Manufacturing
Streamline Subcontracting with ERPNext
ERPNext makes it easy to manage subcontracting operations by allowing you to send raw materials to suppliers and track finished goods seamlessly. Control material flow, automate billing, and monitor supplier performance with ease.
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Send Raw Materials
Easily issue raw materials to subcontractors while maintaining accurate stock levels in your warehouse.
Track Material Consumption
Monitor how subcontractors consume raw materials to produce finished goods, ensuring transparency and accuracy.
Automated Billing
Generate Purchase Invoices based on subcontracting services and material usage directly within ERPNext.
Supplier Performance
Track supplier efficiency, delivery times, and product quality to make informed decisions for your business.
Why Subcontracting in ERPNext?
Reduce overhead, improve efficiency, and gain better control over outsourced production. ERPNext keeps your subcontracting workflow smooth and transparent.
Learn MoreHow subcontracting works in ERPNext
Subcontracting order
Create an order for the job worker with the finished item, quantity and service rate.
Send material
Transfer raw materials to the job worker's warehouse. Stock stays in your books.
Receive goods
Record the finished goods received. ERPNext works out the material consumed based on the BOM.
Bill and reconcile
Book the job worker's service bill and check any material still with them.
Frequently asked questions
Is the material at the job worker still shown in our stock?
Yes. Material sent to a job worker sits in a separate warehouse for that supplier, so it stays in your stock value.
Does ERPNext support GST job work rules?
Yes. With the India Compliance app, you can create the required job work challans and file the related returns.
Can we subcontract only one stage of production?
Yes. You can subcontract a sub-assembly or a single process, and do the rest in-house.
Related topics
Track your job work properly
We can set up subcontracting for your job workers and processes.
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