As well as offering back-office ERP functionality, Dynamics 365 Business Central offers comprehensive Manufacturing capabilities, providing clients end to end business processing out of the box.

Dynamics 365 Business Central Manufacturing Functionality

For manufacturing companies, there are many essential areas that require management from their business system. For example, consumption of resources such as labour, machinery, stock as well as monitoring the output of waste and end product.

Business Central Manufacturing can start small and become very advanced, depending on the needs of the client, and can be fully integrated with other areas of the system, e.g. Sales and Stock Management.

This blog will focus on 5 core areas of manufacturing available within Business Central.

BC Manufacturing

1. Bill of Materials (BOM’s)

Business Central monitors versions of production orders, comparison of components across versions, and substitution of components. When creating a Sales Order in Business Central, stock items can have associated BOM’s, which go on to generate production orders. Business Central allows for an unlimited number of BOM levels including phantom BOM’s. Users can track input quantities by variances like quantity or dimension.

2. Production Orders

Included in Business Central planned, firm planned, and released production orders. Users can amend the components of a BOM on an ad-hoc basis to suit a specific requirement.

Forward or backward flushing is available in the manufacturing module for flushing parts to the production. Consumption journals can be processed in the system to manage the consumption of resources on production. An output journal can be used to record production output, either manually or automatically. The production journal can post both consumption and output at the same time, saving time on the other two processes.

3. Routings

Routings will be used when MRP makes build recommendations. Versioning is also available within routings, as well as functionality for either sequential or parallel processes. Routings can be easily amended once related to a production order to create a unique process or allow last-minute changes. Options for time elements of routings are available such as waiting, processing, etc. There are many ways to monitor waste or scrap materials depending on requirements.

4. Capacity Planning

Manufacturing resource capacity is managed through work centres with the ability to assign multiple resources to each work centre. Variance in capacity for events, such as employee sickness or machinery downtime, can easily be updated and the production schedule updated. Firm planned orders can be included in the capacity planning.

5. Materials Planning

MRP considers customer demand, as well as replenishment parameters and the master production schedule to produce a material requirement plan. This plan can be reviewed, edited, and processed by a user. Production orders can be combined with other parameters for both planned and committed actions.


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Post by Eilish Laidlaw

Eilish completed a graduate scheme in software consulting before moving into sales. Having worked across a variety of ERP solutions Eilish prides herself in helping customers find and make the most of the best software solutions for their business.