Lot Size Field in the Item card

s_venkatesh78

Hi Users,

What is the purpose of the Lot size field in the Item card ? Will it work only if the costing method is Standard ?? Some how i feel the help provided by Navision is not of much useful and i dont see any difference in the cost calculation (Production order statistics) after defining the lot size for a particualr finished goods.

Regards,
Venkatesh

AdamRoue

This is the quantity, you as standard, manufacture in. With the standard cost it will use this in the setup calculation, whatever value you have in here is used to divide the setup time and cost to get an approaximately per unit element for setup. Setup time is generally unrelated to quantity made, so it apportions on a standard batch. With average and FIFO the setup cost needs no approtioning as you are recording the cost in the output journal, so the system knows how to apportion it.

It is also used in planning from memory, it references the dampner settings as a percentage of the lot size to give action messages or not depending upon changes to the demand quantities. Sure there are other minor impacts on planning, but in reality the standard cost setup time is where it is really used.