How to Configure Subcontracting in Odoo 18 Manufacturing | Odoo 18 Manufacturing Tutorials | Odoo 18

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In Odoo 18, subcontracting is a feature within the Manufacturing (MRP) module that allows companies to outsource production operations to external subcontractors while maintaining control over inventory and costs. Here's a basic guide:

1. Enabling Subcontracting in Odoo 18
Activate the Manufacturing App:

Go to Apps → Install Manufacturing.
Enable Subcontracting:

Go to Manufacturing → Configuration → Settings.
Enable Subcontracting under the Manufacturing section.
Click Save.

2. Setting Up Subcontracting
Step 1: Create a Subcontractor Vendor
Go to Purchase → Vendors.
Create a new vendor (e.g., "ABC Subcontractor").
Assign them as a subcontractor.
Step 2: Define a Subcontracted Bill of Materials (BoM)
Go to Manufacturing → Bill of Materials.
Create a new BoM for the final product.
Select the "Subcontracting" option.
Assign the subcontractor vendor.
Define the components (raw materials) needed for the final product.
Step 3: Set Up the Subcontracting Route
Go to Inventory → Configuration → Routes.
Create a new route "Subcontracting" (if not already available).
Ensure subcontracting logic is applied.
Step 4: Configure the Raw Materials Supply
Go to Inventory → Products.
Ensure raw materials are stored at the subcontractor's location.
You can manage this through replenishment rules or dropshipping.

3. Processing Subcontracting Orders
Step 1: Create a Purchase Order (PO) for Subcontracting
Go to Purchase → Create a new PO.
Select the subcontractor vendor.
Add the finished product (not raw materials).
Confirm the PO.
Step 2: Deliver Raw Materials to Subcontractor
Once the PO is confirmed:
Odoo will create a delivery order to send raw materials to the subcontractor.
Validate the delivery to update stock.
Step 3: Receive the Finished Product
Once the subcontractor completes the work:
A receipt order is generated.
Validate receipt to move finished goods into your inventory.
Step 4: Costing & Invoicing
Odoo calculates subcontracting costs based on the PO.
Vendor invoices are generated accordingly.

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