| 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. 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. Depot repair A purchase requisition or purchase order is generated of
origin Maintenance when the Activity Status of a work order activity changes to Released in the Work Order (tswcs2100m100) session. The purchase requisition or purchase order can include a
cost or service item, or a purchased or manufactured item. If the Supply Item to Subcontractor check box is selected in
the Reference Activities (tsacm1101m000) session, the (purchased or manufactured)
item must be supplied to the subcontractor. If the Supply Material to Subcontractor check box is
selected for the item in the Reference Activities (tsacm1101m000) session, materials must be supplied to the
subcontractor for the item. You can view the supplied items and materials in the Purchase Order Material Supply Lines (tdpur4116m000) session. Field service A purchase requisition or purchase order is generated of
origin Service when the Activity Status of a service order activity changes to Planned in the Service Order (tssoc2100m100) session. The purchase requisition or purchase order always includes a
cost or service item. If the Supply Material to Subcontractor check box is
selected for the item in the Reference Activities (tsacm1101m000) session, materials for the item can also be
supplied to the subcontractor. You can view these materials in the Purchase Order Material Supply Lines (tdpur4116m000) session.
Purchase requisitions Generating subcontracting requisitions A purchase requisition can be generated from a work order activity, or service
order activity. For a subcontracted requisition line: - The Subcontracted check box is selected in the Purchase Requisition Lines (tdpur2502m000) session
- The work order, the service order, the reference activity,
and the material supply information are displayed in, or the details can be
accessed using the Linked Requisition Line Data (tdpur2502s000) session
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. 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 a suitable buy-from business partner and price are
retrieved for the subcontracted item, the requisition can be converted to a
purchase order.
- If no suitable buy-from business partner or price can be
retrieved or the price requires negotiation, the requisition can be converted
to an RFQ.
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 Subcontracted check box is selected in the RFQ Lines (tdpur1502m000) and RFQ Responses (tdpur1506m000) sessions
- The work order, the service order, the reference activity, and
the material supply information are displayed in, or the details can be viewed
using the Linked RFQ Data (tdpur1502s000) session
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: - The Subcontracted check box is selected in the Purchase Order Lines (tdpur4101m000) session.
- The work order, the service order, and the reference activity
are displayed in the Purchase Order Line - Linked Information (tdpur4502s000) session.
- The material supply information is displayed in the Purchase Order Material Supply Lines (tdpur4116m000) session, from which supply orders
can also be generated. A warehouse transfer order, or sales transfer order must
be generated to transfer the material from the component warehouse (supply-from
warehouse) to the administrative warehouse (supply-to warehouse), which
represents the subcontractor's warehouse.
- If the item to be repaired (subassembly) is serialized, the
item with the proper serial number can be sent to the subcontractor and
received. As a result, the purchase order line and material supply line include
the lot and serial information.
- A subassembly can be owned by a customer. As a result, a
purchase order line and material supply line support sending and receiving
customer owned items.
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 Warehousing 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 RFQ 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. | |