Subcontracting process For Incoming and Outgoing of Same item

Hi Shambhavi here,

Am new one to subcontracting process and ERP next, i have following clarification and it will be great if i get solution and suggestion for my queries.

Let me explain our scenario
We recieve a raw material from our customer along with PO and Returnable DC to do some operations, after completion of work we send it back with labour invoice.

ex: Material X (Raw material with RDC from customer along with labour PO)
labour PO have the following operations
Material X-1 (Annealing)
Material X-2 (VMC-2)
Material X-3 (Marking)
Material X-4 (Hardening_temp)
Material X-5 (Blackening)
Material X-6 (VMC-2) {this is the finished material required customer)

We create one item as Material X-6 (Finished Goods Warehouse) and will add BOM item as Material X by ticking operations check box
In operations check box i added those 5 operations.

Out of five we give 2 items for vendor to process next operation

Please let me know how to process this in ERP Next

it will be helpful if you attach documentation on this workflow.

Please check the following link, you may find it helpful

Thanks for Reply, we have already read that documentation, i need to process the subcontracting operation either in production order or time sheet.

please suggest on this.


Since all operations are labour / service it can be captured in timesheet through activity and costing.

Just a thought,
Mostly , u would have already tried , still sharing , you may treat Workstation as vendor warehouse/ site as below and process it further as per subcontract cycle.


1 Like

Hi Jignesh,

Thanks for your reply:slightly_smiling_face:

I have tried this session also, but in production order if i save and submit it will enroute to timesheet.
when i go inside timesheet Activity of subcontracted vendor should enroute us to make labour purchase order but it is not happening and it will allow us to save and do billing process.