1 2 Previous Next 17 Replies Latest reply: May 21, 2012 9:41 AM by PrabhuChepuri RSS

    OSP Item material issue

    Mahendra
      Hi,

      we have a DJ which has osp dept and which is linked with osp item.
      req and later PO got created when did a move transaction...later it was received back to shop floor..
      when we completed the job for this osp item which has supply type as supplier...still the on hand shows 0 and in open it has 5 quantities for this component

      Now the issue is how to know for this osp item which was received to the shop floor has been applied to this job.
      Note osp item was not inventory or stockable or transactable enabled..

      Is it like if the osp item is received from supplier is directly applied to this job??

      Mahendra
        • 1. Re: OSP Item material issue
          Stick
          The OSP item is just for the service that you purchased. Who did you have the components of the parent assembly set up? What is their Supply Type? Additionally what is the charge type in the OSP resource? We have it at PO Move thus when the osp-item gets received the WIP Move transaction occurs.

          Hope this helps
          • 2. Re: OSP Item material issue
            Mahendra
            Thanks stick
            Stick wrote:
            The OSP item is just for the service that you purchased.
            Who did you have the components of the parent assembly set up?
            I didn't get this

            What is their Supply Type?
            Supplier for the ospitem
            Additionally what is the charge type in the OSP resource?
            We have PO move too

            We have it at PO Move thus when the osp-item gets received the WIP Move transaction occurs.
            >
            Hope this helps
            Say for example if we have only one operation with ospitem as component...this is where the issue is for the DJ..i can see in the material requirement the quantity is still open when we finished the job

            Please advise

            Mahendra
            • 3. Re: OSP Item material issue
              Stick
              I believe the WIP Supply type of the OSP-item is irrelevant. The OSP-item is the means to purchase the service. You should have a parent assembly. The parent assembly has a BOM correct? Those components are what get consumed on the work order whether by Push or some sort of Pull. Doesn't matter if there is only one operation or not. Does you Parent assembly have comps other then the osp-item?
              • 4. Re: OSP Item material issue
                Mahendra
                Stick wrote:
                I believe the WIP Supply type of the OSP-item is irrelevant. The OSP-item is the means to purchase the service. You should have a parent assembly. The parent assembly has a BOM correct? Those components are what get consumed on the work order whether by Push or some sort of Pull. Doesn't matter if there is only one operation or not. Does you Parent assembly have comps other then the osp-item?
                Detailing more here..

                We have one assmebly for which we have a BOM and routing defined..It has only this OSP-item as component..
                So it has only this operation...I mean only 1...so when we moved this from queue to to move...requistion got created and corresponding PO is created..received it...Now user has done a complete transactions to finish this assmebly..now when he opens the job..and in that for this particular component..he sees quantity in open status....what he says is..as the osp item is received...he wants to see that in applied field...

                or

                Is it like as we are not making this assmebly in house...as this has osp operation only...we will pay to supplier...when he has done his job??

                Mahendra
                • 5. Re: OSP Item material issue
                  Stick
                  First you can change a setting in the WIP Parameters on the Outside Processing tab to have the Requisition Creation Time set at Job/Schedule Creation.

                  Secondly change the WIP Supply Type in the Org Item setup for the OSP-Item to Assembly Pull. When the job completes it will pull your OSP-item into WIP.

                  Hope this helps
                  • 6. Re: OSP Item material issue
                    Mahendra
                    Stick wrote:
                    First you can change a setting in the WIP Parameters on the Outside Processing tab to have the Requisition Creation Time set at Job/Schedule Creation.

                    Secondly change the WIP Supply Type in the Org Item setup for the OSP-Item to Assembly Pull. When the job completes it will pull your OSP-item into WIP.

                    Hope this helps
                    Thanks Stick

                    Business won't approve for me to change the wip parameter..as they need the req to be created when the move transaction happens..

                    I will test it with assembly pull..and let you know if that works..am still concerned with the on hand thing of the osp item...as it not received in inventory rather to shopfloor..

                    I checked it with assmebly pull and operation pull
                    I am hitting this error which is detailed in this note 884143.1

                    I think we have no other option but to make this ospitem stockable and transactable as workaround

                    Maybe we are hitting a bug here

                    Mahendra

                    Edited by: Mahendra on May 3, 2012 4:24 PM
                    • 7. Re: OSP Item material issue
                      PrabhuChepuri
                      Mahendra,

                      At first, as a general functionality, you need not have the OSP item as the component in the Finished goods BOM. As some of our other friends mentioned earlier, OSP item is a representation of service you are getting from supplier and it is not a raw material for manufuacturing your finished good.

                      for your requiremnt, create a osp item, attach it to the OSP resource, Attach resource to a department, have that departement and osp resource in the ROuting for that Finished good and proceed with Job creation for that finished good.

                      If you are creating a standard discrete job for this assembly , system gives a caution message that bill does not exist, just acknowledge and go ahead. system will let you proceed.

                      Based on the setup that you make in wip parameters/ OSP tab , system generates the requisition for the osp item accordingly.convert it to PO, recieve the PO and system charges the cost to osp account of wip accounting class mentioned in the job.

                      In your example, since you defined a BOM for the FG with osp item as component, system is taking that as a raw material/component that needs to be issued to that job and it is showing open as you have never issued it or it has not consumed as the supply type is not in pull.

                      Let me know if you need furhter clarity.

                      Prabhu Chepuri
                      • 8. Re: OSP Item material issue
                        Mahendra
                        Prabhu Chepuri wrote:
                        Mahendra,

                        At first, as a general functionality, you need not have the OSP item as the component in the Finished goods BOM. As some of our other friends mentioned earlier, OSP item is a representation of service you are getting from supplier and it is not a raw material for manufuacturing your finished good.

                        for your requiremnt, create a osp item, attach it to the OSP resource, Attach resource to a department, have that departement and osp resource in the ROuting for that Finished good and proceed with Job creation for that finished good.

                        If you are creating a standard discrete job for this assembly , system gives a caution message that bill does not exist, just acknowledge and go ahead. system will let you proceed.

                        Based on the setup that you make in wip parameters/ OSP tab , system generates the requisition for the osp item accordingly.convert it to PO, recieve the PO and system charges the cost to osp account of wip accounting class mentioned in the job.

                        In your example, since you defined a BOM for the FG with osp item as component, system is taking that as a raw material/component that needs to be issued to that job and it is showing open as you have never issued it or it has not consumed as the supply type is not in pull.

                        Let me know if you need furhter clarity.

                        Prabhu Chepuri
                        Thanks Prabhu

                        I think without a bill for FG is not the best practice
                        you can create a DJ for assembly without bill and routing..only if u are uncertain about their operations and components..which will be required...
                        but here..i know what is required...so how can we handle this type of issue

                        can you point me to a link..where u mentioned...Bill is not required...if the assembly has a osp

                        Please advise

                        Mahendra

                        Edited by: Mahendra on May 19, 2012 9:52 PM
                        • 9. Re: OSP Item material issue
                          HrishikeshJ
                          Mahendra,

                          Reply posted by Prabhu Chepuri is indeed the standard way to setup OSP.

                          When you create setup as mentioned by Prabhu, the PO Requisition gets created after you perform move transaction (as specified in WIP Parameter)
                          This requisition has link to WIP Job (thru reqisition distribution).
                          You can autocreate this requisition into PO, or autocreate into blanket release, or setup BPA/ASL/Sourcing Rule to automatically create blaknet release.

                          Lastly, if you create the resource with charge type as PO Move, on receiving the OSP item to shopfloor, another move transaction is automatically triggered which moves the corresponding job to the next step. (If OSP step happens to be the last step in routing) it also completes the job.

                          Always remember that the OSP item only corresponds to labor portion of the job...its an expense item, do not think about it as a physical item.
                          ---------

                          In general, you can have 3 flavors of OSP.
                          1. where we do some processing, then send partially completed subassembly to vendor for processing
                          2. where we provide raw material to outside vendor and ask him to do complete processing.
                          3. where raw material is managed by supplier himself

                          Case 1
                          you will have BOM and routing (when first few steps correspond to internal processing) and imtermediate/last step will be OSP

                          Case 2
                          In this case, BOM needs to be defined, routing will have only one step...i.e. OSP.

                          Case 3
                          In this case, BOM may not be defined at all, routing will have only one step...i.e. OSP.
                          However, if vendor sends invoice corresponding to labor and raw materials separately, then its a good idea
                          to create BOM with raw material having supply type as 'Supplier'
                          Supply Type 'Supplier' is almost like 'Bulk' except that its provided by vendor. (Its a physical inventory item)

                          Don't get confused with OSP Item and bom supply type Supplier.


                          Thanks,
                          Hrishikesh
                          • 10. Re: OSP Item material issue
                            PrabhuChepuri
                            Great summarization of Oracle OSP functionality Hrishikesh..Awesome !!

                            Mahendra, now you should be clear on how to handle your OSP requirement..

                            Prabhu Chepuri
                            • 11. Re: OSP Item material issue
                              Mahendra
                              Thanks Hrisikesh and Prabhu

                              I am slowly getting into it..

                              So as i mentioned in my thread...Assmebly has only one operation..ie.osp
                              so what should be my case...is the case 2..you mentioned??

                              The reason why am asking is..when the DJ is completed against that osp operation...the mataerial requirment shows...it is open...but never in applied state
                              yes osp item is expense item...so push and pull are out of scope here...so supply type would be supplier
                              only thing am not getting right is...when the vendor sends back the ospitem..to shopfloor...how can we track..whether it is applied to this job

                              Thanks once again guys

                              Mahendra
                              • 12. Re: OSP Item material issue
                                PrabhuChepuri
                                Mahedra,

                                As you mentioned that you just have a OSP operation and no other raw material for manufacturing the FG, i am assuming that the raw material requirement is also managed by your supplier. In this scenario, your requirement falls in Case 3 where you need not define a BOM at all for your fininshed good. just have the routing with the OSP operation. Explain the concept to your business and make arrangements for inactivating the BOM for your finished good, if you have already defined one.

                                You doubt is valid. We don't have the facility to track the qty for OSP item in Oracle ( OSP item is not stockable ). Only way to know if OSP is chaged to the job or not is to check that there are no pending resource transactions for that OSP item receoipt and OSP account of the WAC of the job is showing a value in WIP value summary for that job.

                                Prabhu Chepuri
                                • 13. Re: OSP Item material issue
                                  HrishikeshJ
                                  thanks
                                  • 14. Re: OSP Item material issue
                                    Mahendra
                                    I have done assembly for a FG with routing..and no bill...which has only this ospitem
                                    when i moved the operation from queue 10 to queue to move..req got generated...and po received accordingly..
                                    but i have to do a completion transaction after that...*Is it Intended*??

                                    Still when i go to query this DJ..then operation..then resources..it still shows resource required 1 and open 1...and nothing in applied
                                    I got the on hand to completion sub inventory though
                                    then i went to pending resource transactions there i can see phase as resource validations and status pending...is this responsible for resource no showing in applied state

                                    Thanks
                                    Mahendra
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