Before starting to explore manufacturing with subcontractors in Kladana, please learn how to do the basic manufacturing process here.
For the subcontracting process, Kladana supports such options:
- Assign a counterparty for a production operation
- Create a receiving of the service directly from the Production order
Let’s see how it can be done.
BoM for manufacturing consists of production operations. If some of the operations are done by subcontractors, we need to assign them to it.
- Open Production operation
- Open the tab Counterparties and add the counterparty as a subcontractor. You can add several companies.
- Then choose the service that the subcontractor is providing
- You can also specify the warehouse of raw materials, create a specific warehouse for the subcontractor and keep track on its’ warehouse.
- If the cost of subcontracting service depends on time, you can also add this cost to the Standard hour cost.
All settings are done and we can start manufacturing.
In the Production order in Process Tracking, we see all operations including subcontracting. As we added only one company as a subcontractor, it automatically appeared as a performer for the operation.
How we can keep records of the subcontracting process:
- Once we receive subcontractor service we click "Complete".
- Then to track settlements with subcontractors we need to click "Add Related" and "Service Receiving".
- Receiving will be created automatically in the Purchase tab. You can create a Purchase Order and Purchase Invoice for the Receiving if needed.
- After Receiving was created, your settlement with the subcontractor will be updated in the counterparty card and the report Statement with Accounts.
How to see costs of manufacturing with a subcontractor in the production tab.
Click on the BoM raw in the Production Order and you will see all costs. The subcontractor service cost appears in the column "Labour cost".
Useful tools that we suggest using to track the subcontracting process:
- Always allocate order to the committed stock, so that raw materials won’t be used in other transactions.
- If you want to track stock on the counterparty side you can always create a separate warehouse for it and add it as a warehouse for raw materials in operation. You can always use "Transfer" transactions to transfer job work and raw materials between warehouses.
- Create statuses for production operations and subcontracting manufacturing as one of the statuses to see which orders are now done by the subcontractor.