Challenge Accepted: Model and Cost Caribbean Hot Sauce from Murray Fife

Dad joke: I just bought a TV with a broken volume button for 5 bucks... I couldn't turn that down.

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How It Started:

How It Ended:

Create the Product

1. Navigate to Product Information Management > Products > Released products.

2. Click New to create a new product.
   

   1. Product number: 8765309

   2. Product name: Caribbean Hot Sauce

   3. Product subtype: Product

   4. Product type: Item

   5. Product category: Accounting usually cares about this, choose how your environment is setup.

   6. Product image: This is usually when you upload a photo from marketing so that us users of Dynamics 365 can see the product when we hover over it and in other forms.

If you want more info on creating a product, click here.

Set up Product Dimensions

1. Click on Product dimensions and define relevant dimensions like Size, Color, Configuration if applicable.

If you want more info on product dimensions, click here.

Create the BOM / Bills of Materials (or is this a formula because we can't really technically reverse manufacturing on this finished good?)

1. Navigate to Product Information Management > Bills of materials > Bills of materials.

2. Click New to create a new BOM.
   

   1. Name: CHS_BOM

   2. Item number: 8765309

3. Add BOM lines for each ingredient:
   

   1. Example:

      1. Ingredient 1: Peppers (the spicy kind)

      2. Ingredient 2: Vinegar

      3. Ingredient 3: Salt

      4. Ingredient 4: Garlic

      5. Ingredient 5: Caribbean spices

      6. Ingredient 6: Something Murray adds to make it special

If you wanted more information about BOM or Formulas, click here.

Create Multi-Stage Route

1. Navigate to Production control > Routes > All routes.

2. Click New to create a new route.
   

   1. Name: CHS_Route

   2. Item number: 8765309
      

3. Click on Route details to define operations:

   1. Operation 10: Preparing Ingredients

      1. Resource group: Prep_Grp (assumes resource groups have been setup)

      2. Setup time: 10 mins

      3. Run time: 30 mins

   2. Operation 20: Cooking

      1. Resource group: Cook_Grp

      2. Setup time: 5 mins

      3. Run time: 450 mins (we like a low and slow method here)

   3. Operation 30: Bottling

      1. Resource group: Bottle_Grp

      2. Setup time: 15 mins

      3. Run time: 208 mins (assumes we are doing this at our house while watching The Lord of the Rings: The Fellowship of the Ring)

More information on routes on Microsoft Learn.

Define Overhead Costs

1. Navigate to Cost management > Costing versions.

2. Create a new costing version if necessary.

3. Define overhead calculation formulas and assign them to appropriate cost groups.

What are costing versions you ask? Great question, ask Microsoft Learn (or maybe a future blog post).

Define Cost Groups

1. Navigate to Cost management > Cost groups.

2. Create cost groups for material, labor, and overhead.

   1. Example:

      1. Material: Ingredients

      2. Labor: Direct Labor

      3. Overhead: Manufacturing Overhead

Microsoft Learn talks about Cost Groups in detail for you.

Assign Cost Groups

1. Navigate to Product Information Management > Released products.

2. Select 8765309 and assign cost groups to BOM lines and route operations.

No Microsoft Learn page here, this is just doing and connecting what we've made.

Calculate and Activate Costs

1. Navigate to Cost management > Item price.

2. Select the costing version and calculate costs for 8765309.

3. Activate the calculated costs.

No Microsoft Learn page here, this is just doing and connecting what we've made.

*this is where you would make a production order / batch order, run it through each stage and then ask Finance to check your work aka Murray.

See you next time,

Dynamics Dad

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