Order subcontracting from production orders

Note

This early access feature is available only to Business Central partners who have a Dynamics 365 Business Central Partner Sandbox license and are located in the United States, United Kingdom, or Germany. Over time, availability will expand to include more countries/regions.

Early access features aren’t meant for production use and might have restricted functionality. These features are subject to supplemental terms of use, and are available before an official release so that partners can get early access and provide feedback.

Learn more about partner sandboxes at Production and Sandbox Environments - Business Central.

Learn more about early access previews at Prepare for Major Updates with Preview Environments - Business Central.

You can create subcontracting purchase orders directly from released production orders. This article describes how to order subcontracting operations and print dispatch lists to send with unfinished products.

Create a subcontracting purchase order from a production order

The following steps describe how to create a subcontracting purchase order from a released production order.

1. Choose the icon, enter Released Production Orders, and then choose the related link.
2. Open the production order.
3. On the production order lines, select the line for which you want to order subcontracting.
4. Choose the Routing action to view the operations.
5. Select the routing line that contains the subcontracting operation you want to order.
6. Choose the Order Subcontracting action.
7. On the confirmation page, choose Yes.

Business Central creates a purchase order with the information from your setup. The subcontractor prices are also transferred. You can send or print the purchase document to your vendor.

Use the Subcontracting Details FactBox

On the purchase order, the Subcontracting Details FactBox shows related production orders, transfer orders, routing operations, components, and subcontractor prices for the selected purchase line. Choose a value to open the related document or list.

View subcontracting purchase orders

You can view the purchase order lines for a subcontracting operation directly from the routing.

1. Choose the icon, enter Released Production Orders, and then choose the related link.
2. Open the production order.
3. On the production order lines, select the line.
4. Choose the Routing action to view the operations.
5. Select the routing line that contains the subcontracting operation.
6. Choose Subcontracting Order Lines action.
7. To view the purchase order, choose the Show Document action.

Print a subcontracting dispatch list

In addition to the purchase order and production order, you can print a subcontracting dispatch list to send with the unfinished product.

1. Choose the icon, enter Purchase Orders, and then choose the related link.
2. Open the purchase order for subcontracting.
3. Choose the Print Subcontracting Dispatch List action.
4. On the request page, specify your selection and output options.
5. Choose Print or Preview to print or send the report.

Post subcontracting purchase orders

After subcontracting purchase orders are created, they can be posted. Receiving the order posts a capacity ledger entry to the production order, and invoicing the order posts the direct cost of the purchase order to the production order.

1. Choose the icon, enter Purchase Orders, and then select the related link.

2. Open a purchase order that was created from a production order routing or from the subcontracting worksheet.

   On the purchase order lines, the Prod. Order No., Prod. Order Line No., Operation No., and Work Center No. fields are filled in with information from the source production order.

3. Choose the Post action.

When the purchase is posted as received, an output journal entry is automatically posted for the production order if the subcontract operation is the last operation on the production order routing.

Caution

Posting output automatically for an ongoing production order when subcontracted items are received might not be desired. The expected output quantity that is posted might differ from the actual quantity, and the posting date of the automatic output can be misleading.

To avoid that the expected output of a production order is posted when subcontract purchases are received, make sure the subcontracted operation isn't the last one. Alternatively, insert a new last operation for the final output quantity.

When the purchase order is posted as invoiced, the direct cost of the purchase order is posted to the production.

Note

Expected costs are only managed for item transactions, not for immaterial transaction types such as capacity posted via subcontract purchase orders. Posting a receipt might trigger posting of output, but these transactions are separate, and the expected cost of output is calculated independently.

Undo subcontracting receipts

You can undo subcontracting receipts before you post them as invoiced. To undo a subcontracting receipt, follow these steps:

1. Choose the icon, enter Posted Purchase Receipts, and then choose the related link.
2. Open the posted purchase receipt that contains the subcontracting line.
3. Select the line, and then choose the Undo Receipt action.

This action creates an identical line with the opposite sign in the Quantity field, along with the capacity ledger entry. If the canceled receipt line links to the last routing operation, the undo action also creates an item ledger entry of the type Output.

Note

You can't undo a receipt if it's invoiced or if the production order is finished.

Important

If posting the subcontracting receipt consumed components because of the flushing method, the undo action doesn't revert the consumption transactions. To reverse these transactions, use an output journal or the Reverse Production Order Transaction action. Learn more in Cancel production orders that have consumption.

Related information

Subcontracting overview
Use the subcontracting worksheet
Manufacturing
Setting Up Manufacturing
Purchasing
Work with Business Central

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