Operation subcontracting in ProcurementThe operation subcontracting functionality enables purchase requisitions, requests for quotation (RFQs), and purchase orders to include these subcontracted items:
Purchase documents for subcontracted items can be generated from a routing operation or production order using these sessions in Manufacturing For subcontracted services, you can also manually specify purchase documents. Master data Before you can generate purchase documents from Manufacturing to subcontract operations, specify this master data:
Purchase requisitions Step 1. Generating and updating subcontracting
requisitions You can generate a purchase requisition from a routing or a production order. For a subcontracted requisition line:
As much requisition lines as possible are stored under one requisition header. Lines with the same requester, purchase office, and currency appear under one header. If you change the required date, quantity, or peg distribution data for the production order that is linked to the purchase requisition, the changes are updated in the requisition line. For requisition lines without peg distribution, you can update the quantity and quantity unit. However, the linked production order is not modified. If you make changes to a routing operation that is linked to a purchase requisition, the requisition line is not modified. The routing operation can be deleted only if the requisition is not closed. You can cancel requisitions with the Rejected or Modified status and delete requisitions with the Created status. If the requisition is canceled or deleted, a new requisition can be generated for the subcontracted item. 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 when 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 apply to conversion:
For more information, refer to Purchase requisition conversion process. Note If an RFQ is generated for a subcontracting requisition, you cannot delete the requisition before the RFQ is converted to a purchase order. The production order must remain linked to the requisition until a purchase order is generated. Requests for quotation (RFQs) After a requisition with a subcontracted item is converted to an RFQ, the origin of the generated RFQ is set to Requisition. For a subcontracted RFQ line:
If the RFQ has a linked production order and is not yet converted to a purchase order, the production order cannot be changed. For RFQ lines and response lines, the item and peg distribution data cannot be changed. For RFQ lines without peg distribution, you can update the quantity and quantity unit, but these updates are not applied to the linked production order. RFQ lines that are linked to a production order must be converted to a purchase order only after the linked production order is released. RFQ lines that are not linked to a production order can be converted only to a purchase contract, or a price book. If an RFQ line has alternative lines, the link with the production order or routing is defaulted on the alternative 0. The origin for the alternatives is Manual and no linked data is available. If the RFQ line has a linked production order, only one alternative must be converted to a purchase order. Other alternatives can be converted to a purchase contract or a price book. An RFQ line with the Requisition origin cannot be deleted before the line is converted. 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 Job Shop Control or from a converted requisition or RFQ. These purchase order lines must always have a linked production order. For a subcontracted purchase order line:
The process to generate and update purchase orders lines with subcontracted items is similar to the applicable process described earlier for purchase requisitions. Operation subcontracting prices If a requisition is generated from Job Shop Control and the Source of Price field is set to Subcontracting Rate in the Items - Purchase (tdipu0101m000) session, the subcontracting rate is defaulted as the purchase price for the requisition line. When the requisition is converted to a purchase order, this purchase price is also stored on the order line and no discounts are retrieved. If the Source of Price field is set to Price Book / Contract, no price is defaulted for the requisition line. When the requisition is converted to a purchase order, a purchase price and discounts are retrieved for the purchase order line based on the general searching logic for retrieving pricing information. For RFQs, the requisition line price is defaulted as Target Price in the Request for Quotation Lines (tdpur1502m000) session. When a requisition (with or without price) is converted to an RFQ, LN overwrites the requisition line price with the price and discounts that are returned by the bidders on the RFQ. Subcontracting origins A requisition, RFQ, or purchase order line with a subcontracted item, can have these origins:
| ||||||||||||||||||||||||||||||||||