I would like to know how this issue has been tackled at other companies.

In the session ticpr1160m000 "Maintain Subcontracting Rates" one can maintain rates by tasks. The client says that if 'Grinding" is a task the there might be many items going to the same subcontractor so he cannot maintain the same task code for all items. (This is not possible because that will be a duplicate record)I asked him to maintain separate tasks for for each item but he says that means he has to enter lot of data as many items go for subcontracting.

Regards,
Srinivas

Hi -

We have a very similar situation. We may be sending many different items to the same subcontractor for an identical process at the same time.

We do not create a separate task for each; we simply add line text onto the purchase orders.

In the text, we put the part number, and the exact specs for the subcontracting operation.

Hope this helps.

Regards,

Linda

hi

If u are sending items regularly to the subcontractor, it is better to have separate task per item and separate subcontracting item code (Item type ="subcontracting")with exact part description. So that u avoid the confusion while making "Receipt" also.

Sathasivan

Hi -

Due to the nature of our business, most of our items are of a "one time" nature. We would constantly be needing to create new subcontracting tasks if we did it on an item by item basis. The tasks we use define the subcontract process (plating, coating, etc.) that is being performed.

Our procedure of using text to define the item is working quite well - we are not experiencing any receiving problems.

Linda

Hi,

actually I agree with lindan. It does not make many sense to increase the number of items (and tasks). In the end nobody will be able to get a short overview of what's really necessary.
In our case we have a small number of subcontracting items, typically one for each type of subcontracting operation (coating, grinding...). We got fixed rates for subcontracting tasks with our suppliers that makes it a little more easy.
In case of special rates or modified tasks we change the price in the PUR-orderline and add a text to it.

Martin

I have done work with a foundry where they had a painting operation done by subcontracting. We used a single task called painting. In order to account for the differences in castings we used subcontracting rate factor to adjust the rate to be in line with the size of the piece. In order to define the paint function we used operational text which was included on the subcontracting purchase order.

Our procedure is almost a mirror to vavs123. It works well, and doesn't cause the number of subcontracting items and tasks to be blown into unmanagable proportions.:)

But I would like the manf items's cost price to reflect the actual rate the subcontractor is charging. If I keep one generic task the cost price would not give the true picture as different items might have different rates for same task.

Then I suggest you should opt for "Actual Costing Module" for costing.

It is based on actual rates as per purchase orders.

Amarpreet

If you want to do it simple, I think the best way is to use:

1)One subcontracting Item per company,
2)One subcontracting WC per supplier,
3)One task per subcontracting WC (or supplier),
4)Use operation rate and set the subcontracting rate to 1,
5)Maintain the Subcontracting Rate Factor in the routing, and add the actual price you are going to pay the subcontracter in this field,
6)If you need a detailed description, use operation tekst in the routing,

The actual cost price of the operation is 'Subcontracting Rate*Subcontracting Rate Factor'.

My experience is that this is the best approach to handle Subcontracting in Baan IV, especially when it's one time operations that is done by your Subcontractor.

I have a more detailed description that describes the way to do it, post a personal message if necessary.


Sturla

Sturla - your method is close to how we do ours; the exception is that we have a subcontract item for each type of subcontract task (coat, braze, etc...). Like you suggest, the rate is set to one, and then the rate factor is adjusted on the individual route to the actual amount. We then use the text to detail the name of the part, and the exact specs for the particular order. Works like a charm!:)

Regards,
Linda

We have users that "swear" that the subcontracting text had come from the Production Order/Operation text and not from the item/custom item text that currently is getting printed on the Purchase Order (tdpur440101000) in the "Subcontrating Data" banner for the "Item" text. We are now on "c4" and they believe it happened in "c3". Is anybody aware rather if that is true, I have never worked with c3, only c2 and then c4.

If it is true then how did the logic work in the case right now it will print sub1.txtn or sub2.txtn and itm.txtn in there the item text is defined, which happens in detail.45. Is the text they are talking about coming from tisfc001 or somewhere else? I don't have source code so I will have to place this logic in the report script so trying to over ride current text value with a different value and want to make sure exactly where I should get the "Subcontracting" text from.

Thanks for any advice that is given.

My concern regarding the method suggested by sturla, lindan etc. is that the subcontracting rate looses it's confidentiality & can be accessed / modified by guys in the production process.
We have competing suppliers who might be giving the same value addition ( supplying same parts or providing same services ) at different prices... wouldn't like them to know each other's prices through our production guys :-)