Processing Subcontract Shipments

If you are processing WLT-controlled items for subcontract shipping, additional processing occurs. This includes additional WLT frames that display when you process a subcontract order.

Subcontract Shipping Process depicts the tasks involved when processing a subcontract shipment that is not WLT-controlled.

Use Schedule Explosion (18.22.2.4) to explode the subcontract schedule. When you explode a repetitive schedule, the system creates the scheduled work orders, generating component demands for each item and day.

Note: The generated work orders are identified as a type S. The S indicates a scheduled work order, not a subcontract work order.

Next, create the subcontract schedule release by running Schedule Update from MRP (5.5.3.1). Schedule Update from MRP uses the percentages you defined to allocate MRP planned orders for the item among subcontractors.

See Specifying Subcontractors for a Routing Operation.

Transmit the schedules to subcontractors using Schedule Print (5.5.3.8), Schedule Print in Fax Format (5.5.3.9), or Supplier Shipping Schedule (35.4.8) if you are using EDI eCommerce to export schedules in electronic data interchange (EDI) format.

See User Guide: QAD EDI eCommerce.

You can use Backflush Transaction (18.22.13) to optionally backflush components up to the subcontractor operation and create a cumulative work order and its ID to track subcontractor activity.

When the system creates the cumulative work order, it assigns a work order ID. The system automatically updates blank work order ID fields on subcontract order lines with the new ID if you connected a subcontract:

• Discrete purchase order to the subcontract routing and operation through Subcontract Routing/Op PO Maint (5.11).

• Scheduled order to the subcontract routing and operation in Subcontract Order MRP % Maint (5.5.1.21).

Also, the system automatically populates the subcontract operation on subcontract purchase order lines. Therefore, you do not have to return to purchase order maintenance programs to enter the work order ID and subcontract operation.

In Backflush Transaction, set Move Next Op to No for subcontractor operations. Since the backflush operation is prior to the subcontract operation, you set Move Next Op to No because subcontract shipping functionality moves WIP material from the prior operation to the subcontract operation.

Use Sub Shipper Maintenance (18.22.5.5) to create shippers for shipment of items to subcontractors. The subcontract shipper can consist of container items, WIP items, and the components used at this operation that are also being shipped to the subcontractor.

You specify only one subcontractor per subcontract shipper. Identify the subcontractor in the Ship-To/Dock field in the header frame. You indicate the correct work order or cumulative ID, routing, operation, item, production line, and other data pertinent to this subcontractor shipment in the Contents (Items) frame.

You can use the subcontractor data in the Contents (Items) frame for a subcontractor other than the subcontractor defined for the item’s routing and operation by setting Unassigned Suppliers to Yes in Subcontract Shipping Control (18.22.5.24).

See Defining Subcontract Shipping Control Options.

Note: Use Subcontract Routing/Op PO Maint (5.11) to specify subcontract suppliers for a specific routing operation or use Subcontract MRP % Maint (5.5.1.21) to specify scheduled orders for a specific routing operation.

When you enter an open cumulative work order ID in the Contents (Items) frame, the system automatically updates the following fields in the Contents (Items) frame with data from the cumulative work order:

Conversely, when you enter data in the fields listed above, the system automatically updates the ID field with the correct cumulative work order ID.

• Effective Date	• Site
• Item Number	• Production Line
• Routing	• BOM Code

Sub Shipper Maintenance, Contents (Items) Frame (18.22.5.5) shows the Sub Shipper Maintenance Contents (Items) frame.

Enter the effective date of the transaction. The system searches open cumulative orders that pertain to the effective date.

Optional. Enter the lot/serial number for the items shipped on this subcontract shipper if items are tracked by lot or serial number.

Indicate whether this transaction references multiple sites, locations, lot number, serial numbers, or lot reference numbers.

Yes: Another entry screen displays letting you enter multiple lines for this transaction. The system creates an individual transaction history record for each transaction line. The total of all lines is used to update the inventory balance.

Enter comments about the shipment.

Confirm the subcontract shipper using Sub Shipper Issue (18.22.5.11). For the quantities identified on the subcontract shipper, the equivalent of a move transaction is performed from the output queue of the operation preceding the subcontract operation. If the preceding operation is a non‑milestone, then non‑milestone backflushing takes place for that operation and any other preceding non‑milestone until the quantity requirement is either satisfied or another milestone operation is encountered.

For component material requirements of the subcontract operation, the system performs the equivalent of an inventory location transfer. Inventory is transferred from the site and location entered on the subcontract shipper to the cumulative order site and operation work center location, if there is a corresponding record in the location master. Otherwise, the inventory is transferred to the item default location.

You receive shipments from the subcontractor using Purchase Order Receipts (5.13.1) or PO Shipper Maintenance (5.5.5.5 and 5.13.14).

If you use Purchase Order Receipts, the receipt of subcontract items:

If you use PO Shipper Maintenance, you can record the subcontract receipt and take time to compare the actual received items against the receipt quantity.

Use PO Shipper Receipt (5.5.5.11 and 5.13.20) to update inventory and the GL after you manually verify received subcontract items and quantities with PO Shipper Maintenance.

Note: PO Fiscal Receiving (5.13.16) functions similarly to PO Shipper Maintenance; however, fiscal receipts are typically for inventory as opposed to receipts for subcontracted services. Therefore, subcontract shipping receipt functionality as described in this section does not apply to PO Fiscal Receiving.

When receiving subcontracted items, you can connect subcontract shippers to the receipt for more subcontract visibility.

For more information on connecting shippers, see here.

When you connect a subcontract shipper ID to purchase order lines you are receiving against, you can also:

• Place the items into finished goods automatically if the subcontract operation is the last operation and the items are lot- or serial- controlled. See Moving Finished Subcontract Items to Inventory.

Note: If WIP item components are lot/serial controlled, you must use the Advanced Repetitive Move Transaction (18.22.19) to record the WIP item placement into inventory. If only the WIP item is lot/serial controlled, then the placement into inventory occurs during receipt.

To receive against a subcontract shipper, set Manual Shipper Update to Yes in Subcontract Shipping Control (18.22.5.24). When you set this field to Yes, the Subcontract Shippers frame displays in Purchase Order Receipts (5.13.1), PO Shipper Maintenance (5.5.5.5 or 5.13.14), and Purchase Order Returns (5.13.7). After you select a shipper, the system displays shipper data in the lower portion of the screen.

See Defining Subcontract Shipping Control Options.

Accept the ID that displays or enter another ID of the subcontract shipper you want to track. Entering the number here lets you track subcontract shippers sent to and received from subcontractors. Use Subcontract Item Status Report (18.22.5.16) to display the status and history of items sent to and received from subcontractors.

If the item is lot- or serial-controlled, enter the lot/serial number for the items received on this purchase order line if items are tracked by lot or serial number.

Enter the quantity of items you received from the subcontractor. The system tracks the receipt quantity for the subcontract shipper you specified. This information displays as received quantities in the subcontract shipping programs.

If you enter a positive quantity, the system considers this a received quantity if you are in a receipt program or a returned quantity if you are in a return program. The system updates the shipper you selected with the quantity. If you select a subcontract shipper that has an expired cumulative order associated with it, the system uses the current cumulative ID on the scheduled order.

If you enter a negative quantity, the system considers this as a return quantity if you are in a receipt program. The system updates the shipper you selected with the quantity.

• The total quantity for all specified subcontract shippers cannot exceed the total purchase order receipt quantity

Enter the quantity you want to scrap. To enter a quantity, you must set Scrap Unreturned Material to Yes in Subcontract Shipping Control (18.22.5.24). If you enter a scrap quantity that equals the open quantity, the system closes the subcontract shipper. See Scrapping Subcontract Items.

This field lets you indicate whether the entire subcontract shipper is complete or not. You can specify the subcontract shipper as fully received even when the quantity received does not match the original quantity shipped.

If you reopen a previously closed subcontract shipper and the cumulative ID has expired, the system uses the ID from the scheduled order.

Yes: The entire subcontract shipper is complete. If there are several lines for the same subcontract shipper, setting this field to Yes on just one line updates all lines for that subcontract shipper as closed.

For example, for a subcontract shipper that includes four lines, if you set this field to Yes because you received the entire shipment of line 1, then the system sets the Close Sub Shipper field to Yes for the remaining three lines, too.

Enter comments about the receipt.

Use Subcontract Item Status Inquiry (18.22.5.17) to view the shipment status of subcontract items. Set Show Shipped Complete to Yes to display the complete status. If Show Shipped Complete is No, the system displays open subcontract shippers only. If Yes, the system displays both open and closed subcontract shippers.

When you receive subcontracted items, you can return items to the subcontractor, scrap items, or move finished items into inventory. The following sections cover these optional receipt-related tasks.

In some instances, you may have to return items to the subcontractor that you received. You can control whether subcontract shippers are manually updated with return quantities and return items against the same cumulative ID.

To return against a subcontract shipper, set Manual Shipper Update to Yes in Subcontract Shipping Control (18.22.5.24).

When you set this field to Yes, the Subcontract Shippers frame displays in the following programs for each different purchase order line against which you are returning items.

See Defining Subcontract Shipping Control Options.

Use the following procedure to return items against a subcontract shipper:

1 Select a subcontract shipper from a list of all open and closed subcontract shippers in the Subcontract Shippers frame.

a Enter a negative number in the Receipt Quantity field to indicate returned quantities if the Subcontract Shippers frame displays in PO Shipper Maintenance or Purchase Order Receipts. The quantity you enter cannot exceed the subcontract shipper quantity.

b Enter a positive number in the Receipt Quantity field to indicate returned quantities if the Subcontract Shippers frame displays in Purchase Order Returns. The quantity you enter cannot exceed the subcontract shipper quantity.

3 To return an item on a purchase order that is linked to a previously closed subcontract shipper, set Close Sub Shipper to No.

The system reopens the subcontract shipper and updates the received quantities to reflect the portion of the item quantity that you return. Once you update the quantity, the system opens the subcontract shipper for that quantity.

4 Add comments about why you are returning items or reopening the subcontract shipper in the Comments field.

Use Subcontract Item Status Report (18.22.5.16) to display total quantities returned to the subcontractor.

If the quantity you receive from the subcontractor is less than the quantity indicated on the subcontract shipper, you can optionally scrap the items that you did not receive from the subcontractor.

There are two ways to register scrap items from subcontractors and update the subcontract shipper associated with the order:

• Scrap when receiving or returning items against a purchase order, using the Subcontract Shippers frame.

Both methods let you adjust the scrap quantity on subcontract shippers and register a scrap transaction with Advanced Repetitive.

Note: You can also scrap items not returned from the subcontractor through Scrap Transaction (18.22.18); however, this method does not update subcontract shippers.

When you scrap items using purchase order receipts or returns, you can:

• Do not complete the receipt as short and manually adjust WIP quantities using the scrap transaction of your choice.

Follow these steps to scrap the quantity at the subcontract shipper level:

This causes the Subcontract Shippers frame to display in Purchase Order Receipt (5.13.1) or Purchase Order Returns (5.13.7).

This lets you enter a scrap quantity in the Subcontract Shippers frame when you receive or return items and update a subcontract shipper with the scrap quantity.

Note: The Subcontract Shippers frame also displays in PO Shipper Maintenance (5.5.5.5 or 5.13.14); however, you cannot enter scrap quantities in the frame and the Scrap Details frame does not display.

The system informs you that unreceived quantities for subcontract shipper items will be scrapped and prompts you to continue.

Note: If you enter a quantity that equals the open quantity, the system closes the subcontract shipper.

Continue processing the receipt or return. When you are ready to complete the transaction, the Scrap Details frame displays.

Note: The Scrap Details frame displays in Purchase Order Receipts (5.13.1) and Purchase Order Returns (5.13.7); see Subcontract Shippers Frame, Scrap Quantity Field.

7 Enter Input or Output in the Queue field to indicate the subcontract operation queue from which the items are scrapped.

Note: If the subcontract operation is the first operation and WIP Lot Trace is enabled, you cannot update the queue and reason code.

Input: Enter Input if you want the system to adjust the scrapped material at the input queue of the subcontract operation. The system does not include subcontract labor and materials for the scrapped items when calculating the value of the scrapped material.

Output: Enter Output if you want the system to adjust scrapped material at the output queue of the subcontract operation. The system includes subcontract-consumed labor and materials for the scrapped items.

Note: To scrap at the subcontract output queue, you must set Move Next Op to No in Purchase Order Receipts.

Note: You must create reason codes with a reason type of Scrap in Reason Codes Maintenance (36.2.17).

To scrap the quantity manually, set:

Use Subcontract Scrap Maintenance (18.22.5.13) to register a scrap transaction for subcontracted material against one or more subcontract shippers. This program:

To register scrap through Subcontract Scrap Maintenance, use the following procedure:

1 Enter selection criteria in the header, including the item, supplier, site, ship date, subcontract shipper ID, and cumulative ID.

Note: If the cumulative ID you entered expired but the subcontract shipper is not complete, the system may have replaced the cumulative ID on the purchase order. When this happens, the system finds the subcontract PO lines for the supplier you entered, then matches the item number on the new cumulative ID to the item number on the expired cumulative ID to determine which shipper to display.

Information about the subcontract shipper displays in the Shipper Details frame. The fields are display only, except for Employee, Shift, and Scrap Qty.

Note: The fields are identical to those that appear when scrapping in the Subcontract Shippers frame when receiving or returning subcontract items.

Use Subcontract Item Status Report (18.22.5.16) to view scrapped items.

See Scrapping Subcontract Items.

If the last operation is a subcontract operation and the items are lot or serial controlled, you can move items automatically into inventory during the receipt.

Note: If WIP item components are lot/serial controlled, you must use the Advanced Repetitive Move Transaction (18.22.19) to record the WIP item placement into inventory.

Use Purchase Order Receipts (5.13.1) or PO Shipper Receipt (5.5.5.5 and 5.13.14) to place items received from subcontractors into finished goods automatically. You must Set Move to Next Operation to Yes in Purchase Order Receipts. The system displays the Receipt Data Input frame where you can edit received item information before an inventory record is created.