A parts (material) flow to the subcontractor and a broken part flow from the subcontractor

A parts (material) flow to the subcontractor

Material can also be sent to the subcontractor. This material is created/generated as Work Order Material Resources (tswcs4110m000) lines, linked to the subcontracted activity. Consequently, this material can only be added after processing the outgoing subassembly (when the subcontracted activity is created), and before the subcontracted activity is released. The required material can also be added to the reference activity linked to the outgoing subassembly.

When the Supply Material to Subcontractor check box is selected in the Work Order Activities (tswcs2110m000) session, the Delivery Type can be set to From Warehouse, Via Purchase, or From Kit in the Work Order Material Resources (tswcs4110m000) session.

The Ownership of the material can be set to Company Owned or Customer Owned, in the Work Order Material Resources (tswcs4110m000) session.

If the Delivery Type is set to Subcontracting Requirement, the value in the Ownership field is set to Not Applicable.

When a purchase requisition is created, the material is not linked directly to the requisition. When the requisition is converted to a purchase order, the material to be supplied is retrieved from the work order material resources. The material can be added, modified, or deleted only until the purchase order is created. When the Supply Material to Subcontractor check box is cleared, material can not be supplied.

Usually, material is delivered to the work center of the activity, through a warehouse order. The warehouse order is not required when the material is linked to a subcontracted activity for which the Supply Material to Subcontractor check box is selected. The material specified in the Purchase Order Material Supply Lines (tdpur4116m000) session is shipped directly to the subcontractor’s warehouse. The Supply-from Warehouse in the Purchase Order Material Supply Lines (tdpur4116m000) session is populated with the Warehouse specified in the Work Order Material Resources (tswcs4110m000) session.

For material with Delivery Type set to Via Purchase, the purchase order must be processed to receive the material in the warehouse. Otherwise, shortages can occur.

From the Purchase Order Material Supply Lines (tdpur4116m000), warehouse transfer orders are generated to send the material to the subcontractor, that is, from the Supply-from Warehouse to the Supply-to Warehouse (an administrative warehouse). If the Supply-to Warehouse is modified, the subcontractor’s Warehouse on the related Work Order Material Resources (tswcs4110m000) line must be populated with this warehouse, and a warehouse order can be generated.

When the subcontracted item is received from the subcontractor, the material is assumed to have been consumed. So, this material is issued from the subcontractor’s (administrative) warehouse (back flushing). This backflushing process is initiated by Purchasing.

Broken parts flow

In this scenario, broken parts can be received from the subcontractor.

This is done by adding outgoing subassemblies linked to the subcontracted work order activity, with Action Outgoing Subassembly set to To Warehouse in the Work Order Outgoing Subassemblies (tswcs4150m000) session . The Warehouse is populated with the Warehouse Incoming Parts of the Operations Department. By default, the Action Incoming Subassembly is set to No Action and cannot be modified. The Received from Subcontractor check box indicates that this outgoing subassembly is a (broken) part received from the subcontractor. This checkbox is selected, when an outgoing subassembly for a subcontracted activity is added manually. This checkbox is required to distinguish broken parts from outgoing subassemblies.

To return these broken parts to the customer, the part delivery lines can be generated using the Add as Part Delivery Line option from the Action menu in the Work Order Outgoing Subassemblies (tswcs4150m000) session. This option is available:

• For an external work order, if the subassembly is linked to a subcontracted activity
• If the Action Outgoing Subassembly is set as To Warehouse and Action Incoming Subassembly is set to No Action.