Overview
This article explains how to process a subcontract item's Purchase Order Components Demand.
NOTE The Unit Price entered on the PO line is the “value add” that the Vendor is charging you for. Typically, this is the labor the Vendor charges for the work performed, but it could also include material the Vendor supplies, if any.
Navigation
In Classic: Purchase Order Header > Purchase Order Line > Details button (Details button (far right) will display further details about the subcontract item PO Line)
In Lightning: App Launcher > Purchasing App > PO Line tab > Open a Subcontract PO Line
NOTE In the Rootstock Classic experience fields are categorized under the different tabs below:
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Accounting Tab
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Receiving/Inventory Tab
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Subcontract Tab
Whereas in the Rootstock Lightning experience, these tabs are available as sections on a single page.
Accounting Tab
Fields
Project: This is the Project associated with this PO Line. Defaults from the PO Header (if provided) can be overwritten at the line level.
Project Charge Code: This is the Project Charge Code associated with the selected Project.
Accrued AP Account: This field is initialized to the Company's AP Clearing Account for all Purchase Orders. The account will be credited on a Purchase Order Receipt (for direct or indirect material or authorized service).
Sub WIP Account: This is the Subcontract WIP Subledger Account that the PO Component issue costs will be debited to.
Taxable: If this is checked, then this item (or service), when bought, is considered taxable—defaults from the Purchasing Item Master record.
Authorization ID: The authorization ID required for payment authorization for indirect material or service item purchases.
Organizational Department: Defaults to Organizational Dept. called out on the PO Header but can be overridden on each line. Determines default information, including approvals and authorizations.
Sub WIP Variance Account: This is the Subledger Account that subcontract WIP variances will be debited to upon PO Close (if any).
Receiving/Inventory Tab
Fields
Effective Item Rev: When adding a PO line, this field is set to the latest implemented revision whose effective date is less than or equal to the PO Line's effective date.
Responsible Planner: The Responsible Planner is initialized to the Inventory Item's Responsible Planner (or its Commodity Code's Responsible Planner) for Direct items.
Receipt Location No: The physical location within the chosen receipt Location ID where this item will be received. Defaults from the inventory item master (Commodity Code) can be overridden during the receipt process.
Inspection Order Template: When Inspection Orders are used for the PO Receipt of this PO Line, select the predefined Inspection Order Template to be used for subsequent Inspection Orders generated.
Sched Vendor Ship Date: To receive this line item by the due date, this field calculates the date the vendor must ship the item. The system backs off from the dock date the shipping days from the Vendor record to arrive at this date.
PO Item Type: Valid PO Types are Indirect, Outside Operation, Purchased, Service, and Subcontract.
Receipt Location ID: This is where the item will be when received. Receipt Location ID is set from the Inventory Item (or its Commodity Code) for all Direct items. It may be overridden during the receipt transaction.
Over Receipt Indicator: If checked, the Quantity Received can be greater than the Quantity Ordered. If left unchecked, the line quantity must be adjusted before more than the specified quantity can be received.
Inter-System Direct Purchase: When checked, indicates that this item can be used in an Inter-System (between Companies) Direct Purchase.
Subcontract Tab
Fields
Scheduled Pick Date: Used for subcontract items that require material to be shipped to the vendor. This field indicates the date the items must be picked to meet the scheduled due date on the PO Line.
Subcontract Comp Act Receipt Date: This is the Sub-contracted Component's Actual Receipt Date.
Subcontract BOM Effective Date: This is the Effective date for the BOM associated with the subcontract items.
Subcontract Comp Act Ship Date: This is the Sub-contracted Component's Actual Ship Date to the vendor and only applies to subcontracted PO lines.
Vendor Actual Ship Date: The date the vendor actually ships the PO line.
Subcontract Components
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In Classic, click the Subcontract Components button to access the PO Components page to display the PO Line “BOM” for the Subcontract Parent Item being produced.
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In Lightning, click the Subcontract Components action in the Actions drop-down OR navigate to the Purchasing App > PO Line Components Lightning tab.
Once a Subcontract Parent Item is created and its BOM is in place (and the parent’s Revision is at an implemented status), when the Subcontract Parent Item is added to a Purchase Order as a PO Line, the BOM is extracted up ‘Save’, creating PO Component Demand records (PODMD).
IMPORTANT There is no need to “extract components” as this is done automatically.
PO Components Page
Adding a new PO Component Demand record or Editing/Deleting the existing PO Component Demand record will be performed only if the below conditions are satisfied:
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Qty Received on the Purchase Order Line must be equal to zero.
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Qty Allocated on the PO Component Demand record must be equal to zero.
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Qty Issued on the PO Component Demand record must be equal to zero.
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Qty Scrapped on the PO Component Demand record must be equal to zero.
NOTE If any of the above conditions are not satisfied, an error will be displayed: “PO Demand cannot be edited as the PO Line is in process”.
Edit existing PO Components
Fields
Division: The Division under which the given PO is placed.
Purchase Order: The Purchase Order Number associated with the given PO Line.
Line No: The line number assigned by the system for the given Subcontract PO Line.
Component Item Number: This is the PO Component Item Number for this subcontract component.
Qty Req: The current total Quantity required on this PO Line.
Enter Qty Per: When checked, indicates that ‘Qty Per’ is the means that ‘Component Order Qty’ is/was calculated.
EXAMPLE If ‘Qty Per’ is set to 2 and the PO Line is for 10 of the Parent item, then the Component Order Qty is calculated as 20.
Enter Component Qty: When checked, indicates that the Quantity for this component is to be entered directly as Component Quantity. In this case, the Qty Per will be calculated automatically.
Fixed Component Qty: When checked, it indicates that the Comp Qty is fixed and independent of the PO Qty.
EXAMPLE PO is for 10, and the Fixed Component Qty is set to 5, the ‘Component Order Qty’ is then set to 5, and the ‘Qty Per’ is set to .5
Qty Per: This is the Quantity Per for this Subcontracted Component.
Component Qty: When either ‘Enter Component Qty’ or ‘Fixed Component Qty’ is selected, the quantity is entered in this field.
Buttons (In Classic)
Click the New PO Components Demand button to bring up the PO Components page in Add mode.
Fields
Qty Req: The current total Quantity required for the given PO Line.
Date Required: This is the Date required for the given Subcontracted Component, given the lead time offsets.
NOTE This field 'Date Required' is automatically updated based on the 'Due Date' of the Purchase Order Line. However, if a PO Line has one or more PO Component Demands that are already in-process ('Qty Issued' or 'Qty Allocated' is greater than zero) and the 'Due Date' of the PO Line is changed, the system will not update the 'Date Required' on those PO Component Demands to the new 'Due Date' value. This change to the PO Line's 'Due Date' does not impact the PO Component Demands that have already been picked and sent to the vendor.
Inv Division: PO Component Inventory Division.
Enter Qty Per: When checked, indicates that ‘Qty Per’ is the means that ‘Component Order Qty’ is/was calculated.
EXAMPLE If ‘Qty Per’ is set to 2 and the PO Line is for 10 of the Parent item, then the Component Order Qty is calculated as 20.
Enter Component Qty: When checked, indicates that the Quantity for the given component is to be entered directly as Component Quantity. In this case, the Qty Per will be calculated automatically.
Component Item Number: This is the PO Component Item Number for the subcontract component.
Backflush Policy Indicator: The Backflush Policy for the given PO Component. It defaults from the Inventory Commodity Code and can be one of three choices: No Backflush, First Operation, or Last Operation. Components with either First or Last Operation will backflush at PO Receipt.
‘No Backflush’ components can be issued using the PO Issue function.
NOTE Serialized items may not be backflushed.
Inv Site: PO Component Inventory Site from which inventory will be issued.
Issue From Inventory Location ID: The Location ID from which inventory will be backflushed upon PO Receipt. Location ID must be a backflush location and a Vendor Location for component backflush to be processed using this Location ID.
NOTE It must be a valid Location ID for the given Inv Site.
Qty Per: When “Enter Qty Per” is checked, the quantity per field is enabled, and the value is entered here.
Component Qty: When either ‘Enter Component Qty’ or ‘Fixed Component Qty’ is selected, the quantity is entered in this field.
Qty Req: The current total Quantity required for this component to support the Qty of the given PO Line (PO Line Qty X Qty Per).
NOTE This is a calculated field and cannot be entered directly. This is the Date required for the given Subcontracted Component, given the lead time offsets.
Inv Site: PO Component Inventory Site from which inventory will be issued.
Issue From Inventory Location ID: The Location ID from which inventory will be backflushed upon PO Receipt. Location ID must be a backflush location and a Vendor Location, for component backflush to be processed using this Location ID.
NOTE It must be a valid Location ID for the given Inv Site.
Backflush Policy Indicator: The Backflush Policy for the given PO Component. It defaults from the Inventory Commodity Code and can be one of three choices: No Backflush, First Operation, or Last Operation.
NOTE Serialized items may not be backflushed.
Allocate / Deallocate Buttons
When allocations are active, click on the ‘Allocate’ button to allocate any available inventory or, conversely, click on the ‘Deallocate’ button to deallocate already-allocated components (that have not yet been picked).
NOTE Backflush items will be backflushed upon PO Receipt, even when not allocated. Non-backflush items set to be allocated need to be before being able to issue using the PO Issue program.
Grid Maintenance Button
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Click on the button to bring up the Grid Maintenance popup
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To add rows for new PO Components, click on the ‘Add’ button.
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Once data is entered on all fields, click on ‘Save’.
NOTE There are columns to the right of what is visible in the popup that you need to use the scroll bar to access.
Options (in Lightning)
Grid Maintenance
Select this option and click Next to load the PO Components List grid. This allows the user to add a new Component, edit, or delete existing PO Components.
Allocate / Deallocate
When allocations are active, select the 'Allocate' option and click Next to allocate any available inventory. Conversely, select the 'Deallocate' option and click Next to deallocate already-allocated components (that have not yet been picked).
Processing
Follow the standard procedures to Add a Subcontract Purchase Order line and Submit the PO to Vendor so that the PO is receivable.
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Using the Subcontract Component button (see above), access the PO Components page and perform any necessary maintenance (adds, deletes, changes)
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Issue components to the Purchase Order Line using the Subcontract Purchase Order Issue function. You may also use the Subcontract Purchase Order Issue Reversal function if necessary to reverse any issued components.
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Receive the Purchase Order Line using the Purchase Order Receipt for doing so. When the PO Line for subcontract items is received:
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The subcontract item is received into the Inventory Location specified during the PO Receipt.
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Backflush Subcontract Component Items are backflushed, decrementing inventory by the component required quantity (BOM Qty Per x PO Line quantity received).
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Backflush transactions can be viewed by going to the ‘Inventory Management’ menu > Inventory Cost Transactions and are identified with the Transaction Type = POISS (and reversals as POISSR).
IMPORTANT If necessary, PO Receipts can be reversed using PO Receipt Reversal.
NOTE Backflush components previously issued will be reversed on a PO Receipt Reversal but will NOT be reversed on an RTV transaction.
SEE ALSO
Subcontract Purchase Order Overview
Subcontract Purchase Order Component Setup
Subcontract Purchase Order Component Issue
Subcontract Purchase Order Issue Reversal
PO Demand
Purchasing Overview
