3. Subcontracting Operations

How to handle Subcontracting manufacturing?

Job Work For Subcontractor

This is the process in which the Customer will send the RM to a subcontractor / vendor to convert the RM into a FG. Customer will follow the below process

  1. Create a Job work order – This is an agreement between Customer and a Subcontractor with clear details like unit price per work etc.
  2. Outward DC – Customer will make an outward DC and send the Raw materials to Subcontractor
    1. Here Customer will mention the FG and its Quantity to receive.
    2. Raw materials sent
  3. Inward DC – Customer will make this document when he receive the FG and scrap items, if any. This reduces the stock that’s sent to Subcontractor
  4. Convert the Inward DC to a Purchase order and do the payments

Note: The Job wok, Inward and Outward DC layouts, field details etc are similar to JOB WORK For Customer menus.

Job work Order – The screen is as below with Subcontractor details and FG that would be delivered.

Subcontracting Jobwork

Subcontracting Jobwork

 

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