External Production With Provision#
General#
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's own operations. Often, components are provided that are required for the processing of the material. In some cases, an already processed product is also provided.
In the case of external production with provision, the standard functionality of external production has been extended by a provision. The materials to be sent for external production can be defined by the provision. For logistical processing, a stock transfer order can be created from the external production order. The corresponding documents can be printed out for the posted stock transfers.
When the external production order is posted, the corresponding quantity is debited from the external production warehouse.
Establishment#
The following sections discuss the setup of external production with provision. 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 Business Central™ Helpsite (F1).
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 Business Central™ Helpsite (F1).
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.
- Parts are always sent to the external processor only if an order exists
| Provision type option | Description | Note |
|---|---|---|
| Empty | No provision (Business Central Standard) | |
| Order-related | the goods are always sent to the external processor only if an order (FA) exists | Connection code must be maintained |
| Neutral | the external processor receives a certain quantity of goods in advance. When a production order is created, the external processor only receives the order for external processing. The parts to be provided are already with the supplier The issue storage location is set to the external processor (is entered at the work center group under origin storage locations) |
Connection code must be maintained |
| Supplier | here the component is only for information ("info part") in the parts list. The supplier (external processor) takes over the procurement himself. This setting is also used if the customer provides parts. Here no stock or issue posting takes place. | No transfer to the FA |
Note
A component defined on a parts list of an item can be linked to an operation by means of connection codes. In this way, it is possible to define which operation requires or consumes an item.
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 Business Central™ Helpsite (F1).
Information register: lines#
| Field | Description |
|---|---|
| Standard catalog code | The standard catalog code is used for external labor pricing |
| Connection code | Connection code selection |
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 Business Central™ Helpsite (F1).
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 the External work department.
Information register booking#
On the workstation group, the vendor must be stored in the "Vendor no." field that performs the external work.
Note
The product posting group defines G/L accounts which are posted during sales and purchase postings. For a better distinction it is recommended to define a different product posting group.
If you have agreed with the vendor on a different price for each process for external work, select the Special cost price check box.
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.
Navigate menu tab#
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 Business Central™ Standard, a price for external labor (i.e. the price that is later used in the purchase order) can only be stored on the work center group card. Different prices per vendor, per scale quantity, per activity (standard catalog code) or time period dependent prices cannot be maintained.
In KUMAVISION trade365 you have your own price table for the external work orders. The prices for the external labor can be stored in different places. Thereby the entries of the external labor prices override the prices of the work center group card.
Work center group per time:
see Basic data - Production - Work center groups
Workstation group per piece:
see Basic data - Production - Workstation groups
Work center group special cost price:
see Basic data - Production - Work center groups
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
Origin camp location#
With the origin storage locations it can be controlled which storage locations should be used for the provided goods. Either a specific article is stored per work center group or the option all articles is selected. 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. For articles with article tracking, this should be stored with the components and in the production order
Third-party work proposal#
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 proposal#
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 hook "Accept event message" the suggestion line can be transferred into an order. The stock transfer order can be created here with the hook activated. Lines in which the check mark is not activated remain in the external work proposal without an order being generated.
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.
Order#
The order is placed through the service of external production, as the necessary components for the article to be manufactured are provided to the order by stock transfer. Accordingly, the description of the item line in the purchase order does not contain the name of the item, but of the service.
The columns Third-party items, Quantity of third-party items, FA no., FA line no., Work center group no. and Work center operation no. should be displayed, since they represent the reference to production.
The article tracking of the production order is printed on the order.
The order type FREMD is automatically preset for orders from the external work proposal, 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.
Note
If this is the last operation of a production routing, it may end the production order.
Reference of a provision on the document#
If an external production with provision is carried out, the stock transfer lines (provision) of the articles from the production order are indicated when the purchase order is printed.
The price of external work is printed here per piece (according to the setting in point Determination of prices for external work). If this is a tiered price of the workgroup, it will be automatically applied here and updated when changes are made.
Post delivery in the order#
The purchase order is posted according to the document. As a result, the goods receipt is now posted via the manufactured goods. The stock of the provided components in the foreign storage location must now be debited (consumed). This can be done either manually or automatically (explained in Process of external production with provision and automatic posting). The article tracking of the manufactured articles must be deposited here.
When the order has been delivered, it can be seen in the released FA. With complete delivery, the released production order is now at 100%
Stock transfer#
In the stock transfer header, the field Stock transfer order type indicates that this is a stock transfer of external labor.
If you do not receive a separate goods receipt message from your external processor, you should check the box Outbound automatically posts inbound*, otherwise the goods would be in transit and you would have to post the putaway to the vendor again.
If the product (semi-finished product) is also sent, the quantity is not displayed in the "Quantity" field, but in the "Quantity manufactured by third party" field.
Reason: The article has no stock yet and the stock transfer can only be simulated.
The provided items, in turn, must - in the case of the provision type Order-related - be debited from the warehouse and the provided quantity is therefore also found in the Quantity field.
The components to be added can now be sent to the paver via the stock transfer order.
Note
Check the box "Outbound automatically posts inbound" if you do not expect a separate inbound message from your external processor. Reason: When the stock transfer order is posted, the quantities are first posted to the transit warehouse via the defined stock transfer route. If you do not check the box, the receipt must be posted to the supplier subsequently. For the items to be provided, you can create the logistics documents from the stock transfer order (e.g. goods issue, goods receipt).
Process of external production with provision and automatic posting#
In order to be able to use the automatic booking of consumption, the facilities and prerequisites described below are necessary. Alternatively, the consumption can also be booked manually via the consumption book. sheet, see chapter "Manual booking of consumption" below.
Establishment#
Posting method in the production BOM and thus also the FA component is set to Backward.
Prerequisite#
If the item has item tracking, it must be stored in the FA components.
Process#
When the goods are delivered, the consumption is automatically booked.
Manual booking of the consumption#
In the production book sheet, all consumption lines are displayed and can be posted manually. The actual message line of the external labor is not displayed here, since this must be posted via the purchase order.
The consumption ledger sheet can be calculated as well as entered manually.