Subcontrating for Finished Goods

Hi Dear SAP Gurus,
I have a very important question to ask about Production vs. Subcontrating. In my company they are about to implement in SAP Retail a subcontracting process to received all Finished Product.

In PO Vendor line item is ticked as FREE

Financial impacts are:

Finished Goods ( + )
Raw Material ( - )
Subcon adjutment ( + )

Raw Material ( - )

Subcon adjutment ( + )

I really dont agree with it but I am just wondering; is this really a good idea?

Will this effect our need to produce an expense report?

Thank you and hoping to receive lots of good information about this issue.

Regards,

Ber