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Subcontracting

Job-Work and Subcontracting Workflows

Issue, process, receive and cost outside operations on the same thread as in-house work.

Challan → receipt → cost

Answer

How should job-work workflows run in manufacturing ERP?

Job work should start from a parent work order: issue material on a challan, track quantity at the vendor, receive and inspect returns, then reconcile scrap and pending balances into landed cost. FOS Subcontracting connects those steps to inventory and purchase documents instead of a side workbook.

Why spreadsheets break job work

When galvanising or machining leaves the plant, ownership of quantity and identity often disappears. Month-end then invents balances. ERP only helps if the challan and the work order share keys.

Example: A sheet-metal shop sends 1.2 T for powder coating. On return, QC records accepted quantity against the same work order that still shows remaining in-house assembly.

Controls to insist on in a demo

Batch or heat identity on issue, overdue vendor alerts, and cost roll-up into the parent order. Link also to Inventory and Purchase when vendors invoice processing charges.

Related modules

Open the FOS capabilities that map to this guide.

Related industries

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Frequently asked questions.

Top questions about Job-Work and Subcontracting Workflows — answered for manufacturers in India.

What is job-work ERP?

Job-work ERP tracks material issued to subcontractors, processing, returns, scrap and cost against the parent work order instead of a side challan book.

Which FOS module covers subcontracting?

FOS Subcontracting links challans to Production, Inventory and Purchase. See /modules/subcontracting.

Can batch identity travel on job-work issue?

Inventory batch or heat attributes can move with issues when the plant records them — critical for coated or machined lots that must remain traceable.

How should vendors be measured?

Track open quantity, overdue returns and reconciliation status on the vendor board so material does not disappear outside the gate.

Which industries use heavy job work?

Sheet metal and steel fabrication commonly outsource finishing — see those industry pages plus this guide’s module links.

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