PURCHASE SUBCONTRACT

 

 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

 

 

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)

 

 

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

 

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

 Need Subcontract = Select the boolean

 

 

Please find the available Stock in Stock Location for all the Bill of Materials and Product that is to be Purchased or Manufactured through Purchase Subcontracting

 

 

 Please find the Available Stock in Subcontract Location

 

 

 Create a Purchase Order –> enable the Subcontract Boolean (refer screenshot) for the Finished Product with the respective Subcontractor Partner (vendor)

 

 

 Confirm the Purchase Order to create the Receipts which displays both Finished Product and its respective Bill of Materials (Raw Materials for Subcontractor) 

 

 

 Please find the Subcontract Raw Materials View in Purchase Order Receipts 

• Raw Material Product = This Field displays the Products that is created as the Bill of Materials for the Purchased Product
• BoM Quantity = This Field displays the Produce Quantity of the Bill of Materials based on the Purchased Product
• Required Quantity = Required Quantity is calculated based on the purchase quantity of the purchased product and BoM Quantity
• Process Quantity = Process Quantity is calculated based on the quantity that is to be processed in Receipts and BoM Quantity. Also it will updated by clicking on the “Update Raw Materials” button in Receipts Form.
• UoM = It is nothing but the Products Unit of Measure
• Done Quantity = Done Quantity is same as Process Quantity

 

 

 Process the Quantity of the Purchased Product partially in order to check the Backorder Flow and the stock updation of Subcontracted Raw Materials 

 

 

 Click on ‘Validate’ button to process the Receipts 

•  ‘Process Quantity’ and ‘Done Quantity’ are updated based on the processed quantity and BoM quantity by clicking on the “Update Raw Materials” button
• Lot / Serial Number for the Products has to be updated manually
• If the Stock is not available in Subcontract Location for respective Subcontracted Raw Materials, the below Warning would pop up while validating the receipts

 

 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

 

 

 Please find the Current Available Stock in Subcontract Location 

 

 

 We can also process the delivery of Raw Materials through Delivery Orders by enabling the ‘Subcontract’ Boolean and clicking the ‘Update’ button

 

 

We cannot validate the receipts without updating the ‘Done Quantity’ of the Raw Materials nor without choosing the Lot / Serial Numbers for the Raw Material Products.

 The Below Warning will be popped up for the same

 

We cannot validate the receipts, if the quantity of Raw Material Products is more or less than the Process Quantity.

 The Below Warning will be popped up for the same

•  On click of ‘Update Raw Materials’ Button in Receipts form, ‘Process Quantity’ is calculated based on the quantity that is to be processed in Receipts and BoM Quantity.
• Also ‘Done Quantity’ is same as the Process Quantity

 

Click on ‘Create Backorder’ button, to create the Receipts for pending purchase quantity of products in BOM

 ‘Required Quantity’ will be calculated d on remaining purchase quantity and BoM quantity in ‘Subcontract Raw Materials’ tab

 

 

 Backorder is created for the Completed Purchase Receipts and Required Quantities are updated

 Find the Reduced Stock in Subcontract Location for the Bill of Materials 

 

 

 Find the Available Stock for the Purchased / Subcontracted Product in Stock Location after successful receipt