For Dynamics 365 Finance & Operations (D365FO) users in manufacturing and supply chain industries, managing batch inventory and linking it to production orders is not just a feature — it’s a necessity. This functionality in D365FO empowers businesses to maintain accurate inventory records, streamline production processes, and ensure compliance with regulatory standards.
Here’s a closer look at key capabilities and how they can enhance your operations.
Key Features and Benefits
Batch Tracking and Inventory Management
Efficient inventory management starts with reliable batch tracking.
Traceability
Track the history of batches — from production to distribution — to help with quality control, regulatory compliance, and faster product recalls. This is especially useful for industries where safety and quality are paramount.
Inventory Accuracy
Batch tracking helps businesses minimize waste by enabling strategies like FIFO (First In, First Out) and FEFO (First Expired, First Out). These approaches ensure that older or near-expiry inventory is prioritized for use, maintaining efficiency and reducing loss on perishable stock.
Linking Batch Inventory to Production Orders
Optimize production processes and leverage real-time inventory insights.
Batch Reservation
One standout feature of Dynamics 365 Finance & Operations is the ability to automatically reserve batches for production orders. The system can identify and allocate the oldest eligible batch with sufficient stock, ensuring materials are used before they expire or become obsolete.
Production Order Visibility
When production orders are linked to specific batches, teams gain greater visibility into material availability and usage. This link allows smoother scheduling, reduces bottlenecks, and ensures all allocated resources align seamlessly with production needs.
Operational Efficiency Through Automation
Say goodbye to manual errors and time-consuming processes.
Automation Reduces Errors
Automatic batch reservations eliminate human mistakes, improve accuracy in batch handling, and speed up inventory transactions. Businesses can set predefined criteria to guide these automated processes, focusing on efficiency and reducing risks.
Better Cost Tracking
Linking batch inventory to production orders supports improved cost management. It enables D365FO users to calculate and monitor variances between estimated and actual production costs, providing valuable data for financial reporting and cost control efforts.
Quality Control and Regulatory Compliance
Ensure compliance and maintain high product standards.
Regulatory Safety & Compliance
Batch tracking makes compliance with industry regulations straightforward by offering detailed traceability of batches. From ensuring raw material quality to monitoring end-product performance, this feature keeps your operations on track and compliant with legal standards.
Enhanced Product Quality
By analyzing batch data, businesses can identify high-performing batches and refine supplier or raw material selection. Over time, this continuous improvement enhances product consistency and overall quality.
Why Does This Matter?
For Dynamics 365 Finance & Operations users, integrating batch inventory management with production orders isn’t just about convenience — it’s about unlocking business potential. You’ll see improvements in operational efficiency, cost control, quality assurance, and customer satisfaction. Managing production orders with real-time batch inventory insight ensures that every resource is maximized, from raw materials to financial investment.
D365FO isn’t just a tool — it’s a strategic partner for streamlining operations across your supply chain. Whether you manage perishable goods, complex manufacturing workflows, or large inventory volumes, the ability to link batch inventory to production is an essential feature that drives results.
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