Customer furnished materials in Sales and Procurement

To enable customers or their suppliers to furnish the materials that are required to produce a specific customer item, you can implement Customer Furnished Materials. This functionality must be used in combination with demand pegging.

Customer furnished materials - Sales

If you use customer furnished materials with demand pegging, you specify the customer furnished materials in the Bill of Material (tibom1110m000) session. Furnishing of customer materials is initiated from a sales order line, which includes the item that contains customer furnished materials. The sales order line has a linked demand peg for the customer demand.

Note

If a sales order line contains customer furnished materials, the Contains Customer Furnished Material is selected in the Sales Order Lines (tdsls4101m000) session.

Customer furnished materials - Procurement

Before customer furnished material (CFM) purchase orders can be generated, you must specify the following master data:

  • In the Purchase Order Type - Activities (tdpur0694m000) session, select the Customer Furnished Materials check box for the order type and link activities to the order type.
  • In the Purchase Order Parameters (tdpur0100m400) session, specify the default Order Series for Customer Furnished Materials and Order Type for Customer Furnished Materials fields to generate CFM orders from Enterprise Planning.

Based on the demand from a sales order, a purchase order of the Customer Furnished Materials type is generated by the order plan. This purchase order is used to call off the customer furnished materials that are needed by the production order to produce the customer item. The purchase order inherits the demand peg of the demand order.

The following are applicable to the lines of a customer furnished materials purchase order:

  • The Payment field is No Payment
  • Because the customer or its supplier furnishes the materials, the customer or supplier is specified in the Buy-from Business Partner field.
  • Because the customer is the owner of the item, the customer is specified in the Owner field.
  • The line contains a specification (demand peg).
Note

You cannot manually specify CFM purchase orders.

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