Subcontract services in production order process in discrete manufacturing in Microsoft Dynamics 365 Finance and Operations

Sharing in simple steps with visuals on how to leverage Subcontract services in production order process in discrete manufacturing in Microsoft Dynamics 365 Finance and Operations

1) Create a released product of item type = service and stocked product in model group.

2) Setup BOM such that the line type is assigned as "VENDOR" for the service item

3) Ensure vendor is assigned on BOM or production BOM 

4) Upon production order estimation, D365FO would create a suibcontract PO

5) You can process/receive the PO and also consume in production picking list

6) Review in production cost calculation details, contribution of subcontract cost