Operations done by a subcontractor

A routing operation marked Done by a subcontractor is bought, not scheduled: releasing the production order raises a purchase requisition for it, and the material sent out is issued and received under Material at Subcontractors.

On the routing

Manufacturing › Engineering › Routings, Operations tab: each operation has Done by a subcontractor, Subcontractor and Subcontract price per unit. Leave Subcontractor empty to use the work center’s default subcontractor. The price is in the company’s own currency and prices the requisition Release raises. A work center marked subcontracted makes every operation on it so.

On release

• Releasing a production order raises one subcontracting purchase requisition per subcontracted operation, naming the production order and the operation, at that operation’s subcontractor and price, and the Material at Subcontractors issue for what goes out.
• Releasing again, or pressing the subcontract action by hand, raises nothing new for an operation that already has a requisition (not cancelled or rejected) or a purchase order.
• An operation with no price still gets its requisition; approval asks for the price.

Material at Subcontractors

Supply Chain › Procurement Control › Material at Subcontractors lists what the company owns and is not holding: Issue, Subcontractor, Item, Production order, Op, Purchase order, Required, Issued, Consumed, Returned, Spoiled, Still out, Value still out, Expected back, Overdue and Status.

• New: the Production order picker shows the order number first, then the item (WO-000001 — FG-PUMP-01), so the order you want can be found by its number.
• Issue to subcontractor sends material out: Quantity going out (leave it empty to send the quantity required) and Expected back. It can be repeated while the issue is open. The material stays the company’s stock while it is with the subcontractor.
• Receive records what came back: Returned unused, Consumed in the work and Spoiled. Together they cannot be more than is still out; the issue closes when nothing is left out.