How to manage subcontracting in BizCentric?

To demonstrate outsourcing, follow these steps:

1. Enable the option “Supply Raw Materials for Purchase” in the subcontracted item’s Item Master.
2. Create a Bill of Material (BOM) for the subcontracted item, incorporating the raw materials sent to the subcontractor to obtain the finished or semi-finished product. There will be no operations in this BOM.
3. Generate a Purchase Order to procure this item from the external vendor. Ensure to select “Yes” for the “Supply Raw Materials” field and designate the warehouse from which the raw materials will be transferred to the vendor. This can be a virtual warehouse acting as a placeholder for the Stock Entry during material transfer.
4. In the Purchase Order, specify the “Reserve Warehouse” from which the raw materials will be transferred to the virtual vendor warehouse. This table also tracks the supplied quantity, which initially remains zero.
5. After Purchase Order submission, use the “Transfer” button to create a Stock Entry, transferring raw materials to the external vendor.
6. Upon Stock Entry submission, the Purchase Order’s child table updates to reflect the transferred quantity under “Supplied Qty.”
7. Receive the semi-finished/finished goods from the vendor by creating a Purchase Receipt against the Purchase Order.
8. Proceed with regular invoicing steps: Purchase Order -> Purchase Receipt -> Purchase Invoice.