# Receipt From Subcontracting

<p class="doc-lead">Receipt From Subcontracting records finished goods received back from a subcontractor and consumes the raw materials previously issued. It moves products from the supplier center into your destination inventory center.</p>

<div class="doc-toc">
<p class="doc-toc-title">On this page</p>
<div class="doc-toc-links">
<a href="#/production/receipt-from-subcontracting?id=overview">Overview &amp; List View</a>
<a href="#/production/receipt-from-subcontracting?id=quick-start">Quick Start</a>
<a href="#/production/receipt-from-subcontracting?id=header-fields">Header Fields</a>
<a href="#/production/receipt-from-subcontracting?id=line-tables">Line Tables</a>
<a href="#/production/receipt-from-subcontracting?id=costing">Costing on Approval</a>
<a href="#/production/receipt-from-subcontracting?id=actions-status">Actions &amp; Status</a>
<a href="#/production/receipt-from-subcontracting?id=faq">FAQ</a>
</div>
</div>

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<h2 id="overview">Overview &amp; List View</h2>

Go to <b>Production → Receipt From Subcontracting</b>.

<p>Works with subcontracting Purchase Orders and <a href="#/production/issue-for-subcontracting">Issue For Subcontracting</a>. See the <a href="#/subcontract/">Subcontracting overview</a> for full setup.</p>

<b>List columns:</b> Id, Date, Source Center, Destination Center, Employee In Charge, Status.

<b>Quick filter tabs:</b> Default, Approved, Closed, Draft, Cancelled.

<b>Advanced Filters:</b> Id, Source Center, Destination Center, Employee, Status, date, Created date.

<b>List row actions:</b> Edit (Draft, Sent for Revisal), Delete (Draft, Sent for Revisal), View.

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<h2 id="quick-start">Quick Start</h2>

<ol>
<li>After materials were issued via Issue For Subcontracting, create receipt from the approved Purchase Order using <b>Create Receipt</b>, or manually via <b>New</b>.</li>
<li>Set <b>Supplier Center</b> and <b>To Center</b>.</li>
<li>Enter <b>Products Obtained</b> lines (finished goods received).</li>
<li>Confirm <b>Inventory Inputs (Consumed)</b> lines matching issued raw materials.</li>
<li><b>Save And Approve</b>.</li>
</ol>

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<h2 id="header-fields">Header Fields</h2>

| **Field** | **Description** |
|-----------|-----------------|
| Date * | Receipt date. |
| Supplier Center * | Subcontractor center (source). |
| To Center * | Your destination inventory center. |
| Employee In charge | Responsible employee. |
| Notes | Remarks. |

View shows linked <b>Purchase Order Id</b>.

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<h2 id="line-tables">Line Tables</h2>

<b>Products Obtained</b>

| **Column** | **Description** |
|------------|-----------------|
| Sl Num | Line number. |
| Item * | Finished subcontracted item received. |
| Variant | Variant. |
| Quantity * | Received quantity. |
| Unit | Unit of measure. |
| Batch | Batch. |
| SerialNumbers | Serial numbers. |
| Inv Bin | Destination bin. |

<b>Inventory Inputs (Consumed)</b>

| **Column** | **Description** |
|------------|-----------------|
| Sl Num | Line number. |
| Subcontracting Item(Finished Good) | Parent finished good. |
| Item * | Raw material consumed. |
| Variant | Variant. |
| Quantity * | Consumed quantity. |
| Unit * | Unit of measure. |
| Serial Numbers | Serial numbers. |
| Batch | Batch. |
| Inv Bin | Bin at supplier center. |

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<h2 id="costing">Costing on Approval</h2>

<p>Approving the receipt is what builds the finished good's cost. Each finished good is valued as:</p>

<p><b>Finished unit cost = (consumed raw material value ÷ received quantity) + service charge per unit</b></p>

<ul>
<li><b>Raw material value</b> — the <b>Inventory Inputs (Consumed)</b> lines are taken out of stock at the supplier center at their weighted-average cost, and summed against the finished good they belong to.</li>
<li><b>Service charge</b> — the pre-tax service amount per unit from the linked Purchase Order's service line, added to every finished unit received.</li>
</ul>

<p>Accounting on approval: <b>Inventories</b> is debited for the finished value received and credited for the raw material consumed, with the service difference credited to <b>Accrued Inventory Assets</b>. That accrual is cleared to the subcontractor's payable when you create the Purchase Invoice from the receipt. For the full walkthrough and a worked example, see <a href="#/subcontract/?id=costing">How Costing Works</a> in the Subcontracting overview.</p>

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<h2 id="actions-status">Actions &amp; Status</h2>

| **Action** | **Available when status is** |
|------------|------------------------------|
| Approve | Draft |
| Edit | Draft, Sent for Revisal |
| Delete | Draft, Sent for Revisal |
| Clone | All |
| Cancel | Approved, Closed |
| Master Update | Approved, Closed |
| Add/Update Note | All |
| Print | All |

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<h2 id="faq">FAQ</h2>

<p><b>What happens to issued raw materials on approval?</b><br>Consumed quantities on Inventory Inputs lines reduce stock at the supplier center. Received finished goods increase stock at To Center.</p>

<p><b>How does this relate to Purchase Invoice?</b><br>After receipt, create Purchase Invoice from the Purchase Order to bill the subcontracting service.</p>

<p><b>Can I receive partial quantities?</b><br>Yes — enter partial Products Obtained quantities and matching consumed inputs; multiple receipts can be posted against one PO. Each receipt picks up a proportional share of the service charge.</p>

<p><b>How is the finished good cost calculated here?</b><br>Consumed raw material value plus the Purchase Order service charge per unit, divided across the received quantity. See <a href="#/production/receipt-from-subcontracting?id=costing">Costing on Approval</a>.</p>

<p><b>At what value are the consumed materials taken out?</b><br>At the weighted-average cost of that item at the supplier center — the value at which it was issued.</p>

<p><b>What if the finished output does not match the material consumed (yield loss)?</b><br>Enter the actual finished quantity and the actual material consumed. The difference is absorbed into the finished good's unit cost; leftover material stays at the supplier center.</p>

<p><b>Which finished good does a consumed material belong to?</b><br>Set the <b>Subcontracting Item(Finished Good)</b> column on each Inventory Inputs line so its cost is attributed to the right product.</p>

<p><b>Invalid subcontractor center?</b><br>Supplier center must be a valid subcontractor center on receipt.</p>
<p><b>Cancel with invoice?</b><br>Cancel purchase invoice before cancelling subcontracting receipt. Cancelling reverses the inventory and accrual entries.</p>