Which of the following steps can be part of a subcontracting process? Note: There are 3 correct answers to this question.

Question

Options

• APurchase components for direct delivery to the subcontractor
• BInvoice the subcontractor for consumed components
• CCreate an outbound delivery for components to be provided
• DCreate a sales order for components to be provided
• EPost subsequent adjustment of component consumption

• A
  68% (15)
• B
  23% (5)
• D
  9% (2)

Explanation

In a subcontracting process, you provide components to the vendor (subcontractor) and receive finished goods back - so A, C, and E all represent valid steps: purchasing components with direct delivery to the subcontractor (A), sending those components via outbound delivery (C), and adjusting actual component consumption after the fact if it differs from planned quantities (E).

B is wrong because the flow is reversed - the subcontractor invoices you for their processing service; you never invoice them for the components you provide (those remain your property until consumed).

D is wrong because a sales order belongs to the SD (Sales & Distribution) module and represents selling goods to a customer - providing components to a subcontractor is a procurement activity, handled through purchase orders and inventory movements, not sales orders.

Memory tip: Think of subcontracting as a three-stage loop - send components out (outbound delivery), receive finished goods in (goods receipt), reconcile consumption (subsequent adjustment). Anything involving invoicing the subcontractor or sales orders breaks that loop because you're the buyer, not the seller.

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