Receiving Completed Subcontract Items
Receive shipments from subcontractors using the functions on the Receipts Processing Menu (5.5.5) or Purchase Order Receipts (5.13.1). Any components associated with the subcontract operation are automatically backflushed.
For scheduled orders, create a shipper in PO Shipper Maintenance (5.5.5.5). Reference the item that is on the supplier schedule. Confirm the shipper using PO Shipper Receipt (5.5.5.11). This moves the WIP to the input queue of the next operation (if Move Next Op is Yes in the cumulative order routing), backflushes the components associated with that operation, and closes out the subcontract operation for that quantity. The appropriate GL transactions, transaction history records, and operation history records are generated.
Alternately, receive the purchase order using Purchase Order Receipts (5.13.1). This creates the same GL transactions and backflushes the components. With this approach, the purchase order does not need to be a scheduled order. You can create it using Purchase Order Maintenance (5.7) and use a line type of S (Subcontract) for each subcontract line.
Be aware of some restrictions when using these programs:
• The system attempts to backflush all possible components. However, lot- or serial-controlled items must be backflushed separately using Backflush Transaction.
• You cannot modify the component backflush list as you can in Backflush Transaction.
• If the subcontract operation is the last operation in a routing, the items are not transferred from the output queue to Finished Material inventory. Use Move Transaction for that task.
• These programs do not post subcontract usage variance. That is posted by Post Accumulated Usage Variances.
The system automatically locates the active cumulative order if the cumulative order recorded on the purchase order is expired. To locate the active cumulative order, it uses the item, site, operation, line, routing, and product structure code of the cumulative order in the PO detail record, along with the effective date of the transaction.
Therefore, receiving personnel do not have to enter the cumulative order ID and operation, as long as there is only one line, routing, and product structure code for the site and item being received against.