Demonstrating the Subcontracting with Multi-Tier Collaboration Process

Objectives

After completing this lesson, you will be able to:

  • Demonstrate how to create each of the document types in the Subcontracting with Multi-Tier Collaboration process

Steps to Create Each of the Document Types in the Subcontracting with Multi-Tier Collaboration Process

1. The Subcontracting Purchase Order is created

The Buyer creates the Subcontracting Purchase Order by specifying Item Category L at the line item level.

2. The Subcontracting Order Confirmation is Created

The Subcontracting Purchase Order has been received by the Subcontractor. The Subcontractor creates the Order Confirmation and sends it to the Buyer.

3. The Purchase Order for Wheels is Sent to Component Supplier 1

The Buyer creates a Purchase Order for Wheels and sends it to Component Supplier 1. The shipping address is specified as the address of the Subcontractor. Copies of the Purchase Order are sent to the Subcontractor and Component Supplier 2.

4. The Order Confirmation for Wheels is Sent by Component Supplier 1

Component Supplier 1 creates the Order Confirmation for Wheels and sends it the Buyer. Copies of the Order Confirmation are sent to the Subcontractor and Component Supplier 2.

5. The Advance Ship Notice is Sent by Component Supplier 1

Component Supplier 1 creates the Advance Ship Notice for Wheels and sends it the Buyer. Copies of the Advance Ship Notice are sent to the Subcontractor and Component Supplier 2.

6. The Wheels are Shipped and the Component Receipt and Goods Receipt are Sent

Component Supplier 1 ships the wheels to the Subcontractor.

The Subcontractor sends a Component Receipt to the Buyer.

The Buyer sends a Goods Receipt to Component Supplier 1.

7. The Invoice is Sent by the Component Supplier 1

Component Supplier 1 sends the Invoice to the Buyer.

8. Steps 3-7 are Repeated for Frames with Component Supplier 2

The previous set of steps are repeated for the Frames and are sent to Component Supplier 2.

  • The Purchase Order for Frames is sent to Component Supplier 2
  • The Order Confirmation for Frames is sent by Component Supplier 2
  • The Advance Ship Notice for Frames is sent by Component Supplier 2
  • The Frames are shipped and the Component Receipt and Goods Receipt are sent
  • The Invoice is sent by Component Supplier 2

9. Components are consumed and Component Consumption Documents are Sent

Now that the Subcontractor has both the frames and the wheels, they can consume (assemble) the components.

The Subcontractor assembles the bicycles and then generates one or more Component Consumption Documents which are sent back to the Buyer.

If the Buyer is using Real-Time Consumption, they use Component Consumption Documents to update their inventory.

If they are not using Real-Time Component Consumption, the Component Consumption Documents are ignored and the Buyer's inventory is updated later.

10. The Advance Ship Notice is Sent and Finished Goods are Shipped

The Subcontractor sends the Advance Ship Notice for the finished goods and ships the finished goods to the Buyer.

11. The Goods Receipt is Sent

The Buyer sends a Goods Receipt for the finished goods to the Subcontractor.

12. The Invoice is Sent

The Subcontractor sends an Invoice for the finished goods to the Buyer.

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