Newbie to AX in need of help. :)
I have a finished good Z which with the following BOM line:
Item A (item line type)
Item B (bom-line type)
Item C (vendor line type)
Item B consists of raw materials B1 and B2, which are "assembled" by subcontractor. Item C is the subcontracted work, hence item type = service.
I have set up everything "correctly" so that when running Master Scheduling, a planned transfer order to subcontractor of raw materials B1 and B2 is generated. The subcontractor work is generated into a purchase order through firming of planned production order. Transferring the raw materials is relatively straight forward.
Note that there will also be 2 planned production orders i.e. for the finished good Z and for semi-manufactured Item B. Naturally the production order for semi-manufactured Item B must be finished before finished good Item Z can.
After I transfer the raw materials B1 and B2, and the subcontracted work is finished, the output would naturally be the semi-manufactured Item B. In order to finish producing the finished good Item Z, this would mean creating a transfer order of Item B back to our company from the subcontractor. My question is if this is the only way to manage this or if there is another way? Is this a limitation to AX 2009? Or does this require an integration of ERP system between our company and the subcontractor to simplify this process?
P.S. I created a subcontractor warehouse where raw materials B1 and B2 are transferred to. The receipt of these raw materials is also managed by our company which doesn't make sense because it is suppose to be the subcontractor who should do this.
Thanks in advance.
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Hi Rolly,
It depends on your setup for production reporting.
When you receive the outsourced goods from your vendor you have to receive them and then to report them as finished.
So this step of reporting as finished can be done automatically when you post product receipt for the related purchase order.
Also if you set it up it will automatically reduce the stock (consume material) on subcontractor warehouse.
Automatic BOM consumption - controls the material consumption of subcontracted work order if it is to be done automatically during PO receiving.
- Flushing principle - respects the flushing principle setup on bom line
- Always - consumes the material always disregarding the flushing principle
- Never
Automatic route consumption - controls the route consumption for subcontracted work order if it is to be done automatically during PO receiving.
- Route group dependent - respects the setup on route
- Always - consumes route always disregarding route setup
- Newer
Hi Nenad,
Thank you for your informative response. :)
I also couldn't see any other way than what I figured out about how AX works in this matter.
Regarding the Production Parameters and automatic consumption of BOM and Route, can you please explain it to me further in-depth? I have read about it but couldn't totally understand it.
Thanks in advance.
Hello Rolly,
first question - this is the only way to manage it correctly.
Second question - the whole business process is quite tricky and complicated and by itself requires a lot of administration.
Everything that you mentioned is correct - you create "specific" BOM and route, plan, transfer materials, execute outsourcing, receive outsourced produced goods, produce finished product. In some cases setup on Production control > Setup > Production control parameters > tab Automatic update > group > Receive purchase orders can help a bit to automatize the material consumption during the PO receiving. Integration between two systems can help but not too much because it will not bring much benefits in term of time saving.
There is a reason to use a subcontractor warehouse even if it is subcontractor who should monitor it and they do in their own ERP. With subcontracting warehouse you can use simple transfer orders to move the goods to "subcontractor", otherwize you would have to ship the materials to them. Second is that it is a nice way to monitor the stock in vendor warehouse and have two way verification for the stock and consumption.
Hope this helps,
Regards
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