We are a manufacturer using SFC module for the production activities.

Recently, there is a requirement to implement sub-contracting to sub-contract out one of the in-house operation.

We are able to create the sub-contract operation and successfully generate the sub-contract PO for the vendor.

However, we are not clear how to handle reject when the vendor works does not pass our QC check. We want the vendor to rework on those part.

Here are the questions:
1.As we want the vendor to do rework (free of charge), we can’t enter the reject quantity in Baan. So, we do not know how do proceed.
2. How to stop finance from matching the receipt and preventing from paying the vendor whenever there is a reject.

Mant thanks in advance.

You should reject in the Purchase order itself and bring the rejected piece under a different production order and purchase order.

Arvind Patil

hi
eg: you have create a subcontracting purch ord with qty 100 pcs for item (X1). then found the reject is 15.
you still need to receive the purch ord first .without complete the related prod ord.

then you create a new purch ord using cost item which is represent the mfg item (you can use "X1." ) :
line 1 = with qty "-15" then you can process the shipment like usual.(when you return it to the supplier)
line 2 = with qty "15" then you can receive it. (after you receive it again form the supplier).

after that then you can proceed to report order complete the related prod ord.

You should reject in the Purchase order itself and bring the rejected piece under a different production order and purchase order.

Arvind Patil

Dear Arvind,

Is there any option in LN FP2 to reject the incoming inventory a Subcontracting Purchase Order???:confused:

In Baan IV the subcontract PO is not for material but only for services. I haen;t tested it but if one can "Maintain Approvals" it can cause rejection. The same can be then updated in production order also. In Baan IV the PO receipt process and productuion operation process doesn't get updated automatically means- the qty completed and rejected. We did some customization to update them.

Arvind PAtil