Subcontract clarification

I am trying to figure out the following scenario. BOM for Item A contains Item B. We purchase Item B. We then send Item B to a subcontractor. Subcontractor adds value to B and we receive it back, and finish out Item A. I have forwardflushing for Item B, so that Navision 3.60A takes it out of the inventory when I release the Prod. Order for Item A. But how do I get Item B to show up when I calculate Subcontracts on the Subcontracting worksheet? When I add a Subcontracting Routing to Item B, I still cannot get it to show up on the Subcontract Worksheet. What am I missing here? (What Requisition Method should I have for Item B? etc.) Thanks in Advance

To have your item A, your order to subcontractor will contain this item, not the component, in the Sucontracting Worksheet: 1) the operation must be assigned to a Work Center linked to a Vendor No. (in the Subcontractor No. field of Work Center Card); 2) the item B must have Requisition System = Prod. Order if your production order is Released, the two above should be enough. Elena

p.s. you can use “Subcontractor -Dispatch list” report (in Manufacturing report), to know the components you have to send to the subcontractor. In this case, you have to set Routing Link Code in your routing operations and in the BOM too. Using Routing link code, will cause the consumption posting occurs when you post the Subcontractor order. Otherwise you could post an output journal line on your subcontracting operation with output qty 0 and a setup time. This shouldn’t impact the costs since in your Work Center, I guess, you select Unit Cost Calculations: Units.

Thanks for the response. Is there something I’m missing? If I assign Item A a Subcontractor Routing, then wouldn’t Navision need to Create Purchase Order for Item A? My Item A is being produced after Item B comes back to me from outside processing. Therefore creating Purch. Order for Item A does me no good, since it’s Item B that comes back to me. Please let me know if I’m missing something really obvious! Thanks once again.

If you need to trace outbound and inbound of item B, you should setup an additional level: A is your finished item, first level is B1 (that is the item you receive from the subcontactor), second level B2 (purchase item). Instead, you could manually create a Production Order for B, having B as component and the Subcontracting routing.

Hi Bhamidi Essentially if you are using Item B as a sole finished component when you produced Item A then Item B has to be in its finished state. Assuming you stock it you will have a production order solely for Item B that the subcontractor deals with, Item A simply then consumes teh finished Item B and the subcontract process is outside teh physucal production of Item A.