Microsoft Dynamics 365 for Operations Non-Conformance Reporting

A non-conformance is an unexpected event or deviation from specified requirements or procedures. When a non-conformance occurs, it can lead to budget overruns, project delays, rework, unnecessary scrap of materials, decreased productivity or product recalls, just to name a few examples. In Microsoft Dynamics 365 for Operations non-conformances are used to record and report anything that may be an issue with a product.  However, non-conformance do not track issues associated with either projects or processes.

Non-conformances can be associated with Customers, Vendors, Service requests, Production, and Internal processes.

For example, in the Production control module, when an output of a production or a batch order fails to meet the accepted standards, a non-conformance record can be inserted directly from the Production order form.

  • Navigate to Production control > Production orders > All production orders and other related forms


  • If a new Non-conformance is inserted from the Production form, the Non-conformance type is assigned as Production. The Reference number on the Non-conformance is populated with the Production order number (on the Quality information tab):

Ellipse Plastics product has added a number of features for the Dynamics 365 for Operations Non-conformances.

Project Tracking

The first feature offered in Ellipse Plastics product for Non-conformances is the ability to link a Non-conformance to a project. This option allows users to consolidate and report projects based non-conformances.

Project ID

  • If a Non-conformance is generated from a production order, the users are able to manage the associated Project ID.
  • If the Non-conformance type is Customer and values in the Reference number and Reference lot show the link to a Sales order and a Sales order line, the Non-conformance Project ID is populated with the Project ID from the Sales order line.

  • If the Non-conformance type is Vendor and values in the Reference number and Reference lot show the link to a Purchase order and a Purchase order line, the Non-conformance Project ID is populated with the Project ID from the Purchase order line.
  • When a Non-conformance is created for a Sales order or a Purchase order and the value is copied from the corresponding line, it will not be editable.

Tracking Production Shifts for Non-conformances

Another useful option Ellipse Plastics offers for non-conformances is the ability  to track the production of goods and associated non-conformances by shift. This feature provides an opportunity to statistically evaluate manufacturing issues and recorded non-conformances with regards to production shift quality assessment.

The same entry allows to track a machine operator or another worker in charge of production.

For Non-conformances of the type other than Production or Co-product production, the Shift field is not relevant. .

Multiple Operators per Non-conformance

A worker who is responsible for a Non-conformance can be selected from a list of Employees and Contractors. In standard Dynamics 365 for Operations, only one Worker responsible can be assigned to a Non-conformance.

Ellipse Plastics enables an option to designate multiple operators to the same non-conformance:

Non-conformance Report

The Non-conformance report provides detailed analysis about non-conformances by type, date, problem, project, workers responsible and shift. It is accessible from the Non-conformance form > the Print button.

Have other Microsoft Dynamics 365 for Operations Inquires or needs? Visit our Help Desk page to see how our experts can help!

For more information please contact Ellipse Solutions at or by calling our corporate office at (937) 312-1547.

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