In this task your work center supervisors will generate and receive POs for subcontract services performed during the course of jobs.
Education:
Shop Control Guide - Subcontract Service Processing.
Screen Help - Job Subcontracting
Subcontracting Screenshot Series
Video - Shop Control Guideline Job Subcontracting
How are subcontract services defined in jobs?
Subcontract services are defined in the job Routing tab as a routing sequence, for scheduling purposes, and in the job Details tab as a job line, for purposes of PO generation in this screen. The job line gets created automatically when the routing sequence is created.
When are subcontract POs generated?
Unlike POs for purchased items, which are generated in advance of jobs, subcontract service POs are generated only when they are needed, which is during the course of the job when a job routing sequence calls for items to be sent out for outside processing.
How are subcontract Est Costs handled?
The Est Cost for subcontract services comes from the BOM Subcontract routing sequence. When you verify your pricing as you send out your subcontract POs, for signifianct changes you should update your Est Costs directly in the parent item BOM Subcontract Routing and then perform a BOM Cost Rollup to enact the change. Actively managing your Est Cost for your BOM Routing costs as you send out your subcontract POs will ensure your costing is in line with your expectations.
Subcontract Workflow
•Release the Job to production that includes a Subcontract routing
•Perform a Job Issue of the materials that you will be sending to the Subcontractor. This can be done from the Jobs > Job Subcontracting screen material icon.
•Go to Jobs > Jobs Subcontracting and generate the Subcon PO.
•Send the materials out with the Subcon PO. You can optionally use the Job Issues Dispatch report as a supporting document.
•The Subcontractor provides their services and returns the materials.
•Perform a PO receipt of the Subcon PO. This will issue the per unit subcontract costs to Work in Process for the parent Job.
•Complete the Job and perform a Job Receipt of the finished good output. The final output cost will include the subcontract costs.
Training Tasks:
•Generate POs for all sequences listed inj the Job Subcontracting screen.
•If no sequences are listed in the Job Subcontracting screen, manually create and release a job for the 1081-150, Wagon Body Painted, and generate a PO for its subcontract sequence.
•Receive the subcontract POs.
Subcontract POs Guideline
Process subcontract POs in real time
Shop control depends on timely updating of all job sequence processes. It is therefore essential that POs for subcontract job sequences are generated in real time as needed through the Job Subcontracting screen and are received in real time through the PO Receipts screen.
