Formula Creation – Round Up Feature Review in Dynamics AX 2012

Posted on: July 20, 2018 | By: Jarrod Kraemer | Microsoft Dynamics AX/365

Authored by: Dave Occhionero

While working with one of our clients, we ran into issues with units of measure on certain inventory items. The unit on a component item in a formula allowed two decimal places, but the formula called for the component to be an integer. This formula even contained a yield which required additional calculations on the formula. For the most part the calculated quantities would display as integers, but on occasion a production planner would arbitrarily increase MRP's recommended quantity. This caused issues on the calculated component, and the issue was reflected on the production pick list. As you can see from the below example, the proposed quantity was a fraction instead of a whole number.

The team members on the production floor would have to make decisions on what item was appropriate to pick. This scenario brought up a few high-level questions.

Why are we keeping two decimal places for this unit measure?

Do we need to reassess how we inventory the component item?

Since we still needed to conduct analysis on the two questions, we proposed using the round up functionality on the formula. This feature allowed the component item to be rounded up to the nearest integer. To round up a formula to the nearest integer find the formula under Inventory Management> Formula. Click the Lines button, and navigate to the Setup tab. Change the Rounding-up field to Quantity and enter 1 as the multiples.

Now the pick list shows clean integers:

The multiple field can also be setup to round to certain multiples. Using this example, I modified line 2 to have a multiple of 5 and line 5 to have a multiple of 8. The proposed pick list changes to reflect the new rounding rules:

This functionality helps when picking a quantity that differs from an established stocking rule. This also allows for proposed quantities when an item has a particular order quantity. As an added benefit, this functionality allows users to account for those scenarios where you must pick a quantity that may not fully consume the item. The example Microsoft always uses is a can of paint. The order may call for two cans, but the user will only use one and a half cans, and the rest is scrapped. This scrap can be accounted for on the work order.

I have also seen companies that use the Consumption rounding piece. This functionality behaves similarly to the Quantity selection, but allows you to round up if there is a built-in conversion factor on the component piece. For example, if we use a tiny amount of an item such as a gram, but that item is stocked in Kilograms, it may be easy to round up to the nearest .01 of a kilogram on a production order. If that is the case, select consumption, and enter 10 on the multiple field. A < 1-gram component will then show up as .01 in inventory transactions.

For additional information please feel free to reach out to us at info@loganconsulting.com or (312) 345-8817.


All the best!
Logan Consulting
www.loganconsulting.com



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