Upgrading from Summer 2016 or earlier version of Kenandy? Then the way subcontracting fits into Kenandy has changed a lot.

You can't create a subcontract purchase order anymore. Instead, create a work order or open a work order created by MRP or another process.

When you release the work order, a purchase order is automatically generated, and each subcontract routing in the item specification is added to the work order as an operation.

When you receive the purchase order, the operation is automatically completed.

You must have the following set up before you start a subcontracting work order: 

• At least one item with its Source set to Outside Processing
• At least one assembly item that uses the outside processing item as a component
• An item specification for the assembly item with:
  • A routing that contains that outside processing item as a component
  • This routing isn't the last routing of the item specification

Work orders with subcontract routings can be generated by MRP, make to order, or you can create an unplanned work order. All types of work orders can include subcontract routings, including Repair.

To manage a subcontract work order, follow these steps:

1. Create or open a work order with an item specification that has subcontract routings.
2. Release the work order.

Operations are generated for the work order, including operations for each subcontract routing in the item specification. Material Tracking records are also created for each component and are tied to the operation.

Note: If an operation has an outside processing component, it cannot be manually completed, it cannot have a byproduct, and it cannot be the last operation on the work order.

Unrecording and Rerecording an Outside Processing Operation

To unrecord, then rerecord an operation that has one or more outside processors, follow these steps:

1. Void or Cancel the Receiving Document for the outside processing component(s). Kenandy reopens the PO(s) for the component(s).
2. On the Work Order Detail page, go to the outside processing operation and click Unrecord.
3. On the Receiving Workbench, receive the outside processing component(s).

Kenandy automatically rerecords the operation in the work order.

You can use more than one outside processing supplier to complete a single operation in a work order.

If you often use more than one supplier to complete single operations, you can add the suppliers to routings as part of the item specification for an assembly.

You can also add suppliers to operations on work orders already in progress if something unexpected comes up, such as a supplier telling you they can't complete a big order when you need it.

Create Routings with Multiple Outside Processing Suppliers on Item Specifications

If you've got a component that requires outside processing and you need to send it to more than one supplier, you can add multiple suppliers to a single subcontract routing.

For components you regularly send out to multiple suppliers for outside processing, follow these steps:

1. On the Item Specification, add the outside processing component(s).
2. Choose the Supplier for each outside processing component.
   You can add the same component twice or more, choosing a different Supplier for each instance of the component.
3. Add these components to one routing.
4. Create a work order for the assembly item that contains the outside processing component.
5. Release the work order.
6. On the Release Material page, enter the Quantity Required for each supplier of this component.
7. Click Release.

Kenandy does the following:

• Generates material tracking records for each component
• Generates operations for each routing
• Generates POs for each supplier, with a PO line for each component

Add Outside Processing Suppliers to an Existing Work Order

To modify an existing work order to add suppliers to an operation, follow these steps: 

1. On the work order, click Manage Operations/Material.
2. In the Material section, click Add New.
3. Enter the outside processing component you need to send to another supplier.
4. Choose the operation in which this component will be processed.
5. Enter the supplier in the Supplier field.
6. Click Go Back.
7. On the Work Order Detail page, click Release.
8. On the Release Material page, enter the Quantity Required for each supplier of this component.
   Note: If you've already received part of an order from a supplier, you cannot enter a Quantity Required that's less than the amount you received.
9. Click Release.

Kenandy does the following:

• Re-releases the work order
• Updates the quantities on the PO lines for existing outside processing POs
• Creates new POs

Remove an Outside Processing Supplier from a Work Order

To remove an outside processing supplier from an operation with multiple suppliers, follow these steps: 

1. On the Work Order Detail page, click Release.
2. On the Release Material page, enter 0 in the Quantity Required field of the supplier you want to remove.
3. Adjust the Quantity Required fields for the other suppliers as needed.
4. Click Release.

Kenandy does the following:

• Re-releases the work order
• Updates the quantities on the PO lines for existing outside processing POs
• Cancels the PO and PO line for the supplier you removed

If your outside processing item has a default supplier in its record, that supplier gets copied to the component in your item specification.

When you release a work order, the supplier from the component item gets copied to the material tracking record and to the Purchase From Supplier field in the automatically generated purchase order.

You can change the supplier (or add one if there's no default) in any of these places: 

• Component Item table on the Item Specification detail page
• Material Tracking record
  Cancel the purchase order, go to the Manage Operations/Material page from the Work Order detail page, and re-release the work order
• Purchase Order detail page
  If the purchase order is not yet approved

For each subcontract operation generated, Kenandy also automatically generates a purchase order and purchase order line.

If you've got more than one subcontract operation in this work order, Kenandy checks the supplier for each operation. If the same supplier is used in multiple operations, Kenandy generates one purchase order with multiple purchase order lines—one for each operation.

If you're using different suppliers for different subcontract operations, Kenandy generates a purchase order for each supplier. These purchase orders must be approved before you can record receipt of the subcontract items.

The supplier information from the component item is copied to the material trackings record and to the purchase order.

Note: When you Undo Release a work order that includes only one supplier per subcontract operation, the purchase orders and purchase order lines associated with the subcontract operations are automatically canceled.

If your work order includes operations with more than one supplier, you must manually cancel the purchase order lines before you Undo Release the work order.

When you get the subcontract items back from your supplier, receive the purchase order or ASN in the Receiving Workbench. Any item attributes automatically appear on the receiving document so you can fill them out as you receive the item.

If this assembly item is serial tracked, record the serial numbers when you create this receipt.

After you complete the receipt record, the subcontract operation for the work order is automatically completed.

If you void a receipt, the operations are not automatically unrecorded. You must go to the operation and manually unrecord it.