Service subcontracting in ProcurementThe service subcontracting functionality enables purchase requisitions, requests for quotation (RFQs), and purchase orders to include subcontracted items. Service subcontracting is supported with and without material flow. When purchasing subcontracting service activities from Depot Repair or Field Service, materials can be supplied to the subcontractor. In case of Depot Repair, also the complete item to be maintained (subassembly) can be supplied to the subcontractor. Master data Before you can generate subcontracting purchase documents from Service, you must specify the master data. For more information, refer to Data setup for service subcontracting with material flow (Depot Repair). Generating purchase documents from Service Purchase requisitions and purchase orders with subcontracted items are generated from Service; either from a work order activity in case of depot repair, or from a service order activity in case of field service.
Purchase requisitions Step 1. Generating subcontracting requisitions A purchase requisition can be generated from a work order activity, or service order activity. For a subcontracted requisition line:
Step 2. Approving subcontracting requisitions If the Submit Generated Requisitions Automatically check box is selected in the Purchase Requisition Parameters (tdpur0100m200) session, LN submits the generated purchase requisitions for approval. Note: if this check box is selected, the purchase requisition cannot be updated before approval. Updates can be made only if the requisition is rejected by the approver. For more information, refer to Purchase requisition approval process. Step 3. Converting subcontracting requisitions An approved subcontracting requisition can be converted to a purchase order or an RFQ in the Convert Purchase Requisitions (tdpur2201m000) session. The following is applicable:
If an RFQ is generated for a subcontracting requisition, you cannot delete the requisition before the RFQ is converted to a purchase order. For more information, refer to Purchase requisition conversion process. Requests for quotation (RFQs) After a requisition with a subcontracted item is converted to an RFQ, the generated RFQ's origin is set to Requisition. For a subcontracted RFQ line:
The generated RFQ must be converted to a purchase order in the Convert RFQs (tdpur1202m000). An RFQ line with the origin Requisition cannot be deleted before conversion. If more than one alternative is available for a line, alternatives can be deleted. However, the first alternative (alternative 0) must remain. Purchase orders Purchase orders lines with subcontracted items can be generated from Service or from a converted requisition or RFQ. For a subcontracted purchase order line:
After the purchase order is generated, the linked service order or work order is updated with the purchase order number and the buy-from business partner. Receipts and consumptions For a subcontracted item of the type Cost or Service, the receipts can be processed in Procurement or Warehousing. This is determined by the Release to Warehouse check box in the Items - Purchase (tdipu0101m000) session. LN generates a trigger from Procurement or Warehousing, to Service on the receipt of the item. Based on the receipt information, Service issues the materials from inventory and updates the consumed quantities on the material supply lines. Service subcontracting prices If a requisition is generated from Service and the Source of Price field is set to Reference Activity in the Items - Purchase (tdipu0101m000) session, LN defaults the purchase price from Service on the requisition line. After the requisition is converted to a purchase order, this purchase price is also defaulted on the order line and no discounts are retrieved. If the Source of Price field is set to Price Book / Contract, price data is not defaulted on the requisition line. When the requisition is converted to a purchase order, the purchase price and discounts are retrieved for the purchase order line, based on the general search logic utilized for retrieving pricing information. For RFQs, the requisition line price is defaulted as the Target Price in the Request for Quotation Lines (tdpur1502m000) session. After the requisition (with or without the price) is converted to an RFQ, LN overwrites the requisition line with the price and discounts, specified by the bidders on the RFQ response.
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