Hi all,
Regarding the costing of subcontracted services in lean manufacturing, it is said in this article that a product with type of Service and item model group with standard costing method is required:
https://learn.microsoft.com/en-us/training/modules/configure-subcontracting-flow-dyn365-supply-chain-mgmt/12-standard-cost
Subcontracted services in lean manufacturing are by definition non-tangible products of the type Service. This definition implies an inventory model group with the Stocked product check box cleared. For the cost calculation for output products that are based on production flow, a standard cost needs to be maintained for the services that are related to subcontracted activities. The cost group that is assigned to the services is used to determine cost variances of the subcontracted services.
However, as I understand the standard costing method cannot be used for items with type Service. How can I set up the costing for subcontracted services?
Thanks,
