Creating a Subcontract OP with Customer Supplied Parts

How do we go about creating a subcontract operation for a part in which the customer supplies one of the materials?

For example, we are shipping out 7/8 materials to assemble a cabinet in a subcontract operation. At the same time, we are purchasing the last material from the subcontracted vendor to complete that operation. However, we would like to capture the costs associated with purchasing the final part and completing the subcontract operation separately. Since we are not technically going to be receiving the purchased material but also shipping the rest, how do we create the work order and purchase order for this part in order to capture both costs separately? Can we even do this on the same PO?

As a note, the final material needed for the subcontract operation is sometimes purchased for our own inventory to be assembled in house rather than through a subcontract operation.

The easiest way is to include the cost of subcontractor supplied part in the price you are paying for the subcontract work. So if they quote $10 for the operation and $ 5 for the part then the price for the subcontract operation on the PO will be $ 15.

The fact that a part is supplied by the vendor can be line comment on the PO.

Vinay Kamboj