[IMP] MRP: Basic subcontracting rewrite

content/applications/inventory_and_mrp/manufacturing/subcontracting/subcontracting_basic.rst

@@ -7,195 +7,141 @@ Basic subcontracting
 .. |POs| replace:: :abbr:`POs (Purchase Orders)`
 .. |BoM| replace:: :abbr:`BoM (Bill of Materials)`
 
-In manufacturing, subcontracting is the process of a company engaging a third-party manufacturer, or
-subcontractor, to manufacture products that are then sold by the contracting company.
+In basic subcontracting, a company's product is produced entirely by a subcontractor. The product is
+first purchased from the subcontractor, who acquires their own components, manufactures the final
+product, then delivers the final product to the contracting company's warehouse.
 
-In basic subcontracting, the subcontractor is responsible for acquiring the necessary components.
-This means that the contracting company only has to worry about what happens to subcontracted
-products once they are produced.
-
-The workflow for purchasing a product manufactured using basic subcontracting is similar to the one
-used when purchasing a non-subcontracted product from a vendor. The main differences are the way
-that subcontracted products are configured, and the fact that subcontracted products take longer to
-be sent from the vendor, since they must first be manufactured by them.
+The following documentation covers how to configure a subcontracted product and trigger the
+subcontracting process.
 
 Configuration
 =============
 
-To use subcontracting in Odoo, navigate to :menuselection:`Manufacturing app --> Configuration -->
-Settings`, and tick the checkbox next to the :guilabel:`Subcontracting` setting, under the
-:guilabel:`Operations` heading. Then, click :guilabel:`Save`.
+To use subcontracting, contractors must first configure products with a :ref:`vendor pricelist
+<purchase/products/pricelist>` as well as a subcontracting-type |BoM|.
 
-Once the :guilabel:`Subcontracting` setting is enabled, it is also necessary to properly configure
-the subcontracted product, and the product's |BoM|.
+The pricelist allows the contracting company to purchase the product from the vendor (subcontractor)
+through a |PO|, while the |BoM| allows the product to be manufactured externally by the
+subcontractor.
 
 .. _manufacturing/workflows/subcontracting_basic/product-config:
 
-Configure product
------------------
+Configure product vendor
+------------------------
 
-To configure a product for basic subcontracting, navigate to :menuselection:`Inventory app -->
-Products --> Products`, and select a product, or create a new one by clicking :guilabel:`New`.
+To configure a product's vendor for basic subcontracting, navigate to :menuselection:`Inventory app
+--> Products --> Products`. Then, select a product or create a new one.
 
-On the product form, select the :guilabel:`Purchase` tab, and add the product's subcontractor as a
-vendor by clicking :guilabel:`Add a line`, selecting the subcontractor in the :guilabel:`Vendor`
-drop-down menu, and entering a price in the :guilabel:`Price` field.
+On the product form, click the :guilabel:`Purchase` tab and add the product's subcontractor as a
+vendor by clicking :guilabel:`Add a line`. Select the subcontractor in the :guilabel:`Vendor`
+drop-down menu.
 
-Then, click on the :guilabel:`Inventory` tab, and use the :guilabel:`Routes` field to configure a
-route that determines what happens to the finished product once it has been manufactured by the
-subcontractor.
+Then, enter the price of the product in the :guilabel:`Price` field.
 
-If the finished product is shipped back to the contracting company, make sure the :guilabel:`Buy`
-route is selected. In addition, select the :guilabel:`Replenish on Order (MTO)` route to
-automatically create a |PO| for the product upon confirmation of a sales order (SO), unless there is
-enough stock on-hand to fulfill the |SO|.
+Finally, set a :doc:`lead time <../../inventory/warehouses_storage/replenishment/lead_times>` for
+the product in the :guilabel:`Delivery Lead Time` field to specify the number of days for the
+subcontractor to produce and deliver the final product.
 
-If the finished product is shipped directly to the customer by the subcontractor, make sure that
-**only** the :guilabel:`Dropship` route is selected.
+.. note::
+   Since contractors are only responsible for purchasing and receiving the final product, they do
+   not need to additionally configure manufacturing lead times on a |BoM|. Instead, provide only a
+   single *Delivery Lead Time* on the vendor pricelist that factors in both the subcontractor's
+   manufacturing and delivery time.
+
+.. _manufacturing/workflows/subcontracting_basic/bom-config:
 
 Configure BoM
 -------------
 
-To configure a |BoM| for basic subcontracting, click the :guilabel:`Bill of Materials` smart button
-on the product form, and select the desired |BoM|.
+After specifying the vendor, configure a subcontracting-type |BoM| for the product. Click the
+:guilabel:`Bill of Materials` smart button on the product form. Then, select the desired |BoM| or
+create a new one.
 
-Alternatively, navigate to :menuselection:`Manufacturing app --> Products --> Bills of Materials`,
-and select the |BoM| for the subcontracted product.
+.. tip::
+   Alternatively, navigate to :menuselection:`Manufacturing app --> Products --> Bills of
+   Materials`, and select the |BoM| for the subcontracted product.
 
-.. seealso::
-   For a full overview of |BoM| configuration, see the :doc:`Bill of materials
-   <../basic_setup/bill_configuration>` documentation.
+In the :guilabel:`BoM Type` field, select :guilabel:`Subcontracting`. In the resulting
+:guilabel:`Subcontractors` field, add one or more subcontractors.
 
-In the :guilabel:`BoM Type` field, select the :guilabel:`Subcontracting` option. Then, add one or
-more subcontractors in the :guilabel:`Subcontractors` field that appears below.
+Because the components and manufacturing are both handled by the subcontractor, there is no need to
+list any components in the :guilabel:`Components` tab of the |BoM|.
 
-.. image:: subcontracting_basic/bom-type.png
-   :align: center
-   :alt: The "BoM Type" field on a BoM, configured to manufacture the product using subcontracting.
+.. image:: subcontracting_basic/basic-sbc-bom.png
+   :alt: Bill of Materials configuration for subcontracting in Odoo.
 
-Finally, click on the :guilabel:`Miscellaneous` tab. In the :guilabel:`Manuf. Lead Time` field,
-enter the number of days it takes the subcontractor to manufacture the product. This number is
-factored in when calculating the product's expected arrival date.
-
-.. note::
-   When using basic subcontracting, there is no need to list components in the
-   :guilabel:`Components` tab of the |BoM|, since the components required for manufacturing, and the
-   means by which they are acquired, are handled by the subcontractor.
+.. _subcontracting_basic/workflow:
 
 Basic subcontracting workflow
 =============================
 
-The basic subcontracting workflow consists of up to four steps:
-
-#. Create a sales order (SO) for the subcontracted product; doing so creates a |PO| to purchase the
-   product from the subcontractor.
-#. Confirm the |PO| created in the previous step, or create a new |PO|; doing so creates a receipt
-   order or a dropship order.
-#. Process the receipt once the subcontractor has finished manufacturing the subcontracted product,
-   and shipped it back to the contracting company, **OR** process the dropship order to ship the
-   product directly to the customer.
-#. If the workflow was started by creating an |SO|, and the finished product is not dropshipped to
-   the end customer, process the delivery order once the product is shipped to the customer.
-
-The specific number of steps depends on the reason that the subcontracted product is being purchased
-from the subcontractor.
-
-If the reason is to fulfill a specific customer order, the process starts with creating an |SO|, and
-ends with delivering the product to the customer, or having the subcontractor dropship it to them.
-
-If the reason is to increase the quantity of stock on-hand, the process starts with creating a |PO|,
-and ends with receiving the product into inventory.
+.. image:: subcontracting_basic/subcontracting-flow.png
+   :alt: Basic subcontracting workflow diagram in Odoo.
 
-Create SO
----------
+The basic subcontracting workflow begins by :ref:`creating a PO
+<subcontracting_basic/workflow/create_po>` to purchase the product from the subcontractor (1).
 
-It is only necessary to complete this step if the product is being purchased from the subcontractor
-to fulfill a customer need. If the product is being purchased to increase the quantity of stock
-on-hand, move on to the next step.
+The contractor (YourCompany) then confirms the |PO|, which creates a receipt to transfer the final product
+(2). The subcontractor manufactures the product and delivers it back to the contractor when done.
 
-To create a new |SO|, navigate to :menuselection:`Sales app --> Orders --> Orders`, and click
-:guilabel:`New`.
+Once the product has been produced and received, the contractor :ref:`validates the receipt
+<subcontracting_basic/workflow/validate_receipt>` (5) to trigger :ref:`inventory moves
+<subcontracting_basic/workflow/track-inventory>` from the subcontractor to the company's stock (3,
+4).
 
-Select the customer in the :guilabel:`Customer` drop-down menu. Then, click :guilabel:`Add a
-product` on the :guilabel:`Order Lines` tab, select a subcontracted product in the
-:guilabel:`Product` drop-down menu, and enter a quantity in the :guilabel:`Quantity` field.
+.. _subcontracting_basic/workflow/create_po:
 
-Click :guilabel:`Confirm` to confirm the |SO|, at which point a :guilabel:`Purchase` smart button
-appears at the top of the page. This opens the |PO| created to purchase the subcontracted product
-from the subcontractor.
+Create and confirm PO
+---------------------
 
-.. note::
-   An |SO| for the product only creates a |PO| if the *Replenish on Order (MTO)* route is enabled on
-   the product's form, **and** there is not enough stock of the product on-hand to fulfill the |SO|.
-
-   If there is enough stock on-hand, confirming an |SO| for the product creates a delivery order
-   instead, because Odoo assumes that the |SO| is fulfilled using the stock in the warehouse.
-
-   This is not the case for subcontracted products that are dropshipped to the end customer. In that
-   case, a |PO| is **always** created, even if there is enough stock on-hand.
-
-Process PO
-----------
-
-If a |PO| was created in the previous step, navigate to it by clicking the :guilabel:`Purchase`
-smart button at the top of the |SO|, or by going to :guilabel:`Purchase app --> Orders --> Purchase
-Orders`, and selecting the |PO|. Then, click :guilabel:`Confirm Order` to confirm it, and move on to
-the next step.
-
-If a |PO| was not created in the previous step, do so now by navigating to :menuselection:`Purchase
-app --> Orders --> Purchase Orders`, and clicking :guilabel:`New`.
+To create a |PO| for the subcontracted product, navigate to :menuselection:`Purchase app --> Orders
+--> Purchase Orders`, and click :guilabel:`New`.
 
 Begin filling out the |PO| by selecting a subcontractor from the :guilabel:`Vendor` drop-down menu.
 In the :guilabel:`Products` tab, click :guilabel:`Add a product` to create a new product line.
-Select a subcontracted product in the :guilabel:`Product` field, and enter the quantity in the
-:guilabel:`Quantity` field. Finally, click :guilabel:`Confirm Order` to confirm the |PO|.
+Select the subcontracted product in the :guilabel:`Product` field, and enter the quantity in the
+:guilabel:`Quantity` field.
 
-When a |PO| is confirmed for a product manufactured using basic subcontracting, a receipt or
-dropship order is automatically created, and can be accessed from the corresponding
-:guilabel:`Receipt` or :guilabel:`Dropship` smart button that appears at the top of the |PO|.
+After adding the product, the :guilabel:`Expected Arrival` field is updated with the finished
+product's expected delivery date, as configured earlier with the vendor's *Delivery Lead Time*.
 
-.. figure:: subcontracting_basic/subcontractor-po.png
-   :align: center
-   :alt: A PO for a basic subcontracting product, with a Receipt smart button at the top of the page.
+Finally, click :guilabel:`Confirm Order` to confirm the |PO|. A receipt is automatically created,
+and a :guilabel:`Receipt` smart button appears at the top of the form.
 
-   PO for a basic subcontracting product, with a Receipt smart button at the top of the page.
-
-Process receipt or dropship order
----------------------------------
-
-Once the subcontractor has finished manufacturing the product, they either ship it to the
-contracting company, or dropship it to the end customer, depending on how the product was
-:ref:`configured <manufacturing/workflows/subcontracting_basic/product-config>`.
+.. _subcontracting_basic/workflow/validate_receipt:
 
 Process receipt
-~~~~~~~~~~~~~~~
+---------------
 
-If the subcontractor ships the finished product to the contracting company, once it has been
-received, navigate to :menuselection:`Purchase app --> Orders --> Purchase Orders`, and select the
-|PO|.
+After the order is confirmed, the subcontractor manufactures the product and delivers the finished
+good back to the contracting company.
 
-Click the :guilabel:`Receive Products` button at the top of the |PO|, or the :guilabel:`Receipt`
-smart button at the top of the page, to open the receipt. Then, click :guilabel:`Validate` at the
-top of the receipt to enter the product into inventory.
+To receive the finished product from the subcontractor, click the :guilabel:`Receive Products`
+button on the |PO|, or click the :guilabel:`Receipt` smart button at the top of the page. Then,
+click :guilabel:`Validate` to enter the incoming shipment into inventory.
 
-Process dropship order
-~~~~~~~~~~~~~~~~~~~~~~
+.. note::
+   If :doc:`multi-step inventory flows <../../inventory/shipping_receiving/daily_operations>` are
+   enabled, additional transfers must be validated to enter the incoming product into stock.
 
-If the subcontractor dropships the product, once they have sent it, navigate to
-:menuselection:`Purchase app --> Orders --> Purchase Orders`, and select the |PO|.
+.. _subcontracting_basic/workflow/track-inventory:
 
-Select the :guilabel:`Dropship` smart button at the top of the page to open the dropship order, and
-click :guilabel:`Validate` at the top of the order to confirm that the product has been sent to the
-customer.
+Track inventory moves
+---------------------
 
-Process delivery order
-----------------------
+After validating a receipt, Odoo automatically generates inventory moves to track the movement of
+subcontracted products between locations. To view these inventory moves, navigate to
+:menuselection:`Inventory app --> Reporting --> Moves History`.
 
-If the subcontracting workflow was started by a customer |SO|, and the finished product was **not**
-dropshipped to the customer, but rather delivered to the contracting company, it is necessary to
-ship the product to the customer, and process the delivery order.
+To track inventory movement in subcontracting, Odoo sends any product components to a dedicated
+*Subcontracting Location*. A :ref:`virtual location <inventory/warehouses_storage/location-type>`
+called *Production* then consumes the components and produces the finished good. Once produced, the
+good then moves back to the *Subcontracting Location* before finally entering the contractor's stock
+when the receipt is validated.
 
-Once the product has been shipped to the customer, navigate to the :menuselection:`Sales` app, and
-select the |SO|. Select the :guilabel:`Delivery` smart button at the top of the page to open the
-delivery order, and click :guilabel:`Validate` on the order to confirm that the product has been
-shipped.
+.. image:: subcontracting_basic/basic-sbc-moves.png
+   :alt: Moves History page to see subcontracting moves in Odoo.
+
+.. note::
+   Because no components are sent in basic subcontracting, there is no movement from the
+   *Subcontracting Location* to the *Production* location.