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Providing an In-process service for an external Customer

  • 1.  Providing an In-process service for an external Customer

    Posted Dec 20, 2018 04:03 PM
    ​​We have recently accepted Orders from a customer to provide an in-process service for them.  We bake their products (I.e. cookies [not really]) in our oven and return their items to them.  We do not order any items, their items are delivered to us to bake. Our customer wants us provide a receiver to have a clear custody receipt while the items are in our possession. The items are baked and then our customer will pickup the items.

    I believe the Customer's Order should be entered as a Service Order for each part.   The customer provides a Packing List when delivering their parts. How can I identify [load into Nav] these items in order to receive them?  My guess is as a service item...since we have no Purchase Order.
    I intend to create a Standard Task (Oven Bake) in our oven then create a Job in order to document the process has been accomplished.
    So I will need to create a Job for each group of items as they are baked, then ship back to the customer when completed. The customer also requires a Statement of Conformance our Quality section to insure compliance with the bake profile.

    Can any NAV manufacturers or service providers give me any confirmation if I am on the right track?  Thanks in advance for your comments!

    Kirk Simmons
    Goodwill Southeast Georgia
    Savannah GA
    NAVUG Summit - Post

  • 2.  RE: Providing an In-process service for an external Customer

    Posted Dec 21, 2018 07:04 AM

    We do this all the time for our clients which are perform a similar function as your organization.
    First, everything is setup as a regular inventory item.  If not, you cannot put it on a production order.
    We will setup a separate location for their items to help make them more identifiable.
    On the receiving side, they will either issue PO's or do an inventory transaction to get them into inventory, all at zero cost.
    For production, a production order is created using their materials and a FG outputted.
    Then a sales order is used to ship the product.

    In summary, we try to make the process of them handling the consignment items the same as how they run their own items.  We find it helps to have the same steps, but basically doing it at zero cost and in a separate location.

    Hope this helps.

    Feel free to reach out to me if any questions.

    Happy Holidays!!

    Paul Silvani
    General Manager
    Chicago IL

    NAVUG Summit - Post

  • 3.  RE: Providing an In-process service for an external Customer

    Posted Dec 21, 2018 08:12 AM
    I agree with Paul.  You will have an Item for the receipt of the material from your customer.  You can process this through a no cost Purchase Order to allow for the receiving of the goods.  I would also agree with having a Customer Specific location for easy separation of material.

    You could then process either a Production Order or an Assembly Order to produce the finished good for the Customer.  Both processes would create an Item that would be sold on a Sales Order.

    I do not see a need for Jobs or Service.  There is a strong potential for Lot Tracking the production if you want to have a Certificate of Analysis on the finished product.  You would need to look into a Quality Control add-on to track specifications and tests.  You may also need to do Item Tracking on the raw materials if you want full trace-ability.

    Your partner should be able to assist with this setup.

    Ben Baxter
    Accent Software, Inc.
    Carmel IN

    NAVUG Summit - Post

  • 4.  RE: Providing an In-process service for an external Customer

    Posted Dec 28, 2018 12:33 PM
    Both Paul and Ben are correctly identifying that production orders is the best method to follow.  I'd like to offer a word on the lot tracking suggestion which is that often when service type work is provided from a customer the product they deliver differs and creating new part numbers each time the received items and the finished goods are different can create overhead tasking.  If you lot track the customers materials then you can build a single BOM for production and use it every time because the process is the same and the lot tracking takes care of the identification of the material.  I know not everyone wants to deal with lot track tasking but it might be simpler than having to build new part numbers frequently when the materials from your customer change.

    Also Ben is correct that most often from a Quality point of view the lot or serial id is needed to produce a certificate of analysis or conformance. They can be produced based on a production order or work order reference as long as you can deliver proof later that the materials shipped were actually produced on the production order and without lot tracking that can be a challenge. We offer one of the few Quality Management solutions that integrates to NAV and I would be happy to show you what the functionality for collecting quality data and generating the certificates looks like.  If this is the only product that requires this kind of documentation you may be comfortable simply using excel too.

    Frances Donnelly
    Director of Sales & Product Development
    Horizons International
    Julian CA

    NAVUG Summit - Post

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