For process manufacturers, formulas are at the heart of production. They determine which ingredients are used, in what quantities, how products are made, and ultimately what rolls off the production line. As your business grows, however, managing those formulas can become increasingly complicated.
Spreadsheets, PDFs, disconnected systems, and manual calculations may work when you have a limited number of products and batches. But as you add more formulas, versions, batch sizes, quality requirements, and production variables, those same processes can create errors, slow down production, and make it harder to understand exactly what happened on the shop floor.
Microsoft Dynamics 365 Business Central provides manufacturers with core production functionality, including production BOMs, production orders, consumption, output, planning, costing, and other manufacturing capabilities. For process manufacturers that require more specialized functionality, solutions such as Yaveon 365 extend Business Central with capabilities designed for batch-oriented and formula-based manufacturing.
So, how do you know when you’ve outgrown your current approach?
Here are seven signs that it may be time to consider dedicated formula management software.
1. Your Formulas Live in Spreadsheets, PDFs, or Multiple Systems
One of the clearest signs that you need a formula management solution is that your formulas are not actually managed in your ERP.
Instead, they may be stored in Excel spreadsheets, PDFs, shared folders, paper documents, or separate systems used by R&D and production. In some cases, your ERP may contain the basic bill of materials while important details such as production instructions, ingredient percentages, revisions, or batch adjustments live somewhere else.
This creates a simple but important problem: there is no single source of truth.
When a formula changes, someone has to make sure every related document and system is updated. Production employees may need to check multiple locations before starting a batch, while purchasing, costing, quality, and inventory teams could be working with different information.
Ask yourself:
- Is there one place employees can find the current approved formula?
- Does someone manually transfer formula information into your ERP?
- Are production instructions stored separately from the formula itself?
- Do employees regularly compare spreadsheets or documents against ERP data?
- Would losing access to a key employee’s files make it difficult to manufacture a product?
If your formula is scattered across multiple files and applications, the problem is not necessarily that those tools do not work. It is that your production process has become too complex to depend on disconnected information.
2. You’re Struggling to Control Formula Versions
Formulas rarely stay the same forever.
Ingredients change. Suppliers change. Costs shift. Customers request variations. R&D improves the product. Regulatory or quality requirements may also force updates over time.
The challenge is not simply creating a new version. It is making sure everyone knows which version is approved, when it became effective, and which version was actually used in production.
Imagine R&D approves Formula Version 3 on Monday, but an older spreadsheet containing Version 2 is still saved in the production folder. If an operator starts Tuesday’s batch from the wrong file, you now have a much larger problem than poor document organization.
That creates questions such as:
- Can you immediately identify the current approved formula?
- Can employees accidentally use an outdated version?
- Can you see when a formula changed and what was changed?
- Can you separate formulas still in development from formulas approved for production?
- Can you determine which formula version was used for a specific production batch?
Business Central supports production BOMs and BOM versions, including status controls and starting dates. For manufacturers that require more specialized formulation workflows, Yaveon 365 Research and Development adds functionality for testing formulations, managing versions, and documenting product development within the Business Central environment.
The goal is not simply to save different versions of a formula. It is to make it obvious which version production should use and reduce the chance of an outdated or unapproved formulation reaching the production floor.
3. Scaling a Formula for Different Batch Sizes Requires Manual Calculations
A formula may be designed around a standard batch size, but actual production rarely stays that consistent.
One day you may need to produce 1,000 litres. The next run may be 750 litres or 1,400 litres. If someone has to open a spreadsheet, use a calculator, or manually convert units before every production run, your current process is creating unnecessary work.
Manual scaling also introduces risk. Small calculation errors can affect ingredient quantities, yield, product consistency, and ultimately the cost of the batch.
Ask yourself:
- Does someone manually recalculate ingredient quantities before production?
- Are batch-size calculations stored outside your ERP?
- Do operators rely on spreadsheets or calculators to scale formulas?
- Are unit-of-measure conversions a common source of mistakes?
- Can the system automatically adjust ingredient requirements based on the quantity being produced?
Business Central now supports manufacturing batch units of measure, which allow component quantities to be calculated according to the unit in which production runs while inventory remains stored in its stocking unit.
If scaling a formula still depends on someone doing the math manually, the issue is not just efficiency. One of the most important parts of your production process is still dependent on calculations happening outside the system.
4. Production Regularly Deviates From the Standard Formula
The formula you plan to produce and the batch you actually produce are not always identical.
Raw materials can vary. Ingredients may need to be substituted. Operators may need to adjust quantities during production. Actual yield may come in above or below expectations. In some environments, those adjustments are simply part of making the product correctly.
Consider a standard formula that calls for 500 kg of a particular raw material. The available lot has different characteristics than expected, and the production team needs to adjust the amount used to produce the desired result.
Can that adjustment be documented against the batch, or does someone make a note on paper and carry on?
The problem is not necessarily that an adjustment happened. The problem is when the adjustment disappears from the production record.
Ask yourself:
- Can operators document batch-specific formula adjustments directly in the system?
- Can you compare planned ingredient quantities against actual consumption?
- Are substitutions recorded consistently?
- Can you see why a formula was adjusted for a particular batch?
- Does your ERP show what actually happened in production, not just the original plan?
Business Central production orders can record actual material consumption and output, including manually reported consumption where manufacturers need to account for substitutions or unexpected scrap. Yaveon 365 Manufacturing extends the underlying Business Central environment with additional functionality designed for process-oriented production.
For process manufacturers, variation may sometimes be unavoidable. What matters is making sure those changes are controlled, documented, and connected to the production record rather than disappearing into handwritten notes or employee knowledge.
5. R&D and Production Aren’t Working From the Same Data
Developing a formula and manufacturing it are often treated as two separate processes.
R&D may develop and test formulas in spreadsheets or another application before handing the final version over to production. Someone then has to recreate that information in the ERP, set up the appropriate ingredients and quantities, add production instructions, and make sure the approved version matches what was developed.
Every manual handoff creates another opportunity for something to be missed.
It can also make product development harder to manage. If development formulas are stored separately from production data, estimating costs, comparing revisions, and determining which version was ultimately approved can become unnecessarily complicated.
Ask yourself:
- Does production manually recreate formulas developed by R&D?
- Are development formulas stored separately from your production system?
- Can you compare different versions of a formula during development?
- Can you estimate the cost of a new formula before approving it?
- Is there a controlled process for moving a formula from development into production?
Yaveon 365 Research and Development is designed to bring formulation development into the ERP environment, including testing formulations, managing versions, and documenting the development process.
For a growing process manufacturer, R&D should not operate as an isolated step before manufacturing. Connecting product development with the rest of your ERP can create a more controlled path from the first formulation to the finished product.
6. You Don’t Know the True Cost or Yield of Each Formula
A formula can tell you what a batch should require. That does not always tell you what the batch actually cost to produce.
Ingredient prices change. Actual consumption may differ from planned quantities. Waste, scrap, rework, labour, packaging, and variations in yield can all affect the final cost of production.
If your costing process relies heavily on standard assumptions, spreadsheets, or calculations performed after production is complete, it may be difficult to understand which products and formulas are actually profitable.
Ask yourself:
- Can you compare planned production costs against actual batch costs?
- Do you know how much actual yield varies from the expected yield?
- Are waste and production losses captured consistently?
- Can you see how changing raw material costs affect the cost of a formula?
- Can you identify when a particular batch costs significantly more than expected?
Business Central production orders connect material consumption, production output, capacity, and the costing lifecycle of the manufactured item.
Better formula management is not only about producing the correct product. It should also help you understand what it really costs to make it. When actual production results are connected to formula, inventory, and financial data, it becomes much easier to identify unusual variances and make better pricing and production decisions.
7. Formula Management Isn’t Connected to Quality, Traceability, and Compliance
For process manufacturers, managing the formula is only one part of the production record.
You may also need to know which raw material lots were consumed, which formula version was used, what quality checks were completed, whether the batch was released, and where the finished product was ultimately shipped.
When those records live in separate systems, investigating a problem can become much more difficult.
Imagine a customer contacts you about a quality issue with a finished product. How quickly can your team identify the production batch, determine which raw-material lots went into it, confirm the formula used, review the applicable quality information, and determine whether any other customers received product from the same batch?
A question that should be answered quickly can turn into a search across spreadsheets, production records, inventory transactions, and quality documents.
Ask yourself:
- Can you trace a finished batch back to the specific ingredient lots used to produce it?
- Can you identify which formula version was used for a particular batch?
- Are quality inspections connected to the relevant production records?
- Can you prevent product from being released until required quality checks are complete?
- How quickly could you investigate a customer complaint or potential recall?
Business Central supports lot and serial-number tracking, including forward and backward item tracing that can be useful in quality and recall situations. Yaveon 365 Quality Assurance adds specialized quality-management functionality for managing inspection processes and inspection objects such as items or batches directly within the ERP.
For manufacturers in industries such as food and beverage, chemicals, cosmetics, pharmaceuticals, and nutraceuticals, that connection can be particularly important. Formula management should form part of a larger record showing what was produced, what went into it, how it was evaluated, and where it went.
Formula Management vs. a Traditional Bill of Materials
A traditional bill of materials, or BOM, defines the components required to manufacture an item.
For many discrete manufacturers, that works well. If you are building a machine, piece of equipment, or assembly, the BOM can define the parts and quantities required to produce the finished product. Microsoft describes production BOMs in Business Central as the manufacturing BOM type used for items consisting of components and subassemblies produced through manufacturing processes.
Process manufacturing can introduce additional requirements.
A formula may need to account for percentages, varying batch sizes, ingredient substitutions, yield, quality requirements, production instructions, and adjustments made during manufacturing. You may also need to control multiple formula versions or understand exactly which formulation was used for a specific batch.
In other words, a traditional BOM helps answer:
What components do we need to make this product?
A formula management solution should help answer additional questions, such as:
- Which version of the formula should production use?
- How should ingredient quantities change for this batch size?
- Were any ingredients or quantities adjusted during production?
- What was the actual consumption and yield?
- Which manufacturing instructions apply?
- What quality requirements need to be completed?
- Which formula version was used for a particular batch?
Microsoft Dynamics 365 Business Central includes production BOMs, production orders, routings, material consumption, output, planning, capacity, and costing as part of its manufacturing functionality.
For process manufacturers that require more specialized control over formulas, batches, R&D, or quality processes, Yaveon 365 can extend that Business Central foundation with additional industry-specific applications.
The distinction is important. A manufacturer may not need to replace its ERP simply because its formula processes have become difficult to manage. In many cases, the better approach is to extend a strong ERP foundation with functionality designed for the realities of process manufacturing.
What Should Formula Management Software Do?
Once you recognize that your current process is creating problems, the next question is what better formula management software should actually provide.
The answer will vary depending on your industry and production environment, but formula management should generally go well beyond storing a list of ingredients.
A strong solution should help you:
- Centralize formulas and maintain controlled versions
- Scale ingredient requirements for different production quantities
- Record batch-specific adjustments and substitutions
- Connect formulas with manufacturing instructions
- Manage the transition from R&D into production
- Compare planned consumption and yield against actual results
- Connect formulas with lot and batch traceability
- Incorporate quality inspections and release processes
- Understand production costs and maintain a reliable batch history
Just as importantly, formula management should connect with the rest of the business.
Purchasing needs to know which ingredients are required. Inventory needs visibility into available lots and quantities. Production needs accurate formulas and instructions. Quality needs access to inspection requirements and results. Finance needs reliable costing data.
When each of those functions works from a different spreadsheet or application, formula management becomes another disconnected process. When they are connected through the ERP, the formula becomes part of a much larger production record.
The right solution should ultimately make it easier to answer three basic questions:
What were we supposed to make? What did we actually make? And can we prove how we made it?
Can Microsoft Dynamics 365 Business Central Manage Formulas?
Microsoft Dynamics 365 Business Central provides many of the core capabilities a process manufacturer needs to run the business.
Out of the box, Business Central includes manufacturing functionality for production BOMs, production orders, material consumption and output, inventory management, purchasing, costing, planning, lot tracking, and other manufacturing requirements.
For some manufacturers, those capabilities may be enough to manage relatively straightforward production requirements.
Formula-based manufacturing, however, can introduce additional requirements around recipe development, batch-oriented manufacturing, quality management, lot attributes, compliance, and other process-specific workflows.
This is where an extension such as Yaveon 365 can add more specialized process manufacturing functionality while keeping Microsoft Dynamics 365 Business Central as the underlying ERP.
Rather than replacing Business Central, Yaveon provides a collection of applications designed to extend it with process-industry functionality. Its current application portfolio includes Manufacturing, Research & Development, Quality Assurance, Lot Management, Joint Production, Costing, Compliance, and other specialized capabilities.
For a process manufacturer, that can create a connected environment where:
- Business Central provides core ERP functionality across finance, purchasing, inventory, manufacturing, sales, and costing
- Yaveon 365 adds specialized process-manufacturing functionality where additional capabilities are required
- Production, inventory, quality, and financial data can remain connected within the Business Central environment
Sabre Limited works with process manufacturers to implement Microsoft Dynamics 365 Business Central with Yaveon 365 for requirements such as formulas, batches, quality, traceability, inventory, and financial management.
The question, therefore, is not simply whether Business Central can store the components required to manufacture a product.
The better question is whether your ERP and process-manufacturing functionality can support the way your company actually develops, produces, adjusts, tracks, and costs its formulas.
How Many of These Signs Apply to You?
Not every manufacturer needs dedicated formula management software right away. But the more of these problems you recognize, the more worthwhile it becomes to examine whether your current approach is creating unnecessary work, risk, or production inefficiencies.
As a general guide:
- 0–1 signs: Your existing approach may still be serving your business well, particularly if your formulas and production requirements are relatively simple.
- 2–3 signs: It may be worth examining where manual processes or disconnected systems are creating extra work, risk, or visibility problems.
- 4+ signs: A dedicated formula management solution is likely worth evaluating, particularly if these issues affect multiple departments or occur regularly.
These are not hard thresholds. A single issue can be significant enough to justify change if it creates substantial quality, traceability, costing, or production risk.
The bigger question is not whether your team can continue managing formulas through spreadsheets, manual calculations, or disconnected systems.
It is whether those processes will continue to work as your business adds more products, batches, employees, customers, and regulatory requirements.
See How Formula Management Works in Business Central
If several of these signs sound familiar, it may be worth seeing what a more connected approach looks like.
Sabre Limited helps process manufacturers implement Microsoft Dynamics 365 Business Central with Yaveon 365, connecting core ERP functionality with specialized capabilities for formula-based and batch-oriented manufacturing. Sabre currently works with manufacturers across industries including food and beverage, chemicals, cosmetics, pharmaceuticals, and nutraceuticals.
Instead of adding another spreadsheet or standalone system, the goal is to give your team better control over what you make, how you make it, what happened during each batch, and the business data behind production.
Want to see how formula management can work within Microsoft Dynamics 365 Business Central? Contact our experts at Sabre Limited to schedule a free 30-minute consultation.
