Set up locations for subcontracting

Each subcontractor needs a location so that Business Central knows where components are consumed or transferred. This article explains how to configure subcontracting locations on vendor cards and set up transfer routes.

To learn more about how locations are assigned to components at runtime, and how transfer orders move materials, go to Manage components in subcontracting.

Set up subcontracting locations for vendors

Each subcontractor vendor can be assigned one subcontracting location. This location represents the subcontractor's workshop where components are sent and where output is received. We recommend that you define a separate location for each vendor. The location cannot use warehouse handling features such as bins, picks, or put-aways.

1. Choose the icon, enter Vendors, and then choose the related link.
2. Open the vendor card for the subcontractor.
3. On the Shipping FastTab, in the Subcontracting Location Code field, specify the location.

The Linked to Work Center field shows whether the vendor is connected to a work center. Business Central creates this link automatically through the Subcontractor No. field on the work center card.

Set up transfer routes

For components with the Transfer to Vendor component supply method, set up transfer routes between your locations and the subcontractor locations.

1. Choose the icon, enter Transfer Routes, and then choose the related link.
2. Create a new route with the following information:
   • Transfer-from Code: The location where the component is stored.
   • Transfer-to Code: The subcontracting location code from the vendor card.
   • In-Transit Code: A transit location for the transfer.

If no transfer route is configured between two locations, Business Central automatically uses a direct transfer (without a transit location) when creating transfer orders.

Important

If the transfer-from or transfer-to location uses advanced warehouse settings (such as Require Pick, Require Shipment, Require Receive, Require Put-away, or Directed Put-away and Pick), you must configure a transfer route with an In-Transit Code. Direct transfers aren't fully supported with locations that require warehouse handling, and transfer order creation or posting can fail.

We recommend that you always set up transfer routes with an in-transit location, both from your warehouse to each subcontractor location and back. Also review the Direct Transfer Posting field on the Inventory Setup page to control how direct transfers are posted if some routes don't have an in-transit code.

To learn more about which transfer modes work with each warehouse configuration, go to Supported combinations for WIP transfers and Supported combinations for component transfers.

Related information

Manage components in subcontracting
Set up subcontracting
Manufacturing
Setting Up Manufacturing
Inventory
Work with Business Central

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