Introduction to Process manufacturing production and logistics [AX 2012]

Updated: November 8, 2012

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Process Manufacturing Production and Logistics provides integrated functionality for planning and managing production and distribution for enterprises engaged in processing of goods. It supports a variety of manufacturing processes that includes make to order, make to stock, or a hybrid environment with both process and discrete manufacturing operations.

Process Manufacturing Production and Logistics provides chemical manufacturers with tools that help them to control and maximize assets, minimize operating costs, and monitor the impact of decisions on orders, production, inventory, and distribution. It offers process and hybrid manufacturers solutions that address production and distribution. It also provides them with integrated functionality for planning and managing production, distribution, procurement, and accounting.

Some of the key industry-specific features of Process Manufacturing Production and Logistics are as follows:

  • Formula management

  • Co-product and by-product planning and management, including allocating costs for unplanned co-products and by-products

  • Multi-dimensional inventory capability

  • Containerized packaging

  • Full visibility and partial visibility catch weight management

  • Batch attribute assignment, search, and reserve capability

  • Inventory batch management

  • First expired/first out (FEFO) and shelf life inventory management with the ability to set vendor-specific batch information

  • Commodity pricing management

  • Rebate and trade promotion management

  • Approved vendor set up and maintenance

  • Vendor batch detail set up and maintenance

  • Potency management

  • Batch balancing for potency formulas

  • Purchase pricing based on actual potency

  • Lot inheritance

  • Batch order sequencing

The following table describes various types of common tasks available in Process Manufacturing Production and Logistics.




Create and maintain finished products that generate multiple outputs.


Create and maintain co-product and by-product items.

Consolidated order

Create and maintain consolidated orders and their related bulk and packed orders.


Create and maintain catch weight items, which are items that use both a catch weight and an inventory unit of measure.

Batch attribute

Create and assign batch attributes to batch inventory items and to items that are associated with specific customers. Use Batch attribute search to search for inventory batches with certain attributes to reserve against available inventory.

Inventory batch management

Create, maintain, and monitor inventory batches, vendor-specific batch details, and shelf life dates and related information.

Approved vendor

Create and maintain approved vendor lists to streamline purchases of goods and services.

Commodity pricing

Create and maintain templates and pricing data for commodity-based end items and update related sales price trade agreements.

Rebate and Trade manufacturing agreement (TMA)

Create and maintain rebates and trade manufacturing agreements for customers.

Production batch order

Create and maintain batch orders. A batch order contains all information associated with a formula item to be produced.


Create and post a purchase order for a potency item.


Create and validate a quality order for a potency item.

Batch order sequencing

Sequence planned batch orders.

Lot inheritance

Define formula ingredients for shelf-life inheritance.

Lot inheritance

Define and activate formula ingredients for batch attribute inheritance.

Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).