Can you apply an Item Charge Invoice to a Subcontracting Purchase Receipt in Microsoft Dynamics NAV?

I received a call yesterday from a client who is running Dynamics NAV 2013 and was getting an error when trying to post an Item Charge Invoice to a Subcontracting Purchase Receipt.

The short answer is that you cannot post an Item Charge Invoice to a Subcontracting Purchase Receipt.  The system is not programmed to do that. However, I can offer up a work-around that will get the same result.

The scenario:

Your company sends out parts to a subcontractor to perform an operation that your company cannot do in-house. You will pay the subcontract vendor for its services, but you must also pay a trucking company for transportation to and from the subcontract vendor.

First, I set up Subcontract Work Centers for the Subcontractor and the Transportation Company. Then I set up a Routing that has both Work Centers.

I then set up a Routing that not only contains the operational step for the Subcontract Service, but also contains another operational step for the Transportation Service.

Figure 1 – Routing for Sub Contract Item containing both Services and Transportation

I then create a Released Production Order for an Item that uses this Routing. These are the Production Order Routing lines.

Figure 2 – Create Production Order Routing

I then use the Subcontracting Worksheet to Calculate the Subcontracts.

Figure 3 - Use the Subcontracting Worksheet to Calculate the Subcontracts

I then Accept the Action Messages to create the Subcontract Purchase Orders for the Subcontracting Vendor and the Transportation Vendor.

Now, when I receive and invoice the two purchase orders, I can see in the Production Order Statistics that I get the costs for both the Subcontract Service and the Transportation Service.

Figure 4 – Production Order Statistics shows the costs for both the Subcontract Service and the Transportation Service

If you would like more information on this subject or another Dynamics NAV subject, please contact ArcherPoint.

Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.