Indicate Purchase Component Method

Explanation

The purchase component functionality is used when you are sending the supplier material or components needed to either manufacture or pack the parts that you then purchase. You can choose to charge, i.e., sell the material or the components to your supplier, or not charge the supplier for the material and components.

There are two different methods to use:

• Supplier material: A more simple way to reserve, pick, and ship the material, working only in IFS/Purchasing. It is not possible to charge these items. This function will be used, for example, when handling outside operations in IFS Manufacturing.
• Customer Order: A more complex variant where the purchase order will create a customer order. The customer order flow will then be used to reserve, pick, and ship the material. It is also possible to choose whether the material should be charged or not. This is decided at the moment of creation of the purchase part structure.

Prerequisites

• You either can indicate this option when entering the site or change the option on an already entered site.

System Effects

If the customer order method is chosen, a customer order will be created when releasing the purchase order, containing lines for the components that shall be sent to the supplier.

If the supplier material method is chosen, a demand towards inventory is created for the components that shall be sent to the supplier.

Window

Site

Related Window Descriptions

Site
Site/Extended Site Info
Site/Sales and Procurement
Sites Analysis

Procedure

1. If the site is already entered, query for the proper site.
2. In the Purchase Component Method field on the Site/Extend Site Info/Sales and Procurement/General tab, use the List of Values to change the setting to either Customer Order or Supplier Material.
3. Save when completed.