Assembly Orders in Microsoft Dynamics NAV 2016

Today what I wanted to go through is Assembly Orders. In NAV when you need to put together an Item you have basically two ways. One of them is going through a traditional manufacturing Production Order and the other way is actually using Assembly Orders.

So assembly orders are actually a little bit simpler than production, so if you have just a light kitting inside the warehouse happening, nothing serious, like you’re measuring capacity or anything like that then Assembly Orders is probably the way to go. Now this module used to be called Kitting in NAV now it’s called Assembly Orders and it’s actually really nice.

So I’m going to go ahead and create a new Item. So the issue that we have at hand right now is that we want to create a gift bag for our Coffee Mug International company and in that gift bag we are going to have a coffee mug and coffee beans and we are going to wrap it up nicely.

So we’re going to put in some labor there. I’m going to create an item called Gift Bag and it’s going to be Coffee Gift Bag, and I’m going to sell it in Eaches. I’m going to pick the Miscellaneous Item category, you can obviously pick whatever you want, but it just quickly puts in the posting groups.

The costing method I’m going to set that as Standard because this is a made item and I want to roll up the costs of the ingredients when I’m actually making this. It doesn’t have to be Standard but in this case I’m going to make that Standard. And the replenishment system is going to be assembly, and so it will roll up the costs, and whenever there is a need for the product the system is going to assume that we make it with the Assembly Orders.

So over here in Navigate if I go all the way up and I go into Assembly BOM on the right hand side, I get into the bill of material for the item. This is not the production bill of material this is a different bill of material specifically for assemblies. And here I want to put in the standard coffee mug we have which is a very innovative name for that, and I’m also going to put in the coffee beans.

So right here, one pound and then I am going to pick Resource, which is the labor needed to put this together. Linda is going to be putting this together for us and it’s going to take her, let’s see - 15 minutes . so a quarter of an hour to put together each bag - it’s really nicely wrapped.

And now I have my Assembly bill of material. Notice that my cost is zero but what I can do is actually calculate the standard cost and now it gets updated with the cost of the ingredients. So that’s sort of a nice feature for standard costing the item out. Now I close this out, now I have an assembly bill of material for this item.

Let’s see how that works on a Sales Order for example. If I go ahead and get into Sales Orders and create a new one to The Cannon Group, and they are usually overdue and that’s fine. I’m going to put the gift bag on there from the Blue Location; we are going to make 10.

It’s going to tell me I don’t have enough which is fine, and now I have this field here called Quantity to Assemble to Order. And I can go ahead and say I am going to make them, so put 10 here and it gives me a due date issue because it takes time to get this done, which is fine.

I’m not really concerned about the dates at this time but the important part is the system automatically when I hit the 10 here created Assembly Orders. If I go here into Navigate, Assembly Orders, I can see I have an Assembly Order and if I take a look at that, it has already created a special order to put together 10 coffee mugs...or 10 gift bags, sorry. And this can of course can be issued to the warehouse to process, we can print out tickets etc, etc.

So right now this is set to Assemble to Order and that’s sort of an important fact because what that means is when I post this order, when I actually ship the sales order, it will automatically make the product.

So we are not really concerned with posting anything inside the warehouse, we want to just all to post as I ship. And so I close out here and here, and I go ahead and say Release, and now I’m going to post this and ship it, and notice that it’s actually posting the assembly.

Now, if I go back into the Assembly Orders and take a look at this, now I can see that it has consumed the coffee and the cups and the hours for Linda, and all of the costs involved. I can also take a look at the particular item here and look at the entries, and now I can see that it posted an assembly and then shipped out the product. And that’s pretty much how it works with the Assembly Orders.