MRP Subcontract

While creating "Bills of Materials" if product is used as a raw material and product are given away on subcontracts for production, then Select BOM Type 'Subcontracting' and configure subcontractor details.

'Out Type' and 'In Type' are required to create BOM of subcontract type. They are picking types used to create in and out delivery orders. Configure locations for both in and out pickings.

Create "Bills of Materials", its contains subcontracting products.

Create Manufacturing Order for Bills of Materials, its contains subcontracting products.

Create Work-orders for manufacturing order by clicking on 'Create Work-orders' Button. As we can see here 3 work-orders are created as per our configurations and subcontracting raw material stock is not available in warehouse. Other raw materials have stock in warehouse and they are reserved.

First work-order will be finished successfully because we have raw material in stock.

Second work-order contains subcontracting raw material. Which is not available in stock. So here system will give warning of 'Raw Material(s) are not available!'.

If you have already processed subcontracts and still getting this warning. Go back to manufacturing order and click on 'Check Availability' button.

Click on 'Subcontracting Order' button and it will create 2 pickings :
1. Out picking for subcontracting product raw materials.
2. In picking for subcontracting product.
It will also create a purchase order of subcontracting charges (Service).

We can start work-order even if raw material is out of stock. But we can not finish it. It's up-to user if want to include subcontract time in work-order or not.

Click on 'Subcontracting Order' button. It will create 2 pickings and 1 Purchase order and link with related work-order.

These Are 2 pickings created. WH/OUT/00011 is outgoing picking of subcontract raw materials and WH/IN/00007 is incoming picking for subcontracting product.

When outgoing picking is transferred, user can see a button 'Move Subcontract Stock'. Right now subcontract raw material stock is in subcontract location. when subcontract process is done, user will click on this button and move subcontract raw material stock to subcontract done location.

When user will click on 'Move Subcontract Stock' button, A pop-up will be visible showing raw material used in production process with available quantity in subcontract location. user will update quantity used in production process and move them to subcontract done location.

'Move Subcontract Stock' button will be visible in outgoing pickings only.

When Incoming picking is in 'Waiting' State, 'Add Finished Products' button will be visible. This process will be done once subcontract production is done and subcontract product is available at subcontract location.

When user will click on 'Add Finished Products' button, a pop-up window will be visible showing subcontracting product and quantity. User can update quantity if needed.

When user will add stock of subcontracting product, picking will move to 'Ready' state from 'Waiting' state.

When picking is in 'Ready' state, user can transfer it to 'Done' state and subcontract product stock will be transferred to warehouse stock location.

Subcontract process creates a purchase order as well, for subcontracting service amount paid to subcontractor. User can update service amount if needed, confirm order and create bill.

A purchase bill will be generated from purchase order for payment of subcontracting services and invoice partner will be subcontractor.

Now, If user will go to manufacturing order and click on button 'Check Availability', Available stock will be reserved for subcontracting product.

Now, we can see warning is not in work-order anymore for raw material out of stock. we can process work order and finish process.

Third work-order is normal work-order. It's raw materials are available in stock so we can process is normally and finish process.

When all 3 work orders are processed successfully, we can finish manufacturing order and move it to 'Done' state.