What is Job Work Operation?

Job Work Operation is the direct opposite of Subcontracting work.

Here the ROLE of the end user is changed where the Vendor is recording the materials received from Customer and track it to complete the work and close it. Challenges in this are as below.

1. Need to track end to materials received from Customers.
2. Need to match the SAME items consumed against the FG thats produced.
3. Ensure that these items are mixed or added to your inventory and not reported in your balance sheets.

Many businesses outsources their additional work to a Subcontractor, who has additional machine capacity and he receives the materials and work on it.

In this segment, we try to answer few questions like

1. What is Job work and how its different from Subcontracting work?
2. How Job work works?
3. What are the important factors to be considered?
4. How the inventory is managed in a Job Work as the same materials could be bought in-house too.

Below are the basic settings to be done before you begin work on Job Work Operation Module

1. Vendor / Customer master.
2. Define VENDOR / CUSTOMER names LOCATION IDs to track the materials sent to them.
3. Product ID
4. Bill of Materials (BOM)
5. ODC and IDC serial numbers enabled in “Inventory Settings” menu.

Tags customer JobWork Operations, Job Work Operations