Subcontracting Operations in OnRamp ERP

June 7, 2021

Many manufacturers outsource operations performed on their manufactured parts to subcontractors. The operations that manufacturers subcontract to vendors may include painting, welding, sanding, assembly, or packing. OnRamp has a built-in process to help you track these outside operations.

The OnRamp subcontract process allows you to track:

• The parts that need to be shipped and received
• The ship by and due dates for the parts
• The shipping documents for the parts
• The account balance for the subcontractor

This is done by adding setup records for the outsourced operations that specify the operational data. With the setup done correctly, OnRamp processes the subcontract operation as a sub-component that is added of the finished part. This sub-component part also gets bills of lading and other shipping and receiving paperwork, while also creating the required accounts payable entries.

Subcontract Setup

In OnRamp, you must add the following information:

1. To represent the part inventory location, you need to add an inventory location.
2. To represent the part processing, you need to add two work centers.
3. One planner to track the subcontract operations.

For each part that requires shipping to a subcontractor for processing, you must add:

1. A part for the subcontract operation, with the System Type set to Subcontract.
2. A vendor and a vendor part for the operation.
3. A blanket purchase order to track when the part is returning.
4. Two routing entries. One for the subcontract shipping and another for receiving. You might also want to add an inspection operation.
5. A BOM entry for the subcontract operation part.
6. A cost roll-up to set the part’s material cost.

Processing Subcontract Parts

Running MRP creates work orders that include information for the part and add schedule items to the purchase order. The work order also includes barcodes which can be scanned for quick data entry.

The subcontract parts are then:

1. Shipped on screen Packing Subcontract Shipment [S1153] and Finalize Subcontract Shipment [S1666].
2. Received with screen Receive Subcontract PO [S1911].

Processing Subcontractor Payments

With the process run as detailed above, the subcontractor vouchers can be processed via the OnRamp vendor voucher workflow.

For complete information on subcontracting parts in OnRamp ERP, see our Online Help.