Subcontracting is a process in which the vendor receives materials to produce the end-product.
Subcontracting involves the following procedures:
=> By using the subcontract order, you order the end-product. The components that the vendor needs to manufacture the end-product are mentioned in the purchase order.
=> In the inventory management process, the components are posted to the stock of material provided to the vendor. Later, the components are supplied to the vendor.
==> The vendor then processes the service and delivers the materials ordered. The consumption of the components is posted.
=> Suppose after posting the goods receipt, the vendor notifies that some quantity of components is actually consumed than planned in the purchase order, you must make an adjustment.
=> The vendor then charges for the service, for which the invoice is posted in Invoice Verification.
Subcontracting involves the following procedures:
=> By using the subcontract order, you order the end-product. The components that the vendor needs to manufacture the end-product are mentioned in the purchase order.
=> In the inventory management process, the components are posted to the stock of material provided to the vendor. Later, the components are supplied to the vendor.
==> The vendor then processes the service and delivers the materials ordered. The consumption of the components is posted.
=> Suppose after posting the goods receipt, the vendor notifies that some quantity of components is actually consumed than planned in the purchase order, you must make an adjustment.
=> The vendor then charges for the service, for which the invoice is posted in Invoice Verification.
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