Overview

This process is applicable only for the scenario where the main production is outsourced to an external subcontractor.

The process of creating a purchase order for external subcontracting can be initiated after placing sales or internal orders for the products usually supplied by the external subcontractor.

It's not only an order for the purchase of production services. It also includes a specification for finished product requirements and a specification to transfer to the subcontractor for raw materials and components necessary for the production.

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

Generate demand-driven subcontracting purchase orders flowchart

Paths

How to generate demand-driven subcontracting purchase orders

1. Go to Warehouse and delivery and then click Demand-driven orders under Demand fulfillment.

2. Select a Warehouse.

3. Select the Subcontracting supply source type.

4. Set additional filters to process specific demand data. Click Custom filters to enable more filters.

5. Click Next.

6. On Step 2, select the Procurement strategy that is relevant to the purchase officer's area of responsibility.

7. Click Next.

The system will automatically skip Step 3.

8. On Step 4, the system will automatically:

• Fill the demand relevant to parameters set above.
• Preset the quantity of materials and show reference documents.

9. Drill down to the reference document to review items, quantity, and requested dates.

10. Select the check boxes and enter the quantity in the To order column.

11. Select the lines and click Fill → Delivery date and enter a planned delivery date.

12. Click Next.

13. On Step 5, the system will automatically:

• Fill the demand selected on the previous steps.
• Group the demand by default Procurement strategy, Vendor, Terms of purchase, and Warehouse.

14. Check and edit:

• Procurement strategy
• Vendor
• Terms of purchase
• Warehouse
• Purchasing package and quantity

15. Click Next.

16. On Step 6, the system will automatically:

• Create a Subcontracting purchase order.
• Fill data from the demand.
• Leave a comment confirming that the order was created using the workplace.
• Post the document and set the Pending approval status if there is enough information to post without errors.
• Otherwise, save the purchase order as a draft for further filling and posting.

Paths

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:

5. Select the Group costs:

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

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.

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.

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.

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