Hi I have a doubt regarding subcontracting.
in my company, one of our customer is providing us material for processing and we have to send back it to customer within 180 days. can any body tell me procedure for this?
Hi I have a doubt regarding subcontracting.
in my company, one of our customer is providing us material for processing and we have to send back it to customer within 180 days. can any body tell me procedure for this?
Hi,
r u using AX2009?
Are you responsible for the stock the customer provides?
What are the required costing implications of the process?
Do you sell the same item to anyone else?
You could create a BOM with the item in and manually receive it into a customer warehouse and consume from there, alternatively you ignore the provided material, include it in the BOM as 0 quantity with a note, make without cost or visibility of the item.
This is not subcontracting, this is you manufacturing as normal but with customer provided inventory - you in essence are the subcontractor, you are not subcontracting.
Hi,
you can make transaction for material in through movement jouranl with little customization for customer’s referance no and date. Prepares sales order based on customer’s referance no and date. Prepare production order with referance to sales order. Before production order you have to prepare customer master, BOM, customer warehouse, location etc Dispatch the material through respective sales order.
Hi Suvarna,
Yes im using AX2009
Hi Adam,
actually here, we receive material from customer we create PO and punch packing slip against it… But we don’t punch invoice against it because we don’t want financial impact in our accounts. After punching packing(GRN )we consume item in our production site and sell it through Sale order.
But the main problem is PO will remain in Received status. What can i do to close this order??
ya actually this is not subcontracting,
Hi Survarna,
Main problem in movement journal is my offset account is goes on credited.How will i nullified that account. Rest all process we are using.
So this is not a purchase. how do you account this inventory?
to the same customer? how the sales is being accounted? (mean how you settle the customer)
You are not purchasing it, so do not raise a purchase order - your process on AX is not matching your physical process.
Hi,
I have created third party liability account. My movement journal is with 0 price that’w why there is no problem for account credited.
The trouble with this is your costing. If you are average of FIFO it impacts, if you are standard you need to segregate it into a different site. However receiving it through a journal and accounting for any held stock before consumption is better than having GRNI purchase orders throughout the system.
Can you explain what does it mean ?
It means you can track it, account it, segregate it, control it, monitor it for insurance purposes, track it etc. You can do this with the PO but it never gets invoiced which auditors would question, and simply not reflecting it at all in the system is another option.
Hi AdamRoue,
thanks for your reply. I will take necessary action.
If you feel that you got the solution , why do not you mark it as solved ?
Hi lally,
I said thanks to Adam but problem is not raised by me. Kindly check this issue from starting.
hi kranthi,
For tracking item we are creating PO and we are punching till packing slip only. my vendor account is same as customer account. But as we are not punching purchase invoice, so there is no ledger transaction in vendor account.only my inventory account get affected during receipt of material.
We sell the item as per customer invoice and so there is no need for settlement.
Hi adam,
Main problem is only PO remain in received status which is question by auditors . So there is no other way for this except keeping PO in open stage?
Yes this is your problem - DO NOT use the purchase order to bring in goods you are not purchasing, it means your auditors will question your processes as these are reflected as uncleared liabilities.