Create a Subcontract Manufacturing Order

You can create a Manufacturing Order using a subcontract bill of materials just like you would with a standard bill of materials. The manufacturing order tracks the raw materials sent to the vendor and the service charges payable, while the actual production is carried out by the vendor.

Prerequisite:

Create a Subcontract Bill of Materials for the item to produce.
Configure a location representing the vendor as a Warehouse-only location.

To create a subcontract manufacturing order,

Go to Manufacturing on the left sidebar.
Navigate to Manufacturing Orders on the top module bar.
Click +New in the top right corner.
- Alternatively, go to Items then Bill of Materials, open the subcontract bill of materials, and click Create Manufacturing Order. The Item to Produce and Bill of Materials fields are pre-filled.
Select the Item to Produce. Learn more about the standard manufacturing order fields.
Select the subcontract Bill of Materials you created for the item. The configured Service Items are automatically displayed based on the selected bill of materials.
Enter the Quantity to Produce.
Select the Start Date.
Choose the Assigned Owner, if required.
Enter a Reference#, if required.
Select the Location where the raw materials will be sent for production. This must be a Warehouse-only location representing the subcontractor.
Review the Components tab and the Services tab.
Click Save as Draft or Save and Confirm.

Note: You can edit a subcontract manufacturing order the same way, only when it is in Draft status. Once it is marked as Completed, it can no longer be edited.

Insight: To understand how a subcontract manufacturing order differs from a standard manufacturing order and the stages it goes through, see Understanding Subcontract Manufacturing.