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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Item costing for Job O...
Small and medium business | Business Central, N...
Answered

Item costing for Job Orders

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Posted on by Jaunt 184

Hello Team,

Hope every one doing well!

Recently I came over one business scenario. I want suggestions from you people on this.

Scenario:

The Company 'A' is using Business Central and they're into the Steel TMT Rod manufacturing. Also, they take job orders from company 'B'.

The 'B' will provide Steel bars (Raw Materials) to  'A'. Then, 'A' will consume the bars for producing Steel TMT Rods. 'A' will send Steel TMT Rods to 'B' and invoice them as well.

Questions:

1. How to treat the Steel bars that are sent by 'B'? They are not 'A's' Raw Materials. 

2. What is the best way to meet this business scenario? I thought of creating a purchase order with Zero value but 'B' is sending invoice with value as they cannot transport the raw materials with zero value from one place to another.

Please share your thoughts.

Thanks in Advance!

I have the same question (0)
  • JAngle Profile Picture
    JAngle 152 on at

    If I’ve understood correctly. Worth doing some reading about the inter company (interco) capabilities. Possible process flow by company

    B: log a PO with the interco vendor company A. Use whatever item ref you want. Interco has mapping for that. Use the send interco PO function. This creates a sale in A. After this point it is a normal PO process.

    A: Using the interco inbox receive the orderi to create a SO. the BOM for the rod you will have the raw material B supply. Set that to use B as a vendor. Use the planning parameters in the system to run MRP and a PO will be suggested based on the SO received. Again use the interco feature to send the PO in A over to B. Repeat the interco inbox step but over in B. Normal processes after this

  • Jaunt Profile Picture
    Jaunt 184 on at

    Hi Josh,

    Thank you for sharing your knowledge!

    If A and B are intercompany then I will follow your method for sure. But B is not intercompany of A. B is a customer and like B, there are many companies are there for A.

    So, how to deal with this?

    Thanks in Advance!

  • Suggested answer
    JAngle Profile Picture
    JAngle 152 on at

    Have a customer and vendor record for B. Whether B is buying (sales wise) or not you still need it as a vendor for the raw material part.

    If you need a mixed ledger then it needs slightly more thought. As in B has a sales invoice and they settle it with a purchase invoice.

  • Jaunt Profile Picture
    Jaunt 184 on at

    Hi Josh,

    That's a fantastic idea!

    If I create B as customer and Vendor, I can create PO and SO. Can I create a PO with Zero cost? because B will supply all the raw materials for producing Steel TMT Bars.

  • Suggested answer
    JAngle Profile Picture
    JAngle 152 on at

    You can create PO’s at zero cost. If you intend to do this you will need dedicated items. If you were to buy the material from another vendor where you do have to pay it would muddle the costings if you used the same item record.

    To ensure a user doesn’t accidentally add a cost there is a field on the item called “Inventory Value Zero”. This will always make the value entries zero

  • Jaunt Profile Picture
    Jaunt 184 on at

    Hi Josh,

    Thank you so much and i'm clear now.

    I'll implement the concept now.

    Thanks & Regards,

    Revanth J

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