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Old way: Subcontract services are set up as non-inventory items and are manually purchased and expensed.
DBA way: Subcontract services are set up as routing sequences and POs are automatically generated when needed and PO receipts automatically update actual job costs.
Many manufacturing processes, including painting, plating, and heat-treating, are subcontracted to be performed by outside suppliers. The assembly builds in light assembly systems make no provisions for handling subcontract services, so you must devise your own workaround methods to create POs and handle costing issues.
By contrast, DBA is designed to handle subcontract service processing. You can create subcontractors, define subcontract processes within item routings, and the Job Subcontracting screen is used to automatically generate POs to subcontract suppliers on a just in time basis. When subcontracted items are received, the PO cost is automatically applied to the actual job cost and gets incorporated into the finished item's receipt cost.