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<ManualTopic ID="/baanerp/ti/onlinemanual/000453" xml:lang="en">
   <Header>
      <Title>To subcontract operations (manufacturer's side)</Title>
      <Keyword type="header" order="d1e2391041">
         <Level1>Subcontracting</Level1>
         <Level2>operation subcontracting</Level2>
      </Keyword>
      <Keyword type="header" order="d1e2391046">
         <Level1>Operation subcontracting</Level1>
         <Level2>manufacturer's side</Level2>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>Complete the following steps to subcontract one or more
		operations. Together with the subassemblies, material is sent to the
		subcontractor. The data setup for subcontracting with material supply is
		described in <Link href="/baanerp/ti/onlinemanual/000452" role="manual">To set up operation subcontracting (manufacturer's side)</Link>.</Paragraph>
   </AimSection>
   <ProcedureSection>
      <SectionTitle>Subcontracting procedure</SectionTitle>
      <Steps>
         <Step>
            <StepTitle>Create production order</StepTitle>
            <Paragraph>For an item with one or more 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>
            <Paragraph>Use the <Link href="/baanerp/cp/rrp/cprrp2402m000" role="session">Print Subcontracting Forecast (cprrp2402m000)</Link> session to print a list of all
			 subassemblies that are planned to be received from the
			 subcontractor.</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>For the subassembly that is sent to the subcontractor, a
				negative quantity is displayed for the operation that precedes the
				subcontracting operation. A positive quantity is displayed for the
				subcontracted operation.</ListItem>
               <ListItem>For the subassembly that is received back from the
				subcontractor, a negative quantity is displayed for the subcontracted
				operation. A positive quantity is displayed for the operation that follows the
				subcontracted operation.</ListItem>
            </List>
         </Step>
         <Step>
            <StepTitle>Generate subcontracting purchase order</StepTitle>
            <Paragraph>A subcontracting purchase order is required to administrate
			 the subcontracting process.</Paragraph>
            <Paragraph>From the <GUIRef href="/baanerp/ti/sfc/tisfc0501m000" role="session">Production Orders (tisfc0501m000)</GUIRef> session, start the <Link href="/baanerp/ti/sfc/tisfc2250m000" role="session">Generate Subcontracting Purchase Orders (tisfc2250m000)</Link> session to generate a purchase order. If the <GUIRef href="/baanerp/ti/sfc/tisfc2250m000#check.prev.opno" role="manual">Previous Operation Must be Completed</GUIRef> check box in
			 this session is selected, you must first complete the operations that precede
			 the subcontracted operation before you can generate a purchase order.</Paragraph>
            <Paragraph>In the <GUIRef href="/baanerp/ti/sfc/tisfc2250m000" role="session">Generate Subcontracting Purchase Orders (tisfc2250m000)</GUIRef> session, enter a <Link href="/baanerp/td/glossary/glossary#000056" role="glossary">purchase order type</Link>. The <Link href="/baanerp/td/glossary/glossary#000129" role="glossary">activities</Link> linked to the purchase order type determine
			 the handling of the subcontracting purchase order. For example, you can choose
			 to insert the <Link href="/baanerp/td/pur/tdpur4216m000" role="session">Generate Supply Orders for Subcontracting (tdpur4216m000)</Link> session, and select the <Link href="/baanerp/td/pur/tdpur0560m000#tdpur060.auto" role="formfield">Automatic</Link> check box, so that supply orders are
			 automatically generated.</Paragraph>
            <Paragraph>View the generated purchase order in the <GUIRef href="/baanerp/td/pur/tdpur4100m900" role="session">Purchase Order - Lines (tdpur4100m900)</GUIRef> session. The order line displays the subassembly
			 that you will receive from the subcontractor after subcontracting.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Supply lines and supply orders</StepTitle>
            <Paragraph>After a subcontracting purchase order is generated, you can
			 view the supply lines, in the <GUIRef href="/baanerp/td/pur/tdpur4100m900" role="session">Purchase Order - Lines (tdpur4100m900)</GUIRef> session or the <Link href="/baanerp/td/pur/tdpur4116m000" role="session">Purchase Order Material Supply Lines (tdpur4116m000)</Link> session. Supply lines represent the materials and subassembly that must be
			 shipped to the subcontractor</Paragraph>
            <Paragraph>Supply orders are used to ship the subassembly and material
			 from their warehouses at the manufacturer's site to the <Link href="/baanerp/wh/glossary/glossary#000467" role="glossary">administrative warehouse</Link>. If supply orders are not
			 created automatically (refer to step 3), run the <Link href="/baanerp/td/pur/tdpur4216m000" role="session">Generate Supply Orders for Subcontracting (tdpur4216m000)</Link> session. Note that the subassembly's <Link href="/baanerp/wh/glossary/glossary#000419" role="glossary">supply system</Link>, defined in the <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> session, must be <GUIRef href="/baanerp/tc/domains/sups#single" role="option">Order Controlled/Single</GUIRef>.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Approve subcontracting purchase order</StepTitle>
            <Paragraph>In the <GUIRef href="/baanerp/td/pur/tdpur4100m900" role="session">Purchase Order - Lines (tdpur4100m900)</GUIRef> session, click <GUIRef href="/baanerp/td/pur/tdpur4100m900#approve.order" role="command">Approve</GUIRef> to approve the subcontracting purchase
			 order. For more information, refer to <Link href="/baanerp/td/onlinemanual/000415" role="manual">Purchase order approval</Link>.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Report preceding operations completed</StepTitle>
            <Paragraph>In the <GUIRef href="/baanerp/ti/sfc/tisfc0130m000" role="session">Report Operations Completed (tisfc0130m000)</GUIRef> session, complete the operations preceding
			 the subcontracted operations. 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">Inventory by Specification (whwmd2519m000)</GUIRef> session, you can check in which warehouse
			 the subassembly is received.</Paragraph>
            <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>Send subassemblies and material to subcontractor</StepTitle>
            <Paragraph>The manufacturer must send subassemblies and material to the
			 subcontractor. In ERP Enterprise,
			 the subassemblies and material are sent to the <Link href="/baanerp/wh/glossary/glossary#000467" role="glossary">administrative warehouse</Link> using an outbound procedure. To
			 do so, you must handle the subassembly's and material's supply
			 orders.</Paragraph>
            <ProcedureList>
               <ListItem>In the <GUIRef href="/baanerp/td/pur/tdpur4100m900" role="session">Purchase Order - Lines (tdpur4100m900)</GUIRef> session or the <GUIRef href="/baanerp/td/pur/tdpur4116m000" role="session">Purchase Order Material Supply Lines (tdpur4116m000)</GUIRef> session, select the subassembly
				and material and click <GUIRef href="/baanerp/td/pur/tdpur4116m000#zoom.to.supply.order" role="command">Supply Order...</GUIRef>.</ListItem>
               <ListItem>In the <GUIRef href="/baanerp/wh/inh/whinh2100m100" role="session">Warehousing Order (whinh2100m100)</GUIRef> session, generate an advice.</ListItem>
               <ListItem>If the orders were not already handled automatically, in
				the <GUIRef href="/baanerp/wh/inh/whinh2100m100" role="session">Warehousing Order (whinh2100m100)</GUIRef> session, select the outbound line and click <GUIRef href="/baanerp/wh/inh/whinh2120m000#start.status.overview" role="command">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 such as generating and releasing the outbound advice and confirming
				the shipment.</ListItem>
            </ProcedureList>
            <ProcedureList>
               <ListIntro>In some cases, material for subcontracting activities is
				directly sent by the supplier to the subcontractor. In that case, complete the
				following steps:</ListIntro>
               <ListItem>In the <GUIRef href="/baanerp/td/pur/tdpur4100m900" role="session">Purchase Order - Lines (tdpur4100m900)</GUIRef> session or the <GUIRef href="/baanerp/td/pur/tdpur4116m000" role="session">Purchase Order Material Supply Lines (tdpur4116m000)</GUIRef> session, select the subassembly
				and material and click <GUIRef href="/baanerp/td/pur/tdpur4116m000#zoom.to.supply.order" role="command">Supply Order...</GUIRef>. A new supply order is
				generated.</ListItem>
               <ListItem>Select the newly generate order line, and click <GUIRef href="/baanerp/td/pur/tdpur4100m900#approve.order" role="command">Approve</GUIRef>.</ListItem>
            </ProcedureList>
         </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/pur/tdpur4100m900" role="session">Purchase Order - Lines (tdpur4100m900)</GUIRef> session, select the purchase order line of the
				subassembly sent back by the subcontractor, and on the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate menu</Link>, click <GUIRef href="/baanerp/td/pur/tdpur4101m000#tdpur4534m000" role="manual">Purchase Order Line Status</GUIRef>.</ListItem>
               <ListItem>From the <GUIRef href="/baanerp/td/pur/tdpur4534m000" role="session">Purchase Order Line Status (tdpur4534m000)</GUIRef> session, handle the purchase order according to
				the defined purchase order procedure. For more information about purchase order
				handling, 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>.</ListItem>
            </ProcedureList>
            <Paragraph>Note that when the purchase order is received, ERP Enterprise automatically
			 reports the subcontracted operations as completed. If applicable, the
			 subassembly and the material that you sent with the subassembly are
			 backflushed.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Transfer from subassembly warehouse to shop floor warehouse
			 or the shop floor</StepTitle>
            <Paragraph>You may work further on the subassemblies that you received
			 from the subcontractor. Therefore, you must issue the subassemblies to the shop
			 floor. In the <GUIRef href="/baanerp/ti/cst/ticst0101m100" role="session">Material to Issue for Production Orders (ticst0101m100)</GUIRef> session, select the subassembly that was sent to you by the subcontractor,
			 which is the subassembly that has a positive quantity. Issue the subassembly to
			 the shop floor.</Paragraph>
            <Paragraph>If you use a shop floor warehouse, you must complete a
			 transfer order to ship the subassemblies from the subassembly warehouse to the
			 shop floor warehouse.</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 was sent to you by the subcontractor, which is the subassembly that has a
				positive quantity in the <GUIRef href="/baanerp/ti/cst/ticst0101m100#ticst001.issu" role="manual">To Issue</GUIRef> field.</ListItem>
               <ListItem>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 subassembly's <Emphasis>transfer</Emphasis> 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.</ListItem>
            </ProcedureList>
            <Paragraph>You can check in the <GUIRef href="/baanerp/wh/wmd/whwmd2519m000" role="session">Inventory by Specification (whwmd2519m000)</GUIRef> session whether the subassembly is allocated
			 inventory in the shop floor warehouse.</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, process the remaining operations
			 and report them as completed. You can post the end items immediately to
			 inventory.</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>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/000452" role="manual">To set up operation subcontracting (manufacturer's side)</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>