To perform operation subcontracting with material flow support

Typically, production orders are created by transferring planned production orders from Enterprise Planning.

You can also manually create a production order in the Production Orders (tisfc0501m000) session.

In the Production Order (tisfc0101m100) session, the operations of the routing of the production order are displayed on the Operations tab in the lines section of the session after specifying the routing.

The Materials tab shows the materials to be used in the operations of the production order.

To view the subassemblies to be manufactured in the operations of the production order, click Show Subassembly on the View menu of the Materials tab.

In the Net Quantity field, a negative quantity, that is, a negative issue, is a receipt in the warehouse of a manufactured subassembly.

A positive quantity is an issue to production.

For example, a negative quantity for a subassembly in operation 10 and a positive quantity for the same subassembly in operation 20 means this:

• The subassembly is manufactured in operation 10 and stored in the warehouse.

• Issued for production to be worked on in operation 20.

On the toolbar of the Production Order (tisfc0101m100) session, click Release Order to release the production order.

You can also use the Release Production Orders (tisfc0204m000) session to release a selected group of orders.

For the first, not subcontracted operation, complete these steps:

1. On the Actions menu of the Production Orders (tisfc0501m000) session, select Materials and Material to Issue for Production Orders.

2. In the Material to Issue for Production Orders (ticst0101m100) session, select the line of the materials to be issued and in the toolbar, click INITIATE.

3. Click Yes when prompted, select the printing device in the dialog, and click CONTINUE.

For the first, not subcontracted operation, complete these steps:

1. In the Operations tab in the lines section of the Production Order (tisfc0101m100) session, select the operation.
2. On the Actions menu in the Operations tab, select Report Operations Completed.
3. Alternatively, in the Report Operations Completed (tisfc0130m000) session, select the operation and open the record.

4. In the Completed field, specify the quantity of the completed item. This is equal to the planned output.

5. Click Default Qty Completed.

6. On the Actions menu, select Complete Operation.

7. Click YES when prompted to immediately post the subassembly to inventory.

Consequently, an inbound warehousing order from production to the warehouse is performed. This is done in the background if the warehousing activities are set to automatic.

This means that the subassembly is completed in production, using the materials issued in the previous step, and stored in the warehouse of the production site. The subassembly can now be issued for the next operation, which is subcontracted in this example.

The next operation is subcontracted. You must create a subcontracting purchase order to administrate the subcontracting process. Complete these steps:

1. From the Actions menu of the Production Orders (tisfc0501m000) session, start the Generate Subcontracting Purchase Documents (tisfc2250m000) session to generate a subcontracting purchase order.

   If the Previous Operation Must be Completed check box in this session is selected, you must first complete the operations that precede the subcontracted operation before you can generate a purchase order.

2. In the Generate Subcontracting Purchase Documents (tisfc2250m000) session, complete these steps:

   1. Specify a purchase order type for which the Subcontracting Order check box is selected in the Purchase Order Type (tdpur0694m000) session.

   2. Click Generate to generate the subcontracting purchase order.

   View the generated purchase order in the Purchase Order (tdpur4100m900) session. The order line displays the subassembly that you will receive from the subcontractor after the subcontractor has completed the operation.

Typically, this step is set up as an automatic activity, which is triggered by reporting the previous operation complete.

To manually approve the subcontracting purchase order, complete these steps:

1. Look up the applicable production order in the Production Orders (tisfc0501m000) session.

2. Select the production order and on the Actions menu, selectSubcontracting and Purchase Order .

3. On the toolbar of the Purchase Order (tdpur4100m900) session, click Approve to approve the subcontracting purchase order. For more information, refer to Purchase order approval.

Alternatively, you can look up the subcontracting purchase order via the subcontractor in the Subcontractor 360 (tisub0330m000) session. Complete these steps:

1. In the Subcontractor 360 (tisub0330m000) session, look up the subcontractor.
2. Select the subcontractor and in the Orders section, click Subcontracted Operations.
3. In the Subcontracted Operations (tisfc2110m000) session, look up the production order (if required, on the View menu, switch to Sort by Subcontractor, Subcontractor Site, Production Order).
4. Select the production order and on the References menu, select Purchase Order.

5. On the toolbar of the Purchase Order (tdpur4100m900) session, click Approve to approve the subcontracting purchase order.

In the Purchase Order Line Status (tdpur4534m000) session, release the subcontracting purchase order to Warehousing.

After the subcontracting purchase order is generated, you can view the supply lines in the Purchase Order (tdpur4100m900) session or the Purchase Order Material Supply Lines (tdpur4116m000) session.

Supply lines represent the materials and subassembly that must be shipped to the subcontractor.

The materials and subassemblies are sent to the subcontractor through supply orders.

A supply order is set up as a Warehousing transfer order and is typically defined as an automatic activity in the purchase order procedure. This means that supply orders are automatically generated when the subcontracting purchase order is approved.

If supply orders are not created automatically, run the Generate Supply Orders for Subcontracting (tdpur4216m000) session. The subassembly's supply system is Order Controlled/Single according to the planning cluster setup. See Overview of operation subcontracting with material flow for details.

Typically, the supply order is completed automatically, that is, the activities of the outbound and inbound order lines of the warehouse transfer order are set to automatic.

To manually complete the warehouse transfer order to send the materials and subassemblies to the subcontractor, complete these steps:

1. On the References menu on the of Material Supply Lines tab in the lines section of the Purchase Order (tdpur4100m900) session, select the subassembly and material and click Supply Order.

2. In the Warehousing Order (whinh2100m100) session, select the first outbound order line. The outbound order line contains a subassembly or material.

3. On the References menu of the Outbound Order Lines tab, select Status Overview.

4. In the Outbound Line Status Overview (whinh2129m000) session, carry out the activities such as generating and releasing the outbound advice and confirming the shipment, if the activities are not completed automatically.

5. Complete the activities of the outbound and shipment procedure for any subsequent outbound order lines.

As a result, the materials and subassemblies are issued from the manufacturer’s warehouse. Now, you must complete the inbound order lines of the transfer order to receive the materials and subassemblies in the subcontractor’s warehouse. Complete these steps:

1. In the Warehousing Order (whinh2100m100) session, select the first inbound order line.

2. On the References menu of the Inbound Order Lines tab, select Status Overview.

3. In the Inbound Line Status Overview (whinh2119m000) session, carry out the activities such as generating inbound advice and confirming the receipt, if the activities are not completed automatically.

4. Complete the activities of the inbound procedure for any subsequent inbound order lines.

The materials and subassemblies are now stored in the subcontractor’s warehouse. See Inbound and outbound procedures for information about warehousing order procedures.

In some cases, material for subcontracting activities is directly sent by the supplier to the subcontractor. In that case, complete the following steps:

1. In the Purchase Order (tdpur4100m900) session or the Purchase Order Material Supply Lines (tdpur4116m000) session, select the subassembly and material and click Supply Order. A new supply order is generated.

2. Select the newly generated order line and click Approve.

Typically, issuing materials from the subcontractor's warehouse is set up as an automatic procedure, because the production process performed by the subcontractor at the subcontractor’s site is not closely monitored. See Overview of materials for details.

If manual execution of this process is preferred, complete these steps:

1. In the Production Orders (tisfc0501m000) session, select the production order.

2. On the Actions menu of the Production Orders (tisfc0501m000) session, select Materials and Material to Issue for Production Orders.

3. In the Material to Issue for Production Orders (ticst0101m100) session, use the toolbar arrows to go to the subcontracted operation.

4. Select the material or subassembly to be issued.

5. Click INITIATE and when prompted to initiate inventory issue of the selected materials, click YES.

6. Select the appropriate printing device in the dialog and click CONTINUE.

After completing the subcontracted operation, the subcontractor sends back the subassemblies. To receive the subassemblies in the manufacturer’s warehouse, you must complete the subcontracting purchase order. Note that the name of the subassembly sent back by the subcontractor differs from the name of the subassembly you sent to the subcontractor.

Complete these steps:

1. In the Purchase Order (tdpur4100m900) session, select the subcontracting purchase order line of the subassembly sent back by the subcontractor, and on the appropriate menu, click Purchase Order Line Status.

2. 2. In the Purchase Order Line Status (tdpur4534m000) session, click EXECUTE to execute the Awaiting Receipts - Warehouse activity

   This starts the Inbound Line Status Overview (whinh2119m000) session, where you can receive and put away the inbound warehousing order that was generated after the subcontracting purchase order was released to Warehousing.

Confirming the receipt or putting away the subassembly sent by the subcontractor in the manufacturer’s warehouse automatically completes the subcontracted operation. See Purchase order procedure for information about purchase order handling.

In the Material to Issue for Production Orders (ticst0101m100) session, the incoming subassembly, which is now stored in the manufacturer’s warehouse, is registered as received by a negative quantity.

The completed subcontracted subassembly is now available to be issued to production for the next operation.

Repeat steps 3 and 4 to complete the third, not subcontracted operation.

Report the production order completed in the Report Orders Completed (tisfc0520m000) details session.

Close the production order in the Close Production Orders (ticst0201m000) session.