How to deal with situation:

1. keep track of inventory of raw material and finished product
2. the raw material is from customer, which means no payment
3. production line needs production order from system to work

question:

1. how to receive the raw material
2. how to issue the raw material

ln has standard procedure for this.

thank you

jim from shanghai

Hi,

You can receive the material through Warehouse Order of Type Purchase (Manual), there isn't any impact of this Purchase (Manual) to the accounts payable. & for the Issuance of Material you hav to follow thw normal Issue Process through SFC Production Issue if you are raising a Production Order for your Job-Work Order. In case you don't want to keep the record of Production Order you can directly Issue the Material through a SFC Issue (Manual) to any work center.

Hi Verma

I also thought about your approach. One thing is that I have to keep the cost of raw material ZERO, which means an unique item code in order to seperate the same item purchased with value.

service module seems a bit of relivent to this matter. however, it is not complete. I don't konw because I have no experience in service module.

do you know how to use : warehouse type(service customer owned)

thank you

-jim from shanghai

Hi,

There is no standard procedure for Job Work in LN.

For that we can go for some customization.

Few Points for Job Work

1) Only Operation cost will presnent for the Production Order.
2) There is no Raw material cost against the Production order (If the materials supplied by the customer).
3) If you use the Planning engine in your company, it should not generate planned purchase orders against that demand.
4) The material should be easy to track against the customer.
5) Localization Part also (if any).

Solutions:

1) Copy complete BOM with raw materials against the Project.
2) Make the Raw material cost as Zero in Purchase Subentity by using your own customized session.
3) Delete the planning subentity data by using your own customized session. (be careful while deleting the data by using customized session)
4) Calculate the Project cost
5) Raw material receipts by warehouse order (type - Purchase manual).
6) Create the production orders
7) Issue the Material against production order.
8) If you calculate the costing against production order it will consider operation cost only.

Note: 1) Receipts should be done against the customized rawmaterial (means standard item prefixed by project code).
2) Create the production orders for customized manufactured items only.

Regards
Santhosh

In LN FP5 there is new functionality on subcontracting. FP5 is now supporting both the manufacturer and the subcontractor role with respect to ownership of goods.

Hi Santhosh

your idea is what I am implementing. Thank you.

Hi ARijke

As to FP5, I don't know if it has any modification of step of subcontracting order : orignal step to create a subcontracting order:

1. setting all parameter
2. create production order in SFC module
3. generate purchase order based on that production order.

You know , it causes huge problem to consultant as me, because only purchase department takes care of this subcontractint order, and they have to nevigate to SFC module to create, and close the prodution order that relies on warehouse receipt and finiance invoice.

The result is none of our client happy with it, and give up the complicated step.

-jim

Hi Jim,

The whole subcontracting procedure is upgraded in FP5.
If you need further details please visit infor365.

From the version definition I have the following:
New functionality is provided to support the material handling of the components
and the work in process that are sent to the subcontractor. A solution is provided
for the manufacturer that purchases subcontracting activities and for the
subcontractor that executes them. Manufacturer:When an operation is
subcontracted the WIP (called subassembly) and components can be sent to
the subcontractor specifically for a specific production order. The subassembly
and components can be sent to the subcontractor together in one shipment. It
will also be possible to send components in batch mode anonymously to the
subcontractor. In that case it is also possible to send the components from a
supplier directly. It will be possible to monitor the inventory levels of the
subassemblies and components that reside at the subcontractor site. The product
that is received from the subcontractor can be considered as normal item.
Standard warehousing functionality is applicable to this item.It will take some
time to move subassemblies to and from the subcontractor, therefore additional
lead times can be defined before and after a subcontracting operation. Based on
information received from the subcontractor the manufacturer can change the
planning automatically.Besides subcontracting of specific operations,
subcontracting of production processes of entire items will be supported. In this
case a purchase order is created for a specific item. The components that are
required for the subcontracting activities can be sent to the subcontractor too.
Subcontractor: The functionality for the subcontractor provides the ability to receive
materials that are owned by the manufacturer. Those items are stored against a
certain value (using current valuation logic). The actual cost of those items are
however zero when they are consumed in a production order.

Hope this helps, Adriaan