Sub-Contracting

[santosh_kanta3]

Hi Friends,

I have 4 materials. 3 semi finish and 1 finish. 2nd semi finished has to be sent for subcontracting. when i run MRP for the header material and save, then all the 4 materials get Planned orders. is this correct or i should'nt create planned orders for Sub-Contarcting material? please help me.

Thanks & Regards,

Santosh

[Former Member · Accepted solution]

Hi,

Creation of Planned Order is okay,if you always don't get your materials subcontracted.Like,you can mfg. inhouse also or get outsourced.But,in a case u r always getting your certain material subcontracted then you should maintain proc. type n special proc. type as 'F' n '30' in the material master.Also, during MRP,

set'Create Preq.).

Otherwise,you need to conver these planned Oders into Purchase Req. or create Purchase Order manually which as an additional activity.

[santosh_kanta3 · Accepted solution]

Hi Stuti,

Thanks for ur reply. this is what i wanted to know. but there is one problem. when i convert Planned Orders to Pur. Req. for the subcontracted material, our MM colleague send open PO for the Sub-Contracted material. then how to close the Pur. Req. which is pending with me?

Thanks & Regards,

Santosh

[Former Member · Accepted solution]

HI,

In the time of net requirement calculation, system will consider any P.R, P.O which are all available.

If the stock is available,system wont create P.R .

If the stock is less,system will create P.R for required qty.

Regards,

Dharma

[muthusamy_sankaran · Accepted solution]

Hi Santosh,

no need to manual close for pur req because your mm guy already using this pur req after only convert purchase order, so once conveted pur req to pur order, PR will automatically status closed.

Regards,

Sankaran

[Former Member]

Hii Santosh,

There are few things which you need to consider about Subcontracting. Sub-contracting is carried out for 2 types-

1) Operation SubCont. & 2) Material Subcontracting.

I guess you are looking for material SunCon. You need to activate SubCon key (30) in MRP2 for the material which you want to send.

When you run MRP, it will check the system, if you have the stock as per requirement in the system. If the adequate stock is unavailable it will create PR, which you will need to convert in SubCon Purchase Order.

If further clarification required pl come back. Reward if useful

kapil