Create Direct Subcontract Order – Summary of the activity

This activity allows you to create Subcontract Order (SCO). Subcontracting refers to a business scenario in which an enterprise decides to off-load all or part of its operations to an outside agency at agreed price, terms, and conditions. The reasons for subcontracting could be strategic consideration of core competency, economic make or buy consideration, due to supply side market condition, capacity bottleneck of the enterprise.

Subcontract order can be used to consolidate sourcing and procurement of items and services spread across divisions and manufacturing plants. This activity allows you to provide the details pertaining to the SCO such as list of items to be received from the supplier, the list of items to be issued to the supplier, the terms and condition pertaining to the SCO, the tax, charges and discount details pertaining to the SCO, the quality attributes pertaining to the items in the SCO and attach notes to the SCO. The subcontract order serves as the basis for processing GRs and for invoice verification.

In this activity you can create a subcontract order without referring to any reference document.  This activity allows you to approve the SCO for further processing.

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