Module

Subcontracting

Purpose

The Subcontracting area describes how BE-terna Manufacturing supports collaboration with subcontractors in the production process. This includes component location defaults for subcontracted work, creation of subcontracting purchase orders from production orders, transfer of item descriptions into purchase lines, and navigation between production orders, purchase orders, and purchase receipts.

Business Value

  • Components for subcontracted operations can take their location from the work center or work center group.
  • Subcontracting purchase orders can be calculated and created from released production orders.
  • Description and Description 2 from the item can be transferred into subcontracting purchase order lines.
  • Users can open related purchasing and production documents directly from their working context.
  • The detail topics Prices and Component Provision are handled as separate child pages.

Transfer Component Location from the Work Center

Usually, location codes for production components are suggested from item data, stockkeeping units, or manufacturing setup. For subcontracted production, a different location can be useful, such as a subcontractor location. BE-terna Manufacturing can transfer the location code for components from the work center when a subcontractor vendor is assigned.

Prepare the Work Center

  1. Open Work Centers through search.

Open work centers from search Click to enlarge

  1. Open the work center that represents the subcontracting operation.
  2. Make sure a Subcontractor No. is assigned.
  3. Maintain the component location.

Maintain component location on the work center Click to enlarge

Prepare Item, Routing, and BOM

  1. Make sure the item routing contains an operation in the configured work center.
  2. Maintain a Routing Link Code on the operation.

Routing with subcontracting operation and routing link code Click to enlarge

  1. Make sure at least one component in the production BOM is linked with the same routing link code.

Production BOM with routing link code on the component Click to enlarge

Refresh the Production Order

  1. Create or open the production order.
  2. Fill the header fields as usual.
  3. Choose Refresh Production Order.

Refresh production order with subcontracting operation Click to enlarge

During production order calculation, the system checks whether a routing line contains the configured work center and whether components are assigned through the matching routing link code. If so, the location code from the work center is transferred into the matching components.

Transferred location code in production order components Click to enlarge

Business Central represents subcontracting as capacity in the production process. A work center is linked to a vendor and used as an operation in the routing. After refreshing and releasing the production order, the subcontracting worksheet can be calculated. From there, the purchase order for the subcontractor is created.

BE-terna Manufacturing adds direct navigation between production order, purchase order, and purchase receipt so that users can review the subcontracting status faster.

Prepare Master Data

  1. Open the work center list.

Open work center list Click to enlarge

  1. Create a work center with a subcontractor number.

Work center with subcontractor number Click to enlarge

  1. Open the routing list.

Open routing list Click to enlarge

  1. Create a routing that contains the new work center.

Routing with subcontracting operation Click to enlarge

  1. Assign the routing to the item.

Assign routing to the item Click to enlarge

Create and Release the Production Order

  1. Create a production order where the item is used.

Create production order for subcontracting Click to enlarge

  1. Fill the mandatory fields.

Fill production order fields Click to enlarge

  1. Refresh the production order.

Refresh production order Click to enlarge

  1. Change the status to Released.

Released production order for subcontracting Click to enlarge

Only released production orders can be purchased as subcontracting.

Calculate the Subcontracting Worksheet and Create the Purchase Order

  1. Open the Subcontracting Worksheet.
  2. Choose Calculate Subcontracts.

Calculate subcontracting worksheet Click to enlarge

The released production order appears as a line in the subcontracting worksheet.

Subcontracting worksheet with production order line Click to enlarge

  1. Choose Carry Out Action Message for the subcontracting worksheet line.

Carry out action message for subcontracting Click to enlarge

Confirm carry out action message Click to enlarge

A new purchase order is created.

  1. Open the new purchase order.

Open created subcontracting purchase order Click to enlarge

In the purchase order line, use Line > Production Order to open the originating production order. The action is visible only when the purchase line is related to a production order.

Open production order from purchase order line Click to enlarge

In the released production order, Line > Purchase Order shows related orders and receipts. Use these actions to open the connected document directly.

Open related purchase orders and receipts from production order Click to enlarge

Transfer Item Description into Subcontracting Purchase Lines

In the standard flow, subcontracting purchase order lines often receive the operation description. If the subcontractor needs the exact item description instead, BE-terna Manufacturing can transfer Description and Description 2 from the item into the subcontracting purchase line.

Enable the Setup

  1. Open Manufacturing Setup.

Open Manufacturing Setup Click to enlarge

  1. Enable Transfer Item Description into Subcontracting Purchase Order Line.

Enable transfer of item description into subcontracting purchase lines Click to enlarge

Check the Functionality

  1. Create a released production order for an item with a subcontracting work step.
  2. Open Subcontracting Worksheets.
  3. Choose Process > Calculate Subcontracts.

Calculate subcontracts in the worksheet Click to enlarge

  1. Select the released production order or set the required filters.
  2. Confirm with OK.

Filters for Calculate Subcontracts Click to enlarge

  1. Select the created line.
  2. Choose Process > Carry Out Action Message.

Carry out action message in the subcontracting worksheet Click to enlarge

  1. Adjust filters if needed.
  2. Confirm with OK.

Confirm carry out action message Click to enlarge

The created purchase order contains Description and Description 2 from the item in the purchase line.

Transferred item description in the subcontracting purchase order Click to enlarge

Result

After setup, you can control subcontracting from the production order through to the purchase order in a traceable way. Component locations can come from the subcontracting work center, purchase lines can contain item descriptions where needed, and related purchasing and production documents can be opened directly.

Pages

Page Prices Maintain subcontracting prices for vendors, work centers, items, quantity tiers, and currencies. Open Page Component Provision Link subcontracting purchase orders with transfer orders for components. Open

Links

Further Information

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