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Subcontract Order with Work Order in Sage X3

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Subcontracting is a type of job contract that seeks to outsource certain kinds of work to other companies. It allows work on more than one phase of the project to be done at once, often leading to quicker completion.

For example, manufacturers who make several products from complex components outsource certain processes from a third-party Supplier.

Please find below steps for Subcontract order with work order in Sage X3 :

1: CREATE THE CORRECT MASTER DATA

1.1.-LOCATIONS

Create one subcontracting location type –

Location type

Create the locations for this subcontracting type.

(I recommend creating a location with the code equal too each subcontract supplier).

1.2.-BPSs

On the supplier, commercial tab, select the specific subcontracting location and linked to the supplier.

supplier

Create a customer with the same supplier code and link the specific subcontracting location to customer.

customer

On the Ship-to-customer tab (on customers screen), select the shipment site and the location.

ship to customer

1.3.-PRODUCTS

Product Category, must create one category with category type Service and category flow Bought, Sold and deliverable.

product catagory

1.4.-WORK CENTER

It must be necessary create a Work Center for each subcontractor  supplier.

To each work center it must be assigned a location (match with the location with the supplier code)

work centres

1.5.-BOM and ROUTE

On the BOM link the component to the subcontracting operation

Manufacturing BOM

On the subcontracting Route, select the service product, the subcontracting work center, the subcontracting supplier and the reference price

Routing

Also Read : Configuring Sage 300 for the Sub-contracting process

2: CREATING THE WORKD ORDER, PURCHASE ORDER AND DELIVERYES

2.1.-WORK ORDER

Create a work order with the finish good and check all the subcontracting information is correct.

Work order

2.2.- PURCHASE ORDER

Create a purchase order from the subcontracting operation in the work order

Purchase order

On the new screen, check all the information is correct and clik “order” button

order details

Now we can chek the subcontracting operation situation from the wo operation line

operations

2.3.- DELIVERY TO THE SUBCONTRACTOR

From the work order, launch the detailed allocation.

Work Order

WO Allocation

Check if it’s correct.

View WO

Allocation Inquiry in Sage X3

Go to sales deliveries transaction and select the subcontracting one.

Transaction Selection

Enter the correct data (0201 Shipment Site, 0208  type, 0201 Sales site and the subcontracting supplier)

Selectins on the lest side the option (Subcontract Shortage selection) it will appear our product(s) to be sent to the subcontracting supplier.

Subcontract Shortage selection

Subcontract Shortage

2.4 RECEIVING THE MATERIAL

When we receipt the subcontracting product, we only must go to the receipts screen, enter our supplier and select the initial purchase order.

Purchase Receipt

After Purchase receipt our Subcontracting Process is completed, Production tracking is automatically getting generated and stock of parent material is increased in our system.

2.5.- Checking the Results

Just doing the receipt, we can check if all is correct.

From the work order, the operation status line option (Subcontracted status operation)

Released Product Situation

Released Product Situation

Released Product Situation Subcontract

Also, you can check the stock movements inquiry.

Stock Movements

Stock Transactions

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