Follow these steps

Note: Refer to the 'Parameters to set' table to identify which settings element details best correspond to the company's subcontracting needs and how they should be configured.

Product structure for subcontracted operations

In the product structure, the material and operations for the subcontracted item are described.

Here, only the fields of interest for subcontracted operations are explained. To learn about how to create a product structure, see Creating a Product Structure.

  1. Start 'Product Structure. Open' (PDS001).

  2. On the B panel, select the manufactured item in the 'Product' field and select a product structure type in the 'Stp' field.

  3. Fill in appropriate fields on the E panel.

  4. On the F panel, fill in the number of subcontracted operations.

    The product structure must consist of at least one subcontracted operation.

  5. Press Enter and start 'Product. Connect Materials/Operations' (PDS002/U).

    Specify the material lines and subcontract operation.

  6. The subcontracted operation in the structure is connected to a work center. The work center is specified in 'Work Center. Open' (PDS010) and must have resource type 2='Subcontractor in a routing'.

    Usually, a special work center is used for the subcontracted operation.

  7. The supplier number of the supplier performing the operations is specified on the G panel in 'Work Center. Open' (PDS010/G). If this is done, the supplier is defaulted when adding the subcontracted operation to the product structure in 'Product. Connect Materials/Operations' (PDS002).

  8. The supplier number of the supplier used for the subcontracted operation is specified on the G panel in 'Work Center. Open' (PDS010/G). If this is done, the supplier is defaulted when specifying the subcontracted operations in the product structure in 'Product. Connect Materials/Operations' (PDS002).

  9. On the subcontracted operation in 'Product. Connect Materials/Operations' (PDS002), some settings are specified on the E, G, and H panels.

  10. Settings for the material lines are done on the E panel.

    The subcontract control field on the E panel (material lines) indicates how the material issue is done, that is, if there is a connection to a subcontractor or direct purchase. These are the valid alternatives:

    0 = Issue performed from manufacturing order

    1 = Issue performed through general stock transactions, without the possibility to override

    2 = Same as alternative 1 but the issue can be changed in the planned order.

    • The usual way to perform material issue for subcontracted operations is from the manufacturing order (=0). Alternatives 1 and 2 are usually used for subcontracted items where no manufacturing order exists.
    • If this field is not shown on the E panel, the material method - subcontracting parameter on the P panel (PDS002/P) can be switched off. The panel is reached by using F13 (Parameters) from the B panel in 'Product. Connect Materials/Operations' (PDS002).
  11. On the (PDS002/G) panel, there are two fields of special interest;

    • The 'Subcontract control' parameter controls whether or not a planned purchase order and a requisition order should be created. For subcontracted items, this parameter is usually set to 1='Purchase order' and requisition order are created, in which case both a purchase order and a requisition order are created in the subcontracting flow. This parameter can be defaulted from the P panel.
    • The 'Production day's' field and the lead time for the subcontracted operation is specified. This time is always independent of volume. The lead time is used to calculate the expected delivery date of the subcontracted goods from the supplier.
  12. On the (PDS002/H) panel, (reached by using Page Down from the G panel), specify unit for the subcontracted operation.

    These prices are only for information and will not be used to calculate the inventory value for the operation.

    • The supplier number predefined on the work center used for the subcontracting operation in 'Work Center. Open' (PDS010) is displayed and can be changed on this panel.
    • If another supplier performs the operation after the subcontracted operation, the supplier number of the other supplier is specified in the Next supplier field. This supplier's address is printed as a deliver to address on the purchase order document to the first supplier, informing the first supplier where to deliver the goods. The address is defined as address type 05 in 'Supplier. Connect Address' (CRS622).

Supplier information

The product structure, items and suppliers must exist to be able to work with subcontracting items. As for subcontracted operations, an item/supplier record must be defined in 'Supplier. Connect Item' (PPS040).

Here, only fields of interest for subcontracting are explained. To learn about how to create a supplier/item connection, see Settings for Supplier and Items.

  1. On the B1 panel, choose sorting order 4 to display subcontracted operations. Select the item number for the subcontracted product.

    • The 'Service process' (Spc) field specifies the product structure type and the Service field the number of the subcontracted operation.
    • It is important to specify the subcontracted operation number as it is specified in 'Product. Connect Materials/Operations' (PDS002) since this field is alphanumeric. (Do not forget the leading zeros).

    An agreement with the subcontractor can be specified in 'Agreement. Open' (PPS100). The agreement lines for service processes are displayed using sorting order 2. See Managing Agreements with Suppliers to learn more about agreements.

  2. Open (PPS040/E).

    • The 'Record type' field indicates the type of ID for the item/supplier combination and has to be 2 for subcontracted operations.
    • 'Supplier item number', 'Supplier item name', and 'Supplier item description' are printed on the purchase order document, if specified. These fields can be used to inform the supplier about the subcontracted operation. The supplier-related fields are printed according to the printout method fields on the order type in 'PO Type. Open' (PPS095).
    • The order type used for the created purchase order is specified on the panel. The order type must be of category 70. If no order type is specified, the order type defined in 'Settings – Purchasing' (CRS780) is used. See the Settings section in chapter 4.
    • The goods receiving method specifies what activities to perform in the receiving flow.
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