Job Work

Hi everyone,

I have scenario like,

A Manufacturing company apart from doing own production, also do the job work for others.

for this the company will receive the rawmaterial from the job work given company.

and after the job work is completed the output will be given to job work given company.

The Manufacturing compnay only recieves the service charges from them.

how to handle this an DAX???

****** The company will not treat taking of rawmaterial as purchase and sending of output as sale…

hope i am able to explain my problem clearly…




I hope I understand your case.

The factory is an add valued manufacting (maybe assembly).

Customer send raw material to it. It “produce” the finish goods, then return to the customer.

I think it really depends how the factory is going to use AX.

I am thinking method like:

  1. Everything (Raw material or finish goods) is service item. - So no Purchase or sales.

For the service charge, you can use free txt invoice to bill the original customers.

  1. Raw material and finish goods are “Item”: Then no much choice here. You need either using purchase/item journal to get raw material, and sales/item journal for finish goods.

If the RM or Finish goods ownership is belong to original customers, I think method 1 would be easier. [:)]

Although they are not treating the raw material as a purchase or the output as a sale they still need traceability of inventory or not? So they need a works order, consumption, shipment of goods to the customer etc!


Definetly the company need the inventory tracking. The intension of saying not purchase and sale is that the company wont treat these transactions as sales & purchase theres may be some other transaction…

I dont think this can be directly mapped in ax like subcontracting…

for that we may need to some work around like

Taking the item into inventory by moment journal and stroing it some identifiable location…

Doing the production Process…

Decreasing the inventory of finished goods by movement journal

Creating an invoice for customer by using journals/free text invoicing…

By tracking all these transactions with some refernece number may do…

I dont know whether my assumptions are correst?

Correct me if i am wrong



I would treat it no differently. I would create a new warehouse. I would purchase into this at zero cost. I would consume these items in production. I would make the item and book it into stock. I would sell it on a sales order with the cost at zero and a service item for the charge.

This approach gives you full normal traceability and you can use all of your standard paperwork and it fits into your normal process - the differentiator being the warehouse.