Associate Functional Solution Architect
Subscribe to the newsletter
Managing products with varying weights or sizes can be a logistical nightmare for businesses across multiple industries. That’s where catch weight (CW) functionality in Microsoft Dynamics 365 Finance and Operations (F&O) comes in, providing a solution tailored to streamline inventory processes and ensure precision. Whether you’re working with bulk goods or manufacturing components, the ability to manage dual-unit measurements can significantly enhance the accuracy and efficiency of tracking inventory, sales, and procurement.
In this blog, we will explore the concept of catch weight management in Dynamics 365 for Finance & Operations, discuss its setup and configuration, and walk you through its practical limitations.
What is the catch weight in warehouse management?
In Dynamics 365 Finance and Operations (F&O), Catch Weight (CW) functionality is designed to manage products that vary in weight or size, such as food products or other bulk items. When it comes to catch weight meaning, it refers to a method of managing inventory for products whose weight varies slightly from unit to unit, even though they are sold by a standard unit count. It is commonly used in industries like food, agriculture, and manufacturing, where items such as meat, produce, or chemicals have variable weights.
Catch weight (CW) products use two types of measurements:
- Inventory unit
The inventory unit is the unit of measure that tells how the product is weighed and billed. For example, kg, lb, or oz.
- Catch weight unit
The catch weight unit is the unit that is used for managing the product during transactions, such as when it’s sold, received, moved, or shipped. This could be in boxes or pieces. So, while the product might be billed by weight, it’s managed in terms of boxes or pieces.
Examples of catch weight unit
Suppose we have cherries packed in boxes, with each box varying in weight. Although the cherries are invoiced by weight in kilograms (KG), they are sold in boxes. When a customer orders cherry boxes, the boxes are weighed to determine the total weight for invoicing.
In this scenario, we use kilograms (KG) as the inventory unit and boxes as the catch weight unit. This means that while the inventory is tracked in kilograms, the sale is processed based on the weight of the boxes.
What are the different types of catch weight quantities?
Catch weight (CW) involves three types of quantities: Nominal, Minimum, and Maximum. Together, these quantities help manage and regulate inventory in both the catch weight unit and the standard inventory unit.
- Nominal quantity
This defines the conversion rate between the catch weight unit and the inventory unit. For example, if the nominal quantity is set to 5 kilograms (KG) per box (each), then 1 box is equivalent to 5 kilograms.
- Minimum quantity
This specifies the minimum allowable quantity in the inventory unit. It ensures that the inventory level does not fall below this threshold.
- Maximum quantity
This indicates the maximum allowable quantity in the inventory unit. It sets an upper limit to the inventory level.
Understanding full and partial visibility of catch weight items
The dimension configuration and weight that you set up for a catch weight product determines whether the item uses full or partial visibility.
Full visibility of catch weight items
What does it mean?
You know the exact weight of each individual item. Catch weight items that use full visibility require that the inventory quantity is known for each catch weight unit.
How it works?
- Unique identification: Each item (like a box of cherries) has a unique ID, and its exact weight is recorded.
- Example: If you have boxes of cherries and each box must be individually tracked, you will set up each box as a catch weight item with full visibility. This means each box gets a unique serial number, and its weight is recorded individually.
Partial visibility of catch weight items
What does it mean?
You only know the total weight of a group of items, not each individual item’s weight. Catch weight items that use partial visibility require that the inventory quantity is known for batches of items that use a catch weight unit.
How it works?
- Batch identification: You know the total weight for a batch of items, but not the exact weight of each item in the batch.
- Example: If you receive 100 boxes of cherries, each with a nominal weight of 10 kg, you will weigh the entire batch of boxes together. You record the total weight and the number of boxes under one batch number. You don’t track each box’s weight separately, just the total weight for the batch.
How to set up catch weight product for warehouse management processes: A step-by-step guide
Here are the steps to get started with setting up catch weight product.
Step 1: Create a new released product
- Navigate to Product Information Management > Products > Released Products.
- Click New to create a new product.
- On the Product tab, select the CW Product check box to designate the item as a catch weight product.
Step 2: Set up unit conversion
- Go to Product Information Management > Products > Released Products.
- Select the product you created.
- Click the Product menu.
- From the Setup submenu, select Unit Conversion.
- Set the conversion up as an inter-class conversion as 1 Cherry box is equal to 5 Kg.
Step 3: Set up catch weight on released products
- Navigate to Product Information Management > Products > Released Products.
- Select the product you created.
- Go to the Manage Inventory tab.
- Specify the allowable minimum and maximum quantities for the item in inventory units.
Understanding unit conversion types
- Standard conversions: Apply standard conversion rules for all products.
- Intra-class conversions: Define product-specific conversions within the same unit class (e.g., Kg, Metric Ton, Pound).
- Inter-class conversions: Define product-specific conversions between different unit classes (e.g., Box, Each, PCS).
Key considerations for catch weight product setup
Before configuring a catch weight product, be aware of certain limitations that may affect its eligibility and functionality.
- Items with existing inventory transactions cannot be configured as catch weight products.
- Items linked to a batch or serial number group with a defined quantity per unit are ineligible.
- Catch weight setup is not applicable to items classified as:
- Product type Service
- Production types BOM (Bill of Materials) or Planning Item.
How to adjust quantity with catch weight products?
When adjusting catch weight products, it is essential to manage both catch weight and inventory units correctly.
1. Adjusting catch weight quantity (boxes)
Action
Adjusting the catch weight quantity (e.g., number of boxes) will automatically update the inventory quantity (e.g., in kilograms) based on the predefined nominal quantity conversion rate.
Impact
Changing the number of boxes updates the total weight in kilograms accordingly. For example, if the quantity is reduced from 400 boxes to 300 boxes, and each box weighs 5 kg, the inventory quantity will update from 2000 kg to 1500 kg.
2. Adjusting inventory quantity (Kilograms)
Action
When adjusting the inventory quantity in kilograms directly, ensure it aligns with the unit conversion defined for the catch weight.
Requirement
The inventory quantity must be a multiple of the nominal quantity conversion rate. For example, if the nominal rate is 5 kg per box, the inventory quantity must be a multiple of 5 kg to maintain consistency with the catch weight unit.
- An inventory quantity of 2010 kg for 400 boxes results in a nominal rate of 5.025 kg per box.
- This value should be within the predefined interval to ensure valid adjustments consistent with the product’s catch weight configuration.
Validation rules
- Minimum/maximum threshold
Quantity adjustments below the minimum catch weight of 1,980.00 kg or above the maximum catch weight of 2,020.00 kg for item CW are not allowed.
- Error triggers
If the inventory quantity exceeds the maximum limit, the system will display an error.
If the inventory quantity falls below the minimum limit, the system will display an error.
Inventory adjustment transaction
After posting the inventory quantity adjustment in kilograms, the inventory transaction shows the counting journal posting as “Sold” for 10 quantities.
Limitations of setting up catch weight
- An item cannot be configured as a catch weight if it already has existing inventory transactions or if it is linked to a batch or serial number group with a defined quantity per unit.
- Catch weight configuration is not applicable for items classified under the product type “Service” or those associated with production types such as “BOM” (Bill of Materials) or “Planning Item.”
Summing up
Effectively managing catch weight products in Dynamics 365 Finance & Operations requires a clear understanding of unit conversions, inventory adjustments, and system configurations. By following the correct setup and maintaining data accuracy, businesses can enhance operational efficiency and streamline inventory management processes. Implement these practices to optimize your supply chain and ensure precise inventory tracking.
Looking for a catch weight product setup? Reach out to us at marketing@confiz.com if you need assistance with setting up your catch weight products.
