Best Practices for Materials & PO

Hi Everyone,

We have a situation where we have the raw materials in stock that we send to a factory for final production.

What is the best process to move those materials to the supplier (as WIP?) and then have them associated with a Purchase Order for the external factory who is doing final production steps?

If anyone has a work flow they recommend it would be interesting to compare notes.

We have done this for the following production use case:

Germ Shark Wipes

  • Bucket
  • Cloth wipe rolls
  • Bucket Cap
  • plastic bag
  • seal

We own all of the above raw materials.

We then ship to a factory for Assembly:

Place Bag in Bucket
Place Cloth Wipes in Bag
Fill Wipes With 1Lt of “Germ Shark” Ethanol Mix
Seal Bag
Place Bucket Cap on Bucket

at the end we have a finished product.

What is your BOM, PO, or other work flows that you would recommend for a use case like this?

We may the same raw materials able to create thousands of final products so variations should be considered in this flow?

If anyone is an expert at this please let me know. I am pleased to compensate you for your time to help us understand this.


Hi, I believe you are doing the subcontracting. ERPNext have complete workflow for subcontracting manufacturing. Please check the below link for more details

You can create BOM and call the same in purchase order. Purchase order will be created against the finished good and you can transfer the raw materials to supplied warehouse. Once you recieved the finished product, you can create purchase receipt and it will recieve the fg and stock out the raw materials. You will require separate BOM for each FG. Hope this helps. Thank you

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This was very helpful! Thanks. I reminded me of some of the past purchase flows we’ve used. Thanks again!

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