How to create orders and calculate the subcontractor worksheet in Business Central?
Subcontracting in Microsoft Dynamics 365 Business Central works only through production orders. You cannot create a subcontracting purchase order on its own. You create it from a released production order that has a subcontracting operation in its routing.
The workflow runs through the subcontracting worksheet. You calculate the worksheet, review the suggested lines, and carry out the action messages. Business Central then creates a purchase order for the subcontractor automatically.
The subcontracting purchase order line carries the production order number, production order line number, and routing link line number in hidden fields. This links the purchase order back to the production order so you can post the operation correctly.
Subcontracting in Business Central requires a production order
Subcontracting operations, meaning work you send out to an external vendor, only apply to production orders in Business Central. If you don’t have a production order, there is no point in trying to create a subcontracting order. The two are tied together.
A subcontracting purchase order is created through the subcontracting worksheet, and that worksheet pulls its data from production orders. Without a released production order that contains a subcontracting operation, the worksheet stays empty.
Why the subcontracting worksheet shows nothing
If you open the subcontracting worksheet and calculate subcontracting operations for everything, you may find that nothing appears. That happens when there are no released production orders with outstanding subcontracting operations to process. Anything already handled won’t show up either.
To get lines into the worksheet, you first need a released production order that includes a subcontracting operation in its routing.
Setting up a production order with a subcontracting operation
Start by creating a new released production order for the item you want to produce, for example a bike. When you refresh the production order, Business Central calculates the routing. If you look at the routing lines, one of the steps will be the subcontracting operation you set up earlier.
In this example, operation number 35 is a painting operation. Because that operation is set up for subcontracting, you can now expect it to appear in the subcontracting worksheet.
Calculating the worksheet and editing the operation
Go back to the subcontracting worksheet and calculate everything again. This time a line appears. The line shows an operation for the production of item number 1000, which is operation 35, the painting operation.
You can edit the description on the worksheet line if you want, for example changing it to “painting my bike red” so it’s clear what the vendor is being asked to do.
Creating the subcontracting purchase order
Once the worksheet line is ready, carry out the action messages. Business Central creates the purchase order, which is your subcontracting order, and the worksheet journal clears out afterwards.
You’ll find the new purchase order at the bottom of your purchase orders, in this case for the vendor “Multicolor Expert.” On the purchase order line, you’ll see what looks like an item number, but with the description “painting my bike red.”
In hidden fields on the purchase order line, Business Central also stores the production order number, production order line number, and routing link line number. These fields are what connect the purchase order back to the production order, so the line can be posted as a subcontracting operation rather than a normal item purchase.
Handing the order to purchasing
With the purchase order created and linked, it’s ready to pass on to your purchasers. They can then communicate with the vendor about the painting operation and handle the rest of the procurement process.
Q&A
Can I create a subcontracting purchase order without a production order in Business Central?
No. Subcontracting operations only apply to production orders. The subcontracting purchase order is generated from the subcontracting worksheet, which pulls data from released production orders. Without one, there is nothing for the worksheet to process.
Why is my subcontracting worksheet empty when I calculate it?
The worksheet stays empty when there are no released production orders with outstanding subcontracting operations. Production orders that are already handled won’t appear either. You need a released production order that contains a subcontracting operation in its routing.
How do I create the subcontracting purchase order from the worksheet?
Calculate the subcontracting worksheet so the operation appears as a line. Optionally edit the description, then carry out the action messages. Business Central creates the purchase order for the subcontractor and clears the worksheet journal.
How does the subcontracting purchase order link back to the production order?
The purchase order line stores the production order number, production order line number, and routing link line number in hidden fields. These fields connect the purchase order to the production order so the line can be posted as a subcontracting operation.
This is what happens in the video
To show how it works, I go into the subcontractor work sheet, and show you that nothing is here.
This is the worksheet, and I calculate my subcontracting for everything, and nothing pops up, because I have no release production orders that are not already handled.
I go into my release production orders – and create a new production order.
One that contains some subcontracting operation.
I click process – and refresh, and now it calculates my routing.
When I look into my routing lines, one of the steps is the subcontracting worksheet that I have set up, and it now appears in my work sheet, when I calculate it again.
I just calculate everything again.
This item is actually an operation but it is for a production of item.
In real life this is operation no 35, which is a painting operation, and I may want to change the description: “Painting my bike red”.
Then I could carry out the action message, which creates my purchase, which is a subcontracting order.
Now my journal is empty, and I can find my purchase and I would expect it to be the last one, and when I look at the line, I can see actually it’s an item number, but it’s named “Painting my bike red”, and in hidden fields’ on the purchase lines, it will also display the production order number, the production order line number, the routing link line number etc I can post this as a subcontracting operation.
This one is ready to be passed to the purchasers, who can communicate with vendors about this operation.