Subcontract Purchase Order Component Setup

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System Configuration >  System Header > check checkbox Subcontract Purchase Orders Active.

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Mfg Engineering > Engineering Item Master

  NOTE Subcontract Components may be backflushed, which occurs on PO Receipt, or may be issued discretely using PO Issue. 

 

If the Subcontract Components are to be backflushed, once the Subcontract Component Items are added, navigate to the Inventory Item Master and set Backflush Policy:

Inventory Item Master
 

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Inventory Item Master

Fields

Backflush Policy: Set to First Operation or Last Operation – this makes no difference for backflushing Subcontract Components.

  IMPORTANT If the Subcontract Components are NOT to be backflushed, when the Subcontract Component Items are added, Backflush Policy must be set to a value of  ‘No Backflush’.

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Engineering BOM Master or Engineering BOM Mass Add:  Create a Bill-of-Material (BOM) where the Subcontract Parent Item is the parent and the Subcontract Component Items are the component items.

  IMPORTANT Subcontract Parent Item’s Revision must be set to Implemented

To view the Subcontract BOM, use Engineering BOM Query

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Division Master > Advanced Options tab   
 

If you wish to have Subcontract Components to be allocated, to activate Allocations for a given Division, check ‘Allocation Active’. Once allocation is active, navigate to the Inventory Item Master to set the item to use allocations.

  NOTE A Commodity Code where this is set as the default for Inventory Item Masters associated with the given Commodity Code can also be used

PO Commodity Code
PO Item Master

The default Subcontract Component Issue from Site and Subcontract Component Issue From Loc ID can be set on the component’s PO Item’s PO Commodity Code or overridden directly on PO Item Master.

PO Commodity Code Fields
 

Subcontract Component Issue From Site: The Site from which subcontract components are to be issued. 

Subcontract Component Issue From Loc ID: The Inventory Location ID from which subcontract components are to be issued.

PO Item Master Fields
 

Subcontract Component Issue From Site: The Site from which subcontract components are to be issued.  If checkbox is checked, the Commodity Code value is used. When unchecked, the Issue From Site field is enabled and can be entered as an override to the Commodity Code.

Subcontract Component Issue From Loc ID: The Inventory Location ID from which subcontract components are to be issued. Can only set field directly here if Commodity Code value for Subcontract Component Issue From Site is overridden, & must be a valid Inventory Location ID for the override Site.

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Item / Vendor Master

You may establish Item/Vendor Master records for linking the Subcontract Item and the Vendor used to manufacture it.  Multiple records may be added if more than one Vendor is used. 

  NOTE This step is necessary ONLY if you want to set up specific backflush-from locations for this specific Item/Vendor combination. If that is not required, the Override Backflush Loc ID must not checked.

Locations Tab
 

Fields

Vendor: Vendor that produces the subcontract item.
 
PO Item: The subcontract item.

Override Backflush Loc ID (optional):  Check to define unique Vendor Location IDs for this Item/Vendor from which components will be backflushed.

Vendor Loc ID (optional):  The Vendor Location ID from which components will be backflushed if you have checked the override box above.

  NOTE If the Override Backflush Loc ID and associated Vendor Loc ID is not set on the Item/Vendor Master for the subcontract item, backflushing will occur

Item by Stock Location

Items brought into inventory that will be backflushed in the PO Receipt function, must be located in Inventory Locations where Loc Type = On-Hand and where ‘Backflush Indicator’ and ‘Vendor Location Indicator’ is checked.

 

Backflush Indicator:  Checked

Vendor Location Indicator:  Checked

Available for Picking Ind:  Checked

Loc Type:  On Hand

Items that will not be backflushed need to be in an Inventory Locations where Loc Type = On-Hand, just as any inventory that would be issued to a Work Order.

 

Available for Picking Ind:  Checked

Loc Type:  On Hand