Handle Supplier Material
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.
Before you can send the material from the purchase order, you should manually reserve the material in
inventory. This is done in Supplier Material for Purchase
Order Line page.
Note that in the Supplier Material for Purchase
Order Line page, there may be component lines for which the Backflush
option may have been enabled. These components do not require any reservation
or picking; they will be automatically issued at purchase order receipt of the
purchase part or top part.
Prerequisites
- In Site/Sales and Procurement/Procurement/General,
Purchase Component Method must be set to Supplier Material.
- The purchase order header must have been released.
- The material lines must have been entered.
System Effects
- The material will be reserved in inventory after performing the reservation.
This is an automatic reservation to ensure that the user does not bypass
every reservation of supplier material from other reservations for demands.
A pick list can also be printed.
- The inventory from which the parts are available for reservation, depends
on the supply code you have set and whether the purchase order line has
been connected to a project activity.
- If you have connected the purchase order line to a project activity
and set the supply code to Project Inventory, parts can be reserved from
the project inventory of the connected project only.
- If you had connected the purchase order line to a project activity
and set the supply code to Invent Order, parts can be reserved only from
the standard inventory on behalf of the connected project activity.
- If the purchase order line is not connected to a project activity, reservation
can only be done from the standard inventory.
- DOP (dynamic order processing) can also create purchase order lines
with the supplier material passed on to the purchase order line from the
DOP structure. In such cases, the supply code of a supplier material
line will be set to either DOP Order, Invent
Order or Project Inventory. If the supplier
material line is pegged to the DOP structure, the supply code is always
set to DOP Order. Else the supply code is set to either
Invent Order or Project Inventory
depending on whether the part will be reserved from the standard or from
the project inventory of the connected project. When the supply code is
DOP Order, the supplier material line will be reserved
from the standard inventory if the connected purchase order line is not
connected to any project activity. Else, the connected purchase order
line is connected to a project activity, and the supplier material line
will be reserved from the project inventory of the connected project.