Supply Raw Materials for Purchase

Please explain whats the function of Supply Raw Materials for Purchase option at the end of item setup
its the last field during new item setup

In version-4 , field name was " Is Subcontracted Item"
In version -5 this field name given as “Supply Raw material for purchase” means (Subcontracting)
-you are giving “Raw Material” to your supplier and supplier will give you Finished Goods(i.e Actual product)
example:- If you are giving raw material of item “Pen” i.e refill, cap to your supplier,then he will actually manufacture “Pen” and give it to you.

  • For that you need to create “BOM” for “Pen” item
  • then create purchase order for “Pen”
  • Transfer “Raw material” to supplier through “Material Transfer”
  • then select “Subcontract” purpose in “Stock entry” form .

Refer Link:-

Shraddha Ranjane
New Indictrans Technologies Pvt. Ltd.

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Coals for sale and forestry trees in Nigeria

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Hi Shraddha,
I wonder if you can answer below.
I am trying to create a PO to a supplier with items one is Sub-contract Item and the other is normal Item.But If I select YES at Supply Raw Materials, then the normal item has a problem.because it is not a subcontract’s item.
1.Is it possible to contain both items(subcontract & normal item) on one PO?
2.In addition, it is a redundant job for a user to check the supply raw material check box.Is there any way to make the checkbox as a default?

is there an update on this issue ? Did ERPNext 6.0 and above already solve this issue ?