Subcontracting process: In this process material procures from vendor by providing

required component or input materials from our company to vendor.

We can go with subcontracting process due to lack of skilled technicians or lack
of infrastructure or lack of time
Mat-x
(Finished
mat)

Receive end product i.e

Mat-Y Mat-z Mat –z from subcontractor
(Semi finished) (Semi
finished)

Mat-a Mat-b Mat-c Mat-d

(Raw mat) (Raw (Raw (Raw
mat) mat) mat)
Subcon
Provide input materials tractor
i.e mat-c 10 pc
mat-d 10 pc
to subcontractor

Create BOM for Subcontracting Info record Purchase Requistion

End product Mat-z Vend –z Mat-z Qty 10 pc
Mat-z 1pc Plant-z P.org-z In Subcontracting process
Comp qty In Subcontracting process By providing input
Mat-c 2pc Validity period materials i.e mat-c 20pc
Mat-d 3pc 1st apr 19 to 31st mar20 Mat-d 30pc
Rs 100/pc To subcontractor

Purchase Order w.r.t PR

Mat-z Vend-z Qty10pc Rs 100/pc
In Subcontracting process
Providing input materials are
Goods
Mat-cIssue
20pc w.r.t
and PO
Mat-d 30pc
Mat-c 20pc Issue Store-x
Goods Receipt Mat-d 30pc Vedn-Z
IRw.r.t PO for w.r.t PO
Mat-z 10pc Mat-z Qty 10pc
Rs 100/pc +
Service tax 10%