Microsoft Dynamics 365 Business Central | Sub-Contract Planning and Sub-Contract Order

By: Seetharaman A. Rajaram – Senior Consultant

Subcontracting process is the practice of assigning, or outsourcing, part of the activities/process and tasks under a contract to a 3rd party company to process and return the processed products.

Microsoft Dynamics 365 Business Central has a great option to handle outsourcing activity. Please follow the steps below to achieve this goal.

The first step one must do is create a Work Center card for Sub-Contract Process:

  • Go to “Work Center Card”.

1.  In the global search (“Tell me what to do”), type “Work Center”.

2. Select “New”.

 

  • Create a subcontract work center, which will be used on a routing operation for a Subcontract process.

1. Update the fields (No, Name, Work Center Group Code) in the “General tab”.

Note: Number series need to be set for the Work Center before creating the Work Center for Sub-Contract process.

2. Update the fields (Direct Unit Cost, Indirect Cost (if any), Overhead rate (if any), Unit Cost Calculation, Sub-Contract No, Flushing method, Gen. Prod. Posting Group) in the “Posting tab”.

Note: “Sub-contract No” is the “Vendor Code”.

3. Update the fields Unit of Measure Code, Shop Calendar Code, Capacity and Efficiency in “Scheduling tab”.

4. Attach the Work Center and BOM to an Item as shown below –

5. Create Released Production order and select the Part you would like to create Sub-Contract Purchase order for the “Sub-Contract process” (For example: Painting).

6. On the global search (), type Subcontracting Worksheet.

Select the “Subcontracting Worksheet” page.

7. Select Calculate Sub-Contracts as per the given path below: Actions à Functions à Calculate Sub-Contracts

8. You can run for complete subcontract planning or you can select a specific work center/ Sub-Contractor for creating a Sub-Contract Order.

9. Now you will be able to view the Items that are planned for creating a “Sub-Contract Order”.

10. Now select Carry out Action Message: Actions à Functions à Carry Out Action Message

Select OK to create a Purchase Order for a Sub-Contract Process.

11. Please go to “Purchase Order” to view the created Purchase Order for a “Sub-Contract process.

The steps above are a great way for companies to keep track of the time and money spent on essential outsourcing activity in Microsoft Dynamics 365 Business Central.

For any other Microsoft Dynamics 365 inquires – Please contact support@BondConsultingServices.com.