Subcontracting Order
Overview
Subcontracting Order – Business Overview
What the Subcontracting Order is used for
The Subcontracting Order is used to formally engage an external party to perform part of your production or service work on your behalf. It represents a business agreement where materials, semi-finished goods, or tasks are sent to a subcontractor, who then processes them and returns finished or partially finished output.
In Dafater, the Subcontracting Order helps businesses control outsourced work, track commitments with subcontractors, manage costs, and ensure timely delivery of subcontracted outputs.
Prerequisites and setup before using a Subcontracting Order
Before creating a Subcontracting Order, the following should be in place:
- Approved subcontractors with agreed commercial terms
- Defined items or services that can be subcontracted
- Clear production or service requirements, including quantities and expected outcomes
- Standard pricing or costing agreements with subcontractors
- Internal approval rules for outsourcing work
Having these elements ready ensures that subcontracting activities remain controlled, auditable, and aligned with business goals.
Typical workflow and how it fits into business processes
Need Identification
A business identifies work that cannot or should not be completed internally due to capacity, expertise, or cost considerations.Creation of Subcontracting Order
The Subcontracting Order is created, defining:- The subcontractor
- Items or services being outsourced
- Quantities, timelines, and agreed rates
Material or Work Handover
Required materials or instructions are provided to the subcontractor as per the order terms.Execution by Subcontractor
The subcontractor performs the assigned work.Receipt and Verification
Completed goods or services are received and checked against the Subcontracting Order.Cost Recognition and Settlement
The Subcontracting Order supports accurate billing, cost tracking, and financial settlement with the subcontractor.
This workflow ensures subcontracted activities are fully integrated into production, supply chain, and financial processes.
Key business scenarios where the Subcontracting Order is essential
- Manufacturing with external processing (e.g., coating, assembly, packaging)
- Capacity overflow management during peak demand periods
- Specialized work that requires skills or equipment not available internally
- Cost optimization strategies by outsourcing non-core operations
- Multi-stage production processes involving multiple external partners
In all these scenarios, the Subcontracting Order provides structure, accountability, and visibility.
Important considerations for users
- Clearly define scope and expectations to avoid disputes with subcontractors
- Monitor timelines closely to prevent delays in overall production or delivery
- Track quantities and quality of returned goods against what was sent
- Review subcontracting costs regularly to ensure profitability
- Maintain proper approvals to avoid unauthorized outsourcing
When used correctly, the Subcontracting Order becomes a critical business control document that supports efficient outsourcing while protecting cost, quality, and delivery commitments.
In summary, the Subcontracting Order in Dafater enables businesses to manage outsourced work professionally, ensuring transparency, accountability, and smooth coordination between internal teams and external subcontractors.
Basic Information
- Module: Subcontracting
- Document Type: Document
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| title | Title | Data | - | Short reference title for the subcontracting order in Dafater | |
| naming_series | Series | Select | ✓ | SC-ORD-.YYYY.- | Auto-generated Dafater series for subcontracting order identification |
| purchase_order | Subcontracting Purchase Order | Link | ✓ | Purchase Order | Linked subcontracting purchase order reference in Dafater |
| supplier | Job Worker | Link | ✓ | Supplier | Job worker responsible for subcontracted manufacturing or services |
| supplier_name | Job Worker Name | Data | ✓ | - | Display name of the selected job worker |
| supplier_warehouse | Job Worker Warehouse | Link | ✓ | Warehouse | Job worker warehouse where materials are delivered or processed |
| company | Company | Link | ✓ | Company | Company initiating and owning this subcontracting order |
| transaction_date | Date | Date | ✓ | - | Date when the subcontracting order is created |
| schedule_date | Required By | Date | - | Required completion or delivery date from job worker | |
| amended_from | Amended From | Link | Subcontracting Order | Original subcontracting order being amended in Dafater | |
| cost_center | Cost Center | Link | Cost Center | Cost center to track subcontracting expenses | |
| project | Project | Link | Project | Associated project for monitoring subcontracting activities | |
| set_warehouse | Set Target Warehouse | Link | Warehouse | Default target warehouse for received finished goods | |
| items | Items | Table | ✓ | Subcontracting Order Item | List of subcontracted items and required quantities |
| total_qty | Total Quantity | Float | - | Total quantity of all subcontracted items | |
| total | Total | Currency | Company:company:default_currency | Total subcontracting order value including services | |
| service_items | Service Items | Table | ✓ | Subcontracting Order Service Item | Service charges billed by job worker |
| setreservewarehouse | Set Reserve Warehouse | Link | Warehouse | Warehouse reserving raw materials for subcontracting | |
| supplied_items | Supplied Items | Table | Subcontracting Order Supplied Item | Raw materials supplied to job worker for processing | |
| supplier_address | Job Worker Address | Link | Address | Registered address of the job worker | |
| address_display | Job Worker Address Details | Small Text | - | Formatted job worker address for display and printing | |
| contact_person | Job Worker Contact | Link | Contact | Primary contact person at the job worker | |
| contact_display | Contact Name | Small Text | - | Displayed name of the job worker contact | |
| contact_mobile | Contact Mobile No | Small Text | Phone | Mobile number of the job worker contact | |
| contact_email | Contact Email | Small Text | Email address of the job worker contact | ||
| shipping_address | Company Shipping Address | Link | Address | Company address for receiving subcontracted goods | |
| shippingaddressdisplay | Shipping Address Details | Small Text | - | Formatted company shipping address for documents | |
| billing_address | Company Billing Address | Link | Address | Company billing address for subcontracting invoices | |
| billingaddressdisplay | Billing Address Details | Small Text | - | Formatted billing address for financial documents | |
| distributeadditionalcostsbasedon | Distribute Additional Costs Based On | Select | Qty, Amount | Basis for allocating additional subcontracting costs | |
| additional_costs | Additional Costs | Table | Landed Cost Taxes and Charges | Additional landed or service costs applied to order | |
| totaladditionalcosts | Total Additional Costs | Currency | Company:company:default_currency | Sum of all additional subcontracting costs | |
| status | Status | Select | ✓ | Draft, Open, Partially Received, Completed, Mat... | Current processing status of the subcontracting order |
| per_received | % Received | Percent | - | Percentage of subcontracted quantity received | |
| selectprintheading | Print Heading | Link | Print Heading | Print heading used on subcontracting order documents | |
| letter_head | Letter Head | Link | Letter Head | Letter head applied on printed Dafater documents |
Child Tables
Items (Subcontracting Order Item)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| item_code | Item Code | Link | ✓ | Item | Identifies the subcontracted item in Dafater. |
| item_name | Item Name | Data | ✓ | - | Displays the name of the subcontracted item. |
| bom | BOM | Link | ✓ | BOM | Defines the Bill of Materials for subcontracting. |
| includeexplodeditems | Include Exploded Items | Check | - | Includes BOM child items for subcontracting processing. | |
| schedule_date | Required By | Date | - | Date by which subcontracted item is required. | |
| expecteddeliverydate | Expected Delivery Date | Date | - | Planned delivery date from subcontractor. | |
| description | Description | Text Editor | ✓ | - | Detailed description of subcontracted item or service. |
| image | Image | Attach | - | Attach reference image for the subcontracted item. | |
| image_view | Image View | Image | image | Displays attached image for quick reference. | |
| qty | Quantity | Float | ✓ | - | Quantity ordered for subcontracting. |
| received_qty | Received Qty | Float | - | Quantity received from subcontractor. | |
| returned_qty | Returned Qty | Float | - | Quantity returned to subcontractor. | |
| stock_uom | Stock UOM | Link | ✓ | UOM | Stock unit of measure used in Dafater. |
| conversion_factor | Conversion Factor | Float | - | Conversion factor between purchase and stock units. | |
| rate | Rate | Currency | ✓ | Company:company:default_currency | Rate charged per unit by subcontractor. |
| amount | Amount | Currency | ✓ | Company:company:default_currency | Total amount for this subcontracting item. |
| rmcostper_qty | Raw Material Cost Per Qty | Currency | Company:company:default_currency | Raw material cost per finished unit. | |
| servicecostper_qty | Service Cost Per Qty | Currency | ✓ | Company:company:default_currency | Service cost per unit charged by subcontractor. |
| additionalcostper_qty | Additional Cost Per Qty | Currency | Company:company:default_currency | Additional overhead cost per subcontracted unit. | |
| warehouse | Warehouse | Link | ✓ | Warehouse | Warehouse where finished goods will be received. |
| expense_account | Expense Account | Link | Account | Account to record subcontracting expenses. | |
| manufacturer | Manufacturer | Link | Manufacturer | Manufacturer associated with the subcontracted item. | |
| manufacturerpartno | Manufacturer Part Number | Data | - | Manufacturer’s reference part number. | |
| material_request | Material Request | Link | Material Request | Linked material request generated in Dafater. | |
| materialrequestitem | Material Request Item | Data | - | Specific material request item reference. | |
| cost_center | Cost Center | Link | Cost Center | Cost center to track subcontracting expenses. | |
| project | Project | Link | Project | Project associated with this subcontracting order item. | |
| purchaseorderitem | Purchase Order Item | Data | - | Linked purchase order item reference. | |
| page_break | Page Break | Check | - | Forces page break in printed subcontracting order. | |
| subcontractingconversionfactor | Subcontracting Conversion Factor | Float | - | Conversion factor specific to subcontracting quantity. | |
| job_card | Job Card | Link | Job Card | Linked job card for subcontracted operation. |
Service Items (Subcontracting Order Service Item)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| item_code | Item Code | Link | ✓ | Item | Service item code selected from Dafater item master |
| item_name | Item Name | Data | ✓ | - | Service item name captured for subcontracting clarity in Dafater |
| qty | Quantity | Float | ✓ | - | Quantity of service units required for subcontracting in Dafater |
| rate | Rate | Currency | ✓ | currency | Agreed service rate per unit for subcontractor in Dafater |
| amount | Amount | Currency | ✓ | currency | Total service amount calculated from quantity and rate in Dafater |
| fg_item | Finished Good Item | Link | ✓ | Item | Finished good item produced through subcontracting process in Dafater |
| fgitemqty | Finished Good Item Quantity | Float | ✓ | - | Quantity of finished goods expected from subcontracted service in Dafater |
| purchaseorderitem | Purchase Order Item | Data | - | Linked purchase order item reference for subcontracted service in Dafater | |
| material_request | Material Request | Link | Material Request | Material request linked to subcontracting requirements in Dafater | |
| materialrequestitem | Material Request Item | Data | - | Specific material request item tied to this service in Dafater |
Supplied Items (Subcontracting Order Supplied Item)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| mainitemcode | Item Code | Link | Item | Finished item produced through subcontracting under Dafater process | |
| rmitemcode | Raw Material Item Code | Link | Item | Raw material supplied to subcontractor for manufacturing | |
| stock_uom | Stock Uom | Link | UOM | Inventory unit of measure used for stock tracking | |
| conversion_factor | Conversion Factor | Float | - | Multiplier to convert stock UOM into transaction quantity | |
| reserve_warehouse | Reserve Warehouse | Link | Warehouse | Warehouse where raw materials are reserved for subcontracting | |
| bomdetailno | BOM Detail No | Data | - | Reference identifier linking item to specific BOM row | |
| reference_name | Reference Name | Data | - | Source document reference for traceability in Dafater | |
| rate | Rate | Currency | Company:company:default_currency | Valuation rate of supplied raw material | |
| amount | Amount | Currency | Company:company:default_currency | Total value calculated from rate and quantity | |
| required_qty | Required Qty | Float | - | Planned raw material quantity needed for production | |
| supplied_qty | Supplied Qty | Float | - | Quantity issued to subcontractor | |
| consumed_qty | Consumed Qty | Float | - | Quantity actually consumed during subcontracting | |
| returned_qty | Returned Qty | Float | - | Unused quantity returned from subcontractor | |
| totalsuppliedqty | Total Supplied Qty | Float | - | Cumulative quantity supplied across all issues |
Additional Costs (Landed Cost Taxes and Charges)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| expense_account | Expense Account | Link | Account | Account to record landed cost expense in Dafater. | |
| account_currency | Account Currency | Link | Currency | Currency of selected expense account in Dafater. | |
| exchange_rate | Exchange Rate | Float | - | Conversion rate to company currency for landed cost. | |
| description | Description | Small Text | ✓ | - | Business description of the landed cost or charge. |
| amount | Amount | Currency | ✓ | account_currency | Landed cost amount in the account currency. |
| base_amount | Amount (Company Currency) | Currency | Company:company:default_currency | Landed cost amount converted to company base currency. | |
| hascorrectivecost | Has Corrective Cost | Check | - | Indicates whether this charge adjusts previous landed costs. |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| Stock User | ✓ | |||||
| Purchase Manager | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Purchase User | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Stock Entry | Linked from | Stock |
| Address | Links to | Contacts |
| Company | Links to | Setup |
| Contact | Links to | Contacts |
| Cost Center | Links to | Accounts |
| Letter Head | Links to | Printing |
| Print Heading | Links to | Setup |
| Project | Links to | Projects |
| Purchase Order | Links to | Buying |
| Subcontracting Order | Links to | Subcontracting |
| Supplier | Links to | Buying |
| Warehouse | Links to | Stock |