In order to produce items with subcontracted steps, we have added an item to the BOM that is sent to vendor to have work done and then received back. For example. We produce ITM123. ITM123 is to be painted. So to produce ITM456, the BOM contains ITM123 and Paint123. Paint123 is service type, line type of vendor on the BOM, and a stocked product so it can be put on the BOM. All routes at this point in time are one step routes with one operation.
Problem:
When we create the production order, the purchase order for the subcontracted piece is automatically generated. We confirm the purchase order. When we receive the goods back, it is not being received physically into inventory because it is a service item. When we go to report production, the cost for the subcontracted item number is not being consumed by production.
Question:
Am I missing something here? how do I get the cost of the service to be consumed during production?
The way I have done this in the past was to transform the item by use of a BOM so the Painted element is a BOM item and contains the service item and the raw material, however the principle is the same. The cost of the service should be rolled up. The purchase order should have the cost of the item, but it will depend upon your costing method for the said item, and ensure that the cost is defined correct (on the item not just the purchase order). Failing that invoice the purchase order. When you run the cost calculation for the BOM you should see the item and a cost, if it has no cost it is not setup correctly.
This is kind of an AX2009 answer, but you do not state your version and I am not sure that much has changed in this area, but ultimately if you are on AX2012 it probably has.
Sorry for the delayed reaction. It turned out everything was set up correctly. There was just a problem with a service that was used during integration to another application.
Thank you