Subcontracting
Subcontracting involves the processing of your materials by an outside supplier. For example, companies send raw materials to a supplier for manufacture or assembly, then bring them back in-house. The raw materials are on the books; the supplier does not own them.
This process spans modules in QAD Enterprise Applications, using purchasing, manufacturing, and shop floor control programs, as well as the repetitive functionality.
• You set up an operation for the subcontracted work.
• When the work moves to the subcontracted operation, you create a purchase order and refer the line item back to the operation as a line type S.
• You receive the work and move it to the next operation.
Some manufacturing systems use item numbers to account for subcontract costs. QAD Enterprise Applications uses routing operations to plan and track these costs.
