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Production Planning & Scheduling Under Subcon Assumptions

Hi,

Trust you are well.

I have the following questions regarding demand generated by subcon orders.
As I have understood, BC uses the following process:

- Looks at all released production orders with atleast 1 subcon workcenter
- Converts production order to purchase order + work order
- Purchase order contains information on inventory supply
- Work order is basically for billing as per workcenter assumptions/labor etc.

Its unclear to me whether after the released production order is converted to subcon purchase order:

1. the component demand from the original released production order will be ignored or consider active by the planning engine?

2. if the subcon purchase order has been set to planning flexibility = None, then will the planning engine suggest a new production order, or will it assume that the demand is being fulfilled by the incoming subcon purchase order

Categories:

Dynamics 365 Business Central

I am going to hopefully clarify some of your points, which I hope answers your question(s).

The Production Order does not get converted to a Purchase Order
1. A Purchase Order is created for (linked to) a specific Operation on the Production Order
2. The Purchase Order is buying the services required to perform that Operation
Any components required for the sub-con Operation still exist and have demand
1. When the Purchase Order is "received" it posts Output against the Operation
2. IF the material is using Routing Link Codes (RLC) associated to the Operation, the system will consume the components
3. IF the material is not using RLC, you post your consumption manually

I hope this helps clarify how sub-contract Purchase Orders work in conjunction with Production Orders.

P.S. If the Production Order's final Operation is a sub-con Operation, the "Receive" process is posting Output of the Finished Good into your Inventory.

Best Regards,

Ben Baxter

Accent Software Inc

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