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Subcontracting Process

 Note: Speak to GreeneStep Support Team to setup this process in GreeneStep

Test Data for Illustration
  1. Final Finished Goods - GeSGBSX V Mounted Panel Device
  2. Semi-finished Item (Subcontract Assembly) - GeSGBSX, Front Panel Assembly 

(Part of GeSGBSX V Mounted Panel Device)

  1. Subcontract Raw Material 1 - GeSGBSX PCBA Front Panel, quantity per BoM = 2 EA
  2. Subcontract Raw Material 2 - GeSGBSX RMP ST Matt Powder, quantity per BoM = 3 KGs
  3. Subcontract Process description - GeSSubCon FTPL Coating required

(Add the text in Sales Description box, in Sales tab of the Semi-Finished Item master.

Same will be displayed on the Subcontract Purchase Order)

  1. Raw Materials Issue Kit - GeSGBSX SubCon Kit for RM Issue
    1. Subcontract Raw Material 1 - GeSGBSX PCBA Front Panel, quantity per Kit = 2 EA
  2. Subcontract Raw Material 2 - GeSGBSX RMP ST Matt Powder, quantity per Kit = 3 KGs

(Kit used for issuing Raw Materials to the Subcontractor)

Prerequisites Definitions

All the Raw Materials, Semi-Finished Item, Subcontract Process description, Final Finished Goods BoM, and Raw Materials Issue Kit have been crated, along with Cost and other details. Ensure that the total Cost of Raw Materials is contained within the Subcontract process charges.

  1. Creating Production Order as per Final Finished Goods Sales Order and save in ‘Not Started’ stage. The Production Order will give required quantity of Semi-Finished Sub Assembly Item
  2. Procuring all the Raw Materials, including Subcontract Raw Materials from respective Suppliers, using MRP Run and Batch Purchase Order creation
  3. Raw Materials to be issued to the Subcontractor are thus available in Stock

Note: GreeneStep will assist in creating other configuration data required (new Transaction Templates and Extended Data) in the company database

Process Flow

Create new Subcontract Purchase Order for the Semi-Finished Sub Assembly Item (GeSGBSX Front Panel Assembly) as per required Final Finished Goods BoM Quantity, using Subcontract PO template in Purchases module

Create a Subcontract Material Issue document, using ‘SubCon RMOrder’ template in Purchase module

  • Open the Subcontract PO when you receive Semi-Finished Item from the Subcontract Supplier
  • Convert the Subcontract PO to Goods Receipt (Follow the standard process of receiving Goods, that you regularly follow for any other Material/Product) and save the transaction
Subcontract Process Report

With Subcontract PO, Raw Material Issue, Semi-Finished Goods Receipt and Purchase Invoice details.

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  1. Subcontract PO printing:

Need to create the new PO format as per requirement with GST/ Tax details