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How do I send materials to a subcontractor and receive the finished item?

Transfer the components of a subcontracting purchase order to the vendor's warehouse with Item Transfer. When the finished item comes back, receive it on Item Receipt for Purchase Order: the receipt consumes the components at the vendor and adds their cost to the item, and the vendor is billed only the fee.

Screen
Inventory › Transfer › Item Transfer; Inventory › Item Receiving › Item Receipt for Purchase Order
Who
The store, purchasing
Takes effect
On Save of the transfer and of the receipt
Needs first
A warehouse for vendor; a subcontracting purchase order with its components; the subcontracting journal and movement on the Inventory Control Setting; the cost revaluation journal on the Accounts Payable setting

Steps​

  1. Open Item Transfer, To Warehouse: the vendor's warehouse, and copy from the subcontracting order. Save.
  2. When the item is back, open Item Receipt for Purchase Order against the subcontracting order. Check its BOM Lines (and batches). Save.

The full walk-through, with barcode labels, is in Send components to a subcontractor and receive the finished item.

If something looks wrong​

  • "Subcontracting Consumption Journal and Subcontracting Consumption Movement must be defined in Inventory Setting ..."
  • "Line ID: ... - Subcontracting Warehouse is not defined on Purchase Order ..."
  • "Basic Data - Line ID: ... - BOM items of Purchase Order ... are sent with a Transfer Order to the Subcontracting Warehouse; the Item Receipt consumes them" - do not pick the components; transfer them.