Many manufacturers utilize subcontractors to do part or all of the manufacturing. The subcontractor might be working “on-site” or visiting your own manufacturing location.
Manu Online supports the purchase of subcontract services to work orders. The services may be preplanned and agreed (i.e. with a standard contract price) or purchased directly to a work order on a purchase order.
You can optionally set up the purchase process to show a different “deliver to” address if you are buying the service to a remote location such as a second subcontractor. Also note that you can use the “standard texts” feature of Manu Online if you have more detailed information that should be on every purchase order for a certain supplier.
Purchased subcontract services can be received to a work order and matched to a purchase invoice.
There are options to set up routing of work orders through a subcontractor’s location and to enable subcontract personnel to access work order progression. This article, however, shows how to implement the purchase of subcontractor services with purchase orders, and by specifying an external delivery location.
Set Up
For buying subcontract work two things are needed:
- items for purchasing
- subcontractors as partners
Create items with the subcontract jobs type.
Create subcontractors as partners.
Optionally, add the new subcontract item to your product structure to item card. Do this for preplanned manufacturing. Subcontract items can also be purchased to a work order even if it is not part of the original manufacturing template.
Create the production work order.
Buy work from the subcontractor by making a purchase order and marking the line to be directly to the work order. The order price will be used as a cost in your work order. You can purchase directly to work order which records the received qty directly to work order and doesn’t require separate picking.
Working with a chain of subcontractors.
Mark the second or subsequent subcontractors as a “Stock location”. Even though stock is not being kept at these locations, it means the purchase order to the first subcontractor can be marked with a “deliver to” address of the second subcontractor. The drop down list of the “Deliver to” address shows all partners that are marked as a stock location.
And make another PO for second subcontractor with your own company as Deliver to-address.
This way cost from both orders are included in the work order and it can be delivered customer with normal dispatch process.