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Subcontract operations in AX 2012

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I am working through subcontracting, but have questions about the Service item that has to be added to the parent part's BoM.

First question:  I had assumed that Service items cannot exist in inventory, but perhaps they can in AX?  And would they have value in inventory valuations?

I have created a service part (Paint), and applied an Item Model Group where the attribute 'Stocked product' is not selected.  I get this error message when I add this item to the BoM:  An item cannot be associated with a BOM if it is associated with an item model group where the attribute Stocked product is not selected.  I can now see that subcontract service items are a 'special' brand of service items, so I am Ok with this aspect.

Using a 'stocked' service part, I can get the purchase order to auto-create based on the works order, but haven't managed to get the purchase order receipt to book the works order operation.  It must be in the setup somewhere.  I am expecting that the item is received into stock and then immediately issued to the works order, hence leaving no residual stock of this service.

Second question:  During the parent part's cost calculation, does the cost of the subcontract operation come from the service item (Paint) on the BoM, or from the route's sub-con operation?  Or the purchase order price?

Third question:  is there any way that a purchase order can be auto-generated for a sub-contract operation without having to add an item to the BoM?  Some of the user manuals refer to a 'Vendor Operation' but they don't provide an example.

Any illumination will be gratefully received.



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