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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Item charge on Assembl...
Small and medium business | Business Central, N...
Answered

Item charge on Assembly orders

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Posted on by Alfredo Iorio 5

Hi All

I have a client with light manufacturing managed by a 3rd party.

The BOM is simple so I suggested using assembly orders. I now need a way to allocate the assembly costs for which the 3dr party will invoice.

Ideally, I would use an Item Charge but that is not available in the assembly order.

As a workaround I thought of using a vendor location for the assembly, post the A-Order in the vendor location and then transfer the stock so I can then create a Purchase invoice and apply the item charge to the transfer lines.

That might work but it looks a bit complex.

Is there any other way we can achieve this without development?

Thanks

  • Verified answer
    TiboCN Profile Picture
    TiboCN 60 on at
    RE: Item charge on Assembly orders

    Hello,

    I'm having the same business case, here is how we process for many years.

    1 - create resources (Part Number + Assembly as description)

    2 - Place a PO for the resource (i guess you need to pay for it)

    3 - Record the resource in the BOM with the right quantity and unit cost

    When you'll trigger the assembly order it will consume the resources automatically.

    PM me if you want me if you want a demo.

  • Verified answer
    jerome77 Profile Picture
    jerome77 on at
    RE: Item charge on Assembly orders

    Hi

    I believe that if you want to assign item charge to an assembly order, then yes you need to customize. I would add a resource as machine instead representing the third party. I am not sure how you want to invoice your third party (maybe outside of this process).

    Going back to  subcontracting if helpful.

    Step by step here for example:

    http://www.olofsimren.com/subcontracting-part-1-the-basics/

    Your third party is a vendor, you create a workcenter and assign this vendor. Assign this work center to your routing, then when the production order is created, one step will be your third party work, and you will generate a purchase order to invoice his work.

    Kind regards

    jerome

  • Teddy Herryanto (That NAV Guy) Profile Picture
    Teddy Herryanto (Th... 13,113 Moderator on at
    RE: Item charge on Assembly orders

    Didn't know that you can charge to transfer. I always have the impression that you can only charge to sales and purchase.

    Theoretically, you should be able to modify the system to charge to assembly. Not sure how easy it is.

    You can try suggesting it to Idea and hope that Microsoft will pick it up.

    experience.dynamics.com/ideas

  • Alfredo Iorio Profile Picture
    Alfredo Iorio 5 on at
    RE: Item charge on Assembly orders

    Terry.

    I also thought of using additional items in the assembly order.

    A service item cannot be used and a non-inventory item does not post to the inventory of the assembly output.

    It only posts a loss in the assembly consumption.

    It looks like Item charges can be applied to transfers receipt

    pastedimage1602012567236v1.png

    I wonder how hard it is to enable this feature with an extension. 

  • Alfredo Iorio Profile Picture
    Alfredo Iorio 5 on at
    RE: Item charge on Assembly orders

    We don't seem to have that option in the client environment. Could it be a version issue?

    Sorry but manufacturing is not my thing

    Rather than a service what we want to achieve is to assign direct costs of the assembly as a landed.

    The idea behind item charge seems to be what we need, it's a shame that we can't use it. After all, a posted assembly line does post to the inventory ledger so assigning a direct cost shouldn't be too hard.

  • Suggested answer
    Teddy Herryanto (That NAV Guy) Profile Picture
    Teddy Herryanto (Th... 13,113 Moderator on at
    RE: Item charge on Assembly orders

    I think you can only use subcontracting on Work Center. Not an option for assembly.

    If you use Item Charges, you can only charge to a Purchase or Sales Document. I don't think you can apply to transfer document.

    You can either use Resource, or do a Purchase Order to increase the stock and use that stock in assembly order, then invoice that order with the right cost.

  • Suggested answer
    jerome77 Profile Picture
    jerome77 on at
    RE: Item charge on Assembly orders

    Hi Alfredo,

    No way for you to use subcontracting process here? it looks very close to what BC is able to handle. Subcontracting is seen as a service with BC, I am not sure this is what you are looking for but could be an option.

    Regarding assembly, you can only use resource... it could be used as machine, handling the cost... but yes... my first idea would be subcontracting process

    Kind regards

    Jerome

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