Item subcontracting - procedure

You can use item subcontracting to subcontract an item's entire production process. If you apply item subcontracting, no production order is created.

For item subcontracting, perform the following steps:

Step 1. Create purchase order

A purchase order is required to subcontract the production of a specific item. You can create a purchase order in two ways:

  • Manually in the Purchase Orders (tdpur4100m000) session.

  • By means of an item order plan.

    1. In the Sales Orders (tdsls4100m000) session, create a sales order for the subcontracted item that you have sold.
    2. In the Item Order Plan (cprrp0520m000) session, click Generate Order Planning (Item) to generate an item order plan. If the demand exceeds the supply, a planned purchase order is generated for the subcontracted item. You can view the planned purchase order in the Planned Order (cprrp1600m000) session.
    3. In the Planned Order (cprrp1600m000) session, select the planned purchase order, and click Transfer Planned Order. The planned purchase order becomes a purchase order advice, which can be viewed as a purchase order in the Purchase Orders (tdpur4100m000) details session.
Step 2. Handle purchase order and supply orders

In the Purchase Order - Lines (tdpur4100m900) session, you can view and maintain the purchase order. Note that the Subcontracted check box in the Purchase Order Lines (tdpur4101m000) session is selected. The Material Supply Lines tab lists the materials that are sent to the subcontractor. From the Purchase Order - Lines (tdpur4100m900) session, carry out the following steps to handle the purchase order, and receive the finished subcontracted items in your warehouse:

  1. Select the purchase order line, and click Approve.
  2. On the Material Supply Lines tab, click Supply Order... to generate supply orders. The Transfer Type field indicates how material is shipped from the manufacturer to the subcontractor.
  3. In the header's appropriate menu, click Activities to check which activities must be done to handle the purchase order, and whether the activities are performed automatically.
  4. In the purchase order's header, click Approve.
  5. Check in the Supply Order Number field whether supply orders are already generated. If not, select the material supply line, and click Generate Supply Order in the appropriate menu. You can also use the Generate Supply Orders for Subcontracting (tdpur4216m000) session.
  6. Select the material supply lines for which a supply order exist, and click Supply Order... in the appropriate menu. You can now handle the supply order.
  7. Select the purchase order line, and click Purchase Order Line Status. From the Purchase Order Line Status (tdpur4534m000) session, handle the purchase order according to the defined purchase order procedure so that the order is received in the warehouse. For more information about purchase order handling, refer to Flexible purchase order processing and Overview of purchase order handling.
Step 3. Handle sales order

If you created a sales order because you sold the subcontracted items, you must approve the sales order. In the Sales Order - Lines (tdsls4100m900) session, on the Monitor tab, select the sales order line, and click Inbound/Outbound Status. From the Outbound Line Status Overview (whinh2129m000), handle the sales order.

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