How to get started with Non-conformance in D365FO

Non-conformances are for items that have a quality problem where a correction will make the product sellable or possible to return to a customer again. A non-conformance can be created from the “Non conformances” form. A non-conformance is associated with a non-conformance type of either Customer, Service request, Vendor, Production, Co-product production or Internal. The different association for a non-conformance is managed through the Non-conformance type.

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Nonconformance type

Customer:

Customer account number, sales order number, or a lot number of a sales order transaction. Nonconformances of this type are related to sales orders. Example: A customer filed a complaint, a customer made a return, or quality specifications weren't met.

Service request:

Customer account number, sales order number, or a lot number of a sales order transaction. Nonconformances of this type are related to service orders.

Example: Quality specifications weren't met, a customer filed a complaint, or machine maintenance is required.

Vendor:

Vendor account number, purchase order number, or a lot number of a purchase order transaction. Nonconformances of this type are related to purchase orders.

Example: The product was damaged, quality specifications weren't met, or the wrong product was received.

Production:

Production order number or a lot number of a production order transaction. Nonconformances of this type are related to batch orders or production orders.

Example: Quality specifications weren't met, machine maintenance is required, or the product was damaged.

Internal:

Quality-order number or a lot number of a quality-order transaction. Nonconformances of this type are related to on-hand inventory (for example, quality orders or quarantine orders). For example, the nonconformance could relate to the tests that are performed as part of a quality order or to an employee's concern about product quality.

Co-product production:

Nonconformances of this type are related to batch orders for co-products. Example: Quality specifications weren't met, machine maintenance is required, or the product was damaged.

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It is possible to create a non-conformance from different forms e.g. the “All production orders” form. If this is done the “Non conformance type” is set to “Production”, the “Reference number” is set to the selected production order and the “Problem type” is used to filter only those problem types that are associated with the “Non conformance type” “Production”.

The “Defective quantity” is the non-conformance quantity.

When creating a problem type it must be associated with a “Non conformance type” afterwards.

When a non-conformance is created it must be “Approved” before “Corrections” and “Operations” can be linked to it.

It is possible to “Refuse non conformance”, “Close non conformance”,? “Generate related nonconformance”, “Relate to other nonconformance” and “Change non conformance type” from this menu.

Cost for doing corrections is summed and shown under “Operations” this cost can be of the following types:

• Items - List of items that are consumed to perform the correction.
• Quality charges - List of charges that are incurred or billed out to external sources.
• Timesheet - A log of the time that each worker spends on the operation.

“Operations” can either be linked to a “Sales order” or “Purchase” based on the configuration of the “Operation”. You can select freely between all sales orders or purchase orders in the “Sales order” or “Purchase order” dropdown. The “Reason” explains why the operation is required. This is a description field “Free text field”.

Here the summarized cost is shown on the “General” tab for the “Operations”

After saving the “Operation” the “Items”, “Quality charges” and “Timesheet” become available.

On the “Items” form you can add certain items and quantity.

Under the “General” tab the “Cost” of the item added will be displayed. The cost is from the “Active” “Cost” on the item.

?? On the “Quality charges” form you can add certain “Charge code” and a manual typed “Charge value”.

The “General” tab contains the same information as the “Overview” tab.

On the “Timesheet” form you can add the “Worker”, “Operation hours” and “Sales order”. The field means the following things:

• Worker - The worker who did the work. By default, this field is set to the worker that is assigned to the current user.
• Operation hours - Enter the number of hours that were worked on the selected operation.
• Invoiced - Select this check box if the time has been charged to a customer or vendor on an invoice. It seems that this is just information without any functionality behind it.
• Sales order – Is a dropdown to select a sales order. It seems that this function is a simple dropdown without any functionality behind it. It could maybe be used to select the sales order, which is used to invoice the time sheet cost to a customer without knowing the idea behind this field.

The “General” tab is very similar to the “Overview” tab but contains a “Date” field. The “Date” field is the date when work was done. By default, this field is set to the current date.

The cost is calculated based on the “Hours” from the “Overview” tab and the “Hourly rate” from the “Inventory and warehouse management parameters”.

It seems that it is a manual process to invoice the cost related to a non-conformance to a customer or a vendor. This could be done by configuring a “Category” and setting the category up with an “Main account” under “Posting” in the “Inventory management” module like shown below.

And then use this category on the sales order or purchase order.

I am still trying to figure out where the non-conformance cost is posted in the “Posting” configuration. To collect and link the postings for non-conformance. ?

To help manage the correction, which needs to be performed on the item a “Correction” can be created and linked to the non-conformance.

The field on the “Correction” is:

• Diagnostic – Select the diagnostic type that identifies the type of correction that you're creating.
• Worker – Select the person who is responsible for the correction. It makes sense to use the same employee, which are selected on the “Operation” “Timesheet”.
• Correction priority – Select an option to indicate how the correction should be prioritized (Low, Normal, or High).
• Requested date – Enter the date when the corrective action was requested.
• Planned date – Enter the date when the correction is expected to be completed.
• Short term solution – Select this check box if the corrective action corrects the nonconformance only for a short time.

When the non-conformance is marked as complete. The quantity can be released to the warehouse. You can optionally create a quality order from a nonconformance by first performing an inquiry for quality orders, and then by creating the new quality order.

The following reports can be applied to the non-conformance area:

• Related operation items
• Related operation charges
• Related operation time sheets
• Non conformance
• Non conformance tag
• Corrections

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To learn more about Non-conformance in D365FO like how to:?

• Apply non-conformances to various processes in D365FO.
• Track non-conformance cost.
• Configure non-conformance to create valuable data.

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Reach out and get help.?