Hello everyone, In today’s blog, we’ll walk through the Dimension-based product configuration functionality in Microsoft Dynamics 365 Finance and Operations (D365 F&O).
What Is Dimension-Based Product Configuration?
Dimension-based configuration in Microsoft Dynamics 365 Finance and Operations is a robust and efficient feature that enables the creation of multiple product variants from a single product master. it is one of the three built-in product configuration technologies. By utilizing the Configuration product dimension in combination with configuration groups and rules, organizations can dynamically control the Bill of Materials (BOM) selection process without the need to create separate BOMs for each variant.
This approach allows for the definition of a single BOM, where rules govern the inclusion or exclusion of specific components based on the selected configuration. As a result, it significantly reduces BOM maintenance efforts and enhances operational efficiency within manufacturing processes.
💻 Scenario: Customizing Dell Laptops for B2B Sales
Business Context: A technology distributor, TechSolutions Ltd., partners with Dell to offer customized laptops for corporate clients. The laptops are built-to-order with specific configurations based on standard hardware options. Each client can select from:
- RAM: 8 GB, 16 GB, 32 GB
- Processor: Intel Core i3, i5, i7
- Storage (SSD): 256 GB, 512 GB, 1 TB
Despite the variety, all options are fixed and pre-approved combinations—there’s no need for dynamic or customer-driven configuration during sales.
Step-by-Step Setup in D365
Create the Finished Product (Product Master)
Create a new product named Dell Laptop with Product type: Item, Product subtype: Product master, and Configuration technology: Dimension-based configuration
Create Raw Materials (Product)
Create products for each RAM, Processor, and SSD Storage option as separate released products (type: Item).
Create Configuration Groups
Create configuration groups for RAM, Processor, and Storage under Product Information Management > Setup > Bill of Materials and Formulas > Configuration Groups.
Set Up the BOM for the Dell Laptop
Create a single BOM under the Dell Laptop product and add all raw materials to it.
Assign Configuration Groups to BOM Lines
Assign RAM group to RAM items, Processor group to processor items, and Storage group to SSD items.
Set Up Configuration Rules
Define rules to restrict incompatible combinations (e.g., Core i7 Processor will only come with 32GB RAM, 1TB SS ).
Approve and Activate the BOM
Approve and activate the BOM so it can be used in configurations.
Maintain Configurations
Create valid combinations (e.g., Core i3/RAM 8GB/SSD 256GB, Core i5/RAM 16GB/SSD512 GB, Corei7/RAM 32 GB/SSD 1 TB) using ‘Maintain configurations’ option.
Sales Order Impact
Create a new sales order and select the Dell Laptop item. Choose the configuration variant (e.g., Corei7/32/1TB). Under Product and supply > Compose of tree, you will see that the appropriate raw materials are picked based on the rules.
Thank you That’s All for the day
Important Notes
Use Dimension-based configuration when:
· Raw materials are simple items, not product masters
· Variants can be managed using BOM rules
· You need a fast, lightweight configurator without complex logic
· Avoid using it when:
· Components are themselves product masters with variants
· You need user-guided configuration screens or advanced logic
