1. In the Search box, enter Work Centres, and then choose the related link.

2. Create a new work centre card. On the Home tab, in the New group, choose New.

3. In the No. field, enter a work centre number.

4. In the Description field, name the work centre.

5. In the Work Centre Group field, select the higher-level resource grouping that the work centre is organised under.

6. Select the Blocked field if you want to prevent the work centre from being used in any processing. This means, among others, that an item produced at the work centre can not be posted from a production journal. For more information, see How to: Register Consumption and Output.

1. In the Direct Unit Cost field, enter the cost of producing one unit of measure at this work centre, excluding any other cost elements. This cost is often referred to as the direct labour rate.

2. In the Indirect Cost % field, enter the general operation costs of using the work centre as a percentage of the direct unit cost. This percentage amount is added to the direct cost in the calculation of the unit cost.

3. In the Overhead Rate field, enter any non-operational costs, for example maintenance expenses, of the work centre as an absolute amount.

4. The Unit Cost field contains the calculated unit cost of producing one unit of measure at this work centre, including all cost elements.

   Unit Cost = Direct Unit Cost + (Direct Unit Cost x Indirect Cost %) + Overhead Rate.

5. In the Unit Cost Calculation field, define whether the above calculation should be based on the amount of time used: Time, or on the number of produced units: Units.

6. Select the Specific Unit Cost field if you want to define the work centre’s unit cost on the routing line where it is being used. This may be relevant for operations with dramatically different capacity costs than what would normally be processed at that work centre.

7. In the Flushing Method field, select whether output posting at this work centre should be calculated and posted manually or automatically, using either of the following methods.

   Option	Description
   Forward	Calculate and post output consumption automatically when the production order is released.
   Backward	Calculate and post consumption automatically when the released production order is finished.

Note
If necessary, the flushing method selected here and on the Item card, can be overridden for individual operations by changing the setting on routing lines.

The Department Code and Project Code fields relate to the use of dimensions.

1. In the Unit of Measure Code field, enter the time unit in which this work centre’s cost calculation and capacity planning are made.

2. In the Capacity field, define whether the work centre has more than one machine or person working at the same time. If your Microsoft Dynamics NAV installation does not include the Machine Centre functionality, then the value in this field must be 1).

3. In the Efficiency field, enter the percentage of the expected standard output that this work centre actually outputs. If you enter 100, it means that the work centre has an actual output that is the same as the standard output.

   Note
   The Consolidated Calendar field is only relevant if the installation includes the Machine Centre granule.

4. In the Shop Calendar Code field, select a shop calendar. For more information, see How to: Create Work Centre Calendars.

5. In the Queue Time field, specify a fixed time span that must pass before assigned work can begin at this work centre. Note that Queue Time is added to other non-productive time elements such as Wait Time and Move Time that you may define on routing lines using this work centre.

6. If you use the Queue Time field above then you must define a time unit of measure in the Queue Time Unit of Meas. Code field.

Quick guides for manufacturing are available in a document that you can edit and print in Microsoft Office Word. The file, called “Quick Guides - Manufacturing Foundation.doc,” is installed in the documentation folder of your client installation.

Concepts