Subcontracting

Go to: Manufacturing → Subcontracting

Subcontracting allows you to outsource specific manufacturing operations to external vendors. Raw materials are sent to the vendor, and finished/semi-finished goods are received back.

Subcontracting BOM

Go to: Manufacturing → Subcontracting → Subcontracting BOM

A subcontracting BOM defines what materials need to be supplied to the vendor and what finished goods are expected back.

Field	Description
Item to Produce	The item the vendor will produce
BOM	The BOM defining materials to send
Vendor	The subcontracting vendor

Subcontracting Order

Go to: Manufacturing → Subcontracting → Subcontracting Order

Create Subcontracting Order

Navigate to Manufacturing → Subcontracting → Subcontracting Order and click New.

Fill in Order Details

Field	Description
Vendor	Select the subcontracting vendor
Item	The item to be subcontracted
Quantity	Quantity to produce
Expected Date	Expected completion date

Transfer Materials to Vendor

Use the Transfer Materials button to create a stock entry that moves raw materials to the vendor’s location/warehouse.

Save and Submit

Click Submit to send the order to the vendor.

Subcontracting Receipt

Go to: Manufacturing → Subcontracting → Subcontracting Receipt

When the vendor delivers the finished goods back:

Create Subcontracting Receipt

Navigate to Manufacturing → Subcontracting → Subcontracting Receipt and click New (or create from the subcontracting order using Make Receipt).

Verify Quantities

Confirm the quantities received match the order.

Submit

Click Submit to receive the finished goods into inventory. The system automatically adjusts the raw material stock sent to the vendor.

Materials to Be Transferred / Items to Be Received

Use these reports under Manufacturing → Reports to monitor:

Materials To Be Transferred — Raw materials pending transfer to vendors
Items To Be Received — Subcontracting orders pending receipt
Subcontracting Order Summary — Status overview of all subcontracting orders