<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/ti/onlinemanual/000452" xml:lang="en">
   <Header>
      <Title>To set up operation subcontracting (manufacturer's side)</Title>
      <Keyword type="header" order="d1e2390458">
         <Level1>Subcontracting</Level1>
         <Level2>with material supply</Level2>
      </Keyword>
      <Keyword type="header" order="d1e2390463">
         <Level1>Subcontracting with material supply</Level1>
         <Level2>setup</Level2>
      </Keyword>
      <Keyword type="header" order="d1e2390468">
         <Level1>Setup</Level1>
         <Level2>subcontracting with material supply</Level2>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>You can choose to subcontract part of the production process,
		and supply material to the subcontractor.</Paragraph>
   </AimSection>
   <ProcedureSection>
      <Steps>
         <StepsIntro>Before the actual subcontracting starts, you must set up the
		  following data:</StepsIntro>
         <Step>
            <StepTitle>Implemented software components</StepTitle>
            <List>
               <ListIntro>Consider the following check boxes in the <GUIRef href="/baanerp/tc/com/tccom0500m000" role="session">Implemented Software Components (tccom0500m000)</GUIRef> details session:</ListIntro>
               <ListItemHead>
                  <GUIRef href="/baanerp/tc/com/tccom0100s000#tccom000.smfm" role="manual">Subcontracting with Material Flow</GUIRef>
               </ListItemHead>
               <ListItem>If you want to support the flow of subassemblies and
				components during the subcontracting process, you must select the <GUIRef href="/baanerp/tc/com/tccom0100s000#tccom000.smfm" role="manual">Subcontracting with Material Flow</GUIRef> check box.</ListItem>
               <ListItemHead>
                  <GUIRef href="/baanerp/tc/com/tccom0100s000#tccom000.alhp" role="manual">Demand Pegging</GUIRef>
               </ListItemHead>
               <ListItem>Allocation and hard pegging is required to identify
				subassemblies uniquely. If the <GUIRef href="/baanerp/tc/com/tccom0100s000#tccom000.alhp" role="manual">Demand Pegging</GUIRef> check box is selected,
				every subassembly is allocated to a specific SFC order by means of a reference
				number.</ListItem>
               <ListItemHead>
                  <GUIRef href="/baanerp/tc/com/tccom0100s000#tccom000.trcn" role="manual">Terms and Conditions</GUIRef>
               </ListItemHead>
               <ListItem>In ERP Enterprise, the manufacturer is by default responsible to supply components
				for subcontracting. However, if a component is transferred by sales order, or
				if the subcontractor is responsible for the component's planning, you must use
				the <GUIRef href="/baanerp/tc/trm" role="module">Terms and Conditions</GUIRef> module to lay this down (refer to step 5). To use <GUIRef href="/baanerp/tc/trm" role="module">Terms and Conditions</GUIRef>, you
				must select the <GUIRef href="/baanerp/tc/com/tccom0100s000#tccom000.trcn" role="manual">Terms and Conditions</GUIRef> check box.</ListItem>
            </List>
         </Step>
         <Step>
            <StepTitle>Administrative warehouse</StepTitle>
            <Paragraph>Define an <Link href="/baanerp/wh/glossary/glossary#000467" role="glossary">administrative warehouse</Link> in the <GUIRef href="/baanerp/wh/wmd/whwmd2500m000" role="session">Warehouses (whwmd2500m000)</GUIRef> session. The administrative warehouse reflects the
			 external warehouse at the subcontractor's site. Define the subcontractor data
			 in the <GUIRef href="/baanerp/tc/mcs/tcmcs0103s000#f.ofbp.nama" role="manual">Sold-to</GUIRef> field and the <GUIRef href="/baanerp/tc/mcs/tcmcs0103s000#f.stbp.nama" role="manual">Ship-to</GUIRef> field. This data is necessary to create
			 subcontracting purchase orders during the subcontracting process.</Paragraph>
            <List>
               <ListIntro>Consider the following check boxes:</ListIntro>
               <ListItemHead>
                  <GUIRef href="/baanerp/wh/wmd/whwmd2500m000#tcmcs003.imgt" role="manual">Inventory Management</GUIRef>
               </ListItemHead>
               <ListItem>
                  <Paragraph>If you clear the <GUIRef href="/baanerp/wh/wmd/whwmd2500m000#tcmcs003.imgt" role="manual">Inventory Management</GUIRef> check box, you indicate that the
				  subcontractor carries out the warehouse's inbound activities, which is a
				  logical choice in case of subcontracting. You must complete the <Link href="/baanerp/wh/glossary/glossary#000324" role="glossary">inbound</Link> procedure in one of the following
				  ways:</Paragraph>
                  <List>
                     <ListItem>Use automatic warehousing procedures. For more
					 information, refer to <Link href="/baanerp/wh/onlinemanual/000008" role="manual">To handle warehousing orders</Link>.</ListItem>
                     <ListItem>Update the inventory based on ReceiveDelivery messages.
					 For more information, refer to <Link href="/baanerp/wh/onlinemanual/000483" role="manual">Receipt delivery messages</Link>.</ListItem>
                  </List>
                  <Paragraph>If you clear the <GUIRef href="/baanerp/wh/wmd/whwmd2500m000#tcmcs003.imgt" role="manual">Inventory Management</GUIRef> check box, and select the <Link href="/baanerp/wh/wmd/whwmd2500m000#whwmd200.mipa" role="formfield">Manual Inbound Process Allowed</Link> check box, inventory
				  management is not carried out, but you can do a manual inbound.</Paragraph>
                  <Paragraph>Note that if you select the <GUIRef href="/baanerp/wh/wmd/whwmd2500m000#tcmcs003.imgt" role="manual">Inventory Management</GUIRef> check box, you must also use
				  automatic warehousing procedures.</Paragraph>
               </ListItem>
               <ListItemHead>
                  <GUIRef href="/baanerp/wh/wmd/whwmd2500m000#tcmcs003.inep" role="manual">Include in Enterprise Planning</GUIRef>
               </ListItemHead>
               <ListItem>Select the <Link href="/baanerp/tc/mcs/tcmcs0103s000#tcmcs003.inep" role="formfield">Include in Enterprise Planning</Link> check box.</ListItem>
            </List>
         </Step>
         <Step>
            <StepTitle>Item data for subcontracted item and
			 subassemblies</StepTitle>
            <List>
               <ListItemHead>End item</ListItemHead>
               <ListItem>
                  <Paragraph>In the <GUIRef href="/baanerp/ti/ipd/tiipd0101m000" role="session">Items - Production (tiipd0101m000)</GUIRef> session, find the end item for which you subcontract
				  one or more operations, and for which you want to support the material flow.
				  Select for this item the <GUIRef href="/baanerp/ti/ipd/tiipd0101m000#tiipd001.smfs" role="manual">Subcontracting with Material Flow</GUIRef> check box. If you
				  want to subcontract, but you do not want to support the material flow, refer to <Link href="/baanerp/ti/onlinemanual/000081" role="manual">Operation subcontracting without material flow support</Link>.</Paragraph>
                  <Paragraph>Calculate the end item's cost price (top-down) in the <GUIRef href="/baanerp/ti/cpr/ticpr2210m000" role="session">Calculate Cost and Valuation Prices (ticpr2210m000)</GUIRef> session.</Paragraph>
               </ListItem>
               <ListItemHead>Subassemblies</ListItemHead>
               <ListItem>
                  <Paragraph>In the <GUIRef href="/baanerp/tc/ibd/tcibd0501m000" role="session">Items - General (tcibd0501m000)</GUIRef> details session, define two items for which the <GUIRef href="/baanerp/tc/ibd/tcibd0101s000#tcibd001.sayn" role="manual">Subassembly</GUIRef> check box is selected. These items
				  represent respectively the <Link href="/baanerp/ti/glossary/glossary#000000000000026" role="glossary">subassembly</Link> sent by the manufacturer to
				  the subcontractor, and the subassembly sent back by the subcontractor after
				  work is done. If you want to leave open the possibility to produce the item
				  yourself instead of sending it to a subcontractor, set the item type of the
				  subassembly that you receive back from the subcontractor to <GUIRef href="/baanerp/tc/domains/kitm#manufacture" role="option">Manufactured</GUIRef>.</Paragraph>
                  <Paragraph>If the manufacturer sends no subassembly to the
				  subcontractor but only material, you just need to define an item code for the
				  subassembly created by the subcontractor.</Paragraph>
                  <List>
                     <ListIntro>Define the following data for the
					 subassemblies:</ListIntro>
                     <ListItemHead>Warehouse</ListItemHead>
                     <ListItem>
                        <Paragraph>In the <GUIRef href="/baanerp/tc/ibd/tcibd2500m000" role="session">Items - Ordering (tcibd2500m000)</GUIRef> session, find the defined subassemblies. For the
						subassembly that you will send to the subcontractor, enter in the <GUIRef href="/baanerp/tc/ibd/tcibd2100s000#tcibd200.cwar" role="manual">Warehouse</GUIRef> field the warehouse from which you send the
						subassembly. For the subassembly that you receive back from the subcontractor,
						enter the warehouse in which you receive the subassembly.</Paragraph>
                     </ListItem>
                     <ListItemHead>Cost price</ListItemHead>
                     <ListItem>
                        <Paragraph>To generate an effective cost component structure,
						define the assemblies' costing data in the <GUIRef href="/baanerp/ti/cpr/ticpr0107m000" role="session">Items - Costing (ticpr0107m000)</GUIRef> session. Calculate and actualize the cost price in the <GUIRef href="/baanerp/ti/cpr/ticpr2210m000" role="session">Calculate Cost and Valuation Prices (ticpr2210m000)</GUIRef> session while the <GUIRef href="/baanerp/ti/cpr/ticpr2210m000#actualize.copr" role="manual">Actualize Standard Cost and Valuation Prices</GUIRef> check
						box is selected.</Paragraph>
                     </ListItem>
                     <ListItemHead>Supply</ListItemHead>
                     <ListItem>
                        <Paragraph>Subassemblies are sent to the subcontractor by means
						of a purchase subcontracting order, which is an order-specific supply. In the <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> details session, you must therefore define the supply
						system <Link href="/baanerp/wh/glossary/glossary#000408" role="glossary" Update="No">Order Controlled / Single</Link> for the correct
						combination of the subassembly that you will send to the subcontractor and the
						administrative warehouse. Note that for a subassembly, this is the only supply
						system you can use.</Paragraph>
                     </ListItem>
                     <ListItemHead>Price</ListItemHead>
                     <ListItem>
                        <Paragraph>For the item that is sent back by the subcontractor,
						you must determine the price you will pay to the subcontractor. In the <GUIRef href="/baanerp/td/ipu/tdipu0101m000" role="session">Items - Purchase (tdipu0101m000)</GUIRef> session, use the <Link href="/baanerp/td/ipu/tdipu0101m000#tdipu001.sopr" role="formfield">Source of Price</Link> field to choose between <Link href="/baanerp/tc/domains/sopr#rate" role="manual" Update="No">Subcontracting Rate</Link> and <Link href="/baanerp/tc/domains/sopr#price.book" role="manual" Update="No">Price Book / Contract</Link> to determine the price.
						Note that if you subcontract the last operation, you must define the price for
						the end item instead of for the subassembly.</Paragraph>
                        <Paragraph>If the <GUIRef href="/baanerp/td/ipu/tdipu0101m000#tdipu001.sopr" role="manual">Source of Price</GUIRef> field is <GUIRef href="/baanerp/tc/domains/sopr#rate" role="option">Subcontracting Rate</GUIRef>, you must define subcontracting rates in the <GUIRef href="/baanerp/ti/cpr/ticpr1160m000" role="session">Subcontracting Rates (ticpr1160m000)</GUIRef> session. Define the rate by task for the correct
						combination of project, <Link href="/baanerp/ti/glossary/glossary#PriCalCod_ti" role="glossary">price calculation code</Link>, parent item or
						subcontractor.</Paragraph>
                        <Paragraph>If the <GUIRef href="/baanerp/td/ipu/tdipu0101m000#tdipu001.sopr" role="manual">Source of Price</GUIRef> field is <GUIRef href="/baanerp/tc/domains/sopr#price.book" role="option">Price Book / Contract</GUIRef>, the <GUIRef href="/baanerp/ti/cpr/ticpr1160m000" role="session">Subcontracting Rates (ticpr1160m000)</GUIRef> session is also relevant, because of the tasks'
						cost components are defined in this session. You can leave the <GUIRef href="/baanerp/ti/cpr/ticpr1160m000#ticpr160.cprj" role="manual">Project (PCS)</GUIRef>, <GUIRef href="/baanerp/ti/cpr/ticpr1160m000#ticpr160.pitm" role="manual">Parent item</GUIRef>, and <GUIRef href="/baanerp/ti/cpr/ticpr1160m000#ticpr160.item" role="manual">Subassembly</GUIRef> fields empty.</Paragraph>
                     </ListItem>
                  </List>
               </ListItem>
            </List>
         </Step>
         <Step>
            <StepTitle>Supply data for components</StepTitle>
            <List>
               <ListIntro>Regulate the supply of components to the subcontractor.
				There are two ways:</ListIntro>
               <ListItemHead>Order specific supply</ListItemHead>
               <ListItem>
                  <Paragraph>Order specific supply means that supply is linked to the
				  subcontracting purchase order. The supplied quantity is the quantity required
				  for the purchase order. To use order specific supply, the component's <Link href="/baanerp/wh/glossary/glossary#000419" role="glossary">supply system</Link> 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>, for the correct combination of component and
				  administrative warehouse.</Paragraph>
                  <Paragraph>Order specific supply can exist between manufacturer and
				  subcontractor, or directly between supplier and subcontractor:</Paragraph>
                  <List>
                     <ListTitle>Manufacturer - subcontractor</ListTitle>
                     <ListItem>Select the <GUIRef href="/baanerp/wh/wmd/whwmd2110s000#whwmd210.sfwh" role="manual">Supply from Warehouse</GUIRef> check box in the <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> details session, for the correct combination of
					 component and administrative warehouse.</ListItem>
                     <ListItem>Supply takes place by <Link href="/baanerp/ti/glossary/glossary#000077" role="glossary">warehouse transfers</Link>.</ListItem>
                  </List>
                  <List>
                     <ListTitle>Supplier - subcontractor</ListTitle>
                     <ListItem>Clear the <GUIRef href="/baanerp/wh/wmd/whwmd2110s000#whwmd210.sfwh" role="manual">Supply from Warehouse</GUIRef> check box in the <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> details session, for the correct combination of
					 component and administrative warehouse.</ListItem>
                     <ListItem>Enter the supplier in the <GUIRef href="/baanerp/wh/wmd/whwmd2110s000#whwmd210.sfbp" role="manual">Ship-from Business Partner</GUIRef> field and the <GUIRef href="/baanerp/wh/wmd/whwmd2110s000#whwmd210.supl" role="manual">Buy-from Business Partner</GUIRef> field.</ListItem>
                     <ListItem>Supply takes place by purchase order.</ListItem>
                  </List>
               </ListItem>
               <ListItemHead>Bulk supply</ListItemHead>
               <ListItem>
                  <Paragraph>Bulk supply means that components are sent to the
				  subcontractor anonymously, independent of the subcontracting purchase order.
				  There are two ways to generate bulk supply: using a specific supply system, or
				  by <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef>. You
				  must choose one of these methods; you cannot use both methods to supply the
				  same subcontracting (that is, administrative) warehouse.</Paragraph>
                  <List>
                     <ListItemHead>Supply system</ListItemHead>
                     <ListItem>In the <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> details session, for the correct combination of
					 component and administrative warehouse, you can choose <GUIRef href="/baanerp/tc/domains/sups#tpop" role="option">Time-Phased Order Point</GUIRef>, <GUIRef href="/baanerp/tc/domains/sups#kanban" role="option">KANBAN</GUIRef>, or <GUIRef href="/baanerp/tc/domains/sups#batch" role="option">Order Controlled/Batch</GUIRef> to generate bulk supply. Note that the administrative
					 warehouse and the supplying warehouse must be either belong to the same <Link href="/baanerp/cp/glossary/glossary#000315" role="glossary">cluster</Link>, or they should not be assigned to a cluster at
					 all.</ListItem>
                     <ListItemHead>
                        <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef>
                     </ListItemHead>
                     <ListItem>To generate bulk supply using <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef>, the
					 administrative warehouse must be in a different cluster than the main
					 warehouse. Furthermore, distribution relations must be defined between the two
					 warehouses. The supply system defined in the <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> details session, must be <GUIRef href="/baanerp/tc/domains/sups#single" role="option">Order Controlled/Single</GUIRef>. For more information about clusters, refer to <Link href="/baanerp/cp/onlinemanual/000301" role="manual">Clusters in Enterprise Planning</Link>.</ListItem>
                  </List>
               </ListItem>
            </List>
         </Step>
         <Step>
            <StepTitle>Terms and conditions</StepTitle>
            <List>
               <ListIntro>Define terms and conditions in the following
				cases:</ListIntro>
               <ListItem>If components are shipped by sales orders.</ListItem>
               <ListItem>If you, the manufacturer, are responsible for the
				components' planning.</ListItem>
            </List>
            <ProcedureList>
               <ListIntro>Perform the following steps:</ListIntro>
               <ListItem>
                  <Paragraph>By means of the <Link href="/baanerp/tc/trm/tctrm1100m000" role="session">Terms and Conditions (tctrm1100m000)</Link> session, start the <Link href="/baanerp/tc/trm/tctrm1600m000" role="session">Terms and Conditions (tctrm1600m000)</Link> session to define a <Link href="/baanerp/tc/glossary/glossary#000500" role="glossary">terms and conditions agreement</Link>. The <Link href="/baanerp/tc/trm/tctrm1600m000#tctrm100.trtp" role="formfield">Terms and Conditions Type</Link> field must be <GUIRef href="/baanerp/tc/domains/trm.trtp#sales" role="option">Sales</GUIRef>.</Paragraph>
               </ListItem>
               <ListItem>
                  <Paragraph>Define a <Link href="/baanerp/tc/glossary/glossary#000503" role="glossary">terms and conditions search level</Link> for which the <Link href="/baanerp/tc/trm/tctrm1610m000#tctrm110.sa01" role="formfield">Search Attribute 1</Link> field is <GUIRef href="/baanerp/tc/domains/trm.attr#item.group" role="option">Item Group</GUIRef>, and the <Link href="/baanerp/tc/trm/tctrm1610m000#tctrm110.sa02" role="formfield">Search Attribute 2</Link> field is <GUIRef href="/baanerp/tc/domains/trm.attr#warehouse" role="option">Warehouse</GUIRef>. Select the <Link href="/baanerp/tc/trm/tctrm1610m000#tctrm110.ordr" role="formfield">Order</Link> check box and the <Link href="/baanerp/tc/trm/tctrm1610m000#tctrm110.plng" role="formfield">Planning</Link> check box.</Paragraph>
               </ListItem>
               <ListItem>
                  <Paragraph>Double-click the defined search level to start the <Link href="/baanerp/tc/trm/tctrm1610m000" role="session">Terms and Conditions Search Level - Lines (tctrm1610m000)</Link> session. In this
				  session, define the items to which the agreement applies.</Paragraph>
               </ListItem>
               <ListItem>
                  <Paragraph>Double-click the defined items to start the <Link href="/baanerp/tc/trm/tctrm1620m000" role="session">Terms and Conditions Line (tctrm1620m000)</Link> session. On the Planning tab or in
				  the <Link href="/baanerp/tc/trm/tctrm1135m000" role="session">Planning Terms and Conditions (tctrm1135m000)</Link> session,
				  select the <Link href="/baanerp/tc/trm/tctrm1135m000#tctrm135.rfsp" role="formfield">Responsible for Supply Planning</Link> check box. On the Order
				  tab or in the <Link href="/baanerp/tc/trm/tctrm1130m000" role="session">Order Terms and Conditions (tctrm1130m000)</Link> session, select <GUIRef href="/baanerp/tc/domains/ttaw#sls.order.trf" role="option">Sales Order Transfer</GUIRef> in the <Link href="/baanerp/tc/trm/tctrm1130m000#tctrm130.ttaw" role="formfield">Transfer Type</Link> field.</Paragraph>
               </ListItem>
            </ProcedureList>
            <Paragraph>For more information about agreements, refer to <Link href="/baanerp/tc/onlinemanual/000503" role="manual">Setting up terms and conditions</Link>.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Sales contract</StepTitle>
            <Paragraph>If components are planned by the subcontractor or shipped by
			 sales order, define a contract in the <GUIRef href="/baanerp/td/sls/tdsls3500m000" role="session">Sales Contracts (tdsls3500m000)</GUIRef> session. The <GUIRef href="/baanerp/td/sls/tdsls3500m000#tdsls300.ofbp" role="manual">Sold-to Business Partner</GUIRef> field must contain the
			 subcontractor code. Use the <Link href="/baanerp/td/sls/tdsls3500m000#tdsls300.trid" role="formfield">Terms and Conditions ID</Link> field to link the applicable
			 terms and conditions agreement.</Paragraph>
            <Paragraph>Define the rest of the contract in the <Link href="/baanerp/td/sls/tdsls3501m000" role="session">Sales Contract Lines (tdsls3501m000)</Link> session.</Paragraph>
         </Step>
         <Step>
            <StepTitle>User profile purchase</StepTitle>
            <Paragraph>Define your <Link href="/baanerp/td/glossary/glossary#UserDefaulPu_td" role="glossary">user profile</Link> in <GUIRef href="/baanerp/td/pur" role="module">Purchase Control</GUIRef> so that ERP Enterprise can generate and
			 handle subcontracting purchase orders properly.</Paragraph>
            <Paragraph/>
         </Step>
         <Step>
            <StepTitle>Subcontracting work center and shop floor
			 warehouse</StepTitle>
            <Paragraph>In your ERP Enterprise system, you must define a subcontracting work center to represent
			 the place at the subcontractor's site where subcontracting operations are
			 carried out. In the <GUIRef href="/baanerp/ti/rou/tirou0101m000" role="session">Work Centers (tirou0101m000)</GUIRef> session, define a
			 subcontracting work center with work center type <GUIRef href="/baanerp/tc/domains/kowc#subcontracting" role="option">Subcontracting Work Center</GUIRef>.</Paragraph>
            <List>
               <ListIntro>Link the following information to the subcontracting work
				center:</ListIntro>
               <ListItem>In the <GUIRef href="/baanerp/ti/rou/tirou0101m000#tirou001.bpid" role="manual">Subcontractor</GUIRef> field, enter the subcontractor
				code.</ListItem>
               <ListItem>In the <GUIRef href="/baanerp/ti/rou/tirou0101m000#tirou001.wipw" role="manual">Shop Floor Warehouse</GUIRef> field, enter the <Link href="/baanerp/wh/glossary/glossary#000467" role="glossary">administrative warehouse</Link>, which can be a normal warehouse
				or a <Link href="/baanerp/ti/glossary/glossary#WIPWareho_ti" role="glossary">shop floor warehouse</Link>. This warehouse represents the
				warehouse at the subcontractor's site, and is used to monitor the
				subassemblies' and components' inventory levels.</ListItem>
            </List>
            <Paragraph>In the <GUIRef href="/baanerp/ti/sfc/tisfc0500m000" role="session">Shop Floor Control Parameters (tisfc0500m000)</GUIRef> session, select the <GUIRef href="/baanerp/ti/sfc/tisfc0100s000#tisfc000.uwwh" role="manual">Use of Shop Floor Warehouses</GUIRef> check box.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Routing</StepTitle>
            <Paragraph>In the <GUIRef href="/baanerp/ti/rou/tirou1102m000" role="session">Routing Operations (tirou1102m000)</GUIRef> session, link the defined subassemblies, warehouses,
			 and subcontracting work centers.</Paragraph>
            <List>
               <ListItemHead>Link to the operation that precedes the subcontracted
				operation:</ListItemHead>
               <ListItem>The subassembly which represents the product that is sent
				to the subcontractor. The warehouse from which you send the subassembly to the
				subcontractor is defaulted from the <GUIRef href="/baanerp/tc/ibd/tcibd2100s000#tcibd200.cwar" role="manual">Warehouse</GUIRef> field in the <GUIRef href="/baanerp/tc/ibd/tcibd2500m000" role="session">Items - Ordering (tcibd2500m000)</GUIRef> session. It is recommended that the subassembly
				warehouse equals the BOM warehouse of the materials sent to the
				subcontractor.</ListItem>
               <ListItemHead>Link to the subcontracted operations:</ListItemHead>
               <ListItem>The applicable subcontracting work center.</ListItem>
               <ListItemHead>Link to the last subcontracted operation:</ListItemHead>
               <ListItem>The subassembly which represents the product that is sent
				back by the subcontractor. The warehouse in which you receive the subassembly
				after subcontracting is defaulted from the <GUIRef href="/baanerp/tc/ibd/tcibd2100s000#tcibd200.cwar" role="manual">Warehouse</GUIRef> field in the <GUIRef href="/baanerp/tc/ibd/tcibd2500m000" role="session">Items - Ordering (tcibd2500m000)</GUIRef> session.</ListItem>
            </List>
         </Step>
         <Step>
            <StepTitle>BOM</StepTitle>
            <Paragraph>In the <GUIRef href="/baanerp/ti/bom/tibom1110m000" role="session">Bill of Material (tibom1110m000)</GUIRef> session, use the <Link href="/baanerp/ti/bom/tibom1110m000#tibom010.sbsr" role="formfield">Supplied by Subcontractor</Link> check box to determine how the
			 subcontractor is provided with material for subcontracting
			 activities.</Paragraph>
            <Paragraph>In the <Link href="/baanerp/ti/bom/tibom1110m000#tibom010.opno" role="formfield">Operation</Link> field, enter the operation number for which the
			 subcontractor requires the material.</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/000453" role="manual">To subcontract operations (manufacturer's side)</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>