Production management in Business Central Cloud

Microsoft Dynamics 365 Business Central helps manufacturing companies consolidate production, materials, inventory, procurement, capacity, finance, and reporting into a single, integrated ERP solution.

With production management in Business Central, you gain a better overview of the entire production flow—from planning and material requirements to finished goods, inventory, and financial tracking. This makes it easier to manage production on an ongoing basis and respond in a timely manner if changes occur in capacity, delivery times, materials, or costs.

Business Central is not a standalone production planning system or an MES system, but an ERP solution that integrates production, inventory, purchasing, sales, and finance into a single system. This provides a strong foundation for manufacturing companies that want to align their day-to-day operations with financial management—and that also want to be part of Microsoft’s ecosystem, which includes Power BI, Power Platform, AI, Copilot, and future agent-based capabilities.

At Vektus, we have extensive experience with the manufacturing module in Business Central. We help manufacturing companies create solutions in which planning, production, inventory, and finance are closely integrated.

Learn more about how we develop solutions for manufacturing companies

Get a handle on production

In manufacturing companies, it is essential to keep track of bills of materials, production routes, materials, capacity, production orders, inventory, and costs.

Business Central consolidates key production data in one place, giving you a better foundation for planning, producing, and following up. When production data is linked to inventory, purchasing, sales, and finance, it becomes easier to see whether production is progressing as expected or whether action needs to be taken in a timely manner.

For example, this could involve a shortage of materials, production bottlenecks, changes in delivery times, capacity challenges, or discrepancies between expected and actual costs.

Typical challenges Business Central can help with

Lack of an overview of materials and inventory
A Lack of Coherence Between Production and the Economy
Production Bottlenecks
Challenges in Capacity Planning
Changes to delivery times or missing components
Variances Between Expected and Actual Production Costs
Limited insight into cost of goods sold, inventory flow, and gross margin
Lack of traceability for goods, components, or finished products

Which companies use production management in Business Central?

Business Central is used by many types of manufacturing companies. These include, among others, industrial manufacturing companies, companies that manufacture machinery and technical equipment, electronics manufacturers, food companies, furniture manufacturers, assembly companies, and companies that produce made-to-order goods.

What these companies have in common is the need to manage production, materials, capacity, inventory, purchasing, and finances in a single, integrated system.

Learn more about how we develop solutions for manufacturing companies

Business Central cloud_produktionsvirksomhed

AI, Copilot, and the future of production management

AI, Copilot, and agents are a key focus area in Microsoft’s development of Business Central and the broader Microsoft ecosystem. When it comes to production management, the goal is not to replace professional judgment, but to provide better insights, a faster overview, and new opportunities to work more intelligently with data and processes.

When production data is properly structured in Business Central, it becomes easier to work with reporting, automation, and decision support. This can include, for example, better insight into material requirements, capacity, production costs, inventory, variances, and planning criteria.

Production management features in Business Central

Business Central includes a number of features that support production management and production accounting.

Among other things, you can work on:

Bill of Materials and Production Bills of Materials
Routes and Production Processes
Machining Centers and Machine Shops
Production Orders
Material Consumption and Capacity Utilization
Planning for Materials and Resources
Inventory Management and Product Flow
Cost of Goods Sold and Production Costs
Sales orders and purchases related to production
Serial Numbers, Lot Numbers, and Traceability
Reporting and Analysis in Power BI

These features provide better structure in both simpler production environments and more complex production processes.

Many manufacturing companies supplement the standard features with select apps designed for manufacturing when they need expanded planning capabilities, a graphical overview of production, CAD integrations, advanced inventory management, reporting, or industry-specific functionality.

At Vektus, we work exclusively with vendor-independent apps because this gives you the greatest flexibility and independence from any single provider.

From need to finished product

Business Central supports the production process from the moment a need arises until the item is manufactured, placed in inventory, or delivered to the customer.

We work with bills of materials, routings, and production orders to ensure that materials, work processes, and resources are planned and recorded correctly. At the same time, consumption can be tracked on an ongoing basis, giving you insight into material consumption, capacity utilization, and production costs.

This provides production management, purchasing, warehousing, the finance department, and senior management with a common data foundation, making it easier to manage production based on facts rather than gut feelings.

When production management becomes complex

Production management often only becomes truly valuable when the solution reflects the reality of the business. This can involve numerous variants, complex bills of materials, subcontractors, traceability, cross-capacity planning, warehouse locations, quality, advanced reporting, integrations with other systems, or new possibilities with AI, Copilot, and automation.

This is where experience makes a difference.

Vektus is one of the top Business Central consulting firms in Denmark, with extensive experience in manufacturing solutions. We know where manufacturing typically becomes complex and how to configure Business Central so that the solution supports production management, inventory, procurement, finance, and day-to-day operations.

If you need additional functionality, you may want to consider one of the many vendor-independent apps, such as graphical planning, JobManager, CadConnect, etc.

Learn more about apps for Business Central

Learn more about apps for Business Central

At Vektus, we specialize in Business Central. We help you make the most of the standard features and assess where vendor-independent apps, integrations, targeted customizations, Power BI, Power Platform, AI, Copilot, or agents create real value.

With Vektus as your partner, you’ll have specialists who understand both Business Central and the practical requirements of production management.

Learn more about Vektus

Should we go over your production processes?

Would you like to have better control over production, materials, capacity, inventory, and finances in Business Central?

At Vektus, we help you create a production solution that provides a clear overview, improves follow-up, and creates better alignment between production and finance.

Frequently asked questions about production management in Business Central

When companies work with production management in Business Central, a number of questions often arise: Where should we start? What provides the most value? How do we ensure success?

Here, we’ve compiled answers to some of the questions we most frequently encounter in our conversations with customers.

1. Can Business Central be used for production management?

Yes, Business Central is used for production management, where bills of materials, routings, production orders, materials, capacity, inventory, and financials must all be integrated.

2. Can you work with bills of materials in Business Central?

Yes, Business Central supports production bills of materials, so you can define which materials and components are used in the production of an item.

3. Can Business Central handle production orders?

Yes, Business Central handles production orders, allowing you to plan, record, and track material consumption, capacity utilization, and costs in production.

4. Can Business Central be used for capacity planning?

Yes, Business Central supports capacity planning through work centers, machine centers, and routes. This makes it possible to plan production based on the available resources and processes.

5. Can Business Central support traceability in production?

Yes, Business Central supports traceability using, among other things, serial numbers and lot numbers. This is relevant for companies that need to track goods, components, or finished goods throughout the production process.

6. What role do AI, Copilot, and agents play in production management?

AI, Copilot, and agents are playing an increasingly important role in Microsoft’s ecosystem and can create new opportunities for insights, automation, and decision support. In the context of production, the focus is particularly on making better use of data, gaining a comprehensive overview, and assessing where technology can support processes such as reporting, planning, follow-up, and automation.

7. Is Business Central the same as an MES system?

No. An MES system is typically used for detailed control and tracking directly on the production floor. Business Central is an ERP solution that integrates production, inventory, purchasing, sales, and finance. In some companies, Business Central stands alone, while others supplement it with apps, integrations, or specialized solutions.

Would you like to hear more?

If you would like more information or have any questions, please feel free to contact us.

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Production management in Business Central Cloud

Get a handle on production

Typical challenges Business Central can help with

Which companies use production management in Business Central?

AI, Copilot, and the future of production management

Production management features in Business Central

From need to finished product

When production management becomes complex

Learn more about apps for Business Central

Should we go over your production processes?

Frequently asked questions about production management in Business Central

Would you like to hear more?

Call or write to us

Contact us here

Do you have any questions? Send us an email or give us a call