Contracting Work Order

  1. Manufacturing > contractors > add new

Then add a new product in the list of products and services, the parts that you are getting from your suppliers (vendors). After that, create a product that is based on the bill of materials, but in the fulfillment section (back-order) select contractor. And select the contractor from the drop down list. The contractor fee is the amount of money the contractor charges you for assembling one piece of your final product. In the bill of materials section select the parts your contractor will use to assemble your finished product.

2. Purchasing > purchase orders > based on contractor

This document is entered like a standard PO, but, instead of our supplier shipping the parts to us, he will ship them directly to our contractor. That’s why it’s important to enter the address of your contractor. This address will be displayed in the SHIP TO section. Create the PO, choose the supplier and select the items that will be sent to your contractor. Add the landing cost if needed.

3.Manufacturing > work orders > based on contractor or based on bill of materials

-Based on contractor – the form of this work order is just like the standard work order, you will have to manually enter input and output items

  • Based on bill of materials – in this form, you just need to select the finished product. All the fields, along with the contractor, will be automatically populated. Enter the required quantity.


  • Drop shipping > if you select this option, the items will go straight from your supplier to your contractor.

  • Standard > if you select this option, your supplier will ship the items to you, and then you will ship the items to your contractor.

The entered work order will be linked automatically to the quantity that is on the created purchase order (based on contractor). In the work order, you can either choose the ‘load material’ option, or receive the items through the PO. Starting and completing the work order is done like in the standard work order:

  • Load material > adjust quantity if needed > post the document

  • Deliver finished goods > adjust quantity if needed > post the document

    You also have the option to create the purchase order from the fulfillment.

In case you create the work order first, and you don’t have items in stock, you can generate the PO through the fulfillment. Since the parts are not coming to your stock, but to your contractor’s, your stock list for the parts will be empty.

When you load the material in the work order and post the document, the purchase order will automatically be received.

When you deliver the finished goods, that amount will show up in your stock.

Committed quantity is the quantity of items needed for the work order. These items are listed in the fulfillment list as products that need to be ordered.

5. Manufacturing > stocks – contractor This is the report that shows how many unused parts do you have in your contractor’s warehouse.

This is the report that shows how many unused parts do you have in your contractor’s warehouse.

** You can also create a work order based on the sales order. First you will have to create the sales order, then go to the manufacturing > fulfillment, and generate the work order through the bulk action.

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