sending item out to outside vendor to have process then sending back to us how to account for cost

I am using Dynamics NAV 2009 R2. Here is the issue:

I make part A. (all is good with this) cost is 5.00 per unit

I then have to send part A to a sub-contractor to do something to it. That adds 2.00 per unit. It also makes it into Part B. The sub-contractor on gives me a bill for the additional amount. So when I receive Part B it show cost of only 2.00 per unit, I’ve lost the original 5.00 per unit cost.

How do I fix this? Is there a module I need??

Any help would be appreciated.



Hi Susan,

Can you tell me how you have set this up today in NAV? I assume you’re using manufacturing and the sub-contracting functionality in NAV 2013?

How is the structure of you production bom’s and routes related to this?

It’s not set up at all. What is the sub-contracting functionality? Is that a module?


Hi Susan,

Sort of a module, but more functionality integrated into the manufacturing module. Here you’re setting up specific work centers as sub-contractors by specifying the vendor no. for the sub-contractor. NAV will then handle the creation of purchase orders and transfer of “raw-material” to the vendor including the completion of the production order when finished.

There is a link here from Youtube describing the process in NAV 2009 Classic: