Do you own the pieces that the subcontractor uses for their subassembly?

Yes we do.

In this case you would use Work Order and create an purchase order for the assembly cost and assign it to the Work Order and do production to complete as a finished product.  You might want to create a warehouse for Outside Vendor so you can track what is at vendor. 

Ok, I think we got most of it figured out.  What about the freight costs of getting product to and from the subcontractor?

Add to work order

Client use to do this. They had a separate warehouse for outside vendor. They would transfer product there that would go for outside processing. Then they used Work Order to build finished product and a Purchase Order for the processing cost which was assigned to the Work Order. You can add any other cost in the process. Production entry produced the finished product

Client use to do this. They had a separate warehouse for outside vendor. They would transfer product there that would go for outside processing. Then they used Work Order to build finished product and a Purchase Order for the processing cost which was assigned to the Work Order. You can add any other cost in the process. Production entry produced the finished product

Thank you for your help.

Hi Bk, if any of the above suggested answers helped, please do mark them as verified  for the benefit of others in this forum :). Thank you!

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