For any finished good that requires several components, the item formula(BOM) should be properly set up. If you prefer the name BOM over Item Formula, use this page Rename Item Formulas to BOM to change it.
The item routing details the order of the steps needed to take to complete the finished product.
Setup Item Formulas for the Finished Goods
Open the App Launcher. Search for Items.
Click on the finished good that requires Outside Services. For this tutorial, Test-Finished Goods will represent finished goods.
Scroll down to Item Formulas. Click on New.
Fill out the fields based on the list of components the finished good contains. Click on Save.
The Item Formula should contain all of the components needed to create the finished good.
Scroll down to Item Routings. In the Item Routings section, click on New.
Fill out the Item Routing according to the steps needed to create the finished good.
Note: Operation No. indicates the order of manufacturing of producing the finished good.
The Work Center should be the Outside Service Item.
If there are sometimes different packaging items used to create the finished good, you can set up different Formula Versions.