What is Subcontracting Job Work Order?
“Subcontracting Job Work Order” is the Order that is agreed and issued to a Subcontractor with an agreed list of Products, Quantity and Unit Price to perform the subcontracting work and convert them to the needed finished goods.
Many Subcontractor’s will be negotiated very hard for the unit price for the Items and quantity that’s sent to them to work on. So Job Work Order is like a blanket order with an agreement between the Customer and Vendor that customer going to send minimum number of Quantities and vendor agreed for a fixed amount.
How Subcontracting Job Work Order helps?
So Customer would be using this Job Work Order as a reference to check the ODC and ensure that he sends the items as per the agreed terms. If the quantity sent exceeds the agreed quantity then ERP would stop the customer from sending more items and he has to renegotiate the unit price again. Or pay extra money as per the latest price points.
One Job Work can be used to make multiple Outward Delivery Challans (ODC). Each ODC can be used to make multiple Inward DCs or Multiple ODCs can be combined to make one IDC too.
Subcontracting Job Work Order Layout
Field Details of Job Work Order is as below
| No | Field ID | Field name | mandatory | Field description and how it helps? |
|---|---|---|---|---|
| 1. | Job work Number | Jobwork ID | Yes | It assigns a number to the particular job work order. It can also be entered manualy and create a new Jobwork Order. |
| 2. | Subcontractor ID | Subcontractor ID | Yes | It gives the unique Subcontractor identification number to each and every Subcontractor who is assigned the job work to be done. |
| 3. | Subcontractor Name | Name of the Subcontractor | Yes | Name of the subcontractor to whom the job work is assigned to. |
| 4. | Credit Terms | Terms of credit payment | Yes | It provides the duration for the payment to be made to the Subcontractor on receipt of Finished Goods. |
| 5. | Reference | Reference | No | Any reference made to job work is mentioned in this section. |
| 6. | Order Date | Jobwork Order date | Yes | It gives the particular date on which the job work order was received by the subcontractor. |
| 7. | Due Date | Validity of the Jobwork Order | Yes | Validity of this Jobwork Order. |
| 8. | Currency | Document currency | Yes | Currency code |
| 9. | Finished Goods ID | FG ID | Yes | FG ID |
| 10. | Description | Finished Goods Description | Yes | FG name. |
| 11. | Service ID | Service ID of the work to be delivered | Yes | Service ID of the work to be delivered |
| 12. | UOM | Unit of measurement | Yes | UOM of the service as it connects to the Unit Price. |
| 13. | Quantity to Deliver | Total quantity to be delivered to Subcontractor. | Yes | It gives an agreement on the total Quantity that would be processed for the specific service ID and amount to pay. |
| 14. | Unit Sale Price of Service | Sale price of service for one unit of Finished Good | Yes | It gives the Unit Selling Price for single Finished Goods. |
| 15. | Total Cost Of FG | Total Cost of Finished Good | Yes | It gives us the total cost incurred for producing the total number of Finished Goods. |
| 16. | Shipping Address | Address to be delivered to | Yes | It gives the destination address to where the Raw Material has to be delivered to. |
| 17. | Shipping Mode | Mode of Delivery | Yes | It gives the transportation mode by which the Raw Material will be delivered to the destination.Ex: By Air, Cargo etc. |
| 18. | Memo | Memo | Yes | Any other comments to be added here for the contract related terms. |
| 19. | TOTAL | Total amount | Yes | It provides the total amount charged for the job work done by the Subcontractor. |
Important Note
- Subcontracting Job Work Order helps to simplify the process of creating Outward Delivery Challan and what items to send etc.
- This helps to stop creating ODC, when the Job Work Quantity is fulfilled.
- However this is not a mandatory to create ODC. Many customers, directly create an ODC and send the Materials to Subcontractor.