POs for job subcontracting processes such as painting, plating, and heat-treating are generated through the Job Subcontracting screen, here on the Jobs menu.
Before we show you how a PO gets generated, let's quickly review how subcontract service processes are set up. This is done in the Bills of Manufacturing screen.
Here we have a BOM for a wagon body painted. This BOM consists of one component, which is an unpainted wagon body. The routing consists of one process. This is a Subcon process, performed by this supplier, for this price. PO notes provide instructions to the supplier.
MRP will generate a job for the painted wagon body whenever it is needed for higher-level jobs. Here on the Job Schedule, we have a released job for the painted wagon body.
Let's now take a look at the Job Subcontracting screen. All subcontract job sequences that do not yet have POs are listed in this screen. When it comes time to send the parts out to the supplier for processing, select the job sequence. Select the Convert checkbox. Click the Convert & Print button.
When the painted wagon bodies come back from the supplier, there are two receipt processes. First, the PO is processed in the PO Receipts screen. Doing so updates the job cost, closes out the job sequence, and updates the receipt quantity for PO invoicing purposes.
Secondly, the Job Receipts screen is used to receive the painted wagon bodies into inventory so that they can be issued as needed to higher level jobs. See the next video for Job Receipt details.
In summary, the objective of this process is to generate subcontract service POs on a just in time basis when parts are sent out to be processed by the subcontract supplier.