Handling incoming subcontracting

Hi All,

Our company owns a manufacturing plant and we do subcontracts for multiple customers. Ex: One of our customers provides butter and asks for the Ghee as output.

I know if we are giving the subcontracting, subcontracting order, PO, stock entry and subcontracting receipt to be created. But, in our scenario, we are subcontractors.

Main questions are as follows:

  1. As stock inward is happening from customer’s location, how to show this?
  2. As stock inward happens, if we create a stock entry, how it will affect the valuation of the Item or accounting ledgers?

Can someone help us in solving this problem? We are okay with new development if any ideas are provided.

Thanks in advance.

For the item in manufacturing, you can check the box “is customer provided”. This way you can track location of item, but it will not change accounting values.