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  • AutorenbildPedro Rodriguez

Bill of materials as Kits in Dynamics 365 Finance/SCM

Aktualisiert: 18. Okt. 2021

Our fictive wind turbine manufacturing company mainly produces nacelles for their own onshore wind turbine projects but recently an agreement generated the requirement of selling nacelles directly to the customer.

We have nacelles in the system represented as BOM items that can be used at our production orders but due to this new requirement, we need to be able to sell that item through sales orders.

So lets start creating a sales order with one of our nacelles to see what the system does.

We will use the item RM00001, that has the following BOM, which consists on 1 hub, 1 gearbox, 1 generator, 1 nacelle cover and 1 service for some needed outsourcing on the item.

We create one sales order to customer Naturwerke AG with 1 unit of the required BOM item.

Here we can use the functionality a the sales lines, Sales order Line, EXPLODE, Bom lines.

After selecting the option, we are shown a dialog where we can select with parts of the BOM we want to be exploded on the sales line. We select here everything apart from the service item.

After accepting, the sales order contains now the the exploded BOM lines, being the original line cancelled with quantity 0.

This solution would allow us to do the picking of the items before the packing slip, but on the packing slip and invoice we will see the exploded bom lines, on the invoice we will get the price corresponding to everyone of the bom lines instead of the price that we have on the bundle/kit item. That would the customer and/or the finance department not like too much.

We can proceed with the picking using picking registration or just generate the picking work at the Warehouse Module.

After that we can post the packing slip.

Below we see the generated packing slip. We see in fact that only the BOM lines are displayed.

And below the generated invoice.

From here when sales and finance department come to you, yelling that would not work, you have other options.

Option 1

Mark BOM item as Auto-Report as finished.

On this option we simply set the Auto-Report as finished option at the BOM item RM0001 to Yes at the Engineer tab in Released Items. This option will allow you to have just the BOM item at the sales order, generating a BOM journal automatically during Packing Slip. The disadvantage of this option is that you lose control of the picking process and you would need a very detailed configuration of the BOMs in order to make the system know from where to pick the items when automatically registering the BOM journal.

Option 2

Use that new Bundle option at released items that comes with the new Revenue Recognition module in Dynamics 365.

This is a surprise new feature that is hidden at the new Revenue Recognition module in Dynamics 365. For long Kits/Bundle solution in Dynamics Ax/365 was considered not complete or just a GAP and here we have included some development it was done to cover this GAP.

First we need to activate the Revenue Recognition module if that is not already activated. We find it at License Configuration, in General Ledger section.

After activating the Revenue Recognition module we will see the field Bundle at Released Items. We activate it for our item RM00001.

We create a sales order for this item and confirm the sales order. When a BOM item is activated as Bundle, the BOM will be automatically exploded on the sales order after Sales Order confirmation.

Here we can proceed with the picking and packing slip like in the former case, but the difference we see on the invoice. We get only 1 line with the the BOM item and its original agreed sales price with the customer, and not one line per BOM component and the price of each of the items like in the former case.

Using this bundle option, when the BOM is exploded after confirming the sales order, you can see that the total of the price for the BOM components on the sales order make the total of the price for the BOM item. The price gets allocated to fit the bundle price.

If you want to get deeper on product Kits/Bundles for your projects I have prepared for you here below a relation of links that will be helpful for you.

Bill of Materials as Kits in Dynamics 365 for Finance & Operations

Auto-report as finished in a Retail scenario

Bundles (Revenue recognition)

Revenue Recognition: usage of Bundle

Revenue Recognition: Part -1(Bundle) in Microsoft Dynamics 365 Finance and Operations

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