To set up subcontracting without material flow

In the Implemented Software Components (tccom0100s000) session, clear the Subcontracting with Material Flow check box if your company does not use operation subcontracting with material flow support.

Select this check box if your company uses operation subcontracting with and without material flow support or only uses operation subcontracting with material flow support.

In the Item (tcibd0501m100) session, complete these steps:

1. In the Item Type field, select Subcontracted Service. This is an administrative item that represents the subcontracted activities performed by the subcontractor. The Subcontracted Service item is displayed on the subcontracting purchase order. See To perform subcontracting without material flow support for details.

   The Enterprise Units tab in the lines section of the session is unavailable, because a subcontracted service item has no standard costs.

2. On the Sites tab, link the item to the applicable production sites.

3. In the Items by Site (tcibd1550m000) session, define data as required.

4. Click the Purchase subentity button in the Items by Site (tcibd1550m000) session to start the Items - Purchase by Site (tdipu0181m000) session.

   Note:  In the Buying tab, do not select a buy-from business partner. This is to keep it generic.

5. In the Receiving tab of the Items - Purchase by Site (tdipu0181m000) session, select or clear the Release to Warehousing check box.

   If selected, a warehousing receipt procedure with a warehousing order and warehousing receipt is created. In the Warehouse field, specify the warehouse in which the item is to be received.

   If cleared, the receipt of the item is registered in Purchase Control.

Outgoing and incoming subassemblies are left out of the job shop Bill of Materials.

The subcontracted service item is not included in the job shop Bill of Materials, because this is not a physical item that is used to produce the end item.

See To set up of operation subcontracting with material flow for details about linking component items.

In the Job Shop Routings (tirou4100m000) details session, the Subcontracting with Material Flow check box must be cleared. You may need to clear this check box if the Subcontracting with Material Flow check box is selected in the Implemented Software Components (tccom0100s000) session.

In the Job Shop Routing Operation (tirou4601m000) session, subassemblies and subassembly warehouses are not specified for subcontracted operations and operations that precede subcontracted operations.

For operations that precede a subcontracted operation, this is because this subassembly will be the outgoing subassembly of the next, subcontracted operation.

For subcontracted operations, this is because this is the assembly that the subcontractor has completed and returns to the manufacturer.

If your organization subcontracts an item with material flow support to some subcontractors and without material flow support to other subcontractors, you must define multiple job shop routings.

In the revision with material flow support, specify incoming and outgoing subassemblies. In the revision without material flow, clear the Subcontracting with Material Flow check box and remove the incoming and outgoing subassemblies.

The Operation Subcontracting Rates (ticpr1161m000) session is used for operation subcontracting with and without material flow support.

To specify subcontracting rates for operation subcontracting without material flow support, you must specify the subcontracted service item in the Subassembly field. To define a subcontracted service item, see step 2 Define subcontracted service item in this topic.

Use the Print Multilevel Cost Calculation (ticpr2420m000) session to calculate the standard costs of the end item. The overview shows the standard cost and the breakdown to the aggregated operation costs and material costs. For the subcontracted operation, the subcontracting rate is displayed.