# Business Central Manufacturing Setup: Items, BOMs, Routings and Production Orders > Source: https://netray.co/erp-help/business-central-manufacturing-setup-bom-routing-production-order > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: ERP Help ## Short answer To run manufacturing in Business Central you configure Manufacturing Setup, create work and machine centers on a shop calendar, certify a production BOM and routing, set the item to Replenishment System Prod. Order with a manufacturing policy, then plan and run production orders. Manufacturing needs the Premium license, and evaluation demo data helps you learn the flow first. ## Kind how-to ## System dynamics ## Erp Microsoft Dynamics 365 Business Central ## Module Manufacturing / production orders ## Query business central manufacturing setup ## Alternate Queries - manufacturing setup in business central - manufacturing process in business central - business central manufacturing policy - business central manufacturing demo data ## Applies To Business Central online and on-premises, Premium edition (production orders). Field names can differ slightly between versions. ## Steps ### Set up manufacturing, in order **Items:** - Check the license. Production orders and capacity planning require the Premium plan, Essentials covers assembly only. - Open Manufacturing Setup and set number series for production orders, normal starting and ending time, and planning options such as Dynamic Low-Level Code and Combined MPS/MRP Calculation. - Create shop calendars and work shifts, then work centers and machine centers with capacity, unit of measure, efficiency and cost rates. - Create the production BOM: components with quantity per, scrap and unit of measure. Set its status to Certified when ready. - Create the routing: operations with work center or machine center, setup time, run time, wait time and move time. Certify it. - On the item card set Replenishment System to Prod. Order, assign the Production BOM No. and Routing No., and set Manufacturing Policy, Reordering Policy and Flushing Method. - Create a production order (Planned, Firm Planned or Released), run Refresh Production Order to explode the BOM and routing, and release it. - Post consumption and output with the production journal or through flushing, then change status to Finished and run cost adjustment. ## Sections ### The master data model **Body:** Manufacturing uses four ideas. Items are made from a production BOM (the components) and processed by a routing (the operations). Work centers and machine centers hold the capacity and cost rates, and shop calendars define when they are available. The BOM and routing must be certified before they can be used on production orders, so a new BOM that appears to be ignored is often still New. BOMs can include phantom components via BOM versions and sub-assemblies with their own BOMs, which the refresh explodes into lines. Versions let you change a BOM by date without breaking open orders. Routings can be serial or parallel, and each routing line contributes capacity needs that feed planning. ### Manufacturing policy, flushing and planning **Body:** Manufacturing Policy on the item decides how supply is created. Make-to-Stock plans from forecast, safety stock and reorder rules. Make-to-Order creates a production order for the demand (a sales line) directly, with a link between them. Choose it per item, because mixed environments are normal. Flushing Method on the item decides when components are consumed: Manual (you post them), Forward (when the order is released), Backward (when the order is finished), or with pick variations in a warehouse setup. Backward flushing reduces data entry but delays inventory accuracy, so match it to how reliable your reporting of completion is. Planning runs from the Planning Worksheet (Calculate Regenerative Plan) or the Requisition Worksheet for MRP and from Order Planning for demand-driven supply. Reordering Policy, safety lead time, lot sizing and dampener settings on the item and in Manufacturing Setup shape what MRP proposes. ### Production orders end to end **Body:** A production order moves through statuses: Simulated, Planned, Firm Planned, Released and Finished. Simulated and Planned are for what-if and early plans, Firm Planned protects the order from replanning, Released allows execution. Refresh recalculates lines, components and routing, scheduling backward from due date or forward from start. Execution posts consumption and output through the production journal, or by flushing. Capacity entries come from the routing and the output posting. Finishing the order moves WIP to inventory and creates variances if you use standard cost. For month-end, run the cost adjustment and post inventory cost to G/L so WIP and inventory values are correct. ### Demo data and learning **Body:** To explore, create a sandbox environment or a new company with the evaluation option that includes sample data (the advanced evaluation option includes complete sample data), then open the manufacturing items, BOMs and routings in the demo company. It is the fastest way to see a certified BOM, routing and production order without building master data first. For a real implementation, plan master data cleanup before the technical setup. Bad BOM quantities and routing times produce bad plans and wrong costs, and tools cannot fix that downstream. Many companies work with a Business Central partner experienced in manufacturing for the first rollout. ## Pitfalls - Forgetting to certify the BOM or routing, so the production order refresh finds nothing. - Running manufacturing on a license that does not include it. - Using backward flushing when completion is reported late, which leaves inventory wrong during the order. - Setting Make-to-Order on items that should plan from stock, creating unwanted production orders. - Loading BOMs and routings with guessed times and quantities, which poisons planning and costing. - Skipping cost adjustment, so WIP and inventory values do not reconcile. ## Ai Angle Manufacturing setup problems are usually about data: which BOMs are uncertified, which items lack a routing, where times look implausible. A private assistant connected read-only to Business Central (OData or API pages, run on your own infrastructure for on-prem) can list exceptions and explain planning results to planners. Master data changes stay with your team and are made in the normal client. ## Faq ### What does Manufacturing Policy mean in Business Central? **Answer:** It tells planning how to supply the item. Make-to-Stock plans from forecasts and reorder rules and builds stock. Make-to-Order creates a production order directly for the demand that triggered it. It is set per item and can also be set on stockkeeping units. ### Why can't I use my production BOM on a production order? **Answer:** The BOM probably has status New or Under Development. Production BOMs and routings must be Certified. Also check that the item's Production BOM No. and Routing No. are assigned and that the BOM version is valid for the date. ### Which Business Central license includes manufacturing? **Answer:** The Premium plan includes production orders, capacity planning and related features. Essentials supports assembly orders but not full manufacturing. Confirm current licensing with your Microsoft partner because plans change. ### Where can I find Business Central manufacturing demo data? **Answer:** Create a sandbox or a new company using the evaluation option with sample data, preferably the advanced evaluation option with complete sample data. It includes items, BOMs, routings, work centers and production orders you can open and test. ## Search terms business central manufacturing setup, manufacturing setup in business central, business central manufacturing process, business central manufacturing policy, business central production bom routing, business central production order, business central manufacturing demo data, business central flushing method, business central premium manufacturing --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json