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In some cases, a sub contract parent item may contain an item that you make within its bill of material. How OrderStream handles make child items within a sub contract parent's bill of material depends on the inventory tracking type assigned to the make child item, the stock setting of the make child item, and the Sub Contracting Auto Generation application preferences.
Make Child Item is set to No Tracking
If the make child item is not tracked in inventory, the item is considered to be an item used in bill of material organization ("Phantom Assembly"). In this case, the non tracked make item's item number does not appear on the subcontracting module's materials tab; instead the items which comprise the phantom assembly are listed on the materials tab and are purchased and transferred independently of one another. The phantom assembly item is ignored by Sub Contracting.
Tracked Make Non Stock Child Item with Auto Generation Preferences Enabled
If the make child item is tracked in inventory and is not setup as stock, a work order for the make child item is automatically created when a material requisition is created for the sales order or work order which requires the sub contract parent item. The work order for the non stock make child item must be completed prior to the completion of the sub contract document at the time of sub contract service receipt in order to maintain proper inventory levels in OrderStream. Partial completions are allowed; the quantity completed against the make child work order must at least equal the quantity of the make child item required by the quantity of the sub contract service item being received.
Tracked Make Stock Child Item with Auto Generation Preferences Enabled
If the make child item is tracked in inventory and is setup as stock, a work order is NOT automatically generated for the item when a material requisition is generated for the sales order or work order which requires the subcontract parent item. Since the item is setup as stock, an available quantity on hand is expected in inventory, from which the demand for the make child item could be satisfied. Sub Contracting demand for make stock items is reported on by the Make Stock MRP module; make children can be added to a work order via the Make Stock MRP. Of course, a work order may be created manually for the make stock child item. For stock items there is no requirement that the work order for the make stock item must be completed prior to the completion of the sub contract document at the time of sub contract service receipt. If insufficient inventory is available at the time of sub contract receipt processing, you will be prompted and asked if you wish to proceed with the processing. To maintain correct inventory levels in OrderStream it is advised that you do not proceed without knowing why the work order for the child item was not completed and before taking corrective measures.
Tracked Make Items (Non Stock and Stock) with Auto Generation Preferences Disabled
Work orders to supply sub contracting requirements must be manually created.
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