Purchasing subcontracting items

If a department that is responsible for the repairs or upgrades in an organization hires another company (the subcontractor) to carry out the repairs or upgrades, a purchase order must be created from a work order.

Step 1. To create a work order

You can create a work order in the Work Orders (tswcs2100m000) session. Enter an item for which the repairs or upgrades must be carried out by a subcontractor. The following fields in the Work Orders (tswcs2100m000) session must be defined for a work order for subcontracting:

  • Buy-from BP
    Enter the subcontractor that must execute the work.
  • Service/Cost Item
    Enter the subcontracting item. Because you cannot add activities to a purchase order line, the service item or cost item is used as an activity definition for Purchase Control.

On the appropriate menu of the Work Orders (tswcs2100m000) session, you have the following options:

  • Material Resources
    Adds additional materials to the work order that must be sent to the buy-from business partner. If you click this command, the Work Order Material Resources (tswcs4110m000) session starts. Enter an item and notice that the Delivery Type field is filled with Subcontracting Requirement. For these lines, no purchase orders are created. The lines are only available for information purposes and are added to the purchase order text.
  • Other Resources
    Adds other resources to the work order. The other resources serve to make a good cost estimation and/or to store actual costs, which are used in the purchase order. When you release a work order for subcontracting, LN automatically generates one other resource line. If you click this command, the Work Order Other Resources (tswcs4130m000) session starts. In the Item field, you can only enter cost items or service items.

Note: Only one other resource line is added to the work order. You cannot manually add other resource lines.

You can also define activities for a work order for subcontracting. After you created the work order header, on the appropriate menu of the Work Orders (tswcs2100m000) session, click Work Order Activities. As a result, the Work Order Activities (tswcs2110m000) session starts in which you can create and maintain work order related lines that each specify a maintenance activity. When the work order is released, LN automatically generates one other resource line for every activity. On the appropriate menu of the Work Order Activities (tswcs2110m000) session, click Other Resources to add other resources/change the cost price and click Material Resources to add material resources to the work order activity.

The date you enter in the Earliest Start field or the Planned Start field of the Work Orders (tswcs2100m000) session is displayed as the planned delivery date in the purchase order.

Step 2. To plan and release a work order

Plan and release the work order in the Work Order Planning/Releasing (tswcs3200m000) session to generate a purchase order. If the work order is released successfully, the work order has the status Released and a purchase order is generated with order type Maintenance. This can be viewed in the Purchase Order field of the Purchase Orders (tdpur4100m000) session.

On the appropriate menu of the Purchase Order Lines (tdpur4101m000) session, click Purchase Order Line - Linked Information. As a result, the Purchase Order Line - Linked Information (tdpur4502s000) session starts in which you can find the original maintenance work order.

Step 3. To inform Work Control System about the receipt of the subcontracting item

For a subcontracting item, which is of the type cost or service, the receipts for a purchase order can be carried out in Purchase Control or Warehousing. If you want the receipts to be made in Purchase Control, you must clear the Release to Warehouse check box in the Item - Purchase (tdipu0101m000) session. If you decide to receive the goods in Purchase Control, Purchase Control must inform Work Control System about the receipt of the goods. When you enter the receipt of goods in the Purchase Receipts (tdpur4106m000) session, LN automatically informs Work Control System by giving the work order the status Completed.

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