We have metal that is ordered by a vendor in bulk for a part that he machines. We purchase the material ahead of time and he stores it until it is time to make the parts. I am not quite sure how to set up the BOM so that the raw material shows in inventory before it is actually machined. Any ideas?
 
Thanks.

or maybe...
1. Create a Part Number for the metal.  
2. Create a BOM for the machined Part as a make-from listing the Raw Material and the Qty consumed per part.  
3. no Routing  
4. no Work Order  
5. Issue a PO to the vendor for the machined part (which automatically includes negative qty for material).  
6. Receive PO and automatically consume material when the goods are received.  
7. When you do a Physical Inventory, have the vendor count the material on-hand for you.  
 
We do this for castings we have machined.