Four new potency management capabilities of Microsoft Dynamics AX 2012 R2

Editor's note:  This article highlights some of the new SCM features within the R2 release of AX 2012.  A previous article summarized the major R2 changes for supply chain management.  

Potency applies to some types of material, where potency fluctuates from batch to batch.  Potency is typically expressed as a percentage, and examples include the percentage of alcohol for beverages or caustic for certain chemicals.  New Microsoft Dynamics AX 2012 R2 capabilities support the identification of materials with potency (based on a batch attribute), as well as potency-based formulas for manufactured items and potency-based prices for purchased materials.  These aspects of potency management are reflected within the following sections of the article:

1. Batch attributes for potency
2. Potency-based prices and purchase price trade agreements
3. Potency-based formulas
4. Batch balancing for actual production 

1.  Batch Attributes for Potency

To support material with potency, you define a batch attribute that represents potency, and assign the batch attribute and its target potency to the relevant item.  The initial steps of defining a batch attribute (that represents potency) and assigning it to an item are exactly the same as other batch attributes.  You must define the batch attribute with an attribute type of integer or fraction in order to support a percentage value, and you assign an acceptable range of values and also a default for the target value.  This is termed the target potency or standard potency.  You can override these values when assigning the batch attribute to an item.  After assigning the batch attribute to an item, you must explicitly designate that ...