HI. I think this is more a question for the MM forum, but can try and help anyway.
Subcontracting is where you provide the vendor free of charge with some items from your stock, then the vendor provides you with a finished item.
For example, you might provide the vendor with a large piece of wood from your stock, then the vendor cuts the wood and makes it into a table. On the PO you would buy 1 table with a subcontracting BOM of 1 piece of wood. The price on the PO is the price you pay the vendor to make the table. You can then issue the wood out of stock and it would become special stock O - items provided to vendor. When the supplier delivers the table you do a goods receipt for the table, and your stock of the table would increase by 1 and there is an automatic issue for the components, in this case 1 piece of wood. The price of the stock in your accounts will be the price you pay the supplier plus the price of the components, if you use moving average price.
You have to create a subcontracting info record for the price you pay the vendor, and a subcontracting BOM for the items you provide, although you can just key the items in manually to a PO.
When the PO prints, it normally prints the components in a list telling the supplier what you are going to provide them.
I hope this helps.
Regards,
Dave.
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