Subcontract Operations
Work orders with subcontract operations can be used in conjunction with special subcontract purchase orders. When units are returned from a supplier with a subcontract purchase order, the system recognizes the value added to the work order, completes units for that operation, and debits the WIP account.
Separate departments, and possibly work centers, should be set up for outside processing to distinguish them from internal operations. For example, if all subcontract work center codes begin with a common character such as S, it is easy to identify them on Work Order Dispatch Report (16.18) and other reports. Departments and work centers can be defined more specifically for individual suppliers, depending on whether operations are performed by a single supplier.
See
Subcontract Operations for more setup details.
Subcontract Life Cycle
When the Work Orders, Shop Floor Control, and Purchasing modules are used together, the subcontract cycle includes the following steps:
• Work Order Maintenance (16.1) or Planned Work Order Approval (23.10)
• Work Order Component Check (16.3.18)
• Work Order Release/Print (16.6; 16.30 for enhanced .NET UI version)
• Work Order Component Issue (16.10)
• Work Order Dispatch Report (16.18)
• Purchase Order Maintenance (5.7)
• Purchase Order Receipts (5.13.1)
• Labor Feedback by Work Center (16.20.1) (optional)
• Work Order Receipt (16.11)
• Work Order Accounting Close (16.21)
Requirements for Subcontract Purchase Orders
Use Work Order Dispatch Report (16.18) and Work Center Dispatch Report (18.4.8) to determine when purchase orders for subcontract operations should be released.
The Work Order Dispatch Report displays the operations scheduled at a work center, sorted by start date. The report includes the item being built, the work order that authorizes the work, standard setup and run times, and the open quantity on the order at that work center.
Use this report to provide work visibility for a specified number of days, determined by the Window Days field. Also use it as a measurement tool for comparing production progress with production plans.