I am working through subcontracting, but have questions about the Service item that has to be added to the parent part’s BoM.
First question: I had assumed that Service items cannot exist in inventory, but perhaps they can in AX? And would they have value in inventory valuations?
I have created a service part (Paint), and applied an Item Model Group where the attribute ‘Stocked product’ is not selected. I get this error message when I add this item to the BoM: An item cannot be associated with a BOM if it is associated with an item model group where the attribute Stocked product is not selected. I can now see that subcontract service items are a ‘special’ brand of service items, so I am Ok with this aspect.
Using a ‘stocked’ service part, I can get the purchase order to auto-create based on the works order, but haven’t managed to get the purchase order receipt to book the works order operation. It must be in the setup somewhere. I am expecting that the item is received into stock and then immediately issued to the works order, hence leaving no residual stock of this service.
Second question: During the parent part’s cost calculation, does the cost of the subcontract operation come from the service item (Paint) on the BoM, or from the route’s sub-con operation? Or the purchase order price?
Third question: is there any way that a purchase order can be auto-generated for a sub-contract operation without having to add an item to the BoM? Some of the user manuals refer to a ‘Vendor Operation’ but they don’t provide an example.
Any illumination will be gratefully received.
I have not worked with sub-contracting in AX2012, but I would guess the principles are the same.
Service items do not generally exist in inventory. The concept you are probably struggling with is you create your painted part as an item, that is then consumed in the finished product - you break down the elements. Within this part you have the parts to make it and the service - the subcontractor performs the service of painting the item and the purchase order is for the service which gets linked by the BOM and route links and types as you have found.
The purchase order receipt comes from the production parameters and automatic update section and purchase order receipt settings. it is not a case of receiving it and issuing it, it is a case of receiving it and the operation is complete, however if does depends how you break these elements down. You will never have stock of the “service” as it should be a service item, but you could well have stock of the part that has progressed through the service.
Your second question is it comes from the service item that has a unit cost, but also from the make up of the serviced item.
The vendor operation is the link with the service item that is also linked to the vendor - to autogenerate a PO for the service you have to link it all.
Excellent, many thanks for your help. I have finally got this process to work.
The reason why the purchase order receipt wasn’t triggering the booking of the production order’s operation was because my service part had a Product Type of ‘Item’ when it should be ‘Service’. As above, it must be linked to an Item Model Group where the attribute ‘Stocked product’ is selected, even though it’s a service item, and a costing method of FIFO.
Regarding my original third question, I agree that there isn’t any way that a purchase order can be auto-generated for a sub-contract operation without having to add an item to the BoM. Unless someone knows otherwise.
my comments is, when we need to create a subcon with a service item, we want it to be none inventory item too.
the service item now need to uncheck the stocked product parameter in the item module group to become an un-inventory item, but in this case we can’t assign this item to a BOM and an error comes as “An item cannot be associated with a BOM if it is associated with an item model group where the attribute Stocked product is not selected.”
and if we kept that stocked product checked then we need to specify the site and the warehouse on the PO and the product receipt while infact this is have no inventory as its a service.
and creating a new storage dimension group is useless because it already comes with site and warehouse mandatory activated.
so the only solution is to kept the stocked product checked, and to assign the site and warehouse in the PO even if it’s illogical.
i got one more question, after posting the product receipt for the subcon PO , it automatically posts the picking list for full BOM lines of the production order and the route card too !!!
and its even worse because my item module group do not allow posting physical negative, but yet it did manage to post negative picking list for the production order for the full BOM lines.
is there any parameter that controls to post only picking for one item which is the vendor service item?
and any parameter to do not touch the route card because it has nothing to do with it?