Sustainability value chain in production
The requirement for enabling the sustainability value chain in manufacturing processes is to enable the Enable Value Chain tracking, Item Emissions, and Work/Machine Center Emissions fields on the Sustainability Setup page.
To do so, follow these steps:
- Select the
icon, enter Sustainability Setup, and then select the related link. - Check whether the basic setup already exists. If it doesn't, follow these instructions to set it up.
- On the Procurement FastTab, fill in the following fields:
- Enable Value Chain tracking to enable sustainability value entry posting through value chain operations and the visibility of these fields on operational documents and journals.
- Item Emissions to enable a default sustainability account and emissions on the Item Card page.
- Work/Machine Center Emissions to enable default sustainability accounts and emissions on the Work Center and Machine Center pages.
- Close the page.
Important
Important:
Because the sustainability value chain works only with the carbon equivalent (CO2e), before you start, configure the Carbon Equivalent Factors on the Emission Fees page. To learn more, go to Emission fees.
Working with a production BOM
To learn more about how to work with the Production BOM, go to How to create a production BOM. This article only covers the effect of CO2e emissions on production BOMs.
If you set up default emissions for items you plan to use on production BOM lines, Business Central automatically fills in the CO2e per Unit field for each line when you create a new production BOM. However, if you created a production BOM before you configured emissions for items, or if you updated the emission values for items, you can run the Calculate CO2e action. Business Central updates all CO2e per Unit values using the latest emission details from the items. You can even run the Calculate CO2e action from the Production BOMs page to update all production BOMs with the latest emissions.
Working with routings
To learn more about how to work with routes, go to How to create a route with production operations. This article only explains the effect of CO2e emissions on routes.
If you set up default emissions for work or machine centers you plan to use in the Routing lines, Business Central automatically fills in the CO2e per Unit field for each line when you create a new routing. However, if you created a routing before you configured emissions for work or machine centers, or if you updated the emission values for them, you can run the Calculate CO2e action. Business Central updates all CO2e per Unit values using the latest emission details from the work or machine centers.
Working with production orders
To learn more about how to work with production orders, go to About production orders and How to create production orders. However, the connection of production orders with the sustainability value chain is:
- Tracking the emissions for items and work or machine centers consumed during the production process.
- Transferring the total emission values to the produced items or finished goods.
To use a production order in the sustainability value chain process, add CO2e (carbon equivalent) emissions in all posted entries through the journals you use in the production process. You can start the process using a Released Production Order. To use the sustainability value chain in production orders, all items (raw materials) and work or machine centers you want to use must have a Sustainability Account No. and emissions.
To do so, follow these steps:
- Select the icon, enter Released production orders, and then select the related link.
- Create a new production order. To learn more about production orders, go to How to create a production order.
- Run the Refresh Production Order action to calculate values for the line.
- After you refresh the order, the value in the Total CO2e field updates based on emissions in the production BOM and routing for the production items.
When you refresh the production order, values from the production BOM and routing transfer to the Prod. Order Components and Prod. Order Routing pages for the production order you're using. If you change the initial production BOM and routing, it doesn't affect the production order you refreshed previously.
To check the emission values, run the Routing or Components actions from the production order lines.
Note
Note:
Although the Total CO2e emission amount displays for each line on the Prod. Order Components and Prod. Order Routing pages, there's a field called CO2e per Unit. Its value comes from the Item, Work Center or Machine Center pages, and is used for calculations. However, if you change the value in the Total CO2e field on the line, the CO2e per Unit recalculates based on the total emission and quantity for that line.
Posting transactions related to production order
To post all transactions related to the production order and record the emissions, choose one of the following journals:
- Production journals
- Consumption journals
- Output journals
Production journals
Production journals combine the functions of the separate consumption journal and output journals into one journal. The combined journal is accessed directly from a released production order. To learn more, go to How to register consumption and output for a released production order line. Related to emissions, be sure that all lines have a value in the CO2e per Unit field.
Every time you post the journal, Business Central creates sustainability value entries. You can access these entries from the Release Production Order page by running the Sustainability Value Entries action.
Consumption journals
To learn more about consumption journals, go to Batch post production consumption. It's important to know that all emissions are updated by posting these journals for all consumption transactions. When you post a journal, Business Central creates sustainability value entries with the Consumption option as the Item Ledger Entry Type.
Output journals
To learn more about output journals, go to Batch post output and run times. It's important to know that all emissions are updated by posting these journals for all output transactions based on the routings. When you post the journal, Business Central creates sustainability value entries with the Output option as the Item Ledger Entry Type for the finished good production. It also creates transactions for the work or machine centers you used related to the capacity ledger entry.
Finish a production order
When you finish a production order, Business Central updates the value of your produced item and the CO2e per Unit field on the Item Card page for it.
Note
Note:
Business Central calculates the value in the CO2e per Unit field for the produced item by summing the total emissions from all consumed items and operations (work and machine centers), and then divide that by the total output quantity.
Related information
Sustainability Value Chain Overview
Sustainability Management overview
Sustainability setup
Record sustainability entries
Work with Business Central