Subcontracting under blanket orders

When the price and the terms of a subcontractor are agreed for a period, the subcontracted work is ordered under a blanket order. A subcontracting request can create that blanket order instead of a request for quotation; the purchase orders are then made from the blanket order, and confirming one of them takes its quantity out of production.

Who

Production managers (Manufacturing ‣ Administrator), who apply the requests; purchasing staff (Purchase ‣ User), who order from the blanket order.

App

Manufacturing, Purchase

Before you start

The example of this article subcontracts 6 of the 10 Oak wall shelves of an order to Coating subcontractor A.

How do I create a blanket order from a subcontracting request?

  1. On the manufacturing order, choose Create Subcontracting Request in the gear menu. Fill in the Subcontracting Qty, the Subcontracting BOM and the Subcontractors, and tick Use Purchase Requisition.

    The subcontracting request with Use Purchase Requisition ticked

  2. Save and click Apply, then confirm. The manufacturing order is split, and a blanket order is created instead of a request for quotation. The Purchase Requisition button opens it.

    The applied request with its Purchase Requisition button

  3. The blanket order names the subcontractor as Vendor and the request in Subcontracting Request, with one line for the subcontracted quantity. Its unit price is the cost of the product: type the agreed price.

    The blanket order linked to the subcontracting request

How do I order from the blanket order?

  1. Click Confirm on the blanket order, then New Quotation.

    The confirmed blanket order with the New Quotation button

  2. The request for quotation is linked to the blanket order in Agreement and takes its price. Type the quantity to order and click Confirm Order.

    The request for quotation made from the blanket order

  3. Confirming the order cancels the subcontracted part of the manufacturing order: the subcontractor makes it now. The part kept in-house stays confirmed.

    The in-house part confirmed and the subcontracted part cancelled

Purchase agreements are explained in How to buy from a vendor with a blanket order.

Common errors

Problem

What to do

Only one confirmed purchase requisition is allowed to be linked to a subcontracting request.

Use the confirmed blanket order of the request, or cancel it before confirming another one.

Use Purchase Requisition cannot be changed.

The request is already applied.

The Apply button is missing.

Applying needs the Manufacturing ‣ Administrator access right, and a request is applied once.

Next steps

See also

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