Introduction Hello Everyone! In this blog, I will explain the Quality Management Process in Dynamics 365 Supply Chain Management and cover all the necessary setups required for Quality Management. Imagine a supply chain where every component, every process, and every product meets or exceeds customer expectations. Where defects and delays are minimized, and customer satisfaction soars. This is the power of quality management in Dynamics 365 Finance and Operations. For this blog, I have taken the example of an Automobile company that purchases the Product Brake Pads from the Vendor. When car brake pads are received in a warehouse against a purchase order, they undergo specific quality checks, similar to other products. Setup required for Quality Management Process in Dynamics 365 SCM The first step is to enable the Quality Management parameter. The pathway for that is: Inventory Management>Set Up>Inventory and Warehouse Management Parameters. Step 1: Creation of Test Instruments: Depending on the Product Type we must create different Test Instruments to conduct quality tests on the Product. So here I need to create these instruments for my Product Brake Pads. To create Test Instruments, Go to Inventory Management>Set Up>Quality Control>Test Instruments. Now click on New from the top of the screen then enter the Name, Description, and Unit of the Instrument. Here I have created three different Test Instruments for the product Brake Pads. The Precision here is linked to the Unit which can be edited in the unit setup. Step 2: Creation of Tests: Now, the next step is to create the Tests in the system which I will use to check the Quality of the product Brake Pads. So as per my requirement Brake pads will be Tested for the following tests. Note: There are two types of tests: To create Tests in the system, go to Inventory Management>Set up>Quality Control>Tests. To create a Test click NEW from the top of the screen. Then enter the name and description of the Test. Then select the Type and Test Instrument. Follow these steps to create all the required Tests in the system. Step 3: Creation of Test Variables: The Test Variables page allows you to configure, modify, and observe the potential results for a test variable linked to a qualitative test. When selecting an outcome as a test result, you assign a Pass or Fail status to each outcome to indicate whether the test has been passed or failed. It is always better to define a minimum of two outcomes that is one with a Pass status and one with a Fail status for each variable. There are no restrictions on the maximum number of variables or outcomes that can be specified. Moreover, multiple tests can utilize the same test variables to record results. To create Test Variables, go to Inventory Management>Set Up >Quality Control>Test Variables. Step 1: Click on NEW from the Action Pane at the top of the screen, then enter the name and description of the Variable. To make it easy to understand here the Variables are created similar to the Test name. Step 2: The next step is to enter the Outcomes. For that select the Variable and then click on Outcomes from the Action Pane which is at the Top of the screen. Step 3: In the Test Variable Outcomes page click on NEW from the top of the screen. Then enter the Name and Description of the Outcome. When the outcome is selected as a test result, choose either Pass or Fail to indicate whether the test has been passed or failed. Repeat Steps 1, 2, and 3 to create multiple Test Variables and their Outcomes. Item Sampling According to the Business Requirement you must specify the sample size for testing which can be indicated as a percentage or a fixed quantity. In this scenario, the entire quantity received in the stock from the Purchase Order will be selected for testing. So in this case I will establish item sampling for the entire quantity, representing 100% of the items. Full Blocking Parameter under Item Sampling The Full Blocking parameter is enabled on the basis of business requirements. For example, if I create the item sampling as 10% and if I receive 100 qty so among them only 10% qty will be taken for testing. In such a case if I enable the full blocking parameter, even though I will be testing only 10% of 100 qty the system will automatically block the rest of the 90% of the quantity as this option is enabled. But if this parameter is disabled then only 10% of the qty will be blocked for quality inspection and the rest of the 90% qty can be used for consumption. Per Updated Quantity Parameter under Item Sampling Enabling this feature ensures that a Quality order will be generated specifically for the quantity received in a Purchase Order, whether it is a complete or partial quantity. For example, Item sampling is set to 100%, If the Purchase Order quantity is 100 and the Per Updated Quantity parameter is enabled and if I received a partial quantity that is 50, in such a case the Quality Order will be generated for 50 quantity and not for 100 quantity as the Per Updated Quantity parameter is enabled. But if this parameter is disabled and if I receive a partial quantity of 50 the Quality Order will be generated for the entire 100 quantity. Now to Create Item sampling the pathway is Inventory Management>Set up>Quality Control>Item sampling. In the Item Sampling page click NEW from the Top of the screen. Then enter the name and description of the sampling that you want to create. In the above screenshot, you can see that I have created an Item sampling of 100%. Under the name and description field, you can see the Sampling Quantity field in which I have selected the Quantity Specification as Percent. You can either select Percent or Fixed Quantity depending on the business requirement. Here I have defined the value … Continue reading Quality Management Process in Dynamics 365 Supply Chain Management (SCM) – Part 1 →

In this blog, we will learn how to change a Product’s Product Number. For this blog, I have created a New Product, Hand Gloves with Product Number P-000015 and released it into the system. The Path for Changing the Product Number is: Product Information Management>Products>Products. Step 1: Click on Change Number under the Maintain tab. Here, my Product number is P-000015 which I will change to P-000020. Step 2: Enter the New Product Number and Click on OK. The above screenshot shows that the Product Number has now changed from P-000015 to P-000020. Note: It is recommended to rename only if no transaction exists for the product. If the Product already has an existing transaction, it is better to create a new Product.

In this Blog, we will learn how to Acquire a Fixed Asset from Purchase Requisition (PR). The method that we are using for this process is: Purchase Requisition > Purchase Order Creation > Purchase Order Invoice > Fixed Asset. Prerequisites In the fixed Asset Parameters, Under Purchase Order Enable Allow Asset Acquisition from Purchasing. Step 1: Create a New Purchase Requisition. Step 2: Click Add Line and add the Details such as Units, and Fixed Asset Category. Step 3: Submit and Approve the PR. Step 4: After Approval Click on Release Approved Purchase Requisition. Path: Procurement and Sourcing > Purchase Requisition > Approved Purchase Requisition processing > Release Approved Purchase Requisition. Step 5: Select the Approved PR and then click on Purchase Order. Step 6: Select the Vendor. Step 7: Now open the Purchase Order and enter the Amount. Step 8: Confirm the Purchase Order and post the Product Receipt. After Posting the Product Receipt we can see that the Fixed Asset number has been populated on the Line level and the status of the Purchase Order has been changed to Received and Confirmed. Now if we click on that Fixed Asset and then click on Books, we can see that the Fixed Asset has the status “Not yet Acquired”. Step 9: Post the Invoice to Acquire the Fixed Asset. Now if we check the Status of the Fixed Asset, it is changed to Open which means that the Fixed Asset has been Acquired. That’s it for this blog hope this will help you. Thank You!