subcontracting procedure

1. Create a PO with item cat 'L'. Give vendor and main item details with service charge which vendor will charge per unit .

2. Give the components details in material details tab. there is components icon which on clicking with oen the screen where u can give the component detils which u will send vendor.

3. using me2o u can create an outbound delivery in which u can send the componets( 541 mov type) to vendor.

4. do gr with respect to po to recive the fg from the vendor.

5. using miro create the vendor invoice.

Create a BOM for Finished component X2 with X1 as the child component.

Create Subcontacrting PO for X2 on Vendor (item category - L). Issue out the child components to the vendor with reference to the PO.

Once the processing is complete you will receive X2 back from Vendor and you can post the GR for X2. Back-flusing will ensure that X1 is also consumed from the vendors stock.

Regards,