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Using Assemblies and BOM in Microsoft Dynamics NAV 2013 (Demonstration)

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

Microsoft Dynamics NAV 2013 uses Assemblies to replace the concept of Kits from NAV 2009.

Assembly Orders are used for making end items from components following a simple process. Assembled items can be pre-made and stocked in a warehouse or created dynamically when the Sales Order line is shipped. The Assembly’s component items can be changed by item or quantity prior to posting to reflect component changes. The master data behind assembly items is represented by Assembly BOMs.  These Bill of Materials (BOMs) are attached to the end item to identify the components needed to produce the end item.

A new field in the BOM Assembly list, called Resource Usage Type, specifies how the cost of a Resource is allocated during assembly.

  • When the Resource Usage Type is set to Direct, the Resource is allocated per unit assembled. Select this choice if the Resource’s cost is directly related to the number of units assembled.
  • When the Resource Usage Type set to Fixed, the Resource cost is allocated for the whole assembly order regardless of the order quantity. Select this choice if the Resource’s cost does not change based on the quantity assembled, for example, machine setup time.

Additionally, a new field on the Item Card’s Replenishment FastTab is used to indicate when the item is assembled. The Assembly Policy is then determined as follows:

  • Assemble to Order – Assembly Orders for the item are created in response to a Sales Order Line and are linked so that the order processor can customize the assembly components and resources from the Sales Order for that particular order’s requirements. These can be created manually or from the planning system based on demand according to the inventory replenishment requirements set on the Item Card. You typically use Assemble to Order for items that you do not want to stock because you expect to customize them to customer requests or because you want to minimize the inventory carrying cost. In the Assemble to Order process, the item is assembled in response to a sales order and with a one-to-one link between the Assembly Order and the Sales Order.
  • Assemble to Stock – Assembly Orders for the item are created as supply orders that are intended for inventory. You typically use Assemble to Stock for items that you want to assemble ahead of sales, such as to prepare for a kit campaign, and keep in stock until they are ordered. These items are usually standard items such as packaged kits that you do not offer to customize to customer requests.

To support a just-in-time inventory strategy or the ability to customize products to customer requests, Assembly Orders are automatically created and linked to Sales Order Lines in Assemble to Order flows. The link between the sales demand and the assembly supply enables Sales Order processors to customize the assembly item on the fly, promise Delivery Dates according to component availability, and post Output and Shipment of the assembled item directly from the Sales Order interface.

ArcherPoint has created a demonstration of using Assemblies in Microsoft Dynamics NAV 2013. You can view this video along with many other Microsoft Dynamics NAV tutorials on ArcherPoint's YouTube channel.  


Below is a transcript of the video:

Hello everyone, and welcome to our demonstration of Dynamics NAV 2013 where we introduce you to some of the highlights of the new NAV offering which includes some great new functionality related to assemblies.

Assemblies replaces the old 2009 concept of ‘kits’. This is a very top level view where we will show the changes on the item card related to assemblies, and then take you through a sales order, and finally we’ll view an assembly order.

Our demonstration is going to start on the item card. Dynamics NAV 2009 used the term ‘kits’ where a kit was identified by having a kit BOM number, and the replenishment system will be set to production order.

In NAV 2013, if we look at the replenishment tab, we can see that there is a replenishment system and is set to assembly. So this will be an item that we will assemble. Furthermore, if I go down to the bottom of the replenishment tab, I have a new field called assembly policy. If I drill down and look at the options, assemble-to-stock is essentially an item that will be assembled for us to keep in stock that will have available quantity on hand at all times. And assemble-to-order means that the customer will actually call in and place an order for that item, and we’ll assemble it at that time.

Additionally, if I go to the general fast tab, I can see that an Assembly BOM has been assigned. If I drill down I can see the details of that BOM. Additionally, I can go to the navigate ribbon and select assembly and assembly BOM and here is where I’ll set up the details of this particular BOM. I can see that I have four items that go along with this BOM, and each item has my quantity per which will be removed from inventory when I assemble this item. Click OK – and from here we’re going to go and view a sales order, so I’m going to come out to my sales order home tab, and bring up a brand new sales order.

We’re going to make this sale to the Cannon Group and the dates are going to default to today, and our external document number is going to be filled in so we receive no error messages. We’ll go down to the type and fill in item, and then we’ll fill in our item that relates to our sales order assembly item. From here, I’m going to put in a quantity of two, and if you notice that pop-up screen that shows the attachment of the assembly order in the background. And by filling in our quantity of two, our quantity to assemble-to-order was also populated with two. The result of this, or if I go to the navigate tab, I can view my assembly order that was attached in the background. For this particular item, I am assembling two, and if I scroll down and look at the lines, I can see the details that make up the assembly BOM. I have four different items and a resource that’s going to be included in putting this together. My quantity per multiplied by my quantity gives us the quantity to consume. So these will be the quantities that get consumed of each item.

When I close this window I can go ahead and post this sales order. The sales order and the assembly order are both posted at the same time, so now I’m going to view the actual item card, 470061. And if I go to my navigate tab and scroll down into my ledger entries, I can go to the bottom and view that I’ve assembled a quantity of two and I have subsequently sold that two as well. So, I have the output and the sale both assembled at the same time. That concludes the sales order process.

So now if we go and we want to process an actual assembly order, I’m going to do a search for assembly orders, and I’m going to create a brand new assembly order for the CONTOSO conference system. And, in this example, I’m going to assemble three, so once we get past our date warning message I can scroll down now and see that the items for that particular assembly BOM have been populated onto my lines.

The quantity per is again going to be showing the quantity that is required for each item. So for the Antwerp conference table I need five, and to assemble three that means I’m going to have to consume fifteen. So the item to consume is up here in this column. I can press OK – and now if I want to post that order I can go back to my home and select post. Now, the assembly order has been posted and if I go actually out to the item card – for this CONTOSO conference system I can now see that I have a quantity of three in the touring whereas before I had a quantity of zero.

This concludes our brief tutorial of some of the key assembly components. I hope you enjoyed this demonstration and we’ll talk to you soon.

If you have any questions about this process or other technical questions about Dynamics NAV, please contact ArcherPoint.

Read more "How To" blogs from ArcherPoint for practical advice on using Microsoft Dynamics NAV.

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