Sub Contracted Manufacturing

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My client is in the irrigation industry . Here is the description of my business problem

I buy item XX from a various suppliers. Item XX is not useful to me in the state that i buy it . I receive Item XX in my inventory and then ship it to an identified service provider so that they can modify it to my specification . I then receive back the modified Item ie XX2 in its new state and update my invetory . How best can i set up this situation in Navision to make sure

1. I mantain two different item (XX) and (XX2)
2. I ship XX to a supplier at cost
3. I aborb service cost of modification and add it on to original cost of XX to come up with the cost of (XX2)
4. I receive XX2 into stock