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Can MRP only suggest a transfer order qty for only the needed qty

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I have a subcontractor location where I need to consume parts for production orders. The parts will come from the main warehouse and be transferred to the subcontractor location. I only want the planning engine to recommend a transfer order for the exact quantity needed to fulfill the order.

Is there a way to set this up? I have been experimenting with the Location and SKU, but I cannot figure out how to make this happen.

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Dynamics 365 Business Central

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BS-15042132-0 22 on at

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Can MRP only suggest a transfer order qty for only the needed qty

I wanted to update this post for anybody who comes across it later. I was able to find out why I could not get this to work. In my case, I had a produced item with one sub-component. I had set up SKU cards to the subcontractor location on both the main item card and the sub-component item card. That was fine for the sub-component, but not for the produced item. I should have set up a main warehouse SKU with the "components at location" set to the subcontractor location. Once I deleted the subcontractor location SKU on the produced item card and created a MAIN location SKU, it worked fine. Thanks to those who commented.
Ben Baxter 5,626 Super User 2025 Season 1 on at

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Can MRP only suggest a transfer order qty for only the needed qty

As long as you are using Routing Link Codes to match the BOM to the Operation, it should populate with the Work Center's Location when the Production Order is created (or Refreshed). If your Prod. Order existed prior to updating the WC, it was not going to update the Location unless you Refreshed the order. Now that your subcontractor WC is setup, try creating another Production Order and see if it pulls the correct Location.
BS-15042132-0 22 on at

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Can MRP only suggest a transfer order qty for only the needed qty

Ben, I was able to get it to work, but it appears I am missing a step. When I checked the line > components of the production order line, the location of the components was defaulting to my main warehouse. If I manually changed the location to the subcontractor location and re-run the plan, the transfer order is suggested. What drives the default location and bin code of the production line?

The components at location in the manufacturing setup is blank at the moment.

There is a fixed and default bin location for the component at both the main and subcontractor warehouses.

I see the pop up info on the location field of the lines > components that says the location code comes from the lines of the production order, which in this case is the main warehouse. I want the parent item to output to the main warehouse location which is why I have it that way.
BS-15042132-0 22 on at

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Can MRP only suggest a transfer order qty for only the needed qty

Hi, Ben. On the work center for the subcontractor, I have the location set up as the subcontractor location.
Ben Baxter 5,626 Super User 2025 Season 1 on at

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Can MRP only suggest a transfer order qty for only the needed qty

On your Work Center for the Subcontractor, what is on your Warehouse fast tab? This is where you define the Location that material is used when required for that Work Center:

When I said "Components at Location", but I should have actually opened BC and listed the correct field: "Location Code" on the Work Center. After you have this set, Refresh your Production Order, which should move the component demand to the subcontractor location and make MRP suggest the Transfer (according to the SKU for that Location).
BS-15042132-0 22 on at

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Can MRP only suggest a transfer order qty for only the needed qty

Ben and Black S, let me first say "thanks" for taking time to respond to questions on here. I am new to this forum and have been away from the functional side of BC for over 10 years. Things have changed a little :).

Black S., your steps are a little different, but the result is the same for me. I cannot get the TO to show up in order planning.

I was on the right track according to what Ben has below, but the planning engine still does not recommend a transfer order for the component qty. The only way I can get it to suggest a TO is if I have safety stock on the subcontractor SKU for the component.

Let me run through what I have done and hopefully you can help me figure out what part of your instructions I am missing.

1. My subcontractor location is set as bin mandatory with 1 bin.

2. I have a SKU for the prod order component at the subcontractor work center and set "components at location" to the subcontractor location. There is no "components at location" on the work center card that I know of (you recommended this).

3. On the same SKU, I have also specified the reording policy as lot for lot, set the replenishment system to Transfer, and set the transfer-from code as MAIN.

4. I have a transfer route from MAIN to the SUBCONTRACTOR location.

5. I have a routing link code set up between the routing and BOM.

6. There is no quantity on hand for the component at the subcontractor location.

7. When I run the calc. the regenerative plan, I have no filters outside of a date range wide enough to pick up the demand.

The req worksheet is suggesting a new production order for the produced item, but it does not recommend a transfer order to the subcontractor location for the component needed.
black_s 328 on at

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Can MRP only suggest a transfer order qty for only the needed qty

Do below.

1. Create an SKU for the subcontractor location.

2. In the SKU code, select the replenishment method as Transfer and the Transfer From Code field as the Main warehouse location.

3. Search for order planning and click on calculate plan.

4. Select the production order and create transfer orders.
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Ben Baxter 5,626 Super User 2025 Season 1 on at

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Can MRP only suggest a transfer order qty for only the needed qty

Yes, you need to set your Vendor Location as Bin Mandatory (just a single Bin is enough), then set that Vendor Location as the "Components at Location" on the Work Center record of the Subcontractor. The system will then need to consume the BOM Items linked to that Operation (via Routing Link Code) from your Vendor's Location. You will need a SKU for those Items at that Vendor Location with either Reordering Policy Lot-for-Lot or Order. Set the Replenishment System to Transfer on those SKUs. You will need to define the Transfer Route from your main warehouse to the Vendor's Location.

The Planning Worksheet will see the demand at the Vendor Location and suggest a Transfer.

Please give this a test (in a Sandbox environment) and mark it as a Verified Answer if it resolves your issue.

Best Regards,

Ben Baxter

Accent Software Inc

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