Subcontracting of work is common in manufacturing because of the inability or lack of technology in the company etc. The subcontractor is in charge of maintaining the process documentation which is a long and error-prone process. The companies should have a solution to maintain records and documentation. We have developed a seamless system running on SAP Business One.

1. Manufacturing: SAP Sub
Contracting Process
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2. Our Sub-contracting Add-On which can deal with both cases and give a seamless
experience to the users on SAP Business One. They can conduct many SAP sub-
contracting process-related transactions given below.
Introduction
Manufacturing: Sub Contracting Process in SAP Business One (B1)

3. • Vendor Sub-contracting
• Creating a processing Challan
• Receiving the unprocessed material/Cancel Challan
• Receiving material that is processed from subcontractor
• Maintaining many sub-contracting BOMs for the same item
• Handing items that are batch managed
Manufacturing: Sub Contracting Process in SAP Business One (B1)
Manufacturing: SAP Sub Contracting Process

4. • Items mapping with subcontractors
• Receiving scrap from a subcontractor
• Reports for checking the stock which is lying with sub-contractor
• Report for challan /item wise reconciliation
• Labour charges paid to the sub-contractor
Manufacturing: SAP Sub Contracting Process
Manufacturing: Sub Contracting Process in SAP Business One (B1)

5. • Creating a returnable challan
• Receiving back items which were sent on returnable challan
Processing of Returnable Items
Manufacturing: Sub Contracting Process in SAP Business One (B1)

6. • Receiving customers’goods
• Returning the goods which are unprocessed
• Conducting the assembly operations
• Dispatching the processed goods back to the customers
• Create a labour invoice regarding the customer challan number
• Stock or challan reconciliation reports
SAP Sub-contracting process for customers
Manufacturing: Sub Contracting Process in SAP Business One (B1)

7. THANK YOU
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