Free Subcontract Manufacturing Software

Raise an order for a sub-contracted finished good. Its raw-material list is exploded from the product's bill of materials, and the conversion/service fee is captured as the one billable line.

Issue the required raw materials to your subcontractor and track supplied-versus-consumed quantities. The materials stay your asset the whole time -- no cost leaves your books until the finished good comes back.

Receive the finished good back -- all at once or in partial receipts -- and value it correctly: the consumed raw-material cost plus the conversion fee, so your inventory carries the true cost of every sub-contracted item.

An admin turns ledger posting on in Subcontracting settings and picks the finished-goods, raw-material, accrual and payable accounts (or lets them come from your chart of accounts). Each receipt made while posting is on then posts a balanced journal entry -- debit finished-goods inventory, credit the materials consumed and the subcontracting-cost accrual -- and each conversion bill posts a second balanced entry that debits exactly what those receipts accrued and credits accounts payable, so the accrual nets to zero and the fee ends up capitalized in your inventory (for a receipt recorded while posting was off, the bill capitalizes its share of the fee). Posting is period-lock aware.

Bill only the subcontractor's service fee to accounts payable -- the supplied materials are never billed because you own them. The bill clears the accrual booked at receipt rather than expensing the fee a second time.

If a subcontractor falls through, cancel a supplied order and every supplied component goes back into your Manufacturing stock -- safe against double clicks and against retrying after a failure -- and the cancelled order can then be deleted.