Production Bills of Material (BOMs) in Dynamics 365 Business Central are essential tools for manufacturing engineers and operations teams. They help track the components required to launch new products, update existing ones, and manage iterative changes as production needs evolve.

However, users often encounter challenges such as confusion around how to update BOMs over time and when to create new versions versus updating the existing BOM line.

Drawing on nearly a decade of experience with Business Central and NAV, especially in manufacturing, I’ll walk through how to set up BOMs, update them efficiently, and leverage advanced features for clarity and control in your processes.

Table of Contents

• Setting up a Production BOM
• BOM Versions
• Start and End Dates for Production BOMs
• Maintaining Clean BOM Lines
• BOM Functions in Business Central
• Best Practices for Production BOMs (Video)

Setting Up a Production BOM in Dynamics 365 Business Central

Creating a Production BOM in Business Central is a key step in defining how a finished product is assembled. The process is straightforward, enabling manufacturers to manage components, quantities, and production readiness.

Steps to Set Up a New Production BOM

1. Navigate to the BOM List Page

• Go to ‘Production BOMs’ under the Manufacturing module in Business Central.

2. Create a New BOM Header

• A new BOM header is created any time a new product is to be set up.

• Click ‘New’ to start a new BOM.
• Enter a Name and Description.

3. Add BOM Lines

• For each component, choose either:
  • Item (for raw materials or parts), or.
  • BOM (for subassemblies).
• Specify the Quantity Per.: how many units of the component are needed to produce one finished item.

4. Set the BOM Status

• New: Default status when a BOM is first created.
• Under Development: Use this status while making changes or testing.
• Certified: Indicates the BOM is finalized and ready for use in production orders.
• Closed: Marks the BOM as inactive, to be used for BOMs that no longer need to be used.

5. Assign the BOM to an Item Card

• Link the BOM to the relevant finished good item so it can be used in production planning.

Updating BOM Components

Common scenarios where you may need to swap out a BOM component include engineering changes, part substitutions, or adjustments to quantities based on production feedback. For instance, if a component becomes unavailable, a replacement must be created as a new Item to ensure inventory is tracked separately. The BOM should then be updated to include the new component, and the old one can be phased out.

Suppose you discover a heating element in your coffee machine BOM is defective. You have two options for replacing it:

• Creating a new version (for historical tracking), or
• Using Start/End Dates on BOM lines (for a simpler update).

Below, we’ll explore when and how to use each method.

BOM Versions: Managing Iterative Changes

Business Central’s versions feature lets you create iterative versions of a BOM under the same header, providing visibility into changes over time. This is especially helpful for tracking incremental updates, such as replacing a defective heating element with a new one or adjusting quantities based on production feedback.

How to Create and Use BOM Versions:

1. Set the BOM Status to ‘Under Development’, then navigate to ‘Versions’.

Note: When making changes to BOM lines, always change the status from ‘Certified’ to ‘Under Development’ before editing. Once changes are complete, certify the BOM to make it active again.

2. Click ‘New’ and then assign a version code, description, unit of measure, and starting date.

Business Central uses the starting date to determine which version is active. You can create and certify a version ahead of time, and once the start date arrives, it will automatically become the active version.

3. You can use the ‘Copy BOM’ function to duplicate existing lines, then make necessary changes, such as adding a new component or adjusting quantities.

4. Once you’ve made your desired adjustments, certify the new version to make it active. The system will use the version with the most recent starting date for production orders.

You can plan future changes by creating versions ahead of time with future starting dates. Business Central will automatically activate the correct version when the date arrives. You can verify that on the Production version, under Active Version:

Using Start and End Dates on BOM Lines

Start and End Date fields on BOM lines allow individual components to come into and out of effect based on date parameters. For example, to phase out a component:

• Add an End Date to the outgoing component.
• Add a new line with a Start Date for the replacement.

When a Production Order is refreshed, Business Central will automatically pull in the correct components based on these dates. This method is ideal for planned changes that need to take effect on a specific future date.

If you use Start and End Dates instead of versions, note that historical tracking is limited. Versions provide a clearer audit trail of changes over time.

Note: If the Start and End Date fields aren’t visible, you will need to personalize your BOM page to add these fields, using the Add Field to Page function in D365 Business Central.

Maintaining BOM Lines: Delete Expired Components

Over time, using Start and End Dates can clutter BOM lines and cause confusion. Business Central offers a ‘Delete Expired Components’ function to keep BOM lines clean:

1. Navigate to the Production BOMs page.
2. Click ‘Delete Expired Components’.
3. Input a date to Delete Before.
4. Click ‘OK’ to remove outdated lines.

Leaving expired components in BOM lines does not harm the system, but regular cleanup helps maintain clarity and efficiency.

Reminder: If this information should be kept for historical purposes, consider using versions instead so users can go back and review old versions.

BOM Functions in D365 Business Central

Business Central includes several advanced functions to streamline BOM management and give you better visibility:

Exchange Production BOM Item

This tool automates the process of swapping out a component across multiple BOMs. Instead of manually updating each BOM, you can exchange an item, set starting and ending dates, adjust quantities, and even create new versions automatically. This is invaluable for large-scale changes across hundreds of BOMs, saving time and reducing errors.

Production BOM Version Comparison

Compare different BOM versions side by side to quickly identify changes, such as adjustments in quantities or swapped components. This provides valuable visibility for audits and process improvements.

Multi-Level BOMs and BOM Structure Visualization

Business Central supports multi-level BOMs, where subassemblies themselves have their own BOMs. The system provides tools to visualize BOM structures, including exploded views that show all components and their relationships.

You can expand or compress BOM views to see parent-child relationships and calculate quantities per parent, giving you a clear understanding of what makes up each finished good.

Where-Used Functionality

The Where-Used function shows where a particular item or BOM is used across the system. This is useful for impact analysis when making changes to components, as it helps you identify all affected BOMs and finished goods.

Note: The function only displays items that are assigned and certified, ensuring you see only active, relevant data.

Best Practices for Production BOMs in D365 Business Central

For a complete walkthrough on versions, Start/End Dates, and best practices for Production BOMs in D365 BC, watch the recorded webinar:

Production BOMs are a foundational part of manufacturing in Business Central. Learning to use the advanced features like Versions, automated item exchange, BOM comparison, and Start and End dates will let you avoid common errors and keep your production running smoothly over time.

If you’re looking for Business Central support, training, expert advice, or implementations, learn more about our work as a Dynamics 365 Business Central Partner.