To perform product subcontracting

Create a subcontracting purchase order by transferring a planned subcontracting order from Enterprise Planning to a subcontracted purchase order.

For details about transferring planned subcontracting purchase orders from Enterprise Planning, see To create and transfer a planned subcontracting order and Planned orders in Enterprise Planning.

You can also manually create subcontracting purchase orders in the Purchase Order (tdpur4100m900) session. See Purchase order procedure for details.

In the Purchase Order (tdpur4100m900) session, on the toolbar, click APPROVE.

This will launch the next activities of the purchase order procedure if they are set up as automatic activities. The first activity is generating the supply order that transfers the components to the subcontractor.

To send the components to the subcontractor, complete these steps:

1. In the Material Supply Lines tab of the Purchase Order (tdpur4100m900) session, select a material line and on the Actions menu, click Generate 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.

   Consequently, the components are issued from the manufacturer’s warehouse at the production site. Now, you must complete the inbound order lines of the transfer order to receive the components 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 components are now stored in the subcontractor’s warehouse. See Inbound and outbound procedures for information about warehousing order procedures.

After completing the production of the subcontracted item, the subcontractor sends the item from the warehouse at the subcontractor site to the warehouse at the production site.

To register the receipt of the subcontracted item into the manufacturer’s warehouse, you must complete the subcontracting purchase order.

Complete these steps:

1. In the Purchase Order (tdpur4100m900) session, select the purchase order line that contains the item, and on the appropriate menu, click Purchase Order Line Status.

2. In the Purchase Order Line Status (tdpur4534m000) session, click Execute to execute the Awaiting Receipts 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.

   Note: Meanwhile, any components that you sent to the subcontractor are backflushed from the subcontractor warehouse.

   Confirming the receipt or putting away the item in the manufacturer’s warehouse at the production site is the final step of the receipt procedure.

   See Inbound and outbound procedures for information about warehousing order procedures and Purchase order procedure for information about purchase order handling.