Please help

chaitali_bhattacharya

Hi,

My client handles projects wherein he does most of the activities of his project through their contractors.They issue materials to the contractors for the purpose of consumption. Also need to pay to the contractors basis the work done.

This is very very urgent.

Can u please guide me how to go ahead.

Thanks & Regards
Chaitali

Miklos_Hollender

Basic outline:

- Create Production Orders. (Read the Manufacturing manual.)
- Ship goods to Locations represting contractors by Transfer Order (read Distribution manual). A customization might be handy to autocreate these orders based on table Prod. Order Component Line.
- Consume material at those Locations.
- Post Output at those Locations.
- Transfer finished Products back (also could be automated).
- Assign the contractor fee to the Transfer Receipt by an Item Charge posted on a Purchase Invoice (Read Financias manual.)

HalMdy

There also exists some add-on to manage this kind of process...

An example is NaviOne, a vertical solution made by http://www.gesway.com , a french partner ...

Soumyadip

you can use Subcontracting Order. Its a part of India Localization. I think your requirement is perfectly matching with the Subcontracting functionality.

Miklos_Hollender

Yeah, "perfectly matching" EXCEPT that 1) require the full CRP stuff which is completely unnecessary here 2) Does not manage handing out materials. Think it over.

vivektaurian

Yeah! Saumyadip is very correct u can use subcontractor option and u can attach subcontractor on the workcentre card and charge them based on time as well as based on units in the posting tab of the work centre.

chaitali_bhattacharya

Thanks for all ur responses

I think Subcontracting is linked to manufacturing. But my client doesnt do any manufacturing.

Regards
Chaitali

Miklos_Hollender

As I said, subcontracting is completely wrong here, because it is meant for companies who outsource only one task in the Routing, not the whole manufacturing process!

As for whether you need Manufacturing or not, the important thing to know how material will be accounted for. If they invoice materials to the subcontractor and they invoice back the full cost, material + work, then no need for Manufacturing, you can just do a negative adjustment of the material stock there.

But if they want to account for material costs BOM-based, then you need Manufacturing, or least BOM Journals.