Questions regarding Manufacturing with Subcontracting

I have two questions;
Question1)Just want to confirm whether the following flow for subcontracting is correct or not

  1. Purchase raw materials in our warehouse
  2. Transfer to TOLL warehouse (subcontractor’s warehouse) by transfer order
  3. Batch order for the product is created in our warehouse.
  4. Batch order is estimated then respective line is created in production > subcontracting work
  5. Start the subcontracting work
  6. Post the picking list.
  7. Process till packing slip , the purchase order (PO number can be found in the subcontracting work)
  8. Post the route card (OR it gets posted automatically after packing slip of PO)
  9. Invoice the PO
  10. Report as finish the batch order then end the batch order
  11. Transfer the product from TOLL warehouse to our warehouse

Question 2 ) If above flow is correct then is it necessary to purchase the raw material to our warehouse then create transfer order to sent it to TOLL warehouse OR we can directly create PO for TOLL warehouse (may be invoice address we can keep ours)

Question 3) Is it necessary to create separate TOLL warehouse?

  1. it is not the only flow.

  2. you can purchase it directly into TOLL

  3. Not necessary, but it segregates the stock for ease of view and mirrors the physical separation.

Hi Adam,

Thanks a lot for the reply…

1.So I take it as follows :- My flow (whic is one of the many flows) is correct …right?

2.Can you kindly tell me manual number for subcontracting in AX4.0 (if not AX4.0 then higher version) ?

Yes I believe your flow will work.

Production II Chapter 3 in AX2009. I no longer have version 4 manuals, but it is in Production II.