One of the key questions that we ask is how you want the inventory to be managed.

if the raw material is pretty specific to this one part and not used in other products, then it's low risk showing that inventory in an "internal location"/ using the work order process flow (production bom)

If you need to segregate the inventory so you don't think that it's available internally, then the subcontracting process flow that goes from a subcontract order (which uses the subcontract bom)> purchase order > sales shipment > purchase receipt.  This can be a bit of a complicated process but it moved inventory into a "subcontractor location" that will still be on your books, but not part of internal inventory.

Else, you can use the work order flow that has a work center that is a subcontractor.

Hi JShea

If you are using the Manufacturing module already, I would favor using Production BoM and work orders. Even if both flows are very similar, I'd favor work orders because they are more flexible (allowing to mix internal operation and subcontracted operation -even multiple subcontracted operations within the same work order-). When using MRP and Standard cost calculation, you need to pick which BOM you are using (subcontract BOM or Production BOM), this might lead to some iterations when using both types of BoMs. Another benefit is: you don't need to implement or train your end-users on new functions. Of course, you need to create a routing but with generic routing you only need it for each different subcontracted service.

The key reasons to use subcontracting BoM (personal view) are:

1. If Manufacturing is not sold or implemented
2. If need of inter-company subcontracting (the subcontractor is another site or company of the group using Sage X3)
3. If your subcontract invoice you the service and components provided in different lines

I hope this will help but I guess the best is to test now.