Enter Components to Send to Supplier

Explanation

When outsourcing you have to send the material to your supplier, which is needed to either manufacture or to pack the parts that you in turn will purchase. When entering the purchase order line, any components entered in a product structure in IFS/Manufacturing Standards is copied to the purchase order line. In case a product structure is not used, you can manually specify the components. These parts will be sent to the supplier with each purchase order. You should also reserve the material in inventory if it is not automatically done by the system.

This function does not allow you to charge, i.e., sell the material or the components to your supplier. Therefore, when the material is sent to the supplier it is always considered as work in progress and accounted as such.

Depending on the requirements or practices of your industry, instead of sending the component parts with each purchase order, you can backflush them. Backflushing involves transporting the component material to a special backflushing location in advance, and automatically issuing the components as and when the purchase parts (top parts) are received from the supplier. There is no need for reservation or picking, as the components are to be directly issued.

In case a product structure is not used (or when you have manually entered a component line), you must select the Backflush check box and specify a backflushing location in the Supplier Material for Purchase Order Line window. Otherwise these values would be used by default for every product structure, in IFS/Manufacturing Standards. Note that backflushing is enabled per component line; therefore you could choose to backflush some components and send the other components through the normal supplier material flow.

Prerequisites

• The purchase order line must have been entered and saved.
• Prior to reserving the material, you have to enter it and indicate the quantity.
•  The Purchased Component Method field on the Site/Sales and Procurement tab should be set to Supplier Material for the system to enable issuing component parts using the Supplier Material for Purchase Order Line window.

System Effects

• The component parts will be connected to the purchase order. The material will be reserved in inventory after performing the reservation.
• If you had chosen to backflush, the automatic issuing of component parts from the backflushing location will be enabled. This is a direct issue to the supplier, and will take place as and when purchase parts and top parts are received (at purchase order receipt).

Window

Supplier Material for Purchase Order Line

Related Window Descriptions

Supplier Material for PO Line
Purchase Order
Purchase Order/Part Order Lines

Procedure

In the Supplier Material for Purchase Order Line window:

1. Query for the purchase order to which you want to connect the component parts.
2. Click New.
3. In the Component Part field, specify the component part (the inventory part) that will be connected to the purchase. Either enter the code for the sales part or select it from the List of Values. If applicable, you can indicate a condition code in the Condition Code field.
4. Enter the date on which the supplier needs the component parts. 
5. In the Qty per Assembly field, specify how many component parts are needed to manufacture or pack each purchase part.
6. To issue components using backflushing, select the Backflush check box. Also specify a desired picking location as the backflushing location in the Backflush Location field.
7. In the Supply Code field, select either Inventory Order or Project Inventory. 
   (The Project Inventory supply code is allowed only for purchase order lines that are connected to project activities. In such cases, parts can be reserved and picked only from the project inventory of the connected project)  
8. Save when completed.
9. Repeat steps 3—9 until all the component parts are entered. Then close the Supplier Material for Purchase Order Line window.

In the Purchase Order window:

1. Query for the purchase order to which you want to connect the component parts.
2. On the Part Order Lines tab, select the desired purchase order line and choose Supplier Material in the Operations menu. This opens the Supplier Material for Purchase Order Line dialog box.
3. Click New.
4. In the Component Part field, specify the component part (the inventory part) that will be connected to the purchase. Either enter the code for the sales part or select it from the List of Values. If applicable, you can indicate a condition code in the Condition Code field.
5. Enter the date on which the supplier needs the component parts.
6. In the Qty per Assembly field, specify how many component parts are needed to manufacture or pack each purchase part.
7. To issue the components using backflushing, select the Backflush check box, and specify a desired picking location as the backflushing location in the Backflush Location field.
8. In the Supply Code field, select from either Inventory Order or Project Inventory.
   (The Project Inventory supply code is allowed only for purchase order lines that are connected to project activities. In such cases, parts can be reserved and picked only from the project inventory of the connected project) 
9. Save when completed.
10. Repeat steps 3—9 until all the component parts are entered. Then close the Supplier Material for Purchase Order Line window.