on 04-02-2014 6:28 PM
Hello,
We want to have an external operation where a vendor burns a plate of steel into a ring and sends it to us. The vendor will provide the material, not us. We will then finish processing it from a ROH to a HALB on the same production order.
The BoM has the raw material on it. Typically we would do this work inside, but for capacity reasons we are having the vendor supply material cut to the right shape in this one case.
We are still seeing a Purchase Requisition for the raw material... how can I make this go away and show up instead as a purchase requisition for the external operation?
It is still a Planned Order, not a production order yet.
I've set the control key on the routing to be externally processed. I have also allocated the component (raw sheet of steel) to the operation that will be subcontracted (burn ring).
On the External Processing area I've filled out the Purchasing Organization, Material Group, Purchasing Group, and Cost Element. (We don't have an info record). This isn't really subcontracting because the vendor is supplying the material, so I have not checked that indicator.
I've saved the routing and re-run single-item multi-level MRP, but I am still seeing purchase requisitions for the raw material.
Thanks for your help.
Timothy
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Hi Tim
It may be due to the fact that you are using an external processed operation instead of subcontracting by means of a special procurement. I made some research and I found note 52161, which states the following:
No reservation is created for this component if the finished product is procured by means of subcontracting (special procurement key 30) and if the material provision indicator for the provision of material to a vendor is set in the BOM item. The material is procured in this case by the vendor who also carries out the subcontracting. In all other cases, the materials planning creates a standard dependent requirement.
I'm sorry for the misleading information previously provided.
I can suggest you to try setting the 'bulk material' indicator on the BOM.
BR
Caetano
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