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<ManualTopic ID="/baanerp/ti/onlinemanual/000459" xml:lang="en">
   <Header>
      <Title>Item subcontracting - procedure</Title>
   </Header>
   <AimSection>
      <Paragraph>You can use item subcontracting to subcontract an item's entire
		production process. If you apply item subcontracting, <Emphasis>no</Emphasis> production order is created.</Paragraph>
      <Paragraph>For item subcontracting, perform the following
		steps:</Paragraph>
   </AimSection>
   <ProcedureSection>
      <Steps>
         <Step>
            <StepTitle>Create purchase order</StepTitle>
            <Paragraph>A purchase order is required to subcontract the production
			 of a specific item. You can create a purchase order in two ways:</Paragraph>
            <List>
               <ListItem>Manually in the <GUIRef href="/baanerp/td/pur/tdpur4100m000" role="session">Purchase Orders (tdpur4100m000)</GUIRef> session.</ListItem>
               <ListItem>
                  <Paragraph>By means of an <Link href="/baanerp/cp/glossary/glossary#000370" role="glossary">item order plan</Link>.</Paragraph>
                  <ProcedureList>
                     <ListItem>In the <GUIRef href="/baanerp/td/sls/tdsls4100m000" role="session">Sales Orders (tdsls4100m000)</GUIRef> session, create a sales order for the subcontracted
					 item that you have sold.</ListItem>
                     <ListItem>In the <GUIRef href="/baanerp/cp/rrp/cprrp0520m000" role="session">Item Order Plan (cprrp0520m000)</GUIRef> session, click <GUIRef href="/baanerp/cp/rrp/cprrp0520m000#cprrp1220m000" role="command">Generate Order Planning (Item)</GUIRef> to generate an <Link href="/baanerp/cp/glossary/glossary#000370" role="glossary">item order plan</Link>. If the demand exceeds the supply, a <Link href="/baanerp/cp/glossary/glossary#000048" role="glossary">planned purchase order</Link> is generated for the subcontracted
					 item. You can view the planned purchase order in the <GUIRef href="/baanerp/cp/rrp/cprrp1600m000" role="session">Planned Order (cprrp1600m000)</GUIRef> session.</ListItem>
                     <ListItem>In the <GUIRef href="/baanerp/cp/rrp/cprrp1600m000" role="session">Planned Order (cprrp1600m000)</GUIRef> session, select the planned purchase order, and click <GUIRef href="/baanerp/cp/rrp/cprrp1600m000#transfer.order.manually" role="command">Transfer</GUIRef>. The planned purchase order becomes a <Link href="/baanerp/wh/glossary/glossary#000000000000025" role="glossary">purchase order advice</Link>, which can be
					 viewed as a purchase order in the <GUIRef href="/baanerp/td/pur/tdpur4100m000" role="session">Purchase Orders (tdpur4100m000)</GUIRef> details session.</ListItem>
                  </ProcedureList>
               </ListItem>
            </List>
         </Step>
         <Step>
            <StepTitle>Handle purchase order and supply orders</StepTitle>
            <Paragraph>In the <GUIRef href="/baanerp/td/pur/tdpur4100m900" role="session">Purchase Order - Lines (tdpur4100m900)</GUIRef> session, you can view and maintain the purchase
			 order. Note that the <Link href="/baanerp/td/pur/tdpur4101m000#tdpur401.subc" role="formfield">Subcontracted</Link> check box in the <GUIRef href="/baanerp/td/pur/tdpur4101m000" role="session">Purchase Order Lines (tdpur4101m000)</GUIRef> session is selected. The <GUIRef href="/baanerp/td/sls/tdsls4101m000#material.supply.lines" role="command">Material Supply Lines</GUIRef> tab lists the materials that
			 are sent to the subcontractor. From the <GUIRef href="/baanerp/td/pur/tdpur4100m900" role="session">Purchase Order - Lines (tdpur4100m900)</GUIRef> session, carry out the following steps to handle
			 the purchase order, and receive the finished subcontracted items in your
			 warehouse:</Paragraph>
            <ProcedureList>
               <ListItem>Select the purchase order line, and click <GUIRef href="/baanerp/td/pur/tdpur4100m900#approve.order" role="command">Approve</GUIRef>.</ListItem>
               <ListItem>On the <GUIRef href="/baanerp/td/sls/tdsls4101m000#material.supply.lines" role="command">Material Supply Lines</GUIRef> tab, click <GUIRef href="/baanerp/td/pur/tdpur4116m000#zoom.to.supply.order" role="command">Supply Order...</GUIRef> to generate supply orders. The <Link href="/baanerp/td/pur/tdpur4116m000#tdpur416.ttaw" role="formfield">Transfer Type</Link> field indicates how material is shipped
				from the manufacturer to the subcontractor.</ListItem>
               <ListItem>In the header's <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu, click <GUIRef href="/baanerp/td/sls/tdsls4100m900#activities.ordertype" role="command">Activities</GUIRef> to check which activities must be done
				to handle the purchase order, and whether the activities are performed
				automatically.</ListItem>
               <ListItem>In the purchase order's header, click <GUIRef href="/baanerp/td/pur/tdpur4100m900#approve.order" role="command">Approve</GUIRef>.</ListItem>
               <ListItem>Check in the <Link href="/baanerp/td/pur/tdpur4116m000#tdpur416.sorn" role="formfield">Supply Order Number</Link> field whether supply orders are
				already generated. If not, select the material supply line, and click <GUIRef href="/baanerp/td/pur/tdpur4116m000#generate.supply.order" role="command">Generate Supply Order</GUIRef> in the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu. You can
				also use the <Link href="/baanerp/td/pur/tdpur4216m000" role="session">Generate Supply Orders for Subcontracting (tdpur4216m000)</Link> session.</ListItem>
               <ListItem>Select the material supply lines for which a supply order
				exist, and click <GUIRef href="/baanerp/td/pur/tdpur4116m000#zoom.to.supply.order" role="command">Supply Order...</GUIRef> in the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu. You can
				now handle the supply order.</ListItem>
               <ListItem>Select the purchase order line, and click <GUIRef href="/baanerp/td/pur/tdpur4101m000#tdpur4534m000" role="command">Purchase Order Line Status</GUIRef>. 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 so that the order is received in the
				warehouse. 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>
         </Step>
         <Step>
            <StepTitle>Handle sales order</StepTitle>
            <Paragraph>If you created a sales order because you sold the
			 subcontracted items, you must approve the sales order. In the <GUIRef href="/baanerp/td/sls/tdsls4100m900" role="session">Sales Order - Lines (tdsls4100m900)</GUIRef> session, on the Monitor tab, select the sales order
			 line, and click <GUIRef href="/baanerp/td/sls/tdsls4510m000#start.outbound" role="command">Inbound/Outbound Status</GUIRef>. From the <GUIRef href="/baanerp/wh/inh/whinh2129m000" role="session">Outbound Line Status Overview (whinh2129m000)</GUIRef>, handle the sales order.</Paragraph>
         </Step>
      </Steps>
   </ProcedureSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000451" role="manual">Item subcontracting - setup</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000450" role="manual">Overview of subcontracting</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>