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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Single service item wi...
Finance | Project Operations, Human Resources, ...
Suggested answer

Single service item with multiple prices for multiple finished goods in BOM

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Posted on by Huzaifa Mala 65

Hi All,

I have a scenario for production order BOM.

We have multiple finished goods(FG) and for each FG we receive services from our vendor. We then added a service item with stocked item model group to our BOM and this works fine. Now the problem arise that for each FG our vendor charges a different price which I'm not able to define. For example see below:

Finished Good

Service Item

Vendor price

Tee Shirt

CMT

100

Jeans

CMT

150

Jacket

CMT

200

Can someone please guide how can I incorporate this in my system? I need this to be auto rather than updating price on purchase order every time based on the FG.

A simple solution to this was to create different CMT item for each FG but that's a huge effort and we have around 100K plus items and new created each day.

Thanks,

Huzaifa Ashraf Mala

  • Huzaifa Mala Profile Picture
    Huzaifa Mala 65 on at
    RE: Single service item with multiple prices for multiple finished goods in BOM

    Hi Richard,

    The vendor charges per piece manufactured. For example to complete a CMT for tee shirt they charge us $100 but to complete CMT for a jacket they charge is $200.

    Thanks,

    Huzaifa

  • Suggested answer
    Richard Wehmeyer Profile Picture
    Richard Wehmeyer 1,004 on at
    RE: Single service item with multiple prices for multiple finished goods in BOM

    What is the unit (UOM) the vendor is using to charge for the service?

    If they price by time or weight you could use this as a reference in the BOM to drive qty

    For example, if the T-shirt requires 1 lb of starch for treatment use 1 lb of CMT in the T-shirt BOM, 1.5 lb of CMT in the Jeans.  Then set $100/lb as the price

    This is the way we price galvanizing and any variance would be resolved at invoicing

  • Suggested answer
    Huzaifa Mala Profile Picture
    Huzaifa Mala 65 on at
    RE: Single service item with multiple prices for multiple finished goods in BOM

    Hi Zain,

    I assume I can achieve this creating service item as a product master and add Configuration as a variant. Now for each finished good I can create a new configuration for this service item. Then I can create trade agreements using configuration and service item. Further I'll also check what Ludwig has mentioned and see what possibilities are available.

    Thanks,

    Huzaifa Ashraf Mala

  • Huzaifa Mala Profile Picture
    Huzaifa Mala 65 on at
    RE: Single service item with multiple prices for multiple finished goods in BOM

    Hi Ludwig,

    I'll check this one and update.

    Thanks,

    Huzaifa

  • Suggested answer
    Zain Mehmood Profile Picture
    Zain Mehmood 2,715 on at
    RE: Single service item with multiple prices for multiple finished goods in BOM

    Hi Huzaifa,

    You can align price groups per your CMT service per finished good. I understand that it will be difficult for you to create items per finished good. Create different price groups per finished good item, create a trade agreement relation per price group and CMT item.

    Whenever the purchase order for CMT item would be generated, you need to attach the required price group on the purchase order header.

    One thing you need to test here is that by changing the price group for an existing line the price changes or not. Otherwise you may have to create a new line for the CMT item in order to get the price according to the price group.

    Please mark YES against the answer that helps you. Thanks

    Warm Regards,

    Zain 

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Single service item with multiple prices for multiple finished goods in BOM

    Hi Huzaifa,

    For this kind of subcontracting, some companies use the 'old' standard cost pricing model where you can setup a specific fixed price that is used and any variance in that cost price is then recorded as a variance.

    Can you please have a look at the MS docs sites and search for the setup of production related subcontracting.

    There are some examples provided there how this needs to be setup.

    Best regards,

    Ludwig

  • Suggested answer
    Huzaifa Mala Profile Picture
    Huzaifa Mala 65 on at
    RE: Single service item with multiple prices for multiple finished goods in BOM

    Hi Ludwig,

    We can enter the prices in advance but the issue here is that price for CMT service is different for each finished good.

    And yes we can change the price on purchase order but we don't want to do that we need this to always fetched from trade agreement based on finished good being produced.

    On way to get this done was to create different CMT items per finished good and setup trade agreements based on that but even this solution can be used as last resort but its repetitive activity every time a new item is created.

    Thanks,

    Huzaifa

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Single service item with multiple prices for multiple finished goods in BOM

    Hello Huzaifa,

    I would say that this should work with the trade agreements if you know the price in advance and if the price is always the same. Once the BOM is used in the production order, a PO will be created with the price from the agreement, which can be changed if necessary; for example because the vendor charges a different price.

    Have you tested this already?

    Didn't it work ok?

    Best regards,

    Ludwig

  • Huzaifa Mala Profile Picture
    Huzaifa Mala 65 on at
    RE: Single service item with multiple prices for multiple finished goods in BOM

    Hi Ludwig,

    I have a Finished Good for which I have defined a BOM. Now in this BOM I have this CMT product which is "Service" type. In BOM line type is vendor for this CMT item as CMT item is a service received from our vendor.

    I need to do this for new Finished Goods hence there are no open production orders.

    Now assume I receive CMT service for three products from my vendor, for manufacturing of each FG my vendor charges a different price for CMT service.

    Now I have a single product for CMT service but I need to define different purchase prices for it based on Finished Good being produced.

    Lets say I'm producing a jacket and vendor provides CMT service for $200 to produce this jacket.

    At the same time I'm producing a tee shirt and vendor provides CMT service for $100 to produce this tee shirt.

    Can I somehow define this on trade agreements ? Or is there any workaround for this case?

    Thanks,

    Huzaifa Ashraf Mala

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Single service item with multiple prices for multiple finished goods in BOM

    Hello Huzaifa Ashraf Mala,

    Can you specify what element you refer to? Do you have FG on stock and want to add some service costs? Do you have an open production order? Do you refer to a sales order? Where and when do you add the service item, etc.?

    Please describe the process and the steps that have been processed so far.

    Thanks,

    Ludwig

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