Overview

This process only applicable for the scenario where the main production is carried out in-house, and some subcontracting works are outsourced to an external subcontractor.

After production is scheduled for the production stage related to external subcontracting, it is required to initiate the process of creating a purchase order for this stage.

This document is not only an order for the purchase of production services. It also includes a specification for finished products or semi-finished product requirements and a specification to transfer to the subcontractor for raw materials and components which are necessary for the production.

As a result of this process, a purchase order for external subcontracting is created.

Generate subcontracting purchase orders based on production stages flowchart

Generate subcontracting purchase orders based on production stages

(v.0)

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Paths

PathManufacturing → Subcontracting → Subcontracting purchase orders
In-app link EN code

e1cib/list/Document.SubcontractOrder2_5

In-app link RU code

e1cib/list/Документ.ЗаказПереработчику2_5

How to generate subcontracting purchase orders based on production stages

1. Go to Manufacturing and then click Subcontracting purchase orders under Subcontracting.

2. Click the To register tab.

3. Set a Period, a Business unit (production), and a Subcontractor.

4. Review the list of references.

5. Select a reference and click Create Subcontracting purchase order.

The system will automatically create a new document and fill with the data from a relevant production stage and BOM.

How to check subcontracting purchase order header data

1. In the Subcontracting purchase order document, click the Main tab.

2. Check header data filled automatically and make necessary amendments.

3. Select a Subcontractor, a Counterparty, a Company.

4. Select the Subcontracting services option:

Note

  • Select Specified in the order to register a subcontracting service invoice within the document.
  • Select Registered separately to register a subcontracting service invoice separately. Follow the S2P Purchase standard services process chain to create a separate vendor invoice for subcontracting services.

5. Select the Group costs:

Note

The following options are supported:

  • No grouping. The cost of raw materials, components, and subcontracting services is allocated to all product costs according to the cost share set for it (the Cost share field on the Manufactured products tab).
  • By products. The cost of each product is specified separately.
  • By products and assignments. The cost of each product/assignment combination is specified separately.
  • By product BOM. The product cost is specified separately based on the BOM specified in the Bill of materials field. Materials can be filled according to the selected BOM.
  • By BOMs and assignments of manufactured products. The cost of product/assignment combination is specified separately based on the BOM specified in the Bill of materials field. Materials can be filled according to the selected BOM.
  • By production stages. The cost of raw materials, components, and subcontracting services is allocated to all product costs according to the production stage data.

6. Select if the Allocate costs to products option is required:

Note

The following options are supported:

  • By cost shares. Cost of resources will be allocated according to the Cost shares values specified on the Manufactured products tab.
  • By standard cost. Cost of resources will be allocated according to its standard costs (if they are maintained).
  • By weight. Cost of resources will be allocated according to its weight (if they are maintained).
  • By volume. Cost of resources will be allocated according to its volume (if they are maintained).

7. Select a Warehouse (products) for receiving products.

8. Select a Warehouse (materials) for providing raw materials.

9. Click the More tab.

10. Select the Currency, Taxation, and Business unit.

11. Fill other required fields.

How to fill product requirements

1. In the Subcontracting purchase order document, click the Manufactured products tab.

2. Review the lines filled automatically.

Note

To fill the lines from scratch:

  1. Clear all lines.
  2. Click Fill in → Select goods. Select Items, enter Quantity, and click Add to document.

3. Make necessary adjustments.

How to fill data on raw materials to be provided

1. In the Subcontracting purchase order document, click the Materials and works tab.

2. Review the lines filled automatically.

Note

To fill the lines from scratch:

  1. Clear all lines.
  2. Click Fill in → Select goods. Select Items, enter Quantity, and click Add to document.

3. Make necessary adjustments.

4. Fill the To supply option in the Actions column for all lines.

How to fill subcontracting services

1. In the Subcontracting purchase order document, click the Subcontracting services tab.

2. Review the lines filled automatically.

Note

To fill the lines from scratch:

  1. Clear all lines.
  2. Click Fill in → Select goods. Select Items, enter Quantity, and click Add to document.

3. Select a Price type.

4. Click Fill in → Prices by price type to fill the Price column. Otherwise, enter it manually.

5. Select an applicable VAT rate.

How to submit subcontracting purchase orders

1. Set the Pending approval status.

2. Post and close the document

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