Setting up operation subcontracting

Select the Fremdleistung mit Materialfluss check box in the Implementierte Software-Komponenten (tccom0500m000) details session.

If you need to identify subassemblies uniquely, you can select the Bedarfszuordnung or the Projektzuordnung check box in the same session.

Define an administrative warehouse in the Läger (whwmd2500m000) session. The administrative warehouse reflects the external warehouse at the subcontractor's location. Define the subcontractor data in the Kunde field and the Warenempfänger field. This data is necessary to create subcontracting purchase orders during the subcontracting process.

Consider the following check boxes:

• Bestandsverwaltung

  If you clear the Bestandsverwaltung check box, you indicate that the subcontractor carries out the warehouse's inbound activities, which is a logical choice in case of subcontracting. You must complete the inbound procedure in one of the following ways:

  • Use automatic warehousing procedures. For more information, refer to Warehousing orders.
  • Update the inventory based on Receive Delivery messages. For more information, refer to Receipt delivery messages.

  If you clear the Bestandsverwaltung check box, and select the Manueller Einlagerungsprozess zulässig check box, inventory management is not carried out, but you can do a manual inbound.

  Note that if you select the Bestandsverwaltung check box, you must also use automatic warehousing procedures.

• In Unternehmensplanung (CP) berücksichtigen

  Select the In Unternehmensplanung (CP) berücksichtigen check box.

• End item

  In the Artikeldaten (Produktion) (tiipd0101m000) session, find the end item for which you subcontract one or more operations, and for which you want to support the material flow. Select the Fremdbearbeitung mit Materialfluss check box for this item.

  Calculate the end item's standard cost (top-down) in the Herstellkosten berechnen (ticpr2210m000) session.

• Subassemblies

  In the Artikel (tcibd0501m000) details session, define two items for which the Kundenspezifisch check box is selected. These items represent respectively the subassembly sent by the manufacturer to the subcontractor, and the subassembly sent back by the subcontractor after work is done. If you want to leave open the possibility to produce the item yourself instead of sending it to a subcontractor, set the item type of the subassembly that you receive back from the subcontractor to Fertigungsartikel or Produkt.

  If the manufacturer sends no subassembly to the subcontractor but only material, you just need to define an item code for the subassembly created by the subcontractor.

  Define the following data for the subassemblies:

  • Warehouse

    In the Artikel - Bestelldaten (tcibd2100m000) session, find the defined subassemblies. For the subassembly that you will send to the subcontractor, enter in the Lager field the warehouse from which you send the subassembly. For the subassembly that you receive back from the subcontractor, enter the warehouse in which you receive the subassembly.

  • Standard Cost

    To generate an effective cost component structure, define the assemblies' costing data in the Artikel - Herstellkostenberechnung (ticpr0107m000) session. Calculate and actualize the standard cost in the Herstellkosten berechnen (ticpr2210m000) session while the Herstellkosten aktualisieren und Bestand neu bewerten check box is selected.

  • Supply

    Subassemblies are sent to the subcontractor by means of a purchase subcontracting order, which is an order-specific supply. In the Artikeldaten nach Lager (whwmd2510m000) details session, you must therefore define the supply system Order Controlled / Single for the correct combination of the subassembly that you will send to the subcontractor and the administrative warehouse. Note that for a subassembly, this is the only supply system you can use.

  • Price

    For the item that is sent back by the subcontractor, you must determine the price you will pay to the subcontractor. In the Artikel - Einkauf (tdipu0101m000) session, use the Preisherkunft für Arbeitsgang-Fremdbearbeitung field to choose between Fremdbearbeitungskostensatz and Preisbuch / Vertrag to determine the price. Note that if you subcontract the last operation, you must define the price for the end item instead of for the subassembly.

    If the Preisherkunft für Arbeitsgang-Fremdbearbeitung field in the Artikel - Einkauf (tdipu0101m000) session is Fremdbearbeitungskostensatz, you must define subcontracting rates in the Fremdbearbeitungskostensätze (ticpr1160m000) session. Define the rate by task for the correct combination of project, price calculation code, parent item or subcontractor.

    If the Preisherkunft für Arbeitsgang-Fremdbearbeitung field is Preisbuch / Vertrag, the Fremdbearbeitungskostensätze (ticpr1160m000) session is also relevant, because the tasks' cost components are defined in this session. You can leave the Übergeordneter Artikel, and Unterbaugruppe fields empty.

Regulate the supply of components to the subcontractor. There are two ways:

• Order specific supply

  Order specific supply means that supply is linked to the subcontracting purchase order. The supplied quantity is the quantity required for the purchase order. To use order specific supply, the component's supply system in the Artikeldaten nach Lager (whwmd2510m000) session must be Holprinzip (einzeln), for the correct combination of component and administrative warehouse.

  Order specific supply can exist between manufacturer and subcontractor, or directly between supplier and subcontractor:

  Supplier - subcontractor

  • Clear the Lieferung aus Lager check box in the Artikeldaten nach Lager (whwmd2510m000) details session, for the correct combination of component and administrative warehouse.
  • Enter the supplier in the Warenversender field and the Lieferant field.
  • Supply takes place by purchase order.

Define terms and conditions in the following cases:

• If components are shipped by sales orders.
• If you, the manufacturer, are responsible for the components' planning.

Perform the following steps:

1. By means of the Bedingungen (tctrm1100m000) session, start the Bedingungen (tctrm1600m000) session to define a terms and conditions agreement. The Bedingungsart field must be Verkauf.

2. Define a terms and conditions search level for which the Suchattribut 1 field is Artikelgruppe, and the Suchattribut 2 field is Lager. Select the Auftrag check box and the Planung check box.

3. Double-click the defined search level to start the Suchtiefe für Bedingungen (tctrm1610m000) session. In this session, define the items to which the agreement applies.

4. Double-click the defined items to start the Bedingungsposition (tctrm1620m000) session. On the Planning tab or in the Planungsbedingungen (tctrm1135m000) session, select the Zuständig für Lieferplanung check box. On the Order tab or in the Auftragsbedingungen (tctrm1130m000) session, select Verkaufsauftragsumbuchung in the Umbuchungsart field.

For more information about agreements, refer to Setting up terms and conditions.

If components are planned by the subcontractor or shipped by sales order, define a contract in the VK-Verträge (tdsls3500m000) session. The Kunde field must contain the subcontractor code. Use the Bedingungen - ID field to link the applicable terms and conditions agreement.

Define the rest of the contract in the VK-Vertragspositionen (tdsls3501m000) session.

Define your user profile in Einkauf so that LN can generate and handle subcontracting purchase orders properly.

In your LN system, you must define a subcontracting work center to represent the place where subcontracting operations are carried out. In the Abteilungen (tirou0101m000) session, define a subcontracting work center with work center type Fremdbearbeitung.

Link the following information to the subcontracting work center:

• In the Fremdbearbeiter field, enter the subcontractor code.
• In the Produktionslager field, enter the administrative warehouse, which can be a normal warehouse or a shop floor warehouse. This warehouse represents the warehouse at the subcontractor's location, and is used to monitor the subassemblies' and components' inventory levels.

In the Arbeitsgänge (tirou1102m000) session, link the defined subassemblies, warehouses, and subcontracting work centers.

In the Stückliste (tibom1110m000) session, use the Lieferung durch Fremdbearbeiter check box to determine how the subcontractor is provided with material for subcontracting activities.

In the Arbeitsgang field, enter the operation number for which the subcontractor requires the material.