Subcontracting Semifinished Product, without providing component to Subcon.

[Former Member]

Dear all

I have the following scenario for subcontracting, all involvoing placing Subcon PO for Semifinished Product, GI raw materials and GR Semifnished Product back for further production processing in the own factory.

Scenario:

My factory places a subcon PO for chroming a raw metal (FG = Chromed Metal). We only provide the raw metal but do not provide the Chroming paint (GI only raw metal to subcontractor), Subcontractor will use their own Chroming paint. After chroming the raw metal, we will perform a GR for Chromed Metal from the subcontractor.

My question, how do we tackle this in subcontracting? As we never provide the Chroming Paint. Does it mean I create a single item single level bom and at the time of Invoice verification, I will put in 2 lines item Subcon Service + Chroming Paint?

Please advise.

[Former Member · Accepted solution]

Hi

This can be dealt with external operation in PP.

you consult your PP consultant to craete a routing with control key allows for exteranl operation.

Then after creation & relase of Prosution order , PR will get geneerated.

convert that PR to PO. & deal accordingly.

Regards

YMREDDY

[Former Member · Accepted solution]

Hi, does it have anything to do with the Recursive BOM?

I never expect we have to touch on PP on this issue. PLease advise in details. Thanks.

[Former Member · Accepted solution]

Hi

Nothing like recursive BOM.

you can have FERT ( chrome painted material) as BOM header.

BOM component will be ROH.

create a routing with external operation.

Coordinate with your PP consultant for PP process.

Adfter releasing the production order PR get generated .

Then process follows.

Regards

YMREDDY

[Former Member · Accepted solution]

Thanks.

I would like to highlight that the Chromed Metal will be GR as a Semifnished goods, and there will be further production order for it such as Labelling stick on it before it can become Finished Goods.

What you said did make sense as we need to make this BOM dynamic in that it will trigger PR rather than a static one where we go to manually create PO by adopting the BOM.

Question: In that case, I just changed the BOM Header to put HALB (Chromed Metal) and Component as ROH?

Question: In that case, I will only GI Raw Metal (ROH Material in BOM Component) and then GR the HALB, that is it?

[Former Member · Accepted solution]

Hi

Question: In that case, I just changed the BOM Header to put HALB (Chromed Metal) and Component as ROH?

Question: In that case, I will only GI Raw Metal (ROH Material in BOM Component) and then GR the HALB, that is it?

If you are doing as above , you can as well go ahead with subcon it self ?

And you include the cost of chrome paint in your subcontrating cost.

Pl. try.

Regards

YMREDDY

[Former Member · Accepted solution]

Sorry, YMREDDY, I just want to confirm.

Hi

Question: In that case, I just changed the BOM Header to put HALB (Chromed Metal) and Component as ROH?

Question: In that case, I will only GI Raw Metal (ROH Material in BOM Component) and then GR the HALB, that is it?

If you are doing as above , you can as well go ahead with subcon it self ?

And you include the cost of chrome paint in your subcontrating cost.

Pl. try.

Regards

YMREDDY

You put a question mark at "you can as well go ahead with subcon itself?". What does it mean? Is my previous 2 quesions set the correct logic?

Thanks.

[Former Member · Accepted solution]

Hi

your Q1 is:

just changed the BOM Header to put HALB (Chromed Metal) and Component as ROH - right

Your Q2 is : will only GI Raw Metal (ROH Material in BOM Component) and then GR the HALB, that is it- this also right.

""you can as well go ahead with subcon itself?". the question mark here is by mistake -sorry.

with the above BOM settings you can safely go ahead with SUbcon orer.

Go ahead-

Regards

YMREDDY

[Former Member · Accepted solution]

Thanks, YM REDDY

I will test it out, what you said really make a lot of sense. Now I learn that we can create PR automatically from BOM for Subcontracting PO!