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  MRO Subcontracting Process

Process Flow

  1. The service provider receives an unserviceable part for maintenance, repair, or overhaul from a customer.

  2. The service provider creates a maintenance order in the system.

  3. From the maintenance order, the system creates a purchase requisition for external repair and overhaul service.

  4. In the purchase requisition, the system creates an item with the subcontracting item category L for each part to be repaired.

    The system enters the material and quantity both as the item and as components for the item. Additional parts that are provided (consumables) are entered as components.

  5. The service provider converts the purchase requisition into a purchase order for the external repair and overhaul service.

    The individual purchase order item contains the part that is expected back after the repair service. This could be the same part or a different one. The component level of each individual purchase requisition item or purchase order item contains the main part to be repaired, as well as all additional materials that should be consumed during the repair process (consumables).

  6. The service provider sends the part to be repaired to the subcontractor via an outbound delivery.

    The parts that are provided to the subcontractor are managed as stock provided to vendor (subcontracting stock). The provision represents a transfer posting from unrestricted-use stock to the stock of material provided to vendor (subcontracting stock).

  7. The subcontractor repairs, exchanges, modifies, or replaces the part and returns the serviceable part to the service provider.

  8. The service provider creates a goods receipt posting for the end product with reference to the subcontracting item in the purchase order, and a consumption posting for the components from the subcontracting stock.

    The end product can be returned to the following stock types:

    • Unrestricted stock

    • Quality inspection stock

  9. The service provider:

    1. Completes the maintenance order.

    2. Receives and checks the invoice related to the repair.

  10. The service provider returns the now serviceable part to the customer.