Most of the businesses sometimes outsources their work to another vendor, who has additional machine capacity or he has the technical know-hows or we have to deliver the work in time and we are short of time. So we send the materials to a Vendor (Subcontractor) and ask them to complete the work as per our needs. This is called “Subcontracting work”. At the end of the process, we pay to the vendor for the work he did.

In this segment, we try to answer few questions like

1. What is subcontracting?
2. How Subcontracting work works?
3. What are the important factors to be considered?

Below are the basic settings to be done before you begin work on Subcontracting 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 subcontracting operations, Subcontracting work