How does subcontractor purchase orders only creates capacity ledger entries on production orders in Business Central?
Using Subcontracting Orders, meaning Purchase Orders created from a Subcontracting Worksheet, I won’t do inventory adjustments, I will just create Capacity Ledger Entries, and add those automatically to the Production Orders.
This is what happens in the video
I have a purchase order here, it’s already received, but it’s not invoiced, I can see the quantity received is 5, and quantity to invoice is 5.
Since I’m not using Expected Cost, no cost has been posted to the order.
But the Capacity Ledger Entry is already made.
Because on this Purchase Order Line, I have a Production Order Number and Production Order Line Number etc.
I find the released Production Order here, and I know it’s the last Production Order.
If I navigate this order, I can see there are no Item Ledger Entries.
I haven’t posted any consumption, output or anything else on this purchase order, which is subcontractor.
In the Capacity Ledger Entries, I can see, I do have one entry, and I know it’s coming from that specific Purchase Order number.
In the Value Entries, because I’m not using Expected Cost, I can see, that I have no Value Entries for now.
I invoice the Purchase Order, and I insert the invoice number, and maybe on the actual invoice, the cost was something else, so I enter the changed cost, and I post the invoicing of the Purchase Order.
When I look at the released Production Order, and I find the Capacity Ledger Entries, I navigate into the Value Entires.
I can see, it created a Value Entry, and the cost amount on that specific entry.
This means, the item did not go to inventory, because it’s not an item.
It’s a process, taken up as WIP on the Production Order.
It will follow my output item, and follow the value on the output item 1000.