subcontractor work in production order

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I have a requirement here which needs to ship the raw material(Material A) to the supplier, the supplier will send it(Material B) back when they finish processing it(suppose they paint the raw material A and send it back as B).

what we would like is tracking the items numbers sent to the supplier and the inventory changes, (the cost of shipping is not considdered at the moment).

and the semi-items numbers that received from the supplier.

1. if we cannot meet the requirement as above, what is the recommended solution for satisfying this kind of requirement?

2. each item has "default order settings" such as "Purchase Order", "Production", and if the item is also one component item in the BOM, it has "BOM line types" such as "Item", "Phantom", "Pegged Supply" and "Vendor". suppose one item has four different settings in the table as below,

For the combination 1 and 4 they are used for producing the semi-product or purchase item from vendor,, i just want to know under what situation 2,3 should be used?

Combination	Default order settings	BOM line type	Result
1	Production	Pegged Supply	sub-production order
2	Production	Vendor	???????
3	Purchase Order	Pegged Supply	???????
4	Purchase Order	Vendor	purchase order

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Community Member on at

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One method would be to use a separate warehouse for the Subcontractor. Then, use a Transfer Order or Transfer Journal for moving the product. Transfer orders include processes for shipping and receiving and an associated report that you can print. Transfer the product to the subcontractor warehouse. Then, transfer the product back to the original warehouse or another warehouse.

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Weaveriski 23,618 Moderator on at

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To add to this you consume the BOM from the subcontractor warehouse, and if you used planning with zero stock holding the system would suggest a transfer order in line with the BOM Component requirements.

If you added a service item with type Vendor it would also produce a sub-contractor purchase order with a service item price to reflect the service the vendor is providing.

This starts to answer your second question, the vendor type is used in sob-contracting. The pegged supply type will create a sub-production order (reference order) linked to the parent production order. The sub-production is only ever made when the parent production order is made. I believe the purchase order pegged supply is the same as a requirement, which means you order it when you need it (you would need to check the impact on inventory on this setting but I believe it is fine, in reality not sure you would configure pegged supply with PO).

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Roshani 20 on at

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Hi Steven,

I have red your above described explanation of different options of sub-contracting available in AX 2012. I have a question on consuming BOM.

I am trying a scenario in which a sub-contractor warehouse will be maintained with Zero stock holding. Whenever production order is created for sub-contractor, AX shall suggest transfer order in line with BOM requirement. So that i can always track inventory issued to sub-contractor for service/production work. But i could not get AX function as required.

I have configured following in AX:

1. Warehouse (named VendWH) for sub-Contractor - attached Vendor account with it, considering that AX will treat as vendor warehouse

2. Product Item -Stitched Shirt

BOM lines:

a. Fabric, warehouse=VendWH, type=BOM, Qty=2.0 mtr

b. SericeCharges , type=Vendor (attached vendor account with it) qty=1

Now when i create Production Order and starts it. AX automatically creates PO for service cost but does not suggest or create a Transfer Order.

What configuration i am missing or what and where i shall check if something is being ignored by me.

Thanking in advance for your suggestion and guidence

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Weaveriski 23,618 Moderator on at

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You need to run planning for the transfer order to be suggested - you can do this from the explosion on the production order once created, or even before depending upon timing.

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