Purchase item with BOM

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Posted on by Michael_H

Hi,

I know that in other ERP systems it is possible to have a purchased item that has a BOM - is that possible in D365FO ?

We buy item B from a supplier, and for that we ship item A to the supplier - what it the best practice of setting this up in D365FO ? As a production setup with subcontracting or ?

Thank you

Michael

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Laurens vd Tang 2,248 Super User 2025 Season 1 on at

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Purchase item with BOM

Hi Michael,

A service item need to be configured for item B

Item B must be added to the BOM. The line type must be vendor and you need to enter a vendor.

If you want to create the transfer orders via Master planning for item A, then you need to configure also an item coverage group on the released product.

Best regards,

Laurens van der Tang

https://laurensvandertang.wordpress.com/
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Hana Xue Microsoft Employee on at

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Purchase item with BOM

Hi,
You can use the BOM and subcontracting functions to manage the purchase of materials with BOM. Items with a bill of materials (BOM) or recipe must be of planning item, BOM, or recipe type. You can view this link for information on creating a bill of materials. Create bill of materials in Dynamics 365 Supply Chain Management - Training | Microsoft Learn
Best Regards,
Hana
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Kevin Xia Microsoft Employee on at

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Purchase item with BOM

Hi,

Here's how you can set this up:

Item Configuration:

Set up item A and item B in the system with the necessary attributes.
For item B, create a production BOM that includes item A as a component.

Purchase Order Process:

When you need to purchase item B from the supplier, create a purchase order for item B.
Specify item A as a component in the purchase order, indicating that it needs to be shipped to the supplier.

Routing and Operations:

Depending on the complexity of the assembly process, you may need to define routing and operations for the production BOM to represent the steps the supplier needs to take when assembling item B.

Subcontracting Setup:

Consider setting up subcontracting parameters if the assembly of item B is performed by the supplier on your behalf.
This involves configuring subcontractor relationships and defining the appropriate accounts for financial transactions.

Best regards,

Kevin
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André Arnaud de Cal... 292,494 Super User 2025 Season 1 on at

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Purchase item with BOM

Hi Michael,

There are options to configure subcontracting for production orders. You can find information on Microsoft Learn: Manage subcontracting work in production - Supply Chain Management | Dynamics 365 | Microsoft Learn