Setting Up Scheduled Orders
You can handle the purchasing side of a subcontract operation through a supplier schedule. Create supplier-scheduled purchase orders using Scheduled Order Maintenance (5.5.1.13).
Set the ship-to site to the repetitive schedule site and create a line for the subcontract item with a line type of S (Subcontract). In the Work Order ID field, enter the cumulative order ID associated with the subcontract items. You can create cumulative orders manually in Cumulative Order Maintenance (18.22.6) or automatically in Backflush Transaction (18.22.13).
Note: For purchase cost, enter the subcontract cost per item.
Set the item number on the scheduled order line to one of the following:
• The end-item number from the repetitive schedule
• The WIP item specified in the routing operation
Use WIP items to represent services being purchased; for example, HEAT-TREAT-SERVICE. Using WIP items helps ensure consistent pricing for subcontract services. Set up WIP items in the item master before entering them on supplier schedules.
After you create the scheduled order, update the end-item routing with the scheduled order and line numbers if you have not already done so.
Values on the supplier-scheduled order are used by PO Receipts, Supplier Schedule Update from MRP, and PO Shipper Receipt.
When you execute Schedule Update from MRP (5.5.3.1), the subcontract lines on the scheduled PO are processed. The system considers work order routing records (for released work orders) and routing records (for planned work orders) and collects operation demand data used to create an updated supplier schedule.