Incorrect Substitution Variances in AX 2009

We are using AX2009 in a manufacturing environment. AX is giving me substitution variances for using the raw material that is supposed to be used based on the standard BOM and the production order BOM. This is what I think might be happening.

  • The BOM includes a field for an operation number where the material is used (in our case, operation number 20, which is also the operation number that consumes labor and overhead).
  • We normally pick raw materials at the beginning of the route, our operation number 05.
  • On the production order, variance button screen, I see substitution variances for what appears to be picking and usage occurring at two different operations
  • The implication is that the item number/operation number combination creates unique item numbers and therefore we pick one item but consume a different item, creating the substitution variance

As an example, I pick 15 meters of raw material at operation 05. The standard and production order BOMs call for using 10 meters at operation 20 on the BOMs. My result is a 5 meter substitution variance instead of a 5 meter usage variance.

If this is truly why we’re getting substitution variances, do we have a setting wrong somewhere that, if fixed, would disregard the operation number and only look at the picked and consumed items to determine the category (quantity or substitution) where the variance should fall?

Thank you, in advance for any help you can give.

Craig Cermak