Tracking Non-Conforming Material in Microsoft Dynamics NAV

I am often asked how to track non-conforming material in Dynamics NAV.

There is no formal NCMR (Non-conforming Material Report) functionality in Dynamics NAV, but I have handled non-conforming material by creating a location named MRB (Material Review Board) and moving material in and out of that location. Some people would name this location “Quarantine”, especially in the life sciences industry.

Figure 1 – Create a Location Card named Material Review Board (MRB) for non-conforming material

When non-conforming material is found in purchase receiving or during the production process, I use the Item Reclassification Journal to move the material out of the main location to MRB.

Notice that I have used the NCMR number as the document number.

Figure 2 – Use the Item Reclassification Journal to move non-conforming material to the MRB

One of the benefits of using this separate MRB location is that it can be considered a “non-nettable” location when MRP is run.

After the Material Review Board has met and decided on the disposition of the material, the same NCMR number as the document number can be used to move the material to the appropriate location or to dispose of the material, which will provide an audit trail of the NCMR material.

For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.