OVERVIEW
Objectives
- A “virtual” operation needs to be added for an internal cost (cost allowance or overhead recovery cost for the manufacturing order), whether production is done in-house or subcontracted.
- The “virtual” operation needs to be auto-reported and auto-received so that users don’t have to do unnecessary processing in PMS070/Report Operations. When Manufacturing Order has subcon/tolling operation, Goods Receipt in PPS300 takes the user to PMS050 to do Report Receipt on the MO and this will automatically do the PMS070/Report Operations for the “virtual” operation.
PRE-REQUISITES
PDS010-Work Center
- Work center for subcontract/tolling operation - should be Resource Type 2-Subcontract
- Work center for “virtual” in-house operation – should be Resource Type 1-Operation; this cost is not being paid to the supplier
- For this example, we are using WC 100 as the “virtual” operation and 900100 as the tolling operation.
PDS010-Work Center Settings – “Virtual” Operation (WC 100)
- PDS010/E – Resource type to be 1-Operation
- PDS010/F
- PDS010/G
- PCS100/B
PDS010-Work Center Settings – Tolling Operation (900100)
- PDS010/E – Resource type to be 2-Subcontract
- PDS010/F
- PDS010/G
- PCS115/B
PDS001-Product Structure, PDS002-Materials and Operations and PDS003-Options/Line
- “Virtual” operation to be prior to controlling operation; for example, Operation/Work Center WC 100 added as SeqNo 0001
- Subcontract/tolling operation as the last and the controlling operation for this scenario; Operation/Work Center 900100 kept as SeqNo 0010
- If there are more operations, make sure that the operation/sequence number for the controlling operation is after the “virtual” operation.
- Settings to be done in family item; for this example, family item is 018175
PDS001-Product Structure
PDS002-Materials and Operations
a. Item: 018175, Facility: K10, Structure type: 001
b. Right click on each operation line => Change in PDS002/G and PDS002/H
c. Right click on each operation line => Related => Options/Line
PDS002 => PDS003-SeqNo0001-WC 100 – “virtual” operation
- PDS002/G – Subcontr ctrl = No orders
- PDS002/H – Tick/check Auto receipt; Auto reporting = 1-Yes
- PDS003-Options/Line
Right click on Op0001-WC 100 operation line => Related => Options/Line
All Options for all package sizes so that this will be included when MO is raised for any size.
PDS002-PDS003- Op0010-900100
- PDS002/G – Subcontr ctrl = 1-Pur + Req order
- PDS002/H – Unit price; Tick/check Auto receipt; Auto reporting = 2-Ctrl operation; Supplier
- PDS003-Options/Line
Right click on Op0010-900100 operation line => Related => Options/Line
Option is only for BULK package size
PDS002-PDS003- Op0020-900100
- PDS002/G – Subcontr ctrl = 1-Pur + Req order
- PDS002/H – Tick/check Auto receipt; Auto reporting = 2-Ctrl operation
- PDS003-Options/Line
Right click on Op0020-900100 operation line => Related => Options/Line
Option is only for 1100 KG package size
PDS002-PDS003- Op0030-900100
- PDS002/G – Subcontr ctrl = 1-Pur + Req order
- PDS002/H – Unit price; Tick/check Auto receipt; Auto reporting = 2-Ctrl operation; Supplier
- PDS003-Options/Line
Right click on Op0030-900100 operation line => Related => Options/Line
Option is only for 1000 KG package size
MANUFACTURING AND PURCHASE ORDER PROCESSES
Create and process MO
- Create MO in PMS001 and go to PMS100
- Check Materials and Operations and Allocate Raw Materials in PMS101
- Issue Raw Materials in MWS410
- Check Planned PO from PMS100 in MWS150-Supply Chain or go to PPS170
- Approve/Release Planned PO – Planned PO will be replaced with PO
Receive Subcon PO
- Goods Receipt in PPS300 – this should take us to PMS050
- Check MO and Materials and Operations statuses – should be 99 for Materials and 90 for Operations
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