Subcontracting BoM Type in Odoo 19

Introduction
Manufacturing businesses often rely on third-party vendors to complete specific production operations. Instead of manufacturing everything in-house, companies send raw materials to a subcontractor who performs the production and returns the finished product.

Subcontracting is a manufacturing strategy where:

• You provide raw materials to a vendor
  
  

• The vendor manufactures the product
  
  

• The finished product is delivered back to you

Configuration For Subcontracting BoM

Step 1 :- Goto Manufacturing → Configuration → Settings  and select subcontracting .

Step 2:- Create a subcontract product.

Step 3:-  Create a BOM for that subcontract product select BOM type as subcontract and its subcontractor.

Step 4:- Create po with subcontract  vendor and subcontract product 

Step 5:- After confirming purchase order  you can see the resupply for the bom product and receipt for the main product .

Step 6:- Resupply product validation.

• Movement Type: Internal Transfer
  
  

• Flow:
  Your Stock Location → Subcontractor Location

This means:

• Your raw materials are sent to the vendor.
  
  

• This is called Resupply.

Step 7:- Main product validation.

• Movement Type: Receipt
  
  

• Flow:
  Vendor Location → Your Stock Location
  
  

This means:

• The subcontractor manufactures the product.
  
  

• The finished goods are received back into your warehouse.

Conclusion

The Subcontracting BoM Type in Odoo 19 is a smart and structured solution for companies that outsource part or all of their manufacturing process. Instead of handling production internally, businesses can seamlessly manage subcontractors while maintaining full control over inventory, costing, and traceability.

With automated component transfers, real-time stock updates, and accurate cost calculations, Odoo 19 ensures that subcontracting operations remain transparent and efficient. The tight integration between Purchase, Inventory, and Manufacturing eliminates manual intervention and reduces operational errors.

For functional consultants, this feature simplifies implementation of outsourced manufacturing models. For developers, understanding the backend logic and stock flow provides opportunities for customization and automation enhancements.

If you are looking for an ERP implementation partner with diverse industry experience feel free to contact us. We have proven track record of successful implementations across various sectors including Odoo for Manufacturing, Odoo for Trading, Odoo for FMCG, Odoo for Oil & Gas, Odoo for Diary, Odoo for Pharma, Odoo for Cosmetic Clinic, Odoo for Contracting Companies, Odoo for HVAC, Odoo for Logistics, Odoo for Automobile, Odoo for Laundry, Odoo for Field Service, Odoo for E-Commerce & many more

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