Handle Supplier Material
Explanation
When outsourcing, you have to send the material to your supplier, which is needed to either manufacture or to
pack the parts that you in turn will purchase. Before you can send the material from the purchase order, you should
manually reserve the material in inventory. This is done in Supplier Material for Purchase Order Line
page.
Note that in the Supplier Material for Purchase Order Line page, there may be component lines for which
the Backflush option may have been enabled. These components do not require any reservation or picking; they
will be automatically issued at purchase order receipt of the purchase part or top part.
Prerequisites
- In Site/Sales and Procurement/Procurement/General,
Purchase Component Method must be set to Supplier Material.
- The purchase order header must have been released.
- The material lines must have been entered.
System Effects
- The material will be reserved in inventory after performing the reservation. This is an automatic reservation
to ensure that the user does not bypass every reservation of supplier material from other reservations for
demands. A pick list can also be printed.
- The inventory from which the parts are available for reservation, depends on the supply code you have set and
whether the purchase order line has been connected to a project activity.
- If you have connected the purchase order line to a project activity and set the supply code to
Project Inventory, parts can be reserved from the project inventory of the connected project
only.
- If you had connected the purchase order line to a project activity and set the supply code to Invent
Order, parts can be reserved only from the standard inventory on behalf of the connected project
activity.
- If the purchase order line is not connected to a project activity, reservation can only be done from the
standard inventory.
- DOP (dynamic order processing) can also create purchase order lines with the supplier material passed on to
the purchase order line from the DOP structure. In such cases, the supply code of a supplier material line will
be set to either DOP Order, Invent Order or Project Inventory.
If the supplier material line is pegged to the DOP structure, the supply code is always set to DOP
Order. Else the supply code is set to either Invent Order or Project
Inventory depending on whether the part will be reserved from the standard or from the project inventory
of the connected project. When the supply code is DOP Order, the supplier material line will be
reserved from the standard inventory if the connected purchase order line is not connected to any project
activity. Else, the connected purchase order line is connected to a project activity, and the supplier material
line will be reserved from the project inventory of the connected project.