Drop Shipment to the Subcontractor

An enclosure drop shipment to a subcontractor is assigned in an Assembly BOM by selecting the Enclosure and Enclosure Drop Shipment checkboxes. Once the Assembly Order is created, the enclosure drop shipment is processed in the Subcontracting Assembly page as a Purchase Order.

The process for handling the enclosure drop shipment for an external assembly is generally the same as without the drop shipment, except that a Drop Shipment Purchase Order is also created, which must be processed before the Product Transfer Order and Purchase Order.

To create the assembly order with enclosure drop shipment

  1. Open the assembly item.
  2. Open the assembly BOM and ensure that the Enclosure and Enclosure Drop Shipment checkboxes are selected on the enclosure item(s) to be drop shipped to the vendor.
  3. Ensure that a vendor has been assigned to the enclosure item(s).
  4. Create the sales order and corresponding assembly order.
  5. Choose the Subcontracting action to open the Subcontracting Assembly Order page.
  6. Choose the Create Subcontracting Worksheet action and then go back to the Subcontracting Assembly Order page.
  7. Choose the Create Purchase Order action to:
    • delete the Subcontracting Worksheet line
    • create a Transfer Order
    • create a Drop Shipment Purchase Order
    • create a Product Transfer Order
    • create a Purchase Order
    • update the related fields in the Subcontracting Assembly lines

To process the enclosure drop shipment

  1. Open the Transfer Order from the Transfer Order field on the line or from the Open Transfer Order action on the Subcontracting Assembly Lines FastTab.
  2. Post the enclosure Transfer Order.
    The Posted Transfer Order field contains the number of the posted transfer order (you may need to refresh the page).
  3. Open the Enclosure Drop Shipment Purchase Order from the Encl. Drop Shipment field on the line or from the Open Encl. Drop Shipment action on the Subcontracting Assembly Lines FastTab.
    The vendor location address is copied to the Ship-to fields and the Vendor Location Code is copied to the Location Code field on the purchase order line.
  4. Post the Enclosure Drop Shipment purchase order and go back to the Subcontracting Assembly Order page.
    The Encl. Drop Shipment field displays the purchase receipt number, indicating that the purchase order was posted (you may need to refresh the page).

When the subcontractor delivers the completed item, the main subcontracting purchase order can be posted.

  1. Open the product Transfer Order from the Product Transfer Order field on the line or from the Open Product Transfer Order action on the Subcontracting Assembly Lines FastTab.

    Note

    Related enclosure transfer orders can be opened from the product Purchase Order by choosing Order > Enclosure on the Related menu.

  2. Post the Product Transfer Order.
    The assembly order process is finished. The Subcontractor Assembly Order page is cleared and the sales order is ready for shipping. Once the Product Transfer Order is posted, the sales order can be processed at any time.

When the invoice is received from the subcontractor vendor (or after the Product Transfer Order is posted), the purchase order needs to be processed for posting the value of the subcontracting (via Item Charges) to the item value entries.

  1. On the Choose the Lightbulb that opens the Tell Me feature icon, enter Purchase Orders, and then choose the related link.
  2. Open the purchase order for the subcontractor created in the Subcontractor Assembly Order page.
    It uses the item charge specified on the subcontractor resource as well as the resource price or purchase price from the external service item.
  3. Update information as needed.
  4. Post the purchase order.

See Also

Subcontracting with Supply of Material (Enclosures)


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