Process Documentation

Subcontracting

Business ByDesign
Service Pack 08
Process Documentation Subcontracting

Table of contents

1 Introduction.......................................................................................................................2
1.1 Symbols..................................................................................................................................................... 2

2 Subcontracting.................................................................................................................2
2.1 Create Sales Order.................................................................................................................................... 2

2.2 Execute MRP run for Sales Order............................................................................................................ 2

Objective: Production and purchase proposals for all BOM levels............................................................2

2.3 Create Purchase Order for Product......................................................................................................... 5

2.4 Service Order for Subcontractor1............................................................................................................ 6

2.5 Release Production Proposal for Product..............................................................................................6

2.6 Finish Service and Production task......................................................................................................... 7

2.7 Service Order for Subcontractor2............................................................................................................ 7

2.8 Release Production Proposal.................................................................................................................. 7

2.9 Service und Produktionsaufgabe abschließen.......................................................................................7

2.10 Finish Sales Order............................................................................................................................... 7

1 Introduction

1.1 Symbols
Symbol Meaning
Hint

Attention

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Process Documentation Subcontracting

Explanation

2 Subcontracting

2.1 Create Sales Order

Create a Sales Order for end-product following the common process steps.
Workcenter Sales Orders -> New Sales Order.

2.2 Execute MRP run for Sales Order

Objective: Production and purchase proposals for all BOM levels

Got to Workcenter Supply Planning, view Products.

 select the line with the end-product of the Sales Order

 Open Product Planning Details

The Product Planning Details screen of the product opens. Please execute a multi-
level MRP-run for the end-product.
Run Planning (1) -> Multi BOM Level (in the Popup leave all fields blank and confirm
by selecting OK)

2 1

According to the production model, the production and purchase proposals are created
by the system across all bill of material levels. Save the planning run by selecting Save
(2).
To get an overview of the demand that was planned for the Sales Order, select the line

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Process Documentation Subcontracting

with the Sales Order and open the Material Flow (3) for it.
A demand overview opens:

You can open the product planning details of the several materials driectly from this
view through selecting the button Open Product Planning Details. Now you are
directly jumping into the supply planning of the respective material.

Release the purchase or production proposal in the supply planning screen of the
product and save it.

If you have released a purchase proposal, then please proceed with chapter 2.3
Create Purchase Order for Product. If you have released a production proposa
proceed with .

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2.3 Create Purchase Order for Product

Go to Workcenter Purchase Requests and Orders, view Purchase Requests. Select
the purchase request for the product and click on New Purchase Order.

The following screen is shown:

As source of supply enter the supplier of the material which is directly delivered to
Subcontractor1 for further processing. Therefore, the address of Subcontractor1 is
maintained in the address fields under Deliver to. Save the Purchase Order and send it
to the supplier by clicking on the button Order. The Purchase Order XX is sent to the
supplier.
In parallel order the Service delivery of Subcontractor1, who directly receives the
necessary input-material from the supplier, see .

As soon as the supplier has delivered the material to Subcontractor1 and you received
the invoice of the supplier, transfer the amount of material (physically located at
Subcontractor1) to the virtual storage location of Subcontractor1 in the system and
hence close the Purchase Order. The Purchase Order can be invoiced now the system.

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2.4 Service Order for Subcontractor1

Objective: Creation of Service Order for Subcontractor1
The service of Subcontractor1 is ordered via a service order.
Go to Workcenter Purchase Requests and Orders and create a new Purchase Order
for a Service.

Select the Supplier ID of Subcontractor1. Change the Item Type to Service and select
the corresponding product ID of the maintained service. In the field Quantity, enter the
demand planned by the system. This demand can be found in the production proposal
of the product that is shown in the material flow described in chapter 2.2.
The base unit of measurement of a service always is a time unit. Because the system
plans the production of the end-product based on a virtual in-house production, the
system generates a production proposal for the components that are produced by the
subcontractors. The unit of measurement in the production proposals is “each” in this
example. Therefore you need an unit conversion in the product master data for “each”
and “Hur”.

Because Subcontractor1 sends the components directly to Subcontractor2, select the

virtual storage location of Subcontractor2 as shipt-to location and as Deliver to address,
the address of Subcontractor2. Save and order the service. With this service order the
processing of the components by Subcontractor1 is triggered.

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2.5 Release Production Proposal for Product

The production proposal fort he product is released in Workcenter Supply Planning.

2.6 Finish Service and Production task

You receive the delivery note and the invoice from Subcontractor1. The Service Order is
confirmed in Workcenter Goods and Services Receipts.
The production task is confirmed in detail in Workcenter Production Control, view Task
Control. Enter the corresponding quantity and the virtual storage location of
Subcontractor2 as ship-to location.

In a next Stepp create a Service Order for the Service delivery of Subcontractor2.
Please follow the steps described in Chapter 2.7 Service Order for Subcontractor2.

2.7 Service Order for Subcontractor2

Objective: Creation of Service Order for Subcontractor1
Go to Workcenter Purchase Requests and Orders and create a new Purchase Order
for the Service. Please compare chapter 2.4 Service Order for Subcontractor1.

Select the Supplier ID of Subcontractor2. Change the Item Type to Service and select
the corresponding product ID of the maintained service. In the field Quantity, enter the
demand planned by the system. This demand can be found in the production proposal
of the product that is shown in the material flow described in chapter 2.2.
Subcontractor2 sends the components back to Company X. Therefore select the
receiving storage location of Company X. Save and order the service. With this service
order the processing of the components by Subcontractor2 is triggered.
Subcontractor2 sends the components back to Company X where the can be used for
the further production of the end-product.

2.8 Release Production Proposal

The production proposal for the product which is produced in-house is released in
Workcenter Supply Planning.

2.9 Service und Produktionsaufgabe abschließen

You receive the delivery note and the invoice from Subcontractor2. The Service Order is
confirmed in Workcenter Goods and Services Receipts.
The production task is confirmed in detail in Workcenter Production Control, view Task
Control. Enter the corresponding quantity and the receiving storage location of comonay
X as ship-to location.

2.10 Finish Sales Order

Production of all in-house produced components/products
Proceed with the following steps as usual. Produce all necessary components and the
end-product itself and all the subsequent steps to close the Sales Order.

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