Dynamics 365 Recipe Management Software for Food and Beverage Manufacturers

By Jonathan Cotten | May 21, 2025

Recipe Management Software for Food and Bev Manufacturers

As a food and beverage manufacturer, your recipe management software system should handle everything from flavor continuity to regulatory compliance.

Managing recipes manually or with basic tools can cause problems like fulfillment delays, ingredient shortages, or product recalls. A robust ERP solution like Microsoft Dynamics 365 Business Central for small to medium-sized businesses or Finance and Supply Chain Management (FSCM) for larger enterprises streamlines recipe management and helps avoid unnecessary and costly interruptions.

Dynamics 365 Recipe Version Control for Food & Beverage

Microsoft Dynamics 365 offers powerful ERP solutions that help food and beverage manufacturers create, update, and track recipe changes. These tools can help you efficiently manage product formulations, ingredient specifications, and production processes while maintaining quality and compliance.

Recipe Development

Dynamics 365 ERP makes the recipe development process as straightforward as possible with:

Formulation Management

  • Version Control and Status: Keep track of different recipes, including sub-formulations (recipes within recipes). Tag and sort versions as in use, approved, outdated, etc, for enhanced formula tracking.
  • Automatic Versioning: Automatically generate new versions when ingredients or formulations are modified and create version numbers for each recipe change.
  • Comparison Tools: Compare two or more recipe versions to identify differences in ingredients, quantities, or processing methods.
  • Alerts and Notifications: Receive alerts when a recipe version becomes obsolete or non-compliant.
  • Document Management: Attach supporting documents, test results, and approvals to each version.

Ingredient and Allergen Management

  • Nutritional Calculations: Automatically update nutritional values when a recipe changes.
  • Ingredient Substitution Tracking: Maintain a log of approved ingredient substitutions and their impact on recipes.
  • Allergen Management: Automatically flag potential allergen risks when ingredients change.
  • Supplier Linkage: Link specific ingredient versions to approved suppliers for traceability.

Improved Workflow

  • Role-Based Access: Restrict recipe editing and approvals to authorized personnel only.
  • Change Log and Audit Trail: Record all changes with timestamps and user credentials. Maintain a detailed history of who made changes, when they were made, and what was modified.
  • Notification and Alerts: Automatically notify relevant stakeholders when a recipe version is updated.
  • Approval Routing: Route proposed recipe changes to relevant managers or departments for approval, ensuring changes are validated before production.
  • Recipe Cost Analysis: Calculate production costs, expected yield and waste, and ingredient substitution impact for each version of a recipe.
  • Custom Reports: Generate reports on version changes, ingredient adjustments, and production impacts.

Batch Scaling

  • Batch Formula Management: Adjust ingredient proportions, quantities, and substitutions for different batch sizes while maintaining consistency. Adjust ingredient quantities to optimize yields without compromising quality.
  • Batch Record Generation: Automatically generate batch records based on the latest recipe version.
  • Production Scheduling: Plan food production runs using the most recent and approved recipes.

Quality Control

Recipe quality control relies on accuracy and consistency throughout production. Dynamics 365 ERP can assist with:

Labeling and Documentation

  • Automated Label Updates: Reflect changes in ingredients or nutritional values directly on product labels.
  • Document Generation: Create ingredient lists, nutritional panels, and compliance certificates based on the latest version.
  • Language and Region Customization: Update labels for different markets and comply with local regulations.

Compliance

  • Automated Quality Checks: Integrate quality control parameters specific to each recipe version to ensure the final product meets established standards and customer expectations.
  • Regulatory Compliance: Track compliance with food safety standards (like FDA, HACCP, and USDA).
  • Lab Testing Records: Attach laboratory results to specific recipe versions to verify quality and safety.
  • Quality Control Cost Tracking: Calculate costs related to testing, inspection, and validation, as well as the financial impact of defective batches.

Dynamics 365 Production Costing for Food & Beverage

Microsoft Dynamics 365 ERP solutions offer comprehensive costing modules specifically designed for the food and beverage industry. These modules help manufacturers accurately calculate, track, and manage production costs, optimizing profitability and cost efficiency. Here’s a breakdown of the key modules:

Cost Accounting Module Features

  • Cost Allocation: Track and allocate costs throughout the production process and assign costs to specific production orders, batches, or product lines.
  • Direct and Indirect Costs: Track both direct materials (like ingredients) and indirect costs (like utilities and labor).
  • Cost Elements: Break down costs into categories (raw materials, labor, overhead, waste).
  • Variance Analysis: Compare standard versus actual costs to identify discrepancies.
  • Cost Impact Analysis: Evaluate how ingredients or formulations change affect overall production costs.

Bill of Materials (BOM) Costing Module Features

  • Automated Updates: Calculate costs associated with each recipe or product formulation. Automatically recalculate costs when ingredient prices change.
  • Ingredient Costing: Track the cost of raw materials, additives, and packaging.
  • Multi-Level BOM Support: Handle complex recipes with sub-formulations and intermediate products.
  • Cost Roll-Up: Aggregate costs from sub-assemblies to final products.

Inventory and Warehouse Management Module Features

  • Real-Time Valuation: Monitor raw material and finished goods inventory with real-time cost updates.
  • Cost Methods: Support for FIFO, LIFO, Standard, and Weighted Average Costing.
  • Shelf-Life Cost Impact: Account for costs related to expired or wasted ingredients.
  • Lot and Batch Cost Tracking: Link costs to specific lots or batches to maintain traceability.

Production Order Management Module Features

  • Cost Estimation: Generate estimated production costs before initiating an order.
  • Actual Cost Calculation: Track the cost incurred in individual orders during production.
  • Production Cost Breakdown: View detailed cost components, including labor, ingredients, and overhead.
  • Variance Reporting: Identify differences between estimated and actual costs.

Financial Management and Reporting Module Features

  • Automate Cost of Goods Sold (COGS) Calculation reporting based on production data.
  • Evaluate profit margin by comparing revenue to production costs.
  • Create financial statements with direct integration with general ledger and accounting records.
  • Generate detailed reports on cost performance and profit analysis.

Production Planning and Scheduling Module Features

  • Estimate costs for scheduled production batches.
  • Calculate capacity and resource costs like labor, machinery, and utilities.
  • Simulate cost impacts under different production scenarios.

Let Stoneridge Software Implement Your Dynamics 365 ERP

As a certified Microsoft Solutions Partner for Business Applications, we deploy Dynamics 365 ERP software for manufacturing companies nationwide. Talk to the Stoneridge experts today to see how we can help.

Jonathan Cotten
Our Verified Expert
Jonathan Cotten

Jonathan Cotten has a strong focus on the Food and Beverage industry, where he helps manufacturers improve visibility, efficiency, and compliance with the right technology. He understands the unique challenges of F&B such as traceability, rebates, and catch weight, and works with businesses to implement solutions that fit their operations and goals.

His expertise extends across the Microsoft stack, including Dynamics 365, Power Platform, and Business Central. Beyond food and beverage, Jonathan’s career spans a variety of industries and technology roles, giving him the depth to connect business needs with practical strategies that ensure long-term value.

Read More from Jonathan Cotten

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