MRP Subcontract
Step 1 : Configuration : Subcontract Location Creation. Go to ‘Location’ Master Under configuration menu in Inventory module.
Create a new Location for subcontracting vendors respectively with the following parameters Location Name = Subcontract Location
Parent Location = Partner Location
Location Type = Vendor Location
Note: Subcontract location has to be created per Vendor & company
Configuration : Subcontract Location Assigning to Vendor
Go to ‘Vendor’ Master Under Purchase menu in Purchase module:
Create a new Vendor (if not already available) & map the newly created subcontracting location (per vendor) in the new field ‘Subcontract Location’ respectively.
Note: Repeat this step for all subcontracting vendor(s)
Configuration : Subcontract ‘Operation Type’ Creation
Go to ‘Operation Types’ Master under ‘Configuration’ menu in ‘Inventory’ module
Create a new Operation type respectively with the following parameters
Operation Types Name = Subcontract Location
Reference Sequence = Partner Location
Configuration : Work Centers Creation
Go to ‘Work Centers’ Master Under ‘Master Data’ menu in Manufacturing module:
Create a new ‘Work Centers’ with the below parameter to be set .
Configuration : Routings Creation
Go to ‘Routings’ Master Under ‘Master Data’ menu in Manufacturing module :
Create a new ‘Routings’ with the below parameter to be set.
Configuration : Bill of Materials Creation with Subcontract
Go to ‘Bill of Material’ Master under ‘Master data’ menu in ‘Manufacturing’ module :
Create a new ‘Bill of Materials’ with the below parameter to be set :
Work Flow of MRP Subcontracting Module
Please find the available Stock in Stock Location for all the Bill of Materials and Product that is to be Manufactured and Purchased through MRP Subcontracting
Please find the Available Stock in Subcontract Location
Create a Manufacturing Order –> Enable the Subcontract Boolean (refer screenshot) and select the respective Subcontractor Partner (vendor)
Based on the Selected Vendor, the Raw Materials and Finished Products Location will be updated in Miscellaneous Tab.
Based on the Selected Product, the Bill of Materials and Routings will get updated automatically.
Clicking on ‘Create Workorders’ button, Work order will not be created, if Stock is not available in Subcontract Location.
The Below Warning will be popped up for the same.
With the Newly created Subcontract Operation Type we can move the stock to Subcontract Location (respective vendor) from Stock Location.
In order to deliver the Raw Materials to Subcontract Location, choose the Vendor where Subcontract location will be set as default Destination Location automatically.
BoM Products for respective finished/subcontracted parent product will be present next to ‘Operations’ tab where you will have to choose the Bill of Material Product and update the Quantity that is to be delivered.
Clicking on the “Update” button, the Bill of Materials for the Selected Product and their Quantities will be displayed in Operations Tab.
Once after the updation of Raw Materials, choose the Lot / Serial numbers for the Products and Validate the same to move the Stock to Subcontract Location from Stock Location
We cannot create the Workorder if only Partial Stock is available for the Raw Materials in Subcontract Location.
The Below Warning will be popped up for the same
We can also process the delivery of Raw Materials through Delivery Orders by enabling the ‘Subcontract’ Boolean and clicking the ‘Update’ button.
If the Raw Materials are not reserved in Manufacturing Order, then Workorder cannot be created.
The Below Warning will be popped up for the same
Clicking on ‘Create Workorders’ button, Work order will be created for the same and Stock will be reserved for the Raw Materials.
The Below Warning will be popped up for the same
Work order will be created along with the Raw Materials.
On click of ‘Start Working’ Button in Work Order form, Purchase Order will be automatically created in Manufacturing screen along with the Product details.
Please find the Purchase Order Menu in Manufacturing Order
Purchase Order is created with the Source as Manufacturing Order. Also Unit Price and Taxes alone will be editable in Purchase Order Screen.
Confirm the Purchase Order to create the Receipts for the Manufactured Product.
Clicking on the Validate button in Receipts, the below mentioned warning will be popped up as Workorder is not completed for the Manufacturing Order.
Before completing the Workorder, Kindly choose the Lot / Serial Number for the Raw Materials
The Below Warning will be popped up for the same
After selecting the Lot / Serial Numbers for the Raw Materials, We can complete the Work Order.
Kindly find the Completed Work Order Screen
Once after the completion of Work Orders, Consumed Quantities will be updated in Manufacturing Order
Once after the completion of Work Orders, We cannot validate the purchase receipts as stock movements will not be processed.
The Below Warning will be popped up, if purchase receipts are validated.
Clicking on ‘Mark as Done’ button in Manufacturing screen, Manufacturing order will be completed and stock movements will be processed for all the Raw materials and Finished Products.
Please find the Validated Raw Materials.
Please find the Validated Finished Products
Clicking on ‘Validate’ button in Purchase Receipts, Stock movements be processed for the Finished Product from Subcontract Location to Stock Location.
Please find the Reduced Stock in Subcontract Location
Please find the Available Stock in Stock Location for the Finished Product.
Same Procedure of Work Order Concept will be followed for Produce Concept through MRP Subcontract.
