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External Production With Provision#


A work process that is outsourced (also called extended workbench) occurs particularly frequently in contract finishing processes and also in the assembly of subassemblies. Outsourcing is also a possible alternative to in-house processing when capacity bottlenecks occur in the company itself. Components are often provided that are required for further processing at the external manufacturer. In most cases, the product already machined is also provided.

In the case of external production with provision, the standard functionality of external production has been extended by a provision. The provision allows you to define the components that are sent along for external production or that are also provided by the external manufacturer. For logistical processing, a stock transfer order can be created for the purchase orders from the external work worksheets. The corresponding logistics documents can be printed out for the posted stock transfers.

When posting the external production order, depending on the setup of the components, the debit is made from the external production warehouse in the corresponding quantity.


The following sections describe how to set up external production with provision of materials. The basic facilities for manufacturing/production apply as a prerequisite for setting up external production with provision. For more information, please refer to the Microsoft Dynamics 365 Business Central1 Helpsite.

Production bill of material, version#

In the following, only the special features of external production with provision are discussed. As a prerequisite for setting up external production with provision, the facilities for manufacturing/production apply. For further information, please refer to the Microsoft Dynamics 365 Business Central1 Helpsite.

Inforegister lines#

In the production BOM (version), the fields "Connection code" (this field identifies the component as a raw material provision relevant to logistics) and "Provision type" must be set.

Provision type option Description Note
Empty No provision (Business Central Standard)
Order-related the components are not sent via a stock transfer order until the external production orders are created.

The issue storage location in the FA components is set to the storage location of the external worker (entered at the work center group under origin storage locations) when the stock transfer order is created. Furthermore, the posting method is changed to "Reverse" in the respective FA component line.
Connection code must be maintained
Neutral the external processor receives a certain quantity of goods in advance. The stock transfer order required for this must be created manually or via a planning worksheet. When a production order is created, the external processor only receives the order for external processing and, if necessary, a stock transfer of the product already processed. The components to be provided are already at the external processor. Here, too, the posting method of the FA components is changed to "backwards".

The issue storage location in the components is already set to the external processor when the production order is created or within the planning (is entered at the work center group under origin storage locations). When using this type of provision, it is recommended to set up storage data for the respective components at the storage location of the external processor.
Connection code must be maintained
Supplier Here, the component is only in the production BOM for information ("info section"). The procurement is done by the external processor. This setting is also used when the customer provides parts. Here no stock or issue posting takes place. No transfer to the FA


A component defined on a production BOM of an item can be linked to a specific operation using connection codes. Thus, it can be defined at which operation an item is needed or consumed. In order to use the functionality of the provision, the connection code must be defined

The connection code must first be stored in the operation before the setting for the component can be made in the production BOM. Otherwise, an error message will be displayed when trying to certify the BOM.

Work plan, versions#

In the following, only the special features of external production with provision are discussed. As a prerequisite for setting up external production with provision, the facilities for manufacturing/production apply. For further information, please refer to the Microsoft Dynamics 365 Business Central1 Helpsite.

Information register: lines#

Field Description
Third party article This field marks the operation as "Provision of semi-finished products" relevant to logistics. The external operation can be transferred to a stock transfer order. The registration takes place in the FA-operation or as booked capacity item with quantity without time and value.
Standard catalog code The standard catalog code is used for external labor pricing
Connection code Connection code selection


The connection code must be maintained for the use of the provision in the operations.

Workstation group#

In the following, only the special features of external production with provision are discussed. As a prerequisite for setting up external production with provision, the facilities for manufacturing/production apply. For further information, please refer to the Microsoft Dynamics 365 Business Central1 Helpsite.

Usually, the following settings are made when creating a workstation group for external work:

Inforegister General#

In the "Department code" field, the workstation group is assigned to a separate department (e.g. external work).

Information register booking#

On the workstation group, the vendor must be stored in the "Vendor no." field that performs the external work.

The posting method must be set to "manual", as the postings are posted via the external labor order.

In the product posting group, a separate posting group for "external labor" should be set up and assigned to better distinguish the origin of non-cash items in accounting.


The product posting group defines G/L accounts that are posted when sales and purchase postings are made.

The cost price calculation type is usually set to "piece" for external work In this case, you should then also activate the "Special cost price" check box.

If you have agreed with the vendor on a different price for each process for external work, select the Special cost price check box.


If you use the "special cost price" indicator, then you must enter the "Cost price per unit" field in the operations. The cost price in the "Posting" info tab of the work center group is then not taken into account.

Inforegister Planning#

The "Unit code" field is usually set to days, since external processing is usually calculated in days.

As a rule, a separate company calendar is created for external processing.

In addition, the external work prices and the origin storage location can be stored via "Belonging" > "Workplace group".

Determination of prices for external work#

In Microsoft Dynamics 365 Business Central1 Standard, a price for the external work (i.e. the price that will later be used in the purchase order) can only be stored on the work center group card or the operation (if the work center group is set up with "special cost price"). Different prices per vendor, per scale quantity, per activity (standard catalog code) or period-dependent prices cannot be maintained.

In KUMAVISION factory365 you have your own price table for the external work orders. The prices for the external work can be stored in different places. Thereby the entries of the external work prices override the prices of the work group card or the work operation.

Third-party work prices Prices (with the option of graduated prices) can be stored for the following combinations via the external work prices:

  • Workstation group (MUST)
  • Article (MUST)
  • Vendor (MUST)
  • Standard catalog (external work activity)
  • Start and end date
  • Minimum quantities (graduated quantities)
  • Price units (conversion factor weight share)

The external work prices can be called from the following masks with appropriate filtering:

  • Article card/list
  • Workplace group card / list
  • Accounts payable card / list


If more than one operation of an item should be processed via external labor, then you must assign different standard catalog codes in the operations, so that you can also define different prices.

Origin camp location#

With the origin storage locations you can control which storage locations should be used for the provided components. For external processing you must use the type "all items".

The call of the origin storage locations is made from the workstation group map/list.

  • Type of origin: workplace group
  • Origin code: which specific workstation group
  • Type: All items or a specific item
  • Code: for specific article: Item number
  • Storage location code: which storage location is to be controlled

Relocation routes#

With the help of the stock transfer routes you have the possibility to create the link between the vendor warehouse (i.e. the warehouse of the external processor) and your own warehouse.

To set up the stock transfer routes, call them up via the user search.

The stock transfer routes overview opens. In the info tab "Stock transfer route matrix" you can now make the assignment for your own warehouse (stock transfer from code = own warehouse (e.g. BLUE)) and the vendor warehouse (e.g. external).

By clicking on the Assist button you get to the transfer route specification on which you enter in the field "Transit Code = Own-LOG". This field must be filled with an appropriate code, the other fields can remain empty if no fixed deliverer is defined.

You can then close the Stock Transfer Route Specification and Stock Transfer Route Matrix windows.

Process of external production with provision#

Initial situation: Production is planned and a released FA has been created.

Outside Work Worksheet#

Calculate external labor#

In the external worksheets it is possible to calculate which released production orders should be sent to the vendor. Here, it is possible to filter on the workstation group, the vendor or the FA number, among other things.

The external work sheet then lists the pending external work calculated according to the filtering.

The vendor is taken from the work center group, the price depending on the stored prices. If there is already an external work for a FA, it will not be charged twice.

Work in the external work worksheet#

Change of the creditor: The vendor can be changed per line (order), thus the external labor price stored in the new vendor is also used.

Perform event reporting#

With the function "Execute event message" and the activated check mark "Accept event message" the proposal line can be transferred into an order. The stock transfer order for the provision of the FA components (provision type "order-related") or the processed product can be created via the "Create stock transfer orders to external manufacturers" button.

Proposal lines in which the "Accept event message" checkbox is not activated remain in the external work worksheet without a purchase order being generated.


In order to be able to subsequently generate the stock transfer order for the provisions, the external work order must be deleted again and recalculated.

Released production order#

Pursuit of the foreign work#

The tracking of external labor is done at the line level in the production order. To do this, select the corresponding line and call up the "External work tracking" via Line.

The linked documents can be viewed and called up via the window called up by this function.


In the external work order, the activity or operation of the item is ordered. Accordingly, the description of the item line in the purchase order does not contain the name of the item, but the operation description.

The columns FA no., FA line no., work center group no. and operation no. should be shown, as they represent the reference to production.

In the respective order line, you can use the "Line" menu tab to call up the FA components assigned to the operation via the connection code.

Calling up the article tracking via the "Line" menu tab is only possible if it is the last operation. In this case, the article tracking of the respective FA line is then displayed.

The order type FREMD is automatically preset for orders from the external work worksheet, but can be changed manually. This can be used to preset certain data, such as payment terms and other fields.

If the purchase order is delivered, the operation is confirmed at the same time.


If it is the last operation of a production routing, the receipt to stock (item actual message) is posted.

Book delivery#

Depending on the setup of the storage location where the production order and thus the external production order was created, the delivery of the external production is to be posted directly via the purchase order or the corresponding logistics documents. The basic process of creating logistics documents or entering delivery quantities is no different for an external production order than for an order for articles.

An exception here is article tracking and putaway in two-stage logistics if the external production order is not the last operation on an article. In this case, no article tracking can be assigned or created and no putaways are created after posting the goods receipt, since this is not a stock movement of an article.


As already mentioned, external production is the ordering of activities or operations on an item. Therefore, only a capacity item is generated within the production order when posting. Only if it concerns the last operation an article item (item type "actual message") and thus a stock movement is generated additionally.

If FA components are assigned to the operation or order line as a provision via the connection code, they are automatically posted in the background when the delivery is posted in the corresponding quantity. A special feature here are FA components with article tracking, this must be assigned to the respective FA components. Due to this, as already mentioned, the call of the FA components is available in the purchase order as well as in the logistics documents.


If the provision type "order-related" is set in the FA components, the article tracking is automatically inherited when posting the stock transfers for the provision. If the provision type "neutral" is set, the supplier must report the article tracking used on his delivery documents and this must then be entered accordingly in the FA components before posting the external production.

Stock transfer#

In the stock transfer header, the field Stock transfer order type indicates that the stock transfer is for external production. If you do not receive a separate message from your external processor about the receipt of the provision at his storage location, you should set the switch "Outbound automatically posts inbound" in the stock transfer order, because otherwise the provision is in transit and you would have to post the stock receipt to the vendor again.


Alternatively, you can perform the setup globally on the corresponding storage location card for third-party manufacturers. To do this, activate the switch "Transfer order output posts automatic input". The switch in the stock transfer header is then preset according to this setup.

The posting of the stock transfer order issue is again done depending on the setup of the storage location either directly via the stock transfer order or the logistics documents (goods issue or warehouse picking).

For FA components with article tracking and the provision type "Order-related", the article tracking is automatically transferred to the article tracking of the FA components when the stock transfer issue is posted.

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