Purchase Requisition Overview

This article provides an overview of purchase requisitions in Dynamics 365 Supply Chain Management, emphasizing the purchase requisition workflow, the various statuses a requisition can have, and guidance on creating purchase requisitions.

Key Concepts

• Purchase Requisition: A formal request to procure goods or services, typically initiated by users within an organization to fulfill a need that cannot be fulfilled internally.
• Purchase Requisition Workflow: Defines the approval process that purchase requisitions go through before a purchase order is created.

Purchase Requisition Workflow and Statuses

Purchase requisitions pass through different statuses reflecting their progress in the procurement process:

The workflow includes configurable approval processes that can route requisitions to designated approvers.

Creating Purchase Requisitions

To create a purchase requisition in Dynamics 365 Supply Chain Management:

1. Navigate to the Purchase requisitions workspace or module.
2. Select Create purchase requisition.
3. Enter requisition header information such as description, expected delivery dates, and vendor preferences if applicable.
4. Add line details:
   • Item or service being requested.
   • Quantity, unit price, and delivery dates.
   • Account allocation or cost center details if needed.
5. Submit the requisition for approval whereupon the requisition status will advance based on workflow rules.
6. Track the requisition’s progress through its lifecycle in the requisition list or form.

Once approved, requisitions can be converted manually or automatically into purchase orders for external procurement.

Summary

Purchase requisitions in Dynamics 365 Supply Chain Management are an essential step in controlling procurement, ensuring requests are reviewed and properly authorized. The system supports workflow-based approval, multiple statuses to track progress, and flexible creation processes to streamline procurement needs.

For detailed configuration, workflow setup, and examples, refer to the full Dynamics 365 documentation.

Original article link:
https://learn.microsoft.com/en-us/dynamics365/supply-chain/procurement/purchase-requisitions-overview

Bills of Materials and Formulas

This article explains the concepts of Bills of Materials (BOMs) and formulas, which are essential components for defining products and their variants within Dynamics 365 Supply Chain Management.

Overview

• Bills of Materials (BOMs) represent the structured list of components and raw materials required to manufacture a finished product or product variant.
• Formulas are similar to BOMs but often used for batch or process manufacturing scenarios where ingredients and batch sizes are managed.
• BOMs and formulas define:
  • Which components are needed
  • Quantities and units required
  • Relationships and hierarchy of components within finished goods
• They serve as the foundation for production orders, cost estimations, inventory management, and product lifecycle processes.

Key Concepts

Usage and Functionality

• BOMs are used in discrete manufacturing for assembling finished products.
• Formulas apply to industries like chemicals, food, or pharmaceuticals where production uses ingredients and batch sizes.
• Both can include:
  • Phantom BOMs (non-stocked intermediate assemblies)
  • Alternative BOMs for product options or routing changes
  • Versioning for managing changes over time

Benefits in Supply Chain Management

• Improved production planning and control
• Accurate inventory requirements and consumption tracking
• Support for product variation management
• Costing and budgeting accuracy linked to product definitions
• Lifecycle management and compliance through structured product definitions

More Information

For detailed procedures on creating, editing, and managing Bills of Materials and formulas, refer to the official Microsoft Learn documentation.

Reference:
https://learn.microsoft.com/en-us/dynamics365/supply-chain/production-control/bill-of-material-bom

Routes and Operations

This article explains the concepts and structure of routes and operations in Dynamics 365 Supply Chain Management production control. It covers how routes define the sequence of production steps and how operations are used within routes.

Overview

• Route: A route is a predefined sequence of operations (work steps) needed to manufacture a product. It defines the production process flow from start to finish.
• Operation: An individual work step in a route, representing a specific activity or process that must be completed.
• Routes help ensure consistent production and enable scheduling, capacity planning, and costing.

Key Concepts

Routes

• A route outlines the steps and order of operations for making a product.
• Routes can be versioned to reflect changes in the production process over time.
• Route headers define general information about the process.
• Each route contains multiple operations in a specific sequence.

Operations

• Define work tasks within a route, such as setup, processing, or teardown activities.
• Operations include data such as operation numbers, descriptions, and related resources.
• Different types of operations include machine work, labor work, inspection, and transport.

Parallel and Serial Operations

• Operations can be set up to run in parallel or serial (sequential) order.
• Parallel operations represent simultaneous tasks that can be processed at the same time.
• Serial operations represent tasks completed one after another.

Operation Relations

• Operations can have predecessor and successor relationships.
• Relations control the workflow and scheduling dependencies between operations.

How Routes and Operations Work Together

• The route is assigned to a product as the standard manufacturing method.
• During production order processing, the system uses the route to generate planned activities.
• Operations in routes map to resources, labor, and machine centers required for those steps.
• Scheduling is based on operation sequences and relations.

Benefits

• Provides structured and efficient production workflows.
• Enables accurate scheduling and resource allocation.
• Supports costing by allocating costs to operations.
• Allows for change management via route versions.

For detailed parameters, setup options, and examples, refer to the full documentation.

Reference:
Routes and operations - Supply Chain Management | Dynamics 365

Production Process Overview

This article provides an overview of production processes in Dynamics 365 Supply Chain Management. It outlines the main stages and flow of managing production orders, batch orders, and kanbans, key to controlling manufacturing operations effectively.

Key Concepts and Processes

Production Orders

• Definition: Documented instructions to manufacture finished goods or components.
• Main stages:
  • Creation: Define item, quantity, and required dates.
  • Scheduling: Plan start and finish times based on capacity.
  • Picking: Materials are allocated and picked from inventory.
  • Reporting and registration: Record production progress, consumption, and output.
  • Completion/Close: Finalize the order once production is done.

Batch Orders

• Used primarily in process manufacturing scenarios.
• Support production of batches with specific attributes and traceability.
• Similar life cycle stages as production orders, tailored for batch-driven processes.

Kanban

• A lean manufacturing method to trigger production and replenish inventory based on consumption signals.
• Supports visual workflow management.
• Kanban cards or signals initiate production or movement of materials without traditional order processing.

Overview of Production Process Flow

1. Planning and scheduling of production orders or kanban signals based on demand forecasts or consumption.
2. Material availability check to ensure raw materials/components are allocated or ordered.
3. Execution which involves picking, production, and consumption registration.
4. Quality control steps and inspection may be integrated as per configured workflows.
5. Completion, posting of output, and closing orders or kanbans to update inventory and financials.

Benefits of Using Dynamics 365 for Production Control

• Integrated visibility and control over production lifecycle.
• Flexibility to handle discrete, process, and lean manufacturing models.
• Automation of scheduling and material allocation drives efficiency.
• Real-time data capture supports responsiveness and continuous improvement.

Useful to:

• Production planners and supervisors
• Manufacturing managers
• Supply chain coordinators managing shop floor activities

Reference Links

• Original article and detailed process descriptions
• GitHub source for content

This summary covers the essential stages and concepts in managing production within Dynamics 365 Supply Chain Management, providing users a clear understanding of how orders and kanbans progress through the system.

Default order settings for dimensions and product variants

Default order settings in Dynamics 365 Supply Chain Management specify the default site and warehouse where items will be sourced from or stored. These settings help streamline order processing and inventory management by automatically assigning dimensions such as site, warehouse, location, batch number, serial number, and product variant during inventory transactions.

Key Concepts

• Default order settings are used when creating purchase, production, transfer, or sales orders to determine the default inventory dimensions.
• They help reduce manual entry and ensure consistency by predefining where items will be reserved, purchased, or stored.
• Settings can be defined at different levels: for a specific item, item group, or product variant.
• These settings impact warehouse operations, inventory reservations, and replenishment logic.

How Default Order Settings Work

• When an order line is created, default dimensions from the settings are copied to the order line.
• Dimensions include Site, Warehouse, Location, Batch number, and Serial number.
• The system uses a hierarchy to apply defaults:
  1. Product variant or item-specific default order settings.
  2. Item group default order settings.
  3. Module-level default settings.
• If multiple settings exist, the system chooses the most specific match.

Setting Up Default Order Settings

1. Navigate to Inventory management > Setup > Items > Default order settings.
2. Create a new record to define defaults by specifying:
   • Inventory Dimension Code (identifies the dimension set such as Site, Warehouse).
   • Site and optionally Warehouse (defines default location).
   • Filter by Item, Product variant, or Item group to target specific products.
   • Also define whether the default should apply for purchase, production, transfer, or sales orders.
3. Save the configuration.

Considerations for Product Variants and Dimensions

• Default order settings support product variants by allowing specific defaults per variant.
• For complex products with multiple dimensions, default inventory dimension codes help assign multiple values automatically.
• Product variant-specific settings override item group or item-level defaults.
• Existing inventory reservations and transactions respect these defaults during order processing.

Benefits

• Simplifies sales, purchase, and production order entry.
• Ensures consistent use of inventory dimensions.
• Reduces errors related to manual dimension assignment.
• Supports complex inventory scenarios involving variants, batches, and serial numbers.

Reference Table of Important Fields

For detailed examples, advanced configurations, and step-by-step guides, see the full Microsoft documentation.

Original article:
Default order settings for dimensions and product variants - Supply Chain Management | Dynamics 365