For long, Microsoft Dynamics AX has been the go-to ERP Solution for companies across the world. Its diverse capabilities, whether for Procurement and Sourcing, Project Managers and Accountants, Sales and Marketing Professionals, To Embed Images In Email Templates, Expense Management, Distributors, Insurance or Project Management have all been acknowledged very highly. The premier enterprise segment Microsoft Dynamics ERP is known better now as Microsoft Dynamics 365 for Operations and there are other capabilities in it as well such as BOM Creation and Calculation Groups for BOMs. Creating BOMs in the latest upgrade of MS Axapta is slightly different as to how it was in the earlier versions and can even deceive an experienced user if not handled with caution. In AX 2012, BOMs were created from the Released Product. After clicking on “Lines” in Engineering on the Action Bar at the top, the BOM screen would appear. The choice would then be made between “New” and “Create BOM”. Calculation Groups for BOMs and setting them up in the enterprise resource planning solution is a customization a Microsoft Dynamics Partner can guide you with. In order to run a BOM Calculation on Dynamics 365 for Operations, end users have to either set up calculation groups and assign them to individual items or set a default calculation group. Calculation settings from the calculation group are used subsequently as default values on the calculation page at the time of BOM calculation.
The default calculation group is required on the Inventory and Warehouse Management Parameters page or the product-specific calculation group is required on the Released Product Details page. The system looks for the calculation group setup on the Released Product Details page and in case does not find it there, looks on the Inventory and Warehouse Management Parameters page. If no Calculation group is found anywhere, users receive an error message during calculation. Calculation Groups contain policies for several models such as Cost Price, Sales Price and Warnings Checklist. Calculation Settings from the Calculation Group are used as default values on the BOM Calculation page at the time of BOM Calculation. There are multiple purposes of BOM Calculation Groups. 1. The Cost Price Model field indicates the source of a purchased component’s cost contribution data during the calculation of the planned cost of a manufactured item. 2. The Sales Price Model field indicates how the item’s data gets used to calculate a suggested sales price. Also, the item sales price of the cost group can be specified. 3. The Stop Explosion field indicates how a manufactured item should be treated as a purchased item for cost roll-up purposes during BOM calculation. Calculation Groups are defined under Predetermined Cost Policies Setup in Cost Management. These groups assigned with items help specify the cost and sales price of components as outlined by the calculation group. It is very important that a default calculation group is set up in the Inventory Management Parameters. This enables companies to have a standard cost group and profit setting for all items. Calculation groups assigned to items override default values set up in the Inventory Management Parameters. The default parameter can be set up at Cost Management > Inventory Accounting Policies Setup > Parameters > Inventory Accounting > Calculation Group. This was all about BOM Creation and Calculation Groups for BOMs in Microsoft Dynamics 365 for Operations.
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8/2/2022 10:02:51 am
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