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ERPNext Manufacturing

What is Subcontracting?

ERPNext's Subcontracting module manages job-work orders where raw materials are sent to an outside vendor who returns finished or semi-finished goods.

Subcontracting Workflow

Create a Subcontracting Order (under Buying) linking the BOM and vendor. Send raw materials via a Stock Entry (Material Transfer to Supplier). When goods return, create a Subcontracting Receipt — ERPNext consumes the sent materials and adds finished goods to your warehouse.

Tracking Materials at Vendor

ERPNext maintains a virtual "Supplier Warehouse" to track materials sent but not yet returned. The "Stock with Supplier" report shows all materials at each sub-contractor. You can set a minimum delivery date and track delays.

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