Order to Cash Cycle with Master Planning and Production Order – MS Dynamics 365 For Operations
In this blog, we will demonstrate three processes together:
- Order To cash
- Master Planning
- Production control and execution
Let’s say that ABC Company receives a make-to-order request from a customer. The sales manager creates a sales Order for 10 quantities and the production in-charge runs master planning and schedules production order against it. On completion of the production process, final inventory is transferred to the warehouse from where it will be dispatched to the customer. Now, let’s take this scenarios step-by-step in Microsoft Dynamics 365.
Note: In this scenario, we have taken finished goods type as a formula to explain the concept. We also touch upon the concept of co-products and have divided “cost of production” between finished products and co-products in the ratio of 90:10.
- Go to Sales & Marketing
- Click All Sales Orders.
- Select the customer from drop down.
- Enter the “site” and “warehouse”
- Click Ok.
- Sales order form will be opened.
- Click Add line for creating a sale order line.
- Select the Item and its variant type.
- Enter the Quantity.
- Confirm the sales order.
- 11. Go to Master Planning.
- Run Master Planning.
- Select the type of Master plan.
- Click ok.
- Go to Planned Orders.
- Search the item through “item number” or “plan type”.
- Select Planned Order and Click “Firm” to convert the planned order into a production order.
- Go to “All Production Orders” to proceed with the production order.
- Search the Production order.
- System will automatically mark the Production order status to “Schedules”.
- For checking the total cost of production. Go to Manage cost and click View Calculation Detail.
- Click Costing sheet.
- If the user wants to check the Co-Product cost amount, Click “Co product”.
- Then click “costing sheet”.
- Go to schedule.
- Click schedule job.
- System will check the resource capacity and schedule the job as per the resource capacity.
- User can see the completion time of production order through Gantt Chart.
- Release the production order.
- System will mark the production status to released.
- Now user can start the production order.
- Click Start.
- Enter the starting quantity.
- Select the From operation and To operation.
- Mark start production order.
At this stage, the on-hand quantity of sales item is zero.
In our scenario, master planning will be run to suggest a planned order against sales order. To run Master planning:
User can schedule the job by following the below step.
Two journals will be created by system as the Production start process will be completed as below:
- Picking journal (For consuming the raw material).
- Route Journal (For Labor working hours).
User has to post these journals manually one by one before performing the report as finished operation.
Now user is able to Performed the Report of finished operation.
As the Report as, finished journal will post. System will mark the production status to “Report as finished” and create a quarantine order automatically if the quarantine check box is mark in item model group.
User can also run quality order against of production order, but in my scenario, I just ran the quarantine order process. To finish the quarantine order.
User can also split the quarantine order in partial quantity as well.
Now Performed the end operation.
So, the production process against of sales order has completed and the production order has marked to end as shown in pic.
We can see here the available quantity is the same as we produced through the production order.
Now the next step is to move produced quantity from production warehouse to dispatched warehouse. It can be done by following two methods:
- Transfer Journal
- Transfer Order.
I’m using the transfer journal option to move item from production warehouse to dispatched warehouse.
Finally, the goods have come to the dispatched warehouse and order can now ready to dispatch.
For Posting the invoice
Disclaimer: The views expressed here are solely those of the author in his private capacity and do not in any way represent the views of Systems Limited, or any other entity related to Systems Limited.