---
title: "Subcontracting - Standardized Production"
canonical: "https://wiki.soft1.eu/space/SS5EN/12060424/Subcontracting%20-%20Standardized%20Production"
format: markdown
---
To monitor the standardized production process, there is a provision to allocate the subcontractor costs in the products. 

The Supplier, who is also a subcontractor, must have in his main file the following 

a) Indication <Subcontractor> = Yes 

b) Must be connected to the costing data that refer to the standardized production (and does not absorb values from cost accounting) 

c) And finally must be connected with a specific warehouse, if any. 

 

![image](media://89f2fc1b-d476-41be-9f11-ce28a371754c)

 

Then a delivery note to the supplier -  subcontractor and a goods receipt not from the latter shall be used. In the receipt note series you must enter the automatic conversion to a production document and the production document series to be used. Thus, during posting of the receipt note from the supplier - subcontractor there is automatic creation of the production document of the item (using the main BOM of the item). 

At this point there are two alternative methods for the allocation of cost to the costing data that refer to the subcontract:

 

**Method A**

During posting of the service rendering document of the subcontractor, you must execute through the related jobs of the special transaction a match to the related production document, in order to use the costs of the service rendering document as costing data and to be allocated to the product. 

Therefore, the production document that refers to the subcontractor derives costs from his service rendering document.

 

**Method B: **

The above continue to apply for the subcontractor, but the costing data that refer to subcontracts may not be updated from the service rendering document, but be updated from account 92* of the cost accounting which includes subcontract costs.