Fully subcontracted / outsourced production order caveats?

Miklos_Hollender

I when you don't own a factory, it is outsourced, but you still manage your BOMs and all that and it is going to be complicated so you decide to use the Manufacturing granules. NAV2009.

As typical, I have to implement it without any sort of a testing period or pilot project, one day we are going to sign a contract with a factory, the next day they start churning out products and we have to track it all.

So I would like to ask, what are the caveats, what are the major things to not forget? I have seen I should have two steps in the Routing, the subcontracted one and a "finish" one so that we can write off scrap, that is correct, right? Because the purchase order should always be fully received and invoiced?

What else?

Given that the whole operation is outsourced, would it be correct to not actually use the subcontracting feature? We would book an internal routing and put the labor costs to some account and then book the outsourcing invoice to another G/L account?

Miklos_Hollender

bump

Miklos_Hollender

For example, any idea why

1) it allows me to finish the production order even though I have not generated the subcontracting orders

2) it allows me to finish the production order even though I have not posted the subcontracting orders

3) Production Journal shows output quantity even for Subcontracted lines

4) Production Journal allows booking output quantity for Subcontracted lines

The whole Subcontracting thing is something sort of an optional thing?

Miklos_Hollender

We end up just booking the materials in Production Orders, then a Transfer Order + assigning an Item Charge invoice to it.