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Create a Subcontract Bill of Materials

A Subcontract Bill of Materials defines the raw materials you send to a vendor and the service charges payable to the vendor for the outsourced production work. You use it to create a Subcontract Manufacturing Order that is fulfilled by an external vendor instead of your in-house work centres.

Prerequisite:

To create a subcontract bill of materials,

  • Go to Items on the left side bar.
  • Navigate to Bill of Materials in the top Module bar.
  • Click +New in the top right corner.
  • Enter the Name, select the Item to Produce, and enter the Quantity. Optionally, enter a Description. Learn more about these fields.
  • Select the Subcontract Bill of Materials checkbox.

Note: When you select Subcontract Bill of Materials, the Operations tab used in a standard bill of materials is replaced with a Services tab, since the outsourced work does not use your own work centres or operations.

Add Components

The Components tab lists the raw materials you send to the vendor to complete the outsourced production work. Adding at least one component is mandatory.

  • Switch to the Components tab.
  • Click + Add Component.
  • Select the component Name and enter the required Quantity. Learn more.
    • The Unit displays the base unit of the component.
  • Repeat to add more components.

Add Service Items

The Services tab lists the Service Items that represent the charges payable to the vendor for the outsourced operations. Adding at least one service item is mandatory. Each Service Item is a regular Item with Item Type set to Service.

  • Switch to the Services tab.
  • Click + Add Service.
  • Select the Name of the Service Item and enter the Quantity.
  • Repeat to add more service items.
  • Click Save.

Insight: Since Service Items don’t track inventory, they won’t appear while creating packages or shipments. They exist only to record the service charges billed by the vendor. Learn more about Service type items.

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