Handle Supplier Material
Explanation
When you outsource, you’ll need to send materials to your supplier so they can manufacture or pack the
parts you plan to purchase. Before shipping materials from the purchase order, component lines must be linked to a
shipment. Depending on the shipment type, this connection can happen automatically or manually through the
Available Lines for Shipments page after releasing the purchase order. Outbound shipment processing allows
components to be reserved, picked, packed, and shipped from the designated shipment.
Note:
- The default shipment type is listed in Supplier/Address/Outbound Address.
- Reserving the material from inventory is also possible from the Components for Purchase Order
Line page.
- On the Components for Purchase Order Line page, some component lines might have the
Backflush option enabled. For these components, no reservation or picking is required, they will be automatically
issued when the purchase part or top part is received with the purchase order.
Prerequisites
- In Site/Sales and Procurement/Procurement/General,
Purchase Component Method must be set to Shipment.
- Likewise the toggle "Deliver with Customer Order" on the component line needs to be set to
false.
- The purchase order header must have been released.
- The material lines must have been entered.
System Effects
- The outbound shipment can be used to send material to the supplier.
- The material will be reserved in inventory after performing the reservation.
- 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.