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<ManualTopic ID="/baanerp/ti/onlinemanual/000081" xml:lang="en">
   <Header>
      <Title>Operation subcontracting without material flow support</Title>
   </Header>
   <AimSection>
      <Paragraph>The simplest way of subcontracting in LN is to create a
		subcontracting purchase order to record the operations that are outsourced to a
		subcontractor. This means that you purchase labour from a subcontractor. For
		this type of subcontracting, no material is supplied to the
		subcontractor.</Paragraph>
   </AimSection>
   <GeneralSection>
      <SectionTitle>Setup</SectionTitle>
      <List>
         <ListIntro>To start a subcontracting process <Emphasis>without</Emphasis> material supply, you must set up the following data:</ListIntro>
         <ListItemHead>
            <GUIRef href="/baanerp/tc/domains/kitm#subcontracting" role="option">Subcontracted Service</GUIRef> item</ListItemHead>
         <ListItem>In the <GUIRef href="/baanerp/tc/ibd/tcibd0501m000" role="session">Items - General (tcibd0501m000)</GUIRef> session, define an item with item type <GUIRef href="/baanerp/tc/domains/kitm#subcontracting" role="option">Subcontracted Service</GUIRef>. This is an administrative item that
		  represents the subcontracted work. The <GUIRef href="/baanerp/tc/domains/kitm#subcontracting" role="option">Subcontracted Service</GUIRef> item is displayed on the
		  subcontracting purchase order.</ListItem>
         <ListItemHead>Subcontracting work center</ListItemHead>
         <ListItem>Define a subcontracting work center in the <GUIRef href="/baanerp/ti/rou/tirou0101m000" role="session">Work Centers (tirou0101m000)</GUIRef> session. In the <GUIRef href="/baanerp/ti/rou/tirou1102m000" role="session">Routing Operations (tirou1102m000)</GUIRef> session, link the subcontracting work center to the
		  routing operation that you want to subcontract.</ListItem>
         <ListItemHead>Subcontracting rates</ListItemHead>
         <ListItem>In the <GUIRef href="/baanerp/ti/cpr/ticpr1160m000" role="session">Subcontracting Rates (ticpr1160m000)</GUIRef> session, define the subcontracting costs. In the <GUIRef href="/baanerp/ti/cpr/ticpr1160m000#ticpr160.item" role="manual">Subcontracting Item</GUIRef> field you must enter the <GUIRef href="/baanerp/tc/domains/kitm#subcontracting" role="option">Subcontracted Service</GUIRef> item. Note that you must define the
		  rate for the correct combination of <Link href="/baanerp/ti/glossary/glossary#PriCalCod_ti" role="glossary">price calculation code</Link> and subcontractor. If you want to
		  define an item-specific subcontracting rate, fill the <GUIRef href="/baanerp/ti/cpr/ticpr1160m000#ticpr160.pitm" role="manual">Parent item</GUIRef> field.</ListItem>
      </List>
   </GeneralSection>
   <ProcedureSection>
      <SectionTitle>Procedure</SectionTitle>
      <Steps>
         <Step>
            <StepTitle>Release production order</StepTitle>
            <Paragraph>Create and release a production order for the item with
			 subcontracted operations. On the item's routing, subcontracting work centers
			 are defined.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Generate subcontracting purchase order</StepTitle>
            <Paragraph>In the <GUIRef href="/baanerp/ti/sfc/tisfc2250m000" role="session">Generate Subcontracting Purchase Orders (tisfc2250m000)</GUIRef> session, generate a
			 subcontracting purchase order. The number of the subcontracting purchase order
			 is displayed on the subcontracted operation in the production
			 planning.</Paragraph>
            <Paragraph>If more than one operation is subcontracted, with more than
			 one subcontractor involved, a purchase order is generated for every
			 subcontractor.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Handle purchase order</StepTitle>
            <Paragraph>Handle the purchase order according to the defined purchase
			 order procedure. For more information, refer to <Link href="/baanerp/td/onlinemanual/000406" role="manual">Flexible purchase order processing</Link> and <Link href="/baanerp/td/onlinemanual/000007" role="manual">Overview of purchase order handling</Link>.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Handle warehouse order</StepTitle>
            <Paragraph>Carry out the warehouse order procedure. For more
			 information, refer to <Link href="/baanerp/wh/onlinemanual/000008" role="manual">To handle warehousing orders</Link>.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Complete operations</StepTitle>
            <Paragraph>Complete the subcontracted operations, and, if applicable,
			 further operations.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Process purchase invoice</StepTitle>
            <Paragraph>Process the purchase invoice. For more information, refer to <Link href="/baanerp/tf/onlinemanual/000104" role="manual">To process purchase invoices</Link>.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Close production order</StepTitle>
            <Paragraph>Close the production order.</Paragraph>
         </Step>
      </Steps>
   </ProcedureSection>
   <GeneralSection>
      <SectionTitle>Ad hoc subcontracting</SectionTitle>
      <Paragraph>If you had not planned to subcontract one or more operations,
		and consequently no subcontracting work centers are defined in the routing, use
		the <Link href="/baanerp/ti/sfc/tisfc2210m000" role="session">
            <GUIRef href="/baanerp/ti/sfc/tisfc2210m000" role="session">Subcontract Operations (tisfc2210m000)</GUIRef>
         </Link> session to replace
		an existing work center with a subcontracting work center on the operations
		that you want to subcontract.</Paragraph>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000450" role="manual">Overview of subcontracting</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>