MFG/PRO 9.0 User Guide Volume 3: Manufacturing - QAD.com

Subcontract Operations
Work orders with subcontract operations can be used in conjunction with
special subcontract purchase orders. When units are returned from a
supplier with a subcontract purchase order, the system recognizes the
value added to the work order, completes units for that operation, and
debits the WIP account.
Separate departments, and possibly work centers, should be set up for
outside processing to distinguish them from internal operations. For
example, if all subcontract work center codes begin with a common
character such as S, it is easy to identify them on Work Order Dispatch
Report (16.18) and other reports. Departments and work centers can be
defined more specifically for individual suppliers, depending on whether
operations are performed by a single supplier.
Subcontract Life Cycle
When the Work Orders, Shop Floor Control, and Purchasing modules are
used together, the subcontract cycle includes the following steps:
• Work Order Maintenance (16.1) or Planned Work Order Approval
(23.10)
• Work Order Component Check (16.5)
• Work Order Release/Print (16.6)
• Work Order Component Issue (16.10)
• Work Order Dispatch Report (16.18)
• Purchase Order Maintenance (5.7)
• Purchase Order Receipts (5.13.1)
• Labor Feedback by Work Center (17.1) (optional)
• Work Order Receipt (16.11)
• Work Order Accounting Close (16.21)
Requirements for Subcontract Purchase Orders
Use Work Order Dispatch Report (16.18) and Work Center Dispatch
Report (18.21.8) to determine when purchase orders for subcontract
operations should be released.
WORK ORDERS 113
Ï See “Subcontract
Operations” on
page 40 for more
setup details.