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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Sub contract component...
Small and medium business | Business Central, N...
Suggested Answer

Sub contract component shipping

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Posted on by Community member 9
Hello,
 
Can someone please help me with my question in case we send our own material to the vendor for processing.
 
I read on the internet we need to create a new location for this vendor in our company, create a transfer order to this new location, and consume components from this location. In this suggested process, where is the system documentation for the component shipment to the vendor? 
 
There is an audit requirement for us to indicate this shipment in our system. Transfer orders are only within our company, between different locations; if we consume the material in the suggested way, there won't be material available to ship to the vendor in the system. 

What is the solution to indicate this component shipment movement while keeping the link to sub-contract orders?
 
Thanks in advance for looking into my question. 
I have the same question (0)
  • Suggested answer
    KasparsSemjonovs Profile Picture
    KasparsSemjonovs 4,807 Super User 2026 Season 1 on at
    System does not contain functionality for this kind of transaction. 
    Transfer Order could be printed, and the layout adjusted to it would match a needed document. 
    Otherwise as in real life - the components are leaving Your warehouse, when you ship them to subcontractor, and only way system allows to decrease inventory is sales, consumption or negative adjustments through Item journal.
     
    If You would like to automate this part, then some development would be required. 
  • Suggested answer
    Ben Baxter Profile Picture
    Ben Baxter 6,769 Super User 2026 Season 1 on at
    The Transfer Order is your documentation for the Shipment to the Vendor.  A Transfer Order contains both a Ship and a Receive process.  You can print shipment paperwork during the Ship function, which will indicate the address of the Vendor shown on the Transfer-To Address (the Vendor's Location).
     
    If you need to tie your Transfer Shipment to a Subcontract Purchase Order, you would need to add a custom field with a Lookup to the Purchase Orders, so you can select the PO it relates to.  If you are doing a 1:Many, Transfer Order relating to multiple Purchase Orders, then you would build a table to store the linked Purchase Orders.
     
    If you don't have developers, your partner should be able to assist with this additional field.  You'll likely want a similar field on the Purchase Order to quickly go to any Transfer Orders related.
     
    If you found this information helpful, please mark it as a Verified Answer to assist other forum users.
     
    Best Regards,
    Ben Baxter
    Accent Software Inc
  • Community member Profile Picture
    Community member 9 on at
    Hi,
    Thank you for your responses. Really appreciate your insights.
    This subcontracting vendor is an inter company partner which makes my scenario a little complicated.
    Now question is from this vendor company perspective: 
    What is the suggested method to bring in component inventory from shipping company to manufacturing company? 
    usually we’d do a purchase order at zero cost. But since this is IC partner, this would trigger a SO at zero cost in sending company (due to IC setup.) If we are to do a Transfer order to consume this component within owning company, we cannot again do a SO and ship material again. 
     
    I’m looking to understand what would be the correct setup because we need to bring in this component and consume then in this real manufacturing environment too. 
     
    I hope my scenario is clear. Hope to hear your suggestions. 
  • Suggested answer
    Jun Wang Profile Picture
    Jun Wang 8,206 Moderator on at
    let's break it down into a few steps. you are making a finished production which has a bom of item A, B, C. You need to subcontract A to a subcontractor which is set up as a work center in BC as operation 1.
     
    1 create a location xyz for the subcontractor
    2 release production order, create a PO via subcontractor worksheet.
    3 create a transfer order to ship A to location xyz
    4 after subcontract work is done, receive A back to your production location
    5 post purchase order 
    6 consume A, B, C 
    7 post consumed capacity for the rest of the operations and post output
    8 finish the production order
     
     

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