To execute subcontracted operations (subcontractor’s side)

Production orders executed for the manufacturer are indicated as "subcontracting" production orders. It is possible to receive materials owned by the manufacturer for these orders. Those items are stored against a certain value using the current valuation logic. The items can be issued to a subcontracting production order. The actual costs of those items are zero when they are consumed in a production order. The WIP of a subcontracting production order is partially owned by the manufacturer, this value is visible to the user.

This topic describes how a subcontractor can handle an order from a manufacturer to execute one or more operations.

Note

For the subcontractor, the procedure for item subcontracting is the same as the procedure for operation subcontracting.

Subcontracting procedure
Step 1. Create sales order

Based on the subcontracting purchase order that the manufacturer sent you, you must create a sales order in the Sales Orders (tdsls4100m000) session.

View the sales order in the Sales Order - Lines (tdsls4100m900) session. The order line displays the completed subassembly that you send to the manufacturer after executing the operations.

Step 2. Supply lines and supply orders

After a sales order is created, you can view the supply lines, in the Sales Order - Lines (tdsls4100m900) session or the Sales Order Material Supply Lines (tdsls4116m000) session. Supply lines represent the materials and subassembly that must be shipped from the manufacturer to the subcontractor

Step 3. Create production order

To execute the subcontracted operations, you need a production order. Create a production order manually in Shop Floor Control, or create a planned production order in Enterprise Planning, and transfer it to Shop Floor Control.

For planned production orders in Enterprise Planning, you can view the production order operations in the Capacity Use by Planned Order (cprrp2100m000) session. If applicable, information about subassemblies is indicated on the operation line.

Step 4. Release a production order

Release the production order in Shop Floor Control.

In the Production Order (tisfc0101m100) session, on the Estimated Materials (ticst0101m000) tab, click Show Subassembly to view the subassemblies included in the estimated materials:

  • A positive quantity is displayed for the subcontracted operation.
  • For the subassembly that is sent back to the manufacturer, a negative quantity is displayed for the subcontracted operation.
Step 5. Receive subassemblies and components from manufacturer

The manufacturer sends you the subassemblies and material.

Step 6. Report operations completed

In the Report Operations Completed (tisfc0130m000) session, complete the operations you executed. If you defined a shop floor warehouse, the subassembly is automatically received in the shop floor warehouse. Without shop floor warehouse, the subassembly is received in the warehouse defined in the Items - Ordering (tcibd2500m000) session.

In the Material to Issue for Production Orders (ticst0101m100) session, you can check whether the subassembly is issued. In the Allocated-to Inventory (whwmd2519m000) session, you can check in which warehouse the subassembly is received.

Step 7. Report production order completed

Report the production order as completed in the Report Orders Completed (tisfc0520m000) details session.

Step 8. Transfer subassemblies

To ship the subassembly from the shop floor or the shop floor warehouse to the subassembly warehouse, carry out the transfer order.

  1. In the Material to Issue for Production Orders (ticst0101m100) session, select the subassembly that must be sent to the subassembly warehouse. This material line has a negative quantity. In the appropriate menu, click Production Warehouse Orders to start the Production Warehouse Orders (timfc0101m000) session.
  2. Select the transfer order with transaction type Issue, and click Warehouse Order - Status Overview.
  3. In the Outbound Line Status Overview (whinh2129m000) session, carry out the defined activities for the outbound-order line.
Step 9. Transfer completed subassembly

After you completed the subcontracted operations, you must return the subassemblies to the manufacturer. To transfer the completed subassembly, you must handle the sales order. Note that the name of the subassembly you send back to the manufacturer differs from the name of the subassembly you received from the manufacturer.

Step 10. Receive purchase order in subassembly warehouse

After subcontracting, the subcontractor sends back the subassemblies. To receive the subassemblies into the subassembly warehouse, you must handle the purchase order. Note that the name of the subassembly sent back by the subcontractor differs from the name of the subassembly you sent to the subcontractor.

Complete the following steps:

  1. In the Sales Order - Lines (tdsls4100m900) session, select the sales order line of the completed subassembly, and click Status.
  2. From the Sales Order Line Status (tdsls4534s000) session, handle the sales order according to the defined sales order procedure. For more information about sales order handling, refer to Flexible sales order processing and Overview of sales order handling.
Step 11. Close production order

Close the production order in the Close Production Orders (ticst0201m000) session.

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