WE want to implement job work ?? First of all Baan4 suports jobwork?
If it is how??

Job work means suppose customer gives all or some of the rawmaterials with the order? If the customer gives all the raw material we have to charge for the only operations.

I donno what is the exact term in Baan here am referring it as jobwork.

any ideas are welcome.

rgds,
jack

Dear Jack,

In many subcontracting cases, the customer does have to hand over some of the needed materials. This is because those particular materials might be a trade secret of the customer itself when selling to its customer. In this case, simply create new item codes for this unique customer's materials and receive it probably as purchase with zero price. Then create a BOM for the subcontracted finished good which contains combination of materials provided by yourself (which was obtained at a price) and ones from customer (which was free). Also create appropriate routing. If you do it this way, your subcontracted FG will have the correct standard cost, which only contains the cost of materials you acquire yourself as well as any direct labor and FOh costs that occurs because of the production operations you do for the customer.

The rest should be intuitive. When time comes for production, simply create production order for the subcontracted FG. The actual production cost for the production order should be correct by using the set up above, for obvious reasons. Finally, when you sell it, BaanERP will calculate the correct gross margin since your standard cost was calculated correctly

Rgds,
Paul