How to use the vendor production order in Dynamics 365 for Finance & Operations, Enterprise
The following business scenario is common: I send my materials to a subcontractor, he assembles, tests, paints, etc. and returns a completed assembly to me. The emphasis is on "My materials" and "Vendor labor". This scenario can be called a form of contract manufacturing. It is more than likely that this assembly is my design, so the vendor gets a drawing and work instructions. This could be a permanent situation or it could be triggered by an overloaded shop floor that needs to outsource some of the work.
How would we handle this scenario in Microsoft Dynamics 365 for Ops (D365FOE) or any older AX version? I think the basic setup is described in the 2012 and older production manuals. It is not hard, although it seems unusual doing it the first time. Two versions of the scenario exist.