What is subcontracting in Navision?
Daniel Johnson
Published Feb 11, 2026
What is subcontracting in Navision?
Subcontracting selected operations to vendor is common in many manufacturing companies. Subcontracting Worksheet: This feature allows you to find the production orders with material ready to send to a subcontractor and to automatically create purchase orders for subcontract operations from production order routings.
What is subcontracting in operations management?
Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. A subcontractor in production is a 3rd party that performs complete production levels or individual operations for another company.
What is flushing method in Navision?
Flushing method is a method used to post consumption against a production order automatically. Usual way to post the consumption for a production order using the Consumption journal. But it is a manual process. Using Flushing method you can post these consumption automatically.
What is subcontracting process in SAP?
Another example of the subcontracting process in SAP is when a company provided raw sims and packaging materials to a subcontractor. The subcontractor converted the raw sims into finished sims well packed and returned finished product back to the company.
What is subcontracting and what is its impact?
In order to save money the Commissioners of several municipalities across the country had hired private contractors to collect and process garbage. This is called Sub-Contracting. This means that the work that was earlier being done by government workers is now being done by a private company.
What is forward flushing?
There can be three type of flushing: Forward Flushing (pre-deduct processing)—An automatic flushing type in which the movement of inventory items to WIP is automatically recorded before the Production Order is started or a single Production Order Routing step is started.
What is a subcontracting process?
Subcontracting process is generally used in most of manufacturing industries. In subcontracting process, raw materials are provided to subcontracting vendor. It’s being processed by subcontracting vendor, convert it to semi-finish material and deliver back.
What is subcontractor process?
The subcontractor management process The phase where a contractor or company identifies subcontractors which can fulfil their project needs, and receives quotes, bids and proposals from different subcontractors.
What are the advantages of subcontracting?
Pros and Cons of Using Subcontractors
| Pros | |
|---|---|
| Cost | No need to pay taxes and benefits |
| Commitment | Fewer legal obligations |
| Expertise | Can bring specialized expertise to the company that you don’t have among staff |
| Benefits to other employees | Increased productivity due to decreased pressure |
What is called subcontracting?
This is known as Sub-Contracting. This means that the work that was earlier being done by government workers is now being done by a private company or agency. These contract workers get a low salary and their jobs are temporary.
What is backward flushing?
Backward Flushing (backflushing)—An automatic flushing type in which the movement of inventory items to WIP is automatically recorded after the Production Order is completed or a single Production Order Routing step is completed.
