Subcontracting Process

In the subcontracting process, Purchase Orders related to subcontracting movements (where Prod. Order No. is not empty on the purchase order line) are subject to specific operational status and variance validations. These rules ensure that subcontracted operations align with production order requirements and tolerances.

Business Rules

Operational Status Validation

A Purchase Order for a subcontracting movement can only be received if the associated Production Order has:

• Operational Status = Running, or
• Operational Status = In Review (if the user is a Production Manager).

If the user attempts to post the purchase order receipt when the production order is in any other status, the system displays an error.

Variance Policy Validation

When posting a subcontracting Purchase Order, the system validates the variance policy by comparing the Production Order Line Quantity with the Quantity to Receive on the purchase order line.

• When Variance Policy = Warning

  • If the total output (sum of already posted output + current line quantity) exceeds the tolerance, a warning message is displayed.

    • If the user selects Yes, the Quantity to Receive field is validated, and posting proceeds.
    • If the user selects No, no changes are made, and the receipt cannot be posted.
    
    

• When Variance Policy = Blocked

  • If the total output exceeds the defined tolerance, an error message is displayed.
    • Posting the receipt is blocked until the variance is corrected.

• When Variance Policy = None
  • No warnings or errors are displayed. The system records the actual output as reported without restrictions.