Subcontract Purchase Order is not Creating when the Planned Production order is Firmed

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Posted on by John Fortino

Hi All,

I am setting up the subcontracting process in D365 for a site go-live activity. If I manually create a production order for a subcontract item, then estimate it, the subcontract PO generates as expected. Works just fine.

1. When I create a sales order for the same item and run MRP, a planned production order is created as expected (highlighted in yellow)

2. When I firm the planned order, however, the subcontract PO is not being created through the estimation process during firming. Highlighted in red I can see that the production order was estimated but to the right, there is no subcontract PO

3. If I manually click on the estimation button for the production order, then the subcontract PO is created.

My expectation of D365 would be that the subcontract PO is generated when I firm the planned order during the estimation process. Has anyone seen this issue? Know how to fix? This is driving me crazy trying figure out.

Thanks

John Fortino

IT Business Analyst

john.fortino@allegion.com

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Francesco 524 on at

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Hi John,

The purchase order for the subcontracting service should be created by MRP as a planned purchase order alongside your planned production order. When you firm your production order, the purchase order is automatically firmed too.

I'm not sure what causes the behavior that you describe,. Bit odd that it works manually. Would need a complete setup picture to tell you what might be wrong.

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Raphael Volk 35 on at

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Hi John,

can you please check the Production control parameters - Tab Status. There you can define, that the planning (Operation / Job schedule ) should also run the estimation first.

(the checkboxes are also used to define, which status can be set next...)

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John Fortino 31 on at

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Hi Raphael,

Thanks for your comments... This is how the parameters are currently setup...

Thanks,

John

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John Fortino 31 on at

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Hi Francesco,

Yes, when I firm the planned production order, there should also be a purchase order for the subcontract service created. I will either be able to see this on the BOM tab of the production order (as pictured below) or in Production Control > Operations > Subcontracted work. However, that is the basis of my problem. When I firm the planned order, the purchase order isn't being created.

After I've firmed the planned order, if I go back to the production order and "re-estimate" it, then the purchase order is created. There has to be a parameter issue somewhere as Raphael mentioned in his response. I'm just not sure which one it is

Thanks,

John

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Community member 2 on at

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Check your BOM line type. My guess is you're using "pegged supply" as opposed to "vendor". Vendor should automatically create the PO from estimating, but requires that the vendor ID is populated on the BOM line (which you obviously have done). Pegged supply is slightly more flexible and defers assignment of vendor to things like trade agreements, part defaults, etc. and might only be kicking in when those "references" checkboxes are ticked. You might also have an issue with the coverage code on the service item--make sure it's "requirement" in order for MRP to correctly plan the way you're describing. If it's something like min/max or period, there may be issues trying to automatically create the PO since it's supporting multiple parent production orders.

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John Fortino 31 on at

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Hi Chan,

Yes, the BOM Line Type for the service item on the BOM is vendor, so that isn't the issue.

However, I looked at the coverage code and it was set to MIN/MAX. I changed to Requirement as you suggested and viola... It worked! Thank you so much!

John

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