We are a manaufacturing company using standard costing. We send items out to a supplier to have them modified and then returned to us. The items that come back need to be receipted into a different item and the supplier charges for the cost of the modification. We want to know the best way to record the above on Navision. We thought of transferring the item to a LOCATION for the supplier and then on receipt of the modified item do a negative stock adjust for the old item and a postive adjust for the new item - however this seems very messy especially for a standard cost environment. What is the best way to record the above. Thank You
Hi Are you using the manufacturing modules?
Yes we are using the manufacturing modules
The process you are talking about would really encompass the use of sub-contracting work centres. The finished item is raised on a production order and the routing contains an outside process which from the produciton order you can generate the purchase order. The BOM will contain the raw material worked upon. In this manner the costing of the material and finished goods after processing should be handled correctly. I hope this helps.