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<ManualTopic ID="/baanerp/ti/onlinemanual/000462" xml:lang="en">
   <Header>
      <Title>To execute subcontracted operations (subcontractor’s side)</Title>
      <Keyword type="header" order="d1e2069205">
         <Level1>To execute subcontracted operations</Level1>
      </Keyword>
      <Keyword type="header" order="d1e2069208">
         <Level1>Subcontracting</Level1>
         <Level2>subcontractor's side</Level2>
      </Keyword>
   </Header>
   <AimSection ID="execute_subcontracting">
      <Paragraph>Production orders executed for the manufacturer are indicated as
		"subcontracting" production orders. It is possible to receive materials owned
		by the manufacturer for these orders. Those items are stored against a certain
		value using the current valuation logic. The items can be issued to a
		subcontracting production order. The actual costs of those items are zero when
		they are consumed in a production order. The WIP of a subcontracting production
		order is partially owned by the manufacturer, this value is visible to the
		user.</Paragraph>
      <Paragraph>This topic describes how a subcontractor can handle an order
		from a manufacturer to execute one or more operations.</Paragraph>
   </AimSection>
   <Note>
      <SectionTitle>Note</SectionTitle>
      <Paragraph>For the subcontractor, the procedure for <Link href="/baanerp/ti/glossary/glossary#000412" role="glossary">item subcontracting</Link> is the same as the procedure for <Link href="/baanerp/ti/glossary/glossary#000411" role="glossary">operation subcontracting</Link>.</Paragraph>
   </Note>
   <ProcedureSection>
      <SectionTitle>Subcontracting procedure</SectionTitle>
      <Steps>
         <Step>
            <StepTitle>Create sales order</StepTitle>
            <Paragraph>Based on the subcontracting purchase order that the
			 manufacturer sent you, you must create a sales order in the <GUIRef href="/baanerp/td/sls/tdsls4100m000" role="session">Sales Orders (tdsls4100m000)</GUIRef> session.</Paragraph>
            <Paragraph>View the sales order in the <GUIRef href="/baanerp/td/sls/tdsls4100m900" role="session">Sales Order - Lines (tdsls4100m900)</GUIRef> session. The order line displays the completed
			 subassembly that you send to the manufacturer after executing the operations.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Supply lines and supply orders</StepTitle>
            <Paragraph>After a sales order is created, you can view the supply
			 lines, in the <GUIRef href="/baanerp/td/sls/tdsls4100m900" role="session">Sales Order - Lines (tdsls4100m900)</GUIRef> session or the <Link href="/baanerp/td/sls/tdsls4116m000" role="session">Sales Order Material Supply Lines (tdsls4116m000)</Link> session. Supply lines
			 represent the materials and subassembly that must be shipped from the
			 manufacturer to the subcontractor</Paragraph>
         </Step>
         <Step>
            <StepTitle>Create production order</StepTitle>
            <Paragraph>To execute the subcontracted operations, you need a
			 production order. Create a production order manually in <GUIRef href="/baanerp/ti/sfc" role="module">Shop Floor Control</GUIRef>, or
			 create a <Link href="/baanerp/cp/glossary/glossary#000047" role="glossary">planned production order</Link> in <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef>, and
			 transfer it to <GUIRef href="/baanerp/ti/sfc" role="module">Shop Floor Control</GUIRef>.</Paragraph>
            <Paragraph>For planned production orders in <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef>, you can
			 view the production order operations in the <Link href="/baanerp/cp/rrp/cprrp2100m000" role="session">Capacity Use by Planned Order</Link> session. If
			 applicable, information about <Link href="/baanerp/ti/glossary/glossary#000000000000026" role="glossary">subassemblies</Link> is indicated on the
			 operation line.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Release a production order</StepTitle>
            <Paragraph>Release the production order in <GUIRef href="/baanerp/ti/sfc" role="module">Shop Floor Control</GUIRef>.</Paragraph>
            <List>
               <ListIntro>In the <GUIRef href="/baanerp/ti/sfc/tisfc0101m100" role="session">Production Order (tisfc0101m100)</GUIRef> session, on the <GUIRef href="/baanerp/ti/cst/ticst0101m000" role="session">Estimated Materials (ticst0101m000)</GUIRef> tab, click <GUIRef href="/baanerp/ti/cst/ticst0101m000#show.subassembly" role="command">Show Subassembly</GUIRef> to view the subassemblies included
				in the estimated materials:</ListIntro>
               <ListItem>A positive quantity is displayed for the subcontracted
				operation.</ListItem>
               <ListItem>For the subassembly that is sent back to the manufacturer,
				a negative quantity is displayed for the subcontracted operation.</ListItem>
            </List>
         </Step>
         <Step>
            <StepTitle>Receive subassemblies and components from
			 manufacturer</StepTitle>
            <Paragraph>The manufacturer sends you the subassemblies and
			 material.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Report operations completed</StepTitle>
            <Paragraph>In the <GUIRef href="/baanerp/ti/sfc/tisfc0130m000" role="session">Report Operations Completed (tisfc0130m000)</GUIRef> session, complete the operations you
			 executed. If you defined a <Link href="/baanerp/ti/glossary/glossary#WIPWareho_ti" role="glossary">shop floor warehouse</Link>, the subassembly is automatically
			 received in the shop floor warehouse. Without shop floor warehouse, the
			 subassembly is received in the warehouse defined in the <GUIRef href="/baanerp/tc/ibd/tcibd2500m000" role="session">Items - Ordering (tcibd2500m000)</GUIRef> session.</Paragraph>
            <Paragraph>In the <GUIRef href="/baanerp/ti/cst/ticst0101m100" role="session">Material to Issue for Production Orders (ticst0101m100)</GUIRef> session, you can check whether
			 the subassembly is issued. In the <GUIRef href="/baanerp/wh/wmd/whwmd2519m000" role="session">Allocated-to Inventory (whwmd2519m000)</GUIRef> session, you can check in which warehouse
			 the subassembly is received.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Report production order completed</StepTitle>
            <Paragraph>Report the production order as completed in the <GUIRef href="/baanerp/ti/sfc/tisfc0520m000" role="session">Report Orders Completed (tisfc0520m000)</GUIRef> details session.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Transfer subassemblies</StepTitle>
            <Paragraph>To ship the subassembly from the shop floor or the <Link href="/baanerp/ti/glossary/glossary#WIPWareho_ti" role="glossary">shop floor warehouse</Link> to the subassembly warehouse, carry
			 out the transfer order.</Paragraph>
            <ProcedureList>
               <ListItem>In the <GUIRef href="/baanerp/ti/cst/ticst0101m100" role="session">Material to Issue for Production Orders (ticst0101m100)</GUIRef> session, select the subassembly
				that must be sent to the subassembly warehouse. This material line has a
				negative quantity. In the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu, click <GUIRef href="/baanerp/ti/cst/ticst0101m100#timfc0101m000" role="command">Production Warehouse Orders</GUIRef> to start the <GUIRef href="/baanerp/ti/mfc/timfc0101m000" role="session">Production Warehouse Orders (timfc0101m000)</GUIRef> session.</ListItem>
               <ListItem>Select the transfer order with transaction type <GUIRef href="/baanerp/tc/domains/inh.ittp#issue" role="option">Issue</GUIRef>,
				and click <GUIRef href="/baanerp/ti/mfc/timfc0101m000#wh.status.overview" role="command">Warehouse Order - Status Overview</GUIRef>.</ListItem>
               <ListItem>In the <GUIRef href="/baanerp/wh/inh/whinh2129m000" role="session">Outbound Line Status Overview (whinh2129m000)</GUIRef> session, carry out the defined
				activities for the <Link href="/baanerp/wh/glossary/glossary#000407" role="glossary">outbound-order line</Link>.</ListItem>
            </ProcedureList>
         </Step>
         <Step>
            <StepTitle>Transfer completed subassembly</StepTitle>
            <Paragraph>After you completed the subcontracted operations, you must
			 return the subassemblies to the manufacturer. To transfer the completed
			 subassembly, you must handle the sales order. Note that the name of the
			 subassembly you send back to the manufacturer differs from the name of the
			 subassembly you received from the manufacturer.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Receive purchase order in subassembly warehouse</StepTitle>
            <Paragraph>After subcontracting, the subcontractor sends back the
			 subassemblies. To receive the subassemblies into the subassembly warehouse, you
			 must handle the purchase order. Note that the name of the subassembly sent back
			 by the subcontractor differs from the name of the subassembly you sent to the
			 subcontractor.</Paragraph>
            <ProcedureList>
               <ListIntro>Complete the following steps:</ListIntro>
               <ListItem>In the <GUIRef href="/baanerp/td/sls/tdsls4100m900" role="session">Sales Order - Lines (tdsls4100m900)</GUIRef> session, select the sales order line of the completed
				subassembly, and click <GUIRef href="/baanerp/td/sls/tdsls4101m000#exec.user.1" role="command">Status</GUIRef>.</ListItem>
               <ListItem>From the <GUIRef href="/baanerp/td/sls/tdsls4534s000" role="session">Sales Order Line Status (tdsls4534s000)</GUIRef> session, handle the sales order according to
				the defined sales order procedure. For more information about sales order
				handling, refer to <Link href="/baanerp/td/onlinemanual/000407" role="manual">Flexible sales order processing</Link> and <Link href="/baanerp/td/onlinemanual/000062" role="manual">Overview of sales order handling</Link>.</ListItem>
            </ProcedureList>
         </Step>
         <Step>
            <StepTitle>Close production order</StepTitle>
            <Paragraph>Close the production order in the <GUIRef href="/baanerp/ti/cst/ticst0201m000" role="session">Close Production Orders (ticst0201m000)</GUIRef> session.</Paragraph>
         </Step>
      </Steps>
   </ProcedureSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000450" role="manual">Overview of subcontracting</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000461" role="manual">To set up operation subcontracting (subcontractor’s side)</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000462" role="manual">To execute subcontracted operations (subcontractor’s side)</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>