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Use production orders to manage the conversion of purchased materials into manufactured items. Production orders route work through various work or machine centers on the shop floor.
Before they start production, most companies do supply planning, typically once a week, to calculate how many production orders and purchase orders they need fulfill sales demand. Purchase orders supply the required components according to the end item's bill of materials (BOM).
Production orders are central components in manufacturing, and contain the following information:
Production orders are the starting points for:
You can create production orders on an order-by-order basis manually on the Production Order page, or generate them from the Sales Order Planning or Order Planning pages. You can also create multiple orders from the Planning Worksheet page.
You create production orders using information from:
Production orders are automatically reserved and tracked to their source when you create them from:
To learn more, go to Track Relations Between Demand and Supply.
If you create production orders by other means, they aren't automatically reserved and tracked.
A production order can have one of the following statuses:
The status of a production order controls what you can do with it, and the form and content of the production. Production orders display on different pages according to their status. You can't change the status of a production order manually. To change the status of an order, use the Change Status action on the production order or use the Change Production Order Status page.
A simulated production order is unique because of the following characteristics:
A planned production order is unique because of the following characteristics:
A firm planned production order is unique because of the following characteristics:
The released production order is unique, based on the following characteristics:
A finished production order is unique, based on the following characteristics:
After you create and schedule a production order, you must release it to the shop floor so that work can start. While you work on an order, you record:
You can record this information manually or through automatic reporting. The method depends on the selection in the Flushing Method field on the item and work center.
Business Central offers options for how to record material consumption. For example, you can record material consumption manually, which can be useful if you often substitute components or generate more scrap than you expected.
Consumption of materials can be processed through the consumption journal, or Business Central can record it automatically, which is known as automatic reporting (flushing). The Manual, Forward, and Backward reporting methods are available.
Manual consumption reporting uses consumption journals to specify material picking.
Forward consumption reporting assumes the expected quantity of all materials for the entire order is consumed at the release of a production order, unless you use routing link codes. When you use routing link codes, the material consumed after the start of the operational step is recorded in the output journal. To forward flush the entire production order, you need to do two things:
Backward consumption reporting records the actual quantity of all material picked or consumed when the status of a production order is changed to Finished, unless using routing link codes. When you use routing link codes, the material is consumed after a quantity of the parent item is recorded for the operational step in the output journal.
When you refresh the production order, the flushing method is copied from the item card. The flushing method for each production order component controls how and when you record consumption. Therefore, it's important to note that you can change flushing method for specific items directly on the production order. To learn more, go to Flush Components According to Operation Output.
You can track the time spent working on a production order and the quantity produced. This information can help you determine the costs of production. Also, manufacturers who use a standard costing system might want to record actual information in order to help them develop better standards.
Output can be processed through output journals, but can also be recorded automatically. Business Central copies the flushing method from the machine center or work center card to the production order routing when refreshing. As with material consumption, there are Manual, Forward, and Backward reporting methods for output.
The Manual method uses the output journal to specify time consumed and quantity produced.
The Forward method records the expected output (and time), which is automatically recorded at the release of a production order. Routing link codes aren't a factor in the forward flushing of the output.
Backward method records the expected output (and time), which is automatically recorded at the finish of a production order. Routing link codes aren't a factor in the back flushing of the output.
You can use any combination of automatic flushing and manually recorded information for both consumption and output. For example, you might want to automatically forward flush components, but still use a consumption journal to record scrap. Similarly, you might want to automatically record output, but use an output journal to record scrap of the parent item or extra time spent on the order.
Finally, if you enter consumption and output manually, you need to determine the sequence in which you're going to record this information. You can record consumption first and use a shortcut method to enter the information, which is based on expected quantity of output. Or, you can enter output first, using the Explode Routing function. You would then record consumption based on actual quantity of output.
The Production Journal combines the functions of a consumption journal and output journals into one journal, which is accessed directly from the released production order.
The purpose of a production journal is to provide a single interface for you to register consumption and output from a production order.
Production journals have a simple view and provide you with the ability to:
Production journals do many of the same things as consumption and output journals. Dimensions, item tracking, and bin contents are handled in the same way.
However, production journals differ from the consumption and output journals in the following ways:
In the production journal, consumption quantities are posted as negative item ledger entries, output quantities are posted as positive ledger entries, and times spent are posted as capacity ledger entries.
Manufacturing
Setting Up Manufacturing
Planning
Inventory
Purchasing
Work with Business Central
Events
Power BI DataViz World Championships
Feb 14, 4 PM - Mar 31, 4 PM
With 4 chances to enter, you could win a conference package and make it to the LIVE Grand Finale in Las Vegas
Learn moreTraining
Module
Manage production orders in Dynamics 365 Business Central - Training
Explore production order statuses and learn how to create, schedule, change, and process a production order in Dynamics 365 Business Central.
Certification
This exam measures your ability to accomplish the following technical tasks: configure products; configure production prerequisites; implement production methods; configure production control; and implement additional supply chain management features.
Documentation
Subcontract manufacturing - Business Central
This article gives an extended overview of the extended functionality of subcontracting, including work center fields and routing.
Register Consumption Output for Prod Order - Business Central
This topic explains how to register consumption and output for a released production order line viewed on the Production Journal page.
Execute Production - Business Central
When demand is planned for and the materials are issued according to production BOMs, the production operations can start.