Operation subcontracting without material flow support

The simplest way of subcontracting in LN is to create a subcontracting purchase order to record the operations that are outsourced to a subcontractor. This means that you purchase labour from a subcontractor. For this type of subcontracting, no material is supplied to the subcontractor.

To start a subcontracting process without material supply, you must set up the following data:

  • Subcontracted Service item
    In the Items - General (tcibd0501m000) session, define an item with item type Subcontracted Service. This is an administrative item that represents the subcontracted work. The Subcontracted Service item is displayed on the subcontracting purchase order.
  • Subcontracting work center
    Define a subcontracting work center in the Work Centers (tirou0101m000) session. In the Routing Operations (tirou1102m000) session, link the subcontracting work center to the routing operation that you want to subcontract.
  • Subcontracting rates
    In the Subcontracting Rates (ticpr1160m000) session, define the subcontracting costs. In the Subcontracting Item field you must enter the Subcontracted Service item. Note that you must define the rate for the correct combination of price calculation code and subcontractor. If you want to define an item-specific subcontracting rate, fill the Parent item field.
Step 1. Release production order

Create and release a production order for the item with subcontracted operations. On the item's routing, subcontracting work centers are defined.

Step 2. Generate subcontracting purchase order

In the Generate Subcontracting Purchase Orders (tisfc2250m000) session, generate a subcontracting purchase order. The number of the subcontracting purchase order is displayed on the subcontracted operation in the production planning.

If more than one operation is subcontracted, with more than one subcontractor involved, a purchase order is generated for every subcontractor.

Step 3. Handle purchase order

Handle the purchase order according to the defined purchase order procedure. For more information, refer to Flexible purchase order processing and Overview of purchase order handling.

Step 4. Handle warehouse order

Carry out the warehouse order procedure. For more information, refer to To handle warehousing orders.

Step 5. Complete operations

Complete the subcontracted operations, and, if applicable, further operations.

Step 6. Process purchase invoice

Process the purchase invoice. For more information, refer to Processing purchase invoices.

Step 7. Close production order

Close the production order.

Ad hoc subcontracting

If you had not planned to subcontract one or more operations, and consequently no subcontracting work centers are defined in the routing, use the Subcontract Operations (tisfc2210m000) session to replace an existing work center with a subcontracting work center on the operations that you want to subcontract.