[MOV] MRP: Create subcontracting scope
closes odoo/documentation#9102
X-original-commit: d38eb79411
Signed-off-by: Samuel Lieber (sali) <sali@odoo.com>
Signed-off-by: John Holton (hojo) <hojo@odoo.com>
This commit is contained in:
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==============
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Subcontracting
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==============
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.. |BoM| replace:: :abbr:`BoM (Bill of Materials)`
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In manufacturing, *subcontracting* is the process of a company engaging a third-party manufacturer,
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or subcontractor, to manufacture products that are then sold by the contracting company.
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Subcontracting provides a variety of benefits for both the contracting company and the
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subcontractor.
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For the contracting company, subcontracting allows them to sell a wide variety of manufactured
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products, without having to worry about investing in and maintaining the equipment and labor
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required to handle the manufacturing themselves.
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This helps contracting companies stay flexible throughout economic cycles, as they can easily
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increase or decrease their engagements with subcontractors, as necessitated by the current moment.
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It also means they are able to focus on tasks they excel at, while delegating more specialized work
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to subcontractors.
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On the other side of the relationship, subcontracting allows subcontractors to specialize in more
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niche areas of production, which might not be as profitable outside the bounds of a subcontracting
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engagement. In certain arrangements, it also provides them with the flexibility to choose which
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projects they accept or decline, and how many they work on at any given time.
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In Odoo, companies can configure their subcontracting workflows based on a variety of different
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factors, including how components are sourced, and what happens to finished products once they are
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manufactured.
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.. cards::
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.. card:: Basic subcontracting
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:target: subcontracting/subcontracting_basic
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Subcontract products without supplying the subcontractor with components.
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.. card:: Resupply subcontractor
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:target: subcontracting/subcontracting_resupply
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Ship components to a subcontractor each time a PO for a subcontracted product is confirmed.
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.. card:: Dropship to subcontractor
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:target: subcontracting/subcontracting_dropship
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Dropship components to a subcontractor each time a PO for a subcontracted product is
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confirmed.
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Configuration
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=============
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To enable subcontracting in Odoo, navigate to :menuselection:`Manufacturing app --> Configuration
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--> Settings`, and tick the checkbox next to the :guilabel:`Subcontracting` setting, under the
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:guilabel:`Operations` heading. Then, click :guilabel:`Save`.
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.. image:: subcontracting/subcontracting-setting.png
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:align: center
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:alt: The Subcontracting setting in the manufacturing app.
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With subcontracting enabled, a few different features become available in Odoo:
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- On bills of materials (BoMs), the *BoM Type* field now includes a *Subcontracting* option.
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Enabling the *Subcontracting* |BoM| type designates the |BoM|'s product as a subcontracted
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product, which means Odoo knows that it is produced by a subcontractor, and not by the company
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that owns the Odoo database.
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- Two subcontracting routes become available in the *Inventory* app, and can be assigned to specific
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products, on the *Inventory* tab of their product pages:
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- *Resupply Subcontractor on Order*
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- *Dropship Subcontractor on Order*
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Subcontracting workflows
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========================
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In Odoo, there are three subcontracting workflows, the main difference between them being *how* the
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subcontractor obtains the necessary components:
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- In the *basic* subcontracting workflow, the subcontractor is fully responsible for obtaining the
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components. This workflow is outlined in the :doc:`subcontracting/subcontracting_basic`
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documentation.
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- In the *Resupply Subcontractor on Order* workflow, the contracting company sends the components
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from their warehouse to the subcontractor. This workflow is outlined in the
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:doc:`subcontracting/subcontracting_resupply` documentation.
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- In the *Dropship Subcontractor on Order* workflow, the contracting company purchases the
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components from a vendor, and has them delivered directly to the subcontractor. This workflow is
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outlined in the :doc:`subcontracting/subcontracting_dropship` documentation.
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In addition to how a subcontractor obtains components, it is also necessary to consider why a
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product is being subcontracted, as well as what happens to products once they are manufactured by
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the subcontractor.
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In terms of why a product is being subcontracted, the two main reasons are to fulfill a customer
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order, or to replenish the quantity of stock on-hand.
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In terms of what happens to products once they are manufactured, they can either be shipped to the
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contracting company, or dropshipped directly to an end customer.
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Each of the three subcontracting workflows described above can be configured to facilitate any of
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these possibilities, and the methods for doing so are outlined in their respective documentation.
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Subcontracted product valuation
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===============================
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The valuation of a subcontracted product depends upon a few different variables:
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- The cost of the required components, if provided by the contracting company; from here on referred
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to as `C`.
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- The price paid to the subcontractor for the service of manufacturing the subcontracted product;
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from here on referred to as `M`.
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- The cost of shipping components to the subcontractor, and having them shipped back to the
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contracting company; from here on referred to as `S`.
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- The cost of dropshipping, if the components are shipped by the subcontractor to the end customer;
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from here on referred to as `D`.
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- Any other associated costs, like import taxes, etc.; from here on referred to as `x`.
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Therefore, the total valuation of a subcontracted product (`P`) can be represented by the following
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equation:
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.. math::
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P = C + M + S + D + x
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It is important to note that not every subcontracted product valuation will include all of these
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variables. For example, if the product is not dropshipped to the end customer, then there is no need
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to factor in the cost of dropshipping.
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.. toctree::
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:titlesonly:
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subcontracting/subcontracting_basic
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subcontracting/subcontracting_resupply
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subcontracting/subcontracting_dropship
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