How to use the vendor production order in Dynamics 365 for Finance & Operations, Enterprise

October 18 2017

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.

About Evert Bos

I am Evert J Bos, ERP consultant since 1986. I started in Europe with IMS7 (A Honeywell Bull Mainframe ERP system) and the BaaN ERP system. Since 1995 I have worked in the USA and since 2004 I have been working with Dynamics AX.  I work for Sikich and focus mostly on manufacturing companies that make complex, engineered products.

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Comments

alex000x's picture

So there is no functionality differences between standard and vendor production orders? Just a reporting/sorting field.

ej34bos's picture

Yes, I have not found anything different in the behavior and it is hard to imagine what that other behavior should be. I am just mimicking what the vendor did, material-wise. Routing is irrelevant because that was the vendor's labor. Sorting is all it does