In this document the workflow for subcontracting is described when working with subcontracted operations and manufacturing orders.
A finished product with the subcontracted operation is updated in the stock and the corresponding financial transaction is performed.
Subcontract operations applies when one or more of the operations in a product structure is subcontracted and one or more of the operations is done inside your own factory.
For example, in the manufacturing of a chair, the cutting and the gluing operation may be done within the factory while painting is subcontracted. This way of working with subcontracting is called subcontracted operations.
The workflow is usually administrated through a manufacturing order.
Important tables used for these settings are:
|MPOPLP||Planning Proposal Purchase|
|MPHEAD||Purchase Order Header|
|MPLINE||Purchase Order Lines|
|MGHEAD||Stock Transaction, Header|
|MGLINE||Stock Transaction, Lines|
|MPSURL||Subcontracting Requisition Lines|
Create a planned PO and release to a PO
When a manufacturing order is specified for the finished product, a planned purchase order for the subcontracted operation is created automatically in 'Planned Purchase Order. Open' (PPS170). How to create a manufacturing order is described in Creating Manufacturing Order.
In 'Planned Purchase Orders. Open' (PPS170) sorting and selection of orders is done by using sorting orders and views.
How to create a planned PO is explained in Planned Purchase Order.
Origin code specifies from where the planned purchase order was created. By using origin code 21 only planned purchase orders created from manufacturing orders are displayed on the panel.
On the (PPS170/E) panel, the purchase price is defaulted from a general or a normal agreement. The price on the general agreement is specified on the F panel in 'Supplier. Connect Item' (PPS040). If no price is specified in the agreements, the price must be specified manually.
On the F panel, the manufacturing order number is displayed together with the number of the subcontracted operation in the product structure.
A requisition order is created
When the purchase order is printed and reaches status 20='Released', a requisition order is created in 'Req/Distr Order. Open' (MMS100). This will happen provided that the issue of material is done from the manufacturing order.
The requisition order is not inventory-accounted and only used to create freight document for the delivery of the material to the supplier and is often called a dummy requisition order.
The Status indicates how far in the workflow the requisition order has come. Status 44 means that the picking list is printed but not yet reported. On the requisition order type used for this transaction, you can set up whether or not picking list reporting is needed. When the picking list is reported, the status on the requisition order is set to 99. Requisition and distribution orders are described in greater detail in the requisition and distribution order documentation.
Report picking list
Picking lists are reported in 'Picking List. Report' (MWS420). Often there are two picking lists to report: One for the material issues (transaction type 11) and one for the freight documents (transaction type 41). For more information on reporting picking lists, see Print, Pick, Pack and Report Picking Lists.
Receive the goods from the subcontracted supplier
After the supplier has finished the work, the goods are sent back to the company. When the goods are delivered, the goods are received in the same way as normal goods by using 'Purchase Order. Receive Goods' (PPS300). The goods receiving method controls what activities are done in the receiving flow. For more information on receiving goods, see Goods Receiving Flow for Purchase Orders.
In some cases more than one supplier is used for subcontracting and the material is sent to a second supplier for further operations. On the purchase order document sent to the first supplier, the second supplier's address is printed in the Deliver to field. After the first supplier has sent the goods to the second, a fictive goods receipt should be done on the first purchase order.
Whether the on-hand balance on the material is updated depends on the settings on the order type after the goods receipt. If the operation is the last operation in the product structure it is preferable to update both the material plan and the projected balance.
When the subcontracted item is goods-received, the manufacturing order status is updated. The subcontracted operation gets status 90, fully reported. The goods receipt also creates financial transactions.
Additional operations following the subcontracted operation in the product structure, if any, are then carried out.
After the last operation the manufacturing order receipt is the next activity. This transaction can also be set so it is conducted automatically upon reporting of the subcontracted operation. After receipt of the manufacturing order is reported, the status on the manufacturing order header will be 90/90. How to report an MO is described in Reporting of Operation on Manufacturing Order.