8.1 Quality Control Setup: Tests, Test Groups, and Item Sampling
Key Takeaways
- Quality control functionality requires global activation in Inventory and warehouse management parameters, establishing number sequences and default hourly operational rates.
- Quantitative tests evaluate continuous numeric metrics against standard targets and minimum/maximum tolerances, while qualitative tests validate discrete categorical attributes against pass-flagged variable outcomes.
- Test groups aggregate individual tests into reusable inspection checklists, define Acceptable Quality Level (AQL) defect thresholds, and specify whether testing physically consumes inventory via the Destructive test toggle.
- Item sampling controls inspection lot sizing through Fixed quantity, Percentage, or Complete lot methods, with the Full blocking parameter dictating whether uninspected lot quantities remain available or locked during testing.
- Certificates of Analysis (CoA) document specification compliance for outbound shipments, configured via CoA groups and models, and triggered automatically at packing slip or invoice posting based on customer master settings.
8.1 Quality Control Setup: Tests, Test Groups, and Item Sampling
Quick Answer: In Microsoft Dynamics 365 Supply Chain Management (D365 SCM), quality control establishes repeatable inspection standards for purchased, manufactured, and inventoried goods. Foundational setup requires enabling quality parameters, defining Quantitative tests (numeric boundaries) and Qualitative tests (test variables with Pass/Fail outcomes), grouping them into Test groups with Acceptable Quality Levels (AQL) and Destructive test parameters, configuring Item sampling rules (Fixed, Percentage, or Complete lot) with Full blocking controls, and managing customer Certificates of Analysis (CoA).
1. Quality Management Parameters and System Enablement
Quality management must be activated globally before orders or nonconformances can be processed:
- Navigation:
Inventory management > Setup > Inventory and warehouse management parameters - Open the Quality management tab to configure foundational settings:
- Use quality management: Enables automated quality order generation, quality associations, and nonconformance tracking across supply chain processes.
- Hourly rate: Sets the standard labor cost per hour applied when recording operational time on nonconformance corrections or quality inspections.
- Quality order status update: Determines whether inventory blocking clears automatically upon validation.
- Number sequences: Assign continuous number sequences for Quality order ID, Nonconformance ID, Correction ID, and Certificate of analysis ID under
Organization administration > Number sequences > Number sequences.
2. Quantitative Tests vs. Qualitative Tests
Quality inspections evaluate physical items using two distinct test paradigms configured under Inventory management > Setup > Quality control > Tests:
Quantitative Tests
Measure continuous numerical metrics such as density, tensile strength, viscosity, dimensions, or chemical concentrations.
- Data Type: Configured as
Integer(whole counts) orReal(decimal numbers). - Test Unit: Unit of measure (e.g.,
mm,kg,pH,psi). - Standard Value: The engineering baseline target (e.g.,
7.00 pH). - Min / Max Limits: The allowable tolerance range (e.g., Min =
6.80, Max =7.20). Any reading outside this band fails the test.
Qualitative Tests
Evaluate discrete characteristics that cannot be expressed as continuous numeric ranges, such as surface finish, color match, seal integrity, or visual clarity.
- Data Type: Configured as
Option. - Test Variables and Outcomes: Navigate to
Inventory management > Setup > Quality control > Test variables. Define a variable (e.g.,COLOR_CHECK) and click Outcomes to list allowable values (e.g.,Clear,Turbid). - Pass/Fail Outcome Status: Each outcome record has an Outcome status checkbox. Marking it indicates a
Pass; leaving it cleared indicates aFail. D365 SCM references this flag when validating qualitative inspection lines.
| Attribute | Quantitative Tests | Qualitative Tests |
|---|---|---|
| Data Type | Integer or Real (numeric) | Option (enumerated values) |
| Tolerance Definition | Numerical Min, Max, and Standard values | Discrete list of Test Variable Outcomes |
| Pass/Fail Criteria | Recorded value falls within Min $\le \text{Value} \le$ Max | Selected outcome has Outcome status = Pass |
| Measurement Unit | Mandatory (e.g., mm, kg, pH) | Not applicable |
| Typical Use Cases | Hardness, moisture %, voltage, thickness | Cosmetic blemishes, odor, seal integrity |
3. Test Groups: Aggregation, AQL, and Destructive Testing
A Test group aggregates individual quantitative and qualitative tests into a reusable inspection checklist.
- Navigation:
Inventory management > Setup > Quality control > Test groups
Header Settings
- Acceptable Quality Level (AQL): Statistical threshold defining the maximum allowable defect percentage across the inspected sample.
- Item sampling: Associates the sampling rule governing inspection quantity.
- Destructive test: Indicates whether testing consumes or permanently destroys the sample (e.g., break-force testing or chemical titration).
[!IMPORTANT] Destructive Testing Accounting: When Destructive test is enabled, validating the quality order generates an Inventory issue transaction (
Deduct) against the inspection dimensions, permanently writing off sampled stock to the scrap loss account configured in inventory posting profiles.
Lines Configuration
The Lines FastTab defines the specific tests:
- Sequence: Controls test execution order.
- Standard / Min / Max Overrides: Overrides default test boundaries for specific item contexts.
- Action on failure: Set to
Warning(logs an alert but allows order validation) orReject(fails the entire quality order if this test line fails). - Certificate of analysis: Flags test results for inclusion on customer-facing CoAs.
4. Item Sampling: Methodologies and Blocking Controls
Item sampling determines how many physical units are drawn for inspection from an inbound receipt, sales order, or production run.
- Navigation:
Inventory management > Setup > Quality control > Item sampling
Sampling Methodologies
- Fixed quantity: Inspects an absolute count (e.g., exactly
5 ea) regardless of total lot size. - Percentage: Inspects a proportional ratio (e.g.,
10%of a 500-unit receipt yields 50 sample units). - Complete lot: Inspects
100%of the lot; every unit is tested. - Apply per updated quantity: Recalculates sample sizes against each partial receipt or registration rather than the total order line.
Full Blocking vs. Sample Blocking
| Parameter State | Physical Inventory Impact | Reservation & Fulfillment |
|---|---|---|
| Full blocking = Enabled | The entire order/lot quantity is locked. | If 1,000 units arrive and 50 are sampled, all 1,000 units are blocked from picking and shipping until inspection passes. |
| Full blocking = Disabled | Only the sampled quantity is locked. | If 1,000 units arrive and 50 are sampled, only 50 units are locked. The remaining 950 units are immediately reservable and shippable. |
[!WARNING] Exam Trap — Full Blocking: Candidates often assume a quality order only locks sampled units. If Full blocking is enabled on the Item Sampling record, D365 SCM locks the entire delivery from warehouse movement.
5. Certificate of Analysis (CoA) Framework
A Certificate of Analysis (CoA) is an official document certifying that delivered items meet agreed specifications, displaying test results alongside tolerances.
- CoA Groups and Models:
Inventory management > Setup > Quality control > Certificate of analysis groups / models. Models define report layout, customer specification references, and min/max display options. - Customer Master Requirements:
Sales and marketing > Customers > All customers > Quality tab. Configure the Certificate of analysis requirement:Never: No CoA is printed.At packing slip: Automatically generates and prints the CoA during sales packing slip posting.At invoice: Automatically generates and prints the CoA during sales invoice posting.
- Validation Rule: A CoA can only be generated for quality orders that have been successfully validated with a
Passoutcome.
6. Practical Implementation Scenarios and Exam Tips
[!TIP] Exam Tip — Qualitative Pass/Fail Resolution: If a qualitative test fails despite selecting an outcome, inspect the Test variable outcomes table. If the Outcome status checkbox is cleared, D365 SCM treats that outcome as a rejection.
[!NOTE] Exam Tip — Posting Profile for Destructive Testing: Destructive tests post an inventory issue transaction. Ensure the
Inventory, issueposting type is mapped to a valid P&L scrap account underInventory management > Setup > Posting > Posting.
A quality manager at a chemical manufacturing plant configures a test group for evaluating the tensile strength of newly formulated composite polymer sheets. Conducting this physical test permanently breaks the sample coupon. How should the functional consultant configure the test group in Dynamics 365 Supply Chain Management to ensure inventory levels accurately reflect this physical destruction?
A distributor receives a purchase order of 1,000 precision electronic microchips. Due to high vendor reliability, company policy dictates that an inspection sample of 50 units must be checked by the quality department. However, warehouse operations must immediately be allowed to reserve, pick, and ship the remaining 950 microchips to fulfill pending customer orders without waiting for the inspection to finish. How should the functional consultant configure the item sampling record?
A pharmaceutical distributor must automatically provide a Certificate of Analysis (CoA) to specific regulated healthcare customers whenever goods are dispatched. The CoA must document that all chemical assay test results fall within approved standard ranges. Where must the functional consultant configure the requirement to guarantee that the Certificate of Analysis is generated during outbound order fulfillment?