I have a supplier who provides a polishing service on the item “ABC” i send him.
I have pre negotiated price with the supplier. For every box of “ABC” parts i send him, he charges 10000 rupees.
A box can contain a max of 500 parts. So it is upto me how many i send him in a box .
Part “ABC” has been created as a sub contracted item as i want to track the number of parts sent out to the supplier.
In the PO, i would like to include 2 items
Polishing service for a price of 10,000
Number of “ABC” parts and they are priced at 0. The price is captured in the first line i.e polishing service and this line is required to track the stock flow between me and the supplier. These items are batch tracked.
Since polishing service is a service item and not a subcontracted part, the system does not allow me to include the service item in this PO.
I get a message stating " Polishing service must be a subcontracted item"
How can i include a service and a in stock item in the same PO
Why don’t you do a Stock Entry Purpose: Material Transfer and Transfer that into the a Virtual Warehouse created for the Vendor. Once the vendor sends back the items, you can either use a BOM to convert it into a “Polished” item. Or you can receive it back as the same item code as the one that went to the Vendor.
If you want to change the Item Code of the received Items to -Polished, you can even do a Stock Entry purpose Material Issue and Stock Entry Purpose: Material Receipt.
There are many ways of doing this. Do you want a different item code of the received items? Do you want to load up the valuation of the Polishing Charge onto the received items? Or do you want to expense it out separately.
Based on that you can select the appropriate way of configuring this transaction.
Thanks for your thoughts. The polished item will have a different item code from the non polished item and is also batch tracked.
Your suggestion is another way of addrressing the problem . i am also worried that people in the team may miss doing some of these stock transfer steps or what if they do incorrectly.
Then the inventory balances will be out of synch which is a bigger mess
As a workaround, i was thinking of creating 2 PO.
1 ) PO 1 is for the service items
PO 2 is for the actual item that will be subcontracted.
I will create a custom field in the PO screen to store the PO# of the service item , just in case. ( ofcourse there is a risk that people may forget to put this information but risk is lower )
PO 2 will be priced 0 and hence no bills will be generated for this PO.
All payments will happen on the service item.
The process is cumbersome but cant think of anythng else ?