Subcontracting Order

A subcontract purchase requisition is either generated via the Material Requirements

Planning (MRP) process or manually by a requestor. A buyer validates the accuracy of
the purchase requisition and converts it into a purchase order. The purchase order is
subject to approval based on predefined parameters prior to being issued to a vendor.
The consumption of sent components is recorded upon receipt of the value-added
finished material. The vendor sends the invoice for the services provided which is paid
during the normal payment cycle.

.
Requirement
of Subcontracting
Material

Create Subcontract PR

Create Subcontract PO

Approve PO

Subcontract PO

Post
Goods Issue

Delivery Note

Confirm Transfer
Order (Optional)

(Optional)
Generate Transfer
Order

Receive Material
at Dock

Incoming
Vendor Invoice

GR/IR PPV
Vendor

Invoice Receipt

(Optional)
Pick Confirmation

Goods Receipt

Print GR Slip

Create Delivery
Request

Delivery Pick
List

Inventory GR/IR
Subcontracting
Services/Consumption