Subcontracting BOM
Overview
Subcontracting BOM – Business Overview
Subcontracting BOM is a business document used in Dafater to clearly define what materials your company provides to an external subcontractor and what finished or semi-finished item you expect to receive in return. It acts as a commercial and operational agreement on materials responsibility when part of your production is outsourced.
What Subcontracting BOM Is Used For
In business operations, Subcontracting BOM is used to:
- Specify which raw materials or components you send to a subcontractor
- Define what item the subcontractor will manufacture or process for you
- Establish clarity on material consumption, accountability, and cost control
- Support accurate tracking of materials issued to subcontractors and items received back
It ensures both your internal teams and subcontractors are aligned on expectations before work begins.
Prerequisites and Setup Requirements
Before using Subcontracting BOM, the following should be in place in Dafater:
- Items (raw materials and finished goods) must be defined
- Subcontractors must be set up as suppliers
- Clear understanding of the subcontracting arrangement (what you supply vs. what the subcontractor provides)
- Agreed production or processing terms with the subcontractor
This preparation ensures smooth execution without disputes or confusion.
Typical Workflow and Business Fit
Create Subcontracting BOM
The business defines the item to be produced and lists the materials that will be sent to the subcontractor.Link to Subcontracting Transactions
The Subcontracting BOM is referenced when issuing materials to the subcontractor and when receiving the processed or finished item.Material Issue and Tracking
Materials are issued based on the Subcontracting BOM, ensuring accurate quantity and value tracking.Receipt of Finished Goods
Once subcontracting work is completed, the received items are checked against the Subcontracting BOM.Cost and Inventory Control
The document supports proper costing and accountability for outsourced production.
Key Business Scenarios Where It Is Essential
- Manufacturing businesses outsourcing part of their production
- Companies sending raw materials for finishing, assembly, or specialized processing
- Businesses needing strict control over materials issued to third parties
- Organizations aiming to prevent material loss or overconsumption in subcontracting
In all these cases, Subcontracting BOM acts as the reference point for operational discipline.
Important Considerations for Users
- Ensure material quantities are realistic and agreed upon with the subcontractor
- Review and update the Subcontracting BOM if the production process changes
- Use one Subcontracting BOM per subcontracted item for clarity
- Treat it as a control document, not just a formality
- Accurate setup helps avoid disputes, inventory mismatches, and cost overruns
Business Value Summary
Subcontracting BOM brings transparency, control, and consistency to subcontracted manufacturing. By clearly defining responsibilities and expectations, it protects your materials, improves supplier coordination, and supports reliable production outcomes within Dafater.
Basic Information
- Module: Subcontracting
- Document Type: Other
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| is_active | Is Active | Check | - | Enable or disable this subcontracting BOM for use | |
| finished_good | Finished Good | Link | ✓ | Item | Item produced by subcontractor under this subcontracting BOM |
| finishedgoodqty | Finished Good Qty | Float | ✓ | - | Quantity of finished good expected from subcontracting process |
| finishedgooduom | Finished Good UOM | Link | UOM | Unit of measure for the finished good quantity | |
| finishedgoodbom | Finished Good BOM | Link | ✓ | BOM | BOM defining components for the finished good, if applicable |
| service_item | Service Item | Link | ✓ | Item | Service item representing subcontracting operation or charge |
| serviceitemqty | Service Item Qty | Float | ✓ | - | Quantity of subcontracting service to be procured |
| serviceitemuom | Service Item UOM | Link | ✓ | UOM | Unit of measure for subcontracting service quantity |
| conversion_factor | Conversion Factor | Float | - | Conversion ratio between service quantity and finished good output |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| System Manager | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| BOM | Links to | Manufacturing |
| Item | Links to | Stock |
| UOM | Links to | Setup |