| Operation subcontracting in ProcurementThe operation subcontracting functionality enables purchase requisitions, requests for
quotation (RFQs), and purchase orders to include these subcontracted
items: - Subcontracted service items, that do not require supply
of material
- Purchased, Manufactured, or Product items with linked material supply information, which require supply of
materials and subassemblies from the manufacturer to the
subcontractor
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 Generating and updating subcontracting
requisitions You can generate a purchase requisition from a routing or a production order. For a subcontracted requisition line: - The Subcontracted check box is selected in the Purchase Requisition Lines (tdpur2502m000) session
- The operation for the item routing, the production order,
and the material supply information are displayed in, or can be initiated from
the Linked Requisition Line Data (tdpur2502s000) session
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. 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. Converting subcontracting requisitions An approved subcontracting requisition can be converted to
a purchase order or an RFQ in the Convert Purchase Requisitions (tdpur2201m000) session. Conversion restrictions: - If the requisition has a linked production order and a
buy-from business partner and price for the subcontracted item are identified,
the requisition can be converted to a purchase order. The requisition cannot be
converted to a purchase order before the linked production order is released.
- If the requisition has a linked production order, but no
buy-from business partner or price can be identified or the price must be
negotiated, the requisition can be converted to an RFQ.
- If the requisition has a linked routing and no linked
production order, it must always be converted to an RFQ and cannot be converted
to a purchase order.
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: - The Subcontracted check box is selected in the RFQ Lines (tdpur1502m000) and RFQ Responses (tdpur1506m000) sessions
- The operation for the item routing, the production order, and
the material supply information are displayed in, or can be initiated from the Linked RFQ Data (tdpur1502s000) session
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 RFQ 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: Purchase object | Available
origins | Explanation | Linked
document(s) |
---|
Requisition | Routing | Generated from a routing
operation | Routing operation | Job Shop Control | Generated from a production order | Production
order | Manual | Manually specified
subcontracted service | - | RFQ | Requisition | Generated from a
converted requisition with the Routing, Job Shop Control, or Manual origin | Routing operation, or
production order, requisition | Manual | Manually
specified subcontracted service | - | Purchase order | Job Shop Control | Generated from a production order | Production
order | Requisition | Generated from a
converted requisition with the Job Shop Control origin | Production order,
requisition | RFQ | Generated from a converted RFQ
with the Requisition origin | Production order,
RFQ |
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