Outside operations

[prasach]

Hi friends,

I have a question in the case of outside operations.How do we keep a track of the item stock.For example in a outside operation the system creates a *OP item of raw impeller which is to be sent outside for processing & comes back as a finished impeller.In such a scenarion how will the stock move.

Thanks in advance

Regards

Sachin Bhate

 

[rekblad]

This process creates a "regular" PO that you can manage as you would any other. At time of receipt a screen (Routing Quantities and Status) should appear automagically to completed the outside process (as identified in the routing). In other words, it is issued directly to the Work Order at time of receipt.
As far as the physical movement at the time of receipt, you have to inform the warehouse what to do with the item -- perhaps a receiving location on the PO or receipt routing??

 

[DSauve]

Sachin,

To add to Rob's remarks, you should not have any of these *OP parts in stock. If you do, there is another problem (maybe they were manually added to a regular "OP" purchase order instead of being on an "OO" order).

 

[prasach]

Hi Rob,

Thanks for the reply.I will tell you the exact problem.I have a finished end item X for which there is a raw item X1 which i want to give for outside processing.The system creates PO for a *OP item correspondingly.The item which goes out of the store is X1 & the finished item recieved is X.I do not think the system handles the inventory of this X & X1 items correctly.
I hope i have made it clear the problem

Regards

Sachin

 

[prasach]

Hi Don,

Thanks for the reply.I will tell you the exact problem.I have a finished end item X for which there is a raw item X1 which i want to give for outside processing.The system creates PO for a *OP item correspondingly.The item which goes out of the store is X1 & the finished item recieved is X.I do not think the system handles the inventory of this X & X1 items correctly.
I hope i have made it clear the problem

Regards

Sachin

 

[rekblad]

OK... The BoM should have X as the finished good and X1 as the raw material (*OP) and a line indicating the outside processing on the routing. The outside processing will provide the raw material for the Work Order. The *OP receipt will issue the X1 to the WO. Next complete the work order and an X will go into stock as a finished good.
As noted, you should NOT have any inventory of the *OP item (X1).

 

[DSauve]

Rob,

I'm wondering if you can configure *OP items to behave differently in different environments, because here is how ours work:

As you state, the BOM for the finished item X has X1 as the raw material, but this X1 is not the *OP item. The fact that you indicate an outside processing on the routing will dictate that the *OP item will be required. When you run work order processing (R31410), the "OO" purchase order for the *OP item will be automatically created.

You will issue the X1 raw material to the work order for item X, just as for any WO component. When you go to send out the partially completed item X for outside processing, you are providing materials for the outside processing (which may be X1 and/or any other items required on the pre-outside processing assembly). Then when you receive in the "OO" purchase order, the outside processing routing step is completed and the *OP item is issued DIRECTLY to the work order -- this is why you should NEVER have any *OP items in inventory.

Finally, when you complete the work order, you will get an "X" into stock.

 

[Krofire.com]

Dear All,

Hmm.. I think this thread lost its way. There is a so-so White Paper on the KG. I will pass to you a few pointers (sorry if I repeat what you have already stated): The "*OP" item is the Finished Goods, not the Raw Material. JDE Subcon does not control the Raw Material at all. The Raw Material is not issued to anything other than the Work Order Parts List. (You can, of course, have a Phantom item for the Part, the Subcontractor returns to you, but it will not be stocked at any point OR received. It does not exist.)

The *OP item does go into the Cardex.... When the *OP Item is received through P4312 the P3103 Routing Quantities & Status Window appears. You HAVE to click OK here. If something goes wrong or you change the quantity then you will have some Quantity in stock. This is because the P4312 books it into stock and P3103 then "issues" it back to WIP as an IM transaction in the Cardex. This may cause you Inventory valuation problems so you need to be careful that you book out the same quantity you booked in. The value of the *OP Item is used for Product Costing & Accounting. The Accounting for the Subcontract happens when R31802 detects that the Quantity has passed through the Operation. It compares the F3112 quantity to the F3102 Production Cost Table D1, D2, etc Actual Quantity and calculates the Net value. You cannot repeat the D1 Cost Type on the Route otherwise this creates Duplicate Journal Entries. (If you want to know more I can explain exactly how this happens)

This is the only transaction that works this way in the Mfg Route. However (getting off the topic a bit) Scrap is calculated in a similar way on the WO Header by R31802.

The *OP Item does NOT appear on the BOM. You can use a Phantom if you like (as I mentioned above) but the end result is the same. You issue Raw Material only to the WO. Rob's answer is right, if you see what he means, but it reads in such a way that could be misinterpreted. Just thought I should make these few points clear. Hope this helps. Cheers Rob - hope I meet you one day.