I would like to know, how WIP Items will be treated to send our for Sub-contracting .
Below is my Scenario.
Finish Good Item - FG-001
BOM OF FG-001
ROUTE OF FG-001
OPR -10 - LASER ( In House)
OPR-20 - Fabrication ( In House)
OPR -30 - Machining ( Vendor )
OPR -40 Powder Coating ( In House)
What item code to be used to raise the Transfer & Purchase order to vendor location.
You need to consider the approach, if you need to “transfer” the goods it is a WIP item but a stocked WIP item, so not WIP in the traditional sense of the system. With Operation 30 you are taking the output of Operation 20 which could be considered the FG of the WIP item, which you book in and send. Then you need another order to pick the item, ship it, have the sub-con work done, come back and then powder coat. If you choose not to stock the item you have nothing to transfer, so you are relying on the route card and the associated sub-con PO attahced to the step as the instruction to send it out, but you have no stock visibility through that process.
Thanks for your valuable reply . You mean to say ,Break above route after 20. Am i right .
Yes, the WIP item at the end of Fabrication becomes an actual product.