Complete Subcontracting Management for Job Work & Outsourced Manufacturing
Manage your entire subcontracting lifecycle — from sending raw materials to subcontractors, tracking outsourced production, receiving finished goods, handling scrap, and processing vendor invoices — all in one fully integrated system with inventory, accounting, and quality control.
Pain Points
Key Subcontracting Challenges We Solve
Managing outsourced manufacturing comes with real complexity — from material visibility gaps to costing errors. SBOSS addresses every pain point in the subcontracting lifecycle.
SBOSS Subcontracting Module puts control back where it belongs — with your operations team.
No Visibility of Materials at Subcontractor Location
Track raw materials issued to subcontractors using dedicated virtual subcontractor warehouses with real-time stock visibility.
Manual Job Work Tracking
Automate subcontracting orders, receipts, material transfers, and vendor processing workflows.
Complex Material Consumption & Returns
Handle partial consumption, scrap, byproducts, and unused material returns with accurate inventory tracking.
Incorrect Subcontracting Costing
Automatically calculate finished goods valuation including component cost, service charge, and additional costs.
Subcontracting Module Overview
The Subcontracting Module provides end-to-end control over outsourced manufacturing and job work operations. Businesses can send raw materials to subcontractors, track stock at vendor locations, receive finished goods, manage scrap and byproducts, perform quality inspection, and process service invoices — all with full stock and accounting integration.
Features
KEY
CAPABILITIES
Everything you need to manage your full subcontracting lifecycle — from issuing raw materials to tracking payments — built into a single integrated module.
Issue raw materials to subcontractors
Track stock at subcontractor warehouse
Create Subcontracting Orders with BOM
Send materials via stock entry
Receive finished goods via Subcontracting Receipt
Handle scrap and byproducts
Return unused materials
Subcontracting inward without order
Quality inspection support
Additional cost allocation
Partial receipt handling
Batch and serial tracking
Accounting integration
Subcontracting reports
Payment tracking
Issue raw materials to subcontractors
Track stock at subcontractor warehouse
Create Subcontracting Orders with BOM
Send materials via stock entry
Receive finished goods via Subcontracting Receipt
Handle scrap and byproducts
Return unused materials
Subcontracting inward without order
Quality inspection support
Additional cost allocation
Partial receipt handling
Batch and serial tracking
Accounting integration
Subcontracting reports
Payment tracking
Glossary
Key Concepts & Terminology
Subcontracting Order (SCO)
Formal order placed with subcontractor specifying finished item, service charge, BOM, and materials supplied.
Subcontracting Receipt (SCR)
Records receipt of finished goods and consumption of components.
Subcontractor Warehouse
Virtual warehouse representing stock at subcontractor location.
Service Item
Non-stock item representing subcontractor service charge.
Raw Material / Component
Stock items sent to subcontractors.
Finished Item
Items returned after the subcontracting process.
Bill of Materials (BOM)
Defines components required to produce finished item.
Subcontracting Inward
Receipt without Subcontracting Order.
Additional Cost
Extra charges like freight, transport, testing.
Configuration
Setup & Configuration
Item Master Configuration
Finished Item
Is Stock Item = Yes
Is Subcontracted Item = Yes
Raw Material
Is Stock Item = Yes
Available in source warehouse
Service Item
Is Stock Item = No
Is Purchase Item = Yes
Core Document
Subcontracting Order (SCO)
Primary document for job work.
SCO Header Fields
Core fields that define every Subcontracting Order — linking supplier, company, dates, and tax configuration.
Material Transfer to Subcontractor
Raw materials sent using Stock Entry.
Purpose: Send to SubcontractorSubcontracting Order
From Warehouse
To Warehouse
Items
Basic Rate
Stock moves from company warehouse to subcontractor warehouse.
Return of Unused Materials
Unused materials returned using stock transfer.
Subcontractor Warehouse
Company Warehouse
Unused components
Subcontracting Receipt (SCR)
Records finished goods received from subcontractors — capturing consumed components, additional costs, scrap, and byproducts in a single document.
Header Fields
Core fields that define every Subcontracting Receipt — linking supplier, order reference, date, and company.
Fields & parameters:
- Supplier
- Subcontracting Order
- Posting Date
- Company
- Supplier Delivery Note
Finished Items Table
Records the finished goods received from the subcontractor with full quantity and quality breakdown.
Fields & parameters:
- Item Code
- Qty
- Accepted Qty
- Rejected Qty
- Rate
- Valuation Rate
- Warehouse
- BOM
- Quality Inspection
The rejected quantity moves to the rejected warehouse.
Components Table
Tracks raw material consumption against what was sent — supporting batch and serial number traceability.
Fields & parameters:
- Item Code
- Required Qty
- Consumed Qty
- Batch No
- Serial No
- Warehouse
Batch and serial tracking supported for traceability.
Additional Costs
Extra charges allocated to finished goods valuation — distributed across items by quantity, value, or equally.
Fields & parameters:
- Freight
- Transport
- Testing
- Insurance
- Handling
- Distribute: By Quantity
- Distribute: By Value
- Distribute: Equal
Costs included in finished goods valuation.
Scrap Items
Track waste material generated during the subcontracting process and receive it into a dedicated scrap warehouse.
Fields & parameters:
- Add scrap item
- Quantity
- Valuation rate
- Target warehouse
Scrap received into a scrap warehouse.
Byproducts
Secondary output produced alongside the main finished item — reduces overall finished goods cost when valued.
Fields & parameters:
- Add byproduct item
- Assign valuation rate
- Reduce finished goods cost
Quality
Quality Inspection
Setup
Enable inspection required before purchase
Create quality inspection template
Workflow
Finance
Accounting Entries
Process
End-to-End Workflow
Create BOM
Create Subcontracting Order
Set Reserve Warehouse
Submit SCO
Send Materials to Subcontractor
Subcontractor performs job work
Create Quality Inspection
Create Subcontracting Receipt
Submit SCR
Create Purchase Invoice
Payment Entry
Subcontracting Inward
Receive subcontracted items without order.
When to Use
Ad hoc subcontracting
Emergency job work
Direct receipt
Fields
Analytics
Subcontracting Reports
Subcontracting Order Summary
View SCO status, ordered qty, received qty.
Subcontracted Items to be Received
Pending finished goods at subcontractors.
Raw Materials to be Transferred
Components pending dispatch.
Raw Materials Transferred
Audit report of materials sent.
Subcontracting Receipt Trends
Time series receipt report.
Integration with Other Modules
Roles & Permissions
Common Troubleshooting
Quick fixes for the most common issues encountered while working with the Subcontracting Module.
Cannot submit SCO — BOM not found
Create and submit the default BOM before raising the Subcontracting Order.
Components table empty
Check that a default BOM is set for the finished item.
Stock Entry fails — insufficient stock
Verify available stock in the source warehouse before transfer.
SCR negative stock
Transfer additional materials to the subcontractor warehouse first.
Valuation incorrect
Check component rate, service charge, and additional cost allocation.
Cannot cancel SCR
Cancel the linked purchase invoice before cancelling the receipt.
Quality inspection mandatory error
Create and submit the quality inspection for the receipt line.
Subcontractor warehouse negative balance
Transfer additional materials to cover the consumed quantity.
Navigation
Navigation Paths
Subcontracting > Subcontracting Order > NewSubcontracting > Subcontracting ReceiptStock > Stock EntrySubcontracting > Subcontracting InwardSubcontracting > ReportsStreamline Your Subcontracting Operations
Gain complete visibility over outsourced manufacturing with accurate material tracking, automated costing, and seamless vendor collaboration.
Start managing your subcontracting lifecycle with the Subcontracting Module today.
