To set up the contracting option in ERPAG, the first thing you need to do is to set up the items, components, and sub-components. You can do that by going to:
Inventory > Product and services > Add new
This will open a window where you will be able to type in all the basic information about the product, for example the SKU, description etc. This is also the place where you will decide is this item an item that is based on BOM or you are getting it from your supplier. This needs to be set up in the fulfillment section:
The next step is to open a warehouse for your contractors, and you can do this by going to:
Administration > Warehouse lists > Add new
And add the contractors to the contractors list by going to:
Manufacturing > Contractors > Add new
This will open a window where you will be able to type in all the necessary information about your contractor.
Now, set up the final product that is based on the BOM and make sure to choose define the contractor and the warehouse from which you are going to pull the product.
Once you’ve done that, work operations performed by the contractors' side and set up the cost per hour. You will do this by going to:
Manufacturing > Work operations
The next thing you need to do is to create a purchase order for the components and sub-components and set the items to be delivered to your contractors' warehouse. Go to:
Purchasing > Purchase orders > Create
Make sure to choose the adequate warehouse.
Receive the items to the warehouse of your contractor (or your own and then transfer them to theirs, depending of your work flow).
Once the items are received, create a work order based on the BOM for the final product and choose from which warehouse you are pulling the items for it and in which warehouse the final product is delivered. In order to do so, go to:
Manufacturing > Work orders > Create
Of course, first you need to produce the sub-component (if the final item consists of any) and then go further and create the final product.
As you can see, the system will give you the option to choose the warehouse for the output items as well as the warehouse from which you are pulling the input items.
To see how to create and complete the work order, read the following instructions:
Of course, if you are not following your contractors production process, you can just use the ‘complete as planned’ option and finish the work order in one click.
Once the work order is complete, the inventory > inventory/stock list report will show you how many of the final product you have in your stock and how many materials you have left in the contractors' warehouses.