Managing Subcontracting in Business Central Manufacturing
Introduction Subcontracting is one of those manufacturing scenarios that sounds simple in theory — “send something out, get it back, pay for the service” — but in practice it’s full of pitfalls. Costs need to stay tied to the production order, inventory must remain accurate, logistics costs can’t be ignored, and the finance team wants the numbers reconciled in G/L. Business Central has native functionality to handle this, but only if it’s set up and executed correctly. Below is a detailed, consultant-level walkthrough of the subcontracting process — not just what buttons to press , but also why each step matters and the impact on costing, inventory, and reporting. Step 1: Set Up the Subcontractor Work Center Navigate to Work Centers and create a new record. Set Type = Subcontractor and link it to the correct vendor card. Define Direct Unit Cost if you want estimated costs to appear during production order costing. π Why this matters: Without a subcontractor work ...