Supply Chain · Subcontracting

Job work you can account for, piece by piece

Material leaves your store, a vendor works on it, and it comes back. The hard part is knowing what went out, what came back, what was scrapped, and what you owe. The Final ERP records each step as a document with a number, so the reconciliation at the end is arithmetic, not argument.

From request to settlement

Five steps. Each one is a page in the product and each one leaves a record.

1
Request
A requisition line the sourcing cockpit marks as subcontract, or an entry in the External Vendor Requests queue for production work or external maintenance.
2
Vendor and PO
Assign a vendor from the approved vendor list and convert the request into a purchase order. Terms and attachments ride on the PO.
3
Outward issue
Issue the material for process or assembly work. Serial custody moves to the vendor and stays visible while the work is out.
4
Receive and QC
Receive the worked material back and inspect it. Subcontract receipts are exempt from the GRN-without-PO rule, so a service-only PO does not block the return.
5
Reconcile
Compare issued against received, calculate scrap deductions and propose a debit note. Approve it before anything is deducted.

How a subcontract job moves

One chain of documents from the first request to the last debit note.

Inside the product

Outward Issues

Issue material to vendors for process and assembly work. The issue names the vendor, the order, the items and the serials. Custody is tracked until the receipt back, and the return goes through QC before it re-enters stock.

Process and assembly work on the same page
Serial custody per unit while it sits with the vendor
Receive back and inspect before stock is credited

External Vendor Requests

A purchasing queue for production subcontracting and external maintenance. Work that cannot be done in house lands here. Assign a vendor from the approved list and convert the request into a purchase order in one step.

One queue for production and maintenance work
Vendor assignment limited to the approved vendor list
Convert to PO without retyping the request

Cost Reconciliation

Settle each job on the numbers. The page compares what was issued with what came back, calculates scrap deductions and proposes debit notes for the vendor. The buyer reviews before anything is applied.

Scrap deduction calculated, not estimated
Debit note proposed per vendor and job
Review and approval before deduction

Sourcing that knows about subcontract

The sourcing cockpit can mark a requisition line as subcontract next to direct PO and RFQ. The same approved vendor list and the same approval tiers apply, so job work is purchasing, not a side channel.

Subcontract proposed per requisition line
Same vendor list and approvals as every other purchase
Subcontract receipts exempt from the GRN-without-PO rule

Speaks your market's language

Job work has its own words in every market; the documents stay the same underneath.

Outward issue

Job work challan · delivery challan · issue to vendor

Subcontract order

Job work order · conversion order · outsourcing PO

Cost reconciliation

Scrap settlement · debit note · vendor recovery

Questions buyers ask

Can I issue material to a vendor without a purchase order?: Material goes out on an outward issue against the subcontract order. The GRN-without-PO rule that applies to normal purchases exempts subcontract receipts, so the work can come back even where the PO covers only the service.
Who can receive material for job work?: Only vendors on your approved vendor list. The sourcing cockpit proposes subcontract per requisition line from that list, and the vendor request queue assigns from it too.
How is serialised material tracked while it sits with the vendor?: Each outward issue records which serials left and to whom. Custody stays with the vendor until the receipt back, so you can answer where a unit is at any moment.
What happens when the vendor returns less than was issued?: Cost reconciliation compares issued against received, calculates the scrap deduction and proposes a debit note for the vendor. You review and approve it; nothing is deducted silently.
Does it cover external maintenance as well as production work?: Yes. External Vendor Requests is one purchasing queue for both production subcontracting and external maintenance. Assign a vendor and convert the request into a purchase order.

Related supply chain pages:Supply Risk Goods Receipt Procurement Supply Chain overview

Put your next job work order on record

Load your approved vendors, raise a vendor request, and issue the first lot with serials tracked.

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From request to settlement

Five steps. Each one is a page in the product and each one leaves a record.

Request

A requisition line the sourcing cockpit marks as subcontract, or an entry in the External Vendor Requests queue for production work or external maintenance.

Vendor and PO

Assign a vendor from the approved vendor list and convert the request into a purchase order. Terms and attachments ride on the PO.

Outward issue

Issue the material for process or assembly work. Serial custody moves to the vendor and stays visible while the work is out.

Receive and QC

Receive the worked material back and inspect it. Subcontract receipts are exempt from the GRN-without-PO rule, so a service-only PO does not block the return.

Reconcile

Compare issued against received, calculate scrap deductions and propose a debit note. Approve it before anything is deducted.

Inside the product

Outward Issues

Process and assembly work on the same page
Serial custody per unit while it sits with the vendor
Receive back and inspect before stock is credited

External Vendor Requests

One queue for production and maintenance work
Vendor assignment limited to the approved vendor list
Convert to PO without retyping the request

Cost Reconciliation

Scrap deduction calculated, not estimated
Debit note proposed per vendor and job
Review and approval before deduction

Sourcing that knows about subcontract

Subcontract proposed per requisition line
Same vendor list and approvals as every other purchase
Subcontract receipts exempt from the GRN-without-PO rule

Questions buyers ask

Can I issue material to a vendor without a purchase order?

Material goes out on an outward issue against the subcontract order. The GRN-without-PO rule that applies to normal purchases exempts subcontract receipts, so the work can come back even where the PO covers only the service.

Who can receive material for job work?

Only vendors on your approved vendor list. The sourcing cockpit proposes subcontract per requisition line from that list, and the vendor request queue assigns from it too.

How is serialised material tracked while it sits with the vendor?

Each outward issue records which serials left and to whom. Custody stays with the vendor until the receipt back, so you can answer where a unit is at any moment.

What happens when the vendor returns less than was issued?

Cost reconciliation compares issued against received, calculates the scrap deduction and proposes a debit note for the vendor. You review and approve it; nothing is deducted silently.

Does it cover external maintenance as well as production work?

Yes. External Vendor Requests is one purchasing queue for both production subcontracting and external maintenance. Assign a vendor and convert the request into a purchase order.