HomeservicesSAP Business One Add-Ons (or create if needed)SAP B1 Sub-Contractor / Job Worker Add-On

SAP B1 Sub-Contractor / Job Worker Add-On

Subcontractor Workflows, Closed-Loop in SAP Business One, From Requisition to Reconciliation.

Subcontracting is a daily reality for most manufacturers – automotive parts go out for plating, machining, heat treatment, or surface finishing; maintenance equipment goes out for repair; consumables get drawn from stores for production. Standard SAP B1 handles the accounting side, but the operational reality – physical material movement, gate security, document reconciliation across departments, contractor-side statements – is exactly where most deployments fall apart.

Our SAP B1 subcontractor add-on closes the entire loop inside SAP B1. From the moment production raises an internal requisition for material, through gate pass generation with auto e-way bill, gate entry of returning consignments, store reconciliation, automatic AP invoice generation against job-worker bills, and finally a periodic reconciliation statement shared with the contractor – every step is documented, audited, and visible to the right department in real time.

Originally built for an automotive parts manufacturer, the workflow applies to any company doing significant subcontracting, machine tools, casting, forging, fabrication, textile process houses, and packaging units. It pairs with our E-Way Bill Add-On to auto-generate the EWB the moment a gate pass is created, eliminating the manual re-entry that typically breaks the dispatch flow.

Why the SAP B1 Subcontractor Add-On Solves Your Job Work Problems

No Visibility on Material Movement

Once material leaves the gate for a subcontractor, it disappears from system view. "Where is that consignment?" becomes a phone-call exercise. Material lying with subcontractors for weeks goes unnoticed until reconciliation.

Gate Security Runs on Paper

Gate registers, written challans, and manual entries mean dispatch documents and returning consignments are tracked in parallel paper systems. Audit time becomes a multi-week reconciliation between gate records and SAP B1.

Contractor Reconciliation Is a Quarterly Nightmare

Job-worker accounts are reconciled at month-end or quarter-end by hand, manually matching outward challans against received material, working out scrap, and identifying short-receipts. Disputes are common; resolution takes weeks.

Eight Steps. Four Departments. One System.

Every step below happens inside SAP B1, with role-based access ensuring each department sees and acts on only the documents relevant to it.

01. Production / Maintenance → Internal Material Requisition
Production raises a request for material from stores (raw material, components, consumables). Approval workflow is configurable by amount, item type, or department.

02. Production / Maintenance → Outward Material Request
When material needs to go to a subcontractor (for job work) or to a repair vendor (for maintenance), the requesting department raises an outward material request specifying the contractor, items, quantities, and purpose.

03. Store → Gate Pass with E-Way Bill
Store creates the Gate Pass (Outward Challan) against the approved outward request. If the consignment value crosses the EWB threshold, an e-way bill is auto-generated via our E-Way Bill Add-On, single click, no portal switching.

04. Gate Security → Gate Entry of Outgoing Documents
Gate security records the actual vehicle exit, vehicle number, driver name, and time-out against the gate pass. Mismatches between gate pass and physical dispatch are caught immediately, not at month-end.

05. Gate Security → Gate Entry of Inward Documents
When material returns (processed job work, repaired equipment, partial consignment), gate security records the inward entry against the contractor’s challan. The original outward gate pass is referenced, partial returns are tracked across multiple inward entries.

06. Store → Inward Reconciliation
Store team reconciles the contractor’s inward challan against the original outward gate pass, quantity received, scrap returned, conversion losses, short-receipt. Discrepancies are flagged for resolution before posting.

07. Accounts → Auto AP Invoice Generation
Once the store reconciles the received document, a custom AP Invoice is auto-generated with job-work-specific fields (received quantity, return quantity, scrap, conversion charges, GST, TDS). Accounts reviews and posts.

08. Accounts / Vendor Mgmt → Contractor Reconciliation Statement
Periodic reconciliation statement is generated for each subcontractor, all outward dispatches, returns, AP invoices, payments, and outstanding material. Shared via PDF, Excel, email, or WhatsApp.

Features That Make the Difference

Department-Level Role Access

Production, store, gate security, and accounts each see only the documents relevant to their step. SAP B1 authorizations enforce the workflow, no department can skip or override another.

Auto E-Way Bill on Gate Pass

Integrated with our E-Way Bill Add-On, gate pass creation auto-triggers the EWB submission. No double entry, no separate portal, no dispatch delays.

Gate-Side Document Reconciliation

Gate security verifies dispatch against the gate pass at the moment of vehicle exit and at inward arrival. Discrepancies caught at the gate, not at month-end.

Partial-Return Tracking

Subcontractor returns rarely match exactly, partial consignments, multiple inward trips, scrap returns, and short-receipts are all tracked against the original gate pass.

Custom AP Invoice for Job Work

Standard SAP B1 AP Invoice doesn't have fields for return quantity, scrap, conversion rate, or job-work GST treatment. The add-on uses a custom document tailored to subcontracting accounting.

Auto-Linked Document Chain

Internal Requisition → Outward Request → Gate Pass → Inward Document → Reconciliation → AP Invoice are linked end-to-end. Click through the chain from any document to see the full lifecycle.

Contractor-Wise Visibility

Real-time view per contractor: open dispatches, material in transit, material lying at contractor, pending reconciliation, outstanding payments. Single dashboard.

Multi-Format Statement Delivery

Reconciliation statements go out in PDF, Excel, email, or WhatsApp, fitting whatever format your contractors actually use, not what suits the software.

Built Around How Factories Actually Run

The add-on uses SAP B1’s standard role-based authorization framework. Each department gets exactly the access it needs, no more, no less.

Production / Maintenance
Can Do: Raise internal requisitions and outward material requests. View status of own requests.
Cannot Do: Create gate passes, post AP invoices, modify gate records.

Store
Can Do: Issue material against approved requisitions. Create gate passes. Reconcile inward documents.
Cannot Do: Modify gate entries posted by security. Post AP invoices.

Gate Security
Can Do: Record outward and inward gate entries. Verify vehicle and document details.
Cannot Do: Modify gate passes, change item quantities, view AP invoices or financial data.

Accounts
Can Do: Review and post auto-generated AP invoices. Generate contractor reconciliation statements. Manage TDS and GST treatments.
Cannot Do: Modify gate entries or store reconciliation records (read-only audit access).

Management
Can Do: Read-only access to full document chain, dashboards, and contractor performance reports.
Cannot Do: Direct transactional posting.

 

E-Way Bill, Generated With the Gate Pass, Not After It

Most subcontractor workflows treat the e-way bill as a separate step. Material moves to the gate, and only then does someone log into the NIC portal to generate the EWB, usually while the truck is waiting.

Our Sub-Contractor Add-On is fully integrated with our SAP B1 E-Way Bill Add-On. When a gate pass is created against an outward material request, the system checks whether the consignment qualifies for EWB (job-work code, value threshold, inter-state movement). If yes, the EWB is submitted to the NIC API directly, same screen, same click. The EWB number and validity are written back to the gate pass and printed on the dispatch document.

The result: no portal switching, no truck waiting at the gate, no missed EWB risk.

Bundle Benefit

Companies that deploy the Sub-Contractor Add-On together with our E-Way Bill Add-On get a combined implementation and a single point of contact for both modules. Most subcontracting-intensive manufacturers need both, the bundle reduces installation effort and ongoing maintenance.

→ View E-Way Bill Add-On

Who This Add-On Is Built For

This add-on is designed for manufacturers running SAP Business One 10.0 with significant subcontracting or material-movement workflows. It is the right fit if you:

  • Send material out for job work, plating, machining, heat treatment, surface finishing, or repair on a regular basis

  • Have a physical gate with security verification of incoming and outgoing consignments

  • Use multiple subcontractors or job workers and need contractor-wise reconciliation

  • Generate e-way bills frequently and want them tied to dispatch movement, not entered separately

  • Have experienced disputes with subcontractors over material short-receipts, scrap return, or conversion charges

  • Need audit-grade documentation of material movement for internal control or external compliance

Industries Where It Fits Naturally

  • Automotive parts and components manufacturing (original target industry)

  • Machine tools and heavy engineering

  • Casting, forging, and fabrication

  • Process and dyeing units (textile job work)

  • Packaging manufacturers with print or finishing subcontracting

  • Any manufacturer with significant maintenance-equipment movement and repair workflows

Pricing & Implementation

Pricing depends on the number of users, number of subcontractors, custom report requirements, and whether you’re deploying it standalone or bundled with our E-Way Bill Add-On. We quote after a discovery call where we map your current subcontracting workflow.

Every engagement includes:

  • One-time license for the add-on (per company database)

  • Process mapping workshop with your production, store, gate, and accounts teams

  • Installation, configuration, and role-based authorization setup

  • Master data setup: subcontractors, job-work item codes, GST and TDS rules

  • User training for each department (separate sessions per role)

  • Pilot run with selected subcontractors before full rollout

  • Three months of post-go-live support included

  • Optional AMC for ongoing enhancements and version-upgrade support

Typical Implementation Timeline

Single plant, single GSTIN, under 20 subcontractors: 6–8 weeks

Multi-plant or multi-GSTIN: 8–12 weeks

Bundled with E-Way Bill Add-On: Add 2–3 weeks for combined EWB go-live

These timelines reflect the complexity of training four departments and piloting with real subcontractors, not just software installation.

Frequently Asked Questions

Q1. Do we have to use all 8 steps or can we use only some?

All 8 steps work together as a closed loop, that’s the value. However, the add-on is configurable: if your maintenance department doesn’t raise internal requisitions today, that step can be disabled per user role. We map the actual workflow during the discovery call and configure only what you’ll use.

Yes. Gate security uses a simplified SAP B1 interface focused only on inward and outward entries, they don’t see financial data or master data.

Yes. The custom AP Invoice uses your existing SAP B1 tax codes, GL accounts, and TDS rules. Job-work-specific GST treatments (such as job-work supply, return after job work) are configurable. Accounts always reviews the auto-generated invoice before posting, automation not blind posting.

Partial returns are tracked against the original outward gate pass. Each inward consignment references the same parent gate pass, and the system maintains a running balance of material still lying with the contractor, so you always know what’s pending return.

The Sub-Contractor Add-On can run standalone, with users entering EWB numbers manually after generating them via the NIC portal. But the bundled deployment with our E-Way Bill Add-On is what most customers choose, it eliminates the manual portal step that typically delays dispatch.

Both. Statements can be generated on demand (one contractor at a time) or scheduled (all contractors, monthly or quarterly, auto-sent by email or WhatsApp). Format selection per contractor is supported, some prefer Excel, others PDF, others WhatsApp message.

Yes. The add-on does not replace SAP B1 production or BOM functions, it complements them. Production Orders, BOM, and standard subcontracting documents work as before; this add-on adds the operational layer (requisition, gate movement, reconciliation) that standard SAP B1 doesn’t cover.

No. Technical documentation, deployment scripts, and user manuals for each department role are handed over with every engagement. You’re never locked in.

See the Full Subcontractor Workflow in 30 Minutes

Book a demo. We’ll walk through all 8 steps on a live SAP B1, from internal requisition through contractor reconciliation, using a sample subcontractor and material from your business if you’d like.

Book a Demo

Related Services

Bundle with Related Services

→ E-Way Bill Add-On – Auto-generate e-way bills at dispatch, integrated with your SAP B1 subcontractor add-on workflow.

→ SAP B1 Consulting – Process mapping, custom development, and post-go-live support for your SAP B1 subcontractor implementation.