wll be Ok.
All this, of course, in case of average costing method. Other costing methods are not affected by this issue.
I suffered this problem with NAV 2009 SP1.

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