Company as a subcontractor....

santoshmkcet

A manufacturing company A also acts as a subcontractor recieving materials from another company B & dispatches the finished items back to company B.

The requirement is inventory & planning of the materials & finished goods is to be known. If this service is done at particular price how to map this requirement in Navision.

Is service module is the answer for this? :-k

I am counting on you all!!!

DenSter

As far as I understand, service is for Items after they are sold, and subcontracting is a function of manufacturing. How to set this up is not something I can help you with, but I don't think service is what you're looking for.

santoshmkcet

The situation is Company A recives ( Not PURCHASE ) the materials from Company B, do the job or service on the materials to give the finished items back to Company B at a particular price.

So Company A ( which is actually a manufacturing company ) is doing a service to Company B.

So can we map this in service module of Navision?

P.S. I donot have a reading manual for this.... So expecting a response from all...

DenSter

Well I've been know to kick in an open door or two but you should really get your hands on a service management manual and read through it, so you have a general idea of what it can do, instead of relying on a bunch of strangers to tell you.

So what you're saying now is that this company A provides repair and maintenance services to company B, so Company A is not subcontracting company B for their own manufacturing?

If that is the case then yes you can use the service module for this purpose. Generally, you sell an Item to a customer, which turns into a Service Item, on which you can provide services (sell spare parts, resource hours, things like that), they even link to jobs now. You would need to find a way to enter the things that you service as Service Items in the system, and from there it should be straightforward for a Service expert to get you set up.

cernst

You should use manufacturing for this task. Create a new item for the finished goods and create a routing whith the operation(s) the company does to the subcontracting item linked to this item. If you want to know inventory of the items you recieve then you can create item for this materials with field "Inventory value zero" checked and create a Production BOM linked to the subcontracting item.

ssingla

Handling Indian scenario of subcontracting receipt will require customization as you will be needed to capture the Inward Challan details and then sending back the material challan wise. (Challan = Document for sending material by the customer to the company premises.

You will also need to take care about the scrap generated and it disposal (return to customer or purchase from customer).

jlandeen

From my experience working with both the Manufacturing & the Service modules in Navision I think the Service module is simpler and thus easier to work with - this is especially true if there is other custom Nav logic that you need to add.

You could probably use both modules in different ways to accomplish your task of taking zero cost inventory in (i.e. inventory that you don't really own or pay for), performing some work on it & possibly adding parts to it and then sending the finished good back to the source company with a bill for any time spent on it plus parts & any other charges.

One other thing to consider is how many pieces/units/parts etc. you will be working with. I think manufacturing would work better if there is a large volume of parts (probably at a lower value, like shirts or toasters) and then Service module is a better choice for lower volume of parts (probably of a higher value - like say Heavy Equipment or Cars or something like that).

DenSter

Well let's back up here...

Service: maintenance/repair, so you don't know ahead of time what you're going to get. Something comes in, is broken, and you have to fix it, but you don't always know what is needed for this. It's all ad hoc, you kind of know what you need, but there's no need to do anything predictive.

Manufacturing: you have Items, and you put it together into another item, using resources. It's a repeatable process (i.e. it is predictable to an item level), and you have a need to manage this process.

Then there are probably all sorts of situations in which both are used at the same time. Like I said earlier, you would need to have a service management expert come in and consult with you.

cernst

When you subcontract then you use same machine centers /work centers as when you produce you own items. You would want to have load on you machine centers / work centers when you subcontract as well as when yo u manufacture your own items, thats why I think manufacturing works better. If you don't subcontract much then maybe service is simpler but I'm not an expert in service module and maybe that's also why I prefer manufacturing

santoshmkcet

What can be done as per the requirement:

Create a positive journal for the raw material you recieve from the customer.

You manufacture it, so you will get the manufacturing cost.

Then you can add the price in the item master at which the finished goods should be sent to customer.

So you have the work around solution in Navision, where the manufacturing company itself acts as a subcontractor.

Regards,

Santosh

santoshmkcet

It works!!!!