- Enable Outsourced Manufacturing feature in Netsuite
- Goto Setup> company>enable Features>Outsource Manufacturing
- Setup locations for Outsourcing Manufacturing
- Create vendor and associate each vendor used for outsourcing with an outsourced location.
- A manufacturing charge item should be created to record the price of the outsourcing manufacture:
- An Other charge for Purchase item must be created
- Choose ‘Outsourcing charge’ as the cost category and enter the purchase price
- Create the BoM for the items that will use outsourcing and add the outsourcing charge item also
- Create the assembly item and assign BoM to the final assembly item (under ‘manufacturing’ tab, add the BoM and set the ‘Default for Location’)
- Create work order by clicking on the Create WO link of SO. The WO will be generated.
- Set location and inventory detail and save the WO
- Under outsourcing tab, click on the link to Create Purchase Order
- PO will be created, and the amount will be according to the outsourcing charge selected
- The items can be received either from the PO or WO.
- Item receipt will be generated in which we have to set the location to receive the outsourced goods. By default, the location will be outsourced location and if the location is changed, an automatic inventory transfer record will be created.
- Now the items can be fulfilled from the sales order and can be invoiced.