Hello,
I have an issue with subcontracting in Dynamics 365 Finance and Operations when a production order is created by firming a planned production order.
The product structure contains the following items:
- A semi-finished product manufactured in an external warehouse.
- A finished product stored in the main warehouse.
- An item representing the subcontracting/cutting service.
- A semi-finished component stored in the warehouse.
- A planning item configured for the semi-finished product.
The expected process is as follows:
- When demand is created for the finished product, Master Planning generates the required planned transfer orders and planned production orders.
- One of the planned production orders is created for the semi-finished product manufactured in the external warehouse.
- The BOM for this production order should contain the subcontracting/cutting service line.
- After estimation of the production order, a purchase order for the subcontracting service should be created automatically.
The issue occurs when I firm the production order from Planned Orders while Planning Optimization is enabled.
In this case, the production order is created, but the subcontracting/cutting service line is missing from the production BOM. As a result, after estimating the production order, the purchase order for the external service is not created.
However, when I create the same production order manually:
- the subcontracting service item appears correctly in the production BOM,
- the production order can be estimated,
- and the related purchase order is generated automatically.
The subcontracting setup appears to be correct:
- the BOM line type is set to Vendor,
- an approved vendor is assigned,
- a trade agreement is configured for the service item,
- and the BOM and route are active and valid.
The problem only occurs when the production order is created by firming a planned order with Planning Optimization enabled.
Could you please advise:
- Why is the Vendor-type BOM line omitted when the planned production order is firmed?
- Are Vendor-type BOM lines and subcontracting fully supported by Planning Optimization?
- Is there any additional setting required on the master plan, coverage group, item coverage, BOM line, route operation, or production control parameters?
- Is this a known limitation or issue in Planning Optimization?
Thank you in advance for your help.

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