Inventory : Inventory Workflows: Subcontracting with Component Resupply
Purpose
This document covers the workflow associated with purchasing a sub-contracted product in which you supply the components to the vendor.
Getting Started
Enable Subcontracting
FIrst, navigate to the Manufacturing app.
Once there, click Configuration > Settings and enable Subcontracting.
When you're ready, click Save.
Next, navigate to the Inventory app.
Product Configuration
Once there, go to Products > Products. Here you can either Create a new product, or open and edit an exiting product. A product that is purchased from a sub-contractor, using your components, must have a specific configuration. The key areas of configuration as as follows:
Can be Purchase: Enabled
Product Type: Storable Product
Under the Purchase tab, click add a line. From here, add the subcontractor as a vendor.
Under the Inventory tab, set the Route to Buy.
Save the product but stay on the page.
Bill of Materials (BoM)
From the product, click the Bill of Materials smart button.
Next, click Create. Complete the following fields:
Product: The product being manufactured.
Product Variant: Select a variant, if it applies.
Quantity: Quantity of finished products this BoM will produce.
Reference: Leave this field empty.
BoM Type: Set this to Subcontracting. Once selected, you'll then add the Subcontractor(s) with the ability to manufacture this product for you. This field should match at least one of the vendors you selected on the product template.
Company: This field, if visible, pre-populates with the company you're working in.
Under the Components tab, click Add a Line and select your product component. Repeat this for every component.
When you're done, click Save but stay on this page.
Component Route Configuration
Click a product under the Components tab and then click the External link.
This takes you to the product template. On the Inventory tab, select the Route Resupply Subcontractor on Order. Click Save when you're done, which will bring you back to the Bill of Materials..
Process
Navigate to the Purchase app.
Create the Purchase Order
Go to Orders > Purchase Orders, then click Create. Use the form to make a Purchase Order from your selected Subcontractor for the product you configured to be manufactured. When you're done, click SAVE.
Then click CONFIRM ORDER.
Review + Process Transfers
Navigate to the Inventory app.
Once there, click Operations > Transfers. Then, using the Group By menu, select Add Custom Group, then choose "Contact" from the drop-down list. Click Apply.
Send the Components to the Subcontractor
From the list, locate and expand the section for your Subcontractor and click the delivery (.../RES/...) transfer.
From within the transfer, click Check Availability to reserve the products.
Once products have been reserved, you will click Set Quantities which will match Reserved quantities into the Done column, then click Validate.
Use the breadcrumbs to navigate back to the transfers.
Receive the Finished Product from the Subcontractor
From within this record, click Validate to confirm you've recieved the product. Make a note of the incoming transfer (Receipt) number. In this case, it would be WH/IN/00001. You'll need this for the next step!
Review Stock Moves
From the Inventory app, click Reporting > PRODUCT MOVES. From this page, search for the finished good and component products to display their product moves.
