To set up operation with Customer Furnished Materials

Consider the following check boxes in the Implemented Software Components (tccom0500m000) details session:

• Customer Furnished Materials
  If you want to support the flow of subassemblies and components during the subcontracting process, you must select the Customer Furnished Materials check box.
• Demand Pegging
  Demand pegging is required to identify subassemblies uniquely. If the Demand Pegging check box is selected, every subassembly is allocated to a specific production order by means of a reference number.

• Note: It is not possible to use Customer Furnished Materials with Project Pegging implemented.

• Subassemblies

  In the Items - General (tcibd0501m000) details session, define two items for which the Subassembly check box is selected. These items represent respectively the subassembly sent by the manufacturer to the subcontractor, and the subassembly sent back by the subcontractor after work is done. The item type of the subassembly you send back to the manufacturer must be Manufactured.

  If the manufacturer sends only material, you just need to define an item code for the subassembly created by the subcontractor.

  Define the following data for the subassemblies:

  • Warehouse

    In the Items - Ordering (tcibd2500m000) session, find the defined subassemblies. For the subassembly that you receive from the manufacturer, enter in the Warehouse field the warehouse in which you receive the subassembly. For the subassembly that you send back to the manufacturer, enter the warehouse from which you send the subassembly.

  • Cost price

    To generate an effective cost component structure, define the assemblies' costing data in the Items - Costing (ticpr0107m000) session. Calculate and actualize the cost price in the Calculate Cost and Valuation Prices (ticpr2210m000) session while the Actualize Standard Cost and Valuation Prices check box is selected.

  • Price

    For the item that is sent back by the subcontractor, you must determine the price the manufacturer pays to the subcontractor.

Define terms and conditions in the following cases:

• If components are shipped by sales orders.
• If the the manufacturer is responsible for the components' planning.

Perform the following steps:

1. By means of the Terms and Conditions (tctrm1100m000) session, start the Terms and Conditions (tctrm1600m000) session to define a terms and conditions agreement. The Terms and Conditions Type field must be Purchase.

2. Define a terms and conditions search level for which the Search Attribute 1 field is Item Group, and the Search Attribute 2 field is Warehouse. Select the Order check box and the Planning check box.

3. Double-click the defined search level to start the Terms and Conditions Search Level - Lines (tctrm1610m000) session. In this session, define the items to which the agreement applies.

4. Double-click the defined items to start the Terms and Conditions Line (tctrm1620m000) session. On the Planning tab or in the Planning Terms and Conditions (tctrm1135m000) session, select the Supply Planning by Supplier check box. On the Order tab or in the Order Terms and Conditions (tctrm1130m000) session, select Sales Order Transfer in the Transfer Type field.

Link the following information to the subcontracting work center:

• In the Shop Floor Warehouse field, you can enter a shop floor warehouse. This warehouse is used to monitor the subassemblies' and components' inventory levels.

• Link to the first subcontracted operation:
  The subassembly which represents the product that the manufacturer sends to the subcontractor. It is recommended that the subassembly warehouse equals the BOM warehouse of the materials sent to the subcontractor.
• Link to the other subcontracted operations:
  The applicable work center.
• Link to the last subcontracted operation:
  The subassembly which represents the product that you send back to the manufacturer. The warehouse in which you receive the subassembly takes a default value from the Warehouse field in the Items - Ordering (tcibd2500m000) session.