Customer Furnished Material

Epicor ERP 10
1

Hello,
We need to send materials to our supplier to build our part.
We currently have the end item setup as a Purchased Part - as it is but how do I get epicor to drive the purchasing requirements for the additional material sent to the supplier.

Any advice would be great!
Thanks
Angie

2

Hi Angie!

Technically, the end item is a Make part in Epicor. You would create a Method of Manufacturing for that part which includes the parts that you ship to the supplier. You would create a job that has a subcontract operation and use a Subcontract PO to purchase that service. The Epicor Application User guide does a good job of explaining this process.

Hope that helps. Welcome!

Mark W.

3 Likes
3

@anon31358647 is correct… the process also allows tracking of the fact that you SHIPPED the job (and its materials) to the supplier.

It goes like this:
BOM:
Part A (your saleable product)
Operation 10: Sub-Contract operation with supplier XYZ
MTL B (your Purchased material)

  1. Sales order for 10 pieces of A
  2. then create a job for 10 pieces of A… (or let MRP create it).
  3. Purchasing suggestions should suggest to buy 10 of Material B. Create this PO
  4. Purchasing suggestions will also suggest to buy the Sub-Contract Operation 10 to the job. Create this PO.
  5. Purchase material B. Receive it to stock
  6. JOB: release job, Issue material B to the job.
  7. Shipping: use Subcontractor Shipment Entry to Ship Material B to supplier XYZ… on that program, you will reference the PO and the JOB involved above. This ties everything together, and creates a paper trail. (THIS STEP IS OFTEN SKIPPED).
    NOTE: At this point, in job tracker, you can look at the operation and see when the material was shipped to the supplier.
  8. Receive the finished product from your supplier sub-contract PO. This puts the cost back into the job.
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4

Thank you both! I am new to Epicor and was leaning this way but wanted to make sure it was appropriate.