Subcontracting an operation

Consider this scenario, I am manufacturing a HARDENED DOWEL PIN (Image attached below for reference). the workflow of production is as follows :

  1. Cutting of raw material : INHOUSE
  2. Chamfering : INHOUSE
  3. Drilling : INHOUSE
  4. Tapping : In-house or Outsourced (depending upon available machining capacity)
  5. Heat Treatment : Outsourced
  6. Grinding : INHOUSE
  7. Packaging : INHOUSE

if you see the point number 4, this operation is either performed in-house or it. is outsourced depending upon the spare machining capacity available with me. so my question is,

  1. Is there a way for me to decide whether to out source/subcontract this operation or not after the work order has been issued ?

  2. If I Outsource this operation, there are 2 more operations following it out of which 1 is being performed in-house. how do I manage the flow of raw material ? how will the BOM for this production of HARDENED DOWEL PIN look like ?

Please help

Thanks in advance


You have to make complete BOM as per your raw materials and Operations. You have to decide at the time of the Production Plan which operation you want to subcontract. It will then Create Purchase Order and Work Order as Per your Selections

what if while making the production plan I had decided to perform certain operation in-house and issued a work order for the component too an now while the production process is actually being carried out I change my mind and decide to subcontract that particular operation. is this not possible in. ERPnext?

You can break this item into multiple sub-items. That will simplify things for you.


  • Raw Material item at Stage 0.
  • WIP Item after Stage 3.
  • Heat Treated item after Stage 5.
  • Finished Goods after Stage 7.

You can have intermediate BOMs as you need/create POs for subcontracting.