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. You can choose to either charge, i.e., sell the material or the components to your supplier, or not charge the supplier for the material and components that you supply to the supplier.
In IFS Cloud, there are two different ways of running outsourcing:
Below explanation refers to the option Shipment. In Site/Sales and Procurement/Procurement/General, Purchase Component Method can be set to Shipment to set as default for newly created purchase order component lines.
Using the shipment method, will use the outbound shipment to reserve, pick and send the material to the supplier. In this scenario it is not possible to charge these items. It is only possible to use this method for Demand Codes: Invent Order, Cust Ord Trans, Int Demand and DOP on the Purchase Order Line.
The components added to the Purchase Order Line either manually or by a Purchase Product Structure can be connected to a shipment once the purchase order gets released. The connection to a shipment can be done in Available Lines for Shipments page. If the Shipment Type is set to creation method “At PO Release” for Supplier Material, then shipments will be created automatically.
The reservation of the components can either be done from the Purchase Order Line Components page or from the Shipment itself.
In the Purchase Order Line Components page, there may be component lines for which the Backflush option is 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. In this scenario no shipment will be required.
Before you can use the shipment process, some basic data must be set up:
When entering the purchase order line, any components entered in a purchase product structure are copied to the purchase order line. If a product structure is not used, you can manually specify the components. This is done in the Purchase Order Line Components page reached by selecting the purchase order line and choosing Component Parts... in the Operations menu. In this page, you also can view the components that are automatically retrieved from the product structure. You can add, remove, and modify components in this page until the purchase order line is released.
If the component parts are retrieved from a product structure, the quantity required is the quantity entered in the product structure, multiplied by the quantity ordered on the purchase order line. The date required is set to the latest order date for this purchase order line.
When releasing the purchase order, the component become available to be connected to a shipment.
The components that you need to ship to your supplier can be connected to a shipment from the Available Lines for Shipments page (respectively from the Available Lines tab in Shipment).
If the shipment type is set to shipment creation method "At PO Release" for Supplier Material, the components will be added to an existing or new shipment upon releasing the Purchase Order.
Reserving the components can either be done from the Purchase Order Line Components page or by using the general shipment capabilities.
Picking and shipping, as well as the possibility to Undo Delivery will be done using the shipment capabilities.
At receipt, the first thing we have to check is whether any components should be backflushed. If so, the backflush transaction is registered at the time of arrival.
The purchase order will be handled as a regular order in the receipt function. The criteria for making the receipt is that the material has been shipped.
Components
for Purchase Order Line
Purchase Order
Line Components