This document explains how to process a subcontracting repair order. Subcontracting happens when a component is sent out to a contractor for repair, refurbishment or overhaul. This happens when the dealership or the equipment reseller does not have the capability to perform the required task to make the component serviceable.
A typical scenario starts when a customer contacts the dealership asking for a repair order to a contractor that handles the servicing of the equipment. A maintenance customer order is created to cover the repair order based on a pre-defined service BOM. In turn, a work order and a purchase order are generated after releasing the MCO line. The component is sent out and repaired at the contractor’s workshop. After the work is complete, the contractor returns the serviceable component to the dealer. To close the process, the dealer delivers the serviceable component and bills the customer accordingly.
This document only describes the common subcontracting scenario where a component sent to the dealership is repaired, refurbished or overhauled by the contractor. The automated processes of work order creation, service history approval, purchase order creation, requisition order (component sent out to supplier), MCO line approval, and work order closure are used to describe the flow.
The process is dependent on the component to be repaired having already been received and existing in the warehouse of the dealership from where it will be sent to the contractor.
The maintenance customer order and work order are created, reported, closed off, and invoiced.
The product and lot number should exist in the inventory. The lot will be sent out to the contractor with the subcontracting order. Subcontracting repair order types are defined with purchase order category '60 – Repair order'.
For information about prerequisite settings, refer to these documents and apply the configuration recommendations provided:
A valid maintenance agreement must be created in 'Maint Agrmnt. Open' (COS410).
A valid service definition must exist in 'Service. Open' (MOS300).
Select an order type with 'Next manual function' as 5-'Start work order'.
On 'Maint CO Type. Open' (COS010/F):
On 'Work Order Type. Open' (MOS120/F):
Define purchase order type. See Repair Order - Purchasing.
On 'Purchase Order Type. Open' (PPS095/H):
On (PPS095/F), specify 2-'No bal upd' for parameter 150 'Material plan update'.
Auto approval of service history should be activated on 'Service. Connect to Facility' (MOS301/E) by specifying 1-'Yes' in the 'Auto approval' field.
A subcontract work center ('Resource type' = 2 on 'Work Center. Open' (PDS010/E)) should be used in 'Product. Connect Materials/Operations' (PDS002) for the operation.
On (PDS002/G), specify 1-'Pur + Req order' for 'Run time' and 'Subcontr ctrl'.
On (PDS002/H), specify a 'Unit price' and 'Supplier'.
Use related option 65='Subcontracting Supplier' to open 'Subcontracting. Connect Supplier' (MOS018) to manage the preferred supplier ID on different levels. The ‘Unit price’ is managed through a purchase agreement in 'Purchase Agreement. Open' (PPS100) in this case.
On 'Settings. Maintenance 1' (CRS788/F), specify 2-'Yes, stop' for parameter 18 'Check for open transactions when reporting WO'. See Define Settings for Maintenance 1 (CRS788).
In 'Settings – Purchase' (CRS780/G), specify parameter 32 'Planning policy – subcontracting and repair'. See section 'Settings for planned POs should be automatically released to POs' in Settings for Purchase Order.
In (CRS780/E), specify a repair order type for parameter 07 'Default order type = subcontracting'.
In (CRS780/G), specify a location for parameter 34 'Location template – repair order'.
In 'Item. Connect Facility' (MMS003/E), specify '2-Acc chg trns tp' for parameter 'On-hand method'. See On-hand Balance Reporting per Facility.
In 'Purchase Agreement. Open Lines' (PPS101/B), define a 'Group ID' using IFPRCS (Service process) and IFSUFI (Service) as main controlling fields for defining a price for the complete service. Specify a 'start date' and a 'purchase price'. Use the main controlling fields CAPRNO (Product), CASTRT (Structure type), CASUFI (Service) and POOPNO (Operation number) to define a price for a specific subcontracting operation.
The instruction is based on panel sequence=9 on (COS130/P).
Start 'Main CO Quick Entry' (COS130).
Specify the required information for 'customer', 'agreement', 'product', 'lot number', 'service', 'facility', and 'order type'.
Specify other optional information if required, for example requested start/finish dates.
Click Next to create the maintenance customer order. Panel sequence '9' opens 'Work Request . Open' (MOS170).
When the maintenance customer order is confirmed, these activities are automatically performed:
See Print MCO Invoice.
On (PDS002/E), select 'Issue method' and 'Subcontract control' to your preferred settings.
If subcontract control is specified as 0, material is issued to the work order in the same way as for inhouse operations.
If subcontract control is specified as a value higher than 0 the material is issued against a requisition order (RO) connected to the subcontracting purchase order. The RO is created when the planned purchase order is released. The material line is closed at goods receipt. Issue method 2 must be used to prevent material handling against the work order.
If material lines are added manually on the work order, additional setup is needed on that specific line if you want to send the material. 'Subcontract ctrl' and 'Issue method' determine how you handle the material.