Functional Design Document

Customizations – OLD GOLD

Microsoft Dynamics 365 Implementation.
Prepared for
[Joyalukkas India Pvt. Ltd.]

Version: 5
 Contents
1.1 Old Gold Process in Store… ............................................................................... 2
1.2 Transfer from Stores to RO/HO ...................................................................... 10
1.3 Transfer from HO to Workshop ....................................................................... 19
1.4 Melting ......................................................................................................... 19
1.5 Testing .......................................................................................................... 22
1.6 Purification.................................................................................................... 24
1.7 Pre-requisites ................................................................................................ 28
1.8 Assumptions.................................................................................................. 28

Objective
This document mentions old gold purchase.

Module
Old Gold management

1.1 Old Gold Process in Store.

User brings the Old Gold. End user checks the purity with Purity meter reading instrument or by
scratching. Suppose the purity reading was 88. This means user submitted gold of purity 88. Then it’s
upon user to decide how much to reduce the value. Reduction will be in percentage. Assume user
decides to reduce 10%.
Base purity used in case of Old gold will be of 92 for all purities up to 92. Rate used will be today’s
rate for 92 purity. In case of Bullions, respective purity will be used instead of standard 92 purity.
Gold value will be calculated on 92 purity rate, irrespective of any purity and deduction will be done
in percentage over this value.
Eg:

1. Item : Gold Necklace (without stone)

Net wt= Gross wt= 15 GMS
Purity meter reading: 88
Base purity: 92
Todays Gold rate= 3000(of 92 purity)
Deduction= 10%

Value to be paid to customer= (15-(15*10%))*3000=40500

2. Item: Diamond Necklace

Gross wt= 15 GMS
Net Wt=14 GMS
Dia Wt= 5 CT
Purity meter reading: 72
Base purity: 75
Today’s Gold rate= 2600(of 75 purity)
Deduction= 10%

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Value of gold = (14-(14*10%))*2600=32760
Value of for total Diamond= 50000
Value to be paid to customer=82760

User gives value separately for ingredients in POS. Value for Gold component and Value for Diamond
is filled separately. In case if there is multiple types of diamond also, value for all types of diamond
can be filled in a single stone field. Concept of Old Gold purchase in store will be explained in Retail
POS FDD.

Below process describes as it is in D365.

Form
To be developed

Scrap gold item: Non Batch, FIFO

Default Diamond: Non Batch, FIFO

Scrap gold item represents each ornament collected from customer. In D365, inventory is updated
as inventory adjustment as shown below, where each line represents each ornament. Cost amount
represents the total amount paid to customer.
This process happens in stores daily.

Below screen shot shows the visualisation of the form.

Path: Inventory Management > Journal Entries > Items > Inventory Adjustment Journal

Click new on the menu bar, then click new to create a line and enter the item number that is Scarp
gold, inventory dimensions, Quantity and the cost price also. You can add multiple line also, then
check and post it.

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On the day of transfer of scrap gold from store to RO, batch item is made. This batch item consumes
the non-batch scrap gold item and produces Batch old gold item. So transfer happens batch wise.
From Store, different batches are made for reusable and non-reusable. So user in store uses base
marking facility to select the ornaments.

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Click new on the menu bar in inventory adjustment form, then click new to create a line and enter
the item number that is Scarp gold, and enter the Quantity in negative.

User will have to enter the quantity to be transferred as –ve. Only then marking can be used.
Path: Inventory > Marking.

User can select the ornaments which needs to transfer to batch. Those selected values will be
deducted from the present item. Click on Apply and then OK.
User then adds a new line to represent the item that has to be transferred to RO/HO. This is a batch
item.

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New Item: OLDGLD, BATCH, Weighted Average

New Item is made common for all stores. Batch Item and Weighted Average.
Batch number sequence has to be made store wise. To use store code, item and date in number
sequence to identify.
Quantity and Cost amount is filled manually. Batch registration is used to create a new batch.

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Inventory adjustment is posted.

To transfer the item from Store to RO/HO, user use stock order. Fills the item and selects the batch,
fill the unit price also 1823.53. Rest of the process shipment and receive is as usual.

Below screenshots are to show the Old Diamond Ornament scenario.

Scrap gold and Default Diamond item will be pushed to Store stock through inventory adjustment as
shown below.

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Click inventory adjustment journal and select inventory dimensions,
Enter the scarp gold item number and scarp diamond item number and enter their quantity and cost
price manually. And Post it.

At the time of Transfer to store or Daily conversion of stock to batch, below process of batch
creation using inventory adjustment is used.
New Item: OLDGLD, BATCH, Weighted Average
New Item: DIASTNBT, BATCH, Weighted Average

On the day of transfer of scrap gold from store to RO, batch item is made. This batch item consumes
the non-batch scrap gold item and produces Batch old gold item. So transfer happens batch wise.
From Store, different batches are made for reusable and non-reusable. So user in store uses base
marking facility to select the ornaments.

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Click new on the menu bar in inventory adjustment form, then click new to create a line and enter
the item number that is Scarp gold, and enter the Quantity in negative.

Click new on the menu bar in inventory adjustment form, then click new to create a line and enter
the item number that is Scarp diamond, and enter the Quantity in negative.

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Marking is done for SCRAPGOLD item and DIASTN item. Respective Amounts are filled on positive
adjustment items.

Journal is posted.

Once the journal is posted, inventory is reflected. Below screen shot shows the stock in store.

1.2 Transfer from Stores to RO/HO

Now at the time of transfer from store to RO/HO, Stock Transfer is used.

Path: Inventory Management > Tranfer Order

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Click New on the menu bar to create a new Stock Transfer form,
Go to header and select the tranfer type as stock transfer.
User has to select ‘From Location’ and ‘To Location’ in transfer order.
Then go to lines, then click on new to create a line and enter the item number, select the respective
batch no, Enter the weight, cost price also, Then check and ship it(Post it).

Below screen shot shows the item stock updated in HO inventory.

Note:
 For transferring quantity and cost price from –ve adjustment item to +ve adjustment item
we customised a button called update Qty in inventory adjustment journal form.
 Same process can be used for silver.

Reusable Item Process:

Scrap gold and Default Diamond item will be pushed to Store stock through inventory adjustment as
shown below.

Same inventory adjustment process is done shown below,

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At the time of Transfer to store or Daily conversion of stock to batch, below process of batch
creation using inventory adjustment is used.
New Item: DIASTNBT, BATCH, Weighted Average

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Now the reuse item transferred to RO/HO in a Stock Transfer.

Click New on the menu bar to create a new Stock Transfer form,
Go to header and select the tranfer type as stock transfer.
User has to select ‘From Location’ and ‘To Location’ in transfer order.
Then go to lines, then click on new to create a line and enter the item number, select the respective
batch no, Enter the weight, cost price also, Then check and ship it(Post it) and receive it.

Now the reuse item is under gone some buffing and polishing at RO or HO level and it has to be
converted from Scrap item to Raw material item (gold and stone) and finally moved for creating
manual Tagging item wise. Those steps are mentioned as below as,

Item Correction is done through Production order converting from Scrap gold, Scrap stone to RM
items through transfer order document as reference,

Path: Production Control > Production Orders > All Production Orders

Create a production order for 22 gms of gold and fill the desired output item and fill the inventory
dimension then as usual run estimate, Release, Start as shown below,

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Create the picking list and create a line item of 22 gms, inventory dimensions, for which we required
the old gold item should be converted to RM item and post it,

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After picking list, run report as finish and end the production order. The desired output item
Gold_92 = 22 gms is produced with the same cost amount.

The below screen shot shows the on hand inventory of the output item (RM) with cost amount.

Item Correction for Scarp Diamond

Create a production order and the follow same steps as we did for gold,
Select the item number as D_VVS_EF_RO_D01

Path: Production Control > Production Orders > All Production Orders

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Create a picking list for the Diamond stone item,
Select item number DIASTNBT of 2 CT and enter inventory dimensions – Warehouse and Batch,

After picking list is done, Then run Report as finihed, in that Batch Registration is required at the
time of report as finished. Click on inventory button then select registration and in transaction tab u
have to click add registration line, system will automatically create a line in registration line in which
we have to enter the batch number manually and derived purification weight in the register now
field and then click on save to save this form.

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After picking list, run report as finish and end the production order. The desired output item is
produced with the same cost amount.
D_VVS_EF_RO_D01 – 2 CT and Batch number – DIABT-0000001

The remaining diamond weight for 3 CT, we have to run a separate production order for item
correction from DIASTNBT to D_VVS_EF_RO_D02.

The below screen shot shows the on hand inventory of the output item (RM) with cost amount.

Now the reuse gold and diamond items is converted to RM gold and RM diamond in HO.

Reuse Item Manual Tagging:

Concept of manual tagging in RO/HO is already covered in Tagging FDD, kindly refer it.

Note: Same process can be used for silver

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1.3 Transfer from HO to Workshop

The scrap lot has to be transferred from Scrap location in HO Warehouse to Workshop Warehouse
using a transfer order.
From template, ‘From Warehouse’, ‘To Warehouse’ and Number sequence will be picked. User has
to select ‘From Location’ and ‘To Location’ in transfer order.
Below window is an example of transfer order from HO to LST.

Click New on the menu bar to create a new Stock Transfer form,
Go to header and select the tranfer type as stock transfer.
User has to select ‘From Location’ and ‘To Location’ in transfer order.
Then go to lines, then click on new to create a line and enter the item number, select the respective
batch no, Enter the weight, cost price also, Then check and ship it(Post it) and receive it.

Once the transfer order is received at LST-W warehouse, stock will be available under the same
warehouse.

1.4 Melting
Now from here, branch wise lot will be issued for melting using transfer journal.

Path: Inventory Management > Journal Entries > Items > Transfer Journal
Click on New and select transfer journal.
Fill the item number, from warehouse, to warehouse, from batch number, to batch number,
quantity and cost amount as reference from the transfer order. Kindly post it.

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Production order:
Melting process is done through Production order converting from Scrap gold, Scrap stone to RM
items,
Path: Production Control > Production Orders > All Production Orders

Create a production order for 32 gms of gold and fill the desired output item and fill the inventory
dimension then as usual run estimate, Release, Start as shown below,

Create the picking list and create a line item of 32 gms, fill the inventory dimensions, for which we
required the old gold item should be converted to RM item and post it,

Note:
In picking list you can add same branch old gold scrap item for the melting process,

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After picking list is done, Then run Report as finished, in that Batch Registration is required at the
time of report as finished. Click on inventory button then select registration and in transaction tab u
have to click add registration line, system will automatically create a line in registration line in which
we have to enter the batch number manually and derived purification weight in the register now
field and then click on save to save this form.

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Then enter derived output purification weight in the report as finish form and end the production
order. The desired output item Melting_Gold = 31.25 gms is produced with the same cost amount.

The below screen shot shows the on hand inventory of the output item Melting gold with cost
amount.

Item Correction for Scarp Diamond

Refer same as explained for Diamond Reuse process.

Now diamond items is converted to RM diamond and it can be used for producing new diamond
ornament etc.

Note: Same melting process followed for old silver (Scarp silver) also.

1.5 Testing
Following screen shows that 2 grams from a branch is sent for testing warehouse via Stock transfer,
because this is sent outside workshop.

Click Transfer order form and Go to header and select the tranfer type as stock transfer.
User has to select ‘From Location’ and ‘To Location’ in transfer order.
Then go to lines, then click on new to create a line and enter the item number as MLT_GLD = 2 gms
and select the respective batch no as ANGMLT18092019 , Enter the weight, cost price also,

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Then as usual transfer order steps are followed.

After item received in testing warehouse, it will undergo testing so user will remove a bit of gold
from the melting gold item as testing-gold and it is used for testing. For that we are doing the
inventory adjustment as shown as below,
MLT_GLD = -1 gms
Testing-Gold = .750 gms and cost price is 2144 (This 2144 value we got it from MLT_GLD item cost
price). The remaining weight is used for testing.

After testing is completed we are returning the melting gold item and remaining obtained testing bit
weight to melting warehouse.

Create a transfer order and as usual same steps is followed.

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1.6 Purification

Below window shows the Purification process. Purification issue from melting is done via transfer
journal. Old Gold melting Production document will be the reference for the Purification process.

In transfer journal we have to Fill the item number, from warehouse, to warehouse, from batch
number, to batch number, quantity and cost amount as reference from the Old Gold melting
Production document. Kindly post it.

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On hand inventory shows that melting gold item is transferred from melting house to purification
house with respective weight, Batch wise and cost price.

Now the purification process is done through Production order converting from melting gold item to
Fine Gold item,

Create a production order for 29.25 gms of gold and fill the desired output item as 30_99.99 and fill
the inventory dimension then as usual run estimate, Release, Start as shown below,

Create the picking list and create a line and enter the fine gold in the item number and ,weight of
26.91 gms which is the purification output weight we got physically, fill the inventory dimensions,
Batches for which we required the melting-gold should be converted to Fine gold item and post it,

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After picking list is done, Then run Report as finihed, in that Batch Registration is required at the
time of report as finished. Click on inventory button then select registration and in transaction tab u
have to click add registration line, system will automatically create a line in registration line in which
we have to enter the batch number manually and output purification weight in the register now as
26.910 gms field and then click on save to save this form.

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Then enter derived output purification weight in the report as finish form and end the production
order. The desired output item FineGold(30_99.99) = 26.91 gms is produced with the cost amount.

The below screen shot shows the on hand inventory of the output item FineGold(30_99.99) = 26.91
gms with cost amount = 62,712.

Once purification is completed, user transfers Refined gold to Love shore warehouse using transfer
journal as we have seen before.

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1.7 PRE-REQUISITES

 Site, Warehouse
 Journal Names- Transfer, Picking List, Inventory Adjustment, Batch Registration, Report As
Finished
 Templates
 Origin Master

1.8 ASSUMPTIONS

 Weighted average is used for inventory valuation on all items across the production
processes.
 FG item Gold bullion will not be batch activated. Old gold ornament, stones, molten items
are batch activated.
 All the production form fields will be filled only after receiving output from actual production
in warehouse.
 The purpose of Origin field in forms is to identify the branch and to fetch the respective lines
accordingly. Origin is the branch where old gold is generated.

 Stock Diamond Default item is used assuming that user consolidates diamond details in a
single field at the time of Old Diamond ornament purchase.

 If user wants to store, each diamond recovered from old gold ornaments separately, then
only its actual price can be retained. Else it will go on average price.

 Gold, if separate cost price needs to be used then separate item needs to be created.

 Refined Gold purity after purification is batch Item.

 In case of finished goods (unsold stock), general ledger journal should be created to pass on
making charge which is an expense ledger to Profit and loss ledger.

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